(n) Provisions, Contingent liabilities and Contingent Assets
The Company recognises a provision when there is a present obligation as a result of past event that probably
requires an outflow of resources and reliable estimates can be made of the amount of obligation The provisions are
reviewed at the end of each reporting period and are adjusted to reflect the current best estimates. The timing of
recognition requires application of judgement to existing facts and circumstances which may be subject to change. A
disclosure of contingent liability is made when there is possible obligation or a present obligation that will probably not
require outflow of resources or where a reliable estimate of the obligation cannot be made. Where there is a possible
obligation or a present obligation and likelihood of outflow of resources is remote, no provision or disclosure is made.
Provision for warranty related costs are recognised when the terms and conditions attached to and forming part of
the executed portion of the contract of sale of products and/or providing of services or both are assessed to have
underlying obligations to be met during the warranty period. The estimate of such warranty costs is revised annually.
Contingent assets are not recognised but disclosed in the Standalone Financial Statements , where economic inflow
is probable.
(o) Employee Benefits
(i) Defined Contribution Plans
Contributions to approved Superannuation Fund as per Company’s scheme and Pension Fund/Employees
Recognised Provident Fund administered by Employees Provident Fund Organisation (EPFO), are recognised
as an expense in the Statement of Profit and Loss for the year when the employee renders the related service.
The Company recognises contributions payable under the relevant plan(s) as an expense, when an eligible
employee renders the related services.
(ii) Defined Benefit Plans
Gratuity, Pension and Compensated Absences benefits, payable as per Company’s schemes are considered as
defined benefit schemes and are charged to Statement of Profit and Loss on the basis of actuarial valuation
carried out at the end of each financial year by independent actuaries using Projected Unit Credit Method. For
the purpose of presentation of defined benefit plans, the allocation between short term and long term provisions
is made as determined by the independent actuaries. Actuarial gains and losses are recognised in the Other
Comprehensive Income.
The Provident fund Contribution, other than Contribution to Employees Recognised Provident Fund administered
by EPFO, is made to an approved trust of the Company administered by the trustees. The Company has
representation on the board of trust. The Company is liable for shortfall, if any, in the fund assets based on the
government specified minimum rates of return and the same is recognised as an expense in the Statement of
Profit and Loss.
Ex-gratia or other amount disbursed on account of selective employees separation scheme or otherwise are
charged to Statement of Profit and Loss as and when incurred/determined.
(p) Operating Leases
(i) Where the Company is the Lessee
The Company’s lease asset classes primarily consist of leases for Buildings. The Company, at the inception of
a contract, assesses whether the contract is a lease or not a lease. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a time in exchange for a consideration. The
Company has elected not to recognise Right-of-use Assets and lease liabilities for short-term leases that have a
lease term of 12 months or less and leases of low-value assets and the corresponding lease rental paid are
directly charged to the Statement of Profit and Loss. The Company recognises the lease payments associated
with these leases as an expense over the lease term. The Company recognises a Right-of-use Asset and a
lease liability at the lease commencement date. The Right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for any lease payments made at or before the
commencement date, plus any initial costs incurred. The Right-of-use Asset is subsequently depreciated using
the straight-line method from the commencement date to the end of the lease term. The lease liability is initially
measured at the present value of the lease payments that are not paid at the commencement date, discounted
using the Company’s incremental borrowing rate. Subsequently, lease liabilities are measured on amortised
cost basis.
(ii) Where the Company is the Lessor
Lease under which the Company does not transfer substantially all the risks and benefits of ownership of the
asset is classified as operating lease. Assets subject to operating lease are included in Investment Property.
Lease income from operating lease is recognised in the Statement of Profit and Loss on a straight line basis over
the lease term except where the lease payments are structured to increase in line with expected general inflation.
Costs including depreciation are recognised as an expense in the Statement of Profit and Loss.
(q) Foreign Currency Transactions / Translations
Transactions in foreign currencies are initially recorded in the functional currency, by applying to the foreign currency
amount the exchange rate between the functional currency and the foreign currency at the date of the transaction.
Foreign currency monetary items are translated into functional currency using the exchange rate prevailing at the
reporting date.
Exchange differences arising on the settlement of monetary items or on translating monetary items at the exchange
rates different from those at which they were initially recorded during the year, or reported in previous Standalone
Financial Statements , are recognised as income or expenses in the Statement of Profit and Loss in the year in which
they arise.
(r) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders
of the Company by the weighted average number of the equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit or loss for the year attributable to equity shareholders
of the Company and the weighted average number of shares outstanding during the year is adjusted for the effect of
all dilutive potential equity shares.
(s) Cash and Cash Equivalents
Cash and Cash equivalent for the purposes of cash flow statement comprise cash on hand, cheques in hand, demand
deposits with banks and short-term investments with an original maturity of three months or less from the date of
acquisition which are subject to an insignificant risk of changes in value. Cash and Cash Equivalents consists of
balances with banks which are unrestricted for withdrawal and usage.
1.6 Indian Accounting Standard(s) Pronouncements
The Ministry of Corporate Affairs, Government of India notifies the new Indian Accounting Standards/Amendments to the
existing Indian Accounting Standards under Companies (Indian Accounting Standards) Rules, 2015 from time to time
which are evaluated for giving effect to in the preparation and presentation of Standalone Financial Statements to the
extent the same apply and extend to the Company.
Secured
(a) Loans from Banks are secured by way of hypothecation charge over movable Property, Plant and Equipment (excluding
assets specifically charged to specific project lender), 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 equal quarterly instalments, over a period of five to seven years commencing from May, 2022 and
ending on March, 2031 and carry rate of interest varying from 9.25% to 10.60% per annum on the reporting date. Buyer’s
Credit/ Supplier’s Credit in Foreign Currency availed from Banks are due for repayment between April, 2025 to February,
2028 and carry rate of 3.25% to 5.21% 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 varying from 8.85% to 9.40% 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 (specific to each term loan), 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 lender), 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) Bank Returns/Stock Statements filed by the Company with its Bankers are materially in agreement with the books of
account.
(e) 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.
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)
' 24832.00 lakhs (previous year ' 2505.72 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, 2025 were approved and authorised for
issuance by the Board of Directors in its Meeting held on 22nd May, 2025. The Board of directors has also recommended a
dividend of ' 4/- (previous year ' 3/-) per fully paid up equity shares of ' 10/- each of the Company for the financial year ended
on 31st March. 2025 involving a payment of ' 1387.82 lakhs, subject to approval by the shareholders in the ensuing Annual
General Meeting of the Company.
Note(s) :
(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.
(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, 2025 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, 2025. 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.
Note(s) :
(a) The balance unspent CSR amount of ' 51.69 lakhs pertaining to Ongoing CSR Projects 2024-25 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) Against the earmarked unspent CSR amount of ' 40.90 lakhs in respect of an Ongoing CSR Project pertaining to
financial year 2022-23, the aggregate amount of ' 21.74 lakhs and ' 19.16 lakhs were spent in the financial year
2023-24 and 2024-25 respectively.
(c) The amount earmarked and spent towards CSR Projects pertaining to financial year 2024-25 includes accrued
interest income of ' 0.33 lakh on unspent CSR amount of an Ongoing Project relating to financial year 2022-23,
which was kept in a sperate bank account as per the provisions of sub-section (6) of Section 135 of the Companies
Act, 2013 read with rules made and clarifications issued thereunder.
(d) Excess spent/earmarked amount of ' 0.23 lakh during the financial year 2024-25 on CSR Projects shall be carried
forward for set-off in the ensuing financial year 2025-26 in accordance with the third proviso to Section 135(5) of the
Companies Act, 2013 and rules made thereunder.
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”.
49. Financial Risk Management:
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
(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 acticities 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).
Note(s) :
- In addition to foreign exchange risk exposure hedged through forward contracts as stated in (D) above, the Company
has also hedged by way of Forward Contracts certain firm commitments of import of raw materials, etc. as well as
value of certain confirmed export orders for an aggregate amount of USD 16.43 lakhs (Previous year USD 6.32
lakhs) which shall be crystallised beyond the reporting period and as such donot form part of Financial Liabilities and
Financial Assets as at 31st March, 2025.
- The disclosure of foreign exchange Derivative Contracts (Forward Contracts) entered into by the Company and
outstanding at the reporting date with respect to commodity prices hedging instruments is made in Note No. 49(d)
“Derivative financial instrument”.
(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.
(d) Derivative financial instruments
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 2025. 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 2026 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.
The fair value of the company’s derivative positions recorded under derivative financial assets and derivative financial
liabilities are as follows.
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, 2025 or corresponding previous year.
Note :Explanation for changes in ratio by more than 25% - Decrease in Return on Investments is attributable to the
decrease in Fair Value of Investments.
(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.
As per our attached report of even date.
For BGJC & Associates LLP For and on behalf of the Board of Directors
Chartered Accountants
ICAI Firm Registration No.003304N/N500056
Pranav Jain Harsh V. Lodha Y.S.Lodha
Partner Chairman Managing Director & Chief Executive Officer
Membership No. 098308 (DIN : 00394094) (DIN : 00052861)
Place: New Delhi Amit Kumar Chopra Sudeep Jain
Date :22nd May, 2025 Chief Financial Officer Company Secretary
Place : New Delhi
Date : 22nd May, 2025
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