xi) Provisions, Contingent Liabilities and Contingent
Assets
The Company recognised the provisions when
the Company has a present legal or constructive
obligation as a result of past events, it is probable
that an outflow of resources will be required to
settle the obligation and the amount can be reliably
estimated. These are reviewed at each year end and
reflect the best current estimate. Provisions are not
recognised for future operating losses.
Where there are number of similar obligations,
the likelihood that an outflow will be required in
settlement is determined by considering the class
of obligations as a whole. A provision is recognised
even if the likelihood of an outflow with respect to any
one item included in the same class of obligations
may be small.
Provisions are measured at the present value of
Management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. If the effect of time value of
money is material, the provisions are discounted
using current pre-tax rate that reflects current
market assessments of the time value of money and
the risks specific to the liability. The increase in the
provision due to the passage of time is recognised as
interest expense.
A disclosure for a contingent liability is made when
there is a possible obligation or present obligation
arising from past events the existence of which
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 and
where it is either not probable that an outflow of
resources will be required to settle the obligation or a
reliable estimate of the amount cannot be made.
Contingent assets are neither recognised nor
disclosed in the financial statements.
xii) Revenue
Revenue from contracts with customer is recognised
when the Company satisfies a performance
obligation by transferring the promised goods or
services to a customer at a transaction price. The
Company assesses promises in the contract that
are separate performance obligations to which a
portion of transaction price is to be allocated. The
transaction price is the amount of consideration to
which the company expects to be entitled in exchange
for transferring promised goods or services to a
customer as per contract, excluding amount of taxes
collected on behalf of the government or other amount
collected from customers in its capacity as an agent.
The transaction price is adjusted of trade discount,
cash discount, volume rebate and other variable
considerations as per the terms of contract which is
estimated at contract inception and constrained until
it is highly probable that a significant revenue reversal
in the amount of cumulative revenue recognised will
not occur when the associated uncertainty with the
variable consideration is subsequently resolved. It is
reassessed at end of each reporting period.
Consideration payable to customers is accounted
as reduction of transaction price and therefore, of
revenue unless the payment to the customer is in
exchange for a distinct good or service that the
customer transfers to the Company.
Sale of Goods
Revenue from sale of products is recognised at a
point in time when the control on the goods have
been transferred to a customer i.e. when material is
delivered to the customer or as per shipping terms,
as may be specified in the contract.
Job Work
Revenue from Job work is recognised when intended
job work is carried out and goods are ready for
transfer to the owner of the goods.
Eligible export incentives are recognised in the year
in which the conditions precedents are met and there
is no significant uncertainty about the collectability.
xiii) Other Income
Interest Income
Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income can
be measured reliably. Interest income is accrued on
a time proportion basis, by reference to the principal
outstanding and the effective interest rate applicable,
which is the rate that exactly discounts estimated
future cash receipts through the expected life of the
financial asset to that asset's net carrying amount on
initial recognition.
Rental Income
Rental income is recognised in the statement of
profit and loss on straight line basis.
Dividend Income
Dividend Income from investments is recognised
when shareholder's rights to receive payment have
been established.
Commission Income
Guarantee commission income (notional) for the
financial guarantee issued by the Company to the
banks/ financial institutions in respect of credit
facility granted by the banks/ financial institutions to
the dealers of the Company is recognised over the
period of guarantee.
Guarantee commission income (notional) for the
financial guarantee issued by the Company to the
bank in respect of credit facility granted by the
bank to a subsidiary is measured at the higher of
the amount of loss allowance determined as per
impairment requirements of Ind AS 109 and the
amount recognised less cumulative amount of
income recognised in accordance with the principles
of Ind AS 115 amortisation.
xiv) Government Grant
Government grants are recognised when there
is reasonable assurance that the grant will be
received and the company will comply with all the
attached conditions. When the grant relates to
revenue expense, it is recognised as an income on a
systematic basis over the period necessary to match
it with the expenses that it is intended to compensate.
Government grant related to expenditure on property,
plant and equipment is included as cost of property,
plant and equipment and is credited to the statement
of profit and loss over the useful lives of qualifying
assets or credited to the statement of profit and loss
over the period in which the corresponding export
obligation is fulfilled. Total grants availed less the
amounts credited to the statement of profit and loss
at the balance sheet date are included in the balance
sheet as deferred income.
xv) Foreign Currency Transactions
Transactions denominated in foreign currencies
entered into by the Company are recorded in
the functional currency (i.e. Indian Rupees), by
applying the exchange rate prevailing on the date of
transaction. Foreign currency denominated monetary
items is restated at the closing exchange rates.
Non-monetary items are recorded at exchange rate
prevailing on the date of transaction. Non-monetary
items that are measured at fair value in a foreign
currency are translated using the exchange rates at
the date when the fair value is measured. Exchange
differences arising out of these translations are
recognised in the statement of profit and loss.
The forward exchange contracts are marked
to market and gain/ loss on such contracts are
recognised in the statement of profit and loss at the
end of each reporting period.
The Company as per previous GAAP elected to
recognise as part of cost of assets, exchange
differences arising on translation of long-term
foreign currency monetary items and this method of
recognition of such exchange difference is followed
by the Company as allowed under Ind AS 101. Such
differences are added/ deducted to/ from the cost of
assets and are recognised in the statement of profit
and loss on a systematic basis as depreciation over
the balance life of the assets.
xvi) Employee Benefits
a) Short Term Obligations
All employee benefits payable wholly within
twelve months of rendering the service are
classified as short-term employee benefits
and they are recognised in the period in which
the employee renders the related service. The
Company recognises the undiscounted amount
of short-term employee benefits expected to
be paid in exchange for services rendered as a
liability (accrued expense) after deducting any
amount already paid.
b) Post-Employment Benefits
i) Defined benefit plan
Gratuity liability is a defined benefit obligation
and recognised based on actuarial valuation
carried out using the Projected Unit Credit
Method. The scheme is maintained and
administered by Life Insurance Corporation
of India to which the Company makes
periodical contributions through its trustees.
ii) Defined contribution plans
A Defined Contribution Plan is plan under
which the Company makes contribution to
Employee's Provident Fund administrated
by the Central Government and Employee
State Insurance Fund administered by the
Employee State Insurance Corporation. The
Company's contribution is charged to the
statement of profit and loss.
c) Other Long Term Employee Benefits- Leave
Salary
The liability towards leave salary which is not
expected to be settled wholly within 12 months
after the end of the period in which the employees
render the related services is recognised based
on actuarial valuation carried out using the
Projected Unit Credit Method.
xvii) Borrowing Cost
Borrowing cost includes interest, amortisation
of ancillary costs incurred in connection with
the arrangement of borrowings and exchange
differences arising from foreign currency
borrowings to the extent they are regarded as an
adjustment to the interest cost.
Borrowing costs that are directly attributable to
the acquisition or construction of an asset that
necessarily takes a substantial period of time to
get ready for its intended use are capitalised. All
other borrowing costs are expensed in the period in
which they occur.
Tax expense is the aggregate amount included in
the determination of profit or loss for the period in
respect of current tax and deferred tax.
Current Tax
Current tax is the amount of income tax payable in
respect of taxable profit for the year. Taxable profit
differs from net profit as reported in the statement
of profit and loss because taxable profit is adjusted
for items of income or expenses which are taxable
or deductible in other years and also for items which
are not taxable or deductible under the Income Tax
Act, 1961("the IT Act").
The Company's liability for current tax is calculated
using tax rates and tax laws in force.
Deferred Tax
Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax
base used in the computation of taxable profit under
the "IT Act".
Deferred tax liabilities are generally recognised
for all taxable temporary differences. However, in
case of temporary differences that arise from initial
recognition of assets or liabilities in a transaction
(other than business combination) that affects
neither the taxable profit nor the accounting profit,
deferred tax liabilities are not recognised.
Deferred tax assets are generally recognised for all
deductible temporary differences to the extent it is
probable that taxable profits will be available against
which those deductible temporary differences can be
utilised. In case of temporary differences that arise
from initial recognition of assets or liabilities in a
transaction (other than business combination) that
affect neither the taxable profit nor the accounting
profit, deferred tax assets are not recognised.
The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent it is no longer probable that
sufficient taxable profit will be available to allow
entire or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are
expected to apply in the period when the liability
is settled or the asset is realised based on the tax
rates and tax laws in force. The measurement of
deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner
in which the Company expects, at the end of the
reporting period, to cover or settle the carrying
amount of its assets and liabilities.
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 realise the
asset and settle the liability simultaneously.
Current and deferred tax is recognised in statement
of profit and loss, except to the extent that it relates to
items recognised in Other Comprehensive Income or
directly in equity, in which case, the tax is recognised
in other comprehensive income or directly in equity,
respectively.
xix) Employee Share Based Payment
Equity-settled share-based payments to employees
are measured at the fair value of the employee stock
option at the grant date.
The fair value determined at the grant date of equity-
settled share-based payment is recognised as
deferred employee compensation and is amortised
in statement of profit and loss over the vesting
period, based on the Company's estimated of
equity instruments that will eventually vest, with
corresponding increase in the equity (Share based
payment reserve outstanding) in respect of employee
share-based payment to employees of the Company.
In respect of equity-settled share-based payments
to employees of subsidiaries of the Company, the
fair value determined at the grant date of equity-
settled share-based payment is recognised as
capital contribution by the Parent over the vesting
period, based on the Company's estimated of equity
instruments that will eventually vest to employees of
the subsidiaries with corresponding increase in the
equity.
At the end of each reporting period, the Company
revisit its estimate of the number of equity
instruments expected to vest. The impact of the
revision of the original estimates, if any, is recognised
in the statement of profit and loss or as capital
contribution such that the cumulative expense/
capital contribution reflects the revised estimate,
with a corresponding adjustment to the Share based
payment reserve outstanding.
xx) Segment Reporting
Operating Segment is a segment of an entity whose
operating results are regularly reviewed by the Chief
Operating Decision Maker (CODM) to make decision
about resource to be allocated to the segment and
assess it's performance and accordingly, information
of two reportable segment (Wires and Tubes) have
been disclosed. The Company has opted for an
exemption as per para 4 of Ind AS 108. Segment
information is thus given in the consolidated financial
statements of the Company.
xxi) Events after Reporting date
Where events occurring after the Balance Sheet
date provide evidence of conditions which existed at
the end of the reporting period, the impact of such
events is adjusted within the financial statements.
Otherwise, events after the Balance Sheet date of
material size or nature are only disclosed.
xxii) Earnings per Share
Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the period.
For the purpose calculating Diluted Earnings per
share, the net profit or loss for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity
shares.
xxiii) Research and Development
Expenditure incurred by the Company on development
of products are recognised as an intangible asset if
and only if, expenditure can be measured reliably, the
product or process is technically and commercially
feasible, future economic benefits are probable and
the Company intends to and has sufficient resources
to complete development and use or sell the assets
otherwise such expenses are recognised in the
Statement of Profit and Loss as incurred. Subsequent
to initial recognition, the assets are measured at cost
less accumulated amortisation and any accumulated
impairment losses, if any. Expenditures incurred on
research are charged to the Statement of Profit and
Loss as incurred.
Fixed assets utilised for research and development
are capitalised and depreciated in accordance with
the policies stated for Property, Plant & Equipment
and Intangible Assets.
xxiv) Business Combination
Business Combination under common control is
accounted as per "Pooling of Interest Method"
prescribed in Appendix C of Ind AS 103 "Business
Combinations" prescribed under Section 133 of the
Act read with, relevant clarifications issued by the
IND AS Transition Facilitation Group (ITFG) of the
Institute of Chartered Accountants of India (ICAI)
and other generally accepted accounting principles,
at carrying amount of assets and liabilities as
considered in the consolidated financial statements
after eliminating the inter-se transactions and
any excess of consideration issued over the net
assets absorbed is recognised as capital reserve
or amalgamation adjustment reserve on common
control business combination.
* Includes project related expenses aggregating to ? 33.23 Lakhs (P.Y. ' NIL). The said expenses comprises of borrowing cost,
personnel costs and other related expenses.
2.7 Capital Work-in-Progress, whose completion is overdue or has exceeded its cost compare to its original plan : ' NIL
(P.Y. ' NIL).
2.8 Capital Work-in-Progress, project temporarily suspended : ' NIL (P.Y. ' NIL).
2.9 No Proceeding against the Company has been initiated or are pending against the Company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
2.10 Revaluation of Property Plant & Equipment, Rights to Use Assets and Intangible Assets : ' NIL (P.Y. ' NIL)
2.11 Land classified as held for sale are the assets available for sale in its present condition and management is intending to
conclude the sale within a period of 12 months of the Balance Sheet date and measured at lower of its carrying value or
fair value less cost of sale.
2.12 Property, plant & equipment in transit and not included in above of ? 603.80 Lakhs (P.Y. ' NIL).
2.13 During the year the Company has executed the Sale Deed in respect of the balance land parcel bearing new Survey No.
78/1/2 admeasuring 14,005 sq. meters, which was classified as held for sale out of the larger land parcel upon receiving
the survey and sub-division order from the Survey and Settlement Officer, Silvassa and Deputy Collector (Silvassa) Dadra
and Nagar Haveli and adjusted the advance of ? 138.30 Lakhs received duirng in the previous year from R R Kabel Limited,
a related party.
3.1 During the year, the Company acquired 60% ownership interest in Tefabo Product Pvt. Ltd. under the share purchase
agreement dated 7th November, 2024 (Note 50).
3.2 Pursuant to the change in the shareholding structure of M/s Epavo Electricals Private Limited (EPAVO) wherein
the Company's interest in the ownership of EPAVO has reduced from 74% to 50% and upon execution of the Deed of
Amendment to the Joint Venture Agreement on 30th September, 2024, EPAVO ceased as a subsidiary of the Company w.e.f.
30th September, 2024.
3.3 The Company has issued a Corporate Guarantee to HDFC Bank Ltd. ("the Bank") floating with a personal guarantee of a
director of the Company and his relative for the working capital facility of ? 2,500.00 Lakhs (P.Y. ? 2,500.00 Lakhs) availed
by Epavo duly secured by hypothecation of current assets (both present and future) of Epavo, under Deed of Guarantee
dated 24th March, 2023. The said Corporate Guarantee will be released upon the creation of requisite security by Epavo
(Note 30(a)(ii)).
3.4 Guarantees are issued by the Company in accordance with Section 186 of the Companies Act, 2013 read with rules issued
thereunder. Details of guarantees issued and outstanding (Note 30(a)(ii)).
3.5 The Company has complied with the provision of section 2(87) of the Companies Act, 2013 read with the Companies
(Restriction on number of Layer) Rules, 2017.
3.6 Investments are held in the name of the Company and/ or its nominees. The Company has not pledged its investments to
raise loans.
3.7 Information on Company's ownership interest, financials and other information of the subsidiaries and the joint ventures -
Note 40 of the Consolidated Financial Statements.
4.1.3 Details of investments made and outstanding are given in Note 3 and Note 41.
4.2 Loans or advances to Promoters, Directors & KMPs : ' NIL (P.Y. ' NIL).
4.3 Loans given to the subsidiaries and a joint venture are out of accumulated profit and profit for the year, and not from the
borrowed fund.
4.4 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with
the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly, lend or invest
in other person or entities identified by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee,
security of the like to or on behalf of the Ultimate Beneficiaries.
4.5 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 whether, directly or indirectly, lend or
invest in other persons or entities identified by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
8.1 The above includes inventories held by third parties amounting to ' 260.49 Lakhs (P.Y. ' 131.31 Lakhs).
8.2 The cost of inventories recognised as an expense during the year is disclosed in Note 24 and 25.
8.3 The cost of inventories written down during the year : ' NIL (PY. ' NIL).
8.4 The inventories are hypothecated as the security as a disclosed in Note 13.4 & 13.5.
9.3 Trade Receivables are generally non-interest bearing with a credit period of 45 days to 90 days.
9.4 The Company has arranged the channel financing facility from the banks and the Financial Institutions for its customers
under which a sum of ' 8,366.68 Lakhs (PY. ' 4,678.15 Lakhs) has been received (net of advances) as on the date of
balance sheet and correspondingly the trade receivables stand reduced by the said amount. Also refer Note 30.2 in respect
of the first loan default guarantees issued by the Company in respect of the channel financing facility.
9.5 Trade Receivables have been pledged as a security against secured borrowing from the banks, the terms thereof disclosed
in Note 13.4 & 13.5.
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