Notes to Accounts of Marco Cables & Conductors Ltd.

Mar 31, 2025

1.12 Provisions/Contingencies

(a) Provision involving substantial degree of estimation in measurements is recognized when there is a present obligation
as a result of past events and it is probable that there will be an outflow of resources.

(b) Contingent Liabilities are shown by way of notes to the Accounts in respect of obligations where, based on the
evidence available, their existence at the Balance Sheet date is considered not probable.

(c) A Contingent Asset is not recognized in the Accounts.

1.13 Segment Reporting

A. Business Segments:

Based on the guiding principles given in Accounting Standard 17 (AS - 17) on Segment Reporting issued by ICAI, the
Company has only one reportable Business Segment, which ismanufacturing XLPE, PVC & Aerial Bunched Cables.

B. Geographical Segments:

The Company activities / operations are confined to India and as such there is only one geographical segment.
Accordingly, the figures appearing in these financial statements relate to the Company''s single geographical segment.

1.14 Foreign Currency Transactions

Foreign exchange transactions are recorded at the rate prevailing on the date of respective transaction. Monetary assets
and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates
on that date. Non monetary items which are carried in terms of historical cost denominated in a foreign currency are
reported using the exchange rate at the date of transacion. Exchange diffrences arising on foreign exchange transactions
settled during the year and on restatement as at the balance sheet date are recognized in the statement of profit and loss
for the year.

1.15 Balance Confirmations

Balance of Debtors & Creditors & Loans & advances Taken & giving are subject to confirmation and subject to
consequential adjustments, if any. Debtors & creditors balance has been shown separately and the advances received and
paid from/to the parties is shown as advance from customer and advance to suppliers.

1.16 Regrouping

Previous years figures have been regrouped and reclassified wherever necessary to match with current year grouping
and classifiaction. .

1.17 Pandemic (Covid-191 impact

I he World Health Organization announced a global health emergency because of a new strain of coronavirus ("COVID-
19") and classified its outbreak as a pandemic on 11 March 2020. On 24 March 2020, the Indian government announced a
strict 21-day lockdown across the country to contain the spread of the virus. The management has made an assessment of
the impact of COVID-19 on the Company''s operations, financial performance and position for the year ended 31 March
2023 and has concluded that no there is no significant impact which is required to be recognized in the financial
statements. Accordingly, no adjustments are required to be made to the financial statements.

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Mar 31, 2024

a. The Company has subdivided each Equity Share of the nominal value of Rs. 100/- (Rupees One Hundred Only) each, into 10 (Ten) Equity Shares of the Face Value Rs.10/- (Rupees Ten Only) each fully paid-up, vide resolution passed in EGM dated 14th October, 2022, effect of this bonus issue has been considered to calculate EPS.

b. The Authorised Share Capital of the company was increased from 3000000 Equity Shares of Rs.10/- each to 25000000 Equity Shares of Rs. 10/- each vide resolution passed in EGM dated 10th February, 2023.

c. The Company Has Subdivided each Equity Share of the nominal value of Rs.100/- (Rupees One Hundred only) each, into 10 (Ten) Equity Shares of Face Value Rs.10/- (Rupees Ten only) each fully paid up, vide resolution passed in EGM dated 14th October, 2022.

d. The issued 325500 equity shares of Rs.10/- each at premium of Rs. 101/- per share on 21st March, 2023.

e. The company issued 12878400 equity shares of Rs.10/- as bonus shares in the ratio of 4:1 i.e. (4 (four) bonus shares alloted against 1 (one) equity share held) as on 19th April, 2023.

f. The company issued 2601000 equity shares of Rs.10/- each at a premium of Rs. 26/- per share through its Initial Public offer during the F.Y. 2023-24.

NOTE 2B: Term/rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs 10 per share. Holder of each equity share is entitled to one vote. The Company declares and pays dividends in Indian Rupees.

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

1. Current Ratio changed by 25.24% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to increase in Current Assets for the year ended 31.03.2024

2. Debt Equity Ratio changed by 29.11% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to increase in Equity for the year ended 31.03.2024

3. Return on Equity ratio changed by 34.41% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to decrease in Net Profit for the year ended 31.03.2024

4. Trade receivable turnover ratio increased by 28.38% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to increase in Net Sales for the year ended 31.03.2023

5. Trade Payables Turnover ratio decreased by 77.44% for the year ended 31.03.2024 as compared to F.Y. 2022-23 due to increase in Net Purchase and decrease in Trade Payable for the year ended 31.03.2024

NOTE 1.20.

No transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule III:

a) Crypto Currency or Virtual Currency

b) Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder

c) Registration of charges or satisfaction with Registrar of Companies

d) Relating to borrowed funds

i) Wilful defaulter

ii) Utilisation of borrowed funds & share premium

iii) Borrowings obtained on the basis of security of current assets

iv) Discrepancy in utilisation of borrowings

v) Current maturity of long term borrowings

NOTE 1.21. DISCLOSURE OF TRANSACTIONS WITH STRUCK OFF COMPANIES

The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or

I. Defined contribution plans

The Company has classified the various benefits provided to employees as under:

a. Employee State Insurance Fund

b. Employee Provident Fund

II. Defined benefit plans

Gratuity

The Company should provide for 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. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service, subject to a payment ceiling of INR 20,00,000/-. Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation as at balance sheet date:

a. The rate used to discount post-employment benefit obligations is determined by reference to market yields at the end of the reporting period on government bonds.

b. The estimates of future salary increases considered in the actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

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Mar 31, 2023

a. The previous year’s figures have been regrouped, rearranged and reclassified whenever and wherever necessary.

d. As per accounting standard 18, issued by the Institute of Chartered Accountants of India, the disclosure of transection with related parties as defined in accounting standard are given below:

o List of related parties with whom transection have been taken place and relationship

e] Gross Profit:

During the year under audit the Gross Profit ratio reported at 23.79% as compared to last year Gross profit ratio of 19.52%, thereby reported total increase of 22% in Gross Profit.

The reason for the same is reported that prices of main raw material (i.e. Aluminium] fluctuate and come down as compare to last year. The total reduction in cost of goods sold reported to 4-5%.

f] Segment reporting:

The Company has two business segment i.e. CABLES & CONDUCTOR

g] Share capital:

During the year Company has made following changes in share capital:

q Stock split: Face value of share split from Rs.100 to Rs.10 (in the ratio of

1:10)

IQ Authorized Share capital increase by 2,20,00,000 (two crores twenty lakh shares) and now total authorize capital is 2,50,00,000 shares ill) During the year 325500 equity shares of face value Rs.10 issued to key managerial and its relatives at premium of Rs.l01/-per share, iv) Total issued capital stand at 3219600 as on 31/03/2023

h) Provision for contingencies:

i) The Company has sanctioned some non-funds limits against margin money of 10%

ii) The Performance Bank Guarantee has been issued to our Customers against the order executed. No Provision for contingency has been made against such Performance Guarantee issued by the Bank on behalf on behalf of the company, as those are all considered good.

iii) The Management is optimistic about the performance and further based on past performance no such claim has ever raised against such Bank Guarantees by any beneficiary.

AWe I"J; Rights, Preferences & Restrictions attached to shares-Note 1.4: Split of shares:

Vote 1.5: Authorised Capital:

luthorised Capital of Company was increased from 30 00 000 n

,de resolution passed in Extraordinary General Meeting da“dXo2/2»l ° ^“ ²â€™⁵⁰''⁰⁰-^0<>»«*%of Rs. !0 each fote 1.6: Additional Information:

he company issued 12878400 equity shares of R< m u u

qu.ty shares of Rs 10 each as bonus shares i.e. in the ratio of 1:4 on 19/04/2023