(xv) Provisions and contingent liabilities and assets
Provisions
Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past events,
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.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects
current market assessments of the time value of money and 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.
Contingent liabilities and assets
Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably,
the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote.
Contingent assets are possible assets that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.
(xvi) Revenue recognition
The Company earns revenue primarily from selling of Cables and switchgear items
Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects
the consideration which the Company expects to receive in exchange for those products or services. The Company
recognizes revenue on satisfaction of the performance obligation by transferring the promised goods and services
mentioned in the contracts with the customers.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts,
performance bonuses, price concessions and incentives, if any, as specified in the contract with the customer. Revenue
also excludes taxes collected from customers.
The Company recognizes revenue for a performance obligation satisfied at point in time after satisfaction of the
performance obligation. In case where the outcome of a performance obligation cannot be reasonably measured but the
Company expects to recover the costs incurred in satisfying the performance obligation, the revenue is being recognized
only to the extent of the costs incurred until such time that it can reasonably measure the outcome of the performance
obligation.
The Company disaggregates revenue from contracts with customers by nature of goods and service.
Contract assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are
classified as unbilled revenue (only act of invoicing is pending) when there is unconditional right to receive cash, and only
passage of time is required, as per contractual terms.
Unearned and deferred revenue (“contract liability”) is recognised when there is billing in excess of revenues.
Interest income on financial assets (including deposits with banks) is recognised using the effective interest rate method.
Export Benefits
Export entitlements are recognised in the statement of profit and loss when the right to receive credit as per the terms of
the scheme is established in respect of exports made and when there is no significant uncertainty regarding the ultimate
collection of the relevant export proceeds.
(xvii) Expenditure
Expenses are accounted for on the accrual basis and provisions are made for all known losses and liabilities.
(xviii) Borrowing costs
Borrowing costs attributable to the acquisition or construction of a qualifying asset are capitalised as part of the cost of
the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. Other
borrowing costs are recognised as an expense in the period in which they are incurred. Borrowing cost includes exchange
differences to the extent regarded as an adjustment to the borrowing costs.
(xix) Income tax
Income tax expense comprises of current tax and deferred tax. It is recognised in the Statement of Profit and Loss except
to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment
to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax
amount expected to be paid or received after considering the uncertainty, if any relating to income taxes. It is measured
using tax rates enacted at the reporting date.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised
amounts, and it is intended to realise the asset and settle the liability on a net basis.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the corresponding amounts used for taxation purposes.
Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for unused
tax losses, unused tax credits and deductible temporary differences to the extent that is probable that future taxable
profits will be available against which they can be used. Deferred tax assets unrecognised or recognised, are reviewed at
each reporting date and are recognised / reduced to the extent that it is probable / no longer probable respectively that the
related tax benefit will be realised. Significant management judgement is required to determine the probability of deferred
tax asset.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or liability is
settled, based on the laws that have been enacted or substantively enacted by the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company
expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and deferred tax liabilities are offset only if there is a legally enforceable right to offset current tax
liabilities and assets levied by the same tax authorities.
(xx) Earnings per share
The Company presents basic and diluted earnings per share (EPS) data for its equity shares.
Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the period.
Diluted EPS is determined by adjusting profit or loss attributable to equity shareholders and the weighted average number
of equity shares outstanding, for the effects of all dilutive potential equity shares, which comprise convertible preference
shares and share options granted to employees.
(xxi) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker is considered to be the Board of Directors who makes strategic
decisions and is responsible for allocating resources and assessing performance of the operating segments.
(xxii) Recent Indian Accounting Standards (Ind AS)
There are no recent accounting pronouncements / Standards / Amendments which are yet to be effective as on March 31,
2025.
Securities premium reserve
Securities Premium reserve represents the amount received in excess of par value of securities (equity shares). The reserve is
utilised in accordance with the provisions of the Companies Act, 2013.
General reserve
General reserve represents the statutory reserve created in accordance with Indian Corporate law, wherein a portion of profit is
required to be apportioned to such reserve. Under the Companies Act, 1956, it was mandatory to transfer a required amount to
general reserve before a company could declare dividend, however, under the Companies Act, 2013, the transfer of any amount
to general reserve is at the discretion of the Company.
Retained earnings
Retained earnings represent the undistributed profits of the Company.
(i) Vehicle Loans are secured against hypothecation of respective vehicles
(ii) The loan together with interest and other charges thereon are secured against mortgage of immovable property of promoters
situated at 4801, Block-24, Bharat Ram Road, Daryaganj, New Delhi-110002 and personal guarantee of director.
(iii) Cash Credit,working capital demand loan, Letter of Credit and buyers credit are secured by pari passu charge under
consortium arrangement by way of first charge on whole of movable properties, excluding such movable which has been
permitted by the banks and including inventories & book debts of the company & equitable mortgage created on the
properties at 17/4, Mathura Road, Faridabad & personal guarantee of the directors.
(iv) Loan from Banks and financial institutions are secured against the personal gaurantee of director.
(v) The company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.
(vi) The statements of book debts and inventory filed by the Company with banks/ financial institutions are in agreement with the
books of accounts except as mentioned in note 48.
(vii) Borrowings from Banks / financial institutions have been utilized for specific purpose for which it was taken.
Note-A
In Pursuance to an order dated March 28, 2023 passed by the Hon’ble Supreme Court of India, the Company during the year has
received an enhanced compensation on September 30, 2024 amounting to Rs. 1029.41 lakhs from Haryana State Industrial and
Infrastructure Development Corporation (HSIIDC) for land at Dharuhera measuring 9.25 acres acquired by Haryana Government
vide notifictaion no. 32/4/2010-4 dated 13.5.2010.
Note-B
The Company during the previous year had identified certain inventories mainly included under Work in Progress being sub¬
standard and not up to the standards laid down by the Company and customers. Further, inventories were identified which were
obsolete owing to design changes or being rejected by customers. As a result, the Company had during the previous year, written
down its inventory in line with reasons stated above to the extent of Rs. 1001.65 lakhs.
Note-C
In October 2024, the Company experienced a fire incident at its Faridabad Plant, resulting in damage to inventory, plant and
machinery, and a portion of the factory building. The estimated financial impact of the loss, net of the anticipated insurance claim
receivable, amounts to ^33.43 lakhs.
Note-D
The Company during the previous year had written off old asset balances appearing under “Balance from Government Authorities”
Rs.162.32 lakhs (including Sales Tax/Cenvat Balances Rs.136.40 lakhs, Excise Duty on deemed exports Rs. 22.10 lakhs,
Duty Drawback Rs. 3.82 lakhs, ) as the same were deemed irrecoverable by the management. Further, during the previous
year Company had written off RS 59.04 Lakhs old asset balances appearing under “ Advance to Vendors” and “Advaces to
Employees” as the same were deemed irrecoverable based on the management assessment.
Note-E
During the year, the Company concluded a legal dispute with a vendor and a customer. Pursuant to the decision of the appropriate
authorities, the Company has accounted for a net settlement amount of ^30.87 lakhs under the head “Exceptional Items” as a
one-time litigation settlement.
# Some of the Company’s borrowings have been contracted at floating rates of interest, which resets at short intervals. Accordingly,
the carrying value of such borrowings (including interest accrued but not due) approximates fair value.
* The carrying amounts of trade receivables, trade payables, cash and cash equivalents, bank balances other than cash and
cash equivalents, other current financial assets and other current financial liabilities, approximates the fair values, due to their
short-term nature. The other non-current financial assets represents bank deposits (due for maturity after twelve months from
the reporting date), security deposits, Insurance claims etc., the carrying value of which approximates the fair values as on the
reporting date.
There has been no transfers between Level 1, Level 2 and Level 3 for the years ended 31 March 2025 and 31 March 2024.
Valuation technique used to determine fair value
The fair values for loans were calculated based on effective interest rate method using a current lending rate.
All of the resulting fair value estimates for unlisted equity securities, where the fair values have been determined based on
present values and the discount rates used were adjusted for counterparty or own credit risk.
Valuation processes
The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required
for financial reporting purposes, including level 3 fair values. This team reports directly to the Senior Management. Discussions
on valuation and results are held between the Senior Management and valuation team atleast once every quarter in line with the
Company’s quarterly reporting periods.
The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The board of directors has authorized respective business Managers to establish the processes, who
ensures that executive management controls risks through the mechanism of properly defined framework.
The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed by the business managers periodically to reflect changes in market conditions and the Company’s activities. The
Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive
control environment in which all employees understand their roles and obligations.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations.
Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks with high credit
ratings. Other financial assets represents security deposits given to suppliers, insurance policies and long term term deposits
with banks. The credit risk associated with such financial assets is relatively low.
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers the factors that may influence the credit risk of its customer base, including the default risk of the
industry and country in which customers operate.
The Company’s Management has established a credit policy under which each new customer is analyzed individually for
creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review
includes market check, industry feedback, past financials and external ratings, if they are available, and in some cases bank
references.
Majority of the Company’s customers have been transacting with the Company from many years, and no impairment loss has
been recognized against these customers. In monitoring customer credit risk, customers are reviewed according to their credit
characteristics, including whether they are an individual or a legal entity, their geographic location, industry and existence of
previous financial difficulties.
As per Ind AS 109, the Company makes allowance for doubtful trade receivable using simplified approach , significant judgement
is used to estimate doubtful accounts as prescribed in IND AS 109 . In estimating doubtful accounts historical and anticipated
customer performance are considered. Changes in the economy, industry, or specific customer conditions may require
adjustments to the allowance for doubtful accounts recorded in financial statements. This is done on the basis of company’s past
history, existing market conditions as well as forward looking estimates at the end of each reporting period.
(ii) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial assets. The Company’s approach to manage liquidity is to have sufficient
liquidity to meet it’s liabilties when they are due, under both normal and stressed circumstances, without incurring unacceptable
losses or risking damage to the Company’s reputation.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of credit facilities to meet obligations when due and to close out market positions. Due to the
dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under
credit facilities.
Liquidity risk results from the Company’s potential inability to meet the obligations associated with its financial liabilities, for
example settle-ment of financial debt and paying suppliers. The Company’s liquidity is managed by Company Treasury. The
aim is to ensure effective liquidity management, which primarily involves obtaining sufficient committed credit facilities to ensure
adequate financial resources and, to some extent, tapping a range of funding sources.
Net financial debt is used internally by Company Treasury to monitor the Company’s credit resources available. Net financial
debt is the Company’s net interest-bearing debt, excluding interest-bearing assets, as these assets are not actively managed in
relation to liquidity risk.
As 31 March 2025, net financial debt was Rs. 15,892.65 lakhs (31 March 2024: Rs. 10,454.68 Lakhs).
As 31 March 2025, the Company had total unutilised credit facilities of Rs. 185.07 lakhs (31 March 2024: Rs. 492.05 lakhs), of
which Rs. Nil (31 March 2024: Rs. Nil) was non-current credit facilities. Credit resources available consist of the unutilised credit
facilities, bank balances and cash and cash equivalents of Rs. 1456.05 lakhs (31 March 2024: Rs. 1350.41 lakhs).
The inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to derivative
financial liabilities held for risk management purposes and which are not usually closed out before contractual maturity.
(iii) Market risk
Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises two types of risk namely: currency risk and interest rate risk. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return.
A. Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
borrowings with floating interest rates.
Exposure to interest rate risk
The Company’s interest rate risk arises majorly from the term loan carrying floating rate of interest. These obligations
exposes the Company to cash flow interest rate risk. The exposure of the Company’s borrowing to interest rate changes
as reported to the management at the end of the reporting period are as follows:
B. Currency risk
Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange
rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial
position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other
currencies from the Company’s operating, investing and financing activities.
Capital Management
The primary objective of the management of the Company’s capital structure is to maintain an efficient mix of debt and equity in
order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to pursue business
opportunities and adequate access to liquidity to mitigate the effect of unforeseen events on cash flows. Management also
monitors the return on equity.
The Board of directors regularly review the Company’s capital structure in light of the economic conditions, business strategies
and future commitments.
For the purpose of the Company’s capital management, capital includes issued share capital, securites premium and all other
equity reserves. Debt includes term loan.
During the financial year ended 31 March 2025, no significant changes were made in the objectives, policies or processes
relating to the management of the Company’s capital structure.
(ii) Post-employment obligations (Gratuity)
The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The employees who are
in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement /
termination is the employee’s last drawn basic salary per month computed proportionately for 15 days’ salary multiplied
with the number of years of service. The gratuity plan is a partly funded plan and the Company makes contributions to
recognised funds in India. The Company does not fully fund the liability.
(iii) Defined contribution plans
The Company also has certain defined contribution plans. Contributions are made to provident fund and employee’s state
insurance scheme for employees as per regulations. The contributions are made to registered funds administered by the
government. The obligation of the Company is limited to the amount contributed and it has no further contractual or any
constructive obligation.
The Company ensures that investment positions are managed within an asset/liability matching (ALM) framework that has
been developed to achieve long term investments that are in line with the obligations under employee benefit plans. Within
this framework, the Company’s ALM objective is to match assets to the Gratuity obligations by investing in Plan assets with
recognised gratuity trust which has taken a gratuity policy with the Life Insurance Corporation of India (LIC) with maturities that
match the benefit payments as they fall due.
The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash
outflows arising from the employee benefit obligations. The Company has not changed the processes to manage its risk from
previous periods.
The Company believes the LIC policy offers reasonable returns over the long-term with an acceptable level of risk.
The plan asset mix is in compliance with the requirements of the local regulations.
(viii) Defined benefit liability and employer contributions
The Company has agreed that it will aim to eliminate the deficit in defined benefit gratuity plan over the coming years. Funding
levels are monitored on an annual basis and the current agreed contribution rate as advised by the LIC. The Company considers
that the contribution rates set at the last valuation date are sufficient to eliminate the deficit over the coming years and that
regular contributions, which are based on service costs, will not increase significantly.
The expected maturity analysis of gratuity is as follows:
The guarantees have been given in the ordinary course of business and the obligations are expected to be discharged
accordingly and no liability is anticipated in these respects.
In respect of the above claims, notices and obligation against the Company which have arisen in the ordinary course of
business, all available legal steps have been taken to protect the Company’s interest. Based on the status of these cases and
as advised by Company’s advisors, wherever applicable, the management believes that the Company has strong chance of
success and the existing provision would be sufficient to meet the liability if any arises on the Company.
40. Contingent Assets
The Company had initiated legal proceedings before the Hon’ble District Court, Rewari, the Hon’ble High Court of Punjab and
Haryana, and the Hon’ble Supreme Court of India seeking enhanced compensation for 9.25 acres of land acquired by the
Haryana State Industrial & Infrastructure Development Corporation (HSIIDC) in prior years. Pursuant to the Hon’ble Supreme
Court’s judgment dated August 23, 2023, the compensation was revised and the Company received ^1,029.41 lakh through
execution proceedings before the District Court, Rewari, towards the enhanced compensation in the current year on September
30, 2024.
The Company has initiated further legal proceedings for rectification of the interest calculation and anticipates an additional
receivable of approximately ^625 lakhs, subject to final adjudication. This amount has been treated as a contingent asset in line
with applicable accounting principles.
54. Previous year’s figures have been rearranged, where necessary, to conform to the current year’s classification.
As per our report of even date attached
For Bansal & Co LLP For and on behalf of the Board of Directors
Chartered Accountants Delton Cables Limited
ICAI Firm Registration No.: 001113N/N500079
Sd/- Sd/- Sd/-
Siddharth Bansal (V.K. Gupta) (Vivek Gupta)
Partner Chairman Managing Director
Membership No. 518004 DIN No: 00036210 DIN No: 00035916
Place : New Delhi Sd/- Sd/-
Date : May 30, 2025 (Sangeeta Tondon) (Jitender Kumar)
Chief Financial Officer Company Secretary
Membership Number: 30349
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