Note 29: Significant accounting policies:
This note provides a list of the significant accounting policies adopted in preparation of these financial statements.
These policies have been consistently applied to all the years presented unless otherwise stated.
The financial statements were approved for issue by Board of Directors on 27 th May 2025.
a) Basis of preparation:
i. Compliance with Ind AS :
These financial statements for the year ending 31st March, 2025 comply in all material aspects with Indian
Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with
rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the act.
ii. Historical cost convention:
The financial statements have been prepared on a historical cost basis, except for the following:
• Certain financial assets and liabilities and contingent consideration that are measured at fair value.
• Defined benefit obligations which are measured at fair value based on actuarial valuation.
b) Foreign currency transactions:
i. Functional and presentation currencies:
Items included in the financial statements of the Company are measured using the currency of the primary
economic environment in which the entity operates (‘the functional currency’). The financial statements are
presented in INR which is the functional and presentation currency for Cords Cable Industries Limited.
ii. Transactions and Balances:
Foreign currency transactions are translated into the functional currency at the exchange rates on the date of
transaction. Foreign exchange gains and losses resulting from settlement of such transactions and from
translation of monetary assets and liabilities at the year-end exchange rates are generally recognized in the
profit and loss. They are deferred in equity if they relate to qualifying cash flow hedges.
Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the Statement
of Profit and Loss, within finance costs. All other foreign exchange gains and losses are presented in the
“Statement of Profit and Loss”.
c) Revenue recognition:
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue
is net of GST and net of returns, trade allowances, rebates, value added taxes and amounts collected on behalf
of third parties.
The company recognizes revenue when the amount can be reliably measured, it is probable that future economic
benefits will flow to the entity and specific criteria have been met for each of the company’s activities as described
below. The company bases its estimates on historical results, taking into consideration the type of customer, the
type of transaction and the specifics of each arrangement
i. Sale of goods:
Timing of recognition: Sale of goods is recognized when substantial risks and rewards of ownership are
passed to the customers, depending on individual terms, and are stated net of trade discounts, rebates,
incentives, subsidy and GST.
Measurement of revenue: Accumulated experience is used to estimate and provide for discounts, rebates,
incentives and subsidies. No element of financing is deemed present as the sales are made with credit
terms, which is consistent with market practice.
d) Income recognition:
i. Interest income from debt instruments is recognized using the effective interest rate method. The effective
interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate,
the company estimates the expected cash flows by considering all the contractual terms of the financial
instrument (for example, prepayment, extension, call and similar options) but does not consider the expected
credit losses.
ii. Dividends are recognized in profit or loss only when the right to receive payment is established, it is probable
that the economic benefits associated with the dividend will flow to the company, and the amount of the
dividend can be measured reliably.
iii. Revenue from royalty income is recognized on accrual basis.
e) Government Grants:
Grants from the government are recognized at their fair value where there is a reasonable assurance that the
grant will be received and the company will comply with all attached conditions.
Government grants relating to income are deferred and recognized in the profit or loss over the period necessary
to match them with the costs that they are intended to compensate and reduce from corresponding cost.
Income from export incentives such as premium on sale of import licenses, duty drawback etc. are recognized on
accrual basis to the extent the ultimate realization is reasonably certain.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities
as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related
assets and presented within other operating income.
f) Income Tax:
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based
on the applicable income tax rate for each jurisdiction adjusted by the changes in deferred tax assets and
liabilities attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation. It establishes provisions which appropriate
on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the Balance Sheet method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax
is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the
reporting period and are expected to apply when the related deferred income tax asset will be realized or the
deferred income tax liability is settled.
Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilize those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and
tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a
net basis, or to realize the asset and settle the liability simultaneously.
Current and deferred tax is recognized in the Statement of Profit and Loss, except to the extent that it relates to
items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in
other comprehensive income or directly in equity, respectively.
Minimum Alternative Tax (MAT) credit, which is equal to the excess of MAT (calculated in accordance with
provisions of Section 115JB of the Income Tax Act, 1961) over normal income-tax is recognized as an item in
deferred tax asset by crediting the Statement of Profit and Loss only when and to the extent there is convincing
evidence that the Company will be able to avail the said credit against normal tax payable during the period of
fifteen succeeding assessment years.
g) Property, plant and equipment:
All items of property, plant and equipment are stated at historical cost, less accumulated depreciation/amortization
and impairments, if any. Historical cost includes taxes, duties, freight and other incidental expenses related to
acquisition and installation. Indirect expenses during construction period, which are required to bring the asset in
the condition for its intended use by the management and are directly attributable to bringing the asset to its
position, are also capitalized.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the company and the
cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate
asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the
reporting period in which they are incurred.
Depreciation on Property, Plant and Equipment is charged on straight line method on the basis of rates arrived at
with reference to the useful life of the assets prescribed under Part C of Schedule II of the Companies Act, 2013.
The estimated useful lives are as mentioned below:
h) Depreciation and amortization:
Depreciation is calculated using the Straight Line Method. Depreciation is calculated using the useful life given in
Schedule II to the Companies Act, 2013.
Depreciation on additions / deletions during the year is provided from the day in which the asset is capitalized up
to the day in which the asset is disposed off.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting
period, with the effect of any changes in estimate accounted for on a prospective basis.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount
is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included
in profit or loss within other gains/(losses).
i) Intangible Assets:
i. Intangible assets with finite useful life:
Intangible assets with finite useful life are stated at cost of acquisition, less accumulated depreciation/
amortization and impairment loss, if any. Cost includes taxes, duties and other incidental expenses related
to acquisition and other incidental expenses.
Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of respective
intangible assets.
ii. Research and Development:
Capital expenditure on research and development is capitalized and depreciated as per accounting policy
mentioned in para h and i above. Revenue expenditure is charged off in the year in which it is incurred.
j) Investment property:
Property (land or a building-or part of a building-or both) that is held for long term rental yields or for capital
appreciation or both, rather than for:
i. use in the production or supply of goods or services or for administrative purposes; or
ii. Sale in the ordinary course of business.
is recognized as Investment Property in the books.
Investment property is measured initially at its cost, including related transaction costs and, where applicable,
borrowing costs. Subsequent expenditure is capitalized to the assets carrying amount only when it is probable
that future economic benefits associated with the expenditure will flow to the company and the cost of the item
can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an
investment property is replaced, the carrying amount of the replaced part is derecognized.
Depreciation is provided on all Investment Property on straight line basis, based on useful life of the assets
determined in accordance with para “h” above.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting
period, with the effect of any changes in estimate accounted for on a prospective basis.
k) Lease:
The company has applied Ind AS 116 using the modified retrospective approach and therefore the comparative
information has not been restated and continues to be reported under Ind AS 17.
i. As a lessee:
The company recognises a right-of-use asset and a lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted
for any lease payments made at or before the commencement date, plus any initial direct costs incurred and
an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the
site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement
date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The
estimated useful lives of right-of-use assets are determined on the same basis as those of property and
equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted
for certain re-measurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, company’s incremental borrowing rate. Generally, the company uses its incremental borrowing
rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following:
- Fixed payments, including in-substance fixed payments;
- Variable lease payments that depend on an index or a rate, initially measured using the index or rate as
at the commencement date;
- Amounts expected to be payable under a residual value guarantee; and
- The exercise price under a purchase option that the company is reasonably certain to exercise, lease
payments in an optional renewal period if the company is reasonably certain to exercise an extension
option, and penalties for early termination of a lease unless the company is reasonably certain not to
terminate early.
The lease liability is measured at amortized cost using the effective interest method. It is re-measured when
there is a change in future lease payments arising from a change in an index or rate, if there is a change in
the company’s estimate of the amount expected to be payable under a residual value guarantee, or if company
changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use
asset has been reduced to zero.
Short-term leases and leases of low-value assets:
The company has elected not to recognize right-of-use assets and lease liabilities for short term leases of
real estate properties that have a lease term of 12 months. The company recognizes the lease payments
associated with these leases as an expense on a straight-line basis over the lease term.
Under Ind AS 17:
In the comparative period, as a lessee the company classified leases that transfer substantially all of the
risks and rewards of ownership as finance leases. When this was the case, the leased assets were measured
initially at an amount equal to the lower of their fair value and the present value of the minimum lease
payments. Minimum lease payments were the payments over the lease term that the lessee was required to
make, excluding any contingent rent.
Subsequently, the assets were accounted for in accordance with the accounting policy applicable to that
asset.
Assets held under other leases were classified as operating leases and were not recognized in the company’s
statement of financial position. Payments made under operating leases were recognized in profit or loss on
a straight-line basis over the term of the lease. Lease incentives received were recognized as an integral
part of the total lease expense, over the term of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks
and rewards incidental to the ownership of an asset to the Company. All other leases are classified as
operating leases. Finance leases are capitalised at the lease’s inception at the fair value of the leased
property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations,
net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease
payment is allocated between the liability and finance cost. The finance cost is charged to the profit or loss
over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the
liability for each period.
Land under perpetual lease for is accounted as finance lease which is recognized at upfront premium paid
for the lease and the present value of the lease rent obligation. The corresponding liability is recognized as
a finance lease obligation. Land under non-perpetual lease is treated as operating lease.
Operating lease payments for land are recognized as prepayments and amortised on a straight-line basis
over the term of the lease. Contingent rentals, if any, arising under operating leases are recognized as an
expense in the period in which they are incurred.
l) Investment and Other financial assets:
i. Classification:
The Company classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value (either through other comprehensive income, or through
profit or loss), and
• those measured at amortized cost.
• Classification of debt assets will be driven by the Company’s business model for managing the financial
assets and the contractual cash flow characteristics of the financial assets.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other
comprehensive income. For investments in debt instruments, this will depend on the business model in
which the investment is held. For investments in equity instruments, this will depend on whether the company
has made an irrevocable election at the time of initial recognition to account for the equity investment at fair
value through other comprehensive income.
Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle
on a net basis, to realise the assets and settle the liabilities simultaneously
ii. Measurement:
At initial recognition, the company 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 that are directly attributable to the acquisition
of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are
expensed in profit or loss.
Debt instruments:
Subsequent measurement of debt instruments depends on the company’s business model for managing the
asset and the cash flow characteristics of the asset.
• Amortized Cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a
debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship
is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these
financial assets is included in finance income.
• Fair value through other comprehensive income (FVOCI): Assets that are held for collection of
contractual cash flows and for selling the financial assets, where the assets cash flow represent solely
payments of principal and interest, are measured at fair value through other comprehensive income
(FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of
impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized
in profit and loss. When the financial asset is derecognized, the cumulative gain or loss previously
recognized in OCI is reclassified from equity to profit or loss and recognized in other gains/ (losses).
Interest income from these financial assets is included in other income.
• Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or FVOCI are
measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently
measured at fair value through profit or loss and is not part of a hedging relationship is recognized in
profit or loss and presented net in the statement of profit and loss within other gains/(losses) in the
period in which it arises. Interest income from these financial assets is included in other income.
Equity instruments:
The company subsequently measures all equity investments at fair value. Where the company’s management
has elected to present fair value gains and losses on equity investments in other comprehensive income,
there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends from such
investments are recognized in profit or loss as other income when the company’s right to receive the dividend
is established.
iii. Impairment of financial assets:
The Company assesses if there is any significant increase in credit risk pertaining to the assets and accordingly
creates necessary provisions, wherever required.
iv. De-recognition of financial assets:
A financial asset is de-recognized only when
• The company has transferred the rights to receive cash flows from the financial asset or
• retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the cash flows to one or more recipients or
• The contractual right to receive the cash flows of the financial assets expires.
Where the entity has transferred an asset, the company evaluates whether it has transferred substantially all
risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized.
Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset,
the financial asset is not derecognized.
Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is derecognized if the company has not retained control
of the financial asset. Where the company retains control of the financial asset, the asset is continued to be
recognized to the extent of continuing involvement in the financial asset.
m) Derivatives and hedging activities:
Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently
re-measured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair
value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item
being hedged.
The Company designates certain derivatives as either:
• hedges of the fair value of recognized assets or liabilities or a firm commitment (fair value hedges)
• hedges of a particular risk associated with the cash flows of recognized assets and liabilities and highly
probable forecast transactions (cash flow hedges).
The Company documents at the inception of the hedging transaction the relationship between hedging instruments
and hedged items, as well as its risk management objective and strategy for undertaking various hedge
transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of
whether the derivatives that are used in hedging transactions have been and will continue to be highly effective
in offsetting changes in fair values or cash flows of hedged items.
Cash flow hedge reserve:
The effective part of the changes in fair value of hedge instruments is recognized in other comprehensive income,
while any ineffective part is recognized immediately in the statement of profit and loss.
n) Inventories:
Raw materials, packing materials, stores and spares are valued at lower of cost and net realizable value.
Work-in-progress, finished goods and stock-in-trade (traded goods) are valued at lower of cost and net realizable
value.
By-products and unserviceable / damaged finished goods are valued at estimated net realizable value.
Cost of raw materials and traded goods comprises cost of purchases. Cost of work-in progress and finished
goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead
expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also includes
all other costs incurred in bringing the inventories to their present location and condition. Cost is assigned on the
basis of First In First Out. Costs of purchased inventory are determined after deducting rebates and discounts.
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.
o) Trade Receivables:
Trade receivables are recognized initially at fair value and subsequently measured at cost less provision for
impairment.
p) Trade and other payables:
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial
year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due
within 12 months after the reporting period.
q) Borrowings:
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognized in profit or loss over the period of the borrowings using effective interest rate method. Fees
paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is
probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down
occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the
fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it
relates.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished
or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities
assumed, is recognized in profit or loss.
r) Borrowing Cost:
General and specific borrowing costs that are directly attributable to the acquisition or construction of a qualifying
asset are capitalized during the period of time that is required to complete and prepare the asset for its intended
use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their
intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalization.
Other borrowing costs are expensed in the period in which they are incurred.
s) Employee Benefits:
i. Short term obligations:
Liabilities for wages and salaries, including non- monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are recognized
in respect of employees’ services upto the end of the reporting and are measured at the amounts expected
to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations
in the balance sheet.
ii. Provident fund:
Provident fund contributions are made by the Company. The Company’s liability is actuarially determined
(using the Projected Unit Credit method) at the end of the year.
iii. Gratuity:
Liabilities with regard to the gratuity benefits payable in future are determined by actuarial valuation at each
Balance Sheet date using the Projected Unit Credit method and contributed to Employees Gratuity Fund.
Actuarial gains and losses arising from changes in actuarial assumptions are recognized in other
comprehensive income and shall not be reclassified to the Statement of Profit and Loss in a subsequent
period.
iv. Leave encashment / Compensated absences:
The Company provides for the encashment of leave with pay subject to certain rules. The employees are
entitled to accumulate leave for future encashment/utilization. The liability is provided based on the number
of days of unutilized leave at each Balance Sheet date on the basis of an independent actuarial valuation.
Actuarial gains and losses arising from changes in actuarial assumptions are recognized in the ‘Statement of
Profit and Loss’.
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