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Notes to Accounts of KEI Industries Ltd.

Mar 31, 2023

Property, Plant and Equipment individually costing upto '' 5,000 are fully depreciated in the year of acquisition.

Transition to Ind AS: On transition to Ind AS, the Company has elected to continue with the carrying value of all of its Property,Plant and Equipment recognised as at April 1, 2016 measured as per the previous GAAP and used that carrying value as the deemed cost of the Property, Plant and Equipment.

The residual values, useful lives and methods of depreciation of Property, Plant and Equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

4. Capital Work in Progress:Accounting Policy

Capital Work in Progress comprises of Property, Plant and Equipment that are not ready for their intended use at the end of reporting period and are carried at cost .Cost includes related acquisition expenses, construction cost, borrowing cost capitalized and other direct expenditure. At the point when an asset is capable of operating in the manner intended by management, the cost of construction is transferred to the appropriate category of Property, Plant and Equipment. Costs are capitalised till the period of assets are substantially ready for their intended use.

Depreciation is not recorded on capital work-in-progress until construction and installation is complete and the asset is substantially ready for its intended use.

Accounting Policy

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. After considering current and future economic conditions, the company has concluded that no material changes are required to lease period relating to the existing lease contracts.

Company as a Lessee

The company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

Finance lease

The Company has entered into land lease arrangement at various locations. Terms of such lease ranges from 75-95 years.In case of lease of land for 90 years and above, it is likely that such leases meet the criteria that at the inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset. Accordingly, the Company has classified leasehold land as finance leases applying Ind AS 17. For such leases, the carrying amount of the right-of-use asset at the date of initial application of Ind AS 116 is the carrying amount of the lease asset on the transition date as measured applying Ind AS 17.

Leasehold land is amortised on a straight line basis over the unexpired period of their respective lease ranging from 75-95 years. Leasehold improvements are depreciated on straight line basis over their initial agreement period.

Accounting Policy

Other intangible assets with finite useful life are stated at cost of acquisition, less accumulated depreciation/ amortisation and impairment loss, if any. The cost comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities).

The residual values, useful lives and methods of amortisation of Other intangible assets are reviewed at each financial year end and adjusted prospectively.

De-recognition of Other Intangible Assets

An item of Other intangible Asset or any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the Intangible Asset (calculated as the difference between net disposal proceeds and carrying amount of the Intangible Asset) is included in Statement of Profit and Loss Account when asset is derecognised.

Accounting Policy(i) Investments in Subsidiaries

A subsidiary is an entity controlled by the Company. Control exists when the Company has power over the entity, is exposed, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity''s returns.

Investments in subsidiaries are carried at cost as per Ind AS 27. Cost comprises price paid to acquire investment and directly attributable cost. The investments in Subsidiaries are carried in these financial statements at historical ''cost'', except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for as Non-current assets held for sale and discontinued operations. Where the carrying amount of an investment is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to the Statement of Profit and Loss. On disposal of investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the Statement of Profit and Loss.

(ii) Investments In Associates and Joint Ventures

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to net assets of joint venture. Joint control is contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require unanimous consent of parties sharing control.

An associate is an entity over which the Company has significant influence. Significant influence is power to participate in financial and operating policy decisions of investee but is not control or joint control over those policies.

Investment in joint ventures and associates are carried at cost as per Ind AS 27. Cost comprises price paid to acquire investment and directly attributable cost.

The investments in Associates and Joint Ventures are carried in these financial statements at historical ''cost'', except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for as Non-current assets held for sale and discontinued operations. Where the carrying amount of an investment is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to the Statement of Profit and Loss. On disposal of investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the Statement of Profit and Loss.

(iii) Investments at Fair Value through OCI

Investments in Mutual funds and in Equity Instruments of other companies are classified as Investments at Fair Value through OCI, as these investments are held with objective of collection of contractual cashflows and subsequent selling of these investments.

C. The Company has complied with the provision Section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

D. The Company has not entered with any Scheme(s) of arrangement in terms of Sections 230 to 237 of the Companies Act, 2013.

E. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

9. Other Financial Assets:

Accounting Policy

Contract Assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are classified as unbilled receivables (where only act of invoicing is pending) when there is unconditional right to receive cash, and only passage of time is required, as per contractual terms. Unearned/deferred revenue ("contract liability") is recognised when there is billing in excess of revenue.

11. Inventories:

Accounting Policy

Raw materials, traded goods, Work-in-progress, finished goods, packing materials, project material and stores ,spares and consumables are valued at lower of cost or net realisable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost of raw materials, packing materials, and stores,spares and consumables is determined on a Moving Weighted Average Cost Method basis.

Work-in-progress and finished goods, are valued at lower of cost or net realisable value. Cost includes direct materials as aforesaid and allocated production overheads.

Project Material, Traded Goods at lower of cost and or realisable value. Cost is determined on a weighted average method.

The stock of scrap materials have been valued at net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make sale.

(b) During the year ended 31st March, 2023''39.25 Million (Previous Year '' 35.16 Million) was recognised as an expense for inventories carried at net realisable value.

(c) Value of Inventories includes held by third parties as at 31st March, 2023''24.92 Million (Previous Year '' 36.35 Million).

(d) Inventories are hypothecated as security against bank borrowings (refer note no. 18).

12. Trade Receivables:

Accounting Policy

Trade receivables represent Company''s right to an amount of consideration that is unconditional (i.e. only the passage of time is required before payment of the consideration is due). Trade Receivables are generally non-interest bearing and are recognised initially at fair value and subsequently measured at cost less provision for impairment.

As a practical expedient the Company has adopted ''Simplified Approach'' using the provision matrix method for recognition of expected loss on trade receivables. The provision matrix is based on three years rolling average default rates observed over the expected life of the trade receivables and is adjusted for forward-looking estimates. These average default rates are applied on total credit risk exposure on trade receivables and outstanding for more than one year at the reporting date to determine lifetime Expected Credit Losses.

(b) No trade or other receivable are due from directors or officers of company either severally or jointly with other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

(c) The carrying amount of the trade receivables include receivables which are subject to a factoring arrangement. Under this arrangement, Company has transferred the relevant receivables to factor in exchange for cash and is prevented from selling or pledging the receivables. However, Company has retained late payment and credit risk. Company therefore continues to recognize transferred assets in their entirety in its Balance Sheet. Amount repayable under the factoring arrangement is presented as secured borrowing.

15. Income Taxes:

Accounting Policy

Current Income Tax assets and liabilities are measured at amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside Profit and Loss is also recognised outside profit and loss (either in Other Comprehensive Income or in Equity). Current tax items are recognised in correlation to underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Tax expense for the year comprises of current tax and deferred tax.

Further, the Company periodically receives notices and inquiries from Indian income tax authorities related to the Company''s operations. The Company has evaluated these notices and inquiries and has concluded that any consequent income tax claims or demands, if any, by the income tax authorities will not succeed on ultimate resolution.

(D) Deferred Tax

Accounting Policy

Deferred Income Taxes are calculated using Balance Sheet Approach, on temporary differences between tax base of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences, except when it is probable that temporary differences will not reverse in foreseeable future. Deferred tax assets are recognised for all deductible temporary differences and carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to extent that it is probable that taxable profit will be available against which deductible temporary differences and carry forward of unused tax credits and unused tax losses can be utilized.

Carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and same taxation authority.

(a) Rights, preferences and restrictions attached to shares:

Equity Shares: The company has issued one class of equity shares having par value of '' 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation of the company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

(g) Dividend:

Accounting Policy

Dividend Payments: Final dividend distribution to shareholders is recognised as a liability in the period in which dividend is approved by the shareholders. Any interim dividend paid is recognised on approval by Board of Directors. Dividend payable and corresponding tax on Dividend Distribution (if any) is recognised directly in equity.

Companies are required to pay/distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.

* The Company declared and paid an interim dividend of '' 3.00/- per equity share (150%) on 23rd January, 2023, resulting in cash out flow of '' 270.58 Million for the Financial year 2022-23.The Board has proposed that this may be treated as final dividend for Financial Year 2022-23.

The Company declared and paid an interim dividend of '' 2.50/- per equity share (125%) on 27th January, 2022, resulting in cash out flow of '' 225.26 Million for the Financial year 2021-22.

For dividend paid to Related Parties, refer note no. 37.

(h) Employee stock Option Plan (ESOP):

Accounting Policy

Fair Value of options granted under this option plan is recognised as an employee benefit expense with corresponding increase in equity in accordance with recognition and measurement principles as prescribed in Ind AS 102 Share Based Payments.

Total expense is recognised over the vesting period, which is period over which all of specified vesting conditions are to be satisfied. At end of the reporting period, the company revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises impact of revision to original estimates, if any, in profit and loss, with corresponding adjustment to equity.

No expense is recognised for options that do not ultimately vest because non-market performance and/or service conditions have not been met.

The dilutive effect, if any of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

Employee Stock Options

The Company had approved "KEI Employees Stock Option Scheme" (KEI ESOS 2015 or Scheme) for granting Employees Stock Options in the form of Equity Shares to eligible employees and the same was approved by the members of the Company on September 16, 2015. The plan is administered under the supervision of the Nomination and Remuneration Committee of the Board of Directors of the Company ("Committee") in compliance with the provisions of Securities and Exchange Board of India (Share Based Employee Benefits And Sweat Equity) Regulations, 2021 and other applicable provisions for the time being in force. The Nomination and Remuneration Committee had granted 2,252,000 share Options (par value '' 2/- each share) on September 23, 2015; 15,000 share Options (par value '' 2/- each share) were granted on September 25, 2018 and further granted 13,65,000 share options and 30,000 share options (par value '' 2/- each share) on August 05, 2019 and September 27, 2019 respectively which were exercised by eligible employees. In FY 2022-23, the Nomination and Remuneration Committee further granted 1,96,000 share Options (par value '' 2/-

(b) The above loans are secured by way of:

(i) Term Loans from Banks are Secured by way of first Pari-passu charge by equitable mortgage of Land and building (including Lease Hold) and hypothecation of Plant & Machinery and other movable fixed assets including WIP, both present and future, located at SP-919 RIICO Industrial Area Phase- III, Bhiwadi Distt. Alwar (Rajasthan); SP 2/874 RIICO Industrial Area Pathredi, Distt. Alwar (Rajasthan); 99/2/7 Madhuban Industrial Estate village Rakholi Silvassa (Dadra & Nagar Haveli and Daman and Diu) and Survey no.1/1/2/5, situated at Village Chinchpada, Silvassa (Dadra & Nagar Haveli and Daman and Diu).

(ii) 2nd charge by equitable mortgage of land and building (including Lease Hold) and hypothecation of Plant & Machinery and other movable fixed assets including WIP, both present and future located at Plot No. A 280-284, RIICO Industrial Area, Chopanki, Distt. Alwar (Rajasthan) in favour of SBI Gift City Gandhinagar Branch for ECB Loan. Further these loans are secured by personal guarantee of Shri Anil Gupta, Chairman-cum-Managing Director of the Company.

(c) For Related Parties disclosures, refer note no. 37.

(d) The Company has not defaulted during the year or the previous year on any loans payable during the year and has satisfied all debt covenants prescribed by lenders.

(e) All charges are registered with ROC within statutory period by the Company.

(a) The above loans are secured by way of:

(i) Working Capital facilities from banks are secured by 1st Pari-passu charge by way of hypothecation of entire current assets including raw material, stock in process, finished goods, consumable, stores & spares and receivables of the company.

(ii) 1st Pari-passu charge by way of equitable mortgage of land and building (including Lease Hold) and hypothecation of plant and machinery and other moveable fixed assets including WIP, both present and future, located at SP 920 & 922, RIICO Industrial Area, Phase III, Bhiwadi, Distt. Alwar (Rajasthan); Plot No. A 280-284, RIICO Industrial Area, Chopanki, Distt Alwar (Rajasthan) , and movable fixed assets at D-90, Okhla Industrial Area, Phase-I, New Delhi.

(iii) 2nd Pari-passu charge by equitable mortgage of Land and Building (including Lease Hold) and hypothecation of plant and machinery and other movable fixed assets including WIP, both present and future located at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa, (Dadra & Nagar Haveli and Daman and Diu); SP 2/874, RIICO Industrial Area, Pathredi Distt. Alwar (Rajasthan); SP 919, RIICO Industrial Area, Phase III, Bhiwadi, Distt. Alwar, (Rajasthan); and Survey No.- 1/1/2/5, situated at Village Chinchpada, Silvassa (Dadra & Nagar Haveli and Daman and Diu). Further these loans are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum- Managing Director of the company.

(b) Working Capital Loans from Banks are generally renewable within twelve months from the date of sanction or immediately previous renewal, unless otherwise stated, as per the terms and conditions of the sanction.

(c) For Term and Conditions of Loans and Deposits from Related parties refer note no. 37.

(d) The Company has not defaulted on any loans/deposits payable during the year and has satisfied all debt covenants prescribed by lenders.

(e) The Company has arranged Channel Finance facility for its customers from various banks against which a sum of '' 3,053.38 Million (Previous Year '' 2,237.88 Million) has been utilized as on the date of Balance Sheet. The Company is liable to pay in case of default by its customers along with interest thereon. The amount of such defaults on part of customers as on 31st March, 2023 is '' 34.53 Million (Previous Year '' 46.51 Million).

(f) All charges are registered with ROC within statutory period by the Company.

(g) Funds raised on short-term basis have not been utilised for long-term purposes.

(h) Term loans were applied for the purpose for which the loans were obtained.

19. Lease Liabilities:

Accounting Policy

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, company''s incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• Fixed payments, including in-substance fixed payments;

• Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• Amounts expected to be payable under a residual value guarantee; and

• The exercise price under a purchase option that the company is reasonably certain to exercise, lease payments in an optional renewal period if the company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the company is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the company''s estimate of the amount expected to be payable under a residual value guarantee, or if company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Short-Term Leases and Leases of Low-Value Assets

The company has elected not to recognise right-of-use assets and lease liabilities for short- term leases of real estate properties that have a lease term upto12 months. The company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

20. Provisions:

Accounting Policy

Provisions represent liabilities to the Company for which amount, or timing is uncertain. Provisions are recognized when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such an obligation.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in the statement of profit and loss as a finance cost.

The Company provides product warranties and does not sell the warranty separately to its customers. Provision for warranty-related costs is recognised when the product is sold, or service is provided to customers. Initial recognition is based on historical experience. The Company periodically reviews the adequacy of product warranties and adjusts warranty percentage and warranty provisions for actual experience, if necessary. The timing of outflow is expected to be within one to two years.

An Onerous Contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. If the company identifies a contract as an Onerous Contract, the present obligation under the contract is measured and recognised as provision.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

(b) Provision for Compensated Absences (Unfunded):

Compensated Absences to an extent is a terminal employee benefit, which covers Company''s liability towards earned leaves of employees of the Company.

(c) Provision for Gratuity (Funded):

Company provides gratuity for employees in India as per the Payment of Gratuity Act 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. Gratuity plan is a funded plan and company makes contributions to fund maintained by approved trust and administrated through separate irrevocable trust setup by Company.

(d) Long Service Award (Unfunded):

The company has introduced long service award at the time of exit of employee from the Financial year 2022-23 covering all the eligible employees.

(e) Provision for Warranty:

Provision for warranty relates to estimated outflow in respect of warranty for products sold/ contracts executed by Company. Due to nature of such costs it is not possible to estimate timing/ uncertainties relating to the outflows of economic benefits.

21. Trade Payables:

Accounting Policy

These amounts represents liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 to 90 days of recognition other than usance letter of credit. Trade payables are presented as current financial liabilities.

The Company enters into arrangements for purchase under usance letter of credit issued by banks under non-fund based working capital limits of the Company. Considering these arrangements are majorly for raw materials with a maturity of up to twelve months, the economic substance of the transaction is determined to be operating in nature and these are recognised as acceptances under trade payables.

(a) Acceptances represent amounts payable to banks on due date as per usance period of Letter of Credit (LCs) issued to raw material vendors under non-fund based working capital facility approved by Banks for the Company. For security of Non-fund based limits refer note 18B.

(b) Others includes amount payable to vendors, employees liability and accrual of expenses that are expected to be settled in the Company''s normal operating cycle or due to be settled within twelve months from the reporting date.

(c) Company''s liquidity risk management processes, refer note no. 40.

(d) Information as required to be furnished as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the company.

Accounting Policy

(i) Measurement of Revenue

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts, incentive schemes, if any, as per contracts with customers. Taxes collected from customers on behalf of Government are not treated as Revenue.

(ii) Engineering, Procurement and Construction (EPC) Projects

Performance obligation in case of revenue from long - term contracts is satisfied over the time. Since the company creates an asset that the customer controls as the asset is created and the company has an enforceable right to payment for performance completed to date if it meets the agreed specifications, revenue from long term contracts, where the outcome can be estimated reliably and 10% of the project cost is incurred, is recognized under the percentage of completion method by reference to the stage of completion of the contract activity. The stage of completion is measured by input method i.e. the proportion that costs incurred to date bear to the estimated total costs of a contract.

The total costs of contracts are estimated based on technical and other estimates. In case of value of uninstalled materials incurred that is not proportionate to the Company''s progress in satisfying the performance obligation, revenue is to be recognised at an amount equal to the cost of a good used to satisfy a performance obligation. In the event that a loss is anticipated on a particular contract, provision is made for the estimated loss. Contract revenue earned in excess of billing is reflected under as "contract asset" and billing in excess of contract revenue is reflected under "contract liabilities". Retention money receivable from project customers does not contain any significant financing element, these are retained for satisfactory performance of contract.

(iii) Sale of Goods

Revenue from sale of goods is recognised at the point of time when control of the asset is transferred to the customer, generally on delivery of the goods. The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated (e.g., Freight and Incentive schemes). In determining the transaction price for the sale of goods, the Company considers the effects of variable consideration and consideration payable to the customer (if any).

For contracts that are CIF (Cost Insurance Freight) contracts, the revenue is recognised when the goods reached at final destination. For contracts that are FOB (Free on Board) contracts, revenue is recognised when company delivers the goods to an independent carrier.

(iv) Variable Consideration

If consideration in a contract includes a variable amount, the Company estimates amount of consideration to which it will be entitled in exchange for transferring the goods to customer. Variable Consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in amount of cumulative revenue recognised will not occur when associated uncertainty with variable consideration is subsequently resolved. Some contracts for sale of manufactured goods provide customers with a right of incentives & discounts. The incentives and volume rebates give rise to variable consideration.

(a) Cash Discount which are determinable on the date of transaction, are recognised as reduction of revenue by the company

(b) Volume Discounts, Timely Payment Incentives & Other Incentive Schemes the Company provides retrospective volume discounts to certain customers once the quantity of products purchased during the period exceed a threshold specified in the contract. Other Incentives promised by the company on achieving certain sales thresholds also a form of identifiable benefit that are identified as a separate component of the sales transaction.

In such cases, the Company estimates fair value of Incentives promised to its customers. To estimate the variable consideration for the expected future rebates and discounts, the Company applies the expected value method. The Company estimates variable consideration and recognises a refund liability for the expected future rebates. Accordingly, the company recognises lesser revenue if such discounts are probable and the amount is determinable. Any subsequent changes in the amount of such estimates are transferred to statement of profit and loss.

(c) Other Variable Considerations if the consideration promised in the contract includes a variable amount, the company estimates the amount of consideration to which the in exchange for transferring the promised goods or services to the customer. This estimate is updated at each reporting date.

(v) Significant Financing Components

Significant financing Components In respect of advance received from customers, using the practical expedient in Ind AS 115. the company does not adjust the promised amount of consideration for the effect of a significant financing component if it expects , at contract inception, that the period between transfer of the promised good or service to the customer and when the customer pays for that good or service will be within normal operating cycle. Retention money receivable from project customers does not contain any significant financing element, these are retained for satisfactory performance of contract.

(vi) Export Incentives/Benefits

Export incentives/benefits under various schemes notified by the government have been recognised on the basis of applicable regulations , and when reasonable assurance to receive such revenue is established . The company has chosen to present export benefits/incentives as other operating revenue in the statement of Profit and Loss .

(vii) Contract Balances

Contract assets are in the nature of unbilled receivables, which arises when Company satisfies a performance obligation but does not have an unconditional right to consideration. Contract assets are subject to impairment assessment.

A contract liability is the obligation to transfer goods and services for which income is received in advance. When an incentive is payable to a customer for which the revenue is already recognised by the company, the incentive so payable to the customer is also treated as Contract Liability.If a customer pays consideration before the Company transfers goods or services to the customer, i.e advance received from customer the same is recognised as contract liability.Contract liabilities are recognized as revenue when the Company performs under the contract (i.e., transfers control of the related goods or services to the customer).

Accounting Policy

(i) Dividend Income

Dividends are recognised in profit and loss only when the right to receive payment is established.

(ii) Interest Income

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is rate that exactly discounts estimated future cash receipts through expected life of the financial asset to gross carrying amount of a financial asset. When calculating effective interest rate, the Company estimates expected cash flows by considering all contractual terms of financial instrument but does not consider expected credit losses.

(iii) Other Income

Other claims including interest on outstanding are accounted for when there is virtual certainty of ultimate collection.

(iv) Foreign Currency Transactions and Balances

Transactions in currencies other than functional currency are translated into functional currency at exchange rates ruling at date of transaction. Monetary assets and liabilities denominated in other currencies are translated into functional currency at exchange rates prevailing on reporting date. Non-monetary assets and liabilities denominated in other currencies and measured at historical cost or fair value are not retranslated.

All exchange differences are included in the statement of profit and loss except any exchange differences on monetary items designated as an effective hedging instrument of the currency risk of designated forecasted sales or purchases, which are recognized in the Other Comprehensive Income.

For advance consideration, date of transaction for purpose of determining exchange rate to use on initial recognition of the related asset or liability , expense or income when the Company has received or paid advance consideration in foreign currency.

29. Employee Benefits Expenses:

Accounting Policy

(i) Short-Term Employee Benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, performance incentives and compensated absences which are expected to occur in next twelve months. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognised as an expense as related service is rendered by employees.

(ii) Compensated Absences

Company provides for encashment of accumulated leaves with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment/ availment. The liability is provided based on number of days of unutilized leave at each Balance Sheet date on basis of an independent actuarial valuation.

(iii) Gratuity

Liabilities with regard to gratuity benefits payable in future are determined by actuarial valuation at each Balance Sheet date using the Projected Unit Credit method and contributed to fund maintained by approved trust and administered through a separate irrevocable trust set up by the Company.

Actuarial gains and losses arising from changes in actuarial assumptions are recognized in Other Comprehensive Income and shall not be reclassified to the Statement of Profit and Loss in subsequent period.

(iv) Long Service Award

Company provides for long service award subject to certain rules. The liability is provided on the basis of an independent actuarial valuation at each balance sheet date using Projected Unit Credit method.

(v) Provident Fund

Eligible employees of the Company receive benefits from a Provident Fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to provident fund plan equal to a specified percentage of covered employee''s salary.

(vi) Share-Based Payments (Employee)

Fair Value of options granted under this option plan is recognised as an employee benefit expense with corresponding increase in equity in accordance with recognition and measurement principles as prescribed in Ind AS 102 Share Based Payments.

Total expense is recognised over the vesting period, which is period over which all of specified vesting conditions are to be satisfied. At end of the reporting period, the company revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises impact of revision to original estimates, if any, in profit and loss, with corresponding adjustment to equity.

The dilutive effect, if any of the Outstanding options is reflected as additional share dilution in the computation of diluted earnings per share (Refer Note 35).

Compensated absences (Unfunded)

The Leave Obligation cover the company''s Liability for earned leave. The amount of the provision of '' 101.67 Million ( previous year '' 87.72 Million) is presented as non current and '' 13.88 Million (previous year '' 12.87 Million) is presented as current. The company has recognised '' 25.14 Million ( previous year '' 7.62 Million) for compensated absences in the statement of Profit and Loss.

Long Service Award (Unfunded)

The amount of the provision of '' 47.12 Million ( previous year '' NIL ) is presented as non current and '' 1.56 Million (previous year '' NIL ) is presented as current. The company has recognised '' 49.33 Million ( previous year '' NIL ) for long service award in the statement of Profit and Loss.

Defined Benefit Plan- As Per Actuarial Valuation

The Company operates a defined benefit plan, viz., gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy.

30. Finance Cost:

Accounting Policy

Borrowing Costs directly attributable to acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of asset. Financing Cost incurred on general borrowing used for projects is capitalized at weighted average cost. Amount of such borrowing is determined after setting off amount of internal accruals. All other borrowing costs are expensed in the period in which they occur.

Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds and interest on tax matters. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to borrowing cost.

35. Earnings Per Share (EPS):

Accounting Policy

The Company presents basic and diluted earnings per share ("EPS") data for its equity shares.

(i) Basic EPS is calculated by dividing profit/ (loss) attributable to equity shareholders of the Company by weighted average number of equity shares outstanding during the period.

(ii) Diluted EPS is computed using profit/ (loss) for the year attributable to equity shareholders and weighted average number of equity and potential equity shares outstanding during the period, except where the result would be anti-dilutive. Potential equity shares that are converted during the year are included in the calculation of diluted earnings per share, from the beginning of the year or date of issuance of such potential equity shares, to the date of conversion.

(iii) Employee Stock Option

The Company had approved "KEI Employees Stock Option Scheme" (KEI ESOS 2015 or Scheme) for granting Employees Stock Options in the form of Equity Shares to eligible employees and the same was approved by the members of the Company on September 16, 2015. The plan is administered under the supervision of the Nomination and Remuneration Committee of the Board of Directors of the Company ("Committee") in compliance with the provisions of Securities and Exchange Board of India (Share Based Employee Benefits And Sweat Equity) Regulations, 2021 and other applicable provisions for the time being in force. The Nomination and Remuneration Committee had granted 2,252,000 share Options (par value '' 2/- each share) on September 23, 2015; 15,000 share Options (par value '' 2/- each share) were granted on September 25, 2018 and further granted 13,65,000 share options and 30,000 share options (par value '' 2/- each share) on August 05, 2019 and September 27, 2019 respectively which were exercised by eligible employees. In FY 2022-23, the Nomination and Remuneration Committee further granted 1,96,000 share Options (par value '' 2/-each share) on September 22, 2022 which will vest over a period of 4 years from the date of grant.

36. Contingent Liabilities & Commitments:

Accounting Policy

In normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees including Guarantees given on behalf of Subsidiary & Joint Venture Companies are also provided in the normal course of business.

There are certain obligations which management of the Company has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Claims against the Company, where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities. Show Cause Notices received are not treated as Contingent Liabilities.

Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company is involved, it is not expected that such contingencies will have a material effect on its financial position or profitability.

Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.

A.

Contingent Liabilities (to the extent not provided for):

('' in Million]

Particulars

Year Ended 31st March, 2023

Year Ended 31st March, 2022

Claims against Company not acknowledged as debt

(i)

Sales Tax / Entry Tax demands under appeal

10.25

26.12

(ii)

Income tax Matters:

-- Demand due to Additions / disallowances during Assessments, Penalty which are under Appeal

33.47

20.02

(iii)

Excise / Service tax / GST demands under appeal/ Pending appeal

520.30

1,227.08

(iv)

Miscellaneous claims against Company in Labour Court

3.13

1.07

Other money for which Company is contingently liable

(i)

Unutilized Letter of Credits

349.59

186.31

(ii)

Outstanding LC Discounted

529.01

1,307.50

In respect of the items above, future cash outflows in respect of contingent liabilities are determinable only on receipt of judgments/decisions pending at various forums /authority. The Company doesn''t expect the outcome of matters stated above to have a material adverse effect on the Company''s financial conditions, result of operations or cash flows.

B.

Commitments

('' in Million)

Particulars

As at

31st March, 2023

As at

31st March, 2022

Estimated amount of contracts remaining to be executed on Capital Account

638.27

98.76

For Lease Commitments (refer note no 5-C)

(c) Other information

(i) Shri Anil Gupta,Chairman-cum-Managing Director has given personal guarantee to lender banks for company''s borrowings.

(ii) The company has given Performance Bank Guarantees of '' NIL (Previous year '' 60.80 Million) on behalf of Joint Venture of M/s KEI Industries Limited, New Delhi & Brugg Kabel AG Switzerland.

(iii) The company has outstanding Performance Bank Guarantees of '' NIL (Previous year '' 10.60 Million) on behalf of KEI Cables Australia PTY Limited.

(iv) Disclosures in respect of transactions with identified related parties are given only for such period during which such relationships existed.

(v) All outstanding balances pertaining to loans and security deposits with related parties are at fair value.

(vi) Inter corporate loans/advances have been given for business purposes only.

(vii) In case of Loan to subsidiary, since the entire amount is impaired no interest on loan has been charged.

(viii) As the amount for gratuity and Leave encashment are provided on actuarial basis for the company as a whole, the amount pertaining to the KMP and relatives of KMP are not included in their remuneration.

(ix) Transactions with Related parties are made on terms equivalent to those that prevail in arms'' length transactions.

(x) Deposits and loans received from Related Parties are for business purpose and the rate of interest thereon is at arms length price.

(xi) Interest charged from Associate at the rate LIBOR plus 0.50% spread, no interest charged from subsidiary since Loan is fully credit impaired.

(xii) Trade Receivables and Loan given to Associate and Subsidiary company are unsecured.

38. SEGMENT REPORTING:

Accounting Policies:

i. Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision Maker.

ii. Revenue and Expenses are identified to segments on the basis of their relationship to the operating activities of the segment.

iii. The Company generally accounts for intersegment sales and transfers at cost plus appropriate margins.

iv. Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are included under "Unallocated revenue / expenses / assets / liabilities".

Disclosure as per Indian Accounting Standard (Ind AS) 108 "Operating Segments"

(i) Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable segment:

Operating segments are identified as those components of the Company (a) that engage in business activities to earn revenues and incur expenses (including transactions with any of the Company''s other components; (b) whose operating results are regularly reviewed by the Company''s Management to make decisions about resource allocation and performance assessment and (c) for which separate financial information is available.

(ii) Reportable segments:

The Company has three reportable segments as described under "Segment Composition" below. The nature of products and services offered by these businesses are different and are managed separately given the different sets of technology and competency requirements.

(iii) Segment composition

Cables & Wires Segment comprise manufacturing, sale and marketing of all range of power cables such as - Low Tension (LT), High Tension (HT) and Extra High Voltage (EHV), control and instrumentation cables, specialty cables, elastomeric / rubber cables, submersible cables, flexible and house wires, winding wires etc.

Engineering, Procurement and Construction (EPC) projects Segment comprises of survey, supply of materials, design, erection, testing & commissioning on a turnkey basis.

Stainless Steel Wire Segment comprises manufacturing sale and Job work related to Stainless Steel Wires.

(iv) Segment Revenue, Expenditure & Profit:

Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal management reports that are reviewed by the Company''s Management.

Operating revenues and expenses related to both third party and inter-segment transactions are included in determining the segment result


Mar 31, 2022

Capital Work in Progress:

Accounting Policy

Capital Work in Progress comprises of Property, Plant and Equipment that are not ready for their intended use at the end of reporting perod and are carried at cost .Cost includes related acquisition expenses, construction cost, borrowing cost capitalized and other direct expenditure. At the point when an asset is capable of operating in the manner intended by management, the cost of construction is transferred to the appropriate category of Property, Plant and Equipment. Costs are capitalised till the period of assets are substantialy ready for their intended use.

Depreciation is not recorded on capital work-in-progress until construction and installation is complete and the asset is substantially ready for its intended use.

Right of Use Assets Accounting Policy

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. After considering current and future economic conditions, the company has concluded that no material changes are required to lease period relating to the existing lease contracts.

Company as a Lessee

The company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

Finance lease

The Company has entered into land lease arrangement at various locations. Terms of such lease ranges from 75-95 years.In case of lease of land for 90 years and above, it is likely that such leases meet the criteria that at the inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset. Accordingly, the Company has classified leasehold land as finance leases applying Ind AS 17. For such leases, the carrying amount of the right-of-use asset at the date of initial application of Ind AS 116 is the carrying amount of the lease asset on the transition date as measured applying Ind AS 17.

Leasehold land is amortised on a straight line basis over the unexpired period of their respective lease ranging from 75-95 years. Leasehold improvements are depreciated on straight line basis over their initial agreement period.

(iv) Future Lease Commitments:

The total future cash out flow for leases that had not yet commenced: '' Nil (Previous year '' Nil)

Refer note no.18 for terms and conditions in respect of hire-purchase of vehicles on finance lease.

6. Intangible Assets:Accounting Policy

Intangible assets with finite useful life are stated at cost of acquisition, less accumulated depreciation/ amortisation and impairment loss, if any. The cost of Intangible Assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities).

An item of Intangible Asset or any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal.

Any gain or loss arising on de-recognition of the asset (calculated as the difference between net disposal proceeds and carrying amount of the asset) is included in Statement of Profit and Loss Account when asset is derecognised.

(a) The aggregate amortization of Intangible assets has been included under depreciation and amortization expense in the statement of profit & loss.

7. Investments:

Accounting Policy

(i) Investments in Subsidiaries

A subsidiary is an entity controlled by the Company. Control exists when the Company has power over the entity, is exposed, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns by using its power over entity. Power is demonstrated through existing rights that give the ability to direct relevant activities, those which significantly affect the entity''s returns.

Investments in subsidiaries are carried at cost as per Ind AS 27. Cost comprises price paid to acquire investment and directly attributable cost. The investments in Subsidiaries are carried in these financial statements at historical ''cost, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for as Non-current assets held for sale and discontinued operations. Where the carrying amount of an investment is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to the Statement of Profit and Loss. On disposal of investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the Statement of Profit and Loss.

(ii) Investments In Associates and Joint Ventures

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to net assets of joint venture. Joint control is contractually agreed sharing of control of an arrangement, which exists only when decisions about relevant activities require unanimous consent of parties sharing control.

An associate is an entity over which the Company has significant influence. Significant influence is power to participate in financial and operating policy decisions of investee but is not control or joint control over those policies.

Investment in joint ventures and associates are carried at cost as per Ind AS 27. Cost comprises price paid to acquire investment and directly attributable cost

The investments in Associates and Joint Ventures are carried in these financial statements at historical ''cost'', except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for as Non-current assets held for sale and discontinued operations. Where the carrying amount of an investment is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to the Statement of Profit and Loss. On disposal of investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the Statement of Profit and Loss.

9. Other Financial Assets Accounting Policy

Contract Assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are classified as unbilled receivables (where only act of invoicing is pending) when there is unconditional right to receive cash, and only passage of time is required, as per contractual terms. Unearned/deferred revenue (“contract liability") is recognised when there is billing in excess of revenue.

Accounting Policy

Raw materials, traded goods, Work-in-progress, finished goods, packing materials, project material and stores, spares and consumables are valued at lower of cost or net realisable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost of raw materials, packing materials, and stores,spares and consumables is determined on a Moving Weighted Average Cost Method basis.

Work-in-progress and finished goods, are valued at lower of cost or net realisable value. Cost includes direct materials as aforesaid and allocated production Overheads.

Project Material, Traded Goods at lower of cost and or realisable value. Cost is determined on a weighted average method.

The stocks of scrap materials have been valued at net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make sale.

(c) Inventories held by third parties amounting to '' 36.35 millions (31st March, 2021 '' 22.65 millions).

(d) Inventories are hypothecated as security against bank borrowings (refer note no. 18).

(e) The Company has changed its accounting policy for valuation of Raw Materials, Finished Goods, Project Materials and Work in Process from First In First Out (FIFO) to moving weighted average cost method w.e.f. April 01, 2021. The Company believes that this change to moving weighted average cost method is preferable as it reflects better matching of the actual cost flows with the physical flow of goods and also improves comparability with Company''s industry peers. Hence, it provides reliable and more relevant information to the users of financial statements about the Company''s inventory valuation.

In accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors, this change in method of accounting for inventories has been retrospectively applied to all previous years presented herein. Previous years comparative figures have been adjusted to reflect what results would have been had the company applied moving weighted average cost method of inventory valuation for inventories. The cumulative effect on retained earnings for these changes was '' 3.32 Millions at April 01, 2020. However, due to huge volume of inventory, it is impracticable for the Company to give impact and figures that what would have been had the company continued to follow the FIFO method of inventory valuation.

Refer note no 45 for impact on financial statement due to change in Accounting Policy in accordance with IND AS 8 (Accounting Policies, Changes in Accounting Estimates and Errors) read with Ind AS 1 Presentation of Financial Statements.

Accounting Policy

Trade receivables represent Company''s right to an amount of consideration that is unconditional (i.e. only the passage of time is required before payment of the consideration is due). Trade Receivables are generally non-interest bearing and are recognised initially at fair value and subsequently measured at cost less provision for impairment.

As a practical expedient the Company has adopted ''Simplified Approach'' using the provision matrix method for recognition of expected loss on trade receivables. The provision matrix is based on three years rolling average default rates observed over the expected life of the trade receivables and is adjusted for forward-looking estimates. These average default rates are applied on total credit risk exposure on trade receivables and outstanding for more than one year at the reporting date to determine lifetime Expected Credit Losses.

(b) No trade or other receivable are due from directors or officers of company either severally or jointly with other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

(c) The carrying amount of the trade receivables include receivables which are subject to a factoring arrangement. Under this arrangement, Company has transferred the relevant receivables to factor in exchange for cash and is prevented from selling or pledging the receivables. However, Company

(d) Trade receivables are usually non-interest bearing and are generally on credit terms up to 90 days except EPC business.

(e) For EPC business trade receivables are non-interest bearing and credit terms are specific to contracts.

(f) * Includes Trade Receivable and impairment allowance thereon for Related Parties disclosures refer note no. 37.

(g) Trade receivables have been hypothecated as security against bank borrowings, the terms relating to which have been described in note no. 18.

(h) Refer note no. 39 for Accounting Policies on Financial instruments.

(i) Trade Receivables include Retention by Customers '' 3,029.98 Millions (previous year '' 3,078.95 Millions). Retention are specific to projects and are generally receivable with in six months from completion of Project.

15. Income Taxes:

Accounting Policy

Current Income Tax assets and liabilities are measured at amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside Profit and Loss is also recognised outside profit and loss (either in Other Comprehensive Income or in Equity). Current tax items are recognised in correlation to underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Tax expense for the year comprises of current tax and deferred tax.

(D) Deferred Tax:

Accounting Policy

Deferred Income Taxes are calculated using Balance Sheet Approach, on temporary differences between tax base of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences, except when it is probable that temporary differences will not reverse in foreseeable future. Deferred tax assets are recognised for all deductible temporary differences and carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to extent that it is probable that taxable profit will be available against which deductible temporary differences and carry forward of unused tax credits and unused tax losses can be utilized.

Carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and same taxation authority.

(a) Rights, preferences and restrictions attached to shares:

Equity Shares: The company has issued one class of equity shares having par value of '' 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation of the company, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

(e) Aggregate number of shares issued during the period of 5 years immediately preceding the reporting date:

During the year 2016-17, 5,60,000 equity shares of '' 2 each fully paid were issued under KEI Stock Option Scheme, 2015.

During the year 2017-18, 5,64,000 equity shares of '' 2 each fully paid were issued under KEI Stock Option Scheme, 2015.

During the year 2018-19, 5,64,000 equity shares of '' 2 each fully paid were issued under KEI Stock Option Scheme, 2015.

During the year 2019-20, 5,79,000 equity shares of '' 2 each fully paid were issued under KEI Stock Option Scheme, 2015.

During the year 2019-20, 100,00,000 equity shares of '' 2 each fully paid were issued to Qualified Institutional Buyers under QIP.

During the year 2020-21, 3,51,000 equity shares of '' 2 each fully paid were issued under KEI Stock Option Scheme, 2015.

(f) There were no buy back of shares or issue of shares pursuant to contract without payment being received in cash during the previous 5 years.

(g) Dividend:

Accounting Policy

Final dividend distribution to shareholders is recognised as a liability in the period in which dividend is approved by the shareholders. Any interim dividend paid is recognised on approval by Board of Directors. Dividend payable is recognised directly in equity.

Companies are required to pay/distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.

* The Company declared and paid an interim dividend of '' 2.50/- per equity share ( 125%) on January 27, 2022, resulting in cash out flow of '' 225.26 Millions , for the Financial year 2021-22. The Board has proposed that this may be treated as final dividend for Financial Year 2021-22. The Company declared and paid an interim dividend of '' 2.00/- per equity share ( 100%) on February 26, 2021, resulting in cash out flow of '' 179.71 Millions , for the Financial year 2020-21.

(h) EMPLOYEE STOCK OPTION PLAN (ESOP)

Accounting Policy

Fair Value of options granted under this option plan is recognised as an employee benefit expense with corresponding increase in equity in accordance with recognition and measurement principles as prescribed in Ind AS 102 Share Based Payments.

Total expense is recognised over the vesting period, which is period over which all of specified vesting conditions are to be satisfied. At end of the reporting period, the company revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises impact of revision to original estimates, if any, in profit and loss, with corresponding adjustment to equity.

No expense is recognised for options that do not ultimately vest because non-market performance and/or service conditions have not been met.

The dilutive effect, if any of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

Employee Stock Options:

The Company had approved "KEI Employees Stock Option Scheme" (KEI ESOS 2015 or Scheme) for granting Employees Stock Options in the form of Equity Shares to eligible employees and the same was approved by the members of the Company on September 16, 2015. The plan is administered under the supervision of the Nomination and Remuneration Committee of the Board of Directors of the Company ("Committee") in compliance with the provisions of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, as amended and other applicable provisions for the time being in force. The Nomination and Remuneration Committee had granted 22,52,000 share Options (par value '' 2/- each share) on September 23, 2015 and further 15,000 share Options (par value '' 2/- each share) were granted on September 25, 2018 which were fully excercised. In Financial Year 2019-20 the Committee further granted 13,95,000 share options (par value '' 2/- each share) which will vest over a period of three years from the date of grant. Details of Scheme is given as below:

(a) Capital Reserve:

Subscribed capital forfeited due to non- receipt of call money treated as Capital reserve.

(b) Securities Premium:

Amount received in excess of face value of the equity shares is recognized in Securities Premium. In case of equity-settled share based payment transactions difference between fair value on grant

date and nominal value of share is accounted as Securities Premium. The QIP issue expenses have been adjusted with securities premium account, net of taxes, if any.

(c) General Reserve:

The Company has transferred a portion of the net profit of the Company before declaring dividend to General Reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to General Reserve is not required under the Companies Act, 2013.

(d) Retained Earnings:

Retained Earnings include all current and prior period retained profits.

Retained earnings are the profits that the Company has earned till date less any transfers to General Reserve, dividends or other distributions to shareholders.

(b) The above loans are secured by way of:

(i) Term Loans from Banks are Secured by way of first Pari passu charge by equitable mortgage of land and building and hypothecation of Plant & Machinery and other movable fixed assets including WIP, both present and future, located at SP-919 RIICO Industrial Area Phase- III, Bhiwadi Distt. Alwar (Rajasthan); SP 2/874 RIICO Industrial Area Pathredi, Distt. Alwar (Rajasthan) ; 99/2/7 Madhuban Industrial Estate village Rakholi Silvassa (Dadra & Nagar Haveli and Daman and Diu) and Survey no.1/1/2/5, situated at Village Chinchpada, Silvassa (Dadra & Nagar Haveli and Daman and Diu).

(ii) 2nd charge by equitable mortgage of land and building and hypothecation of Plant & Machinery and other movable fixed assets including WIP, both present and future located at Plot No. A 280-284, RIICO Industrial Area, Chopanki, Distt. Alwar (Rajasthan) in favour of SBI Gift City Gandhinagar Branch for ECB Loan. Further these loans are secured by personal guarantee of Shri Anil Gupta, Chairman-cum-Managing Director of the Company.

(c) Finance Lease Obligations are taken from scheduled banks and are secured against hypothecation of vehicles. The Rate of interest on such loans varies between 8.50% to 9.51%.

(d) Unsecured Deposits are repayable within 3 years from the date of acceptance. The Company has not defaulted in repayment of deposits.

(e) For Related Parties disclosures refer note no. 37.

(f) The Company has not defaulted on any loans payable during the year and has satisfied all debt covenants prescribed by lenders.

(a) The above loans are secured by way of:

(i) Working Capital facilities from banks are secured by 1st Pari passu charge by way of hypothecation of entire current assets including raw material, stock in process, finished goods, consumable, stores & spares and receivables of the company.

(ii) 1 st Pari passu charge by way of equitable mortgage of land and building and hypothecation of plant and machinery and other moveable fixed assets including WIP, both present and future, located at SP 920 & 922, RIICO Industrial Area, Phase III, Bhiwadi, Distt. Alwar (Rajasthan); Plot No. A 280-284, RIICO Industrial Area, Chopanki, Distt Alwar (Rajasthan) , and movable fixed assets at D-90, Okhla Industrial Area, Phase-I, New Delhi.

(iii) 2nd Pari- passu charge by equitable mortgage of Land and Building and hypothecation of plant and machinery and other movable fixed assets including WIP, both present and future located at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa, (Dadra & Nagar Haveli and Daman and Diu); SP 2/874, RIICO Industrial Area, Pathredi Distt. Alwar (Rajasthan); SP 919, RIICO Industrial Area, Phase III, Bhiwadi, Distt. Alwar, (Rajasthan); and Survey No.- 1/1/2/5, situated at Village Chinchpada, Silvassa (Dadra & Nagar Haveli and Daman and Diu). Further these loans are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum- Managing Director of the company.

(b) Working Capital Loans from Banks are generally renewable within twelve months from the date of sanction or immediately previous renewal, unless otherwise stated, as per the terms and conditions of the sanction.

(c) For Term and Conditions of Loans and Deposits from Related parties refer Note No. 37.

(d) The Company has not defaulted on any loans/deposits payable during the year and has satisfied all debt covenants prescribed by lenders.

(e) The Company has arranged Channel Finance facility for its customers from various banks against which a sum of '' 2,237.88 millions (Previous Year '' 1,926.43 Millions) has been utilized as on the date of Balance Sheet. The Company is liable to pay in case of default by its customers along with interest thereon. The amount of such defaults on part of customers as on 31st March, 2022 is '' 46.51 Millions (Previous Year '' 15.09 Millions).

(f) Credit facilities:

The Company has fund based and non-fund based revolving credit facilities amounting to '' 32,100.00 millions (31st March, 2021: '' 30,100.00 millions), towards operational requirements that can be used for the short term loan, issuance of letter of credit and bank guarantees. The unutilised credit line out of these working capital facilities at the year end are given as below:

('' in Millions)

Particulars

As at

31st March, 2022

As at

31st March, 2021

Fund Based

3,946.19

4,981.09

Non Fund Based

15,705.37

10,645.28

Total

19,651.56

15,626.37

(g) There are no material discrepancies in Quarterly returns or statements of current assets filed by the company during the year with banks as per the books of accounts.

19. Lease liabilities:

Accounting Policy

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, company''s incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• Fixed payments, including in-substance fixed payments;

• Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• Amounts expected to be payable under a residual value guarantee; and

• The exercise price under a purchase option that the company is reasonably certain to exercise, lease payments in an optional renewal period if the company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the company is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the company''s estimate of the amount expected to be payable under a residual value guarantee, or if company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

SHORT-TERM LEASES AND LEASES OF LOW-VALUE ASSETS

The company has elected not to recognise right-of-use assets and lease liabilities for short- term leases of real estate properties that have a lease term upto 12 months. The company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

20. Provisions:

Accounting Policy

Provisions represent liabilities to the Company for which amount, or timing is uncertain. Provisions are recognized when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such an obligation .

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in the statement of profit and loss as a finance cost.

The Company provides product warranties and does not sell the warranty separately to its customers.

Provision for warranty-related costs is recognised when the product is sold, or service is provided to customers. Initial recognition is based on historical experience. The Company periodically reviews the adequacy of product warranties and adjusts warranty percentage and warranty provisions for actual experience, if necessary. The timing of outflow is expected to be within one to two years.

An Onerous Contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. If the company identifies a contract as an Onerous Contract, the present obligation under the contract is measured and recognised as provision.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

(b) Provision for Compensated Absences (Unfunded):

Compensated Absences to an extent is a terminal employee benefit, which covers Company''s liability towards earned leaves of employees of the Company.

(c) Provision for Gratuity (Funded):

Company provides gratuity for employees in India as per the Payment of Gratuity Act 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. Gratuity plan is a funded plan and company makes contributions to fund maintained by approved trust and administrated through separate irrevocable trust setup by Company.

(d) Provision for Warranty:

Provision for warranty relates to estimated outflow in respect of warranty for products sold/ contracts executed by Company. Due to nature of such costs it is not possible to estimate timing/ uncertainties relating to the outflows of economic benefits.

21. Trade Payables:

Accounting Policy

These amounts represents liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 to 90 days of recognition other than usance letter of credit. Trade payables are presented as current financial liabilities.

The Company enters into arrangements for purchase under usance letter of credit issued by banks under non-fund based working capital limits of the Company. Considering these arrangements are majorly for raw materials with a maturity of up to twelve months, the economic substance of the transaction is determined to be operating in nature and these are recognised as acceptances under trade payables.

Notes:-

(a) Acceptances represent amounts payable to banks on due date as per usance period of Letter of Credit (LCs) issued to raw material vendors under non-fund based working capital facility approved by Banks for the Company. For security of Non-fund based limits refer note 18B.

(b) Others includes amount payable to vendors, employees liability and accrual of expenses that are expected to be settled in the Company''s normal operating cycle or due to be settled within twelve months from the reporting date.

(c) For explanations on the Company''s liquidity risk management processes refer note no. 40.

(d) Information as required to be furnished as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the company.

24. Revenue Recognition:Accounting Policy(i) Measurement of Revenue

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts, incentive schemes, if any, as per contracts with customers. Taxes collected from customers on behalf of Government are not treated as Revenue.

(ii) Engineering, Procurement and Construction (EPC) Projects

Performance obligation in case of revenue from long - term contracts is satisfied over the time. Since the company creates an asset that the customer controls as the asset is created and the company has an enforceable right to payment for performance completed to date if it meets the agreed specifications, revenue from long term contracts, where the outcome can be estimated reliably and 10% of the project cost is incurred, is recognized under the percentage of completion method by reference to the stage of completion of the contract activity. The stage of completion is measured by input method i.e. the proportion that costs incurred to date bear to the estimated total costs of a contract.

The total costs of contracts are estimated based on technical and other estimates. In case of value of uninstalled materials incurred that is not proportionate to the Company''s progress in satisfying the performance obligation, revenue is to be recognised at an amount equal to the cost of a good used to satisfy a performance obligation. In the event that a loss is anticipated on a particular contract, provision is made for the estimated loss. Contract revenue earned in excess of billing is reflected under as “contract asset" and billing in excess of contract revenue is reflected under “contract liabilities". Retention money receivable from project customers does not contain any significant financing element, these are retained for satisfactory performance of contract.

(iii) Sale of Goods

Revenue from sale of goods is recognised at the point of time when control of the asset is transferred to the customer, generally on delivery of the goods. The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated (e.g., Freight and Incentive schemes). In determining the transaction price for the sale of goods, the Company considers the effects of variable consideration and consideration payable to the customer (if any).

For contracts that are CIF (Cost Insurance Freight) contracts, the revenue is recognised when the goods reached at final destination. For contracts that are FOB (Free on Board) contracts, revenue is recognised when company delivers the goods to an independent carrier.

(iv) Variable Consideration

If consideration in a contract includes a variable amount, the Company estimates amount of consideration to which it will be entitled in exchange for transferring the goods to customer. Variable Consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in amount of cumulative revenue recognised will not occur when associated uncertainty with variable consideration is subsequently resolved. Some contracts for sale of manufactured goods provide customers with a right of incentives & discounts. The incentives and volume rebates give rise to variable consideration.

(a) Cash Discount which are determinable on the date of transaction, are recognised as reduction of revenue by the company.

(b) Volume Discounts, Timely Payment Incentives & Other Incentive Schemes the Company provides retrospective volume discounts to certain customers once the quantity of products purchased during the period exceed a threshold specified in the contract. Other Incentives promised by the company on achieving certain sales thresholds also a form of identifiable benefit that are identified as a separate component of the sales transaction.

In such cases, the Company estimates fair value of Incentives promised to its customers. To estimate the variable consideration for the expected future rebates and discounts, the Company applies the expected value method. The Company estimates variable consideration and recognises a refund liability for the expected future rebates. Accordingly, the company recognises lesser revenue if such discounts are probable and the amount is determinable. Any subsequent changes in the amount of such estimates are transferred to statement of profit and loss.

(c) Other Variable Considerations if the consideration promised in the contract includes a variable amount, the company estimates the amount of consideration to which the in exchange for transferring the promised goods or services to the customer. This estimate is updated at each reporting date.

(v) Significant Financing Components

Significant financing Components In respect of advance received from customers, using the practical expedient in Ind AS 115. The company does not adjust the promised amount of consideration for the effect of a significant financing component if it expects , at contract inception, that the period between transfer of the promised good or service to the customer and when the customer pays for that good or service will be within normal operating cycle. Retention money receivable from project customers does not contain any significant financing element, these are retained for satisfactory performance of contract.

(vi) Export Benefits

Export benefits/incentives under various schemes notified by the government have been recognised on the basis of applicable regulations , and when reasonable assurance to receive such revenue is established . The company has chosen to present export benefits/incentives as other operating revenue in the statement of Profit and Loss.

25. Other Income:Accounting Policy(i) Dividend Income

Dividends are recognised in profit and loss only when the right to receive payment is established.

(ii) Interest Income

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is rate that exactly discounts estimated future cash receipts through expected life of the financial asset to gross carrying amount of a financial asset. When calculating effective interest rate, the Company estimates expected cash flows by considering all contractual terms of financial instrument but does not consider expected credit losses.

(iii) Other Income

Other claims including interest on outstanding are accounted for when there is virtual certainty of ultimate collection.

(iv) Foreign Currency Transactions and Balances

Transactions in currencies other than functional currency are translated into functional currency at exchange rates ruling at date of transaction. Monetary assets and liabilities denominated in other currencies are translated into functional currency at exchange rates prevailing on reporting date. Non-monetary assets and liabilities denominated in other currencies and measured at historical cost or fair value are not retranslated.

All exchange differences are included in the statement of profit and loss except any exchange differences on monetary items designated as an effective hedging instrument of the currency risk of designated forecasted sales or purchases, which are recognized in the Other Comprehensive Income.

For advance consideration, date of transaction for purpose of determining exchange rate to use on initial recognition of the related asset or liability , expense or income when the Company has received or paid advance consideration in foreign currency.

29. Employee Benefits Expenses:

Accounting Policy

(i) Short-Term Employee Benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, performance incentives and compensated absences which are expected to occur in next twelve months. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognised as an expense as related service is rendered by employees.

(ii) Compensated Absences

Company provides for encashment of accumulated leaves with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment/ availment. The liability is provided based on number of days of unutilized leave at each Balance Sheet date on basis of an independent actuarial valuation.

(iii) Gratuity

Liabilities with regard to gratuity benefits payable in future are determined by actuarial valuation at each Balance Sheet date using the Projected Unit Credit method and contributed to fund maintained by approved trust and administered through a separate irrevocable trust set up by the Company.

Actuarial gains and losses arising from changes in actuarial assumptions are recognized in Other Comprehensive Income and shall not be reclassified to the Statement of Profit and Loss in subsequent period.

(iv) Provident Fund

Eligible employees of the Company receive benefits from a Provident Fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to provident fund plan equal to a specified percentage of covered employee''s salary.

(v) Share-Based Payments (Employee):

Fair Value of options granted under this option plan is recognised as an employee benefit expense with corresponding increase in equity in accordance with recognition and measurement principles as prescribed in Ind AS 102 Share Based Payments.

Total expense is recognised over the vesting period, which is period over which all of specified vesting conditions are to be satisfied. At end of the reporting period, the company revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises impact of revision to original estimates, if any, in profit and loss, with corresponding adjustment to equity.

Compensated absence (Unfunded)

The Leave Obligation cover the company''s Liability for earned leave. The amount of the provision of '' 87.72 millions (previous year '' 91.23 Million) is presented as non current and '' 12.87 Millions (previous year '' 11.81 Millions) is presented as current. The company has recognised '' 7.62 Millions (previous Year '' (0.70) Millions) for compensated absences in the settlement of Profit and Loss.

Defined Benefit Plant - As Per Actuarial Valuation

The Company operates a defined benefit plan, viz., gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy.

30. Finance Cost:

Accounting Policy

Borrowing Costs directly attributable to acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of asset. Financing Cost incurred on general borrowing used for projects is capitalized at weighted average cost. Amount of such borrowing is determined after setting off amount of internal accruals. All other borrowing costs are expensed in the period in which they occur.

Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds and interest on tax matters. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to borrowing cost.

35. Earnings Per Share (EPS):

Accounting Policy

The Company presents basic and diluted earnings per share ("EPS") data for its equity shares.

(i) Basic EPS is calculated by dividing profit/ (loss) attributable to equity shareholders of the Company by weighted average number of equity shares outstanding during the period.

(ii) Diluted EPS is computed using profit/ (loss) for the year attributable to equity shareholders and weighted average number of equity and potential equity shares outstanding during the period, except where the result would be anti-dilutive. Potential equity shares that are converted during the year are included in the calculation of diluted earnings per share, from the beginning of the year or date of issuance of such potential equity shares, to the date of conversion.

(iii) Employee Stock Option

The Company had approved "KEI Employees Stock Option Scheme" (KEI ESOS 2015 or Scheme) for granting Employees Stock Options in the form of Equity Shares to eligible employees and the same was approved by the members of the Company on September 16, 2015. The plan is administered under the supervision of the Nomination and Remuneration Committee of the Board of Directors of the Company ("Committee") in compliance with the provisions of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, as amended and other applicable provisions for the time being in force. The Nomination and Remuneration Committee had granted 2,252,000 share Options (par value Rs. 2/- each share) on September 23, 2015 and further 15,000 share Options (par value Rs. 2/- each share) were granted on September 25, 2018 which were fully exercised. In Financial Year 2019-20 the Committee further granted 13,95,000 share options (par value Rs. 2/- each share) which will vest over a period of three years from the date of grant.

36. Contingent Liabilities & Commitments:Accounting Policy

In normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees including Guarantees given on behalf of Subsidiary & Joint Venture Companies are also provided in the normal course of business.

There are certain obligations which management of the Company has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Claims against the Company, where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities. Show Cause Notices received are not treated as Contingent Liabilities.

Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company is involved, it is not expected that such contingencies will have a material effect on its financial position or profitability.

Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.

A.

Contingent Liabilities (to the extent not provided for):

('' in Millions)

Particulars

As at

31st March, 2022

As at

31st March, 2021

Claims against Company not acknowledged as debt

(i)

Sales Tax / Entry Tax demands under appeal

26.12

10.60

(ii)

Income tax Matters:

-- Demand due to Additions / disallowances during Assessments, Penalty which are under Appeal

20.02

19.08

(iii)

Excise / Service tax / GST demands under appeal/ Pending appeal

1,227.08

789.38

(iv)

Misc. claims against Company in Labour Court

1.07

1.07

Other money for which Company is contingently liable

(i)

Unutilized Letter of Credits

186.31

506.82

(ii)

Outstanding LC Discounted

1,307.50

600.83

In respect of the items above, future cash outflows in respect of contingent liabilities are determinable only on receipt of judgments/decisions pending at various forums /authority. The Company doesn''t expect the outcome of matters stated above to have a material adverse effect on the Company''s financial conditions, result of operations or cash flows.

B.

Commitments

('' in Millions)

Particulars

As at

31st March, 2022

As at

31st March, 2021

Estimated amount of contracts remaining to be executed on Capital Account

98.76

156.49

For Lease Commitments (refer Note No 5).

(c) Other information

(i) Shri Anil Gupta,Chairman-cum-Managing Director has given personal guarantee to lender banks for company''s borrowings.

(ii) The company has given Performance Bank Gurantees of '' 60.80 Millions (Previous year '' 61.61 Millions) on behalf of Joint Venture of M/s KEI Industries Limited, New Delhi & Brugg Kabel AG Switzerland.

(iii) The company has outstanding Performance Bank Gurantees of '' 10.60 Millions (Previous year '' 26.65 Millions) on behalf of KEI Cables Australia PTY Limited.

(iv) Disclosures in respect of transactions with identified related parties are given only for such period during which such relationships existed.

(v) All outstanding balances pertaining to loans and security deposits with related parties are at fair value.

(vi) Inter corporate loans/advances have been given for business purposes only.

(vii) In case of Loan to subsidiary, since the entire amount is impaired no interest on loan has been charged.

(viii) As the amount for gratutiy and Leave encashment are provided on acturial basis for the company as a whole, the amount pertaining to the KMP and relatives of KMP are not included in their remuneration.

(ix) Transactions with Related parties are made on terms equivalent to those that prevail in arms'' length transactions.

(x) Deposits and loans received from Related Parties are for business purpose and the rate of interest thereon is at arms length price.

38. SEGMENT REPORTING

Accounting Policies:

i. Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision Maker.

ii. Revenue and Expenses are identified to segments on the basis of their relationship to the operating activities of the segment.

iii. Inter segment revenue are accounted for, based on the Arm''s Length Price.

iv. Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are included under “Unallocated revenue / expenses / assets / liabilities".

Disclosure as per Indian Accounting Standard (Ind AS) 108 "Operating Segments"

(i) Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable segment:

Operating segments are identified as those components of the Company (a) that engage in business activ


Mar 31, 2018

1. Company Overview:

KEI Industries Ltd (hereinafter referred to as “KEI” or “the Company”) is a public limited Company incorporated under the provisions of the Companies Act, 1956 having registered office at D-90, Okhla Industrial Area, Phase-I, New Delhi-110020. It was established as a partnership firm “Krishna Electrical Industries” in the year 1968. The firm was later converted into Limited Company on 31st December, 1992. The Company is listed at National Stock Exchange of India Ltd (NSE), BsE Ltd (BSE) and The Calcutta Stock Exchange Ltd. Company has four manufacturing facilities / plants located at Bhiwadi, Chopanki & Pathredi in Rajasthan and Silvassa in Dadra & Nagar Haveli. The Company is engaged in the business of manufacturing, sale and marketing of all range of power cables up to 400kV - Low Tension (LT), High Tension (HT) and Extra High Voltage (EHV), control and instrumentation cables, specialty cables, elastomeric / rubber cables, submersible cables, flexible and house wires, winding wires which address the cabling requirements of a wide spectrum of sectors such as power, oil refineries, railways, automobiles, cement, steel, fertilizers, textile and real estate, amongst others. The Company is also engaged in execution of Engineering, Procurement and Construction (EPC) projects for survey, supply of materials, design, erection, testing & commissioning on a turnkey basis. The Company is manufacturer of Stainless Steel Wire as well. The Company has three major segments cables & wires, turnkey projects and stainless steel wire.

1.1. GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IND AS

The Standalone Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Companies (Indian Accounting Standards) Rules, 2015. For all periods up to and including the year ended 31st March, 2016, 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).

These are the Company’s First Financial Statements prepared in accordance with Ind AS. The Company has followed the provisions of Ind AS 101-”First Time adoption of Indian Accounting Standards” (Ind AS 101), in preparing its opening Ind AS Balance Sheet as of the date of transition, i.e. 1st April, 2016. In accordance with Ind AS 101, the Company has presented reconciliations of Shareholders’ equity under Previous GAAP and Ind AS, as at 1st April, 2016 and of the Profit/(Loss) after Tax as per Previous GAAP and Total Comprehensive Income under Ind AS for the year ended 31st March, 2017. (See note 52 for explanation of the transition to Ind AS).

The financial statements have been prepared on historical cost basis, except for the following assets and liabilities:

i. Certain Financial Assets & Financial Liabilities and Contingent Consideration that are measured at fair value.

ii. Assets held for sale measured at lower of cost or fair value less cost to sell.

iii. Defined benefit plan assets measured at fair value.

iv. Share-based payment liability measured at fair value.

The Company has uniformly applied the Accounting Policies during the period presented, unless otherwise stated.

All amounts are stated in Millions of Rupees.

The Standalone Financial Statements for the year ended 31st March, 2018 were authorized and approved for issue by the Board of Directors on 17th May, 2018.

2.1 (a) Contractual commitments for the acquisition of Property, Plant & Equipment is Rs.132.92 Millions (31st March, 2017: Rs.70.33 Millions, 31^ March, 2016: Rs.248.12 Millions).

(b) Addition in Capital work-in-progress includes borrowing cost capitalised in accordance with Ind AS - 23 on “ Borrowing Cost”. Assetwise break up of borrowing cost capitalised is as below:

(c) Capitalisation rate 10.71% (31st March, 2017: 12.15%, 31st March, 2016: 12.78% ) has been used to determine amount of borrowing cost eligible for capitalisation.

3.1 Company has formed a Joint Venture under name of Joint Venture of KEI Industries Ltd., New Delhi & Brugg Kabel AG, Switzerland (JV) principal place of business india. This Joint Venture is a Jointly Controlled Entity within the meaning of Ind AS - 111 on “Joint Arrangements”. The Joint Venture is in form of a Association of Persons (AOP) and the Company is holding 100% share in Profit / Loss of AOP. Company has not invested any amount as capital in Joint Venture. Investment in Joint Venture is accounted for in accordance with Ind AS-28 “ Investments in Associates and Joint Ventures”.

No trade or other receivable are due from directors or officers of Company either severally or jointly with other person. Nor any trade or other receivable are due from firms or private Companies respectively in which any director is a partner, a director or a member.

The carrying amount of the trade receivables include receivables which are subject to a factoring arrangement.Under this arrangement Company has transferred the relevant receivables to factor in exchange for cash and is prevented from selling or pledging the receivables. However Company has retained late payment and credit risk. Company therefore continues to recognise transferred assets in their entirely in its Balance Sheet. Amount repayable under the factoring arrangement is presented as secured borrowing.

4.1 Rights, preferences and restrictions attached to shares:

Equity Shares: The Company has issued one class of Equity Shares having face value of Rs.2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. 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 proportion to their shareholding.

5. Other Equity:

Refer Statement of Changes in Equity for detailed movement in Equity balance:

A. Summary of Other Equity balance:

B. Nature and purpose of reserves

(a) Capital Reserve: Subscribed capital forfeited due to non- receipt of call money treated as Capital reserve.

(b) Securities Premium Account : Amount received in excess of face value of the equity shares is recognised in Securities Premium Account. In case of equity-settled share based payment transactions difference between fair value on grant date and nominal value of share is accounted as Securities Premium Account.

(c) Employee Stock Options Outstanding (ESOS) : Fair value of equity-settled share based payment transactions with employees is recognised in Statement of Profit and Loss with corresponding credit to Employee Stock Options Outstanding .

(d) General Reserve: The Company has transferred a portion of the net profit of the Company before declaring dividend to General Reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to General Reserve is not required under the Companies Act, 2013.

(e) Retained Earnings: Retained earnings are the profits that the Company has earned till date less any transfers to General Reserve, dividends or other distributions to shareholders.

(f) Foreign Currency Monetary Item Translation Difference Account (FCMITDA): Company has amortised exchange difference on other than depreciable capital items over period of External Commercial Borrowings/ Foreign Currency Convertible Bonds. This is not available for capitalisation/declaration of dividend/ share buy-back.

--Term Loans from Banks and Non- Banking Financial Company (NBFC) are Secured by a first pari passu charge over Land & Building, Plant & Machinery and other movable fixed assets located at the Company’s Plants at Plot No. A-280-284, RIICO Industrial Area, Chopanki; SP-919, RIICO Industrial Area, Phase-III, Bhiwadi, SP 2/874, RIICO Industrial Area, Pathredi and 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa. Further they are secured by personal guarantee of Shri Anil Gupta, Chairman-cum-Managing Director of the Company.

6.1 Finance Lease Obligations are secured against hypothecation of vehicles.

6.2 Unsecured Deposits are repayable within 3 years from the date of acceptance.

6.3 For Loans & Deposits from Related Parties refer note no. 46.

4.1 Working Capital facilities from banks are secured by 1st pari-passu charge by way of hypothecation on the entire current assets including raw material stock in process finished goods consumable stores & spares and receivables of the Company 1st pari-passu charge on present and future fixed assets at SP 920-922, RIICO Industrial Area, Phase III, Bhiwadi, Distt. Alwar (Rajasthan) and movable fixed assets at D-90, Okhla Industrial Area, Phase I, New Delhi, 2nd pari-passu charge by equitable mortgage of property of the Land and Building at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa, (D & N H), Plot No. A 280-284, Chopanki, SP 2/874, RIICO Industrial Area, Pathredi and SP-919, RIICO Industrial Area, Phase III, Bhiwadi, Distt. Alwar, (Rajasthan) both present and future. Further they are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum-Managing Director of the Company.

5.1 In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 and the Companies Act, 2013 the outstanding Interest due thereon interest paid etc to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In absence of information about registration of the enterprises under the above Act, the required information could not be furnished.

6.1 No amount is due for credit to Investor Education and Protection Fund (Fund). Amount remaining due after adjustment of amounts to be claimed from the Company will be transferred on the respective due dates to Fund.

Provision for Leave Encashment:

Leave encashment is a terminal employee benefit, which covers Company’s liability for earned leave.

Provision for Gratuity:

Company provides gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are elegible for gratuity. Gratuity plan is a funded plan and company makes contributions to fund maintained by LIC of India and administrated through irrevocable trust setup by Company.

Provision for Warranty:

Provision for warranty relates to estimated outflow in respect of warranty for products sold/ contracts executed by Company. Due to nature of such costs it is not possible to estimate timing/ uncertainties relating to the outflows of economic benefits.

Risks Associated with Plan Provisions

Valuations are based on certain assumptions which are dynamic in nature and vary over time. As such Company is exposed to various risks as follows:

6.1 Provision for Income Tax for the year is after considering MAT Credit Entitlement of Rs.121.51 Millions (In 31st March, 2017 : Rs.90.18 Millions, In 31st March, 2016 Rs.124.62 Millions).

7.1 Gross amount required to be spent on Corporate Social Responsibility by the Company during the year Rs.18.84 Millions (31st March, 2017 Rs.11.40 Millions).

8. In terms of provision of Ind AS -11 on “Construction Contracts” for Lump Sum Turnkey Projects for contract in progress as on 31st March, 2018:

i) The aggregate amount of cost incurred and recognised profit upto 31st March, 2018 Rs.16,137.26 Millions, (31st March, 2017: Rs.12,765.05 Millions).

ii) The amount of advances received Rs.237.04 Millions (31st March, 2017: Rs.270.88 Millions).

iii) The amount of retention Rs.1,607.22 Millions (31st March, 2017: Rs.1,269.51 Millions).

iv) Gross amount due to customers Rs.1,710.75 Millions (31st March, 2017: Rs.14.40 Millions).

v) Gross amount due from customers Rs.652.78 Millions (31st March, 2017: Rs.290.36 Millions).

9. Employee Stock Options:

a) The Company had approved “KEI Employees Stock Option Scheme” (KEI ESOS 2015 or Scheme) for granting Employees Stock Options in the form of Equity Shares to eligible employees and the same was approved by the members of the Company on September 16, 2015. The plan is administered under the supervision of the Nomination and Remuneration Committee of the Board of Directors of the Company (“Committee”) in compliance with the provisions of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and other applicable provisions for the time being in force. The Nomination and Remuneration Committee had granted 2,252,000 Options on September 23, 2015 which will vest over a period of four years from the date of grant in the following manner:

b) The above said options can be exercised any time within a period of 30 days from the date of vesting and will be settled by way of equity shares in accordance with the aforesaid scheme. During the year 2016-17 & 2017-18, Share Allotment Committee allotted Equity Shares of face value Rs.2/each to the eligible employees as per Scheme.

Summary of options granted under the Scheme are:

Refer Note 32 for expense recognised during the year on account of ESOP as per Ind AS 102 - Share Based Payments.

9.1 Company has taken land on long term financial lease from various Government Authorities in India. Present value of minimum lease payment under finance lease is NIL.

9.2 Operating Leases - Other than non-cancellable:

Company has entered into lease transactions during the current financial year mainly for leasing of factory/office/residential premises/Computers and Company leased accommodations for its employees for periods up to 10 years. Terms of lease include terms of renewal, increase in rents in future periods and terms of cancellation. Operating lease payments are recognised in the Profit & Loss under respective heads.

10. Investment in subsidiary and joint venture:

a) These financial statement are separate financial statements prepared in accordance with Ind AS-27 “ Separate Financial Statements”.

b) Company’s investment in direct subsidiary are as under:

c) Company’s investment in Joint Venture is as under:

46. Related party Disclosures as required by Indian Accounting Standard (IND AS-24):

a) Name of Related Parties :

i) Subsidiary Company

KEI Cables Australia PTY Limited

ii) Jointly Controlled Entity

Joint Venture of M/s KEI Industries Limited, New Delhi & Brugg Kabel AG, Switzerland (Association of Persons).

iii) Other related parties in the group where common control exists:

Anil Gupta (HUF)

Projection Financial & Management Consultants Private Limited

Shubh Laxmi Motels & Inns Private Limited

Soubhagya Agency Private Limited

Dhan Versha Agency Private Limited

KEI Cables Private Limited

iv) Key Managerial Personnel:

Shri Anil Gupta, Chairman-cum-Managing Director

Shri Rajeev Gupta, Executive Director Finance

Shri Akshit Diviaj Gupta, Whole Time Director w.e.f. 10th May, 2017

Shri Kishore Kunal, Company Secretary

v) Relatives of Key Managerial Personnel with whom transaction have taken place:

Shri Sunil Gupta

Smt. Archana Gupta, Director

Late Smt. Sumitra Devi Gupta (Expired on 9th June, 2017 )

Smt. Shashi Gupta Smt. Vimla Devi Smt. Veena Agarwal Smt. Shweta Jha

Shri Akshit Diviaj Gupta, Whole Time Director w.e.f. 10th May, 2017

vi) Enterprises over which person mentioned in (v) above are able to exercise significant control and transactions have taken place:

Sunil Gupta (HUF)

Ashwathama Constructions Private Limited

c) Non-Financial Transactions

(i) Shri Anil Gupta has given personal guarantee to banks for Company’s borrowings.

(ii) The Company has given Performance Bank Gurantees of Rs.61.61 Millions (Previous Year Rs.61.61 Millions) on behalf of Joint Venture of M/s KEI Industries Limited, New Delhi & Brugg Kabel AG, Switzerland.

(iii) The Company has given Performance Bank Gurantees of Rs.55.52 Millions (Previous Year NIL) on behalf of KEI Cables Australia PTY Limited.

(iv) Disclosures in respect of transactions with identified related parties are given only for such period during which such relationships existed.

11. Disclosure as per Indian Accounting Standard (Ind AS) 108 “Operating Segments”:

a) Operating Segments

Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating Decision Maker “CODM” of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments. Management currently identifies the Company’s three product lines as its Operating Segments as per Ind AS 108 “Operating Segments”.

- Cables

- Stainless Steels & Wires

- Turnkey Projects

b) Segment Revenue & Expenses

Revenue & Expenses directly attributable to the segment is considered as “Segment Revenue & Segment Expenses”. Interest expenses are shown in unallocated.

12. Fair Value Hierarchy:

This Section explains the judgements and estimates made in determining fair values of financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication about reliability of inputs used in determining fair value, group has classified its financial instruments into three levels prescribed under accounting standard. An explanation of each level follows underneath the table:

Fair value of financial instruments as referred to in note above has been classified into three categories depending on inputs used in valuation technique. Hierarchy gives highest priority to quoted prices in active market for identical assets or liabilities (level 1 measurement) and lowest priority to unobservable inputs (level 3 measurements).

The categories used are as follows:

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

Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

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

Company’s policy is to recognize transfers into and transfer out of fair value hierarchy levels as at the end of the reporting period.

13. Financial Risk Management:

Company’s businesses are subject to several risks and uncertainties including financial risks. Company’s documented risk management polices, act as an effective tool in mitigating various financial risks to which business is exposed to in course of their daily operations. Risk management policies cover areas such as liquidity risk, commodity price risk, foreign exchange risk, interest rate risk, counterparty and concentration of credit risk and capital management.

Company’s senior management oversees management of these risks. Senior professionals working to manage financial risks and appropriate financial risk governance framework for Company are accountable to Board of Directors and Audit Committee. This process provides assurance to Company’s senior management that Company’s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective.

13.1. MARKET RISK

Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

- Currency Risk

- Price Risk

- Commodity Price Risk

- Interest Rate Risk

Above risks may affect Company’s income and expenses, or value of its financial instruments. Company’s exposure to and management of these risks are explained below.

13.1.1. CURRENCY RISK - POTENTIAL IMPACT OF RISK & MANAGEMENT POLICY

Company undertakes transactions denominated in foreign currencies mainly related to its operating activities. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

Carrying amounts of Company’s foreign currency denominated monetary assets and monetary liabilities at end of reporting period were as follows:

13.1.2. CURRENCY RISK - SENSITIVITY TO RISK

Following table demonstrates sensitivity to a reasonably possible change in USD, EUR, AUD exchange rates, with all other variables held constant. Impact on Company profit before tax is due to changes in fair value of monetary assets and liabilities. Foreign currency exposures recognised by Company that have not been hedged by a derivative instrument or otherwise are as under:

13.1.3. PRICE RISK - POTENTIAL IMPACT OF RISK & MANAGEMENT POLICY

(a) Company is exposed to the price risk due to its investment in Equity Shares & Mutual Funds. Price risk arises due to uncertainties about future market values of these investments.

(b) Company reviews its investment at regualr intervals in order to minimise price risk arising from investments in Equity Shares & Mutual Funds.

(c) Majority of investments of Company are publicly traded and listed in NSE Index. Carrying amounts of the Company’s investment in Equity Shares & Mutual Funds at the end of the reporting period are given in Note 6.

13.1.4. PRICE RISK - SENSITIVITY TO RISK

Following table demonstrate sensitivity to a reasonably possible change in equity index where investments of Company are listed. Impact on Company’s profit before tax is due to changes in NSE Index.

13.1.5. COMMODITY PRICE RISK - POTENTIAL IMPACT OF RISK & MANAGEMENT POLICY

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing manufacture of industrial and domestic cable and therefore require a continuous supply of major items of raw material viz copper and Aluminium. Due to the volatility of the prices of the Copper and Aluminium, Company has entered into various purchase contracts for these materials. The Company’s Board of Directors has adopted a risk management strategy regarding commodity price risk and its mitigation. The Company partly mitigated the risk of price volatility by entering into the contract for purchase of these raw material based on average price for each month.

13.1.6. INTEREST RATE RISK - POTENTIAL IMPACT OF RISK & MANAGEMENT POLICY

(a) Company invests in term deposits for a period of less than one year. Considering short-term nature, there is no significant interest rate risk pertaining to these deposits.

(b) Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Company’s exposure to risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates and term deposits. Company’s fixed rate borrowings and deposits are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither carrying amount nor future cash flows will fluctuate because of a change in market interest rates.

(c) Risk is managed by Company by maintaining an appropriate mix between fixed and floating rate of borrowings.

Exposure of Company’s borrowing to interest rate changes at end of reporting period are as follows:

13.1.7. INTEREST RATE RISK - SENSTIVITY

Sensitivity analysis below has been determined based on exposure to interest rates for non-derivative instruments at end of reporting period. For floating rate liabilities, analysis is prepared assuming amount of liability outstanding at end of reporting period was outstanding for whole year.

14.2. CREDIT RISK

(a) Credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss to Company.

(b) Company is exposed to credit risk from its operating activities (primarily trade receivables and also from its investing activities including deposits with banks, forex transactions and other financial instruments) for receivables, cash and cash equivalents, short-term investments, financial guarantees and derivative financial instruments. Credit limits are set based on a counterparty value. Methodology used to set list of counterparty limits includes, counterparty Credit Ratings (CR) and sector exposure. Evolution of counterparties is monitored regularly, taking into consideration CR and sector exposure evolution. As a result of this review, changes on credit limits and risk allocation are carried out.

(c) In respect of its investments, Company aims to minimize its financial credit risk through application of risk management policies.

(d) For financial instruments, Company attempts to limit credit risk by only dealing with reputed banks and financial institutions.

(e) None of Company’s cash equivalents, including time deposits with banks, are past due or impaired.

(f) Trade receivables are subject to credit limits, controls & approval processes. These terms and conditions are determined on a case to case basis with reference to customer’s Credit quality and prevailing market conditions. Credit quality of Company’s customers is monitored on an ongoing basis and assessed for impairment where indicators of such impairment exist. Due to large geographical base & number of customers, Company is not exposed to material concentration of credit risk. Based on historical experience, risk of default in case of trade receivable is low. Provision is made for doubtful receivables on individual basis depending on the customer ageing, customer category, specific credit circumstances & the historical experience of Company. Solvency of customers and their ability to repay receivable is considered in assessing receivables for impairment. Where receivables are impaired, Company actively seeks to recover amounts in question and enforce compliance with credit terms.

(g) Company assesses and manages credit risk of Financial Assets based on following categories arrived on basis of assumptions, inputs and factors specific to class of Financial Assets.

A: Low Credit Risk on financial reporting date B: Moderate Credit Risk C: High Credit Risk Company provides for Expected Credit Loss based on following:

C: High Credit Risk Nil:

(a) Liquidity risk is the risk that Company will face in meeting its obligations associated with its financial liabilities. Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.

(b) Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2018 and 31st March, 2017.

(c) Cash flow from operating activities provides funds to service financial liabilities on a day-to-day basis.

(d) Company regularly monitors rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated is used for working capital management.

(e) Following table analyse Company’s financial liabilities into relevent maturity grouping based on their contractual maturity for all non derivative financial liabilities.

Company has hypothecated all of its Plant & Machinery, Factory Building, Trade Receivables and Cash & Cash Equivalents in order to fulfill collateral requirements for financial facilities in place. The counterparties have an obligation to return the securities to Company.

Under terms of major borrowings facilities, Company is required to comply with certain financial covenants and Company has complied with those covenants throughout the reporting period.

15. Capital Management:

15.1 RISK MANAGEMENT

Capital management is driven by Company’s policy to maintain a sound capital base to support the continued development of its business. The Board of Directors seeks to maintain a prudent balance between different components of Company’s capital. Management monitors capital structure and net financial debt at individual currency level. Net financial debt is defined as current and non-current financial liabilities less cash and cash equivalents and short term investments.

Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile Equity, Total Comprehensive Income and Cash Flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

15.1 FIRST TIME ADOPTION OF IND AS

Company has adopted Indian Accounting Standards (Ind AS) as notified by Ministry of Corporate Affairs with effect from 1st April, 2017, with transition date of 1st April, 2016. These financial statements for year ended 31st March, 2018 are the first financial statements Company has prepared under Ind AS. For all periods up to and including the year ended 31st March, 2017, Company prepared its financial statements in accordance with the Accounting Standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of Companies (Accounts) Rules, 2014 (‘Previous GAAP’).

Adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, Company has prepared financial statements which comply with Ind AS for year ended 31st March, 2018, together with comparative information as at and for year ended 31st March, 2017 and opening Ind AS Balance Sheet as at 1st April, 2016 date of transition to Ind AS.

In preparing these Ind AS financial statements, Company has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between carrying values of assets and liabilities in financial statements as at transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity).

This note explains adjustments made by Company in restating its financial statements prepared under previous GAAP, including Balance Sheet as at 1st April, 2016 and financial statements as at and for year ended 31st March, 2017.

15.1.1 OPTIONAL EXEMPTIONS FROM RETROSPECTIVE APPLICATION

Ind AS 101 permits first-time adopter’s certain exemptions from retrospective application of certain requirements under Ind AS. Company has elected to apply following optional exemptions from retrospective application:

A. DEEMED COST FOR PROPERTY, PLANT AND EQUIPMENT AND OTHER INTANGIBLE ASSETS

On transition to Ind AS, Company has elected to continue with carrying value of all of its Property, Plant and Equipment and Other Intangible Assets recognised as at 1st April, 2016 measured as per the Previous GAAP and use that carrying value as deemed cost of Property, Plant and Equipment and Intangible Assets.

B. INVESTMENTS IN SUBSIDIARIES AND JOINT VENTURES

Company has elected to measure its investments in subsidiary and joint venture at the Previous GAAP carrying amount as its deemed cost on date of transition to Ind AS.

C. LEASES

Appendix C to Ind AS 17-”Leases” requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at inception of contract or arrangement. Ind AS 101 provides an option to make this assessment on basis of facts and circumstances existing at date of transition to Ind AS except where effect is expected to be not material. Company has elected to apply this exemption for such contracts/arrangements.

D. LONG-TERM FOREIGN CURRENCY MONETARY ITEMS

Company has elected to continue its Previous GAAP policy (Paragraph 46A of AS 11 under Previous GAAP) for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in financial statements for period ending immediately before beginning of first Ind AS financial reporting period.

15.1.2 MANDATORY EXCEPTIONS FROM RETROSPECTIVE APPLICATION

Company has applied following exceptions to retrospective application of Ind AS as mandatorily required under Ind AS 101:

A. ESTIMATES

On assessment of estimates made under Previous GAAP financial statements, Company has concluded that there is no necessity to revise estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by Company for relevant reporting dates reflecting conditions existing as at that date.

B. CLASSIFICATION AND MEASUREMENT OF FINANCIAL ASSETS

Ind AS 101 requires an entity to assess classification and measurement of financial assets on basis of facts and circumstances that exist on date of transition to Ind AS. Accordingly, Company has applied above requirement prospectively. Classification of financial assets to be measured at amortised cost or fair value through other comprehensive income is made on basis of facts and circumstances that existed on date of transition to Ind AS.

C. DERECOGNITION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Ind AS 101 requires a first time adopter to apply derecognition provisions of Ind AS 109 prospectively for transactions occurring on or after date of transition to Ind AS. Accordingly, Company has applied derecognition requirement for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after date of transition to Ind AS.

D. IMPAIRMENT OF FINANCIAL ASSETS

Ind AS 101 requires an entity to assess and determine impairment allowance on financial assets as per Ind AS 109 using reasonable and supportable information that is available without undue cost or effort to determine credit risk at the date that financial instruments which were initially recognised and compare that to credit risk at date of transition to Ind AS. Company has applied this exception prospectively.

15.1.3 TRANSITION TO IND AS - RECONCILIATIONS

Ind AS 101 requires that an entity should explain how transition from previous GAAP to Ind AS affected its reported balance sheet, financial performance and cash flows, accordingly Company has prepared:

i. Reconciliation of Equity as at 1st April, 2016 (refer Note no. 52).

ii. Reconciliation of Equity as at 31st March, 2017 (refer Note no. 52).

iii. Reconciliation of Statement of Profit and Loss for year ended 31st March, 2017 (refer Note no. 52).

iv. Adjustments to Statement of Cash Flows for year ended 31st March, 2017 (refer Note 52).

15.1.4 NOTES TO RECONCILIATION OF BALANCE SHEET AS AT 1st APRIL, 2016 AND 31st MARCH, 2017 AND TOTAL COMPREHENSIVE INCOME FOR YEAR ENDED 31st MARCH, 2017. ( refer note no. 52)

A. AMORTIZATION OF LEASE HOLD LAND

Under previous GAAP, long-term leasehold land is recognised at transaction value and annual lease rentals are recognised as expense on time period basis. Under Ind AS, long-term leasehold land are assessed as being finance or operating lease and accordingly accounted.

Company has recognised lease hold land appearing in Property Plant & Equipments under finance lease model and accordingly amortisation of leasehold land is recorded for remaining life of leasehold land considering deemed cost exemption on transition date. As a result of this change, Profit for year ended 31st March, 2017 decreased by Rs.3.57 Millions Consequently, total Equity decreased by Rs.3.57 Millions as at 31st March, 2017 (1st April, 2016 NIL).

B. FAIR VALUE OF INVESTMENTS

Under previous GAAP, investments in Equity Instruments and Mutual Funds were classified as long-term investments or current investments based on intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. Resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) have been recognised in retained earnings as at date of transition and subsequently in Profit & Loss for year ended 31st March, 2017.

Fair value changes with respect to investments in equity instruments designated as at FVOCI have been recognised in FVOCI - Equity Investment Reserve as at date of transition and subsequently in other Comprehensive Income (OCI) for year ended 31st March, 2017. This decreased other reserves by Rs.3.85 Millions as at 31st March, 2017 (1st April, 2016 - decreased Rs.10.62 Millions).

C. TRADE RECEIVABLES

Under previous GAAP, Company has created provision for Trade Receivables in respect of specific amounts based on management estimate of recoverability. Under Ind AS, impairment allowance has been determined based on Life time Expected Credit Loss model (ECL) for Trade Receivables. As a result of this change, Profit for year ended 31st March, 2017 decreased by Rs.43.94 Millions. Consequently, total equity decreased by Rs.157.81 Millions as at 31st March, 2017 (1st April, 2016 Rs.113.87 Millions).

D. BORROWINGS

Under previous GAAP, transaction costs incurred towards origination of borrowings were charged to profit or loss as and when incurred. Ind AS 109 requires these transaction costs to be deducted from carrying amount of borrowings on initial recognition. These costs are recognised in profit or loss over tenure of borrowing as part of interest expense by applying effective interest rate method.

Accordingly, borrowings as at 31st March, 2017 have been reduced by Rs.13.75 Millions. (1st April, 2016 Rs.30.24 Millions) with a corresponding adjustment to retained earnings. Total equity increased by an equivalent amount. Profit for year ended 31st March, 2017 reduced by Rs.16.49 Millions as a result of additional interest expense.

E. BORROWING COST & INCREASE IN VALUE OF PPE & DEPRECIATION

Under previous GAAP, Borrowing costs include interest and commitment charges on bank borrowings and other short-term and long-term borrowings. Ind AS 23 requires interest expense to be calculated using effective interest method as described in Ind AS 109, Financial Instruments.

Accordingly, borrowing cost and subsequently Property Plant & Equipment (PPE) capitalised as at 31st March, 2017 have been increased by Rs.1.48 Millions (1st April, 2016: NIL). Profit for year ended 31st March, 2017 reduced by Rs.0.02 Millions as a result of additional depreciation expense.

F. BANK OVERDRAFTS & DE-RECOGNITION OF TRADE RECEIVABLES

As per Ind AS 109, Trade Debtors are derecognized only if significant control and risk are transferred. In case of factoring of debtors on ‘Recourse’ Debtors on account of Bill Discounting, Channel Financing & LC with Recourse added to gross Debtors, with corresponding impact on increase in short term borrowings.

Accordingly, Company has re-recognised Debtors which were de-recognised earlier on account of Bill Discounting & Channel Financing as at 31st March, 2017 have been increased by Rs.1011.21 Millions (1st April, 2016 Rs.689.59 Million) with corresponding impact on short term borrowings from banks. There is no impact on total equity and profit as at 1st April, 2016 & 31st March, 2017.

G. WARRANTY PROVISION

As per Ind AS - 37, Company has recognised a provision for expected cost to be incurred on completed and ongoing Turnkey Projects and Sale of Cable during effective defect liability period. Consequently, Profit for year ended 31st March, 2017 decreased by Rs.5.41 Millions and total equity decreased by Rs.17.81 Millions as at 31st March, 2017 (1st April, 2016 Rs.12.40 Millions).

H. DEFERRED TAX

Previous GAAP requires deferred tax accounting using income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using balance sheet approach, which focuses on temporary differences between carrying amount of an asset or liability in balance sheet and its tax base. Application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Previous GAAP.

I. PROPOSED DIVIDEND

Under previous GAAP, Dividends proposed by Board of Directors after balance sheet date but before approval of financial Statements were considered as adjusting events. Accordingly, provision for Proposed Dividend was recognised as a liability till 31st March, 2016.

Under Ind AS, such Dividends are recognised when the same is approved by shareholders in the general meeting. Accordingly, liability for Proposed Dividend and Dividend Distribution Tax has been reversed with corresponding adjustment to Retained Earnings. As a result of this change, total equity increased by Rs.46.48 Millions as at 1st April, 2016. There was no impact as at 31st March, 2017.

J. EXCISE DUTY

Under previous GAAP, Revenue from sale of products was presented exclusive of Excise Duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. Excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for year ended 31st March, 2017 by Rs.1661.10 Millions. There is no impact on total equity and profit as at 31st March, 2017 & 1st April, 2016.

K. CASH & TRADE DISCOUNT

Under previous GAAP, Cash & Trade discount was presented under other expenses. Under Ind AS revenue from sales of goods is recognised at fair value of consideration expected to be received. Accordingly, Cash & Trade Discount given by Company to Buyers have been re-measured. This change has resulted in decrease in total revenue and total expense for year ended 31st March, 2017 by Rs.130.44 Million. There is no impact on total equity and profit as at 31st March, 2017 & 1st April, 2016.

L. FREIGHT INCOME & FREIGHT CHARGES

As per Ind AS 18, Revenue includes gross inflows of economic benefits received and receivable by entity on its own account. Accordingly, Freight charged by Company on invoices has been re-measured as part of Revenue. This change has resulted in increase in total revenue and total expense for year ended 31st March, 2017 by Rs.98.24 Million. There is no impact on total equity and profit as at 31st March, 2017 & 1st April, 2016.

M. RE-MEASUREMENT OF DEFINED BENEFIT OBLIGATION

Both under previous GAAP and Ind AS, Company recognised costs related to its post employment defined benefit plan on an actuarial basis. Under previous GAAP, entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, re-measurements i.e. actuarial gains and losses and return on plan assets, excluding amounts included in net interest expense on net defined benefit liability are recognised in balance sheet through other comprehensive income. Thus, employee benefits expense is reduced by Rs.11.37 Million and is recognised in other comprehensive income during year ended 31st March, 2017. Related tax expense of Rs.3.94 Million has also been reclassified from Profit and loss account to other comprehensive income. There is no impact on total equity as at 31st March, 2017 & 1st April, 2016.

N. SHARE BASED PAYMENTS

Under Previous GAAP, Company recognised only intrinsic value for long-term incentive plan as an expense. Ind AS requires fair value of share options to be determined using an appropriate pricing model recognised over vesting period. An additional expense of Rs.6.47 Millions has been recognised in profit or loss for year ended 31st March, 2017. There is no impact on total equity as at 31st March, 2017 & 1st April, 2016.

O. SECURITY DEPOSITS

Under previous GAAP, interest free lease security deposits (that are refundable in cash on completion of lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, Company has fair valued these security deposits under Ind AS.

Difference between fair value and transaction value of security deposit has been recognised as prepaid rent. Consequent to this change, amount of Security Deposits decreased and proportionate decrease in prepaid rent by Rs.2.01 Million as at 31st March, 2017 (1st April, 2016 Rs.2.33 Million). Total profit for the year 31st March, 2017 decreased by Rs.0.08 Millions and Total equity as at 31st March, 2017 decreased by Rs.0.33 Millions (Rs.0.25 Millions as on 1st April, 2016) due to amortisation of prepaid rent of which is partially off-set by notional interest income recognised on security deposits.

P. LOAN & ADVANCES TO EMPLOYEES

Under previous GAAP, interest-free loan and advances given to employees and workers are reported at their transaction values. Under Ind AS, interest-free loan and advances are measured at fair value on initial recognition and at amortised cost on subsequent recognition. Difference between transaction value and fair value of loan and advances at initial recognition is treated as employee benefit expenses.

Difference between fair value and transaction value of loan and advances has been recognised as employee benefit expenses. Consequent to this change, amount of loan and advances decreased by Rs.0.74 Million as at 31st March, 2017 (1st April, 2016 Rs.0.47 Million). Total Profit for the year 31st March, 2017 decreased by Rs.0.27 Million and Total equity as at 31st March, 2017 decreased by Rs.0.74 Million (Rs.0.47 Millions as on 1st April, 2016) due to increase in employee benefits expenses which is partially off-set by notional interest income recognised on loan and advances.

Q. RETAINED EARNINGS

Retained earnings as at 1st April, 2016 has been adjusted consequent to above Ind AS transition adjustments.

R. OTHER COMPREHENSIVE INCOME

Under previous GAAP, Company had not presented Other Comprehensive Income (OCI) separately. Hence, it has reconciled Indian GAAP profit to profit as per Ind AS. Further, Indian GAAP profit is reconciled to total comprehensive income as per Ind AS.

16. Events After Balance Sheet Date:

Board of Directors have Proposed Dividend Rs.1.00 per share on face value of Rs.2.00 per share (previous year ‘0.60 per share on face value of Rs.2.00 per share). If approved by Members of the Company in ensuing Annual General Meeting of the Company the total out flow of cash will be Rs.94.47 millions Including Dividend Distribution Tax.

17. Previous Year’s figures have been regrouped / rearranged wherever necessary.


Mar 31, 2017

1. Rights, preferences and restrictions attached to shares:

Equity Shares: The company has issued one class of equity shares having face value of Rs.2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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 proportion to their shareholding.

During the year 5,60,000 (Previous Year NIL) Equity Shares of face value Rs.2/- each were issued to eligible employees of the Company under KEI Employees Stock Option Scheme-2015, at an exercise price of Rs.35/- per equity share.

2. Shares reserved for issue under KEI Employees Stock Option Scheme, 2015:

During the year, Share Allotment Committee of the Board has issued and allotted 5,60,000 (Previous Year NIL) Equity Shares of face value of Rs.2/- each to eligible employees at an exercise Price of Rs.35/- per share, out of total 22,52,000 Options granted under KEI Employees Stock Option Scheme 2015. Accordingly 16,92,000 Equity shares (Previous Year 22,52,000) of Rs.2/- each are reserved for the issue under KEI Employees Stock Option Scheme 2015. Refer Note 24.3.

3. The Board of Directors of the Company has recommended dividend of Rs.0.60 ( Previous year Rs.0.50) per share of the face value of Rs.2/- each. The dividend, if declared at the ensuing Annual General Meeting, will result in cash outflow of Rs.46.68 Millions.

During the previous year, the Company had made a provision for the dividend declared by the Board of Directors as per the requirements of pre-revised Accounting Standard 4 - ''Contingencies and Events Occuring after the Balance sheet date'' (AS4).However, as per the requirements of revised AS 4, the Company is not required to provide for dividend proposed/ declared after the balance sheet date. Consequently, no provision has been made in respect of the aforesaid dividend proposed by the Board of Directors for the year ended March 31, 2017. Had the Company continued with the creation of provision of proposed dividend, as at the balance sheet date, its balance in Surplus would have been lower by Rs.56.18 Millions and Short Term Provision would have been higher by Rs.56.18 Millions (including dividend distribution tax Rs.9.50 Millions).

4. Are amortized over period of foreign currency monetary item or up to 31st March 2020, whichever is earlier.

5. Nature of Security:

- Term Loans from Banks and Non- Banking Financial Company (NBFC) are Secured by a first pari passu charge over Land & Building, Plant & Machinery and other movable fixed assets located at the Company''s Plants at Plot No. A-280-284, Chopanki, SP-919,Bhiwadi and 99/2/7, Madhuban Industrial Estate, Silvassa. Further, they are secured by personal guarantee of Shri Anil Gupta, Chairman-cum-Managing Director of the Company.

6. Finance Lease Obligations are secured against leased assets.

7. Working Capital facilities from banks are secured by 1st pari-passu charge by way of hypothecation on the entire current assets including raw material, stock in process, finished goods, consumable stores & spares and receivables of the Company, 1st pari-passu charge on present and future fixed assets at SP-920 & SP-922, RIICO Industrial Area Phase III, Bhiwadi , Distt. Alwar (Rajasthan) and movable fixed assets at D-90, Okhla Industrial Area, Phase I , New Delhi , 2nd pari-passu charge by equitable mortgage of property of the Land and Building at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa (D & N H), Plot No. A 280-284, Chopanki and SP-919, RIICO Industrial Area Phase III, Bhiwadi , Distt. Alwar (Rajasthan) both present and future. Further, they are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum-Managing Director of the Company.

8. In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006 and the Companies Act 2013, the outstanding, Interest due thereon, interest paid etc to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In absence of information about registration of the enterprises under the above Act, the required information could not be furnished.

9. No amount is due for credit to Investor Education and Protection Fund (Fund). Amount remaining due after adjustment of amounts to be claimed from the Company will be transferred on the respective due dates to Fund.

10. Provision for Income Tax for the year is after considering MAT Credit Entitlement of Rs.90.18 Millions (Previous Year Rs.124.62 Millions)

11.

(a) Carrying value of Assets acquired under hire purchase as on 31.03.2016 exclude the amount related to hire purchase agreement settled during the current year.

(b) Addition are after adjusting exchange gain (net) Rs.10.92 Millions ( Previous Year Rs. Nil ) .

(c) Addition during the Year and Capital work-in-progress include Rs.39.44 Millions ( previous year Rs.21.59 Millions) being borrowing cost capitalised in accordance with Accounting Standard (AS) 16 on "Borrowing Cost". Assets wise break-up of Borrowing Costs capitalised is as belows:

Company has formed a Joint Venture under name of Joint Venture of M/s KEI Industries Ltd New Delhi & M/s Brugg Kable AG Switzerland (JV). This JV is a Jointly Controlled Entity within the meaning of Accounting Standard - 27 on "Financial Reporting of Interests in Joint Ventures". The JV is in form of a Association of Persons (AOP) and the Company is having 100% share in Profit / Loss of AOP. Company has not invested any amount as capital in JV.

12. Due from Joint Venture of M/s KEI Industries Ltd New Delhi & M/s Brugg Kable AG Switzerland (JV) as on 31.03.2017 is Rs. Nil (Previous Year Rs.52.00 Millions).

13. Fixed Deposits with Banks Rs.44.24 Millions (Previous Year Rs.32.95 Millions) are under lien/custody with Banks /Others.

19.4 Up to March 31, 2016, in respect of contracts wherein the minimum progress of 25% had not been achieved, the Company was not recognizing profit on those contracts. During the year the Company has changed this estimate to 10% instead of 25% keeping in view experience of company in executing the contracts and nature of contracts. This has resulted in increase in Profit before Tax by Rs.3.82 Millions and increase in Revenue by Rs.3.82 Millions.

14. Disclosures under Accounting Standard 15 "Employee Benefits": Defined Contribution Plan

Amount recognized as an expense in defined contribution plans:

15. Employee Stock Options:

a) The Company had approved "KEI Employees Stock Option Scheme" (KEI ESOS 2015 or Scheme) for granting Employees Stock Options in the form of Equity Shares to eligible employees and the same was approved by special resolution passed by the members of the Company on September 16, 2015. The plan is administered under the supervision of the Nomination and Remuneration Committee of the Board of Directors of the Company ("Committee") in compliance with the provisions of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and other applicable provisions for the time being in force. The Nomination and Remuneration Committee had granted 2,252,000 Options on September 23, 2015 which will vest over a period of four years from the date of grant in the following manner:

b) The above said options can be exercised any time within a period of 30 days from the date of vesting and will be settled by way of equity shares in accordance with the aforesaid scheme. During the year, Share Allotment Committee on September 24, 2016 had allotted 5,60,000 Equity Shares of face value Rs.2/- each at an exercise price of Rs.35/- per share to the eligible employees as per KEI Employees Stock Option Scheme (KEI ESOS 2015 or Scheme)

Details of options are as under:

16. Represents excise duty borne by the company and difference between excise duty on opening stock and closing stock of finished goods.

17. Gross amount required to be spent on Corporate Social Responsibility by the Company during the year Rs.11.40 Millions (Previous Year Rs.7.94 Millions ).

The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders. The particulars of dividends declared and paid to non-resident shareholders for the year 2015-16 & 2014-15 are as above.

18. In terms of provision of AS -7 on "Construction Contracts" for Lump Sum Turnkey Projects for contract in progress as on 31.03.2017

i) The aggregate amount of cost incurred and recognized profit up to 31.03.2017 Rs.12765.05 Millions (Previous Year Rs.9201.63 Millions ).

ii) The amount of advances received Rs.270.88 Millions (Previous Year Rs.85.57 Millions ). ii) The amount of retention Rs.1269.51 Millions (Previous Year Rs.781.64 Millions ).

iv) Gross amount due to customers Rs.14.4 Millions (Previous Year Rs.616.27 Millions ).

v) Gross amount due from customers Rs.290.38 Millions (Previous Year Rs.276.81 Millions ).

c) Non Financial Transactions:

(i) Shri Anil Gupta has given personal guarantee to banks for Company''s borrowings.

(ii) The remuneration does not include Gratuity and Provision for leave encashment under Accounting Standard-15 (Revised), mediclaim and personal accident insurance premium, since same is not available for individual employees.

(iii) The Company has given Performance Bank Gurantees of Rs.61.61 Millions (Previous Year Rs.59.31 Millions on behalf of Joint Venture of M/s KEI Industries Limited, New Delhi & Brugg Kabel A.G. Switzerland.

19. Future lease obligation by way of lease rental:

20. Operating Leases-Other than non-cancellable:

The Company has entered into lease transactions during the current financial year mainly for leasing of factory/office/residential premises/Computers and company leased accommodations for its employees for periods up to 10 years. Terms of lease include terms of renewal, increase in rents in future periods and terms of cancellation. The Operating lease payments recognized in the Profit & Loss amount to Rs.51.97 Millions (Previous year Rs.40.55 Millions) for the leases which commenced on or after April 1, 2001.

21. Segment information pursuant to Accounting Standard (AS-17) " Segment Reporting": 32(a) Information about Primary Business Segments:

22(c) Notes :

i) The Company is organized into business segments, namely:

- Cables comprising of EHV, HT & LT Power Cables , Control and Instrumentation Cables, Winding Wires & Flexible and House Wires.

- Stainless Steel Wire comprising of Stainless Steel Wire.

- Turnkey projects etc.

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organization structure, and the internal financial reporting systems.

ii) Segment Revenue in each of the above domestic business segments primarily includes sales, job work income and export incentives in the respective segments.

iii) The Segment Revenue in the geographical segments considered for disclosure are as follows:

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

iv) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

Explanation: For the purposes of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.".

23 Previous Year''s figures have been regrouped / rearranged wherever necessary.


Mar 31, 2016

1. Rights, preferences and restrictions attached to shares:

Equity Shares: The Company has issued one class of equity shares having face value of Rs, 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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 proportion to their shareholding.

2. Shares reserved for issue under KEI Employees Stock Option Scheme, 2015:

During the year, Nomination and Remuneration Committee of the Board has granted 2,252,000 Options to eligible employees of the Company. Accordingly 2,252,000 Equity Shares (Previous Year Nil) of Rs, 2/- each are reserved for the issue under KEI Employees Stock Option Scheme 2015 (KEI ESOS 2015). Refer Note 24.2.

3. Written Down Value of Assets whose useful life is already exhausted as on 1st April, 2014, amounting to Nil ( Previous Year Rs, 20.27 millions) has been recognized in the opening balance of General Reserve.

4. Are amortized over period of foreign currency monetary item or up to 31st March 2020, whichever is earlier.

4.1 Nature of Security:

- Term Loans from Banks and Non- Banking Financial Company (NBFC) are Secured by a first pari passu charge over Land & Building, Plant & Machinery and other movable fixed assets located at the Company''s Plants at Plot No. A-280-284, Chopanki, SP-919,Bhiwadi and 99/2/7, Madhuban Industrial Estate, Silvassa. Further, they are secured by personal guarantee of Shri Anil Gupta, Chairman-cum-Managing Director of the Company.

4.2 Finance Lease Obligations are secured against leased assets.

5.1 Working Capital facilities from banks are secured by 1st pari-passu charge by way of hypothecation on the entire current assets including raw material, stock in process, finished goods, consumable stores & spares and receivables of the Company, 1st pari-passu charge on present and future fixed assets at SP-920 & SP-922, RIICO Industrial Area, Phase III, Bhiwadi , Distt. Alwar (Rajasthan) and movable fixed assets at D-90, Okhla Industrial Area, Phase I , New Delhi , 2nd pari-passu charge by equitable mortgage of property of the Land and Building at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa (D & N H), Plot No. A 280-284, Chopanki and SP-919, RIICO Industrial Area, Phase III, Bhiwadi, Distt. Alwar (Rajasthan) both present and future. Further, they are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum- Managing Director of the Company.

6.1 Company has formed a Joint Venture under name of Joint Venture of M/s KEI Industries Ltd New Delhi & M/s Brugg Kable AG Switzerland (JV). This JV is a Jointly Controlled Entity within the meaning of Accounting Standard - 27 on "Financial Reporting of Interests in Joint Ventures". The JV is in form of a Association of Persons (AOP) and the Company is having 100% share in Profit / Loss of AOP. Company has not invested any amount as capital in JV.

Revenue from Operations includes in few cases, Excise Duty, VAT & Service Tax, wherever prices, are inclusive of Taxes.

7. Employee Stock Options:

a) During the year, the Company has approved "KEI Employees Stock Option Scheme" (KEI ESOS 2015 or Scheme) for granting Employees Stock Options in the form of Equity Shares to eligible employees and the same was approved by special resolution passed by the members of the Company on September 16, 2015. The plan is administered under the supervision of the Nomination and Remuneration Committee of the Board of Directors of the Company ("Committee") in compliance with the provisions of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 and other applicable provisions for the time being in force. During the year Nomination and Remuneration Committee has granted 2,252,000 Options on September 23, 2015 which will vest over a period of four years from the date of grant in the following manner:

8. In terms of provision of AS –7 on "Construction Contracts" for Lump Sum Turnkey Projects for contract in progress as on 31.03.2016:

i) The aggregate amount of cost incurred and recognized profit up to 31.03.2016 Rs, 9,201.63 millions (Previous year Rs, 4,351.89 millions)

ii) The amount of advances received Rs, 85.57 millions (Previous year Rs, 144.71 millions)

iii) The amount of retention Rs, 781.64 millions (Previous year Rs, 444.58 millions)

iv) Gross amount due to customers Rs, 616.28 millions (Previous year Rs, 145.94 millions)

v) Gross amount due from customers Rs, 276.82 millions (Previous year Rs, 332.20 millions)

9. Related Party Disclosures as required by Accounting Standard (AS-18): a) Name of Related Parties :

i) Subsidiary Company

KEI Cables Australia PTY Limited -- Wholly owned subsidiary ( w.e.f. 14/12/2015)

ii) Jointly controlled entity

Joint Venture of M/s KEI Industries Ltd., New Delhi & Brugg Kabel A.G. Switzerland ( w.e.f 24/06/2014) (Association of Persons)

iii) Associate of The Company

KEI International Limited (up to 20/06/2014)

iv) Other related parties in the group where common control exists:

Anil Gupta (HUF)

Projection Financial & Management Consultants Pvt. Ltd.

Shubh Laxmi Motels & Inns Pvt. Ltd.

Soubhagya Agency Pvt. Ltd.

Dhan Versha Agency Pvt. Ltd.

KEI Cables Pvt. Ltd.

KEI Power Ltd.

v) Key Managerial Personnel:

Shri Anil Gupta, Chairman-cum-Managing Director

Shri Rajeev Gupta, Executive Director Finance

Shri Kishore Kunal, Company Secretary (w.e.f. 01/10/2014)

vi) Relatives of Key Managerial Personnel with whom transaction have taken place:

Shri Sunil Gupta

Smt. Archana Gupta (Director)

Smt. Varsha Gupta

Smt. Sumitra Devi Gupta

Smt. Shashi Gupta

Smt. Vimla Devi

Smt. Veena Agarwal

vii) Enterprises Over which person mentioned in (vi) above are able to exercise significant control and transactions have taken place:

Sunil Gupta (HUF)

Ashwathama Constructions Pvt. Ltd.

c) Non Financial Transactions:

(i) Shri Anil Gupta has given personal guarantee to banks for Company''s borrowings.

(ii) The remuneration does not include Gratuity and Provision for leave encashment under Accounting Standard-15 (Revised), medic aim and personal accident insurance premium, since same is not available for individual employees. (iii) The Company has given Performance Bank Gurantees of Rs, 59.31 millions (previous year Rs, 189.96 millions) on behalf of Joint Venture of M/s KEI Industries Ltd., New Delhi & Brugg Kabel A.G. Switzerland.

10. Operating Leases-Other than non-cancellable:

The Company has entered into lease transactions during the current financial year mainly for leasing of factory/office/residential premises/computers and Company leased accommodations for its employees for periods up to 10 years. Terms of lease include terms of renewal, increase in rents in future periods and terms of cancellation. The Operating lease payments recognized in the Profit & Loss amount to Rs, 40.55 millions (Previous year Rs, 38.05 millions) for the leases which commenced on or after April 1, 2001.

iii) The Segment Revenue in the geographical segments considered for disclosure are as follows:

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

iv) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

11.(c) Notes :

i) The Company is organized into business segments, namely:

– Cables comprising of EHV, HT & LT Power Cables , Control and Instrumentation Cables, Winding Wires & Flexible and House Wires. – Stainless Steel Wire comprising of Stainless Steel Wire. – Turnkey projects etc.

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organization structure, and the internal financial reporting systems.

ii) Segment Revenue in each of the above domestic business segments primarily includes sales, job work income and export incentives in the respective segments.

12. Previous Year''s figures have been regrouped / rearranged wherever necessary.


Mar 31, 2015

1. Rights, preferences and restrictions attached to shares:

Equity Shares: The company has issued one class of equity shares having face value of Rs. 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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 proportion to their shareholding.

2. Written Down Value of Assets whose useful life is already exhausted as on 1st April, 2014, amounting to Rs. 20.27 millions has been recognised in the opening balance of General Reserve.

3. Are amortised over period of foreign curreny monetary item or upto 31st March, 2020, whichever is earlier.

4. Nature of Security:

* Term Loans from Banks and Non- Banking Financial Company (NBFC) are Secured by a first pari passu charge over Land & Building, Plant & Machinery and other movable fixed assets located at the Company's Plants at Plot No. A-280-284, Chopanki, SP-919,Bhiwadi and 99/2/7, Madhuban Industrial Estate, Silvassa. Further, they are secured by personal guarantee of Shri Anil Gupta, Chairman-cum-Managing Director of the Company.

5. Finance Lease Obligations are secured against leased assets.

6. Unsecured Deposits are repayable within 3 years from the date of acceptance.

7. Working Capital facilities from banks are secured by 1st pari-passu charge by way of hypothecation on the entire current assets including raw material, stock in process, finished goods, consumable stores & spares and receivables of the Company, 1st pari-passu charge on present and future fixed assets at SP-920 & SP-922, RIICO Industrial Area Phase III, Bhiwadi, Distt. Alwar (Rajasthan) and movable fixed assets at D-90, Okhla Industrial Area, Phase I , New Delhi, 2nd pari-passu charge by equitable mortgage of property of the Land and Building at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa (D & N H), Plot No. A 280-284, Chopanki and SP-919, RIICO Industrial Area Phase III, Bhiwadi , Distt. Alwar (Rajasthan) both present and future. Further, they are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum-Managing Director of the Company.

8. In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In absence of information about registration of the enterprises under the above Act, the required information could not be furnished.

9. No amount is due for credit to Investor Education and Protection Fund (Fund). Amount remaining due after adjustment of amounts to be claimed from the Company will be transferred on the respective due dates to Fund.

10. Carrying value of Assets acquired under hire purchase as on 31.03.2014 exclude the amount related to hire purchase agreement settled during the current year.

11. During the current year, depreciation has been provided on fixed assets as per the useful life specified in Part C of Schedule II of the Companies Act, 2013 and as per assessment of useful life by the management and independent technical evaluation carried out by external valuer. In case of existing assets, depreciation has been provided based on remaining useful life of the assets. Assets whose useful life is already exhausted as on 1st April, 2014, amounting to Rs. 20.27 millions has been recognised in the opening balance of General Reserve. Had there been no change in useful life of the assets, depreciation expense for the year would have been lower by Rs. 23.34 millions.

12. During the year company has formed a Joint Venture under name of Joint Venture of M/s KEI Industries Ltd New Delhi & M/s Brugg Kabel AG Switzerland (JV). This JV is a Jointly Controlled Entity within the meaning of Accounting Standard - 27 on "Financial Reporting of Interests in Joint Ventures". The JV is in form of a Association of Persons (AOP) and the company is having 100% share in Profit / Loss of AOP. Company has not invested any amount as capital in AOP.

13. Due from Joint Venture of M/s KEI Industries Ltd New Delhi & M/s Brugg Kabel AG Switzerland (JV) as on 31.03.2015 isRs.65.57 millions.

15. Jobs with lump-sum price, where the physical progress of work is less than 25 per cent, the direct costs incurred thereon amounting to Rs. 153.12 millions (Previous Year Rs. 21.87 millions) have been carried forward as Project Work In Progress.

16. Represents excise duty borne by the company and difference between excise duty on opening stock and closing stock of finished goods.

17. Insurance premium of NIL (Previous year Rs. 2.09 millions) on Keyman Insurance Policy has been charged to Profit & Loss Account. Maturity value ofsuch policy has been accounted for on receipt basis during the year as an exceptional item.

18. Gross amount required to be spent on Corporate Social Responsibility by the company during the year Rs. 6.82 millions.

19 In terms ofprovision of AS -7 on "Construction Contracts" for Lump Sum Turnkey Projects for contract in progress as on 31.03.2015

i) The aggregate amount of cost incurred and recognised profit upto 31.03.2015 Rs.4,351.89 millions (Previous year Rs. 2,792.47 millions)

ii) The amount of advances received Rs. 144.71 millions (Previous year Rs. 141.94 millions)

iii) The amount of retention Rs. 444.58 millions (Previous year Rs. 215.00 millions)

iv) Gross amount due to customers Rs. 145.94 millions (Previous year Rs. 24.21 millions)

v) Gross amount due from customers Rs. 332.20 millions (Previous year Rs. 251.78 millions)

20. Related party Disclosures as required by Accounting Standard (AS-18):

a) Name of Related Parties:

i) Jointly controlled entity:

Joint Venture of M/s KEI Industries Ltd., New Delhi & Brugg Kabel A.G. Switzerland ( w.e.f 24/06/2014)

ii) Associate of The company:

KEI International Limited (up to 20/06/2014)

iii) Other related parties in the group where common control exists:

Anil Gupta (HUF)

Projection Financial & Management Consultants Pvt. Ltd.

Shubh Laxmi Motels and Inns Pvt. Ltd.

Soubhagya Agency Pvt. Ltd.

Dhan Versha Agency Pvt. Ltd.

KEI Cables Pvt. Ltd.

KEI Power Ltd.

iv) Key Managerial Personnel:

Shri Anil Gupta, Chairman-cum-Managing Director

Shri Rajeev Gupta, Executive Director Finance

Shri Kishore Kunal, Company Secretary (w.e.f. 01/10/2014)

v) Relatives of Key Managerial Personnel with whom transaction have taken place:

Shri Sunil Gupta

Smt. Archana Gupta (Director)

Smt. Varsha Gupta Smt. Sumitra Devi Gupta Smt. Shashi Gupta Smt. Vimla Devi Smt. Veena Agarwal

vi) Enterprises over which person mentioned in (v) above are able to exercise significant control and transactions have taken place:

Sunil Gupta (HUF)

Ashwathama Constructions Pvt. Ltd.

c) Non Financial Transactions:

(i) Shri Anil Gupta has given personal guarantee to banks for company's borrowings.

(ii) The remuneration does not include Gratuity and Provision for leave encashment under Accounting Standard- 15 (Revised), mediclaim and personal accident insurance premium, since same is not available for individual employees.

(iii) The company has given Bank guarantees of Rs. 189.96 millions on behalf of Joint Venture of M/s KEI Industries Ltd., New Delhi & Brugg Kabel A.G. Switzerland.

21. Operating Leases-Other than non-cancellable:

The Company has entered into lease transactions during the current financial year mainly for leasing of factory/ office/residential premises/Computers and company leased accommodations for its employees for periods up to 10 years. Terms of lease include terms of renewal, increase in rents in future periods and terms of cancellation. The Operating lease payments recognized in the Profit & Loss amount to Rs. 38.05 millions (Previous year Rs. 28.34 millions) for the leases which commenced on or after April 1, 2001.

22. (c) Notes :

(i) The Company is organised into business segments, namely:

* Cables comprising of EHV, HT & LT Power Cables , Control and Instrumentation Cables, Winding Wires & Flexible and House Wires.

* Stainless Steel Wire comprising of Stainless Steel Wires.

* Turnkey projects etc.

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organisation structure, and the internal financial reporting systems.

iii) The Segment Revenue in the geographical segments considered for disclosure are as follows:

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

iv) Segment Revenue , Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

23 Contingent Liabilities & Commitments:

Particulars As at 31st March, 2015 (Rs. in Millions) 24.1 Contingent Liabilities

Claims Against the Company not acknowledged as Debt 0.22

24.2 Guarantees

Financial Bank Guarantees 1,316.34 outstanding

24.3 Other money for which company is contingently liable

a) Unutilised Letter of Credits 149.51

b) Outstanding Bills discounted 1,233.93

c) Prorata share of company in channel finance given by banks to others 349.16 1,732.60

24.4 Duties & Taxes

a) Sales Tax / Entry Tax demands 5.63 under appeal

b) Income tax Matters:

* Demand due to Additions / disallowances during Assessments 9.52

* Appellate decision in favour of company but department has filed appeal against

decision of Appellate Authorities -

c) Excise / Service tax demands under 76.87 appeal

d) Labour Cess Demands under appeal 13.13

e) Custom Duty demand under Appeal 395.72 500.87 (Refer Note 34.5)

Particulars As at 31st March, 2014 (Rs. in Millions) 24.1 Contingent Liabilities

Claims Against the Company not acknowledged as Debt 0.02

24.2 Guarantees

Financial Bank Guarantees 817.31 outstanding

24.3 Other money for which company is contingently liable

a) Unutilised Letter of Credits 174.78

b) Outstanding Bills discounted 375.29

c) Prorata share of company in channel finance given by banks to others 297.74 847.81

24.4 Duties & Taxes

a) Sales Tax / Entry Tax demands 30.68 under appeal

b) Income tax Matters:

* Demand due to Additions / disallowances during Assessments 0.49

* Appellate decision in favour of company but department has filed appeal against

decision of Appellate Authorities 8.65

c) Excise / Service tax demands under 88.51 appeal

d) Labour Cess Demands under appeal 10.43

e) Custom Duty demand under Appeal - 138.76 (Refer Note 34.5)

25. Custom duty demand including penalty for alleged non-fulfillment of export obligations of the company. Company has fulfilled all export obligations and demand has arisen due to non-issuance of Export Obligation Discharge Certificate (EODC) by Directorate General Of foreign Trade (DGFT). Company is following up with DGFT for issuance of EODC and has already obtained EODC for some cases. Company is also contesting demand before appellate authority and is confident that no liability will crystallize in this case.

26. Previous Year's figures have been regrouped / rearranged wherever necessary.


Mar 31, 2014

1.1 Rights, preferences and restrictions attached to shares:

Equity Shares: The company has issued one class of equity shares having par value of Rs. 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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 proportion to their shareholding.

Additions of 35,00,000 (Previous Year 33,00,000) equity shares were issued on preferential basis to following parties as per SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 at a price of? 14 per share (including securities premium of? 12/-).

1.2 During the year the Company has allotted 35,00,000 (thirty five lacs) Share Warrants on preferential basis to Promoter / Promoter Group. The Warrant Holder has option of subscribing one equity share of face value of Rs. 2/- each per Warrant at a price of Rs. 14/- per equity share any time up to 10.01.2015. Amount received from Warrant holders as on March 31, 2014 is Rs. 442.50 lacs

2.1 Proposed dividend includes dividend on equity shares due to conversion of warrants after 31st March, 2014.

2.2 Are amortised over period of foreign curreny monetary item or upto 31st March 2020, whichever is earlier.

3.1 Nature of Security:

— Term Loans from Banks are Secured by a first pari passu charge over Land & Building, Plant & Machinery and other movable fixed assets located at the Company''s Plants at Plot No. A-280-284, Chopanki, SP-919, Bhiwadi and 99/2/7, Madhuban Industrial Estate, Silvassa. Further, they are secured by personal guarantee of Mr. Anil Gupta, Chairman-cum-Managing Director of the Company.

3.2 Finance Lease Obligations are secured against leased assets.

3.3 Maturity Profile and rate of interest of Secured Term Loans are as set out below: (Rs. in lacs)

4.1 Working Capital facilities from banks are secured by 1st pari-passu charge by way of hypothecation on the entire current assets including raw material, stock in process, finished goods, consumable stores & spares and receivables of the Company, 1st pari-passu charge on present and future fixed assets at SP-920 & SP-922, RIICO Industrial Area Phase III, Bhiwadi, Distt. Alwar (Rajasthan) and movable fixed assets at D-90, Okhla Industrial Area, Phase I , New Delhi , 2nd pari-passu charge by equitable mortgage of property of the Land and Building at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa (D & N H), Plot No. A 280-284, Chopanki and SP-919, RIICO Industrial Area Phase III, Bhiwadi, Distt. Alwar (Rajasthan) both present and future. Further, they are secured by personal guarantee of Mr. Anil Gupta, Chairman-cum-Managing Director of the Company.

5.1 In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In absence of information about registration of the enterprises under the above Act, the required information could not be furnished.

6.1 No amount is due for credit to Investor Education and Protection Fund (Fund). Amount remaining due after adjustment of amounts to be claimed from the Company will be transferred on the respective due dates to Fund.

6.2 As per changes made in AS-11 vide Companies(Accounting Standards) Amendment Rules 2009, further amended vide Amendment Rules 2011, during financial year 2008-09 company exercised option of deferring foreign exchange difference arising on long term foreign currency monetary items viz ''FCCBs'', Foreign Currency Term Loan to the Profit and Loss account, in respect of accounting periods commencing on or after 7th December, 2006. As a result, such foreign exchange difference relating to the acquisition of depreciable capital assets have been adjusted with cost of such assets and would be depreciated over the balance life of the assets and in other cases has been accumulated in ''FCMITDA''. Exchange loss (net) NIL (Previous year?77.75 lacs exchange loss) has been adjusted in gross Block of Fixed assets and capital-work-in progress. Exchange difference on External commercial borrowings (ECB''s) raised for repurchasing FCCB''s has been transferred to FCMITDA.

7.1 Jobs with lump-sum price, where the physical progress of work is less than 25 per cent, the direct costs incurred thereon amounting to Rs. 218.71 lacs (Previous Year Rs. 60.91 lacs) have been carried forward as Project Work in Progress.

Defined Benefit Plans

The company is having following Defined Benefit Plans:

- Gratuity (Partly Funded)

- Leave Encashment (Unfunded)

8.1 Represents excise duty borne by the company and difference between excise duty on opening stock and closing stock of finished goods 26.2 Insurance premium of Rs.20.92 lacs (Previous year Rs. 20.88 lacs) on Keyman Insurance Policy has been charged to

Profit & Loss Account. Maturity value of such policy will be accounted for on receipt basis.

The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders. The particulars of dividends declared and paid to non-resident shareholders for the year 2012-13 & 2011-12 are as above.

9 In terms of provision of AS –7 on "Construction Contracts" for Lump Sum Turnkey Projects for contract in progress as on 31.03.2014 i ) The aggregate amount of cost incurred and recognised profit upto 31.03.2014 Rs. 27,924.74 lacs (Previous year Rs. 19,896.46 lacs).

ii) The amount of advances received Rs. 1,419.40 lacs (Previous year NIL)

iii) The amount of retention Rs. 2,149.98 lacs (Previous year Rs. 2,047.84 lacs)

iv) Gross amount due to customers Rs. 242.12 lacs (Previous year Rs. 117.21 lacs)

v) Gross amount due from customers Rs. 2,517.77 lacs (Previous year Rs. 1628.08 lacs)

10 Related party Disclosures as required by Accounting Standard (AS-18): a) Name of Related Parties:

i) Associate of The company:

- KEI International Limited

i i) Other related parties in the group where common control exists:

- Anil Gupta (HUF)

- Projection Financial & Management Consultants Pvt. Ltd.

- Shubh Laxmi Motels & Inns Pvt. Ltd.

- Soubhagya Agency Pvt. Ltd.

- Dhan Versha Agency Pvt. Ltd.

- KEI Cables Pvt. Ltd.

- KEI Power Ltd.

iii) Key Managerial Personnel:

- Mr. Anil Gupta, Chairman-cum-Managing Director

- Mr. Rajeev Gupta, Executive Director (Finance)

iv) Relatives of Key Managerial Personnel with whom transaction have taken place:

Mr. Sunil Gupta - Mrs. Archana Gupta (Director)

Mrs. Varsha Gupta - Mrs. Sumitra Devi Gupta

Mrs. Shashi Gupta - Mr. Shrikrishan Gupta

Mrs. Veena Agarwal

v) Enterprises Over which person mentioned in (iv) above are able to exercise significant control and transactions have taken place:

- Sunil Gupta (HUF) - Ashwathama Constructions Pvt. Ltd.

c) Non Financial Transactions:

(i) Mr. Anil Gupta has given personal guarantee to banks for company''s borrowings.

(ii) The remuneration does not include Gratuity and Provision for leave encashment under Accounting Standard- 15 (Revised), mediclaim and personal accident insurance premium, since same is not available for individual employees.

11.1 Operating Leases-Other than non-cancellable:

The Company has entered into lease transactions during the current financial year mainly for leasing of factory/ office/residential premises/Computers and company leased accommodations for its employees for periods up to 10 years. Terms of lease include terms of renewal, increase in rents in future periods and terms of cancellation. The Operating lease payments recognized in the Profit & Loss amount to Rs. 283.45 lacs (Previous year Rs. 399.61 lacs) for the leases which commenced on or after April 1, 2001.

12. (c) Notes :

( i ) The Company is organised into business segments, namely:

– Cables comprising of EHV, HT & LT Power Cables , Control and Instrumentation Cables, Winding Wires & Flexible and House Wires

– Stainless Steel Wire comprising of Stainless Steel Wire.

– Turnkey projects etc

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organisation structure, and the internal financial reporting systems.

ii) Segment Revenue in each of the above business segments primarily includes sales, job work income and export incentives in the respective segments.

iii) The Segment Revenue in the geographical segments considered for disclosure are as follows:

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

iv) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

13 (i) Derivative contracts entered into by the company and outstanding:

For Hedging Currency and Interest Rate Related Risks:

Nominal amounts of derivative contracts entered into by the Company and outstanding as at 31st March, 2014 amount to Rs. 3,397.94 lacs (Previous Year Rs. 2333.15 lacs). Category wise break up is given below:

(ii) The company has hedged interest rate and currency risk for External Commercial Borrowing (''ECB'') by entering into an interest rate swap and option deal. The interest rate swap and option deal being a derivative transaction, on a going concern basis, is not likely to give rise to any loss necessitating any provision in the books of accounts of the company.

Contingent Liabilities & Commitments (Continue from previous page):

Particulars As at As at 31st March, 2014 31st March, 2013 (Rs,in Lacs) (Rs,in Lacs)

e) Income tax Matters: – Demand Under Appeal 4.95 - – Appellate decision in favour of company but department has filed

against decision of appellate 86.54 86.54 Authorities. f) Excise/Service tax demands 885.08 885.08 Under appeal g) Labour Cess Demands under 104.31 9,865.79 36.68 13743.39 Appeal

Commitments :

Estimated amount of contracts remaining to be executed on Capital Account 91.73 613.60

14. Previous Year''s figures have been regrouped / rearranged wherever necessary. As per our Separate Report of even date attached


Mar 31, 2013

1.1 Rights, preferences and restrictions attached to shares:

Equity Shares: The company has issued one class of equity shares having par value of Rs. 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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 proportion to their shareholding.

2.1 Premium on redemption on FCCBs (net of tax impact) Nil (Previous Year Rs. 3,360.50 lacs) has been set off against Securities Premium Account.

2.2 Are amortised over period of foreign curreny monetary item or upto 31st March 2020, whichever is earlier.

3.1 Nature of Security:

— Term Loans from Banks are Secured by a First pari passu charge over Land & Building, Plant & Machinery and other movable fixed assets located at the Company''s Plants at Plot No. A-280-284 Chopanki, SP- 919,Bhiwadi and 99/2/7 Madhuban Industrial Estate, Silvassa. Further, they are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum-Managing Director of the Company.

— Foreign Currency Loan (Buyer''s Credit) of Rs. Nill lacs (Previous Year Rs.508.77 lacs) are secured by 1st Pari-Passu charge by way of hypothecation on the entire current assets including raw material, stock in process, finished goods, consumable stores & spares and receivables of the Company, 1st pari-passu charge on present and future fixed assets at SP-920 & SP-922, RIICO Industrial Area Phase III, Bhiwadi, Distt. Alwar (Rajasthan) and movable fixed assets at D-90, Okhla Industrial Area, Phase I , New Delhi , 2nd pari-passu charge by equitable mortgage of property of the Land and Building at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa (D & N H), Plot No. A - 280-284, chopanki and SP-919, RIICO Industrial Area Phase III, Bhiwadi, Distt. Alwar (Rajasthan) both present and future. Further, they are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum-Managing Director of the Company.

3.2 Finance Lease Obligations are secured against leased assets.

4.1 Working Capital facilities from banks are secured by 1st Pari-Passu charge by way of hypothecation on the entire current assets including raw material, stock in process, finished goods, consumable stores & spares and receivables of the Company, 1st pari-passu charge on present and future fixed assets at SP-920 & SP-922, RIICO Industrial Area Phase III, Bhiwadi , Distt. Alwar (Rajasthan) and movable fixed assets at D-90, Okhla Industrial Area, Phase I, New Delhi , 2nd pari-passu charge by equitable mortgage of property of the Land and Building at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa (D & N H), Plot No. A 280-284, Chopanki and SP-919, RIICO Industrial Area Phase III, Bhiwadi , Distt. Alwar (Rajasthan) both present and future. Further, they are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum-Managing Director of the Company.

5.1 In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In absence of information about registration of the Enterprises under the above Act, the required information could not be furnished.

6.4 As per changes made in AS-11 vide Companies (Accounting Standards) Amendment Rules 2009, further amended vide Amendment Rules 2011, during financial year 2008-09 company exercised option of deferring foreign exchange difference arising on long term foreign currency monetary items viz ''FCCBs'', Foreign Currency Term Loan to the Profit and Loss account, in respect of accounting periods commencing on or after 7th December, 2006. As a result, such foreign exchange difference relating to the acquisition of depreciable capital assets have been adjusted with cost of such assets and would be depreciated over the balance life of the assets and in other cases has been accumulated in ''FCMITDA''. Exchange loss (net) Rs. 77.75 lacs (Previous year Rs. 1,254.42 lacs exchange loss) has been adjusted in gross Block of Fixed assets and capital-work-in progress. Exchange difference on External commercial borrowings (ECB''s) raised for repurchasing FCCB''s has been transferred to FCMITDA.

7 In terms of provision ofAS - 7 on "Construction Contracts" for Lump-sum Turnkey Projects for contract in progress as on 31.03.2013:

i) The aggregate amount of cost incurred and recognised profit upto 31.03.2013 Rs. 19,896.46 lacs (Previous year Rs. 6,770.08 lacs)

ii) The amount of advances received Rs. 1,272.15 lacs (Previous year Rs. 2,070.76 lacs).

iii) The amount of retention Rs. 2,047.84 lacs (Previous year Rs. 449.44 lacs).

iv) Gross amount due to customers Rs. 117.21 lacs (Previous year Rs. 42.62 lacs).

v) Gross amount due from customers Rs. 1,628.08 lacs (Previous year Rs. 3,714.55 lacs).

8 Related party Disclosures as required by Accounting Standard (AS-18):

a) Name of Related Parties :

i) Associate ofThe company:

- KEI International Limited

ii) Other related parties in the group where common control exists:

- Anil Gupta (HUF)

- Projection Financial & Management Consultants Pvt. Ltd.

- Shubh Laxmi Motels & Inns Pvt. Ltd.

- Soubhagya Agency Pvt. Ltd.

- Dhan Versha Agency Pvt. Ltd.

- KEI Cables Pvt. Ltd.

- KEI Power Ltd.

iii) Key Managerial Personnel:

- Shri Anil Gupta, Chairman-cum-Managing Director

- Shri Rajeev Gupta, Executive Director (Finance)

iv) Relatives of Key Managerial Personnel with whom transaction have taken place:

- Shri Sunil Gupta - Smt. Shashi Gupta

- Smt. Archana Gupta (Director) - Smt. Srikrishan Gupta

- Smt. Varsha Gupta - Smt. Veena Aggarwal

- Smt. Sumitra Devi Gupta

v) Enterprises Over which person mentioned in (iv) above are able to exercise significant control and transactions have taken place:

- Sunil Gupta (HUF) - Ashwathama Constructions Pvt. Ltd.

c) Non Financial Transactions:

(i) Shri Anil Gupta has given personal guarantee to banks for company''s borrowings.

(ii) The remuneration does not include Gratuity and Provision for leave encashment under Accounting Standard-15 (Revised), mediclaim and personal accident insurance premium, since same is not available for individual employees.

9.1 Operating Leases-Other than non-cancellable:

The Company has entered into lease transactions during the current financial year mainly for leasing of factory/ office/residential premises/Computers and company leased accommodations for its employees for periods up to 10 years. Terms of lease include terms of renewal, increase in rents in future periods and terms of cancellation. The Operating lease payments recognized in the Profit & Loss account amount to Rs. 399.61 lacs (Previous year Rs. 398.58 lacs) for the leases which commenced on or after April 1, 2001.

10 (c) Notes :

(i) The Company is organised into business segments, namely:

- Cables comprising of EHV, HT & LT Power Cables , Control and Instrumentation Cables, Winding Wires & Flexible and House Wires

- Stainless Steel Wire comprising of Stainless Steel Wire.

- Turnkey projects etc

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organisation structure, and the internal financial reporting systems.

iii) The Segment Revenue in the geographical segments considered for disclosure are as follows:

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

iv) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

11 Previous Year''s figures have been regrouped / rearranged wherever necessary. As per our Separate report of even date attached


Mar 31, 2012

1.1 Rights, preferences and restrictions attached to shares:

Equity Shares: The company has issued one class of equity shares having par value of Rs. 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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 proportion to their shareholding.

Additions of Nil (Previous Year 30,00,000 equity shares were issued to Shubh Laxmi Motels & Inns Private Limited upon conversion of Share Warrants into Equity Shares as per terms and conditions of issue of Share Warrants).

1.2 Company has KEI Employee Stock Option Scheme 2006 ("KEI ESOS 2006") which was set up so as to offer and grant, for benefit of employees (excluding promoters) of Company, who are eligible under SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, Options of Company, in one or more tranches, and on such terms and conditions as may be fixed or determined by Board / Committee, in accordance with the provisions of law or guidelines issued by relevant authorities in this regard. Remuneration and Compensation Committee of Board has not granted any fresh Options during the year ended 31st March, 2012. Total Options outstanding as on 31st March, 2012 are NIL (Previous Year NIL)

2.1 Nature of Security:

— Term Loans from Banks are Secured by a First pari passu charge over Land & Building, Plant & Machinery and other movable fixed assets located at the Company's Plants at Plot No. A-280-284 Chopanki, SP- 919,Bhiwadi and 99/2/7 Madhuban Industrial Estate, Silvassa. Further, they are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum-Managing Director of the Company.

— Foreign Currency Loan (Buyer's Credit) of Rs. 508.77 lacs (Previous Year Rs.378.61 lacs) are secured by 1st Pari-Passu charge by way of hypothecation on the entire current assets including raw material, stock in process, finished goods, consumable stores & spares and receivables of the Company, 1st pari-passu charge on present and future fixed assets at SP-920 & SP-922, RIICO Industrial Area Phase III, Bhiwadi , Distt. Alwar (Rajasthan) and at D-90, Okhla Industrial Area, Phase I , New Delhi , 2nd pari-passu charge by equitable mortgage of property of the Land and Building at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa (D & N H) and SP-919, RIICO Industrial Area Phase III, Bhiwadi , Distt. Alwar (Rajasthan) both present and future. Further, they are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum-Managing Director of the Company.

2.2 Finance Lease Obligations are secured against leased assets

3.1 Working Capital facilities from banks are secured by 1st Pari-Passu charge by way of hypothecation on the entire current assets including raw material, stock in process, finished goods, consumable stores & spares and receivables of the Company, 1st pari-passu charge on present and future fixed assets at SP-920 & SP-922, RIICO Industrial Area Phase III, Bhiwadi , Distt. Alwar (Rajasthan) and at D-90, Okhla Industrial Area, Phase I , New Delhi , 2nd pari-passu charge by equitable mortgage of property of the Land and Building at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa (D & N H) and SP-919, RIICO Industrial Area Phase III, Bhiwadi , Distt. Alwar (Rajasthan) both present and future. Further, they are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum-Managing Director of the Company.

4.1 In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In absence of information about registration of the Enterprises under the above Act, the required information could not be furnished.

5.1 Company has redeemed 1% Foreign Currency Convertible Bonds ('FCCBs') at 145.54 percent of the principal amount during the year. These FCCBs had an option to convert bonds into Equity Shares at Conversion Price Rs. 71/- per share (adjusted for sub-division of equity shares & subsequent reset of conversion price pursuant to Clause 11 of the Terms & Conditions of Bonds) at a fixed exchange rate (Rs. 44.65=US$1) between 15th December, 2006 and 30th October, 2011.

5.2 No amount is due for credit to Investor Education and Protection Fund (Fund). Amount remaining due after adjustment of amounts to be claimed from the Company will be transferred on the respective due dates to Fund.

6.1 As per changes made in AS-11 vide Companies (Accounting Standards) Amendment Rules 2009, further amended vide Amendment Rules 2011, during financial year 2008-09 company exercised option of deferring foreign exchange difference arising on long term foreign currency monetary items viz 'FCCBs', Foreign Currency Term Loan to the Profit and Loss account, in respect of accounting periods commencing on or after 7th December, 2006. As a result, such foreign exchange difference relating to the acquisition of depreciable capital assets have been adjusted with cost of such assets and would be depreciated over the balance life of the assets and in other cases has been accumulated in 'FCMITDA'. Exchange loss (net) Rs. 1254.42 lacs (Previous year Rs. 77.65 lacs exchange gain) has been adjusted in gross Block of Fixed assets and capital-work-in progress. Exchange difference on External commercial borrowings (ECB's) raised for repurchasing FCCB's has been transferred to FCMITDA.

6.2 Additions are after adjusting exchange loss (net) Rs. 1254.42 lacs (Previous Year exchange gain (net) Rs. 77.65 lacs).

7.1 Jobs with lump-sum price, where the physical progress of work is less than 25 per cent, the direct cost incurred thereon amounting to Rs. 3220.78 lacs (Previous year Rs. 242.06 lacs) have been carried forward as Work in Progress.

7.2 Are amortized over period of foreign currency monetary item or upto 31st March, 2020, whichever is earlier.

8.1 Represents excise duty borne by the company and difference between excise duty on opening stock and closing stock of finished goods

8.2 Insurance premium of Rs. 20.71 lacs (Previous year Rs. 20.61 lacs) on Keyman Insurance Policy has been charged to Profit & Loss Account. Maturity value of such policy will be accounted for on receipt basis.

The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders. The particulars of dividends declared and paid to non-resident shareholders for the year 2010-11 & 2009-10 are as above.

9 In terms of provision of AS -7 on "Construction Contracts" for Lump-sum Turnkey Projects for contract in progress as on 31.03.2012:

i) The aggregate amount of cost incurred and recognized profit up to 31.03.2012 Rs. 6,770.08 lacs (Previous year Rs. 406.61 lacs)

ii) The amount of advances received Rs. 2070.76 lacs (Previous year Rs. 537.93 lacs).

iii) The amount of retention Rs. 449.44 lacs (Previous year Rs. 34.57 lacs).

iv) Gross amount due to customers Rs. 42.62 lacs (Previous year Rs. 287.16 lacs).

v) Gross amount due from customers Rs. 3714.55 lacs (Previous year Rs. 0.60 lacs).

10 Related party Disclosures as required by Accounting Standard (AS-18):

a) Name of Related Parties :

i) Associate of The company KEI International Limited

ii) Other related parties in the group where common control exists:

Anil Gupta (HUF)

Projection Financial & Management Consultants Pvt. Ltd.

Subh Laxmi Motels & Inns Pvt. Ltd.

Soubhagya Agency Pvt. Ltd.

Dhan Versha Agency Pvt. Ltd.

KEI Cables Pvt. Ltd.

KEI Power Ltd.

iii) Functional Directors:

Shri Anil Gupta, Chairman-cum-Managing Director Shri Rajeev Gupta, Executive Director (Finance)

iv) Relatives of Functional Directors:

Shri Sunil Gupta

Smt. Archana Gupta (Director)

Smt. Varsha Gupta Smt. Sumitra Devi Gupta Smt. Shashi Gupta Shri Shri Krishan Gupta Smt. Veena Agarwal

v) Enterprises Over which person mentioned in (iv) above are able to exercise significant control:

Sunil Gupta (HUF)

Ashwathama Constructions Pvt. Ltd.

c) Non Financial Transactions

(i) Shri Anil Gupta has given personal guarantee to banks for company's borrowings.

(ii) The remuneration does not include Gratuity and Provision for leave encashment under Accounting Standard-15 (Revised), medic aim and personal accident insurance premium, since same is not available for individual.

11.1 Operating Leases-Other than non-cancellable:

The Company has entered into lease transactions during the current financial year mainly for leasing of factory/ office/residential premises/Computers and company leased accommodations for its employees for periods up to 10 years. Terms of lease include terms of renewal, increase in rents in future periods and terms of cancellation. The Operating lease payments recognized in the Profit & Loss account amount to Rs. 398.58 lacs (Previous year Rs. 339.95 lacs) for the leases which commenced on or after April 1, 2001.

11.2 i) The Company is organized into business segments, namely:

- Cables comprising of EHV, HT & LT Power Cables , Control and Instrumentation Cables, Winding Wires & Flexible and House Wires

- Stainless Steel Wire comprising of Stainless Steel Wire.

- Turnkey projects

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organization structure, and the internal financial reporting systems.

ii) Segment Revenue in each of the above domestic business segments primarily includes sales, project income, job work income and export incentives in the respective segments.

iii) The Segment Revenue in the geographical segments considered for disclosure are as follows:

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

iv) Segment Revenue , Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

12 (i) Derivative contracts entered into by the company and outstanding:

For Hedging Currency and Interest Rate Related Risks:

13 Previous Year's figures have been regrouped / rearranged wherever necessary.


Mar 31, 2011

1. Contingent Liabilities:

(a) Unutilised letter of credits Rs.323.03 Lacs (Previous Year Rs. 1,255.42 Lacs )

(b) Financial Bank Guarantees outstanding Rs. 6,324.01 Lacs (Previous Year Rs. 2,589.05 Lacs)

(c) Outstanding Bills discounted Rs. 11,933.00 Lacs (Previous year Rs. 5,408.38 Lacs)

(d) Prorata share of Company in 'Channel Finance' given by banks to others Rs. 188.12 Lacs ( Previous Year Rs. Nil)

(e) Sales Tax/Entry Tax demands under appeal Rs. 53.36 Lacs (Previous year Rs. 20.05 Lacs)

(f ) Income tax demands under appeal/rectification arising out of disallowances and non credit of tax deduction at source Rs. 99.06 Lacs (Previous year Rs. Nil )

(g) Excise and Service tax Demands under appeal Rs. 674.53 Lacs (Previous year Rs. 648.35 Lacs)

(h) Claims against the Company not acknowledged as debts Rs. 0.18 Lacs (Previous year Rs. 0.18 Lacs)

(i) Premium on Redemption of 1% Foreign Currency Convertible Bonds (FCCBs) Rs. 2,852.84 Lacs (Previous Year Rs. 2,125.91 Lacs)

2. 1% Foreign Currency Convertible Bonds ('FCCBs') have an option to convert bonds into Equity Shares at Conversion Price Rs. 71/- per share (adjusted for sub-division of equity shares & subsequent reset of conversion price pursuant to Clause 11 of the Terms & Conditions of Bonds) at a fixed exchange rate (Rs. 44.65=US$1) between 15th December, 2006 and 30th October, 2011. Unless previously converted, redeemed or repurchased or cancelled, the Company will redeem these bonds at 145.54 percent of the principal amount on 30th November, 2011. The premium, if paid, would be adjusted against the Securities Premium Account.

3. Estimated amount of contracts remaining to be executed on Capital Account Rs. 410.50 Lacs (Previous Year Rs. 1,320.89 Lacs)

4. (i) Working capital facilities from Banks are secured by 1st pari-passu charge by way of hypothecation on the entire current assets including raw material, stock in process, finished goods, consumable stores & spares and receivables of the Company, 1st pari-passu charge on present and future fixed assets at SP-920 & SP-922, RIICO Industrial Area Phase III, Bhiwadi, Distt. Alwar (Rajasthan) and at D-90, Okhla Industrial Area, Phase I, New Delhi, 2nd pari-passu charge by equitable mortgage of property of the Land and Building at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa (D & N H) and SP-919, RIICO Industrial Area, Phase III, Bhiwadi, Distt. Alwar (Rajasthan) both present and future. Further, they are secured by personal guarantee of Shri. Anil Gupta, Chairman-cum-Managing Director of the Company.

(ii) Term Loans from banks are secured by 1st pari-passu charge on present and future fixed assets of the company at 99/2/7, Madhuban Industrial Area, Village Rakholi, Silvassa (D & N H), SP-919, RIICO Industrial Area, Phase III, Bhiwadi, Distt. Alwar (Rajasthan) and Plot Nos. A-280 to A-284, RIICO Industrial Area, Chopanki, Distt. Alwar (Rajasthan).

(iii) Hire Purchase Finance is secured against assets financed from it.

5. Pursuant to application and payment received for conversion of Warrants into equity shares, 30,00,000 equity shares were allotted on 25th February, 2011. Application money of Rs. 280.00 Lacs received on 40,00,000 Warrants stands forfeited as per the terms and conditions of the issue due to non-exercise of conversion option and has been transferred to Capital Reserve. Funds received have been utilized as per objects of the issue.

6. Fixed Deposits with banks amounting to Rs. 611.95 Lacs (Previous year Rs. 349.20 Lacs ) are under lien/custody with banks/others.

7. Interest on working capital facilities is net of interest income received Rs. 96.29 Lacs (Previous year Rs. 85.69 Lacs)

8. Sales include Export Benefits Rs. 84.80 Lacs (Previous Year Rs. 57.49 Lacs)

9. As per changes made in AS-11 vide Companies(Accounting Standards) Amendment Rules 2009, during financial year 2008-09 company exercised option of deferring foreign exchange difference arising on long term foreign currency monetary items viz 'FCCBs', Foreign Currency Term Loan to the Profit and Loss account, in respect of accounting periods commencing on or after 7th December, 2006. As a result, such foreign exchange difference relating to the acquisition of depreciable capital assets have been adjusted with cost of such assets and would be depreciated over the balance life of the assets and in other cases has been accumulated in 'FCMITDA'. Exchange gain (net) Rs. 77.65 Lacs (Previous year Rs. 1,173.18 Lacs) has been adjusted in gross block of fixed assets and capital work-in progress. Exchange difference on external commercial borrowing (ECBs) raised for repurchasing FCCBs has been transferred to 'FCMITDA'.

10. Amount of Excise Duty deducted from the turnover is relatable to sales made during the year and the amount recognized separately in the statement of Profit & Loss is related to the difference between the closing stock & opening stock.

11. Insurance Premium of Rs. 20.61 Lacs (Previous year Rs. 20.61 Lacs) on Keyman Insurance Policy has been charged to Profit & Loss Account. Maturity value of such policy will be accounted for on receipt basis.

(b) Operating Leases- Other than non-cancellable

The Company has entered into lease transactions during the current financial year mainly for leasing of factory/ office/residential premises and company leased accommodations for its employees for periods up to 10 years. Terms of lease include terms of renewal, increase in rents in future periods and terms of cancellation. The Operating lease payments recognized in the Profit & Loss account amount to Rs. 339.95 Lacs (Previous year Rs. 268.55 Lacs) for the leases, which commenced on or after 1st April, 2001.

(b) Investments by the Loanee in the shares of the Company: Rs. NIL (Previous Year NIL)

12. Related party Disclosures as required by Accounting Standard (AS-18):

(a) Name of Related Parties :

i) Associate of the company:

KEI International Ltd

ii) Other related parties in the Group where common control exists:

Anil Gupta (HUF)

Projection Financial & Management Consultants Pvt. Ltd.

Subh Laxmi Motels & Inns Pvt. Ltd.

Soubhagya Agency Pvt. Ltd.

Dhan Versha Agency Pvt. Ltd.

KEI Cables Pvt. Ltd.

KEI Power Ltd.

iii) Functional Directors:

Shri Anil Gupta, Chairman-cum-Managing Director Shri Rajeev Gupta, Executive Director (Finance)

iv) Relatives of Functional Directors:

Shri Sunil Gupta

Smt. Archana Gupta (Director)

Smt. Varsha Gupta

Smt. Sumitra Devi Gupta

Smt. Shashi Gupta

Shri Shri Krishan Gupta

Smt. Veena Agarwal

v) Enterprises over which person mentioned in (iv) above are able to exercise significant control:

Sunil Gupta (HUF)

Ashwathama Constructions Pvt. Ltd.

(c) Non Financial Transactions:

(i) Shri Anil Gupta has given personal guarantee to banks for company's borrowings.

(ii) The remuneration does not include Gratuity and Provision for leave encashment under Accounting Standard-15 (Revised), mediclaim and personal accident insurance Premium, since same is not available for individual employees.

c) Notes:

i) The Company is organised into business segments, namely:

— Cables comprising of EHV, HT & LT Power Cables, Control and Instrumentation Cables, Winding Wires & Flexible and House Wires

— Stainless Steel Wire comprising of Stainless Steel Wire

— Others (Turnkey projects etc.)

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organisation structure, and the internal financial reporting systems.

iii) The Segment Revenue in the geographical segments considered for disclosure are as follows:

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

iv) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

13. Jobs with lump-sum price, where the physical progress of work is less than 25 per cent, the direct cost incurred thereon amounting to Rs. 242.06 Lacs (Previous year NIL) have been carried forward as Work in Progress.

14. In terms of provision of AS –7 on "Construction Contracts” for Lump-sum Turnkey Projects for contract in progress as on 31.03.2011:

a. The aggregate amount of cost incurred and recognized Profit up to 31.03.2011 Rs. 406.61 Lacs (Previous year Rs. 275.24 Lacs).

b. The amount of advances received Rs. 537.93 Lacs (Previous year Rs. 4.76 Lacs).

c. The amount of retention Rs. 34.57 Lacs (Previous year Rs. 35.43 Lacs)

d. Gross amount due to customers Rs. 287.16 Lacs (Previous year Rs. 144.71Lacs).

e. Gross amount due from customers Rs. 0.60 Lacs (Previous year Rs. 0.48 Lacs)

15. The disclosures required under Accounting Standard 15 "Employee Benefits” are given below: Defined Contribution Plan

16. The Company has KEI Employee Stock Option Scheme 2006 ("KEI ESOS 2006”) which was set up so as to offer and grant, for the benefit of employees (excluding promoters) of the Company, who are eligible under SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, Options of the Company, in one or more tranches, and on such terms and conditions as may be fixed or determined by the Board / Committee, in accordance with the provisions of law or guidelines issued by the relevant authorities in this regard.

The Remuneration and Compensation Committee of the Board has not granted any fresh Options during the year ended 31st March, 2011. Total Options outstanding as on 31st March, 2011 is Nil (Previous Year Nil)

17. In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In absence of information about registration of the Enterprises under the above Act, the required information could not be furnished.

(ii) The company has hedged interest rate and currency risk for External Commercial Borrowing ('ECB') by entering into an interest rate swap and option deal. The interest rate swap and option deal being a derivative transaction, on a going concern basis, is not likely to give rise to any loss necessitating any provision in the books of accounts of the company.

18. Previous Year's figures have been regrouped / rearranged wherever necessary.


Mar 31, 2010

1. Contingent Liabilities:

(a) Unutilised letter of credits Rs. 12,55,42,127/- (Previous Year Rs. 4,89,53,838/- )

(b) Financial Bank Guarantees outstanding Rs. 25,89,04,810/- (Previous Year Rs. 13,91,23,433/-)

(c) Outstanding Bills discounted Rs. 54,08,38,252/- (Previous Year Rs. 25,01,53,307/-)

(d) Sales Tax demands under appeal Rs. 20,04,987/- (Previous Year Rs 18,67,125/-)

(e) Income tax demands under appeal Nil (Previous Year Rs. 4,68,458/-)

(f ) Excise and Service tax Demands under appeal Rs. 6,48,34,699/- (Previous Year Rs 6,01,39,959/-)

(g) Claims against the Company not acknowledged as debts Rs.18,020/- (Previous Year Rs. 59,12,869/-)

2. 1% Foreign Currency Convertible Bonds (‘FCCBs) have an option to convert bonds into Equity Shares at Conversion Price Rs.71/- per share (adjusted for sub-division of equity shares & subsequent reset of conversion price pursuant to Clause 11 of the Terms & Conditions of Bonds) at a fixed exchange rate (Rs.44.65 = US$1) between 15th December,2006 and 30th October, 2011. The conversion price will be subject to certain adjustments as detailed in the offering circular such as bonus issue, right issue, extraordinary dividend etc. Unless previously converted, redeemed or repurchased or cancelled, the Company will redeem these bonds at 145.54 percent of the principal amount on 30th October, 2011. Up to March 31, 2010 out of the total issue, FCCBs aggregating to USD 3.35 Million were converted into equity shares and ‘FCCBs aggregating to USD 16.05 Million have been repurchased at discount. Balance of ‘FCCBs outstanding as on March 31, 2010 have been included and disclosed in the schedule of "Unsecured Loans". In view of these developments the Company expects that no premium would be payable and on that basis the same is not provided for. However, the premium, if paid would be adjusted against the Securities Premium Account. Accordingly premium maximum amount payable being Rs. 34,28,29,674/- (Previous Year Rs. 51,57,97,425/-) would be accounted for and adjusted against Securities Premium Account in the year of such redemption or repurchase or cancellation.

3. During the year the Company has allotted 1,00,00,000 (One Crore) Warrants on Preferential basis. The Warrant holders have option of subscribing one equity shares of face value of Rs.2/- each per Warrant at a price of Rs.28/- per equity share any time up to 25.02.2011.

Further, pursuant to application received for conversion of Warrant into equity shares, 30,00,000 equity shares have been allotted on 30.03.2010. Funds has been utilized as per objects of the issue. As on March 31, 2010 70,00,000 Warrants are pending for conversion into equivalent number of equity shares. 25% of the warrant issue price equivalent to Rs.4,90,00,000 received as application money and balance 75% of issue price equivalent to Rs.14,70,00,000 is pending and is not called up.

4. Estimated amount of contracts remaining to be executed on Capital Account Rs. 13,20,88,680/- (Previous Year Rs. 38,00,000/-).

5. (i) Working capital facilities from Banks are secured by 1st pari-passu charge by way of hypothecation on the entire current assets including raw material, stock in process, finished goods, consumable stores & spares and receivables of the Company, 1st pari-passu charge on present and future fixed assets at SP-920 & SP-922, RIICO Industrial Area Phase III, Bhiwadi , Distt. Alwar (Rajasthan) and at D-90, Okhla Industrial Area, Phase I , New Delhi , 2nd pari-passu charge by equitable mortgage of property of the Land and Building at 99/2/7, Madhuban Industrial Estate, Village Rakholi, Silvassa (D & N H) and SP-919, RIICO Industrial Area Phase III, Bhiwadi , Distt. Alwar (Rajasthan) both present and future . Further , they are secured by personal guarantee of Shri. Anil Gupta, Chairman Cum Managing Director of the Company.

(ii) Term Loans from banks are secured by 1st pari-passu charge on present and future fixed assets of the company at 99/2/7, Madhuban Industrial Area, Village Rakholi, Silvassa (D & N H), SP-919, RIICO Industrial Area, Phase III , Bhiwadi , Distt. Alwar (Rajasthan) and Plot Nos. A-280 to A-284, RIICO Industrial Area, Chopanki , Distt. Alwar (Rajasthan).

(iii) Hire Purchase Finance is secured against assets financed from it.

6. Fixed Deposits with banks amounting to Rs. 3,49,20,347/-(Previous Year Rs. 6,72,91,262/- ) are under lien/custody with banks/others.

7. Interest on working capital facilities is net of interest income received Rs. 85,69,190/- (Previous Year Rs. 2,69,33,897/-).

8. Sales include Export Benefits Rs. 57,49,087/- (Previous Year Rs. 42,89,479/-).

9. During the year 1% Foreign Currency Convertible Bonds (‘FCCBs) of Rs USD 5.50 million have been bought back. This has resulted in profit of Rs 11,11,83,002/- (Previous Year Rs. 26,35,58,122/-) which has been included under ‘Other Income. Prorata exchange difference on these ‘FCCBs transferred to ‘Foreign Currency Monetary Item Translation Difference Account ("FCMITDA") has been written back to Profit & loss account Rs 15,06,442/- (Previous Year Rs. (-)5,77,297/-).

10. As per changes made in AS 11 vide Companies(Accounting Standards) Amendment Rules 2009, during financial year 2008-09 the company exercised option of deferring foreign exchange difference arising on long term foreign currency monetary items viz ‘FCCBs, Foreign Currency Term Loan to the Profit and Loss account, in respect of accounting periods commencing on or after December 7, 2006. As a result, such foreign exchange difference relating to the acquisition of depreciable capital assets have been adjusted with cost of such assets and would be depreciated over the balance life of the assets and in other cases has been accumulated in ‘FCMITDA. Exchange gain (net) Rs. 11,73,17,997/-(Previous Year Exchange Loss(Net) Rs. 26,94,98,917/-) has been adjusted in gross block of fixed assets and capital work-in progress.

11. Exchange difference on external commercial borrowing(ECBs) raised for repurchasing FCCBs has been transferred to ‘FCMITDA.

12. Amount of Excise Duty deducted from the turnover is relatable to sales made during the year and the amount recognized separately in the statement of Profit & Loss is related to the difference between the closing stock & opening stock.

Note:

(i) In view of inadequate profit, minimum remuneration as approved and as per Companies Act, 1956 has been paid/provided. Since, no commission has been paid, computation of net profit u/s 198 of the Companies Act, 1956 has not been done.

(ii) The remuneration does not include Gratuity and Provision for leave encashment under Accounting Standard-15 (Revised), mediclaim and personal accident insurance premium, since same is not available for individual employees.

13. Insurance Premium of Rs. 20,60,550/-(Previous Year Rs. 20,60,550/-) on Keyman Insurance Policy has been charged to Profit & Loss Account. Maturity value of such policy will be accounted for on receipt basis.

(b) Operating Leases- Other than non-cancellable:

The Company has entered into lease transactions during the current financial year mainly for leasing of factory/ office/residential premises and company leased accommodations for its employees for periods up to 10 years. Terms of lease include terms of renewal, increase in rents in future periods and terms of cancellation. The Operating lease payments recognized in the Profit & Loss account amount to Rs 2,65,38,934/- (Previous Year Rs. 2,43,45,472/ -) for the leases, which commenced on or after April 1, 2001.

b) Investments by the Loanee in the shares of the Company: Rs. NIL (Previous Year Rs. NIL)

14. Loans & Advances include Deposit given to Limited Companies Rs 2,27,00,000/-. (Previous Year Rs. 4,97,00,000/-).

24. Related party Disclosures, as required by Accounting Standard (AS-18): (a) Name of Related Parties:

i) Subsidiary of the company:

KEI Power Limited (from 28th April 2008 to 7th Nov, 2008 )

ii) Associate of the company: KEI International Ltd

iii) Other related parties in the Group where common control exists:

Anil Gupta (HUF)

Projection Financial & Management Consultants Pvt.Ltd.

Subh Laxmi Motels & Inns Pvt. Ltd.

Soubhagya Agency Pvt. Ltd.

Dhan Versha Agency Pvt. Ltd.

KEI Cables Pvt. Ltd.

iv) Functional Directors:

Shri Anil Gupta, Chairman-cum-Managing Director

Shri Rajeev Gupta, Executive Director (Finance)

v) Relatives of Functional Directors:

Shri Sunil Gupta

Smt. Archana Gupta (Director)

Smt. Varsha Gupta

Smt. Sumitra Devi Gupta

Smt. Shashi Gupta Shri Shri Krishan Gupta

Smt. Veena Agarwal

vi) Enterprises over which person mentioned in

(v) above are able to exercise significant control:

Sunil Gupta (HUF) Ashwathama Constructions Pvt. Ltd.

c) Notes :

i) The Company is organised into business segments, namely:

— Cables comprising of HT & LT Power Cables, Control and Instrumentation Cables, Winding Wires & Flexible and House Wires

— Stainless Steel Wire comprising of Stainless Steel Wire

— Others (Turnkey projects etc.)

Segments have been identified and reported taking into account, the nature of products and services, the differing risks and returns, the organisation structure, and the internal financial reporting systems.

iii) The Segment Revenue in the geographical segments considered for disclosure are as follows:

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

iv) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

15. Jobs with lump-sum price, where the physical progress of work is less than 25 per cent, the direct cost incurred thereon amounting to NIL (Previous Year Rs. 64,674/-) have been carried forward as Work in Progress.

16. In terms of provision of AS –7 on "Construction Contracts" for Lump-sum Turnkey Projects for contract in progress as on 31.03.2010:

a. The aggregate amount of cost incurred and recognized Profit up to 31.03.2010 Rs. 2,80,25,071/- (Previous Year Rs. 2,79,14,737/-).

b. The amount of advances received Rs. 4,76,250/- (Previous Year Rs. 4,76,250/-).

c. The amount of retention Rs. 35,43,154/-(Previous Year Rs. Nil)

17. The Company has KEI Employee Stock Option Scheme 2006 ("KEI ESOS 2006") which was set up so as to offer and grant, for the benefit of employees (excluding promoters) of the Company, who are eligible under SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, Options of the Company, in one or more tranches, and on such terms and conditions as may be fixed or determined by the Board / Committee, in accordance with the provisions of law or guidelines issued by the relevant authorities in this regard.

The Remuneration and Compensation Committee of the Board has not granted any fresh Options during the year ended March 31, 2010. Total Options outstanding as on March 31, 2010 is Nil (Previous Year Nil).

18. In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, the outstanding to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In absence of information about registration of the Enterprises under the above Act, the required information could not be furnished.

Note: The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividends have bee on behalf of non-resident shareholders. The particulars of dividends declared and paid to non-resident shareholders for the year 2007-08 & 2008-09 are as above.

19. Previous Years figures have been regrouped / rearranged wherever necessary.

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