14. Provisions, Contingent Liabilities and ContingentAssets:
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that the Company will be required to settle the obligation and a reliable estimate can be made of the amount of obligation.
Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet
date.
Contingent liabilities are disclosed in the Financial Statements by way of notes to accounts, unless possibility of an outflow of
resources embodying economic benefit is remote.
Contingent assets are neither disclosed nor recognised.
Provisions, Contingent Liabilities and ContingentAssets are reviewed at each Balance Sheet Date.
15. Taxes on Income:
Income Tax Expense Comprises of Current Tax and Deferred Tax.
(i) Current Taxes:
Current Tax is recognised in the Statement of Profit and Loss except to the extent it relates to an item which is recognised
directly in equity or in other comprehensive income. Current tax is the expected tax payable/receivable on the taxable
income/loss for the year using applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of
previous years, income/ expenses and penalties, if any, related to income tax are included in current tax expense.
(ii) Deferred Taxes:
Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for
financial reporting purposes and the corresponding amounts used for taxation purposes.
A deferred tax liability is recognised based on the expected manner of realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted, or substantively enacted, by the end of the reporting period. Deferred tax
assets are recognised only to the extent that it is probable that future taxable profits will be available against which the asset
can be utilised. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer
probable that the related tax benefit will be realised.
16. Revenue Recognition:
(i) SaleofProducts:
The Company earns revenue primarily from sale of Products. As per Ind AS 115 Revenues are recognised when the
company satisfies the performance obligation by transferring product to the customer. A product is transferred when the
customer contains control of that product, which is at the point of transfer of custody to customers where usually the title is
passed, provided that the contract price is fixed or determinable and collect ability of the receivable is reasonably assured.
Revenue is measured at the transaction price of the consideration received or receivable and represents amounts receivable
for goods provided in the normal course of business, net of discounts, taking into account contractually defined terms of
payment and excluding taxes or duties collected on behalf of the government. Any retrospective revision in prices is
accounted for in the year of such revision.
(ii) Interest Income:
Interest income is recognised on time proportion basis.
(iii) Other Income:
(a) Dividend onInvestmentsisaccounted whenreceived.
(b) Insurance claim receivable is recognised in the year of the loss, to the extent ascertainable.
(c) Any Other Income is recognised in the Statement of Profit and Loss Account as and when accrued.
(d) In cases where duty paid material are consumed prior to duty free import of material for manufacture of products for
export, the estimated excess cost of such material over that of duty free material, is carried forward and charged to
revenue on consumption of such duty free materials.
(iv) GovernmentGrants:
Government grants are recognised when there is reasonable assurance that the Company will comply with the relevant
conditions and the grant will be received.
Government grants are recognised in the statement of profit and loss, either on a systematic basis when the Company
recognizes, as expenses, the related costs that the grants are intended to compensate.
Government grants related to assets are deferred and amortised over the useful life of the asset.
17. Expenditure:
Expenditure are generally accounted on accrual basis as they are incurred, except those with significant uncertainties.
18. Employee Benefits:
Defined Contribution Plans
Contributions to defined contribution schemes such as provident fund,etc. are charged as an expense based on the amount of
contribution required to be made as and when services are rendered by the employees. The above benefits are classified as
Defined Contribution Schemes as the Company has no further defined obligations beyond the monthly contributions
Defined benefit plans
Defined Benefit plans comprising of gratuity are recognized based on the present value of defined benefit obligation which is
computed using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting
period.
Net interest on the net defined liability is calculated by applying the discount rate at the beginning of the period to the net defined
benefit liability or asset and is recognised in the statement of profit and loss.
Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (excluding net interest as
defined above) and the return on plan assets (excluding net interest as defined above), are recognized in other comprehensive
income in the period in which they occur. Remeasurements are not reclassified to profit and loss in subsequent periods.
The Company contributes all ascertained liabilities with respect to gratuity to Life Insurance Corporation of India (LIC).
The retirement benefit obligation recognised in the Financial Statements represents the actual deficit or surplus in the Company's
defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available
in the form of reductions in future contributions to the plans.
In respect of certain employees who are unfunded through the approved trust, the gratuity liability is provided as per the actuarial
valuation.
Gain or loss on account of actuarial valuation is routed through other comprehensive income.
Short-term employee benefits
Short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised,
undiscounted, during the period the employee renders services. These benefits include salary, wages, bonus, performance
incentives etc.
Other long-term employee benefits
Other long-term employee benefit comprises of leave encashment towards un-availed leave and compensated absences; these
are recognized based on the present value of defined obligation which is computed using the projected unit credit method, with
actuarial valuations being carried out at the end of each annual reporting period. These are accounted as current employee cost.
The monetary value of leave encashment benefit is for the Factory Workers and is accounted on the basis of acturial valuation.
The employees, other than factory workers are not permitted to carry forward their leaves beyond a period of one year and hence
the liability if any arising on such employees would be of short term nature and shall be accounted on actual basis as and when
paid.
19. Earnings PerShare:
Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares
outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average
number of equity shares considered for deriving the basic earnings per share and the weighted average number of equity shares
that could have been issued upon conversion of all dilutive potential equity shares.
20. Leases :
At the commencement date of a lease, the company will recognise a liability to make lease payments (i.e., the lease liability) and
an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). It will separately
recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset. As per the provisions
of Ind AS 116, the company does not recognise the Lease Liability and right to use of underlying assets for the Leases which are
for period of less than 12 months or are for 'low value' assets.
Leases are classified as finance lease 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.
Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Lease rentals are charged to the Statement of Profit and loss.
Operating lease payments are recognized as prepayments and amortized 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.
21. Foreign Currency Transactions:
The financial statements are presented in Indian Rupees, the functional currency of the Company. Items included in the financial
statements of the Company are recorded using the currency of the primary economic environment in which the Company operates
(the ‘functional currency').
Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction.
Foreign exchange gains and losses from settlement of these transactions, and from translation of monetary assets and liabilities at
the reporting date exchange rates are recognised in the Statement of Profit and Loss.
Premium or discount on Foreign Exchange Forward Contracts are charged to the Profit and Loss Account alongwith gain / loss on
forward cover contract.
22. Derivative Instruments and HedgeAccounting:
The Company uses derivative financial instruments, such as forward exchange contracts, to manage its exposure to foreign
currency risks arising from its operating and financing activities.
Derivative financial instruments are initially recognised at fair value on the date the derivative contract is entered into and are
subsequently remeasured at fair value at each reporting date.
The Company does not designate derivative financial instruments in a hedging relationship for the purposes of hedge accounting
under Ind AS 109. Accordingly, changes in the fair value of derivative financial instruments, including gains and losses arising on
remeasurement and settlement thereof, are recognised in the Statement of Profit and Loss in the period in which they arise.
Derivative financial instruments with positive fair values are presented as financial assets, and those with negative fair values are
presented asfinancial liabilities
23. Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non¬
cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows are segregated into operating, investing and financing activities.
3. Derivative Instruments and Unhedged Foreign Exposures:
IIn respect of the import of raw materials and equipments, the Company used forward cover contracts to hedge its exposure to the
movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign
currency rates fluctuations and is not used by the company for trading or speculation purposes.
A. Market Risk
The Company's activities exposes it to various risk such as market risk, liquidity risk and credit risks. This section explains the
risks which the Company is exposed to and how it manages the risks. The Winding Wire business works on focusing on
processing margins. The risk of variation in purchase price of the input copper and sales price of Finished Goods, which is linked
to the same international pricing benchmarks, is managed by entering into back to back transactions for input copper purchase
against sales order booked. The aforesaid method is generally adopted for all sales transaction other than sale to Dealer market
which is lessthan 10% ofthe Company's sale in quantityas well as value terms.
B. Interest Risk
Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in
market interest rates. The Company is exposed to interest rate risk on short-term and long-term floating rate interest bearing
liabilities. The Company's policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion of fixed
and floating rate debt is determined by prevailing interest rates. These exposures are reviewed by the management on a
periodic basis.
C. Foreign Currency Risk
The Company may also have Foreign Currency Exchange Risk on procurement of Capital Equipment(s) for its Businesses. The
Company manages this forex risk, using derivatives, wherever required, to mitigate or eliminate the risk. The Company may also
have Foreign Currency Exchange Risk on Foreign Currency denominated Borrowings for its Businesses. The Company
manages this forex risk, using derivatives, wherever required, to mitigate or eliminate the risk.
The Company's exposure to foreign currency risk at the end of the reporting period expressed in 'Rs. In Lakhs' Given below :
i) Details of Derivative Instruments (Forward Contracts) outstanding (for hedged transactions mentioned below ) as on the
end of the year.
D. Liquidity Risk
The Company determines its liquidity requirements in the short, medium and long term. This is done by drawing up cash
forecast for short and medium term requirements and strategic financing plans for long term needs.
The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant
delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate
cash and cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of
managing assets with liquidity in mind and monitoring future cash flows and liquidity on a regular basis. Besides, it generally
has certain undrawn credit facilities which can be accessed as and when required; such credit facilities are reviewed at
regular intervals.
E. Credit Risk
Credit risks is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligation, and arises principally from the Company's receivables from customers.
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based
on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward¬
looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the
rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows:
4. Capital Management:
Capital Management is driven by Company's policy to maintain a sound capital base and to support the continued development
of its business. The Management and Board of Directors seeks to maintain a prudent balance between different components of
Company's capital. Managemen monitors capital structure and net financial debt. Net Financial debt is defined as current and
non-current financial liabilities less cash and cash equivalents and short term investments.
The Capital structure is governed by policies approved by the Board of Directors and monitors capital using gearing ratio, which
is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings
less cash and cash equivalents and short term investments.
8. Lease:
i) Lease contract entered into by Company are mainly in respect of premises taken on lease for setting of the Factory and
Office in the ordinary course of business. Lease Contracts are for the period of 3 to 7 years.
ii) The Company has applied a single discount rate to a portfolio of leases of similar assets in similar economic envoirnment.
iii) Applied the exemption not to recognized right to use ofAsset and Liabilities for Short Term Leases and Leases of low value
assets.
iv) The following are the changes in the carrying value of Right of use assets as on 31t March, 2026.
All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole.
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
C. NOTES TO ACCOUNTS (Contd.)
12. Other Regulatory Information :
(i) The company holds all the title deeds of immovable property in its name.
(ii) The Company does not have asset classified as Investment Property.
(iii) During the year, the Company has not revalued its Property, Plant & Equipments (including Right of Use Asset).
(iv) During the year, the Company has not valued its Intangible Assets.
(v) During the year, the Company has not given any loans to the Promoters, Directors, KMPs and the Related Parties either
severally or jointly, with any other person.
(vi) Capital Work-in Progress (CWIP)
(xv) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the
CompaniesAct, 2013.
(xvi) (A) The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(xvi) (B) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(xvii) The company has no such 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 (such as, search or survey or
any other relevant provisions of the Income TaxAct, 1961).
(xviii) The company has not traded or invested in Crypto currency or Virtual Currency during the year.
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