Notes to Accounts of SGN Telecoms Ltd.

Mar 31, 2024

1.14 Provisions, contingent liabilities and contingent assets:

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

In respect of warranty on sale of engines, the estimated cost of warranty is accrued at the time of sale. The estimate for accounting of warranty is periodically reviewed
and revisions are made as and when required.

1.15Use of estimates and judgments

The preparation of the Company''s financial statements requires management to make judgement, estimates and assumptions that affect the reported amount of
revenue, expenses, assets and liabilities and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities affected in future periods.

Depreciation / amortisation and useful lives of property plant and equipment intangible assets:

Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value.
Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded
during any reporting period. The useful lives and residual values are based on the Company¹^ historical experience with similar assets and take into account anticipated
technological changes. The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates.

Fair value measurement of financial instruments:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year. The Company based its assumptions and estimates on parameters available
when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or
circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Provision for product warranty

The Company recognizes provision for product warranties in respect of its products that it sells. Provisions are discounted, where necessary to its present value based
on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjust to reflect the current best
estimates.

1.16Earnings per share:

Basic EPS is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding
during the year. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year.

1.17 Cash and cash equivalents:

Cash and cash equivalents includes cash in hand and deposits with any qualifying financial institution repayable on demand or maturing within three months from the
date of acquisition and which are subject to an insignificant risk of change in value.

1.18Accounting Policies not specifically referred above are consistent with generally accepted Accounting practices.

Company''s capital management objectives are to:

-ensure the company''s ability to continue as a going concern

- provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

For the purposes of the Company''s Capital Management, capital includes issued capital and all other equity reserves. Company manages its capital structure and
makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

Financial Risk Management Framework

Credit risk on cash and cash equivalents is limited as Company generally invest in deposits with banks. Further, Investments are primarily in debt based
liquid mutual funds only and the same are fairly spread across various schemes.

Liquidity Risk

(i) Liquidity Risk Management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast & actual cash flows, and
by matching the maturity profiles of financial assets and liabilities.

(ii) Maturities of Financial Liabilities

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The amount
disclosed in the tables have been drawn up based on the earliest date on which the Company can be required to pay. Financial Liabilities includes Trade
Payables, Capital Purchases, Unpaid/Unclaimed Dividend etc. which are in the normal course of business having maturity plan of less than 1 year and non¬
interest bearing.

2.27 Fair Value Measurement

The fair values of the Financial Assets and Liabilities are included in the amount at which the instrument could be exchanged in a current transaction between
willing parties, other than in a forced or liquidation sale.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.

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

Level 2 - Other Techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 - Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

The Company is primarily engaged in the business of manufacturing Cable components and but no activity has taken place during the year. As the basic nature of
these activities are governed by the same set of risk, returns and internal business reporting system, accordingly these have been grouped as single segment in above
disclosures as per Ind AS-108 dealing with" Operating Segment''.

2.38 Recent Accounting Pronouncements

Standards issued but not yet effective

On March 30, 2020, Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2019, notifying Ind AS 116,
Leases and Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments. The amended rules also notified amendments to Ind AS 12 - Income Taxes and Ind AS 19
- Employee Benefits. The amendments are effective from accounting periods beginning on or after 1st April 2019.

Ind AS 116 Leases : Ind AS 116 will replace the existing leases Standard, Ind AS 17 Leases, and related Interpretations. The Standard sets out the principles for the
recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the lessor. Since , Company donot have any lease
transaction so these amendments are not applicable to the Company''s Financial Statement

Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments : MCA has notified Ind AS 12 Appendix C for covering "Uncertainty over Income Tax Treatments".
Company is assessing the impact of the same on the financial statements.

Amendment to Ind AS 12 Income taxes : On March 31, 2020, Ministry of Corporate Affairs issued amendments to the guidance in Ind AS 12, ‘Income Taxes'', in
connection with accounting for dividend distribution taxes. These amendments are not applicable to the Company.

Amendment to Ind AS 19 - plan amendment, curtailment or settlement- On March 30, 2019, Ministry of Corporate Affairs issued amendments to Ind AS 19, ''Employee
benefits'', in connection with accounting for plan amendments, curtailments and settlements.The Company is assessing the impact of these amendments on the financial
statement.

2.39 Previous year''s figures have been regrouped, wherever necessary, so as to correspond with those of the current year.

---

Mar 31, 2013

1. Estimated amount of contracts remaining to be executed on capital account not provided for as on 31-3-2013 is Nil (Pre.Year Nil) (as certified by M.D.)

2. Balance on account of various parties are still subject to confirmation / Reconciliation.

3. The figures have been rounded off to the nearest rupee and the figures for the previous year have been re-arranged wherever considered necessary.

4. Current Assets loans & advances are approximately of the value stated in the Balance Sheet if realized in the ordinary course of business.

---

Mar 31, 2012

1. Estimated amount of contracts remaining to be executed on capital account not provided for as on 31-3-2012 is Nil (Pre.Year Nil) (as certified by M.D.)

2. Balance on account of various parties are still subject to confirmation / Reconciliation.

3. The figures have been rounded off to the nearest rupee and the figures for the previous year have been re-arranged wherever considered necessary.

4. Current Assets loans & advances are approximately of the value stated in the Balance Sheet if realized in the ordinary course of business.

5. Previous year figures are in brackets

---

Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account not provided for as on 31 -3-2010 is Nil (Pre. Year Nil) (as certified by M.D.)

2. Balance on account of various parties are still subject to confirmation / Reconciliation.

3. The figures have been rounded off to the nearest rupee and the figures for the previous year have been re-arranged wherever considered necessary.

4. Current Assets loans & advances are approximately of the value stated in the Balance Sheet if realized in the ordinary course of business.

5. SEGMENT INFORMATION

Company is engaged only in one business segment.

6. Expenditure in Foreign Currency

A. Travelling Expenses

B. Value of Imports on GIF Value (Capital Items)

C. Souvenir expenses