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Notes to Accounts of CMI Ltd.

Mar 31, 2023

(a) Terms/ rights attached to equity shares

The company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends only in Indian rupees. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature & Purpose of Other Equity

(i) Retained Earnings: Retained Earnings represents profits generated and retained by the company post distribution of dividends to the equity shareholders in the respective years. Retained earnings can be utilized for distribution of

(ii) Securities Premium: Securities premium is used to record Â¦the premium on issue of shares.

(iii) Capital Redemption Reserve: Capital Redemption Reserve was created for redemption of capital.

(iv) Capital Reserve: Capital Reserve has been created on account of amalgamation.

(v) Other Reserves: The Company has elected to recognise changes in the fair value of investments in equity instruments in other comprehensive income. These changes are accumulated within the FVTOCI equity investments within equity.

Note:

(i) Term loans from banks and others are repayable in monthly/quarterly installments. These term loans are secured by way of first pari Dassu charge on entire movable fixed assets (both Dresent and future) and mortgage of industrial DroDerty of the ComDany located at As the accounts of the Company maintained with its lenders had turned NPS during the last financial year, resulting the updated loan

(ii) account statements after the NPA dates are not available in some cases hence the liabilities has been recognised on the basis of latest available loan account statements and balance therein

Note:

(i) Term loans from banks and others are repayable in monthly/quarterly installments. These term loans are secured by way of first pari passu charge on entire movable fixed assets (both present and future) and mortgage of industrial property ofthe Company

As the accounts of the Company maintained with its lenders had turned NPS during the last financial year, resulting the updated

(ii) loan account statements after the NPA dates are not available in some cases hence the liabilities has been recognised on the basis of latest available loan account statements and balance therein

Note:

(i) Working capital facilities from banks and others are secured by way of first pari-passu charge on current assets of the company, both present and future, first pari-passu charge on land & building and movable fixed assets ofthe company located at Faridabad (Haryana), second pari passu charge on land & building and movable fixed assets of the Company located at Baddi (Himachal Pradesh) and these facilities are further secured by collaterals given by directors and their friends and relatives with their personal guarantees.

(ii) As the accounts of the company maintained with its lenders had turned NPS during the earlier financial year, resultantly the updated loan account statements after the NPA date are not available in some cases hence the liabilities has been recognised on the basis of latest available loan account statements and balances therein

Dues to micro and small enterprises have been determined to the extent such parties have been identified on the basis of intimation received from the "suppliers"/ informations available with the company regarding their status under the Micro, Small and Medium Enterprises Development Act 2006.

36 Employee benefit obligations_

The Company has not obtained acturial certificate for employee benefits for the financial year 2022-2023 and therefore employee benefits as per Ind AS 19 has not been recognised in the financials.

(A) Defined benefit plans

Gratuity:

Provision for gratuity is determined based on actuarial valuation using projected unit credit method.

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

Leave encashment:

The company provides for leave encashment subject to certain rules. The employees are entitled to accumulate leaves subject to certain limits, for future encashment. The liability is provided based on the number of days of unutilized leaves at each balance sheet date on the basis of an independent actuarial valuation.

The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible.

Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

(ix) Risk exposure:

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below : Investment risk :

If future investment returns on assets are lower than assumed in valuation, the scheme''s assets will be lower, and the funding level higher than expected.

Changes in bond yields :

A decrease in yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans'' bond holdings.

Longevity risk :

If improvements in life expectancy are greater than assumed, the cost of benefits will increase. This will mean the funding level will be higher than expected.

Inflation risk :

Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at managements discretion may lead to uncertainties in estimating this risk.

The carrying amounts of financial assets and liabilities carried at amortised cost are reasonable approximation of their fair values.

(b) Fair value hierarchy :

The fair value of financial instruments as referred to in note (a) above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed equity instruments, traded bonds and mutual funds that have quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques that maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable the instrument is included in level 2.

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

For assets and liabilities which are measured at fair value as at Balance Sheet date, the classification of fair value calculations by category is summarised below:

The fair values of the financial assets and liabilities are defined as the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the year ended 31st March, 2023.

Financial assets and liabilities measured at fair value as at Balance Sheet date:

# The fair values of investment in quoted investment in equity shares is based on quoted price of respective investment as at the Balance Sheet date.

# Other financial assets and liabilities

- Cash and cash equivalents, trade receivables, investments in term deposits, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

- Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

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| 46 Financial Risk Management |

The Company''s business activities are exposed to market risk, credit risk and liquidity risk. The Company''s senior management looks after the management of these risks. The Company''s senior management is responsible to ensure that Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. All activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision.The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(a) Market risk

Market Risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk and other price risk. Financial instruments affected by market risk include loans & borrowings, deposits & Investments.

(i) Interest Rate Risk

Interest Rate Risk is the risk that the fair value of the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interests rate primarily relates to the Company''s long-term debt obligations with floating interest rates. The Company''s policy is to manage its interest cost using a mix of balanced portfolio of fixed and variable/ floating rate borrowings.

(ii) Foreign Currency Risk

Foreign Currency Risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency).

The Company has sales and purchases from outside India. The Company has transactional currency exposures arising from sales and purchases by an operating unit in currencies other than the unit''s functional currency.

Exposures in foreign currency are managed through a natural hedging policy, which is reviewed periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed. The Company strives to achieve asset liability offset of foreign currency exposures.

The following table demonstrates the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Company''s profit/ (loss) before tax is due to changes in the fair value of monetary assets and liabilities. With all the other variables held constant, the Company''s profit/ (loss) before tax is affected through the impact of change of foreign currency rate as follows-

(iii) Price Risk

Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchase of copper, aluminium, PVC/PE, etc. These inputs are procured based on monthly average prices and the same are further protected with price escalation clause for cables being supplied to various customers.

The Company''s Board of Directors has developed and enacted a risk management strategy regarding commodity price risk and its mitigation.

Equity price risk

The Company''s non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company''s senior management on a regular basis. The Company''s Board of Directors reviews and approves all equity investment decisions.

At the reporting date, the Company''s exposure to unlisted equity securities at fair value was Rs. Nil.

(b) Credit Risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk for trade receivables, cash and cash equivalents, investments, other bank balances, loans, other financial assets and financial guarantees.

Customer credit risk is managed by the Company subject to the Company''s established policy, procedures and controls relating to customer credit risk management. Credit quality of a customer is assessed based on credit rating and individual credit limits are defined in accordance with credit assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are in some cases covered by letters of credit or other forms of credit assurance.

An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The assessment is based on historical information of defaults. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

The Company''s customer profile includes public sector enterprises, state owned companies and private corporates. Accordingly, the Company''s customer credit risk is low to medium.

The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation. Based on assessment performed, management has concluded that the current provision made against trade receivables is adequate to cover the provision on account of expected credit loss.

The Company assesses the recoverability of other financial assets, potentially subject to credit risk, on regular basis. Factors such as business and financial performance of counterparty, their ability to repay, regulatory changes and overall economic conditions are considered to assess future recoverability.

Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future obligations associated with financial liabilities that are required to be settled by delivering cash or another financial asset.

Company monitors its risk of shortage of funds using cash flow forecasting models. These models consider the maturity of their financial investments, committed funding and projected cash flows from operations.

The Company''s objective is to provide financial resources to meet its business objectives in a timely, cost effective and reliable manner. A balance between continuity of funding and flexibility is maintained through the use of bank borrowings. The Company also monitors compliance with its debt covenants.

47 The losses which are of exceptional nature i.e. which are not operational/normal losses and were booked in reporting period have been disclosed separately under "Exceptional items".

| 48 Capital management |

The Company''s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth. The Company''s capital management aims to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business.

The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments. The funding requirements are met through a mixture of equity, internal fund generation and current and non-current borrowings.

50 The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or other kind of funds) to or in any other person or entity, including foreign entity (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

The Company has not received any funds (which are material either individually or in the aggregate) from any person or entity, including foreign entity (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

51 During the Financial year, there is no delay by the Company in the registration of charges or satisfaction with Registrar of Companies beyond statutory period.

52 The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

53 Disclosure regarding Relationship with Struck off Companies:

The Company does not have any relationship with companies whose names have been struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 in the financial years ended March 31, 2023 and March 31, 2022.

54 Disclosure as required by Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

(A) Loans & Advances in the nature of Loans: Rs.

(i) To Subsidiary Companies:- Nil

(ii) To Joint Venture or Associate Companies:- Nil

(iii) To Firms/Companies in which directors are interested:- Nil

(B) Investment by Loanee (as disclosed above) in the shares of CMI Limited:- Nil

55 The Quarterly Returns/ Statements read with subsequent revisions filed by the company with the banks are in agreement with the books of accounts.

56 There is no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

57 There are no transactions which are not recorded in the books of account which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

59 The Company has not traded or invested in crypto currency or virtual currency during the financial year.

60 The Company has not entered into any scheme of arrangement.

61 Figures are rounded off to nearest rupees in Lakhs.

62 The financial statements were approved for issue by the Board of Directors on 31/10/2023

63 The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them comparable.

Mar 31, 2018

1. Corporate information

CMI Limited (''the Company'') is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its equity shares are listed on the BSE Limited and the National Stock Exchange of India Limited in India. The registered office of the Company is located at Flat No. 501-503, 5th Floor, New Delhi House, 27 Barakhamba Road, New Delhi -110001.

The Company is primarily engaged in the business of manufacture and sale of wires and cables such as Railway Signaling Cables, Control & Instrumentation Cables, Jelly Filled Telephone Cables, Power Cables and many other specialty cables.

These standalone financial statements are approved for issue by the Board of Directors on May 30, 2018.

2. Basis of preparation

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, Companies (Indian Accounting Standards) (Amendment) Rules, 2016 as amended and the relevant provisions of the Companies Act, 2013.

For all periods up to and including the year ended 31st March 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP), to the extent applicable, and the presentation requirements of the Companies Act, 2013. These financial statements for the year ended 31st March 2018 are the first the Company has prepared in accordance with Ind AS.

The transition to Ind AS was carried out in accordance with Ind AS 101 First Time Adoption of Indian Accounting Standards with the date of transition as April 1, 2016. Refer Note No. 51 for information on how the Company adopted Ind AS.

The standalone financial statements have been prepared on a going concern basis using historical cost convention and on an accrual method of accounting, except for certain financial assets and financial liabilities which are measured at fair value/ amortized cost (Refer accounting policy regarding financial instruments).

The standalone financial statements are presented in Indian Rupees Lakh and all values have been rounded to the nearest Lakh with two decimal places, unless stated otherwise.

*The Company has elected to measure all of its Investment Property at their previous GAAP carrying value, as deemed cost, at the transition date.

Note: Investment Property have been mortgaged as security with banks against specific term loans of the Company.

These values are based on valuations performed by independent valuers on the basis of available market quotes/ prevalent property prices in the same and nearby localities.

The Company has no restrictions on the realisability of its investment property and no contractual obligations to purchase, construct or develop investment property or for repairs, maintenance and enhancements.

Fair value hierarchy disclosures for investment property have been provided in "Note 48".

Terms/ rights attached to equity shares

The company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends only in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Term loans from banks are repayable in monthly/quarterly installments. The loans are secured byway of first charge on fixed assets of the Company and further secured by personal guarantee of Mr. Amit Jain.

Term loans from Others include loans from NBFCs are repayable in monthly installments. The loans are secured by way of first charge on specific fixed assets of the Company and further secured by personal guarantee of Mr. Amit Jain.

Note:

i) Working Capital facilities from Banks and Others are secured by way of first pari-passu charge on current assets of the company, both present and future, and first pari-passu charge on land & building and movable fixed assets of the company located at Faridabad (Haryana) and these facilities are further secured by collaterals given by directors and their friends and relatives with their personal guarantees.

ii) The Company has not defaulted in the repayment of borrowings and interest as at Balance Sheet date.

*Amounts due to Micro & Small enterprises under MSMED Act, 2006 is Rs. Nil (31st March 2017: Rs. Nil, 1st April 2016: Rs. 0.67 lakh). In the absence of information about registration of such enterprises under the said Act, the details of dues to Micro & Small Enterprises have been furnished to the extent such parties have been identified by the Company based on information made available by them.

# Current tax liabilities for the financial year 2017-18, 2016-17 & 2015-16 have been provided in the books of accounts, however, upon sanction of the scheme of amalgamation between CMI Limited and CMI Energy India Private Limited with effect from 01/03/2016, being the Appointed Date, no such tax liability shall be payable by the Company because of the availability of benefit of Brought Forward Tax Losses and Unabsorbed Depreciation of CMI Energy India Private Limited to the Company under the provisions of the Income Tax Act, 1961.

(A) Defined benefit plans

Gratuity:

Provision for gratuity is determined by actuaries using the projected unit credit method.

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the respective plans:

(viii) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below:

3 Segment information

The Company''s operations predominately relate to Cables and accordingly this is the only reportable segment as per Ind AS 108 "Operating Segments".

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity shareholders of the company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit for the year attributable to the equity shareholders of the company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

4 Leases

Operating Lease Company as a lessee:

The Company has taken certain vehicles and immovable properties on operating lease. All operating leases entered into by the Company are cancelable on giving notice of one to three months.

Company as a lessor:

The Company has given certain immovable properties on operating lease. All operating leases entered into by the Company are cancelable on giving notice of one to three months.

Finance Lease

The company does not have any finance lease as at March 31, 2018.

Fair value of financial assets and liabilities measured at ^{( )} amortised cost :

The carrying amounts of financial assts and liabilities carried at amortised cost are reasonable approximation of theirfair value.

(c) Fair value hierarchy :

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows based on the lowest level input that is significant to the fair value measurement as whole.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices, for example listed equity instruments, traded bonds and mutual funds that have quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques that maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value in an instrument are observable the instrument is included in level 2.

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

The Company''s principal financial liabilities comprise loans and trade payables. The main purpose of these financial liabilities is to raise finance for the Company''s operations. The Company has various financial assets such as trade receivables, bank balances and shortterm deposits, which arise directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is responsible to ensure that Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. All activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk and other price risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interests rate primarily relates to the Company''s longterm debt obligations with floating interest rates. The Company''s policy is to manage its interest cost using a mix of fixed & floating rate borrowings.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency).

The following table demonstrates the sensitivity to a reasonably possible change in US$ and EUR exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities. With all the other variables held constant, the Company''s profit before tax is affected through the impact on change of foreign currency rate as follows:

(iii) Price risk Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing purchase and manufacture of copper cables and therefore require a continuous supply of copper. To meet requirements the Company enters into contracts to purchase copper.

The Company''s Board of Directors has developed and enacted a risk management strategy regarding commodity price risk and its mitigation.

(a) Equity price risk

At the reporting date, the Company''s exposure to unlisted equity securities (otherthan investments in subsidiaries) at fair value was Rs. Nil.

(b) Credit risk

Customer credit risk is managed by the Company subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on credit rating and individual credit limits are defined in accordance with credit assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit assurance.

The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation and based on the assessment performed, the management does not expect any material loss on its receivables and hence no provision is deemed necessary on account of expected credit loss.

(c) Liquidity risk

The Company monitors its risk of shortage of funds using cash flow forecasting models. These models consider the maturity of their financial investments, committed funding and projected cash flows from operations. The Company''s objective is to provide financial resources to meet its business objectives in a timely, cost effective and reliable manner. A balance between continuity of funding and flexibility is maintained through the use of bank borrowings. The Company also monitors compliance with its debt covenants.

5 Capital management

The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments.

The funding requirements are met through a mixture of equity, internal fund generation and short-term and long-term borrowings.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company''s policy is to keep the gearing ratio optimum. Net debt are non-current and current borrowings as reduced by cash and cash equivalents and other bank balances. Equity comprises all components including other comprehensive income.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March 2018 and 31st March 2017.

These financial statements, for the year ended 31st March 2018, are the first the Company has prepared in accordance with Ind AS. The preparation of these financial statements resulted in changes to the accounting policies as compared to most recent annual financial statements prepared under previous GAAP. Accounting policies have been applied consistently to all periods presented in the financial statements. They have also been applied in preparing the Ind AS opening balance sheet as at 1st April 2016 for the purpose of transition to Ind AS and as required by Ind AS 101.

This note explains the principal adjustments made by the Company in restating its previous GAAP financial statements, including the balance sheet as at 1st April 2016 and 31st March 2017 and statement of profit and loss forthe year ended 31st March 2017.

(A) Ind AS optional exemptions applied:

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

(a) Deemed cost

The Company has elected to continue with the carrying value of all of its property, plant and equipment; investment property; and intangible assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per previous GAAP and used it as its deemed cost at the date of transition.

(b) Investments in subsidiary

The company has elected to apply previous GAAP carrying amount of its equity investment in subsidiary as deemed cost as on the date of transition to Ind AS.

(c) Effect of changes in exchange rate

In respect of long term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period, the Company has elected to recognise exchange differences on translation of such long term foreign currency monetary items in line with its previous GAAP accounting policy.

In respect of long term foreign currency monetary items recognised in the financial statements beginning with the first Ind AS financial reporting period, exchange differences are recognised in the statement of profit and loss.

(B) Ind AS mandatory exceptions

(a) Estimates

The estimates at 1st April 2016 and at 31st March 2017 are consistent with those made for the same dates in accordance with Indian GAAP apart from the following items where application of Indian GAAP did not require estimation:

- Impairment of financial assets based on expected credit loss model.

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1st April 2016, the date of transition to Ind AS and as of 31st March 2017.

(b) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Accordingly, the classification and measurement of financial assets has been made on the basis of the facts and circumstances existed at the date of transition.

Impact of transition to Ind AS

The following is a summary of the effects of the differences between Ind AS and previous GAAP on the Company''s total equity and profit forthe year previously reported under previous GAAP following transition to Ind AS.

The disclosure relating to Specified Bank Notes held and transacted by the Company during the period from 8th November, 2016 to

6 30th December, 2016 in accordance with the amendment to Schedule III vide G.S.R. 308(E) dated 30th March, 2017 as issued by the Ministry of Corporate Affairs is not applicable to the Company for the year ended March 31, 2018.

7 Figures are rounded off to nearest rupees in Lakh.

Mar 31, 2016

1. The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at 31^st March, 2016. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Gratuity:

As per actuarial valuation, the Present Value of Obligation is Rs. 92.05 Lakhs and the Fair Value of Plan Assets is of Rs. 17.52 Lakhs and the Net Gratuity Liability is Rs. 74.53 Lakhs as on 31^st March, 2016.

Leave Encashment:

As per actuarial valuation, the Present Value of Obligation is Rs. 9.94 Lakhs and the Fair Value of Plan Assets is of Rs. Nil and the Net Leave Encashment Liability is Rs. 9.94 Lakhs as on 31^st March, 2016 and is provided in the books of account.

2. In the opinion of the Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

3. The Company has manufactured various types of Cables during the year under review; therefore there are no separate reportable segments as per Accounting Standard 17.

4. Leases:

i. The disclosure under Accounting Standard - 26 (Intangible Assets):-The Company has no Intangible Asset on lease as on 31^st March, 2016.

ii. The disclosure under Accounting Standard -19 (Leases):-

All operating leases entered into by the Company are cancellable on giving notice of one to three months. As per AS-19 (Leases), the disclosure requirements for operating leases of the Company are as follows:

a. the total of future minimum lease payments under non-cancellable operating leases for each of the following periods:

i. not later than one year;

ii. later than one year and not later than five years;

iii. later than five years;

b. The total of future minimum sublease payments expected to be received under non-cancellable subleases at the balance sheet date;

- Not Applicable

c. Lease payments recognized in the Statement of Profit and Loss for the period, with separate amounts for minimum lease payments and contingent rents;

- Details of lease payments recognized in the Statement of Profit and Loss for the period are as per Clause 1(a) here in above and there are no contingent rents.

d. Sub-lease payments received for (or receivable) recognized in the statement of profit and loss for the period;

- Not Applicable

e. A general description of the lessee''s significant leasing arrangements including, but not limited to, the following:

i. the basis on which contingent rent payments are determined;

ii. the existence and terms of renewal or purchase options and escalation clauses; and

iii. restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing.

- Not Applicable

5. Trade Payables include an amount of Rs. 0.67 Lakhs (Previous year Rs. 1.09 Lakhs) being amount payable to Micro, Small & Medium Enterprises (MSME) as defined in Micro, Small & Medium Enterprises Development Act, 2006. The outstanding exceeding Rs. 1.00 Lakh for a period in excess of 45 days at balance sheet date is nil.

The details of MSME dues have been furnished to the extent such parties have been identified by the Company based on information made available by them.

6. There are following TDS demands outstanding as on 31^st March, 2016.

F.Y. Law Amounts

Prior Years TDS Rs. 64,469/-

7. That the Company has test marketed the Robotech items and sale of such items for Rs. 27.95 Lakhs ( Previous Year Rs 0.67 Lakhs) is included in Sale of Products.

8. Related Party Transactions as per Accounting Standard 18:

I. Key Managerial Personnel

Mr. Amit Jain Managing Director

Mr. V. K. Gupta Whole-time Director

Mr. Pyare Lal Khanna Director

Mr. Ramesh Chand Director

Mr. Subodh Kumar Barnwal Secretary

Mr. Raj Kumar (Up to 29^th February, 2016) C.F.O.

Mr. Ghan Shyam Dass (From 01^st March, 2016) C.F.O.

II. Parties in which the Key Managerial Personnel / Directors of the Company are interested:

a. M/s Wireco (India) - A proprietorship concern of Mr. Pyare Lal Khanna, Director of the Company.

b. Vardhman Cables India Pvt. Ltd. - Relative of Director is Director of the Company.

c. RKJ Alloys & Conductors Pvt. Ltd. - Relative of Director is Director of the Company.

d. Lancer Telecom (India) Pvt. Ltd. - Relative of Director is Director of the Company.

e. CMI Energy India Pvt. Ltd. -100% Subsidiary Company w. e. f. 29/02/2016.

III. Relatives of Key Managerial Personnel / Directors of the Company:

Mrs. Himani Jain

Notes:

a. Remuneration paid to:

Mr. Amit Jain - Rs. 27.00 Lakhs (Previous Year Rs. 21.00 Lakhs)

Mr. V. K. Gupta - Rs. 7.20 Lakhs (Previous Year Rs. 6.00 Lakhs)

b. Mr. Subodh Kumar Barnwal - Rs. 6.22 Lakhs (Previous Year Rs. 5.59 Lakhs)

c. Mr. Raj Kumar - Rs. 1.65 Lakhs (Previous Year Rs. 1.80 Lakhs)

Mr. Ghan Shyam Dass - Rs. 4.44 Lakhs (Previous Year Nil)

d. Interest paid / payable to:

Mr. Amit Jain - Rs. 32.93 Lakhs (Previous Year Rs. 12.30 Lakhs)

e. Lease rent (vehicle) paid / payable to:

Mr. Amit Jain - Rs. 3.00 Lakhs (Previous Year Rs. 0.75 Lakhs)

f. Interest received / receivable from:

CMI Energy India Pvt. Ltd. - Rs. 78.64 Lakhs (Previous Year Rs. Nil)

g. Reimbursement of expenses from:

CMI Energy India Pvt. Ltd. - Rs. 22.03 Lakhs (Previous Year Rs. Nil)

h. Transactions in unsecured loans received during the year with;

Mr. Amit Jain - Rs. 2,391.50 Lakhs (Previous Year Rs. 235.25 Lakhs)

Lancer Telecom (India) Pvt. Ltd. - Rs. 85.00 Lakhs (Previous Year 6.00 Lakhs)

RKJ Alloys & Conductors Pvt. Ltd. - Rs. 2,216.50 Lakhs (Previous Year 1,962.67 Lakhs) Vardhman Cables India Pvt. Ltd. - Rs. 25.00 Lakhs (Previous year Nil)

Himani Jain - Rs. 2.00 Lakhs (Previous year 5.00 Lakhs )

i. Transactions in unsecured loans received paid back during the year with;

Mr. Amit Jain - Rs. 1,627.61 Lakhs (Previous Year Rs. 253.37 Lakhs)

Lancer Telecom (India) Pvt. Ltd. - Rs. 85.00 Lakhs (Previous Year 6.00 Lakhs)

RKJ Alloys & Conductors Pvt. Ltd. - Rs. 2,216.50 Lakhs (Previous Year 2,307.67 Lakhs) Vardhman Cables India Pvt. Ltd. - Rs. 25.00 Lakhs (Previous Year 3.25 Lakhs)

Himani Jain - Rs. 2.00 Lakhs (Previous year Rs. 5.00 Lakhs ) j. Transactions in unsecured loans paid during the year to;

CMI Energy India Pvt. Ltd. - Rs. 10,132.34 Lakhs (Previous Year Rs. Nil) k. Transactions in unsecured loans paid received back during the year from;

CMI Energy India Pvt. Ltd. - Rs. 551.60 Lakhs (Previous Year Rs. Nil)

9. Certain debit and credit balances of the parties are subject to confirmations.

10. Previous year figures have been regrouped / rearranged wherever considered necessary.

11. Information required in terms of the Schedule III to the Companies Act, 2013 as compiled by the Company is attached.

Mar 31, 2015

NOTE - 1.1

Terms & rights attached to Equity shares

The Company has issued only one class of shares, i.e. equity shares of face value of Rs. 10/- each. All Equity Shareholders are entitled to one vote per share.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in the proportion to their shareholdings.

Note 1.2

a. The Company has not issued any bonus shares in the last five years.

b. The Company has not bought back any share in the last five years.

c. The Company has not issued share other than cash in the last five years.

2. Contingent Liabilities

Contingent Liabilities are not provided for in the accounts and are disclosed by way of notes herein below:

(Rs. in Lacs) Sl. Nature of March 31,2015 March 31,2014 No

(a) Counter Guarantee given to Company's Bankers for the 970.39 895.40 Guarantee given by them on behalf of the Company (Net of Advances)

(b) Pending suit in court filed by parties for alleged demand for 64.36 64.36 recovery.

3. The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at March 31,2015. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Gratuity:

As per actuarial valuation, the Present Value of Obligation is Rs. 78.73 Lacs and the Fair Value of Plan Assets is of Rs. 16.17 Lacs and the Net Gratuity Liability is Rs. 62.56 Lacs as on March 31, 2015.

Leave encashment:

As per actuarial valuation, the Present Value of Obligation is Rs. 7.51 Lacs and the Fair Value of Plan Assets is of Rs. Nil and the Net Leave Encashment Liability is Rs. 7.51 Lacs as on March 31, 2015 and is provided in the books of account.

4. In the opinion of Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

5. Auditors' remuneration (Inclusive service tax) includes the following:

6. The Company has manufactured various types of Cables during the year under review; therefore there are no separate reportable segments as per Accounting Standard 17.

7. Leases:

i) The disclosure under Accounting Standard - 26 (Intangible Assets):- The Company has no Intangible Asset as on 31.03.2015.

ii) Disclosure under AS-19 (Leases):-

All operating leases entered into by the Company are cancelable on giving notice of one to three months. As per AS-19 (Leases), the disclosure requirements for operating leases of the Company are as follows:

(a) the total of future minimum lease payments under non-cancellable operating leases for each of the following periods:

(i) not later than one year;

(ii) later than one year and not later than five years;

(iii) later than five years;

(b) the total of future minimum sublease payments expected to be received under non-cancellable subleases at the balance sheet date;

- Not Applicable

(c) Lease payments recognized in the statement of profit and loss for the period, with separate amounts for minimum lease payments and contingent rents;

- Details of lease payments recognised in the statement of profit and loss for the period are as per Clause 1(a) here in above and there are no contingent rents.

(d) Sub-lease payments received for (or receivable) recognized in the statement of profit and loss for the period;

- Not Applicable

(e) a general description of the lessee's significant leasing arrangements including, but not limited to, the following:

(i) the basis on which contingent rent payments are determined;

(ii) the existence and terms of renewal or purchase options and escalation clauses; and

(iii) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing.

- Not Applicable

8. Pursuant to the enactment of Companies Act, 2013, the company has applied the estimated useful lives as specified in schedule II. Accordingly, the unamortized carrying value is being depreciated/ amortized over the revised/ remaining useful lives. The written down value of fixed assets whose lives have expired as at 1st April, 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to Rs. 91,78,519.

9. Trade Payables include an amount of Rs. 1.09 Lacs (Previous year Rs. 0.69 Lacs) being amount payable to Micro, Small & Medium Enterprises as defined in Micro, Small & Medium Enterprises Development Act, 2006. The outstanding exceeding Rs. 1.00 lac for a period in excess of 45 days at balance sheet date is nil.

The details of MSME dues have been furnished to the extent such parties have been identified by the Company based on information made available by them.

10. That the company has test marketed the LEGO MINDSTORM EV-3 CORE SET - 45544 and sold the same for Rs. 67,497.90 and the same is included in Sale of products.

II. Parties in which the Key Managerial Personnel/ Directors of the Company are interested:

a) M/s Wireco (India) - A proprietorship concern of Mr. Pyare Lal Khanna, director of the company.

b) Vardhman Cables India Pvt. Ltd. - Relative of director is director of the company.

c) RKJ Alloys & Conductors Pvt. Ltd. - Relative of director is director of the company.

d) Lancer Telecom (India) Pvt. Ltd. - Relative of director is director of the company.

III. Relatives of Key Managerial personnel/ directors of the Company:

Mr. Parag Jain, Mrs. Himani Jain

a) Remuneration paid to:

Mr. Amit Jain Rs. 21.00 Lacs (Previous Year Rs. 18.00 Lacs)

Mr. V.K. Gupta Rs. 6.00 Lacs (Previous Year Rs. 6.00 Lacs)

b) Mr. Subodh Kumar Barnwal Rs. 5.59 Lacs (Previous Year Rs. 5.15 Lacs)

c) Mr. Raj Kumar Rs. 1.80 Lacs (Previous Year Rs. 1.80 Lacs)

d) Interest paid / payable to:

Mr. Amit Jain Rs. 12.30 Lacs (Previous Year Rs. 10.24 Lacs)

e) Lease rent (Vehicle) paid / payable to:

Mr. Amit Jain Rs. 0.75 Lacs (Previous Year Rs. Nil)

f) Transactions in unsecured Loans received during the year with;

Mr. Amit Jain Rs. 235.25 Lacs (Previous Year Rs. 180.84 Lacs)

Lancer Telecom (India) Pvt. Ltd. Rs. 6 Lacs (Previous Year 86 Lacs)

RKJ Alloys & Conductors Pvt. Ltd. Rs. 1962.67 Lacs (Previous Year 1299.74 Lacs) Vardhman Cables India Pvt. Ltd. Rs. Nil (Previous year 147.50 Lacs)

Himani Jain Rs. 5 Lacs (Previous year Nil )

g) transactions in unsecured Loans received paid back during the year with;

Mr. Amit Jain Rs. 253.37 Lacs (Previous Year Rs. 604.92 Lacs)

Lancer Telecom (India) Pvt. Ltd. Rs. 6 Lacs (Previous Year 86 Lacs)

RKJ Alloys & Conductors Pvt. Ltd. Rs. 2307.67 Lacs (Previous Year 1440.17 Lacs) Vardhman Cables India Pvt. Ltd. Rs. 3.25 Lacs (Previous Year 169.63 Lacs)

Himani Jain Rs. 5 Lacs (Previous year Nil )

Deferred Tax Assets and Deferred Tax Liabilities have been offset as they relate to the same governing taxation laws.

11. There is no amount due and outstanding to be credited to Investor Education & Protection Fund during the year.

12. Certain debit and credit balances of the parties are subject to confirmations.

13. Previous year figures have been regrouped /rearranged wherever considered necessary.

14. Information required in terms of the Schedule III to the Companies Act, 2013 as complied by the Company is attached.

Mar 31, 2014

NOTE 1

Terms & rights attached to Equity shares and Preference Share

The Company has issued only one class of shares, i.e. equity shares of face value of Rs 10/- each.

NOTE 2

The Company has issued 4,81,307 Equity Shares in the last five years as preferential allotment.

3. Contingent Liabilities

Contingent Liabilities are not provided for in the accounts and are disclosed by way of notes herein below :

(Rs. in Lacs)

Sl. Nature of Liability March 31, 2014 March 31, 2013 No.

(a) Counter Guarantee given to 895.40 836.95 Company''s Bankers for the Guarantee given by them on behalf of the Company (Net of Advances)

4. The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at 31 March, 2014. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Gratuity:

As per actuarial valuations the Present Value of Obligation is Rs. 74.92 Lacs and the Fair Value of Plan Assets is of Rs. 14.84 Lacs and the Net Gratuity Liability is Rs. 66.08 Lacs as on 31st March, 2014.

Leave Encashment:

As per actuarial valuations the Present Value of Obligation is Rs. 6.93 Lacs and the Fair Value of Plan Assets is of Rs. Nil and the Net Leave Encashment Liability is Rs. 6.93 Lacs as on 31st March, 2014 and is provided in the books of account.

5. In the opinion of Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

6. The Company has manufactured various types of Cables during the year under review; therefore there are no separate reportable segments as per Accounting Standard 17.

7. Leases :

i) The disclosure under Accounting Standard - 26 (Intangible Assets) :-

The Company has no Intangible Asset as on 31.03.2014.

ii) Disclosure under AS-19 (Leases) :-

All operating leases entered into by the Company are cancelable on giving notice of one to three months. As per AS-19 (Leases), the disclosure requirements for operating leases of the Company are as follows:

(a) the total of future minimum lease payments under non-cancellable operating leases for each of the following periods:

(i) not later than one year;

(ii) later than one year and not later than five years;

(iii) later than five years;

(b) the total of future minimum sublease payments expected to be received under non-cancellable subleases at the balance sheet date;

* Not Applicable

(c) Lease payments recognized in the statement of profit and loss for the period, with separate amounts for minimum lease payments and contingent rents;

* Details of lease payments recognised in the statement of profit and loss for the period are as per Clause 1 (a) here in above and there are no contingent rents.

(d) Sub-lease payments received for (or receivable) recognized in the statement of profit and loss for the period;

* Not Applicable

(e) a general description of the lessee''s significant leasing arrangements including, but not limited to, the following:

(i) the basis on which contingent rent payments are determined;

(ii) the existence and terms of renewal or purchase options and escalation clauses; and

(iii) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing.

* Not Applicable

8. Trade Payables include an amount of Rs. 0.69 (Previous year Rs. 3.02 Lacs) being amount payable to Micro, Small & Medium Enterprises Development Act, 2006, including balances exceeding Rs. One Lakh in aggregate. The outstanding exceeding Rs. 1.00 lac for a period in excess of 45 days at balance sheet date is nil.

The details of MSME dues have been furnished to the extent such parties have been identified by the Company based on information made available by them.

Notes:

a) Remuneration paid to :

Mr. Amit Jain Rs. 18.00 Lacs (Previous Year Rs. 16.50 Lacs)

Mr. V. K. Gupta Rs. 6.00 Lacs (Previous Year Rs. 6.00 Lacs)

b) Interest paid / payable to :

Mr. Amit Jain Rs. 10.24 Lacs (Previous Year Rs. 77.36 Lacs)

c) Transactions in Unsecured Loans Received during the year with;

Amit Jain Rs. 180.84 Lacs (Previous Year Rs. 151.48 Lacs)

Himani Jain Rs. Nil (Previous Year Rs. 2.50 Lacs)

Parag Jain Rs. Nil (Previous Year Rs. 1.25 Lacs)

Wireco (India) Rs. 0.01 Lacs (Previous Year Rs. 27.14 Lacs)

d) Transactions in Unsecured Loans Received paid back during the year with;

Amit Jain Rs. 604.92 Lacs (Previous Year Rs. 213.78 Lacs)

Himani Jain Rs. Nil (Previous Year Rs. 2.50 Lacs)

Parag Jain Rs. Nil (Previous Year Rs. 1.25 Lacs)

Wireco (India) Rs. 0.01 Lacs (Previous Year Rs. 27.14 Lacs)

9. There is no amount due and outstanding to be credited to Investor Education & Protection Fund during the year.

10. The letters for Balance Confirmation were sent to all parties against which no objection has been received from the parties. Hence, balances in the books of accounts have been considered.

11. That Fixed deposits with more than twelve months maturity have been classified under the head "Other Non Current Assets" and Security Deposits have been classified under the head "Short Term Loans and Advanes".

12. Previous year figures have been regrouped /rearranged wherever considered nec- essary.

13. Information required in terms of part IV of the Schedule VI to the Companies Act, 1956 as complied by the Company is attached.

Mar 31, 2013

The Financial Statements are prepared under the historical cost convention, on going concern concept and in compliance with the relevant accounting principles, accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956. The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realization in respect of incomes.

1. Contingent Liabilities

Contingent Liabilities are not provided for in the accounts and are disclosed by way of notes herein below :

2. The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at 31 March, 2013. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Gratuity :

As per actuarial valuations the Present Value of Obligation is Rs. 80.85 Lacs and the Fair Value of Plan Assets is of Rs. 13.90 Lacs and the Net Gratuity Liability is Rs. 66.95 Lacs as on 31st March, 2013 and out of Net Liability of Gratuity Rs. 64.17 relating to the period up to 31st March 2012 has been adjusted against revenue reserve and surplus.

Leave Encashment :

As per actuarial valuations the Present Value of Obligation is Rs. 7.18 Lacs and the Fair Value of Plan Assets is of Rs. Nil and the Net Leave Encashment Liability is Rs. 7.18 Lacs as on 31st March, 2013 is provided in the books of accounts.

3. In the opinion of Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

4. Share Application Money

Amit Jain, in the capacity of promoter director was allotted 168324 Equity shares of the Company subsequent to the conversion of first tranche of 160308 warrants out of total 328632 Convertible Warrants at a price of Rs. 25.76/- per convertible warrant, which were allotted in the Extra Ordinary General Meeting held on 28th February, 2011 in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements), 2009 read with SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011. The conversion option was exercised in the board meeting held on 30th July, 2012.

Accordingly, the amount of share capital is enhanced by Rs. 1683240/- (168324 Equity Shares of the Face Value of Rs. 10/- each) and share premium account is added with an amount of Rs. 26,52,786/- (168324 X Rs. 15.76/-).

5. The Company has manufactured various types of Cables during the year under review; therefore there are no separate reportable segments as per Accounting Standard 17.

6. Leases:

i) The disclosure under Accounting Standard Â 26 (Intangible Assets) :-

The Company has no Intangible Asset as on 31.03.2013.

ii) Disclosure under AS-19 (Leases) :-

All operating leases entered into by the Company are cancelable on giving notice of one to three months. As per AS-19 (Leases), the disclosure requirements for operating leases of the Company are as follows:

(a) the total of future minimum lease payments under non-cancellable operating leases for each of the following periods:

(i) not later than one year;

(ii) later than one year and not later than five years;

(iii) later than five years;

(b) the total of future minimum sublease payments expected to be received under non- cancellable subleases at the balance sheet date;

l Not Applicable

(c) Lease payments recognized in the statement of profit and loss for the period, with separate amounts for minimum lease payments and contingent rents;

l Details of lease payments recognised in the statement of profit and loss for the period are as per Clause 1(a) here in above and there are no contingent rents.

(d) Sub-lease payments received for (or receivable) recognized in the statement of profit and loss for the period;

l Not Applicable

(e) a general description of the lessee''s significant leasing arrangements including, but not limited to, the following:

(i) the basis on which contingent rent payments are determined;

(ii) the existence and terms of renewal or purchase options and escalation clauses; and

(iii) restrictions imposed by lease arrangements, such as those concerning divi- dends, additional debt and further leasing. l Not Applicable

7. Trade Payables include an amount of Rs. 3,02,047/- (Previous year Rs. 8,47,478/-) being amount payable to Micro, Small & Medium Enterprises Development Act, 2006, including balances exceeding Rs. One Lakh in aggregate. The outstanding exceeding Rs. 1.00 lac for a period in excess of 45 days at balance sheet date is nil.

The details of MSME dues have been furnished to the extent such parties have been identified by the Company based on information made available by them.

8. RELATED PARTY TRANSACTIONS AS PER ACCOUNTING STANDARD 18:

I. Key Managerial Personnel

Mr. Amit Jain Managing Director

Mr. V.K. Gupta Director

II. Parties in which the Key Managerial Personnel/ Directors of the Company are interested :

M/s. Wireco (India) - A proprietorship concern of Mr. Pyare Lal Khanna, director of the company.

III. Relatives of the Key Managerial Personnel/ Directors of the Company:

Mr. Parag Jain, Mrs. Himani Jain.

9. There is no amount due and outstanding to be credited to Investor Education & Protection Fund during the year.

10. The letters for Balance Confirmation were sent to all parties against which no objection has been received from the parties. Hence, balances in the books of accounts have been considered.

11. Previous year figures have been regrouped /rearranged wherever considered necessary.

12. Information required in terms of part IV of the Schedule VI to the Companies Act, 1956 as complied by the Company is attached.

Mar 31, 2011

1. Contingent Liabilities

Contingent Liabilities are not provided for in the accounts and are disclosed by way of notes herein below: (Rs. in Lacs)

Sl. No. Nature of Liability March 31,2011 March 31, 2010

(a) Counter Guarantee given to Company's 354.08 357.87 Bankers for the Guarantee given by them on behalf of the Company (Net of Advances)

(b) Liability in respect of gratuity and leave 63.34 65.79 encashment

2. In the opinion of Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

3. The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at 31 March, 2011. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Gratuity:

As per actuarial valuations the Present Value of Obligation is Rs. 75.52 Lacs and the Fair Value of Plan Assets is of Rs. 12.70 Lacs and the Net Gratuity Liability is Rs. 62.82 Lacs as on 31st March, 2011 is yet to be provided in the books of accounts.

Leave Encashment:

As per actuarial valuations the Present Value of Obligation is Rs. 5.49 Lacs and the Fair Value of Plan Assets is of Rs. Nil and the Net Leave Encashment Liability is Rs. 5.49 Lacs as on 31st March, 2011; Rs. 4.97 lacs is provided in the books of accounts and Rs.0.52 Lacs yet to be provided in the books of accounts.

*As the Company is having inadequate profits, the remuneration so paid is in accordance with the provisions of Clause A of section II Part II of Schedule XIII and hence not restricted to limit of 5% of Net Profit under Section 309.

As depicted in Table "B" above, the effective capital of the Company is between the limits of Rupees 5 Crores or more but less than Rupees 25 Crore, therefore a managerial person can be paid Rs. 15.00 Lacs (i.e. Rs. 1.25 Lacs per month. Accordingly Mr. Amit Jain, the Managing Director of the Company, has been paid a total remuneration of Rs. 15.00 Lacs during the year under review in compliance to the aforesaid provisions of Schedule XIII of the Companies Act, 1956.

** During the Financial Year 2010-11, no commission was paid to Mr.Vijay Kumar Gupta (previous year Rs. 5,65,899/-). The commission so paid to Mr. Vijay Kumar Gupta during previous year for Rs. 5,65,899/- (for rendering services of professional nature) was in excess of limits of 1% by Rs. 3,61,437/- (i.e. Rs. 5,65,899 less Rs. 2,04,462) for maximum commission payable to Non-Executive Directors under Section 309 of the Companies Act, 1956. The excess amount so paid to him is still to be recovered from him under Section 309(5A) of the Companies Act, 1956.

4. Share Application Money

In accordance with the provisions of SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2009, Section 81(1A) of the Companies Act 1956, In-principle approval of BSE and other applicable laws & pursuant to the approval of the Members of the Company obtained in the Extra-Ordinary General Meeting held on 28th February 2011, the Board of Directors of the Company has allotted 152675 Equity Shares and 328632 convertible Warrants at a price of Rs. 25.76/- per share /convertible warrant to Mr. Amit Jain in the capacity of promoter on 30th March 2011. Accordingly, the amount of share capital is enhanced by Rs. 15,26,750/- (152675 Equity Shares of the Face Value of Rs. 10/- each) & share premium account is added with an amount of Rs. 24,06,158/- (152675 X Rs. 15.76/-).

Out of the total share application money of Rs. 100.00 Lacs paid by Mr. Amit Jain in the previous year, the Company has adjusted 25% of Rs. 25.76/- i.e. Rs. 6.44/- per share warrant towards the application money received against issue of 328632 convertible warrants to him as per the provisions of SEBI ICDR Regulations and the balance being shown under Share Application Account.

5. The Company has manufactured various types of Cables during the year under review; therefore there are no separate reportable segments as per Accounting Standard 17.

6. Leases:

i) The disclosure under Accounting Standard Ã 26 (Intangible Assets):-

The Company has no Intangible Asset as on 31.03.2011.

ii) Disclosure under AS-19 (Leases):-

All operating leases entered into by the Company are cancelable on giving notice of one to three months. As per AS-19 (Leases), the disclosure requirements for operating leases of the Company are as follows:

(a) the total of future minimum lease payments under non-cancellable operating leases for each of the following periods:

(i) not later than one year;

(ii) later than one year and not later than five years;

(iii) later than five years;

(b) the total of future minimum sublease payments expected to be received under non- cancellable subleases at the balance sheet date;

- Not Applicable

(c) Lease payments recognized in the statement of profit and loss for the period, with separate amounts for minimum lease payments and contingent rents;

- Details of lease payments recognised in the statement of profit and loss for the period are as per Clause 1(a) here in above and there are no contingent rents.

(d) Sub-lease payments received for (or receivable) recognized in the statement of profit and loss for the period;

- Not Applicable

(e) a general description of the lessee's significant leasing arrangements including, but not limited to, the following:

(i) the basis on which contingent rent payments are determined;

(ii) the existence and terms of renewal or purchase options and Escalation clauses; and

(iii) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing. - Not Applicable

7. Sundry Creditors include an amount of Rs. 78,93,432/- (Previous year Rs. 33,49,793/) being amount payable to Small Scale Industrial Undertakings (SSI) as defined under Industrial (Development and Regulation) Act, 1951, including balances exceeding Rs. One Lakh in aggregate. That outstanding exceeding Rs. 1.00 lacs for a period in excess of 45 days at the date of Balance sheet is nil.

The details of SSI dues have been furnished to the extent such parties have been identified by the Company based on information available.

8. RELATED PARTY TRANSACTIONS AS PER ACCOUNTING STANDARD 18:

I. Key Managerial Personnel

Mr. Amit Jain Managing Director

II. Parties in which the Key Managerial Personnel/ Directors of the Company are interested:

a. Wireco (India)- A proprietorship concern of Mr. Pyare Lal Khanna

III Relatives of Key Managerial Personnel:

a. Mr. Parag Jain - Brother

b. Mrs. Kshama Jain- Brother's Wife

Notes:

a) Remuneration paid to:

Mr. Amit Jain Rs. 15.00 Lacs (Previous Year Rs. 11.87 Lacs)

b) Commission paid in Professional capacity to:

Mr. V. K. Gupta Rs. Nil (Previous Year Rs. 5.66 Lacs.

c) Interest paid / payable to:

Wireco (India) Rs. 10.05 Lacs (Previous Year Rs. 11.94 Lacs)

d) Investments made into:

CMI Telecom Limited Rs. Nil (Previous Year Rs. 4.99 Lacs)

e) Transactions in Unsecured Loans Received during the year with;

Amit Jain Rs. 236.65 Lacs (Previous Year Rs. 780.97 Lacs)

Kshama Jain Rs. 17.00 Lacs (Previous Year Rs. Nil)

Wireco (India) Rs. 19.03 Lacs (Previous Year Rs. 132.00 Lacs)

f) Transactions in Unsecured Loans Received paid back during the year with; Amit Jain Rs. 110.55 Lacs (Previous Year Rs. 540.10 Lacs) Kshama Jain Rs. 17.00 Lacs (Previous Year Rs. 62.75 Lacs) Parag Jain Rs. Nil (Previous Year Rs. 47.96 lacs) Wireco (India) Rs.63.06 Lacs (Previous Year Rs. 136.50 Lacs)

9. There is no amount due and outstanding to be credited to Investor Education & Protection Fund during the year.

10. Sundry Debtors, Sundry Creditors, Loans & Advances and other advances are taken as per books subject to confirmation from parties.

11. Previous year figures have been regrouped /rearranged wherever considered necessary.

12. During the year the wholly owned subsidiary CMI Telecom Ltd., ceased to be the subsidiary of the Company and hence the Company does not have any subsidiary company as on March 31,2011 and accordingly no consolidated accounts under Accounting Standard 21 are prepared

13. Information required in terms of part IV of the Schedule VI to the Companies Act, 1956 as complied by the Company is attached.

Mar 31, 2010

1. Contingent Liabilities

Contingent Liabilities are not provided for in the accounts and are disclosed by way of notes herein below: (Rs. in Lacs)

Sl. No.Nature of Liability March 31, March 31, 2010 2009

(a)Counter Guarantee given to Companys Bankers for 357.87 418.85 the Guarantee given by them on behalf of the Company (Net of Advances)

(b)Liability in respect of gratuity and leave encashment 65.79 42.49

(c)Liability in respect to Sales Tax Demand for the Nil 4.07 financial year 2005-06

2. In the opinion of Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities has been made.

3. The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at 31 March, 2010. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Gratuity:

As per actuarial valuations the Present Value of Obligation is Rs. 77.56 Lacs and the Fair Value of Plan Assets is of Rs. 13.02 Lacs and the Net Gratuity Liability is Rs. 64.54 Lacs as on 31st March, 2010 is yet to be provided in the books of accounts.

Leave Encashment:

As per actuarial valuations the Present Value of Obligation is Rs. 5.06 Lacs and the Fair Value of Plan Assets is Rs. Nil and the Net Leave Encashment Liability is Rs. 5.06 Lacs as on 31st March, 2010; Rs. 3.81 lacs is provided in the books of accounts and Rs. 1 25 lacs yet to be provided in the books of accounts.

4. Managerial Remuneration -

A. Calculation of Managerial Remuneration under Section 198 of the Companies Act, 1956:

*As the Company is having inadequate profits, the remuneration so paid is in accordance with the provisions of Clause A of section II Part II of Schedule XIII and hence not restricted to limit of 5% of Net Profit under Section 309.

As depicted in Table "B" above, the effective capital of the Company is between the limits of Rupees 5 Crores or more but less than Rupees 25 Crore, therefore a managerial person can be paid Rs. 15.00 Lacs (i.e. Rs. 1.25 Lacs per month. Accordingly Mr. AmitJain, the Managing Director of the Company, has been paid a total remuneration of Rs. 11.86 Lacs during the year under review in compliance to the aforesaid provisions of Schedule XIII of the Companies Act, 1956.

** Mr. Vijay Kumar Gupta, Director of the Company has been paid commission during the current year Rs. 5,65,899/- and previous financial year Rs. 1,44,033/-. During his tenure as Non- Executive Director in the financial year 2009-10, he has been paid commission (for rendering services of professional nature) to the tune ofRs. 5,65,899/- which is in excess of limits of 1% by Rs. 3,61,437/- (i.e. Rs. 5,65,899 less 2,04,462) for maximum commission payable to Non-Executive Directors under Section 309 of the Companies Act, 1956. The excess amount so paid to him shall be refunded back by him in compliance with the provisions of Section 309(5A) of the Companies Act, 1956.

Directors Remuneration as approved by the shareholders and within the limits prescribed under Schedule XIII to the Companies Act, 1956:-

5. Share Application Money

An Extra-ordinary General Meeting of the Members of the Company was held as on 2nd February, 2010 for allotment of shares to Mr. Amit Jain, the existing promoter on preferential basis. Out of unsecured loan infused upto 31sl March 2010 by Mr. Amit Jain, the existing promoter and Managing Director, a sum of Rs. 100.00 lacs has been treated as Share Application Money. This is still pending with respect to the said preferential allotment of shares to Mr. Amit Jain. The balance amount payable, if any, on the equity shares on the re-computation of price as per the pricing criteria under the ICDR Regulations shall be paid by Managing Director within the prescribed time.

6. Foreign Currency Receipts & Expenditure - Nil

7. The Company has manufactured various types of Cables during the year under review; therefore there are no separate reportable segments as per Accounting Standard 17.

8. Leases:

i) The disclosure under Accounting Standard - 26 (Intangible Assets):-

The Company has no Intangible Asset as on 31.03.2010.

ii) Disclosure under AS-19 (Leases):-

All operating leases entered into by the Company are cancelable on giving notice of one to three months. As per AS-19 (Leases), the disclosure requirements for operating leases of the Company are as follows: (a) the total of future minimum lease payments under non-cancellable operating leases for each of the following periods:

(i) not later than one year;

(ii) later than one year and not later than five years;

(Hi) later than five years;

(b) the total of future minimum sublease payments expected to be received under non-cancellable subleases at the balance sheet date;

Not Applicable

(c) Lease payments recognized in the statement of profit and loss for the period, with separate amounts for minimum lease payments and contingent rents;

Details of lease payments recognised in the statement of profit and loss for the period are as per Clause 1(a) here in above and there are no contingent rents.

(d) Sub-lease payments received for (or receivable) recognized in the statement of profit and loss for the period;

Not Applicable

(e) a general description of the lessees significant leasing arrangements including, but not limited to, the following:

(i) the basis on which contingent rent payments are determined; (ii) the existence and terms of renewal or purchase options and escalation clauses; and (iii) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt and further leasing.

Not Applicable

9. Sundry Creditors include an amount of Rs. 33,49,793/- (Previous year Rs. 2,690,475/) being amount payable to Small Scale Industrial Undertakings (SSI) as defined under Industrial (Development and Regulation) Act, 1951, including balances exceeding Rs. One Lakh in aggregate. That outstanding exceeding Rs. 1.00 lacs for a period in excess of 45 days at the date of Balance sheet is nil.

The details of SSI dues have been furnished to the extent such parties have been identified by the Company based on information available.

10. RELATED PARTY TRANSACTIONS AS PER ACCOUNTING STANDARD 18:

I. Parties where control exists

CMI Telecom Limited Subsidiary Company

II. Key Managerial Personnel

Mr. Amit Jain Managing Director

III. Parties in which the Key Managerial Personnel/ Directors of the Company are

interested:

a. RKJ Construction Private Limited - Mr. Amit Jain is a Director

b. Imex Buildwell Private Limited - Mr. Amit Jain is a Director

c. Jurassic Park Real Estates Private Limited - Mr. Amit Jain is a Director

d. Pearl Regency Real Estates Private Limited - Mr. Amit Jain is a Director

e. Wireco (India) -A proprietorship concern of Mr. Pyare Lai Khanna

IV. Relatives of Key Managerial Personnel:

a. Mr. Parag Jain - Brother

b. Mrs. Kshama Jain- Brothers Wife

Notes:

a) Transactions in Job Work with;

Wireco India Rs. Nil (Previous Year Rs. 5.50 Lacs)

b) Remuneration paid to:

Mr Amit Jain Rs. 11.87 Lacs (Previous Year Rs 9.96 Lacs)

c) Commission paid in Professional capacity to:

Mr. V. K. Gupta 5.66 Lacs, out of which he can draw only Rs. 2.04 Lacs & the balance, shall be refunded back by him (Previous Year Rs. 1.445 Lacs)

d) Interest paid / payable to:

Wireco (India) Rs, 11.94 (Previous Year Rs. Nil)

e) investments made into:

CMI Telecom Limited Rs. 4.99 Lacs (Previous Year Rs. 4.99 Lacs)

f) Transactions in Unsecured Loans Received during the year with;

Amit Jain Rs, 780.97 Lacs (Previous Year Rs 12.52 Lacs) Wireco (India) Rs. 132.00 Lacs (Previous Year Rs. 86.39 Lacs)

g) Transactions in Unsecured Loans Received paid back during the year with;

Amit Jain Rs. 540.10 Lacs (Previous Year Rs. 51.72 Lacs) Kshama Jain Rs 62.75 Lacs (Previous Year Rs. (33.50 Lacs) Parag Jain Rs. 47,96 Lacs (Previous Year Rs. Nil) Wireco (India) Rs.136.50 Lacs (Previous Year Rs. 75.33 Lacs)

h) Transactions in Advances Received during the year with;

Wireco (India) Rs. Nil (Pi evicts Year Rs. 205 Lacs)

11 There is no amount due and outstanding to be credited to Investor Education & Protection Fund during the year,

12. Sundry Debtors, Sundry Creditors, Loans & Advances and other advances are taken as per books subject to confirmation from parties.

13. Previous year figures have been regrouped /rearranged wherever considered necessary.

14. The Consolidated financial statements of the Company and its Wholly Owned Subsidiary Company are annexed and no separate schedule and notes to accounts have been prepared for the same. The Schedules and notes to accounts annexed with the main balance sheet to be referred for any purposes.

15. Information required in terms of part IV of the Schedule VI to the Companies Act, 1956 as complied by the Company is attached.

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