Note(s):
(a) No Trade Receivables are due from directors or other officers of the Company or any of them either severally or jointly with any other person nor from firms or private companies respectively in which any director is a partner or a director or a member, save and except outstanding Trade Receivables aggregating to ' 68.32 lakhs (previous year ' 337.80 lakhs) out of which due amount at the year end stood at ' 19.82 lakhs (previous year ' 89.29 lakhs) from a private company in which one of the directors of the Company is also a director as at the year end.
(b) Payment terms agreed with the customers are as per business practice and Trade Receivables have no significant financing components.
(c) The Trade Receivables have been hypothecated as security against bank borrowings/loans, the terms relating to which have been described in Note No.19 and 24.
(a) Terms/Rights attached to Equity Shares
The Company has issued only one class of shares referred to as equity share having a face value of ' 10/- each ranking pari-passu and holders thereof are entitled to one vote per equity share.
(d) Final dividend on equity shares are recorded as a liability on the date of approval by the shareholders of the Company and Interim dividends are recorded as a liability on the date of declaration by the Company’s Board of Directors. The Company declares and pays Dividend in Indian Rupees.
(e) There were no buy back of equity shares, issue of bonus shares or issue of shares pursuant to contract without payment being received in cash during the previous five years.
Secured
(a) Loans from Banks (excluding a term loan secured by way of subservient charge on specific movable plant & machinery) are secured by way of hypothecation charge over movable Property, Plant and Equipment (excluding assets specifically charged to specific project term loan lenders), both present and future, and charge created by way of mortgage by deposit of title deeds of certain immoveable properties of the Company, ranking pari-passu interse amongst consortium lender banks and term loan lenders (including Buyer’s Credit & Supplier’s Credit). Loans from Banks are further secured by first or second pari-passu charge (specific to each term loan) by way of hypothecation of entire Current Assets, both present and future, of the Company viz inventories, bills receivables, book debts, claims, etc. Rupee Term Loans from Banks are repayable in quarterly instalments, over a period of five to seven years commencing from May, 2022 and ending on July, 2031 and carry rate of interest varying from 8.75% to 9.45% per annum on the reporting date. Buyer’s Credit/ Supplier’s Credit in Foreign Currency availed from Banks are due for repayment between June, 2026 to August, 2028 and carry rate of 2.77% to 4.39% per annum on the reporting date.
(b) Neither registration nor satisfaction of any charges are pending to be filed/registered with the Jurisdictional Registrar of Companies beyond the statutory period in respect of security created by the Company in favour of lenders.
(c) Term Loans were applied for the purpose(s) for which the same were availed.
Unsecured
(d) Loans from Bodies Corporate and Related Parties presently carry rate of interest 8.50% per annum and are due for repayment between August, 2026 and March, 2028 as per the mutually agreed repayment schedule with the concerned lenders. Further, the repayment of said Loans (excluding certain loan from a body corporate) is subject to prior permission of the lead bank under a consortium banking arrangement of the Company for secured loans & borrowings.
(e) Rupee Term Loan from a Non-Banking Financial Company presently carry rate of interest at 10.60% per annum and is repayable in equal quarterly instalments commencing from June, 2024 and ending on March, 2027.
(either fully or partially) and, inter-alia, demand repayment in case of non-compliance of terms and conditions of sanctions or deterioration in the sanctioned loan accounts in any manner.
(b) Working Capital Loans/Borrowings (both fund and non fund based) from Banks are secured by first and/or second charge by way of hypothecation of entire Current Assets, both present and future, of the Company viz. inventories, bills receivables, book debts (trade receivables), claims, etc. ranking pari-passu amongst the lender consortium banks and certain secured term loan lender Banks; and are further secured by way of hypothecation of moveable Property, Plant and Equipment (excluding assets specifically charged to specific project term loan lenders), both present and future, and charge created by way of mortgage by deposit of title deeds of certain immovable properties of the Company, ranking pari-passu interse amongst the lender consortium Banks and certain term loan lender Banks.
(c) Funds raised on short term basis have not been utilised for long term purposes and deployed for the purpose(s) they were obtained.
(d) Charge with respect to above working capital borrowings has been created in favour of Security Trustee acting for the benefit of and on behalf of the lenders.
(e) Bank Returns/Stock Statements filed by the Company with its Bankers are materially in agreement with the books of account.
(f) Neither registration nor satisfaction of any charges are pending to be filed/registered with the Jurisdictional Registrar of Companies beyond the statutory period in respect of security created by the Company in favour of lenders.
*The Employee Benefits Expense for the financial year ended 31st March, 2026 includes the incremental impact of Gratuity liability amounting to ' 681.89 lakhs (previous year ' Nil) based on actuarial valuation and management estimates, in pursuance to the four new Labour Codes which have been made effective from 21st November, 2025, in accordance with the guidance provided by the Institute of Chartered Accountants of India and other relevant clarifications by the Ministry of Labour & Employment, Government of India. The Company will continue to monitor the developments and may update the estimates as required in the period in which State(s) rules are notified and further clarifications/update on the governing provisions of the new Labour Codes are available.
39. Capital and other commitments:
(a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of capital advances) ' 12569.13 lakhs (previous year ' 24832.00 lakhs).
(b) The Company has certain pending contracts for sale of its products and providing turnkey services incidental thereto. The governing terms and conditions whereof, inter-alia, provide for levy of liquidated damages, penalty, etc. on account of non-fulfillment of contractual obligations within the period as specified in the relevant contracts. Provision has been made on this account wherever considered necessary.
40. The standalone financial statements of the Company for the year ended 31st March, 2026 were approved and authorised for issuance by the Board of Directors in its Meeting held on 23rd May, 2026. The Board of directors has also recommended a dividend of ' 4.50 (previous year ' 4/-) per fully paid up equity shares of ' 10/- each of the Company for the financial year ended on 31st March. 2026 involving a payment of ' 1561.29 lakhs, subject to approval by the shareholders in the ensuing Annual General Meeting of the Company.
(i) The Company is contesting the demand for Terminal Tax liability raised by the Municipal Corporation of Satna (M.P.) pertaining to financial years from 2002-03 to 2012-13, by challenging, inter-alia, the constitutional validity of alleged provisions of the Madhya Pradesh Municipal Corporation Act, 1956 and the matter is pending the decision of the Hon’ble High Court of Madhya Pradesh, Jabalpur. Based on the legal evaluation, the likelihood of any liability arising on the Company from the outcome of the said pending litigation is remote.
(ii) The Company does not expect outcomes of pending appeals arising from certain disallowances made in the income tax assessments of earlier years to have a material adverse effect on its financial conditions, result of operations or cash flows.
Outstanding Trade Receivables are usually non-interest bearing and are generally on credit terms upto 90 days except retention money and certain other recoverable amounts withheld by the customer(s) as per the governing terms and conditions of the underlying contract(s)/turnkey contracts. The outstanding Trade Receivables relating to turnkey contracts are generally non-interest bearing and credit terms thereunder are specific to each of such contracts. During the Current year, the Company has recognised a provision for expected credit loss on Trade Receivables of ' 110.02 lakhs (previous year ' 135.59 lakhs).
Contract Assets include Unbilled Revenue as receipt of customers’ acceptances are conditional upon successful completion of milestones and certification of installation. Contract Liabilities include advances received from customers and Excess of Billing over the Revenue.
43. Leases (Ind AS 116)
The Company as a Lessee
(a) The Company’s significant leasing arrangements are in respect of leases for premises (residential, office, stores, godown, etc.) These leasing arrangements are usually renewable by mutual consent on mutually agreeable terms.
(b) The Company has applied the practical expedient for accounting of short term leases i.e. it has recognised lease payments as expense as per para 6 of Ind AS 116 instead of recognising the lease transaction as right of use asset with corresponding lease liability as required under para 22 of Ind AS 116.
(a) The Company makes annual contribution to the employee group gratuity scheme of the Life Insurance Corporation of India, a funded defined benefits plan for qualified employees. The Scheme provides for lumpsum payments to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days basic salary for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service. The Company has provided for gratuity based on the actuarial valuation done as per Projected Unit Credit Method. A separate Trust Fund is created to manage the Gratuity Plan and the contributions towards the Trust Fund is done as guided by Rule 103 of the Income Tax Rules, 1962. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The
overall expected rate of return on plan assets is determined based on the market prices prevailing as on balance sheet date, applicable to the period over which the obligation is to be settled. The Company expects to contribute ' 50.00 lakhs along with a part of incremental liability for past services arising due to implementation of provisions of new labour codes to the approved Gratuity Fund during the year 2026-27.
(b) Pension payable to select category of ex-employees (or to spouse upon death of the employee concerned) as per Company’s Scheme being a defined benefits plan, a non-funded scheme, is provided for based on actuarial valuations done as per Projected Unit Credit Method. The most recent actuarial valuation of the change in defined benefits obligation and net defined benefit liability were carried out as at 31st March, 2026 through an independent fellow member of the Institute of Actuaries of India.
(ii) Provident Fund
The Company contributes its share of Provident Fund (a defined contribution scheme) as determined based on specified percentage of the eligible payroll costs in an approved provident fund trust viz. Universal Cable Limited Employee Provident Fund (except pertaining to employees of Company’s Goa unit). The Company is liable for shortfall, if any, in the fund asset based on the government specified/notified minimum rate of return. Based on the valuation made by an independent Actuary, there is no shortfall in the fund assets as at 31st March, 2026. The Company’s contributions to defined contribution scheme including that made to Government administered Provident/ Family Pension Fund pertaining to Goa Unit are charged to Statement of Profit and Loss as incurred. The Company has no further obligations beyond its contribution.
46. Disclosure on Corporate Social Responsibility Expenses:
(a) Gross amount required to be spent by the Company during the year pursuant to the provisions of Section 135 of the Companies Act, 20l3 and rules made thereunder is ' 161.60 lakhs as detailed in Note (b) below (previous year ' 127.47 lakhs including accrued interest of ' 0.33 lakh on unspent CSR funds of an ongoing project relating to financial year 202324 which were kept in a separate bank account).
(a) The balance unspent amount of ' 44.76 lakhs pertaining to an Ongoing CSR Project of the financial year 2025-26 has been transferred subsequent to the end of the year in a Special Bank Account within the time prescribed therefor as per the provisions of sub-section (6) of Section 135 of the Companies Act, 2013 read with rules made and clarifications issued thereunder.
(b) The aggregate gross amounts of ' 161.60 lakhs required to be spent by the Company towards CSR activities during the financial year 2025-26 includes -
(i) Setoff of excess spent/earmarked CSR amount ' 0.23 lakh during the financial year 2024-25 in accordance with the third provisio to Section 135(5) of the Companies Act, 2013 and rules made thereunder;
(ii) Accrued interest income of ' 1.18 lakh on unspent CSR funds of ongoing project(s) relating to financial year 2024-25, which were kept in a separate bank account as per provision of sub-section (6) of Section 135 of the Companies Act, 2013 read with rules made and clarifications issued thereunder;
(iii) Re-allocation of the balance unspent amount of ' 20.55 lakhs of an abandoned ongoing project pertaining to financial year 2024-25 to an eligible project during the financial year 2025-26.
The management assessed that the fair value(s) of cash and cash equivalents, other bank balances, trade receivables, loans, other financial assets, borrowings, trade payables, and other financial liabilities approximates the respective carrying amounts largely due to the short-term maturities of these instruments. For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to their fair values.
The following methods and assumptions were used to estimate the fair values:
(a) The Equity Investments which are Quoted, the fair value has been taken at the market prices/ NAV of the same as on the reporting dates. They are classified as Level 1 fair values in fair value hierarchy.
(b) The derivative financial instruments which are unquoted, the fair value has been taken at based on value certificate given by respective Banks. They are classified as Level 2 fair values in fair value hierarchy.
(c) The Equity Investments which are Unquoted, the fair value has been taken as per the valuation report certified by Chartered Accountant(s) as on the reporting dates save and except investments in a power producer company, the fair value of which has been taken at cost as per the terms of the Power Purchase Agreement (Refer Note No. 7). They are classified as Level 3 fair values in fair value hierarchy.
(d) The derivative financial instruments which are quoted, the fair value has been taken at the market-price of the same as on the reporting dates. They are classified as Level 1 fair values in fair value hierarchy.
Fair Value Hierarchy
The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair value are disclosed in the standalone financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 “Fair Value Measurement”.
The Company’s activities are exposed to a variety of Financial Risks from its Operations. The key financial risks include Credit Risk, Market Risk and Liquidity Risk. The Company also uses derivative instruments on selective basis prudently to manage the volatility of financial markets and minimise the adverse impact on its financial performance in accordance Risk Management Policy framework.
(a) Credit Risk
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the Company. The Company is exposed to credit risk from its operating activities primarily arising from trade receivables from customers and other financial instruments.
Customer credit risk is managed as per the Company’s established policy, procedures and control framework relating to customer credit risk management. The Company assesses the credit quality of the counterparties taking into account their financial position and credit worthiness, the age of specific receivable balance and the current and expected collection trends, age of its contracts in progress, historically observed default over the expected life of trade receivables. Credit risk on trade receivables is limited due to the Company’s large and diverse customer base which includes public sector enterprises (including metro railways), central/state power utilities, renowned private sector utilities and large industrial customers having good credit rating(s). Credit risk is reduced to a significant extent if the turnkey project(s) have sufficient financial closure in the form of assured funding/budgetary support from the Central/State Government(s) or its financing agencies or commercial banks, etc. and achieving project milestone within the contracted completion schedule. Credit risk is also actively managed to the extent feasible by securing payment through letter(s) of credit, advance payment and bill discounting facility. The Company’s exposure (unsecured trade receivables) and credit ratings of its counterparties are continuously monitored and assessed while ensuring that the aggregate value of transactions is reasonably spread amongst counterparties. The Company uses expected credit loss model to assess the impairment allowance on trade receivables, if any, on the reporting date and accordingly applied the same for measurement and recognition of impairment losses on trade receivables.
(b) 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.
Market risk is attributable to all market risk sensitive financial instruments including foreign currency Trade Receivables and Trade Payables. The Company is exposed to market risk primarily related to foreign exchange rate risk and interest rate risk. Thus, exposure to market risk is a function of investing and borrowing activities’ and revenue generating and operating activities in foreign currency.
(i) Foreign Exchange Risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions of imports, exports and borrowings primarily with respect to USD, Euro and Chinese Yuan Renminbi (CNY). The Company’s exports are denominated generally in USD and Euro thereby providing a natural hedge to that extent against foreign currency payments on account of imports of raw materials and/or the re-payment of borrowings and interest thereon. The foreign currency transaction risk is also managed through selective hedging by way of forward contracts for underlying transactions having firm commitments or highly probable forecast of crystalisation.
The Company has entered into certain derivative contracts for hedging the exposure in foreign currency and has recognised a gain/loss in the Statement of Profit & Loss on measurement of said contracts at fair value on the reporting date. The fair value of derivative instrument is measured based on valuation received from the authorised dealer (Bank).
(iv) Commodity Price Risk
The volatility in prices of certain key commodity raw materials, packing materials, etc. can significantly impact cost and profitability of the Company. Its operating activities require the purchase of raw materials and other commodity products for manufacturing of Cables, Capacitors, etc. and certain bought out components for execution of Turnkey Contract(s) and related/incidental Services. It requires a continuous supply of certain raw materials and bought out components such as copper, aluminum, polymers, steel, jointing kits, etc. The prices of certain commodities eg. copper, aluminium, steel and polymers are subject to considerable volatility. Since the market prices in certain contracts are fixed on firm price basis, the fluctuation in prices of these commodities can severely impact the cost of the product or turnkey project, as the case may be. The Company gives priority to customers who allow price variation on major commodity input raw materials to avoid such risks. The Commodity price risk for certain key commodity raw material items eg. copper and aluminium is also managed through selective hedging by way of future contracts on London Metal Exchange (lMe) and also through forward booking with the suppliers on a case to case basis after due assessment of underlying risk. Occasionally, scarcity of polymers in the global market and price volatility due to geo political and variety of other reasons is a risk in terms of meeting customer’s delivery commitments. To mitigate such risk, the Company procures materials in tranches to even out price fluctuation. Also, the Company has tied up with globally renowned suppliers for timely supply at competitive prices for meeting the requirement of imported polymer products to manage the cost in volatile environment without any compromise on quality.
(c) Liquidity Risk
Liquidity risk is the risk where the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach is to ensure as far as possible that it will have sufficient liquidity to meet its liabilities when due and accordingly it manages the risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Further, the management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind. The Company has also developed appropriate internal control system and contingency plans for managing liquidity risk by regular assessment of expected cash flows and availability of alternative sources of additional funding, if required. As such, the Company believes that sufficient working capital is available to meet its currently assessed requirements.
The Company uses derivative instruments as part of its management of exposure to fluctuations in foreign currency exchange rates and commodity prices. The Company does not acquire or issue derivative financial instruments for trading or speculative purposes. The fair values of all derivatives are separately recorded in the Balance Sheet within current and non-current assets and liabilities. Derivatives that are designated as hedges are classified as current or non-current depending on the maturity of the derivative. The use of derivatives can give rise to credit and market risk. The Company as far as possible mitigates the risk by entering into contracts only with reputable banks and financial institutions. The use of derivative instruments is subject to limits, authorities and regular monitoring by appropriate levels of management. The limits, authorities and monitoring systems are periodically reviewed by the management and the Audit Committee and Risk Management Committee of the Board. The market risk on derivatives is mitigated by changes in the valuation of the underlying assets, liabilities or transactions, as derivatives are used only for risk management purposes.
(i) Cash flow hedges
The Company enters into forward exchange and commodity price contracts for hedging highly probable forecast transaction and account for them as cash flow hedges and states them at fair value. Subsequent changes in fair value are recognized in equity through OCI until the hedged transaction occurs, at which time, the respective gain or losses are reclassified to profit or loss when the hedged item affects profit or loss. When the forecasted transaction results in the recognition of a non-financial asset (e.g., inventory), the amount recognized in the cash flow hedge reserve is adjusted against the carrying amount of the non-financial asset. These hedges have been effective for the year ended 31st March 2026. The Company uses foreign exchange contracts from time to time to optimize commodity related exchange rate risk. Fair value changes on such forward contracts are recognized in other comprehensive income. The majority of cash flow hedges taken relates to hedging the foreign exchange rate of highly probable forecast transactions and commodity price contracts for hedging the commodity price risk of highly probable forecast transactions. The cash flows related to above are expected to occur during the year ended 31st March 2027 and consequently may impact profit or loss for that year depending upon the change in the commodity prices and foreign exchange rates movements.
(ii) Fair value hedge
The fair value hedges relate to forward covers taken to hedge currency exposure. The Company uses foreign exchange contracts from time to time to optimize currency risk exposure on its foreign currency transactions. Fair value changes on such forward contracts are recognized in the statement of profit and loss.
50. Capital Management:
The Company’s primary objective with respect to capital management is to ensure continuity of business and support the growth of the Company while at the same time provide reasonable returns to its various stakeholders and maximise shareholders value. In order to achieve these objectives, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Sourcing of capital is done through judicious combination of equity/ internal accruals and borrowings, both short term and long term. The capital structure is governed by policies approved by the Board of Directors and the Company monitors capital by applying net debt (total borrowings less investments and cash and cash equivalents) to equity ratio. The Company manages its capital structure and make adjustments in the light of changes in economic conditions and the requirements of financial covenants attached to the interest bearing loans and borrowings that define capital structure requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March, 2026 or corresponding previous year.
(c) Undisclosed income:
No transactions have been recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 - ' Nil (previous year ' Nil)
(d) 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 (whether recorded in writing or otherwise) that the Intermediary shall:
(i) 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
(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(e) 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:
(i) 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
Note: Explanation for changes in ratio by more than 25% -
(i) Increase in the Debt-Equity Ratio was mainly due to additional borrowings taken for business expansion/capital expenditure during the year.
(ii) Decrease in Debit Service Coverage Ratio as debt servicing commitments increased due to additional borrowings undertaken during the year as compared to corresponding previous year.
(iii) Increase in Return on Equity is mainly driven by improvement in profitability as compare to previous year.
(iv) Increase in Net Capital Turnover Ratio is mainly due to increase in turnover as compare to previous year.
(v) Increase in Net Profit Ratio due to higher profitability and improved operational efficiency during the year as compare to previous year.
(vi) Decrease in Return on Investment is attributable to the decrease in fair value of investment.
(g) The Company has not traded or invested in Crypto Currency or Virtual Currency during the reporting financial year and previous year.
53. No significant adjusting event occurred between the Balance Sheet date and the date of approval of the standalone financial statements by the Board of Directors of the Company requiring adjustment or disclosure.
54. Previous year figures have been regrouped/ re-classified, wherever considered necessary to conform to current year’s classification.
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