Notes to Accounts of Ram Ratna Wires Ltd.

Mar 31, 2018

CORPORATE INFORMATION

Ram Ratna Wires Limited (“the Company”) is a public company limited by shares incorporated and domiciled in India with its registered office in Mumbai, Maharashtra. The Company is listed on the Bombay Stock Exchange (BSE).

The Company is a leading manufacturer of winding wires, mainly enamelled copper wires. The Company offers unique product range of all gauges of winding wires including super fine wires. The product portfolio of the Company includes enamelled copper strips, enamelled aluminium wires, submersible winding wires and paper cover round wires. The Company has manufacturing facilities at Silvassa and Dadra & Nagar Haveli (Union Territory).

The financial statements as at 31^st March, 2018 present the financial position of the Company. The financial statements were approved by the Board of Directors and authorised for issue on 29^th May, 2018.

The functional and presentation currency of the Company is Indian Rupees (Rs. ) which is the currency of the primary economic environment in which the Company operates.

1.1 The cost of inventories recognised as an expense during the year is disclosed in Note 23 and 24.

1.2 The cost of inventories written down during the year Rs. NIL (PY Rs. NIL)

1.3 The inventories are hypothecated as a security as disclosed in Note 13

2.1 The Company has arranged channel financing facility for its customers from bank against which a sum of Rs. 4,618.17 lakhs (PY 31.03.2017 Rs. 2,110.23 lakhs and PY 31.03.2016 Rs. 1,576.57 lakhs) has been utilised as on the date of balance sheet and correspondingly the trade receivable stand reduced by the said amount. Also refer Note 29.2.

3.1 Terms/ rights attached to Equity Shares

The Company has only one class of shares referred to as equity shares having face value of Rs. 5/- per share. Each holder of equity shares is entitled to one vote per share. The Dividend proposed by Board of Directors is subject to approval of the shareholders in the ensuring Annual General Meeting, except in case of interim dividend.

As per the Companies Act, 2013 the holders of equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts in the event of the liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

3.2 The Board of Directors of the Company have proposed a dividend of Rs. 1.25/- per equity share of face value of Rs. 5/- each for the year ending 31^st March, 2018 (PY Rs. 1.25/- per equity share) subject to approval of members at the forthcoming Annual General Meeting.

4.1 Security Premium

Security premium is used to record the premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

4.2 General Reserve

General Reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. Under the Companies Act, 2013 there is no mandatory requirement for transfer of a specific percentage of net profit to general reserve which was required under the erstwhile Companies Act, 1956.

4.3 Equity Instruments through Other Comprehensive Income

This represents the cumulative gains/(losses) arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, it will be reclassified to retained earnings when such assets are disposed off.

4.4 The Term loans are secured by:

a) First Charge on the assets funded out of the term loans.

b) First pari passu charge on immovable assets of the Company located at Survey No. 212/2 and Survey no 316 at Dadra and Nagar Haveli, Survey No. 16/1 at Village Sayli, Silvassa and Survey No. 205, 206, 207/1, 207/2, 193/1, 193/2 and 327/2/P2 at Waghodia, Dist Vadodara (excluding immovable assets funded under said term loans).

c) First pari passu charge on both present and future movable assets (except vehicles of the Company and movable assets funded under the said term loans and have first charge).

d) Second pari passu charge on entire current assets of the Company both present and future.

e) Personal guarantees of Managing Director and Joint Managing Director of the Company and their relative.

4.5 The working capital loans are secured by:

a) First pari passu charge on entire current assets of the Company both present and future.

b) Second pari passu charge on immovable assets of the Company located at Survey No. 212/2 and Survey no 316 at Dadra and Nagar Haveli, Survey No. 16/1 at Village Sayli, Silvassa and Survey No. 205, 206, 207/1, 207/2, 193/1, 193/2 and 327/2/P2 at Waghodia, Dist Vadodara (except immovable assets funded under said term loans) and both present and future movable assets (except vehicles) of the Company.

c) Personal guarantees of Managing Director and Joint Managing Director of the Company and their relative.

4.6 Pending the further sanction and execution of necessary documents the charge is not created and filled with Ministry of Corporate Affairs in respect of secured loans as on date.

4.7 Personal guarantees have been given by the Managing Director and Joint Managing Director of the Company for unsecured working capital loans from banks and financial institution.

4.8 Vehicle loans are secured by way of hypothecation of specific vehicle.

4.9 Other Unsecured Loans carry interest rates from 10% to 11% with different tenures.

4.10 Default in terms of repayment of Principal and Interest - NIL

5.1 Grants relating to property, plant and equipment relate to duty saved on import of capital goods and spares under the EPCG scheme. Under such scheme, the Company is committed to export prescribed times of the duty saved on import of capital goods over a specified period of time. In case such commitments are not met, the Company would be required to pay the duty saved along with interest to the regulatory authorities. Such grants are recognised in the statement of profit and loss based on fulfillment of related export obligations.

*There is no amount due and outstanding to be transferred to the Investor Education & Protection Fund (IEPF) as at 31^st March, 2018. Unclaimed Dividends, shall be transferred to IEPF as and when they become due.

** Includes amount of Rs. 164.36 lakhs (PY 31.03.2017 Rs. 119.24 lakhs and PY 31.03.2016 Rs. 35.29 lakhs) payable to a Director on account of Commission on profit.

6.1 Goods and Service Tax (GST) has been introduced with effect from 1^st July, 2017 and Central Excise, Value Added Tax (VAT) etc. have been subsumed into GST In accordance with IND AS-18 on Revenue and Schedule III of the Companies Act, 2013, Excise duties are part of Revenue whereas levies like GST, VAT etc. are not part of Revenue. Revenue from Operations for the period upto 30^th June, 2017 include excise duty. The following table gives the information regarding Revenue from Operations excluding excise duty.

7.1 The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely to be upheld in the appellate process and accordingly no provision has been made in the financial statements for the tax demands raised. The management believes that the ultimate outcome of these proceedings will not have material adverse effect on the Company’s financial position and results of operations.

7.2 The Company has arranged Channel Finance facility for its customers from bank against which sum of Rs. 4,618.17 lakhs (PY 31.03.2017 Rs. 2,110.23 lakhs and PY 31.03.2016 Rs. 1,576.57 lakhs) has been utilised as on the date of balance sheet and correspondingly, the trade receivables stand reduced by the said amount as there is no recourse on the Company.

8.1 Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

Proposed Dividend :

The Board of Directors at its meeting held on 29^th May, 2018 have recommended a payment of dividend of Rs. 1.25/- (Rupee One and paise Twenty five paise) per equity share of face value of Rs. 5/- each for the financial year ended 31^st March, 2018. The same amounts to Rs. 331.53 lakhs including dividend distribution tax of Rs. 56.53 lakhs. The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability.

Note 9 : Expenditure on Corporate Social Responsibility initiatives

a) Gross amount required to be spent by the Company during the year is Rs. 41.60 lakhs

b) Amount spent during the year on :

Note 10 : Disclosure in respect of Related Parties pursuant to Ind AS- 24 “ Related Party Disclosures”

List of Related Parties with whom transactions have taken place - (as certified by Management)

a) Key Management Personnel

Shri Tribhuvanprasad Kabra - Managing Director

Shri Mahendrakumar Kabra - Joint Managing Director

Shri Hemant Kabra - CFO & Executive Director Non Executive Directors

Shri Satyanarayan Loya Shri Sandeep Jhanwar

Shri Mukund Chitale Shri R. Kannan

Dr. Ajai Singh Shri Prashant Deshpande

Smt. Kirtidevi Kabra Shri H. S. Upendra Kamath

b) Close Family Members of Key Management Personnel

Shri Rameshwarlal Kabra - Father of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Smt. Ratnidevi Kabra - Mother of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Shri Shreegopal Kabra - Brother of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra.

Smt. Umadevi Kabra - Wife of Shri Tribhuvanprasad Kabra

Shri Mahhesh Kabra - Son of Shri Tribhuvanprasad Kabra

Shri Sumeet Kabra - Son of Shri Mahendrakumar Kabra

c) Entities over which Key Management Personnel and their close family members are able to exercise significant influence

MEW Electricals Ltd. R R Kabel Ltd.

Ram Ratna International Ram Ratna Research & Holdings Pvt. Ltd.

Kabel Buildcon Solutions Pvt. Ltd. Shreegopal Kabra (HUF)

Ram Ratna Electricals Ltd. Rameshwarlal Kabra (HUF)

TMG Global Fzco.

d) Subsidiary & Joint Arrangement

Global Copper Pvt. Ltd. - Subsidiary

RR-Imperial Electricals Ltd. (Bangladesh) - Jointly Controlled Entity

11.1 Includes provision of Rs. 0.92 lakhs (PY Rs. 0.58 lakhs) post employment benefits and Rs. 1.82 lakhs (PY Rs. 3.37 lakhs) for leave encashment.

11.2 Personal guarantees have been given by the Managing Director and Joint Managing Director of the Company for the secured borrowings by the Company to the tune of Rs. 189.20 lakhs (PY 31.03.2017 Rs. 182.60 lakhs and PY 31.03.2016 Rs. 126.55 lakhs).

11.3 Personal guarantees have been given by the Managing Director and Joint Managing Director of the Company and there relative for the unsecured borrowings by the Company to the tune of Rs. 57.50 lakhs (PY 31.03.2017 Rs. 57.50 lakhs and PY 31.03.2016 Rs. 57.50 lakhs).

11.4 The Company has donated Rs. 51.00 lakhs (PY Nil) to the trusts in which some of the directors are trustee.

Note : 12 Exposure in Foreign Currency

The Company uses forward contracts to mitigate the risks associated with foreign currency fluctuations. The Company does not enter into any forward contracts which are intended for trading or speculative purposes.

Note 13: Employee Benefits

A) Defined Benefit Plan- Gratuity (Funded)

The employees’ Gratuity Fund Scheme, is a defined benefit plan. The scheme is maintained and administered by Life Insurance Corporation of India (LIC) to which the Company makes periodical contributions. Under the said scheme, every employee who has completed at least five years of service usually gets gratuity on departure @ 15 days of last drawn salary for each completed year of service. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method.

The following table summarises the components of net benefit expense recognised in the statement of profit & loss and the funded status and amounts recognised in the balance sheet :

1 The average duration of the defined benefit plan obligation at the end of the reporting period is 9.60 years (PY 10.46 years)

2 The Company expects to contribute Rs. 40 lakhs (PY Rs. 63.63 lakhs) to the plan during the next financial year.

3 The estimates of rate of escalation in salaries considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

4 Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

5 The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis the present value of defined benefit obligation has been calculated using the projected unit credit method.

B) Defined Contribution Plan - Provident fund

The Company makes its contribution alongwith the share of employees’ contribution deducted from salary on monthly basis to Employees’ Provident Fund administered by the Central Government. The Company’s Contribution is charged to Statement of Profit & Loss. The Company has no obligation for any further contribution in case of any shortfall. The details of contribution are as under :-

C) Other Employee benefits - Leave Encashment

The employees are entitled for the compensation in respect of unavailed leave as per the policy of the Company. The liability towards compensated absences is recognised based on actuarial valuation carried out using Projected Unit Credit method.

# Investment is not held for trading. Upon the application of Ind AS 109 - Financial Instruments, the Company has chosen to measure said investment in equity instrument at FVTOCI irrevocably as the management believes that presenting fair value gains and losses relating to the said investment in the statement of profit and loss may not be indicative of the performance of the Company.

B) Fair Value Measurements

(i) All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy that categorizes into three levels, described as follows:

Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 — inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 — inputs that are unobservable for the asset or liability.

(ii) The following tables provide the fair value measurement hierarchy of the Company’s financial assets and liabilities:

The carrying amounts of financial assets (other than security deposits and loan to employees) and financial liabilities measured at amortised cost in the financial statements are reasonable approximation of their fair values since the Company does not anticipate that the carrying amount would be significantly different from the value that would eventually be received or settled.

Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

There have been no transfers between Level 1 and Level 2 for the years ended 31^st March, 2018, 31^st March, 2017 and 1^st April, 2016.

C) Financial Risk Management- Objectives and Policies

The Company is exposed to: (a) Market Risks comprising of Interest Rate Risk, Currency Rate Risk, Commodity Price Risk and Equity Price Risk (b) Credit Risk comprising of trade receivable risk and financial instrument risk and (c) Liquidity Risk. The Company has well placed Risk Management Policy (RMP). The policy provide broad guidelines to identify the risk arising from these factors and provide guidelines to the team for its mitigation or at-least minimize its effect on income / expense on the Company is optimized. Team involved in RMP meets frequently to discuss the level of risk they foresee based on the conditions persisting.

The Company’s exposure to Market Risk, Credit Risk and Liquidity Risk have been summarized below:

Market Risk Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on short-term and long-term floating rate interest bearing liabilities. The Company’s policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion of fixed and floating rate debt is determined by prevailing interest rates. These exposures are reviewed by the management on a periodic basis.

(Calculated based on risk exposure outstanding as of date and assuming that all other variables, in particular foreign currency rates, remain constant).

Foreign Currency Risk

The Company is exposed to fluctuations in foreign currency exchange rates where transaction references more than one currency and/or where assets/liabilities are denominated in a currency other than the functional currency of the Company.

Exposures on foreign currency are managed through a hedging policy, which is reviewed periodically by the management. The Company usually enters into forward exchange contracts progressively based on their maturity to hedge the effects of movements in foreign currency exchange rates individually on assets and liabilities. The sources of foreign exchange risk for the Company are trade receivables, trade payables for imported materials & capital goods as well as foreign currency denominated borrowings. The policy of the Company is to determine on a regular basis what portion of the foreign exchange risk are to be hedged through forward exchange contracts.

The exposure of the Company’s foreign currency risk based on unhedged exposure as at the reporting date is as follows:

Commodity Price Risk

The Company is exposed to the movement of copper and aluminium prices on the London Metal Exchange (LME). Any increase or decline in the prices of these commodities will have an impact on the profitability of the Company. As a general policy, the Company aims to purchase these commodities at prevailing market prices and also sell the products at price adjusted for prevailing market prices. The Company substantially ensures sale of products with simultaneous purchase of these commodities on back-to back basis ensuring no or minimum price risk for the Company.

Equity Price Risk

Equity price risk relates to change in fair value of investments in the equity instruments measured at fair value through OCI. As at 31^st March, 2018 the carrying value of such equity instruments recognised at fair value throgh OCI amounts to Rs. 6,214.00 lakhs (PY 31.03.2017 Rs. 3,853.20 lakhs and PY 31.03.2016 Rs. 1,762.80 lakhs).

A sensitivity analysis demonstrating the impact of change in the carrying value of investment in equity instrument as at reporting date is given below:

Liquidity Risk

Liquidity risk refers to the risk that the Company encounter difficulty in raising fund to meet its financial commitments. The objective of liquidity risk management is to maintain the liquidity and to ensure that funds are available for short operational needs and to fund Company’s expansion projects. The Company has availed credit facility from the banks & financial institutions to meet its financial commitment in timely and cost effective manner.

The Company remains committed to maintaining a healthy liquidity and gearing ratio and strengthening the balance sheet. The maturity profile of the Company’s financial liabilities based on the remaining period from the date of balance sheet to the contractual maturity date is given in the table below.

Credit Risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk for trade receivables and financial guarantees to dealers, derivative financial instruments and other financial assets.

The Company assess the counter party before entering into transactions and wherever necessary supplies are made against advance payment. The Company on continuous basis monitor the credit limit of the counter parties to mitigate or minimise the credit risk. The credit risk for the financial guarantees issued by the Company to bank for credit facilities availed by Company’s dealers from bank is minimum as those parties have long vintage with the Company and they are also subject to credit risk assessment by bank on periodical basis. The credit risk on export receivables are limited as almost all export sales are made to parties having a long vintage with the Company and new parties are subject to necessary due diligence.

For trade receivables, as a practical expedient, the Company computes credit loss allowance based on expected credit loss method. The movement in expected credit loss allowance on trade receivable is as under:

Note 14: Segment Information

a) In accordance with Ind AS 108 the Company operates only in one segment and there is no separate reportable segment.

b) Revenue from external Customers:

c) All non current assets of the Company are located in India.

d) There is no transaction with single external customer which amounts to 10% or more of the Company’s revenue.

Note 15: Details of Investments made & Guarantee given covered U/s 186(4) of the Companies Act, 2013

a) Details of Investments made are given in Note 3.

b) Financial guarantee has been given by the Company in respect of credit facility availed by the Company’s dealers under channel financing arrangements (Note 29.2).

Note 16 : Operating Lease:-

a) Company has taken premises on an Operating Lease Basis for the period of 3-5 years. The lease rentals are payable on monthly basis.

b) Future minimum lease rents payable under non- cancellable lease arrangement are as under:

c) Lease payment recognised in the Statement of Profit & Loss in respect of operating lease is Rs. 26.45 lakhs (PY Rs. 24.13 lakhs.)

Note 17: First time adoption of Ind AS:-

These are the first Financial Statements of the Company prepared in accordance with Ind AS.

The Accounting Policies set out in Note 1 have been applied in preparing the Financial Statements for the year ended 31^st March, 2018, the comparative information presented in these Financial Statements for the year ended 31^st March, 2017 and in the preparation of an opening Ind AS Balance Sheet as at 1^st April, 2016 (the date of transition). In preparing opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in Financial Statements prepared in accordance with the Accounting Standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (Previous GAAP). An explanation of how the transition from Previous GAAP to Ind AS has affected the financial position, financial performance and cash flows of the Company are set out in the following tables and notes:

A) Exemptions and exceptions availed

In preparing these Ind AS Financial Statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101 “First-time Adoption of Indian Accounting Standards” (Ind AS 101), as explained below. The resulting differences between the carrying values of the assets and liabilities in the Financial Statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Company in restating its Previous GAAP Financial Statements, including the Balance Sheet as at 1^st April, 2016 and the Financial Statements for the year ended 31^st March, 2017.

A.1) Ind AS optional exemptions

Set out below are the applicable Ind AS 101 optional exemptions applied in the transition from Previous GAAP to Ind AS:-

i) Deemed Cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment and intangible assets as recognised in the Financial Statements as at the date of transition to Ind AS, measured under Previous GAAP and use that as its deemed cost as at the date of transition. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their Previous GAAP carrying value in their Financial Statements.

ii) Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity (other than investment in Joint Venture).

iii) Investment in Joint Venture (Jointly Controlled Entity)

Ind AS 101 permits a first-time adopter to measure it’s investment at the date of transition at cost determined in accordance with Ind AS 27 or deemed cost. The deemed cost of such investment shall be it’s fair value at the date of transition to Ind AS or carrying amount at that date as per Previous GAAP The Company has elected to measure its investment in Jointly Controlled Entity under Previous GAAP carrying amount as its deemed cost on the date of transition.

iv) Long-term foreign currency monetary items

Exchange differences arising on translation of long term foreign currency monetary items recognised in the Previous GAAP financial statements in respect of which the Company has elected to recognise such exchange differences as a part of cost of assets as allowed under Ind AS 101. Such differences are added/deducted to/ from the cost of assets and are recognised in the statement of profit and loss on a systematic basis as depreciation over the balance life of the assets.

A.2) Ind AS mandatory exceptions

The Company has applied the following mandatory exceptions from full retrospective application of Ind AS as required under Ind AS 101:

i) Estimates

Estimates in accordance with Ind AS at the transition date will be consistent with estimates made for the same date in accordance with Previous GAAP (after adjustments to reflect any difference in Accounting Policies) unless there is objective evidence that those estimates were in error. On assessment of estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise such estimates under Ind AS, as there is no objective evidence of an error in those estimates.

ii) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of facts and circumstances which exist on the date of transition to Ind AS. Accordingly, the Company has applied the requirement prospectively.

B) Reconciliation between Previous GAAP and IND AS

The following statements of reconciliation provide the explanation and qualification of the differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101.

(i) Reconciliation of total equity as at 1^st April, 2016 and 31^st March, 2017

(ii) Reconciliation of total comprehensive income for the year ended 31^st March, 2017

(iii) Reconciliation of cash flow statement for the year ended 31^st March, 2017

C) Footnotes to Reconciliation between Previous GAAP and IND AS

i) Fair Valuation of Non- Current Investment

In the financial statements prepared under Previous GAAP non- current investment of the Company was measured at cost less provision for other than temporary decline in the value of such investment. In accordance with Ind AS 109 “Financial Instruments”, investment in equity instruments (other than in joint venture) has been recognised at fair value at each reporting date through an irrevocable election under other comprehensive income.

On the date of transition to Ind AS, the difference between the fair value of such non-current investments as per Ind AS and its corresponding carrying amount as per financial statements prepared under Previous GAAP has resulted in an increase in the carrying amount of this investment by Rs. 1,722.80 lakhs which has been recognised directly in retained earnings (Equity). Deferred tax liability (net) amounting to Rs. 375.35 lakhs has been recognised directly in retained earnings (equity) on such fair valuation gain.

As at 31^st March, 2017, the difference between the fair value of such non-current investment as per Ind AS and its corresponding carrying amount as per financial statements prepared under Previous GAAP has resulted in an increase in the carrying amount of this investment by Rs. 3,813.20 lakhs. On such fair valuation, gain amounting to Rs. 2,090.40 lakhs and deferred tax liability (net) of Rs. 482.29 lakhs has been recognised in OCI.

ii) Fair valuation of Non - Current Financial Assets

Loan to employees and security deposits are financial assets, which need to be measured at amortised cost. Under the Previous GAAP same were measured at transaction amount. In accordance with Ind AS 109 “Financial Instruments”, the Company has measured the same retrospectively at amortised cost on the date of transition.

Accordingly, the carrying values of loan to employees and security deposits have undergone changed and corresponding impacts have been given in the employee benefits expense, rent expense and other income.

iii) Fair valuation of derivatives

Premium or discount arising on forward exchange contracts entered into by the Company against underline liabilities/ assets under the Previous GAAP is accounted by amortising premium or discount at the inception of contract over the terms of contract. Premium or discount is measured by the difference between the exchange rate at the date of inception of forward exchange contract and the forward rate. In accordance with Ind AS 109 “Financial Instrument” the Company has accounted those derivatives contracts at its fair value and any gain or loss is charged to statement of profit and loss account and net amount is reports as forward receivable/ payable under current financial assets/ liabilities.

iv) Fair Valuation of Financial Liabilities

In accordance with Ind As 109 “ Financial Instruments” transaction cost of long term borrowing to be recognised in the statement of profit and loss using effective interest rate. Under the GAAP same was amortized upfront and charged to profit or loss for the period.

v) Deferred tax

Under Previous GAAP deferred taxes were accounted for using the income statement approach which focuses on differences between taxable profit and accounting profit for the period. Ind AS requires entities to account for deferred taxes using the Balance Sheet approach which focuses on temporary differences between the carrying amount of an asset or liability in the Balance Sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred taxes on temporary differences which were not required to be recorded under Previous GAAP

In addition, the various transitional adjustments have led to deferred tax implications which the Company has accounted for. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or other comprehensive income on the date of transition.

vi) Government Grant

In accordance with Ind AS 20 “Government Grant” duty saved on import of capital goods and spares under the EPCG scheme has been treated as a Government grant. The benefit has been grossed up with the cost of the related assets/spares and has been recognised as a deferred income. Such deferred income is released to the statement of profit and loss based on fulfillment of related export obligations. The duty benefit grossed up to the cost of the asset is depreciated based on its useful economic life and duty benefit grossed up to the cost of the spares are charged to the statement of profit and loss as and when the spares are consumed. Under Previous GAAP duty saved in respect of capital goods/spares is adjusted to the value of capital asset/spares. Total amount of duty saved on import of capital goods and spares during the year ended 31^st March, 2017 is Rs. 30.50 lakhs which has been adjusted to the cost of capital goods and spares and accordingly the value of property plant & equipment has increased by (net of depreciation of Rs. 0.47 lakhs) Rs. 29.27 lakhs and cost of consumption of spares has increased by Rs. 0.76 lakhs.

Deferred income as on the date of transition is Rs. 42.23 lakhs recognized by adjusting the retained earnings and not adjusted to the carrying value of property, plant and equipment, since the company has adopted exemption to consider the Previous GAAP carrying amount of property, plant and equipment at deemed cost under Para D7AA of Ind AS 101.

vii) Revenue

In the financial statements prepared under Previous GAAP, revenue from sale of products was presented net of excise duty. However, under Ind AS, revenue from sale of products includes excise duty. Excise duty expense amounting to Rs. 8,936.25 lakhs is presented separately in the statement of profit and loss for the year ended 31^st March, 2017.

In the financial statements prepared under Previous GAAP no income was recognised for financial guarantee issued without any consideration for credit facility availed by the dealers of the Company from bank under Channel Financing Arrangement but was reported as a contingent liability. Under, Ind As 109 “ Financial Instruments” same is required to be initially recognised at its fair value (guarantee commission) and accordingly notional guarantee commission income of Rs. 20.40 lakhs is recognised under other operating revenues for the year ended 31^st March, 2017 and correspondingly the said amount is charged to profit and loss and are reduced from revenue from sale of products.

In the financial statements prepared under Previous GAAP cash discount and sales promotional expenses were shown as a part of other expenses. However, under Ind AS, such discount and sales promotional expenses amounting to Rs. 35.05 lakhs for the year ended 31^st March, 2017, are reduced from revenue from sale of products.

Amount of Rs. 20.52 lakhs has been recognised as an income under revenue from operations for the year ended 31^st March, 2017 on fulfillment of export obligation from the deferred income for Government grant recognised as on the date of transition.

viii) Employee Benefits

In the financial statements prepared under Previous GAAP remeasurement benefit of defined benefit plan (gratuity), arising primarily due to change in actuarial assumptions was recognised as employee benefits expense in the statement of profit and loss. Under Ind AS, such remeasurement benefit relating to defined benefit plan is recognised in OCI as per the requirements of Ind AS 19 “Employee benefits”. Consequently, the related tax effect of the same has also been recognised in the statement of profit and loss.

Fair value adjustment for interest free loan to employees has been carried out in accordance with Ind AS 109 “Financial Instruments” and same has been recognised at amortised cost under employee benefits expense.

For the year ended 31^st March, 2017, remeasurement of gratuity liability resulted in a net benefit of Rs. 21.86 lakhs which has now been reduced from employee benefits expense in the statement of profit and loss and recognised separately in OCI. Employee benefits expense has been increased by Rs. 0.46 lakhs on account of fair value adjustment for interest free loan to employees. These have resulted in net decrease in employee benefits expense by Rs. 21.40 lakhs and increase in OCI by Rs. 21.86 lakhs for the year ended 31^st March, 2017 and corresponding tax effects thereon have been recognised in OCI and in the statement of profit & loss.

ix) Retained earnings

Retained earnings have been adjusted consequent to the above Ind AS transition adjustments.

x) Other comprehensive income

Under Ind AS, all items of income and expenses recognised in a period are to be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expenses which are not recognised in profit or loss, but are shown in the statement of profit and loss as Other Comprehensive Income include remeasurement of defined benefit plans and fair value gain/(loss) on equity instruments designated as FVOCI. The concept of Other Comprehensive Income did not exist under Previous GAAP

D) Consumable Stores and Spares

Under Previous GAAP the Company was charging consumable stores and spares to statement of profit & loss in the year of purchase however, from the date of transition the Company has decided to charge the same to statement of profit and loss in the year of consumption. Accordingly, the inventory of consumable, stores and spare of Rs. 9.82 lakhs has been recognised on the date of transition and Rs. 14.59 lakhs as on 31^st March, 2017 with corresponding adjustments to retained earnings, other expenses and taxes.

E) Previous GAAP figures have been reclassified/regrouped wherever necessary to conform with the financial statements prepared under Ind AS.

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Mar 31, 2016

1. Terms/ rights attached to Equity Shares

The Company has only one class of shares referred to as equity shares having face value of Rs. 5/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to approval of the Shareholders in the ensuring Annual General Meeting, except in the case of interim dividend.

As per the Companies Act, 2013 the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the event of liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the Shareholders.

2. For details of Basic and Diluted Earnings Per Share (EPS) (Note 37)

3. Excise Duty

Excise duty is accounted as and when the goods are cleared. Accordingly, excise duty amounting to Rs. 86.77 Lacs has not been accounted and considered for valuation of finished stocks. The said practice has no effect on the Statement of Profit and Loss for the year.

4. Borrowing in Foreign Currency

The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items as per Accounting Standard 11 (AS-11) specified under section 133 of the Companies Act, 2013, which allows foreign exchange difference on long term monetary items to be capitalized to the extent they related to acquisition of depreciable assets and in other cases to amortize over the period of the monetary assets / liabilities or the period up to 31^st March, 2020, whichever is earlier.

Exchange Difference loss of Rs. 4.86 Lacs (P.Y.Rs. 5.80 Lacs) related to acquisition of Depreciable Capital Assets has been adjusted to respective Fixed Assets.

Had this change not been effected, the profit before tax for the year would have been lower by Rs. 4.73 Lacs (net of depreciation) (P.Y. Rs. 5.74 Lacs). Fixed Assets would have been lower by Rs. 4.73 Lacs (P.Y. Rs. 5.74 Lacs) and consequently the Surplus in Statement of Profit & Loss before tax would have been lower by Rs. 4.73 Lacs (P.Y. Rs. 5.74 Lacs).

5. Disclosure in respect of Related Parties pursuant to Accounting Standard 18 " Related Party Disclosures"

List of Related Parties with whom transactions have taken place - (as certified by Management)

6. In view of stay granted by Kerala & Ernakulam High Court on 27-01-2016 in writ petition no. 3025/2016(c) which is followed by number of other High Courts challenging the retrospective effect of implementation of the payment of Bonus Act, 2015, no provision for the increased liability approximately of Rs. 42 Lacs for the F.Y. 2014-15 been made.

7. Details of Investments made & Guarantee given covered U/s 186(4) of the Companies Act, 2013

a) Details of Investments made are given in Note 13.

b) Corporate Guarantees has been given by the Company in respect of Loan taken by the Company''s dealers under channel financing arrangements refer Note 28 (i).

8. Previous year’s figures

The Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2015

1 Company Overview

The Company is engaged in the business of manufacturing engineering goods such as Enamelled Copper Wire & Strips, Enamelled Alluminium Wire, Submersible Winding Wire, Fibre Glass Covered Copper Wire & Strips, Paper Covered Copper Wire & Strips.

1.1 Terms/ rights attached to Equity Shares

The Company has only one class of shares referred to as equity shares having face value of ' 5/- per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by Board of Directors is subject to approval of the Shareholders in the ensuring Annual General Meeting, except in the case of interim dividend.

As per the Companies Act, 2013 the holders of equity shares will be entitled to receive remaining assets of the Company, after the distribution of all preferential amounts in the event of the liquidation of the Company. The distribution will be in proportion to the number of equity shares held by the Shareholders.

1.2 Term Loan is secured by way of first pari passu charge with the consortium lenders over the existing immovable properties (excluding immovable property at Rakholi, Silvassa) and the present and future movable fixed assets of the Company and pari passu second charge with the consortium lenders over the present and future current assets of the Company and further secured by personal guarantees of some Directors and a relative of Directors.

1.3 Interest on External Commercial Borrowing ( ECB ) is hedged through Interest rate swap @ 5.51%.

1.4 Vehicle Loans are secured by way of hypothecation of specific vehicle.

1.5 Public Deposits taken by the Company are under the provisions of the Companies Act, 1956 and rules made there under. Fixed deposits carry interest rates from 9.50% to 11% depending upon their tenure.

1.6 Other Unsecured Loans carry interest rates from 11% to 13% with tenure more than two years.

2.1 Secured Working Capital Loans are secured by first pari passu charge with the consortium lenders over the entire current assets, present and future, such as stock, book debts, other receivables, etc. and pari passu second charge with the consortium lenders over the existing immovable properties (excluding immovable property at Rakholi, Silvassa) and the present and future movable fixed assets of the Company and further secured by personal guarantees of some Directors and a relative of Directors.

2.2 Personal guarantees have been given by some of the Directors for unsecured loans.

3.1 For relevant Accounting Policies refer Notes 2.3, 2.4, 2.8 & 2.13

3.2 Net Exchange Difference of Rs. 0.98 lacs ( Previous Year Rs. 4.02 lacs) on Factory Buildings and Rs. 2.62 lacs (Previous Year Rs. 5.45 lacs) on Plant & Machineries is capitalized.

3.3 Interest of Rs. 5.06 lacs ( Previous Year Rs. 12.24 lacs) on Plant & Machineries is capitalised.

3.4 Amount of depreciation adjusted to retained profit is being carrying amount of assets after retaining residual value, whose revised useful life as per schedule II of the Companies Act, 2013 has expired as on 1st April, 2014.

4.1 Rental Deposits include Rs. 28.00 lacs (P.Y. Rs. 45.50 lacs) due from related parties and Rs. 3.50 lacs (P.Y. Rs. 3.50 lacs) due from a Private Company in which one of the Director is interested (Note 34)

5 Contingent Liabilities and Commitments (Rs. in Lacs)

Particulars 2014-15 2013-14

A. Contingent Liabilities

Bank Guarantees (Suppliers) 282.00 852.00

Bank Guarantees (Job work) 50.00 50.00

Bank Guarantees (Channel Financing) 696.24 -

Bill Discounting 388.84 244.32

Income Tax Demand 51.52 76.80

Excise 666.00 666.00

Service Tax 8.95 8.95

B. Commitments

Estimated amount of contracts remaining to be executed and not provided for

i) On Capital Account (Net of advance) 368.47 75.77

ii) Corporate Social Responsibility 5.25 -

Estimated amount of Investment in Joint Venture remaining to be made - US$ 0.23 Lacs (P.Y. US$ 0.76 Lacs) 14.16 45.45

6 Excise Duty

Excise duty is accounted as and when the goods are cleared. Accordingly, excise duty amounting to Rs. 47.85 lacs has not been accounted and considered for valuation of finished stocks. The said practice has no effect on the Statement of Profit and Loss for the year.

7 Borrowing in Foreign Currency

The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules, 2011 relating to Accounting Standard 11 (AS-11) notified by the Government of India on 29th December, 2011, under the Companies Act, 1956 read with Section 133 of the Companies Act, 2013 and rule 7 of the Companies (Accounts) Rules, 2014, which allows foreign exchange difference on long term monetary items to be capitalized to the extent they related to acquisition of depreciable assets and in other cases to amortize over the period of the monetary assets / liabilities or the period up to 31st March, 2020, whichever is earlier.

Exchange Difference loss of Rs. 5.80 Lacs (P.Y.Rs. 23.73 Lacs) related to acquisition of Depreciable Capital Assets has been adjusted to respective Fixed Assets.

Had this change not been effected, the profit for the year would have been lower by Rs. 5.74 Lacs (net of depreciation) (P.Y. Rs. 23.52 Lacs). Fixed Assets would have been lower by Rs. 5.74 Lacs (P.Y. Rs. 23.52 Lacs) and consequently the Surplus in Statement of Profit & Loss would have been lower by Rs. 5.74 Lacs (P.Y. Rs. 23.52 Lacs).

8 Financial and Derivatives Contract

The Company uses forward contracts to mitigate the risks associated with foreign currency fluctuations. The Company does not enter into any forward contracts which are intended for trading or speculative purposes.

9 The useful life of fixed assets were revised in accordance with Schedule II to the Companies Act, 2013. Accordingly the depreciation charge for the year ended March 31, 2015 is higher by Rs. 100.35 Lacs and further, in respect of the assets, whose revised useful life had expired prior to April 1,2014, an amount of Rs. 23.12 Lacs (net of deferred tax) has been adjusted from the retained earnings.

10 Details of Investments made & Guarantee given covered U/s 186(4) of the Companies Act, 2013

a) Details of Investments made are given in Note 13.

b) Corporate Guarantees given by the Company in respect of Loan taken by the Company's dealers under channel financing refer Note 28.

11 Previous year's figures

The Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2014

1 Company Overview

The Company is engaged in the business of manufacturing engineering goods such as Enamelled Copper Wire & Strips, Enamelled Alluminium Wire, Submersible Winding Wire, Fibre Glass Covered Copper Wire & Strips, Paper Covered Copper Wire & Strips.

2 Contingent Liabilities and Commitments (Rs. in Lacs) Particulars 2013-14 2012-13

A. Contingent Liabilities

Bank Guarantees 902.00 1,165.00

Bill Discounting 244.32 403.64

Income Tax Demand 76.80 72.49

Excise 666.00 670.40

Service Tax 8.95 21.43

B. Commitments

Estimated amount of contracts remaining to be executed on Capital Account 75.77 0.57 (Net of advance) not provided for

Estimated amount of Investment in Joint Venture remaining to be made -US $ 45.45 42.75 0.76 Lacs (P.Y. US $ 0.79 Lacs)

Letter of Credit -Nil (P. Y. US $ 4.39 Lacs) - 238.88

3 Excise Duty

Excise duty is accounted as and when the goods are cleared. Accordingly, excise duty amounting to Rs. 19.15 lacs has not been accounted and considered for valuation of finished stocks. The said practice has no effect on the Statement of Profit and Loss for the year.

4 Borrowing in Foreign Currency

The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules, 2009 relating to Accounting Standard 11 (AS-11) notified by the Government of India on 31st March, 2009, which allows foreign exchange difference on long term monetary items to be capitalized to the extent they related to acquisition of depreciable assets and in other cases to amortize over the period of the monetary assets / liabilities or the period up to 31st March, 2020, whichever is earlier.

Exchange Difference loss of Rs. 23.73 Lacs (P.Y.Rs. 16.00 Lacs) related to acquisition of Depreciable Capital Assets has been adjusted to respective Fixed Assets.

Had this change not been effected, the profit for the year would have been lower by Rs. 23.52 Lacs (net of depreciation) (P.Y. Rs. 15.96 Lacs). Fixed Assets would have been lower by Rs. 23.52 Lacs (P.Y. Rs. 15.96 Lacs) and consequently the Surplus in Statement of Profit & Loss would have been lower by Rs. 23.52 Lacs (P.Y. Rs. 15.96 Lacs).

5 Disclosure in respect of Related Parties pursuant to Accounting Standard 18

List of Related Parties with whom transactions have taken place -

a) Key Management Personnel

Shri Tribhuvanprasad Kabra - Managing Director

Shri Mahendrakumar Kabra - Director

b) Relatives of Key Management Personnel

Shri Rameshwarlal Kabra - Father of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Smt. Ratnidevi Kabra - Mother of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Shri Shreegopal Kabra - Brother of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Smt. Umadevi Kabra - Wife of Shri Tribhuvanprasad Kabra

Late Smt. Hemlata Kabra - Wife of Shri Mahendrakumar Kabra

Shri Mahesh Kabra - Son of Shri Tribhuvanprasad Kabra

Shri Sumeet Kabra Son of Shri Mahendrakumar Kabra

Shri Hemant Kabra - Son of Shri Mahendrakumar Kabra

c) Entities over which Key Management and their relatives are able to exercise significant influence

MEW Electricals Limited RR Kabel Limited

Ram Ratna International Ram Ratna Research & Holdings Private Limited

Ram Ratna Infrastructure Private Limited Shreegopal Kabra (HUF)

Kabel Buildcon Solutions Private Limited Rameshwarlal Kabra (HUF)

Ram Ratna Electricals Limited

d) Joint Venture

RR-Imperial Electricals Limited- Bangladesh

6 Financial and Derivatives Contract

The Company uses forward contracts to mitigate the risks associated with foreign currency fluctuations. The Company does not enter into any forward contracts which are intended for trading or speculative purposes.

7 Previous year''s figures

The Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2013

Note 1 Contingent Liabilities and Commitments (Rs.in Lacs)

Particulars 2012-13 2011-2012

A. Contingent Liabilities

Bank Guarantees given 1,165.00 165.00

Bill Discounting 403.64 672.28

Income Tax Demands 72.49 58.64

Excise/Service Tax Demands 691.83 668.07

B. Commitments

Estimated amount of contracts remaining to be executed on Capital Account 0.57 29.28

(Net of advance) not provided for

Estimated amount of Investment in Joint Venture remaining to be made 42.75 95.30

Letter of Credit (USD 4.39 Lacs) 238.88

Note 2 Borrowing in Foreign Currency

The Company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules, 2009 relating to Accounting Standard 11 (AS-11) notified by Government of India on 31st March, 2009, which allows foreign exchange difference on long term monetary items to be capitalized to the extent they related to acquisition of depreciable assets and in other cases to amortize over the period of the monetary assets /liabilities or the period up to 31st March, 2020, whichever is earlier.

Exchange Difference loss ofRs. 16.00 Lacs ( P.Y. Rs. 32.93 Lacs) related to acquisition of Depreciable Capital Assets has been adjusted to respective Fixed Assets.

Had this change not been effected, the profit for the year would have been lower by Rs. 15.96 Lacs (net of depreciation) (P.Y. Rs. 31.91 Lacs). Fixed Assets would have been lower by Rs. 15.96 Lacs (P.Y. Rs. 31.91 Lacs) and consequently the Surplus in Statement of Profit & Loss would have been lower by Rs. 15.96 Lacs ( P.Y. X 31.91 Lacs).

Note 3 Disclosure in respect of Related Parties pursuant to Accounting Standard 18 List of Related Parties with whom transactions have taken place -

(a) Key Management Personnel

ShriTribhuvanprasad Kabra Managing Director

Shri Mahendra Kumar Kabra Director

(b) Relatives of Key Management Personnel

Shri Rameshwarlal Kabra Father of ShriTribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Shri Shreegopal Kabra Brother of Shri Tribhuvanprasad Kabra & Shri Mahendrakumar Kabra

Smt. Umadevi Kabra Wife of Shri Tribhuvanprasad Kabra

Smt. Hemlata Kabra (Passed away on 05-04-2013) Wife of Shri Mahendrakumar Kabra

Shri Hemant Kabra Son of Shri Mahendrakumar Kabra

(c) Entities over which Key Management and their relatives are able to exercise control or significant influence - MEW Electricals Limited Ram Ratna Electricals Limited

Ram Ratna International RR Kabel Limited

RR-lmperial Electricals Limited- Bangladesh TMG Global FZCO

Ram Ratna Infrastructure Private Limited Ram Ratna Research & Holdings Private Limited

Kabel Buildcon Solutions Private Limited Shreegopal Kabra (HUF)

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

Note 4 Previous year''s figures

The Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2012

1.1 The Term Loans is pari passu secured by first charge with the consortium lenders over the existing immoveable properties (excluding immoveable property at Rakholi, Silvassa) and the present and future moveable fixed assets of the Company and pari passu second charge with the consortium lenders over the present and future Current Assets of the Company and further secured by personal guarantees of some directors and a promoter.

2.1 The Secured Working Capital Loans are pari passu secured by first charge with the consortium lenders over the entire Current Assets, present and future, such as stock, book debts, etc. and pari passu second charge with the consortium lenders over the existing immoveable properties (excluding immoveable property at Rakholi, Silvassa) and the present and future moveable fixed assets of the Company and further secured by personal guarantees of some directors and a promoter.

2.2 For the Unsecured Working Capital Loans, personal guarantees have been given by some directors and a promoter.

3.1 For relevant Accounting Policies refer Note No. 1.3, 1.4, 1.8, 1.12 & 1.13 under the head Significant Accounting Policies.

3.2 Exchange Difference of Rs. 5.64 lacs (Previous Year Rs. Nil) on Factory Buildings and Rs. 24.17 lacs (Previous Year Rs. 17.59 lacs) on Plant & Machineries is capitalized.

3.3 Interest of Rs. Nil (Previous Year Rs. 3.36 lacs) on Factory Buildings and Rs. 8.40 lacs (Previous Year Rs. 43.99 lacs) on Plant & Machineries is capitalized.

4.1 Rental Deposits include Rs. 45.50 lacs (Previous Year Rs. 45.50 lacs) due from related parties and Rs. 3.50 lacs (Previous Year Rs. 3.50 lacs) due from a Private Company in which one of the Director is interested (For details refer Note 30 under the head Notes to financial statements).

5.1 For mode of valuation for each class of Inventories refer Note 1.5 under the head Significant Accounting Policies.

6.1 For determination of cost refer Note 1.5 under the head Significant Accounting Policies.

Note 7 Contingent Liabilities and Commitments (Rs. in Lacs)

Particulars 2011-12 2010-11

Bank Guarantees given 165.00 160.00

Estimated amount of contracts/ Investment remained to be executed on Capital Account (Net of advance) (includes for Joint Venture) 124.58 298.73

Bill Discounting 672.28 73.02

Income Tax Demands 58.64 55.46

Excise/Service Tax Demands 668.07 4.76

Note 8 Excise duty

Excise duty is accounted as and when the goods are cleared. Accordingly, excise duty amounting to Rs. 54.73 lacs has not been accounted and considered for valuation of stocks. The said practice has no effect on the Statement of Profit and Loss for the year.

Note 9 Disclosure in respect of Related Parties pursuant to Accounting Standard 18

List of Related Parties where control exists and with whom transactions have taken place:

(a) Key Management Personnel:

Shri Tribhuvanprasad Kabra Shri Mahendrakumar Kabra (Managing Director) (Director)

(b) Relatives of Key Management:

Shri Rameshwarlal Kabra Smt. Hemlata Kabra

Shri Shreegopal Kabra (HUF) Smt. Priti Saboo

Smt.Umadevi Kabra Shri Shreegopal Kabra

Shri Hemant Kabra

(c) Entities over which Key Management Personnel and their Relatives are able to exercise significant Influence / Control:

Ram Ratna Research and Holdings Jag-Bid Finvest Pvt. Ltd. Pvt. Ltd.

Kabel Buildcon Solutions Pvt. Ltd. Ram Ratna Infrastructure Pvt. Ltd.

Ram Ratna International R R Imperial Electricals Limited, Bangladesh

RR Kabel Limited MEW Electricals Limited



Note 10 Previous year's figures

The Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary to confirm to this year's classification which is as per Revised Schedule VI.

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Mar 31, 2011

1. Contingent Liabilities not provided for in respect of: (Rs. in Lacs)

Particulars 2010-11 2009-10

Bank Guarantees given 160.00 110.00

Estimated amount of contracts / Investment remained to be executed on Capital 298.73 1.39 Account (Net of advance)

Bill Discounting 73.02 35.18

Income Tax 55.46 30.58

Excise / Service Tax 4.76 1.15

2. Excise duty is accounted as and when the goods are cleared. Accordingly, excise duty amounting to Rs. 64.67 Lacs has not been accounted and considered for valuation of stocks. The said practice has no effect on the Profit and Loss Account for the year.

3. The Company has written to all suppliers enquiring about their status under MSMED Act, 2006. However information is not received from all the suppliers. In case of suppliers who have informed and are covered under the Act, the Company has made the payment in time.

4. Capacity and Production :

Notes:

a) Installed capacity is on a single shift and single product basis.

b) Production of Enamelled Copper Winding Wire, Enamelled Copper Strips and Enamelled Aluminium Winding Wire are exempt from the licensing requirement.

c) Previous years figures are written in brackets.

d) Major increase in capacity is effected in 4th quarter of the current year.

11. Disclosure in respect of Related Parties pursuant to Accounting Standard 18:

I) List of Related Parties where control exists and with whom transactions have taken place:

a) Key Management Personnel:

Shri Tribhuvanprasad Kabra (Managing Director) Shri Mahendra Kumar Kabra (Director)

b) Relatives of Key Management:

Shri Rameshwarlal Kabra Smt. Hemlata Kabra

Shri Shreegopal Kabra (HUF)) Smt. Priti Saboo

Smt.Umadevi Kabra

c) Entities over which Key Management Personnel and their Relatives are able to exercise significant influence/Control:

RR Kabel Limited MEW Electricals Ltd.

Ram Ratna Research and Holdings Pvt. Ltd. Jag-Bid Finvest Pvt. Ltd.

Kabel Buildcon Solutions Pvt. Ltd. Ram Ratna Infrastructure Pvt. Ltd.

M/c Ram Ratna International

5. Financial and Derivatives Contract:

The Company used forward contract to mitigate the risks associated with foreign currency fluctuations. The Company does not enter into any forward contract which is intended for trading or speculative purposes.

6. The Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2010

1. Contingent Liabilities not provided for in respect of

(Rs. in Lacs)

Particulars 2009-10 2008-09

Bank Guarantees given 110.00 110.00

Estimated amount of contracts remained to be executed on Capital Account 1.39 19.21

(Net of advance)

Bill Discounting 35.18 69.73

Income Tax 30.58 Nil

Excise / Service Tax 1.15 Nil

Notes:

a) Installed capacity is on a single shift and single product basis.

b) Production of Enamelled Copper Winding Wire, Enamelled Copper Strips and Enamelled Aluminium Winding Wire are exempt from the licensing requirement.

c) The production of Enamelled Copper Winding Wire include 2.276 MTs (P.Y. 4.512 MTs) subsequently converted in Scrap.

d) Previous years figures are written in brackets

2. Disclosure in respect of Related Parties pursuant to Accounting Standard 18

I) List of Related Parties where control exists and with whom transactions have taken place

a) Key Management Personnel

Shri Tribhuvanprasad Kabra (Managing Director) Shri Mahendra Kumar Kabra (Director)

b) Relatives of Key Management:

Shri Rameshwarlal Kabra Smt. Hemlata Kabra

Shri Shreegopal Kabra (HUF) Smt. Priti Saboo

c) Entities over which Key Management Personnel and their relatives are able to exercise significant nfluence/Control :

RR Kabel Limited MEW Electricals Limited

Ram Ratna Research and Holdings Private Limited Jag-Bid Finvest Private Limited

Kabel Buildcon Solution Private Limited M/s. Ram Ratna International

3. The Previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary.