# Estimation of Fair Value

The company obtained independent valuations of its investment properties. The best evidence of fair value is the current prices in an active market for similar properties. The fair values of investment properties have been determined by M/s Bhavin R Patel & Associates, Chartered Engineers & Registered Valuers for our property situated at Bangalore, Faridabad & Guwahati.

Premises given on operating lease:

The Company has given certain investment properties on operating lease. These lease arrangements range for a period between 2 and 5 years and include both cancellable and non-cancellable leases. Most of the leases are renewable for further period on mutually agreeable terms.

(b) Terms/rights attached to equity shares

The Company has equity shares having par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share.

Shares in respect of each class in the company held by its holding company rights ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate : NIL

Shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts : NIL

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

The company has not Issued equity share capital including shares allotted for consideration other than cash during the past five years.

a) Term Loan (Rupee Loan)

(i) Type of Loan : 10.50% p.a.Term loan Canara Bank, New Delhi of Rs. 4500 Lakhs is sanctioned on 14.08.2015 by Canara Bank, New Delhi for our Khurda Projects against which Rs. 4064.34 Lakhs availed (Outstanding amount of Rs. 409.66 Lakhs as on 31.03.2023).

Nature of Security: The loan is secured by exclusive charge on land & building and other fixed/ movable/immovable assets situated at Village-chmpajhara, Distt- Khurda, Bhubaneswer.

Terms of Repayment : The said loan is repayable in 32 quarterly structured instalments starting from quarter ending December’ 2015 and ending on quarter ending November’2023.

(ii) “Type of Loan : 7.85% p.a.GECL2.0 Term loan of Rs 1010 Lakhs from Canara Bank is sanctioned on

03.03.2021 against which Rs 800.72 lakh availed till 31.03.2023 (Outstanding amount of Rs. 548.72 Lakhs as on 31.03.2023).

Nature of Security : Secured by second charge on primary security/collateral security

Terms of Repayment: The loan is repayable in 47 equated monthly instalments of Rs 21 lakhs & last instalment of Rs 23 lakhs after moratorium period of 12 months from the date of disbursement.”

(iii) “Type of Loan : GECL (Guaranteed Emergency Credit Line) Loan sanctioned by State Bank of India @ 7.95% p.a. Rs.852 Lakhs (Outstanding amount of Rs. 744.82 Lakhs as on 31.03.2023)

Nature of Security : Secured by Second pari-passu charge over entire stock of raw material, finished goods, stock in process, consumable stores& spares, packing materials, book debts, outstanding monies,receivables,claims and bills etc. of IEC division of the company and Collateral security given as Second pari-passu charge on movabe and immovable fixed assets of IEC division situated at Plot No. 1-8, New Industrial Area,Mandideep, Raisen, MP along with IDBI Bank.

Terms of Repayment: The same are repayable in 48 monthly instalments commencing from 31.10.2022.”

(iv) “Type of Loan : Further GECL (Guaranteed Emergency Credit Line) Loan sanctioned by State Bank of India @ 7.95% p.a. Rs.426 Lakhs (Outstanding amount of Rs. 422.23 Lakhs as on 31.03.2023 )

Nature of Security : Secured by Second pari-passu charge over entire stock of raw material, finished goods, stock in process, consumable stores& spares, packing materials, book debts, outstanding monies,receivables,claims and bills etc. of IEC division of the company and Collateral security given as Second pari-passu charge on movabe and immovable fixed assets of IEC division situated at Plot No. 1-8, New Industrial Area,Mandideep, Raisen, MP along with IDBI Bank.

Terms of Repayment: The same are repayable in 48 monthly instalments commencing after a moratorium period 24 months from the date of disbursement respectively.”

(v) “Type of Loan : GECL (Guaranteed Emergency Credit Line) Loan sanctioned by IDBI @ 8.60% p.a. Rs.400 Lakhs (Outstanding amount of Rs.400 Lakhs)

Nature of Security : Secured by Second pari-passu charge over entire stock of raw material, finished goods, stock in process, consumable stores& spares, packing materials, book debts, outstanding monies,receivables,claims and bills etc. of IEC division of the comapany and Collateral security given as Second pari-passu charge on movabe and immovable fixed assets of IEC division situated at Plot No. 1-8, New Industrial Area,Mandideep, Raisen, MP along with SBI Bank

Terms of Repayment: The same are repayable in 48 monthly instalments commencing after a moratorium period 24 months from the date of disbursement respectively.”

b) Loans repayable on demand - Inter-corporate loans taken during the year from related parties repayable on demand

c) “Liability Component of Redeemable Preference Shares : Redeemable Non-Cumulative Non-Convertible Preference Shares of Rs 9518.97 Lakhs issued on 12.12.2018. Present Value of Principal amount of such shares at the end of 20 years considered as Liability Component as per Ind-AS 32 using discount rate @ 7.50% is Rs 3060.28 Lakhs (Previous year - Rs 2846.77 Lakhs). Interest expense recognised during the year as per Ind-AS 32 is Rs 213.51 lakhs (Previous year - Rs 198.08 Lakhs)”

d) Working Capital Facilities for Banks :

(i) “Type of Loan: Working Capital Facilities from Canara Bank for the Conductor Division against which drawing is Rs 0.00 Lakhs. (Previous year - Rs. 1278.31 Lakhs)

Nature of Security : Secured against hypothecation of stocks, book debts and plant & machinery both present & future at Village-champajhara,Distt- Khurda, Bhubaneswar &12/1,Milestone, Delhi Mathura Road, Faridabad. & Plot No 1C, Industrial park, Sila Mouza, Kamrup, Guwahati, Assam and equitable mortgage of land and building at 12/1,Milestone, Delhi Mathura Road, Faridabad.”

(ii) “Type of Loan: Working capital facilities from State Bank of India, Bhopal Branch & IDBI Bank, Bhopal Branch for the Insulator division against which drawing is Rs 4869.15 Lakhs (Previous year - Rs. 2384.17 Lakhs ).

Nature of Security: Secured against hypothecation of all types of stocks and book debts and other receivable situated at plot no 1-8, New Industrial area Mandideep, Tehsil-Goharganj,Distt-Raisen, M.P. or such other place as approved by bank and secured collaterally by way of second charge on fixed assets of insulators division situated at plot no 1-8, New Industrial area Mandideep, Tehsil-Goharganj,Distt-Raisen, M.P.”

(iii) Type of Loan: PCFC Working Capital Loan from State Bank of India, Bhopal Branch & IDBI Bank, Bhopal Branch for the Insulator division against which drawing is 145000 USD @ 82.87 & 291000 Euro @ 91.01 amounting to Rs 385.00 Lakhs as on 31.03.2023 (Previous year -420823.10 USD @ 75.7925 amounting to Rs 318.95 )

(iv) “Type of Loan: 9.78% p.a. FCNR CC limit of USD 3314000 from State Bank of India disbursed on

11.02.2022 against which drawing is 3337144 USD @ 75.7925 amounting to Rs 2529.30 Lakhs as on

31.03.2022 and the same fully paid in Financial Year 2022-23.

Nature of Security : Secured against hypothecation of all types of stocks and book debts and other receivable situated at plot no 1-8, New Industrial area Mandideep, Tehsil-Goharganj,Distt-Raisen, M.P. or such other place as approved by bank and secured collaterally by way of second charge on fixed assets of insulators division situated at plot no 1-8, New Industrial area Mandideep, Tehsil-Goharganj,Distt-Raisen, M.P.

Interest rate varies from 1% p.a. to 6% p.a. per annum on foreign currency denominated working capital facilities and it varies from 8% p.a. to 13% p.a. on rupee denominated working capital facilities.

Major Actuarial Assumptions

With the objective of presenting the plan assets and plan liabilities of the defined benefits plans at their fair value on the balance sheet, assumptions under Ind AS 19 are set by reference to market conditions at the valuation date.

Risk Exposures

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company

is exposed to various risks as follows:

A) Salary Increases : Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B) Investment Risk : If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan’s liability.

D) Mortality & disability : Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals : Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

35. Segment Reporting

I) Based on the guiding principles given in Ind AS-108 “Operating Segment”, the Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108 “Operating Segments”. Operating Segments have been defined and presented based on the regular review by the CODM to assess the performance of each segment and to make decision about allocation of resources. Accordingly, the Company’s business segments are organised around customers on industry and products lines as under:

a. Conductor: Conductor includes electrical conductor and related items.

b. Insulator: Insulator includes electrical insulator and related items.

c. Real-estate : Real-estate includes Property at Faridabad given for rent purpose.

d. Others : This segment is engaged in Investment activities

The Company prepares its operating segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

No operating segments have been aggregated to form the above reportable operating segments.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and not allocable to segments on reasonable basis have been included under ‘unallocated revenue / expenses / assets / liabilities’.

Finance costs are not allocated to individual segments as the underlying instruments are managed on a Company basis

Current taxes and Deferred taxes are not allocated to those segments as they are also managed on a Company basis.

1) Segments have been identified and reported taking into account the nature of products and services, the differing risk and returns, the organization structure and the internal financial reporting systems.

2) The segment revenues, results, assets and liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

3) All non-current assets of the company are located within India.

4) Information about major customers :

Three customers contributed more than 10% ( Rs 5246.54 Lakhs) to the Company’s revenue in 2022-23 and three customers contributed more than 10% (Rs 6934.54 Lakhs) to the Company’s revenue in 2021-22.

(a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these instruments.

(b) Fair value of non-current financial assets and liabilities has not been disclosed as there is no significant differences between carrying value and fair value.

(c) The fair value is determined by using the valuation model/techniques with observable/non-observable inputs and assumptions.

(d) Derivatives are carried at fair value at each reporting date. The fair values of the dervatives financial instruments has been determined using valuation techniques with market observable inputs. The models incorporate various inputs including the credit quality of counter-parties and foreign exchange forward rates.

(e) There are no transfers between Level 1, Level 2 and Level 3 during the years ended 31 March 2023 and 31 March 2022.

Fair Value hierarchy

All financial assets and liabilities for which fair value is measured in the financial statements are categorised within the fair value hierarchy, described as follows: -Level 1 - Quoted prices in active markets.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly. Level 3 - Inputs that are not based on observable market data.

41. Financial Risk management Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the company’s risk management framework.

The Company through three layers of defence namely policies and procedures, review mechanism and assurance aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Audit committee of the Board with top management oversee the formulation and implementation of the risk management policies. The risk are identified at business unit level and mitigation plan are identified, deliberated and reviewed at appropriate forums.

The Company has exposure to the following risks arising from financial instruments:

- credit risk (see(i);

- liquidity risk (see(ii); and

- market risk (see(iii).

i. Credit risk

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 and arises principally from theCompany’s receivables from customers, loans and investments.

The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables and other financial assets

The Company has established a credit policy under which new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per policy.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether they are institutional, dealers or end-user customer, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

Expected credit loss for Trade receivables:

Based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its allowance for trade receivable using lifetime expected credit loss. The balance past due for more than 6 months (net of expected credit loss allowance) is Rs 3129.58 Lakhs (31 March, 2022: 7352.95 Lakhs )

Expected credit loss on financial assets other than trade receivables:

With regard to all financial assets with contractual cash flows, other than trade receiables, management belives these to be high quality assets with negligble credit risk. The management believes that the parties from which these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no provision for excepted loss has been provided on these financial assets. Break up of financial assets other than trade receivables have been disclosed on standalone Balance Sheet.

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 asset. The Company’s approach to managing liquidity is to ensure, as fas as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company’s treasury department is responsible for managing the short-term and long-term liquidity requirements. Short term liquidity situation is reviewed daily by the treasury department. Longer term liquidity position is reviewed on a regular basis by the Parent Company’s Board of Directors and appropriate decisions are taken according to the situation.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted and include contractual interest payments and exclude the impact netting agreements.

iii. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company’s income or the value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

iv. Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the respective functional currencies of the Company. The functional currencies of the Company are primarily the INR, USD and EUR. The currencies in which these transactions are primarily denominated are USD and INR.

Sensitivity analysis

A reasonable possible strengthening/ weakening of the EUR, USD or INR against all other currencies at year end would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

v. Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in INR and USD with a mix of fixed and floating rates of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate and LIBOR rates. The risk is managed by the Company by maintaing an appropriate mix metween fixed and floating rate borrowings.

42. Capital Management Risk management

The Company’s objectives when managing capital are to:

- safeguarding their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

I n order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:

49. Security of current assets against borrowings - Details of Quarterly statements filed by the Company with banks -

Company has taken borrowings from banks on the basis of security of current assets for which quarterly statements of current assets filed by the company with banks are in agreement with the books of accounts and theme is no material discrepancies.

50. Charges yet to be registered with ROC

charges or satisfaction yet to be registered with ROC beyond the statutory period, details and reasons thereof - Not Applicable

52. Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current years classification disclosure.

53. The financials statements has been approved by the Board on 28th May, 2023.