XI. Provisions and Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in
respect of contingencies/claim/litigations against the Company as it is not possible to predict the
outcome of pending matters with accuracy.

XII. Defined Benefit Obligation (DBO)

Management's estimate of the DBO is based on a number of critical underlying assumptions such
as standard rates of inflation, mortality, discount rate and anticipation of future salary increases.
Variation in these assumptions may impact the DBO amount and the annual defined benefit
expenses.

2.5 Exceptional Items

Exceptional items are transactions which due to their size or incidence are separately disclosed to enable a
full understanding of the Company's financial performance. Items which may be considered exceptional are
significant restructuring charges, gains or losses on disposal of investments of subsidiaries & associates and
impairment losses/write down in the value of investment in subsidiaries & associates and significant disposal
of fixed assets.

2.6 Recent Pronouncement

The Ministry of Corporate Affairs (MCA) has notified the Companies (Indian Accounting Standards) Second
Amendment Rules, 2025 on 13th August 2025, introducing amendments to, inter alia, Ind AS 1, Ind AS 7, Ind
AS 12, Ind AS 107 and Ind AS 101, applicable for accounting periods beginning on or after 1st April 2025.

These amendments primarily relate to

(i) clarification on classification of liabilities as current or non-current, including those with covenants,

(ii) enhanced disclosure requirements for supplier finance arrangements, and

(iii) introduction of a temporary exception and related disclosures in respect of Pillar Two income taxes.

The Company has evaluated the impact of the aforesaid amendments and concluded that there is no
material impact on the recognition and measurement of amounts reported in the financial statements;
however, the Company has provided additional disclosures, wherever required, in compliance with the
amended standards.

2.7 The material accounting policies used in preparation of the financial statements have been disclosed in the
respective notes.

3. Property, Plant and Equipment
Accounting Policy

Freehold land is carried at historical cost. Property, Plant and Equipment are stated at cost, net of accumulated
depreciation and impairment losses, if any. Cost of Property, Plant and Equipment comprises its purchase price net
of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable
from the tax authorities), any directly attributable expenditure on making asset ready for its intended use, including
relevant borrowing costs for qualifying assets and any expected costs of decommissioning.

Borrowing Cost attributable to acquisition, construction of qualifying assets is capitalized until such time as the
assets are substantially ready for their intended use. Indirect expenses during construction period, which are
required to bring the asset in the condition and location for its intended use by the management and are directly
attributable to bringing the asset to its position, are also capitalised.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and cost
of the item can be measured reliably.

Expenditure incurred after Property, Plant and Equipment have been put into operation, such as repairs and
maintenance, are charged to Statement of Profit and Loss in the period in which costs are incurred.

Advances paid towards the acquisition of Property, Plant and Equipment outstanding at each Balance Sheet date
is classified as capital advances under other non-current assets.

An item of Property, Plant and Equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de¬
recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount
of the asset) is included in the Statement of Profit and Loss account when the asset is derecognised.

Depreciation on Property, Plant and Equipment is charged on straight line method either on the basis of rates
arrived at with reference to the useful life of the assets evaluated by Independent valuer and approved by the
Management or rates arrived at based on useful life prescribed under Part C of Schedule II of the Companies Act,
2013.

Transition to Ind AS: On transition to Ind AS, the Company has elected to continue with the carrying value of all
of its Property, Plant and Equipment recognised as at 1^st April, 2016 measured as per the previous GAAP and used
that carrying value as the deemed cost of the Property, Plant and Equipment.

The residual values are not more than 5% of the original cost of the assets. The residual values, useful lives and
methods of depreciation of Property, Plant and Equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate.

(a) Refer Note 18 for Property, Plant & Equipment pledged as security.

(b) The aggregate depreciation has been included under depreciation and amortization expense in the statement of
profit & loss. (Refer Note 31)

(c) No proceedings have 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.

(d) All Property, Plant & Equipment are held in the name of company.

4. Capital Work-in-Progress
Accounting Policy

Capital Work in Progress comprises of Property, Plant and Equipment that are not ready for their intended use at
the end of reporting period and are carried at cost. Cost includes related acquisition expenses, construction cost,
borrowing cost capitalized and other direct expenditure. At the point when an asset is capable of operating in the
manner intended by management, the cost of construction is transferred to the appropriate category of Property,
Plant and Equipment. Costs are capitalised till the period of assets are substantially ready for their intended use.

Depreciation is not recorded on capital work-in-progress until construction and installation is complete and the asset
is substantially ready for its intended use.

During the year, the Company has capitalised the above expenses directly relatable to the cost of property, plant,
and equipment and capital work-in progress, being expenses relatable to projects. Consequently, expenses
disclosed under the respective notes are net of amounts capitalised by the Company.

5. Right of Use Assets
Accounting Policy

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with
any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes
an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably
certain that any options to extend or terminate the contract will be exercised. The lease term in future periods is
reassessed to ensure that the lease term reflects the current economic circumstances. After considering current
and future economic conditions, the company has concluded that no material changes are required to lease period
relating to the existing lease contracts. Lease liability and ROU assets have been separately presented in the Balance
Sheet and lease payments have been classified as financing cash flows.

Company as a Lessee

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 direct costs incurred and an estimate of costs
to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less
any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to
the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives
of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the
right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of
the lease liability.

Finance lease

The Company has entered into land lease arrangement at various locations. Terms of such lease ranges from 75-99
years. In case of lease of land for 90 years and above, it is likely that such leases meet the criteria that at the inception
of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of
the leased asset. Accordingly, the Company has classified leasehold land as finance leases applying Ind AS 17/ Ind AS
116. For such leases, the carrying amount of the right-of-use asset at the date of initial application of Ind AS 116 is the
carrying amount of the lease asset on the transition date as measured applying Ind AS 17.

Leasehold land is amortised on a straight line basis over the unexpired period of their respective lease ranging from
75-99 years. Leasehold improvements are depreciated on straight line basis over their initial agreement period.

Others

The following is the summary of practical expedients elected on initial application:

(a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a
similar end date.

(b) Applied the exemption not to recognise right-of-use assets and liabilities for short term leases, variable lease and
leases of low value assets."

(c) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

(v) Extension and termination options are included in a number of property leases across the company. These are
used to maximise operational flexibility in terms of managing the assets used in the company's operations. The
majority of extension and termination options held are exercisable only by the company and not by the respective
lessor.

6. Other Intangible Assets
Accounting Policy

Other intangible assets with finite useful life are stated at cost of acquisition, less accumulated amortisation and
impairment loss, if any. The cost comprises its purchase price net of any trade discounts and rebates, any import
duties and other taxes (other than those subsequently recoverable from the tax authorities).

(a) The aggregate amortization of Other Intangible assets has been included under depreciation and amortization
expense in the Statement of Profit & Loss (Refer Note 31).

7. Investments

Accounting Policy

(i) Investments in Associates

An associate is an entity over which the Company has significant influence. Significant influence is power to
participate in financial and operating policy decisions of investee but is not control or joint control over those
policies.

Investment in associates are carried at cost as per Ind AS 27. Cost comprises price paid to acquire investment and
directly attributable cost.

The investments in Associates are carried in these financial statements at historical 'cost', except when the
investment, or a portion thereof, is classified as held for sale, in which case it is accounted for as Non-current
assets held for sale and discontinued operations. Where the carrying amount of an investment is greater than
its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference
is transferred to the Statement of Profit and Loss. On disposal of investment, the difference between the net
disposal proceeds and the carrying amount is charged or credited to the Statement of Profit and Loss.

(ii) Investments at Fair Value through OCI

Investments in Mutual funds and in Equity Instruments of other companies are classified as Investments at Fair
Value through OCI, as these investments are held with objective of collection of contractual cashflows and
subsequent selling of these investments.

Liquidator was appointed w.e.f. 23^rd February, 2024 for erstwhile Subsidiary, KEI Cables Australia PTY LTD. That
Subsidiary was Liquidated on 17^th June, 2024 and deregistered w.e.f. 18^th September, 2024 with Australian
Securities & Investments Commission (ASIC). Accordingly Loan given to subsidiary amounting to ' 3.38 Million
was written off during the financial year 2024-25 (Refer Note 42).

C. The Company has complied with the provision Section 2(87) of the Companies Act, 2013 read with the Companies
(Restriction on number of Layers) Rules, 2017.

D. The Company has not entered with any Scheme(s) of arrangement in terms of Sections 230 to 237 of the
Companies Act, 2013.

E. 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
lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not
received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

F. Loan to Employees and KMPs are interest free loan given as per the policy of the Company and based on financial
position and intent, in view of the management, these loans are not prejudicial to the interest of the Company.

9. Other Financial Assets
Accounting Policy

Contract Assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are
classified as unbilled receivables (where only act of invoicing is pending) when there is unconditional right to receive
cash, and only passage of time is required, as per contractual terms. Unearned/deferred revenue ("contract liability")
is recognised when there is billing in excess of revenue.

Contract assets including unbilled revenue, certified work and claims are assessed for impairment under Ind AS 115
and Ind As 109 using the 12 months ECL approach, with loss allowance recognized in profit or loss and deducted
from carrying value.

11. Inventories

Accounting Policy

Raw materials, traded goods, Work-in-progress, finished goods, packing materials, project material and stores, spares
and consumables are valued at lower of cost or net realisable value. However, materials and other items held for
use in the production of inventories are not written down below cost if the finished products in which they will be
incorporated are expected to be sold at or above cost. Cost of raw materials, packing materials, and stores, spares
and consumables is determined on a Moving Weighted Average Cost Method basis.

Work-in-progress and finished goods, are valued at lower of cost or net realisable value. Cost includes direct materials
as aforesaid and allocated production overheads.

Project Material, Traded Goods at lower of cost or net realisable value. Cost is determined on a Moving Weighted
Average Cost Method basis.

The stock of scrap materials have been valued at net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion
and estimated costs necessary to make sale.

Trade receivables represent Company's right to an amount of consideration that is unconditional (i.e. only the passage
of time is required before payment of the consideration is due). Trade Receivables are generally non-interest bearing
and are recognised initially at fair value and subsequently measured at cost less provision for impairment.

As a practical expedient the Company has adopted 'Simplified Approach' using the provision matrix method for
recognition of expected loss on trade receivables. The provision matrix is based on three years rolling average default
rates observed over the expected life of the trade receivables and is adjusted for forward-looking estimates. These
average default rates are applied on total credit risk exposure on trade receivables and outstanding for more than
one year at the reporting date to determine lifetime Expected Credit Losses.

(b) No trade or other receivable are due from directors or officers of company either severally or jointly with other
person. Nor any trade or other receivable are due from firms or private companies respectively in which any
director is a partner, a director or a member.

(c) The carrying amount of the trade receivables include receivables which are subject to a discounting arrangement.
Under this arrangement, Company has transferred the relevant receivables to banks in exchange for cash and
is prevented from selling or pledging the receivables. However, Company has retained late payment, currency
exchange and credit risk. Company therefore continues to recognize transferred assets in their entirety in its
Balance Sheet. Amount repayable under the discounting arrangement is presented as secured borrowing.

(d) Trade receivables are usually non-interest bearing and are generally on credit terms up to 90 days except EPC
business.

(e) For EPC business trade receivables are non-interest bearing and credit terms are specific to contracts.

(f) *Includes Trade Receivable and impairment allowance thereon, for Related Parties disclosures, Refer Note 37.

(g) Trade receivables have been hypothecated as security against bank borrowings, the terms relating to which have
been described in note no. 18.

(h) Refer Note 39 for Accounting Policies on Financial instruments.

(i) Trade Receivables include Retention by Customers as at 31^st March, 2026 ' 2,499.43 Million (Previous Year
' 2,339.75 Million). Retention are specific to projects and are generally receivable within six months from
completion of Project.

Current Income Tax assets and liabilities are measured at amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date.

Current income tax relating to items recognised outside Profit and Loss is also recognised outside profit and loss
(either in Other Comprehensive Income or in Equity). Current tax items are recognised in correlation to underlying
transaction either in OCI or directly in equity. Management periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate. Tax expense for the year comprises of current tax and deferred tax.

The tax jurisdiction of the Company is India. Further, the Company periodically receives notices and inquiries from
Indian income tax authorities related to the Company's operations. The Company has evaluated these notices and
inquiries and has concluded that any consequent income tax claims or demands, if any, by the income tax authorities
will not succeed on ultimate resolution.

The Government of India has enacted new income tax legislation (Income tax Act, 2025) effective from Tax Year
1^st April, 2026. Company has evaluated the implications of this change on its Current and Deferred Tax positions.
Based on the assessment, the Company does not expect any material impact on its financial Statements.

(E) Deferred Tax

Accounting Policy

Deferred Income Taxes are calculated using Balance Sheet Approach, on temporary differences between tax
base of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except when it is probable that
temporary differences will not reverse in foreseeable future. Deferred tax assets are recognised for all deductible
temporary differences and carry forward of unused tax credits and any unused tax losses. Deferred tax assets are
recognised to extent that it is probable that taxable profit will be available against which deductible temporary
differences and carry forward of unused tax credits and unused tax losses can be utilized.

Carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is
no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to
be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in
other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and same taxation
authority.

(a) Rights, preferences and restrictions attached to shares:

Equity Shares: The company has issued one class of equity shares having par value of ' 2 per share. Each
shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend.
In the event of liquidation of the company, the equity shareholders are eligible to receive the remaining assets of
the Company after distribution of all preferential amounts in proportion to their shareholding.

(e) Aggregate number of shares issued during the period of 5 years immediately preceding the reporting date:

During the year 2020-21, 3,51,000 equity shares of ' 2 each fully paid were issued under KEI Stock Option
Scheme, 2015.

During the year 2021-22, 2,50,000 equity shares of ' 2 each fully paid were issued under KEI Stock Option
Scheme, 2015.

During the year 2022-23, 87,000 equity shares of ' 2 each fully paid were issued under KEI Stock Option Scheme,
2015.

During the year 2023-24, 49,000 equity shares of ' 2 each fully paid were issued under KEI Stock Option Scheme,
2015.

During the year 2024-25, 48,000 equity shares of ' 2 each fully paid were issued under KEI Stock Option Scheme,
2015.

During the year 2024-25, 52,63,157 equity shares of ' 2 each fully paid were issued to Qualified Institutional
Buyers under QIP.

(f) There were no buy back of shares or issue of shares pursuant to contract without payment being received in cash
in previous 5 years.

(g) Dividend:

Accounting Policy

Dividend Payments: Final dividend distribution to shareholders is recognised as a liability in the period in which
dividend is approved by the shareholders. Any interim dividend paid is recognised on approval by Board of
Directors. Dividend payable is recognised directly in equity.

Companies are required to pay/distribute dividend after deducting applicable taxes. The remittance of dividends
outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable
rates.

*The Company declared and paid an interim dividend of ' 4.50/- per equity share (225%) on 21^st January, 2026,
resulting in cash out flow of ' 430.20 Million for the Financial year 2025-26.The Board has proposed that this may
be treated as final dividend for Financial Year 2025-26.

The Company declared and paid an interim dividend of ' 4.00/- per equity share (200%) on 21^st January, 2025,
resulting in cash out flow of ' 382.21 Million for the Financial year 2024-25.

For dividend paid to Related Parties, Refer Note 37.

(h) Employee stock Option Plan (ESOP):

Accounting Policy

The Company operates equity-settled share-based payment plans for eligible employees. Fair Value of options
granted under this option plan is recognised as an employee benefit expense over the vesting period with
corresponding increase in other equity (Employee Stock Options Outstanding) in accordance with recognition
and measurement principles as per Ind AS 102 "Share Based Payments". The fair value of options granted is
determined at the grant date using an appropriate valuation model (Black-Scholes), taking into account terms
and conditions upon which the options were granted, including market-based performance conditions. Market-
based conditions are considered on the grant date fair value and are not subsequently revised. Options that do
not vest due to failure to satisfy performance and service conditions are not recognised. At each reporting date,
the Company revises its estimates of the number of options expected to vest based on performance and service
conditions and recognises the impact of such revisions in the Statement of Profit and Loss.

Total expense is recognised over the vesting period, which is period over which all of specified vesting conditions
are to be satisfied. At end of the reporting period, the company revises its estimates of the number of options
that are expected to vest based on the non-market vesting and service conditions. It recognises impact of revision
to original estimates, if any, in profit and loss, with corresponding adjustment to equity.

No expense is recognised for options that do not ultimately vest because performance and/or service conditions
have not been met. In case of modification of terms, any incremental fair value is recognised over the remaining
vesting period. In case of cancellation or settlement, the unrecognised expense is recognised immediately in
profit and loss.

The dilutive effect, if any of outstanding options is reflected as additional share dilution in the computation of
diluted earnings per share in accordance with Ind AS 33.

Employee Stock Options

The Company had approved "KEI Employees Stock Option Scheme" (KEI ESOS 2015 or Scheme) for granting
Employees Stock Options in the form of Equity Shares to eligible employees and the same was approved by
the members of the Company on September 16, 2015. The plan is administered under the supervision of the
Nomination and Remuneration Committee of the Board of Directors of the Company ("Committee") in compliance
with the provisions of Securities and Exchange Board of India (Share Based Employee Benefits And Sweat Equity)
Regulations, 2021 and other applicable provisions for the time being in force. Under the said scheme, in FY
2022-23, the Nomination and Remuneration Committee granted 1,96,000 share Options (par value ' 2/- each
share) on September 22, 2022 which will vest over a period of 4 years from the date of grant. Further, in FY 2023¬
24, the Nomination and Remuneration Committee granted 6,000 share Options (par value ' 2/- each share) on
September 27, 2023 which will vest over a period of 3 years from the date of grant.

(a) Capital Reserve:

Subscribed capital forfeited due to non- receipt of call money is treated as Capital reserve. There is no movement
in Capital reserve during the year and Previous year.

(b) Securities Premium:

Amount received in excess of face value of the equity shares is recognized in Securities Premium. In case of
equity-settled share based payment transactions difference between fair value on grant date and nominal value
of share is accounted as Securities Premium. The QIP issue expenses (net of GST Credit) have been adjusted with
securities premium account, net of taxes, if any.

(c) General Reserve:

The Company has transferred a portion of the net profit of the Company before declaring dividend to General
Reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to General Reserve is not
required under the Companies Act, 2013. There is no movement in General reserve during the year and Previous
year.

(d) Retained Earnings:

Retained Earnings include all current and prior period retained profits.

Retained earnings are the profits that the Company has earned till date less any transfers to General Reserve,
dividends or other distributions to shareholders.

(a) The above loans are secured by way of:

(i) Working Capital facilities from banks (Fund Based & Non Fund Based) are secured by 1^st Pari passu charge by
way of hypothecation of entire current assets (both present & future) including raw material, Work in process,
finished goods, consumable, stores & spares and receivables of the company.

(ii) 1^st Pari passu charge by way of equitable mortgage of land and building (including Lease Hold) and
hypothecation of plant and machinery and other moveable fixed assets including CWIP, both present and
future, located at SP 919,920 & 922, RIICO Industrial Area, Phase III, Bhiwadi, Distt. Alwar (Rajasthan); Plot
No. A 280-284, RIICO Industrial Area, Chopanki, Distt Alwar (Rajasthan), Plot No. SP 2/874, RIICO Industrial
Area, Pathredi Distt. Alwar (Rajasthan), 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa, (Dadra
& Nagar Haveli and Daman and Diu), Industry Plot / Survey No.- 1/1/2/5, situated at Village Chinchpada,
Silvassa (Dadra & Nagar Haveli and Daman and Diu) and movable fixed assets at D-90, Okhla Industrial Area,
Phase-I, New Delhi.

(iii) Entire movable & immovable fixed assets, both present and future, located at Plot no. 1012 - 1023 Sanand-
II, BoI Engineering Industrial Estate GIDC, Ahmedabad (Gujrat) - 382170 are pari passu charged in favour of
term Lending Banks for various facilities sanctioned by them.

(b) Working Capital Loans from Banks are generally renewable within twelve months from the date of sanction or
immediately previous renewal, unless otherwise stated, as per the terms and conditions of the sanction.

(c) The Company has not defaulted on any loans/deposits payable during the year and has satisfied all debt covenants
prescribed by lenders.

(d) The Company has arranged Channel Finance facility for its customers from various banks against which a sum
of ' 8,518.36 Million (Previous Year ' 6,066.10 Million) has been utilized as on the date of Balance Sheet. The
Company is liable to pay in case of default by its customers along with interest thereon. The amount of such
defaults on part of customers as on 31^st March, 2026 is ' 20.64 Million (Previous Year ' 39.84 Million).

(e) All charges are registered with ROC within statutory period by the Company.

(f) Funds raised on short-term basis have not been utilised for long-term purposes.

(g) Credit facilities:

The Company has sanctioned fund-based and non-fund-based credit facilities from various lender banks
and financial institutions, which are partially utilised as at the reporting date. The unutilised portion of these
facilities provides additional liquidity support to the Company.

(h) There are no discrepancies in Monthly/Quarterly returns or statements of current assets filed by the company
during the year with banks as per books of accounts.

19. Lease Liabilities
Accounting Policy

Lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, company's
incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• Fixed payments, including in-substance fixed payments;

• Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date;

• Amounts expected to be payable under a residual value guarantee; and

• The exercise price under a purchase option that the company is reasonably certain to exercise, lease payments
in an optional renewal period if the company is reasonably certain to exercise an extension option, and penalties
for early termination of a lease unless the company is reasonably certain not to terminate early.

Lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a
change in future lease payments arising from a change in an index or rate, if there is a change in the company's estimate
of the amount expected to be payable under a residual value guarantee, or if company changes its assessment of
whether it will exercise a purchase, extension or termination option.

When lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the
right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to
zero.

Short-Term Leases and Leases of Low-Value Assets

The company has elected not to recognise right-of-use assets and lease liabilities for short- term leases of real estate
properties that have a lease term upto12 months or are of low value. The company recognises the lease payments
associated with these leases as an expense on a straight-line basis over the lease term.

Provisions represent liabilities to the Company for which amount, or timing is uncertain. Provisions are recognized
when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that
an outflow of resources, that can be reliably estimated, will be required to settle such an obligation.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash
flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the
time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized
in the statement of profit and loss as a finance cost.

The Company provides product warranties and does not sell the warranty separately to its customers. Provision for
warranty-related costs is recognised when the product is sold, or service is provided to customers. Initial recognition
is based on historical experience. The Company periodically reviews the adequacy of product warranties and adjusts
warranty percentage and warranty provisions for actual experience, if necessary. The timing of outflow is expected to
be within one to two years.

An Onerous Contract is a contract in which unavoidable costs of meeting obligations under the contract exceed
economic benefits expected to be received under it. If the company identifies a contract as an Onerous Contract, the
present obligation under the contract is measured and recognised as provision.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer
probable that outflow of resources would be required to settle obligation, provision is reversed.

(b) Provision for Compensated Absences (Unfunded):

Compensated Absences to an extent is a terminal employee benefit, which covers Company's liability towards
earned leaves of employees of the Company.

(c) Provision for Gratuity (Funded):

Company provides gratuity for employees in India as per the Payment of Gratuity Act 1972. Employees who
are in continuous service for a period of five years (one year in case of fixed term employees) are eligible for
gratuity. Gratuity plan is a funded plan and company makes contributions to fund maintained by approved
trust and administrated through separate irrevocable trust setup by Company.

(d) Long Service Award (Unfunded):

The company has introduced long service award at the time of exit of employee from Financial year 2022-23
covering all the eligible employees.

(e) Provision for Warranty:

Provision for warranty relates to estimated outflow in respect of warranty for products sold/ contracts
executed by Company. Due to nature of such costs it is not possible to estimate timing/ uncertainties relating
to the outflows of economic benefits.

21. Trade Payables
Accounting Policy

These amounts represents liabilities for goods and services provided to the Company prior to the end of financial
year which are unpaid. The amounts are unsecured and are usually paid within 30 to 90 days of recognition other than
usance letter of credit. Trade payables are presented as current financial liabilities.

The Company enters into arrangements for purchase under usance letter of credit issued by banks under non-fund
based working capital limits of the Company. Considering these arrangements are majorly for raw materials with a
maturity of up to twelve months, economic substance of transaction is determined to be operating in nature and
these are recognised as acceptances under trade payables.

(a) Acceptances represent amounts payable to banks on due date as per usance period of Letter of Credit (LCs)
issued to raw material vendors under non-fund based working capital facility approved by Banks for the Company.
For security of Non-fund based limits Refer Note 18.

(b) Others includes amount payable to vendors, employees liability and accrual of expenses that are expected to be
settled in the Company's normal operating cycle or due to be settled within twelve months from the reporting
date.

(c) Amounts falling in the category of more than 1 year are related to pending obligations on the part of the supplier
as per agreed terms and conditions mentioned in respective contracts.

(d) Information as required to be furnished as per Section 22 of the Micro, Small and Medium Enterprises Development
Act, 2006 (MSMED Act) is given below. This information has been determined to the extent such parties have
been identified on the basis of information available with the company.

(i) Measurement of Revenue

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange
for those goods or services.

Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts, incentive
schemes, if any, as per contracts with customers. Taxes collected from customers on behalf of Government are
not treated as Revenue.

(ii) Engineering, Procurement and Construction (EPC) Projects

Performance obligation in case of revenue from long - term contracts is satisfied over the time. Since the company
creates an asset that the customer controls as the asset is created and the company has an enforceable right
to payment for performance completed to date if it meets the agreed specifications, revenue from long term
contracts, where the outcome can be estimated reliably and 10% of the project cost is incurred, is recognized
under the percentage of completion method by reference to the stage of completion of the contract activity.
The stage of completion is measured by input method i.e. the proportion that costs incurred to date bear to the
estimated total costs of a contract.

The total costs of contracts are estimated based on technical and other estimates. In case of value of uninstalled
materials incurred that is not proportionate to the Company's progress in satisfying the performance obligation,
revenue is to be recognised at an amount equal to the cost of a good used to satisfy a performance obligation.
In the event that a loss is anticipated on a particular contract, provision is made for the estimated loss. Contract
revenue earned in excess of billing is reflected under as "contract asset" and billing in excess of contract revenue
is reflected under "contract liabilities". Retention money receivable from project customers does not contain any
significant financing element, these are retained for satisfactory performance of contract.

(iii) Sale of Goods

Revenue from sale of goods is recognised at the point of time when control of the goods is transferred to the
customer, generally on delivery of the goods. The Company considers whether there are other promises in the
contract that are separate performance obligations to which a portion of the transaction price needs to be
allocated (e.g., Freight and Incentive schemes). In determining the transaction price for the sale of goods, the
Company considers the effects of variable consideration and consideration payable to the customer (if any).

For contracts that are CIF (Cost Insurance Freight) contracts, the revenue is recognised when the goods reached
at final destination. For contracts that are FOB (Free on Board) contracts, revenue is recognised when company
delivers the goods to an independent carrier.

(iv) Variable Consideration

If consideration in a contract includes a variable amount, the Company estimates amount of consideration to
which it will be entitled in exchange for transferring the goods to customer. Variable Consideration is estimated
at contract inception and constrained until it is highly probable that a significant revenue reversal in amount
of cumulative revenue recognised will not occur when associated uncertainty with variable consideration
is subsequently resolved. Some contracts for sale of manufactured goods provide customers with a right of
incentives & discounts. The incentives and volume rebates give rise to variable consideration.

(a) Cash Discount which are determinable on the date of transaction, are recognised as reduction of revenue by
the company

(b) Volume Discounts, Timely Payment Incentives & Other Incentive Schemes the Company provides
retrospective volume discounts to certain customers once the quantity of products purchased during the
period exceed a threshold specified in the contract. Other Incentives promised by the company on achieving
certain sales thresholds also a form of identifiable benefit that are identified as a separate component of the
sales transaction.

In such cases, the Company estimates fair value of Incentives promised to its customers. To estimate the
variable consideration for the expected future rebates and discounts, the Company applies the expected
value method. The Company estimates variable consideration and recognises a refund liability for the
expected future rebates. Accordingly, the company recognises lesser revenue if such discounts are probable
and the amount is determinable. Any subsequent changes in the amount of such estimates are transferred to
statement of profit and loss.

(c) Other Variable Considerations If the contract includes a variable consideration, the company estimates the
amount it expects to receive in exchange for transferring the promised goods or services to the customer.
This estimate is updated at each reporting date.

(v) Government Grant

Company receives Grant in the form of Export incentives under various schemes notified by the Government.
The Export Incentives are recognised on the basis of applicable regulations, and when reasonable assurance to
receive such revenue is established. Export incentives income is recognised in the statement of profit and loss on
a systematic basis over the periods in which the Company recognises as expenses the related costs for which the
assistance/incentive is intended to compensate.

In the case of Export Promotion Capital Goods ('EPCG') grant, the Company recognises the grant in the statement
of profit and loss on a systematic basis over the useful life of the assets.

(vi) Significant Financing Components

Significant financing Components In respect of advance received from customers, using the practical expedient
in Ind AS 115. the company does not adjust the promised amount of consideration for the effect of a significant
financing component if it expects , at contract inception, that the period between transfer of the promised good
or service to the customer and when the customer pays for that good or service will be within normal operating
cycle. Retention money receivable from project customers does not contain any significant financing element,
these are retained for satisfactory performance of contract.

(vii) Contract Balances

Contract assets are in the nature of unbilled receivables, which arises when Company satisfies a performance
obligation but does not have an unconditional right to consideration. Contract assets are subject to impairment
assessment.

25. Other Income
Accounting Policy

(i) Dividend Income

Dividends are recognised in profit and loss only when the right to receive payment is established.

(ii) Interest Income

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest
rate is rate that exactly discounts estimated future cash receipts through expected life of the financial asset to
gross carrying amount of a financial asset. When calculating effective interest rate, the Company estimates
expected cash flows by considering all contractual terms of financial instrument but does not consider expected
credit losses.

(iii) Other Income

Other claims including interest on outstanding are accounted for when there is virtual certainty of ultimate
collection.

(iv) Foreign Currency Transactions and Balances

Transactions in currencies other than functional currency are translated into functional currency at exchange
rates ruling at date of transaction. Monetary assets and liabilities denominated in other currencies are translated
into functional currency at exchange rates prevailing on reporting date. Non-monetary assets and liabilities
denominated in other currencies and measured at historical cost or fair value are not retranslated.

All exchange differences are included in the statement of profit and loss except any exchange differences on
monetary items designated as an effective hedging instrument of the currency risk of designated forecasted sales
or purchases, which are recognized in the Other Comprehensive Income.

For advance consideration, date of transaction for purpose of determining exchange rate to use on initial
recognition of the related asset or liability , expense or income when the Company has received or paid advance
consideration in foreign currency.

29. Employee Benefits Expenses
Accounting Policy

(i) Short-Term Employee Benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short¬
term employee benefits. These benefits include salaries and wages, performance incentives and compensated
absences which are expected to occur in next twelve months. The undiscounted amount of short-term employee
benefits to be paid in exchange for employee services is recognised as an expense as related service is rendered
by employees.

(ii) Compensated Absences

Company provides for encashment of accumulated leaves with pay subject to certain rules. The employees are
entitled to accumulate leave subject to certain limits, for future encashment/availment. The liability is provided
based on number of days of unutilized leave at each Balance Sheet date on basis of an independent actuarial
valuation.

(iii) Gratuity

Liabilities with regard to gratuity benefits payable in future are determined by actuarial valuation at each Balance
Sheet date using the Projected Unit Credit method and contributed to fund maintained by approved trust and
administered through a separate irrevocable trust set up by the Company.

Actuarial gains and losses arising from changes in actuarial assumptions are recognized in Other Comprehensive
Income.

(iv) Long Service Award

Company provides for long service award subject to certain conditions. The liability is provided on the basis of an
independent actuarial valuation at each balance sheet date using Projected Unit Credit method.

(v) Provident Fund

Eligible employees of the Company receive benefits from a Provident Fund, which is a defined contribution plan.
Both the eligible employee and the Company make monthly contributions to provident fund plan equal to a
specified percentage of covered employee's salary.

(vi) Share-Based Payments (Employees)

Fair Value of options granted under this option plan is recognised as an employee benefit expense with
corresponding increase in equity in accordance with recognition and measurement principles as prescribed in Ind
AS 102 Share Based Payments.

Total expense is recognised over the vesting period, which is period over which all of specified vesting conditions
are to be satisfied. At end of the reporting period, the company revises its estimates of the number of options
that are expected to vest based on the non-market vesting and service conditions. It recognises impact of revision
to original estimates, if any, in profit and loss, with corresponding adjustment to equity.

The dilutive effect, if any, of the Outstanding options is reflected as additional share dilution in the computation
of diluted earnings per share (Refer Note 35).

35. Earnings Per Share (EPS)

Accounting Policy

The Company presents basic and diluted earnings per share ("EPS") data for its equity shares.

(i) Basic EPS is calculated by dividing profit/ (loss) attributable to equity shareholders of the Company by weighted
average number of equity shares outstanding during the period.

(ii) Diluted EPS is computed using profit/ (loss) for the year attributable to equity shareholders and weighted average
number of equity and potential equity shares outstanding during the period, except where the result would be
anti-dilutive. Potential equity shares that are converted during the year are included in the calculation of diluted
earnings per share, from the beginning of the year or date of issuance of such potential equity shares, to the date
of conversion.

36. Contingent Liabilities & Commitments
Accounting Policy

In normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
There are certain obligations which management of the Company has concluded, based on all available facts and
circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated
as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Claims
against the Company, where the possibility of any outflow of resources in settlement is remote, are not disclosed as
contingent liabilities. Show Cause Notices received are not treated as Contingent Liabilities.

Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company is
involved, it is not expected that such contingencies will have a material effect on its financial position or profitability.
Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits
is probable.

(c) Other information

(i) All outstanding balances pertaining to loans and security deposits with related parties are at fair value.

(ii) Inter corporate loans/advances have been given for business purposes only.

(iii) As the amount for Gratuity, Leave encashment and Long Service Award are provided on actuarial basis for
the company as a whole, the amount pertaining to the KMP and relatives of KMP are not included in their
remuneration.

(iv) Transactions with Related parties are made on terms equivalent to those that prevail on arms' length
transactions.

(v) Interest charged from Associate at the rate SOFR plus 0.50% spread till date of repayment of loan. Amount
recoverable represents Interest recoverable on loan amount which has been repaid by the Associate.

(vi) Trade Receivables given to Associate are unsecured.

* Transaction amount with related parties are excluding Goods and Service Tax.

** Transaction amounts with related parties include tax liability paid under Reverse Charge in Goods and Services
Tax (GST).

38. SEGMENT REPORTING
Accounting Policies:

i. Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating
Decision Maker.

ii. Revenue and Expenses are identified to segments on the basis of their relationship to the operating activities of
the segment.

iii. The Company generally accounts for intersegment sales and transfers at cost plus appropriate margins.

iv. Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are included
under "Unallocated revenue / expenses / assets / liabilities".

Disclosure as per Indian Accounting Standard (Ind AS) 108 "Operating Segments"

(i) Basis of identifying operating segments, reportable segments, segment profit and definition of each
reportable segment:

Operating segments are identified as those components of the Company (a) that engage in business activities
to earn revenues and incur expenses (including transactions with any of the Company's other components; (b)
whose operating results are regularly reviewed by the Company's Management to make decisions about resource
allocation and performance assessment and (c) for which separate financial information is available.

(ii) Reportable segments:

The Company has three reportable segments as described under "Segment Composition" below. The nature of
products and services offered by these businesses are different and are managed separately given the different
sets of technology and competency requirements.

(iii) Segment composition:

Cables & Wires Segment comprise manufacturing, sale and marketing of all range of power cables viz . Low
Tension (LT), High Tension (HT) and Extra High Voltage (EHV), control and instrumentation cables, specialty cables,
elastomeric / rubber cables, submersible cables, flexible and house wires, winding wires etc.

Engineering, Procurement and Construction (EPC) projects Segment comprises of survey, supply of materials,
design, erection, testing & commissioning on a turnkey basis.

Stainless Steel Wire Segment comprises manufacturing sale and Job work related to Stainless Steel Wires.

(iv) Segment Revenue, Expenditure & Profit:

Performance of a segment is measured based on segment profit (before interest and tax), as included in the
internal management reports that are reviewed by the Company's Management.

Operating revenues and expenses related to both third party and inter-segment transactions are included in
determining the segment results of each respective segment.

Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been
disclosed as "Unallocated".

Finance income earned and finance expense incurred are not allocated to individual segment and the same has
been reflected at the Company level for segment reporting.

Unallocated expenses/ results, assets and liabilities include expenses/ results, assets and liabilities (including
inter-segment assets and liabilities) and other activities not allocated to the operating segments. These also
include current taxes, deferred taxes and certain financial assets and liabilities not allocated to the operating
segments.

Current Taxes, Deferred Taxes and certain financials assets and liabilities are not allocated to those segments as
they are also managed on company level.

(v) Segment Asset, Segment Liabilities and Segment Capital Expenditure:

The total assets disclosed for each segment represent assets directly managed by each segment, and primarily
include receivables, Property, Plant and Equipment, intangibles, inventories, operating cash and bank balances,
intersegment assets and exclude derivative financial assets, deferred tax assets and income tax recoverable.

Segment liabilities comprise operating liabilities, specific borrowings and exclude external borrowings (other
than specific), provision for taxes, deferred tax liabilities and derivative financial liabilities.

Segment capital expenditure comprises additions to Property, Plant and Equipment and intangible assets (net of
GST, where applicable).

39. Financial Instruments and Fair Value Measurements
Accounting Policy

(i) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

(A) Financial Assets

Initial Recognition & Measurement

Financial Assets are recognised when the Company becomes a party to contractual provisions of Financial
Instrument.

Financial assets are initially measured at fair value. Transaction costs that are directly attributable to acquisition
of financial assets (other than financial assets at fair value through Profit or Loss) are added to fair value of
financial assets. Transaction costs directly attributable to acquisition of financial assets at fair value through
profit or loss are recognised immediately in statement of Profit and Loss.

Subsequent Measurement

i. Debt Instruments at Amortised Cost- A 'debt instrument' is measured at amortised cost if both of the
following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual
cash flows, and

• Contractual terms of asset give rise on specified dates to cash flows that are Solely Payments of
Principal and Interest (SPPI) on principal amount outstanding.

After initial measurement, such Financial Assets are subsequently measured at amortised cost using
Effective Interest Rate (EIR) method. All other debt instruments are measured at Fair Value through Other
Comprehensive Income (FVOCI) or Fair Value through Profit and Loss (FVTPL) based on the Company's
business model.

ii. Equity Investments - All equity investments in scope of Ind AS 109 are measured at fair value. Equity
instruments which are held for trading are classified as at fair value through Profit and Loss (FVTPL). For
all other equity instruments, the Company decides to classify the same either as at Fair Value through
Other Comprehensive Income (FVOCI) or Fair Value through Profit and Loss (FVTPL) on an instrument to
instrument basis.

iii. Mutual Funds - All mutual funds in scope of Ind AS 109 are measured at Fair Value through Other
Comprehensive Income (FVOCI).

Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss on financial assets that are debt instruments, and are measured at amortised
cost e.g., Loans, Debt Securities, Deposits and Trade Receivables or any contractual right to receive cash or
another financial asset that result from transactions that are within scope of Ind AS 115.

The Company follows 'Simplified Approach' for recognition of impairment loss allowance on trade receivables.
Application of simplified approach recognises impairment loss allowance based on lifetime ECL at each
reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase in credit risk since initial recognition, the Company
reverts to recognising impairment loss allowance based on 12 month ECL.

ECL impairment loss allowance (or reversal) recognized during the year is recognized under the head 'Other
Expenses' in the statement of Profit and Loss. The Balance Sheet presentation for various financial instruments
is described below:

i. Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral
part of the measurement of those assets in the Balance Sheet. This allowance reduces the net carrying
amount.

ii. Debt instruments measured at FVTPL: Since financial assets are already reflected at fair value, impairment
allowance is not further reduced from its value. Change in fair value is taken to the statement of Profit
and Loss.

iii. Debt instruments measured at FVTOCI: Since financial assets are already reflected at Fair Value,
impairment allowance is not further reduced from its value. Rather, ECL amount is presented as
'Accumulated Impairment Amount' in the Other Comprehensive Income (OCI). The Company does not
have any Purchased or Originated Credit Impaired (POCI) financial assets, i.e., financial assets which are
credit impaired on purchase/origination.

De-Recognition of Financial Assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the Company's Balance Sheet) when:

i. The rights to receive cash flows from asset has expired, or

ii. The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a 'pass
through' arrangement; and either

(a) The Company has transferred substantially all risks and rewards of the asset, or

(b) The Company has neither transferred nor retained substantially all risks and rewards of the asset,
but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates, if and to what extent it has retained risks and rewards of
ownership.

When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognise transferred asset to the extent
of the Company's continuing involvement. In that case, the Company also recognises an associated
liability. The transferred asset and the associated liability are measured on a basis that reflects rights and
obligations that the Company has retained.

(B) Financial Liabilities

Initial Recognition and Measurement

Financial liabilities are classified at initial recognition as

• Financial liabilities at fair value through Profit or Loss

• Loans and Borrowings

• Payables

All financial liabilities are recognised initially at fair value and in case of loans and borrowings and payables,
they are recognised net of directly attributable transaction costs.

The Company's financial liabilities include Loans and Borrowings including Bank Overdraft, Trade Payable,
Trade Deposits, Retention Money, Lease Liabilities, other Liabilities towards Services and Other Payables.

Financial Liabilities are classified as at amortised cost.

Subsequent to initial recognition, measurement of financial liabilities depends on their classification, as
described below:

i. Financial liabilities at Fair Value Through Profit or Loss (FVTPL): Financial liabilities at Fair Value through
profit or loss include financial liabilities held for trading and financial liabilities designated upon initial
recognition as at fair value through statement of profit and loss. Financial liabilities are classified as held
for trading if they are incurred for purpose of repurchasing in near term.

ii. Gains or losses on liabilities held for trading are recognised in the statement of profit and loss. Financial
liabilities designated upon initial recognition at fair value through statement of profit and loss are
designated as such at the initial date of recognition, and only if criteria in Ind AS 109 are satisfied.
For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risk is
recognized in OCI. These gains/losses are not subsequently transferred to statement of profit and loss.
However, the Company may transfer cumulative gain or loss within equity. All other changes in fair value
of such liability are recognised in the statement of profit and loss.

iii. Loans and Borrowings: After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortised cost using the Effective Interest Rate (hereinafter referred as EIR) method. Gains
and Losses are recognised in statement of profit and loss when liabilities are derecognised as well as
through EIR amortisation process. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of EIR. EIR amortisation is included as
Finance Costs in the statement of profit and loss.

De-Recognition of Financial Liabilities

A Financial Liability is de-recognised when obligation under the liability is discharged or cancelled or expires.
Consequently, write back of unsettled credit balances is done on the previous experience of Management and
actual facts of each case and recognised in Other Operating Income if arising during normal course of business.
When an existing Financial Liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as de-recognition of the original liability and the recognition of a new liability. Difference in respective
carrying amounts is recognised in the Statement of Profit and Loss.

(C) Derivative Financial Instruments

In some cases, Company uses derivative financial instruments, such as forward currency contracts and interest
rate swaps to hedge its foreign currency risks and interest rate risks. Derivative financial instruments are
initially recognised at fair value on the date a derivative contract is entered into and are subsequently re¬
measured at their fair value at the end of each period. Method of recognizing resulting gain or loss depends
on whether derivative is designated as a hedging instrument, and if so, on nature of item being hedged. Any
gains or losses arising from changes in fair value of derivatives are taken directly to statement of profit and
loss.

(D) Offsetting of Financial Instruments

Financial Assets and Financial Liabilities are offset and net amount is reported in the Balance Sheet if there
is a currently enforceable legal right to offset recognised amounts and there is an intention to settle on a net
basis, to realise assets and settle liabilities simultaneously.

Company's businesses are subject to several risks and uncertainties including financial risks. Company's
documented risk management polices, act as an effective tool in mitigating various financial risks to which
business is exposed to in course of their daily operations. Risk management policies cover areas such as
liquidity risk, commodity price risk, foreign exchange risk, interest rate risk, counterparty and concentration
of credit risk and capital management.

Company's senior management oversees management of these risks. Senior professionals working to
manage financial risks and appropriate financial risk governance framework for Company are accountable to
Board of Directors and Audit Committee. This process provides assurance to Company's senior management
that Company's financial risk-taking activities are governed by appropriate policies and procedures and that
financial risk are identified, measured and managed in accordance with Company policies and Company risk
objective.

(ii) Equity Instruments and Mutual Funds Designated at Fair Value through Other Comprehensive Income
(FVOCI)

The Company holds the equity instruments primarily as strategic minority interests and for liquidity-related
purposes. None of these instruments were acquired with the intention of resale in the near term, and therefore
they do not qualify as "held for trading" under Ind AS 109. The irrevocable FVOCI designation allows fair value
changes to be reflected in comprehensive income without creating volatility in the Statement of Profit and Loss.

(a) Irrevocable Election - Equity Instruments

The Company holds equity investments in certain listed entities which are not held for trading purposes. In
accordance with Ind AS 109, the Company has at the date of initial recognition of each instrument, irrevocably
elected to present subsequent changes in the fair value of these equity investments in Other Comprehensive
Income (OCI). This election was made on an instrument-by-instrument basis and is irrevocable. These
instruments are not subject to impairment assessment under the ECL model. On disposal of such investments,
the cumulative fair value gains or losses recognised in OCI are reclassified to retained earnings and are not
recycled through the Statement of Profit and Loss. Refer Note 7 for Investment in Equity Shares designated
at FVTOCI.

(b) Irrevocable Election - Mutual Funds

The Company also holds units in mutual fund schemes. In accordance with the Company's accounting policy,
these have been designated at FVOCI. The Company has evaluated its investments in mutual fund units
under the contractual cash flow characteristics test prescribed by Ind AS 109. As units of mutual fund schemes
represent residual interests in pooled investment vehicles and do not give rise to contractual cash flows
that are solely payments of principal and interest, they do not meet the SPPI criterion applicable to debt
instruments. Accordingly, the Company has exercised the irrevocable election to classify such investments
at Fair Value through Other Comprehensive Income (FVTOCI). The election was made at the time of initial
investment and is irrevocable for each scheme. Any prospective reclassification to Fair Value through Profit or
Loss (FVTPL) is not expected to have a material impact on the financial statements.

Refer Note No. 7 for Investment in Mutual Funds designated at FVTOCI.

(c) Movement in FVOCI Reserve (Equity Instruments and Mutual Funds)

The FVOCI reserve as reflected in the Statement of Changes in Equity incorporates the cumulative unrealised
fair value gains and losses on all designated equity instruments and mutual funds from the date of initial
designation. The reserve as at 31^st March 2026 stands at ' (9.93) million (net of deferred tax) [Previous year:
' (10.23) million (net of deferred tax)], included within "Other Comprehensive Income — Equity Instruments
through Other Comprehensive Income" in the Statement of Changes in Equity (Note 17). This reserve
represents the cumulative net unrealised loss since initial designation, primarily attributable to the fair value
decline in Jaypee Infratech Limited and Technofab Engineering Limited, which are now effectively nil in value,
partly offset by gains in other equity and the mutual fund holdings.

Refer Note 17 (f) for Movement in Other Comprehensive Income in Other Equity.

(d) Dividend Income on FVOCI Equity Instruments

Dividends received on equity instruments designated at FVOCI are recognised in the Statement of Profit
and Loss (Other Income) when the right to receive payment is established. The Company received dividend
income of '0.11 million during the year ended 31^st March 2026 (previous year '0.08 million) from such
designated equity instruments. These dividends were not received as a return of the cost of investment.

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. Fair value measurement is based on presumption that
transaction to sell asset or transfer liability takes place either:

i. In the principal market for asset or liability, or

ii. In absence of a principal market, in most advantageous market for asset or liability. The principal or the most
advantageous market must be accessible to the Company.

Fair Value of an asset or liability is measured using assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.

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

The Company uses valuation techniques that are appropriate in circumstances and for which sufficient data are
available to measure fair value, maximising use of relevant observable inputs and minimizing use of unobservable
inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole.

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

Level 2- Valuation techniques for which lowest level input that is significant to fair value measurement is directly
or indirectly observable.

Level 3- Valuation techniques for which lowest level input that is significant to fair value measurement is
unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based
on the lowest level input that is significant to fair value measurement as a whole) at end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis
of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained
above.

Other Fair Value related disclosures are given in the relevant notes.

(iii) Fair Value Hierarchy:

This section explains the judgments and estimates made in determining fair values of financial instruments that are (a)
recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in
financial statements. To provide an indication about reliability of inputs used in determining fair value, Company has
classified its financial instruments into three levels prescribed under accounting standard. An explanation of each level
follows underneath the table:

Fair value of financial instruments as referred to in note above has been classified into three categories depending
on inputs used in valuation technique. Hierarchy gives highest priority to quoted prices in active market for identical
assets or liabilities (level 1 measurement) and lowest priority to unobservable inputs (level 3 measurements).

The categories used are as follows:

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

Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using
valuation techniques which maximize the use of observable market data relied as little as possible on entity specific
estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3.

Valuation Processes for Level 3 Instruments

The Company's finance function, under the supervision of the Executive Director (Finance) and CFO, is responsible
for determining the fair value of security deposits at each reporting date. Fair valuation is determined based on
the present value of future cash flows, wherein the cash flows comprise the contractual repayment amounts of the
deposits. The discount rate applied is the Company's incremental borrowing rate for a similar tenor, derived from
prevailing working capital borrowing arrangements with its bankers. As this input is entity-specific and not directly
observable in active markets, the valuation is classified under Level 3 of the fair value hierarchy.

40. Financial Risk Management Objectives and policies

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings and trade
and other payables. The main purpose of these financial liabilities is to finance the Company's operations and to
provide guarantees to support its operations. The Company's principal financial assets include loans, trade and other
receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds FVTPL
investments and enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk etc. The Board of Directors of the Company has
formed a Risk Management Committee to periodically review the risk management policy of the Company so that
the management manages the risk through properly defined mechanism. The Risk Management Committee's focus is
to foresee the unpredictability and minimise potential adverse effects on the Company's financial performance. The
Company's overall risk management procedures to minimise the potential adverse effects of financial market on the
Company's performance are as follows:

Company's size and operations result in it being exposed to the following market risks that arise from its use of
financial instruments:

• Currency Risk

• Price Risk

• Commodity Price Risk

• Interest Rate Risk

• Liquidity Risk

• Credit Risk

Above risks may affect Company's income and expenses, or value of its financial instruments. Company's exposure to
and management of these risks are explained below:

(a) Currency Risk - Potential Impact of Risk & Management Policy

Company undertakes transactions denominated in foreign currencies mainly related to its operating activities. The
Company evaluates exchange rate exposure arising from foreign currency transactions and follows established
risk management policies.

Carrying amounts of Company's foreign currency denominated monetary assets and monetary liabilities at end of
reporting period are as follows:

(b) Currency Risk - Sensitivity to Risk:

Following table demonstrates sensitivity to a reasonably possible change in USD, EUR, AUD exchange rates, with
all other variables held constant. Impact on company profit before tax is due to changes in fair value of monetary
assets and liabilities. Foreign currency exposures recognized by Company that have not been hedged by a
derivative instrument or otherwise are as under:

Currency Risk due to receivables net of payable in Nepali Rupees (NPR):

Since exchange rate between INR and NPR is fixed , impact on company profit before tax due to change in
exchange rate is negligible. Remittances from Nepal, are subject to fulfilment of certain conditions imposed by
the local Government at Nepal.

The Company uses derivative instruments such as forward exchange contracts and interest rate swaps for
risk management purposes and accounts for them at fair value through profit or loss. However, there were no
derivative contracts outstanding as at the reporting date (previous year: Nil) and accordingly, no related notional
or fair value disclosures are presented.

(c) Price Risk - Potential Impact of Risk & Management Policy

(i) Company is exposed to price risk due to its investment in Equity Shares & Mutual Funds. Price risk arises due
to uncertainties about future market values of these investments.

(ii) Company reviews its investments at regular intervals in order to minimize price risk arising from investments
in Equity Shares & Mutual Funds.

(iii) Majority of investments of Company are publicly traded and listed in BSE/NSE. Carrying amounts of the
Company's investment in Equity Shares & Mutual Funds at the end of the reporting period are given in Note
7.

(d) Price Risk - Sensitivity to Risk

Following table demonstrates sensitivity to a reasonably possible change in equity index where investments of
Company are listed. Impact on company's profit before tax is due to changes in NSE Index.

(e) Commodity Price Risk - Potential Impact of Risk & Management Policy

The Company is affected by the price volatility of certain commodities. Its operating activities require the
ongoing manufacture of industrial and domestic cable and therefore require a continuous supply of major items
of raw material viz Copper and Aluminium. Due to volatility in prices of Copper and Aluminium, Company has
entered into various purchase contracts for these materials. The Company's Board of Directors has adopted a risk
management strategy regarding commodity price risk and its mitigation. The Company partly mitigated the risk
of price volatility by entering into the contract for purchase of these raw material based on average price of each
month.

(f) Interest Rate Risk - Potential Impact of Risk & Management Policy

(i) Company invests in fixed deposits for a period between 8 days to 7 years. All fixed deposits are with banks,
accordingly there is no significant interest rate risk pertaining to these deposits.

(ii) Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. Company's exposure to risk of changes in market interest rates relates
primarily to the Company's long-term debt obligations with floating interest rates and fixed deposits.
Company's fixed rate borrowings and deposits are carried at amortized cost. They are therefore not subject
to interest rate risk as defined in Ind AS 107, since neither carrying amount nor future cash flows will fluctuate
because of a change in market interest rates. The Company also uses interest rate swap to mitigate the
interest rate risk.

(iii) Risk is managed by Company by maintaining an appropriate mix between fixed and floating rate of
borrowings.

Exposure of Company's borrowing to interest rate changes at end of reporting period are as follows:

(i) Credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss
to Company.

(ii) Company is exposed to credit risk from its operating activities (primarily Trade Receivables, Contract Assets,
Loan and security deposit and also from its investing activities including deposits with banks, forex transactions
and other financial instruments) for receivables, cash and cash equivalents, short-term investments and
derivative financial instruments. Credit limits are set based on a counterparty value. Methodology used to
set list of counterparty limits includes, counterparty Credit Ratings (CR) and sector exposure. Evolution of
counterparties is monitored regularly, taking into consideration CR and sector exposure evolution. As a result
of this review, changes on credit limits and risk allocation are carried out.

(iii) In respect of its investments, Company aims to minimize its financial credit risk through application of risk
management policies.

(iv) For financial instruments, Company attempts to limit credit risk by only dealing with reputed banks and
financial institutions.

(v) None of Company's cash equivalents, including fixed deposits with banks, are past due or impaired.

(vi) Trade receivables and contract assets are subject to defined credit limits, approval processes, and ongoing
monitoring controls. Credit limits are established based on each customer's credit profile and prevailing
market conditions, and are reviewed periodically to reflect changes in customer creditworthiness. Given the
Company's diversified customer base and broad geographical presence, exposure to concentration of credit
risk is not significant.

The Company recognises impairment on trade receivables and contract assets in accordance with the
Expected Credit Loss (ECL) model under Ind AS 109. Lifetime ECL is applied to trade receivables, and
12-month ECL is applied to contract assets.

As a practical expedient the Company has adopted 'Simplified Approach' using the provision matrix method
for recognition of expected loss on trade receivables. The provision matrix is based on three years rolling
average default rates observed over the expected life of the trade receivables and is adjusted for forward¬
looking estimates. These average default rates are applied on total credit risk exposure on trade receivables
and outstanding for more than one year at the reporting date to determine lifetime Expected Credit Losses.

Provisions for doubtful receivables are determined on both an individual and collective basis, taking into
account customer ageing, category, specific credit circumstances, and the financial condition and repayment
capacity of customers. Where receivables are identified as impaired, the Company actively pursues recovery
and enforces compliance with agreed credit terms. In addition to historical loss patterns, the Company
incorporates forward-looking inputs into its impairment assessment, including expected delays in collections,
changes in customer credit risk, and relevant macroeconomic and sector-specific developments. This
assessment is performed across all business segments, having regard to the nature of operations, demand

outlook, and the financial strength of customers. Customers exhibiting signs of financial stress are closely
monitored, and appropriate risk mitigation measures are undertaken. These may include revision of credit
terms, discounting of receivables with partial recourse, or, where necessary, recognition of revenue only upon
receipt of consideration from customers.

The Company applies the Expected Credit Loss (ECL) model to contract assets based on their short-term
nature. As contract assets primarily represent unbilled revenue that is created and realised within the same
operating cycle, the Company considers 12-month ECL to be appropriate. Accordingly, given the limited
credit risk exposure over the short duration, no material difference between 12-month and lifetime ECL is
expected.

In certain cases, the Company enters into channel financing arrangements involving the sale of trade
receivables to financing institutions. Where receivables are transferred without recourse and the Company
neither retains substantially all the risks and rewards of ownership nor retains control over the financial
assets, such receivables are derecognised upon transfer in accordance with Ind AS 109. These transactions
generally do not give rise to material gains or losses in the Statement of Profit and Loss. Where receivables
are transferred with recourse, the Company retains substantially all risks and rewards, primarily credit risk.
Such receivables continue to be recognised in the Statement of Financial Position, and the consideration
received is classified as a financial liability. Under these arrangements, customers remit payments directly to
the financing institution, which in turn adjusts the Company's utilised credit facility accordingly.

For Ageing of Trade Receivables and Movement of Expected Credit Loss Refer Note 12.

Liquidity risk is the risk that Company will face in meeting its obligations associated with its financial liabilities.
Company's approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities
when due without incurring unacceptable losses. In doing this, management considers both normal and stressed
conditions.

(i) Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended
31^st March, 2026 and 31^st March, 2025.

(ii) Cash flow from operating activities provides funds to service financial liabilities on a day-to-day basis.

(iii) Company regularly monitors rolling forecasts to ensure it has sufficient cash on an on-going basis to meet
operational needs. Any short term surplus cash generated is used for working capital management.

41. Capital Management
(A) Risk Management

Capital management is driven by Company's policy to maintain a sound capital base to support the continued
development of its business, to maintain an optimal capital structure to reduce cost of capital. The Management
and Board of Directors seeks to maintain a prudent balance between different components of Company's capital.
Management monitors capital structure and net financial debt at individual currency level. Net financial debt is
defined as current and non-current financial liabilities including lease liabilities less cash and cash equivalents and
short term investments.

During the Year ended 31^st March, 2026, the Company has complied with all externally imposed capital
requirement.

The capital structure is governed by policies approved by the Board of Directors and monitors capital using a
gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt,
interest bearing loans and borrowings, trade and other payables, lease liabilities, less cash and cash equivalents.

42. Investment in Subsidiary and Associate

a) Company's investment in erstwhile direct subsidiary:

The members of subsidiary company 'KEI Cables Australia Pty Ltd', in their meeting held on 23^rd February, 2024
had resolved to wound up the company with immediate effect and the Liquidator was appointed from that
date. Upon appointment of Liquidator, the control of the subsidiary company was transferred to the Liquidator
and accordingly, the company lost control over the subsidiary company 'KEI Cables Australia Pty Ltd' w.e.f.
23^rd February, 2024.This Subsidiary was Liquidated on 17^th June, 2024 and deregistered w.e.f. 18^th September,
2024 with Australian Securities & Investments Commission (ASIC). Accordingly Investment in the subsidiary
amounting to ' 0.01 Million, Recoverable amounting to ' 0.01 Million and loan outstanding of Rs ' 3.38 Million
was written off during the financial year 2024-25.

44. Environmental, Social and Governance (ESG)

As a socially and environmentally responsible business committed to the highest standards of corporate governance,
the Company is focused on growing sustainably to build long-term stakeholder value by embracing sustainable
development. The Company aims to deliver value to its employees, customers, suppliers, partners, shareholders and
society as a whole. In this regard, the Company has developed a robust ESG framework that will align it to the best
global standards and serve as a guide for the implementation of sustainable business practices.

46. During the financial year 2025-26, the Company restructured the compensation of its employees, effective within
the same year, in alignment with the four Labour Codes notified by the Government of India on 21 November 2025.
These Codes—the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and
the Occupational Safety, Health and Working Conditions Code, 2020—consolidate 29 existing central labour laws.
The Company has implemented the necessary adjustments based on the notified Codes and available draft rules. The
Company continues to monitor the finalisation of Central and State Rules and will provide appropriate accounting
effect to subsequent developments as and when they become applicable.

47. Events after the reporting period:

No significant adjusting event occurred between the balance sheet date and date of the approval of these standalone
financial statements by the Board of Directors of the Company requiring adjustment or disclosure.

48. Previous Year's figures have been regrouped / rearranged, wherever necessary.