Notes to Accounts of Ram Ratna Wires Ltd.

Mar 31, 2025

xi) Provisions, Contingent Liabilities and Contingent
Assets

The Company recognised the provisions when
the Company has a present legal or constructive
obligation as a result of past events, it is probable
that an outflow of resources will be required to
settle the obligation and the amount can be reliably
estimated. These are reviewed at each year end and
reflect the best current estimate. Provisions are not
recognised for future operating losses.

Where there are number of similar obligations,
the likelihood that an outflow will be required in
settlement is determined by considering the class
of obligations as a whole. A provision is recognised
even if the likelihood of an outflow with respect to any
one item included in the same class of obligations
may be small.

Provisions are measured at the present value of
Management''s best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. If the effect of time value of
money is material, the provisions are discounted
using current pre-tax rate that reflects current
market assessments of the time value of money and
the risks specific to the liability. The increase in the
provision due to the passage of time is recognised as
interest expense.

A disclosure for a contingent liability is made when
there is a possible obligation or present obligation

arising from past events the existence of which
will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events
not wholly within the control of the Company and
where it is either not probable that an outflow of
resources will be required to settle the obligation or a
reliable estimate of the amount cannot be made.
Contingent assets are neither recognised nor
disclosed in the financial statements.

xii) Revenue

Revenue from contracts with customer is recognised
when the Company satisfies a performance
obligation by transferring the promised goods or
services to a customer at a transaction price. The
Company assesses promises in the contract that
are separate performance obligations to which a
portion of transaction price is to be allocated. The
transaction price is the amount of consideration to
which the company expects to be entitled in exchange
for transferring promised goods or services to a
customer as per contract, excluding amount of taxes
collected on behalf of the government or other amount
collected from customers in its capacity as an agent.
The transaction price is adjusted of trade discount,
cash discount, volume rebate and other variable
considerations as per the terms of contract which is
estimated at contract inception and constrained until
it is highly probable that a significant revenue reversal
in the amount of cumulative revenue recognised will
not occur when the associated uncertainty with the
variable consideration is subsequently resolved. It is
reassessed at end of each reporting period.
Consideration payable to customers is accounted
as reduction of transaction price and therefore, of
revenue unless the payment to the customer is in
exchange for a distinct good or service that the
customer transfers to the Company.

Sale of Goods

Revenue from sale of products is recognised at a
point in time when the control on the goods have
been transferred to a customer i.e. when material is
delivered to the customer or as per shipping terms,
as may be specified in the contract.

Job Work

Revenue from Job work is recognised when intended
job work is carried out and goods are ready for
transfer to the owner of the goods.

Eligible export incentives are recognised in the year
in which the conditions precedents are met and there
is no significant uncertainty about the collectability.

xiii) Other Income
Interest Income

Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income can
be measured reliably. Interest income is accrued on
a time proportion basis, by reference to the principal
outstanding and the effective interest rate applicable,
which is the rate that exactly discounts estimated
future cash receipts through the expected life of the
financial asset to that asset''s net carrying amount on
initial recognition.

Rental Income

Rental income is recognised in the statement of
profit and loss on straight line basis.

Dividend Income

Dividend Income from investments is recognised
when shareholder''s rights to receive payment have
been established.

Commission Income

Guarantee commission income (notional) for the
financial guarantee issued by the Company to the
banks/ financial institutions in respect of credit
facility granted by the banks/ financial institutions to
the dealers of the Company is recognised over the
period of guarantee.

Guarantee commission income (notional) for the
financial guarantee issued by the Company to the
bank in respect of credit facility granted by the
bank to a subsidiary is measured at the higher of
the amount of loss allowance determined as per
impairment requirements of Ind AS 109 and the
amount recognised less cumulative amount of
income recognised in accordance with the principles
of Ind AS 115 amortisation.

xiv) Government Grant

Government grants are recognised when there
is reasonable assurance that the grant will be
received and the company will comply with all the
attached conditions. When the grant relates to
revenue expense, it is recognised as an income on a
systematic basis over the period necessary to match
it with the expenses that it is intended to compensate.

Government grant related to expenditure on property,
plant and equipment is included as cost of property,
plant and equipment and is credited to the statement
of profit and loss over the useful lives of qualifying
assets or credited to the statement of profit and loss
over the period in which the corresponding export
obligation is fulfilled. Total grants availed less the
amounts credited to the statement of profit and loss
at the balance sheet date are included in the balance
sheet as deferred income.

xv) Foreign Currency Transactions

Transactions denominated in foreign currencies
entered into by the Company are recorded in
the functional currency (i.e. Indian Rupees), by
applying the exchange rate prevailing on the date of
transaction. Foreign currency denominated monetary
items is restated at the closing exchange rates.
Non-monetary items are recorded at exchange rate
prevailing on the date of transaction. Non-monetary
items that are measured at fair value in a foreign
currency are translated using the exchange rates at
the date when the fair value is measured. Exchange
differences arising out of these translations are
recognised in the statement of profit and loss.

The forward exchange contracts are marked
to market and gain/ loss on such contracts are
recognised in the statement of profit and loss at the
end of each reporting period.

The Company as per previous GAAP elected to
recognise as part of cost of assets, exchange
differences arising on translation of long-term
foreign currency monetary items and this method of
recognition of such exchange difference is followed
by the Company as allowed under Ind AS 101. Such
differences are added/ deducted to/ from the cost of
assets and are recognised in the statement of profit
and loss on a systematic basis as depreciation over
the balance life of the assets.

xvi) Employee Benefits

a) Short Term Obligations

All employee benefits payable wholly within
twelve months of rendering the service are
classified as short-term employee benefits
and they are recognised in the period in which
the employee renders the related service. The
Company recognises 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.

b) Post-Employment Benefits

i) Defined benefit plan

Gratuity liability is a defined benefit obligation
and recognised based on actuarial valuation
carried out using the Projected Unit Credit
Method. The scheme is maintained and
administered by Life Insurance Corporation
of India to which the Company makes
periodical contributions through its trustees.

ii) Defined contribution plans

A Defined Contribution Plan is plan under
which the Company makes contribution to
Employee''s Provident Fund administrated
by the Central Government and Employee
State Insurance Fund administered by the
Employee State Insurance Corporation. The
Company''s contribution is charged to the
statement of profit and loss.

c) Other Long Term Employee Benefits- Leave
Salary

The liability towards leave salary which is not
expected to be settled wholly within 12 months
after the end of the period in which the employees
render the related services is recognised based
on actuarial valuation carried out using the
Projected Unit Credit Method.

xvii) Borrowing Cost

Borrowing cost includes interest, amortisation
of 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 that are directly attributable to
the acquisition or construction of an asset that
necessarily takes a substantial period of time to
get ready for its intended use are capitalised. All
other borrowing costs are expensed in the period in
which they occur.

Tax expense is the aggregate amount included in
the determination of profit or loss for the period in
respect of current tax and deferred tax.

Current Tax

Current tax is the amount of income tax payable in
respect of taxable profit for the year. Taxable profit
differs from net profit as reported in the statement
of profit and loss because taxable profit is adjusted
for items of income or expenses which are taxable
or deductible in other years and also for items which
are not taxable or deductible under the Income Tax
Act, 1961("the IT Act").

The Company''s liability for current tax is calculated
using tax rates and tax laws in force.

Deferred Tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax
base used in the computation of taxable profit under
the "IT Act".

Deferred tax liabilities are generally recognised
for all taxable temporary differences. However, in
case of temporary differences that arise from initial
recognition of assets or liabilities in a transaction
(other than business combination) that affects
neither the taxable profit nor the accounting profit,
deferred tax liabilities are not recognised.

Deferred tax assets are generally recognised for all
deductible temporary differences to the extent it is
probable that taxable profits will be available against
which those deductible temporary differences can be
utilised. In case of temporary differences that arise
from initial recognition of assets or liabilities in a
transaction (other than business combination) that
affect neither the taxable profit nor the accounting
profit, deferred tax assets are not recognised.

The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent it is no longer probable that
sufficient taxable profit will be available to allow
entire or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are
expected to apply in the period when the liability
is settled or the asset is realised based on the tax
rates and tax laws in force. The measurement of
deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner
in which the Company expects, at the end of the
reporting period, to cover or settle the carrying
amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred
tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.

Current and deferred tax is recognised in statement
of profit and loss, except to the extent that it relates to
items recognised in Other Comprehensive Income or
directly in equity, in which case, the tax is recognised
in other comprehensive income or directly in equity,
respectively.

xix) Employee Share Based Payment

Equity-settled share-based payments to employees
are measured at the fair value of the employee stock
option at the grant date.

The fair value determined at the grant date of equity-
settled share-based payment is recognised as
deferred employee compensation and is amortised
in statement of profit and loss over the vesting
period, based on the Company''s estimated of
equity instruments that will eventually vest, with
corresponding increase in the equity (Share based
payment reserve outstanding) in respect of employee
share-based payment to employees of the Company.
In respect of equity-settled share-based payments
to employees of subsidiaries of the Company, the
fair value determined at the grant date of equity-
settled share-based payment is recognised as
capital contribution by the Parent over the vesting
period, based on the Company''s estimated of equity
instruments that will eventually vest to employees of
the subsidiaries with corresponding increase in the
equity.

At the end of each reporting period, the Company
revisit its estimate of the number of equity
instruments expected to vest. The impact of the
revision of the original estimates, if any, is recognised
in the statement of profit and loss or as capital
contribution such that the cumulative expense/
capital contribution reflects the revised estimate,
with a corresponding adjustment to the Share based
payment reserve outstanding.

xx) Segment Reporting

Operating Segment is a segment of an entity whose
operating results are regularly reviewed by the Chief
Operating Decision Maker (CODM) to make decision
about resource to be allocated to the segment and
assess it''s performance and accordingly, information
of two reportable segment (Wires and Tubes) have
been disclosed. The Company has opted for an
exemption as per para 4 of Ind AS 108. Segment
information is thus given in the consolidated financial
statements of the Company.

xxi) Events after Reporting date

Where events occurring after the Balance Sheet
date provide evidence of conditions which 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.

xxii) Earnings per Share

Basic earnings per share are calculated 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.

For the purpose calculating Diluted Earnings per
share, the net profit or loss for the period attributable
to equity shareholders and the weighted average
number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity
shares.

xxiii) Research and Development

Expenditure incurred by the Company on development
of products are recognised as an intangible asset if
and only if, expenditure can be measured reliably, the
product or process is technically and commercially

feasible, future economic benefits are probable and
the Company intends to and has sufficient resources
to complete development and use or sell the assets
otherwise such expenses are recognised in the
Statement of Profit and Loss as incurred. Subsequent
to initial recognition, the assets are measured at cost
less accumulated amortisation and any accumulated
impairment losses, if any. Expenditures incurred on
research are charged to the Statement of Profit and
Loss as incurred.

Fixed assets utilised for research and development
are capitalised and depreciated in accordance with
the policies stated for Property, Plant & Equipment
and Intangible Assets.

xxiv) Business Combination

Business Combination under common control is
accounted as per "Pooling of Interest Method"
prescribed in Appendix C of Ind AS 103 "Business
Combinations" prescribed under Section 133 of the
Act read with, relevant clarifications issued by the
IND AS Transition Facilitation Group (ITFG) of the
Institute of Chartered Accountants of India (ICAI)
and other generally accepted accounting principles,
at carrying amount of assets and liabilities as
considered in the consolidated financial statements
after eliminating the inter-se transactions and
any excess of consideration issued over the net
assets absorbed is recognised as capital reserve
or amalgamation adjustment reserve on common
control business combination.

* Includes project related expenses aggregating to ? 33.23 Lakhs (P.Y. '' NIL). The said expenses comprises of borrowing cost,

personnel costs and other related expenses.

2.7 Capital Work-in-Progress, whose completion is overdue or has exceeded its cost compare to its original plan : '' NIL
(P.Y. '' NIL).

2.8 Capital Work-in-Progress, project temporarily suspended : '' NIL (P.Y. '' NIL).

2.9 No Proceeding against the Company has 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.

2.10 Revaluation of Property Plant & Equipment, Rights to Use Assets and Intangible Assets : '' NIL (P.Y. '' NIL)

2.11 Land classified as held for sale are the assets available for sale in its present condition and management is intending to
conclude the sale within a period of 12 months of the Balance Sheet date and measured at lower of its carrying value or
fair value less cost of sale.

2.12 Property, plant & equipment in transit and not included in above of ? 603.80 Lakhs (P.Y. '' NIL).

2.13 During the year the Company has executed the Sale Deed in respect of the balance land parcel bearing new Survey No.
78/1/2 admeasuring 14,005 sq. meters, which was classified as held for sale out of the larger land parcel upon receiving
the survey and sub-division order from the Survey and Settlement Officer, Silvassa and Deputy Collector (Silvassa) Dadra
and Nagar Haveli and adjusted the advance of ? 138.30 Lakhs received duirng in the previous year from R R Kabel Limited,
a related party.

3.1 During the year, the Company acquired 60% ownership interest in Tefabo Product Pvt. Ltd. under the share purchase
agreement dated 7^th November, 2024 (Note 50).

3.2 Pursuant to the change in the shareholding structure of M/s Epavo Electricals Private Limited (EPAVO) wherein
the Company''s interest in the ownership of EPAVO has reduced from 74% to 50% and upon execution of the Deed of
Amendment to the Joint Venture Agreement on 30^th September, 2024, EPAVO ceased as a subsidiary of the Company w.e.f.
30^th September, 2024.

3.3 The Company has issued a Corporate Guarantee to HDFC Bank Ltd. ("the Bank") floating with a personal guarantee of a
director of the Company and his relative for the working capital facility of ? 2,500.00 Lakhs (P.Y. ? 2,500.00 Lakhs) availed
by Epavo duly secured by hypothecation of current assets (both present and future) of Epavo, under Deed of Guarantee
dated 24^th March, 2023. The said Corporate Guarantee will be released upon the creation of requisite security by Epavo
(Note 30(a)(ii)).

3.4 Guarantees are issued by the Company in accordance with Section 186 of the Companies Act, 2013 read with rules issued
thereunder. Details of guarantees issued and outstanding (Note 30(a)(ii)).

3.5 The Company has complied with the provision of section 2(87) of the Companies Act, 2013 read with the Companies
(Restriction on number of Layer) Rules, 2017.

3.6 Investments are held in the name of the Company and/ or its nominees. The Company has not pledged its investments to
raise loans.

3.7 Information on Company''s ownership interest, financials and other information of the subsidiaries and the joint ventures -
Note 40 of the Consolidated Financial Statements.

4.1.3 Details of investments made and outstanding are given in Note 3 and Note 41.

4.2 Loans or advances to Promoters, Directors & KMPs : '' NIL (P.Y. '' NIL).

4.3 Loans given to the subsidiaries and a joint venture are out of accumulated profit and profit for the year, and not from the
borrowed fund.

4.4 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, directly or indirectly, lend or invest
in other person or entities identified by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee,
security of the like to or on behalf of the Ultimate Beneficiaries.

4.5 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding, whether recorded in writing or otherwise, that the Company shall whether, directly or indirectly, lend or
invest in other persons or entities identified by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

8.1 The above includes inventories held by third parties amounting to '' 260.49 Lakhs (P.Y. '' 131.31 Lakhs).

8.2 The cost of inventories recognised as an expense during the year is disclosed in Note 24 and 25.

8.3 The cost of inventories written down during the year : '' NIL (PY. '' NIL).

8.4 The inventories are hypothecated as the security as a disclosed in Note 13.4 & 13.5.

9.3 Trade Receivables are generally non-interest bearing with a credit period of 45 days to 90 days.

9.4 The Company has arranged the channel financing facility from the banks and the Financial Institutions for its customers
under which a sum of '' 8,366.68 Lakhs (PY. '' 4,678.15 Lakhs) has been received (net of advances) as on the date of
balance sheet and correspondingly the trade receivables stand reduced by the said amount. Also refer Note 30.2 in respect
of the first loan default guarantees issued by the Company in respect of the channel financing facility.

9.5 Trade Receivables have been pledged as a security against secured borrowing from the banks, the terms thereof disclosed
in Note 13.4 & 13.5.

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Mar 31, 2024

(c) MATERIAL ACCOUNTING POLICIES

i) Property, Plant and Equipment

Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any. The cost of an item of property, plant and equipment comprises of its purchase price including import duties and other nonrefundable purchase taxes or levies, directly attributable cost of bringing the asset to its working condition for its intended use and the initial estimate of decommissioning, restoration and similar liabilities, if any. Any trade discount or rebate is deducted in arriving at the purchase price. Cost includes cost of replacing a part of a plant and equipment if the recognition criteria are met.

Items such as spare parts, stand-by equipment and servicing equipment that meet the definition of property, plant and equipment are capitalized at cost and depreciated over their useful life. Costs in nature of repairs and maintenance are recognized in the statement of profit and loss as and when incurred.

Capital work-in-progress includes cost of property, plant and equipment not ready for the intended use as at the balance sheet date.

The cost and related accumulated depreciation are eliminated from the Financial Statements upon sale or retirement of the property, plant and equipment and the resultant gains or losses are recognised in the statement of profit and loss. Property, plant and equipment to be disposed of are reported at the lower of the carrying value or the fair value less cost of disposal.

Where an item of property, plant and equipment comprises major components having different useful lives, these components are accounted for as separate items.

The Company had elected to continue with the carrying value of all of its property, plant and equipment appearing in the financial statements prepared in accordance with accounting standards notified under section 133 of the

Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (Generally Accepted Accounting Standards “Previous GAAP”) and used as the deemed cost of the property, plant and equipment in the opening balance sheet under Ind AS effective 1^st April, 2016.

Exchange differences arising on translation of long-term foreign currency monetary items recognised in the Previous GAAP financial statements in respect of which the Company has elected to recognise such exchange differences as a part of cost of assets is allowed under Ind AS 101. Such differences are added/deducted to/ from the cost of assets and are recognised in the statement of profit and loss on a systematic basis as depreciation over the balance life of the assets.

ii) Intangible Assets

Intangible assets acquired are initially measured at cost. Intangible assets arising on acquisition of business are measured at fair value as at date of acquisition. Following initial recognition, intangible assets with defined useful lives are carried at cost less accumulated amortization and accumulated impairment loss, if any.

Intangible Assets consist of Computer Software license or rights under the license agreement are measured on initial recognition at cost. Costs comprise of license fees and cost of system integration services and development.

The carrying amount of an intangible asset is derecognized when no future economic benefits are expected from its use

The Company had elected to continue with the carrying value of all of its intangible Assets appearing in the financial statements prepared in accordance with Indian accounting standards notified under section 133 of the Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (Generally Accepted Accounting Standards “Previous GAAP”) and used as the deemed cost of the Intangible Assets in the opening balance sheet under Ind AS effective 1^st April, 2016.

2.1 The details of Property, Plant & Equipment hypothecated against borrowings are presented in Note 13.3 to 13.8.

2.2 The amount of contractual commitments for the acquisition of Property, Plant & Equipment is disclosed in Note 30B(i).

2.3 The amount of Foreign Exchange Difference & Interest capitalised : NIL (P.Y. NIL).

2.4 All Property, Plant & Equipment are held in the name of the Company. The Title deeds of all immovable properties are in the name of Company.

2.5 All lease agreements are duly executed in favour of the Company.

2.6 Capital-work-in progress ageing schedule :

2.7 Capital Work-in-Progress, whose completion is overdue or has exceeded its cost compare to its original plan : NIL (P.Y. NIL).

2.8 Capital Work-in-Progress, project temporarily suspended : NIL (P.Y. NIL).

2.9 No Proceeding against the Company has 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.

2.10 Revaluation of Property Plant & Equipment, Rights to Use Assets and Intangible Assets : NIL (P.Y. NIL).

2.11 Land classifed as held for sale are the assets available for sale in its present condition and management is intending to conclude the sale within a period of 12 months of the Balance Sheet date and measured at the lower of its carrying value or fair value less cost of sale.

2.12 In terms of the resolution passed by the Board of Directors of the Company in their meeting held on 14^th November, 2022 an agreement for sale dated 07^th March, 2023 was executed, in respect of which the Company has executed Sale deed dated 18^th August, 2023 and an Amendment Deed of Sale Deed dated 08^th November, 2023 for the sale of part of the land bearing new survey no. 78/2 & 78/3 out of survey no. 78/1 to 78/5 (old survey no.16/1) at Village Sayli (larger land parcel) which was shown under the head “Assets held for Sale” as on 01^st April, 2023 to R R Kabel Ltd., a company in which two of the directors of the Company are directors and/or members after obtaining the order from Survey and Settlement officer, Silvassa and Deputy Collector (Silvassa) Dadra and Nagar Haveli for the sub-division of land larger land parcel and upon completion of other requirements including NOC from the lenders. The Sale Deed is not executed in respect of part of land out of larger land parcel bearing new Survey No. 78/1 admeasuring approx 14,005 sq. meters pending the survey

and sub-division order from the Survey and Settlement Officer, Silvassa and Deputy Collector (Silvassa) Dadra and Nagar Haveli in respect of which the Company had also executed an Agreement for Sale dated 07^th March, 2023. Pending the execution of Sale Deeds, an advance of '' 138.30 Lakhs (P.Y. '' 138.30 Lakhs) received by the Company from R R Kabel Ltd. is reported under ‘Other liabilities’ as on 31^st March, 2024 (Note 20).

3.1 The Company has issued Corporate Guarantee to HDFC Bank Ltd. (‘the Bank”) floating with personal guarantee of a director of company and his relatives for the working capital facility of '' 2,500/- Lakhs (P.Y. '' 2,500/- Lakhs) availed by Epavo Electricals Pvt. Ltd. (Epavo) duly secured by hypothication of current assets (Both present and future) of Epavo, under Deed of Guarantee dated 24^th March, 2023. The said Corporate Guarantee will be released upon creation of requisite security by Epavo (Note 35).

3.2 Guarantees are issued by the Company in accordance with Section 186 of the Companies Act, 2013 read with rules issued thereunder. Details of guarantees issued and outstanding - (Note 30.2 & 30.3).

3.3 The Company has complied with the provision of section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of Layer) Rules, 2017.

3.4 The Company had entered into a Scheme of arrangement in terms of sections 230 to 232 of the Companies Act, 2013, for amalgamation of a subsidiary company as detailed out in Note 50.

3.5 The Company has sold 13,64,480 equity shares of '' 5/- each of R R Kabel Limited (RRKL) under the Offer for Sale in the Initial Public Offering of RRKL @ 1,035/- per equity share. The net gain (net of expenses and tax) has been transferred to retained earnings including previously recognised unrealised gain (net of taxes) as reported under ‘Other Equity - Equity instruments through OCI’.

3.6 Investments are held in the name of the Company and/or its nominees. The company has not pledged its investments to raised loans.

3.7 Information on financial information, Company’s ownership interest and other information’s of subsidiaries and joint venture - Note 39 of the Consolidated Financial Statements.

4.1.3 Details of investments made and outstanding are given in Note 3 and Note 41.

4.2 Loans or advances to Promoters, Directors & KMPs : NIL (P.Y. NIL).

4.3 Loans given to the subsidiaries are out of accumulated profit and profit for the year and not from the borrowed fund.

4.4 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, directly or indirectly, lend or invest in other person or entities identified by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security of the like to or on behalf of the Ultimate Beneficiaries.”

4.5 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding, whether recorded in writing or otherwise, that the Company shall whether, directly or indirectly, lend or invest in other persons or entities identified by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

9.3 Trade Receivables are generally non-interest bearing with credit period of 60 days to 90 days.

9.4 The Company has arranged channel financing facility for its customers from banks and a financial Institution against which a sum of '' 4,678.15 Lakhs (P.Y. '' 5,420.88 Lakhs) has been received (net of advances) as on the date of balance sheet and correspondingly the trade receivables stand reduced by the said amount. Also refer Note 30.2.

9.5 Trade Receivables have been pledged as a security against secured borrowing from the banks, the terms thereof disclosed in Note 13.3 & 13.4.

9.6 The Company’s exposure to credit risk, currency risk and market risk related to trade receivables are disclosed in Note 40(C).

9.7 Accounting policies on financial instruments - Note 1(C)(viii).

11.4 Terms/ rights attached to Equity Shares :

The Company has only one class of shares referred to as equity shares having face value of '' 5/- per share. Each holder of equity shares is entitled to one vote per share. The Dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuring Annual General Meeting, except in case of interim dividend. As per the Companies Act, 2013 the holders of equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts in the event of the liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

11.5 Details of buy back of shares or issue of shares pursuant to contract without payment being received in cash or bonus equity shares issued during the previous 5 years immediately preceding the reporting date :

12.1 Security Premium

Security premium is used to record the premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

12.2 General Reserve

General Reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purposes. General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. Under the Companies Act, 2013 there is no mandatory requirement for transfer of a specific percentage of net profit to general reserve which was required under the erstwhile Companies Act, 1956.

12.3 Share based payment reserve outstanding

Share based payment reserve outstanding represents recognition of fair value of equity-settled share based option plan. Fair value of equity- settled share based payment transactions with employees is recognized in the Statement of Profit and Loss with corresponding credit to share based payment reserve. The share based payment reserve is used to recognise the value of equity- settled share- based payments provided to employees, including key management personnel, as part of their remuneration (Note 51).

12.4 Equity Instruments through Other Comprehensive Income (OCI)

This represents the cumulative gains/(losses) arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, it will be reclassified to retained earnings when such assets are disposed off.

13.3 (i) The Term loan I is secured by :

a) First pari passu charge on immovable assets of the Company located at Survey No. 212/2 and Survey No 316 at Dadra, Silvassa, New Survey No. 78/1, 78/2 & 78/3 (Part of larger land parcel old survey no. 16/1) at Village Sayli, Silvassa and Survey No. 205, 206, 207/1,207/2, 193/1, 193/2 and 327/2/P2 at Waghodia, Dist. Vadodara.

Notes to Standalone Financial Statements for the year ended 31^st March, 2024. (contd.)

b) First pari passu charge on both present and future movable assets (except vehicles) of the Company.

c) Second pari passu charge on entire current assets of the Company both present and future.

d) Personal guarantee of Chairman and Managing Director of the Company and their relative.

(ii) The Term loan II & III are secured by :

a) Primary Guarantee of National Credit Guarantee Trustee Limited and approved under ECLGS scheme.

b) Second pari passu charge on immovable assets of the Company located at Survey No. 212/2 and Survey No

316 at Dadra, Silvassa, New Survey No. 78/1, 78/2 & 78/3 (Part of larger land parcel old survey no. 16/1) at Village Sayli, Silvassa and Survey No. 205, 206, 207/1,207/2, 193/1, 193/2 and 327/2/P2 at Waghodia, Dist. Vadodara.

c) Second pari passu charge on both present and future movable assets (except vehicles) of the Company.

d) Second pari passu charge on entire current assets of the Company both present and future.

13.4 (i) The working capital loans of '' 3,108.02/- Lakhs (P. Y '' 11,782.33/- Lakhs) is secured by :

a) First pari passu charge on entire current assets of the Company both present and future.

b) Second pari passu charge on immovable assets of the Company located at Survey No. 212/2 and Survey No 316 at Dadra, Silvassa, New Survey No. 78/1, 78/2 & 78/3 (Part of larger land parcel old survey no. 16/1) at Village Sayli, Silvassa and Survey No. 205, 206, 207/1,207/2, 193/1, 193/2 and 327/2/P2 at Waghodia, Dist. Vadodara and both present and future movable assets (except vehicles) of the Company.

c) Personal guarantee of Chairman and Managing Director of the Company and their relative.

(ii) The fixed deposit of '' 2,000.00/- Lakhs (P.Y. NIL) has been provided as margin money for overdraft working capital loans.

13.5 Personal guarantee has been given by the Chairman and Managing Director of the Company and their relative for unsecured working capital loans from banks. (Note 35).

13.6 Vehicle loans are secured by way of hypothecation of specific vehicle.

13.7 Other Unsecured Loans carry interest rates from 9% to 10% with different tenures.

13.8 Charges in respect of secured borrowings have been created in favour of IDBI Security Trusteeship Company and no separate charge has been created for each of the secured borrowings with each lender.

13.9 All the charges created or modified or satisfied were registered with the Registrar of Company within the statutory period from the date of creation of security.

13.10 Loans availed during the year have been applied for the purpose for which they have availed. The Company has not taken any loan from any entity or person on account of or to meet the obligation of its subsidiaries and joint venture.

13.11 Quarterly Returns/ stock statements of the current assets filed by the Company with its bankers are in agreement with the books of accounts.

13.12 Fund raised on short term basis have not been utilised for long term purpose.

13.13 Default in terms of repayment of Principal and Interest - NIL (P.Y. NIL).

13.14 The Company has not been declared as Wilful Defaulter by bank or financial institution or other lender or government authority.

17.1 Details of transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the income Tax Act, 1961 (such as search or survey or any other relevant provisions of the Income Tax Act, 1961) : NIL (P.Y. NIL) (Note 30.4).”

17.2 The Company does not have any unrecorded income and assets related to previous years which are required to be recorded during the year.

18.1 Grants relating to property, plant and equipment relate to duty saved on import of capital goods and spares under the EPCG scheme. Under such scheme, the Company is committed to export prescribed times of the duty saved on import of capital goods over a specified period of time. In case such commitments are not met, the Company would be required to pay the duty saved along with interest to the regulatory authorities. Such grants are recognised in the statement of profit and loss based on fulfilment of related export obligations.

19.1 Includes Amount of '' 17,815.98 Lakhs (P.Y.'' 14,920.43 Lakhs) paid to suppliers through usance letter of credit issued by the bank under non-fund based working capital limits to the Company. The Company continue to recognise those liabilities till the settlement with the banks which are normally effected within a period of 60 days.

('' in Lakhs)
Note 30: CONTINGENT LIABILITIES AND COMMITMENTS	As at 31.03.2024	As at 31.03.2023
A. Contingent Liabilities :
(i) Claims against the Company not acknowledged as debts (Note 30.1)
Central Excise Act & Service Tax Demands	648.85	674.22
Value Added Tax	350.29	350.29
Goods And Service Tax	-	21.51
Gujrat Stamp Act, 1958	22.42	22.42
Income Tax	49.05	4.67
(ii) Corporate Guarantee :
Channel Financing (Note 30.2)	2,778.79	2,679.21
Guarantee in respect of borrowing by a subsidiary (Note 30.3)(outstanding '' 528.10/- Lakhs (P.Y. NIL))	2,500.00	2,500.00
B. Commitments :
(i) Estimated amount of contracts remaining to be executed and not provided for
- On Capital Account (Net of advance)	5,797.25	2,156.27
(ii) Estimated amount of Investment	-	-
(iii) Letter of credit and bank guarantees issued by the banks	18,601.46	15,520.13
(iv) For Lease commitments (Note 46)	-	-
(v) For Derivative contracts (Note 36)	-	-

30.1 The Company is contesting the demands and the management believes that the Company’s position will likely to be upheld in the appellate process and accordingly, no provision has been made in the financial statements for the tax demands raised. The management believes that the ultimate outcome of these proceedings will not have material adverse effect on the Company’s financial position and results of operations.

30.2 The amount of Company’s Channel Financing facility utilised as on the date of balance sheet includes '' 2,778.79 Lakhs (P.Y. '' 2,679.21 Lakhs) with recourse.

30.3 The Company has issued Corporate Guarantee to HDFC Bank Ltd. (‘the Bank”) floating with personal guarantee of a director of company and his relatives for the working capital facility of '' 2,500/- Lakhs (P.Y. '' 2,500/- Lakhs) availed by Epavo Electricals Pvt. Ltd. (Epavo) duly secured by hypothecation of current assets (Both present and future) of Epavo, under Deed of Guarantee dated 24^th March, 2023. The said Corporate Guarantee will be released upon creation of requisite security by Epavo (Note 35).

30.4 The Income Tax Department (‘’the IT Department’’) had conducted a search and seizure action under section 132 of the Income Tax Act (“the Search”) on the Company, and related enities and their few employees in November, 2023. The Group at the time of the Search and subsequently has co-operated with the IT Department and responded to the clarifications, data and details sought by the IT Department. No assets of the Company were seized by the IT Department as part of the Search. The Company has not received any written communication from the IT Department regarding the outcome of the Search as of date. The Company after considering all available records, facts known to it and legal advice as of date, has not identified any adjustments to the current or prior period financial results at this stage. Pending outcome of the proceedings in this matter, the Company will re-evaluate the adjustments to the financial satement if needed at a future date as appropriate.

Proposed Dividend :

The Board of Directors at its meeting held on 14^th May, 2024 have recommended a payment of final dividend of '' 2.50/- per equity share of face value of '' 5.00/- each for the financial year ended 31^st March, 2024 (P.Y. '' 2.50/- per equity share), aggregate to '' 1,100/- Lakhs. The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability.

Explanation for variance in the ratios by more than 25%

(i) The total comprehensive income for the year has been increased by more than 50% mainly due to sale of equity shares held under fair value through OCI and thereby corresponding change in the shareholders’ fund and the reduction in the debt of the Company .

Note 38: EMPLOYEE BENEFITS

A) Defined Benefit Plan- Gratuity (Funded)

The employees’ Gratuity Fund Scheme, is a defined benefit plan. The scheme is maintained and administered by Life Insurance Corporation of India (LIC) to which the Company makes periodical contributions. Under the scheme, every employee who has completed at least five years of service usually gets gratuity on departure @ 15 days of last drawn salary for each completed year of service. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.

1 The average duration of the defined benefit plan obligation at the end of the reporting period is 8.42 years (P.Y. 8.53 years).

2 The Company expects to contribute '' 40.00 Lakhs (P.Y. '' 40.00 Lakhs) to the plan during the next financial year.

3 The estimates of rate of escalation in salaries considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

4 Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

5 The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis the present value of defined benefit obligation has been calculated using the projected unit credit method.

B) Defined Contribution Plan - Provident Fund

The Company makes its contribution alongwith the share of employees’ contribution deducted from salary on monthly basis to Employees’ Provident Fund administered by the Central Government. The Company’s Contribution is charged to Statement of Profit & Loss. The Company has no obligation for any further contribution in case of any shortfall. The details of contribution are as under:-

The carrying amounts of financial assets (other than security deposits and loan to employees) and financial liabilities (other than long term borrowings, lease liabilities & security deposits) measured at amortised cost in the financial statements are reasonable approximation of their fair values since the Company does not anticipate that the carrying amount would be significantly different from the value that would eventually be received or settled.

Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

There have been no transfers between Level 1 and Level 2 for the years ended 31^st March, 2024 and 31^st March, 2023.

C) Financial Risk Management- Objectives and Policies

The Company is exposed to: (a) Market Risks comprising of Interest Rate Risk, Currency Rate Risk, Commodity Price Risk and Equity Price Risk (b) Liquidity Risk and (c) Credit Risk comprising of trade receivable risk and financial instrument risk. The Company has well placed Risk Management Policy (RMP). The policy provide broad guidelines to identify the risk arising from these factors and provide guidelines to the team for its mitigation or at-least minimize its effect on income / expense on the Company is optimized. Team involved in RMP meets frequently to discuss the level of risk they foresee based on the conditions persisting.

The Company’s exposure to Market Risk, Credit Risk and Liquidity Risk have been summarized below:

i) Market Risk

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on short-term and long-term floating rate interest bearing liabilities. The Company’s policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion of fixed and floating rate debt is determined by prevailing interest rates. These exposures are reviewed by the management on a periodic basis.

(Calculated based on risk exposure outstanding as of date and assuming that all other variables, in particular foreign currency rates, remain constant).

ii) Foreign Currency Risk

The Company is exposed to fluctuations in foreign currency exchange rates where transaction references more than one currency and/or where assets/liabilities are denominated in a currency other than the functional currency of the Company.

Exposures on foreign currency are managed through a hedging policy, which is reviewed periodically by the management. The Company usually enters into forward exchange contracts progressively based on their maturity to hedge the effects of movements in foreign currency exchange rates individually on assets and liabilities. The sources of foreign exchange risk for the Company are trade receivables, trade payables for imported materials & capital goods as well as foreign currency denominated borrowings. The policy of the Company is to determine on a regular basis what portion of the foreign exchange risk are to be hedged through forward exchange contracts.

iii) Commodity Price Risk

The Company is exposed to the movement of copper and aluminium prices on the London Metal Exchange (LME). Any increase or decline in the prices of these commodities will have an impact on the profitability of the Company. As a general policy, the Company aims to purchase these commodities at prevailing market prices and also sell the products at price adjusted for prevailing market prices. The Company substantially ensures sale of products with simultaneous purchase of these commodities on back-to back basis ensuring no or minimum price risk for the Company.

iv) Equity Price Risk

Equity price risk relates to change in fair value of investments in the equity instruments measured at fair value through OCI. As at 31^st March, 2024 the carrying value of such equity instruments recognised at fair value through OCI amounts to '' NIL (P.Y. '' 6,890.62 Lakhs).

v) Liquidity Risk

Liquidity risk refers to the risk that the Company encounter difficulty in raising fund to meet its financial commitments. The objective of liquidity risk management is to maintain the liquidity and to ensure that funds are available for short operational needs and to fund Company’s expansion projects. The Company has availed credit facility from the banks & financial institutions to meet its financial commitment in timely and cost effective manner.

vi) Credit Risk

Credit risk refers to the risk that counter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk for trade receivables and financial guarantees for dealers, derivative financial instruments and other financial assets.

The Company assess the counter party before entering into transactions and wherever necessary supplies are made against advance payment. The Company on continuous basis monitor the credit limit of the counter parties to mitigate or minimise the credit risk. The credit risk for the financial guarantees issued by the Company to bank for credit facilities availed by Company’s dealers from bank is minimum as those parties have long vintage with the Company and they are also subject to credit risk assessment by bank on periodical basis. The credit risk on export receivables are limited as almost all export sales are made to parties having a long vintage with the Company and new parties are subject to necessary due diligence.

Trade receivables are non-interest bearing with credit terms generally 60 days to 90 days. Contract liabilities are towards advance received from customers for goods to be delivered.

The Company has recognised revenue amounting to '' 413.80 lakhs in the current year that was included in the Contract Liability balance in the previous year i.e. as at 31^st March, 2023.

Performance obligation is satisfied at a point in time which normally occurs on delivery of the goods as per the terms of contract in case of domestic sales and in case of export on the basis of shipping terms and with payment terms generally 30 days to 90 days or against advance payment. There is negligible obligation towards sales return.

Note 44: SEGMENT INFORMATION

a) Operating segment is a component of an entity whose operating results are regularly reviewed by the Chief Operating Decision Maker (CODM) of the Company to make decision about resource to be allocated to the segment and assess it performance. Accordingly, the Company operates only one segment i.e. Enamalled Wires and strips and there is no separate reportable segment.

c) All non current assets of the Company are located in India.

d) There is no transaction with single external customer which amounts to 10% or more of the Company’s revenue.

Note 45: DETAILS OF LOANS, INVESTMENTS MADE & GUARANTEE GIVEN COVERED U/S 186(4) OF THE COMPANIES ACT, 2013

a) Details of Investments made - Note 3A & 3B.

b) Details of Loans given are - Note 4A & 4B.

c) (i) Financial guarantee has been given by the Company in respect of credit facility availed by the Company’s dealers

under channel financing arrangements (Note 30.2).

(ii) Financial guarantee has been given by the Company in respect of credit facility availed by the joint venture & subsidiary company (Note 30.3).

Note 46: DISCLOSURE AS PER REQUIREMENT OF IND AS 116 - LEASES:-

a) Lease Contracts entered into by the Company are mainly in respect for office premises taken on the lease in the ordinary course of business. Lease Contracts are for the period of 3-5 years.

b) Lease Contract entered into by the Company for leasehold land at Bhiwadi, Dist. Alwar, Rajasthan for a new manufacturing facility. Lease Contract entered into is for the period of 99 years and the lease payment is to be made over the period of 2-3 years.

Note 50: The scheme of merger of Global Copper Private Limited (GCPL), a subsidiary company with the Company by way of a scheme of amalgamation (merger by absorption) (“the Proposed Scheme”) under sections 230 to 232 of the Companies Act, 2013 and other applicable laws, including applicable rules and regulations, as approved by the Board of Directors was subject to approval of the Securities and Exchange Board of India (‘SEBI’), the Hon’ble National Company Law Tribunal, BSE Limited (‘BSE’) and the National Stock Exchange of India Limited (‘NSE’) (collectively ‘the Regulatory Authorities”). BSE vide its email dated 05^th February, 2024 after considering the clarifications as provided by the Company from time to time to the Regulatory Authorities including revised scheme, based on SEBI recommendation has suggested to make a fresh application considering the time gap from the date of original application. The Company will take necessary steps for filling of fresh application for the said Proposed Scheme with changes as suggested by SEBI.

Note 51: EMPLOYEE STOCK OPTION PLAN (ESOP)

RRWL ESOP 2023 (“the Plan”)

Pursuant to the approval by the shareholders in the AGM held on 12^th September, 2023, the Board or any committee as may be authroised by the Board, was authorised to create and grant from time to time, in one or more tranches, not exceeding 4,40,000 employee stock options for the benefit of such person(s) who are in the employment of the Company and its Subsidiaries within the meaning of the Plan and eligible to receive such options under the applicable regulations, as may be decided under the Plan, exercisable into not more than 4,40,000 equity shares of face value of '' 5/- each fully paid-up, where one employee stock option would convert into one fully paid-up equity share of face value of '' 5/- each upon exercise, on such terms and in such manner as the Board / Committee may decide in accordance with the provisions of the applicable laws and the provisions of RRWL ESOP 2023 plan. The said ESOP plan is effective from 07^th November, 2023 with vested options to be exercised within maximum period of 7 years from the date of grant unless extended by the Administrator (the nomination and remuneration committee).

30% of the Options granted to a Participating Employee will be subject to time-based conditions (“Time Based Options”) and the balance 70% of the Options granted to a Participating Employee will be subject to performance-based conditions (“Performance Based Options”) with 1/5^th of the total number of options granted to each participating employees will be vested each year under both Time-Based Options and Performance-Based options and to be exercise . There shall be a minimum period of one year between the grant of Options and the vesting of such Options. Performance Based Options shall vest based on the achievement of defined annual performance parameters as determined by the Administrator.

(A) The Company has granted employee stock options during the year ended 31^st March, 2024 to eligible employees of the Company and Subsidiaries under RRWL ESOP 2023 plan.

Note 52: Previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

---

Mar 31, 2023

2.1 The details of Property, Plant & Equipment hypothecated against borrowings are presented in Note 13.3 to 13.8.

2.2 The amount of contractual commitments for the acquisition of Property, Plant & Equipment is disclosed in Note 30B (i).

2.3 The amount of Foreign Exchange Difference & Interest capitalised : NIL (P.Y. NIL).

2.4 All Property, Plant & Equipment are held in the name of the Company. The Title deeds of all immovable properties are in the name of Company.

2.5 All lease agreements are duly executed in favour of the Company.

2.6 Capital-work-in progress ageing schedule :

2.7 Capital Work-in-Progress, whose completion is overdue or has exceeded its cost compare to its original plan : NIL (P.Y. NIL).

2.8 Capital Work-in-Progress, project temporarily suspended : NIL (P.Y. NIL).

2.9 No Proceeding against the Company has 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.

2.10 Revaluation of Property Plant & Equipment, Rights to Use Assets and Intangible Assets : NIL (P.Y. NIL).

2.11 Land classifed as held for sale are the assets available for sale in its present condition and management is intending to conclude the sale within a period of 12 months of the Balance Sheet date and measured at the lower of its carrying value or fair value less cost of sale.

2.12 In terms of resolution passed by the Board of Directors of the Company in their meeting held on 14^th November, 2022 the Company has executed two Agreements for Sale both dated 7^th March, 2023 for sale of part of the land bearing survey no. 16/1 at Village Sayli (larger land parcel) shown under the head “Assets held for Sale” to R R Kabel Ltd. in which two of the directors of the Company are directors and/or members. Necessary Sale Deeds will be executed after obtaining the order from Survey and Settlement Officer for sub-division of land, NOC from the security trusteeship company and other lenders under the consortium with whom the larger land parcel is mortgaged (Note 13.3 & 13.4) and upon satisfaction of other terms and condition in terms of said Agreements for Sale. Pending the execution of Sale Deeds, the Company has received an advance of '' 339.29 Lakhs as on 31^st March, 2023 (Note 20).

3.1 The Company has issued Corporate Guarantee to HDFC Bank Ltd. (‘the Bank”) for the working capital facility of '' 2,500/- Lakhs (P.Y. NIL) availed by Epavo Electricals Pvt. Ltd. (Epavo), a Joint Venture & Subsidiary of the Company under Deed of Guarantee dated 24^th March, 2023. The initial amount based on availibility of drawing power under said working capital facility has been disbursed to Epavo by the Bank in April, 2023. The said Corporate Guarantee will be released upon creation of requisite security by Epavo (Note 35.1).

3.2 Guarantees are issued by the Company in accordance with Section 186 of the Companies Act, 2013 read with rules issued thereunder. Details of guarantees issued and outstanding (Note 30.2 & 30.3).

3.3 The Company has complied with the provision of section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of Layer) Rules, 2017.

3.4 The Company has entered into the Scheme of arrangement in terms of sections 230 to 232 of the Companies Act, 2013 (Note 50).

3.5 Fair value of Equity Investment is based on the valuation report of a registered valuer as defined under Rule 2 of the Companies (Registered Valuers & Valuation) Rules, 2017.

3.6 The Company has been allotted in March 2023, 6,82,240 fully paid-up equity shares of '' 5/- each upon sub-division of 3,41,120 fully paid-up equity shares of '' 10/ each held by the Company in R R Kabel Ltd. Further, the Company has been allotted in March, 2023 6,82,240 fully paid up equity shares of '' 5/- each in R R Kabel Ltd. as bonus shares.

3.7 The Board of Directors of the Company at its meeting held on 12^th April, 2023 have approved the proposal for sale upto 13,64,480 equity shares held in R R Kabel Ltd. by offering for sale for cash by participating in the proposed initial public offering (IPO) of R R Kabel Ltd., subject to the processes, compliances and conditions under the applicable laws, at such price per equity share as may be fixed and determined during the IPO process.

3.8 Investments are held in the name of the Company and/or its nominees. The company has not pledged its investments to raised loans.

3.9 Information on financial information, Company’s ownership interest and other information’s of subsidiaries and joint venture - Note 39 of the Consolidated Financial Statements.

4.1.3 Details of investments made and outstanding are given in Note 3 and Note 41.

4.2 Loans or advances to Promoters, Directors & KMPs : NIL (P.Y. NIL).

4.3 Loans given to Joint Venture & Subsidiary are out of accumulated profit and profit for the year and not from the borrowed fund.

4.4 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, directly or indirectly, lend or invest in other person or entities identified by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security of the like to or on behalf of the Ultimate Beneficiaries.

4.5 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding, whether recorded in writing or otherwise, that the Company shall whether, directly or indirectly, lend or invest in other persons or entities identified by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

8.1 The above includes inventories held by third parties amounting to '' 18.10 Lakhs (P.Y. NIL).

8.2 The cost of inventories recognised as an expense during the year is disclosed in Note 24 and 25.

8.3 The cost of inventories written down during the year : NIL (P.Y. NIL).

8.4 The inventories are hypothecated as the security as disclosed in Note 13.3 & 13.4.

9.3 Trade Receivables are generally non-interest bearing with credit period of 60 days to 90 days.

9.4 The Company has arranged channel financing facility for its customers from banks and a financial Institution against which a sum of '' 5,420.88 Lakhs (P.Y. '' 5,052.26 Lakhs) has been received (net of advances) as on the date of balance sheet and correspondingly the trade receivables stand reduced by the said amount. Also refer Note 30.2.

9.5 Trade Receivables have been pledged as a security against secured borrowing from the banks, the terms thereof disclosed in Note 13.3 & 13.4.

9.6 The Company’s exposure to credit risk, currency risk and market risk related to trade receivables are disclosed in Note 40(C).

9.7 Accounting policies on financial instruments - Note 1(C)(viii).

9.8 Unbilled Trade Receivables NIL (P.Y. NIL), hence the same is not disclosed in the ageing schedule below.

11.4 Terms/ rights attached to Equity Shares :

The Company has only one class of shares referred to as equity shares having face value of '' 5/- per share. Each holder of equity shares is entitled to one vote per share. The Dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuring Annual General Meeting, except in case of interim dividend.

As per the Companies Act, 2013 the holders of equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts in the event of the liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

11.5 There were no buy back of shares or issue of shares pursuant to contract without payment being received in cash during the previous 5 years immediately preceding the reporting date.

11.6 Pursuant to resolution passed by the Board of the Directors of the Company on 10^th August, 2022 and a resolution approved by the Shareholders of the Company in the Annual General Meeting held on 21^st September, 2022 the Company has issued bonus equity shares in the ratio of 1: 1 i.e. one fully paid bonus equity share for every one equity share owned by the shareholders on the record date. The Board of Directors of the Company has allotted 2,20,00,000 fully paid up equity shares of '' 5/- each as bonus equity shares on 1^st October, 2022.The revised paid up Equity Share Capital post issue of the bonus equity shares is '' 2,200.00 Lakhs. Bonus equity shares were issued by way of capitalisation of '' 763.20 lakhs and '' 336.80 Lakhs standing to the credit of Security Premium Account and General Reserve Account respectively.

11.7 The Board of Directors of the Company have proposed a dividend of '' 2.50/- per equity share of face value of '' 5/- each for the year ending 31^st March, 2023 (P.Y. '' 5/- per equity share) subject to approval of members at the forthcoming Annual General Meeting.

12.1 Security Premium

Security premium is used to record the premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

12.2 General Reserve

General Reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purposes. General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. Under the Companies Act, 2013 there is no mandatory requirement for transfer of a specific percentage of net profit to general reserve which was required under the erstwhile Companies Act, 1956.

12.3 Equity Instruments through Other Comprehensive Income (OCI)

This represents the cumulative gains/(losses) arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, it will be reclassified to retained earnings when such assets are disposed off.

13.3 (i) The Term loan I is secured by :

a) First pari passu charge on immovable assets of the Company located at Survey No. 212/2 and Survey No 316 at Dadra, Silvassa, Survey No. 16/1 at Village Sayli, Silvassa and Survey No. 205, 206, 207/1, 207/2, 193/1, 193/2 and 327/2/P2 at Waghodia, Dist. Vadodara.

b) First pari passu charge on both present and future movable assets (except vehicles) of the Company.

c) Second pari passu charge on entire current assets of the Company both present and future.

d) Personal guarantee of Chairman and Managing Director of the Company and their relative.

(ii) The Term loan II & III are secured by :

a) Primary Guarantee of National Credit Guarantee Trustee Limited and approved under ECLGS scheme.

b) Second pari passu charge on immovable assets of the Company located at Survey No. 212/2 and Survey No

316 at Dadra, Silvassa, Survey No. 16/1 at Village Sayli, Silvassa and Survey No. 205, 206, 207/1,207/2, 193/1, 193/2 and 327/2/P2 at Waghodia, Dist. Vadodara.

c) Second pari passu charge on both present and future movable assets (except vehicles) of the Company.

d) Second pari passu charge on entire current assets of the Company both present and future.

13.4 The working capital loans are secured by :

a) First pari passu charge on entire current assets of the Company both present and future.

b) Second pari passu charge on immovable assets of the Company located at Survey No. 212/2 and Survey No 316 at Dadra, Silvassa, Survey No. 16/1 at Village Sayli, Silvassa and Survey No. 205, 206, 207/1,207/2, 193/1, 193/2 and 327/2/P2 at Waghodia, Dist. Vadodara and both present and future movable assets (except vehicles) of the Company.

c) Personal guarantee of Chairman and Managing Director of the Company and their relative.

13.5 Personal guarantee has been given by the Chairman and Managing Director of the Company and their relative for unsecured working capital loans from banks. (Note 35).

13.6 Vehicle loans are secured by way of hypothecation of specific vehicle.

13.7 Other Unsecured Loans carry interest rates from 9% to 10% with different tenures.

13.8 Charges in respect of secured borrowings have been created in favour of IDBI Security Trusteeship Company and no separate charge has been created for each of the secured borrowings with each lender.

13.9 All the charges created or satisfied were registered with the Registrar of Company within the statutory period from the date of creation of security.

13.10 Loans availed during the year have been applied for the purpose for which they have availed. The Company has not taken any loan from any entity or person on account of or to meet the obligation of its subsidiaries and joint venture.

13.11 Quarterly Returns / stock statements of the current assets filed by the Company with its bankers are in agreement with the books of accounts.

13.12 Fund raised on short term basis have not been utilised for long term purpose.

13.13 Default in terms of repayment of Principal and Interest - NIL (P.Y. NIL).

13.14 The Company has not been declared as Wilful Defaulter by bank or financial institution or other lender or government authority.

17.1 Details of transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the income Tax Act, 1961 (such as search or survey or any other relevant provisions of the Income Tax Act, 1961) : NIL (P.Y. NIL).

17.2 The Company does not have any unrecorded income and assets related to previous years which are required to be recorded during the year.

18.1 Grants relating to property, plant and equipment relate to duty saved on import of capital goods and spares under the EPCG scheme. Under such scheme, the Company is committed to export prescribed times of the duty saved on import of capital goods over a specified period of time. In case such commitments are not met, the Company would be required to pay the duty saved along with interest to the regulatory authorities. Such grants are recognised in the statement of profit and loss based on fulfilment of related export obligations.

19.1 Includes Amount of '' 14,920.43 Lakhs (P.Y. '' 8,228.94 Lakhs) paid to suppliers through usance letter of credit issued by the bank under non-fund based working capital limits to the Company. The Company continue to recognise those liabilities till the settlement with the banks which are normally effected within a period of 60 days.

19.3 Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) (Note 32).

19.4 Trade payables includes payable to related parties '' 282.40 Lakhs (P.Y. '' 8.44 Lakhs).

('' in Lakhs)
Note 30: CONTINGENT LIABILITIES AND COMMITMENTS	As at 31.03.2023	As at 31.03.2022
A. Contingent Liabilities :
(i) Claims against the Company not acknowledged as debts (Note 30.1)
Central Excise Act & Service Tax Demands	674.22	763.03
Value Added Tax	350.29	350.29
Goods And Service Tax	21.51	25.35
Gujrat Stamp Act, 1958	22.42	22.42
Income Tax	4.67	-
(ii) Corporate Guarantee :
Channel Financing (Note 30.2)	2,679.21	4,072.88
Guarantee in respect of Joint Venture & Subsidiary (Note 30.3)	2,500.00	-

('' in Lakhs)
B. Commitments :
(i) Estimated amount of contracts remaining to be executed and not provided for
- On Capital Account (Net of advance)	2,156.27	132.13
(ii) Estimated amount of Investment	-	-
(iii) Letter of credit and bank guarantees issued by the banks	15,520.13	8,828.64
(iv) For Lease commitments (Note 46(a))	-	-
(v) For Derivative contracts (Note 36)	-	-

30.1 The Company is contesting the demands and the management believes that the Company’s position will likely to be upheld in the appellate process and accordingly, no provision has been made in the financial statements for the tax demands raised. The management believes that the ultimate outcome of these proceedings will not have material adverse effect on the Company’s financial position and results of operations.

30.2 The amount of Company’s Channel Financing facility utilised as on the date of balance sheet includes '' 2,679.21 Lakhs (P.Y. '' 4,072.88 Lakhs) with recourse.

30.3 The Company has issued Corporate Guarantee to HDFC Bank Ltd. (‘the Bank”) for the working capital facility of '' 2,500.00/- Lakhs (P.Y. NIL) availed by Epavo Electricals Pvt. Ltd. (Epavo), a Joint Venture & Subsidiary of the Company under Deed of Guarantee dated 24^th March, 2023. The initial amount based on availibility of drawing power under said working capital facility has been disbursed to Epavo by the Bank in April, 2023. The said Corporate Guarantee will be released upon creation of requisite security by Epavo.

Proposed Dividend :

The Board of Directors at its meeting held on 26^th May, 2023 have recommended a payment of dividend of '' 2.50/- per equity share of face value of '' 5.00/- each for the financial year ended 31^st March, 2023. The same amounts to '' 1,100.00 Lakhs. The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability.

35.1 The Company has issued Corporate Guarantee to HDFC Bank Ltd. (‘the Bank”) for the working capital facility of '' 2,500.00/- Lakhs (P.Y. NIL) availed by Epavo Electricals Pvt. Ltd. (Epavo), a Joint Venture & Subsidiary of the Company under Deed of Guarantee dated 24^th March, 2023. The initial amount based on availibility of drawing power under said working capital facility has been disbursed to Epavo by the Bank in April, 2023. The said Corporate Guarantee will be released upon creation of requisite security by Epavo.

Note 36: EXPOSURE IN FOREIGN CURRENCY

The Company uses forward contracts to mitigate the risks associated with foreign currency fluctuations. The Company does not enter into any forward contracts which are intended for trading or speculative purposes.

Note 38: EMPLOYEE BENEFITS

A) Defined Benefit Plan- Gratuity (Funded)

The employees’ Gratuity Fund Scheme, is a defined benefit plan. The scheme is maintained and administered by Life Insurance Corporation of India (LIC) to which the Company makes periodical contributions. Under the said scheme, every employee who has completed at least five years of service usually gets gratuity on departure @ 15 days of last drawn salary for each completed year of service. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.

1 The average duration of the defined benefit plan obligation at the end of the reporting period is 8.53 years (P.Y. 8.84 years).

2 The Company expects to contribute '' 40 Lakhs (P.Y. '' 40 Lakhs) to the plan during the next financial year.

3 The estimates of rate of escalation in salaries considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

4 Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

5 The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis the present value of defined benefit obligation has been calculated using the projected unit credit method.

B) Defined Contribution Plan - Provident Fund

The Company makes its contribution alongwith the share of employees’ contribution deducted from salary on monthly basis to Employees’ Provident Fund administered by the Central Government. The Company’s Contribution is charged to Statement of Profit & Loss. The Company has no obligation for any further contribution in case of any shortfall. The details of contribution are as under

# Investment in unquoted equity shares are not held for trading. Upon the application of Ind AS 109 - Financial Instruments, the Company has chosen to measure said investment in equity instrument at FVTOCI irrevocably as the management believes that presenting fair value gains and losses relating to the said investment in the statement of profit and loss may not be indicative of the performance of the Company.

B) Fair Value Measurements

(i) All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows:

Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3 — inputs that are unobservable for the asset or liability

(ii) The following tables provide the fair value measurement hierarchy of the Company’s financial assets and liabilities:

The carrying amounts of financial assets (other than security deposits and loan to employees) and financial liabilities (other than long term borrowings, lease liabilities & security deposits) measured at amortised cost in the financial statements are reasonable approximation of their fair values since the Company does not anticipate that the carrying amount would be significantly different from the value that would eventually be received or settled.

Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

There have been no transfers between Level 1 and Level 2 for the years ended 31^st March, 2023 and 31^st March, 2022.

C) Financial Risk Management- Objectives and Policies

The Company is exposed to: (a) Market Risks comprising of Interest Rate Risk, Currency Rate Risk, Commodity Price Risk and Equity Price Risk (b) Liquidity Risk and (c) Credit Risk comprising of trade receivable risk and financial instrument risk. The Company has well placed Risk Management Policy (RMP). The policy provide broad guidelines to identify the risk arising from these factors and provide guidelines to the team for its mitigation or at-least minimize its effect on income / expense on the Company is optimized. Team involved in RMP meets frequently to discuss the level of risk they foresee

The Company’s exposure to Market Risk, Credit Risk and Liquidity Risk have been summarized below:

i) Market Risk

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on short-term and long-term floating rate interest bearing liabilities. The Company’s policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion of fixed and floating rate debt is determined by prevailing interest rates. These exposures are reviewed by the management on a periodic basis.

ii) Foreign Currency Risk

The Company is exposed to fluctuations in foreign currency exchange rates where transaction references more than one currency and/or where assets/liabilities are denominated in a currency other than the functional currency of the Company.

Exposures on foreign currency are managed through a hedging policy, which is reviewed periodically by the management. The Company usually enters into forward exchange contracts progressively based on their maturity to hedge the effects of movements in foreign currency exchange rates individually on assets and liabilities. The sources of foreign exchange risk for the Company are trade receivables, trade payables for imported materials & capital goods as well as foreign currency denominated borrowings. The policy of the Company is to determine on a regular basis what portion of the foreign exchange risk are to be hedged through forward exchange contracts.

iii) Commodity Price Risk

The Company is exposed to the movement of copper and aluminium prices on the London Metal Exchange (LME). Any increase or decline in the prices of these commodities will have an impact on the profitability of the Company. As a general policy, the Company aims to purchase these commodities at prevailing market prices and also sell the products at price adjusted for prevailing market prices. The Company substantially ensures sale of products with simultaneous purchase of these commodities on back-to back basis ensuring no or minimum price risk for the Company.

iv) Equity Price Risk

Equity price risk relates to change in fair value of investments in the equity instruments measured at fair value through OCI. As at 31^st March, 2023 the carrying value of such equity instruments recognised at fair value through OCI amounts to '' 6,890.62 Lakhs (P.Y. '' 5,949.13 Lakhs).

A sensitivity analysis demonstrating the impact of change in the carrying value of investment in equity instrument as at reporting date is given below :

v) Liquidity Risk

Liquidity risk refers to the risk that the Company encounter difficulty in raising fund to meet its financial commitments. The objective of liquidity risk management is to maintain the liquidity and to ensure that funds are available for short operational needs and to fund Company’s expansion projects. The Company has availed credit facility from the banks & financial institutions to meet its financial commitment in timely and cost effective manner.

The Company remains committed to maintaining a healthy liquidity and gearing ratio and strengthening the balance sheet. The maturity profile of the Company’s financial liabilities based on the remaining period from the date of balance sheet to the contractual maturity date is given in the table below.

vi) Credit Risk

Credit risk refers to the risk that counter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk for trade receivables and financial guarantees for dealers, derivative financial instruments and other financial assets.

The Company assess the counter party before entering into transactions and wherever necessary supplies are made against advance payment. The Company on continuous basis monitor the credit limit of the counter parties to mitigate or minimise the credit risk. The credit risk for the financial guarantees issued by the Company to bank for credit facilities availed by Company’s dealers from bank is minimum as those parties have long vintage with the Company and they are also subject to credit risk assessment by bank on periodical basis. The credit risk on export receivables are limited as almost all export sales are made to parties having a long vintage with the Company and new parties are subject to necessary due diligence.

For trade receivables, as a practical expedient, the Company computes credit loss allowance based on expected credit loss method. The movement in expected credit loss allowance on trade receivable is as under :

Trade receivables are non-interest bearing with credit terms generally 60 days to 90 days. Contract liabilities are towards advance received from customers for goods to be delivered.

The Company has recognised revenue amounting to '' 92.11 lakhs in the current year that was included in the Contract Liability balance in the previous year i.e. as at 31^st March, 2022.

Performance obligation is satisfied at a point in time which normally occurs on delivery of the goods as per the terms of contract in case of domestic sales and in case of export on the basis of shipping terms and with payment terms generally 30 days to 90 days or against advance payment. There is negligible obligation towards sales return.

c) All non current assets of the Company are located in India.

d) There is no transaction with single external customer which amounts to 10% or more of the Company’s revenue.

Note 45: DETAILS OF LOANS, INVESTMENTS MADE & GUARANTEE GIVEN COVERED U/S 186(4) OF THE COMPANIES ACT, 2013

a) Details of Investments made - Note 3A & 3B.

b) Details of Lons given are - Note 4A & 4B.

c) (i) Financial guarantee has been given by the Company in respect of credit facility availed by the Company’s dealers

under channel financing arrangements (Note 30.2).

(ii) Financial guarantee has been given by the Company in respect of credit facility availed by the Joint Venture & Subsidiary company (Note 30.3).

Note 46: DISCLOSURE AS PER REQUIREMENT OF IND AS 116 - LEASES:-

a) Lease Contracts entered into by the Company are mainly in respect for office premises taken on the lease in the ordinary course of business. Lease Contracts are for the period of 3- 5 years.

Below Struck off companies are equity shareholders of the company as on the Balance Sheet date

Name off Struck of the Company : Associated Suppliers and Assistance Co. Pvt. Ltd.

Note 49: Trade or investment in Crypto Currency or Virtual Currency : NIL (P.Y. NIL).

Note 50: The Board of Directors of the Company at their meeting held on 8^th February 2023, has approved the scheme of merger of Global Copper Pvt. Ltd. (GCPL), a subsidiary company with the Company by way of a scheme of amalgamation (merger by absorption) (“the Proposed Scheme”) under sections 230 to 232 of the Companies Act, 2013 and other applicable laws, including applicable rules and regulations based on the recommendation of the Audit Committee and the Committee of Independent Directors. In terms of the Proposed Scheme, the shareholders of GCPL will be entitled to 6 (Six) fully paid-up equity shares of '' 5/-each of the Company for every 1 (One) fully paid-up equity share of '' 10/- each of GCPL. As part of the scheme 6,46,134 equity shares held by the Company of GCPL shall stand cancelled. The Proposed scheme is subject to shareholders’ approval and approvals of other regulatory authorities.

Note 51: Previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

---

Mar 31, 2018

CORPORATE INFORMATION

Ram Ratna Wires Limited (“the Company”) is a public company limited by shares incorporated and domiciled in India with its registered office in Mumbai, Maharashtra. The Company is listed on the Bombay Stock Exchange (BSE).

The Company is a leading manufacturer of winding wires, mainly enamelled copper wires. The Company offers unique product range of all gauges of winding wires including super fine wires. The product portfolio of the Company includes enamelled copper strips, enamelled aluminium wires, submersible winding wires and paper cover round wires. The Company has manufacturing facilities at Silvassa and Dadra & Nagar Haveli (Union Territory).

The financial statements as at 31^st March, 2018 present the financial position of the Company. The financial statements were approved by the Board of Directors and authorised for issue on 29^th May, 2018.

The functional and presentation currency of the Company is Indian Rupees (Rs. ) which is the currency of the primary economic environment in which the Company operates.

1.1 The cost of inventories recognised as an expense during the year is disclosed in Note 23 and 24.

1.2 The cost of inventories written down during the year Rs. NIL (PY Rs. NIL)

1.3 The inventories are hypothecated as a security as disclosed in Note 13

2.1 The Company has arranged channel financing facility for its customers from bank against which a sum of Rs. 4,618.17 lakhs (PY 31.03.2017 Rs. 2,110.23 lakhs and PY 31.03.2016 Rs. 1,576.57 lakhs) has been utilised as on the date of balance sheet and correspondingly the trade receivable stand reduced by the said amount. Also refer Note 29.2.

3.1 Terms/ rights attached to Equity Shares

The Company has only one class of shares referred to as equity shares having face value of Rs. 5/- per share. Each holder of equity shares is entitled to one vote per share. The Dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuring Annual General Meeting, except in case of interim dividend.

As per the Companies Act, 2013 the holders of equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts in the event of the liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

3.2 The Board of Directors of the Company have proposed a dividend of Rs. 1.25/- per equity share of face value of Rs. 5/- each for the year ending 31^st March, 2018 (PY Rs. 1.25/- per equity share) subject to approval of members at the forthcoming Annual General Meeting.

4.1 Security Premium

Security premium is used to record the premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

4.2 General Reserve

General Reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. Under the Companies Act, 2013 there is no mandatory requirement for transfer of a specific percentage of net profit to general reserve which was required under the erstwhile Companies Act, 1956.

4.3 Equity Instruments through Other Comprehensive Income

This represents the cumulative gains/(losses) arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, it will be reclassified to retained earnings when such assets are disposed off.

4.4 The Term loans are secured by:

a) First Charge on the assets funded out of the term loans.

b) First pari passu charge on immovable assets of the Company located at Survey No. 212/2 and Survey no 316 at Dadra and Nagar Haveli, Survey No. 16/1 at Village Sayli, Silvassa and Survey No. 205, 206, 207/1, 207/2, 193/1, 193/2 and 327/2/P2 at Waghodia, Dist Vadodara (excluding immovable assets funded under said term loans).

c) First pari passu charge on both present and future movable assets (except vehicles of the Company and movable assets funded under the said term loans and have first charge).

d) Second pari passu charge on entire current assets of the Company both present and future.

e) Personal guarantees of Managing Director and Joint Managing Director of the Company and their relative.

4.5 The working capital loans are secured by:

a) First pari passu charge on entire current assets of the Company both present and future.

b) Second pari passu charge on immovable assets of the Company located at Survey No. 212/2 and Survey no 316 at Dadra and Nagar Haveli, Survey No. 16/1 at Village Sayli, Silvassa and Survey No. 205, 206, 207/1, 207/2, 193/1, 193/2 and 327/2/P2 at Waghodia, Dist Vadodara (except immovable assets funded under said term loans) and both present and future movable assets (except vehicles) of the Company.

c) Personal guarantees of Managing Director and Joint Managing Director of the Company and their relative.

4.6 Pending the further sanction and execution of necessary documents the charge is not created and filled with Ministry of Corporate Affairs in respect of secured loans as on date.

4.7 Personal guarantees have been given by the Managing Director and Joint Managing Director of the Company for unsecured working capital loans from banks and financial institution.

4.8 Vehicle loans are secured by way of hypothecation of specific vehicle.

4.9 Other Unsecured Loans carry interest rates from 10% to 11% with different tenures.

4.10 Default in terms of repayment of Principal and Interest - NIL

5.1 Grants relating to property, plant and equipment relate to duty saved on import of capital goods and spares under the EPCG scheme. Under such scheme, the Company is committed to export prescribed times of the duty saved on import of capital goods over a specified period of time. In case such commitments are not met, the Company would be required to pay the duty saved along with interest to the regulatory authorities. Such grants are recognised in the statement of profit and loss based on fulfillment of related export obligations.

*There is no amount due and outstanding to be transferred to the Investor Education & Protection Fund (IEPF) as at 31^st March, 2018. Unclaimed Dividends, shall be transferred to IEPF as and when they become due.

** Includes amount of Rs. 164.36 lakhs (PY 31.03.2017 Rs. 119.24 lakhs and PY 31.03.2016 Rs. 35.29 lakhs) payable to a Director on account of Commission on profit.

6.1 Goods and Service Tax (GST) has been introduced with effect from 1^st July, 2017 and Central Excise, Value Added Tax (VAT) etc. have been subsumed into GST In accordance with IND AS-18 on Revenue and Schedule III of the Companies Act, 2013, Excise duties are part of Revenue whereas levies like GST, VAT etc. are not part of Revenue. Revenue from Operations for the period upto 30^th June, 2017 include excise duty. The following table gives the information regarding Revenue from Operations excluding excise duty.

7.1 The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely to be upheld in the appellate process and accordingly no provision has been made in the financial statements for the tax demands raised. The management believes that the ultimate outcome of these proceedings will not have material adverse effect on the Company’s financial position and results of operations.

7.2 The Company has arranged Channel Finance facility for its customers from bank against which sum of Rs. 4,618.17 lakhs (PY 31.03.2017 Rs. 2,110.23 lakhs and PY 31.03.2016 Rs. 1,576.57 lakhs) has been utilised as on the date of balance sheet and correspondingly, the trade receivables stand reduced by the said amount as there is no recourse on the Company.

8.1 Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

Proposed Dividend :

The Board of Directors at its meeting held on 29^th May, 2018 have recommended a payment of dividend of Rs. 1.25/- (Rupee One and paise Twenty five paise) per equity share of face value of Rs. 5/- each for the financial year ended 31^st March, 2018. The same amounts to Rs. 331.53 lakhs including dividend distribution tax of Rs. 56.53 lakhs. The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability.

Note 9 : Expenditure on Corporate Social Responsibility initiatives

a) Gross amount required to be spent by the Company during the year is Rs. 41.60 lakhs

b) Amount spent during the year on :

Note 10 : Disclosure in respect of Related Parties pursuant to Ind AS- 24 “ Related Party Disclosures”

List of Related Parties with whom transactions have taken place - (as certified by Management)

a) Key Management Personnel

Shri Tribhuvanprasad Kabra - Managing Director

Shri Mahendrakumar Kabra - Joint Managing Director

Shri Hemant Kabra - CFO & Executive Director Non Executive Directors

Shri Satyanarayan Loya Shri Sandeep Jhanwar

Shri Mukund Chitale Shri R. Kannan

Dr. Ajai Singh Shri Prashant Deshpande

Smt. Kirtidevi Kabra Shri H. S. Upendra Kamath

b) Close Family Members of Key Management Personnel

Shri Rameshwarlal Kabra - Father of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Smt. Ratnidevi Kabra - Mother of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Shri Shreegopal Kabra - Brother of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra.

Smt. Umadevi Kabra - Wife of Shri Tribhuvanprasad Kabra

Shri Mahhesh Kabra - Son of Shri Tribhuvanprasad Kabra

Shri Sumeet Kabra - Son of Shri Mahendrakumar Kabra

c) Entities over which Key Management Personnel and their close family members are able to exercise significant influence

MEW Electricals Ltd. R R Kabel Ltd.

Ram Ratna International Ram Ratna Research & Holdings Pvt. Ltd.

Kabel Buildcon Solutions Pvt. Ltd. Shreegopal Kabra (HUF)

Ram Ratna Electricals Ltd. Rameshwarlal Kabra (HUF)

TMG Global Fzco.

d) Subsidiary & Joint Arrangement

Global Copper Pvt. Ltd. - Subsidiary

RR-Imperial Electricals Ltd. (Bangladesh) - Jointly Controlled Entity

11.1 Includes provision of Rs. 0.92 lakhs (PY Rs. 0.58 lakhs) post employment benefits and Rs. 1.82 lakhs (PY Rs. 3.37 lakhs) for leave encashment.

11.2 Personal guarantees have been given by the Managing Director and Joint Managing Director of the Company for the secured borrowings by the Company to the tune of Rs. 189.20 lakhs (PY 31.03.2017 Rs. 182.60 lakhs and PY 31.03.2016 Rs. 126.55 lakhs).

11.3 Personal guarantees have been given by the Managing Director and Joint Managing Director of the Company and there relative for the unsecured borrowings by the Company to the tune of Rs. 57.50 lakhs (PY 31.03.2017 Rs. 57.50 lakhs and PY 31.03.2016 Rs. 57.50 lakhs).

11.4 The Company has donated Rs. 51.00 lakhs (PY Nil) to the trusts in which some of the directors are trustee.

Note : 12 Exposure in Foreign Currency

The Company uses forward contracts to mitigate the risks associated with foreign currency fluctuations. The Company does not enter into any forward contracts which are intended for trading or speculative purposes.

Note 13: Employee Benefits

A) Defined Benefit Plan- Gratuity (Funded)

The employees’ Gratuity Fund Scheme, is a defined benefit plan. The scheme is maintained and administered by Life Insurance Corporation of India (LIC) to which the Company makes periodical contributions. Under the said scheme, every employee who has completed at least five years of service usually gets gratuity on departure @ 15 days of last drawn salary for each completed year of service. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.

The following table summarises the components of net benefit expense recognised in the statement of profit & loss and the funded status and amounts recognised in the balance sheet :

1 The average duration of the defined benefit plan obligation at the end of the reporting period is 9.60 years (PY 10.46 years)

2 The Company expects to contribute Rs. 40 lakhs (PY Rs. 63.63 lakhs) to the plan during the next financial year.

3 The estimates of rate of escalation in salaries considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

4 Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

5 The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis the present value of defined benefit obligation has been calculated using the projected unit credit method.

B) Defined Contribution Plan - Provident fund

The Company makes its contribution alongwith the share of employees’ contribution deducted from salary on monthly basis to Employees’ Provident Fund administered by the Central Government. The Company’s Contribution is charged to Statement of Profit & Loss. The Company has no obligation for any further contribution in case of any shortfall. The details of contribution are as under :-

C) Other Employee benefits - Leave Encashment

The employees are entitled for the compensation in respect of unavailed leave as per the policy of the Company. The liability towards compensated absences is recognised based on actuarial valuation carried out using Projected Unit Credit method.

# Investment is not held for trading. Upon the application of Ind AS 109 - Financial Instruments, the Company has chosen to measure said investment in equity instrument at FVTOCI irrevocably as the management believes that presenting fair value gains and losses relating to the said investment in the statement of profit and loss may not be indicative of the performance of the Company.

B) Fair Value Measurements

(i) All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows:

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

Level 2 — inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 — inputs that are unobservable for the asset or liability.

(ii) The following tables provide the fair value measurement hierarchy of the Company’s financial assets and liabilities:

The carrying amounts of financial assets (other than security deposits and loan to employees) and financial liabilities measured at amortised cost in the financial statements are reasonable approximation of their fair values since the Company does not anticipate that the carrying amount would be significantly different from the value that would eventually be received or settled.

Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

There have been no transfers between Level 1 and Level 2 for the years ended 31^st March, 2018, 31^st March, 2017 and 1^st April, 2016.

C) Financial Risk Management- Objectives and Policies

The Company is exposed to: (a) Market Risks comprising of Interest Rate Risk, Currency Rate Risk, Commodity Price Risk and Equity Price Risk (b) Credit Risk comprising of trade receivable risk and financial instrument risk and (c) Liquidity Risk. The Company has well placed Risk Management Policy (RMP). The policy provide broad guidelines to identify the risk arising from these factors and provide guidelines to the team for its mitigation or at-least minimize its effect on income / expense on the Company is optimized. Team involved in RMP meets frequently to discuss the level of risk they foresee based on the conditions persisting.

The Company’s exposure to Market Risk, Credit Risk and Liquidity Risk have been summarized below:

Market Risk Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on short-term and long-term floating rate interest bearing liabilities. The Company’s policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion of fixed and floating rate debt is determined by prevailing interest rates. These exposures are reviewed by the management on a periodic basis.

(Calculated based on risk exposure outstanding as of date and assuming that all other variables, in particular foreign currency rates, remain constant).

Foreign Currency Risk

The Company is exposed to fluctuations in foreign currency exchange rates where transaction references more than one currency and/or where assets/liabilities are denominated in a currency other than the functional currency of the Company.

Exposures on foreign currency are managed through a hedging policy, which is reviewed periodically by the management. The Company usually enters into forward exchange contracts progressively based on their maturity to hedge the effects of movements in foreign currency exchange rates individually on assets and liabilities. The sources of foreign exchange risk for the Company are trade receivables, trade payables for imported materials & capital goods as well as foreign currency denominated borrowings. The policy of the Company is to determine on a regular basis what portion of the foreign exchange risk are to be hedged through forward exchange contracts.

The exposure of the Company’s foreign currency risk based on unhedged exposure as at the reporting date is as follows:

Commodity Price Risk

The Company is exposed to the movement of copper and aluminium prices on the London Metal Exchange (LME). Any increase or decline in the prices of these commodities will have an impact on the profitability of the Company. As a general policy, the Company aims to purchase these commodities at prevailing market prices and also sell the products at price adjusted for prevailing market prices. The Company substantially ensures sale of products with simultaneous purchase of these commodities on back-to back basis ensuring no or minimum price risk for the Company.

Equity Price Risk

Equity price risk relates to change in fair value of investments in the equity instruments measured at fair value through OCI. As at 31^st March, 2018 the carrying value of such equity instruments recognised at fair value throgh OCI amounts to Rs. 6,214.00 lakhs (PY 31.03.2017 Rs. 3,853.20 lakhs and PY 31.03.2016 Rs. 1,762.80 lakhs).

A sensitivity analysis demonstrating the impact of change in the carrying value of investment in equity instrument as at reporting date is given below:

Liquidity Risk

Liquidity risk refers to the risk that the Company encounter difficulty in raising fund to meet its financial commitments. The objective of liquidity risk management is to maintain the liquidity and to ensure that funds are available for short operational needs and to fund Company’s expansion projects. The Company has availed credit facility from the banks & financial institutions to meet its financial commitment in timely and cost effective manner.

The Company remains committed to maintaining a healthy liquidity and gearing ratio and strengthening the balance sheet. The maturity profile of the Company’s financial liabilities based on the remaining period from the date of balance sheet to the contractual maturity date is given in the table below.

Credit Risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk for trade receivables and financial guarantees to dealers, derivative financial instruments and other financial assets.

The Company assess the counter party before entering into transactions and wherever necessary supplies are made against advance payment. The Company on continuous basis monitor the credit limit of the counter parties to mitigate or minimise the credit risk. The credit risk for the financial guarantees issued by the Company to bank for credit facilities availed by Company’s dealers from bank is minimum as those parties have long vintage with the Company and they are also subject to credit risk assessment by bank on periodical basis. The credit risk on export receivables are limited as almost all export sales are made to parties having a long vintage with the Company and new parties are subject to necessary due diligence.

For trade receivables, as a practical expedient, the Company computes credit loss allowance based on expected credit loss method. The movement in expected credit loss allowance on trade receivable is as under:

Note 14: Segment Information

a) In accordance with Ind AS 108 the Company operates only in one segment and there is no separate reportable segment.

b) Revenue from external Customers:

c) All non current assets of the Company are located in India.

d) There is no transaction with single external customer which amounts to 10% or more of the Company’s revenue.

Note 15: Details of Investments made & Guarantee given covered U/s 186(4) of the Companies Act, 2013

a) Details of Investments made are given in Note 3.

b) Financial guarantee has been given by the Company in respect of credit facility availed by the Company’s dealers under channel financing arrangements (Note 29.2).

Note 16 : Operating Lease:-

a) Company has taken premises on an Operating Lease Basis for the period of 3-5 years. The lease rentals are payable on monthly basis.

b) Future minimum lease rents payable under non- cancellable lease arrangement are as under:

c) Lease payment recognised in the Statement of Profit & Loss in respect of operating lease is Rs. 26.45 lakhs (PY Rs. 24.13 lakhs.)

Note 17: First time adoption of Ind AS:-

These are the first Financial Statements of the Company prepared in accordance with Ind AS.

The Accounting Policies set out in Note 1 have been applied in preparing the Financial Statements for the year ended 31^st March, 2018, the comparative information presented in these Financial Statements for the year ended 31^st March, 2017 and in the preparation of an opening Ind AS Balance Sheet as at 1^st April, 2016 (the date of transition). In preparing opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in Financial Statements prepared in accordance with the Accounting Standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (Previous GAAP). An explanation of how the transition from Previous GAAP to Ind AS has affected the financial position, financial performance and cash flows of the Company are set out in the following tables and notes:

A) Exemptions and exceptions availed

In preparing these Ind AS Financial Statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101 “First-time Adoption of Indian Accounting Standards” (Ind AS 101), as explained below. The resulting differences between the carrying values of the assets and liabilities in the Financial Statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Company in restating its Previous GAAP Financial Statements, including the Balance Sheet as at 1^st April, 2016 and the Financial Statements for the year ended 31^st March, 2017.

A.1) Ind AS optional exemptions

Set out below are the applicable Ind AS 101 optional exemptions applied in the transition from Previous GAAP to Ind AS:-

i) Deemed Cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment and intangible assets as recognised in the Financial Statements as at the date of transition to Ind AS, measured under Previous GAAP and use that as its deemed cost as at the date of transition. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their Previous GAAP carrying value in their Financial Statements.

ii) Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity (other than investment in Joint Venture).

iii) Investment in Joint Venture (Jointly Controlled Entity)

Ind AS 101 permits a first-time adopter to measure it’s investment at the date of transition at cost determined in accordance with Ind AS 27 or deemed cost. The deemed cost of such investment shall be it’s fair value at the date of transition to Ind AS or carrying amount at that date as per Previous GAAP The Company has elected to measure its investment in Jointly Controlled Entity under Previous GAAP carrying amount as its deemed cost on the date of transition.

iv) Long-term foreign currency monetary items

Exchange differences arising on translation of long term foreign currency monetary items recognised in the Previous GAAP financial statements in respect of which the Company has elected to recognise such exchange differences as a part of cost of assets as allowed under Ind AS 101. Such differences are added/deducted to/ from the cost of assets and are recognised in the statement of profit and loss on a systematic basis as depreciation over the balance life of the assets.

A.2) Ind AS mandatory exceptions

The Company has applied the following mandatory exceptions from full retrospective application of Ind AS as required under Ind AS 101:

i) Estimates

Estimates in accordance with Ind AS at the transition date will be consistent with estimates made for the same date in accordance with Previous GAAP (after adjustments to reflect any difference in Accounting Policies) unless there is objective evidence that those estimates were in error. On assessment of estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise such estimates under Ind AS, as there is no objective evidence of an error in those estimates.

ii) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of facts and circumstances which exist on the date of transition to Ind AS. Accordingly, the Company has applied the requirement prospectively.

B) Reconciliation between Previous GAAP and IND AS

The following statements of reconciliation provide the explanation and qualification of the differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101.

(i) Reconciliation of total equity as at 1^st April, 2016 and 31^st March, 2017

(ii) Reconciliation of total comprehensive income for the year ended 31^st March, 2017

(iii) Reconciliation of cash flow statement for the year ended 31^st March, 2017

C) Footnotes to Reconciliation between Previous GAAP and IND AS

i) Fair Valuation of Non- Current Investment

In the financial statements prepared under Previous GAAP non- current investment of the Company was measured at cost less provision for other than temporary decline in the value of such investment. In accordance with Ind AS 109 “Financial Instruments”, investment in equity instruments (other than in joint venture) has been recognised at fair value at each reporting date through an irrevocable election under other comprehensive income.

On the date of transition to Ind AS, the difference between the fair value of such non-current investments as per Ind AS and its corresponding carrying amount as per financial statements prepared under Previous GAAP has resulted in an increase in the carrying amount of this investment by Rs. 1,722.80 lakhs which has been recognised directly in retained earnings (Equity). Deferred tax liability (net) amounting to Rs. 375.35 lakhs has been recognised directly in retained earnings (equity) on such fair valuation gain.

As at 31^st March, 2017, the difference between the fair value of such non-current investment as per Ind AS and its corresponding carrying amount as per financial statements prepared under Previous GAAP has resulted in an increase in the carrying amount of this investment by Rs. 3,813.20 lakhs. On such fair valuation, gain amounting to Rs. 2,090.40 lakhs and deferred tax liability (net) of Rs. 482.29 lakhs has been recognised in OCI.

ii) Fair valuation of Non - Current Financial Assets

Loan to employees and security deposits are financial assets, which need to be measured at amortised cost. Under the Previous GAAP same were measured at transaction amount. In accordance with Ind AS 109 “Financial Instruments”, the Company has measured the same retrospectively at amortised cost on the date of transition.

Accordingly, the carrying values of loan to employees and security deposits have undergone changed and corresponding impacts have been given in the employee benefits expense, rent expense and other income.

iii) Fair valuation of derivatives

Premium or discount arising on forward exchange contracts entered into by the Company against underline liabilities/ assets under the Previous GAAP is accounted by amortising premium or discount at the inception of contract over the terms of contract. Premium or discount is measured by the difference between the exchange rate at the date of inception of forward exchange contract and the forward rate. In accordance with Ind AS 109 “Financial Instrument” the Company has accounted those derivatives contracts at its fair value and any gain or loss is charged to statement of profit and loss account and net amount is reports as forward receivable/ payable under current financial assets/ liabilities.

iv) Fair Valuation of Financial Liabilities

In accordance with Ind As 109 “ Financial Instruments” transaction cost of long term borrowing to be recognised in the statement of profit and loss using effective interest rate. Under the GAAP same was amortized upfront and charged to profit or loss for the period.

v) Deferred tax

Under Previous GAAP deferred taxes were accounted for using the income statement approach which focuses on differences between taxable profit and accounting profit for the period. Ind AS requires entities to account for deferred taxes using the Balance Sheet approach which focuses on temporary differences between the carrying amount of an asset or liability in the Balance Sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred taxes on temporary differences which were not required to be recorded under Previous GAAP

In addition, the various transitional adjustments have led to deferred tax implications which the Company has accounted for. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or other comprehensive income on the date of transition.

vi) Government Grant

In accordance with Ind AS 20 “Government Grant” duty saved on import of capital goods and spares under the EPCG scheme has been treated as a Government grant. The benefit has been grossed up with the cost of the related assets/spares and has been recognised as a deferred income. Such deferred income is released to the statement of profit and loss based on fulfillment of related export obligations. The duty benefit grossed up to the cost of the asset is depreciated based on its useful economic life and duty benefit grossed up to the cost of the spares are charged to the statement of profit and loss as and when the spares are consumed. Under Previous GAAP duty saved in respect of capital goods/spares is adjusted to the value of capital asset/spares. Total amount of duty saved on import of capital goods and spares during the year ended 31^st March, 2017 is Rs. 30.50 lakhs which has been adjusted to the cost of capital goods and spares and accordingly the value of property plant & equipment has increased by (net of depreciation of Rs. 0.47 lakhs) Rs. 29.27 lakhs and cost of consumption of spares has increased by Rs. 0.76 lakhs.

Deferred income as on the date of transition is Rs. 42.23 lakhs recognized by adjusting the retained earnings and not adjusted to the carrying value of property, plant and equipment, since the company has adopted exemption to consider the Previous GAAP carrying amount of property, plant and equipment at deemed cost under Para D7AA of Ind AS 101.

vii) Revenue

In the financial statements prepared under Previous GAAP, revenue from sale of products was presented net of excise duty. However, under Ind AS, revenue from sale of products includes excise duty. Excise duty expense amounting to Rs. 8,936.25 lakhs is presented separately in the statement of profit and loss for the year ended 31^st March, 2017.

In the financial statements prepared under Previous GAAP no income was recognised for financial guarantee issued without any consideration for credit facility availed by the dealers of the Company from bank under Channel Financing Arrangement but was reported as a contingent liability. Under, Ind As 109 “ Financial Instruments” same is required to be initially recognised at its fair value (guarantee commission) and accordingly notional guarantee commission income of Rs. 20.40 lakhs is recognised under other operating revenues for the year ended 31^st March, 2017 and correspondingly the said amount is charged to profit and loss and are reduced from revenue from sale of products.

In the financial statements prepared under Previous GAAP cash discount and sales promotional expenses were shown as a part of other expenses. However, under Ind AS, such discount and sales promotional expenses amounting to Rs. 35.05 lakhs for the year ended 31^st March, 2017, are reduced from revenue from sale of products.

Amount of Rs. 20.52 lakhs has been recognised as an income under revenue from operations for the year ended 31^st March, 2017 on fulfillment of export obligation from the deferred income for Government grant recognised as on the date of transition.

viii) Employee Benefits

In the financial statements prepared under Previous GAAP remeasurement benefit of defined benefit plan (gratuity), arising primarily due to change in actuarial assumptions was recognised as employee benefits expense in the statement of profit and loss. Under Ind AS, such remeasurement benefit relating to defined benefit plan is recognised in OCI as per the requirements of Ind AS 19 “Employee benefits”. Consequently, the related tax effect of the same has also been recognised in the statement of profit and loss.

Fair value adjustment for interest free loan to employees has been carried out in accordance with Ind AS 109 “Financial Instruments” and same has been recognised at amortised cost under employee benefits expense.

For the year ended 31^st March, 2017, remeasurement of gratuity liability resulted in a net benefit of Rs. 21.86 lakhs which has now been reduced from employee benefits expense in the statement of profit and loss and recognised separately in OCI. Employee benefits expense has been increased by Rs. 0.46 lakhs on account of fair value adjustment for interest free loan to employees. These have resulted in net decrease in employee benefits expense by Rs. 21.40 lakhs and increase in OCI by Rs. 21.86 lakhs for the year ended 31^st March, 2017 and corresponding tax effects thereon have been recognised in OCI and in the statement of profit & loss.

ix) Retained earnings

Retained earnings have been adjusted consequent to the above Ind AS transition adjustments.

x) Other comprehensive income

Under Ind AS, all items of income and expenses recognised in a period are to be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expenses which are not recognised in profit or loss, but are shown in the statement of profit and loss as Other Comprehensive Income include remeasurement of defined benefit plans and fair value gain/(loss) on equity instruments designated as FVOCI. The concept of Other Comprehensive Income did not exist under Previous GAAP

D) Consumable Stores and Spares

Under Previous GAAP the Company was charging consumable stores and spares to statement of profit & loss in the year of purchase however, from the date of transition the Company has decided to charge the same to statement of profit and loss in the year of consumption. Accordingly, the inventory of consumable, stores and spare of Rs. 9.82 lakhs has been recognised on the date of transition and Rs. 14.59 lakhs as on 31^st March, 2017 with corresponding adjustments to retained earnings, other expenses and taxes.

E) Previous GAAP figures have been reclassified/regrouped wherever necessary to conform with the financial statements prepared under Ind AS.

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Mar 31, 2016

1. Terms/ rights attached to Equity Shares

The Company has only one class of shares referred to as equity shares having face value of Rs. 5/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to approval of the Shareholders in the ensuring Annual General Meeting, except in the case of interim dividend.

As per the Companies Act, 2013 the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the Shareholders.

2. For details of Basic and Diluted Earnings Per Share (EPS) (Note 37)

3. Excise Duty

Excise duty is accounted as and when the goods are cleared. Accordingly, excise duty amounting to Rs. 86.77 Lacs has not been accounted and considered for valuation of finished stocks. The said practice has no effect on the Statement of Profit and Loss for the year.

4. Borrowing in Foreign Currency

The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items as per Accounting Standard 11 (AS-11) specified under section 133 of the Companies Act, 2013, which allows foreign exchange difference on long term monetary items to be capitalized to the extent they related to acquisition of depreciable assets and in other cases to amortize over the period of the monetary assets / liabilities or the period up to 31^st March, 2020, whichever is earlier.

Exchange Difference loss of Rs. 4.86 Lacs (P.Y.Rs. 5.80 Lacs) related to acquisition of Depreciable Capital Assets has been adjusted to respective Fixed Assets.

Had this change not been effected, the profit before tax for the year would have been lower by Rs. 4.73 Lacs (net of depreciation) (P.Y. Rs. 5.74 Lacs). Fixed Assets would have been lower by Rs. 4.73 Lacs (P.Y. Rs. 5.74 Lacs) and consequently the Surplus in Statement of Profit & Loss before tax would have been lower by Rs. 4.73 Lacs (P.Y. Rs. 5.74 Lacs).

5. Disclosure in respect of Related Parties pursuant to Accounting Standard 18 " Related Party Disclosures"

List of Related Parties with whom transactions have taken place - (as certified by Management)

6. In view of stay granted by Kerala & Ernakulam High Court on 27-01-2016 in writ petition no. 3025/2016(c) which is followed by number of other High Courts challenging the retrospective effect of implementation of the payment of Bonus Act, 2015, no provision for the increased liability approximately of Rs. 42 Lacs for the F.Y. 2014-15 been made.

7. Details of Investments made & Guarantee given covered U/s 186(4) of the Companies Act, 2013

a) Details of Investments made are given in Note 13.

b) Corporate Guarantees has been given by the Company in respect of Loan taken by the Company''s dealers under channel financing arrangements refer Note 28 (i).

8. Previous year’s figures

The Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2015

1 Company Overview

The Company is engaged in the business of manufacturing engineering goods such as Enamelled Copper Wire & Strips, Enamelled Alluminium Wire, Submersible Winding Wire, Fibre Glass Covered Copper Wire & Strips, Paper Covered Copper Wire & Strips.

1.1 Terms/ rights attached to Equity Shares

The Company has only one class of shares referred to as equity shares having face value of ' 5/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by Board of Directors is subject to approval of the Shareholders in the ensuring Annual General Meeting, except in the case of interim dividend.

As per the Companies Act, 2013 the holders of equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts in the event of the liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the Shareholders.

1.2 Term Loan is secured by way of first pari passu charge with the consortium lenders over the existing immovable properties (excluding immovable property at Rakholi, Silvassa) and the present and future movable fixed assets of the Company and pari passu second charge with the consortium lenders over the present and future current assets of the Company and further secured by personal guarantees of some Directors and a relative of Directors.

1.3 Interest on External Commercial Borrowing ( ECB ) is hedged through Interest rate swap @ 5.51%.

1.4 Vehicle Loans are secured by way of hypothecation of specific vehicle.

1.5 Public Deposits taken by the Company are under the provisions of the Companies Act, 1956 and rules made there under. Fixed deposits carry interest rates from 9.50% to 11% depending upon their tenure.

1.6 Other Unsecured Loans carry interest rates from 11% to 13% with tenure more than two years.

2.1 Secured Working Capital Loans are secured by first pari passu charge with the consortium lenders over the entire current assets, present and future, such as stock, book debts, other receivables, etc. and pari passu second charge with the consortium lenders over the existing immovable properties (excluding immovable property at Rakholi, Silvassa) and the present and future movable fixed assets of the Company and further secured by personal guarantees of some Directors and a relative of Directors.

2.2 Personal guarantees have been given by some of the Directors for unsecured loans.

3.1 For relevant Accounting Policies refer Notes 2.3, 2.4, 2.8 & 2.13

3.2 Net Exchange Difference of Rs. 0.98 lacs ( Previous Year Rs. 4.02 lacs) on Factory Buildings and Rs. 2.62 lacs (Previous Year Rs. 5.45 lacs) on Plant & Machineries is capitalized.

3.3 Interest of Rs. 5.06 lacs ( Previous Year Rs. 12.24 lacs) on Plant & Machineries is capitalised.

3.4 Amount of depreciation adjusted to retained profit is being carrying amount of assets after retaining residual value, whose revised useful life as per schedule II of the Companies Act, 2013 has expired as on 1st April, 2014.

4.1 Rental Deposits include Rs. 28.00 lacs (P.Y. Rs. 45.50 lacs) due from related parties and Rs. 3.50 lacs (P.Y. Rs. 3.50 lacs) due from a Private Company in which one of the Director is interested (Note 34)

5 Contingent Liabilities and Commitments (Rs. in Lacs)

Particulars 2014-15 2013-14

A. Contingent Liabilities

Bank Guarantees (Suppliers) 282.00 852.00

Bank Guarantees (Job work) 50.00 50.00

Bank Guarantees (Channel Financing) 696.24 -

Bill Discounting 388.84 244.32

Income Tax Demand 51.52 76.80

Excise 666.00 666.00

Service Tax 8.95 8.95

B. Commitments

Estimated amount of contracts remaining to be executed and not provided for

i) On Capital Account (Net of advance) 368.47 75.77

ii) Corporate Social Responsibility 5.25 -

Estimated amount of Investment in Joint Venture remaining to be made - US$ 0.23 Lacs (P.Y. US$ 0.76 Lacs) 14.16 45.45

6 Excise Duty

Excise duty is accounted as and when the goods are cleared. Accordingly, excise duty amounting to Rs. 47.85 lacs has not been accounted and considered for valuation of finished stocks. The said practice has no effect on the Statement of Profit and Loss for the year.

7 Borrowing in Foreign Currency

The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules, 2011 relating to Accounting Standard 11 (AS-11) notified by the Government of India on 29th December, 2011, under the Companies Act, 1956 read with Section 133 of the Companies Act, 2013 and rule 7 of the Companies (Accounts) Rules, 2014, which allows foreign exchange difference on long term monetary items to be capitalized to the extent they related to acquisition of depreciable assets and in other cases to amortize over the period of the monetary assets / liabilities or the period up to 31st March, 2020, whichever is earlier.

Exchange Difference loss of Rs. 5.80 Lacs (P.Y.Rs. 23.73 Lacs) related to acquisition of Depreciable Capital Assets has been adjusted to respective Fixed Assets.

Had this change not been effected, the profit for the year would have been lower by Rs. 5.74 Lacs (net of depreciation) (P.Y. Rs. 23.52 Lacs). Fixed Assets would have been lower by Rs. 5.74 Lacs (P.Y. Rs. 23.52 Lacs) and consequently the Surplus in Statement of Profit & Loss would have been lower by Rs. 5.74 Lacs (P.Y. Rs. 23.52 Lacs).

8 Financial and Derivatives Contract

The Company uses forward contracts to mitigate the risks associated with foreign currency fluctuations. The Company does not enter into any forward contracts which are intended for trading or speculative purposes.

9 The useful life of fixed assets were revised in accordance with Schedule II to the Companies Act, 2013. Accordingly the depreciation charge for the year ended March 31, 2015 is higher by Rs. 100.35 Lacs and further, in respect of the assets, whose revised useful life had expired prior to April 1,2014, an amount of Rs. 23.12 Lacs (net of deferred tax) has been adjusted from the retained earnings.

10 Details of Investments made & Guarantee given covered U/s 186(4) of the Companies Act, 2013

a) Details of Investments made are given in Note 13.

b) Corporate Guarantees given by the Company in respect of Loan taken by the Company's dealers under channel financing refer Note 28.

11 Previous year's figures

The Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2014

1 Company Overview

The Company is engaged in the business of manufacturing engineering goods such as Enamelled Copper Wire & Strips, Enamelled Alluminium Wire, Submersible Winding Wire, Fibre Glass Covered Copper Wire & Strips, Paper Covered Copper Wire & Strips.

2 Contingent Liabilities and Commitments (Rs. in Lacs) Particulars 2013-14 2012-13

A. Contingent Liabilities

Bank Guarantees 902.00 1,165.00

Bill Discounting 244.32 403.64

Income Tax Demand 76.80 72.49

Excise 666.00 670.40

Service Tax 8.95 21.43

B. Commitments

Estimated amount of contracts remaining to be executed on Capital Account 75.77 0.57 (Net of advance) not provided for

Estimated amount of Investment in Joint Venture remaining to be made -US $ 45.45 42.75 0.76 Lacs (P.Y. US $ 0.79 Lacs)

Letter of Credit -Nil (P. Y. US $ 4.39 Lacs) - 238.88

3 Excise Duty

Excise duty is accounted as and when the goods are cleared. Accordingly, excise duty amounting to Rs. 19.15 lacs has not been accounted and considered for valuation of finished stocks. The said practice has no effect on the Statement of Profit and Loss for the year.

4 Borrowing in Foreign Currency

The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules, 2009 relating to Accounting Standard 11 (AS-11) notified by the Government of India on 31st March, 2009, which allows foreign exchange difference on long term monetary items to be capitalized to the extent they related to acquisition of depreciable assets and in other cases to amortize over the period of the monetary assets / liabilities or the period up to 31st March, 2020, whichever is earlier.

Exchange Difference loss of Rs. 23.73 Lacs (P.Y.Rs. 16.00 Lacs) related to acquisition of Depreciable Capital Assets has been adjusted to respective Fixed Assets.

Had this change not been effected, the profit for the year would have been lower by Rs. 23.52 Lacs (net of depreciation) (P.Y. Rs. 15.96 Lacs). Fixed Assets would have been lower by Rs. 23.52 Lacs (P.Y. Rs. 15.96 Lacs) and consequently the Surplus in Statement of Profit & Loss would have been lower by Rs. 23.52 Lacs (P.Y. Rs. 15.96 Lacs).

5 Disclosure in respect of Related Parties pursuant to Accounting Standard 18

List of Related Parties with whom transactions have taken place -

a) Key Management Personnel

Shri Tribhuvanprasad Kabra - Managing Director

Shri Mahendrakumar Kabra - Director

b) Relatives of Key Management Personnel

Shri Rameshwarlal Kabra - Father of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Smt. Ratnidevi Kabra - Mother of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Shri Shreegopal Kabra - Brother of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Smt. Umadevi Kabra - Wife of Shri Tribhuvanprasad Kabra

Late Smt. Hemlata Kabra - Wife of Shri Mahendrakumar Kabra

Shri Mahesh Kabra - Son of Shri Tribhuvanprasad Kabra

Shri Sumeet Kabra Son of Shri Mahendrakumar Kabra

Shri Hemant Kabra - Son of Shri Mahendrakumar Kabra

c) Entities over which Key Management and their relatives are able to exercise significant influence

MEW Electricals Limited RR Kabel Limited

Ram Ratna International Ram Ratna Research & Holdings Private Limited

Ram Ratna Infrastructure Private Limited Shreegopal Kabra (HUF)

Kabel Buildcon Solutions Private Limited Rameshwarlal Kabra (HUF)

Ram Ratna Electricals Limited

d) Joint Venture

RR-Imperial Electricals Limited- Bangladesh

6 Financial and Derivatives Contract

The Company uses forward contracts to mitigate the risks associated with foreign currency fluctuations. The Company does not enter into any forward contracts which are intended for trading or speculative purposes.

7 Previous year''s figures

The Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2013

Note 1 Contingent Liabilities and Commitments (Rs.in Lacs)

Particulars 2012-13 2011-2012

A. Contingent Liabilities

Bank Guarantees given 1,165.00 165.00

Bill Discounting 403.64 672.28

Income Tax Demands 72.49 58.64

Excise/Service Tax Demands 691.83 668.07

B. Commitments

Estimated amount of contracts remaining to be executed on Capital Account 0.57 29.28

(Net of advance) not provided for

Estimated amount of Investment in Joint Venture remaining to be made 42.75 95.30

Letter of Credit (USD 4.39 Lacs) 238.88

Note 2 Borrowing in Foreign Currency

The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules, 2009 relating to Accounting Standard 11 (AS-11) notified by Government of India on 31st March, 2009, which allows foreign exchange difference on long term monetary items to be capitalized to the extent they related to acquisition of depreciable assets and in other cases to amortize over the period of the monetary assets /liabilities or the period up to 31st March, 2020, whichever is earlier.

Exchange Difference loss ofRs. 16.00 Lacs ( P.Y. Rs. 32.93 Lacs) related to acquisition of Depreciable Capital Assets has been adjusted to respective Fixed Assets.

Had this change not been effected, the profit for the year would have been lower by Rs. 15.96 Lacs (net of depreciation) (P.Y. Rs. 31.91 Lacs). Fixed Assets would have been lower by Rs. 15.96 Lacs (P.Y. Rs. 31.91 Lacs) and consequently the Surplus in Statement of Profit & Loss would have been lower by Rs. 15.96 Lacs ( P.Y. X 31.91 Lacs).

Note 3 Disclosure in respect of Related Parties pursuant to Accounting Standard 18 List of Related Parties with whom transactions have taken place -

(a) Key Management Personnel

ShriTribhuvanprasad Kabra Managing Director

Shri Mahendra Kumar Kabra Director

(b) Relatives of Key Management Personnel

Shri Rameshwarlal Kabra Father of ShriTribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Shri Shreegopal Kabra Brother of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Smt. Umadevi Kabra Wife of Shri Tribhuvanprasad Kabra

Smt. Hemlata Kabra (Passed away on 05-04-2013) Wife of Shri Mahendrakumar Kabra

Shri Hemant Kabra Son of Shri Mahendrakumar Kabra

(c) Entities over which Key Management and their relatives are able to exercise control or significant influence - MEW Electricals Limited Ram Ratna Electricals Limited

Ram Ratna International RR Kabel Limited

RR-lmperial Electricals Limited- Bangladesh TMG Global FZCO

Ram Ratna Infrastructure Private Limited Ram Ratna Research & Holdings Private Limited

Kabel Buildcon Solutions Private Limited Shreegopal Kabra (HUF)

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

Note 4 Previous year''s figures

The Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2012

1.1 The Term Loans is pari passu secured by first charge with the consortium lenders over the existing immoveable properties (excluding immoveable property at Rakholi, Silvassa) and the present and future moveable fixed assets of the Company and pari passu second charge with the consortium lenders over the present and future Current Assets of the Company and further secured by personal guarantees of some directors and a promoter.

2.1 The Secured Working Capital Loans are pari passu secured by first charge with the consortium lenders over the entire Current Assets, present and future, such as stock, book debts, etc. and pari passu second charge with the consortium lenders over the existing immoveable properties (excluding immoveable property at Rakholi, Silvassa) and the present and future moveable fixed assets of the Company and further secured by personal guarantees of some directors and a promoter.

2.2 For the Unsecured Working Capital Loans, personal guarantees have been given by some directors and a promoter.

3.1 For relevant Accounting Policies refer Note No. 1.3, 1.4, 1.8, 1.12 & 1.13 under the head Significant Accounting Policies.

3.2 Exchange Difference of Rs. 5.64 lacs (Previous Year Rs. Nil) on Factory Buildings and Rs. 24.17 lacs (Previous Year Rs. 17.59 lacs) on Plant & Machineries is capitalized.

3.3 Interest of Rs. Nil (Previous Year Rs. 3.36 lacs) on Factory Buildings and Rs. 8.40 lacs (Previous Year Rs. 43.99 lacs) on Plant & Machineries is capitalized.

4.1 Rental Deposits include Rs. 45.50 lacs (Previous Year Rs. 45.50 lacs) due from related parties and Rs. 3.50 lacs (Previous Year Rs. 3.50 lacs) due from a Private Company in which one of the Director is interested (For details refer Note 30 under the head Notes to financial statements).

5.1 For mode of valuation for each class of Inventories refer Note 1.5 under the head Significant Accounting Policies.

6.1 For determination of cost refer Note 1.5 under the head Significant Accounting Policies.

Note 7 Contingent Liabilities and Commitments (Rs. in Lacs)

Particulars 2011-12 2010-11

Bank Guarantees given 165.00 160.00

Estimated amount of contracts/ Investment remained to be executed on Capital Account (Net of advance) (includes for Joint Venture) 124.58 298.73

Bill Discounting 672.28 73.02

Income Tax Demands 58.64 55.46

Excise/Service Tax Demands 668.07 4.76

Note 8 Excise duty

Excise duty is accounted as and when the goods are cleared. Accordingly, excise duty amounting to Rs. 54.73 lacs has not been accounted and considered for valuation of stocks. The said practice has no effect on the Statement of Profit and Loss for the year.

Note 9 Disclosure in respect of Related Parties pursuant to Accounting Standard 18

List of Related Parties where control exists and with whom transactions have taken place:

(a) Key Management Personnel:

Shri Tribhuvanprasad Kabra Shri Mahendrakumar Kabra (Managing Director) (Director)

(b) Relatives of Key Management:

Shri Rameshwarlal Kabra Smt. Hemlata Kabra

Shri Shreegopal Kabra (HUF) Smt. Priti Saboo

Smt.Umadevi Kabra Shri Shreegopal Kabra

Shri Hemant Kabra

(c) Entities over which Key Management Personnel and their Relatives are able to exercise significant Influence / Control:

Ram Ratna Research and Holdings Jag-Bid Finvest Pvt. Ltd. Pvt. Ltd.

Kabel Buildcon Solutions Pvt. Ltd. Ram Ratna Infrastructure Pvt. Ltd.

Ram Ratna International R R Imperial Electricals Limited, Bangladesh

RR Kabel Limited MEW Electricals Limited



Note 10 Previous year's figures

The Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary to confirm to this year's classification which is as per Revised Schedule VI.

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Mar 31, 2011

1. Contingent Liabilities not provided for in respect of: (Rs. in Lacs)

Particulars 2010-11 2009-10

Bank Guarantees given 160.00 110.00

Estimated amount of contracts / Investment remained to be executed on Capital 298.73 1.39 Account (Net of advance)

Bill Discounting 73.02 35.18

Income Tax 55.46 30.58

Excise / Service Tax 4.76 1.15

2. Excise duty is accounted as and when the goods are cleared. Accordingly, excise duty amounting to Rs. 64.67 Lacs has not been accounted and considered for valuation of stocks. The said practice has no effect on the Profit and Loss Account for the year.

3. The Company has written to all suppliers enquiring about their status under MSMED Act, 2006. However information is not received from all the suppliers. In case of suppliers who have informed and are covered under the Act, the Company has made the payment in time.

4. Capacity and Production :

Notes:

a) Installed capacity is on a single shift and single product basis.

b) Production of Enamelled Copper Winding Wire, Enamelled Copper Strips and Enamelled Aluminium Winding Wire are exempt from the licensing requirement.

c) Previous years figures are written in brackets.

d) Major increase in capacity is effected in 4th quarter of the current year.

11. Disclosure in respect of Related Parties pursuant to Accounting Standard 18:

I) List of Related Parties where control exists and with whom transactions have taken place:

a) Key Management Personnel:

Shri Tribhuvanprasad Kabra (Managing Director) Shri Mahendra Kumar Kabra (Director)

b) Relatives of Key Management:

Shri Rameshwarlal Kabra Smt. Hemlata Kabra

Shri Shreegopal Kabra (HUF)) Smt. Priti Saboo

Smt.Umadevi Kabra

c) Entities over which Key Management Personnel and their Relatives are able to exercise significant influence/Control:

RR Kabel Limited MEW Electricals Ltd.

Ram Ratna Research and Holdings Pvt. Ltd. Jag-Bid Finvest Pvt. Ltd.

Kabel Buildcon Solutions Pvt. Ltd. Ram Ratna Infrastructure Pvt. Ltd.

M/c Ram Ratna International

5. Financial and Derivatives Contract:

The Company used forward contract to mitigate the risks associated with foreign currency fluctuations. The Company does not enter into any forward contract which is intended for trading or speculative purposes.

6. The Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2010

1. Contingent Liabilities not provided for in respect of

(Rs. in Lacs)

Particulars 2009-10 2008-09

Bank Guarantees given 110.00 110.00

Estimated amount of contracts remained to be executed on Capital Account 1.39 19.21

(Net of advance)

Bill Discounting 35.18 69.73

Income Tax 30.58 Nil

Excise / Service Tax 1.15 Nil

Notes:

a) Installed capacity is on a single shift and single product basis.

b) Production of Enamelled Copper Winding Wire, Enamelled Copper Strips and Enamelled Aluminium Winding Wire are exempt from the licensing requirement.

c) The production of Enamelled Copper Winding Wire include 2.276 MTs (P.Y. 4.512 MTs) subsequently converted in Scrap.

d) Previous years figures are written in brackets

2. Disclosure in respect of Related Parties pursuant to Accounting Standard 18

I) List of Related Parties where control exists and with whom transactions have taken place

a) Key Management Personnel

Shri Tribhuvanprasad Kabra (Managing Director) Shri Mahendra Kumar Kabra (Director)

b) Relatives of Key Management:

Shri Rameshwarlal Kabra Smt. Hemlata Kabra

Shri Shreegopal Kabra (HUF) Smt. Priti Saboo

c) Entities over which Key Management Personnel and their relatives are able to exercise significant nfluence/Control :

RR Kabel Limited MEW Electricals Limited

Ram Ratna Research and Holdings Private Limited Jag-Bid Finvest Private Limited

Kabel Buildcon Solution Private Limited M/s. Ram Ratna International

3. The Previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary.