Notes to Accounts of Delton Cables Ltd.

Mar 31, 2023

Terms and rights attached to equity shares

The Company has only one class of equity shares with a value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends 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 the remaining assets of the Company, after distribution of preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders. During the year ended Mar 31,2023, the amount of per share dividend recognized as distributions to equity shareholders is '' Nil (March 31,2022: '' Nil).”

The Comnpany has no holding, subsdiary, associate or joint venture

The Company has not issued bonus shares, bought back shares or issued shares for consideration other than cash during the period of five years immediately preceding the reporting date

The Company has not declared dividend in the financial year 2022-23 and 2021-22.

Nature and purpose of other reserves Securities premium reserve

Securities Premium reserve represents the amount received in excess of par value of securities (equity shares). The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

General reserve

General reserve represents the statutory reserve created in accordance with Indian Corporate law, wherein a portion of profit is required to be apportioned to such reserve. Under the Companies Act, 1956, it was mandatory to transfer a required amount to general reserve before a company could declare dividend, however, under the Companies Act, 2013, the transfer of any amount to general reserve is at the discretion of the Company.

Retained earnings

Retained earnings represent the undistributed profits of the Company.

(i) Vehicle Loans are secured against hypothecation of respective vehicles

(ii) The loan together with interest and other charges thereon are secured against mortgage of immovable property of promoters situated at 4801, Block-24, Bharat Ram Road ,Daryaganj,New Delhi-110002 and personal guarantee of directors.

(iii) Cash Credit,working capital demand loan, Letter of Credit and buyers credit are secured by pari passu charge under consortium arrangement by way of first charge on whole of movable properties, excluding such movable which has been permitted by the banks and including inventories & book debts of the company & equitable mortgage created on the properties at 17/4, Mathura Road, Faridabad & personal guarantee of the directors.

(iv) Loan from Banks and financial institutions are secured against the personal gaurantee of directors

(v) The company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.

(vi) The statements of book debts and inventory filed by the Company with banks/ financial institutions are in agreement with the books of accounts except as mentioned in note 48.

(vii) Borrowings from Banks / financial institutions have been utilized for specific purpose for which it was taken.

# Some of the Company’s borrowings have been contracted at floating rates of interest, which resets at short intervals. Accordingly, the carrying value of such borrowings (including interest accrued but not due) approximates fair value.

* The carrying amounts of trade receivables, trade payables, cash and cash equivalents, bank balances other than cash and cash equivalents, other current financial assets and other current financial liabilities, approximates the fair values, due to their short-term nature. The other non-current financial assets represents bank deposits (due for maturity after twelve months from the reporting date), security deposits, Insurance values etc., the carrying value of which approximates the fair values as on the reporting date.

There has been no transfers between Level 1, Level 2 and Level 3 for the years ended 31 March 2023 and 31 March 2022. Valuation technique used to determine fair value

The fair values for loans were calculated based on effective interest rate method using a current lending rate.

All of the resulting fair value estimates for unlisted equity securities, where the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.

Valuation processes

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Senior Management. Discussions on valuation and results are held between the Senior Management and valuation team atleast once every quarter in line with the Company’s quarterly reporting periods.

b. Financial risk management

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

• Credit risk ;

• Liquidity risk ;

• Market Risk - Foreign currency ; and

• Market Risk - Interest rate Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has authorized respective business Managers to establish the processes, who ensures that executive management controls risks through the mechanism of properly defined framework.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed by the business managers periodically to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

32. b. Financial risk management (continued)

(i) Credit risk

The maximum exposure to credit risks is represented by the total carrying amount of these financial assets in the Balance Sheet

Particulars	As at 31 March 2023	As at 31 March 2022
Trade receivables	5145.59	3,494.67
Cash and cash equivalents	135.88	143.41
Other bank balances other than cash and cash equivalents	363.86	374.84
Other financial assets	174.83	118.03

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations.

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with bank with high credit ratings assigned by domestic credit rating agencies. The loan represents security deposits given to suppliers, employees and others. The credit risk associated with such deposits is relatively low.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Company’s Management has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases bank references. Sale limits are established for each customer and any sales exceeding those limits require necessary approval.

Majority of the Company’s customers have been transacting with the Company from many years, and no impairment loss has been recognized against these customers. In monitoring customer credit risk, customers are reviewed according to their credit characteristics, including whether they are an individual or a legal entity, their geographic location, industry and existence of previous financial difficulties.

As per Ind AS 109, the Company makes allowance for doubtful trade receivable using simplified approach , significant judgement is used to estimate doubtful accounts as prescribed in IND AS 109 . In estimating doubtful accounts historical and anticipated customer performance are considered. Changes in the economy, industry, or specific customer conditions may require adjustments to the allowance for doubtful accounts recorded in financial statements. This is done on the basis of company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Based on the business environment in which the Company operates, management considers that the trade receivables (other than receivables from government departments) are in default (credit impaired) if the payments are more than 365 days past due however the Company based upon past trends determine an impairment allowance for loss on receivables outstanding for more than 365 days past due and the probability of recovery determined by the competent management.

The Company’s exposure to credit risk for trade receivables is as follows:

(ii) Liquidity risk

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

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under credit facilities.

Liquidity risk results from the Company’s potential inability to meet the obligations associated with its financial liabilities, for example settlement of financial debt and paying suppliers. The Company’s liquidity is managed by Company Treasury. The aim is to ensure effective liquidity management, which primarily involves obtaining sufficient committed credit facilities to ensure adequate financial resources and, to some extent, tapping a range of funding sources.

Net financial debt is used internally by Company Treasury to monitor the Company’s credit resources available. Net financial debt is the Company’s net interest-bearing debt, excluding interest-bearing assets, as these assets are not actively managed in relation to liquidity risk.

At 31 March 2023, net financial debt was Rs. 7622.56 (31 March 2022: Rs.6540.82 ).

At 31 March 2023, the Company had total unutilised credit facilities of INR 111.99 (31 March 2022: INR 354.03), of which INR Nil (31 March 2022: INR Nil) was non-current credit facilities. Credit resources available consist of the unutilised credit facilities, bank balances and cash and cash equivalents of INR 652.52 (31 March 2022: INR 874.19).

Exposure to liquity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The contractual cash flow amounts are gross and undiscounted, and includes interest accrued but not due on borrowings.

The inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to derivative financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity.

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

A. Interest rate risk

Interest rate risk is the risk that 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 interest rates relates primarily to the Company’s borrowings with floating interest rates.

Exposure to interest rate risk

The Company’s interest rate risk arises majorly from the term loan carrying floating rate of interest. These obligations exposes the Company to cash flow interest rate risk. The exposure of the Company’s borrowing to interest rate changes as reported to the management at the end of the reporting period are as follows:

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other currencies from the Company’s operating, investing and financing activities.

A reasonably possible strengthening (weakening) of the Indian Rupee against below currencies at 31 March 2022 and 31 March 2021 would have affected the measurement of financial instruments denominated in foreign currency and affected Statement of Profit and Loss by the amounts shown below. This analysis is peformed on foreign currency denominated monetary financial assets and financial liabilities outstanding as at the year end. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Capital Management

The primary objective of the management of the Company’s capital structure is to maintain an efficient mix of debt and equity in order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to pursue business opportunities and adequate access to liquidity to mitigate the effect of unforeseen events on cash flows. Management also monitors the return on equity.

The Board of directors regularly review the Company’s capital structure in light of the economic conditions, business strategies and future commitments.

For the purpose of the Company’s capital management, capital includes issued share capital, securites premium and all other equity reserves. Debt includes term loan.

33. Segment reporting

A. Basis for Segment reporting

Factors used to identify the entity’s reportable segments, including the basis of organisation

The company is engaged in manufacturing of Wire, cable and Switchgears. Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM is considered to be the Board of Directors who makes strategic decisions and is responsible for allocating resources and assessing performance of the operating segments. The CODM has determined only one operating segment.

Geographical Segments

The geographical segment have been identified on the basis of the location of customers. The total market of the Company can be segregated into domestic and overseas market.

(i) Leave obligations

The leave obligations cover the Company’s liability of earned leave.

The amount of the provision of Rs. 4.14 lacs (March 31,2022 : Rs. 6.38 lacs) is presented as current since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12 months.

(ii) Post-employment obligations a) Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employee’s last drawn basic salary per month computed proportionately for 15 days’ salary multiplied with the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

(iii) Defined contribution plans

The Company also has certain defined contribution plans. Contributions are made to provident fund, employee pension scheme and employee’s state insurance scheme for employees as per regulations. The contributions are made to registered funds administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual or any constructive obligation.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumption the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

The Company ensures that investment positions are managed within an asset/liability matching (ALM) framework that has been developed to achieve long term investments that are in line with the obligations under employee benefit plans. Within this framework, the Company’s ALM objective is to match assets to the Gratuity obligations by investing in Plan assets with recognised gratuity trust which has taken a gratuity policy with the Life Insurance Corporation of India (LIC) with maturities that match the benefit payments as they fall due.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes to manage its risk from previous periods.

The Company believes the LIC policy offers reasonable returns over the long-term with an acceptable level of risk.

The plan asset mix is in compliance with the requirements of the local regulations.

The Company has agreed that it will aim to eliminate the deficit in defined benefit gratuity plan over the coming years. Funding levels are monitored on an annual basis and the current agreed contribution rate as advised by the LIC. The Company considers that the contribution rates set at the last valuation date are sufficient to eliminate the deficit over the coming years and that regular contributions, which are based on service costs, will not increase significantly.

39.	Contingent liabilities Claims / show cause notices against the Company disputed by the Company not acknowledged as debt:
	Particulars	As at	As at
		31 March 2023	31 March 2022
	(a) Income tax matters	124.22	124.22
	(b) Excise duty matters	-	39.75
	(c) Civil Suits	0.51	0.51
	(d) Guarantee issued by Banks (net of margin)	410.96	386.62
	(e) Sales Tax sureties given for third parties	-	0.80
	(f) Export obligation	54.98	-
	Total	590.67	551.90

The guarantees have been given in the ordinary course of business and the obligations are expected to be discharged accordingly and no liability is anticipated in these respects.

In respect of the above claims, notices and obligation against the Company which have arisen in the ordinary course of business, all available legal steps have been taken to protect the Company’s interest. Based on the status of these cases and as advised by Company’s advisors, wherever applicable, the management believes that the Company has strong chance of success and the existing provision would be sufficient to meet the liability if any arises on the Company.

40. Contingent Assets

Land admeasuring 9.25 acres was acquired by Haryana State Industrial & Infrastructure Development Corporation (HSIIDC) in earlier years and awarded an compensation of 50 lakhs per acre. The Company filed a petition for enhanced compensation before District Court Rewari on 07.06.2013. The District Court Rewari on 21.11.2018 passed an order and enhanced the amount of compensation to 67.12 lakh per acre which was duly received. The Company filed an appeal before the High Court of Punjab and Haryana on 20.02.2019. The said appeal was decided by the High Court of Punjab and Haryana vide its order dated 02.11.2021 and enhanced the compensation to 121.33 lakh per acre. The Company in pursuance of the order of High Court of Punjab and Haryana filed an execution petition before the Rewari District Court on 10.01.2022 to release the amount of enhanced compensation in favour of the Company. The said execution is pending before the District Court Rewari. The Company estimates to receive an amount close to 1923 lakhs against the said order consisting of basic enhanced compensation, interest and related recoveries as per the Land Acquisition Act,1894.

Further, the Company filed a Special Leave Petition (SLP) before the Hon’ble Supreme Court on 28.02.2022 against the order of the High Court of Punjab and Haryana claiming enhanced compensation aggregating to Rs. 222.15 lakhs per acre. The said SLP has been admitted by the Hon’ble Supreme Court.

41. The Company has established a comprehensive system of maintenance of information and documents that are required by the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961.

49. The Company during the year through resolution passed at the Extra Ordinary General Meeting held on March 24, 2023 adopted a new set of Memorandum of association in line with the Companies Act, 2013. The existing clause III, “The main objects to be pursued by the Company on its incorporation are” were substituted and divided by the new sub headings “Clause III (A) - The objects to be pursued by the Company on its incoporation” and clause III (B) - Matters which are necessary for furtherance for the objects specified in Clause III (A). The existing liability clause IV was substituted in line with the Companies Act 2013, “Clause IV - The liability of the member(s) is limited and this liability is limited to the amount unpaid, if any, on the shares held by them. The requisite compliances and forms were filed with the Ministry of Corporate Affairs (MCA) on May 18, 2023 and May 23, 2023.

50. The Company during the year made an assessment and have decided to opt for the new tax regime under Section 115BAA of the Income Tax Act, 1961. The section provides a domestic company with an option to pay tax at a rate of 22% (effective rate of 25.168%). The lower rate shall be applicable subject to certain conditions, including that the total income should be computed without claiming specific deduction or exemptions. Minimum Alternate Tax (MAT) is not payable / adjustable under the said scheme. Accordingly the Company during the year reversed deferred tax asset relating to Mat Credit Entitlement of Rs. 1016.41 lakhs from its books of accounts. The Company has filed the forms 10IC with the Income Tax authorites on May 22, 2023 for the same.

51. The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2023 and March 31,2022.

There are no undisclosed incomes that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

In terms of Section 135 of The Companies Act, 2013, the Company is required to constitute a corporate social responsibility (CSR) Committee of the Board of Directors and the Company has to spend 2% of the average net profits of the Company’s three immediately preceding financial year calculated as per section 198 of the Companies Act 2013.

Previous year’s figures have been rearranged, where necessary, to conform to the current year’s classification.

---

Mar 31, 2015

Note 1

Corporate Information

Delton Cables Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act,1956. Its shares are listed on BSE in India. The company has three manufacturing units located in Dharuhera, Faridabad and Noida. The company is engaged in manufacturing and supplying of wires and cables. Delton is a prime supplier to the Power, Telecommunication, Railways, Steel and Mining sectors in India and has also firmly established itself in the International market.

Note 2

Basis of preparation

The financial statements have been prepared in accordance with applicable accounting standards and relevant presentation requirements of the Companies Act, 2013 and are based on the historical cost convention. The financial statements have been prepared on accrual basis and under the historical cost convention, except for certain fixed assets which are carried at revalued amounts.

Note 3 : Share capital

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 in Indian rupees.

During the year ended March 31,2015, the amount of per share dividend recognized as distributions to equity shareholders is Rs. NIL (March 31,2014:Rs. NIL).

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.

(ii) Defined Benefit plans

The employee's gratuity fund scheme managed by Life Insurance Corporation is a defined benefit funded plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to built up the final obligation. The obligation for leave encashment is a defined unfunded benefit plan, which is recognized in the same manner as gratuity.

b) Details of assets taken on operating leases

The Company has entered into separate Cancellable Operating lease for Premises. The tenure of these agreements range between three to five years. The amount of lease rentals paid of Rs. 8,587,678 (March 31,2014: Rs. 5,989,689) has been charged under the head " Rent " in the Statement of Profit and Loss.

Note 4 : Segment Reporting

The company is engaged in manufacturing of Wire, cable and Switchgears. The operations are governed by different set of risk and returns. However, switchgear segment does not qualify as reportable segment in context of the Accounting Standard - 17 on "Segmental Reporting"notified by Companies (Accounting Standard) Rules,2006. The said treatment is in accordance with the guiding principles enunciated in the said Accounting Standard.

Note 5 : Disclosure of Related parties/ Related parties transactions : a) List of Related Parties and relationships

i) Enterprises having Significant influence of KMP's

Delton International Ltd. Vishranti Trading Enterprises Ltd. Saneh Industrial Investments Ltd. B & M Trading & Investment Company Ltd. Delton Cable Company Viga Trade Solutions Pvt.Ltd. Ram Kumar Gupta & Sons Ltd. Allied Promoters Ltd. Shrimati Shanti Devi Charity Trust

Note: Only the enterprises having the transactions during the year are disclosed.

ii) Key Management Personnel

Mr. V.K. Gupta, Chairman and Managing Director Mr. Vivek Gupta, Joint Managing Director Mr. Manoj Sharma, Chief Financial Officer Mr. Jitender Kumar, Company Secretary

iii) Relative of Key Management Personnel

Ms. Deepti Gupta (Daughter of V.K Gupta, Director)

During the year, compulsory acquisition of Dharuhera land was done by NHAI as per the notification Dt. 21.02.2013 issued by Ministry of Road Transport and Highways under NHAI Act and the company had received lumpsum consideration of Rs. 99.68 Lakhs against this acquisition and the profit on the same has been disclosed under the Note 27 in Financial statement as 'Exceptional Items'.

Note 6:

In view of the management, the current asssets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31st March, 2015

As per Note No.12 of Part "C" of the Schedule II to the Companies Act, 2013 the carrying amount of the assets as at April 1,2014 has been depreciated as follows:

a) Carrying value of asset has been depreciated over the remaining useful life of assets and recognized in the Statement of Profit & Loss.

b) In case where the remaining useful life of an asset is nil the carrying amount of the assets after retaining the residual value has been recognized

in the opening balance of retained earnings.

The Company has wef 1st April 2014, computed depreciation in accordance with the useful life of the Fixed Assets as per schedule II of the Companies Act,2013. Consequently Depreciation charged for the year is lower by Rs. 1,372,289 and carrying value of the assets amounting to Rs. 3,136,128 (Net of Deferred Tax Rs. 1,402,408) after retaining the residual value, whose remaining useful life is nil has been adjusted from the opening balance of Retained Earnings.

Note 7:

Sundry debtors, creditors and loans and advances are subject to confirmation.

Note 8:

Figures are rounded to the nearest rupee.

Note 9:

Figures for the previous year have been reclassified/regrouped wherever considered necessary.

---

Mar 31, 2014

Note 1

Corporate Information

Delton Cables Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on BSE and DSE. in India. The company has four manufacturing units located in Dharuhera, Najafgarh, Faridabad and Noida. The company is engaged in manufacturing and supplying of wires and cables. Delton is a prime supplier to the Power, Telecommunication, Railways, Steel and Mining sectors in India and has also firmly established itself in the International market.

Note 2

Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except for certain fixed assets which are carried at revalued amounts.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

Note 3 : Share capital

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 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.

During the year ended March 31, 2014, the amount of per share dividend recognized as distributions to equity shareholders is Rs. NIL (March 31, 2013: Rs. NIL).

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.

Note 4 : Defined Benefit plans

The employee's gratuity fund scheme managed by Life Insurance Corporation is a defined benefit funded plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to built up the final obligation. The obligation for leave encashment is a defined unfunded benefit plan, which is recognized in the same manner as gratuity.

Note 5 : Disclosure required by Accounting Standard (AS)-29 "Provisions, Contingent Liabilities and Contingent Assets

(Amount in Rs.)

For the For the year ended year ended Disclosures in respect of Contingent on March 31 on March liabilities 2014 31,2013

Claims against the company not acknowledged as debts

Sales Tax 15,813,547 19,631,595

Civil Suits 563,230 180,574

Excise Laws 1,029,000 1,029,000

LADT 5,732,507 5,732,507

Guarantee issued by Banks 143,482,565 178,718,761 (net of margin)

Letter of Credit 248,553,769 155,878,073

Sales Tax sureties given for 80,000 80,000 third parties 415,254,618 361,250,510

Note 6 : Segment Reporting

The company is engaged in manufacturing of Wire, cable and Switchgears. The operations are governed by different set of risk and returns. However, switchgear segment does not qualify as reportable segment in context of the Accounting Standard - 17 on "Segmental Reporting"notified by Companies (Accounting Standard) Rules, 2006. The said treatment is in accordance with the guiding principles enunciated in the said Accounting Standard.

Note 7 : Disclosure of Related parties/ Related parties transactions :

a) List of Related Parties and relationships

i) Enterprises having Significant influence of

Delton International Ltd.

Vishranti Trading Enterprises Ltd.

Saneh Industrial Investments Ltd.

B&M Trading & Investment Company Ltd.

Delton Cable Company Viga Trade Solutions Pvt.Ltd.

Ram Kumar Gupta & Sons Ltd.

Allied Promoters Ltd.

Shrimati Shanti Devi Charity Trust

Note; Only the enterprises having the transactions during the year are disclosed.

ii) Key Management Personnel

Mr. V.K. Gupta

Mr. Vivek Gupta

iii) Relative of Key Management Personnel Ms.Deepti Gupta ( Daughter of V.K Gupta, Director)

Note 8:

In view of the management, the current asssets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31st March, 2014

Note 9:

Sundry debtors, creditors and loans and advances are subject to confirmation.

Note 10:

Figures are rounded to the nearest rupee.

---

Mar 31, 2013

Note 1

Corporate Information

Delton Cables Limited is a public company domiciled in India and incorporated under the provisions of the Comapnies Act, 1956. Its shares are listed on BSE and NSE. in India. The company has four manufacturing units located in Dharuhera, Najafgarh, Faridabad and Noida. The company is engaged in manufacturing and supplying of wires and cables.Delton is a prime supplier to the Power, Telecommunication, Railways, Steel and Mining sectors in India and has also firmly established itself in the International market.

Note 2

Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except for certain fixed assets which are carried at revalued amounts.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

NOTE 3 : SEGMENT REPORTING

The company is engaged in manufacturing of Wire, cable and Switchgears.The operations are governed by different set of risk and returns. However, switchgear segment doesnot qualify as reportable segment in context of the Accounting Standard -17 on "Segmental Reporting"notified by Companies (Accounting Standard) Rules,2006. The said treatment is in accordance with the guiding principles enunciated in the said Accounting Standard.

4. DISCLOSURE OF RELATED PARTIES/ BELATED PARTIES TRANSACTIONS: a. Name of the Related Parties and description of relationship

i) Enterprises having Significant influence of KMP''s Delton International Ltd.

Vishranti Trading Enterprises Ltd.

Saneh Industrial Investments Ltd.

B & M Trading & Investment Company Ltd.

Delton Cable Company

Viga Trade Solutions Pvt.Ltd.

Ram Kumar Gupta & Sons Ltd.

Allied Promoters Ltd.

Note: Only the enterprises having the transactions during the year are disclosed. ii) Key Management Personnel Mr. V.K. Gupta

Mr. Vivek Gupta ill) Relative of Key Management Personnel Ms. Deepti Gupta (Daughter of V.K Gupta, Director)

5. In view of the management, the current asssets, loans and advances have a value on realisation in the ordinary course of buisness at least equal to the amount at which they are stated in the balance sheet as at 31st March, 2013

6. Sundry debtors, creditors and loans and advances are subject to confirmation.

7. Derivative Contracts entered into by the company and outstanding as on 31st March 2013 for Hedging Currency and Interest Rate Related Risks:

(i) Nominal amount of derivatives including forward contracts entered into by the company and outstanding as on March

31,2013 amounts to Rs. 51,836,910 (March 31,2012: Rs.47,406,423). (ii) All Derivative contracts entered into by the company are for hedging purposes only. (iii) During the year the company has booked a gain of Rs.250,750 towards premium on forward exchange contracts. (March 31,2012: Rs. (310,263)).

8. Figures are rounded to the nearest rupee.

---

Mar 31, 2012

Corporate Information

Delton Cables Limited is a public company domiciled in Indian and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on BSE and NSE in India. The Company has for manufacturing units located in Dharuhera, Najafgarh, Faridabad and Noida. The company is engaged in manufacturing and supplying of wires and cables. Delton is a prime supplier to the Power, Telecommunication, Railways, Steel and Mining sectors in India and has also firmly established itself in the International market.

Note 1 Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except for certain fixed assets which are carried at revalued amounts.

The accounting policies adopted in the preparation of financial statements are cosistent with those of previous year, except for the change in accounting policy explained below.

a. Terms/rights attached to equity shares

The company has only one class of equity shares having per value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends 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.

During the year ended March 31, 2012, the amount of per share dividend recognized as distributions to equity shareholders is Rs.1.50 (March 31, 2011 : Rs. 1).

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.

a. Term loan from bank was taken during the financial year 2009-10 and carries interest @13% p.a. The loan is repayable is 48 monthly instalments -of Rs.389,583 alongwith the interest, from the date of loan and is secured by pari passu charge under consortium arrangement by way of second charge on whole of movable properties, excluding such movable which has been permitted by the banks and including inventories & book debts of the company & equitable mortgage created on the properties at 17/4, Mathura Road, Faridabad & personal guarantee of the directors.

b. Vehicle loans are secured against hypothecation of respective vehicles.

c. Finance lease obligation is secured by hypothecation of plant and machinery taken on lease.

d. Deposits from dealers carries an interest @ 7% p.a. repayable on cessation of business transactions with such dealer.

a. Cash Credit, working capital demand loan and bill discounting are secured by pari passu charge under construction arrangement by way of first charge on whole of movable properties, excluding such movable which has been permitted by the banks and including inventories & book debts of the company & equitable mortgage created on the properties at 17/4, Mathura Raod, Faridabad & personal guarantee of the directors. The cash credit and working capital loan is repayable on demand and carries interest @11.75% to 14.25 p. a.

b. Letter of Credit is repayable in maximum of 90 days and carries interest ranging from 8-10%

a) * It does not include any amount due to be transferred to Investor Education and Protection Fund.

b) The Company has not received information from vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

a) Deposits of Rs.39,045,948 (March 31, 2011 : Rs.42,416,465) are pledged as security for margin money with various banks.

b) Balances with Post Offices are pledged as security with excise department.

c) Other Current Bank Balances includes Rs.281,975 (March 31, 2011: Rs.281,975) standing due from Banaras State Bank Ltd. Consequent upon the scheme of amalgamation vide notification F. No. 15/02/2000- BOA (I) dated 19.06.2002 and F. No. 15.02.2000-b6a (II) dated 19.06.2002, the 85.85% of total assets and liabilities of erstwhile Banaras State Bank Ltd. have been taken over by the Bank of Baroda. As per the notice of Bank of Baroda, the unpaid balances due to company by Banaras State Bank Ltd. of Rs.95,430 will be paid on settlement of claims by the Deposit Insurance and Credit Gurantee Corporation of India (DICGCI) and balance amounting to Rs. 186,545 would be paid as and when assets classified as ‘not readily realizable' are realized. The interest on the above dues had not been provided for on account of uncertainty on the recoverability of the above dues. Since the amount is not yet settled and outstanding from long time, we have provided an amount of Rs.281,975 in the current year.

(ii) Defined Benefit plans -

The employee's gratuity fund scheme managed by Life Insurance Corporation is a defined benefit funded plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to built up the final obligation. The obligation for leave encashment is a defined unfunded benefit plan, which is recognized in the same manner as gratuity.

Note:

The estimate of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors on long term basis including supply and demand in the employment market

The amount of lease rentals paid of Rs. Nil (March 31. 2011 : Rs.25,500) has been charged under the head “Rent" in the Statement of Profit and Loss.

The Company has entered into seprate Cancellable Operating lease for Premises and Vehicles. The tenure of these agreement range between three to five years. The amount of lease rentals paid of Rs.4.850,352 (March 31, 2011 : Rs.4,548,986) has been charged under the head “Rent" the in Statement of Profit and Loss. -

NOTE 1 : SEGMENT REPORTING

The company is engaged in manufacturing of Wire, cable and Switchgears. The operations are governed by different set of risk and returns. '

However, swtichgear segment does not qualify as reportable in context of the Accounting Standard -17 on “Segmental Reporting “notified by Companies (Accounting Standard) Rules, 2006. The said treatment is in accordance with the guiding principles enunciated in the said Accounting Standard. ,

NOTE 2 : DISCLOSURE OF RELATED PARTIES/RELATED PARTIES TRANSACTION a) List of Related Parties and relationships

i) Associates Delton International Ltd.

Vishranti Trading Enterprises Ltd.

Saneh Industrial Investment Ltd.

B & M Trading & Investment Company Ltd.

Ram Kumar Gupta & Sons Ltd.

Delton Cable Company Srimati Shanti Devi Charitable Trust Element Arts (P) Ltd.

VIGA Trade Solutions (P) Ltd.

ii) Key Management Personal Mr. V. K. Gupta ,

Mr. Vivek Gupta

NOTE 3:

In view of the management, the current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31st March, 2012. .

NOTE 4:

Sundry debtors, creditors and loans and advances are subject to confirmation.

NOTE 5 :

Derivative Contracts entered into by the company and outstanding as on 31st March 2012 for Hedging Currency and Interest Rate Related Risks.

(i) Nominal amount of derivatives including forward contracts into by the company and outstanding as on March 31, 2012 - amounts to Rs.47,406,423 (March 31, 2011 : Rs.46,082,499).

(ii) . All Derivative contracts entered into by the company are for hedging purpose only.

(iii) During the year the company has booked expense Rs.310,263 towards premium on forward exchange contracts. (March 3'1, 2011 : Rs.85,492).

NOTE 6 :

Figure are rounded to nearest rupee.

NOTE 7

Till the year ended 31 March, 2011 the company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the company. The company has reclassifed previous year figures to conform to this year's classification.

---

Mar 31, 2011

1. Land, Building,Computers and Plant & Machinery purchased prior to 30th June 1985 were revalued by an approved valuer as on that date. The resultant surplus over the written down value amounting to Rs. 57,205,184 was charged to the gross block of the respective assets. Depreciation charge for the year includes Rs. 226,063 (Previous Year Rs.226,063), which is necessitated on account of revaluation of these fixed assets. An amount equivalent to the aforesaid additional depreciation charge is transfered to the credit of the Profit & Loss Account from revaluation of Fixed Assets.

2 Sundry Debtors

- are shown as net of claims of Rs. 11,262,275 (Previous year Rs. 11,735,521).

"- over six months unsecured and considered good in Schedule '8' includes old outstanding aggregating to Rs.10,173,725 (Previous year Rs.10,173,725)” due from customers for which no provision is considered necessary as the management is of the view that these are recoverable.

3 The Company has not received infromation from vendors regarding their status under Micro, Small and Medium Enterprises Devlopment Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

4 Cash & Bank Balances in schedule '9' includes Rs. 281,975 (P.Y. Rs. 281,975) standing due from Banaras State Bank Ltd..Consequent upon the scheme of amalgamation vide notification F. No. 15/02/2000-BOA (I) dated 19.06.2002 and F. No. 15.02.2000-BOA (II) dated 19.06.2002, the 85.85% of total assets and liabilities of erstwhile Banaras State Bank Ltd. have been taken over by the Bank of Baroda. As per the notice of Bank of Baroda, the unpaid balances due to company by Banaras State Bank Ltd. of Rs. 95,430 will be paid on settlement of claims by the Deposit Insurance and Credit Guarantee Corporation of India (DICGCI) and balance amounting to Rs. 186,545 would be paid as and when assets classified as 'not readily realizable' are realized.The interest on the above dues had not been provided, for on account of uncertainity on the recoverability of the above dues.

5 Contingent Liabilities not provided for

(a) (i) Guarantee issued by Banks 241,778,950 255,102,604

(ii) Letter of Credit 173,066,199 119,717,967

(iii) Sales Ta x sureties given for third 80,000 80,000 parties (iv) Counter Guarantee given to Directors 511,154,851 577,179,429

926,080,000 952,080,000

(b) Defined Benefit plans

The employee's gratuity fund scheme managed by Life Insurance Corporation is a defined benefit funded plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to built up the final obligation. The obligation for leave encashment is a defined unfunded benefit plan, which is recognized in the same manner as gratuity.

6 Lease

(i) Operating Lease

(a) The amount of lease rentals paid of Rs. 25,500 (P.Y. Rs.102,000) has been charged under the head "Rent and Lease Rent” in Schedule 15.

(b) The Company has entered into separate Cancellable Operating lease for Premises and Vehicles. The tenure of these agreements range between three to five years. The amount of lease rentals paid of Rs. 4,548,986 (P.Y. Rs.4,518,246) has been charged under the head "Rent and Lease Rent" in Schedule 15.

(c) The Company has Sub Leased premises on Cancellable Operating Lease. The aggregate amount of lease rentals received amounting to Rs. 37,200 (P.Y. 37,200) have been credited under the head "Miscellaneous Income” in Schedule 13.

Figure in brackets represents coressponding amount of previous year.

7 The company is engaged in manufacturing of Wire, cable and Switchgears.The operations are governed by different set of risk and returns. However, switchgear segment doesnot qualify as reportable segment in context of the Accounting Standard - 17 on "Segmental Reporting”notified by Companies (Accounting Standard) Rules, 2006. The said treatment is in accordance with the guiding principles enunciated in the said Accounting Standard.

8 Disclosure of Related parties/ Related parties transactions :

A. Name of the Related Parties and description of relationship

I. Associates Delton International Ltd.

Vishranti Trading Enterprises Ltd.

Saneh Industrial Investments Ltd.

B & M Trading & Investment Company Ltd.

Senor Microwave Pvt. Ltd.

Ram Kumar Gupta & Sons Ltd.

Delton Cable Company

Srimati Shanti Devi Charitable Trust

Abaskar Constructions (P) Ltd

Element Arts (P) Ltd

VIGA Trade Solutions (P) Ltd

II Key Management Mr. V.K. Gupta Personnel Mr. Vivek Gupta

Mr. S. S Malhotra

9 In view of the management, the current asssets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31st March, 2011.

10 Sundry debtors, creditors and loans and advances are subject to confirmation.

11 Derivative Contracts entered into by the company and outstanding as on 31st March 2011 for Hedging Currency and Interest Rate Related Risks:

(i) Nominal amount of derivatives including forward contracts entered into by the company and outstanding as on 31.03.11 amounts to Rs. 46,082,499 (Previous Year Rs. 10,241,754).

(ii) All Derivative contracts entered into by the company are for hedging purposes only. (iii) During the year the company has booked income Rs. 85,492 towards premium on forward exchange contracts. (Previous Year Rs. 261,011).

12 Figures are rounded to the nearest rupee.

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

---

Mar 31, 2010

1. Land, Building,Computers and Plant & Machinery purchased prior to 30th June 1985 were revalued by an approved valuer as on that date. The resultant surplus over the written down value amounting to Rs.57,205,184 was charged to the gross block of the respective assets. Depreciation charge for the year includes Rs. 226,063 (Previous Year Rs.226,063), which is necessitated on account of revaluation of these fixed assets. An amount equivalent to the aforesaid additional depreciation charge is transfered to the credit of the Profit & Loss Account from revaluation of Fixed Assets.

2 Sundry Debtors

- are shown as-net of claims of Rs.11,735,521 (Previous year Rs.9,981,759).

- over six months unsecured and considered good in Schedule 8 includes old outstanding aggregating to Rs. 10,173,725 (Previous year Rs. 10,173,725) due from customers for which no provision is considered necessary as the management is of the view that these are recoverable.

3 The Company has not received infromation from vendors regarding their status under Micro, Small and Medium Enterprises Devlopment Act,2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

4 Cash & Bank Balances in schedule 9 includes Rs. 281,975 (RY. Rs. 281,975) standing due from Banaras State Bank Ltd..Consequent upon the scheme of amalgamation vide notification FNo. 15/02/2000-BOA (I) dated 19.06.2002 and FNo. 15.02.2000-BOA (II) dated 19.06.2002, the 85.85% of total assets and liabilities of erstwhile Banaras State Bank Ltd. have been taken over by the Bank of Baroda. As per the notice of Bank of Baroda, the unpaid balances due to company by Banaras State Bank Ltd. of Rs .95,430 will be paid on settlement of claims by the Deposit Insurance and Credit Guarantee Corporation of India (DJCGCI) and balance amounting to Rs. 186,545 would be paid as and when assets classified as *not readily realizable are realized.The interest on the above dues had not been provided, for on account of uncertainity on the recoverability of the above dues.

* Notes: 1. The above remuneration is within the limit prescribed under the schedule XIII of the Companies Act, 1956.

5. Do not include contribution to gratuity fund , since the same are paid/determined for the company as a whole.

6 Contingent Liabilities not provided for

(a) (i) Guarantee issued by Banks 255,102,604 279,003,805

(ii) Letter of Credit 119,717,967 109,719,739

(iii) Sales Tax sureties given for third parties 80,000 80,000

(iv) Counter Guarantee given to Directors 577,179,429 746,481,456

952,080,000 1,135,285,000

(b) Claims against the company not ack nowledged as debt

(i) Sales Tax 14,183,088 6,921,822

(ii) Civil Suits 24,843,337 23,600,324

(iii) Income Tax 1,131,417 1,131,417

40,157,842 31,653,563

7 Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Nil (P.Y Rs. 1,050,650).

Note: The above amount have been debited under the head "Legal and Professional charges and service tax recoverable. 9 Employees Benefits

(b) Defined Benefit plans

The employees gratuity fund scheme managed by Life Insurance Corporation is a defined benefit funded plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to built up the final obligation. The obligation for leave encashment is a defined unfunded benefit plan, which is recognized in the same manner as gratuity.

Notes : The estimate of rate of escalation in salary considered in actuarial valution, taken into account inflation, seniority, promotion and other relevant factors on long term basis including supply and demand in the employment market.

8 Lease

(i) Operating Lease

(a) The Company has taken Office Premise on Operating Lease. The tenure of lease is 3 years with the initial lock in period of 1 year. The lock in period commences from December 2008 and extends upto November 2009. The amount payable in pursuance to such lock in period is Nil (P.Y Rs 68,000) The amount of lease rentals paid of Rs 102,000 (P. Y Rs.34,000) has been charged under the head "Rent and Lease Rent" in Schedule 15.

(b) The Company has entered into separate Cancellable Operating lease for Premises and Vehicles. The tenure of these agreements range between three to five years.

The amount of lease rentals paid of Rs 4,518,246 (P. Y Rs.4,156,324) has been charged under the head " Rent and Lease Rent" and " Travelling and Conveyance" in Schedule 15.

( c) The Company has Sub Leased premises on Cancellable Operating Lease. The aggregate amount of lease rentals received amounting to Rs. 37,200 (RY 37,200) have been credited under the head "Miscellaneous Income" in Schedule 13.

(ii) Finance Lease

(a) In respect of Fixed Assets acquired on finance lease, the minimum lease rentals outstanding as on 31st March, 2010 are as follows:

9 Earnings in foreign exchange

10 Expenditures in Foreign Exchange (on payment basis)

11 CIF value of imports

12 Prior period Income/Expenditures includes

13 Details of Raw Materials Consumed

14. Percentage of Raw Material Consumption

15 Sales (Manufactured Goods)

16 The company is also in the business of manufacturing "Switchgears". This segment doesnot qualify as reportable segment in context of the Accounting Standard - 17 "Segmental Reporting"notified by Companies (Accounting Standard) Rules,2006. Hence disclosure as required by the said standard is not required.

17 Disclosure of Related parties/ Related parties transactions :

A. Name of the Related Parties and description of relationship

I. Associates Delton International Ltd.

Vishranti Trading Enterprises Ltd.

Saneh Industrial Investments Ltd.

B & M Trading & Investment Company Ltd.

Senor Microwave Pvt. Ltd.

Ram Kumar Gupta & Sons Ltd.

Delton Cable Company

Srimati Shanti Devi Charitable Trust

Abaskar Constructions (P) Ltd

Element Arts (P) Ltd

VIGA Trade Solutions (P) Ltd

II Key Management Personnel Mr. V.K. Gupta

Mr. Vivek Gupta

Mr. S. S Malhotra

18 Deferred Taxation

19 Earning per Share

20 In view of the management, the current asssets, loans and advances have a value on realisation in the ordinary course of buisness at least equal to the amount at which they are stated in the balance sheet as at 31st March, 2010.

21 Sundry debtors, creditors and loans and advances are subject to confirmation.

22 Figures are rounded to the nearest rupee.

23 Previous years figures have been regrouped /rearranged/reworked wherever considered necessary.