Accounting Policies of DCG Cables & Wires Ltd. Company

Mar 31, 2025

1. BASIS OF ACCOUNTING & PREPARATION OF FINACIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with the Indian
Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013 (''Act'') read
with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian
Accounting Standards) Amendment Rules, 2016.

The financial statements have been prepared on the historical cost basis except for certain Financial
Assets/Liabilities (including derivative instruments) which have been measured at fair values.

2. USE OF ESTIMATES

In preparation of the financial statements, the Company is required to make judgements, estimates
and assumptions about the carrying amount of assets and liabilities that are not readily apparent
from other sources. The estimates and the associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and future periods
affected. Significant judgements and estimates about the carrying amount of assets and liabilities
include useful lives of tangible and intangible assets, impairment of tangible assets, intangible assets
including goodwill, investments, employee benefits and other provisions and recoverability of
deferred tax assets.

3. Property, Plant and Equipment and Intangible assets:

Property, Plant and Equipment and Intangible assets are stated at their acquisition cost less
accumulated depreciation and impairment losses. Cost comprises of all costs incurred to bring the
assets to their location and working condition up to the date the assets are put to use where
applicable together with any incidental expenses of acquisition/installation. Cost of acquisition
includes borrowing costs that are directly attributable to the acquisition/construction of qualifying
assets.

4. DEPRECIATION :

Depreciation is been provided based useful life of the assets as prescribed in Schedule-ll to the
Companies Act, 2013. Depreciation on Additions to assets or where any asset has been sold or
discarded, is calculated on a Pro-rata basis from the date of such addition or up to the date of such
sale or discard as the case may.

5. INVESTMENTS:

Investments which are readily realizable and intended to be held for not more than one year from
the date on which such investment are made, are classified as current investments. All other
investments are classified as Long term Investments. Current investments are carried in the financial
statements at cost or fair value whichever is lower. Long-term investments are carried at cost. When
there is a decline other than temporary in their value, the carrying amount is reduced on an
individual investment basis and decline is charged to Profit & Loss A/c. Appropriate adjustment is
made in carrying amount of Investment in case of subsequent raise in carrying value of the
Investment.

6. INVENTORIES :

Finished inventories are valued at the lower of cost and net realizable value while Raw material is
valued at cost on FIFO Basis. Costs of inventories comprise all cost of purchase, cost of conversion
and other cost incurred in bringing the inventories to their present location and condition. Net
realisable value represents the estimated selling price for inventories less all estimated costs of
completion and estimated costs necessary to make the sale.

7. REVENUE RECOGNITION :

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or
collection. Revenue from sale of goods is recognized on delivery of the products, when all significant
contractual obligations have been satisfied, the property in the goods is transferred for price,
significant risk and rewards of ownership are transferred to the customers and no effective
ownership is retained. Sales comprises sale of goods and services, net of trade discounts, goods
return and include exchange differences arising on sales transactions.

8. BORROWING COST:

Borrowing Costs attributable to acquisition and/or construction of qualifying assets as defined in
Accounting Standard (AS) - 16 on "Borrowing Cost" are capitalized as a part of the cost of such assets
up to the date when such assets are ready for its intended use. All other Borrowing Costs are charged
to revenue.

9. SEGEMENT REPORTING:

The company has confirmed that they are operating as a single business of manufacturing of road
construction equipments & engineering activities geographically. As such there are no reportable
segment as per Accounting Standard (AS) - 17 "Segment Reporting".

10. EMPLOYEES BENEFITS:

Employees benefit include short term benefits, provident fund, employee''s state insurance, gratuity
and leave encashment.

Short Term Employees Benefit:

All employees benefits payable wholly within twelve months of the rendering of the service are
classified as short-term employee benefit and they are recognized in the period in which the
employee render the related services.

Defined Contribution Plan:

The Company''s contribution to Provident Fund and Employee''s State insurance Scheme are
considered as defined contribution plan and are charged as an expense based on the amount of
contribution required to be made and when services are rendered by the employees. The Company
does not carry any further obligation, apart from the contributions made on monthly basis.

Defined Benefit Plan:

The Company provides for the gratuity, covering eligible employees in accordance with the payment
of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at
retirement, death, incapacitation or termination of employment, of an amount based on the
respective employee''s salary and the tenure of employment. The Company''s liability is actuarially
determined (using the Projected Unit Credit Method) at the end of the each year.

The Company presents the above liability as current and non-current in the Balance sheet as per
actuarial valuation by independent actuary.

Leave Encashment:

The company has the policy of recognizing the expenses in connection to the same as and when the
same are incurred.

11. FOREIGN CURRENCY TRANSACTIONS :

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of
transaction. Monetary assets and liabilities outstanding at the year-end are translated at the rate of
exchange prevailing at the year-end and the gain or loss, is recognized in the statement of Profit and
Loss.

12. CASH FLOW :

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items
and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from operating, investing and financing
activities of the Company are segregated based on the available information.

13. EVENTS OCCURRING AFTER THE BALANCE SHEET :

Material events occurring after the balance sheet are considered up to the date of approval of the
accounts by the board of directors. There are no substantial events having an impact on the results of
the current year Balance Sheet.

14. TAXATION :

a) Provision for Income Tax is determined in accordance with the provisions of the Income Tax Act,
1961.

b) Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax
assets on timing differences, being the difference between taxable incomes and accounting income
that originate in one period and are capable of reversal in one or more subsequent periods. ,
Deferred tax assets including asset arising from unabsorbed depreciation and losses carried
forward, are not recognised unless there is virtual certainty that sufficient future taxable income
will be available against which such deferred tax can be realized.

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Mar 31, 2024

SIGNIFICANT ACCOUNTING PQI.iriFS L BASIS OF PREPARATION :

The financial statements of the Company have been prepared on accrual basis under die historical cost convention & ongoing concern basis in accordance with Generally Accepted Accounting Principles in India (Indian GAAP^T) to comply with the Accounting Standards spec: tied under Section 133 of the Companies Act. 2013 read with Rule 7 of the Companies (Accounts) Rules. 2014 and the relevant provisions of tile Companies Act. 2013 (^lthe Act ) / the Companies Act, 1956. as applicable.

2. USE OF ESTIMATES

in preparation of the financial statements, the Company is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that arc not readily apparent from other sources. The estimates and the associated assumptions are based on historical experience and other factors that arc considered to be relevant. Actual results may differ from these estimates.

I he estimates and the underlying assumptions arc reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods alfected. Significant judgements and estimates about the carrying amount of assets and liabilities include useful lives of tangible and intangible assets, impairment of tangible assets, intangible assets including goodwill, investments, employee benefits and other provisions and recoverability of deferred tax assets.

Property, Plant and Equipment and Intangible assets?

Property, Plant and Equipment and intangible assets are stated at their acquisition cost Jess accumulated depreciation and impairment losses. Cost comprises of all costs incurred to biing the assets to their location and working condition up to the date the assets are put to use where applicable together with any incidental expenses of acquis it ion/instal la Lion. Cost of acquisition includes borrowing costs that arc directly attributable to the aeq u i si rion/eon st ruction of qualifying assets.

4. DEPRECIATION :

Depredation is been provided based useful life of the assets as prescribed in Schedule-] 1 to the Companies Act. 2013, Depreciation on Additions to assets or where any asset has been soid or discarded, is calculated on a Pro-rata basis from the date of such addition or up to the date of such sale or discard as the ease may.

5. INVESTMENTS:

Investments which are readily realizable and intended to be held for not more than one year from the date on which such investment arc made, are classified as current investments. All other investments are classified as Long term Investments. Current investments are carried in the financial statements at cost or fair value whichever is lower. Long-term investments are carried at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on an individual investment basis and decline is charged to Profit Loss A/c. Appropriate adjustment is made in carry ing amount of Investment in case of subsequent raise in carry''ing value of the Investment.

6. INVENTORIES:

Finished inventories are valued at the lower of cost and net realizable value while Raw^ material is valued at cost on I 110 Basis, Costs of inventories coin prise ail cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and condition.

7. REVENUE RECOGNITION i

Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection. Revenue from sale of goods is recognized on delivery of the products, vvhen all significant contractual obligations have been satisfied, the properly in the goods is transferred tor price, significant risk and rewards of ownership are transferred to the customers and no effective ownership is retained. Sales comprises sale of goods and services, net of trade discounts, goods return and include exchange differences arising on sales transactions.

8. BORROWING COST:

Borrowing Costs attributable to acquisition and/or construction of qualifying assets as defined in Accounting Standard (AS) - 16 on "Borrowing Cost" arc capitalized as a pari of the cost of''such assets up to the date when such assets are ready for its intended use. All other Borrowing Costs arc charged to revenue.

9. SEGEMKNT REPORTING:

The company has confirmed that they are operating as a single business ot manufacturing of road construction equipments & engineering activities geographically. As such there arc no reportable segment as per Accounting Standard (AS) - 17 "Segment Reporting .

IQ EMPLOYEES BENEFITS:

Employees benefit include short term benefits, provident fund, employee’s state insurance, gratuity and leave encashment.

Short Term Employees Benefit:

All employees benefits payable wholly within twelve months ol the rendering ot the service are" classified as short term employee benefit and they are recognized in the period in which the employee render the related sen ices.

Defined Contribution Plan:

The Company’s contribution to Provident Fund and Employee’s Slate Insurance Scheme are considered as defined contribution plan and arc charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees. The Company does not carry any further obligation, apart from the contributions made on monthly basis.

Defined Benefit Plan:

The Companv provides for die gratuity, covering eligible employees in accordance with the payment of Gratuity Act. 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s salary and the tenure ot employment. I he Company’s liability is actuarially determined (using the Projected Unit Credit Method) at the end of the each year.

The Company presents the above liability as current and non-currcnt in the Balance sheet as per actuarial valuation by independent actuary,

l.caveEncaslimcnl:

The company has the policy of recognizing the expenses in connection to the same as and when the same are incurred.

1 1. FOREIGN CURRENCY TRANSACTIONS :

Foreign currency transactions are recorded at the rates of exchange prevailing on the date ol transaction. Monetary assets and liabilities outstanding at the vear-end arc translated at the rate of exchange prevailing at the year-end and the gain or loss, is recognized in the statement of Profit and Loss.

12.CASH FLOW:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of:transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of flic Company arc segregated based on theavailableinformation,

I T EVENTS OCCURRING AFTER THE BALANCE SHEET

Material events occurring after the balance sheet are considered up to the date of approval of the accounts by the board of directors, fhcrc arc no substantial events having an impact on the results of the current year Balance Sheet.

14. TAXATION :

a) Provision for Income Tax is determined in accordance with the provisions of Hie Income Tax Act. 1961.

b) Del erred lax is recognized subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets including asset arising from unabsorbed depreciation and losses carried forward arc not recognised unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax can be realized.

15. PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Contingent Liabilities as defined in Accounting Standard (AS) - 29 "Provisions Contingent Liabilities dealt with as a contingent liability. Provisions involving substantial degree ol estimation in measurement are recognized when there is a present obligation as a result of past evenis and it is probahfe that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements and Contingent Assets⁷'' arc disclosed by way of notes to the accounts.

16. EARNING PER SHARK:

Turnings per share has been arrived by taking imo consideration the profit after tax divided by the weighted average number of shares for the relevant financial year. The same is arrived as per Accounting Standard 20 to determine the comparison of performance among different enterprises for the same period and among different period for same enterprises.