2. SIQNIFICANTACCOUNTINGPOUCIES

2.1 Statemen 1 Of c ompli an ca:

The financial statements have* been prepaied in accordance willi Indran Accounting Standards find AS ) nuitfied under the Companies (Indian Accounting Standards.! Rules 2015 as amended hy the Companies (Indian Accounting Standards) tAmendment) Rules. 2016

2.2 Basis of preparation of financial statements:

The financial statements nave been prepared on iha historical cost basis except tor certain financial instruments that are measured at fan values at the end of each reporting period, as explained in the accounting policies be tow

Historical cost is generally based on the fair value of the consideration grven In exchange for goods and services at the dale of respective transactions

Fair value is the price that would be received to sell an asset or paid to transfer a liability m an orderly transaction between market participants at the measurement date regardless at whether that price is directly observable or estimated using another valuation technique in estimating the fair value of an asset or a liability, the Group takes into account the character isttcs of the asset or liability if m a rust participants would take those characteristics into account when pricing the asset or liability at the meg surement date Fair value for measurement and/or disclosure purposes m these consolidated financial statements is determined on such q basis except for share-based payment transactions lha! are within the scope of Ind AS 1Q? leasing transactions that are wrthin the scope oi I nd «S 17, and measurements that have some similarities to fair value but are not fair value such as net realisable value in Ind AS 2 or value in use In Ind as 36

In addition. 1br financial reporting purposes fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to The fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Lave! 1 Inputs are quoted prices (unadjusted! In active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2 inputs ara inputs other ihan quoted prices included within Level 1 that are ooservebip for the asset or liability either directly or indirectly, and

Level 3 inputs am unobservable Inputs tor the asset of liability

2.3 Use of estimates and Judgements:

The preparation of financial statements requires management to make eslimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period The recognition measurement classification or disclosure of an nem or information m the financial statements is made relying on these estimates.

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believas to be reasonable under the existing circumstances Actual results couio differ from those estimates Any revision to account mg estimates rs recognised prospectively in current end future periods The critical accounting judgements and key estimates followed by the Company for preparation of financial statements

2.4 Revenue Recognition:

2.4.1 Sale qf Cables

Revenue Is recognized to ihe extent that it is probable that the economic benefits will flow to the company ana (he revenue can be reliably measured Revenue is measured at ihe fair value of the consideration received or receivable Revenue is reduced for o&i minted rebates and other similar allowances

Revenue from sale of cable / other items is recognised when substantial risks and rewards of ownership is transferred to the buyer under the terms of the contract

2.4.2 Re ven ue (ro m c on st ru c ho n con l ract s

Revenue fiom construction etmlracts is recognised ny applying percerilage of completion melnod after provrdmg for foreseeable losses if any. Percentage of completion is determined as a proportion o!¹ the cost Incurred up to the reporting dale to the total estimated cost to complete Foreseeable losses, if eny, on the contracts is recognised as an expense m Ihe period in which it is foreseen, irrespective cf She stage of completion of Ihe qonirec: While determining the amount of foreseeable toss all elements of tost and related incidental income which Is not included In contract revenue is taken into consideration Conlract is reflected at cost lhat Is expected to be recoverable hll such time the outcome of the contract cannot be ascertained reliably and at realisable value thereafter Cterms are accounted as income in the year ot acceptance by customer

2.4.3 Dividend and interest Income

Dividend income is recognised in the statement of profit ana loss onty when the right to receive payment is established it is probable that the economic benefits associated with the dividend will How to the Company, and the amount of the dividend can be measured refrably

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company end the amount of income can be measured reliably tnteresf income is accrued on a hme basis, by reference to the principal outstanding and at the effective interest rate applicable which is the rate That exactly discounts estimated future cash receipts through the expected life of The financial assel to that asset's net carrying amount on initial recognition

2.5 Property Plants Equipment:

i) The cost of property, plan! and equipment comprises its purchase price nel of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities) any directly attributable expenditure on making ihe asset ready for its mtendEd use including relevant borrowing costs for qualifying assets and any expected costs of decommissioning Expenditure incurred after the property, plant ana equipment have been put into operation such as repairs and maintenance are charged to Statement of Profit and Loss in the period in which the costs are Incurred

ii| Major shutdown or overhaul expenditure is capitalised as the activities undertaken improve the economic benefits expected to arise from the asset

iil) An item oT property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset Any gain or Joss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between ine sale proceeds and tnr; carrying amount of the asset arid is recognised m the Statement of Profil and Loss

iv> Assets in She course of construction ara capitalised m the assets undar capital work in progress account (CWIP; At the point when an asset is opEraung a: management's intended use Ihe cost of construction is t ran stoned to (he appropriate category of property, plant and equipment and daprecration commences Where an obligation (legal or consbuctivei exists to dismantle or remove an asset or restore a site tc its former condition si the end of its useful life the present value ot the

estimated cos' of dismantling rEmovmg or restoring the site is capitalized along with the cast of acquisition or cons]faction upon completion and a tottespending liability Is recognized. Revenue generate a from production dunng ihe trial period is capitalised

V) For transition to tnd AS, Ihe company hat elected to adopt fair value of the buildings. olant and equipment recognised asotApol 1, 2Qffi as the deemed cost asoTthe transition date The carrying value of other assets as per the previous GAAP is considered as deemed cost.

2.6 I ntangibfe As sets:

Intangible assets with finite useful lifqfi that ere acquired separately are earned at cost lass accumulated amortisation ana accumulated impairment losses Intangible assets with indefinite useful lifes are carried at cost less accumulated Impairment losses

Certain computer software costs are capitated and recognised as intangible assets based on materiality, accounting prudence and significant benefits expected to flow there from for a period longer than one year

2.7 Depreciation ! amortisation;

Depreciation i$ recognised so as to write off the cost of assets father than freehold lend and properties under const ruction j less their residual values over therr useful lifes using the straight-1 me method

Amortisation IS recognised on a straight line basis over their estimated useful lifes The estimated useTut life and amortisation method are reviewed at the end of each repotting period with the effect of any changes ir, estimate being accounted for on a prospective basis

Assets held under finance leases are depreciated over their expected useful Ides on the same basis as owned assets However, when there is no reasonable certainty (hat ownership will be obtained by Ihe end of the lease term assets are depreciated over the shorter of the lease temn end then useful lifes.

Estimated useful life of the assets are as follows:

Class of Property, Plant and Equipment Useful fife

As per the Companies Act

2.B Impairment of tangible and intangible assets other Hi an y oodwi If

Al the end of each reporting period the Company reviews the carrying amounts of its tangible and intangible assets to determine whether (hern is any indication that those assets have suffered an impairment loss. II any Such indication exists the recoverable amount of the asset is estimated In order to determine the extent of the impairment loss tif any!

Recoverable amount is the higher of fair value less costs of disposal and value m use. In assessing value m use the estimated future cash flows are discounted to their present value using a pre-tax discount rate thal reflects current market assessments of Ihe lime value of money ahd the risks specific to ihe asset for which the estimates of future cash flows have not been adjusted.

tf the recoverable amount of an asset (oi cash-gene rating unit) is estimated to be less than rts carrying amount, the carrying amount of the asset for cash-generating unit) is reduced to its recoverable amount An impairment loss is recognised immediately in Statement of Profit and Loss

When an impairment loss subsequently reverses, rhe carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed Ihe carrying amount that would have been determined had no impairment loss been recognised for tiie asset ior cash-generating unitj in prior years A reversal of an impairment toss is recognised immediately in profit or toss

2,9 Sorrowing Cost:

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are

capitalised as part of the cost of the asset Other borrowing costs are recognized as an expanse in the period m wh^h they are intruded

2.10 Inventories:

Cost of inventories includes cost of purchase, costs of conversion and other costs incurred in bringing the inventories to their present Joe at ion and condition Inventories of stores spare parts coal fuel and loose toots are stated at the lower Df weighted average cost and net realizable value Met realisable value represents the estimated setting, price tor inventories in the ordinary course ot business less all estimated costs of completion and estimated costs necessary to make the sale

2.11 Em ptoy ee Be n efits:

All employee benefits payable Within twelve months of tendering the service are classified as short term employee benefits Short term employee benefils in the nature of salery wages, bonus, leave encashment dnd the expected easi of ex-gratia are recognized and accounted for on accrual basis in The period In which the employee renders the related service

Provident Fund and Employees State Insurance Scheme is a dafined contribution plan each eligible employee and the company makes epual contributions at a percentage on the basic salary specified tinder the Employees Provident Fund and Miscellaneous Provision Act. 1952 and Employees State Insurance Acl 1948 respectively The company's contributions are charged lo the profit and loss account iti the year when the contributions to the respective funds are due The company has no further obligations under the plan beyond its periodic contributions.

2.12 Taxation:

Income tax expense represents the sum of the tax currently payahre and deferred lax

2.12.1 Current Tax:

The Lax currently payable is based on taxable profit for the year Taxable profit differs from profit before tax as reported m the statement of pro lit and loss because of hems of income or expense that are taxable ar deductible in other years and items that are never taxable or deductible The Groups current tax is calculated using tax rates thai have been enacted or substantively enacted by the end of the reporting period

2.12.2 Deferred Tax:

Deferred tax Is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax hoses used in the computation of taxable profit Deferred tax liabilities are generally recognised for all taxable temporary differences Deferred tax assets are generally recognised for alt deductible temporary differences to the extent that U is probable that taxable profits will be available against which those deductible temporary differences can be utilised Such oeferred tax assets and liabilities are not recognised il the temporary difference arises from the initial recognition (other than m a business combination! of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill Deferred tax liabilities are recognised for laxahle temporary differences associated with investments in subsidiaries ahef associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse m the foreseeable future- Deferred tax asset? arising from deductible temporary differences associated with such investments and interest are only recognised to the extent lhat it is probable that Iheie will be suffrcienl taxable profits against which to utilise the benefits of the temporary differences and they arc-expected to reverse In the foreseeable future

The carryihg amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable lhat sufficient taxable profits Will bo available to allow all or part of the asset to be recovered

Deferred tax liabilities and assets are measured at the tax rates that are exp acted to apply In the period m which the liability is settled or the asset realised based on tax iates land tax laws) that have heeri enacted or substantively enacted by the end oMhe reporting pehod

The measurement of deterred tax liabifilies and assets reflects the tax consequences that would follow from the manner in whrch the Group expects, at the end of the reporting period, to recover or settle the carrying amount of rts assets and liabilities

2.13 Cash and cash equivalents:

Cash and cash equivalents in ihe balance sheet comprise cash at banks and on hand and short-term deposits with an original matuniv of three monihs or less, which are subject to an m&ignrhcanl- risk of changes in value For the purpose of the statement of cash Mows, cash anq cash Equivalents consist of cash and shorl-term deposits, as defined above net of outstanding bank overdrafts as they are considered an mlegral part of the Company's cash management