1.15 Provisions and Contingencies

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and
it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the
amount of such obligation can be reliably estimated. If the effect of time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is recognized as a finance cost.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be
measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of
resources embodying economic benefits is remote, no provision or disclosure is made.

1.16 Cash and Cash Equivalents

Cash and Cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances,
demand deposits with banks where the original maturity is three months or less and other short term highly liquid investments.

1.17 Employee Benefits

Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee
benefits and they are recognized in the period in which the employee renders the related service. The Company recognizes
the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a
liability (accrued expense) after deducting any amount already paid.

Post-Employment Benefits:

I. Defined Contribution plans:

Recognition and measurement of defined contribution plans:

The Company recognizes contribution payable to a defined contribution plan as an expense in the Statement of Profit
and Loss when the employees render services to the Company during the reporting period.

II. Defined Benefit plans:

Recognition and measurement of Defined Benefit plans:

The cost of providing defined benefits is determined using the actuarial valuation techniques with actuarial valuations
being carried out at each reporting date. Re-measurements of the net defined benefit liability / (asset) comprising
actuarial gains and losses, are recognized in Other Comprehensive Income. The Company presents the above liability/
(asset) as current and non-current in the Balance Sheet as per actuarial valuation by the independent actuary.

Other Long Term Employee Benefits:

Entitlements to annual leave and sick leave are recognized when they accrue to employees. Sick leave can only be availed
while annual leave can either be availed or encashed subject to a restriction on the maximum number of accumulation of
leave. The Company determines the liability for such accumulated leaves using the actuarial valuation techniques.

1.18 Research & Development

Expenditure on research is recognized as an expense when it is incurred. Expenditure on development which does not
meet the criteria for recognition as an intangible asset is recognized as an expense when it is incurred.

1.19 Borrowing Cost

Borrowing cost includes interest, ancillary costs incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs, if any, directly attributable to the acquisition, construction or production of an asset that necessarily takes
a substantial period of time to get ready for its intended use or sale are capitalized, if any. All other borrowing costs are
expensed in the period in which they occur.

1.20 Operating Segment

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the
operating segments of the Company.

1.21 Events occurring after Reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting
period, the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet
date of material size or nature are only disclosed.

1.22 Earnings Per Share

a) Basic earnings per share

Basic Earnings per share is calculated by dividing the net profit for the period attributable to the equity shareholders by
the weighted average number of equity shares outstanding during the period.

b) Diluted earnings per share

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to the equity
shareholders after taking income tax effect of interest and other finance cost associated with dilutive potential equity
shares and the weighted average number of equity shares outstanding during the period is adjusted for the effects of
all dilutive potential equity shares.

1.23 Investment Properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company,
is classified as investment property.

Investment property is measured at its cost, including related transaction costs and where applicable borrowing costs less
depreciation and impairment if any.

Depreciation on building is provided over its useful life using the Straight-Line Method

1.24 Exceptional items

When items of income and expense within statement of profit and loss from ordinary activities are of such size, nature or
incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount
of such material items are disclosed separately as exceptional items.

1.25 Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the
right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and
leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the
lease, if it is reasonably certain not to be exercised.

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses,
and adjusted for any measurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities
recognised, initial direct costs incurred and lease payments made at or before the commencement date less any lease
incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term.

Lease Liability

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivable.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to
produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term,
a change in the lease payments or a change in the assessment of an option to purchase the underlying asset.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a
lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the
lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease
payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the
lease term.

1.26 Non current assets held for sale and discontinued operations

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use and a sale is considered highly probable. Non-current assets classified as
held for sale are measured at lower of their carrying amount and fair value less cost to sell. Non-current assets classified as
held for sale are not depreciated or amortised from the date when they are classified as held for sale. Non-current assets
classified as held for sale and the assets and liabilities of a disposal group classified as held for sale are presented separately
from the other assets and liabilities in the Standalone Balance Sheet.

a) Term Loan (Rupee Loan)

(i) Type of Loan : GECL (Guaranteed Emergency Credit Line) Loan sanctioned by State Bank of India @ 7.95% p.a.
of ' 852 Lakhs (Outstanding amount - ' 0 Lakhs (Previous Year ' 531.20 Lakhs))

Nature of Security :Secured by Second pari-passu charge over entire stock of raw material, finished goods, stock
in process, consumable stores& spares, packing materials, book debts, outstanding monies,receivables,claims and
bills etc. of IEC division of the company and Collateral security given as Second pari-passu charge on movable and
immovable fixed assets of IEC division situated at Plot No. 1-8, New Industrial Area, Mandideep, Raisen, MP along
with IDBI Bank.

Terms of Repayment: The same are repayable in 48 monthly instalments commencing from 31.10.2022.

(ii) Type of Loan : Further GECL (Guaranteed Emergency Credit Line) Loan sanctioned by State Bank of India @
7.95% p.a. of ' 426 Lakhs (Outstanding amount - ' 0 Lakhs (Previous Year ' 386.36 Lakhs))

Nature of Security :Secured by Second pari-passu charge over entire stock of raw material, finished goods, stock
in process, consumable stores& spares, packing materials, book debts, outstanding monies,receivables,claims and
bills etc. of IEC division of the company and Collateral security given as Second pari-passu charge on movable and
immovable fixed assets of IEC division situated at Plot No. 1-8, New Industrial Area,Mandideep, Raisen, MP along
with IDBI Bank.

Terms of Repayment: The same are repayable in 48 monthly instalments commencing after a moratorium period
24 months from the date of disbursement respectively.

(iii) Type of Loan : GECL (Guaranteed Emergency Credit Line) Loan sanctioned by IDBI @ 8.60% p.a. ' 400 Lakhs
(Outstanding amount - ' 0 Lakhs (Previous Year ' 375.01 Lakhs))

Nature of Security :Secured by Second pari-passu charge over entire stock of raw material, finished goods, stock
in process, consumable stores & spares, packing materials, book debts, outstanding monies,receivables, claims
and bills etc. of IEC division of the company and Collateral security given as Second pari-passu charge on movable
and immovable fixed assets of IEC division situated at Plot No. 1-8, New Industrial Area, Mandideep, Raisen, MP
along with SBI Bank

Terms of Repayment: The same are repayable in 48 monthly instalments commencing after a moratorium period
24 months from the date of disbursement respectively.

b) Loans repayable on demand - Inter-corporate loans taken during the year from related parties repayable on demand

c) Liability Component of Redeemable Preference Shares :

Redeemable Non-Cumulative Non-Convertible Preference Shares of ' 9518.97 Lakhs issued on 12.12.2018. Present
Value of Principal amount of such shares at the end of 20 years considered as Liability Component as per Ind-AS 32
using discount rate @ 7.50% is ' 3536.57 Lakhs (Previous year - 3289.84 Lakhs). Interest expense recognised during
the year as per Ind-AS 32 is ' 246.73 lakhs (Previous year - 229.55 Lakhs)

d) Working Capial Facilities for Banks:

(i) Type of Loan: Working capital facilities from State Bank of India, Bhopal Branch & IDBI Bank, Bhopal Branch for the
Insulator division against which drawing is ' 142.98 Lakhs (Previous year - ' 4239.72 Lakhs)

Nature of Security: Secured against hypothecation of all types of stocks and book debts and other receivable
situated at plot no 1-8, New Industrial area Mandideep, Tehsil-Goharganj,Distt-Raisen, M.P. or such other place as
approved by bank and secured collaterally by way of second charge on fixed assets of insulators division situated at
plot no 1-8, New Industrial area Mandideep, Tehsil-Goharganj,Distt-Raisen, M.P.

Risk Exposures

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is

exposed to various risks as follow:

A) Salary Increases : Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption
in future valuations will also increase the liability.

B) Investment Risk : If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than
the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan’s liability.

D) Mortality & disability : Actual deaths & disability cases proving lower or higher than assumed in the valuation can
impact the liabilities.

35 Segment Reporting

I) Based on the guiding principles given in Ind AS-108 “Operating Segment”, The Vice-Chairman and Managing Director of
the Parent Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108
“Operating Segments”. Operating Segments have been defined and presented based on the regular review by the
CODM to assess the performance of each segment and to make decision about allocation of resources. Accordingly, the
Company’s business segments are organised around customers on industry and products lines as under:

a. Conductor: Conductor includes electrical conductor and related items.

b. Insulator: Insulator includes electrical insulator and related items.

c. Real-estate : Real-estate includes Property at Faridabad given for rent purpose.

d. Others : This segment is engaged in Investment activities

The Company prepares its operating segment information in conformity with the accounting policies adopted for preparing
and presenting the financial statements of the Company as a whole.

No operating segments have been aggregated to form the above reportable operating segments.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and not allocable to segments on
reasonable basis have been included under ‘unallocated revenue / expenses / assets / liabilities’.

Finance costs are not allocated to individual segments as the underlying instruments are managed on a Company basis
Current taxes and Deferred taxes are not allocated to those segments as they are also managed on a Company basis

1) Segments have been identified and reported taking into account the nature of products and services, the differing
risk and returns, the organization structure and the internal financial reporting systems.

2) The segment revenues, results, assets and liabilities include the respective amounts identifiable to each of the
segments and amounts allocated on a reasonable basis.

3) All non-current assets of the company are located within India.

4) Information about major customers :

Two Customer contributed more than 10% (Aggregating amount ' 5044.5 Lakhs) to the Company’s Revenue in
2024-25

Two Customer contributed more than 10% (Aggregating amount ' 3104.52 Lakhs) to the Company’s Revenue in
2023-24

Note:

(a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective
carrying amount due to the short term maturities of these instruments.

(b) Fair value of non-current financial assets and liabilities has not been disclosed as there is no significant differences
between carrying value and fair value.

(c) The fair value is determined by using the valuation model/techniques with observable/non-observable inputs and
assumptions.

(d) Derivatives are carried at fair value at each reporting date. The fair values of the dervatives financial instruments has
been determined using valuation techniques with market observable inputs. The models incorporate various inputs
including the credit quality of counter-parties and foreign exchange forward rates.

(e) There are no transfers between Level 1, Level 2 and Level 3 during the years ended 31 March 2025 and 31 March 2024.
Fair Value hierarchy

All financial assets and liabilities for which fair value is measured in the financial statements are categorised within the fair
value hierarchy, described as follows: -

Level 1 - Quoted prices in active markets.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

Level 3 - Inputs that are not based on observable market data.

41. Financial Risk management
Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the company’s risk
management framework.

The Company through three layers of defence namely policies and procedures, review mechanism and assurance aims to
maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Audit committee of the Board with top management oversee the formulation and implementation of the risk management
policies. The risk are identified at business unit level and mitigation plan are identified, deliberated and reviewed at appropriate
forums.

The Company has exposure to the following risks arising from financial instruments:

- credit risk (see(i);

- liquidity risk (see(ii); and

- market risk (see(iii).

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company’s receivables from customers, loans and investments.

The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables and other financial assets

The Company has established a credit policy under which new customer is analysed individually for creditworthiness
before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes
external ratings, if they are available, financial statements, credit agency information, industry information and business
intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits
require approval from the appropriate authority as per policy.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether
they are an individual or a legal entity, whether they are institutional, dealers or end-user customer, their geographic
location, industry, trade history with the Company and existence of previous financial difficulties.

Expected credit loss for Trade receivables:

Based on internal assessment which is driven by the historical experience/ current facts available in relation to default
and delays in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its
allowance for trade receivable using lifetime expected credit loss. The balance past due for more than 6 months (net of
expected credit loss allowance) is ' 1118.34 Lakhs (31 March 2024: ' 2797.43 Lakhs)

Expected credit loss on financial assets other than trade receivables:

With regard to all financial assets with contractual cash flows, other than trade receivables, management believes these
to be high quality assets with negligible credit risk. The management believes that the parties from which these financial
assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and
accordingly no provision for expected loss has been provided on these financial assets. Break up of financial assets
other than trade receivables have been disclosed on standalone Balance Sheet.

ii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is
to ensure, as fas as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company’s treasury department is responsible for managing the short-term and long-term liquidity requirements.
Short term liquidity situation is reviewed daily by the treasury department. Longer term liquidity position is reviewed on a
regular basis by the Parent Company’s Board of Directors and appropriate decisions are taken according to the situation.

iii. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the
Company’s income or the value of its holding of financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales,
purchases and borrowings are denominated and the respective functional currencies of the Company. The functional
currencies of the Company are primarily the INR, USD and EUR. The currencies in which these transactions are primarily
denominated are USD and INR.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed
and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest
rate. The borrowings of the Company are principally denominated in INR and USD with a mix of fixed and floating rates
of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate and
LIBOR rates. The risk is managed by the Company by maintaing an appropriate mix metween fixed and floating rate
borrowings.

Exposure to interest rate risk

The interest rate profile of the Company’s interest bearing financial instruments as reported to the management of the
Company is as follows:

48 Assets held for sale and discontinued operations

Company had entered into a Memorandum of Understanding on 12th March 2024 with Nirmal Wires Pvt. Ltd. for the sale of
company’s Electrical Conductors unit at Khurda location with Land admeasuring 45.785 Acres for consideration of ' 7251.00
Lacs.Company has received the full consideration & aforesaid transactions are completed during the financial year 2024-25
post completion of Condition Precedents and certain other actionable as identified in the said agreements.

As on 31-Mar-24

The aforesaid transaction has been considered as highly probable and meet the criteria prescribed in Ind AS 105 “Non¬
current Assets Held for Sale and Discontinued Operations” to be considered as discontinued operation, hence, Company
has classified Property Plant & Equipment (including Land) of ' 3250.16 Lacs and Inventories of ' 297.06 Lacs as Assets
held for Sale in respect of Electrical Conductors unit at Khurda location.

As on 31-Mar-25

Company realised a Profit of ' 3,748.68 Lacs from sale of its assets of Electrical Conductors unit at Khurda location, which is
considered as an exceptional Items. On 18th July 2024, the company has sold its assets of Electrical Conductors unit at
Khurda location with Land admeasuring 45.785 Acres & Building at ' 3,041.69 Lacs, Plant & Machinery at ' 4,139.58 Lacs
and other assets including Furniture & Fixture, Office Equipments at ' 34.73 Lacs. Company also sold miscellaneous Stores
& Spares at ' 10.00 Lacs The total sales consideration of the transaction arrived at ' 7,226 Lacs.The aforesaid transactions
are completed post completion of Condition Precedents and certain other actionable as identified in the said agreements.

48AExceptional item - Loss on Sale of Coal Fire Gas Plant (Property, Plant & Equipments) of Insulator Unit

Company recognised Loss of ' 1,148.73 Lacs in respect of Coal Gasfire Plant (Property, Plant & Equipments) of Insulator
Unit, as the same is not in use and agreed to be sold, hence same is considered as an exceptional Items.

49 Security of current assets against borrowings - Details of Quarterly statements filed by the Company with banks -

Company has taken borrowings from banks on the basis of security of current assets for which quarterly statements of
current assets filed by the company with banks are in agreement with the books of accounts and there is no material
discrepancies.

50 Charges yet to be registered with ROC

Charges or satisfaction yet to be registered with ROC beyond the statutory period, details and reasons thereof - Not Applicable

52 Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current years classification
disclosure.

53 The financials statements has been approved by the Board on 28th May, 2025

As per our report of even date For and on behalf of the Board of directors of

For K. N. Gutgutia & Company Hindusthan Urban Infrastructure Ltd

Chartered Accountants

FRN: 304153E Raghavendra Anant Mody Deepak Kejriwal

(DIN : 03158072) (DIN : 07442554)

(B. R. Goyal) Chairman and Whole Time Director Managing Director

Partner

Membership No: 12172

Shailendra Jhalani M.L.Birmiwala

PAN : ADLPJ4576C PAN : AAGPB4160J

Place: New Delhi Chief Financial Officer President- Finance &

Date : 28th May,2025 Company Secretary