2 SIGNIFICANT ACCOUNTING POLICIES

a Basis of Preparation

These financial statements have been prepared
in accordance with Indian GAAP, complying with
the Accounting Standards specified under Section
133 of the Companies Act, 2013 read with the
Companies (Accounting Standards) Rules, 2021,
and are presented as per Division I of Schedule
III to the Act. The statements are prepared under
the historical cost convention on an accrual basis,
except for certain financial instruments measured
at fair value, and on a going concern basis. The

Company''s equity shares are listed on the SME
platform of NSE (NSE EMERGE). In terms of the
proviso to Rule 4(1) of the Companies (Indian
Accounting Standards) Rules, 2015, the Company
is not required to apply Ind AS. However, since its
shares are listed, the Company does not qualify as
a Small and Medium Sized Company (SMC) under
the AS Rules, 2021, and has accordingly not availed
any SMC exemptions or relaxations.

b Use of estimates

The preparation of the financial statements
in conformity with Indian GAAP requires the
management to make judgments, estimates, and
assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent
liabilities as at the date of the financial statements,
and the reported amounts of income and expenses
during the reporting period. Such estimates are
made on a reasonable and prudent basis, taking
into account all available information. However,
actual results may differ from these estimates.
Differences between actual results and estimates
are recognized in the period in which the results
are ascertained. Any revision to accounting
estimates resulting from changes in circumstances
or new information is recognized prospectively in
accordance with the requirements of the applicable
Accounting Standards.

c Current and non-current classifications

"An asset shall be classified as current when
it satisfies any of the following criteria:—

(a) It is expected to be realized in, or is
intended for sale or consumption in,
the company''s normal operating cycle;

(b) It is held primarily for the purpose of being traded;

(c) It is expected to be realized within
twelve months after the reporting date; or

(d) It is cash and cash equivalents unless it is restricted
from being exchanged or used to settle a liability
for at least twelve months after the reporting date.
All other assets are classified as non-current.

A liability shall be classified as current when
it satisfies any of the following criteria:

(a) It is expected to be settled in the
company''s normal operating cycle;

(b) It is held primarily for the purpose of being traded;

(c) It is due to be settled within twelve
months after the reporting date; or

(d) The company does not have an unconditional
right to defer settlement of the liability for at
least twelve months after the reporting date.
Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.
All other liabilities shall be classified as non¬
current."

d Property, Plant and Equipment

Property, Plant and Equipment (PPE) are stated at
cost less accumulated depreciation and accumulated
impairment losses, if any. Cost comprises purchase
price, non-refundable taxes, duties and any
expenditure directly attributable to bringing the
asset to its intended location and condition for use.
Subsequent expenditure is capitalised only when it
is probable that future economic benefits associated
with the expenditure will flow to the Company and
the cost can be measured reliably. All other repairs
and maintenance are charged to the Statement of
Profit and Loss. Borrowing costs directly attributable
to the acquisition or construction of qualifying
assets are capitalised as part of the cost of Property,
Plant and Equipment. Borrowing costs directly
attributable to the acquisition or construction of
qualifying assets are capitalised in accordance with
AS 16. Exchange differences on foreign currency
borrowings to the extent permitted under AS 11 are
capitalised as part of the cost of the related asset.

e Depreciation / Amortisation

Depreciation on Property, Plant and Equipment,
other than freehold land and capital work-in¬
progress (CWIP), is provided using the Written
Down Value (WDV) method over the estimated
useful lives of the respective assets as prescribed
under Schedule II of the Companies Act, 2013.
Depreciation has been charged on additions to PPE
from the date the assets were put to use on a pro¬
rata basis.

Leases

Leases are classified as finance leases when
substantially all the risks and rewards incidental

to ownership of the leased asset are transferred
to the Company. Assets acquired under finance
leases are recognised at the lower of the fair
value of the leased asset and the present value of
the minimum lease payments at the inception of
the lease. The corresponding lease obligation is
recognised as a liability at the inception of the lease.
Lease payments are apportioned between finance
charges and reduction of the lease liability so as to
achieve a constant periodic rate of interest on the
outstanding liability.

Leases in which substantially all the risks and
rewards incidental to ownership remain with the
lessor are classified as operating leases. Lease
payments under operating leases are recognised
as an expense in the Statement of Profit and Loss
on a straight-line basis over the lease term unless
another systematic basis is more representative
of the pattern of benefit derived from the leased
asset.

g Employee Benefits

"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, bonus and ex-gratia.
The undiscounted amount of short term employee
benefits to be paid in exchange for employee
services is recognised as an expense as the related
service is rendered by employees."

"Compensated absences The employee can
carry forward a portion of unutilized accrued
compensated absences and utilize in future service
period or receive cash compensation on termination
of employment. Liability for compensated absences
is accrued based on an actuarial valuation at the
balance sheet date, carried out by an independent
actuary using the projected unit credit method.
Compensated absences are short term employee
benefits and are provided for on the basis of last
drawn salary for the unavailed balance of leave. The
entire provision is presented as current, since the
company does not have an unconditional right to
defer settlement of these obligation."

"Defined contribution plans A defined contribution
plan is a post employment benefits plan under
which an entity pays specified contributions to
a separate entity and has no obligation to pay
any further amounts. Company makes specified
monthly contributions towards employee provident
fund to government administered provident fund
scheme which is a Defined Contribution Plan. The
Company''s contribution is recognized as an expense
in the statement of profit and loss during the period

in which the employee renders the related service.
There are no obligation other than the contribution
payable to the respective funds."

"Defined benefit plans The Company provides for
gratuity, a defined benefit plan (the "Gratuity Plan")
covering eligible employees in accordance with
the Payment of Gratuity Act, 1972. The Gratuity
Plan provides a lump sum payment to vested
employees at retirement, death, incapacitation or
termination of employment, of an amount based on
the respective employee''s salary and the tenure of
employment. The liability is actuarially determined
using the Projected Unit Credit method at the end of
each year. Actuarial losses/ gains are recognised in
the statement of profit and loss in the year in which
they arise. The Company recognises gains and
losses on the curtailment or settlement of a defined
benefit plan when the curtailment or settlement
occurs."

h Impairment

At each balance sheet date, the management reviews
the carrying amounts of its assets included in each
cash-generating unit (CGU) to determine whether
there is any indication of impairment, if any such
indication exists, the recoverable amount of the
asset is estimated in order to determine the extent
of impairment loss, If any. Recoverable amount
is the higher of an asset''s fair value less costs of
disposal and value in use. In assessing value in use,
the estimated future cash flows expected from the
continuing use of the asset and from its disposal
are discounted to their present value using a pre¬
tax discount rate that reflects the current market
assessments of time value of money and the risks
specific to the asset. Reversal of impairment loss is
recognised as income in the statement of profit and
loss.

i Investments

Non-current investments are stated at cost. A
provision for diminution in the value of such
investments is made only if, in the opinion of
management, the decline is other than temporary.
Current investments, excluding current maturities
of long-term investments, comprising investments
in mutual funds, government securities, and bonds,
are stated at the lower of cost and fair value.

j Revenue recognition

Revenue is recognized when control of goods or
services is transferred to the customer and it is
probable that the economic benefits associated
with the transaction will flow to the Company.
Revenue from the sale of products is recognized
upon delivery and acceptance by the customer,

when control and significant risks and rewards
of ownership pass to the customer. Revenue is
measured at the transaction price net of trade
discounts, rebates, returns, and applicable indirect
taxes.

The capital gains on sale of investment if any are
recognized on completion of transaction. No
notional profits/losses are recognized on such
investments.

Dividend is recorded when the right to receive
payment is established. Interest income is
recognised on time proportion basis taking into
account the amount outstanding and the rate
applicable.

k Taxation

Current income tax expense comprises taxes on
income from operations in India and in foreign
jurisdictions. Income tax payable in India is
determined in accordance with the provisions of the
Income Tax Act, 1961.

The Company has opted for taxation under Section
115BAA of the Income-tax Act, 1961. Accordingly,
current tax is provided at the rate prescribed
under the said section together with the applicable
surcharge and cess. The provisions relating to
Minimum Alternate Tax (MAT) are not applicable to
the Company.

Deferred tax expense or benefit is recognised on
timing differences, being the differences between
taxable income and accounting income that
originate in one period and are capable of reversal
in one or more subsequent periods. Deferred
tax assets and liabilities are measured using the
tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
Deferred tax assets are recognised and carried
forward only to the extent that there is reasonable
certainty that sufficient future taxable income will
be available against which such deferred tax assets
can be realised. In cases where the Company has
unabsorbed depreciation or carried forward tax
losses, deferred tax assets are recognised only if
there is virtual certainty supported by convincing
evidence that sufficient future taxable income will
be available.

The Company offsets deferred tax assets and
deferred tax liabilities if it has a legally enforceable
right and these relate to taxes on income levied by
the same governing taxation laws.

l Foreign currency transactions

Income and expense in foreign currencies are
converted at exchange rates prevailing on the

date of the transaction. Foreign currency monetary
assets and liabilities other than net investments
in non-integral foreign operations are translated
at the exchange rate prevailing on the balance
sheet date and exchange gains and losses are
recognised in the statement of profit and loss.
Exchange difference arising on a monetary item
that, in substance, forms part of an enterprise''s
net investments in a non-integral foreign operation
are accumulated in a foreign currency translation
reserve.

m Inventories

Raw materials are carried at the cost. Cost is
determined on a First in First out basis (FIFO).
Purchased goods-in-transit are carried at cost. Work-
in-progress is carried at the lower of cost and net
realisable value. Stores and spare parts are carried
at lower of cost and net realisable value. Finished
goods produced or purchased by the Company are
carried at lower of cost and net realisable value.
Cost includes direct material and labour cost and a
proportion of manufacturing overheads.

n Cash and cash equivalents

Cash and cash equivalents comprise cash on
hand, balances with banks, and short-term highly
liquid investments with original maturities of
three months or less that are readily convertible
into known amounts of cash and are subject to an

insignificant risk of changes in value.

o Earnings per share (EPS)

Basic earnings per share is computed by dividing
the net profit or loss for the period attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
period. Diluted earnings per share is computed by
taking into account the weighted average number
of equity shares outstanding during the period
and the weighted average number of equity shares
that would be issued upon conversion of all dilutive
potential equity shares into equity shares.

b Use of estimates

The preparation of financial statements requires
the management of the Company to make
estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures
relating to the contingent liabilities as at the date
of the financial statements and reported amounts
of income and expense during the year. Examples
of such estimates include provisions for doubtful
receivables, provision for income taxes, the useful
lives of depreciable Property, Plant and Equipment
and provision for impairment. Future results could
differ due to changes in these estimates and the
difference between the actual result and the
estimates are recognised in the period in which the
results are known / materialise.

c Property, Plant and Equipment

Property, Plant and Equipment are stated at cost,
less accumulated depreciation / amortisation. Costs
include all expenses incurred to bring the asset to
its present location and condition.

d Depreciation / Amortisation

In respect of Property, Plant and Equipment
(other than freehold land and capital work-in¬
progress) acquired during the year, depreciation/
amortisation is charged as per WDV (Written Down
Value) method so as to charge depreciation on
fixed assets on their book value at the end of the
year before charging such depreciation as per
Schedule II of Companies Act,2013.

2 SIGNIFICANT ACCOUNTING POLICIES

a Basis of Preparation

These financial statements have been prepared in
accordance with the Generally Accepted Accounting
Principles in India (''Indian GAAP'') to comply with
the Accounting Standards specified under Section
133 of the Companies Act, 2013, as applicable.
The financial statements have been prepared
under the historical cost convention on accrual
basis, except for certain financial instruments
which are measured at fair value.

e Leases

Assets taken on lease by the Company in its capacity
as lessee, where the Company has substantially all
the risks and rewards of ownership are classified
as finance lease. Such a lease is capitalised at the
inception of the lease at lower of the fair value or
the present value of the minimum lease payments

and a liability is recognised for an equivalent
amount. Each lease rental paid is allocated
between the liability and the interest cost so as to
obtain a constant periodic rate of interest on the
outstanding liability for each year.

Lease arrangements where the risks and rewards
incidental to ownership of an asset substantially
vest with the lessor, are recognised as operating
leases. Lease rentals under operating leases are
recognised in the statement of profit and loss on a
straight-line basis.

f Impairment

At each balance sheet date, the management reviews
the carrying amounts of its assets included in each
cash generating unit to determine whether there is
any indication that those assets were impaired. If
any such indication exists, the recoverable amount
of the asset is estimated in order to determine the
extent of impairment. Recoverable amount is the
higher of an asset''s net selling price and value in
use. In assessing value in use, the estimated future
cash flows expected from the continuing use of the
asset and from its disposal are discounted to their
present value using a pre-tax discount rate that
reflects the current market assessments of time
value of money and the risks specific to the asset.
Reversal of impairment loss is recognised as income
in the statement of profit and loss.

g Investments

Long-term investments and current maturities
of long-term investments are stated at cost, less
provision for other than temporary diminution
in value. Current investments, except for current
maturities of long-term investments, comprising
investments in mutual funds, government securities
and bonds are stated at the lower of cost and fair
value.

h Revenue recognition

Revenue from the sale of copper wire and cables
are recognised upon delivery, which is when title
passes to the customer.Revenue is reported net of
discounts.

Dividend is recorded when the right to receive
payment is established. Interest income is
recognised on time proportion basis taking into
account the amount outstanding and the rate
applicable.

i Taxation

Current income tax expense comprises taxes on
income from operations in India and in foreign
jurisdictions. Income taxpayable in India is
determined in accordance with the provisions of
the Income Tax Act, 1961. Tax expense relating to
foreign operations is determined in accordance
with tax laws applicable in countries where such
operations are domiciled.

Minimum Alternative Tax (MAT) paid in accordance
with the tax laws in India, which gives rise to future
economic benefits in the form of adjustment of
future income tax liability, is considered as an asset
if there is convincing evidence that the Company will
pay normal income tax after the tax holiday period.
Accordingly, MAT is recognised as an asset in the
balance sheet when the asset can be measured
reliably and it is probable that the future economic
benefit associated with it will fructify.

Deferred tax expense or benefit is recognised on
timing differences being the difference between
taxable income and accounting income that
originate in one period and is likely to reverse in one
or more subsequent periods. Deferred tax assets
and liabilities are measured using the tax rates and
tax laws that have been enacted or substantively
enacted by the balance sheet date.

Advance taxes and provisions for current income
taxes are presented in the balance sheet after off¬
setting advance tax paid and income tax provision
arising in the same tax jurisdiction for relevant tax

paying units and where the Company is able to
and intends to settle the asset and liability on a net
basis.

The Company offsets deferred tax assets and
deferred tax liabilities if it has a legally enforceable
right and these relate to taxes on income levied by
the same governing taxation laws.

j Foreign currency transactions

Income and expense in foreign currencies are
converted at exchange rates prevailing on the date
of the transaction. Foreign currency monetary
assets and liabilities other than net investments
in non-integral foreign operations are translated
at the exchange rate prevailing on the balance
sheet date and exchange gains and losses are
recognised in the statement of profit and loss.
Exchange difference arising on a monetary item
that, in substance, forms part of an enterprise''s
net investments in a non-integral foreign operation
are accumulated in a foreign currency translation
reserve.

k Inventories

Raw materials are carried at the lower of cost
and net realisable value. Cost is determined on

a weighted average basis. Purchased goods-in-
transit are carried at cost. Work-in-progress is
carried at the lower of cost and net realisable value.
Stores and spare parts are carried at lower of cost
and net realisable value. Finished goods produced
or purchased by the Company are carried at lower
of cost and net realisable value. Cost includes
direct material and labour cost and a proportion of
manufacturing overheads.

l Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into
known amount of cash that are subject to an
insignificant risk of change in value and having
original maturities of three months or less from the
date of purchase, to be cash equivalents.