15. PROVISIONS AND CONTINGENT LIABILITIES & ASSETS

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event. 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 equivalent period government securities interest rate. Unwinding of the discount is recognised in the statement of profit and loss as a finance cost. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.

Contingent liabilities are disclosed when there is a possible 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 or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements.

Contingent assets are not recognised. However, when the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.

16. SEGMENT REPORTING

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the company’s chief operating decision maker to make decisions for which discrete financial statement is available. Based on the management approach as defined in Ind AS 108, the chief operating decision maker evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

17. FAIR VALUE MEASUREMENT

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most advantageous market for the asset or liability.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy.

DETERMINING THE FAIR VALUE

While measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

18. ROUNDING OFF OF AMOUNTS

All amounts disclosed in financial statements and notes have been rounded off to the nearest Millions as per requirement of Schedule III of the Act, unless otherwise stated.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (A) IMPAIRMENT TEST OF NON FINANCIAL ASSETS

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash Generating Units (CGU) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent to those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing impairment, management estimates the recoverable amount of each asset or CGU based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

(B) RECOGNITION AND MEASUREMENT OF PROVISIONS AND CONTINGENCIES

Provisions and liabilities are recognized in the year when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability require the application of judgement to existing facts and circumstances, which can be subject to change. Since the cash outflows can take place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.

CONTINGENCIES

In the normal course of business, contingent liabilities may arise from litigation, taxation and other claims against the Company. Where it is management’s assessment that the outcome cannot be reliably quantified or is uncertain, the claims are disclosed as contingent liabilities unless the likelihood of an adverse outcome is remote. Such liabilities are disclosed in the notes but are not provided for in the financial statements. When considering the classification of legal or tax cases as probable, possible or remote, there is judgement involved. Although there can be no assurance regarding the final outcome of the legal proceedings, the Company does not expect them to have a materially adverse impact on the Company’s financial position.

(C ) MEASUREMENTS OF DEFINED BENEFIT OBLIGATIONS PLAN

The Cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

(D) IMPAIRMENT OF FINANCIAL ASSETS

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting year.

(E ) INCOME TAXES

There are transactions and calculations for which the ultimate tax determination is uncertain and would get finalized on completion of assessment by tax authorities. Where the final tax outcome is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax in the year in which such determination is made.

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that the taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognized based upon the likely timing and the level of future taxable profits together with future planning strategies.

(F) DEPRECIATION / AMORTISATION AND USEFUL LIVES OF PROPERTY PLANT AND EQUIPMENT (PPE) / INTANGIBLE ASSETS: -

PPE / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded during any reporting period. The useful lives and residual values are based on the Company’s historical experience with similar assets and take into account anticipated technological changes. The depreciation /amortisation for future periods are revised if there are significant changes from previous estimates.

ii) Secured Term Loan availed under Guaranteed Emergency Credit Line(GECL) from Sandard Chartered Bank(SCB)

Hypothecation by way of (i) second charge over present and future current assets of the company and (ii) second charge over company's immovable property i.e. property bearing no. A-74 situated at Okhla Industrial Area, Phase-2, New Delhi together with all buildings and structures therein.

- Outstanding amount of INR 3.94 millions (31st March, 2023 INR 10.69 millions) repayable in 07 monthly EMI of INR 0.56 millions each

- Outstanding amount of INR 10.00 millions (31st March, 2023 INR 10.00 ) repayable in 36 monthly EMI of INR 0.30 millions each

iii) Secured Term Loan against property from Standard Chartered Bank

Secured by equitiable motgage on company's immovable property i.e. property bearing no. A-74 situated at Okhla Industrial Area, Phase-2, New Delhi together with all buildings and structures therein.

- Outstanding amount of INR 4.06 millions (31st March, 2023 INR 11.89 millions) repayable in 05 monthly EMI of INR 0.65 millions each.

iv) Secured by way of Hypothication of Respective Vehicle/Assets

List of Secured Vehicles Term Loan -Vehicle

' - Outstanding amount of INR Nil Millions (31st March, 2023 INR 1.67 millions) from bank.

- Outstanding amount of INR 1.92 Millions (31 March, 2023 INR 2.42 millions) from bank repayable in 34 monthly EMI of INR 0.06 millions each

- Outstanding amount of INR 3.79 Millions (31 March, 2023 INR 4.50 millions) from Financial Institution repayable in 49 monthly EMI of INR 0.09 millions each

- Outstanding amount of INR 0.70 Millions (31 March, 2023 INR Nil millions) from bank repayable in 28 monthly EMI of INR 0.03 millions each

- Outstanding amount of INR 3.00 Millions (31 March, 2023 INR Nil millions) from bank repayable in 36 monthly EMI of INR 0.10 millions each

- Outstanding amount of INR 0.80 Millions (31 March, 2023 INR Nil millions) from bank repayable in 36 monthly EMI of INR 0.03 millions each

B. CURRENTBORROWING

I) Cash Credit from Punjab National Bank(PNB) at inerest rate of 9.67% to 11.20% :- (i) Hypothecation by way of charge created against land and building of factory situated at Khatauni No.31/32,152/154, khasra no. 923/56 (10-18), 924/58(4-6), 874/49/1(0-2) village katha baddi District Solan Himachal Pradesh, (ii) hypothecation on all present and future current assets of the company (including entire stocks and book debts) and movable assets forming part of fixed assets/block assets, machines etc and (iii) Land in the name of director Sh.Sanjay Gupta situated at Mauza - Sulatnpur,Tehsil, District Sonepat along with personal guarantee of Directors.

ii) Cash Credit from Standard Chartered Bank(SCB) at inerest rate of 9.75% to 10.15%:-i) Hypot-hecation by way of Pari Passu charge over all present and future current assets of the company stored or to be stored at the company's godown or premises or wherever else the same may be (ii) Company's immovable property i.e. property bearing no. A-74 situated at Okhla Industrial Area, Phase-2, New Delhi together with all buildings and structures therein along with personal guarantee of Directors.

35. CAPITAL MANAGEMENT

For the purpose of the company's capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company's capital management is to maximise the shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The company includes within debt, interest bearing loans and borrowings, less cash and cash equivalent.

The management assessed that the fair value of cash and cash equivalent, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

The fair values for security deposits and other financial assets were calculated based on cash flows disco-unted using a current lending rate. They are classified as level 3 fair values in the Fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

ii. Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measure at fair value. To provide an indication about the reliability of the inputs used in determing fair value, the company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows below:

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instr-uments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2 - The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 - If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity shares, contingent consideration and indemnification assets included in level 3.

37. FINANCIAL RISK MANAGEMENT

The company's activity expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

(A) Credit risk

Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises from cash and cash equivalents carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

i. Credit risk management

The company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed on a group basis for each class of financial instruments with different characteristics. The company assigns the credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets: The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information

37. FINANCIAL RISK MANAGEMENT (B) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, company maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the company's liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. "

(i) Maturities of financial liabilities

The tables below analyse the company's financial liabilities into relevant maturity groupings based on their contractual maturities :

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk such as equity price risk and commodity risk.

(i) Foreign currency risk

The company generally does not operate internationally and is not exposed to foreign exchange risk arising from foreign currency transactions.

Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the company is to minimise the volatility of the INR cash flows of highly probable forecast transactions.

(ii) Interest rate risk

The company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the company to cash flow interest rate risk. During March 31, 2024 and March 31,2023 the company’s borrowings at variable rate were denominated in INR.

(a) Interest rate risk exposure

The exposure of the company’s borrowing to interest rate changes at the end of the reporting period are as follows:

(iii) Price risk (a) Exposure

Commodity price risk - The company is in the business of manufacturing cables and wires and will affected by the price volatility of mainly copper (metal) commodity. Its operating activities require the ongoing purchase and manufacture of finished goods - Cable and wires and therefore require a continuous supply of raw mateial - Copper. Due to the significantly increased volatility of the price of the copper, the company also entered into various daily purchase contracts in an active market. The sensitivity analysis of the change in copper price on the inventory as at year end, other factors remaining constant is given in table below:

43 OTHER STATUTORY DISCLOURES

(I). The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) . The Company have not traded or invested in Crypto currency or Virtual Currency during reporting periods.

(iii) . The Company have 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

(iv) . The Company have 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,

(v) .The Company does not have any 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 Tax Act, 1961)

(vi) .The Company does not have any borrowings from banks and financial institutions that are used for any other purpose other than the specific purpose for which it was taken at the reporting balance sheet date.

(vii) .The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

(viii) . The Company is not declared as a wilful defaulter by any bank or financial institution or other lender during the any reporting period.

(ix) .The Company shall disclose as to whether the fair value of investment property (as measured for disclosure purposes in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. Since, the Company does not have any investment property during any reporting period, the said disclosure is not applicable.

(x) .Section 8 of the Companies Act, 2013 companies are required to disclose grants or donations received during the year. Since, the Company is not covered under Section 8 of the Companies Act, 2013, the said disclosure is not applicable.

(xi) . There are no scheme of arrangements which have been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the reporting periods.

47. The company has filed court cases during the current financial year under negotiable instruments act to recover INR 2.22 millions (Previous Year March 31, 2023 : INR 1.96 millions) and they are considered good and recoverable.The court cases pending at the end of the year March 31,2024 is INR.8.10 millions (March 31,2023 :- INR 8.57 millions) and they are considered good and recoverable.

48. Previous Year Figures have been regrouped / rearranged ,wherever considered necesaary to conform to current years classification.

Significant Accounting Policies and Notes on Accounts form an integral part of the Financial Information.

As per our report of even date attached For and on behalf of the board

For and on behalf of

Shailendra Goel & Associates SANJAY GUPTA ADITYA GUPTA

Chartered Accountants Managing Director Wholetime Director

ICAI Firm Registration No: 013670N DIN :-00202273 DIN:-07625118

Shailendra Goel

Partner AJAY BATLA BHAVIKA KAPIL

^{Membership No:} 092862 Chief Financial Officer Company Secretary

Place: Delhi Date: 30 th May 2024