Accounting Policies of Polycab India Ltd. Company

Mar 31, 2025

2. Summary of material accounting
policy information

A) Basis of preparation

i Statement of Compliance:

The Company prepares its Standalone Financial
Statements to comply with the Indian Accounting
Standards (“Ind AS”) specified under section 133 of the
Companies Act, 2013 read with Companies (Indian
Accounting Standards) Rules, 2015, as amended from
time to time and the presentation requirements of
Division II of Schedule III of Companies Act, 2013 (Ind
AS compliant Schedule III). These Standalone financial
statements includes Balance Sheet as at 31 March
2025, the Statement of Profit and Loss including Other
Comprehensive Income, Statement of Cash flows and
Statement of changes in equity for the year ended 31
March 2025, and a summary of material accounting
policy information and other explanatory information
(together hereinafter referred to as “Financial
Statements”).

ii Basis of Measurement:

The financial statements for the year ended 31
March 2025 have been prepared on an accrual
basis and a historical cost convention, except for
the following financial assets and liabilities which
have been measured at fair value at the end of each
reporting period:

(a) Certain financial assets and liabilities (including
derivative instruments) (Refer note 39 for
accounting policy regarding financial instruments)

(b) Net defined benefit plan where plan assets
are measured at fair value (Refer note 30 for
accounting policy)

(c) Share-based payments at fair value as on the
grant date of options given to employees (Refer
note 30 for accounting policy)

In addition, the carrying values of recognised assets
and liabilities designated as hedged items in fair value
hedges that would otherwise be carried at amortised
cost are adjusted to record changes in the fair values
attributable to the risks that are being hedged in
effective hedge relationships.

Historical cost is generally based on the fair value of
the consideration given in exchange for goods and
services. Fair value is the price that would be received
from sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the
measurement date.

Accounting policies and methods of computation
followed in the financial statements are same as
compared with the annual financial statements for
the year ended 31 March 2024, except for adoption of
new standard or any pronouncements effective from 1
April 2024.

The Company has prepared the financial statements
on the basis that it will continue to operate as a
going concern.

iii Classification of Current / Non-Current Assets
and Liabilities:

The Company presents assets and liabilities in
the Balance sheet based on current / non-current

classification. It has been classified as current or non¬
current as per the Company''s normal operating cycle,
as per para 66 and 69 of Ind AS 1 and other criteria as
set out in the Division II of Schedule III to the Companies
Act, 2013.

“Operating Cycle:

The Company determines the operating cycle based on
the nature of its contracts. For contracts where revenue
is recognized over time and the duration extends
beyond 12 months, the related trade receivables and
contract assets are classified as non-current, consistent
with the expected realization period. Although these
assets are expected to be realized beyond 12 months,
they are not discounted, as the impact of the time
value of money is considered immaterial to the financial
statements. Deferred tax assets and liabilities are
classified as non-current assets and liabilities.

iv Functional and Presentation Currency:

These financial statements are presented in Indian
Rupees (H) which is the functional currency of the
Company. All amounts disclosed in the financial
statements which also include the accompanying notes
have been rounded off to the nearest million up to two
decimal places, as per the requirement of Schedule III
to the Companies Act 2013, unless otherwise stated.
Transactions and balances with values below the
rounding off norm adopted by the Company have
been reflected as “0” in the relevant notes to these
financial statements.

B) Use of estimates and judgements

In the course of applying the policies outlined in all
notes, 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 associated
assumptions are based on historical experience and
other factors that are considered to be relevant. Actual
results may differ from these estimates. Estimates
and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are
recognised prospectively.

Estimates and assumptions

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Company based its assumptions and
estimates on parameters available when the financial
statements were prepared. Existing circumstances and
assumptions about future developments, however,
may change due to market changes or circumstances
arising that are beyond the control of the Company.
Such changes are reflected in the assumptions
when they occur. The Company uses the following
critical accounting estimates in preparation of its
financial statements:

i Revenue Recognition

The Company applied judgements that
significantly affect the determination of the
amount and timing of revenue from contracts at
a point in time with customers, such as identifying
performance obligations in a sales transactions.

In certain non-standard contracts, where the
Company provides extended warranties in respect
of sale of consumer durable goods, the Company
allocated the portion of the transaction price to
goods based on its relative standalone prices. Also,

certain contracts of sale includes volume rebates
that give rise to variable consideration. In respect
of long term contracts significant judgments are
used in:

(a) Determining the revenue to be recognised in
case of performance obligation satisfied over
a period of time; revenue recognition is done
by measuring the progress towards complete
satisfaction of performance obligation.

The progress is measured in terms of a
proportion of actual cost incurred to-date, to
the total estimated cost attributable to the
performance obligation.

(b) Determining the expected losses, which are
recognised in the period in which such losses
become probable based on the expected
total contract cost as at the reporting date.

ii Cost to complete for long term contracts

The Company''s management estimate the cost
to complete for each project for the purpose of
revenue recognition and recognition of anticipated
losses of the projects, if any. In the process of
calculating the cost to complete, Management
conducts regular and systematic reviews of actual
results and future projections with comparison
against budget. The process requires monitoring
controls including financial and operational
controls and identifying major risks faced by the
Company and developing and implementing
initiative to manage those risks. The Company''s
management is confident that the costs to
complete the project are fairly estimated.

iii Useful lives of property, plant and equipment

The Company reviews the useful life of property,
plant and equipment at the end of each reporting
period. This reassessment may result in change in
depreciation expense in current and future periods.

iv Impairment of investments in subsidiaries and
joint-ventures

Determining whether the investments in
subsidiaries and joint ventures are impaired
requires an estimate in the value in use of
investments. The Company reviews its carrying
value of investments carried at cost (net of
impairment, if any) annually, or more frequently
when there is indication for impairment. If the
recoverable amount is less than its carrying
amount, the impairment loss is accounted for in
the statement of profit and loss. In considering
the value in use, the Board of Directors have
anticipated the future market conditions and
other parameters that affect the operations of
these entities.

v Provisions

The Company estimates the provisions that have
present obligations as a result of past events and
it is probable that outflow of resources will be
required to settle the obligations. These provisions
are reviewed at the end of each reporting period
and are adjusted to reflect the current best
estimates. The timing of recognition requires
application of judgement to existing facts and
circumstances which may be subject to change.

vi Fair value measurement of financial instruments

When the fair value of financial assets and
financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in

active markets, their fair value is measured using
valuation techniques including the Discounted
Cash Flow model. The inputs to these models
are taken from observable markets where
possible, but where this is not feasible, a degree of
judgement is required in establishing fair values.
Judgements include considerations of inputs such
as liquidity risk, credit risk and volatility. Changes
in assumptions about these factors could affect
the reported fair value of financial instruments
(Refer note 39 for accounting policy on Fair value
measurement of financial instruments).

vii Foreign Currency Transactions / Translations

Transactions in currencies other than Company''s
functional currency (foreign currencies) are
recorded at the rates of exchange prevailing on the
date of transaction. At the end of the reporting
period, monetary items denominated in foreign
currencies are reported using the exchange rate
prevailing as at reporting date. Non-monetary
items denominated in foreign currencies which are
carried in terms of historical cost are reported using
the exchange rate at the date of the transaction.
Exchange differences arising on the settlement of
monetary items or on translating monetary items
at the exchange rates different from those at
which they were initially recorded during the year,
or reported in previous financial statements, are
recognised as income or expenses in the year in
which they arise.

viii Impairment of non-financial assets

The Company assesses at each reporting date
whether there is an indication that an asset may
be impaired. If an indication exists, or when the
annual impairment testing of the asset is required,
the Company estimates the asset''s recoverable
amount. An asset''s recoverable amount is the
higher of an asset''s or Cash-generating-unit''s
(CGU''s) fair value less costs of disposal and its
value in use. It is determined for an individual asset,
unless the asset does not generate cash inflows
that are largely independent of those from the
other assets or group of assets. When the carrying
amount of an asset or CGU exceeds it recoverable
amount, the asset is considered as impaired and
it''s written down to its recoverable amount.

The Company estimates the value-in-use of the
Cash generating unit (CGU) based on the future
cash flows after considering current economic
conditions and trends, estimated future operating
results and growth rate and anticipated future
economic and regulatory conditions. The
estimated cash flows are developed using internal
forecasts. The estimated future cash flows are
discounted to their present value using a pre-tax
discount rate that reflects the current market
assessments of the time value of money and the
risks specific to the asset/ CGU.

ix Employee benefits

The accounting of employee benefit plans in the
nature of defined benefit requires the Company to
use assumptions. These assumptions have been
explained under employee benefits note.

Judgements

In the process of applying the Company''s accounting
policies, management has made the following
judgements, which have the most significant effect on
the amounts recognised in the financial statements:

i Assessment of Lease term

The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116. Identification of a lease requires
significant judgment. The Company uses
significant judgement in assessing the lease term
(including anticipated renewals) and the applicable
discount rate. The Company determines the lease
term as the non-cancellable period of a lease,
together with both periods covered by an option
to extend the lease if the Company is reasonably
certain to exercise that option; and periods coverec
by an option to terminate the lease if the Company
is reasonably certain not to exercise that option.

In assessing whether the Company is reasonably
certain to exercise an option to extend a lease, or
not to exercise an option to terminate a lease, it
considers all relevant facts and circumstances that
create an economic incentive for the Company
to exercise the option to extend the lease, or not
to exercise the option to terminate the lease.

The Company revises the lease term if there is a
change in the non-cancellable period of a lease.

The discount rate is generally based on the
incremental borrowing rate specific to the lease
being evaluated or for a portfolio of leases with
similar characteristics.

ii Provision for income tax and deferred tax assets

The Company uses estimates and judgements
based on the relevant rulings in the areas of
allocation of revenue, costs, allowances and

disallowances which is exercised while determining
the provision for income tax. A deferred tax asset
is recognised to the extent that it is probable that
future taxable profit will be available against
which the deductible temporary differences and
tax losses can be utilised. Deferred tax assets are
recognised for unused tax losses to the extent that
it is probable that taxable profit will be available
against which the losses can be utilised. Significant
management judgement is required to determine
the amount of deferred tax assets that can be
recognised, based upon the likely timing and the
level of future taxable profits together with future
tax planning strategies. Accordingly, the Company
exercises its judgement to reassess the carrying
amount of deferred tax assets at the end of each
reporting period.

iii Contingencies

In the normal course of business, contingent
liabilities may arise from litigation and other claims
against the Company. Potential liabilities that are
possible but not probable of crystallising or are
very difficult to quantify reliably are treated as
contingent liabilities. Such liabilities are disclosed
in the notes but are not recognised. Contingent
assets are neither recognised nor disclosed in the
financial statements.

C) Changes in material accounting
policy information

The Company has applied new standards,
interpretations and amendments issued and effective

for annual periods beginning on or after 01 April
2024. This did not have any material changes in the
Company''s standalone accounting policies.

D) Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended March
31, 2025, MCA has notified Ind AS - 117 Insurance
Contracts and amendments to Ind AS 116 - Leases,
relating to sale and leaseback transactions, applicable
to the Company w.e.f. April 1, 2024. The Company has
reviewed the new pronouncements and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.

E) The material accounting policy information used in
preparation of the standalone financial statements
have been discussed in the respective notes.

3. Property, plant and equipments

Accounting policy

Property, plant and equipment are stated at cost, net of accumulated depreciation (other
than freehold land) and impairment losses, if any. The cost comprises purchase price,
borrowing costs if capitalisation criteria are met and directly attributable cost of bringing
the asset to its working condition for the intended use. Capitalisation of costs in the
carrying amount of property, plant and equipment ceases when the item is in the location
and condition necessary for it to be capable of operating in the manner intended by the
Company. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of property, plant and equipment is added
to its book value only if it increases the future benefits from the existing asset beyond
its previously assessed standard of performance. Incomes and expenses related to the
incidental operations not necessary to bring the item to the location and the condition
necessary for it to be capable of operating in the manner intended by the Company are
recognized in the Statement of profit and loss. All other expenses on existing property,
plant and equipment, including day-to-day repair and maintenance expenditure and cost
of replacing parts, are charged to the Statement of Profit & Loss for the year in which
such expenses are incurred.

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
comprising direct costs, related incidental expenses, other directly attributable costs and
borrowing costs.

An item of property, plant and equipment and any significant part initially recognised
is derecognised upon disposal or when no future economic benefits are expected from
its use or disposal. Gains or losses arising from derecognition of property, plant and
equipments are measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the Statement of Profit & Loss under
‘Other expenses'' or ‘Other income'' when the asset is derecognized.

Depreciation on Property, plant and equipment''s is calculated on pro rata basis on
straight-line method using the management assessed useful lives of the assets which is in
line with the manner prescribed in Schedule II of the Companies Act, 2013. The useful life
is as follows:

The useful lives of all the assets except moulds and dies, have been determined as those
specified by part ‘C'' of Schedule II to the Companies Act, 2013. In respect of moulds and
dies, useful lives are lower than those specified by schedule II to the Companies Act 2013
and are depreciated over the estimated useful lives of 3-7.5 years, in order to reflect the
actual usage of assets.

The residual values are not more than 5% of the original cost of the assets. The asset''s
residual values and useful lives are reviewed, and adjusted if appropriate. Depreciation is
not recorded on capital work-in-progress until construction and installation is complete
and the asset is ready for its intended use.

Advances paid towards the acquisition of property, plant and equipment outstanding at
each Balance Sheet date is classified as capital advances under other non-current assets.

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

4. Investment Property Under Construction

Accounting policy

Properties that are not intended to be occupied substantially for use by, or in the
operations of the Company have been considered as investment property. Investment
properties are measured initially at cost, including transaction costs. Subsequent to initial
recognition, investment properties are stated at cost less accumulated depreciation
and accumulated impairment loss, if any. The Company does not charge depreciation
on land, classified as investment property held for future undetermined use. Though the
Company measures investment property using cost-based measurement, the fair value
of investment property is disclosed in the notes. Fair values are determined based on an
annual evaluation performed by an accredited external independent valuer applying a
valuation model. Investment properties are transferred to property, plant, and equipment
when there is a change in use, evidenced by commencement of owner-occupation or
development for owner-occupation. Subsequent expenditure is capitalised only if it is
probable that the future economic benefits associated with the expenditure will flow to
the Company and the cost of the item can be measured reliably.

Investment properties are derecognised either when they have been disposed of or when
they are permanently withdrawn from use and no future economic benefit is expected
from their disposal. The difference between the net disposal proceeds and the carrying
amount of the asset is recognised in profit or loss in the period of derecognition. In
determining the amount of consideration from the derecognition of investment property,
the Company considers the effects of variable consideration, existence of a significant
financing component, non-cash consideration, and consideration payable to the buyer (if
any).

Transfers are made to (or from) investment property only when there is a change in use.

If owner-occupied property becomes an investment property, the Company accounts for
such property in accordance with the policy stated under property, plant and equipment
up to the date of change in use.

The Company depreciates its investment properties over the useful life which is similar to
that of property, plant and equipment.

The Company''s investment properties consist of vacant land in Mumbai. Management
determined that the investment properties consist of single class based on the nature,
characteristics and risks of the property.

On 31 March 2024, the Company transferred H 762.98 million from property, plant and
equipment (Refer note 3) based on the intention of the management, to investment
property under construction, since the property is held for a currently undetermined
future use.

The Company has no restrictions on the realisability of its investment properties and no
contractual obligations to purchase, construct or develop investment properties or for
repairs, maintenance and enhancements. Fair value hierarchy disclosures for investment
properties are in Note 39B.

In accordance with Ind AS 113, the fair value of investment property is determined by the
Company at H 847.00 million following the risk-adjusted discounted cash flow method
and based on Level 3 inputs from an independent accredited valuation expert, as defined
under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017, with relevant
valuation experience for similar properties. The fair valuation is mainly based on location
and locality, current real estate prices in the active market for similar properties. The

main inputs used are area, location, demand, weighted-average cost of capital and trend
of real estate market at the location. As at 31 March 2025, the fair value of the land is
based on valuations performed by Bharat Shah & Associates, an accredited independent
registered valuer.

5. Right of use assets

Accounting policy

i. The Company as a lessee

The Company''s lease asset classes primarily consist of leases for land and buildings.
The Company assesses whether a contract contains a lease, at inception of
a contract. A contract is, or contains, a lease if the contract conveys the right
to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of
an identified asset, the Company assesses whether: (i) the contract involves the use
of an identified asset (ii) the Company has substantially all of the economic benefits
from use of the asset through the period of the lease and (iii) the Company has the
right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-
use asset (“ROU”) and a corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of twelve months or less (short¬
term leases), variable lease and leases with low value assets. For these short-term,
variable lease and low value leases, the Company recognizes the lease payments as
an operating expense on a straight-line basis over the term of the lease.

The estimated useful life of the right-of-use assets are determined on the same
basis as those of property, plant and equipment.

Certain lease arrangements include the options to extend or terminate the lease
before the end of the lease term. ROU assets and lease liabilities includes these
options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial
amount of the lease liability adjusted for any lease payments made at or prior to
the commencement date of the lease plus any initial direct costs less any lease

incentives. They are subsequently measured at cost less accumulated depreciation
and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight¬
line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at amortized cost at the present value of the
future lease payments. The lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable, using the incremental borrowing
rates in the country of domicile of these leases. Lease liabilities are remeasured
with a corresponding adjustment to the related right of use asset if the Company
changes its assessment if whether it will exercise an extension or a termination
option. In addition, the carrying amount of lease liabilities is remeasured if there is
a modification, a change in the lease term, a change in the lease payments (e.g.,
changes to future payments resulting from a change in an index or rate used to
determine such lease payments) or a change in the assessment of an option to
purchase the underlying asset.

Lease liability and ROU assets have been separately presented in the Balance Sheet
and lease payments have been classified as financing cash flows. The Company has
used a single discount rate to a portfolio of leases with similar characteristics.

ii. The Company as a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease.
For operating leases, rental income is recognized on a straight line basis over the
term of the relevant lease.

iii. Finance lease

The Company has entered into land lease arrangement at various locations. Terms
of such lease ranges from 15-90 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.

iv. Others

The following is the summary of practical expedients elected on initial application:

(a) Applied a single discount rate to a portfolio of leases of similar assets in similar
economic environment with a similar end date.

(b) Applied the exemption not to recognize right-of-use assets and liabilities for
short term leases, variable lease and leases of low value assets.

(c) Excluded the initial direct costs from the measurement of the right-of-use
asset at the date of initial application.

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

ii. Intellectual Property

Brands/trademarks acquired separately are measured on initial recognition at the
fair value of consideration paid. Following initial recognition, brands/trademarks are
carried at cost less any accumulated amortisation and impairment losses, if any. The
useful lives of brands/trademarks are assessed to be either finite or indefinite. The
assessment includes whether the brand/trademark name will continue to trade and
the expected lifetime of the brand/trademark. Amortisation is charged on assets
with finite lives on a straight-line basis over a period appropriate to the asset''s
useful life.

The Company owns 620 number as on 31 March 2025 (282 number as on 31 March
2024) registered trademarks pertaining to Brand, Sub-brands and Designs in India
and international. The Company has also entered into royalty agreements with few
companies for use of Polycab brand on specific products and charges fees for the
same. These intellectual property and royalty income are solely owned and earned
by the company and is not shared with any stakeholder. Intellectual Property has
not been capitalised in the books as it does not meet the recognition criteria in Ind
AS 38.

iii. Research and development expenditure

Expenditure on research and development activities is recognized in the Statement
of Profit and Loss as incurred. Development expenditure is capitalized as part of
cost of the resulting other intangible asset only if the expenditure can be measured
reliably, the product or process is technically and commercially feasible, future
economic benefits are probable, and the Company intends to and has sufficient
resources to complete development and to use or sell the asset. Otherwise, it
is recognized in Statement of profit or loss as incurred. Subsequent to initial
recognition, the asset is measured at cost less accumulated amortisation and any
accumulated impairment losses, if any. During the year, the Company has incurred
Capital R&D expenditure amounting to H 108.99 million (31 March 2024
H 27.83 million) which have been included in property, plant and equipment. Further,
Revenue R&D expenditure incurred amounting to H 312.28 million (31 March 2024
H 232.45 million) which have been charged to the respective revenue accounts.

iv. De-recognition of other intangible assets

Other intangible asset is derecognised on disposal or when no future economic
benefits are expected from use. Gains or losses arising from derecognition of an
intangible asset is calculated as the difference between the net disposal proceeds
and the carrying amount of the asset. Such gains or losses is recognised in the
statement of profit and loss under ‘Other expenses'' or ‘Other income''.

v. Goodwill

Goodwill is measured at cost less any accumulated impairment losses. Goodwill
acquired in a business combination is, from the acquisition date, allocated to cash¬
generating units that are expected to benefit from the combination.

A cash generating unit to which goodwill has been allocated is tested for
impairment annually, or more frequently when there is an indication that the unit
may be impaired. If the recoverable amount of the cash generating unit is less than
its carrying amount, the impairment loss is allocated first to reduce the carrying
amount of any goodwill allocated to the unit and then to the other assets of the unit
pro-rata based on the carrying amount of each asset in the unit. Any impairment
loss for goodwill is recognised in profit or loss. An impairment loss recognised for
goodwill is not reversed in subsequent periods.

7. Investment

Accounting policy

i. Investment in subsidiaries and joint ventures

The Company considers an investee company as a subsidiary company when it
controls the investee company. Control is achieved when the Company is exposed,
or has rights, to variable returns from its involvement with the investee and has the
ability to affect those returns through its power over the investee. Specifically, the
Company controls an investee if, and only if, the Company has:

» Power over the investee (i.e., existing rights that give it the current ability to
direct the relevant activities of the investee)

» Exposure, or rights, to variable returns from its involvement with the investee
» The ability to use its power over the investee to affect its returns
» A joint venture is a type of joint arrangement whereby the parties that have joint
control of the arrangement have rights to the net assets of the joint venture.
Joint control is the contractually agreed sharing of control of an arrangement,
which exists only when decisions about the relevant activities require unanimous
consent of the parties sharing control.

The considerations made in determining whether joint control exists are similar to
those necessary to determine control over the subsidiaries.

Investments in subsidiaries and joint ventures are carried at cost less accumulated
impairment losses, if any. Where an indication of impairment exists, the carrying
amount of the investment is assessed. 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 recognised in 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 under ‘Other Income'' or ‘Other Expenses''.

8. Trade receivables

Trade receivables are amounts due from customers for goods sold or services performed
in the ordinary course of business and reflect the Company''s unconditional right to
consideration. Trade receivables are recognised initially at the transaction price as they dc
not contain significant financing components. The Company holds the trade receivables
with the objective of collecting the contractual cash flows and therefore measures them
subsequently at amortised cost using the effective interest method, less loss allowance.

For trade receivables and contract assets, the Company applies the simplified approach
required by Ind AS 109, which requires expected lifetime losses to be recognised from
initial recognition of the receivables.

13. Income taxes

Accounting policy

Income tax expenses comprise current tax and deferred tax and includes any adjustments
related to past periods in current and / or deferred tax adjustments that may become
necessary due to certain developments or reviews during the relevant period. Current tax
is measured at the amount expected to be paid to the tax authorities in accordance with
the Income-tax Act, 1961. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.

Income tax received / receivable pertains to prior period recognised when it is probable
that refund acknowledged by the Income-tax department will arise. Company
periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretation and establishes provisions
where appropriate.

Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and considers
whether it is probable that a taxation authority will accept an uncertain tax treatment.
The Company shall reflect the effect of uncertainty for each uncertain tax treatment by
using either most likely method or expected value method, depending on which method
predicts better resolution of the treatment.

Deferred tax liabilities are recognised for all taxable temporary differences. Deferred
tax assets are recognised for deductible temporary differences only to the extent that
it is probable that sufficient future taxable income will be available against which such
deferred tax assets can be realised.

The carrying amount of deferred tax assets are reviewed at each reporting date. The
Company writes-down the carrying amount of deferred tax asset to the extent that it is
no longer reasonably certain, as the case may be, that sufficient future taxable income
will be available against which deferred tax asset can be realized. Any such write-down is
reversed to the extent that it becomes reasonably certain or virtually certain, as the case
may be, that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset when there is a legally
enforceable right to set off assets against liabilities representing current tax and where
the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by
the same governing taxation laws.

The tax jurisdiction of the Company is India. The Company''s tax return for past years
are generally subject to examination by the tax authorities. The Company has made
provisions for taxes basis its best judgement, considering past resolutions to disputed
matters by adjudicating authorities, prior year assessments and advice from external
experts, if required. The Company believes that its accruals for tax liabilities are adequate
for all open tax years based on its assessment of many factors, including interpretations
of tax laws and prior experience.

The Company offsets current tax assets and current tax liabilities if, and only if, the
Company has a legally enforceable right to set off the recognised amounts; and intends
either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
The Company applies the same policy on deferred tax assets and liabilities.

15. Inventories

Accounting policy

Raw materials, stock in trade, work in progress, finished goods, packing materials, project
material for long term contracts, scrap materials and stores and spares are valued at
lower of cost or net realizable value (“”NRV””) after providing for obsolescence and other
losses, where considered necessary on an item-by-item basis. 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 and spares is determined on
a First In-First Out (FIFO) basis and includes all applicable costs, including inward
freight, incurred in bringing goods to their present location and condition.

Cost of work-in-progress and finished goods includes direct materials as aforesaid,
direct labour cost and a proportion of manufacturing overheads based on total
manufacturing overheads to raw materials consumed.

Cost of stock-in-trade includes cost of purchase and includes all applicable costs,
including inward freight, incurred in bringing the inventories at their location and
condition. Cost is determined on a weighted average basis.

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

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

Copper and aluminium is purchased on provisional price with option to fix the
purchase price based on current or future pricing model based on LME. Such feature
is kept to hedge against exposure in the value of inventory of copper and aluminium
due to volatility in copper and aluminium prices. Since, the value of the copper and
aluminium changes with response to change in commodity pricing index, embedded
derivatives (ED) is identified and separated from the host contract. The ED so
separated, is treated like commodity derivative and qualifies for hedge accounting.
These derivatives are put into a Fair Value hedge relationship with respect to
unpriced inventory. The Company designates only the spot-to-spot movement
of the copper and aluminium inventory as the hedged risk. The carrying value of
inventory is accordingly adjusted for the effective portion of change in fair value of
hedging instrument.

Alternatively, once the purchases are concluded and its final price is determined, the
Company starts getting exposed to price risk of these inventory till the time it is not
been sold. The Company''s policy is to use the sell future contracts linked with LME
to hedge the fair value risk associated with inventory of copper and aluminium and
accordingly the carrying value of inventory is accordingly adjusted for the effective
portion of change in fair value of hedging instrument.

Hedge accounting is discontinued when the hedging instrument is settled, or when
it no longer qualifies for hedge accounting or when the hedged item is sold (Refer
note 41)

(b) Terms/ rights attached to equity shares

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

The expense is recorded for each separately vesting portion of the award as if
the award was, in substance, multiple awards. The increase in equity recognised
in connection with share based payment transaction is presented as a separate
component in equity under “ESOP Outstanding”. The amount recognised as an
expense is adjusted to reflect the actual number of stock options that vest. For
the option awards, grant date fair value is determined under the option-pricing
model (Black-Scholes). Forfeitures are estimated at the time of grant and revised,
if necessary, in subsequent periods if actual forfeitures materially differ from those
estimates. Corresponding balance of a ESOP Outstanding is transferred to general
reserve upon expiry of grants.

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 option plan

The Company had instituted an ESOP Plan 2018, ESOP Performance Scheme, and
ESOP Privilege Scheme as approved by the Board of Directors and Shareholders
dated 30 August 2018 for issuance of stock option to eligible employees of
the Company.

Under Employee Stock Options Performance Scheme 2018 the options will be
vested in the specified ratio subject to fulfilment of the employee performance
criteria laid down in the scheme. This shall be monitored annually as per the
performance evaluation cycle of the company and options shall vest based on the
achieved rating to the employee.

Under Employee Stock Options Privilege Scheme 2018 the options are vested over
a period of one year subject to fulfilment of service condition.

Expected volatility is based on historical stock volatility of comparable Companies
operating within the same industry. The historical stock prices of comparable
Companies has been observed for a period commensurate to the Life of option.

Pursuant to the said scheme, Stock options convertible into 33,87,750 equity shares
vide ESOP Performance Scheme and 1,42,250 equity shares vide ESOP Privilege
Scheme of H 10 each were granted to eligible employee including group companies
at an exercise price of H 405/-.

(c) General reserve

The Company had 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. General Reserve is used from time to time to transfer
profits from retained earnings for appropriation purposes. As the General Reserve
is created by a transfer from one component of equity to another and is not an item
of other comprehensive income, items included in the General Reserve will not be
reclassified subsequently to statement of profit or loss.

(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.
Retained earnings includes re-measurement loss/(gain) on defined benefit plans,
net of taxes that will not be reclassified to statement of profit and loss. Retained
earnings is a free reserve available to the Company.

Notes:

(a) Acceptances represent amounts payable to banks on due date as per usance period
of Letter of Credit (LCs) issued to vendors under non-fund based working capital
facility approved by Banks for the Company. The arrangements with metal vendors
are interest-bearing LC and for other then metal vendors, LCs are non-interest
bearing. Acceptances is availed in foreign currency from offshore branches of Indian
banks or foreign banks at an interest rate ranging from 4.58 % to 5.79 % per annum
and in rupee from domestic banks at interest rate ranging from 6.90 % to 8.06 % per
annum. Non-fund limits are secured by first pari-passu charge over the present and
future current assets of the Company.

(a) Others include 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.

(b) For the terms and conditions with related parties, refer note 37.

(c) For explanations on the Company''s liquidity risk management processes refer note
40(C).

(d) Information as required to be furnished as per section 22 of the Micro, Small and
Medium Enterprises Development Act, 2006 (MSMED Act) for the year ended 31
March 2025 and year ended 31 March 2024 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.

---

Mar 31, 2024

1. Corporate information

Polycab India Limited (the “Company”) (CIN -L31300GJ1996PLC114183) was incorporated as ‘Polycab Wires Private Limited'' on 10 January 1996 at Mumbai as a private limited company under the Companies Act, 1956. The Company became a deemed public limited company under Section 43A(1) of the Companies Act, 1956, and the word ‘private'' was struck off from the name of the Company with effect from 30 June 2000. Thereafter, the Company was converted into a private limited company under section 43A(2A) of the Companies Act, 1956, and the word ‘private'' was added in the name of the Company with effect from 15 June 2001. Subsequently, the Company was converted into a public limited company, the word ‘private'' was struck off from the name of the Company and consequently, a fresh certificate of incorporation dated 29 August 2018 was issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana (“ROC”), recording the change of the Company''s name to ‘Polycab Wires Limited''. Thereafter, the name of the Company was changed from ‘Polycab Wires Limited'' to ‘Polycab India Limited'', and a fresh certificate of incorporation dated 13 October 2018 was issued by the ROC.

The registered office of the Company is Unit 4, Plot Number 105, Halol Vadodara Road, Village Nurpura, Taluka Halol, Panchmahal, Gujarat 389350.

The Company is the largest manufacturer of Wires and Cables in India and fast growing player in the Fast Moving Electrical Goods (FMEG) space. The Company is also in the business of Engineering, Procurement and Construction (EPC) projects. The Company owns 28 manufacturing facilities, located across the states of Gujarat, Maharashtra, Uttarakhand, Tamil Nadu and U.T. Daman.

The Board of Directors approved the Standalone Financial Statements for the year ended 31 March 2024 and authorised for issue on 10 May 2024.

2. Summary of material accounting policy information

A) Basis of preparation

i Statement of Compliance:

The Company prepares its Standalone Financial Statements to comply with the Indian Accounting Standards (“Ind AS”) specified under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time and the presentation requirements of Division II of Schedule III of Companies Act, 2013 (Ind

AS compliant Schedule III). These Standalone financial statements includes Balance Sheet as at 31 March 2024, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Cash flows and Statement of changes in equity for the year ended 31 March 2024, and a summary of material accounting policy information and other explanatory information (together hereinafter referred to as “Financial Statements”).

ii Basis of Measurement:

The financial statements for the year ended 31 March 2024 have been prepared on an accrual basis and a historical cost convention, except for the following financial assets and liabilities which have been measured at fair value at the end of each reporting period:

(a) Certain financial assets and liabilities (including derivative instruments) (Refer note 38 for accounting policy regarding financial instruments)

(b) Net defined benefit plan where plan assets are measured at fair value (Refer note 30 for accounting policy)

(c) Share-based payments at fair value as on the grant date of options given to employees (Refer note 30 for accounting policy)

In addition, the carrying values of recognised assets and liabilities designated as hedged items in fair value hedges that would otherwise be carried at amortised cost are adjusted to record changes in the fair values attributable to the risks that are being hedged in effective hedge relationships.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received from sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Accounting policies and methods of computation followed in the financial statements are same as compared with the annual financial statements for the year ended 31 March 2023, except for adoption of new standard or any pronouncements effective from 1 April 2023.

The Company has prepared the financial statements on the basis that it will continue to operate as a going concern.

iii Classification of Current / Non-Current Assets and Liabilities:

The Company presents assets and liabilities in the Balance sheet based on current/non-current classification. It has been classified as current or non-current as per the Company''s normal operating cycle, as per para 66 and 69 of Ind AS 1 and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013.

Operating Cycle:

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has ascertained its operating cycle as 12 months for the purpose of current or noncurrent classification of assets and liabilities. Deferred tax assets and liabilities are classified as non-current assets and liabilities."

iv Functional and Presentation Currency:

These financial statements are presented in Indian Rupees ('') which is the functional currency of the Company. All amounts disclosed in the financial statements which also include the accompanying notes have been rounded off to the nearest million up to two decimal places, as per the requirement of Schedule III to the Companies Act 2013, unless otherwise stated. Transactions and balances with values below the rounding off norm adopted by the Company have been reflected as “0” in the relevant notes to these financial statements.

B) Use of estimates and judgements

In the course of applying the policies outlined in all notes, 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 associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about

future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur. The Company uses the following critical accounting estimates in preparation of its financial statements:

i Revenue Recognition

The Company applied judgements that significantly affect the determination of the amount and timing of revenue from contracts at a point in time with customers, such as identifying performance obligations in a sales transactions. In certain non-standard contracts, where the Company provides extended warranties in respect of sale of consumer durable goods, the Company allocated the portion of the transaction price to goods based on its relative standalone prices. Also, certain contracts of sale includes volume rebates that give rise to variable consideration. In respect of long term contracts significant judgments are used in:

(a) Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

(b) Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected total contract cost as at the reporting date.

ii Cost to complete for long term contracts

The Company''s management estimate the cost to complete for each project for the purpose of revenue recognition and recognition of anticipated losses of the projects, if any. In the process of calculating the cost to complete, Management conducts regular and systematic reviews of actual results and future projections with comparison against budget. The process requires monitoring controls including financial and operational controls and identifying major risks faced by the Company and developing and implementing initiative to manage those risks. The Company''s management is confident that the costs to complete the project are fairly estimated.

iii Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in current and future periods.

iv Impairment of investments in subsidiaries and joint-ventures

Determining whether the investments in subsidiaries and joint ventures are impaired requires an estimate in the value in use of investments. The Company reviews its carrying value of investments carried at cost (net of impairment, if any) annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for in the statement of profit and loss. In considering the value in use, the Board of Directors have anticipated the future market conditions and other parameters that affect the operations of these entities.

v Provisions

The Company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates. The timing of recognition requires application of judgement to existing facts and circumstances which may be subject to change.

vi Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystallising or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognised. Contingent assets are neither recognised nor disclosed in the financial statements.

vii Fair value measurement of financial instruments

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is

measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments (Refer note 38 for accounting policy on Fair value measurement of financial instruments).

viii Foreign Currency Transactions / Translations

Transactions in currencies other than Company''s functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the date of transaction. At the end of the reporting period, monetary items denominated in foreign currencies are reported using the exchange rate prevailing as at reporting date. Non-monetary items denominated in foreign currencies which are carried in terms of historical cost are reported using the exchange rate at the date of the transaction. Exchange differences arising on the settlement of monetary items or on translating monetary items at the exchange rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or expenses in the year in which they arise.

ix Provision for income tax and deferred tax assets

The Company uses estimates and judgements based on the relevant rulings in the areas of allocation of revenue, costs, allowances and disallowances which is exercised while determining the provision for income tax. A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Accordingly, the Company exercises its judgement to reassess the carrying amount of deferred tax assets at the end of each reporting period.

x Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If an indication exists, or when the annual impairment testing of the asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or Cashgenerating-unit''s (CGU''s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from the other assets or group of assets. When the carrying amount of an asset or CGU exceeds it recoverable amount, the asset is considered as impaired and it''s written down to its recoverable amount.

The Company estimates the value-in-use of the Cash generating unit (CGU) based on the future cash flows after considering current economic conditions and trends, estimated future operating results and growth rate and anticipated future economic and regulatory conditions. The estimated cash flows are developed using internal forecasts. The estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset/CGU.

xi Employee benefits

The accounting of employee benefit plans in the nature of defined benefit requires the Co mpany to use assumptions. These assumptions have been explained under employee benefits note.

xii Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company determines the lease term as the noncancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to

terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

C) Changes in material accounting policy information

The Company has applied new standards, interpretations and amendments issued and effective for annual periods beginning on or after 01 April 2023. This did not have any material changes in the Company''s standalone accounting policies.

D) New and amended standards

The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after 01 April 2023.

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from 01 April 2023, as below:

(i) Definition of Accounting Estimates -Amendments to Ind AS 8:

The amendments to Ind AS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates. The amendments had no impact on the Company''s standalone financial statements.

(ii) Disclosure of Accounting Policies -Amendments to Ind AS 1:

The amendments to Ind AS 1 provided guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant'' accounting policies with a requirement to disclose their ‘material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments had an impact

on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s standalone financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12:

The amendments to Ind AS 12 Income Tax narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning liabilities. The amendments had no impact on the Company''s standalone financial statements.

E) Recent Indian Accounting Standards (Ind AS) issued not yet effective

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On 31 March 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

F) The material accounting policy information used in preparation of the standalone financial statements have been discussed in the respective notes.

3. Property, plant and equipment

Accounting policy

Property, plant and equipment are stated at cost, net of accumulated depreciation (other than freehold land) and impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Capitalisation of costs in the carrying amount of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by the Company. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. Incomes and expenses related to the incidental operations not necessary to bring the item to the location and the condition necessary for it to be capable of operating in the manner intended by the Company are recognised in

the Statement of profit and loss. All other expenses on existing property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit & Loss for the year in which such expenses are incurred.

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 comprising direct costs, related incidental expenses, other directly attributable costs and borrowing costs.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of property, plant and equipments are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit & Loss under ‘Other expenses'' or ‘Other income'' when the asset is derecognised.

Depreciation on Property, plant and equipment''s is calculated on pro rata basis on straight-line method using the management assessed useful lives of the assets which is in line with the manner prescribed in Schedule II of the Companies Act, 2013. The useful life is as follows:

Assets	Useful life
Buildings	30-60 years
Plant and equipments	3-15 years
Electrical installations	10 years
Furniture and fixtures	10 years
Office equipments	3-6 years
Windmill	22 years
Vehicles	8-10 years
Leasehold land and	Lower of useful life of the
improvements	asset or lease term

I n case of certain class of assets, the Company uses different useful life than those prescribed in Schedule II of the Companies Act, 2013. The useful life has been assessed based on technical advice, taking into account the nature of the asset, the estimated usage of the asset on the basis of the management''s best estimation of getting economic benefits from those classes of assets. The Company uses its technical expertise along with historical and industry trends for arriving at the economic life of an asset.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted

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

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under ‘Capital work-in-progress''.

---

Mar 31, 2023

1. Corporate information

Polycab India Limited (the “Company") (CIN -L31300GJ1996PLC114183) was incorporated as ‘Polycab Wires Private Limited'' on 10 January 1996 at Mumbai as a private limited company under the Companies Act, 1956. The Company became a deemed public limited company under Section 43A(1) of the Companies Act, 1956, and the word ‘private'' was struck off from the name of the Company with effect from 30 June 2000. Thereafter, the Company was converted into a private limited company under section 43A(2A) of the Companies Act, 1956, and the word ‘private'' was added in the name of the Company with effect from 15 June 2001. Subsequently, the Company was converted into a public limited company, the word ‘private'' was struck off from the name of the Company and consequently, a fresh certificate of incorporation dated 29 August 2018 was issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana (“ROC"), recording the change of the Company''s name to ‘Polycab Wires Limited''. Thereafter, the name of the Company was changed from ‘Polycab Wires Limited'' to ‘Polycab India Limited'', and a fresh certificate of incorporation dated 13 October 2018 was issued by the ROC.

The registered office of the Company is Unit 4, Plot Number 105, Halol Vadodara Road, Village Nurpura, Taluka Halol, Panchmahal, Gujarat 389350.

The Company is the largest manufacturer of Wires and Cables in India and fast growing player in the Fast Moving Electrical Goods (FMEG) space. The Company is also in the business of Engineering, Procurement and Construction (EPC) projects. The Company owns 25 manufacturing facilities, located across the states of Gujarat, Maharashtra, Uttarakhand, Tamil Nadu and U.T. Daman.

The Board of Directors approved the Standalone Financial Statements for the year ended 31 March 2023 and authorised for issue on 12 May 2023.

2. Summary of significant accounting policiesA) Basis of preparation

i Statement of Compliance:

The Company prepares its Standalone Financial Statements to comply with the Indian Accounting Standards (“Ind AS") specified under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time and the presentation requirements of Division II of Schedule III of Companies Act, 2013 (Ind AS compliant Schedule III). These Standalone financial statements includes

Balance Sheet as at 31 March 2023, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Cash flows and Statement of changes in equity for the year ended 31 March 2023, and a summary of significant accounting policies and other explanatory information (together hereinafter referred to as “Financial Statements").

ii Basis of Measurement:

The financial statements for the year ended 31 March 2023 have been prepared on an accrual basis and a historical cost convention, except for the following financial assets and liabilities which have been measured at fair value or amortised cost at the end of each reporting period:

(a) Derivative financial instruments (Refer note 37 for accounting policy regarding financial instruments)

(b) Certain financial assets and liabilities (Refer note 37 for accounting policy regarding financial instruments)

(c) Net defined benefit plan (Refer note 29 for accounting policy)

(d) Share Based Payments (Refer note 29 for accounting policy)

In addition, the carrying values of recognised assets and liabilities designated as hedged items in fair value hedges that would otherwise be carried at amortised cost are adjusted to record changes in the fair values attributable to the risks that are being hedged in effective hedge relationships.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received from sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Accounting policies and methods of computation followed in the financial statements are same as compared with the annual financial statements for the year ended 31 March 2022, except for adoption of new standard or any pronouncements effective from 1 April 2022.

The Company presents an additional balance sheet at the beginning of the earliest comparative period when: it applies an accounting policy retrospectively; it makes a retrospective

restatement of items in its financial statements; or, when it reclassifies items in its financial statements, and the change has a material effect on the financial statements.

The Company has prepared the financial statements on the basis that it will continue to operate as a going concern.

iii Classification of Current / Non-Current Assets and Liabilities:

The Company presents assets and liabilities in the Balance sheet based on current / non-current classification. It has been classified as current or non-current as per the Company''s normal operating cycle, as per para 66 and 69 of Ind AS 1 and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013.

Operating Cycle:

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle for the purpose of current noncurrent classification of assets and liabilities.

An asset is treated as current when it is:

(a) Expected to be realised or intended to be sold or consumed in normal operating cycle;

(b) Held primarily for the purpose of trading;

(c) Expected to be realised within twelve months after the reporting period; or

(d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

(a) It is expected to be settled in normal operating cycle;

(b) It is held primarily for the purpose of trading;

(c) It is due to be settled within twelve months after the reporting period; or

(d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

iv Functional and Presentation Currency:

These financial statements are presented in Indian Rupees (?) which is the functional currency of the Company. All amounts disclosed in the financial statements which also include the accompanying notes have been rounded off to the nearest million up to two decimal places, as per the requirement of Schedule III to the Companies Act 2013, unless otherwise stated. Transactions and balances with values below the rounding off norm adopted by the Company have been reflected as “0" in the relevant notes to these financial statements.

B) Use of estimates and judgements

In the course of applying the policies outlined in all notes, 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 associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur. The Company uses the following critical accounting estimates in preparation of its financial statements:

i Revenue Recognition

The Company applied judgements that significantly affect the determination of the amount and timing of revenue from contracts at a point in time with customers, such as identifying performance obligations in a sales transactions. In certain nonstandard contracts, where the Company provides extended warranties in respect of sale of consumer

durable goods, the Company allocated the portion of the transaction price to goods based on its relative standalone prices. Also, certain contracts of sale includes volume rebates that give rise to variable consideration. In respect of long term contracts significant judgments are used in:

(a) Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

(b) Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected total contract cost as at the reporting date.

ii Cost to complete for long term contracts

The Company''s management estimate the cost to complete for each project for the purpose of revenue recognition and recognition of anticipated losses of the projects, if any. In the process of calculating the cost to complete, Management conducts regular and systematic reviews of actual results and future projections with comparison against budget. The process requires monitoring controls including financial and operational controls and identifying major risks face by the Company and developing and implementing initiative to manage those risks. The Company''s Management is confident that the costs to complete the project are fairly estimated.

iii Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in current and future periods.

iv Impairment of investments in subsidiaries and joint-ventures

Determining whether the investments in subsidiaries, joint ventures and associates are impaired requires an estimate in the value in use of investments. The Company reviews its carrying value of investments carried at cost (net of impairment, if any) annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for in the statement of profit and loss. In considering the value in use, the Board of Directors have anticipated the future market conditions and other parameters that affect the operations of these entities.

v Provisions

The Company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates. The timing of recognition requires application of judgement to existing facts and circumstances which may be subject to change.

vi Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystallising or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognised. Contingent assets are neither recognised nor disclosed in the financial statements.

vii Fair value measurement of financial instruments

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments (Refer note 37 for accounting policy on Fair value measurement of financial instruments).

viii Foreign Currency Transactions / Translations

Transactions in currencies other than Company''s functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the date of transaction. At the end of the reporting period, monetary items denominated in foreign currencies are reported using the exchange rate prevailing as at reporting date. Non-monetary items denominated in foreign currencies which are carried in terms of historical cost are reported using the exchange rate at the date of the transaction. Exchange differences arising on the settlement of monetary items or on translating monetary items

at the exchange rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or expenses in the year in which they arise.

ix Provision for income tax and deferred tax assets

The Company uses estimates and judgements based on the relevant rulings in the areas of allocation of revenue, costs, allowances and disallowances which is exercised while determining the provision for income tax. A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Accordingly, the Company exercises its judgement to reassess the carrying amount of deferred tax assets at the end of each reporting period.

x Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If an indication exists, or when the annual impairment testing of the asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or Cash-generating-unit''s (CGU''s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from the other assets or group of assets. When the carrying amount of an asset or CGU exceeds it recoverable amount, the asset is considered as impaired and it''s written down to its recoverable amount.

The Company estimates the value-in-use of the Cash generating unit (CGU) based on the future cash flows after considering current economic conditions and trends, estimated future operating results and growth rate and anticipated future economic and regulatory conditions. The estimated cash flows are developed using internal forecasts. The estimated future cash flows are discounted to their present value using a pre-tax discount rate

that reflects the current market assessments of the time value of money and the risks specific to the asset/ CGU.

xi Employee benefits

The accounting of employee benefit plans in the nature of defined benefit requires the Company to use assumptions. These assumptions have been explained under employee benefits note.

xii Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company determines the lease term as the noncancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

C) Changes in significant accounting policies

The Company has not been required to apply any new standard, interpretation or amendment that has been issued and therefore there were no significant changes in the accounting policies.

D) New and amended standards

The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after 01 April 2022.

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standard) Amendment Rules 2022 dated 23 March 2022, to amend the following Ind AS which are effective from 01 April 2022.

(i) Onerous Contracts - Costs of Fulfilling a Contract - Amendments to Ind AS 37

An onerous contract is a contract under which the unavoidable of meeting the obligations under the contract costs (i.e., the costs that the Company cannot avoid because it has the contract) exceed the economic benefits expected to be received under it.

The amendments specify that when assessing whether a contract is onerous or loss-making, an entity needs to include costs that relate directly to a contract to provide goods or services including both incremental costs (e.g., the costs of direct labour and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used to fulfil the contract and costs of contract management and supervision). General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract.

The Company applied the amendments to the contracts for which it had not fulfilled all of its obligations at the beginning of the reporting period. The Company did not have any significant impact on the standalone financial statements due to this amendment.

(ii) Reference to the Conceptual Framework -Amendments to Ind AS 103

The amendments replaced the reference to the ICAI''s “Framework for the Preparation and Presentation of Financial Statements under Indian Accounting Standards" with the reference to the “Conceptual Framework for Financial Reporting under Indian Accounting Standard" without significantly changing its requirements.

The amendments also added an exception to the recognition principle of Ind AS 103 Business Combinations to avoid the issue of potential ‘day 2'' gains or losses arising for liabilities and contingent liabilities that would be within the scope of Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets or Appendix C, Levies, of Ind AS 37, if incurred separately. The exception requires entities to apply the criteria in Ind AS 37 or Appendix C, Levies, of Ind AS 37, respectively, instead of the Conceptual Framework, to determine whether a present obligation exists at the acquisition date. The amendments also add a new paragraph to Ind AS 103 to clarify that contingent assets do not qualify for recognition at the acquisition date.

In accordance with the transitional provisions, the Company applies the amendments prospectively, i.e., to business combinations occurring after the beginning of the annual reporting period in which it first applies the amendments (the date of initial application).

These amendments had no impact on the standalone financial statements of the Company as there were no contingent assets, liabilities or contingent liabilities within the scope of these amendments that arose during the year.

(iii) Property, Plant and Equipment: Proceeds before Intended Use - Amendments to Ind AS 16

The amendments modified paragraph 17(e) of Ind AS 16 to clarify that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment.

The amendments are effective for annual reporting periods beginning on or after 1 April 2022. These amendments had no impact on the standalone financial statements of the Company as there were no sales of such items produced by property, plant and equipment made available for use on or after the beginning of the earliest period presented.

(iv) Ind AS 109 Financial Instruments - Fees in the ''10 per cent'' test for derecognition of financial liabilities

The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other''s behalf.

In accordance with the transitional provisions, the Company applies the amendment to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment (the date of initial application). These amendments had no impact on the standalone financial statements of the Company as there were no modifications of the Company''s financial instruments during the year.

E) Recent Indian Accounting Standards (Ind AS) issued not yet effective

Ministry of Corporate Affairs (“MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On 31 March 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from 01 April 2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its standalone financial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company does not expect this amendment to have any significant impact in its standalone financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require

items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its standalone financial statements.

F) The significant accounting policies used in preparation of the standalone financial statements have been discussed in the respective notes.

3. Property, plant and equipment Accounting policy

Property, plant and equipment are stated at cost, net of accumulated depreciation (other than freehold land) and impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Capitalisation of costs in the carrying amount of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by the Company. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. Incomes and expenses related to the incidental operations not necessary to bring the item to the location and the condition necessary for it to be capable of operating in the manner intended by the Company are recognised in the Statement of profit and loss. All other expenses on existing property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit & Loss for the year in which such expenses are incurred.

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 comprising direct costs, related incidental expenses, other directly attributable costs and borrowing costs.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of property, plant and equipments are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit & Loss when the asset is derecognised.

The carrying amount of an item of property, plant and equipment is derecognised on disposal or when no further benefit is expected from its use and disposal. Assets retired from active use and held for disposal are generally stated at the lower of their net book value and net realizable value. Any gain or losses arising on disposal of property, plant and equipment is recognised in the Statement of Profit and Loss. Once the assets classified as held-for-sale, property, plant and equipment are no longer depreciated.

Depreciation on Property, plant and equipment''s is calculated on pro rata basis on straight-line method using the management assessed useful lives of the assets which is in line with the manner prescribed in Schedule II of the Companies Act, 2013. The useful life is as follows:

Assets
Buildings	30-60 years
Plant and equipments	3-15 years
Electrical installations	10 years
Furniture and fixtures	10 years
Office equipments	3-6 years
Windmill	22 years
Vehicles	8-10 years
Leasehold land and improvements	Lower of useful life of the asset or lease term

In case of certain class of assets, the Company uses different useful life than those prescribed in Schedule II of the Companies Act, 2013. The useful life has been assessed based on technical advice, taking into account the nature of the asset, the estimated usage of the asset on the basis of the management''s best estimation of getting economic benefits from those

classes of assets. The Company uses its technical expertise along with historical and industry trends for arriving at the economic life of an asset.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively. Depreciation is not recorded on capital work-in-progress until construction and installation is complete and the asset is ready for its intended use.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under ‘Capital work-in-progress''.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of the respective asset. Borrowing cost incurred for constructed assets is capitalised up to the date by which asset is ready for its intended use, based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings, if no specific borrowings have been incurred for the asset. All other borrowing costs are expensed in the period they occur.

Property, plant and equipment with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in the statement of profit and loss.

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Mar 31, 2022

1. Corporate information

Polycab India Limited (the "Company") (CIN -L31300GJ1996PLC114183) was incorporated as ''Polycab Wires Private Limited'' on 10 January 1996 at Mumbai as a private limited company under the Companies Act, 1956. The Company became a deemed public limited company under Section 43A(1) of the Companies Act, 1956, and the word ''private'' was struck off from the name of the Company with effect from 30 June 2000. Thereafter, the Company was converted into a private limited company under Section 43A(2A) of the Companies Act, 1956, and the word ''private'' was added in the name of the Company with effect from 15 June 2001. Subsequently, the Company was converted into a public limited company, the word ''private'' was struck off from the name of the Company and consequently, a fresh certificate of incorporation dated 29 August 2018 was issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana ("ROC"), recording the change of the Company''s name to ''Polycab Wires Limited''. Thereafter, the name of the Company was changed from ''Polycab Wires Limited'' to ''Polycab India Limited'', and a fresh certificate of incorporation dated 13 October 2018 was issued by the ROC.

The registered office of the Company is Unit 4, Plot Number 105, Halol Vadodara Road, Village Nurpura, Taluka Halol, Panchmahal, Gujarat - 389 350.

The Company is the largest manufacturer of Wires and Cables in India and fast growing player in the Fast Moving Electrical Goods (FMEG) space. The Company is also in the business of Engineering, Procurement and Construction (EPC) projects. The Company owns 23 manufacturing facilities, located across the states of Gujarat, Maharashtra, Uttarakhand, and U.T. Daman.

The Board of Directors approved the Standalone Financial Statements for the year ended 31 March 2022 and authorised for issue on 10 May 2022.

2. Summary of significant accounting policiesA) Basis of preparation

i. Statement of compliance:

The Company prepares its Standalone Financial Statements to comply with the accounting standards specified under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time. These Standalone financial statements includes Balance Sheet as at 31 March 2022, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Cash flows and Statement of changes in equity for the year ended 31 March 2022, and a summary of significant accounting policies and other explanatory information (together hereinafter referred to as "Financial Statements").

ii. Basis of measurement:

The financial statements for the year ended 31 March 2022 have been prepared on an accrual basis and a historical cost convention, except for the following financial assets and liabilities which have been measured at fair value or amortised cost at the end of each reporting period:

(a) Derivative financial instruments

(b) Certain financial assets and liabilities (Refer note 38 for accounting policy regarding financial instruments)

(c) Net defined benefit plan (Refer note 30 for accounting policy)

(d) Share Based Payments (Refer note 30 for accounting policy)

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received from sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Accounting policies and methods of computation followed in the financial statements are same as compared with the annual financial statements for the year ended 31 March 2021, except for adoption of new standard or any pronouncements effective from 01 April 2021.

The Company presents an additional balance sheet at the beginning of the earliest comparative period when: it applies an accounting policy retrospectively; it makes a retrospective restatement of items in its financial statements; or, when it reclassifies items in its financial statements, and the change has a material effect on the financial statements.

iii. Classification of current/non-current assets and liabilities:

The Company presents assets and liabilities in the Balance sheet based on current/non-current classification. It has been classified as current or non-current as per the Company''s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013.

Operating Cycle:

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle for the purpose of current non-current classification of assets and liabilities.

An asset is treated as current when it is:

(a) Expected to be realised or intended to be sold or consumed in normal operating cycle

(b) Held primarily for the purpose of trading;

(c) Expected to be realised within twelve months after the reporting period; or

(d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

(a) It is expected to be settled in normal operating cycle;

(b) It is held primarily for the purpose of trading;

(c) It is due to be settled within twelve months after the reporting period; or

(d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

iv. Functional and Presentation currency:

These financial statements are presented in Indian Rupees (?) which is the functional currency of the Company. All amounts disclosed in the financial statements which also include the accompanying notes have been rounded off to the nearest million up to two decimal places, as per the requirement of Schedule III to the Companies Act, 2013, unless otherwise stated.

B) Use of estimates and judgements

In the course of applying the policies outlined in all notes, 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 associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur. The Company

uses the following critical accounting estimates in preparation of its financial statements:

i. Revenue recognition:

The Company applied judgements that significantly affect the determination of the amount and timing of revenue from contracts at a point in time with customers, such as identifying performance obligations in a sales transactions. In certain non-standard contracts, where the Company provides extended warranties in respect of sale of consumer durable goods, the Company allocated the portion of the transaction price to goods based on its relative standalone prices. Also, certain contracts of sale includes volume rebates that give rise to variable consideration. In respect of long-term contracts significant judgements are used in:

(a) Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

(b) Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected total contract cost as at the reporting date.

ii. Cost to complete for long-term contracts

The Company''s management estimate the cost to complete for each project for the purpose of revenue recognition and recognition of anticipated losses of the projects, if any. In the process of calculating the cost to complete, Management conducts regular and systematic reviews of actual results and future projections with comparison against budget. The process requires monitoring controls including financial and operational controls and identifying major risks face by the Company and developing and implementing initiative to manage those risks. The Company''s Management is confident that the costs to complete the project are fairly estimated.

iii. Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in current and future periods.

iv. Impairment of investments in subsidiaries and joint- ventures

Determining whether the investments in subsidiaries, joint ventures and associates are impaired requires an

estimate in the value in use of investments. The Company reviews its carrying value of investments carried at cost (net of impairment, if any) annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for in the statement of profit and loss. In considering the value in use, the Board of Directors have anticipated the future market conditions and other parameters that affect the operations of these entities.

v. Provisions

The Company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates. The timing of recognition requires application of judgement to existing facts and circumstances which may be subject to change.

vi. Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystallising or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognised. Contingent assets are neither recognised nor disclosed in the financial statements.

vii. Fair value measurement of financial instruments

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments (Refer note 38 for accounting policy on Fair value measurement of financial instruments).

viii. Foreign currency transactions/translations

Transactions in currencies other than Company''s functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the date of transaction. At the end of the reporting period, monetary items denominated in foreign currencies are reported using the exchange rate prevailing as at reporting date. Non-monetary items denominated in foreign currencies which are carried in terms of historical cost are reported

using the exchange rate at the date of the transaction. Exchange differences arising on the settlement of monetary items or on translating monetary items at the exchange rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or expenses in the year in which they arise.

ix. Provision for income tax and deferred tax assets

The Company uses estimates and judgements based on the relevant rulings in the areas of allocation of revenue, costs, allowances and disallowances which is exercised while determining the provision for income tax. A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Accordingly, the Company exercises its judgement to reassess the carrying amount of deferred tax assets at the end of each reporting period.

x. Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If an indication exists, or when the annual impairment testing of the asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or Cash-generating-unit''s (CGU''s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from the other assets or group of assets. When the carrying amount of an asset or CGU exceeds it recoverable amount, the asset is considered as impaired and it''s written down to its recoverable amount.

The Company estimates the value-in-use of the Cash generating unit (CGU) based on the future cash flows after considering current economic conditions and trends, estimated future operating results and growth rate and anticipated future economic and regulatory conditions. The estimated cash flows are developed using internal forecasts. The estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset/CGU.

Depreciation on Property, plant and equipment''s is calculated on pro rata basis on straight-line method using the management assessed useful lives of the assets which is in line with the manner prescribed in Schedule II of the Companies Act, 2013. The useful life is as follows:

Assets
Buildings	30-60 years
Plant and equipments	3-15 years
Electrical installations	10 years
Furniture and fixtures	10 years
Office equipments	3-6 years
Windmill	22 years
Vehicles	8-10 years
Leasehold land and improvements	Lower of useful
	life of the asset or
	lease term

xi. Employee benefits

The accounting of employee benefit plans in the nature of defined benefit requires the Company to use assumptions. These assumptions have been explained under employee benefits note.

xii. Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgement. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

C) Changes in significant accounting policies

The Company has not been required to apply any new standard, interpretation or amendment that has been issued and therefore there were no significant changes in the accounting policies.

D) Recent pronouncement

The amendments to Schedule III of the Companies Act, 2013 are applicable from 01 April 2021. The Company has given effect of amendment by inclusion of the relevant disclosures under explanatory notes or by way of additional notes, wherever significant in nature.

E) Recent Indian Accounting Standards (Ind AS) issued not yet effective

Ministry of Corporate Affairs ("MCA") notified new standard or amendments to the existing standards under Companies

(Indian Accounting Standards) Rules as issued from time to time. On 23 March 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from 01 April 2022, as below:

Ind AS 103 - Reference to conceptual framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 16 - Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the Company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in statement of profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

Ind AS 37 - Provisions, contingent liabilities and contingent assets

The amendment specifies that the ''cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The effective date for adoption of this amendment is annual periods beginning on or after 1 April 2022, although early adoption is permitted. The Company has evaluated the amendment and the impact is not expected to be material.

F) The significant accounting policies used in preparation of the financial statements have been discussed in the respective notes.

3. Property, plant and equipment Accounting policy

Property, plant and equipment are stated at cost, net of accumulated depreciation (other than freehold land) and impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Capitalisation of costs in the carrying amount of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by the Company. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. Incomes and expenses related to the incidental operations not necessary to bring the item to the location and the condition necessary for it to be capable of operating in the manner intended by the Company are recognised in the Statement of profit and loss. All other expenses on existing property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of

In case of certain class of assets, the Company uses different useful life than those prescribed in Schedu le I I of the Companies Act, 2013. The useful life has been assessed based on technical advice, taking into account the nature of the asset, the estimated usage of the asset on the basis of the management''s best estimation of getting economic benefits from those classes of assets. The Company uses its technical expertise along with historical and industry trends for arriving at the economic life of an asset.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively. Depreciation is not recorded on capital work-in-progress until construction and installation is complete and the asset is ready for its intended use.

replacing parts, are charged to the Statement of Profit & Loss for the year in which such expenses are incurred.

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 comprising direct costs, related incidental expenses, other directly attributable costs and borrowing costs.

Gains or losses arising from derecognition of property, plant and equipments are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit & Loss when the asset is derecognised.

The carrying amount of an item of property, plant and equipment is derecognised on disposal or when no further benefit is expected from its use and disposal. Assets retired from active use and held for disposal are generally stated at the lower of their net book value and net realisable value. Any gain or losses arising on disposal of property, plant and equipment is recognised in the Statement of Profit and Loss. Once the assets classified as held-for-sale, property, plant and equipment are no longer depreciated.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under ''Capital work-in-progress''.

Borrowing costs directly attributable to the acquisition, construction or production of an 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 the respective asset. Borrowing cost incurred for constructed assets is capitalised up to the date by which asset is ready for its intended use, based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings, if no specific borrowings have been incurred for the asset. All other borrowing costs are expensed in the period they occur.

Property, plant and equipment with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in the statement of profit and loss.

Transition to Ind AS: On transition to Ind AS, the Company had elected to continue with the carrying value of all of its property, plant and equipment recognised as at 01 April 2016 measured as per the previous GAAP and used that carrying value as the deemed cost of the property, plant and equipment.

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Mar 31, 2021

1. Corporate information

Polycab India Limited (the "Company") (CIN-L31300GJ1996PLC114183) was incorporated as ''Polycab Wires Private Limited'' on January 10, 1996 at Mumbai as a private limited company under the Companies Act, 1956. The Company became a deemed public limited company under Section 43A(1) of the Companies Act, 1956, and the word ''private'' was struck off from the name of the Company with effect from June 30, 2000. Thereafter, the Company was converted into a private limited company under Section 43A(2A) of the Companies Act, 1956, and the word ''private'' was added in the name of the Company with effect from June 15, 2001. Subsequently, the Company was converted into a public limited company, the word ''private'' was struck off from the name of the Company and consequently, a fresh certificate of incorporation dated 29 August 2018 was issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana ("ROC"), recording the change of the Company''s name to ''Polycab Wires Limited''. Thereafter, the name of the Company was changed from ''Polycab Wires Limited'' to ''Polycab India Limited'', and a fresh certificate of incorporation dated October 13, 2018 was issued by the ROC.

During the current year, the registered office of the Company has been shifted to Unit 4, Plot Number 105, Halol Vadodara Road, Village Nurpura, Taluka Halol, Panchmahal, Gujarat 389 350.

The Company is the largest manufacturer of Wires and Cables in India and fast growing player in the Fast Moving Electrical Goods (FMEG) space. The Company is also in the business of Engineering, Procurement and Construction (EPC) projects. The Company owns 23 manufacturing facilities, located across the states of Gujarat, Maharashtra, Uttarakhand, and U.T. Daman.

The Board of Directors approved the Standalone Financial Statements for the year ended March 31, 2021 and authorised for issue on May 13, 2021.

2. Summary of significant accounting policies

A) Basis of preparation

i. Statement of Compliance:

The Company prepares its Standalone Financial Statements to comply with the accounting standards specified under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time. These Standalone financial statements includes Balance Sheet as at March 31, 2021, the Statement of Profit and Loss including Other Comprehensive Income, Cash flows Statement and Statement of changes in equity for the year ended March 31, 2021, and a summary of significant accounting policies and other explanatory information (together hereinafter referred to as "Financial Statements").

ii. Basis of Measurement:

The financial statements for the year ended March 31, 2021 have been prepared on an accrual basis and a historical cost convention, except for the following financial assets and liabilities which have been measured at fair value or amortised cost at the end of each reporting period:

(a) Derivative financial instruments

(b) Certain financial assets and liabilities (Refer note 37 for accounting policy regarding financial instruments)

(c) Net defined benefit plan (Refer note 29 for accounting policy)

(d) Share Based Payments (Refer note 29 for accounting policy)

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received from sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Accounting policies and methods of computation followed in the financial statements are same as compared with the annual financial statements for the year ended March 31, 2020, except for adoption ofnew standard or any pronouncements effective from April 1, 2020.

The Company presents an additional balance sheet at the beginning of the earliest comparative period when: it applies an accounting policy retrospectively; it makes a retrospective restatement of items in its financial statements; or, when it reclassifies items in its financial statements, and the change has a material effect on the financial statements.

iii. Classification of Current/Non-Current Assets and Liabilities:

The Company presents assets and liabilities in the Balance sheet based on current/non-current classification. It has been classified as current or non-current as per the Company''s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013.

Operating Cycle:

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle for the purpose of current non-current classification of assets and liabilities.

An asset is treated as current when it is:

(a) Expected to be realised or intended to be sold or consumed in normal operating cycle

(b) Held primarily for the purpose of trading;

(c) Expected to be realised within twelve months after the reporting period; or

(d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

(a) It is expected to be settled in normal operating cycle;

(b) It is held primarily for the purpose of trading;

(c) It is due to be settled within twelve months after the reporting period; or

(d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

iv. Functional and Presentation Currency:

These financial statements are presented in Indian Rupees (?) which is the functional currency of the Company. All amounts disclosed in the financial statements which also include the accompanying notes have been rounded off to the nearest million up to two decimal places, as per the requirement of Schedule III to the Companies Act, 2013, unless otherwise stated.

B) Use of estimates and judgements

In the course of applying the policies outlined in all notes, 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 associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur. The Company uses the following critical accounting estimates in preparation of its financial statements:

i. Revenue Recognition:

The Company applied judgements that significantly affect the determination of the amount and timing of revenue from contracts at a point in time with customers, such as identifying performance obligations in a sales transactions. In certain non-standard contracts, where the Company provides extended warranties in respect of sale of consumer durable goods, the Company allocated the portion of the transaction price to goods based on its relative standalone prices. Also, certain contracts of sale includes volume rebates that give rise to variable consideration. In respect of long-term contracts significant judgements are used in:

(a) Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

(b) Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected total contract cost as at the reporting date.

ii. Cost to complete for long-term contracts

The Company''s management estimate the cost to complete for each project for the purpose of revenue recognition and recognition of anticipated losses of the projects, if any. In the process of calculating the cost to complete, Management conducts regular and systematic reviews of actual results and future projections with comparison against budget. The process requires monitoring controls including financial and operational controls and identifying major risks face by the Company and developing and implementing initiative to manage those risks. The Company''s Management is confident that the costs to complete the project are fairly estimated.

iii. Useful lives of property, plant and equipment

The Company reviews the useful life ofproperty, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in current and future periods.

iv. Impairment of investments in subsidiaries and joint-ventures

Determining whether the investments in subsidiaries, joint ventures and associates are impaired requires an estimate in the value in use of investments. The Company reviews its carrying value of investments carried at cost (net of impairment, if any) annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for in the statement of profit and loss. In considering the value in use, the Board of Directors have anticipated the future market conditions and other parameters that affect the operations of these entities.

v. Provisions

The Company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates. The timing of recognition requires application ofjudgement to existing facts and circumstances which may be subject to change.

vi. Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystallising or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognised. Contingent assets are neither recognised nor disclosed in the financial statements.

vii. Fair value measurement of financial instruments

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree ofjudgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments (Refer note 37 for accounting policy on Fair value measurement of financial instruments).

viii. Foreign Currency Transactions/Translations

Transactions in currencies other than Company''s functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the date of transaction. At the end of the reporting period, monetary items denominated in foreign currencies are reported using the exchange rate prevailing as at reporting date. Non-monetary items denominated in foreign currencies which are carried in terms of historical cost are reported using the exchange rate at the date of the

transaction. Exchange differences arising on the settlement of monetary items or on translating monetary items at the exchange rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or expenses in the year in which they arise.

ix. Provision for income tax and deferred tax assets

The Company uses estimates and judgements based on the relevant rulings in the areas of allocation of revenue, costs, allowances and disallowances which is exercised while determining the provision for income tax. A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised. Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Accordingly, the Company exercises its judgement to reassess the carrying amount of deferred tax assets at the end of each reporting period.

x. Impairment of non-fincia assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If an indication exists, or when the annual impairment testing of the asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or Cash-generating-unit''s (CGU''s) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from the other assets or group of assets. When the carrying amount of an asset or CGU exceeds it recoverable amount, the asset is considered as impaired and it''s written down to its recoverable amount.

The Company estimates the value-in-use of the Cash generating unit (CGU) based on the future cash flows after considering current economic conditions and trends, estimated future operating results and growth rate and anticipated future economic and regulatory conditions. The estimated cash flows are developed using internal forecasts. The estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset/CGU.

xi. Employee benefits

The accounting of employee benefit plans in the nature of defined benefit requires the Company to use assumptions. These assumptions have been explained under employee benefits note.

xii. Leases

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgement. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

xiii. Estimation of uncertainties relating to the global health pandemic from COVID-19

The Company has taken into account the possible impacts of COVID-19 in preparation of the financial statements, including but not limited to its assessment of liquidity and going concern assumption, recoverable values of its financial and non-fincia assets, impact on revenues and on cost budgets in respect of EPC contracts, impact on leases and impact on effectiveness of its hedging relationships. The Company has considered internal and certain external sources of information up to the date of approval of the financial statements and expects to recover the carrying amount of its assets. The impact of COVID-19 on the financial statements may differ from that estimated as at the date of approval of these financial statements.

C) Changes in significant accounting policies

The Ministry of Corporate Affairs ("MCA") through Companies (Indian Accounting Standards) Amendment Rules, 2020 has notified amendments to certain Ind AS. The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after April 1, 2020. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Amendments to Ind AS 1 and Ind AS 8 Definition of Material:

The amendments provide a new definition of material that states, "information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity." The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. These amendments had no impact on the standalone financial statements of, nor is there expected to be any future impact to the Company.

Amendments to Ind AS 103: Definition of a Business:

The amendment to Ind AS 103 Business Combinations clarifies that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that, together, significantly contribute to the ability to create output. Furthermore, it clarifies that a business can exist without including all of the inputs and processes needed to create outputs. These amendments had no impact on the standalone financial statements of the Company, but may impact future periods should the Company enter into any business combinations.

Amendments to Ind AS 107 and Ind AS 109 Interest Rate Benchmark Reform:

The amendments to IFRS 9 and IAS 39 Financial Instruments: Recognition and Measurement provide a number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainty about the timing and/or amount of benchmark-based cash flows of the hedged item or the hedging instrument. These amendments have no impact on the standalone financial statements of the Company as it does not have any interest rate hedge relationships.

Amendments to Ind AS 116 COVID-19 Related Rent Concessions:

The amendments provide relief to lessees from applying Ind AS 116 guidance on lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic. As a practical expedient, a lessee may elect not to assess whether a COVID-19 related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any change in lease payments resulting from the COVID-19 related rent concession the same way it would account for the change under Ind AS 116, if the change were not a lease modification.

The Company opted to apply the practical expedient and recognised income of ''12.96 million (presented under ""Other income'') during the current year.

Conceptual Framework for Financial Reporting:

The Conceptual Framework is not a standard, and none of the concepts contained therein override the concepts or requirements in any standard. The purpose of the Conceptual Framework is to assist in developing standards, to help preparers develop consistent accounting policies where there is no applicable standard in place and to assist all parties to understand and interpret the standards. This will affect those entities which developed their accounting policies based on the Conceptual Framework. The revised Conceptual Framework includes some new concepts, updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts. These amendments had no impact on the standalone financial statements of the Company.

Amendments to CSR requirement

The Ministry of Corporate Affairs (MCA) has amended the Companies (Corporate Social Responsibility Policy) Rules, 2014 through a notification dated January 22, 2021, These amendments have introduced some significant changes that require better understanding to ensure compliance. The amendments, amongst others, mandatorily require utilisation of the unspent amount earmarked for CSR activities, failing which it would be transferred to a fund specified in Schedule VII of the Companies Act, 2013. Resultantly, the Company will have to make a provision towards unspent CSR spent, if any, at the end of the year end, after deducting the provision created for the CSR activity completed, if applicable and as provided.

The amendments also permit a company which spends an amount in excess of the prescribed CSR amount of 2%, to set-off excess amount against the requirement to spend up to immediately succeeding three financial years subject to the fulfilment of certain conditions. As per the guidance issued by the ICAI, in case the Company, decides to adjust excess amount spent against future obligation, then an asset would have to be recognised to the extent of such excess amount spent.

D) Recent pronouncement

On March 24, 2021 the Ministry of Corporate Affairs ("MCA") through a notification, amended Schedule III of the Companies Act, 2013. The amendments revise Division I, II and III of Schedule III and are applicable from April 1, 2021. Key amendments relating to Division II which relate to companies whose financial statements are required to comply with Companies (Indian Accounting Standards) Rules 2015 are:

Balance Sheet:

(a) Lease liabilities should be separately disclosed under the head ''financial liabilities'', duly distinguished as current or non-current.

(b) Certain additional disclosures in the statement of changes in equity such as changes in equity share capital due to prior period errors and restated balances at the beginning of the current reporting period.

(c) Specified format for disclosure of shareholding of promoters.

(d) Specified format for ageing schedule of trade receivables, trade payables, capital work-in-progress and intangible asset under development.

(e) If a company has not used funds for the specific purpose for which it was borrowed from banks and financial institutions, then disclosure of details of where it has been used.

(f) Specific disclosure under ''additional regulatory requirement'' such as compliance with approved schemes of arrangements, compliance with number of layers of companies, title deeds of immovable property not held in name of company, loans and advances to promoters, directors, key managerial personnel (KMP) and related parties, details of benami property held etc.

Statement of profit and loss:

(a) Additional disclosures relating to Corporate Social Responsibility (CSR), undisclosed income and crypto or virtual currency specified under the head ''additional information'' in the notes forming part of the standalone financial statements.

The amendments are extensive and the Company will evaluate the same to give effect to them as required by law.

E) Recent Indian Accounting Standards (Ind AS)

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards. There is no such notification

which would have been applicable from April 1, 2021.

F) The significant accounting policies used in preparation of the financial statements have been discussed in the respective notes.

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Mar 31, 2019

1 Significant Accounting Policies

1.1 Basis of preparation

The Company prepared its Financial statements to comply with the accounting standards specified under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015, as amended. These Financial statements includes Standalone balance Sheet as at 31March 2019, the Standalone statement of Profit and Loss including Other Comprehensive Income and Standalone cash flows and Standalone statement of changes in equity for the year ended 31 March 2019, and a summary of significant accounting policies and other Explanatory information (together hereinafter referred to as “ Standalone Financial Statements” or “Financial statements”).

The Standalone Financial Information for the year ended 31 March 2019 and year ended 31 March 2018 has been prepared on an accrual basis and a historical cost convention, except for the following Financial assets and liabilities which have been measured at fair value:

- Derivative Financial instruments,

- Certain Financial assets and liabilities measured at fair value (refer accounting policy regarding Financial instruments)

The annual Financial statements for the year ended 31 March 2018 were prepared in ‘ in crores, however these Financial statements have been prepared in Rs. in Millions herein.

Accounting policies and methods of computation followed in the Standalone Financial Statements are same as compared with the annual Financial statements for the year ended 31 March 2018, except for adoption of new standard or any pronouncements effective from 1 April 2018.

The Consolidated Financial statements are presented in Indian Rupees (“Rs.”) And all values are rounded to the nearest million upto two decimal places, except otherwise indicated.

Ind AS 115 Revenue from Contracts with Customers, became mandatory for reporting periods beginning on or after 01 April 2018 replaces the existing revenue recognition standards. The Company has applied the modified retrospective approach and accordingly has included the impact of Ind AS 115 applicable to the interim period resented in these Standalone Financial Statements. The Company has adopted following accounting policy for revenue recognition.

1.2 Summary of significant accounting policies

A Investment in subsidiaries 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 the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

The considerations made in determining whether significant influence or joint control are similar to those necessary to determine control over the subsidiaries.

The Company’s investments in its subsidiaries and joint venture is initially recognized at cost.The Company determines

Whether it is necessary to recognise an impairment Loss on its investment in its subsidiary or joint venture. At each reporting date, the Company determines whether there is objective evidence that the investment in the subsidiary or joint venture is impaired. If there is such evidence, the Company calculates the amount of impairment as the difference between the recoverable amount of the subsidiary or joint venture and its carrying value and recognises the impairment Loss in the statement of Standalone Statement of Profit & Loss.

B Joint operation

The Company recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the separate Ind AS Financial statements under the appropriate headings.

The Company being a joint operator has recognised its share of assets, liabilities, income and expenses of these joint operations incurred jointly with other partner, along with its share of income from the sale of the output and any assets, liabilities and expenses that it has incurred in relation to joint operation.

C Current versus non-current classification

The Company presents assets and liabilities in the Standalone balance sheet based on current / non-current Classification.

An asset is treated as current when it is:

- Expected to be realised or intended to be sold or consumed in normal operating cycle;

- held primarily for the purpose of trading;

- Expected to be realised within twelve months after the reporting period; or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at Least twelve months after the reporting period.

ALL other assets are classified as non-current.

A liability is treated as current when:

- It is expected to be settled in normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period; or

- There is no unconditional right to defer the settlement of the liability for at Least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

D Fair value measurement

The Company measures Financial instruments, such as, derivatives, mutual funds etc. At fair value at each Standalone balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

ALL assets and liabilities for which fair value is measured or disclosed in the Standalone Financial Statements are categorised within the fair value hierarchy, described as follows, based on the Lowest level input that is significant to the fair value measurement as a whole:

- level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- level 2 - valuation techniques for which the Lowest level input that is significant to the fair value measurement is directly or indirectly observable

- level 3 - valuation techniques for which the Lowest level input that is significant to the fair value measurement is unobservable

For the purpose of fair value Disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risk of the assets or liability and the level of fair value hierarchy as explained above.

E Property, plant and equipment and capital work-in-progress

Property, plant and equipment are stated at cost, net of accumulated depreciation and impairment Losses, if any. The cost comprises purchase price, borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. ALL other expenses on existing property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Standalone Statement of Profit & Loss for the period in which such expenses are incurred.

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 comprising direct costs, related incidental expenses, other directly attributable costs and borrowing costs.

Gains or Losses arising from derecognition of property, plant and equipments are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Standalone Statement of Profit & Loss when the asset is derecognized.

Depreciation on Property, plant and equipment’s is calculated on pro rata basis on straight-Line method using the management assessed useful Lives of the assets which is in Line with the manner prescribed in Schedule II of the Companies Act, 2013.The useful Life is as follows:

Property, plant and equipment

Assets useful Life (In Years)

Buildings 30-60

Plant &equipments 3-15

Electrical installations 10 Furniture & fixtures 10

Office equipments 3-6

Windmill 22

Vehicles 8-10

The residual values, useful Lives and methods of depreciation of property, plant and equipment are reviewed at each Financial year end and adjusted prospectively.

Leasehold Lands are amortized over the period of Lease.

Lease hold Improvements are depreciated on straight Line basis over their initial agreement period.

F Intangible assets

Intangible assets are stated at cost, net of accumulated amortisation and impairment Losses, if any. The cost comprises purchase price, borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use.

Gains or Losses arising from derecognition of intangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the Statement of Standalone Statement of Profit & Loss when the asset is derecognized.

Amortisation on intangible assets is calculated on pro rata basis on straight-Line method using the useful Lives of the assets and in the manner prescribed in Schedule II of the Companies Act, 2013. The useful Life is as follows:

Assets useful Life (In Years)

Computer software 3

The residual. Values, useful. Lives and methods of depreciation of intangible assets are reviewed at each Financial year end and adjusted prospectively.

G Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the Lease. The arrangement is, or contains, a Lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

A Lease is classified at the inception date as a finance Lease or an operating Lease. A Lease that transfers substantially all the risks and rewards incidental to ownership to the Company is classified as a finance Lease. Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases.

Company as a Lessee

Operating Lease payments are recognised as an expense in the statement of Standalone Statement of Profit & Loss as per the contractual terms over the lease period.

Finance lease are capitalised at the commencement of the lease and depreciated over the period of lease.

H Borrowing costs

Borrowing cost includes interest, exchange differences arising from the foreign currency borrowings and amortization of ancillary costs incurred in connection with the arrangement of borrowings.

Borrowing costs directly attributable to the acquisition, construction or production of an 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 the respective asset. All other borrowing costs are expensed in the period they occur.

I Impairment of non-Financial assets

The carrying amounts of assets are reviewed at each Standalone Balance sheet date, if there is any indication of impairment based on internal / external factors. Impairment Loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset’s net selling price and its value in use.value in use is the presentvalue of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful Life. Net selling price is the amount obtainable from the sale of an asset in an arm’s Length transaction between knowledgeable, willing parties, Less the costs of disposal.

Impairment Losses are recognised in the statement of Standalone Statement of Profit & Loss.

J Non- Current assets held for sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. The Company is committed to the sale expected within one year from the date of classification.

Non-current assets held for sale are measured at the Lower of their carrying amount and the fair value Less costs to sell. Assets and Liabilities classified as held for sale are presented separately in the Standalone balance sheet. Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortised.

K Inventories

Raw materials, traded goods, work in progress, finished goods, packing materials, project material for Long term contracts, scrap materials and stores and spares are valued at Lower of cost and net realizable 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 and spares is determined on a First In-First Out (FIFO) basis and includes all applicable costs incurred in bringing goods to their present location and condition.

Work-in-progress and finished goods are valued at Lower of cost and net realizable value. Cost includes direct materials as aforesaid, direct labour cost and a proportion of manufacturing overheads based on total manufacturing overheads to raw materials consumed.

Traded goods are valued at Lower of cost and net realizable value. Cost includes cost of purchase and other costs incurred in bringing the inventories at their Location and condition. Cost is determined on a weighted average basis.

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

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

The Company enters into purchase of contract of copper and aluminium, in which the amount payable is not fixed on the date of purchase and the same is affected by changes in LME prices in future. Such transactions are entered into to protect the Company against the risk of price movement in the purchased copper and aluminium with respect to realisation of the price of product. Fair value hedges are mainly used to hedge the exposure to change in fair value of commodity price risks. The fair value adjustment remains part of the carrying value of inventory and taken to Standalone Statement of Profit & Loss when the inventory is sold.

L Revenue recognition

Revenue from contracts with customers for sale of goods, construction contracts and its related provision of services. The Company satisfies a performance obligation and recognizes revenue over time, if one of the following criteria is met:

A) The Company’s performance does not create an asset with an alternate use to the Company and the Company has as an enforceable right to payment for performance completed to date.

B) The Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced.

C) The customer simultaneously receives and consumes the benefits provided by the Company’s performance as the Company performs.

For performance Obligations where one of the above conditions are not met, revenue is recognized at the point in time at which the performance obligation is satisfied.

When the Company satisfies a performance obligation by delivering the promised goods or services it creates a contract based asset on the amount of consideration earned by the performance. Where the amount of consideration received from a customer exceeds the amount of revenue recognized this gives rise to a contract liability. In case of multiple performance obligation revenue for each performance obligation is recognized when it is satisfied. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes and duty.

The Company assesses its revenue arrangements against specific criteria to determine if it is acting as principal or agent. Taxes collected on behalf of the government are excluded from revenue.

Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue and costs, if applicable, can be measured reliably

Variable consideration includes volume discounts, price concessions, Liquidity damages, incentives, etc. The Company estimates the variable consideration with respect to above based on an analysis of accumulated historical experience. The Company adjust estimate of revenue at the earlier of when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed.

Sale of goods

Performance obligation in case of Revenue from sale of goods is satisfied at a point in time and is recognized when the performance obligation is satisfied and control as per Ind AS 115 is transferred to the customer. The Company collects GST on behalf of the Government and, therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from revenue. Revenue is disclosed net of discounts, incentives and returns, as applicable.

Revenue from Construction contracts

Performance obligation in case of revenue from Long - term contracts is satisfied over the period of 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 projectcost 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 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.

Warranty

The Company typically provides warranties for General repairs of defects that existed at the time of sale, as required by Law. These assurance-type warranties are accounted for under Ind AS 37 Provisions, Contingent liabilities and Contingent Assets. Refer to the accounting policy on warranty. In certain contracts, the Company provides warranty for an extended period of time and includes rectification of defects that existed at the time of sale and are normally bundled together with the main contract. Such bundled contracts include two performance Obligations because the promises to transfer the goods and services and the provision of service-type warranty are capable of being distinct. Using the relative stand-alone selling price method, a portion of the transaction price is allocated to the service-type warranty and recognised as a liability. Revenue is recognised over the period in which the service-type warranty is provided on a basis appropriate to the nature of the contract and services to be rendered.

Right to return

When a contract provides a customer with a right to return the goods within a specified period, the Company estimates the expected returns using a probability-weighted average amount approach similar to the expected value method under Ind AS 115.

Under Ind AS 115, the consideration received from the customer is variable because the contract allows the customer to return the products. The Company used the expected value method to estimate the goods that will not be returned. For goods expected to be returned, the Company presented a refund liability and an asset for the right to recover products from a customer separately in the balance sheet.

Export incentives

Export incentives under various schemes notified bythe Government have been recognised on the basis of applicable Regulations, and when reasonable assurance to receive such revenue is established.

Interest

For all Financial asset measured either at amortised cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR).

Dividends

Dividend income is recognized when the Company’s right to receive dividend is established by the reporting date,

M Foreign currency translation

The Company’s Standalone Financial Statements are presented in Indian rupee (INR) which is also the Company’s functional currency.

Foreign currency transaction are recorded on initial recognition in the functional currency, using the exchange rate prevailing at the date of transaction.

Measurement of foreign currency item at the Standalone Balance sheet date

Foreign currency monetary assets and liabilities denominated in foreign currency are translated at the exchange rates prevailing on the reporting date.

Exchange differences

Exchange differences arising on settlement or translation of monetary items are recognised as income or expense in the statement of Standalone Statement of Profit & Loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions.

N Employee benefits

I employee benefits

ALL short-term employee benefits such as salaries, incentives, Special awards, medical benefits which are

Expected to be settled wholly within 12 months after the end of the period in which the employee renders the related services which entitles him to avail such benefits are charged to the Standalone Statement of Profit & Loss account.

The Company has revised its leave policy applicable to all employees except for certain categories of employees in Daman factory Location effective 1 April 2019. The Company estimates and provides the liability for such short-term and Long term benefits based on the terms of the policy. The Company treats accumulated Leave expected to be carried forward beyond twelve months, as Long-term employee benefit for measurement purposes. Such long-term compensated advances are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Remeasurement gains/Losses on defined benefit plans are immediately taken to the Statement of Standalone Statement of Profit & Loss and are not deferred.

II Defined contribution plans

Retirement benefit in the form of provident fund and ‘employer-employee Scheme’ are defined contribution schemes.The Company recognises contribution payable to the provident fund and ‘employer employee’scheme as an expenditure, when an employee renders the related service. The Company has no obligation, other than the contribution payable to the funds. The Company’s contributions to defined contribution plans are charged to the statement of Standalone Statement of Profit & Loss as incurred.

III Defined benefit plan

The Company operates a defined benefit gratuity plan for its employees. The costs of providing benefits under this plan is determined on the basis of actuarial valuation at each year-end using the projected unit credit method. Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the Standalone Balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to Standalone Statement of Profit & Loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.

Past service costs are recognised in profit or Loss on the earlier of:

- The date of the plan amendment or curtailment, and

- The date that the Company recognises related restructuring costs iv. Share based payment

Equity settled share based payments to employees and other providing similar services are measured at fair value of the equity instruments at grant date.

The fair value determined at the grant date of the equity-settled share based payment is expensed on a straight Line basis over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimates of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any is, recongised in Statement of Profit and Loss such that the cumulative expenses reflects the revised estimate, with a corresponding adjustment to the shared option outstanding account.

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.

O Income taxes

Tax expenses comprise current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. 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 Standalone Statement of Profit & Loss is recognised outside Standalone Statement of Profit & Loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Deferred tax relating to items recognised outside Standalone Statement of Profit & Loss is recognised outside Standalone Statement of Profit & 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 is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for Financial reporting purposes at the reporting date. Deferred income tax is measured using the tax rates and the tax Laws enacted or substantially enacted at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for deductible temporary differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

At each reporting date, the Company re-assesses unrecognised deferred tax assets. It recognises unrecognized deferred tax asset to the extent that it has become reasonably certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying amount of deferred tax asset to the extent that it is no Longer reasonably certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

Current tax assets and current tax liabilities are offset when there is a Legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis.

Deferred tax assets and deferred tax liabilities are offset when there is a Legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income Levied by the same governing taxation Laws.

P Segment reporting

Identification of segments

The Company’s operating businesses are organized and managed separately according to the nature of products and services with each segment representing a strategic business unit that offers different products & serves different markets.

Inter-segment transfers

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

Allocation of common costs/ Assets & liabilities

Common allocable costs/ assets & liabilities are allocated to each segment are consistently allocated amongst the segments on appropriate basis.

Unallocated items

Unallocated items include General corporate income & expense items which are not allocated to any business segment.

Segment accounting policies

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the Standalone Financial Statements of the Company as a whole.

Q Earnings per share

Basic earnings per share are calculated by dividing the net profit or Loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or Loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all potentially dilutive equity shares.

R Provisions, Contingent liabilities and capital commitments

A provision is recognised when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of Standalone Statement of Profit & Loss. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the Standalone Financial Statements.

Capital Commitments includes the amount of purchase orders (net of advances) issued to parties for completion of assets.

Provisions for warranty-related costs are recognised when the product is sold or service provided to the customer. Initial recognition is based on historical experience. The initial estimate of warranty-related costs is revised annually.

S Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, cheques in hand and short-term deposits with an original maturity of three months or Less, which are subject to an insignificant risk of changes in value.

For the purposes of cash flow statement consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

T Financial instruments

A Financial instrument is any contract that gives rise to a Financial asset of one entity and a Financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

ALL Financial assets are recognised initially at fair value plus, in the case of Financial assets not recorded at fair value through Standalone Statement of Profit & Loss, transaction costs that are attributable to the acquisition of the Financial asset.

Financial assets are classified at the initial recognition as Financial assets measured at fair value or as Financials assets measured at amortised cost.

Subsequent measurement

For purposes of subsequent measurement, Financial assets are classified in two broad categories:

- Financials assets at amortised cost

- Financials assets at fair value

Where assets are measured at fair value, gains and Losses are either recognised entirely in the statement of Standalone Statement of Profit & Loss (i.e., fair value through Standalone Statement of Profit & Loss), or recognised in other comprehensive income (i.e., fair value through other comprehensive income).

A Financials assets carried at amortised cost

A Financials assets that meets the following two conditions is measured at amortised cost (net of Impairment) unless the asset is designated at fair value through Standalone Statement of Profit & Loss under the fair value option.

- Business model test: The objective of the Company’s business model is to hold the Financial assets to collect the contractual cash flow (rather than to sell the instrument prior to its contractual maturity to realise its fair value changes).

- Cash flow characteristics test: The contractual terms of the Financial assets give rise on specified dates to cash flow that are solely payments of principal and interest on the principal amount outstanding.

B Financials assets at fair value through other comprehensive income

Financials assets is subsequently measured at fair value through other comprehensive income if it is held with in a business model whose objective is achieved by both collections contractual cash flows and selling

Financial assets and the contractual terms of the Financial assets give rise on specified dated to cash flows that are solely payments of principal and interest on the principal amount outstanding.

For equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or Loss within equity. Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the statement of Standalone Statement of Profit & Loss

C Financials assets at fair value through profit or loss

A Financial asset which is not classified in any of the above categories is subsequently fair valued through Standalone Statement of Profit & Loss.

Derecognition

A Financial asset (or, where applicable, a part of a Financial asset or part of a Company of similar Financial assets) is primarily derecognised when:

A) The rights to receive cash flows from the asset have expired, or

B) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’arrangement and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and Obligations that the Company has retained.

Impairment of Financial assets

The Company assesses impairment based on expected credit Losses (ECL) modelforthe following:

A) Trade receivables or any contractual right to receive cash or another Financial asset that result from transactions that are within the scope of Ind AS 18.

B) Other Financial assets such as deposits, advances etc.

The Company follows ‘simplified approach’ for recognition of impairment Loss allowance on trade receivables or contract revenue receivables.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ecls at each reporting date, right from its initial recognition.

For recognition of impairment Loss on other Financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment Loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment Loss allowance based on 12-month ECL.

As a practical expedient, the Company uses the provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historical observed default rates over the expected life of the trade receivables and its adjusted forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

ECL impairment Loss allowance (or reversal) during the period is recognized as other expense in the statement of Standalone Statement of Profit & Loss.

Financial liabilities

Initial recognition and measurement

ALL Financial liabilities are recognised initially at fair value and, in the case of Loans and borrowings and payables, net of directly attributable transaction costs.

The Company’s Financial liabilities include trade and other payables, Loans and borrowings including bank overdrafts and derivative Financial instruments.

Subsequent measurement

The measurement offinancial liabilities depends on their classification,as described below:

A Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or Loss include Financial liabilities held for trading and Financial liabilities designated upon initial recognition as at fair value through profit or Loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative Financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.

B Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or Loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ Losses attributable to changes in own credit risk are recognized in OCI. These gains/ Loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or Loss within equity. ALL other changes in fair value of such liability are recognised in the statement of profit or Loss.

C Loans and borrowings

After initial recognition, interest-bearing Loans and borrowings are subsequently measured at amortised cost using the EIR method.

Derecognition

A Financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing Financial liability is replaced by another from the same Lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or Loss.

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a Loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of Loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised Less cumulative amortisation.

U Derivative Financial instruments

The Company enters into derivative contracts with an intention to hedge its foreign exchange price risk and interest risk. Derivative contracts which are Linked to the underlying transactions are recognised in accordance with the contract terms. Such derivative Financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as Financial assets when the fair value is positive and as Financial liabilities when the fair value is negative.

Any gains or Losses arising from changes in the fair value of derivatives are taken directly to Standalone Statement of Profit & Loss.

V Acceptances

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 and other payables.

W Embedded derivatives

An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative host contract - with the effect that some of the cash flows of the combined instrument vary in a way similar to an unconsolidated derivative. An embedded derivative causes some or all of the cash flows that otherwise would be required by the contract to be modified according to a specified variable.The Company enters into purchase contract of copper and aluminum, in which the amount payable is not fixed on the date of purchase, but instead is affected by changes in LME prices in future. Such transactions are entered into to protect against the risk of price movement in the purchased copper and aluminum. Accordingly, such unfixed payables are considered to have an embedded derivative.

Hedge Accounting: Fair Value Hedges

The Company designates the copper and aluminum price risk in such instruments as hedging instruments, with copper and aluminum inventory considered to be the hedged item. The hedged risk is copper and aluminum spot prices. At the inception of a hedge relationship, with effect from 1 April 2016, The Company formally designates and documents the hedge relationship to which the Company wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes the Company’s risk management objective and strategy for undertaking hedge, the hedging/ economic relationship, the hedged item or transaction, the nature of the risk being hedged, hedge ratio and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the Financial reporting periods for which they were designated.

X Business combination under common control

Common control business combination includes transactions such as transfer of subsidiaries or business between entities within a group.

Business combinations involving entities or business under common control are accounted for using the pooling interest method. Under pooling interest method, the assets and liabilities of combining entities are reflected at their carrying amount, the only adjustments that are made are to harmonise accounting policies.

The Financials information in the Standalone Financial Statements in respect of prior period are restated as if the business combination had occurred from the beginning of the preceding period in the Standalone Financial Statements, irrespective of the actual date of the combination. However, if business combination had occurred after that date, the prior period information is restated from that date.

The difference, if any, between the amount recorded as share capital issued plus any Additional consideration in the form of cash or other assets and the amount of share capital of the transferor is transferred to capital reserve and presented separately from other capital reserves with Disclosures of its nature and purposes in the notes.

Y Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.

When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.

When the grant relates to an asset, it’s recognition as income in the statement of Standalone Statement of Profit & Loss is Linked to fulfilment of associated export Obligations.

The Company has chosen to present grants received to income as other income in the statement of Standalone Statement of Profit & Loss.