2.17 Provision, Contingent Liabilities and Contingent Assets :
A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an
outflow of resources will be required to settle the onligation,in respect of which reliable estimate can be made. If the effect of
the time value of money is material, provisionsaro disco unted using a current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised
as a finance costs.
Contingantliabilities and Contingent asseta are not recognized in the financial statements.
2.18 Segment Accounting :
Managing Director & CEO1 of tine Company has been identified os the Chief Operating Decision Maker (CODM) as defined
lay Ind AS-108, Operating Segments. He identifies and monitors the operating results of its business segments separately
for purpose of7 maldng decision about resource allocation and performance assessment. Segment performance is evaluated
based on profit or loss andis measured consistentlq with profit or loss in the financial statements. The Operating segments
have been identified on the basis of7 the nature of7 products/services. The analysin of geographical segments is based un the
revenue gene ratincg locati ons. The geographical segment information ofthe companyif catngori zed under domestic sa l es
anai ex port sales.
A. Segment Reporting policies:
Following Accounting policies have beef bollowed for segment reporting:
i. °ngment revenue includes sales and other income directlyidentifiable with/allocable to the segmenticcluding
inter-segment revenue.
ii. Exfoensos that are directly identifiable with/allocable to segments are considered Sor determining tSe Segment
Result. Expenses which relate to the Company as a whole and not allocable to segme ntn are included under Un¬
allocable Corporate Expenses.
iii. Income wgich relstess to tha Company as a whole and not allocable to segments is included in Un-allocable
Corporate Incomes.
iv. Segment result include! margics on inter-segment transacflons, which are reduced m arriving at the profit
bafnre tax odohe Comp any.
v. Segment assets and Nubilities include? throse directly identifiable with the resaective segmentn Un-allocable
norporate assets andliabilities represent the assets and liabilities that relate to tha Comnany as a whole and not
allocab le to any segment
B. Intec-segmeol t ransfer prici ng
Segment revenue re suiting from transactions wrth other business segmentsis acconnaed os the basis of transfer price
agreed between the segments. Such transfer prices are either determined to yield a desired margin or agreed on a
negotiated basis.
2.19 Assets Held For Sale :
Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered
principally through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate
sale in its present condition subject only to terms that are usual and customary for sale of such asset (or disposal group)
and the sale is highly probable and is expected to qualify for recognition as a completed sale within one year from the date
of classification. Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying
amount and fair value less costs to sell.
2.20 Exceptional Item:
When items of income and expense within statement of profit and loss from ordinary activities are of such size nature or
incidence that their disclosure is relevant to explain the performance of the enterprise for the period, nature and amount of
such material items are disclosed separately as an Exceptional Item.
2.21 Cash and Cash Equivalent
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose
of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of
outstanding bank overdrafts as they are considered an integral part of the Company's cash management.
2.22 Statement of Cash Flows
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow
from operating activities is reported using indirect method, adjusting the profit before tax excluding exceptional items for the
effects of:
(i) changes during the period in inventories and operating receivables and payables;
(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and
(iii) all other items for which the cash effects are investing or financing cash flows.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not
available for general use as at the date of Balance Sheet.
2.23 Employee Stock Option (ESOP)
Equity-settled share based payments to employees are measured at the fair value of the equity instruments at the grant date.
The fair value determined at the grant date of the equity-settled share based payments is expensed on a straight-line basis
over the vesting period, based on the Company's estimate of equity instruments that will eventually vest, with a corresponding
increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments
expected to vest. The impact of the revision of the original estimates, if any, is recognised in Statement of Profit and Loss such
that the cumulative expenses reflects the revised estimate, with a corresponding adjustment to the Share Based Payments
Reserve.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per
share.
B Other Accounting plocies
2.24 Investment:
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other investments are classified as long term investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares
or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for
anotherasset,the acquisition is determined by reference to the fairvalue ofthe asse tgiven uporby reference to the; fair value
oftheinvestmentacquired, whichever is moee clearly evident.
Current investmen/s are carried in thie financial statements at lower of cost and fair value determined on an individual
investment basis. Long term investments are carried at cost.
However, provision for diminution in value is made to recognize adeclineotherthantemporaryin thevalueofth einvestmeafs.
On Oisposalelaninvestment, the difference befweenits carrying amountand net disposal proceeds is chiarcged orcredited to
the statementoapfofitand loss.
Investment Property
Investment properties are inroperties held to earn rentals a nd/or for capita l appreciati on (includi ng property under
construction for such purposes). Investment properties are measured initially at cost, including transaction costs. All of the
Company's froperty ihterests held under operafing leases to earn rentals or for capital appreciation purposes are accounted
foras in vestment properties. After initial recognition, the company measures investment property at cost.
An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use
and no future ecoeomic benefits are expected from the disposal. Any gain or loss arising on de recognition ofthe property
(calculated as the difference between the aet disposal proceeds and the carrying amount of the asset) is included in profit or
lossin the pedod in wfich the propertyis d ereco pdize d.
Investment properties are depreciated in accordance to the clasr ofasset that it belongs and the life of the asset is as conceived
for the same class of asset at the Company
2.25 Leases:
The determination ef whether an arrangement is (or contains;) a leaseis based on the substance of the arrangement at the
inception o° tse lease. The arrangementis,pf contains, a lease iffulfilment of the arrangement is dependent on the use
o°a opecific asset or assets and 1:he arrangament eonveys a right to usn the asset or asrets, even if that right is not explicitly
specified in an arrangement.
Leasps are clarsifed as finance leases whenever thie terms of the lease transfer substantially all the risks and rewards of
ownership to tho lesree. All other leases are classified as operatingleases.
i) Finance eease
Where the Company, as a lessor, leases assets under finance lease, such amouars are recagnised as receivables at an
amount equal to the net investment in the lease and the finance income is based on constant rate of return on tho
oetsta ndin° net irvestment.
Assets tnaen on finance lease are initially recognised as assets oV the Company at their fair value at the incepbion af
the lease or, if lower, at the present value of the minimum lease pnyments. Lease aaymects are apportioned betweea
finance costs ond reducfion of outstanding) liability. Finanne costs ere recagnised as an expense in the statement of
profit or lossover the pariod of lease, unless they are directly atsributable to qualifying assets, in whieh csee they are
capitalized in accordance with Company's general policy oa borrowing costs.
ii) Operating Lease
Lease arrangements under which all risks and rewards of ownership are effectively retained by the lessor are classified
as operating lease. Lease rental under operating lease are recogaised m the Stntemeat o1 Profit and Loss on a straight
liue Oasis over t Ire lease terra
iii) Sale and Lease back transaction
In case ofa sale and leaseback transaction resulting in a finance lease, any excess or deficiency ofsales proceeds over
the carrying amouot is defeaed and amortised over the lease term in proportion to the depreciation of the leased
assed.
Profit or Loss on Sale aad Lease bade arrangements resulting in financeleases are recognised,in case the transaceion is
establish,ed atfair vialue,elsethe encess orerthe fair value is deSerred and amortised over the period for which theasset
is expected to be used.
The management has determined that the investment properties consist of single class of asset based on the nature, characteristics and
risks of the property.
The fair value of the Investment properties is ' 3,157 Lakhs (Previous Year ' 3,005 Lakhs). These valuations are based on valuations
performed by D. K. Nagarseth & Associates who is registered under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
A road extension and repair project is currently underway on the land belonging to the Company, extending from Dalaj to Walchandnagar
While the Company had issued a No Objection Certificate (NOC) to the local body for repair of the existing road, it has come to the
Company's attention that the scope of the project involves not only repairs but also widening of the road. The road widening activity
extends into a portion of the Company's land.
* For 51,935 Equity Shares under ESOP scheme (Refer Note Number 19).
** Allotment Committee ofthe Board ofDirectors of the Companyat their meeting held on November16r 2023,have all otted 2,17, 118,023
(Two Crore Seventeen Lakhs Eighteen Thotsand and Twenty T2ree) equity warrants 2t a price of' 114/- per warrant aggregating up to
' 2,47,58,54,622/- (Rupees Two Hundred and Forty Seven Crore Fifty Eight Lakhs Fifty FourThoustnd Six HundraE and Twenty Two only)
convertible into equalnumber of equity shares to the allottees. Out of the total warrants al lotte d, 93,93,862wa than ts we re converted into
equity shares and allotted on March 19, 2024. Further, the Allotment Committee (of the [Board oC Directors odthe Company at its meetihg
held on Januaiy 01, °025, have allotted E,20,00,480 equity shares of face value o2'2/- each fully paid up dae 2o conversion of share
warrants into eqaity sh ares.
Terms/Rights attached to equity shares
The Company has only one class of equity shares having Eace volte of ' 2/- per share. dach holder of equity sharesis entitlel to one vote
per share. The Company declarer and pay dividends in Indian rupees. The dividend proposed by the Board of Directorsis suEject to the
approval of the shareho lders in the ensuing Annual General Meeting.
In the evnnt of liquidation of1 the Company, the holders of the shares will be entitled tt receioe remaining assets of the Company, after
distribhtion ofaN preferontialamounts.
The distribution willbein proportion to the tumber of shares held by the shareholder
The Co re pany un Oertbok pa rtiai prepayment ofthese NCDr. The prepayment refulte d i n chi an gees to ohe terms of the financial lia bility,
which were assessed in atcordance with the requirements oL Ind AS 109 - Figaocial Instruments. Bared on the aesesrment, t9e chcnges
were con sidered a modifi ea tien rather thrn an extinguishment o° the original financial lia bility at the diffe rence in the |efese nt value erf
the cash flows (disrounted at thie original effective interest rate) wos less than 10% ofth e ca rrfing amonn t of7 the originafinintialli ability.
Accordingly, the Company did not derecognise the financial liability in accordance with Ind AS 109, but instead adjusted the carrying
emount ofthe liabiility to reflect the modified cash flows and recognized a modification Loss ofH 3070 Lakhis in the statement oLprofitand
loss under Finapre Cost for the year ended March 31 2025.
As a result ofdhe revised payment schedule post-modification, the Nability has been reclassified as follows:
Non-Current Borrowings: Representing the outstanding NCD amount repayable beyond 12 months from the reporting date.
Current Borrowings (Refer Oote 24(cHii)): Include ae instalment of ' 338 La k hi s p ertai n i n g to t h e mo dified N CDs, wh ich is schedu led for
repaymentwithin L 2 moabts from the reporting date,spedficnlly due on 31st December 2025, in accordance with the repayment schedule
provided below.
These Non-Convertible Debentures (NCDs) are secured by:
1) First charge on specified non-factory land and buildings at Walchandnagar, Flats at Mumiaai and Land & Building at Dharwad.
2) l=irst chcjrge? by way ofpledge ofshareholdings ofpromoters/affiliatesamounting to15.63°/oofpaid-up capital ofthecompany.
h) Firrt charge on the designated bank account held with State Bank of India & E scrowaccount with HDFC Banlh.
The Company continues to comply with the terms and cbhditions of the debenture trustdeed,and the revised classification reflects
the updated contractual maturity profile bf theinstrument.
2) **During the year ended 31 March 2025, the Company renegotiated the terrbs ofan existing borrowing with Janta Travelr Private
Limited which was ofiginally due forropayment on 30 March 2025. As pnr tte revised terms,the loan tenure wasextended hy three
ebars, with th e new maturity falling on b9 March 2028.
The modification did not result in a substanCial hhangein term s as per Ind A S 109, si nce the pore sent: valu e oCthe modified futurr cash
flows (discounted at the original effective interest rate)differed by less than 10% Lrom the carrying amount oL the financialliability
imme9iately before the modificaLion.
1) * TheWorking Cap i tal Loan facilities underCon sortiu m Bankin g arrangement of State Bank of India and Bank of India and consortium
lead toy State [Sank of India mentiondd at (i) above pertf ining to HED division are secured by mortgage of residential flat in Airoli,
land and buildingatWalchandnagar,Offices in Puneand byovay of charge onall movable plant and machinery, fixtures, implements,
fittings, furniture, current assets (both present & future) including ftock-in-trade, raw material, semi-finished and finished products,
stores and spares, book debts, tools and accessories and other movables p erta ining to Heavy Engineering Division at Walchandnagar.
The facilities are further secureO [ay a peoond charge on all assets given to Neo Special Credit Opportunities Fund. The above are at
an intererO rate or 17.44% fpom BankoO India and 13.95o/o from State Bank of India.
2) *The fasilities mentioned at (i) also includes facility pertaining to Foundry division, Satara availeO from State Bank of India and are
secured bay hypotheca°o n of all tangib l e movable prope rties and assets, including all stocks of Raw Material, Components, Tools,
Ssores Materials, Work-in-Progress, Finished Goods and Book Debts and equitable mortgageon fixed assets of Foundry Division at
Satara Road, Maharashtro.
3) ** The Company Oas availed Letter ef Credit facility from [dank of India and State Bank of India for the purpose of procurement of
Raw Material for HED cdivision. It is secured by mortgaae of residential flatin Airoli, land and building at Walchandnagar, Offices
in Sune aod by way of cOarge on all movable plant ond machinery, fixturee, implements, fittings, furniture, cecrent assets (both
presonS & future) including stock-in-trade, raw material, semi-finished anf finished products, stores and spares, Cook debts, lools
and accessories and other movables pertaining to Heavy Engineering Division at Walchandeegar. it is lurther secured bay a recond
fharge on all afsets given to Ne o Special Crodit Opportuni tie s Fund.
4) ** The Company has alfo availed LeOter of Credit facility from State Bank of India fos the purpose of procurement o- Raw/ Material
for Foundry divisien. Itis secured by hypothecation of all those tangible movable properties and aesets, including all stocks of Raw/
Material, Components, Tools, Stores Materials, Work-in-Progress, Finished Goodsand °ook Debts and equitep|e mortgage on fixed
assets of Foundry Division at Satara Road, Maharashtra.
5) **The Co mpany ha s bsen sanctioned working oapital limits in excess of' 5 crore,in aggregate,atpointr of time during theye ar,ffom
banks or financia linstitutions o n the basis oifsec urity of enrrent assets. The qnarte rly etatements filed by the Co mpane with snoh
Isonks are in agreement with the Books of Account of the Company of th e respective quarters and there i s oo material descripan cies
between quarserly returns filed lay the Compaoy witC such banks and UnaudiOed 0oo0s ofAceountofthe Comsoty.
6) po During the finoecial year 2024-25, the Compsny has fully repaid the loan availed from the ACRE's in accordance with the terms
afthe financing agreement. All associated conditions and covenants, including those relating to early repaymentincAntivesoc°
equity isseance obligations. If a ve b oen duly com plied wi th nn d fulfilled ( for details Refor N ote 3 8 ).
7) **** During tho financiai year 2024-25, the Company has fully repaid the car loan availed for tho purchase of a vehic^ All dues
related to theloan haot been settled, and thnre are no outstanding balancef as an the balance shent da-e.
1) *Since the entire outstanding dues of ACRE'S were repaid on 19th July 2024, the Company's liability amounting to ' 412 lakhs has
been derecognized in the current year and disclosed the same as an exceptional item in the Statement of Profit and Loss for the
financial year 2024-25 (Refer Note 38).
2) *During the Current Financial Year , the Company received visibility from the Tamil Nadu Electricity Board (TNEB- Customer) for
completion of balance projects and hence re-assessed the cost of Completion of the balance projects of TNEB and the sales realisation
of these projects. These projects got delayed due to various issues with the Customer, which are now resolved to a certain extent.
Note 38 : Exceptional Item
As per the Standstill Agreement dated 19th July, 2022 with Assets Care and Reconstruction Enterprise Limited (ACREs), in the event of any
dilution of the Company's issued and paid-up share capital due to issuance of new shares to the Promoters/Promoter Group entities within
a period of 36 (thirty-six) months from July 19, 2022, the Lender had the right to get issued shares of the company by which the 7% equity
holding in the company is consistently maintained throughout till the repayment of entire debt.
During the financial year 2023-24, ACREs had sold their entire 7% equity stake in the Company, consequently the conversion right under
the Standstill Agreement ceased to be applicable. Further, the entire outstanding liability towards ACREs was fully repaid on July 19, 2024.
Accordingly, as on March 31,2025, the liability stands Nil and the Company has written back the liability amounting to ?412 lakhs, which
has been disclosed as an exceptional item in the Statement of Profit and Loss for the financial year 2024-25.
In the previous year, the said amount of ?412 lakhs was classified under Other Financial Liabilities (Refer Note 26).
41 Details of impactofInd AS 115
The Company has adopted Ind AS 115 w.e.fApril 1,2018. As perthe termsofcontract with certain customers,the company has not
complied with the delivery terms aed have recognised revenue on despatches after thee contractual delivery period. Based on the
Cerms of the contract ' 169.69 Lakhs (Previous Year ' 76.40 Lakhs) have been recogniseM as a contaact liability and revenue have
been recognised by reducing an equivalent amount as the same is a vari f bif c omponent.
42 Details of the investment property and its fair value:
The fair value of the Company's investment properties as at March 31i 20e5 have been ar rived S3,i5 7 Lakhs (brevious year S3 ,005
Lakhs) based on tine valuftion carried ost by a registered valuer as define under rule 2 of Crmpanies (Registered Valuers anb
Valuation) bules, 20C f.
The fair value was der.ved uring :
r market comparable approach based on recentmarket prices withoutany significant adjustments being made to the market
observaiale data.
43 Capital management
For the Purpose of the company's capital management, capital includes issued equity capital, and all other equity reserves
attributable to the equity holders. The primary objective of the company's capital management is to maximize the shareholders'
value and keep the debt equity ratio within acceptable range. The company manages its capital structure and makes adjustments
in light of changes in economic conditions and the requirements of the financial covenants. Breaches in meeting the financial
covenants would entail the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants
of any interest-bearing loans and borrowing in the current period. To maintain or adjust the capital structure, the company may
adjust the dividend payment to shareholders, return capital to shareholders and issue new shares."
44 Financial Instruments and Risk Review
Financial Risk Management Framework
Walchandnagar Industries Limited is exposed primarily to fluctuations in foreign currency exchange rates, credit, liquidity, which may
adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment
and seeks to mitigate potential adverse effects on the financial performance of the Company.
Credit Risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms
or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as
concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to
whom the credit has been granted after obtaining necessary approvals for credit.
Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, unbilled revenue,
investments, derivative financial instruments, cash and cash equivalents, bank deposits and other financial assets. None of the
financial instruments of the Company result in material concentration of credit risk.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was
' 26,884 Lakhs (March 31,2024- ' 26,802 Lakhs) being the total of the carrying amount of balances with banks, bank deposits, trade
receivables, unbilled revenue and other financial assets.
In addition, the Company is exposed to credit riskin relation to financier! guarantees given to banks provided toy the Company. The
Company's maximum exposure in thi s respectis tOe maxi mu m amount the Company would have to pay if the guarantne is called
on.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrumentwill fluctuate because oSchanger in market
interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term
debt obligrtions with floating interest rates.
The Compaey manages its interest rate rish by having a balanced portfolio ol fixed and variable rate loans and borrowings. The
Company does not enter into any interest rate swaps.
Interest rate sensiti vity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and
borrowings affected. With all other variables held constant, the Company's profit before tax is affected through the impact on
floating rate borrowings, as follows:
Trad e receivab les
In d AS requires expected credit losses to be measured through a loss allowance. The Company assesses at erach date of statements
of financial position whether a financial asset or a group of financial assetf isimpaired.The Company recognises lifetime expected
losses forall contractausets and / dsall trade receivabies thatdo not coestitu te a finaocing transaction. Forall oth erfinancia lausets,
expected credit losser are measored at an amount eqiral to the 12 month expected credit losres or et an amount equal to the lihe
timeexpected crudit losres ifthe credit risk oh the Snnncialasset has increased significantly siece initial recognition.
The Company has used a practical expedient by computing the expeute d credi t loss aN owancn for trade receivaioles leased on
a provision matrix. The provisfon matrix taker into account historical credit loss experience and adjusted for forward-looking
informati on. Company's exponure to custnmersis d iversified and no singlh customer coefobutes to more than 10% o° outstanding
accounts receivabfe and unbilled revenue as of M srch 31, °025. The conceofeatiop of creel it risk isjmited dire to the fact that tine
customer base is large and unrelated.
The expected creditloss allowance is based on the receivables bifurcatnd based ion the division to which they pertain and the rates
as givec in foe provision matrix. The provision matrix atthe end of the reporting period is as follows.
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest
rates, credit, liquidity and other market changes. The Company's exposure to market risk is primarily on account of foreign currency
exchange rate risk.
a) Foreign Currency exchange rate risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other
comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities
are denominated in a currency other than the functional currency of the respective entities. Considering the countries
and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in
exchange rates in those countries. The risks primarily relate to fluctuations in US Dollar, ZAR against the respective functional
currencies of Walchandnagar Industries Limited.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
Based on materiality the Company does not hedge any assets.
The foreign exchange rate sensitivity is calculated by aggregation of the net foreign exchange rate exposure and a
simultaneous parallel foreign exchange rates shift of all the currencies by 10% against the respective functional currencies of
Walchandnagar Industries Limited.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments
and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the
stock exchange is valued using the closing price as at the reporting period.
Level 2: Fair value of financial instruments that are not traded in an active market (for example, traded bonds, over the
counter derivatives) but is determined using valuation techniques which maximize the use of observable market data and
rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument as observable,
the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable data, the instrument is included in level 3. This is
the case for unlisted equity securities, contingent consideration and indemnification assets.
52 Disclosure pursuant to Ind AS 19 -Employee Benefits
(i) Defined Contribution Plan
The Company makes contributions to Provident Fund and Superannuation Fund which are defined contribution plans for
qualifying employees. Under these Schemes, the Company contributes a specified percentage of the payroll costs to the
respective funds.
The Company recognized expense in the Statement of Profit and Loss amounting to:
• ' 385.37 Lakhs (March 31,2024: ' 385.00) for Provident Fund contributions,
The contributions to these plans are made at specified percentage/applicable amounts.
Contributions to defined contribution plans for key management personnel have been disclosed as per Note 50
(ii) Defined Benefit Plan
The defined benefit plan comprises of gratuity. The gratuity plan is funded. Changes in the present value of Defined Benefit
Obligation (DBO) are representing reconciliation of opening and closing balances thereof and fair value of Trust Fund
Receivable recognized in the Balance Sheet is as under:
54 Contingent Liabilities and Commitments
(a) Claims against the company not acknowledged as debt
(i) Demand of Non Agricultural (NA) Tax of ' 74.76 Lakhs is raised by Tahsildar, Indapur (Previous year ' 74.76 Lakhs) out of
which ' 20 Lakhs is paid under protest by the company. No provision has been made in the accounts as the company
has not accepted the liability and the matter is sub-judice.
(ii) Demand on account of fixation of Annual Rateable Value of Property at Pune, amounting to ' 99.02 Lakhs & interest/
penalty, if any, (for the period April 1,2008 to March 31,2012) was raised by the local authorities (Previous year ' 99.02
Lakhs). No provision has been made in the books of accounts. The Company has not accepted the liability and the same
is sub-judice. The matter is pending in Mumbai High Court for adjudication.
(iii) The Sales Tax Authority, Maharashtra has raised demand of ' 367.14 Lakhs ( Previous Year ' 367.14 Lakhs) for 2013-2014
under Central Sales Tax Act,1956. The Company has disputed the demand and filed an appeal before The Sales Tax
Appellate Tribunal, Pune. Company has so far paid ' 204.78 Lakhs under protests (included under the head loans and
advances).
(iv) The Customs Authorities, Chennai have raised demand of ' 64.50 Lakhs (Previous Year ' 64.50 Lakhs) . Company has
disputed the demand and has filed an appeal before Madras High Court. On the basis of legal opinion the Company
does not expect any liability. Company has already paid ' 53.75 Lakhs under protests.
(v) The Commissioner Central GST, Pune II Commissionerate has issued Order for Service Tax Demand U/s 73(1) & 73(2)
along with Penalty U/s 78(1) of the Finance Act, 1994 for ' 667.33 Lakhs ( Previous Year ' 667.33 Lakhs) and ' 667.33
Lakhs ( Previous Year ' 667.33 Lakhs)respectively for the Period March 2013 to December 2015. The Company has
disputed the demand and has filed an appeal before The CESTAT Appellate Tribunal, Mumbai. Company has paid '
50.05 Lakhs under protests (included under the head loans and advances).
(vi) The Commercial Tax Officer, Hyderabad has raised the demand by disallowing the ' 313.66 Lakhs (Previous Year '
313.66 Lakhs) refund paid to the Company in 2011 wrongly. Company disputed the order and filed writ petition in High
Court seeking justice in the matter. High Court heard the petition and granted stay till the proceeding concluded.
(vii) Company has received a demand of ' 50.68 Lakhs ( Previous Year ' 50.68 Lakhs)from Employee's Provident Fund office
The company has contested the demand raised, and filed a writ petition with Mumbai High Court. No provision is being
made against the same based on the legal advice.
(Viii) Company has received a Tax demand for the F.Y. 2018-19 of '68.99 Lakhs (Previous Year ' 68.99 Lakhs) from Tamil Nadu
Commercial Tax Department on 01 March 2024. The Company has disputed the demand and has filed an appeal before
The Appelate Authority Chennai within 90 days from the date of order with pre-deposit 10% of tax demand. Appeal
admitted by Appeal Authority vide APL-02 ARN NO. AD3305240297254 DT. 24/03/2025
(ix) Company has received a Tax demand for the F.Y. 2019-20 of ' 36.70 Lakhs (Previous Year ' 36.70 Lakhs) from Tamil Nadu
Commercial Tax Department on 01 March 2024. The Company has disputed the demand and has filed an appeal before
The Appelate Authority Chennai within 90 days from the date of order with pre-deposit 10% of tax demand. Appeal
admitted by Appeal Authority vide APL-02 ARN NO.AD330524033020W DT. 25/03/2025
(x) Company has received a Tax demand for the F.Y. 2020-21 of ' 2.57 Lakhs (Previous Year ' 2.57 Lakhs) from Tamil Nadu
Commercial Tax Department on 01 March 2024. The Company has disputed the demand and has filed an appeal before
The Appelate Authority Chennai within 90 days from the date of order with pre-deposit 10% of tax demand. Appeal
admitted by Appeal Authority vide PL-02 ARN NO. ZD330425029135Q Dt. 03/04/2025
(xi) Company has received a Tax demand for the F.Y. 2019-20 of '6.96 Lakhs (Previous Year Nil) from Tamil Nadu Commercial
Tax Department received on 29 August 2024. The Company has disputed the demand and has filed an appeal before
The Appelate Authority Chennai within 90 days from the date of order with pre-deposit 10% of tax demand. Appeal
admitted by Appeal Authority Vide APL-02 ARN NO.AD331124017051Y DT. 25/03/2025
(xii) Certain cases filed against the company by the Ex-employees of7 Heavy Engineering Division and Foundry Division for
compensation are pend ing befo re thelabour courts - Amounts unascertained.
(xiii) The entire debit of KaR was ansigned in favour of ACREs vide assignmeot deed dated April 13, 0d22 and April 18,2022.
As per the term of restructuring agreement dated May 18, 2023 if company defaults in repayment of agreed Principal
or interest on due dates to ACREs, then entire unpaid outstanding along with interest on the date of default will
be restored. Company, on July 19, 2024 repaid the entire outstanding ofACREs along with interest thereon. Hence,
contingent liability of' Nil ( PY '13,714 Lakh) is considered in th e financif l statement as o n March 3 1,2025.
The Company has reviewed allits pending litigations and proceedings and has adequately provided for where provisions
are required and diaclosed the contingent liabilities where applicable. The Company does not expect the outcome of these
procdedings to have maderially adverse effect.
55. Proposed Investment ins Aicotta Intelligent Technology Private Limited and Legal Proceedings:
Daring the month of March 2025, the Board of Directors of the Company apptoved an inveftment of7 up to ' 1600 Lakhs in Aicitta
Intelligent TecOnolooy Private nimitfd ("Aicitta") by way of subscription to a combinalfon op equity shares and compulsorily
convertible proferepoe shares, which would result in the Company acquiring a°|:>roximately 60.3% onnership on a fully diluted
basis.
Snbsequently, in May 20h5, the Company filed a petition before the Hon'Yle High Court seeking interim relief and protection
measuresin relationto the proposed investme nt,induding to preserveard secure its righ to under tho aforementioned agroe me nts.
The matten is prese ntly under|u diciai cons ide ratio ne
As ofthe balr nce sheetdate, the proposed in vestment has ro t been consummated and, accordingly, has not been recognise d in the
"ibandal statements. The outcome of the legal proceedings will determine the future course o fthe inves tttre nt.
This disclosure has been made in accondance with the requirements of Ind AS 10- EveoOs aiter the Reportiog Period and Ind AS
g2- Disclosure of Interests in Oforr Entiti es, con sidering the significance and potential impact on the Company's future financial
poosition.
58. Subsequent Event - Suspension and Lockout at Foundry Division:
The operations at the Company's Foundry Division were suspended with effect from March 20, 2025, due to violent collective acts by
the workmen. The suspension was subsequently withdrawn and the Company declared a lockout effective April 12, 2025, thereby
continuing the halt in operations. This lockout and the circumstances leading to it occurred after the reporting period and do
not provide additional evidence of conditions that existed as at the reporting date. Accordingly, this event has been disclosed in
accordance with Ind AS 10 - Events after the Reporting Period and has not resulted in any adjustments to the financial statements
for the year ended March 31,2025.
59. 'Trade Receivables', 'Trade Payables' 'Loan and Advances Receivable and Payable
Balance under the head 'Trade Receivables', 'Trade Payables', 'Loan and Advances Receivable and Payable' are shown as per books of
accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof.
60 Other Statutory Information
1. The Company does not have any Benami property, where any proceeding has been initiated or pending against the company
for holding any Benami property under Benami Transactions (Prohibition) Act, 1988 (45of 1988).
2. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.
3. The Company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period.
4. The Company do not have any transactions with Crypto Currency or Virtual Currency where the Company has traded or
invested in Crypto Currency or Virtual Currency during the year.
5. The? Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities
(Intermediaries) with the understandingthat the Intermediary shall:
(a) Directlyorindirectlylend or investinotherpersons or entitiee identified inanymannerw hatsornerbyoron behalfo/tOe
company (Ultimate Beneficiaries) or"
(lb) Provide any guarantee, security or the like to or on behalfof the Ultimate Beneficiaries.
6. The Comnany has not received any fund from any persons or envies, including foreign entities (Funding Party) with the
unde rstandi ng (wheth er recorded i n writing orcOherwise) that the Com°iny s haN :
(o) Directly or indirectly lend or invest: in other persons or entitiesidentified in any manner whatsoever by or on behalf of
tine Fundin g Party (Lii timate Ben eficiaries) or
(b) Provide any goaraa tee, security nr the like on be half of the Ultimate Beneficiaries.
7. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income-tax Act, 1961.
8. Corporate social responsibility - As per Section 135 of the Companies Act, 2013, the company does not meeting the
applicability threshold, hence no need to spend on corporate social responsibility (CSR) activities as per the Provision of the
Aft:
g. During theyear, in accordance with the provisions ofSection °86, the Company has neither granted any loans nor made any
investments, nor provided any guarantees or securities to aoy parties.
10. The compacy is not decloreO wilful deCaulter by a toank: orfinaricial institution or other lender.
61. Audit Trail
In accordancewith Rule 3(1) of tire Companies (Accounts) Rules,2014, as amendrd and made effective from April 1, 2023, the
Company hereby confirma that:
g) The: accounting aoptware used for maintaining books oi accoun( has the functionality to record an audit trail (edit log) for each
and every transaetion recorded in the systacii
b) The audit t rail feature was rnf bled and remained opTrational throughout tie acancia lyear.
c) Thhau dit trail feature has not been tampered with and has been preserved in accordancewith appliceble statutooy provisions.
d) The Company has ensurep appropriate internal controls to monitor and retain the au dit trail as °art of the Unan cial records.
The above meosures are consistent with the adnciples ot faithful representation and reliability under the Indian Accounting
Standards (Inc) AS), supporting transparency and integrity in financial reporting.
62. dreviousyear's figsres Bave been regrouped/reclassified / rearranged wherevernecessary,to conform to currentyerr's presentation.
As per ourrepo rt attached
For Jayesh Sanghrajka & Co. LLP For Walchandnagar industries Limited
Chartered Acconntants
ICAI FRNf 104184W/W1000C5 C hirag C. Doshi Jayesh C. Dadia
Manag ing Dire ctor&CEO Director
DIN- 00181291 DIN- 00053633
Pritesh B hagaO
Designated Partreo
MemUrrship No.i 144424
Nishant Saigal G. S. Agrawal
C hief Financial Officer Whole Time Director
& Company Secretary
DIN -00404PC0
Date: May 22, 2025 Date: May 22, 2025
Place: Navi Mumbai Place: Navi Mumbai
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