(xv) Provisions and contingent liabilities and assets
Provisions
Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past events,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects
current market assessments of the time value of money and 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 cost.
Contingent liabilities and assets
Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably,
the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote.
Contingent assets are possible assets that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.
(xvi) Revenue recognition
The Company earns revenue primarily from selling of Cables and switchgear items
Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects
the consideration which the Company expects to receive in exchange for those products or services. The Company
recognizes revenue on satisfaction of the performance obligation by transferring the promised goods and services
mentioned in the contracts with the customers.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts,
performance bonuses, price concessions and incentives, if any, as specified in the contract with the customer. Revenue
also excludes taxes collected from customers.
The Company recognizes revenue for a performance obligation satisfied at point in time after satisfaction of the
performance obligation. In case where the outcome of a performance obligation cannot be reasonably measured but the
Company expects to recover the costs incurred in satisfying the performance obligation, the revenue is being recognized
only to the extent of the costs incurred until such time that it can reasonably measure the outcome of the performance
obligation.
The Company disaggregates revenue from contracts with customers by nature of goods and service.
Contract assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are
classified as unbilled revenue (only act of invoicing is pending) when there is unconditional right to receive cash, and
only passage of time is required, as per contractual terms.
Unearned and deferred revenue (“contract liability”) is recognised when there is billing in excess of revenues.
Interest income on financial assets (including deposits with banks) is recognised using the effective interest rate method.
Export Benefits
Income from Export entitlements are recognised in the statement of profit and loss on accrual basis.
(xvii) Expenditure
Expenses are accounted for on the accrual basis and provisions are made for all known losses and liabilities.
(xviii) Borrowing costs
Borrowing costs attributable to the acquisition or construction of a qualifying asset are capitalised as part of the cost
of the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use.
Other borrowing costs are recognised as an expense in the period in which they are incurred. Borrowing cost includes
exchange differences to the extent regarded as an adjustment to the borrowing costs.
(xix) Income tax
Income tax expense comprises of current tax and deferred tax. It is recognised in the Statement of Profit and Loss
except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best
estimate of the tax amount expected to be paid or received after considering the uncertainty, if any relating to income
taxes. It is measured using tax rates enacted at the reporting date.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised
amounts, and it is intended to realise the asset and settle the liability on a net basis.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the corresponding amounts used for taxation purposes.
Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for
unused tax losses, unused tax credits and deductible temporary differences to the extent that is probable that future
taxable profits will be available against which they can be used. Deferred tax assets unrecognised or recognised, are
reviewed at each reporting date and are recognised / reduced to the extent that it is probable / no longer probable
respectively that the related tax benefit will be realised. Significant management judgement is required to determine the
probability of deferred tax asset.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or liability
is settled, based on the laws that have been enacted or substantively enacted by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company
expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and deferred tax liabilities are offset only if there is a legally enforceable right to offset current tax
liabilities and assets levied by the same tax authorities.
(xx) Earnings per share
The Company presents basic and diluted earnings per share (EPS) data for its equity shares.
Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the period.
Diluted EPS is determined by adjusting profit or loss attributable to equity shareholders and the weighted average
number of equity shares outstanding, for the effects of all dilutive potential equity shares, which comprise convertible
preference shares and share options granted to employees
(xxi) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker is considered to be the Board of Directors who makes strategic
decisions and is responsible for allocating resources and assessing performance of the operating segments.
(xxii) Recent Indian Accounting Standards (Ind AS)
The Ministry of Corporate Affairs (MCA) vide notification dated 13 August 2025 issued the Companies (Indian Accounting
Standards) Second Amendment Rules, 2025. Certain amendments relating to Ind AS 1, Presentation of Financial
Statements (Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants) and the
consequential amendment to Ind AS 10, Events after the Reporting Period, are applicable for annual reporting periods
beginning on or after 1 April 2026 and are therefore not effective for the year ended 31 March 2026. These amendments
clarify the requirements for classification of liabilities as current or non-current, particularly in cases involving breaches
of covenants and grace periods, and the related assessment of events after the reporting period. The Company is in the
process of evaluating the impact of these amendments on its financial statements. Based on the preliminary assessment,
these amendments are not expected to have a material impact on recognition and measurement of liabilities in the
financial statements.
Notes:
1 Title deed of Immovable Property namely Freehold Land at Faridabad is held in name of the Company.
2 There are no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988)
3 Leasehold Improvement relates a new Industrial Property taken on lease by the Company in Palwal District in Haryana for expansion of
existing manufacturing capacity.
4 During the year, the company has elected to measure Land at fair value. Hence, an increase of Rs. 24,002.50 Lakhs was recognised
in property, plant and equipment and a Revaluation Reserve of Rs. 24,002.50 Lakhs had been created towards this. The Company has
earmarked the Revaluation Reserve separately and it is not available for distribution of dividends and bonus. The Valuation was carried out
by registered valuer.
5 Other than Freehold Land, the Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.
6 Refer Note 16 for details of assets pledged.
Securities premium reserve
Securities Premium reserve represents the amount received in excess of par value of securities (equity shares). The reserve is
utilised in accordance with the provisions of the Companies Act, 2013.
General reserve
General reserve represents the statutory reserve created in accordance with Indian Corporate law, wherein a portion of profit is
required to be apportioned to such reserve. Under the Companies Act, 1956, it was mandatory to transfer a required amount to
general reserve before a company could declare dividend, however, under the Companies Act, 2013, the transfer of any amount
to general reserve is at the discretion of the Company.
Revaluation reserve
The Company has adopted the revaluation model for its freehold land during the year. Based on the valuation carried out by an
independent registered valuer, the increase in carrying value amounting to ^ 24,002.50 lakhs, deferred tax of Rs. 3,119.31 lakhs
and net of deferred tax impact has been recognised in Other Comprehensive Income.
The Revaluation Reserve represents the cumulative net unrealised gain arising on revaluation of freehold land and is not
available for distribution as dividend. The reserve shall be utilised in accordance with the provisions of the Companies Act, 2013
and the applicable Indian Accounting Standards.
Note-A
In Pursuance to an order dated August 23, 2023 passed by the Hon’ble Supreme Court of India, the Company during the
previous financial year has received an enhanced compensation on September 30, 2024 amounting to Rs. 1029.41 lakhs from
Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) for land at Dharuhera measuring 9.25 acres
acquired by Haryana Government vide notification no. 32/4/2010-4 dated 13.5.2010.
Note-B
During the previous financial year, the Company concluded a legal dispute with a vendor and a customer. Pursuant to the
decision of the appropriate authorities, the Company has accounted for a net settlement amount of ^30.87 lakhs under the head
“Exceptional Items” as a one-time litigation settlement.
Note-C
During the previous year ended 31 March 2025, the Company had experienced a fire incident at its Faridabad Plant in October
2024, resulting in damage to inventory, plant and machinery and a portion of the factory building. Based on management’s
assessment of the damage and after considering the anticipated insurance claim receivable, the Company had recognised a net
loss of ^33.43 lakhs as an exceptional item in the Statement of Profit and Loss.
During the year ended 31 March 2026, upon reassessment of the insurance claim and based on the claim admitted by the
insurer, the aggregate amount recoverable/recognisable in respect of the said fire incident has been determined at f77.18
lakhs. Since the Company had already recognised a net loss of ^33.43 lakhs in the previous year, the net recoverable amount
recognised during the current year amounts to ^43.75 lakhs.
Note-D
One-time impact of New Labour Codes : Effective November 21,2025, the Government of India notified the four Labour Codes -
the Code on Wages, 2019, the Industrial Relations code, 2020, the Code on Social Security, 2020, and the Occupational Safety,
Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment has
published the final Central Rules under all four labour codes on 8th May 2026 and FAQs to enable assessment of the financial
impact due to changes in regulations. The Company has considered restructured compensation of its employees and assessed
the impact of the changes, consistent with the Labour codes, rules and FAQs. The Company has recognised Rs. 21.14 lakhs as
employee benefit expenses in current year on account of these New Labour Codes.
# Some of the Company’s borrowings have been contracted at floating rates of interest, which resets at short intervals. Accordingly,
the carrying value of such borrowings (including interest accrued but not due) approximates fair value.
* The carrying amounts of trade receivables, trade payables, cash and cash equivalents, bank balances other than cash and
cash equivalents, other current financial assets and other current financial liabilities, approximates the fair values, due to their
short-term nature. The other non-current financial assets represents bank deposits (due for maturity after twelve months from
the reporting date), security deposits, Insurance claims etc., the carrying value of which approximates the fair values as on the
reporting date.
There has been no transfers between Level 1, Level 2 and Level 3 for the years ended 31 March 2026 and 31 March 2025.
Valuation technique used to determine fair value
The fair values for loans were calculated based on effective interest rate method using a current lending rate.
All of the resulting fair value estimates for unlisted equity securities, where the fair values have been determined based on
present values and the discount rates used were adjusted for counterparty or own credit risk.
Valuation processes
The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required
for financial reporting purposes, including level 3 fair values. This team reports directly to the Senior Management. Discussions
on valuation and results are held between the Senior Management and valuation team atleast once every quarter in line with the
Company’s quarterly reporting periods.
b. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
• Credit risk ;
• Liquidity risk ;
• Market Risk - Foreign currency ; and
• Market Risk - Interest rate
Risk management framework
The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The board of directors has authorized respective business Managers to establish the processes, who
ensures that executive management controls risks through the mechanism of properly defined framework.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed by the business managers periodically to reflect changes in market conditions and the Company’s activities. The
Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive
control environment in which all employees understand their roles and obligations.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations.
Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks with high credit
ratings. Other financial assets represents security deposits given to suppliers, insurance policies and long term term deposits
with banks. The credit risk associated with such financial assets is relatively low.
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers the factors that may influence the credit risk of its customer base, including the default risk of the
industry and country in which customers operate.
The Company’s Management has established a credit policy under which each new customer is analyzed individually for
creditworthiness before the Company’s standard payment and delivery terms & conditions are offered. The Company’s review
includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases bank
references. Sale limits are established for each customer and any sales exceeding those limits require necessary approval.
Majority of the Company’s customers have been transacting with the Company for many years, and no impairement loss has
been recognized against these customers. In monitoring customer credit risk, customers are reviewed according to their credit
characteristics, including whether they are an individual or a legal entity, their geographic location, industry and existence of
previous financial difficulties.
The Company’s Management has established a credit policy under which each new customer is analyzed individually for
creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s
review includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases
bank references.
Majority of the Company’s customers have been transacting with the Company from many years, and no impairment loss has
been recognized against these customers. In monitoring customer credit risk, customers are reviewed according to their credit
characteristics, including whether they are an individual or a legal entity, their geographic location, industry and existence of
previous financial difficulties.
As per Ind AS 109, the Company makes allowance for doubtful trade receivable using simplified approach, significant
judgement is used to estimate doubtful accounts as prescribed in IND AS 109. In estimating doubtful accounts historical and
anticipated customer performance are considered. Changes in the economy, industry, or specific customer conditions may
require adjustments to the allowance for doubtful accounts recorded in financial statements. This is done on the basis of
company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
The Company’s exposure to credit risk for trade receivables is as follows:
[ii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial assets. The Company’s approach to manage liquidity is to have sufficient
liquidity to meet it’s liabilities when they are due, under both normal and stressed circumstances, without incurring unacceptable
losses or risking damage to the Company’s reputation.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of credit facilities to meet obligations when due and to close out market positions. Due to the
dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under
credit facilities.
Liquidity risk results from the Company’s potential inability to meet the obligations associated with its financial liabilities, for
example settlement of financial debt and paying suppliers. The Company’s liquidity is managed by Company Treasury. The aim
is to ensure effective liquidity management, which primarily involves obtaining sufficient committed credit facilities to ensure
adequate financial resources and, to some extent, tapping a range of funding sources.
Net financial debt is used internally by Company Treasury to monitor the Company’s credit resources available. Net financial
debt is the Company’s net interest-bearing debt, excluding interest-bearing assets, as these assets are not actively managed
in relation to liquidity risk.
As at 31 March 2026, net financial debt was Rs. 13,731.19 lakhs (31 March 2025: Rs. 7,424.33 Lakhs).
As at 31 March 2026, the Company had total unutilised credit facilities of Rs. 514.18 lakhs (31 March 2025: Rs. 1028.91 lakhs),
of which Rs. Nil (31 March 2025: Rs. Nil) was non-current credit facilities. Credit resources available consist of the unutilised
credit facilities, bank balances and cash and cash equivalents of Rs. 2,844.45 lakhs (31 March 2025: Rs. 2,299.88 lakhs).
Financial risk management (continued)
The inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to derivative
financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity.
The interest payments on variable interest rate loans in the table above reflect market forward interest rates at the reporting
date and these amounts may change as market interest rates change.
(iii) Market risk
Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return.
A. Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
borrowings with floating interest rates.
Exposure to interest rate risk
The Company’s interest rate risk arises majorly from the term loan carrying floating rate of interest. These obligations
exposes the Company to cash flow interest rate risk. The exposure of the Company’s borrowing to interest rate changes
as reported to the management at the end of the reporting period are as follows:
B. Currency risk
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange
rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial
position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other
currencies from the Company’s operating, investing and financing activities.
Capital Management
The primary objective of the management of the Company’s capital structure is to maintain an efficient mix of debt and equity in
order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to pursue business
opportunities and adequate access to liquidity to mitigate the effect of unforeseen events on cash flows. Management also
monitors the return on equity.
The Board of directors regularly review the Company’s capital structure in light of the economic conditions, business strategies
and future commitments.
For the purpose of the Company’s capital management, capital includes issued share capital, securities premium and all other
equity reserves. Debt includes term loan.
During the financial year ended 31 March 2026, no significant changes were made in the objectives, policies or processes
relating to the management of the Company’s capital structure.
(i) Leave obligations
The compensated absenses cover the Company’s liability of earned leave.
The amount of the provision of Rs. 19.79 lakhs (March 31, 2025: Rs. 11.44 lakhs) is presented as current since the
Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past
experience, the Company does not expect all employees to take full amount of accrued leave or require payment within
the next 12 months.
(ii) Post-employment obligations (Gratuity)
The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The employees who are
in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement /
termination is the employee’s last drawn basic salary per month computed proportionately for 15 days’ salary multiplied
with the number of years of service. The gratuity plan is a partly funded plan and the Company makes contributions to
recognised funds in India.
(iii) Defined contribution plans
The Company also has certain defined contribution plans. Contributions are made to provident fund and employee’s
state insurance scheme for employees as per regulations. The contributions are made to funds administered by the
government. The obligation of the Company is limited to the amount contributed and it has no further contractual or any
constructive obligation.
(iii) Changes in defined benefit obligation due to 1% increase/decease in mortality rate, is negligible.
The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant.
In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumption the same method (present value of the
defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been
applied as when calculating the defined benefit liability recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior
period.
The guarantees have been given in the ordinary course of business and the obligations are expected to be discharged
accordingly and no liability is anticipated in these respects.
In respect of the above claims, notices and obligation against the Company which have arisen in the ordinary course of
business, all available legal steps have been taken to protect the Company’s interest. Based on the status of these cases and
as advised by Company’s advisors, wherever applicable, the management believes that the Company has strong chance of
success and the existing provision would be sufficient to meet the liability if any arises on the Company.
40. Contingent Assets
“The Company had initiated legal proceedings before the Hon’ble District Court, Rewari, the Hon’ble High Court of Punjab
and Haryana, and the Hon’ble Supreme Court of India seeking enhanced compensation for 9.25 acres of land acquired by the
Haryana State Industrial & Infrastructure Development Corporation (HSIIDC) in prior years. Pursuant to the Hon’ble Supreme
Court’s judgment dated August 23, 2023, the compensation was revised and the Company received ^1,029.41 lakh through
execution proceedings before the District Court, Rewari, towards the enhanced compensation in the previous financial year on
September 30, 2024.
The Company has initiated further legal proceedings for rectification of the interest calculation and anticipates an additional
receivable of approximately ^625 lakhs, subject to final adjudication. This amount has been treated as a contingent asset in line
with applicable accounting principles.
41. The Company has established a comprehensive system of maintenance of information and documents that are required by the
transfer pricing legislation under section 92-92F of the Income Tax Act, 1961.
49. The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2026 and 31
March 2025.
50. There are no charges or satisfaction yet to be registered with ROC beyond the statutory period except as follows:
51. There are no undisclosed incomes that has been surrendered or disclosed as income during the year in the tax assessments
under the Income Tax Act, 1961.
52. The Company does not have any balances or any transaction during the year with Companies struck off under section 248 of
the Companies Act, 2013 or section 560 of Companies Act, 1956:
53. In terms of Section 135 of The Companies Act, 2013, the Company is required to constitute a corporate social responsibility
(CSR) Committee of the Board of Directors and the Company has to spend 2% of the average net profits of the Company’s
three immediately preceding financial year calculated as per section 198 of the Companies Act 2013.
54. Previous year’s figures have been rearranged, where necessary, to conform to the current year’s classification.
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