Polycab India Limited — Annual Report 2025

May 6, 2025

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Date: 06[th] May 2025

To Department of Corporate Services BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001

To Listing Department National Stock Exchange of India Limited C-1, G-Block, Bandra-Kurla Complex Bandra (E), Mumbai – 400 051

Scrip Code: 542652 Scrip Symbol: POLYCAB ISIN: INE455K01017

Dear Sir(s) / Madam,

Subject: Submission of Audited (Standalone and Consolidated) Financial Statements for the year ended 31[st] March 2025.

With reference to the captioned subject, please find enclosed herewith the Audited (Standalone and Consolidated) Financial Statements of the Company along with Auditors Report for the year ended 31[st] March 2025 as approved by the Board of Directors at its meeting held today i.e. 06[th] May 2025.

Kindly take the same on your record.

Thanking you Yours Faithfully For Polycab India Limited

MANITA Digitally signed by MANITA CARMEN ALBERT GONSALVES DN: c=IN, postalCode=400104, st=MAHARASHTRA, street=FLAT NO 8BUILDING NO 9PIRAMAL NAGAR S V ROADMUMBAIBESIDES PATEL PETROL PUMP 400104, l=MUMBAI, o=Personal, title=9350, serialNumber=e9923616fb581748338360a9dcca7ddbef5379 CARMEN ALBERT 2338962e492591c02f91606f5f, pseudonym=935020230512111157429, 2.5.4.20=d6b37cc9b008ba4c44a5e26aead891e74cc85aea24a 8e6ad4562fa78a0802a6d, GONSALVES email=MANITA.GONSALVES@POLYCAB.COM, cn=MANITA CARMEN ALBERT GONSALVES Date: 2025.05.06 14:32:38 +05'30'

______ Manita Carmen A. Gonsalves Vice President Legal and Company Secretary Membership No.: A18321 Address: #29, The Ruby, 21[st] Floor Senapati Bapat Marg, Tulsi Pipe Road, Dadar(W), Mumbai-400028

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Registered Office: Unit 4, Plot No 105, Halol Vadodara Road, Village Nurpura, Taluka Halol, Panchamahal, Gujarat 389 350 Tel: 2676- 227600 / 227700

Corporate Office: Polycab India Limited CIN: L31300GJ1996PLC114183 #29, The Ruby, 21[st] Floor, Senapati Bapat Marg, Tulsi Pipe Road, Dadar (West), Mumbai 400 028 Tel: +91 22 6735 1400 Email: shares@polycab.com Web: www.polycab.com

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Audited Consolidated Financial Statements FY 2024-25

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Polycab India Limited

Audited Consolidated Financial Statements for the year ended 31 March 2025

Index	Page No.
Auditor's Report	1
Balance Sheet	12
Statement of Profit and Loss	13
Statement of Changes in Equity	14
Statement of Cash Flows	15
Overview and notes to the financial statements
A Overview
1 Corporate Information	17
2A Basis ofpreparation	17
2B Use of estimates andjudgements	20
2C Changes in material accounting policyinformation	21
2D Recentpronouncements	21
2E Material accounting policyinformation disclosed in subsequent notes	21
B Notes to financial statements
3 Property, plant and equipment	22
4 Investment PropertyUnder Construction	24
5 Right of use assets	25
6 Intangible assets	26
7 Investment	28
8 Trade receivables	30
9 Cash and cash equivalents	31
10 Bank balance other than cash and cash equivalents	31
11 Loans	31
12 Other financial assets	32
13 Income Tax	32
14 Other assets	34
15 Inventories	34
16 Equityshare capital	35
17 Other equity	38
18 Non-controllinginterests	39
19 Borrowings	40
20 Lease liabilities	41
21 Acceptances	41
22 Tradepayables	42
23 Other financial liabilities	43
24 Other liabilities	43
25 Provisions	44
26 Revenue from operations	45
27 Other income	47
28 Cost of materials consumed	48
29 Purchases of stock-in-trade	48
30 Changes in inventories of finishedgoods,stock-in-trade and work-in-progress	48
31 Project bought outs and subcontractingcost	48
32 Employee benefits expense	49
33 Finance cost	53
34 Depreciation and amortisation expense	53
35 Other expenses	53
36 Earningsper share	54
37 Contingent liabilities and commitments	55
38 Income Tax	55
39 Relatedpartydisclosure	56
40 Segment Reporting	58
41 Information for Consolidated Financial Statementpursuant to Schedule III of the Companies Act,2013	60
42 Financial Instruments and Fair Value Measurement	61
43 Financial Risk Management Objectives And Policies	65
44 Hedgingactivityand derivatives	68
45 Financialperformance ratios	70
46 Struck off company	70
47 Capital management	71
48 Environmental,Social and Governance(ESG)	71
49 Scheme of Amalgamation	71
50 Events after the reporting period	71
51 Others	71

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Polycab India Limited

Consolidated Balance Sheet as at 31 March 2025

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Polycab India Limited Consolidated Balance Sheet as at 31 March 2025	Polycab India Limited Consolidated Balance Sheet as at 31 March 2025	Polycab India Limited Consolidated Balance Sheet as at 31 March 2025
(₹ million)
As at As at 31 Mar 25 31 Mar 24 (Audited) (Audited) Notes
ASSETS
Non-current assets
Property, plant and equipment 3	27,913.26	21,677.57
Capital work-in-progress 3	7,081.44	5,784.46
InvestmentProperty underConstruction 4	790.08	762.98
Right of use assets 5	1,309.71	728.26
Goodwill 6A	-	46.22
Other intangible assets 6B	98.45	160.17
Investments accountedforusing the equitymethod 7A	-	-
Financialassets
(a) Tradereceivables 8	2,994.38	1,190.70
(b) Other financialassets 12A	712.41	311.34
Non-current taxassets (net) 13D	503.73	297.08
Deferred taxassets (net) 13F	240.40	128.69
Other non-current assets 14A	2,893.54	2,561.76
	44,537.40	33,649.23
Current assets
Inventories 15	36,613.00	36,751.14
Financialassets
(a) Investments 7B	17,490.42	18,224.17
(b) Tradereceivables 8	25,962.68	20,471.17
(c) Cashand cashequivalents 9	2,173.87	3,070.31
(d) Bankbalance otherthancashand cashequivalents 10	5,532.49	953.27
(e) Loans 11	111.00	106.26
(f) Other financialassets 12B	1,147.49	335.52
Othercurrent assets 14B	4,159.01	7,227.77
	93,189.96	87,139.61
Total assets	1,37,727.36	1,20,788.84
EQUITY AND LIABILITIES
Equity
(a) Equityshare capital 16	1,504.26	1,502.36
(b) Otherequity 17	96,745.99	80,368.98
	98,250.25	81,871.34
Non-controllinginterests 18	817.69	562.07
	99,067.94	82,433.41
Liabilities
Non-current liabilities
Financial liabilities
(a) Borrowings 19A	419.40	226.04
(b) Leaseliabilities 20A	709.34	244.96
(c) Other financial liabilities 23A	105.03	537.66
Provisions 25A	413.15	438.77
Deferred tax liabilities (net) 13F	1,025.03	543.71
Other non-currentliabilities 24A	886.01	422.86
	3,557.96	2,414.00
Current liabilities
Financial liabilities
(a) Borrowings 19B	670.64	671.70
(b) Leaseliabilities 20B	224.99	468.23
(c) Acceptances 21	13,062.37	18,619.66
(d) Trade payables 22
Totaloutstanding dues of micro enterprises and smallenterprises	1,503.85	748.27
Totaloutstanding dues ofcreditors otherthan micro enterprises and smallenterprises	12,791.34	9,265.32
(e) Other financial liabilities 23B	2,988.22	2,420.84
Other current liabilities 24B	3,075.51	3,145.03
Provisions 25B	628.95	476.94
Current tax liabilities (net) 13D	155.59	125.44
	35,101.46	35,941.43
Total equity and liabilities	1,37,727.36	1,20,788.84
Corporate information and summaryof material accounting policyinformation 1 & 2
Contingent liabilities and commitments 37
Other notes to accounts 38 to 51

The accompanying notes are an integral part of the consolidated financial statements.

As per our report of even date

For B S R & Co. LLP

Chartered Accountants ICAI Firm Registration No. 101248W/W-100022

For and on behalf of the Board of Directors of

Polycab India Limited

CIN : L31300GJ1996PLC114183

sd/-

Sreeja Marar Partner Membership No. 111410

sd/-

sd/-

Inder T. Jaisinghani Bharat A. Jaisinghani Chairman & Managing Director Whole Time Director DIN : 00309108 DIN : 00742995

Bharat A. Jaisinghani

sd/-

Nikhil R. Jaisinghani

Whole Time Director DIN : 00742771

Place: Mumbai Date: 6 May 2025

sd/-

Gandharv Tongia Executive Director & CFO DIN : 09038711

Place: Mumbai Date: 6 May 2025

sd/-

Manita Gonsalves

Company Secretary Membership No. A18321

Page 12 of 71

Polycab India Limited

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Consolidated Statement of Profit & Loss for the year ended 31 March 2025

Consolidated Statement of Profit & Loss for the year ended 31 March 2025
		(₹ million)
Notes	Year ended 31 Mar 25 (Audited)	Year ended
		31 Mar 24
		(Audited)
INCOME
Revenuefromoperations 26	2,24,083.13	1,80,394.44
Other income 27	2,076.36	2,208.75
Total income	2,26,159.49	1,82,603.19
EXPENSES
Cost of materials consumed 28	1,54,173.73	1,26,615.96
Purchases ofstock-in-trade 29	6,076.37	5,658.67
30 Changes in inventories of finished goods, stock-in-trade and work-in-progress	(4,518.64)	(4,215.09)
Project bought outs and subcontracting cost 31	12,568.87	4,743.47
Employee benefits expense 32	7,367.26	6,095.42
Finance costs 33	1,689.28	1,083.40
Depreciationand amortisationexpense 34	2,981.03	2,450.40
Otherexpenses 35	18,813.14	16,577.96
Total expenses	1,99,151.04	1,59,010.19
Profit before share ofprofit /(loss) ofjoint venture	27,008.45	23,593.00
Share of Profit/ (loss) ofjointventure (net oftax) (refer note7A(ii)) 7	-	-
Profit before tax	27,008.45	23,593.00
Tax expenses 13
Current tax	6,154.98	5,535.25
Deferred taxcharge	398.10	28.58
Total tax expenses	6,553.08	5,563.83
Profit for theyear	20,455.37	18,029.17
Other comprehensive income
Items that will not be reclassified toprofit or loss
Re-measurementloss ondefined benefit plans 32	(91.88)	(90.63)
Tax relating to items that will not be reclassified to profit or loss 13	23.07	22.80
Items that will be reclassified toprofit or loss
Exchange difference ontranslationof foreignoperations	15.21	(34.66)
Effective portionof losses on hedginginstrumentincash flow hedges	(21.52)	-
Tax relating toitems thatwillbereclassified to profit or loss 13	5.42	-
Other comprehensive income /(losses) for theyear, net of tax	(69.70)	(102.49)
Total comprehensive income for theyear, net of tax	20,385.67	17,926.68
Profit for theperiod attributable to:
Equity shareholders ofparent company	20,199.90	17,840.45
Noncontrollinginterests	255.47	188.72
	20,455.37	18,029.17
Other comprehensive expense for theyear attributable to:
Equity shareholders ofparent company	(69.85)	(102.32)
Noncontrollinginterests	0.15	(0.17)
	(69.70)	(102.49)
Total comprehensive Income for theyear attributable to:
Equityshareholders ofparent company	20,130.05	17,738.13
Non controllinginterests	255.62	188.55
	20,385.67	17,926.68
Earnings per share 36
Basic (Facevalue₹ 10 each) (in ₹)	134.34	118.93
Diluted (Facevalue₹ 10 each) (in ₹)	133.80	118.49
Weighted average equity shares used in computing earnings per equity share
Basic (in number)	15,03,64,869	15,00,14,272
Diluted (in number)	15,09,74,137	15,05,66,475
Corporate information and summaryof material accounting policyinformation 1 & 2
Contingent liabilities and commitments 37
Other notes to accounts 38 to 51

The accompanying notes are an integral part of the consolidated financial statements.

As per our report of even date For B S R & Co. LLP Chartered Accountants ICAI Firm Registration No. 101248W/W-100022

For and on behalf of the Board of Directors of Polycab India Limited CIN : L31300GJ1996PLC114183

sd/-

Sreeja Marar Partner Membership No. 111410

Place: Mumbai Date: 6 May 2025

sd/sd/-

Inder T. Jaisinghani

Bharat A. Jaisinghani Whole Time Director DIN : 00742995

Chairman & Managing Director DIN : 00309108

sd/-

Place: Mumbai Date: 6 May 2025

Gandharv Tongia Executive Director & CFO DIN : 09038711

sd/-

Nikhil R. Jaisinghani Whole Time Director DIN : 00742771

sd/-

Manita Gonsalves Company Secretary Membership No. A18321

Page 13 of 71

Polycab India Limited

Consolidated Statement of Changes in Equity for year ended 31 March 2025

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A) Equity Share Capital (₹ million)	A) Equity Share Capital (₹ million)	A) Equity Share Capital (₹ million)
	31 Mar 25	31 Mar 24
Balance at the beginning of the year	1,502.36	1,497.65
Issue ofequity shares onexercise ofemployee stockoptions	1.90	4.71
Balance at the end of theyear	1,504.26	1,502.36

B) Other Equity

(₹ million)

		Attributable to owners of the Company	Attributable to owners of the Company	Attributable to owners of the Company	Attributable to Non Controlling Interest	Total Other Equity
	Share application money pending allotment	Reserves & Surplus	Other Comprehensive Income	Total attributable to owners of the Company
		Securities Premium General Reserve ESOP outstanding Retained Earnings	Effective portion of Cash Flow Hedges Foreign Currency translation reserve
As at 1 April 2023(Restated)	2.78	7,822.56 615.00 313.17 56,125.24	- (4.33)	64,874.42	373.77	65,248.19
Profit after tax for the year ended	-	- - - 17,840.45	- -	17,840.45	188.72	18,029.17
Items of OCI for the year ended, net of tax				-		-
Re-measurement (losses) on defined benefit plans	-	- - - (67.66)	- -	(67.66)	(0.17)	(67.83)
Exchange difference on translation of foreign operations	-	- - - -	- (34.66)	(34.66)	-	(34.66)
Final equity dividend	-	- - - (2,997.30)	- -	(2,997.30)	-	(2,997.30)
Share-based payments to employees	-	- - 564.24 -	- -	564.24	-	564.24
Transfer on account of employee stock options not exercised		2.02 (2.02) -	- -	-	-	-
Exercise of employee stock option	181.13	- - (181.13) -	- -	-	-	-
Amount received on exercise of employee stock options	193.95	- - - -	- -	193.95	-	193.95
Acquisition of non-controlling interest		- - - 0.25	- -	0.25	(0.25)	-
Issue of equity shares on exercise of employee stock options	(369.15)	364.44 - - -	- -	(4.71)	-	(4.71)
As at 31 March 2024	8.71	8,187.00 617.02 694.26 70,900.98	- (38.99)	80,368.98	562.07	80,931.05
Profit after tax for the year ended	-	- - - 20,199.90	- -	20,199.90	255.47	20,455.37
Items of OCI for the year ended, net of tax
Re-measurement gains / (losses) on defined benefit plans	-	- - - (68.96)	- -	(68.96)	0.15	(68.81)
Exchange difference on translation of foreign operations	-	- - - -	- 15.21	15.21	-	15.21
Effective portion of gains/ (losses) on hedging instrument in cash flow hedges	-	- - - -	(16.10) -	(16.10)	-	(16.10)
Final equity dividend	-	- - - (4,510.84)	- -	(4,510.84)	-	(4,510.84)
Share-based payments to employees	-	- - 687.00 -	- -	687.00	-	687.00
Transfer on account of employee stock options not exercised	-	- 14.70 (14.70) -	- -	-	-	-
Exercise of employee stock option	358.36	- - (358.36) -	- -	-	-	-
Amount received on exercise of employee stock options	72.70	- - - -	- -	72.70	-	72.70
Issue of equity shares on exercise of employee stock options	(438.63)	436.73 - - -	- -	(1.90)	-	(1.90)
As at 31 March 2025	1.14	8,623.73 631.72 1,008.20 86,521.08	(16.10) (23.78)	96,745.99	817.69	97,563.68

Refer note 17 and 18 for nature and purpose of reserves.

The accompanying notes are an integral part of the consolidated financial statements.

As per our report of even date

For B S R & Co. LLP

For and on behalf of the Board of Directors of Polycab India Limited CIN : L31300GJ1996PLC114183

Chartered Accountants ICAI Firm Registration No. 101248W/W-100022

sd/sd/sd/-

sd/-

Sreeja Marar Partner Membership No. 111410

Place: Mumbai Date: 6 May 2025

Inder T. Jaisinghani Bharat A. Jaisinghani Nikhil R. Jaisinghani Chairman & Managing Director Whole Time Director Whole Time Director DIN : 00309108 DIN : 00742995 DIN : 00742771

sd/-

sd/-

Place: Mumbai Manita Gonsalves Date: 6 May 2025 Company Secretary Membership No. A18321

Gandharv Tongia Executive Director & CFO DIN : 09038711

Page 14 of 71

Polycab India Limited

Consolidated Statement of Cash Flows for year ended 31 March 2025

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Accounting policy

Cashflows are reported using the indirect method as set out in Ind AS 7, 'Statement of Cash Flows', whereby profit for the year is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cashflows. The cash flows from operating, investing and financing activities of the Group are segregated.

Cash and cash equivalents for the purposes of statement of cash flows comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value and having original maturities of three months or less from the date of purchase.

For the purposes of statement of cash flows, cash and cash equivalents consist of cash in hand, balances with bank which are unrestricted for withdrawal and usage and short-term deposits as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group cash management (Refer note 9).

	(₹ million)	(₹ million)
	Year ended 31 Mar 25 (Audited)	Year ended 31 Mar 24 (Audited)
A. Cash Flows From Operating Activities
**Profit before tax **	27,008.45	23,593.00
Adjustmentsfor:
Depreciation and amortisation expense	2,981.03	2,450.40
Loss/(Gain) on disposal of property, plant and equipment	32.85	(1.93)
Gain on termination of lease	(1.01)	(1.60)
Interest income on financial assets	(328.60)	(331.20)
Income on government grants	(193.50)	(186.93)
Gain on redemption of investment	(1,162.95)	(815.04)
Fair valuationgain Mark-To-Market('MTM')of investment	(59.10)	(64.82)
Finance cost	1,689.28	1,083.40
Employees share based payment expenses	687.00	564.24
(Gain)/Loss on fair valuation of financial assets	(44.20)	145.63
Impairment of Goodwill	46.22	-
Impairment allowance for trade receivable considered doubtful	190.06	304.08
Impairment allowance for contract assets	29.87	9.58
Unrealised (Gain)/Loss on foreign exchange (net)	(335.98)	46.16
Sundry balances (written back) / written off	(23.14)	0.53
Operating profit before working capital changes	30,516.28	26,795.50
Movements in working capital:
Increase in trade receivables	(7,360.94)	(8,886.24)
Decrease/(Increase) in inventories	138.14	(7,237.30)
Increase in financial assets	(657.53)	(526.48)
Decrease/(Increase) in non-financial assets (including contract assets)	2,950.70	(984.90)
(Decrease)/Increase in Acceptances	(5,557.29)	6,362.10
Increase in trade payables	4,531.65	1,776.50
(Decrease)/Increase in financial liabilities	(92.77)	980.24
Increase in provisions	34.51	107.77
(Decrease)/Increase in non-financial liabilities (including contract liabilities)	(85.93)	318.38
Cash generated from operations	24,416.82	18,705.57
Income tax paid (including TDS) (net of refunds)	(6,331.48)	(5,743.17)
Net cash generated from operating activities (A)	18,085.34	12,962.40
B. Cash Flows From Investing Activities
Purchase of property, plant and equipment (including CWIP)	(9,696.34)	(8,529.55)
Purchase of other intangible assets	(1.00)	(55.64)
Purchase of Investment Property	(27.10)	-
Proceeds from sale of property, plant and equipment	141.07	5.47
Investment in mutual funds	(1,14,167.87)	(1,27,603.50)
Proceeds from sale of mutual funds	1,16,123.67	1,23,764.15
Bank deposits placed	(5,615.72)	(2,635.12)
Bankdepositsmatured	630.90	7,090.81
Loan given to employees	(4.74)	(2.79)
Interest received	223.99	447.40
Net cash used in investing activities (B)	(12,393.14)	(7,518.77)
C. Cash Flows From Financing Activities
Amount received on exercise of employee stock options	72.70	193.95
Payment of principal portion of lease liabilities (includes upfront lease payment)	(588.78)	(206.04)
Payment of interest on lease liabilities	(69.17)	(42.40)
Repayment of long term borrowings	(66.87)	(26.40)
Proceeds from long term borrowings	310.66	231.75
Proceeds from short term borrowings	254.40	(11.09)
Interest and other finance cost paid	(1,684.85)	(1,016.60)
Payment of dividends	(4,510.84)	(2,997.30)
Net cash used in financing activities (C)	(6,282.75)	(3,874.13)
Net (decrease)/increase incash and cash equivalents (A+B+C)	(590.55)	1,569.50
Cash and cash equivalents at the beginning of the year (net of cash credit)	2,764.42	1,194.92
Cash and cash equivalents at end of the year (net of cash credit) (Refer below note)	2,173.87	2,764.42

Page 15 of 71

Polycab India Limited

Consolidated Statement of Cash Flows for year ended 31 March 2025

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		Year ended 31 Mar 25 (Audited)	Year ended 31 Mar 24 (Audited)
Supplementary Information
(a)	Cash Transactionsfromoperating activities:
	Spent towards Corporate Social Responsibility	188.06	264.33
(b)	Non-Cash Transactionsfrom Investing andFinancingActivities:
	Acquisitionofproperty, plant and equipment bymeans ofGovernment Grant	673.05	453.50
(c)	Acquisition of right of use assets	899.01	572.56
(d)	Termination of right of use assets	239.58	107.09
		Year ended	Year ended 31 Mar 24 (Audited)
		31 Mar 25
		(Audited)
Cash and cash equivalents comprises of
Balanceswithbanks
Incurrent accounts		1,726.93	1,780.16
Depositswithoriginal maturity of less than3months		446.70	1,290.10
Cash in hand		0.24	0.05
Cash and cash equivalents(Refer note 7)		2,173.87	3,070.31
CashCreditfrombanks (Secured) (Refer note 9B)		-	(305.89)
Cash and cash equivalents in Cash Flow Statement		2,173.87	2,764.42
Net debt reconciliation		Refer noteno. 19
Net lease liabilities reconciliation		Refer noteno.5
Corporateinformationand summary of materialaccounting policyinformation 1 & 2
Contingentliabilities and commitments 37
Other notes to accounts 38 to 51

The accompanying notes are an integral part of the consolidated financial statements.

For and on behalf of the Board of Directors of

As per our report of even date For B S R & Co. LLP Chartered Accountants ICAI Firm Registration No. 101248W/W-100022

sd/-

Sreeja Marar Partner Membership No. 111410

Place: Mumbai Date: 6 May 2025

Polycab India Limited

CIN : L31300GJ1996PLC114183

sd/-

Inder T. Jaisinghani Chairman & Managing Director DIN : 00309108

sd/Gandharv Tongia Executive Director & CFO DIN : 09038711

sd/-

Bharat A. Jaisinghani Whole Time Director DIN : 00742995

Place: Mumbai Date: 6 May 2025

sd/-

Nikhil R. Jaisinghani Whole Time Director DIN : 00742771

sd/-

Manita Gonsalves

Company Secretary Membership No. A18321

Page 16 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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1. Corporate information

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

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

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

The Board of Directors approved the Consolidated Financial Statements for the year ended 31 March 2025 and authorised for issue on 6 May 2025.

2. Summary of material accounting policy information A) Basis of preparation i Statement of Compliance:

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

ii Basis of Measurement:

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

(a) Certain financial assets and liabilities (including derivative instruments) (Refer note 42 for accounting policy regarding financial instruments) (b) Net defined benefit plan where plan assets are measured at fair value (Refer note 32 for accounting policy)

(c) Share-based payments at fair value as on the grant date of options given to employees (Refer note 32 for accounting policy) In addition, the carrying values of recognised assets and liabilities designated as hedged items in fair value hedges that would otherwise be carried at amortised cost are adjusted to record changes in the fair values attributable to the risks that are being hedged in effective hedge relationships.

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

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

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

iii Basis of consolidation

The Consolidated Financial Statements comprise the financial statements of the Parent Company along with its subsidiaries and joint ventures as at 31 March 2025. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has:

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

(b) Exposure, or rights, to variable returns from its involvement with the investee and (c) The ability to use its power over the investee to affect its returns Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

(a) The contractual arrangement with the other vote holders of the investee

(b) Rights arising from other contractual arrangements (c) The Group’s voting rights and potential voting rights (d) The size of the group’s holding of voting rights relative to the size and dispersion of the holdings of the other voting rights holders.

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the Financial Statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Page 17 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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2. Summary of material accounting policy information

• Consolidated Financial Statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances. If a member of the group uses accounting policies other than those adopted in the Consolidated Financial Statements for like transactions and events in similar circumstances, appropriate adjustments are made if amount is material to that group member’s financial statements in preparing the Consolidated Financial Statements to ensure conformity with the group’s accounting policies.

The financial statements of Group entities used for the purpose of consolidation are drawn up to same reporting date as that of the parent company, i.e., year ended on 31 March 2025. When the end of the reporting period of the parent is different from that of a subsidiary, the subsidiary prepares, for consolidation purposes, additional financial information as of the same date as the financial statements of the parent to enable the parent to consolidate the financial information of the subsidiary, unless it is impracticable to do so.

Consolidation procedure:

(a) Subsidiaries

Group combines like items of assets, liabilities, equity, income, expenses and cash flows of the parent with those of its subsidiaries. For this purpose, income and expenses of the subsidiary are based on the amounts of the assets and liabilities recognised in the Consolidated Financial Statements at the acquisition date.

Offset (eliminate) the carrying amount of the parent’s investment in each subsidiary and the parent’s portion of equity of each subsidiary. Business combinations policy explains how to account for any related goodwill.

Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between entities of the group (profits or losses resulting from intragroup transactions that are recognised in assets, such as inventory and fixed assets, are eliminated in full). Intragroup losses may indicate an impairment that requires recognition in the Consolidated Financial Statements. Ind AS 12 Income Taxes applies to temporary differences that arise from the elimination of profits and losses resulting from intragroup transactions.

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it:

• Derecognizes the assets (including goodwill) and liabilities of the subsidiary

• Derecognizes the carrying amount of any non-controlling interests

• Derecognizes the cumulative translation differences recorded in equity

• Recognizes the fair value of the consideration received

• Recognizes the fair value of any investment retained

• Recognizes any surplus or deficit in profit or loss

• Reclassifies the parent's share of components previously recognized in OCI to profit or loss or retained earnings, as appropriate, as would be required if the Group had directly disposed of the related assets or liabilities

Non-controlling interests (NCI) in the results and equity of subsidiaries are shown separately in the Consolidated Statement of Profit and Loss, Consolidated Statement of changes in equity and Balance Sheet respectively.

NCI are measured at their proportionate share of the acquiree's net identifiable assets at the date of acquisition. Changes in the Group's equity interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

When the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, and any related NCI and other components of equity. Any interest retained in the former subsidiary is measured at fair value at the date the control is lost. Any resulting gain or loss is recognized in profit or loss.

(b) Joint Ventures

A joint venture is a type of a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

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

The Group’s investments in its joint venture are accounted for using the equity method. Under the equity method, the investment in a joint venture is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the joint venture since the acquisition date. Goodwill relating to the joint venture is included in the carrying amount of the investment and is not tested for impairment individually.

The statement of profit and loss reflects the Group’s share of the results of operations of the joint venture. Any change in OCI of those investees is presented as part of the Group’s OCI. In addition, when there has been a change recognised directly in the equity of the joint venture, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and joint venture are eliminated to the extent of the interest in the joint venture.

If an entity’s share of losses of a joint venture equals or exceeds its interest in the joint venture (which includes any long term interest that, in substance, form part of the Group’s net investment in the joint venture), the entity discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture. If the joint venture subsequently reports profits, the entity resumes recognising its share of those profits only after its share of the profits equals the share of losses not recognised.

Page 18 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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2. Summary of material accounting policy information

The aggregate of the Group’s share of profit or loss of a joint venture is shown on the face of the consolidated statement of profit and loss.

The financial statements of the joint venture are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its joint venture. At each reporting date, the Group determines whether there is objective evidence that the investment in the joint venture is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value, and then recognizes the loss as ‘Share of profit of a joint venture’ in the consolidated statement of profit or loss.

Upon loss of significant influence over the joint control over the joint venture, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the joint venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from disposal is recognised in profit or loss.

(c) Foreign currency translation

• Exchange differences arising on settlement or translation of monetary items are recognized in profit or loss with the exception of the following:

• Exchange differences arising on monetary items that forms part of a reporting entity's net investment in a foreign operation are recognized in profit or loss in the Separate Financial Statements of the reporting entity or the individual Financial Statements of the foreign operation, as appropriate. In the Financial Statements that include the foreign operation and the reporting entity such exchange differences are recognized initially in OCI. These exchange differences are reclassified from equity to profit or loss on disposal of the net investment.

• Tax charges and credits attributable to exchange differences on those monetary items are also recorded in OCI.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or the statement of profit and loss are also recognized in OCI or the Statement of Profit and Loss, respectively).

Group companies

The consolidated financial statements are presented in Indian Rupee, which is the Parent Company’s functional and presentation currency and includes the financial position and results in respect of foreign operations, initially measured using the currency of the primary economic environment in which the entity operates (i.e their functional currency). On Consolidation, the assets and liabilities of foreign operations are translated into INR at the rate of exchange prevailing at the reporting date and their Statements of Profit or Loss are translated at exchange rates prevailing at the dates of the transactions. For practical reasons, the Group uses an average rate to translate income and expense items, if the average rate approximates the exchange rates at the dates of the transactions. The exchange differences arising on translation for Consolidation are recognized in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is recognized in profit or loss.

Any goodwill arising in the acquisition/ business combination of a foreign operation on or after 1 April 2016 and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operation and translated at the spot rate of exchange at the reporting date.

Foreign operations

The assets and liabilities of foreign operations (subsidiaries) including goodwill and fair value adjustments arising on acquisition, are translated into INR, the functional currency of the Group and its joint ventures, at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into INR at the exchange rates at the dates of the transactions or an average rate if the average rate approximates the actual rate at the date of the transaction.

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

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

Operating Cycle:

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

v Functional and Presentation Currency:

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

Page 19 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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2. Summary of material accounting policy information

B) Use of estimates and judgements

In the course of applying the policies outlined in all notes, the Group is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

Estimates and assumptions

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

i Revenue Recognition:

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

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

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

ii Cost to complete for long term contracts

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

iii Useful life of property, plant and equipment

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

iv Impairment of investments in joint- venture

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

v Provisions

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

vi Fair value measurement of financial instruments

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments (Refer note 42 for accounting policy on Fair value measurement of financial instruments).

vii Foreign Currency Transactions / Translations

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

Page 20 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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2. Summary of material accounting policy information

viii Impairment of non-financial assets

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

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

ix Employee benefits

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

Judgements

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

i Assessment of Lease term

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

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

ii Provision for income tax and deferred tax assets

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

iii Contingencies

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

C) Changes in material accounting policy information

The Group has applied new standards, interpretations and amendments issued and effective for annual periods beginning on or after 01 April 2024. This did not have any material changes in the Group Consolidated accounting policies.

D) Recent pronouncements

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

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

Page 21 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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3. Property, plant and equipment Accounting policy

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

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

Capital work-in-progress comprises of property, plant and equipment that are not ready for their intended use at the end of reporting period and are carried at cost comprising direct costs, related incidental expenses, other directly attributable costs and borrowing costs.

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

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

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

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

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

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

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

The changes in the carrying value of Property, plant and equipment	The changes in the carrying value of Property, plant and equipment	The changes in the carrying value of Property, plant and equipment	for the year ended 31 March 2025 are	for the year ended 31 March 2025 are	for the year ended 31 March 2025 are	as follows:					(₹ million)
	Freehold land	Buildings	Plant and equipments	Electrical installations	Furniture and fixtures	Office equipment s	Windmill	Vehicles	Lease- hold improve ments	Total	Capital Work in progress
Gross carrying value(at cost)
As at 01 April 2024	1,184.34	12,814.11	17,827.83	1,735.20	370.57	866.78	295.04	51.99	5.88	35,151.74	5,784.46
Additions	719.66	548.89	7,281.98	274.45	15.42	234.50	-	20.69	2.86	9,098.45	8,577.06
Transfer	-	-	-	-	-	-	-	-	-	-	(7,280.08)
Disposals/Adjustments	(82.49)	(74.21)	(145.01)	(16.60)	(11.29)	(21.30)	(0.61)	(5.42)	-	(356.93)	-
Foreign currencytranslation difference	-	-	0.37	-	0.00	0.10	-	(0.12)	0.04	0.39	-
As at 31 March 2025	1,821.51	13,288.79	24,965.17	1,993.05	374.70	1,080.08	294.43	67.14	8.78	43,893.65	7,081.44
Accumulated depreciation
As at 01 April 2024	-	2,311.25	9,818.00	615.09	135.92	422.80	141.46	25.54	4.11	13,474.17	-
Depreciation charge for theyear	-	435.12	1,887.76	152.90	30.61	159.45	15.72	6.59	0.67	2,688.83	-
Disposals/Adjustment	-	(19.69)	(121.50)	(12.35)	(6.53)	(19.12)	-	(3.45)	-	(182.64)	-
Foreign currencytranslation difference	-	-	0.03	-	0.00	0.01	-	(0.01)	0.00	0.03	-
As at 31 March 2025	-	2,726.68	11,584.29	755.64	160.00	563.14	157.18	28.67	4.78	15,980.39	-
Net carrying value
As at 31 March 2025	1,821.51	10,562.11	13,380.88	1,237.41	214.70	516.94	137.25	38.47	4.00	27,913.26	7,081.44

Page 22 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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3. Property, plant and equipment

Property, plant and equipment	Property, plant and equipment
The changesinthe carryingvalue of Property, plant		and equipment	forthe yearended 31 March 2024are			asfollows:					(₹ million)
	Freehold land	Buildings	Plant and equipments	Electrical installations	Furniture and fixtures	Office equipment s	Windmill	Vehicles	Lease- hold improve ments	Total	Capital Work in progress
Gross carrying value(at cost)
As at 01 April 2023	1,091.24	12,580.52	15,279.34	1,220.92	302.95	637.52	295.04	48.01	5.88	31,461.42	2,507.67
Additions	93.10	1,063.93	2,566.94	514.28	68.83	234.48	-	5.00	-	4,546.56	6,952.04
Transfer	-	(830.34)	-	-	-	-	-	-	-	(830.34)	(3,675.25)
Disposals/Adjustments	-	-	(18.45)	-	(1.21)	(5.22)	-	(1.02)	-	(25.90)	-
As at 31 March 2024	1,184.34	12,814.11	17,827.83	1,735.20	370.57	866.78	295.04	51.99	5.88	35,151.74	5,784.46
Accumulated depreciation
As at 01 April 2023	-	1,971.49	8,309.90	498.46	110.44	316.02	125.74	21.52	3.57	11,357.14	-
Depreciation charge for theyear	-	407.12	1,524.16	116.63	25.91	111.68	15.72	4.99	0.54	2,206.75	-
Transfer	-	(67.36)	-	-	-	-	-	-	-	(67.36)
Disposals/Adjustment	-	-	(16.06)	-	(0.43)	(4.90)	-	(0.97)	-	(22.36)	-
As at 31 March 2024	-	2,311.25	9,818.00	615.09	135.92	422.80	141.46	25.54	4.11	13,474.17	-
Net carrying value
As at 31 March 2024	1,184.34	10,502.86	8,009.84	1,120.11	234.65	443.98	153.58	26.45	1.77	21,677.57	5,784.46

Notes:

(a) Capital work in progress includes machinery in transit ₹ 215.94 million (31 March 2024: ₹ 394.91 million).

(b) All property, plant and equipment are held in the name of the Group, except which are shown below:

As at 31 March 2025

Gross carrying value (₹ million) Description of item of property Held in the name of Whether title deed holder is a promoter, director or relative of promoter / director or employee of promoter/director	Property held since which date Reason for not being held in the name of the Group
1.42 Freehold land- Daman Dinesh Gupta No	2008 Mutation isinprocess
As at 31 March 2024
Gross carrying value (₹ million) Description of item of property Held in the name of Whether title deed holder is a promoter, director or relative of promoter / director or employee of promoter/director	Property held since which date Reason for not being held in the name of the Group
1.42 Freehold land- Daman Dinesh Gupta No	2008 Mutation isinprocess

(c) Title deed is in dispute for freehold land amounting to ₹ 10.48 million (31 March 2024: ₹ 10.48 million) and is pending resolution with government authority at Gujarat.

(d) (e)	CWIPaging schedule as at 31 March 2025 (₹ million)
	Less than 1year 1-2years 2-3years More than 3years Total
	Projects inprogress
	4,672.38 824.40 354.34 0.26 5,851.38 Cable &WireProjects
	435.40 368.12 33.83 26.64 863.99 FMEGProjects
	221.38 32.24 46.32 66.13 366.07 Other Projects
	5,329.16 1,224.76 434.49 93.03 7,081.44
	CWIPaging schedule as at 31 March 2024 (₹ million)
	Less than 1year More than 3years Total 1-2years 2-3years
	Projects inprogress
	4,452.61 524.14 11.11 - 4,987.86 Cable &WireProjects
	430.73 48.60 44.69 - 524.02 FMEGProjects
	152.06 48.73 71.79 - 272.58 Other Projects
	5,035.40 621.47 127.59 - 5,784.46
	For the purpose of this disclosure, the Group has identified project as the smallest group of assets having a common intended use. Direct capitalisationof Property,Plant and equipments during the yearare givenas under: (₹ million) Freehold land Buildings Plant and equipments Electrical installations Furniture and fixtures Office equipment s Windmill Vehicles Lease- hold Improve ments Total FY 2024-25 719.66 0.05 991.42 5.93 8.29 73.23 - 19.79 - 1,818.37 FY 2023-24 93.10 3.26 610.33 11.18 28.97 119.45 - 5.00 - 871.29

(f) Transfer to Investment Property Under Construction as on 31 March 2025 of net amount Nil (31 March 2024: ₹ 762.98 million) (Refer note 4).

(g) In CWIP completion schedule: there is no significant overdue or cost exceeding compared to its original plan

(h) Assets pledged and hypothecated against borrowings- Refer note 19

(i) No proceedings have been initiated or are pending against the Group for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(j) For capital expenditures contracted but not incurred - Refer note 37(B).

Page 23 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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4. Investment Property Under Construction

Accounting policy

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

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

Transfers are made to (or from) investment property only when there is a change in use. If owner-occupied property becomes an investment property, the Parent Company accounts for such property in accordance with the policy stated under property, plant and equipment up to the date of change in use.

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

The Parent Company depreciates its investment properties over the useful life which is similar to that of property, plant and equipment.	The Parent Company depreciates its investment properties over the useful life which is similar to that of property, plant and equipment.	The Parent Company depreciates its investment properties over the useful life which is similar to that of property, plant and equipment.
(₹ million)
	31 Mar 25	31 Mar 24
Gross carrying value(at cost)
At the beginning ofthe year	762.98	-
Additions	27.10	-
Transfer	-	762.98
Disposals/Adjustments	-	-
At the end of theyear	790.08	762.98
Accumulated depreciation	- - -	- - -
At the beginning ofthe year
Depreciationchargeforthe year
Disposals/Adjustment
At the end of theyear	-	-
Net carrying value
At the end of theyear	790.08	762.98

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

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

The Parent Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements. Fair value hierarchy disclosures for investment properties are in Note 42B .

In accordance with Ind AS 113, the fair value of investment property is determined by the Parent Company at ₹ 847.00 million following the risk-adjusted discounted cash flow method and based on Level 3 inputs from an independent accredited valuation expert, as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017, with relevant valuation experience for similar properties. The fair valuation is mainly based on location and locality, current real estate prices in the active market for similar properties. The main inputs used are area, location, demand, weighted-average cost of capital and trend of real estate market at the location. As at 31 March 2025, the fair value of the land is based on valuations performed by Bharat Shah & Associates, an accredited independent registered valuer.

Page 24 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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5. Right of use assets Accounting policy

• i The Group as a lessee

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

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

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

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

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

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

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

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

ii The Group as a lessor

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

iii Finance lease

The Group has entered into land lease arrangement at various locations. Terms of such lease ranges from 15-90 years. In case of lease of land for 90 years and above, it is likely that such leases meet the criteria that at the inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset.

iv Others

• The following is the summary of practical expedients elected on initial application: (a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date

• (b) Applied the exemption not to recognize right-of-use assets and liabilities for short-term leases, variable lease and leases of low value assets. (c) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

Following are the changes in the carrying value of right of use for the year ended 31 March 2025

Following are the changesinthe carryingvalue of right ofuseforthe yearended 31 March 2025	(₹ million)
	Categoryof ROU asset		Total
	Leasehold Land	Buildings
Gross carrying value
As at 01 April 2024	44.54	984.23	1,028.77
Additions	394.76	504.25	899.01
Disposals	-	(239.58)	(239.58)
Foreign exchange translation difference	-	6.03	6.03
As at 31 March 2025	439.30	1,254.93	1,694.23
Accumulated depreciation
As at 01 April 2024	2.45	298.06	300.51
Depreciationchargeforthe year	1.94	227.54	229.48
Disposals	-	(145.47)	(145.47)
Foreign exchange translation difference	-	0.00	0.00
As at 31 March 2025	4.39	380.13	384.52
Net carrying value
As at 31 March 2025	434.91	874.80	1,309.71
	(₹ million)
	Leasehold Land Buildings Category of ROU asset Total
Gross carrying value
As at 01 April 2023	41.74 521.56 563.30
Additions	2.80 569.76 572.56
Disposals	- (107.09) (107.09)
As at 31 March 2024	44.54 984.23 1,028.77
Accumulated depreciation
As at 01 April 2023	1.96 199.52 201.48
Depreciation charge for the year	0.49 190.61 191.10
Disposals	- (92.07) (92.07)
As at 31 March 2024	2.45 298.06 300.51
Net carrying value
As at 31 March 2024	42.09 686.17 728.26
Thefollowingis the break-up ofcurrent andnon-currentleaseliabilitiesforthe yearended 31 March 2025	(₹ million)
		31 Mar 25	31 Mar 24
Non-current lease liabilities		709.34	244.96
Current lease liabilities		224.99	468.23
		934.33	713.19

Page 25 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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5. Right of use assets

Thefollowingis themovementin leaseliabilitiesforthe yearended 31 March 2025 (₹ million)	Thefollowingis themovementin leaseliabilitiesforthe yearended 31 March 2025 (₹ million)	Thefollowingis themovementin leaseliabilitiesforthe yearended 31 March 2025 (₹ million)
	31 Mar 25	31 Mar 24
Balance at the beginning of the year	713.19	363.29
Additions (includes upfront lease payment)	902.38	570.73
Finance cost incurred during the year	69.17	42.40
Deletions	(92.46)	(14.79)
Payment of lease liabilities (includes upfront lease payment)	(657.95)	(248.44)
	934.33	713.19

The table below provides details regarding the contractual maturities of lease liabilities of non-cancellable contractual commitments as on an undiscounted basis.

The table below provides details regarding the contractual maturities of lease liabilities of non-cancellable contractual commitments as on an undiscounted basis.	The table below provides details regarding the contractual maturities of lease liabilities of non-cancellable contractual commitments as on an undiscounted basis.	The table below provides details regarding the contractual maturities of lease liabilities of non-cancellable contractual commitments as on an undiscounted basis.
(₹ million)
	31 Mar 25	31 Mar 24
Less than one year	270.64	230.04
One to five years	537.14	511.24
More than five years	512.67	188.86
	1,320.45	930.14
The Group does not face a liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Thefollowing are the amountsrecognisedinprofit or loss: (₹ million)	Thefollowing are the amountsrecognisedinprofit or loss: (₹ million)	Thefollowing are the amountsrecognisedinprofit or loss: (₹ million)
	31 Mar 25	31 Mar 24
Depreciation expense of right-of-use assets	229.48	191.10
Interest expense on lease liabilities	69.17	42.40
Interest income on fair value of security deposit	(3.79)	(2.93)
Expense relating to short-term leases (included in other expenses)	107.47	57.44
Expense relating to leases of low-value assets (included in other expenses)	-	0.17
Variable lease payments (included in other expenses)	9.77	2.04
	412.10	290.22

Lease contracts entered by the Group majorly pertains for warehouse taken on lease to conduct its business in the ordinary course. The Group does not have any lease restrictions and commitment towards variable rent as per the contract.

The Group had total cash outflows for leases of ₹ 657.95 million in 31 March 2025 (₹ 248.44 Million in 31 March 2024).

Group as a lessor

Future undiscounted minimum rentals receivable under non-cancellable operating leases as at 31 March 2025 are as follows:

Group as a lessor Future undiscounted minimum rentals receivable under non-cancellable operating leases as at 31 March 2025 are as follows:	Group as a lessor Future undiscounted minimum rentals receivable under non-cancellable operating leases as at 31 March 2025 are as follows:	Group as a lessor Future undiscounted minimum rentals receivable under non-cancellable operating leases as at 31 March 2025 are as follows:
(₹ million)
	31 Mar 25	31 Mar 24
Less than one year	7.90	9.81
One to five years	1.75	7.69
More than five years	0.10	-
	9.75	17.50

6. Intangible assets

A Goodwill

Accounting policy

Goodwill is measured at cost, being the excess of the aggregate of the consideration transferred, the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

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

Based on the results of the assessment, goodwill impairment recorded during the current year is ₹ 46.22 Mn (31 March 2024 - ₹ Nil).

	Goodwill	(₹ million)	(₹ million)
		31 Mar 25	31 Mar 24
	Opening	46.22	46.22
	Less: Impairment ofgoodwill	(46.22)	-
	Closing	-	46.22

Page 26 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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6. Intangible assets

B Other Intangible Assets Accounting policy

• i. Other intangible assets acquired separately

• Other intangible assets acquired are reported at cost less accumulated amortisation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use.

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

Assets	Useful life
Computer software	3 year
Technical Know-how	5 year
Brand	10 year

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

ii. Intellectual Property

Brands/trademarks acquired separately are measured on initial recognition at the fair value of consideration paid. Following initial recognition, brands/trademarks are carried at cost less any accumulated amortisation and impairment losses, if any. A brand/trademark acquired as part of a business combination is recognised outside goodwill, at fair value at the date of acquisition, if the asset is separable or arises from contractual or other legal rights and its fair value can be measured reliably. The useful lives of brands/trademarks are assessed to be either finite or indefinite. The assessment includes whether the brand/trademark name will continue to trade and the expected lifetime of the brand/trademark. Amortisation is charged on assets with finite lives on a straight-line basis over a period appropriate to the asset’s useful life. The carrying values of brands/trademarks with finite and indefinite lives are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. The Group does not have any brands/ trademarks with indefinite useful lives.

The Group owns 621 number as on 31 March 2025 (283 number as on 31 March 2024) registered trademarks pertaining to Brand, Sub-brands and Designs in India and International. The Parent Company has also entered into royalty agreements with few companies for use of Polycab brand on specific products and charges fees for the same. These intellectual property and royalty income are solely owned and earned by the Group and is not shared with any stakeholder. Intellectual Property has not been capitalised in the books as it does not meet the recognition criteria in Ind AS 38.

iii. Research and development expenditure

Expenditure on research and development activities is recognized in the Statement of Profit and Loss as incurred. Development expenditure is capitalized as part of cost of the resulting other intangible asset only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognized in Statement of profit or loss as incurred. Subsequent to initial recognition, the asset is measured at cost less accumulated amortisation and any accumulated impairment losses, if any. During the year, the Company has incurred Capital R&D expenditure amounting to ₹ 108.99 million (31 March 2024 ₹ 27.83 million) which have been included in property, plant and equipment. Further, Revenue R&D expenditure incurred amounting to ₹ 320.82 million (31 March 2024 ₹ 232.45 million) which have been charged to the respective revenue accounts.

iv. De-recognition of other intangible assets

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

The changes in the carrying value of other intangible assets for the year ended 31 March 2025 are as follows:

(₹ million)

	Technical Knowhow	Brand	Computer Software	Total
Gross carrying value (at cost)
As at 01 April 2024	218.85	46.35	185.51	450.71
Additions	-	-	1.00	1.00
Disposals/ Adjustments	-	-	-	-
As at 31 March 2025	218.85	46.35	186.51	451.71
Accumulated amortisation
As at 01 April 2024	145.11	15.46	129.97	290.54
Amortisation charge for the year	33.49	4.64	24.59	62.72
As at 31 March 2025	178.60	20.10	154.56	353.26
Net carrying value
As at 31 March 2025	40.25	26.25	31.95	98.45

The changes in the carrying value of Other intangible assets for year ended 31 March 2024 are as follows:

The changes in the carrying value of Other intangible assets for year	ended 31 March 2024 are as follows:
				(₹ million)
	Technical Knowhow	Brand	Computer Software	Total
Gross carrying value (at cost)
As at 01 April 2023	218.85	46.35	129.87	395.07
Additions	-	-	55.64	55.64
As at 31 March 2024	218.85	46.35	185.51	450.71
Accumulated amortisation
As at 01 April 2023	117.83	10.82	109.34	237.99
Amortisationchargeforthe year	27.28	4.64	20.63	52.55
As at 31 March 2024	145.11	15.46	129.97	290.54
Net carrying value
As at 31 March 2024	73.74	30.89	55.54	160.17

Note: The Other intangible assets include license and software of Gross carrying amount of ₹ 107.39 million (31 March 2024 ₹ 107.39 million) which has been fully amortized over the past periods and are being used by the Group.

Page 27 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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7. Investment

Accounting policy

• i. Investment in subsidiaries and joint ventures

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

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

• Exposure, or rights, to variable returns from its involvement with the investee

• The ability to use its power over the investee to affect its returns

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

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

Investments in subsidiaries and joint ventures are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed. Where the carrying amount of an investment is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is recognised in the Statement of Profit and Loss. On disposal of investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the Statement of Profit and Loss under 'Other Income' or 'Other Expenses'.

Interests in joint ventures are accounted for using the equity method of accounting, after initially being recognised at cost.

Equity method:

Under the equity method, the investment in joint venture is initially recognized at cost and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses of the investee in Group’s profit and loss, and the Group’s share of other comprehensive income of the investee in Group’s other comprehensive income.

On acquisition of the investment in an associate or a joint venture, any excess of the cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised directly in equity as capital reserve in the period in which the investment is acquired.

In addition, when there has been a change recognized directly in the equity of the joint venture, the Group recognizes its share of any changes, when applicable, in the Consolidated Statement of Changes in Equity. Unrealised gains resulting from transactions between the Group and the associate or joint venture are eliminated to the extent of the Group’s interest in the associate or joint venture. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

When the Group’s share of losses of a joint venture exceeds the Group’s interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate or joint venture), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. The Group resumes recognising its share of profits only after its share of the profits equals the share of losses not recognised.

The aggregate of the Group's share of profit or loss of a joint venture is shown on the face of the Consolidated Statement of Profit and Loss. The Financial Statements of the joint venture are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

At each reporting date, the Group determines whether it is necessary to recognize an impairment loss on its investment in its joint venture. The Group determines whether there is objective evidence that the investment in the joint venture is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value, and then recognizes the loss as 'Share of profit of a joint venture' in the Consolidated Statement of Profit and Loss. Goodwill relating to the joint venture is included in the carrying amount of the investment is not tested for impairment individually.

Upon loss of joint control over the joint venture, the Group measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the joint venture upon loss of joint control and the fair value of the retained investment and proceeds from disposal is recognized in profit or loss.

Business combination among entities under common control:

Business combination involving entities or businesses under common control is accounted for using the pooling of interest method. Under pooling of interest method, the assets and liabilities of combining entities are reflected at their carrying amount and no adjustments are made to reflect fair values.

Non-controlling interests:

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the recognised amounts of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in another Ind AS.

A Non-current investments

Non-current investments		(₹ million)
Face Value Per Unit Number		31 Mar 25	Number 31 Mar 24
Investments carried at amortised cost(Unquoted)
Investment in Equity Instruments of Joint Venture (Fully paid-up)
Techno Electromech Private Limited ₹ 10	40,40,000	-	40,40,000 -
Add: Share in current period profit/(loss)		-	-
		-	-
Aggregate amount of unquoted investments		105.20		105.20
Aggregate amount of impairment value /share of losses of investments		(105.20)		(105.20)
Details of the Group's Joint Ventures at the end of the reporting period are as follows:
Name of the Joint Ventures Nature of Business		Proportion of ownership interest(%)
			31 Mar 25	31 Mar 24
Manufacturing of light emitting diodes, lighting and LED drivers. Techno Electromech Private Limited, India		luminaires, and	50%	50%

Page 28 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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7. Investment Note:

• (i) The Group has entered into joint venture agreements with the co-venturer and hence the investment in the above entity is treated as Joint Venture. Both the venturers have joint control on the entities. Accordingly, the Group has consolidated the above Joint Ventures using equity method.

• (ii) The joint venture has accumulated losses as at 31 March 2025. The Group has recognised its share of losses upto the aggregate of its investments in shares in the joint venture. The Group will resume recognizing its share of surplus only after its share of the surpluses equals the share of deficits not recognized, if the joint venture subsequently reports profit. Group's share of loss is ₹ 7.98 million for the year ended 31 March 2025 (for the year ended 31 March 2024: ₹ 16.43 million). Unrecognized share of Group's loss up to 31 March 2025 is ₹ 161.39 million (31 March 2024: ₹ 153.41 million).

Summarised financial information of Joint Ventures:

The summarised financial information below represents the amount shown in the Joint Venture's financial statements prepared in accordance with Ind AS adjusted by the Group for equity accounting purposes.

for equity accounting purposes.	for equity accounting purposes.
			(₹ million)
			TEPL
			31 Mar 25	31 Mar 24
Non-current Assets			602.57	601.20
CurrentAssets			1,046.62	1,030.10
Non-current Liabilities			(207.90)	(186.73)
Current Liabilities			(1,571.18)	(1,558.49)
Net Assets			(129.89)	(113.92)
Proportion of the Group's ownership			50%	50%
Group's share of net assets			(64.95)	(56.96)
Summarised statement of profit and loss of the joint ventures :			(₹ million)
			TEPL
			31 Mar 25	31 Mar 24
Revenue			2,608.78	2,320.82
Cost of raw material and components consumed			(2,037.14)	(1,810.26)
Depreciation & amortisation			(36.43)	(32.84)
Finance cost			(38.42)	(46.60)
Employee benefit			(108.57)	(87.93)
Other expense			(404.03)	(379.64)
Loss before tax			(15.81)	(36.45)
Tax expense			-	-
Loss for the year			(15.81)	(36.45)
Other comprehensive (income)/losses for the year			(0.15)	3.59
Total comprehensive income for the year			(15.96)	(32.86)
Group's share of Loss for the year			(7.98)	(16.43)
Share of loss of joint ventures (net of tax) carried over to Statement of Profit and Loss			(7.98)	(16.43)
Share of loss restricted to investment value (Refer note above)			-	-
Reconciliation of the above mentioned summarised financial information to the carrying amount of interest in t recognised in consolidated financial statements		he Joint Venture
Group's Share of net assets as above			(64.95)	(56.96)
Elimination of unrealised profit from transaction with joint ventures			64.95	56.96
Amounts Carried to Balance Sheet			-	-

Notes:

(a) Refer note 37(B) for uncalled capital commitments outstanding. (b) The Parent Company has no contingent liabilities or capital commitments relating to its interest in joint ventures as at 31 March 2025. Joint ventures can not distribute the profits until they obtain consent from the venture partners.

(iii) Refer note 49 for scheme of amalgamation between the Company and Silvan Innovation Labs Private Limited. (iv) On 29 June 2023, the Company acquired additional 25,000 shares at face value of ₹10 each of Steel Matrix Private Limited for a purchase consideration of ₹ 0.25 Mn making it a wholly owned subsidiary of the Company.

B Current Investments

Current Investments	Current Investments	Current Investments
(₹ million)
	31 Mar 25	31 Mar 24
Investments measured at FVTPL (Quoted)
Held for sale
Investments in debt and arbitrage mutual funds	17,490.42	18,224.17
	17,490.42	18,224.17
Aggregate amount of quoted investments-At cost	17,320.23	18,110.54
Aggregate amount ofquoted investments - At market value	17,490.42	18,224.17

Note:

(a) Refer note 42 for accounting policies on financial instruments for methods of valuation.

(b) The Group has not traded or invested in Crypto currency or Virtual Currency during the financial year ended 31 Mar 2025 (31 Mar 2024: Nil).

Page 29 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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8. Trade receivables

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

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

(₹ million)	(₹ million)	(₹ million)
31 Mar 25 31 Mar 24
Unsecured(at amortised cost)
Non Current
Trade receivables-Considered Good (Unsecured)	2,994.38	1,190.70
Non-current Trade receivables	2,994.38	1,190.70
Current
Trade receivables-Considered Good (Unsecured)	25,907.45	20,474.75
Trade receivables - Credit Impaired	190.66	317.48
Receivables from related parties-Considered Good (Unsecured) (Refer note-39)	1,131.60	1,031.62
Trade receivables(Gross)	27,229.71	21,823.85
Less: Impairment allowance for trade receivables	(1,267.03)	(1,352.68)
Current Trade receivables(Net)	25,962.68	20,471.17
The followingtable summarizes the change in impairment allowance measured usingthe life time expected credit loss model:
	31 Mar 25	31 Mar 24
At the beginning ofyear	1,352.68	1,163.08
Additions on account of merger with Silvan Innovation Labs Private Limited	-	1.86
Provision duringtheyear	190.04	304.08
Bad debts written off (net)	(275.69)	(116.34)
At the end of theyear	1,267.03	1,352.68

Notes:-

(a) Trade receivables are usually non-interest bearing and are generally on credit terms up to 90 days except EPC business. The Group’s term includes charging of interest for delayed payment beyond agreed credit days. Group entities charges interest for delayed payments in certain cases depending on factors, such as, market conditions and past realisation trend.

(b) For EPC business trade receivables are non-interest bearing and credit terms are specific to contracts.

(c) For explanations on the Group's credit risk management processes, refer note 43(B)

(d) For trade receivables, the Group applies a simplified approach in calculating Expected Credit Loss (ECL). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

(e) Trade receivables have been pledged as security against bank borrowings, the terms relating to which have been described in note 19.

(f) Refer note 42 for accounting policies on financial instruments.

(g) No trade or other receivables are due from directors or other officers of the Group either severally or jointly with any other person. Refer note 39 for the terms and conditions pertaining to related party disclosures.

(h) Non-current trade receivables are not due.

(i) Trade receivables ageing schedule - Current

Trade receivables ageing schedule - Current
As at 31 March 2025			(₹ million)
		Outstandingfor following periods from due date ofpayment	TOTAL
	Not due	Less than 6 months 6 months to 1 year 1-2 years 2-3 years More than 3 years
(i) Undisputed Trade Receivables - considered good	15,955.87	6,165.76 791.22 3,650.87 317.11 158.22	27,039.05
(ii) Undisputed Trade Receivables - Credit Impaired	-	- - 0.05 78.21 58.08	136.34
(iii) Disputed Trade Receivables - considered good	-	- - - - -	-
(iv) Disputed Trade Receivables - consideredgood		- - - 54.32	54.32
	15,955.87	6,165.76 791.22 3,650.92 395.32 270.62	27,229.71
Less: Impairment allowancefortradereceivables			(1,267.03)
Total Current trade receivable			25,962.68
As at 31 March 2024			(₹ million)
		Outstandingfor following periods from due date ofpayment	TOTAL
	Not Due	Less than 6 months 6 months to 1 year 1-2 years 2-3 years More than 3 years
(i) Undisputed Trade Receivables - consideredgood	13,868.48	5,477.54 1,478.68 401.27 208.51 71.78	21,506.26
(ii) Undisputed Trade Receivables - Credit Impaired	-	- - 1.71 79.90 44.01	125.62
(iii) Disputed Trade Receivables - considered good	-	- - 0.03 0.09 -	0.12
(iv) Disputed Trade Receivables - Credit Impaired		- - (0.00) 191.85	191.85
	13,868.48	5,477.54 1,478.68 403.01 288.50 307.64	21,823.85
Less: Impairment allowancefortradereceivables			(1,352.68)
Total Current trade receivable			20,471.17

Page 30 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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9.	Cash and cash equivalents (₹ million)	Cash and cash equivalents (₹ million)	Cash and cash equivalents (₹ million)
	31 Mar 25		31 Mar 24
	At amortised cost
	Balances with banks
	In current accounts (Refer note (a))	1,726.93	1,780.16
	Deposits with original maturity of less than 3 months (Refer note (b))	446.70	1,290.10
	Cash on hand	0.24	0.05
		2,173.87	3,070.31

(a) There is no repatriation restriction with regard to cash and cash equivalents at the end of reporting period and prior periods.

(b) Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates.

10. Bank balance other than cash and cash equivalents

Bank balance other than cash and cash equivalents (₹ million)
31 Mar 25 31 Mar 24
At amortised cost
Deposits with original maturity for more than 3 months but less than 12 months (Refer note (a))		5,529.35	951.23
Earmark	ed balance (Refer note (b))	3.14	2.04
		5,532.49	953.27

(a) Fixed deposit of ₹366.52 million (31 March 2024: ₹ 42.92 million) is restricted for withdrawal, as it is placed under lien against project specific advance.

(b) Earmarked balances with banks relate to unclaimed dividends (Refer note 23)

**11. **	Loans Loans - Current	(₹ million)	(₹ million)
		31 Mar 25	31 Mar 24
	At amortised cost
	Loans Receivables consideredgood – Unsecured
	Loans to related party (Refer note-39)	100.00	100.00
	Loans to employees	11.00	6.26
		111.00	106.26

Note: Disclosures required as per Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 186 (4) of Companies Act, 2013 as per the standalone financial statement:

(A) Amount of loans outstanding from Subsidiaries and Joint Venture:

			(₹ million)	(₹ million)	(₹ million)
	Interest Rate		Outstanding as at Maximum amount outstanding during the year
			31 Mar 25 31 Mar 24 31 Mar 25		31 Mar 24
(i) Sub	sidiaries
Unsecured, considered good
10.40% Polycab Support Force Private Limited (has utilised this loan for general corporatepurpose)			5.00 5.00	5.00 5.00
10.35% Uniglobus Electricals and Electronics Private Limited (has utilised this loan for general corporate purpose)			1,310.00 950.00	1,310.00 950.00
(ii) Joint Venture
Unsecured, c		onsidered good
Techno Electr (has utilised th		10.50% omech Private Limited is loan for general corporate purpose)	100.00 100.00	100.00 100.00
(B) Amount of lo		ans outstanding from Subsidiaries and Joint Venture:	(₹ million)
			31 Mar 25 % 31 Mar 24		%
(i) Subsidiaries
Unsecured,c		onsideredgood
Uniglobus Ele		ctricals and Electronics Private Limited	1,310.00 93%	950.00 90%
Polycab Support Force Private Limited			5.00 0%	5.00 1%
(ii) Joint Venture
Unsecured, considered good
Techno Electromech Private Limited			100.00 7%	100.00 9%

(C) The Group has complied with the provision section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

(D) The Group has entered into Scheme(s) of arrangement in terms of sections 230 to 237 of the Companies Act, 2013. Refer note 50 (i)

(E) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Group to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Group (Ultimate Beneficiaries). The Group has not received any fund from any party(s) (Funding Party) with the understanding that the Group shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Group (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(F) Loan given during the year to related parties are repayable on demand. No amounts were demanded for repayment.

Page 31 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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12. Other financial assets

A	Other financial assets - Non-current (₹ million)	Other financial assets - Non-current (₹ million)	Other financial assets - Non-current (₹ million)	Other financial assets - Non-current (₹ million)
	31 Mar 25 31 Mar 24
	At amortised cost
	Unsecured,consideredgood
	Security	deposits and Earnest money deposits	29.94	57.50
	Depositswith bank having maturity period of more than 12 months Others(Refer note below)	swith bank having maturity period of more than 12 months	465.04	58.34
			217.43	195.50
			712.41	311.34

Note: Others mainly pertains to the premium receivable on EPC contracts which are recognised as per Ind AS 109 at the present value of contractual premiums expected to be collected.

(₹ million)

• B Other financial assets - current

31 Mar 25	31 Mar 25	31 Mar 24
At amortised cost
Unsecured,consideredgood
Security deposits and Earnest money deposits (A)	88.82	106.12
Rental deposits, unsecured, considered good
Related Parties (Refer note-39G(ii))	6.17	6.17
Others	157.47	24.79
(B)	163.64	30.96
Interest accrued on bank deposits	137.87	32.79
Interest receivables
Related Parties (Refer note-39F(iii))	2.39	2.62
Other than Related Parties	1.05	1.29
(C)	141.31	36.70
Others (Refer (a) below) (D)	307.17	138.10
At FVTPL
Firm Commitment(Refer note - 44) (E)	318.49	-
Derivative Assets (Refer (b) below) (F)	128.06	23.64
(A+B+C+D+E+F)	1,147.49	335.52

Note:

(a) Others mainly includes premium receivable on EPC contracts which are recognised as per Ind AS 109 at the present value of contractual premiums expected to be collected.

(b) Derivative Assets

Derivative Assets (₹ million)
31 Mar 25		31 Mar 24
Embedded derivatives	44.08	1.99
Foreign exchange forward contract	83.98	21.65
	128.06	23.64

13. Income taxes

Accounting policy

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

Income tax received / receivable pertains to prior period recognised when reasonable certainty arise for refund acknowledged by the Income-tax department. Group periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

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

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

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

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

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

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

A	Income tax expense in the statement of profit and loss comprises: (₹ million)	Income tax expense in the statement of profit and loss comprises: (₹ million)	Income tax expense in the statement of profit and loss comprises: (₹ million)
	31 Mar 25 31 Mar 24
	Current tax:
	In respect of current year	6,282.60	5,519.18
	Adjustments of tax relating to earlier years	(127.62)	16.07
		6,154.98	5,535.25
	Deferred tax:
	Relating to origination and reversal of temporary differences	417.85	(3.46)
	Adjustments of tax relating to earlier years	(19.75)	32.04
		398.10	28.58
		6,553.08	5,563.83

Page 32 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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13. Income taxes

B C	OCI section - Deferred tax related to items recognised in OCI during the year: (₹ million)	OCI section - Deferred tax related to items recognised in OCI during the year: (₹ million)	OCI section - Deferred tax related to items recognised in OCI during the year: (₹ million)
	31 Mar 25 31 Mar 24
	Net loss/(gain) on remeasurements of defined benefit plans	(23.07)	(22.80)
	Net loss/(gain) on Designated Cash Flow Hedges	(5.42)	-
		(28.49)	(22.80)
	Reconciliation of tax expense and the accounting profit multiplied by Company's domestic tax rate: (₹ million)
	31 Mar 25 31 Mar 24
	Profit before tax	27,008.45	23,593.00
	Enacted tax rates in India	25.17%	25.17%
	Computed expected tax expenses	6,797.49	5,937.89
	Effect of differential tax impact due to the following (tax benefit)/ tax expenses:
	CSR expenses	89.49	66.53
	Deferred government grants	(48.70)	(47.05)
	Others	(285.21)	(393.54)
		6,553.08	5,563.83

Note :

Corporate tax rate of 25.17% has been used for the reconciliation above which is payable by corporate entities in India on taxable profits under Indian Income Tax Laws.

D E F G H	The details of tax assets / (liabilities)		(₹ million)	(₹ million)
			31 Mar 25 31 Mar 24
	Non-current tax assets (net of provision for taxation)		503.73	297.08
	Current tax liabilities (net of advance tax)		(155.59)	(125.44)
	Net tax asset / (liability)		348.14	171.64
	The movement in the net current tax assets/ (liability)		(₹ million)
			31 Mar 25 31 Mar 24
	Net current tax asset / (liability) at the beginning of the year		171.64	(36.28)
	Income tax paid		6,331.48	5,743.17
	Current tax expense		(6,282.60)	(5,519.18)
	Adjustments of tax relating to earlier years		127.62	(16.07)
	Net current tax asset /(liability) at the end of theyear		348.14	171.64
	The movement in the net deferred tax assets/ (liability)		(₹ million)
			31 Mar 25 31 Mar 24
	Deferred tax assets (net)		240.40	128.69
	Deferred tax liabilities (net)		(1,025.03)	(543.71)
	Net deferred tax asset /(liability) at the end of theyear		(784.63)	(415.02)
	The movement in net deferred tax assets and liabilities For the year ended 31 March 2025		(₹ million)
		Carrying value as at 01 April 24 Changes through profit and loss	Changes through OCI Carrying value as at 31 Mar 25
	Deferred tax assets /(liabilities) in relation to
	Property, plant and equipment and other intangible assets	(883.93) (135.92) - (1,019.85)
	Provision for employee benefits	161.79 41.13 23.07 225.99
	Cash flow hedges	- - 5.42 5.42
	Receivables, financial assets at amortised cost	125.56 (342.11) - (216.55)
	Lease liabilities	1.80 3.10 - 4.90
	Others	179.76 35.70 - 215.46
	Total deferred tax assets / (liabilities)	(415.02) (398.10) 28.49 (784.63)
	The movement in net deferred tax assets and liabilities For the year ended 31 March 2024	(₹ million)
		Carrying value as at 01 April 23 Changes through profit and loss Changes through OCI Carrying value as at 31 Mar 24
	Deferred tax assets /(liabilities) in relation to
	Property, plant and equipment and other intangible assets	(787.26) (96.67) - (883.93)
	Provision for employee benefits	109.59 29.40 22.80 161.79
	Receivables,financial assets at amortised cost	264.29 (138.73) - 125.56
	Lease liabilities	3.28 (1.48) - 1.80
	Others	0.86 178.90 - 179.76
	Total deferred tax assets /(liabilities)	(409.24) (28.58) 22.80 (415.02)
	Reconciliation of deferred tax assets/ liabilities (net):	(₹ million)
		31 Mar 25 31 Mar 24
	Net deferred tax asset / (liability) at the beginning of the year		(415.02)	(409.24)
	Tax (income)/expense on adjustment of tax relating to earlier year		19.75	(32.04)
	Tax (income)/expense recognised in profit or loss		(417.85)	3.46
	Tax (income)/expense recognised in OCI		28.49	22.80
	Net deferred tax asset /(liability) at the end of theyear		(784.63)	(415.02)

I Details of transaction not recorded in the books of accounts that has been surrendered/ disclosed as income during the year in the tax assessments (e.g. search) ₹ Nil (31 March 2024 ₹ Nil).

J The Group does not have any unrecorded income and assets related to previous years which are required to be recorded during the year. K Refer note 38 for Income tax search activity

Page 33 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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14. Other assets

A B	Other assets - Non-current (₹ million)	Other assets - Non-current (₹ million)	Other assets - Non-current (₹ million)	Other assets - Non-current (₹ million)
	31 Mar 25 31 Mar 24
	Capital advances
	Unsecured, considered good		2,515.59	2,272.00
	Unsecured, considered doubtful		60.99	6.62
	Gross Capital Advances		2,576.58	2,278.62
	Less : Impairment allowance for doubtful advance (Refer note below)		(60.99)	(6.62)
	Net Capital Advances (A)		2,515.59	2,272.00
	Advances other than capital advances
	Unsecured, consideredgood
	Prepaid expenses		156.58	87.22
	Bal	ances with statutory/government authorities	221.37	202.54
		(B)	377.95	289.76
		(A)+(B)	2,893.54	2,561.76
	Not Ch Oth	e: ange in impairment allowance for doubtful advances (₹ million)
		31 Mar 25		31 Mar 24
		At the beginningofyear	6.62	136.62
		Provision/(reversal) during the year	54.37	(130.00)
		At the end of theyear	60.99	6.62
		er assets - Current (₹ million)
		31 Mar 25 31 Mar 24
	Ad	vances other than capital advances
	Unsecured,consideredgood
	Advances for materials and services		1,226.10	3,060.00
	Contract asset(Refer below note(a))
	Unsecured, considered good		1,082.42	365.59
	Credit impaired		45.10	15.23
	Less: Impairment allowance for Contract Assets-Credit Impaired (Refer below note (b)&(c))		(45.10)	(15.23)
			1,082.42	365.59
	Others
	Unsecured, consideredgood
	Prepaid expenses		418.21	216.50
	Balances with statutory/government authorities		1,063.23	3,245.41
	Export incentive receivable		64.25	33.67
	Right of return assets (Refer below note (d))		304.80	306.60
			4,159.01	7,227.77
	Notes: (a) Reconciliation of Contract assets: (₹ million) 31 Mar 25 31 Mar 24 At the beginning of year 365.59 135.54 Unbilled revenue 1,127.52 292.86 Billed to customer (365.59) (72.39) Impairment allowance (45.10) 9.58 At the end of the year 1,082.42 365.59 (b) For contract assets, the Group applies a simplified approach in calculating Expected credit loss (ECL). Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.	es: Reconciliation of Contract assets: (₹ million)
		31 Mar 25		31 Mar 24
		At the beginning of year	365.59	135.54
		Unbilled revenue	1,127.52	292.86
		Billed to customer	(365.59)	(72.39)
		Impairment allowance	(45.10)	9.58
		At the end of the year	1,082.42	365.59

(c) **(d) **	Change in impairment allowance (₹ million)	Change in impairment allowance (₹ million)	Change in impairment allowance (₹ million)
	31 Mar 25		31 Mar 24
	At the beginningofyear	15.23	5.65
	Provision during the year (net)	29.87	9.58
	At the end of theyear	45.10	15.23
	Reconciliation of Right of return assets:
	31 Mar 25		31 Mar 24
	At the beginning of theyear	306.60	286.19
	Arising during the year	139.12	244.00
	Utilised during the year	(140.92)	(223.59)
	At the end of theyear	304.80	306.60

15. Inventories

Accounting policy

Raw materials, stock in trade, work in progress, finished goods, packing materials, project material for long term contracts, scrap materials and stores and spares are valued at lower of cost or net realizable value ("NRV") after providing for obsolescence and other losses, where considered necessary on an item-by-item basis. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

Cost of raw materials, packing materials, and stores and spares is determined on a First In-First Out (FIFO) basis and includes all applicable costs, including inward freight, incurred in bringing goods to their present location and condition.

Page 34 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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15. Inventories

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

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

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

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

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

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

Hedge accounting is discontinued when the hedging instrument is settled, or when it no longer qualifies for hedge accounting or when the hedged item is sold (Refer note 44).

(₹ million)	(₹ million)	(₹ million)
31 Mar 25 31 Mar 24
Raw materials	10,363.24	14,795.56
Work-in-progress	4,414.31	3,466.49
Finished goods	18,273.29	14,378.91
Stock-in-trade	885.91	1,188.17
Stores and spares	564.33	461.58
Packing materials	211.49	359.12
Scrap materials	710.49	644.49
Project materials for long-term contracts	1,189.94	1,456.82
	36,613.00	36,751.14

Notes:

(a)	The above includes goods in transit as under: (₹ million)	The above includes goods in transit as under: (₹ million)	The above includes goods in transit as under: (₹ million)
	31 Mar 25 31 Mar 24
	Raw Material	2,707.87	755.43
	Stock-in-trade	0.15	173.86
	Stores and spares	38.60	15.42
	Finishedgoods	6.89	-
	Project materials for long-term contracts	131.60	195.50

(b) The above includes inventories held by third parties amounting to ₹ 605.46 million (31 March 2024 - ₹ 4,629.37 million)

(c) During the year ended 31 March 2025 ₹ 16.82 million (31 March 2024 - ₹ 5.52 million) was recognised as an expense for inventories carried at net realisable value. (d) Inventories are hypothecated with the bankers against working capital limits (Refer note 19).

16. Equity Share Capital

Equity Share Capital	Equity Share Capital	Equity Share Capital
(₹ million)
	31 Mar 25	31 Mar 24
Authorised share capital
Equity shares, ₹ 10 per value 18,92,50,000 (18,92,50,000) equity shares*	1,892.50	1,892.50
Issued, subscribed and fully paid-up shares
Equity shares, ₹ 10 per value 15,04,25,898 (15,02,36,395) equity shares	1,504.26	1,502.36
	1,504.26	1,502.36

• Number of equity shares reserved for issue under employee share based payment 8,53,060 (31 March 2024: 10,12,383)

Notes:

es:	es:	es:
The reconciliation of shares outstanding and the amount of share capital as at 31 March 2025 and 31 March 2024 are as follow: (₹ million)
	31 Mar 25	31 Mar 24
	Number of Shares Amount	Number of Shares Amount
At the beginning of the year	15,02,36,395 1502.36	14,97,65,278 1,497.65
Add: Shares issued on exercise of employee stock option	1,89,503 1.90	4,71,117 4.71
At the end of theyear	15,04,25,898 1504.26	15,02,36,395 1,502.36

(b) Terms/ rights attached to equity shares

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

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

(c) The details of Shareholding of Promoters are as under as at 31 March 2025 and 31 March 2024 are as follows:

	31 Mar 25	31 Mar 24 % Ch
	Number of Shares Total share	Number of Shares Total share ange during the year
Mr. Inder T. Jaisinghani	1,81,23,976 12.05%	1,88,73,976 12.56% -0.51%
Mr. Girdhari T. Jaisinghani	1,28,36,283 8.53%	1,46,36,283 9.74% -1.21%
Mr. Ajay T. Jaisinghani	1,43,70,747 9.55%	1,48,70,747 9.90% -0.34%
Mr. Ramesh T. Jaisinghani	1,30,95,008 8.71%	1,68,55,008 11.22% -2.51%

Page 35 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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16. Equity Share Capital

(d) The details of shareholders holding more than 5% shares as at 31 March 2025 and 31 March 2024 are as follows:

	Number of Shares Amount 31 Mar 25	Number of Shares % holding 31 Mar 24
Mr. Inder T. Jaisinghani	1,81,23,976 12.05%	1,88,73,976 12.56%
Mr. Girdhari T. Jaisinghani	1,28,36,283 8.53%	1,46,36,283 9.74%
Mr. Ajay T. Jaisinghani	1,43,70,747 9.55%	1,48,70,747 9.90%
Mr. Ramesh T. Jaisinghani	1,30,95,008 8.71%	1,68,55,008 11.22%

(e) Aggregate number of shares issued for consideration other than cash during the period of 5 years immediately preceding the reporting date:

There were no bonus shares issued, buy back of shares or issue of shares pursuant to contract without payment being received in cash during the previous 5 years.

(f) Dividend

Accounting policy

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Group's Board of Directors.

The Group declares and pays dividend in Indian rupees in accordance with its dividend distribution policy. Group's are now required to pay/distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.

Dividend on equity share

Dividend on equity share	Dividend on equity share	Dividend on equity share
(₹ million)
	31 Mar 25	31 Mar 24
Dividend on equity shares declared andpaid during theyear
Final dividend of ₹ 20.00 per share for FY 2022-23 paid in FY 2023-24	-	2997.30
Final dividend of ₹ 30.00 per share for FY 2023-24 paid in FY 2024-25	4,510.84	-
	4,510.84	2,997.30

Proposed dividend on equity share : Refer note 50 (ii)

• (g) Employee stock Option Plan (ESOP) Accounting policy

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

No expense is recognised for options that do not ultimately vest because non market performance and/ or service conditions have not been met. The dilutive effect, if any of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

Employee stock option plan

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

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

Under Employee Stock Options Privilege Scheme 2018, the options are vested over a period of one year subject to fulfilment of service condition. Expected volatility is based on historical stock volatility of comparable companies operating within the same industry. The historical stock prices of comparable Companies has been observed for a period commensurate to the Life of option.

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

Subject to terms and condition of the scheme, options are classified into eight categories:

	I II III IV V VI VII VIII Performance Scheme
Number of options	21,02,500 45,000 65,000 1,56,200 1,00,000 34,000 8,87,500 1,18,000
Method of accounting	Fair value Fair value Fair value Fair value Fair value Fair value Fair value Fair value
Vesting period	5 years graded vesting 5 years graded vesting 5 years graded vesting 5 years graded vesting 5 years graded vesting 5 years graded vesting 5 years graded vesting 5 years graded vesting
Grant date	30-Aug-18 18-Oct-18 23-Jan-21 13-May-21 04-Oct-21 02-May-22 12-May-23 09-May-24
Exercise/ Expiry date	29-Aug-26 17-Oct-26 22-Jan-29 12-May-29 03-Oct-29 01-May-30 11-May-31 08-May-32
Exercise period	8 years from the date of grant 8 years from the date of grant 8 years from the date of grant 8 years from the date of grant 8 years from the date of grant 8 years from the date of grant 8 years from the date of grant 8 years from the date of grant
Weighted average share price	6,418.67 6,418.67 6,418.67 6,418.67 6,418.67 6,418.67 6,418.67 6,418.67
Grant/Exercise price	405 405 405 405 405 405 405 405
Method of settlement	Equity - settled Equity - settled Equity - settled Equity - settled Equity - settled Equity - settled Equity - settled Equity - settled
Weighted average remaining contractual life of options (in days)	2168 2168 2168 2168 2168 2168 2168 2168

Page 36 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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16. Equity Share Capital

The model inputs for fair value of option granted as on the grant date (In respect of shares granted on 30 August 2018 and 18 October 2018):

	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹ 405 ₹ 405 ₹ 405 ₹ 405 ₹ 405
Dividend yield	0.19% 0.19% 0.19% 0.19% 0.19%
Risk free interest rate	8.20% 8.20% 8.20% 8.20% 8.30%
Expected volatility	48.30% 48.20% 49.20% 48.20% 47.30%
Fair value per option	₹ 310.10 ₹ 321.90 ₹ 335.10 ₹ 343.00 ₹ 350.40
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes

The model inputs for fair value of option granted as on the grant date (In respect of shares granted on 23 January 2021):

	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹ 405 ₹ 405 ₹ 405 ₹ 405 ₹ 405
Dividend yield	0.12% 0.11% 0.12% 0.11% 0.13%
Risk free interest rate	5.10% 5.29% 5.44% 5.59% 5.73%
Expected volatility	34.37% 34.25% 34.88% 35.42% 37.10%
Fair value per option	₹ 955.87 ₹ 967.70 ₹ 978.57 ₹ 990.75 ₹ 1,003.15
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes

The model inputs for fair value of option granted as on the grant date (In respect of shares granted on 13 May 2021):

	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹ 405 ₹ 405 ₹ 405 ₹ 405 ₹ 405
Dividend yield	0.72% 0.65% 0.71% 0.65% 0.70%
Risk free interest rate	5.54% 5.68% 5.86% 6.03% 6.13%
Expected volatility	35.10% 34.88% 34.97% 35.55% 35.99%
Fair value per option	₹ 1,186.89 ₹ 1,198.43 ₹ 1,203.36 ₹ 1,216.12 ₹ 1,220.57
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes
The model inputs for fair value of option granted as on the grant date (In	respect of sharesgranted on 04 October 2021):
	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹ 405 ₹ 405 ₹ 405 ₹ 405 ₹ 405
Dividend yield	0.38% 0.34% 0.39% 0.36% 0.39%
Risk free interest rate	5.66% 5.84% 6.00% 6.15% 6.27%
Expected volatility	35.16% 35.35% 34.97% 35.06% 35.91%
Fair value per option	₹ 1,998.40 ₹ 2,010.23 ₹ 2,014.32 ₹ 2,026.10 ₹ 2,030.48
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes
The model inputs for fair value of option granted as on the grant date (In	respect of sharesgranted on 02 May 2022):
	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹ 405 ₹ 405 ₹ 405 ₹ 405 ₹ 405
Dividend yield	0.51% 0.51% 0.49% 0.49% 0.47%
Risk free interest rate	7.19% 7.27% 7.32% 7.38% 7.43%
Expected volatility	36.49% 36.16% 36.15% 35.82% 35.83%
Fair value per option	₹ 2,076.40 ₹ 2,088.19 ₹ 2,089.04 ₹ 2,099.80 ₹ 2,100.89
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes
The model inputs for fair value of option granted as on the grant date (In	respect of sharesgranted on 12 May 2023):
	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹ 405 ₹ 405 ₹ 405 ₹ 405 ₹ 405
Dividend yield	0.86% 0.86% 0.86% 0.86% 0.86%
Risk free interest rate	6.88% 6.88% 6.88% 6.88% 6.88%
Expected volatility	31.21% 31.21% 31.21% 31.21% 31.21%
Fair value per option	₹ 2,827.67 ₹ 2,823.42 ₹ 2,816.04 ₹ 2,805.10 ₹ 2,791.07
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes

Page 37 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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16. Equity Share Capital

The model inputs for fair value of option granted as on the grant date (In respect of shares granted on 9 May 2024):

	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exerciseprice Dividendyield Risk free interest rate Expected volatility Fair valueper option	₹405 ₹405 ₹405 ₹405 ₹405
	0.52% 0.59% 0.68% 0.79% 0.90%
	7.19% 7.22% 7.25% 7.23% 7.25%
	35.15% 34.05% 33.47% 37.72% 37.13%
	₹5,394.80 ₹5,377.80 ₹5,351.90 ₹5,313.80 ₹5,263.40
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes

The activity in the ESOP Plan 2018 (ESOP Performance Scheme and ESOP Privilege Scheme) is as follows:

Oth		Number of options Weighted average exercise price (₹) 31 Mar 25	Number of options Weighted average exercise price (₹) 31 Mar 24	Number of options Weighted average exercise price (₹) 31 Mar 24
	ESOP Performance Scheme
	Outstanding at the beginning	10,12,383 405	7,77,910 405
	Granted	1,18,000 405	8,87,500 405
	Exercised and allotted	1,78,003 405	4,65,877 405
	Exercised and pending allotment	1,500 405	11,500 405
	Transfer to general reserve	5,200 405	770 405
	Forfeited	92,620 405	1,74,880 405
	Outstanding at the end	8,53,060 405	10,12,383 405
	ESOP Privilege Scheme
	Outstanding at the beginning	- 405	8,250 405
	Exercised and allotted	- 405	1,500 405
	Transfer to general reserve	- 405	6,750 405
	Outstanding at the end	- 405	- 405
	Shares allotted under ESOP during the year	Number of options Weighted average exercise price (₹) 31 Mar 25	Number of options Weighted average exercise price (₹) 31 Mar 24
	FY 2024-25
	ESOP Performance Scheme	1,78,003 405	4,65,877 405
	ESOP Privilege Scheme	- 405	1,500 405
	FY 2023-24
	ESOP Performance Scheme	11,500 405	3,740 405
	ESOP Privilege Scheme	- 405	- 405
		1,89,503 -	4,71,117 -
	Options vested but not exercised : (Number of Options)
			31 Mar 25	31 Mar 24
	ESOP Performance Scheme		27,435	67,883
	ESOP Privilege Scheme		-	-
	The break-up of employee stock compensation expense is as follow: (₹ million)
			31 Mar 25	31 Mar 24
	Granted to
	KMP and Executive Directors		59.31	58.99
	Employees other than KMP and Executive Directors		627.69	505.25
			687.00	564.24
	er Equity (₹ million)
			31 Mar 25	31 Mar 24
Sec	urities premium		8,623.73	8,187.00
Ge	neral reserve		631.72	617.02
ES	OP outstanding		1,008.20	694.26
Ca	sh flow hedging reserve		(16.10)	-
Foreign currency translation reserve			(23.78)	(38.99)
Retained earnings			86,521.08	70,900.98
Share application money pending allotment			1.14	8.71
			96,745.99	80,368.98

17. Other Equity

Notes:

(a) Securities premium

Amount received in excess of face value of the equity shares is recognized in Securities Premium. In case of equity-settled share based payment transactions difference between fair value on grant date and nominal value of share is accounted as Securities Premium. It will be used as per the provision of Companies Act, 2013.

(₹ million)	(₹ million)	(₹ million)
	31 Mar 25	31 Mar 24
Opening balance	8,187.00	7,822.56
Add: Adjustment for exercise of stock option	436.73	364.44
	8,623.73	8,187.00

Page 38 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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17. Other equity

(b) General reserve

The Group had transferred a portion of the net profit of the Group before declaring dividend to General Reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to General Reserve is not required under the Companies Act, 2013. General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to Statement of Profit and Loss.

(₹ million)	(₹ million)	(₹ million)
	31 Mar 25	31 Mar 24
Opening balance	617.02	615.00
Add: Transfer on account of employee stock options not exercised	14.70	2.02
	631.72	617.02

(c) ESOP outstanding

Fair value of equity-settled share based payment transactions with employees is recognized in Statement of Profit and Loss with corresponding credit to Employee Stock Options Outstanding. The Group has two stock option schemes under which options to subscribe for the Group's shares have been granted to certain employees. The ESOP Outstanding is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration.

(₹ million)	(₹ million)	(₹ million)
	31 Mar 25	31 Mar 24
Opening balance	694.26	313.17
Add: ESOP charge during the year	687.00	564.24
Less: Transfer on account of employee stock options not exercised	-	(2.02)
Less: Adjustment for exercise of stock option	(373.06)	(181.13)
	1,008.20	694.26

(d) Cash flow hedging reserve

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedge reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the statement of Profit and Loss upon the occurrence of the related forecasted transaction.

(₹ million)	(₹ million)	(₹ million)
	31 Mar 25	31 Mar 24
Opening balance	-	-
Add: Other Comprehensive Income for the year	(16.10)	-
	(16.10)	-

(e) Foreign currency translation reserve Foreign currency translation reserve includes all resulting exchange differences arising from (a) translating the assets and liabilities of the foreign operations into Indian Rupees using exchange rates prevailing at the end of each reporting period and (b) translating income and expense items of the foreign operations at the average exchange rates for the period.

Foreign currency translation reserve Foreign currency translation reserve includes all resulting exchange differences arising from (a) translating the assets and liabilities of the foreign operations into Indian Rupees using exchange rates prevailing at the end of each reporting period and (b) translating income and expense items of the foreign operations at the average exchange rates for the period.	Foreign currency translation reserve Foreign currency translation reserve includes all resulting exchange differences arising from (a) translating the assets and liabilities of the foreign operations into Indian Rupees using exchange rates prevailing at the end of each reporting period and (b) translating income and expense items of the foreign operations at the average exchange rates for the period.	Foreign currency translation reserve Foreign currency translation reserve includes all resulting exchange differences arising from (a) translating the assets and liabilities of the foreign operations into Indian Rupees using exchange rates prevailing at the end of each reporting period and (b) translating income and expense items of the foreign operations at the average exchange rates for the period.
(₹ million)
	31 Mar 25	31 Mar 24
Opening Balance	(38.99)	(4.33)
Add: Exchange difference during the year on net investment in non-integral foreign operations	15.21	(34.66)
	(23.78)	(38.99)

(f) Retained earnings

Retained earnings are the profits that the Group has earned till date less any transfers to General Reserve, dividends or other distributions to shareholders. Retained earnings includes re-measurement loss/(gain) on defined benefit plans, net of taxes that will not be reclassified to statement of profit and loss. Retained earnings is a free reserve available to the Group.

(₹ million)	(₹ million)	(₹ million)
	31 Mar 25	31 Mar 24
Openingbalance	70,900.98	56,125.24
Add: Profit duringtheyear(includingitems of OCI for theyear,net of tax)	20,130.94	17,772.79
Add: Acquisition of non-controllinginterest	-	0.25
Less: Final equitydividend	(4,510.84)	(2,997.30)
	86,521.08	70,900.98

(g) Share application money pending allotment

Share application money pending allotment, represents amount received from employees who has exercised Employee Stock Option Scheme (ESOS) for which shares are pending allotment as on balance sheet date.

Opening balance Add: Adjustment for exercise of stock option Add: Amount received on exercise of employee stock options Less: Transfer to equity share capital & securities premium for fresh issue 18. Non-Controlling Interests Balance at beginning of the year Share of profit Share of other comprehensive income Acquisition of non-controlling interest Balance as at the end of theyear		(₹ million)	(₹ million)
		31 Mar 25	31 Mar 24
	Opening balance	8.71	2.78
	Add: Adjustment for exercise of stock option	358.36	181.13
	Add: Amount received on exercise of employee stock options	72.70	193.95
	Less: Transfer to equity share capital & securities premium for fresh issue	(438.63)	(369.15)
		1.14	8.71
		(₹ million)
		31 Mar 25	31 Mar 24
	Balance at beginning of the year	562.07	373.77
	Share of profit	255.47	188.72
	Share of other comprehensive income	0.15	(0.17)
	Acquisition of non-controlling interest	-	(0.25)
	Balance as at the end of theyear	817.69	562.07

Note:

For acquisition of additional interests during the financial year 2023-24, with no change in control in a subsidiary company, Steel Matrix Private Limited, the Group has recognised a reduction to the non-controlling interest with the difference between this figure and the consideration paid, being recognised in equity.

Page 39 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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18. Non-controlling interests

Details of Non-Controlling Interests

The table below shows details relating to Non-Controlling Interest in the entities which are not wholly owned by the Group:

										Proportion of NCI	Proportion of NCI
										31 Mar 25	31 Mar 24
Tirupati Reels Private Limited (TRPL)										45%	45%
Dowells Cable Accessories Private Limited (DCAPL)										40%	40%
						Accumulated Non-Controlling Interest		Profit / (Loss) allocated to Non-Controlling Interest		Other Comprehensive Income allocated to Non-Controlling Interest
						31 Mar 25	31 Mar 24	31 Mar 25	31 Mar 24	31 Mar 25	31 Mar 24
Tirupati Reels Private Limited						254.56	197.56	56.84	43.84	0.15	(0.17)
Dowells Cable Accessories Private Limited						563.13	364.51	198.63	144.88	-	-
						817.69	562.07	255.47	188.72	0.15	(0.17)

Summarised financial information in respect of each of the Group’s subsidiaries is set out below. The information below represents amounts before intragroup eliminations:

								TRPL	TRPL	DCAPL	DCAPL
								31 Mar 25	31 Mar 24	31 Mar 25	31 Mar 24
Non-Current assets Current assets Non-Current liabilities Current liabilities								1,051.67	769.64	240.75	80.97
								856.79	548.69	1,381.46	982.78
								(506.81)	(295.50)	(7.60)	(9.50)
								(835.96)	(583.81)	(206.78)	(142.98)
Total Equity								565.69	439.02	1,407.83	911.27
Attributable to owners of Group								311.13	241.46	844.70	546.76
Non-Controlling Interest								254.56	197.56	563.13	364.51
								TRPL		DCAPL
								31 Mar 25	31 Mar 24	31 Mar 25	31 Mar 24
Revenue								1,983.82	1,552.92	2,223.16	1,603.04
Expenses								(1,857.52)	(1,455.50)	(1,726.58)	(1,240.83)
Profit/(Loss) for theyear								126.30	97.42	496.58	362.21
Attributable to owners of Group								69.46	53.58	297.95	217.33
Non-Controlling Interest								56.84	43.84	198.63	144.88
Other Comprehensive Income								0.34	(0.37)	-	-
Attributable to owners of Group								0.19	(0.20)	-	-
Non-Controlling Interest								0.15	(0.17)	-	-

19. Borrowings

**19. **	Borrowings
A	Borrowings - Non-Current			(₹ million)
	Rate of Interest	Tenure end date 31 Mar 25 Gross/ Carrying Value		31 Mar 24
				Gross/ Carrying Value
	At amortised cost
	Rupee loan(secured)
	Indian rupeeloan from HDFCBank * 8.86%	7July2029	248.89	123.86
	Indian rupeeloan fromSIDBI * 8.77%	10February2032	265.02	150.00
	Foreign Currency loan (secured) Vehicle loan from National Australia Bank 6.35%
		03 October 2029	3.74	-
			517.65	273.86
	Less:Currentmaturities of long-termborrowings		(98.25)	(47.82)
			419.40	226.04

• Rate of Interest is calculated at weighted average rate of interest Tenure end date is last EMI date of loan repayment schedule as on 31 March 2025

Notes:

(a) The above loans are secured by way of:

(i) First ranking pari passu charge by way of hypothecation over the entire current assets including but not limited to Stocks and Receivables.

(ii) Pari passu first charge by way of hypothecation on the entire movable fixed assets.

• (iii) Charges with respect to above borrowing has been created in favour of security trustee. No separate charge created for each of the borrowing.

(iv) Term Loan of Group's subsidiary Tirupati Reels Private Limited (TRPL) is secured against:

(a) hypothecation of inventories, trade receivables, plant and equipments and deposits with bank (amounting ₹ 129.60 million).

(b) mortgage of collateral security of leasehold land.

(c) personal guarantee of certain directors and their relative at their personal capacity.

(v) All charges are registered with ROC within statutory period by the Group.

(vi) The term loans availed by TRPL has been utilised for the purpose for which the loan was obtained. Of the total amount disbursed, amount of Rs 140 Mn was disbursed at fag-end of the year in the month of March 25 and therefore could not be utilized fully during the year as the schedule time of delivery of the machine for which the term loan was availed got extended to next financial year on account of technical enhancements. TRPL has temporarily invested the surplus funds to reduce its total cost of capital. The fund so invested will be utilized in the FY 2025-26 in line with the machinery delivery and installation schedule.

(vii) Bank returns / stock statements filed by the Group with its bankers are in agreement with books of account.

	(₹ million)	(₹ million)
	31 Mar 25	31 Mar 24
	< 1 Year > 1 Year	< 1 Year > 1 Year
Rupee loan(secured)
Indian rupee loan from Bank	98.25 419.40	47.82 226.04
	98.25 419.40	47.82 226.04

Page 40 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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19 Borrowings

(c) Others

The term loans outstanding from HDFC Bank aggregating to ₹ 248.89 million is to be repaid in 30 to 62 monthly instalments from April 2025 to July 2029. The term loans outstanding from SIDBI aggregating to ₹ 265.02 million is to be repaid in 44 to 72 monthly instalments from April 2025 to February 2032. The vehicle loan outstanding from National Australia bank is to be repaid in 43 monthly instalments from April 2025 to October 2029.

B	Borrowings - Current (₹ million)	Borrowings - Current (₹ million)	Borrowings - Current (₹ million)
	Others 31 Mar 25 31 Mar 24
	At amortised cost
	Loan from Others (Unsecured)	80.00	-
	Cash credit from banks (Secured)	-	305.89
	Working capital demand loan (Secured)	1.74	-
	Buyer's credit (Secured)	490.65	317.99
	Current maturities of long-term borrowings (Secured) (Refer note 19A)	98.25	47.82
		670.64	671.70

Notes:

• (a) The above loans are secured by way of:

(i) First ranking pari passu charge by way of hypothecation over the entire current assets including but not limited to Stocks and Receivables. (ii) Pari passu first charge by way of hypothecation on the entire movable fixed assets.

(iii) Charges with respect to above borrowing has been created in favour of security trustee. No separate charge has been created for each of the borrowing.

• (iv) Buyer’s credit of Group’s subsidiary Tirupati Reels Private Limited (TRPL) is secured against:

• (a) hypothecation of inventories, trade receivables, plant and equipments and deposits with bank

• (b) mortgage of collateral security of leasehold land

• (c) personal guarantee of certain directors and their relative at their personal capacity

(v) Cash credit from banks of Group’s subsidiary Uniglobus Electricals and Electronics Private Limited (UEEPL) is secured against pari passu first charge by way of hypothecation over the current assets and moveable fixed assets.

(vi) All charges are registered with ROC within statutory period by the Group.

(vii) Funds raised on short term basis have not been utilised for long term purposes and spent for the purpose it were obtained.

• (b) Credit facilities

The Group has fund based and non-fund based revolving credit facilities amounting to ₹ 61,729.66 million (31 March 2024: ₹ 58,299.66 million), towards operational requirements that can be used for the short term loan, issuance of letters of credit and bank guarantees. The unutilised credit line out of these working capital facilities at the year end is ₹ 14,210.17 million (31 March 2024: ₹ 23,337.12 million).

In addition to above, ₹ 9,640.00 million project specific working capital limit has been sanctioned by SBI which is to be released on need basis. The unutilised credit line out of these working capital facilities at the year end is ₹ 4332.40 million.

	31 Mar 25	31 Mar 24
Opening balance
Long-termborrowings	273.86	68.51
Short-termborrowings (excluding CashCreditfrombanks)	317.99	329.07
	591.85	397.58
Cash flow movements
Repayment of long term borrowings	(66.87)	(26.40)
Proceedsfrom long termborrowings	310.66	231.75
Proceeds / (Repayment) of short term borrowings	254.40	(11.09)
	498.19	194.26
Non-cash movements
Otheradjustment	-	-
	-	-
Closing balance
Long-term borrowings	517.65	273.86
Short-term borrowings (excluding Cash Credit from banks)	572.39	317.99
	1,090.04	591.85

Refer note 5 for reconciliation of movement in lease liabilities to cash flows from financing activities.

20. Lease liabilities

**20. **	Lease liabilities	Lease liabilities	Lease liabilities
A B	Lease liabilities - Non-Current (₹ million)
	31 Mar 25 31 Mar 24
	At amortised cost	709.34	244.96
		709.34	244.96
	Lease liabilities- Current
	At amortised cost	224.99	468.23
		224.99	468.23

21. Acceptances

Accounting policy

The Parent Company enters into arrangements for purchase under usance letter of credit issued by banks under non-fund based working capital limits of the Company. Considering these arrangements are majorly for raw materials with a maturity of up to twelve months, the economic substance of the transaction is determined to be operating in nature and these are recognised as Acceptances and is disclosed on the face of the Balance Sheet. Interest borne by the Parent Company on such arrangements is accounted as finance cost.

Accounting policy The Parent Company enters into arrangements for purchase under usance letter of credit issued by banks under non-fund based working capital limits of the Company. Considering these arrangements are majorly for raw materials with a maturity of up to twelve months, the economic substance of the transaction is determined to be operating in nature and these are recognised as Acceptances and is disclosed on the face of the Balance Sheet. Interest borne by the Parent Company on such arrangements is accounted as finance cost.	Accounting policy The Parent Company enters into arrangements for purchase under usance letter of credit issued by banks under non-fund based working capital limits of the Company. Considering these arrangements are majorly for raw materials with a maturity of up to twelve months, the economic substance of the transaction is determined to be operating in nature and these are recognised as Acceptances and is disclosed on the face of the Balance Sheet. Interest borne by the Parent Company on such arrangements is accounted as finance cost.	Accounting policy The Parent Company enters into arrangements for purchase under usance letter of credit issued by banks under non-fund based working capital limits of the Company. Considering these arrangements are majorly for raw materials with a maturity of up to twelve months, the economic substance of the transaction is determined to be operating in nature and these are recognised as Acceptances and is disclosed on the face of the Balance Sheet. Interest borne by the Parent Company on such arrangements is accounted as finance cost.
(₹ million)
31 Mar 25 31 Mar 24
Acceptances(Refer note(a)below)	13,062.37	18,619.66
	13,062.37	18,619.66

Page 41 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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21. Acceptances Notes:

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

22. Trade payables

Accounting policy

The amounts are unsecured and are usually paid within 30 to 90 days of recognition other than usance letter of credit.

Trade payables Accounting policy The amounts are unsecured and are usually paid within 30 to 90 days of recognition other than usance letter of credit.	Trade payables Accounting policy The amounts are unsecured and are usually paid within 30 to 90 days of recognition other than usance letter of credit.	Trade payables Accounting policy The amounts are unsecured and are usually paid within 30 to 90 days of recognition other than usance letter of credit.
(₹ million)
31 Mar 25 31 Mar 24
At amortised cost
Total outstanding dues of micro and small enterprises
Tradepayables to relatedparties(Refer Note 39)	-	-
Tradepayables - Others	1,503.85	748.27
	1,503.85	748.27
Total outstandingdues of creditors other than micro and small enterprises
Trade payables to related parties (Refer note 39)	363.74	281.21
Trade payables-Others (Refer below note (a))	12,427.60	8,984.11
	12,791.34	9,265.32

Notes:-

(a) Others include amount payable to vendors, employees liability and accrual of expenses that are expected to be settled in the Group’s normal operating cycle or due to be settled within twelve months from the reporting date.

(b) For the terms and conditions with related parties, refer note 39.

(c) For explanations on the Group's liquidity risk management processes, refer note 43(C). (d) Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for the year ended 31 March 2025 and year ended 31 March 2024 is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the Group.

For the terms and conditions with related parties, refer note 39. Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for the year ended 31 March 2025 and year ended 31 March 2024 is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the Group. For explanations on the Group's liquidity risk management processes, refer note 43(C).	For the terms and conditions with related parties, refer note 39. Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for the year ended 31 March 2025 and year ended 31 March 2024 is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the Group. For explanations on the Group's liquidity risk management processes, refer note 43(C).	For the terms and conditions with related parties, refer note 39. Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for the year ended 31 March 2025 and year ended 31 March 2024 is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the Group. For explanations on the Group's liquidity risk management processes, refer note 43(C).
(₹ million)
	31 Mar 25	31 Mar 24
(i) Principal amount and interest due thereon remaining unpaid to any supplier covered under MSMED Act:
Principal	1,503.85	748.27
Interest	-	-
(ii) The amount of interest paid by the buyer in terms of section 16, of the MSMED Act, 2006 along with the amounts of the payment made to the supplier beyond the appointed day during each accounting year.	-	2.42
(iii) The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under MSMED Act.	-	-
(iv) The amount of interest accrued and remaining unpaid at the end of each accounting year	-	-
(v) The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under section 23 of the MSMED Act, 2006	-	-

(f)	Trade Payables ageing schedule As at 31 March 2025	(₹ million)
		TOTAL Outstandingfor following periods from due date ofpayment
	Not due	Less than 1 year 1-2 years 2-3 years More than 3 years
	(i) MSME 1,503.85	- - - - 1,503.85
	(ii) Others 6,884.12	765.31 22.13 88.92 5.71 7,766.19
	(iii) Disputed dues-MSME -	- - - - -
	(iv) Disputed dues-Others -	- - - - -
	8,387.97	765.31 22.13 88.92 5.71 9,270.04
	Accrued expenses -	- - - - 5,025.15
		14,295.19
	As at 31 March 2024	(₹ million)
		TOTAL Outstandingfor following periods from due date ofpayment
	Not Due	Less than 1 year 1-2 years 2-3 years More than 3 years
	(i) MSME 748.27	- - - - 748.27
	(ii) Others 3,151.29	690.59 312.98 1.31 10.42 4,166.59
	(iii) Disputed dues-MSME -	- - - - -
	(iv) Disputed dues-Others -	- - - - -
	3,899.56	690.59 312.98 1.31 10.42 4,914.86
	Accrued expenses	5,098.73
		10,013.59

Page 42 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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23. Other financial liabilities

A B	Other financial liabilities - Non-current	Other financial liabilities - Non-current	Other financial liabilities - Non-current
		31 Mar 25	31 Mar 24
	At amortised cost
	Securitydeposit	-	390.42
	Financial guarantee liability	105.03	147.24
		105.03	537.66
	Other financial liabilities - Current (₹ million)
		31 Mar 25	31 Mar 24
	At amortised cost
	Security deposit	733.29	304.07
	Interest accrued but not due	47.04	111.78
	Interest accrued and due	-	-
	Creditors for capital expenditure	1,108.95	839.32
	Unclaimed dividend (Refer below note (b))	3.14	2.04
	Channel financing	375.58	508.05
	Financial guarantee liability	62.62	64.08
	Other	14.27	14.27
	At FVTPL
	Derivative liability (Refer below note (a))	643.33	577.23
		2,988.22	2,420.84

Notes:

(a) Derivative Liability

	31 Mar 25	31 Mar 24
Foreign exchange forward contract	198.70	9.04
Commodity contracts	444.63	568.19
	643.33	577.23

(b) There are no amounts due for payment to the Investor Education and Protection Fund under Section 125 of Companies Act, 2013 as at the year end.

24. Other liabilities

A B	Other liabilities - Non-Current (₹ million)	Other liabilities - Non-Current (₹ million)	Other liabilities - Non-Current (₹ million)
		31 Mar 25	31 Mar 24
	Deferred government grant (Refer note (a))	886.01	406.45
	Deferred liability	-	16.41
		886.01	422.86
	Other liabilities - Current (₹ million)
		31 Mar 25	31 Mar 24
	Advance from customers-Others	735.36	469.74
	Contract liability (Refer note (b))	860.89	1,024.22
	Refund liability (Refer note (c))	788.67	678.63
	Deferred liability	45.39	52.05
	Other statutory dues
	Employee recoveries and employer contributions	42.59	32.03
	Taxes payable (Other than Income tax)	602.61	888.36
		3,075.51	3,145.03

Notes:-

(a) Under Ind AS, government grants are recorded as deferred liabilities to the extent of unfulfilled export obligations. This amount has been recognised against deferred government grant and accrued to statement of Profit and Loss subsequently on fulfilment of export obligation. The Group expects to meet its export obligation during the next 3-5 years.

Reconciliation of Deferredgovernmentgrant: (₹ million)	Reconciliation of Deferredgovernmentgrant: (₹ million)	Reconciliation of Deferredgovernmentgrant: (₹ million)
	31 Mar 25	31 Mar 24
At the beginning of the year	406.45	139.88
Grants received during the year	673.05	453.50
Grants recognised for the year	(193.49)	(186.93)
At the end of theyear	886.01	406.45
Reconciliation of Contract liabilities: (₹ million)
	31 Mar 25	31 Mar 24
At the beginning of year	1,024.22	905.32
Contract liability recognised during the year	850.78	7,740.04
Revenue recognised during the year	(1,014.11)	(7,621.14)
At the end of theyear	860.89	1,024.22
Reconciliation of Refund liability: (₹ million)
	31 Mar 25	31 Mar 24
At the beginning of the year	678.63	629.37
Arising during the year	497.30	577.57
Utilised during the year	(387.26)	(528.31)
At the end of theyear	788.67	678.63

Page 43 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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25. Provisions

Accounting policy:

Provision is recognised for expected warranty claims and after sales services when the product is sold or service provided to the customer, based on past experience of the level of repairs and returns. Initial recognition is based on historical experience. The initial estimate of warranty-related costs is revised annually. It is expected that significant portion of these costs will be incurred in the next financial year and the total warranty-related costs will be incurred within warranty period after the reporting date. Assumptions used to calculate the provisions for warranties were based on current sales levels and current information available about returns during the warranty period for all products sold.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

A B	Provisions - Non-Current (₹ million)	Provisions - Non-Current (₹ million)	Provisions - Non-Current (₹ million)
		31 Mar 25	31 Mar 24
	Provision for employee benefits(Refer note 32)
	Gratuity	305.90	263.55
	Others(Refer note below)	107.25	175.22
		413.15	438.77
	Note: Reconciliation of Others (₹ million)
		31 Mar 25	31 Mar 24
	At the beginning of the year	175.22	162.53
	Arising during the year	6.02	12.69
	Utilised during the year	(73.99)	-
	At the end of theyear	107.25	175.22
	Others includes matters relating to indirect tax matters. Provisions - Current (₹ million)
		31 Mar 25	31 Mar 24
	Provision for employee benefits(Refer note 32)
	Gratuity	193.96	159.35
	Compensated absences	261.91	200.76
	Provision for warranty (Refer note below)	173.08	116.83
		628.95	476.94
	Note: Reconciliation of warranty provision: (₹ million)
		31 Mar 25	31 Mar 24
	At the beginning of the year	116.83	109.02
	Arising during the year	168.32	121.89
	Utilised during the year	(112.07)	(114.08)
	At the end of theyear	173.08	116.83

Page 44 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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26. Revenue from operations Accounting Policy

• (i) Measurement of Revenue

Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts, incentive schemes, if any, as per contracts with customers. Transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring good or service to a customer. Taxes collected from customers on behalf of Government are not treated as revenue.

• (ii) Performance obligations:

• (a) Sale of goods

Revenue from contracts with customers involving sale of these products is recognized at a point in time when control of the product has been transferred at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services, and there are no unfulfilled obligation that could affect the customer’s acceptance of the products and the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. At contract inception, the Group assess the goods or services promised in a contract with a customer and identify as a performance obligation each promise to transfer to the customer. Revenue from contracts with customers is recognized when control of goods are transferred to customers and the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. The point of time of transfer of control to customers depends on the terms of the trade - CIF, CFR or DDP, ex-works, etc.

(b) Revenue from construction contracts Performance obligation in case of revenue from long - term contracts is satisfied over the period of time, the revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation. However, the same may not be possible if it lacks reliable information that would be required to apply an appropriate method of measuring progress. In some circumstances, if the Group is not able to reasonably measure the outcome of a performance obligation, but expects to recover the costs incurred in satisfying the performance obligation, the Group shall recognise revenue only to the extent of the costs incurred until such time that it can reasonably measure the outcome of the performance obligation.

Contract asset is the entity’s right to consideration in exchange for goods or services that the entity has transferred to the customer. A contract asset becomes a receivable when the entity’s right to consideration is unconditional, which is the case when only the passage of time is required before payment of the consideration is due.

Contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Group performs under the contract. The timing of the transfer of control varies depending on individual terms of the sales agreements.

The total costs of contracts are estimated based on technical and other estimates. Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in Statement of Profit and Loss immediately in the period in which such costs are incurred. Incremental costs of obtaining a contract, if any, and costs incurred to fulfil a contract are amortised over the period of execution of the contract.

In the event that a loss is anticipated on a particular contract, provision is made for the estimated loss. Contract revenue earned in excess of billing is reflected under as “contract asset” and billing in excess of contract revenue is reflected under “contract liabilities”.

(iii) Variable consideration

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

(iv) Schemes

The Group operates several sales incentive programmes wherein the customers are eligible for several benefits on achievement of underlying conditions as prescribed in the scheme programme such as credit notes, tours, kind etc. Revenue from contract with customer is presented deducting cost of all these schemes.

• (v) Significant financing components

In respect of advances from its customers, using the practical expedient in Ind AS 115, the Group does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be within normal operating cycle. Retention money receivable from project customers does not contain any significant financing element, these are retained for satisfactory performance of contract. Contract assets arising from such customer contracts are subject to impairment assessment.

(vi) Warranty

The Group typically provides warranties for general repairs of defects that existed at the time of sale, as required by law. These assurance-type warranties are accounted for under Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets. Refer to the accounting policy on warranty as per note 25. In certain contracts, the Group provides warranty for an extended period of time and includes rectification of defects that existed at the time of sale and are normally bundled together with the main contract. Such bundled contracts include two separate performance obligations, because the promises to transfer the goods and services and the provision of service-type warranty are capable of being distinct. Using the relative stand-alone selling price method, a portion of the transaction price is allocated to the service-type warranty and recognised as a contract liability at the time of recognition of revenue. Revenue allocated towards service-type warranty is recognised over a period of time on a basis appropriate to the nature of the contract and services to be rendered.

(vii) Right to return

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

At the point of sale, a refund liability and a corresponding adjustment to revenue is recognised for those products expected to be returned. At the same time, the Group has a right to recover the product when customers exercise their right of return. Consequently, the Group recognises a right to returned goods asset and a corresponding adjustment to cost of sales. The Group uses its accumulated historical experience to estimate the number of returns on a portfolio level using the expected value method. It is considered highly probable that a significant reversal in the cumulative revenue recognised will not occur given the consistent level of returns over previous years. The Group updates its estimates of refund liabilities (and the corresponding change in the transaction price) at the end of each reporting period. Refer to above accounting policy on variable consideration.

For goods expected to be returned, the Group presented a refund liability and an asset for the right to recover products from a customer separately in the balance sheet.

Page 45 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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26. Revenue from operations

(viii) Onerous Contracts

A provision for onerous contract is recognised when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligation under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognises any impairment loss on assets associated.

(ix) Export incentives

Export incentives under various schemes notified by the Government have been recognised on the basis of applicable regulations, and when reasonable assurance to receive such revenue is established. Export incentives income is recognised in the statement of profit and loss on a systematic basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to compensate.

(x) Cost to obtain a contract

Any costs to obtain a contract or incremental costs to fulfil a contract are recognised as an asset if certain criteria are met as per Ind AS 115. The Group applies the optional practical expedient to immediately expense costs to obtain a contract if the amortisation period of the asset that would have been recognised is one year or less.

(xi) Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. Government grants are recognised in the statement of profit and loss on a systematic basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to compensate.

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

When the grant relates to an asset, it’s recognition as income in the Statement of Profit and Loss is linked to fulfilment of associated export obligations.

The export incentive and grants received are in the nature of other operating revenue in the Statement of Profit and Loss.

Revenue from operations (₹ million)	Revenue from operations (₹ million)	Revenue from operations (₹ million)	Revenue from operations (₹ million)
31 Mar 25 31 Mar 24
Revenue from contracts with customers
Revenue on sale of products
Finished goods		1,93,519.46	1,58,841.45
Traded goods		7,742.25	10,951.83
Revenue from construction contracts		19,052.48	7,810.86
		2,20,314.19	1,77,604.14
Other operating revenue
Job work income		11.39	17.60
Scrap sales		2,834.84	1,921.76
Total revenue from contracts with customers		2,23,160.42	1,79,543.50
Export incentives		54.62	66.44
Gov	ernment grant	868.09	784.50
Tota	l Revenue from operations	2,24,083.13	1,80,394.44
Note (a)	s: Disaggregated revenue information (₹ million)
	31 Mar 25 31 Mar 24
	Type ofgoods or services
	Wires & Cables	1,87,575.07	1,58,984.14
	FastMovingElectricalGoods (FMEG)	16,532.87	12,748.50
	Revenuefromconstructioncontracts	19,052.48	7,810.86
	Total revenue from contracts with customers	2,23,160.42	1,79,543.50
	Location of customer
	India	2,09,708.56	1,65,183.89
	Outside India	13,451.86	14,359.61
	Total revenue from contracts with customers	2,23,160.42	1,79,543.50
	**Timing of revenue recognition **
	Goods transferred at a point in time	2,04,090.95	1,71,624.53
	Goods and Services transferred over a period of time	19,069.47	7,918.97
	Total revenue from contracts with customers	2,23,160.42	1,79,543.50
	**Revenue from B2Band B2C Vertical **
	Business to Consumer	63,922.45	54,591.88
	Business to Business	1,55,842.17	1,21,706.03
	Others (Refer Note (a))	3,395.80	3,245.59
	Total revenue from contracts with customers	2,23,160.42	1,79,543.50
	Note: (a) Others includes discounts, scrap sales, raw material sales and job work income.

**(b) **	Reconciliation of the revenue from contracts with customers with the amounts disclosed in the segment information (₹ million)	Reconciliation of the revenue from contracts with customers with the amounts disclosed in the segment information (₹ million)	Reconciliation of the revenue from contracts with customers with the amounts disclosed in the segment information (₹ million)
	31 Mar 25 31 Mar 24
	Total revenue from contracts with customers	2,23,160.42	1,79,543.50
	Export incentives (Refer note (a))	54.62	66.44
	Government grant (Refer nore (b))	868.09	784.50
	Other income excluding finance income	525.71	997.69
	Total income as per Segment (Refer note 40)	2,24,608.84	1,81,392.13

Notes:

(a) Export incentive includes Merchandise Export from India Scheme (MEIS) incentives, Remission of Duties and Taxes on Export Products (RoDTEP) and duty drawback incentives.

(b) Government grant includes advance licence benefits and deferred income released to the statement of profit and loss on fulfilment of export obligation under the export promotion capital goods (EPCG) scheme.

Page 46 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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26. Revenue from operations

(c) **(d) **	Reconciliation between revenue with customers and contracted price as per Ind AS 115: (₹ million)	Reconciliation between revenue with customers and contracted price as per Ind AS 115: (₹ million)	Reconciliation between revenue with customers and contracted price as per Ind AS 115: (₹ million)
	31 Mar 25 31 Mar 24
	Revenue as per contracted price	2,25,493.00	1,82,115.90
	Less : Adjustments
	Price adjustments such as Discounts, Rebates and Sales Promotion Schemes	(3,138.17)	(2,660.33)
	Change in contract liabilities (excess billing over revenue recognised as per applicable Ind-AS)	163.33	(118.90)
	Provisions for expected sales return	(110.04)	(49.26)
	Contract assets (Unbilled Revenue-EPC)	746.70	239.63
	Other adjustments	5.60	16.46
	Revenue from contract with customers	2,23,160.42	1,79,543.50
	Disclosure in terms of Ind AS 115 on the accounting of construction contract is as under: (₹ million)
	31 Mar 25 31 Mar 24
	Contract revenue recognised for the year ended	19,052.48	7,810.86
	Contract that are in progress as on reporting date
	(i) Contract costs incurred and recognised profits (less recognised losses)	19,052.48	7,810.86
	(ii) Amount of retentions*	2,992.03	1,186.88
	(iii) Contract balances recognised and included in financial statement as:
	Contract asset	1,082.42	365.59
	Contract liabilities	860.89	1,024.22

• *Retentions are specific to projects and are generally receivable within 6 months from completion of project.

• (e) Trade receivables are usually non-interest bearing and are generally on credit terms up to 90 days except EPC business. Provision for expected credit losses on trade receivables recognised/ (derecognised) during the year of ₹190.04 million (31 March 2024: ₹ 304.08 million). The Group has channel finance arrangement for providing credit to its dealers. Evaluation is made as per the terms of the contract i.e. if the Group does not retain any risk and rewards or control over the financial assets, then the entity derecognises such assets upon transfer of financial assets under such arrangement with the banks.

(f) No single customer contributed 10% or more to the Group's revenue for the year ended 31 March 2025 and 31 March 2024.

(g) (h) (i)	Set out below is the amount of revenue recognised from: (₹ million)	Set out below is the amount of revenue recognised from: (₹ million)	Set out below is the amount of revenue recognised from: (₹ million)
	31 Mar 25 31 Mar 24
	Amounts included in contract liabilities at the beginning of the year	1,014.11	7,621.14
	Performance obligations satisfied inpreviousyears	365.59	72.39
	Right of return assets and refund liabilities as at year end: (₹ million)
	31 Mar 25 31 Mar 24
	Right of return assets	304.80	306.60
	Refund liabilities	788.67	678.63
	Allocation of the transaction price to the remaining performance obligations: (₹ million)
	31 Mar 25 31 Mar 24
	Within oneyear	25,896.79	14,834.56
	More than oneyear	42,354.30	32,773.17
		68,251.09	47,607.73

27. Other income

Accounting Policy

Other income is comprised primarily of interest income, dividend income, gain on investments and exchange gain on forward contracts and on translation of other assets and liabilities.

Interest income on financial asset measured either at amortised cost or FVTPL is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time 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 asset to that asset’s net carrying amount on initial recognition.

Dividend income from investments is recognised when the shareholder’s right to receive payment has been established.

Foreign currency

Items included in the Financial Statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The Financial Statements are presented in Indian rupee (₹), which is the Parent Company's functional and presentation currency.

The Group’s Financial Statements are presented in Indian rupee (₹) which is also the Group’s functional currency. Foreign currency transaction are recorded on initial recognition in the functional currency, using the exchange rate prevailing at the date of transaction.

Measurement of foreign currency item at the balance sheet date

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

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

• (iii) Exchange differences

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

Page 47 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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**27. **	Other income (₹ million)	Other income (₹ million)	Other income (₹ million)
	31 Mar 25 31 Mar 24
	(a) Interest income on financial assets
	Carried at amortised cost
	Bank deposits	245.51	258.68
	Others	79.57	69.37
	Carried at FVTPL
	Others	3.52	3.15
	(b) Income from Investments designated at FVTPL
	Gain on redemption of mutual funds	1,162.95	815.04
	Fair valuationgain on mutual funds	59.10	64.82
	(c) Fair value gain/ loss on financial instruments
	Derivatives at FVTPL(Refer note(a))	44.20	-
	(d) Other non-operating income
	Exchange differences(net)	272.41	778.30
	Gain on sale ofproperty, plant and equipment	-	1.93
	Gain on termination of lease	1.01	1.60
	Sundrybalances written back	23.14	-
	Miscellaneous income	184.95	215.86
		2,076.36	2,208.75

(a) Gain on fair valuation of financial instruments at fair value through profit or loss relates to foreign exchange fluctuation on forward contracts that are designated as at fair value through profit and loss account and on embedded derivatives, which have been separated. No ineffectiveness has been recognised on foreign exchange and interest rate hedges.

28. 29. 30. **31. **	Cost of materials consumed (₹ million)	Cost of materials consumed (₹ million)	Cost of materials consumed (₹ million)
		31 Mar 25	31 Mar 24
	Inventories at the beginning of the year	15,154.68	13,076.84
	Add: Purchases	1,49,593.78	1,28,693.80
		1,64,748.46	1,41,770.64
	Less: Inventories at the end of the year	(10,574.73)	(15,154.68)
	Cost of materials consumed	1,54,173.73	1,26,615.96
	Note: Details of Material Consumed (₹ million)
	31 Mar 25 31 Mar 24
	Copper	90,038.04	78,272.75
	Aluminium	31,278.79	20,662.93
	Steel	4,682.72	4,177.69
	PVC Compound/HDPE/LDPE/XLPE/Resin	16,960.05	14,946.58
	Packing materials	2,231.16	1,878.83
	Others*	8,982.97	6,677.18
		1,54,173.73	1,26,615.96
	* Others includes Raw material for consumer products Purchases of stock-in-trade (₹ million)
	31 Mar 25 31 Mar 24
	Electrical wiring accessories	266.67	303.04
	Electrical appliances	4,776.42	4,524.66
	Others	1,033.28	830.97
		6,076.37	5,658.67
	Changes in inventories of finished goods, stock-in-trade and work-in-progress (₹ million)
	31 Mar 25 31 Mar 24
	Inventory at the beginning of the year
	Finished goods	14,378.91	11,090.39
	Stock-in-trade	1,188.17	1,743.00
	Scrap materials	644.49	432.44
	Work-in-progress	3,466.49	2,197.14
		19,678.06	15,462.97
	Inventory at the end of the year
	Finished goods	18,273.29	14,378.91
	Stock-in-trade	885.91	1,188.17
	Scrapmaterials	710.49	644.49
	Work-in-progress	4,414.31	3,466.49
		24,284.00	19,678.06
	Effect of foreign currency translation	(87.30)	-
	Changes in inventories	(4,518.64)	(4,215.09)
	Project bought outs and subcontracting cost (₹ million)
	31 Mar 25 31 Mar 24
	Project bought outs	11,115.70	4,104.14
	Subcontracting expenses for EPC	1,453.17	639.33
		12,568.87	4,743.47

Page 48 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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32. Employee benefits expense

Accounting Policy

• (i) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages, incentives, special awards, medical benefits etc.are charged to the Statement of Profit and Loss in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid when there is a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

• (ii) Compensated absences

The Group estimates and provides the liability for such short-term and long term benefits based on the terms of the policy. the Group treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Remeasurement gains/losses on defined benefit plans are immediately taken to the Statement of Profit and Loss and are not deferred.

• (iii) Defined contribution plans

Retirement benefit in the form of provident fund and National Pension Scheme are defined contribution schemes. The Group recognises contribution payable to the provident fund and 'Employer Employee' scheme as an expenditure, when an employee renders the related service. the Group has no obligation, other than the contribution payable to the funds. the Group's contributions to defined contribution plans are charged to the Statement of Profit and Loss as incurred.

• (iv) Defined benefit plan

The Group operates a defined benefit gratuity plan for its employees. The costs of providing benefits under this plan is determined on the basis of actuarial valuation at each year-end using the projected unit credit method. The obligation is measured at the present value of estimated future cash flows. The discount rate used for determining the present value of obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations. Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the Balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to Statement of Profit and Loss in subsequent periods. Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. Past service costs are recognised in profit or loss on the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Group recognises related restructuring costs

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service (‘past service cost’ or ‘past service gain’) or the gain or loss on curtailment is recognised immediately in Statement of Profit and Loss. The Group recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

• (v) Share based payment

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

The fair value determined at the grant date of the equity-settled share based payment is expensed on a straight line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises its estimates of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any is, recognised in Statement of Profit and Loss such that the cumulative expenses reflects the revised estimate, with a corresponding adjustment to the ESOP outstanding account (Refer note 16(g)).

No expense is recognised for options that do not ultimately vest because non market performance and/ or service conditions have not been met.

The dilutive effect, if any of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share (Refer note 36).

(₹ million)	(₹ million)	(₹ million)
31 Mar 25 31 Mar 24
Salaries, wages and bonus	6,025.89	4,963.08
Employees share based payment expenses	687.00	564.24
Contribution to provident and other funds	376.18	329.06
Staff welfare expense	278.19	239.04
	7,367.26	6,095.42

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Group will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective. Based on a preliminary assessment, the Group believes the impact of the change will not be significant.

Gratuity and other post-employment benefit plans

(A) Defined Benefit Plan

Gratuity valuation - As per actuary

In respect of Gratuity, the Group makes annual contribution to the employee group gratuity scheme of the Life Insurance Corporation of India, funded defined benefits plan for qualified employees. The scheme provided for lump sum payments to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service. The Group has provided for gratuity based on the actuarial valuation done as per Project Unit Credit Method.

Defined benefit plans expose the Group to actuarial risks such as:

(i) Interest rate risk A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

• (ii) Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.

(iii) Investment risk The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Page 49 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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32. Employee benefits expense

(iv) Asset liability matching risk

• The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

(v) Mortality risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

(vi) Concentration risk

• Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow regulatory guidelines which mitigate risk.

(vii) Variability in withdrawal rates

If actual withdrawal rates are higher than assumed withdrawal rate assumption then the gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

(viii) Regulatory risk

Gratuity Benefit must comply with the requirements of the Payment of Gratuity Act, 1972 (as amended up-to-date). There is a risk of change in the regulations requiring higher gratuity payments.

A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by rule 103 of Income Tax Rules, 1962.

The Group operates a defined benefit plan, viz., gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The most recent actuarial valuation of the present value of defined obligation and plan assets were carried out as at 31 March 2025 by an external independent fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation and the related current service cost were measured using the projected unit credit method.

Page 50 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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32. Employee benefits expense

The following tables summarise the components of net benefit expenses recognised in the Consolidated Statement of profit and loss and the funded status and amounts recognized in the balance sheet for gratuity.

Statement of profit and loss

Statement of profit and loss	Statement of profit and loss
Net employee benefits expense recognised in profit or loss:		(₹ million)
		Year ended Year ended 31 Mar 25 31 Mar 24
Current service cost		104.69	123.11
Net interest cost		30.41	20.45
Past service cost		-	-
Net benefits expense		135.10	143.56
Net remeasurement (gain)/ loss on defined benefit plans recognised in Other comprehensive income for the year:		(₹ million)
		Year ended Year ended 31 Mar 25 31 Mar 24
Actuarial(gain)/loss on obligations		89.54	90.04
Return onplan assets,excludinginterest income		2.34	0.59
Net(Income)/Expense for theyear recognized in OCI		91.88	90.63
Benefits liability:		(₹ million)
		Year ended Year ended 31 Mar 25 31 Mar 24
Present value of defined benefit obligation		(1,118.63)	(894.44)
Fair value of plan assets		618.77	471.54
Plan liability		(499.86)	(422.90)
Changes in the present value of the defined benefit obligation are as follows:		(₹ million)
		Year ended Year ended 31 Mar 25 31 Mar 24
Openingdefined benefit obligation		894.44	679.63
Interest cost		64.15	50.07
Current service cost		104.69	123.11
Past service cost		-	0.95
Liabilitytransferred in/ acquisition		0.07	1.16
(LiabilityTransferred Out/ Divestments)		(0.20)	-
(Benefit Paid Directlybythe Employer)		(0.04)	(50.52)
(Benefit Paid From the Fund)		(34.02)	-
Actuarial(gains)/losses on obligations
Due to change in demographics assumptions		-	0.01
Due to change in financial assumptions		38.89	13.65
Due to experience		50.65	76.38
Closing defined benefit obligation		1,118.63	894.44
Changes in the fair value of plan assets are as follows:		(₹ million)
		Year ended Year ended 31 Mar 25 31 Mar 24
Openingfair value ofplan assets		471.54	402.11
Interest income		33.76	29.62
Contribution byemployer		149.83	86.97
Benefitspaid		(34.02)	(46.57)
Actuarialgains		(2.34)	(0.59)
Closing fair value ofplan assets		618.77	471.54
The Curr	Group expects to contribute ₹193.96 million towards gratuity in the next year (31 March 2024: ₹159.35 million). ent and non-current bifurcation of provision for gratuity as per actuarial valuation is as follows:		(₹ million)
		Year ended 31 Mar 25	Year ended 31 Mar 24
Non	-current	305.90	263.55
Curr	ent	193.96	159.35
The	category of plan assets as a percentage of the fair value of total plan assets is as follows:
		Year ended 31 Mar 25	Year ended
			31 Mar 24
Inve	stmentwith insurer	100%	100%
The	principal assumptions used in determining gratuity for the Group's plans are shown below:
		Year ended 31 Mar 25	Year ended 31 Mar 24
Disc	ountrate	6.65%	7.19%
Expectedrate of returnonplanassets		6.65%	7.19%
Employee turnover		10.00%	10.00%
Salary escalation		11.00%	11.00%
Weighted average duration		8	8
Mortality rate during employment		Indian Assured Lives Mortality 2012-14 (Urban)	Indian Assured Lives Mortality 2012-14(Urban)

Page 51 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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32. Employee benefits expense

The average expected future service as at 31 March 2025 is 7 years (31 March 2024 - 7 years).

The estimates of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on plan assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

A quantitative sensitivity analysis for significant assumption as at 31 March 2024 is as shown below:

Sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be co-related. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

Sensitivity analysis	(₹ million)	(₹ million)
	Year ended 31 Mar 25	Year ended 31 Mar 24
Projected benefit obligation on current assumptions	1,118.63	894.44
Delta effect of +1% change in rate of discounting	(70.23)	(55.77)
Delta effect of -1% change in rate of discounting	80.00	63.35
Delta effect of +1% change in rate of salaryincrease	75.90	60.40
Delta effect of -1% change in rate of salaryincrease	(68.20)	(54.37)
Delta effect of +1% change in rate of employee turnover	(20.88)	(14.55)
Delta effect of -1% change in rate of employee turnover	23.19	16.16

Methodology for Defined Benefit Obligation:

The Projected Unit Credit (PUC) actuarial method has been used to assess the plan’s liabilities, including those related to death-in-service and incapacity benefits.

Under PUC method a projected accrued benefit is calculated at the beginning of the year and again at the end of the year for each benefit that will accrue for all active members of the plan. The projected accrued benefit is based on the plan’s accrual formula and upon service as of the beginning or end of the year, but using a member’s final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the projected accrued benefits for active members.

Projected benefits payable in future years from the date of reporting:

Maturity analysis of projected benefit obligation from the fund:	(₹ million)	(₹ million)
	Year ended 31 Mar 25	Year ended 31 Mar 24
1st following year	167.63	87.35
2nd following year	83.95	78.32
3rd following year	96.27	123.20
4th following year	107.42	85.89
5th following year	89.47	88.43
Sum ofyears 6 to 10	444.68	365.16
Sum ofyears 11years and above	960.47	806.59

(B) Other defined benefit and contribution plans

Provident Fund

The Group contribute towards Provident Fund to defined contribution retirement benefit plans for eligible employees. Under the schemes, the Group is required to contribute a specified percentage of the payroll costs to fund the benefits. The Group contributes towards Provident Fund managed by Central Government and has recognised ₹ 184.17 million (31 March 2024 - ₹157.96 million) for provident fund contributions in the Statement of Profit and Loss.

Pension Fund

Contribution to National Pension Scheme, a defined contribution scheme, is made at predetermined rates to the asset management companies under National Pension Scheme and is charged to the Statement of Profit and Loss. The Group contribution has recognised ₹ 19.34 million (31 March 2024 ₹15.92 million) for contribution to National Pension Scheme in the Statement of Profit and Loss.

Compensated absences (unfunded)

In respect of Compensated absences, accrual is made on the basis of a year-end actuarial valuation as at balance sheet date except for Halol worker in pursuance of the Group’s leave rules. The actuarial valuation done as per Project Unit Credit Method except for Halol worker.

The leave obligation cover the Group’s liability for earned leave. The amount of the provision of ₹ 261.91 million (31 March 2024 ₹200.76 million) is presented as current. The Group has recognised ₹ 79.14 million (31 March 2024 ₹50.51 million) for compensated absences in the Statement of Profit and Loss.

Page 52 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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33. Finance cost

Accounting Policy

Borrowing costs that are directly attributable to the acquisition, construction or erection of qualifying assets are capitalised as part of cost of such asset until such time that the assets are substantially ready for their intended use. Qualifying assets are assets which take a substantial period of time to get ready for their intended use or sale

Capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended uses are complete. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

Borrowing cost includes interest expense on financial liabilities, interest on tax matters, exchange differences arising from the foreign currency borrowings, gain/loss on fair value of forward cover and it's premium and amortisation of ancillary costs incurred in connection with the arrangement of borrowings.

(₹ million)	(₹ million)	(₹ million)
31 Mar 25 31 Mar 24
Interest expense on financial liabilities at amortised cost (Refer note (a))	1,330.52	872.08
Interest expense on financial liabilities at FVTPL (Refer note 5)	69.17	42.40
Other borrowing costs (Refer note (b))	289.59	168.92
	1,689.28	1,083.40

(a) Interest expense includes ₹16.36 million (31 March 2024 ₹4.26 million) paid / payable to Income Tax Department.

(b) Other borrowing costs would include bank commission charges, bank guarantee charges, letter of credit charges, premium on forward contract, fair value loss/(gain) on forward contracts, other ancillary costs incurred in connection with borrowings

34. **35. **	Depreciation and amortisation expenses (₹ million)	Depreciation and amortisation expenses (₹ million)	Depreciation and amortisation expenses (₹ million)	Depreciation and amortisation expenses (₹ million)
	31 Mar 25 31 Mar 24
	Depreciation of Property, Plant and Equipment (Refer note 3)		2,688.83	2,206.75
	Depreciation of right-of-use assets (Refer note 5)		229.48	191.10
	Amortisation of other intangible assets (Refer note 6)		62.72	52.55
			2,981.03	2,450.40
	Other expenses (₹ million)
	31 Mar 25 31 Mar 24
	Consumption of stores and spares		1,133.15	1,149.30
	Sub-contracting expenses		3,998.65	3,429.68
	Power and fuel		2,564.54	2,181.77
	Rent		117.24	59.65
	Rates and taxes		170.91	100.57
	Insurance		261.02	148.86
	Repairs and maintenance
	Plant and machinery		95.37	78.39
	Buildings		93.51	67.36
	Others		193.29	146.95
	Advertising and sales promotion		1,209.38	1,988.63
	Brokerage and commission		466.78	505.65
	Travelling and conveyance		756.50	566.60
	Communication cost		69.04	48.57
	Legal and professional fees		1,427.20	997.02
	Director sitting fees		7.16	6.86
	Freight & forwarding expenses		3,746.70	3,498.27
	Payments to auditor (Refer note (a))		17.67	14.74
	Sundry advances written off		-	0.53
	Loss on sale of property, plant and equipment		32.85	-
	Fair valuation loss on derivatives (Refer note (b))		-	145.63
	Impairment allowance for trade receivable considered doubtful (Refer note 8 and 14)		219.93	313.66
	Impairment of goodwill		46.22	-
	CS	R expenditure (Refer note (c))	355.59	264.33
	Mis	cellaneous expenses	1,830.44	864.94
			18,813.14	16,577.96
	No (a)	tes: Payments to auditor: (₹ million)
		31 Mar 25 31 Mar 24
		As auditor
		(i) Audit fee	16.17	13.95
		(ii) Certification fees	0.98	0.30
		(iii) Out ofpocket expenses	0.52	0.49
			17.67	14.74

(b) Loss on fair valuation of financial instruments at fair value through profit or loss relates to foreign exchange fluctuation on forward contracts that are designated as at fair value through profit and loss account and on embedded derivatives, which have been separated. No ineffectiveness has been recognised on foreign exchange.

Page 53 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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35. Other expenses

• (c) Details of Corporate Social Responsibility expenses incurred by Parent Company:

er expenses	er expenses	er expenses
Details of Corporate Social Responsibility expenses incurred by Parent Company: (₹ million)
31 Mar 25 31 Mar 24
(A) Gross amount required to be spent by the Parent Company during the year as per provisions of section 135 of the Companies Act, 2013 i.e. 2% of average net profits for last three financial years, calculated as per section 198 of the Companies Act, 2013.	347.84	257.44
Amount transferred to CSR unspent account (B)	167.53	-
Gross amount spent by the Parent Company during the year
(i) Construction / acquisiton of any asset	-	-
(ii)Onpurposes other than(i)above:
Rural and Community Development	9.13	3.13
Education	56.27	37.25
Health Care	104.53	156.62
Environment	7.01	8.57
Social Empowerment	-	-
National Heritage Art & Culture	-	42.00
Administration cost	3.37	11.44
Total CSR spent inactual (C)	180.31	259.01
Shortfall/(Excess) (A-B-C)	-	(1.57)
Details of related party transactions, e.g., contribution to a trust in relation to CSR expenditure as per Ind AS 24, Related Party Disclosures (contributed to Polycab Social Welfare Foundation ("PSWF") where KMP's are interested)	115.02	259.01
Where a provision is made in accordance with paragraph above the same should be presented as per the requirements of Schedule III to the Act. Further, movements in the provision during the year should be shown separately	-	-
The amount of shortfall at the end of the year out of the amount required to be spent by the Company during the year	-	-
The total ofpreviousyears’ shortfall amounts	-	-
The reason for above shortfalls bywayof a note	NA	NA

(d) The unspent amount on ongoing projects as at 31 March 2025 aggregating to ₹ 167.53 million is deposited in separate CSR unspent accounts before the due date.

36. Earnings Per Share

Accounting Policy

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

Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

Employee Stock Option Plan 2018

Pursuant to the resolutions passed by the Group's Board on 30 August 2018 and our Shareholders on 30 August 2018, the Company approved the Employee Stock Option Plan 2018 for issue of options to eligible employees which may result in issue of Equity Shares of not more than 35,30,000 Equity Shares. The Group reserves the right to increase, subject to the approval of the shareholders, or reduce such numbers of shares as it deems fit.

The exercise of the vested option shall be determined in accordance with the notified scheme under the plan.

Employee Stock Option Performance Scheme 2018 and Employee Stock Option Privilege Scheme 2018

The Group also approved Employee Stock Option Performance Scheme 2018 and Employee Stock Option Privilege Scheme 2018 under which the maximum number of options granted to any grantee under "Performance Scheme" together with options granted in any other scheme shall not exceed 1 percent of the total share capital at the time of grant.

(a) Basic Earnings per share

**(b) **		31 Mar 25 31 Mar 24	31 Mar 25 31 Mar 24	31 Mar 25 31 Mar 24
	Profit for the year	₹ in million A	20,199.90	17,840.45
	Weighted average number of equity shares for basic earning per share*	Number B	15,03,64,869	15,00,14,272
	Earnings per shares - Basic(one equity share of ₹ 10 each)	₹per share (A/B)	134.34	118.93
	Diluted Earnings per share
		31 Mar 25 31 Mar 24
	Profit for theyear	₹ in million A	20,199.90	17,840.45
	Weighted average number of equity shares for basic earning per share*	Number B	15,03,64,869	15,00,14,272
	Effect of dilution
	Share options	Number C	6,09,268	5,52,203
	Weighted average number of equity shares adjusted for effect of dilution	Number D=(B+C)	15,09,74,137	15,05,66,475
	Earnings per shares - Diluted(one equity share of ₹ 10 each)	₹per share (A/D)	133.80	118.49

• Refer note 16(a) for movement of shares

Note: There have been no other transactions involving equity shares or potential equity shares between the reporting date and the date of authorisation of these financial statements.

Page 54 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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37. Contingent liabilities and commitments

Accounting Policy

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group or a present obligation that is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Group does not recognise a contingent liability but discloses it's existence in the financial statements.

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

(A) Contingent liabilities (to the extent not provided for)

Contingent liabilities (to the extent not provided for)	Contingent liabilities (to the extent not provided for)	Contingent liabilities (to the extent not provided for)
(₹ million)
	31 Mar 25	31 Mar 24
(i) Taxation matters
Disputed liability in respect of sales tax /VAT demand and pending sales tax/VAT forms	0.66	0.66
Disputed liability in respect of service tax duty demand	18.17	18.17
Disputed liabilityin respect of excise dutydemand	8.60	8.60
Disputed liabilityin respect of custom dutydemand	17.08	17.08
Disputed liabilityin respect of income tax demand	3.71	3.71
Disputed liabilityin respect of Goods & Service Tax	3.90	9.64
(ii) Customs duty on capital goods imported under Export Promotion Capital Goods Scheme, against which export obligation is to be fulfilled	293.60	149.18
(iii) Customs duty on raw materials imported under Advance License, against which export obligation is to be fulfilled	334.95	376.37

Notes:

• (a) In respect of the items above, future cash outflows in respect of contingent liabilities are determinable only on receipt of judgements/decisions pending at various forums/authority. The Group doesn't expect the outcome of matters stated above to have a material adverse effect on the Group's financial conditions, result of operations or cash flows.

(b) There is uncertainty and ambiguity in interpreting and giving effect to the guidelines of Honourable Supreme Court vide its ruling in February 2019, in relation to the scope of compensation on which the organisation and its employees are to contribute towards Provident Fund. The Company will evaluate its position and act, as clarity emerges.

(B) Commitments

Commitments	Commitments	Commitments
(₹ million)
	31 Mar 25	31 Mar 24
(i) Capital commitments
(Estimated value of contracts in capital account remaining to be executed and not provided for (net of capital advances))
Towards Property, Plant and Equipment	15,221.90	10,575.30
Note: For lease commitments, refer note 5

38. Pursuant to the search action by the Income-tax authorities in December 2023, assessment / re-assessment orders for AY 2014-15 to AY 2023-24 were passed in the FY 2024-25. Against the said orders, the Company filed appeals and application for rectifications with the appropriate authorities. After considering rectification orders, received post the balance sheet date, the aggregate tax demand is ₹ 544.71 million and interest thereon is ₹ 174.27 million. The Company, in consultation with its tax experts, believe that these orders are not tenable in law and its favorable position will likely to be upheld by the appropriate authorities. Accordingly, no provision has been made in the financial statements. The assessment proceedings for AY 24-25 are currently under process.

Page 55 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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39. Related party disclosure

(A) Enterprises where control exists Joint Ventures Techno Electromech Private Limited(TEPL) (B) Enterprises owned or significantly influenced by Key Management Personnel AK Enterprises(AK) Polycab Social Welfare Foundation(PSWF) Transigo Fleet LLP Bootbhavani Fabricators(upto 29 June 2023) S.B. Enterprise(upto 29 June 2023) T.P. Ostwal & Associates LLP,Chartered Accountants (C) Key Management Personnel (i) Executive Directors Mr. Inder T. Jaisinghani Mr. Rakesh Talati Mr. Bharat A. Jaisinghani Mr. Nikhil R. Jaisinghani Mr. VijayPandey Mr. Gandharv Tongia (ii) Non- Executive Directors Mr. R.S. Sharma Mr. T.P. Ostwal Mr. PradeepPoddar Ms. Sutapa Banerjee Ms. Manju Agarwal Mr. Bhaskar Sharma Mr. Sumit Malhotra (iii) Key Management Personnel Ms. Manita Gonsalves (D) Relatives of Key Management Personnel Mr. Kunal I. Jaisinghani Ms. Shikha Jaisinghani Ms. Kiara Duhlani Ms. Deepika Sehgal Ms. Jayshriben Talati (E) Transactions with Group companies (i) Sale ofgoods(including GST) Techno Electromech Private Limited (ii) Purchase ofgoods(including GST) Techno Electromech Private Limited (iii) Sub-contracting expense(including GST) Techno Electromech Private Limited (iv) Job work Income(including GST) Techno Electromech Private Limited (v) Interest received Techno Electromech Private Limited (vi) Testing chargespaid(including GST) Techno Electromech Private Limited (vii) Recovery of manpower charges(including GST) Techno Electromech Private Limited (viii) Rent Expenses(including GST) Techno Electromech Private Limited	(A) Enterprises where control exists Joint Ventures Techno Electromech Private Limited(TEPL) (B) Enterprises owned or significantly influenced by Key Management Personnel AK Enterprises(AK) Polycab Social Welfare Foundation(PSWF) Transigo Fleet LLP Bootbhavani Fabricators(upto 29 June 2023) S.B. Enterprise(upto 29 June 2023) T.P. Ostwal & Associates LLP,Chartered Accountants (C) Key Management Personnel (i) Executive Directors Mr. Inder T. Jaisinghani Mr. Rakesh Talati Mr. Bharat A. Jaisinghani Mr. Nikhil R. Jaisinghani Mr. VijayPandey Mr. Gandharv Tongia (ii) Non- Executive Directors Mr. R.S. Sharma Mr. T.P. Ostwal Mr. PradeepPoddar Ms. Sutapa Banerjee Ms. Manju Agarwal Mr. Bhaskar Sharma Mr. Sumit Malhotra (iii) Key Management Personnel Ms. Manita Gonsalves (D) Relatives of Key Management Personnel Mr. Kunal I. Jaisinghani Ms. Shikha Jaisinghani Ms. Kiara Duhlani Ms. Deepika Sehgal Ms. Jayshriben Talati (E) Transactions with Group companies (i) Sale ofgoods(including GST) Techno Electromech Private Limited (ii) Purchase ofgoods(including GST) Techno Electromech Private Limited (iii) Sub-contracting expense(including GST) Techno Electromech Private Limited (iv) Job work Income(including GST) Techno Electromech Private Limited (v) Interest received Techno Electromech Private Limited (vi) Testing chargespaid(including GST) Techno Electromech Private Limited (vii) Recovery of manpower charges(including GST) Techno Electromech Private Limited (viii) Rent Expenses(including GST) Techno Electromech Private Limited	(A) Enterprises where control exists Joint Ventures Techno Electromech Private Limited(TEPL) (B) Enterprises owned or significantly influenced by Key Management Personnel AK Enterprises(AK) Polycab Social Welfare Foundation(PSWF) Transigo Fleet LLP Bootbhavani Fabricators(upto 29 June 2023) S.B. Enterprise(upto 29 June 2023) T.P. Ostwal & Associates LLP,Chartered Accountants (C) Key Management Personnel (i) Executive Directors Mr. Inder T. Jaisinghani Mr. Rakesh Talati Mr. Bharat A. Jaisinghani Mr. Nikhil R. Jaisinghani Mr. VijayPandey Mr. Gandharv Tongia (ii) Non- Executive Directors Mr. R.S. Sharma Mr. T.P. Ostwal Mr. PradeepPoddar Ms. Sutapa Banerjee Ms. Manju Agarwal Mr. Bhaskar Sharma Mr. Sumit Malhotra (iii) Key Management Personnel Ms. Manita Gonsalves (D) Relatives of Key Management Personnel Mr. Kunal I. Jaisinghani Ms. Shikha Jaisinghani Ms. Kiara Duhlani Ms. Deepika Sehgal Ms. Jayshriben Talati (E) Transactions with Group companies (i) Sale ofgoods(including GST) Techno Electromech Private Limited (ii) Purchase ofgoods(including GST) Techno Electromech Private Limited (iii) Sub-contracting expense(including GST) Techno Electromech Private Limited (iv) Job work Income(including GST) Techno Electromech Private Limited (v) Interest received Techno Electromech Private Limited (vi) Testing chargespaid(including GST) Techno Electromech Private Limited (vii) Recovery of manpower charges(including GST) Techno Electromech Private Limited (viii) Rent Expenses(including GST) Techno Electromech Private Limited
			Country of		Ownershipinterest (%)
			incorporation		31 Mar 25	31 Mar 24
	Joint Ventures
	Techno Electromech Private Limited(TEPL)		India		50%	50%
	Enterprises owned or significantly influenced by Key Management Personnel
	AK Enterprises(AK)
	Polycab Social Welfare Foundation(PSWF)
	Transigo Fleet LLP
	Bootbhavani Fabricators(upto 29 June 2023)
	S.B. Enterprise(upto 29 June 2023)
	T.P. Ostwal & Associates LLP,Chartered Accountants
	Mr. I	nder T. Jaisinghani	Chairman and ManagingDirector
	Mr. R	akesh Talati	Whole-time Dire	ctor(upto 21 January2025)
	Mr. B	harat A. Jaisinghani	Whole-time Dire	ctor
	Mr. Nikhil R. Jaisinghani Mr. VijayPandey	ikhil R. Jaisinghani	Whole-time Dire	ctor
			ExecutiveDirect	or(w.e.f. 22January2025)
	Mr. Gandharv Tongia (ii) Non- Executive Directors		Executive Direct	or and Chief Financial Officer
	Mr. R.S. Sharma		Independent Dir	ector
	Mr. T.P. Ostwal		Independent Dir	ector
	Mr. PradeepPoddar		Independent Dir	ector(upto 19 September 2023)
	Ms. Sutapa Banerjee		Independent Dir	ector
	Ms. Mr. B Mr. S	Manju Agarwal	Independent Dir Independent Dir Independent Dir	ector
		haskar Sharma		ector(w.e.f. 12 May2023)
		umit Malhotra		ector(w.e.f. 22 January2025)
	(iii) Key Management Personnel
	Ms. Manita Gonsalves		CompanySecretaryand Vice- President Legal
	Relatives of Key Management Personnel
	Mr. Kunal I. Jaisinghani		Son of Mr. Inder T. Jaisinghani
	Ms. Shikha Jaisinghani		Daughter of Mr.Inder T. Jaisinghani
	Ms. Kiara Duhlani		Sister of Mr. Bharat A. Jaisinghani
	Ms. Deepika Sehgal		Sister of Mr. Nikhil R. Jaisinghani
	Ms. Jayshriben Talati		Wife of Mr. Rakesh Talati
					(₹ million)
					Year ended 31 Mar 25	Year ended 31 Mar 24
	(i) Sale ofgoods(including GST)
	Techno Electromech Private Limited		Joint Venture		1,771.11	1,629.24
	(ii) Purchase ofgoods(including GST)
	Techno Electromech Private Limited		Joint Venture		2,045.96	1,394.68
	(iii) Sub-contracting expense(including GST)
	Techno Electromech Private Limited		Joint Venture		-	4.85
	(iv) Job work Income(including GST)
	Techno Electromech Private Limited		Joint Venture		11.58	13.09
	(v) Interest received
	Techno Electromech Private Limited		Joint Venture		10.75	10.53
	(vi) Testing chargespaid(including GST)
	Techno Electromech Private Limited		Joint Venture		0.14	0.29
	(vii) Recovery of manpower charges(including GST)
	Techno Electromech Private Limited		Joint Venture		5.37	2.60
	(viii) Rent Expenses(including GST)
	Techno Electromech Private Limited		Joint Venture		0.33	0.33

Page 56 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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39. Related party disclosure

39. Related party disclosure	39. Related party disclosure	39. Related party disclosure	39. Related party disclosure
(F) Outstanding as at the year end (₹ million) Year ended Year ended 31 Mar 25 31 Mar 24 (i) Loansgiven Techno Electromech Private Limited 100.00 100.00 (ii) Trade Receivables Techno Electromech Private Limited 1,131.60 1,031.62 (iii) Interest accrued on loangiven Techno Electromech Private Limited 2.39 2.62 (iv) Trade Payables Techno Electromech Private Limited 44.09 - Joint Venture Joint Venture Joint Venture Joint Venture
		Year ended 31 Mar 25	Year ended 31 Mar 24
	(i) Loansgiven
	Techno Electromech Private Limited Joint Venture	100.00	100.00
	(ii) Trade Receivables
	Techno Electromech Private Limited Joint Venture	1,131.60	1,031.62
	(iii) Interest accrued on loangiven
	Techno Electromech Private Limited Joint Venture	2.39	2.62
	(iv) Trade Payables
	Techno Electromech Private Limited Joint Venture	44.09	-

(G) Transactions with KMP

(i) Remuneration paid for the year ended and outstanding as on:[(a)]

ctions with KMP	ctions with KMP	ctions with KMP	ctions with KMP
Remunerationpaid for theyear ended and outstanding as on:(a) (₹ million)
31 Mar 25 31 Mar 24
For the year ended Outstanding for the yearend For the year ended			Outstanding for the yearend
CMD and Executive directors
Short term employee benefits	471.11 293.28	417.53 260.29
Share basedpayment	51.65 -	58.99 -
Non-Executive directors
Director sittingfees	7.16	6.78
Commission	20.08 20.08	15.29 15.29
Key managementpersonnel(excluding CMD and WTD)
Short term employee benefits	6.04 0.44	5.19 0.38
Share basedpayment	7.66	-

(a) As the liabilities for gratuity and leave encashment are provided on actuarial basis for the Company as a whole, the amounts pertaining to the directors and KMP are not included above.

(ii)	Transactions with enterprises owned or significantly influenced by key managerial personnel	Transactions with enterprises owned or significantly influenced by key managerial personnel	Transactions with enterprises owned or significantly influenced by key managerial personnel	(₹ million)
			31 Mar 25	31 Mar 24
	Nature of transaction		For the year ended Outstanding for theyear end	For the year ended Outstanding for theyear end
	Polycab Social Welfare Foundation	Donation	115.02 -	258.56 -
	Transigo Fleet LLP	Professional fees (including GST)	19.12 5.83	19.12 2.92
	AK Enterprises*	Rent paid (including GST)	29.17 -	29.17 2.23
	T.P. Ostwal & Associates LLP Professional fees(includingGST)		0.41 -	0.73 0.11

*Security deposit given to AK Enterprises amounting to ₹6.17 million (31 March 2024 : ₹ 6.17 million).

(H) Transactions with relatives of KMP:

	For the year ended Outstanding for the year end For the year ended Outstanding for the year end 31 Mar 25 31 Mar 24	For the year ended Outstanding for the year end For the year ended Outstanding for the year end 31 Mar 25 31 Mar 24	For the year ended Outstanding for the year end For the year ended Outstanding for the year end 31 Mar 25 31 Mar 24
	Remuneration to other relatedparties
	Salaries,wages,bonus,commission and other benefits	10.20 0.02	7.30 -
	Contribution to PF,FamilyPension and ESI	0.32 -	0.29 -
	Rent Paid
	Mrs. Jayshriben Talati	0.48 -	0.59 -

(I)

Terms and conditions of transactions with related parties:

i. The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the period-end are unsecured and settlement occurs in cash or credit as per the terms of the arrangement.

ii. Guarantees are issued by the Group in accordance with Section 186 of the Companies Act, 2013 read with rules issued thereunder.

iii. For the year ended 31 March 2025, the Group has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2024: Nil). This assessment is undertaken each financial year through examining the financial position of the related party.

Page 57 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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40. Segment reporting

Accounting Policy

Identification of segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Group’s Chief Operating Decision Maker (“CODM”) to make decisions for which discrete financial information is available. The Company's chief operating decision maker is Chairman and Managing Directors.

The Operating Segment is the level at which discrete financial information is available. Operating segments are identified considering:

• a the nature of products and services

• b the differing risks and returns

• c the internal organisation and management structure, and

• d the internal financial reporting systems.

The Board of Directors monitors the operating results of all product segments separately for the purpose of making decisions about resource allocation and performance assessment based on an analysis of various performance indicators by business segments and geographic segments.

Segment revenue and expenses

• 1 It has been identified to a segment on the basis of relationship to operating activities of the segment.

• 2 The Group generally accounts for intersegment sales and transfers at cost plus appropriate margins.

• 3 Intersegment revenue and profit is eliminated at group level consolidation.

• 4 Finance income earned and finance expense incurred are not allocated to individual segment and the same has been reflected at the Group level for segment reporting as the underlying instruments are managed at Group level.

Segment assets and liabilities

Segment assets and segment liabilities represent assets and liabilities of respective segments, however the assets and liabilities not identifiable or allocable on reasonable basis being related to enterprise as a whole have been grouped as unallocable.

The accounting policies of the reportable segments are same as that of Group’s accounting policies described.

No operating segments have been aggregated to form the above reportable operating segments. Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

The group is organised into business units based on its products and services and has three reportable segments as follows

Wires and Cables: Manufacture and sale of wires and cables

Fast moving electrical goods (FMEG): Fans, LED lighting and luminaires, switches, switchgears, solar products, pumps, conduits and domestic appliances.

EPC: Design, engineering, supply of materials, survey, execution and commissioning of projects on a turnkey basis.

For the year ended 31 March 2025, the EPC business met the criteria under Ind AS 108 for separate disclosure and is now reported as an independent segment, having previously been included under the “Others” segment. Additionally, Dowells Cable Accessories Private Limited and Tirupati Reels Private Limited, earlier classified under “Others,” have been reclassified into the Wires & Cables segment, reflecting their role as an extension and backward integration of Wires & Cables business. Comparative figures for the previous year have been reclassified accordingly.

Page 58 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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40. Segment Reporting

**(A) **	The following summary describes the operations in each of the Group's reportable segments: (₹ million)	The following summary describes the operations in each of the Group's reportable segments: (₹ million)	The following summary describes the operations in each of the Group's reportable segments: (₹ million)
		Wires & Cables FMEG EPC Eliminations Total 31 Mar 25	Wires & Cables FMEG EPC Eliminations Total 31 Mar 24
	External sales	1,88,881.03 16,535.42 19,192.39 - 2,24,608.84	1,60,676.85 12,827.58 7,887.70 - 1,81,392.13
	Inter segment revenue	3,485.30 286.33 - (3,771.63) -	2,129.09 160.64 - (2,289.73) -
	Total Income	1,92,366.33 16,821.75 19,192.39 (3,771.63) 2,24,608.84	1,62,805.94 12,988.22 7,887.70 (2,289.73) 1,81,392.13
	Segment Results
	External	25,722.48 (381.80) 1,806.40 - 27,147.08	23,771.96 (938.86) 632.24 - 23,465.34
	Inter segment results	480.69 (7.46) - (473.23) -	306.43 (3.09) - (303.34) -
	Segment/Operating results	26,203.17 (389.26) 1,806.40 (473.23) 27,147.08	24,078.39 (941.95) 632.24 (303.34) 23,465.34
	Un-allocated items:
	Finance income	1,550.65	1,211.06
	Finance costs	1,689.28	1,083.40
	Share of profit/(loss) of joint venture(Net of tax)	- - - - -	- - - - -
	Profit before tax	27,008.45	23,593.00
	Tax expenses
	Current tax	6,154.98	5,535.25
	Deferred tax charge/(credit)	398.10	28.58
	Profit for theyear	20,455.37	18,029.17
	Depreciation & amortisation expenses	2,625.92 341.43 13.68 - 2,981.03	2,116.34 325.14 8.92 - 2,450.40
	Non-cash expenses/ (Income) other than depreciation	(119.67) 227.04 171.96 - 279.33	781.18 82.04 (49.50) - 813.72
	Total cost incurred during the year to acquire segment assets (net of disposal)	8,953.50 629.85 - - 9,583.35	7,947.74 631.99 - - 8,579.73

(B) (C) (D) **(E) **	Revenue by Geography The amount of its revenue from external customers analysed by the country, in which customers are located, are given below:	Revenue by Geography The amount of its revenue from external customers analysed by the country, in which customers are located, are given below:	Revenue by Geography The amount of its revenue from external customers analysed by the country, in which customers are located, are given below:	Revenue by Geography The amount of its revenue from external customers analysed by the country, in which customers are located, are given below:	Revenue by Geography The amount of its revenue from external customers analysed by the country, in which customers are located, are given below:
				Year ended 31 Mar 25	Year ended 31 Mar 24
	Within India			2,11,156.98	1,67,032.52
	Outside India			13,451.86	14,359.61
				2,24,608.84	1,81,392.13
	Segment assets
		Wires & Cables FMEG EPC Eliminations Total 31 Mar 25	Wires & Cables FMEG EPC Eliminations Total 31 Mar 24
	Segment assets	80,001.30 8,437.20 17,235.42 - 1,05,673.92	75,854.69 7,765.94 8,386.31 - 92,006.94
	Unallocated assets:
	Current investments	17,490.42	18,224.17
	Income tax assets (net)	503.73	297.08
	Deferred tax assets (net)	240.40	128.69
	Cash and cash equivalents and bank balance	8,171.40	4,081.92
	Loans	111.00	106.26
	Other unallocable assets	5,536.49	5,943.78
	Total assets	1,37,727.36	1,20,788.84
	Segment liabilities
		Wires & Cables FMEG EPC Eliminations Total 31 Mar 25	Wires & Cables FMEG EPC Eliminations Total 31 Mar 24
	Segment liabilities	22,513.95 3,650.55 5,180.31 - 31,344.81	25,665.87 2,563.50 4,378.03 - 32,607.40
	Unallocated liabilities:
	Borrowings (Non-Current and Current, including Current Maturity)	1,090.04	897.74
	Current tax liabilities(net)	155.59	125.44
	Deferred tax liabilities(net)	1,025.03	543.71
	Other unallocable liabilities	5,043.95	4,181.14
	Total liabilities	38,659.42	38,355.43
	Non-current assets by Geography The total of non-current assets excluding financial assets and deferred tax assets analysed by the country in which assets are located are given below:
				Year ended 31 Mar 25	Year ended 31 Mar 24
	Within India			40,404.37	32,018.50
	Outside India			185.84	-
				40,590.21	32,018.50

Page 59 of 71

Notes to Consolidated Financial Statements for the year ended 31 March 2025

Polycab India Limited

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41. Information for Consolidated Financial Statement pursuant to Schedule III of the Companies Act, 2013

For the year ended 31 Mar 2025

	Net Assets, i.e., total assets minus total liabilities	Net Assets, i.e., total assets minus total liabilities	Share in profit or loss	Share in profit or loss	Share in other comprehensive income	Share in other comprehensive income	Share in total comprehensive income	Share in total comprehensive income
	As % of consolidated net assets	Amount	As % of consolidated profit or loss	Amount	As % of consolidated OCI	Amount	As % of consolidated total comprehensive income	Amount
Parent
PolycabIndiaLimited	97.94% 97,027.87		97.76% 19,997.48		94.85% (66.11)		97.77% 19,931.37
Subsidiaries
Indian
Tirupati Reels Private Limited	0.31% 311.13		0.34% 69.46		-0.27% 0.19		0.34% 69.65
Dowells Cable Accessories Private Limited	0.85% 844.70		1.46% 297.95		0.00% -		1.46% 297.95
Steel Matrix Private Limited	0.00% 0.81		0.00% (0.10)		0.00% -		0.00% (0.10)
Uniglobus electricals and electronics Private Limited	0.09% 93.48		-0.75% (153.84)		0.73% (0.51)		-0.76% (154.35)
Polycab Support Force Private Limited	0.01% 6.68		0.02% 3.79		0.00% -		0.02% 3.79
Polycab Electricals And Electronics Private Limited	0.00% 0.87		0.00% (0.05)		0.00% -		0.00% (0.05)
Foreign
Polycab Australia Pty. Limited	0.03% 33.41		0.16% 32.91		3.21% (2.24)		0.15% 30.67
Polycab USA Inc	-0.07% (68.70)		-0.23% (47.70)		1.69% (1.18)		-0.24% (48.88)
Investment accounted for using the equity method
TechnoElectromech PrivateLimited	0.00% -		0.00% -		0.00% -		0.00% -
Non controlling interest
Indian
Tirupati Reels Private Limited	0.26% 254.56		0.28% 56.84		-0.22% 0.15		0.28% 56.99
Dowells Cable Accessories Private Limited	0.57% 563.13		0.97% 198.63		0.00% -		0.97% 198.63
TOTAL	100.00% 99,067.94		100.00% 20,455.37		100.00% (69.70)		100.00% 20,385.67

For the year ended 31 Mar 2024

	Net Assets, i.e., total assets minus total liabilities	Net Assets, i.e., total assets minus total liabilities	Share in profit or loss	Share in profit or loss	Share in other comprehensive income	Share in other comprehensive income	Share in total comprehensive income	Share in total comprehensive income
	As % of consolidated net assets	Amount	As % of consolidated profit or loss	Amount	As % of consolidated OCI	Amount	As % of consolidated total comprehensive income	Amount
Parent
PolycabIndiaLimited	98.37% 81,086.79		97.74% 17,620.81		80.02% (82.01)		97.84% 17,538.80
Subsidiaries
Indian
Tirupati ReelsPrivateLimited	0.29% 241.46		0.30% 53.58		0.20% (0.20)		0.30% 53.38
Dowells CableAccessoriesPrivateLimited	0.66% 546.76		1.21% 217.33		0.00% -		1.21% 217.33
Steel Matrix PrivateLimited	0.00% 0.91		0.00% (0.05)		0.00% -		0.00% (0.05)
Uniglobus electricals and electronics Private Limited	-0.08% (62.15)		-0.50% (90.98)		0.01% (0.01)		-0.51% (90.99)
Polycab SupportForcePrivateLimited	0.00% 2.51		0.00% 0.58		0.00% -		0.00% 0.58
Polycab Electricals And Electronics Private Limited	0.00% 0.93		0.00% (0.03)		0.00% -		0.00% (0.03)
Foreign
PolycabAustraliaPtyLimited	0.09% 74.40		0.20% 36.19		-2.95% 3.02		0.22% 39.21
Polycab USA Inc	-0.02% (20.27)		0.02% 3.02		22.56% (23.12)		-0.11% (20.10)
Investment accounted for using the equity method
TechnoElectromech PrivateLimited	0.00% -		0.00% -		0.00% -		0.00% -
Non controlling interest
Indian
Tirupati ReelsPrivateLimited	0.24% 197.56		0.24% 43.84		0.17% (0.17)		0.24% 43.67
Dowells CableAccessoriesPrivateLimited	0.44% 364.51		0.80% 144.88		0.00% -		0.81% 144.88
TOTAL	100.00% 82,433.41		100.00% 18,029.17		100.00% (102.49)		100.00% 17,926.68

Page 60 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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42. Financial Instruments and Fair Value measurement

A) Financial Instruments Accounting Policy

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

Financial assets

• (i) Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through Statement of Profit and Loss, transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at transaction price. Financial assets are classified at the initial recognition as financial assets measured at fair value or as financial assets measured at amortised cost.

• (ii) Subsequent measurement

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

• (a) Financial assets at amortised cost

(b) Financial assets at fair value

Where assets are measured at fair value, gains and losses are either recognised entirely in the Statement of Profit and Loss (i.e. fair value through Statement of Profit and Loss), or recognised in other comprehensive income (i.e. fair value through other comprehensive income) depending on the classification at initial recognition.

(a) Financial assets carried at amortised cost

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

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

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

(b) (i) Financial assets at fair value through other comprehensive income

Financial assets is subsequently measured at fair value through other comprehensive income if it is held with in a business model whose objective is achieved by both collections contractual cash flows and selling financial assets and the contractual terms of the financial assets give rise on specified dated to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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

If the Group decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Group may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

(ii) Financial assets at fair value through profit or loss

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

(iii) Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a Group of similar financial assets) is primarily derecognised when:

• (a) The rights to receive cash flows from the asset have expired, or

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

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

The Group discloses analysis of the gain or loss recognised in the statement of profit and loss arising from the derecognition of financial assets measured at amortised cost, showing separately gains and losses arising from derecognition of those financial assets.

• (iv) Impairment of financial assets The Group assesses impairment based on expected credit losses (ECL) model for the following:

• (a) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115.

• (b) The Group follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables and contract assets.

Page 61 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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42. Financial Instruments and Fair Value measurement

The application of simplified approach does not require the Group to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

The Group recognises an allowance for ECL for all debt instruments not held at fair value through profit or loss. ECL are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECL are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECL are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Group recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. In determining the allowances for doubtful trade receivables, the Group has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and allowance rates used in the provision matrix. For all other financial assets, expected credit losses are measured at an amount equal to the 12-months expected credit losses or at an amount equal to the 12 months expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

For recognition of impairment loss on other financial assets and risk exposure, the Group determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used.

If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

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

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

Financial liabilities

(i) Initial recognition and measurement All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, lease liabilities and derivative financial instruments.

(ii) Subsequent measurement

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

(a) Financial liabilities at fair value through profit or loss

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

(b) Gains or losses on liabilities held for trading are recognised in the profit or loss

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

(c) Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate method.

(iii) Embedded Derivatives

A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if: the economic characteristics and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and the hybrid contract is not measured at fair value through profit or loss.

Page 62 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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42. Financial Instruments and Fair Value measurement

• (iv) Derecognition

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

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

B) Fair value measurement

Accounting policy

The Group measures financial instruments, such as, derivatives, mutual funds etc. at fair value at each Balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• (a) In the principal market for the asset or liability, or

• (b) In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Group.

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

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

All assets and liabilities for which fair value is measured or disclosed in the Financial Statements are categorised within the fair value hierarchy, to provide an indication about the reliability of inputs used in determining fair value, the group has classified its financial statements into three levels prescribed under the IND AS as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

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

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

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

Set out below, is a comparison by class of the carrying amounts and fair value of the Group's financial instruments:

Set out below, is a comparison by class of the carrying amounts and fair value of the Group's financial instruments:	Set out below, is a comparison by class of the carrying amounts and fair value of the Group's financial instruments:	Set out below, is a comparison by class of the carrying amounts and fair value of the Group's financial instruments:	Set out below, is a comparison by class of the carrying amounts and fair value of the Group's financial instruments:	Set out below, is a comparison by class of the carrying amounts and fair value of the Group's financial instruments:
(₹ million)
Carrying value Fair value
	31 Mar 25	31 Mar 24	31 Mar 25	31 Mar 24
Financial assets
Measured at amortised cost
Trade receivables	28,957.06	21,661.87	28,957.06	21,661.87
Cash and cash equivalents	2,173.87	3,070.31	2,173.87	3,070.31
Bank balance other than cash and cash equivalents	5,532.49	953.27	5,532.49	953.27
Loans	111.00	106.26	111.00	106.26
Other financial assets	1,413.35	623.22	1,413.35	623.22
Measured at fair value through profit or loss account(FVTPL)
Firm Commitment	318.49	-	318.49	-
Investment in mutual funds	17,490.42	18,224.17	17,490.42	18,224.17
Derivative assets	128.06	23.64	128.06	23.64
	56,124.74	44,662.74	56,124.74	44,662.74
Financial liabilities
Measured at amortised cost
Borrowings - long term including current maturities and short term	1,090.04	897.74	1,045.44	895.68
Acceptances	13,062.37	18,619.66	13,062.37	18,619.66
Trade payables	14,295.19	10,013.59	14,295.19	10,013.59
Creditors for capital expenditure	1,108.95	839.32	1,108.95	839.32
Obligations under lease	934.33	713.19	1,085.74	764.25
Other financial liabilities	1,340.97	1,541.95	1,340.97	1,541.95
Measured at fair value through profit or loss account (FVTPL)
Derivative liabilities	643.33	577.23	643.33	577.23
	32,475.18	33,202.68	32,581.98	33,251.68

Page 63 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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42. Financial Instruments and Fair Value measurement

B)[Fair value measurement]

• (a) The management assessed that cash and cash equivalents, trade receivables, trade payables, short-term borrowings, loans to related party, loans to employees, short term security deposit, lease liabilities and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

• (b) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

• (c) Fixed deposit of ₹ 460.17 million (31 Mar 2024: ₹ 80.4 million) is restricted for withdrawal, considering it is lien against commercial arrangements.

• (d) Measurement of fair values

The following table shows the valuation techniques used in measuring fair values, as well as the significant observable inputs used (if any)

Financial instruments measured at fair value:

Type

Valuation technique

Mutual Fund Investments Commodity Futures Embedded Derivatives Foreign exchange forward contracts

Net asset value quoted by mutual funds, , with appropriate adjustments as required by Ind AS 113 Basis the quotes given by the LME broker/ dealer, with appropriate adjustments as required by Ind AS 113 Basis the quotes given by the LME broker/ dealer , with appropriate adjustments as required by Ind AS 113 MTM value as per RBI reference rate , with appropriate adjustments as required by Ind AS 113

Fair value hierarchy

All assets and liabilities for which fair value is measured or disclosed in the Financial Statements are categorised within the fair value hierarchy, to provide an indication about the reliability of inputs used in determining fair value, the Group has classified its financial statements into three levels prescribed under the Ind AS as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

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

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

The following table provides the fair value measurement hierarchy of the Group's assets and liabilities.

Quantitative disclosures fair value measurement hierarchy for assets and liabilitiesas at 31 Mar 25:

(₹ million)

	Quoted prices in active markets Significant observable inputs Significant unobservable inputs (Level 1) (Level 2) (Level 3) Date of valuation Total Fair value measurement using
Assets measured at fair value:
Units of mutual funds	31 Mar 25 17,490.42 17,490.42 - -
Derivative assets
Embedded derivatives	31 Mar 25 44.08 - 44.08 -
Foreign exchange forward contract	31 Mar 25 83.98 - 83.98 -
Liabilities measured at fair value:
Derivative liabilities:
Foreign exchange forward contract	31 Mar 25 198.70 - 198.70 -
Commoditycontracts	31 Mar 25 444.63 - 444.63 -

Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at 31 Mar 24:

(₹ million)

Quoted prices in active markets Significant observable inputs Significant unobservable inputs (Level 1) (Level 2) (Level 3) Date of valuation Total Fair value measurement using	Quoted prices in active markets Significant observable inputs Significant unobservable inputs (Level 1) (Level 2) (Level 3) Date of valuation Total Fair value measurement using	Quoted prices in active markets Significant observable inputs Significant unobservable inputs (Level 1) (Level 2) (Level 3) Date of valuation Total Fair value measurement using
Assets measured at fair value:
Units of mutual funds	31 Mar 24 18,224.17 18,224.17 -	-
Derivative assets
Embedded derivatives	31 Mar 24 1.99 - 1.99	-
Foreign exchange forward contract	31 Mar 24 21.65 - 21.65	-
Liabilities measured at fair value:
Derivative liabilities:
Foreign exchange forward contract	31 Mar 24 9.04 - 9.04 31 Mar 24 568.19 - 568.19	-
Commoditycontracts		-

Page 64 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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42. Financial Instruments and Fair Value measurement

Notes:

(a) Investment Property Under Construction is measured at cost as at 31 March 2025 of ₹ 790.08 million (31 March 2024: ₹ 762.98 million). The fair value measurement is required for disclosure purpose in the financial statements as per Ind AS 40.(Refer note 4).

• (b) There is no transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period. Timing of transfer between the levels determined based on the following:

• (a) the date of the event or change in circumstances that caused the transfer

• (b) the beginning of the reporting period

• (c) the end of the reporting period

43. Financial Risk Management Objectives and Policies

The Group's principal financial liabilities, other than derivatives, comprise acceptances, borrowing, trade payables, lease liabilities and other liabilities. The main purpose of these financial liabilities is to finance the Group's operations and to provide guarantees to support its operations. the Group's principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Group also holds FVTPL investments and enters into derivative transactions.

The Group is exposed to market risk, credit risk and liquidity risk. The Board of Directors of the Group has formed a Risk Management Committee to periodically review the risk management policy of the Group so that the management manages the risk through properly defined mechanism's Risk Management Committee's focus is to foresee the unpredictability and minimize potential adverse effects on the Group's financial performance.

The Group's overall risk management procedures to minimise the potential adverse effects of financial market on the Group's performance are as follows:

(A) Market Risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, trade receivables, deposits, FVTPL investments and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group's exposure to the risk of changes in market interest rates relates primarily to the Group's debt obligations with floating interest rates. The Group is also exposed to the risk of changes in market interest rates relates due to its investments in mutual fund units in debt funds.

Total borrowings as on 31 March 2025 are ₹ 1,090.04 million (31 March 2024: ₹ 897.74 million) out of which ₹ 570.65 million as on 31 March 2025 (31 March 2024: ₹ 317.99 million) pertains to fixed rate of interest.

Acceptances as at 31 March 2025 of ₹ 13,062.37 million (31 March 2024: ₹ 18,619.66 million) are at a fixed rate of interest.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting. With all other variables held constant, the Group's profit before tax is affected through the impact on floating rate borrowings, as follows:

				(₹ million)
		Exposure to interest rate risk	Increase/	Effect on profit
		(Principal amount of loan)	decrease in basis points	before tax
31	Mar 2025	519.39
	Increase		+100	(5.19)
	Decrease		-100	5.19
31	Mar 2024	579.75
	Increase		+100	(5.80)
	Decrease		-100	5.80

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group's exposure to the risk of changes in foreign exchange rates relates primarily to the Group's operating activities (when revenue or expense is denominated in a foreign currency) and the Group's borrowings in foreign currency.

Page 65 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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43. Financial Risk Management Objectives And Policies

Derivative financial instruments

The Group enters into derivative contracts with an intention to hedge its foreign exchange price risk and interest risk. Derivative contracts which are linked to the underlying transactions are recognised in accordance with the contract terms. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss. To some extent the Group manages its foreign currency risk by hedging transactions.

Particulars of unhedged foreign currency exposures as at the reporting date: (₹ million)	Particulars of unhedged foreign currency exposures as at the reporting date: (₹ million)	Particulars of unhedged foreign currency exposures as at the reporting date: (₹ million)
Currency Currency Symbol	Foreign currency Indian Rupees 31 Mar 25	Foreign currency Indian Rupees 31 Mar 24
United States Dollar USD	(70.90) (6,063.99)	(140.38) (11,704.16)
EURO EUR	26.30 2,366.59	13.66 1,232.52
Pound GBP	0.49 54.23	0.52 54.73
Swiss Franc CHF	(0.78) (75.05)	0.38 34.69
Chinese Yuan CNY	1.26 14.82	(0.79) (9.12)
Japaneseyen JPY	(15.78) (8.96)	- -
Australian Dollar AUD	0.87(143.18)	0.31 16.93
Singapore Dollar SGD	- -	(0.00) (0.13)

Figures shown in brackets represent payables.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD, EURO, GBP,CHF, CNY, RUB, JPY, AUD and SGD exchange rates, with all other variables held constant. The impact on the Group's profit before tax is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency derivatives and embedded derivatives. The Group's exposure to foreign currency changes for all other currencies is not material. Sensitivity due to unhedged Foreign Exchange Exposures is as follows:

Impact on profit before tax and equity:	Impact on profit before tax and equity:	(₹ million)	(₹ million)
Currency Currency Symbol +2% 31 M		-2% ar 25	+2% -2% 31 Mar 24
United States Dollar USD	(121.28) 121.28		(234.08) 234.08
EURO Euro	47.33 (47.33)		24.65 (24.65)
Pound GBP	1.08 (1.08)		1.09 (1.09)
Swiss Franc CHF	(1.50) 1.50		0.69 (0.69)
Chinese Yuan CNY	0.30 (0.30)		(0.18) 0.18
Japaneseyen JPY	(0.18) 0.18		- -
Australian Dollar AUD	(2.86) 2.86		0.34 (0.34)
Singapore Dollar SGD	- -		(0.00) 0.00

Figures shown in brackets represent payables.

Page 66 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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43. Financial Risk Management Objectives and Policies

• (iii) Commodity price risk

The Group's exposure to price risk of copper and aluminium arises from:

• Trade payables of the Group where the prices are linked to LME prices. Payment is therefore sensitive to changes in copper and aluminium prices quoted on LME. The provisional pricing feature (Embedded Derivatives) is classified in the balance sheet as fair value through profit or loss. The option to fix prices at future LME prices works as a natural hedge against the movement in value of inventory of copper and aluminium held by the Group. The Group also takes Sell LME positions to hedge the price risk on Inventory due to ongoing movement in rates quoted on LME. The Group applies fair value hedge to protect its copper and aluminium Inventory from the ongoing movement in rates.

• Purchases of copper and aluminium results in exposure to price risk due to ongoing movement in rates quoted on LME affecting the profitability and financial position of the Group. The risk management strategy is to use the Buy future contracts linked to LME to hedge the variation in cash flows of highly probable future purchases. Refer note 44 for outstanding buy future contracts link to LME as of 31 March 2025 and there were no outstanding buy future contracts link to LME as of 31 March 2024.

Sensitivity analysis for unhedged exposure for the year ended 31 March are as follows:

Exposure of Company in Inventory:

Exposure of Company in Inventory:	Exposure of Company in Inventory:	Exposure of Company in Inventory:
(₹ million)
Metal Hedge instruments	+2% -2% +2% -2% 31 Mar 25 31 Mar 24 Exposure in Metric Tonne Exposure in ₹ million Impact in Profit before tax Exposure in Metric Tonne Exposure in ₹ million Impact in Profit before tax
Aluminium Embedded derivative	- - - -	2,750.00 540.91 (10.82) 10.82
Copper Embedded derivative	- - - -	10,300.00 7,598.21 (151.96) 151.96

(B) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade receivables and contract assets

The Group has adopted a policy of only dealing with counterparties that have sufficient credit rating. The Group exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties. Credit risk has always been managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Group grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Group uses expected credit loss model to assess the impairment loss or gain. The Group has applied Expected Credit Loss (ECL) model for measurement and recognition of impairment losses on trade receivables. ECL has been computed as a percentage of revenue on the basis of Group historical data of delay in collection of amounts due from customers and default by the customers along with management's estimates.

The Group has sold without recourse trade receivable under channel finance arrangement for providing credit to its dealers. Evaluation is made as per the terms of the contract i.e. if the Group does not retain any risk and rewards or control over the financial assets, then the entity derecognises such assets upon transfer of financial assets under such arrangement with the banks. Derecognition does not result in significant gain / loss to the Group in the Statement of profit and loss.

In certain cases, the Group has sold with recourse trade receivables to banks for cash proceeds. These trade receivables have not been derecognised from the statement of financial position, because the Group retains substantially all of the risks and rewards – primarily credit risk. The amount received on transfer has been recognised as a financial liability. The arrangement with the bank is such that the customers remit cash directly to the bank and the bank releases the limit of facility used by the Group. The receivables are considered to be held within a held-to-collect business model consistent with the Group continuing recognition of the receivables.

The carrying amount of trade receivables at the reporting date that have been transferred but have not been derecognised and the associated liabilities is ₹375.58 million (31 Mar 2024: ₹508.05 million).

Trade receivables (net of expected credit loss allowance) of ₹28,957.06 million as at 31 March 2025 (31 March 2024: ₹21,661.87 million) forms a significant part of the financial assets carried at amortised cost which is valued considering provision for allowance using expected credit loss method. In addition to the historical pattern of credit loss, we have considered the likelihood of delayed payments, increased credit risk and consequential default considering emerging situations while arriving at the carrying value of these assets. This assessment is not based on any mathematical model but an assessment considering the nature of verticals, impact immediately seen in the demand outlook of these verticals and the financial strength of the customers. The Group has specifically evaluated the potential impact with respect to customers for all of its segments.

The Group closely monitors its customers who are going through financial stress and assesses actions such as change in payment terms, discounting of receivables with institutions on no ‐ recourse basis, recognition of revenue on collection basis etc., depending on severity of each case. The collections pattern from the customers in the current period does not indicate stress beyond what has been factored while computing the allowance for expected credit losses.

The expected credit loss allowance for trade receivables of ₹1,267.03 million as at 31 March 2025 (31 March 2024: ₹1,352.68 million) is considered adequate.

The same assessment is done in respect of contract assets of ₹1,127.52 million as at 31 March 2025 (31 March 2024: ₹380.82 million) while arriving at the level of provision that is required. The expected credit loss allowance for contract assets of ₹45.10 million as at 31 March 2025 (31 March 2024: ₹15.23 million) is considered adequate.

Other financial assets

The Group has adopted a policy of only dealing with counterparties that have sufficient credit rating. The Group’s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties.

Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the international credit rating agencies.

Page 67 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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43. Financial Risk Management Objectives And Policies

(C) Liquidity risk

The Group's principle sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. the Group believes that the working

Further, the Group manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalents position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on a regular basis. Surplus funds not immediately required are invested in certain financial assets (including mutual funds) which provide flexibility to liquidate at short notice and are included in current investments and cash equivalents. Besides, it generally has certain undrawn credit facilities which can be accessed as and when required, which are reviewed periodically.

The Group channel financing program ensures timely availability of finance for channel partners with extended and convenient re-payment terms, thereby freeing up cash flow for business growth while strengthening Group distribution network. Further, invoice discounting get early payments against outstanding invoices. Sales Invoice discounting is intended to save the Group business from the cash flow pressure.

The Group has developed appropriate internal control systems and contingency plans for managing liquidity risk. This incorporates an assessment of expected cash flows and availability of alternative sources for additional funding, if required

Corporate guarantees given on behalf of Group Companies might affect the liquidity of the Group if they are payable. However, the Group has adequate liquidity to cover the risk (Refer note 37(A)).

Maturity analysis

The table below summarises the maturity profile of the Group's financial assets and financial liabilities based on contractual undiscounted payments.

	(₹ million)	(₹ million)
	< 1 year > equal to 1 year Total < 1 year > equal to 1 year Total 31 Mar 25 31 Mar 24
Financial assets: Investments Tradereceivables Cash& cash equivalents Bankbalance other than cash & cash equivalents Loans Other financial assets
	17,490.42 - 17,490.42	18,224.17 - 18,224.17
	25,962.68 2,994.38 28,957.06	20,471.17 1,190.70 21,661.87
	2,173.87 - 2,173.87	3,070.31 - 3,070.31
	5,532.49 - 5,532.49	953.27 - 953.27
	111.00 - 111.00	106.26 - 106.26
	1,147.49 712.41 1,859.90	335.52 311.34 646.86
	52,417.953,706.7956,124.74	43,160.70 1,502.04 44,662.74
Financial liabilities:
Borrowings	670.64 419.40 1,090.04	671.70 226.04 897.74
Lease liability	270.64 1,049.82 1,320.45	230.04 700.10 930.14
Other financial liabilities	2,988.22 105.03 3,093.25	2,420.84 537.66 2,958.50
Acceptances	13,062.37 - 13,062.37	18,619.66 - 18,619.66
Trade payables	14,295.19 - 14,295.19	10,013.59 - 10,013.59
	31,287.06 1,574.2532,861.30	31,955.83 1,463.8033,419.63

44. Hedging activity and derivatives

The Group uses the following hedging types:

(i) Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or an unrecognised firm commitment.

(ii) Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment.

(A) Fair value hedge of copper and aluminium price risk in inventory

• (i) The Group enters into contracts to purchase copper and aluminium wherein the Group has the option to fix the purchase price based on LME price of copper and aluminium during a stipulated time period. Accordingly, these contracts are considered to have an embedded derivative that is required to be separated. Such feature is kept to hedge against exposure in the value of unpriced inventory of copper and aluminium due to volatility in copper and aluminium prices. The Group designates the embedded derivative in the payable for such purchases as the hedging instrument in fair value hedging of inventory. The Group designates only the spot-to-spot movement of the copper and aluminium inventory as the hedged risk. The carrying value of inventory is accordingly adjusted for the effective portion of change in fair value of hedging instrument. Hedge accounting is discontinued when the hedging instrument is settled, or when it is no longer qualifies for hedge accounting or when the hedged item is sold.

The Group also hedges its unrecognised firm commitment for risk of changes in commodity prices.In such hedges, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in the statement of profit and loss. Hedge accounting is discontinued when the Group revokes the hedge relationship, the hedging instrument or hedged item expires or is sold, terminated, or exercised or no longer meets the criteria for hedge accounting.

• (ii) To use the Sell future contracts linked with LME to hedge the fair value risk associated with inventory of copper and aluminium. Once the purchases are concluded and its final price is determined, the Group starts getting exposed to price risk of these inventory till the time it is not been sold. The Group’s policy is to designate the copper and aluminium inventory which are already priced and which is not been sold at that point in time in a hedging relationship against Sell LME future positions based on the risk management strategy of the Group. The hedged risk is movement in spot rates.

To test the hedge effectiveness between embedded derivatives/derivatives and LME prices of Copper and Aluminium, the Group uses the said prices during a stipulated time period and compares the fair value of embedded derivatives/derivatives against the changes in fair value of LME price of copper and aluminium attributable to the hedged risk.

The Group establishes a hedge ratio of 1:1 for the hedging relationships as the underlying embedded derivative/derivative is identical to the LME price of Copper and Aluminium.

Page 68 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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44. Hedging activity and derivatives

Disclosure of effects of fair value hedge accounting on financial position:

Hedged item:

Changes in fair value of unpriced inventory / unrecognised firm commitment attributable to change in copper and aluminium prices.

Hedging instrument:

Changes in fair value of the embedded derivative of copper and aluminium trade payables and sell future contracts, as described above.

(B) Cash flow hedge associated with highly probable forecasted purchases of copper and aluminium:

The Group enters into buy future commodity price contracts as a part of risk management strategy for hedging highly probable forecast transaction and account for them as cash flow hedges and states them at fair value. Subsequent changes in fair value are recognised in equity through OCI until the hedged transaction occurs, at which time, the respective gain or losses are reclassified to profit or loss. These hedges have been effective for the year ended 31 March 2025.

As at 31 March 2025							(₹ million)	(₹ million)	(₹ million)
	Asset- increase/ (decrease) Liabilities- increase/ (decrease) Equity- increase/ (decrease) Commodity price risk Carrying amount Maturity date					Hedge Ratio	Firm commitment( P&L) portion of Hedge - gain/ Balance sheet classificatio n Effective portion of Hedge -gain/ ( loss)
Fair Value Hedge
Hedged item	Inventory of Copper and aluminium	99.54	-	-	Range within 1 to 6 months	1:1	Inventory	(439.56)	39.01
	Highly probable future purchases	-	-	(21.52)		1:1	Cash flow hedge Reserve
	Firm Commitment	318.49	-			1:1	Current financial Assest
Hedging instrument	Embedded derivative in trade payables of Copper and aluminium	44.08	-	-		1:1	Current financial Assest
	Buy future contracts	-	21.52	-		1:1	Current financial liabilities
	Sell future contracts	-	423.10	-		1:1	Current financial liabilities

The following table presents details of amounts held in effective portion of Cash flow/Fair value hedge and the period during which these are going to be released and affecting Statement of profit and Loss

As at 31s Cash Flow/Fair valu Less than 3 Months 3 Months to 6 Months	As at 31s Cash Flow/Fair valu Less than 3 Months 3 Months to 6 Months	t March 2025 e hedges release to P&L 6 Months to 12 Months Total
Commodity Price risk
Sell Future Contracts- Copper (258.05) (279.33)		- (537.38)
Embedded derivative- Copper 29.45 -		29.45 -
BuyFuture Contracts- Al	uminium (21.52) -	(21.52) -
Sell Future Contracts- Al	uminium 8.94 66.33	75.27 -
Embedded derivative- Al	uminium 14.63 -	- 14.63
As at 31 March 2024		(₹ million)
	Asset- increase/ (decrease) Liabilities- increase/ (decrease) Equity- increase/ (decrease) Commodity price risk Carrying amount Maturity date	Effective portion of Hedge -Gain/ ( loss) Ineffective portion of Hedge - Gain/ ( loss) Hedge Ratio Balance sheet classificatio n
Fair Value Hedge	380.34 - - - - - - (1.99) - - - - - 568.19 - Range within 1 to 6 months Inventory of Copper and aluminium Highly probable future purchases Embedded derivative in trade payables of Copper and aluminium Buy future contracts Sell future contracts
Hedged item Hedging instrument		1:1 Inventory 1:1 Cash flow hedge reserve 1:1 Current financial assets 1:1 Current financial liabilities 1:1 Current financial liabilities (380.34) (176.85)

Page 69 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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44. Hedging activity and derivatives

The following table presents details of amounts held in effective portion of Cash	The following table presents details of amounts held in effective portion of Cash	Flow Hedge and the period during which these are going to be released and	Flow Hedge and the period during which these are going to be released and
affecting Statement of Profit and Loss:
		As at 31 Mar 2024
		Cash Flow hedge release to P&L
	Less than 3 Months	3 Months to 6 Months 6 Months to 12 Months	Total
Commodity Price risk
Sell Future Contracts- Copper	(310.36)	(42.94) -	(353.30)
Sell Future Contracts- Aluminium	(12.79)	(14.25) -	(27.04)

The Board of Directors has constituted a Risk Management Committee (RMC) to frame, implement and monitor the risk management plan of the Group which inter-alia covers risks arising out of exposure to foreign currency fluctuations. Under the guidance and framework provided by the RMC, the Group uses various derivative instruments such as foreign exchange forward, currency options and futures contracts in which the counter party is generally a bank. For the purpose of the Group’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders. The primary objective is to maximise the shareholders value.

The Group has entered into derivative instruments by way of foreign exchange forward contracts, which are, as per the requirements of Ind AS 109, measured at fair value through profit and loss account. The notional amount of outstanding contracts and loss/(gain) on fair valuation of such contracts are given below:

(₹ million)	(₹ million)	(₹ million)
	31 Mar 25	31 Mar 24
Foreign exchange forward contracts-Buy	12,869.25	5,303.28
Foreign exchange forward contracts-Sale	(6,545.80)	(4,807.49)
	6,323.46	495.78
Fair valuation gain on foreign exchange forward contracts	117.39	(13.07)

45. Financial performance ratios:

A B C D	Numerator Denominator	Numerator Denominator	31 Mar 25	31 Mar 24 Variance	31 Mar 24 Variance
	Performance ratios
	Net profitratio Profit after tax Revenuefromoperations		9.13%	9.99%	-8.7%
	Net capitalturnover ratio Revenue from operations Working capital		3.86	3.51	9.8%
	Returnon	capitalemployed Profit before interest and tax Capitalemployed	28.36%	29.42%	-3.6%
	Returnon	equityratio Profit after tax Average shareholder's equity	22.54%	24.17%	-6.7%
	Return on	investment
	Unquo Quoted	ted (FixedDeposits) Interest Income AverageInvestment	7.41%	7.06%	5.0%
		(Mutual Funds) Gain(Realized and Unrealized) AverageInvestment	7.05%	7.31%	-3.5%
	Debt serv	ice coverage ratio Earnings available for debt services Debt service	13.15	21.01	-37.4%
			31 Mar 25	31 Mar 24	Variance
	Leverage Ratios
	Debt-Equityratio Total debt Shareholder's equity		0.01	0.01	1.0%
			31 Mar 25	31 Mar 24	Variance
	Liquidity Ratios
	Currentratio Current assets Currentliabilities		2.65	2.42	9.7%
			31 Mar 25	31 Mar 24	Variance
	Activity Ratio
	Inventory turnover ratio Cost ofgoods sold Averageinventory		4.59	4.01	14.4%
	Trade Receivables turnover ratio Revenue from operations Average tradereceivables		8.85	10.57	-16.2%
	TradePayables turnover ratio Net creditpurchases Average trade payable*		6.01	5.42 10.9%

Notes: Explanation for change in ratio by more than 25%

(i) The reduction in the debt service coverage ratio is primarily due to the upfront leasehold land payment, marginal increase in working capital cost, and additional interest expense from term loans availed by a group company.

• Average trade payable is the average of opening and closing balance of acceptances and trade payable balances.

46. Struck off Company

The Group had following transactions with Companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

Name of Struck off Company	Nature of transactions with struck off company	Balance outstanding as at current period (₹ million)	Balance outstanding as at previous period	Relationship with the struck off company, if any, to be disclosed
Pyrotech ElectronicsPrivate	Purchase	0.04	-	Creditor
AnmayInfratech PrivateLimited	Purchase	0.41	0.41	Creditor

Page 70 of 71

Polycab India Limited

Notes to Consolidated Financial Statements for the year ended 31 March 2025

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47. Capital management

For the purpose of the Group capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders. The primary objective is to maximise the shareholders value, safeguard business continuity and support the growth of the Group. The Group determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated.

The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

The capital structure is governed by policies approved by the Board of Directors and monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group includes within net debt, interest bearing loans and borrowings, lease liabilities and other payables, less cash and cash equivalents and current investments.

The capital structure is governed by policies approved by the Board of Directors and monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group includes within net debt, interest bearing loans and borrowings, lease liabilities and other payables, less cash and cash equivalents and current investments.	The capital structure is governed by policies approved by the Board of Directors and monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group includes within net debt, interest bearing loans and borrowings, lease liabilities and other payables, less cash and cash equivalents and current investments.	The capital structure is governed by policies approved by the Board of Directors and monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group includes within net debt, interest bearing loans and borrowings, lease liabilities and other payables, less cash and cash equivalents and current investments.
(₹ million)
	31 Mar 25	31 Mar 24
Borrowings(Refer note 19)	1,090.04	897.74
Lease liabilities (Refer note 20)	934.33	713.19
Other payables (Refer note 23)	3,093.25	2,958.50
Less: Cash and cash equivalents (Refer note 9)	(2,173.87)	(3,070.31)
Less: Current investments (Refer note 7B)	(17,490.42)	(18,224.17)
Net debt	(14,546.67)	(16,725.05)
Equity (Refer note 16,17 and 18)	99,067.94	82,433.41
Total capital	99,067.94	82,433.41
Capital and net debt	84,521.27	65,708.36
Gearing ratio	-17.21%	-25.45%

No changes were made in the objectives, policies or processes for managing capital during the year ended 31 March 2025 and year ended 31 March 2024.

48. Environmental, Social and Governance (ESG)

As a socially and environmentally responsible business, committed to the highest standards of corporate governance, the Group is focused on growing sustainably to build long-term stakeholder value by embracing sustainable development. The Group aims to deliver value to its employees, customers, suppliers, partners, shareholders and society as a whole. In this regard, the Group has developed a robust ESG framework that will align it to the best global standards and serve as a guide for the implementation of sustainable business practices.

49. Scheme of Amalgamation

The Board of Directors of the Parent Company at their meeting held on 18 October 2022 had considered and approved the Scheme of Amalgamation between the Parent Company and Silvan Innovation Labs Private Limited, a wholly owned subsidiary of the Parent Company on a going concern basis. The Hon’ble National Company Law Tribunal (NCLT), Ahmedabad Bench, vide its order dated 08 August 2023 has approved the Scheme of Amalgamation with the appointed date of the Amalgamation being 01 April 2022. In FY 23-24, the Amalgamation has been accounted for in the books of account of the Parent Company in accordance with Ind AS 103 ‘Business Combination’ read with Appendix C to Ind AS 103 specified under Section 133 of the Act, read with the Companies (Accounting Standards) Amendment Rules, 2016.

50. Events after the reporting period

• i) The Board of Directors of the Parent Company at their meeting held on 6 May 2025 have approved the Scheme of Amalgamation between the Company and Uniglobus Electricals and Electronics Private Limited, a wholly owned subsidiary of the Parent Company on going concern basis. The Appointed Date of the Scheme is 1 April 2025. The Scheme will be given effect to on receipt of requisite regulatory approvals and consent from Shareholders and filing of such approvals with the ROC.

• ii) The Board of Directors in their meeting on 6 May 2025 recommended a final dividend of ₹ 35 /- per equity share for the financial year ended 31 March 2025. This payment is subject to the approval of shareholders in the Annual General Meeting of the Parent Company and if approved would result in a net cash outflow of approximately ₹ 5,264.91 million. It is not recognised as a liability as at 31 March 2025.

iii) Refer note 38 for income tax order received post balance sheet date.

51. Others

Figures representing ₹ 0.00 million are below ₹ 5,000.

As per our report of even date For B S R & Co. LLP Chartered Accountants ICAI Firm Registration No. 101248W/W-100022

sd/-

Sreeja Marar Partner Membership No. 111410 Place: Mumbai Date: 6 May 2025

For and on behalf of the Board of Directors of Polycab India Limited CIN : L31300GJ1996PLC114183

sd/sd/Inder T. Jaisinghani Bharat A. Jaisinghani Chairman & Managing Director Whole Time Director DIN : 00309108 DIN : 00742995 sd/Gandharv Tongia Place: Mumbai Executive Director & CFO Date: 6 May 2025 DIN : 09038711

sd/-

Nikhil R. Jaisinghani Whole Time Director DIN : 00742771

sd/Manita Gonsalves Company Secretary Membership No. A18321

Page 71 of 71

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Audited Standalone Financial Statements FY 2024-25

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Polycab India Limited

Standalone Financial Statements for the year ended 31 March 2025

Index	Page No.
Auditors' Review Report	1
Balance Sheet	17
Statement of Profit andLoss	18
Statement ofChangesin Equity	19
Statement ofCash Flows	20
Overviewandnotes to thefinancialstatements
A Overview
1 CorporateInformation	22
2A Basis ofpreparation	22
2B Use ofestimates and judgements	23
2C Changesin materialaccounting policyinformation	24
2D Newand amended standards	24
2E RecentIndian Accounting Standards (IndAS)issuednot yet effective	24
B Notes tofinancialstatements
3 Property, plant and equipment	25
4 InvestmentProperty UnderConstruction	27
5 Right ofuse assets	27
6 Other intangible assets	29
7 Investment	30
8 Tradereceivables	31
9 Cashand cashequivalents	32
10 Bankbalance otherthancashand cashequivalents	33
11 Loans	33
12 Other financialassets	34
13 IncomeTax notes	34
14 Other non-current assets	36
15 Inventories	37
16 Equity share capital	38
17 Otherequity	41
18 Leaseliabilities	42
19 Acceptances	42
20 Trade payables	42
21 Other financial liabilities	43
22 Provisions	44
23 Other non-currentliabilities	44
24 Revenuefromoperations	45
25 Other income	48
26 Cost of materials consumed	48
27 Purchases ofstock-in-trade	48
28 Changesin inventories of finished goods, stock-in-trade andwork-in-progress	49
29 Project bought outs and subcontracting cost	49
30 Employee benefits expense	49
31 Finance costs	53
32 Depreciationand amortisationexpense	53
33 Otherexpenses	53
34 Earnings pershare	54
35 Contingentliabilities & commitments	55
36 IncomeTax Notice	55
37 Related party transactions	56
38 Segmentreporting	59
39 Financial Instruments andFair ValueMeasurement	61
40 Financial Risk Management ObjectivesAndPolicies	65
41 Hedging activity and derivatives	68
42 Financialperformanceratios	70
43 Struckoffcompany	71
44 Capital management	71
45 Environmental, Socialand Governance (ESG)	71
46 Events afterthereporting period	71
47 Others	71

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Page 16 of 71

Polycab India Limited Standalone Balance Sheet as at 31 March 2025

==> picture [73 x 17] intentionally omitted <==

Standalone Balance Sheet as at 31 March 2025 Polycab India Limited
	(₹ million)
Notes	As at 31 Mar 25 (Audited)	As at 31 Mar 24 (Audited)
ASSETS
Non-current assets
Property, plant and equipment 3	26,925.36	21,287.44
Capital work-in-progress 3	7,006.28	5,368.80
Investment PropertyUnder Construction 4	790.08	762.98
Right of use assets 5	1,148.26	536.00
Goodwill 6	-	46.22
Other intangible assets 6	67.74	122.29
Investment accounted for usingthe equitymethod 7A	-	-
Financial assets
(a) Investment in Subsidiaries 7A	517.35	206.93
(b) Trade receivables 8	2,994.38	1,190.70
(c) Other financial assets 12A	497.19	230.69
Non-current taxassets (net) 13D	373.81	170.77
Other non-current assets 14A	2,771.17	2,535.39
	43,091.62	32,458.21
Current assets
Inventories 15	32,809.83	32,531.00
Financialassets
(a) Investments 7B	17,056.49	18,036.45
(b) Tradereceivables 8	27,380.24	22,993.74
(c) Cashand cashequivalents 9	1,903.29	2,551.44
(d) Bankbalance otherthancashand cashequivalents 10	5,093.82	528.07
(e) Loans 11	1,426.00	1,061.26
(f) Other financialassets 12B	1,125.76	314.19
Othercurrent assets 14B	4,042.92	7,105.49
	90,838.35	85,121.64
Total assets	1,33,929.97	1,17,579.85
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 16	1,504.26	1,502.36
(b) Otherequity 17	96,123.20	79,941.76
	97,627.46	81,444.12
Liabilities
Non-current liabilities
Financial liabilities
(a) Leaseliabilities 18A	586.87	198.46
(b) Other financial liabilities 21A	105.03	147.24
Provisions 22A	399.90	432.78
Deferred tax liabilities (net) 13G	988.02	517.97
Other non-currentliabilities 23A	845.00	365.08
	2,924.82	1,661.53
Current liabilities
Financial liabilities
(a) Leaseliabilities 18B	172.54	313.98
(b) Acceptances 19	13,062.37	18,619.66
(c) Trade payables 20
Totaloutstanding dues of micro enterprises and smallenterprises	1,376.25	535.04
Totaloutstanding dues ofcreditors otherthan micro enterprises and smallenterprises	12,457.71	8,936.65
(d) Other financial liabilities 21B	2,534.57	2,397.86
Othercurrentliabilities 23B	3,004.70	3,086.07
Provisions 22B	619.73	473.65
Current tax liabilities (net) 13D	149.82	111.29
	33,377.69	34,474.20
Total equity and liabilities	1,33,929.97	1,17,579.85
Corporateinformationand summary of materialaccounting policyinformation 1 & 2	(0.00)	(0.00)
Contingentliabilities and commitments 35
Other notes to accounts 36 to 47

The accompanying notes are an integral part of the standalone financial statements.

As per our report of even date For B S R & Co. LLP Chartered Accountants ICAI Firm Registration No. 101248W/W-100022

For and on behalf of the Board of Directors of Polycab India Limited CIN : L31300GJ1996PLC114183

sd/Sreeja Marar Partner Membership No. 111410

Place: Mumbai Date: 6 May 2025

sd/Inder T. Jaisinghani Chairman & Managing Director DIN : 00309108

sd/Gandharv Tongia Executive Director & CFO DIN : 09038711

sd/Bharat A. Jaisinghani Whole Time Director DIN : 00742995

Bharat A. Jaisinghani

Place: Mumbai Date: 6 May 2025

sd/-

Nikhil R. Jaisinghani Whole Time Director DIN : 00742771

sd/Manita Gonsalves Company Secretary Membership No. A18321

Page 17 of 71

Polycab India Limited

Standalone Statement of Profit & Loss for the year ended 31 March 2025

==> picture [72 x 17] intentionally omitted <==

			(₹ million)
Notes		Year ended 31 Mar 25 (Audited)	Year ended
			31 Mar 24
			(Audited)
INCOME
Revenuefromoperations 24		2,19,139.52	1,80,508.51
Other income 25		2,189.09	2,198.26
Total income		2,21,328.61	1,82,706.77
EXPENSES
Cost of materials consumed 26		1,54,057.29	1,26,681.76
Purchases ofstock-in-trade 27		3,784.18	3,501.35
28 Changes in inventories of finished goods, stock-in-trade and work-in-progress		(5,252.51)	(932.71)
Project bought outs and subcontracting cost 29		12,568.87	4,743.47
Employee benefits expense 30		6,896.55	5,866.05
Finance costs 31		1,588.49	1,004.42
Depreciationand amortisationexpense 32		2,867.39	2,371.40
Otherexpenses 33		18,432.89	16,283.92
Total expenses		1,94,943.15	1,59,519.66
Profit before tax		26,385.46	23,187.11
Tax expenses 13
Current tax		5,867.18	5,358.74
Deferred taxcharge		498.68	131.70
Total tax expenses		6,365.86	5,490.44
Profit for the year		20,019.60	17,696.67
Other comprehensive income
Items that will not be reclassified to profit or loss
Re-measurementloss ondefined benefit plans 30		(92.23)	(90.57)
Tax relating to items that will not be reclassified to profit or loss 13		23.21	22.79
Items that willbe reclassified to profit or loss
Effective portionof losses on hedginginstrumentincash flow hedges		(21.52)	-
Tax relating toitems thatwillbereclassified to profit or loss 13		5.42	-
	Other comprehensive income/ (losses) for the year, net of tax	(85.12)	(67.78)
	Total comprehensive income for the year, net of tax	19,934.48	17,628.89
Earnings per share 34
Basic (Face value ₹ 10 each) (in ₹)		133.14	117.97
Diluted (Face value ₹ 10 each) (in ₹)		132.60	117.53
34 Weighted average equity shares used incomputing earnings per equity share
Basic (in numbers)		15,03,64,869	15,00,14,272
Diluted (in numbers)		15,09,74,137	15,05,66,475
Corporateinformationand summary of materialaccounting policyinformation 1 & 2
Contingentliabilities and commitments 35
Other notes to accounts 36 to 47

The accompanying notes are an integral part of the standalone financial statements.

As per our report of even date

For B S R & Co. LLP Chartered Accountants ICAI Firm Registration No. 101248W/W-100022

For and on behalf of the Board of Directors of Polycab India Limited CIN : L31300GJ1996PLC114183

sd/Sreeja Marar Partner Membership No. 111410

Place: Mumbai Date: 6 May 2025

sd/sd/sd/Inder T. Jaisinghani Bharat A. Jaisinghani Nikhil R. Jaisinghani Chairman & Managing Director Whole Time Director Whole Time Director DIN : 00309108 DIN : 00742995 DIN : 00742771

sd/Gandharv Tongia Place: Mumbai Executive Director & CFO Date: 6 May 2025 DIN : 09038711

sd/Manita Gonsalves Company Secretary Membership No. A18321

Page 18 of 71

Polycab India Limited

Standalone Statement of Changes in Equity for the year ended 31 March 2025

==> picture [73 x 17] intentionally omitted <==

A) Equity Share Capital	A) Equity Share Capital			(₹ million) 31 Mar 24 (Audited) 1,497.65 4.71 1,502.36 (₹ million)	(₹ million) 31 Mar 24 (Audited) 1,497.65 4.71 1,502.36 (₹ million)	(₹ million) 31 Mar 24 (Audited) 1,497.65 4.71 1,502.36 (₹ million)	(₹ million) 31 Mar 24 (Audited) 1,497.65 4.71 1,502.36 (₹ million)
			31 Mar 25 (Audited)	31 Mar 24
				(Audited)
Balance at the beginning of the year			1,502.36	1,497.65
Issue of equity shares on exercise of employee stock options			1.90	4.71
Balance at the end of theyear			1,504.26	1,502.36
B) Other Equity
	Share application money pending allotment	Reserves & Surplus				Effective portion of Cash Flow Hedges	Total other equity
		Capital Reserve Securities Premium General Reserve ESOP outstanding Retained Earnings
As at 1 Apr 2023	2.78	0.13 7,822.56 651.69 313.17 55,766.36				-	64,556.69
Profit aftertax forthe yearended	-	- - - - 17,696.67				-	17,696.67
Items ofOCI forthe yearended,net oftax
Re-measurement gains/(losses) ondefined benefit plans	-	- - - - (67.78)				-	(67.78)
Final equity dividend	-	- - - - (2,997.30)				-	(2,997.30)
Share-based payments to employees	-	- - - 564.24 -				-	564.24
Transfer on account of employee stock options not exercised		2.02 (2.02) -				-	-
Exercise ofemployee stockoption	181.13	- - - (181.13) -				-	-
Amount received on exercise of employee stock options	193.95	- - - -			-	-	193.95
Issue ofequity share onexercise ofemployee stockoptions	(369.15)	- 364.44 - -			-	-	(4.71)
As at 31 Mar 2024	8.71	0.13 8,187.00 653.71 694.26			70,397.95	-	79,941.76
Profit aftertax forthe yearended	-	- - - -			20,019.60	-	20,019.60
Items ofOCI forthe yearended,net oftax
Re-measurement gains/(losses) ondefined benefit plans	-	- - - -			(69.02)	-	(69.02)
Effective portion of gains/ (losses) on hedging instrument in cash flow hedges	-	- - - -			-	(16.10)	(16.10)
Final equity dividend	-	- - - -			(4,510.84)	-	(4,510.84)
Share-based payments to employees	-	- - - 687.00			-	-	687.00
Transfer on account of employee stock options not exercised	-	- - 14.70 (14.70) -				-	-
Exercise ofemployee stockoption	358.36	- - - (358.36) -				-	-
Amount received on exercise of employee stock options	72.70	- - - - -				-	72.70
Issue ofequity share onexercise ofemployee stockoptions	(438.63)	- 436.73 - - -				-	(1.90)
As at 31 Mar 2025	1.14	0.13 8,623.73 668.41 1,008.20 85,837.69				(16.10)	96,123.20

Refer note 17 for nature and purpose of reserves.

The accompanying notes are an integral part of the standalone financial statements.

As per our report of even date For B S R & Co. LLP Chartered Accountants ICAI Firm Registration No. 101248W/W-100022

sd/-

Sreeja Marar Partner Membership No. 111410

Place: Mumbai Date: 6 May 2025

For and on behalf of the Board of Directors of Polycab India Limited CIN : L31300GJ1996PLC114183

sd/sd/sd/Inder T. Jaisinghani Bharat A. Jaisinghani Nikhil R. Jaisinghani Chairman & Managing Director Whole Time Director Whole Time Director DIN : 00309108 DIN : 00742995 DIN : 00742771 sd/sd/Gandharv Tongia Place: Mumbai Manita Gonsalves Executive Director & CFO Date: 6 May 2025 Company Secretary DIN : 09038711 Membership No. A18321

Page 19 of 71

Polycab India Limited

Standalone Statement of Cash flows for the year ended 31 March 2025

==> picture [71 x 17] intentionally omitted <==

Accounting policy

Cashflows are reported using the indirect method as set out in Ind AS 7, 'Statement of Cash Flows', whereby profit for the year is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cashflows. The cash flows from operating, investing and financing activities of the Company are segregated.

Cash and cash equivalents for the purposes of statement of cash flows comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value and having original maturities of three months or less from the date of purchase.

For the purposes of statement of cash flows, cash and cash equivalents consist of cash in hand, balances with bank which are unrestricted for withdrawal and usage and short-term deposits as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management (Refer note 9).

considered an integral part of the Company’s cash management (Refer note 9).
		(₹ million)
	Year ended 31 Mar 25 (Audited)	Year ended 31 Mar 24 (Audited)
A.Cash Flows From Operating Activities
Profit before tax	26,385.46	23,187.11
Adjustments for:
Depreciation and amortisation expense	2,867.39	2,371.40
Loss/(Gain) on disposal of property, plant and equipment	29.72	(1.93)
Gain on termination of lease	(1.01)	(1.60)
Interest income on financial assets	(385.13)	(326.08)
Income on government grants	(193.13)	(186.93)
Gain on redemption of investment	(1,153.75)	(815.01)
Fair valuation gain Mark-To-Market ('MTM') of investment	(45.73)	(62.21)
Finance cost	1,588.49	1,004.42
Employees share based payment expenses	687.00	564.24
(Gain)/Loss on fair valuation of financial assets	(42.88)	145.15
Dividend received from subsidiary company	(70.99)	-
Impairment of Investment accounted for using the equity method	-	105.20
Impairment of Goodwill	46.22	-
Impairment allowance for trade receivable considered doubtful	190.23	305.26
Impairment allowance for contract assets	29.87	9.58
Unrealised (Gain)/Loss on foreign exchange (net)	(351.19)	80.82
Sundry balances (written back)/ written off	(23.11)	0.43
Operating profit before working capital changes	29,557.46	26,379.85
Movements in working capital:
Increase in trade receivables	(6,387.81)	(11,979.94)
Increase in inventories	(278.83)	(3,861.92)
Increase in financial assets	(660.13)	(476.39)
Decrease/(Increase) in non-financial assets (including contract assets)	2,944.51	(962.27)
Decrease/(Increase) in acceptances	(5,356.24)	6,362.10
Increase in trade payables	4,357.40	1,603.34
(Decrease)/Increasein financial liabilities	(17.05)	912.26
Increaseinprovisions	20.97	102.30
(Decrease)/Increase in non-financial liabilities (including contract liabilities)	(50.70)	392.89
Cash generated from operations	24,129.58	18,472.22
Income tax paid (including TDS) (net of refunds)	(6,031.69)	(5,554.83)
Net cash generated from operating activities (A)	18,097.89	12,917.39
B. Cash Flows From Investing Activities
Purchase of property, plant and equipment (including CWIP)	(9,281.55)	(8,140.61)
Purchase ofother intangible assets	(0.98)	(48.22)
Purchase of investment property	(27.10)	-
Proceedsfromsale ofproperty, plant and equipment	140.31	5.47
Investment in mutual funds	(1,13,380.68)	(1,27,408.40)
Proceeds from sale of mutual funds	1,15,560.12	1,23,754.11
Bankdeposits placed	(5,291.06)	(1,800.73)
Bankdepositsmatured	500.10	6,512.14
Investment made in equity shares of subsidiaries	(310.42)	(0.25)
Dividend received from subsidiary company	70.99	-
Loan given to related parties	(360.00)	(950.00)
Loan given to employees	(4.74)	(2.79)
Interest received	280.30	456.21
Net cash used in investing activities (B)	(12,104.71)	(7,623.07)

Page 20 of 71

Polycab India Limited Standalone Statement of Cash flows for theyear ended 31 March 2025	Polycab India Limited Standalone Statement of Cash flows for theyear ended 31 March 2025	Polycab India Limited Standalone Statement of Cash flows for theyear ended 31 March 2025
C. Cash Flows From Financing Activities
Amount received on exercise of employee stock options			72.70	193.95
Payment of principal portion of lease liabilities (includes upfront lease payment)			(546.06)	(174.45)
Payment of interest on lease liabilities			(61.57)	(35.07)
Proceeds from short term borrowings (Net)			-	-
Interest and other finance cost paid			(1,595.56)	(949.99)
Payment of dividends			(4,510.84)	(2,997.30)
Net cash used in financing activities (C)			(6,641.33)	(3,962.86)
Net increase/(decrease) in cash and cash equivalents (A+B+C)			(648.15)	1,331.46
Cash and cash equivalents at the beginning of the year			2,551.44	1,219.98
Cash and cash equivalents at end of the year (Refer below note (i))			1,903.29	2,551.44
				(₹ million)
			Year ended 31 Mar 25 (Audited)	Year ended 31 Mar 24 (Audited)
Supplementary Information
(a) Cash Transactionsfromoperating activities: Spent towards Corporate Social Responsibility (b) Non-Cash Transactionsfrom Investing andFinancingActivities:	Cash Transactionsfromoperating activities:
	Spent towards Corporate Social Responsibility		180.31	259.01
Acquisition of property, plant and equipment by means of Government Grant			673.05	408.24
(c) Acquisition of right of use assets			886.51	344.82
(d) Termination of right of use assets			239.58	84.47
				(₹ million)
Note: (i)			Year ended 31 Mar 25	Year ended 31 Mar 24
Cash and cash equivalents comprises of
Balanceswithbanks
Incurrent accounts			1,456.58	1,261.33
Depositswithoriginal maturity of less than3months			446.70	1,290.10
Cash in hand			0.01	0.01
Cash and cash equivalents inCash Flow Statement			1,903.29	2,551.44
Net lease liabilities reconciliation			Refer	Note-5
Corporateinformationand summary of materialaccounting policyinformation 1 & 2
Contingentliabilities and commitments 35
Other notes to accounts 36 to 47

The accompanying notes are an integral part of the standalone financial statements.

For and on behalf of the Board of Directors of As per our report of even date Polycab India Limited For B S R & Co. LLP CIN : L31300GJ1996PLC114183 Chartered Accountants ICAI Firm Registration No. 101248W/W-100022

sd/-

Sreeja Marar Partner Membership No. 111410

Place: Mumbai Date: 6 May 2025

sd/sd/sd/Inder T. Jaisinghani Bharat A. Jaisinghani Nikhil R. Jaisinghani Chairman & Managing Director Whole Time Director Whole Time Director DIN : 00309108 DIN : 00742995 DIN : 00742771

sd/sd/Gandharv Tongia Place: Mumbai Manita Gonsalves Executive Director & CFO Date: 6 May 2025 Company Secretary DIN : 09038711 Membership No. A18321

Page 21 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

==> picture [73 x 18] intentionally omitted <==

1. Corporate information

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

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

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

The Board of Directors approved the Standalone Financial Statements for the year ended 31 March 2025 and authorised for issue on 6 May 2025.

2. Summary of material accounting policy information

A) Basis of preparation

i Statement of Compliance:

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

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

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

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

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

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

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

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

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

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

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

Operating Cycle:

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

iv Functional and Presentation Currency:

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

Page 22 of 71

Notes to Standalone Financial Statements for the year ended 31 March 2025

Polycab India Limited

==> picture [73 x 18] intentionally omitted <==

2. Summary of material accounting policy information

B) Use of estimates and judgements

In the course of applying the policies outlined in all notes, the Company is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

Estimates and assumptions

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

• i Revenue Recognition

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

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

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

ii Cost to complete for long term contracts

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

• iii Useful lives of property, plant and equipment

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

• iv Impairment of investments in subsidiaries and joint-ventures

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

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

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

vii Foreign Currency Transactions / Translations

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

Page 23 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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2. Summary of material accounting policy information

viii Impairment of non-financial assets

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

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

• ix Employee benefits

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

Judgements

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

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

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

• ii Provision for income tax and deferred tax assets

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

• iii Contingencies

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

C) Changes in material accounting policy information

The Company has applied new standards, interpretations and amendments issued and effective for annual periods beginning on or after 01 April 2024. This did not have any material changes in the Company's standalone accounting policies.

D) Recent pronouncements

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

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

Page 24 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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3. Property, plant and equipments Accounting policy

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

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

Capital work-in-progress comprises of property, plant and equipment that are not ready for their intended use at the end of reporting period and are carried at cost comprising direct costs, related incidental expenses, other directly attributable costs and borrowing costs.

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

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

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

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

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

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

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

The changes in the carrying value of Property, plant and equipment for the year ended 31 March 2025 are as follows:

(₹ million)

	Freehold land	Buildings	Plant and equipments	Electrical installations	Furniture and fixtures	Office equipments	Windmill	Vehicles	Lease-hold improvements	Total	Capital Work in progress
Gross carrying value(at cost)
As at 01 April 2024	1,140.11	12,716.18	17,566.79	1,725.04	359.79	840.36	294.99	39.21	3.42	34,685.89	5,368.80
Additions	709.59	286.46	6,927.48	269.58	9.50	221.34	-	14.07	-	8,438.02	8,287.40
Transfer	-	-	-	-	-	-	-	-	-	-	(6,649.92)
Disposals/Adjustments	(82.49)	(74.21)	(135.78)	(16.44)	(9.01)	(19.77)	(0.61)	(5.42)	-	(343.73)	-
As at 31 March 2025	1,767.21	12,928.43	24,358.49	1,978.18	360.28	1,041.93	294.38	47.86	3.42	42,780.18	7,006.28
Accumulated depreciation
As at 01 April 2024	-	2,292.21	9,798.13	610.71	130.87	406.57	141.49	15.31	3.16	13,398.45	-
Depreciation charge for theyear	-	428.82	1,843.71	151.84	29.46	154.63	15.72	5.83	0.06	2,630.07	-
Disposals/Adjustment	-	(19.69)	(116.07)	(12.22)	(4.66)	(17.61)	-	(3.45)	-	(173.70)	-
As at 31 March 2025	-	2,701.34	11,525.77	750.33	155.67	543.59	157.21	17.69	3.22	15,854.82	-
Net carrying value
As at 31 March 2025	1,767.21	10,227.09	12,832.72	1,227.85	204.61	498.34	137.17	30.17	0.20	26,925.36	7,006.28

Page 25 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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3. Property, plant and equipment

The changes in the carrying value	of Property,	plant and equipment for	plant and equipment for	the year ended 31 March 2024 are	the year ended 31 March 2024 are	the year ended 31 March 2024 are	as follows:				(₹ million)
	Freehold land	Buildings	Plant and equipments	Electrical installations	Furniture and fixtures	Office equipments	Windmill	Vehicles	Lease-hold improvements	Total	Capital Work in progress
Gross carrying value(at cost)
As at 01 April 2023(Restated)	1,047.01	12,488.83	15,062.82	1,211.84	292.35	617.00	294.99	35.23	3.42	31,053.49	2,492.69
Additions	93.10	1,057.69	2,522.42	513.20	68.65	228.58	-	5.00	-	4,488.64	6,506.16
Transfer	-	(830.34)	-	-	-	-	-	-	-	(830.34)	(3,630.05)
Disposals/Adjustments	-	-	(18.45)	-	(1.21)	(5.22)	-	(1.02)	-	(25.90)	-
As at 31 March 2024	1,140.11	12,716.18	17,566.79	1,725.04	359.79	840.36	294.99	39.21	3.42	34,685.89	5,368.80
Accumulated depreciation
As at 01 April 2023(Restated)	-	1,955.34	8,317.00	494.92	105.98	301.51	125.77	11.71	3.10	11,315.33	-
Depreciation charge for theyear	-	404.23	1,497.19	115.79	25.32	109.96	15.72	4.57	0.06	2,172.84	-
Transfer	-	(67.36)	-	-	-	-	-	-	-	(67.36)	-
Disposals/Adjustment	-	-	(16.06)	-	(0.43)	(4.90)	-	(0.97)	-	(22.36)	-
As at 31 March 2024	-	2,292.21	9,798.13	610.71	130.87	406.57	141.49	15.31	3.16	13,398.45	-
Net carrying value
As at 31 March 2024	1,140.11	10,423.97	7,768.66	1,114.33	228.92	433.79	153.50	23.90	0.26	21,287.44	5,368.80

Notes:

(a) Capital work in progress includes machinery in transit ₹ 215.94 million (31 March 2024 : ₹ 394.91 million).

(b) All property, plant and equipment are held in the name of the Company, except which are shown below:

As at 31 March 2025

Gross carrying value (₹ million) Property held since which date Whether title deed holder is a promoter, director or relative of promoter / director or employee of promoter/director Description of item of property Reason for not being held in the name of the company Held in the name of	Gross carrying value (₹ million) Property held since which date Whether title deed holder is a promoter, director or relative of promoter / director or employee of promoter/director Description of item of property Reason for not being held in the name of the company Held in the name of
1.42 2008 No Freehold land- Daman Dinesh Gupta	Mutation isinprocess
As at 31 March 2024
Gross carrying value (₹ million) Property held since which date Reason for not being held in the name of the company Whether title deed holder is a promoter, director or relative of promoter / director or employee of promoter/director Description of item of property Held in the name of
1.42 2008 Dinesh Gupta No Mutation isinprocess Freehold land- Daman

(c) Title deed is in dispute for freehold land amounting to ₹ 10.48 million (31 March 2024: ₹ 10.48 million) and is pending resolution with government authority at Gujarat.

(d)	CWIP aging schedule as at 31 March2025						(₹ million)
		Less than 1 year	1-2 years	2-3 years	More than 3years	Total
	Projects inprogress
	Cable &WireProjects	4,645.94	775.69	354.35	0.26		5,776.24
	FMEGProjects	435.40	368.12	33.83	26.64		863.99
	Other Projects	221.36	32.24	46.32	66.13		366.05
		5,302.70	1,176.05	434.50	93.03		7,006.28
	CWIPaging schedule as at 31 March 2024						(₹ million)
		Less than 1year	1-2years	2-3years	More than3 years	Total
	Projects inprogress
	Cable &WireProjects	4,069.72	513.12	11.11	-		4,593.95
	FMEGProjects	430.73	48.60	44.69	-		524.02
	Other Projects	130.31	48.73	71.79	-		250.83
		4,630.76	610.45	127.59	-		5,368.80
	For the purpose of this disclosure, the Company has identified project as the smallest group of assets having a common intended use.

(e)	Direct capitalisation of Property, plant and	Direct capitalisation of Property, plant and	equipments during the	equipments during the	year are given as under:	year are given as under:	year are given as under:			(₹ million)
		Freehold land	Buildings	Plant and equipments	Electrical installations	Furniture and fixtures	Office equipments	Windmill Vehicles	Lease-hold improvements	Total
	FY 2024-25	709.60	0.05	981.61	4.50	7.61	70.66	- 14.07	-	1,788.10
	FY 2023-24	93.10	3.26	602.70	11.18	28.97	114.38	- 5.00	-	858.59

(f) Transfer to Investment Property Under Construction as on 31 March 2025 of net amount ₹ NIL million (31 March 2024: 762.98) (Refer note 4).

(g) In CWIP completion schedule: there is no significant overdue or cost exceeding compared to its original plan.

(h) Assets pledged and hypothecated against borrowings - Refer note 39B(d) (i) No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(j) For capital expenditures contracted but not incurred - Refer note 35(B).

Page 26 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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4. Investment Property Under Construction Accounting policy

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

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

Transfers are made to (or from) investment property only when there is a change in use. If owner-occupied property becomes an investment property, the Company accounts for such property in accordance with the policy stated under property, plant and equipment up to the date of change in use.

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

The Company depreciates its investment properties over the useful life which is similar to that of property, plant and equipment.
	(₹ million)
	31 Mar 25	31 Mar 24
Gross carrying value (at cost) At the beginning of the year Additions Transfer Disposals/Adjustments
	762.98	-
	27.10	-
	-	762.98
	-	-
At the end of the period	790.08	762.98
Accumulated depreciation At the beginning of the year Depreciation charge for the year Disposals/Adjustment	- - -	- - -
At the end of the period	-	-
Net carrying value
At the end of theperiod	790.08	762.98

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

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

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

In accordance with Ind AS 113, the fair value of investment property is determined by the Company at ₹ 847.00 million following the risk-adjusted discounted cash flow method and based on Level 3 inputs from an independent accredited valuation expert, as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017, with relevant valuation experience for similar properties. The fair valuation is mainly based on location and locality, current real estate prices in the active market for similar properties. The main inputs used are area, location, demand, weighted-average cost of capital and trend of real estate market at the location. As at 31 March 2025, the fair value of the land is based on valuations performed by Bharat Shah & Associates, an accredited independent registered valuer.

5. Right of use assets

Accounting policy

• i. The Company as a lessee

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

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

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

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

Page 27 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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5. Right of use assets

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

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

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

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

ii. The Company as a lessor

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

iii. Finance lease

The Company has entered into land lease arrangement at various locations. Terms of such lease ranges from 15-90 years. In case of lease of land for 90 years and above, it is likely that such leases meet the criteria that at the inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset.

iv. Others

• The following is the summary of practical expedients elected on initial application: (a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date. (b) Applied the exemption not to recognize right-of-use assets and liabilities for short term leases, variable lease and leases of low value assets. (c) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

Followingare the changes in the carryingvalue of right of use assets for theyear ended 31 March 2025	(₹ million)	(₹ million)	(₹ million)
	Category of ROU asset		Total
	Leasehold Land	Buildings
Gross carrying value
As at 01 April 2024	44.53	770.54	815.07
Additions	382.27	504.24	886.51
Disposals	-	(239.58)	(239.58)
As at 31 March 2025	426.80	1,035.20	1,462.00
**Accumulated depreciation **
As at 01 April 2024	2.45	276.62	279.07
Depreciation charge for theyear	1.74	180.05	181.79
Disposals	-	(147.12)	(147.12)
As at 31 March 2025	4.19	309.55	313.74
Net carrying value
As at 31 March 2025	422.61	725.65	1,148.26
Following are the changes in the carrying value of right of use assets for the year ended 31 March2024	(₹ million)
	Leasehold Land Buildings Category of ROU asset Total
Gross carrying value
As at 01 April 2023	41.74 512.98 554.72
Additions	2.79 342.03 344.82
Disposals	- (84.47) (84.47)
As at 31 March 2024	44.53 770.54 815.07
**Accumulated depreciation **
As at 01 April 2023	1.96 195.33 197.29
Depreciation charge for theyear	0.49 150.98 151.47
Disposals	- (69.69) (69.69)
As at 31 March 2024	2.45 276.62 279.07
Net carrying value
As at 31 March 2024	42.08 493.92 536.00
The followingis the break-upof current and non-current lease liabilities for theyear end:	(₹ million)
		31 Mar 25	31 Mar 24
Non-current lease liabilities		586.87	198.46
Current lease liabilities		172.54	313.98
		759.41	512.44

Page 28 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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5. Right of use assets

Right of use assets	Right of use assets	Right of use assets
The followingis the movement in lease liabilities for theyear end: (₹ million)
	31 Mar 25	31 Mar 24
Balance at the beginningof theyear	512.44	358.45
Additions(includes upfront leasepayment)	885.49	343.23
Finance cost incurred duringtheyear	61.57	35.07
Deletions	(92.46)	(14.79)
Payment of lease liabilities(includes upfront leasepayment)	(607.63)	(209.52)
	759.41	512.44

The table belowprovides the contractual maturities of leaseliabilities of non-cancellable contractualcommitments onanundiscounted basis. (₹ million)	The table belowprovides the contractual maturities of leaseliabilities of non-cancellable contractualcommitments onanundiscounted basis. (₹ million)	The table belowprovides the contractual maturities of leaseliabilities of non-cancellable contractualcommitments onanundiscounted basis. (₹ million)
	31 Mar 25	31 Mar 24
Less than oneyear	216.31	172.35
One to fiveyears	411.44	335.31
More than fiveyears	497.46	188.86
	1,125.21	696.51

The Company does not face a liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

1,125.21 696.51 The Company does not face a liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.	1,125.21 696.51 The Company does not face a liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.	1,125.21 696.51 The Company does not face a liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
The followingare the amounts recognised inprofit or loss: (₹ million)
	31 Mar 25	31 Mar 24
Depreciation expense of right-of-use assets	181.79	151.47
Interest expense on lease liabilities	61.57	35.07
Interest income on fair value of securitydeposit	(3.52)	(3.15)
Expense relatingto short-term leases(included in other expenses)	68.58	43.04
Expense relatingto leases of low-value assets(included in other expenses)	-	0.17
	308.42	226.60

Lease contracts entered by the Company majorly pertains for warehouse taken on lease to conduct its business in the ordinary course. The Company does not have any lease restrictions and commitment towards variable rent as per the contract.

The Company had total cash outflows for leases of ₹ 607.64 million in 31 March 2025 (₹ 209.52 million in 31 March 2024).

Company as a lessor

Future undiscounted minimum rentals receivable under non-cancellable operating leases as at 31 March are as follows:

Company as a lessor Future undiscounted minimum rentals receivable under non-cancellable operating leases as at 31 March are as follows:	Company as a lessor Future undiscounted minimum rentals receivable under non-cancellable operating leases as at 31 March are as follows:	Company as a lessor Future undiscounted minimum rentals receivable under non-cancellable operating leases as at 31 March are as follows:
(₹ million)
	31 Mar 25	31 Mar 24
Less than one year	7.90	9.81
One to five years	1.75	7.69
More than five years	0.10	-
	9.75	17.50

6. Other intangible assets

Accounting policy

i. Other intangible assets acquired separately Other intangible assets acquired are reported at cost less accumulated amortisation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use.

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

Assets	Useful life
Computer software	3year
Technical Know-how	5year

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

• ii. Intellectual Property

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

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

iii. Research and development expenditure

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

Page 29 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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6. Other intangible assets

iv. De-recognition of other intangible assets

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

v. Goodwill

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

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

Based on the results of the assessment, goodwill impairment recorded during the current year is ₹ 46.22 million (31 March 2024 - ₹ Nil).

Goodwill		(₹ million)	(₹ million)
		31 Mar 25	31 Mar 24
Opening		46.22	46.22
Less: Impairment ofgoodwill		(46.22)	-
Closing		-	46.22
The changes in the carrying value of Other intangible assets for the year ended 31 March 2025 are as follows:			(₹ million)
	Technical Know how	- Computer Software	Total
Gross carrying value (at cost)
As at 01 April 2024	218.86	177.50	396.36
Additions	-	0.98	0.98
Disposals/Adjustments	-	-	-
As at 31 March 2025	218.86	178.48	397.34
**Accumulated amortisation **
As at 01 April 2024	145.12	128.95	274.07
Amortisation charge for theyear	33.49	22.04	55.53
Disposals/ Adjustments	-	-	-
As at 31 March 2025	178.61	150.99	329.60
Net carrying value
As at 31 March 2025	40.25	27.49	67.74
The changes in the carrying value of Other intangible assets for the year ended 31 March 2024 are as follows:			(₹ million)
	Technical Know- how Computer Software		Total
Gross carrying value (at cost)
As at 01 April 2023(Restated)	218.86 129.28		348.14
Additions	- 48.22		48.22
Disposals/ Adjustments	- -		-
As at 31 March 2024	218.86 177.50		396.36
**Accumulated amortisation **
As at 01 April 2023(Restated)	117.84 109.14		226.98
Amortisation charge for theyear	27.28 19.81		47.09
Disposals/ Adjustments	- -		-
As at 31 March 2024	145.12 128.95		274.07
Net carrying value
As at 31 March 2024	73.74 48.55		122.29

Note: The Other intangible assets include license and software of Gross carrying amount of ₹107.39 million (31 March 2024: ₹107.39 million) which has been fully amortized over the past periods and are being used by the Company.

7. Investment

Accounting policy

• i. Investment in subsidiaries and joint ventures

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

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

• Exposure, or rights, to variable returns from its involvement with the investee

• The ability to use its power over the investee to affect its returns

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

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

Investments in subsidiaries and joint ventures are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed. Where the carrying amount of an investment is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and the difference is recognised in the Statement of Profit and Loss. On disposal of investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the Statement of Profit and Loss under 'Other Income' or 'Other Expenses'.

Page 30 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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7. Investment

A Non-current investments

Investment	Investment
Non-current investments		(₹ million)
Face Value Per Unit Number		31 Mar 25	Number 31 Mar 24
Investments carried at amortised cost(Unquoted)
Investment in Equity Instruments of Subsidiaries(Fully paid-up)
Tirupati Reels Private Limited ₹10	33,00,000	33.00	33,00,000 33.00
Dowells Cable Accessories Private Limited ₹10	54,00,000	67.67	54,00,000 67.67
Uniglobus Electricals and Electronics Private Limited(Refer note 46(i)) ₹10	4,00,00,000	400.00	90,00,000 90.00
Polycab Australia PtyLtd AU$1	2,05,000	11.66	2,05,000 11.66
Polycab Support Force Private Limited ₹10	2,60,000	2.60	2,60,000 2.60
Steel Matrix Private Limited ₹10	1,00,000	1.00	1,00,000 1.00
Polycab Electricals And Electronics Private Limited ₹10	1,00,000	1.00	1,00,000 1.00
Polycab USA LLC US$1	5,000	0.42	- -
		517.35	206.93
Investment in Equity Instruments of Joint Venture (Fully paid-up)
Techno Electromech Private Limited ₹10	40,40,000	105.20	40,40,000 105.20
Provision for impairment of Techno Electromech Private Limited		(105.20)	(105.20)
		-	-
Total Non-current investments		517.35	206.93
Aggregate amount ofunquotedinvestments		622.55		312.13
Aggregate amount of impairmentvalue of investments		(105.20)		(105.20)

(a) Refer note 37A for information on financial information, principal place of business, activities and the Company's ownership interest in the above subsidiaries and joint venture.

(b) The Board of Directors of the Company at their meeting held on 18 October 2022 had considered and approved the Scheme of Amalgamation between the Company and Silvan Innovation Labs Private Limited, a wholly owned subsidiary of the Company on a going concern basis. The Hon’ble National Company Law Tribunal (NCLT), Ahmedabad Bench, vide its order dated 08 August 2023 has approved the Scheme of Amalgamation with the appointed date of the Amalgamation being 01 April 2022. In FY 23-24, the Amalgamation has been accounted for in the books of account of the Company in accordance with Ind AS 103 ‘Business Combination’ read with Appendix C to Ind AS 103 specified under Section 133 of the Act, read with the Companies (Accounting Standards) Amendment Rules, 2016.

B Current Investments

Current Investments	Current Investments	Current Investments
(₹ million)
	31 Mar 25	31 Mar 24
Investments measured at FVTPL(Quoted)
Held for sale
Investments in debt mutual and arbitrage funds	17,056.49	18,036.45
	17,056.49	18,036.45
Aggregate amount ofquoted investments - At cost	16,899.73	17,925.42
Aggregate amount ofquotedinvestments- Atmarketvalue	17,056.49	18,036.45

Notes :

(a) Refer note 39 for accounting policies on financial instruments for methods of valuation.

(b) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year ended 31 March 2025 (31 March 2024: Nil).

8. Trade receivables

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

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

For trade receivables and contract assets, the Company applies the simplified approach required by Ind AS 109, which requires expected lifetime losses to be recognised from initial recognition of the receivables.	For trade receivables and contract assets, the Company applies the simplified approach required by Ind AS 109, which requires expected lifetime losses to be recognised from initial recognition of the receivables.	For trade receivables and contract assets, the Company applies the simplified approach required by Ind AS 109, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
(₹ million)
31 Mar 25 31 Mar 24
Unsecured (at amortised cost)
Non Current
Tradereceivables-Considered Good (Unsecured)	2,994.38	1,190.70
Non-current Trade receivables	2,994.38	1,190.70
Current
Tradereceivables-Considered Good (Unsecured)	25,276.22	19,952.56
Tradereceivables-CreditImpaired	190.41	315.66
Receivablesfrom related parties-Considered Good (Unsecured) (Refer note 37)	3,178.42	4,075.79
Trade receivables (Gross)	28,645.05	24,344.01
Less: Impairment allowancefortradereceivables	(1,264.81)	(1,350.27)
Current Trade receivables (Net)	27,380.24	22,993.74

Page 31 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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8. Trade receivables

Trade receivables	Trade receivables	Trade receivables	Trade receivables
Thefollowing table summarizes the changein impairment allowancemeasured using thelife time expected creditlossmodel: (₹ million)
		31 Mar 25	31 Mar 24
At the beginning of year		1,350.27	1,159.49
Additions onaccount of merger withSilvan Innovation LabsPrivateLimited (Refer note7A(b))		-	1.86
Provisionduring the year		190.23	305.26
Bad debtswrittenoff(net)		(275.69)	(116.34)
At the end of the year		1,264.81	1,350.27

Notes:

• (a) Trade receivables are usually non-interest bearing and are generally on credit terms up to 90 days except EPC business. The Company’s term includes charging of interest for delayed payment beyond agreed credit days. Company charges interest for delayed payments in certain cases depending on factors, such as, market conditions and past realisation trend.

• (b) For EPC business, trade receivables are non-interest bearing and credit terms are specific to contracts.

• (c) For explanations on the Company's credit risk management processes, refer note 40(B).

• (d) For trade receivables, the Company applies a simplified approach in calculating Expected credit loss (ECL). Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

• (e) Trade receivables have been pledged as security against bank borrowings, the terms relating to which have been described in note 39B(d).

• (f) Refer note 39 for accounting policies on financial instruments.

• (g) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other person. Refer note 37 for the terms and conditions pertaining to related party disclosures.

• (h) Non-current trade receivables are not due.

(i) Trade receivables ageing schedule - Current

**9. **	As at 31 March 2025 (i)Undisputed Trade Receivables - Considered Good 15,229.95 (ii)Undisputed Trade Receivables - Credit Impaired - (iii)Disputed Trade Receivables - Considered Good - (iv)Disputed Trade Receivables - Credit Impaired - 15,229.95 Less: Impairment allowancefortradereceivables Total Current trade receivable As at 31 March 2024 (i)Undisputed Trade Receivables - Considered Good 13,507.18 (ii)Undisputed Trade Receivables - Credit Impaired - (iii)Disputed Trade Receivables - Considered Good - (iv)Disputed Trade Receivables - Credit Impaired - 13,507.18 Less: Impairment allowancefortradereceivables Total Current trade receivable Cash and cash equivalents Not Due Not due	As at 31 March 2025	(₹ million)	(₹ million)	(₹ million)	(₹ million)
			Outstandingfor following periods from due date ofpayment
		Not due	Less than 6 months 6 months-1 year 1-2 years 2-3 years More than 3 years TOTAL
		(i)Undisputed Trade Receivables - Considered Good 15,229.95	6,507.74	612.99 5,628.63 317.11 158.22 28,454.64
		(ii)Undisputed Trade Receivables - Credit Impaired -	-	- - 76.97 59.12 136.09
		(iii)Disputed Trade Receivables - Considered Good -	-	- - - - -
		(iv)Disputed Trade Receivables - Credit Impaired -	-	- - - 54.32 54.32
		15,229.95	6,507.74	612.99 5,628.63 394.08 271.66 28,645.05
		Less: Impairment allowancefortradereceivables		(1,264.81)
		Total Current trade receivable		27,380.24
		As at 31 March 2024		(₹ million)
				Outstandingfor following periods from due date ofpayment
		Not Due	Less than 6 months 6 months- 1 year 1-2 years 2-3 years More than 3 years TOTAL
		(i)Undisputed Trade Receivables - Considered Good 13,507.18	8,361.95 1,477.93 401.01 208.51 71.78 24,028.36
		(ii)Undisputed Trade Receivables - Credit Impaired -	- - - 79.80 44.00 123.80
		(iii)Disputed Trade Receivables - Considered Good -	- - - - - -
		(iv)Disputed Trade Receivables - Credit Impaired -	- - - - 191.85 191.85
		13,507.18	8,361.95 1,477.93 401.01 288.31 307.63 24,344.01
		Less: Impairment allowancefortradereceivables	(1,350.27)
		Total Current trade receivable	22,993.74
			(₹ million)
			31 Mar 25			31 Mar 24
	At amortised cost
	Balanceswithbanks
	Incurrent accounts (Refer note (a))				1,456.58	1,261.33
	Depositswithoriginal maturity of less than3months (Refer note (b))				446.70	1,290.10
	Cashon hand				0.01	0.01
					1,903.29	2,551.44

Note:

(a) There is no repatriation restriction with regard to cash and cash equivalents at the end of reporting period and prior periods.

(b) Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates.

Page 32 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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10. Bank balance other than cash and cash equivalents

Bank balance other than cash and cash equivalents	Bank balance other than cash and cash equivalents	Bank balance other than cash and cash equivalents	Bank balance other than cash and cash equivalents
(₹ million)
31 Mar 25 31 Mar 24
At amortised cost
Depositswithoriginal maturityfor more than3months butless than 12 months (Refer note (a))		5,090.68	526.03
Earmarked balance (Refer note (b))		3.14	2.04
		5,093.82	528.07

Note:

(a) Fixed deposit of ₹ 330.57 million (31 March 2024: ₹ 7.80 million) is restricted for withdrawal, as it is placed under lien against project specific advance.

(b) Earmarked balances with banks relate to unclaimed dividends (Refer note 21).

11. Loans- Current

Loans- Current	(₹ million)
	31 Mar 25	31 Mar 24
At amortised cost
Loans (Considered good –Unsecured)
Loans torelated party (Refer note-37)	1,415.00	1,055.00
Loans to employees	11.00	6.26
	1,426.00	1,061.26

Note: Disclosures required as per Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 186 (4) of Companies Act, 2013

(A) Amount of loans outstanding from Subsidiaries and Joint Venture:

(A) Amount of loans outstanding from Subsidiaries and Joint Venture:
			(₹ million)
Interest Rate	Outstanding as at		Maximum amount outstanding duringthe year
	31 Mar 25	31 Mar 24	31 Mar 25	31 Mar 24
(i) Subsidiaries
Unsecured,consideredgood
10.40% Polycab Support Force Private Limited (has utilised this loan forgeneral corporatepurpose)	5.00	5.00	5.00	5.00
10.35% Uniglobus Electricals and Electronics Private Limited (has utilised this loan for general corporate purpose)	1,310.00	950.00	1,310.00	950.00
(ii) Joint Venture
Unsecured,consideredgood
10.50% Techno Electromech Private Limited (has utilised this loan for general corporate purpose)	100.00	100.00	100.00	100.00
(B) Amount of loans outstanding from Subsidiaries and Joint Venture:			(₹ million)
	31 Mar 25 %		31 Mar 24	%
(i) Subsidiaries
Unsecured,consideredgood
Uniglobus Electricals and Electronics Private Limited	1,310.00 93%		950.00 90%
Polycab Support Force Private Limited	5.00 0%		5.00 1%
(ii) Joint Venture
Unsecured,consideredgood
Techno Electromech Private Limited	100.00 7%		100.00 9%

(C) Details of investments made are given in Note 7A and 37E.

(D) Details of guarantee issued and outstanding are given in Note 37F. Guarantees are issued by the Company in accordance with Section 186 of the Companies Act, 2013 read with rules issued thereunder.

(E) The Company has complied with the provision section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(F) The Company has entered into Scheme(s) of arrangement in terms of sections 230 to 237 of the Companies Act, 2013. Refer note 46(i).

(G) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(H) Loan given during the year to related parties are repayable on demand. No amounts were demanded for repayment.

Page 33 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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12. Other financial assets

A Other financial assets - Non-current

Other financial assets	Other financial assets	Other financial assets
Other financial assets - Non-current (₹ million)
31 Mar 25 31 Mar 24
At amortised cost
Unsecured, considered good
Earnestmoney deposits	17.49	9.70
Security deposits	33.26	22.79
Deposits with bank havingmaturity period of more than 12 months	229.01	2.70
Others(Refer below note)	217.43	195.50
	497.19	230.69

Note: Others mainly pertains to the premium receivable on EPC contracts which are recognised as per Ind AS 109 at the present value of contractual premiums expected to be collected.

B Other financial assets - Current

Other financial assets - Current (₹ million)
31 Mar 25		31 Mar 24
At amortised cost
Unsecured, considered good
Security deposits andEarnestmoney deposits (A)	88.48	106.11
Rentaldeposits, unsecured, considered good
RelatedParties (Refer note-37G(ii))	6.17	6.17
Otherthan RelatedParties	156.18	24.55
(B)	162.35	30.72
Interest accrued onbankdeposits	117.54	12.17
Interestreceivables
RelatedParties (Refer note-37G(ii))	2.50	2.81
Otherthan RelatedParties	1.06	1.29
Others (Refer note (a))	308.62	137.47
(C)	429.72	153.74
At FVTPL
FirmCommitment (Refer note41) (D)	318.49	-
DerivativeAssets (Refer note (b)) (E)	126.72	23.62
(A+B+C+D+E)	1,125.76	314.19

Notes:

(a) Others includes premium receivable on EPC contracts which are recognised as per Ind AS 109 at the present value of contractual premiums expected to be collected.

(b)	Derivative Assets (₹ million)	Derivative Assets (₹ million)	Derivative Assets (₹ million)
	31 Mar 25		31 Mar 24
	Embedded derivatives	44.08	1.99
	Foreignexchangeforward contract	82.64	21.63
		126.72	23.62

13. Income taxes

Accounting policy

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

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

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

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

The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws.

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

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

Page 34 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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13. Income taxes

A[Income tax expense in the statement of profit and loss comprises:]

Income taxes Income tax expense in the statement of profit and loss comprises:	Income taxes Income tax expense in the statement of profit and loss comprises:	Income taxes Income tax expense in the statement of profit and loss comprises:
(₹ million)
31 Mar 25 31 Mar 24
Current tax:
In respect ofcurrent year	5,994.80	5,342.98
Adjustments oftax relating to earlieryears	(127.62)	15.76
	5,867.18	5,358.74
Deferred tax:
Relating to originationandreversaloftemporary differences	518.43	99.66
Adjustments oftax relating to earlieryears	(19.75)	32.04
	498.68	131.70
	6,365.86	5,490.44

B OCI section - Deferred tax related to items recognised in OCI during the year:

498.68 131.70 6,365.86 5,490.44 OCI section - Deferred tax related to items recognised in OCI during the year:	498.68 131.70 6,365.86 5,490.44 OCI section - Deferred tax related to items recognised in OCI during the year:	498.68 131.70 6,365.86 5,490.44 OCI section - Deferred tax related to items recognised in OCI during the year:
(₹ million)
31 Mar 25 31 Mar 24
Netloss/(gain) on remeasurements ofdefined benefit plans	(23.21)	(22.79)
Netloss/(gain) on Designated Cash Flow Hedges	(5.42)	-
	(28.63)	(22.79)
Reconciliation of tax expense and the accounting profit multiplied by Company's domestic tax rate: (₹ million)
31 Mar 25 31 Mar 24
Profit before tax	26,385.46	23,187.11
Enacted tax ratesin India	25.17%	25.17%
Computed expected taxexpenses	6,640.69	5,835.73
Effect of differential tax impact due to the following (tax benefit)/ tax expenses:
CSRexpenses	87.54	65.19
Deferred government grants	(48.60)	(47.05)
Others	(313.77)	(363.43)
	6,365.86	5,490.44

C Reconciliation of tax expense and the accounting profit multiplied by Company's domestic tax rate:

Note:-

Corporate tax rate of 25.17% has been used for the reconciliation above which is payable by corporate entities in India on taxable profits under Indian Income Tax Laws.

D Details of tax assets / (liabilities)

Details of tax assets / (liabilities)	Details of tax assets / (liabilities)	Details of tax assets / (liabilities)
(₹ million)
31 Mar 25 31 Mar 24
Non-current tax assets(net ofprovision for taxation)	373.81	170.77
Current tax liabilities(net of advance tax)	(149.82)	(111.29)
Net current tax asset / (liability)	223.99	59.48
Movement in the net current tax assets/ (liability) (₹ million)
31 Mar 25 31 Mar 24
Net current taxasset / (liability) at the beginning ofthe year	59.48	(136.61)
Income taxpaid	6,031.69	5,554.83
Current taxexpense	(5,994.80)	(5,342.98)
Adjustments oftax relating to earlieryears	127.62	(15.76)
Net current tax asset / (liability) at the end of the year	223.99	59.48

E Movement in the net current tax assets/ (liability)

F The movement in net deferred tax assets and liabilities For the year ended 31 March 2025

Net current tax asset / (liability) at the end of the year The movement in net deferred tax assets and liabilities For the year ended 31 March 2025			223.99	59.48
				(₹ million)
	Carrying	Changes	Changes	Carrying value
	value as at	through profit	through	as at
	01 April 24	and loss	OCI	31 March 25
Deferred tax assets / (liabilities) in relation to
Property, plant and equipment and other intangible assets	(852.60)	(127.07)	-	(979.67)
Provision for employee benefits	166.06	38.80	23.21	228.07
Cash flow hedges	-	-	5.42	5.42
Receivables,financial assets at amortised cost	124.33	(418.95)	-	(294.62)
Leaseliabilities	1.89	3.10	-	4.99
Others	42.35	5.44	-	47.79
Total deferred tax assets / (liabilities)	(517.97)	(498.68)	28.63	(988.02)

Page 35 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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13. Income taxes

For the year ended 31 March 2024

**G **	(₹ million)	(₹ million)	(₹ million)
	Carrying value as at 01 April 23 Changes through profit and loss Changes through OCI Carrying value as at 31 March 24
	Deferred tax assets / (liabilities) in relation to
	Property, plant and equipment and other intangible assets (756.45) (96.15) - (852.60)
	Provision for employee benefits 115.25 28.02 22.79 166.06
	Receivables,financial assets at amortised cost 263.41 (139.08) - 124.33
	Leaseliabilities 3.38 (1.49) - 1.89
	Others (34.65) 77.00 42.35
	Total deferred tax assets / (liabilities) (409.06) (131.70) 22.79 (517.97)
	Reconciliation of deferred tax assets/ liabilities (net): (₹ million)
	31 Mar 25 31 Mar 24
	Net deferred taxasset / (liability) at the beginning ofthe year	(517.97)	(409.06)
	Tax(income)/expense onadjustment oftax relating to earlieryear	19.75	(32.04)
	Tax(income)/expenserecognisedinprofit or loss	(518.43)	(99.66)
	Tax(income)/expenserecognisedinOCI	28.63	22.79
	Net deferred tax asset / (liability) at the end of the year	(988.02)	(517.97)

H Details of transaction not recorded in the books of accounts that has been surrendered/ disclosed as income during the year in the tax assessments (e.g. search) ₹ Nil (31 March 2024 ₹ Nil).

I The Company does not have any unrecorded income and assets related to previous years which are required to be recorded during the year. J Refer note 36 for Income tax search activity.

14. Other assets

A **B **	Other assets - Non-current (₹ million)	Other assets - Non-current (₹ million)	Other assets - Non-current (₹ million)
	31 Mar 25 31 Mar 24
	Capital advances
	Unsecured, considered good	2,393.22	2,245.63
	Unsecured, considered doubtful	60.99	6.62
	Gross Capital Advances	2,454.21	2,252.25
	Less: Impairment allowancefordoubtfuladvance (Refer note (a) below)	(60.99)	(6.62)
	Net Capital Advances (A)	2,393.22	2,245.63
	Advances other than capital advances
	Unsecured, considered good
	Prepaid expenses	156.58	87.22
	Balanceswithstatutory/government authorities	221.37	202.54
	(B)	377.95	289.76
	(A)+(B)	2,771.17	2,535.39
	Note: (a) Change in impairment allowance for doubtful advances (₹ million) 31 Mar 25 31 Mar 24 At the beginning of year 6.62 136.62 Provision/(reversal) during the year 54.37 (130.00) At the end of theyear 60.99 6.62 Other assets - Current (₹ million)
	31 Mar 25 31 Mar 24
	Advances other than capital advances Unsecured, consideredgood
	Advancesfor materials and services	1,189.19	2,992.94
	Advancesfor materials and services- Related parties (Refer note 37)	-	34.52
	Contract asset (Refer below note(a))
	Unsecured, considered good	1,082.42	365.59
	CreditImpaired	45.10	15.23
	Less: Impairment allowanceforContract assets-Creditimpaired (Referbelow note (b))	(45.10)	(15.23)
		1,082.42	365.59
	Others
	Unsecured, considered good
	Prepaid expenses	414.49	215.26
	Balanceswithstatutory/government authorities	987.77	3,156.91
	Exportincentivereceivable	64.25	33.67
	Right of returnassets	304.80	306.60
		4,042.92	7,105.49

Page 36 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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14. Other assets

Notes:

er assets es:	er assets es:	er assets es:
Reconciliation of Contract assets: (₹ million)
	31 Mar 25	31 Mar 24
At the beginning ofyear	365.59	135.54
Unbilledrevenue	1,127.52	317.67
Billed to customer	(365.59)	(72.39)
Impairment allowance	(45.10)	(15.23)
At the end of the year	1,082.42	365.59
For contract assets, the Company applies a simplified approach in calculating Expected credit loss (ECL). Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

B Other assets - Current

Change in impairment allowance: (₹ million)	Change in impairment allowance: (₹ million)	Change in impairment allowance: (₹ million)
31 Mar 25		31 Mar 24
At the beginning of year	15.23	5.65
Provisionduring the year(net)	29.87	9.58
At the end of the year	45.10	15.23
Reconciliation of Right of return assets: (₹ million)
	31 Mar 25	31 Mar 24
At the beginningof theyear	306.60	286.19
Arisingduringtheyear	139.12	244.00
Utilised duringtheyear	(140.92)	(223.59)
At the end of theyear	304.80	306.60

15. Inventories

Accounting policy

Raw materials, stock in trade, work in progress, finished goods, packing materials, project material for long term contracts, scrap materials and stores and spares are valued at lower of cost or net realizable value ("NRV") after providing for obsolescence and other losses, where considered necessary on an item-by-item basis. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

Cost of raw materials, packing materials, and stores and spares is determined on a First In-First Out (FIFO) basis and includes all applicable costs, including inward freight, incurred in bringing goods to their present location and condition.

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

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

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

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

Alternatively, once the purchases are concluded and its final price is determined, the Company starts getting exposed to price risk of these inventory till the time it is not been sold. The Company’s policy is to use the sell future contracts linked with LME to hedge the fair value risk associated with inventory of copper and aluminium and accordingly the carrying value of inventory is accordingly adjusted for the effective portion of change in fair value of hedging instrument. Hedge accounting is discontinued when the hedging instrument is settled, or when it no longer qualifies for hedge accounting or when the hedged item is sold (Refer note 41)

Alternatively, once the purchases are concluded and its final price is determined, the Company starts getting exposed to price risk of these inventory till the time it is not been sold. The Company’s policy is to use the sell future contracts linked with LME to hedge the fair value risk associated with inventory of copper and aluminium and accordingly the carrying value of inventory is accordingly adjusted for the effective portion of change in fair value of hedging instrument. Hedge accounting is discontinued when the hedging instrument is settled, or when it no longer qualifies for hedge accounting or when the hedged item is sold (Refer note 41)	Alternatively, once the purchases are concluded and its final price is determined, the Company starts getting exposed to price risk of these inventory till the time it is not been sold. The Company’s policy is to use the sell future contracts linked with LME to hedge the fair value risk associated with inventory of copper and aluminium and accordingly the carrying value of inventory is accordingly adjusted for the effective portion of change in fair value of hedging instrument. Hedge accounting is discontinued when the hedging instrument is settled, or when it no longer qualifies for hedge accounting or when the hedged item is sold (Refer note 41)	Alternatively, once the purchases are concluded and its final price is determined, the Company starts getting exposed to price risk of these inventory till the time it is not been sold. The Company’s policy is to use the sell future contracts linked with LME to hedge the fair value risk associated with inventory of copper and aluminium and accordingly the carrying value of inventory is accordingly adjusted for the effective portion of change in fair value of hedging instrument. Hedge accounting is discontinued when the hedging instrument is settled, or when it no longer qualifies for hedge accounting or when the hedged item is sold (Refer note 41)
(₹ million)
31 Mar 25 31 Mar 24
Raw materials	9,784.13	14,389.08
Work-in-progress	4,383.41	3,451.89
Finished goods	15,320.35	10,940.66
Stock-in-trade	680.44	793.84
Stores and spares	539.60	447.12
Packingmaterials	218.15	412.48
Scrapmaterials	693.81	639.11
Projectmaterialsfor long-termcontracts	1,189.94	1,456.82
	32,809.83	32,531.00

Notes: (a) The above includes goods in transit as under: (₹ million) 31 Mar 25 31 Mar 24 Raw Material 2,481.21 623.54 Stock-in-trade - 19.71 Stores and spares 38.60 15.42 Projectmaterialsfor long-termcontracts 131.60 195.50	Notes: (a) The above includes goods in transit as under: (₹ million) 31 Mar 25 31 Mar 24 Raw Material 2,481.21 623.54 Stock-in-trade - 19.71 Stores and spares 38.60 15.42 Projectmaterialsfor long-termcontracts 131.60 195.50	Notes: (a) The above includes goods in transit as under: (₹ million) 31 Mar 25 31 Mar 24 Raw Material 2,481.21 623.54 Stock-in-trade - 19.71 Stores and spares 38.60 15.42 Projectmaterialsfor long-termcontracts 131.60 195.50	Notes: (a) The above includes goods in transit as under: (₹ million) 31 Mar 25 31 Mar 24 Raw Material 2,481.21 623.54 Stock-in-trade - 19.71 Stores and spares 38.60 15.42 Projectmaterialsfor long-termcontracts 131.60 195.50
	31 Mar 25 31 Mar 24
	Raw Material	2,481.21	623.54
	Stock-in-trade	-	19.71
	Stores and spares	38.60	15.42
	Projectmaterialsfor long-termcontracts	131.60	195.50

(b) The above includes inventories held by third parties amounting to ₹ 605.46 million (31 March 2024- ₹ ₹ 4,629.37 million)

(c) During the year ended 31 March 2025, ₹ 14.08 million (31 March 2024 - ₹ 5.52 million) was recognised as an expense for inventories carried at net realisable value.

(d) Inventories are hypothecated with the bankers against working capital limits (Refer note 39B(d)).

Page 37 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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16. Equity Share Capital

Equity Share Capital	Equity Share Capital	Equity Share Capital
(₹ million)
	31 Mar 25	31 Mar 24
Authorised share capital
Equityshares,₹ 10per value 18,92,50,000(31 March 2024: 18,92,50,000)equityshares*	1,892.50	1,892.50
Issued, subscribed and fully paid-up shares
Equityshares,₹ 10per value 15,04,25,898(31 March 2024: 15,02,36,395)equityshares	1,504.26	1,502.36
	1,504.26	1,502.36

• Number of equity shares reserved for issue under employee share based payment 8,53,060 (31 March 2024 : 10,12,383)

Notes:

• (a) The reconciliation of shares outstanding and the amount of share capital as at 31 March 2025 and 31 March 2024 are as follow:

es: The reconciliation of shares outstanding and the amount of share capital as at 31 March 2025 and 31 March 2024 are as follow:	es: The reconciliation of shares outstanding and the amount of share capital as at 31 March 2025 and 31 March 2024 are as follow:	es: The reconciliation of shares outstanding and the amount of share capital as at 31 March 2025 and 31 March 2024 are as follow:
(₹ million)
	31 Mar 25	31 Mar 24
	Number of Shares Amount	Number of Shares Amount
At the beginning ofthe year	15,02,36,395 1,502.36	14,97,65,278 1,497.65
Add:Sharesissued onexercise ofemployee stockoption	1,89,503 1.90	4,71,117 4.71
At the end of the year	15,04,25,898 1,504.26	15,02,36,395 1,502.36

(b) Terms/ rights attached to equity shares

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

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

(c) The details of Shareholding of Promoters are as under as at 31 March 2025 and 31 March 2024 are as follows:

	31 Mar 25	31 Mar 24	% Chane drin
	Number of Shares Total share	Number of Shares Total share	g ug the year
Mr. Inder T. Jaisinghani	1,81,23,976 12.05%	1,88,73,976 12.56%	-0.51%
Mr. Girdhari T. Jaisinghani	1,28,36,283 8.53%	1,46,36,283 9.74%	-1.21%
Mr. AjayT. Jaisinghani	1,43,70,747 9.55%	1,48,70,747 9.90%	-0.34%
Mr. Ramesh T. Jaisinghani	1,30,95,008 8.71%	1,68,55,008 11.22%	-2.51%

(d) The details of shareholders holding more than 5% shares as at 31 March 2025 and 31 March 2024 are as follows:

	31 Mar 25	31 Mar 24
	Number of Shares % holding	Number of Shares % holding
Mr. Inder T.Jaisinghani	1,81,23,976 12.05%	1,88,73,976 12.56%
Mr.Girdhari T.Jaisinghani	1,28,36,283 8.53%	1,46,36,283 9.74%
Mr. AjayT.Jaisinghani	1,43,70,747 9.55%	1,48,70,747 9.90%
Mr. Ramesh T.Jaisinghani	1,30,95,008 8.71%	1,68,55,008 11.22%

(e) Aggregate number of shares issued for consideration other than cash during the period of 5 years immediately preceding the reporting date :

There were no bonus shares isssued, buy back of shares or issue of shares pursuant to contract without payment being received in cash during the previous 5

(f) Dividend

Accounting policy

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company's Board of Directors. The Company declares and pays dividend in Indian rupees in accordance with its dividend distribution policy. Companies are now required to pay/distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.

Dividend on equity share (₹ million)	Dividend on equity share (₹ million)	Dividend on equity share (₹ million)
	31 Mar 25	31 Mar 24
Dividend on equity shares declared and paid during the year
Final dividend of ₹ 20.00per share for FY 2022-23paid in FY 2023-24	-	2,997.30
Final dividend of ₹ 30.00per share for FY 2023-24paid in FY 2024-25	4,510.84	-
	4,510.84	2,997.30

Proposed dividend on equity share : Refer note 46 (ii)

(g) Employee stock Option Plan (ESOP)

Accounting policy

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

No expense is recognised for options that do not ultimately vest because non market performance and/ or service conditions have not been met.

The dilutive effect, if any of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

Page 38 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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16. Equity Share Capital

Employee stock option plan

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

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

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

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

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

Subject to terms and condition of the scheme, options are classified into eight categories:

	Performance Scheme
	I II III IV V VI VII VIII
Numberofoptions	21,02,500 45,000 65,000 1,56,200 1,00,000 34,000 8,87,500 1,18,000
Method ofaccounting	Fair value Fair value Fair value Fair value Fair value Fair value Fair value Fair value
Vesting period	5 years graded vesting 5 years graded vesting 5 years graded vesting 5 years graded vesting 5 years graded vesting 5 years graded vesting 5 years graded vesting 5 years graded vesting
Grant date	30-Aug-18 18-Oct-18 23-Jan-21 13-May-21 04-Oct-21 02-May-22 12-May-23 09-May-24
Exercise/Expiry date	29-Aug-26 17-Oct-26 22-Jan-29 12-May-29 03-Oct-29 01-May-30 11-May-31 08-May-32
Exercise period	8 years from the date of grant 8 years from the date of grant 8 years from the date of grant 8 years from the date of grant 8 years from the date of grant 8 years from the date of grant 8 years from the date of grant 8 years from the date of grant
Weighted average share price	₹6,418.67 ₹6,418.67 ₹6,418.67 ₹6,418.67 ₹6,418.67 ₹6,418.67 ₹6,418.67 ₹6,418.67
Grant/Exercise price	₹405 ₹405 ₹405 ₹405 ₹405 ₹405 ₹405 ₹405
Method of settlement	Equity - settled Equity - settled Equity - settled Equity - settled Equity - settled Equity - settled Equity - settled Equity - settled
Weighted average remaining contractual life of options (in days)	2,168 2,168 2,168 2,168 2,168 2,168 2,168 2,168

The model inputs for fair value of option granted as on the grant date (In respect of shares granted on 30 Aug 2018 and 18 Oct 2018):

	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹405 ₹405 ₹405 ₹405 ₹405
Dividend yield	0.19% 0.19% 0.19% 0.19% 0.19%
Risk freeinterestrate	8.20% 8.20% 8.20% 8.20% 8.30%
Expectedvolatility	48.30% 48.20% 49.20% 48.20% 47.30%
Fair value peroption	₹310.10 ₹321.90 ₹335.10 ₹343.00 ₹350.40
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes

The model inputs for fair value of option granted as on the grant date (In respect of shares granted on 23 Jan 2021):

	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹405 ₹405 ₹405 ₹405 ₹405
Dividend yield	0.12% 0.11% 0.12% 0.11% 0.13%
Risk freeinterestrate	5.10% 5.29% 5.44% 5.59% 5.73%
Expectedvolatility	34.37% 34.25% 34.88% 35.42% 37.10%
Fair value peroption	₹955.87 ₹967.70 ₹978.57 ₹990.75 ₹1,003.15
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes
The model inputs for fair value of option granted as on the grant date (In	respect of shares granted on 13 May 2021):
	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹405 ₹405 ₹405 ₹405 ₹405
Dividend yield	0.72% 0.65% 0.71% 0.65% 0.70%
Risk freeinterestrate	5.54% 5.68% 5.86% 6.03% 6.13%
Expectedvolatility	35.10% 34.88% 34.97% 35.55% 35.99%
Fair value peroption	₹1,186.89 ₹1,198.43 ₹1,203.36 ₹1,216.12 ₹1,220.57
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes

Page 39 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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16. Equity Share Capital

uity Share Capital
The model inputs for fair value of option granted as on the grant date (In	respect of shares granted on 04 Oct 2021):
	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹405 ₹405 ₹405 ₹405 ₹405
Dividend yield	0.38% 0.34% 0.39% 0.36% 0.39%
Risk freeinterestrate	5.66% 5.84% 6.00% 6.15% 6.27%
Expectedvolatility	35.16% 35.35% 34.97% 35.06% 35.91%
Fair value peroption	₹1,998.40 ₹2,010.23 ₹2,014.32 ₹2,026.10 ₹2,030.48
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes

The model inputs for fair value of option granted as on the grant date (In respect of shares granted on 02 May 2022):

	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹405 ₹405 ₹405 ₹405 ₹405
Dividend yield	0.51% 0.51% 0.49% 0.49% 0.47%
Risk freeinterestrate	7.19% 7.27% 7.32% 7.38% 7.43%
Expectedvolatility	36.49% 36.16% 36.15% 35.82% 35.83%
Fair value peroption	₹2,076.40 ₹2,088.19 ₹2,089.04 ₹2,099.80 ₹2,100.89
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes

The model inputs for fair value of option granted as on the grant date (In respect of shares granted on 12 May 2023):

	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹405 ₹405 ₹405 ₹405 ₹405
Dividend yield	0.86% 0.87% 0.89% 0.91% 0.94%
Risk freeinterestrate	6.88% 6.92% 6.95% 6.95% 6.96%
Expectedvolatility	31.21% 31.08% 32.09% 31.92% 31.92%
Fair value peroption	₹2,827.67 ₹2,823.42 ₹2,816.04 ₹2,805.10 ₹2,791.07
Model used	Black Scholes Black Scholes Black Scholes Black Scholes Black Scholes
The model inputs for fair value of option granted as on the grant date (In	respect of sharesgranted on 9 May 2024):
	Year 1 Year 2 Year 3 Year 4 Year 5 15% vesting 15% vesting 20% vesting 20% vesting 30% vesting Performance Scheme
Exercise price	₹405 ₹405 ₹405 ₹405 ₹405
Dividend yield	0.52% 0.59% 0.68% 0.79% 0.90%
Risk freeinterestrate	7.19% 7.22% 7.25% 7.23% 7.25%
Expectedvolatility	35.15% 34.05% 33.47% 37.72% 37.13%
Fair value peroption	₹5,394.80 ₹5,377.80 ₹5,351.90 ₹5,313.80 ₹5,263.40
Model used	Scholes Scholes Scholes Scholes Scholes

The activity in the ESOP Plan 2018 (ESOP Performance Scheme and ESOP Privilege Scheme) is as follows:

	Number of options Weighted average exercise price (₹) 31 Mar 25	Number of options Weighted average exercise price (₹) 31 Mar 24
ESOP Performance Scheme
Outstanding at the beginning	10,12,383 405	7,77,910 405
Granted	1,18,000 405	8,87,500 405
Exercised and allotted	1,78,003 405	4,65,877 405
Exercised and pending allotment	1,500 405	11,500 405
Transferto general reserve	5,200 405	770 405
Forfeited	92,620 405	1,74,880 405
Outstanding at the end	8,53,060 405	10,12,383 405
ESOP Privilege Scheme
Outstanding at the beginning	- 405	8,250 405
Exercised and allotted	- 405	1,500 405
Transferto general reserve	- 405	6,750 405
Outstanding at the end	- 405	- 405
Shares allotted under ESOP during the year	Number of options Weighted average exercise price (₹) 31 Mar 25	Number of options Weighted average exercise price (₹) 31 Mar 24
FY 2024-25
ESOP Performance Scheme	1,78,003 405	4,65,877 405
ESOP Privilege Scheme	- 405	1,500 405
FY 2023-24
ESOP Performance Scheme	11,500 405	3,740 405
ESOP Privilege Scheme	- 405	- 405
	1,89,503	4,71,117

Page 40 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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16. Equity Share Capital

Options Vested but not exercised (NumberofOptions) 31 Mar 25 31 Mar 24 ESOP Performance Scheme 27,435 67,883 ESOP Privilege Scheme - - The break-up of employee stock compensation expense is as follow: (₹ million) 31 Mar 25 31 Mar 24 Granted to KMPandExecutiveDirectors 59.31 58.99 Employees otherthan KMPandExecutiveDirectors 627.69 505.25 687.00 564.24 Other equity (₹ million)	Options Vested but not exercised (NumberofOptions)	Options Vested but not exercised (NumberofOptions)	Options Vested but not exercised (NumberofOptions)
		31 Mar 25	31 Mar 24
	ESOP Performance Scheme	27,435	67,883
	ESOP Privilege Scheme	-	-
	The break-up of employee stock compensation expense is as follow: (₹ million)
		31 Mar 25	31 Mar 24
	Granted to
	KMPandExecutiveDirectors	59.31	58.99
	Employees otherthan KMPandExecutiveDirectors	627.69	505.25
		687.00	564.24
		31 Mar 25	31 Mar 24
Capital reserve		0.13	0.13
Securities premium		8,623.73	8,187.00
General reserve		668.41	653.71
ESOPoutstanding		1,008.20	694.26
Retained earnings		85,837.69	70,397.95
Effective portionofCash Flow Hedges		(16.10)	-
Share application money pending allotment		1.14	8.71
		96,123.20	79,941.76

17. Other equity

Notes:

(a) Capital Reserve:

The Company has created the reserve pursuant to amalgamation in an earlier years.

(b) Securities premium:

Amount received in excess of face value of the equity shares is recognized in Securities Premium. In case of equity-settled share based payment transactions difference between fair value on grant date and nominal value of share is accounted as Securities Premium. It will be used as per the provision of Companies Act, 2013.

(₹ million)	(₹ million)	(₹ million)
	31 Mar 25	31 Mar 24
Opening balance	8,187.00	7,822.56
Add: Adjustmentforexercise ofstockoption	436.73	364.44
	8,623.73	8,187.00

(c) General reserve

The Company had transferred a portion of the net profit of the Company before declaring dividend to General Reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to General Reserve is not required under the Companies Act, 2013. General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to statement of profit or loss.

(₹ million)	(₹ million)	(₹ million)
	31 Mar 25	31 Mar 24
Opening balance	653.71	651.69
Add: Transferonaccount ofemployee stockoptionsnot exercised	14.70	2.02
	668.41	653.71

(d) ESOP outstanding

Fair value of equity-settled share based payment transactions with employees is recognized in Statement of Profit and Loss with corresponding credit to Employee Stock Options Outstanding . The Company has two stock option schemes under which options to subscribe for the Company's shares have been granted to certain employees. The ESOP Outstanding is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration.

ESOP outstanding Fair value of equity-settled share based payment transactions with employees is recognized in Statement of Profit and Loss with corresponding credit to Employee Stock Options Outstanding . The Company has two stock option schemes under which options to subscribe for the Company's shares have been granted to certain employees. The ESOP Outstanding is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration.	ESOP outstanding Fair value of equity-settled share based payment transactions with employees is recognized in Statement of Profit and Loss with corresponding credit to Employee Stock Options Outstanding . The Company has two stock option schemes under which options to subscribe for the Company's shares have been granted to certain employees. The ESOP Outstanding is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration.	ESOP outstanding Fair value of equity-settled share based payment transactions with employees is recognized in Statement of Profit and Loss with corresponding credit to Employee Stock Options Outstanding . The Company has two stock option schemes under which options to subscribe for the Company's shares have been granted to certain employees. The ESOP Outstanding is used to recognise the value of equity-settled share-based payments provided to employees, including key management personnel, as part of their remuneration.
(₹ million)
	31 Mar 25	31 Mar 24
Opening balance	694.26	313.17
Add: ESOPcharge during the year	687.00	564.24
Less: Transferonaccount ofemployee stockoptionsnot exercised	(14.70)	(2.02)
Less: Adjustmentforexercise ofstockoption	(358.36)	(181.13)
	1,008.20	694.26

(e) Cash flow hedging reserve

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and accumulated in the cash flow hedge reserve. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the statement of Profit and Loss upon the occurrence of the related forecasted transaction.

(₹ million)	(₹ million)	(₹ million)
	31 Mar 25	31 Mar 24
Opening balance	-	0.43
Add:OtherComprehensiveIncomeforthe year	(16.10)	(0.43)
	(16.10)	-

Page 41 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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17. Other equity

(e) Retained earnings

Retained earnings are the profits that the Company has earned till date less any transfers to General Reserve, dividends or other distributions to shareholders. Retained earnings includes re-measurement loss/(gain) on defined benefit plans, net of taxes that will not be reclassified to statement of profit and loss. Retained earnings is a free reserve available to the Company.

er equity Retained earnings Retained earnings are the profits that the Company has earned till date less any transfers to General Reserve, dividends or other distributions to shareholders. Retained earnings includes re-measurement loss/(gain) on defined benefit plans, net of taxes that will not be reclassified to statement of profit and loss. Retained earnings is a free reserve available to the Company.	er equity Retained earnings Retained earnings are the profits that the Company has earned till date less any transfers to General Reserve, dividends or other distributions to shareholders. Retained earnings includes re-measurement loss/(gain) on defined benefit plans, net of taxes that will not be reclassified to statement of profit and loss. Retained earnings is a free reserve available to the Company.	er equity Retained earnings Retained earnings are the profits that the Company has earned till date less any transfers to General Reserve, dividends or other distributions to shareholders. Retained earnings includes re-measurement loss/(gain) on defined benefit plans, net of taxes that will not be reclassified to statement of profit and loss. Retained earnings is a free reserve available to the Company.
(₹ million)
	31 Mar 25	31 Mar 24
Opening balance	70,397.95	55,766.36
Add: Profit during the year(includingitems ofOCI forthe year,net oftax)	19,950.58	17,628.89
Less: Finalequity dividend	(4,510.84)	(2,997.30)
	85,837.69	70,397.95

(f) Share application money pending allotment Share application money pending allotment, represents amount received from employees who has exercised Employee Stock Option Scheme (ESOS) for which shares are pending allotment as on balance sheet date.

Share application money pending allotment Share application money pending allotment, represents amount received from employees who has exercised Employee Stock Option Scheme (ESOS) for which shares are pending allotment as on balance sheet date.	Share application money pending allotment Share application money pending allotment, represents amount received from employees who has exercised Employee Stock Option Scheme (ESOS) for which shares are pending allotment as on balance sheet date.	Share application money pending allotment Share application money pending allotment, represents amount received from employees who has exercised Employee Stock Option Scheme (ESOS) for which shares are pending allotment as on balance sheet date.
(₹ million)
	31 Mar 25	31 Mar 24
Opening balance	8.71	2.78
Add: Adjustmentforexercise ofstockoption	358.36	181.13
Add: Amountreceived onexercise ofemployee stockoptions	72.70	193.95
Less: Transferto equity share capital& securities premium for fresh issue	(438.63)	(369.15)
	1.14	8.71

18. Lease liabilities

**8. **	Lease liabilities	Lease liabilities	Lease liabilities
A **B **	Lease liabilities - Non-current (₹ million)
		31 Mar 25	31 Mar 24
	At amortised cost	586.87	198.46
		586.87	198.46
	Lease liabilities - Current (₹ million)
		31 Mar 25	31 Mar 24
	At amortised cost	172.54	313.98
		172.54	313.98

19. Acceptances

Accounting policy

The Company enters into arrangements for purchase under usance letter of credit issued by banks under non-fund based working capital limits of the Company. Considering these arrangements are majorly for raw materials with a maturity of up to twelve months, the economic substance of the transaction is determined to be operating in nature and these are recognised as Acceptances and is disclosed on the face of the Balance Sheet. Interest borne by the Company on such arrangements is accounted as finance cost.

operating in nature and these are recognised as Acceptances and is disclosed on the face of the Balance Sheet. Interest arrangements is accounted as finance cost.	borne by the Company on such	borne by the Company on such
	(₹ million)
	31 Mar 25 31 Mar 24
Acceptances (Refer note (a) below)	13,062.37	18,619.66
	13,062.37	18,619.66

Notes:

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

20. Trade payables

Accounting policy

The amounts are unsecured and are usually paid within 30 to 90 days of recognition other than usance letter of credit.

Trade payables Accounting policy The amounts are unsecured and are usually paid within 30 to 90 days of recognition other than usance letter of credit.	Trade payables Accounting policy The amounts are unsecured and are usually paid within 30 to 90 days of recognition other than usance letter of credit.	Trade payables Accounting policy The amounts are unsecured and are usually paid within 30 to 90 days of recognition other than usance letter of credit.
(₹ million)
31 Mar 25 31 Mar 24
At amortised cost
Totaloutstanding dues of micro and smallenterprises	1,376.25	535.04
	1,376.25	535.04
Totaloutstanding dues ofcreditors otherthan micro and smallenterprises
Trade payables torelated parties (Refer note-37)	500.23	299.46
Trade payables-Others (Refer note below(a))	11,957.48	8,637.19
	12,457.71	8,936.65

(a) Others include amount payable to vendors, employees liability and accrual of expenses that are expected to be settled in the Company’s normal operating cycle or due to be settled within twelve months from the reporting date.

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

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

Page 42 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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20. Trade payables

• (d) Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for the year ended 31 March 2025 and year ended 31 March 2024 is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

(e)	(₹ million)	(₹ million)	(₹ million)	(₹ million)
			31 Mar 25	31 Mar 24
	(i) Principal amount and interest due thereon remainingunpaid to anysupplier covered under MSMED Act:
	Principal		1,376.25	535.04
	Interest		-	-
	(ii) The amount of interest paid by the buyer in terms of section 16, of the MSMED Act, 2006 along with the amounts of the payment made to the supplier beyond the appointed dayduringeach accounting year.		-	2.42
	(iii) The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed dayduringtheyear)but without addingthe interest specified under MSMED Act.		-	-
	(iv) The amount of interest accrued and remainingunpaid at the end of each accounting year		-	-
	(v) The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under section 23 of the MSMED Act, 2006		-	-
	Trade Payables ageing schedule As at 31 March 2025	(₹ million)
	Not due	Less than 1 year 1-2 years 2-3 years More than 3 years TOTAL Outstandingfor following periods from due date ofpayment
	(i)MSME 1,376.25	- - - - 1,376.25
	(ii) Others 6,859.63	466.97 21.69 88.92 6.88 7,444.09
	(iii)Disputed dues- MSME -	- - - - -
	(iv) Disputed dues - Others -	- - - - -
	8,235.88	466.97 21.69 88.92 6.88 8,820.34
	(v)Accrued expenses	5,013.62
		13,833.96
	As at 31 March 2024	(₹ million)
	Not due	Less than 1 year 1-2 years 2-3 years More than 3 years Outstandingfor following periods from due date ofpayment TOTAL
	(i)MSME 535.04	- - - - 535.04
	(ii) Others 2,043.83	1,477.14 312.84 1.30 10.36 3,845.47
	(iii)Disputed dues- MSME -	- - - - -
	(iv)Disputed dues-Others -	- - - - -
	2,578.87	1,477.14 312.84 1.30 10.36 4,380.51
	(v)Accrued expenses	5,091.18
		9,471.69

21. Other financial liabilities

• A. Other financial liabilities - Non-current

Other financial liabilities - Non-current (₹ million)
		31 Mar 25	31 Mar 24
At amortised cost
Financialguaranteeliability		105.03	147.24
		105.03	147.24
Other financial liabilities - Current (₹ million)
		31 Mar 25	31 Mar 24
At amortised cost
Security deposit		303.51	299.91
Interest accrued butnot due		39.54	108.18
Creditorsforcapitalexpenditure		1,106.85	838.37
Unclaimed dividend (Referbelow note (b))		3.14	2.04
Channel financingliability		375.58	508.05
Financialguaranteeliability		62.62	64.08
At FVTPL
Derivativeliability (Referbelow note (a))		643.33	577.23
		2,534.57	2,397.86
Notes: (a) Derivative Liability (₹ million) 31 Mar 25 31 Mar 24 Foreignexchangeforward contract 198.70 9.04 Commodity contracts 444.63 568.19 643.33 577.23
		31 Mar 25	31 Mar 24
	Foreignexchangeforward contract	198.70	9.04
	Commodity contracts	444.63	568.19
		643.33	577.23

B. Other financial liabilities - Current

(b) There are no amounts due for payment to the Investor Education and Protection Fund under Section 125 of Companies Act, 2013 as at the year end.

Page 43 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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22. Provisions

Accounting policy:

Provision is recognised for expected warranty claims and after sales services when the product is sold or service provided to the customer, based on past experience of the level of repairs and returns. Initial recognition is based on historical experience. The initial estimate of warranty-related costs is revised annually. It is expected that significant portion of these costs will be incurred in the next financial year and the total warranty-related costs will be incurred within warranty period after the reporting date. Assumptions used to calculate the provisions for warranties were based on current sales levels and current information available about returns during the warranty period for all products sold.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

A Provisions - Non-current

Provisions - Non-current (₹ million)
	31 Mar 25	31 Mar 24
Provision foremployee benefits (Refer note 30)
Gratuity	292.65	257.56
Others (Refer note below)	107.25	175.22
	399.90	432.78
Note: Reconciliation of Others (₹ million)
	31 Mar 25	31 Mar 24
At the beginning ofthe year	175.22	162.53
Arising during the year	6.02	12.69
Utilised during the year	(73.99)	-
At the end of the year	107.25	175.22

Others includes matters relating to indirect tax matters.

22. Provisions

**2. **	Provisions	Provisions	Provisions
**B **	Provisions - Current (₹ million)
		31 Mar 25	31 Mar 24
	Provision foremployee benefits (Refer note 30)
	Gratuity	193.61	159.17
	Compensated absences	253.04	197.65
	Provision for warranty (Refer note below)	173.08	116.83
	At the end of the year	619.73	473.65
	Note: Reconciliation of Warranty provision (₹ million)
		31 Mar 25	31 Mar 24
	At the beginning ofthe year	116.82	109.02
	Arising during the year	168.32	121.89
	Utilised during the year	(112.06)	(114.09)
	At the end of the year	173.08	116.82

23. Other liabilities

A Other liabilities - Non-current

Other liabilities - Non-current (₹ million)	Other liabilities - Non-current (₹ million)	Other liabilities - Non-current (₹ million)
	31 Mar 25	31 Mar 24
Deferred government grant (Refer note (a))	845.00	365.08
	845.00	365.08
Other liabilities - Current (₹ million)
	31 Mar 25	31 Mar 24
Advancefromcustomers	715.02	454.55
Contractliability (Refer note (b))	860.89	1,024.22
Deferredliability	28.55	34.15
Refundliability (Refer note (c))	788.67	678.63
Other statutory dues
Employeerecoveries and employercontributions	38.25	30.13
Taxes payable (Otherthan Income tax)	573.32	864.39
	3,004.70	3,086.07

B Other liabilities - Current

Notes:

(a) Under Ind AS government grants are recorded as deferred liabilities to the extent of unfulfilled export obligations. This amount has been recognised against deferred government grant and accrued to Statement of Profit & Loss subsequently on fulfilment of export obligation. The Company expects to meet its export obligation during the next 3-5 years.

Reconciliation of Deferred government grant: (₹ million)	Reconciliation of Deferred government grant: (₹ million)	Reconciliation of Deferred government grant: (₹ million)
	31 Mar 25	31 Mar 24
At the beginning ofthe year	365.08	143.77
Grantsreceived during the year	673.05	408.24
Grantsrecognisedforthe year	(193.13)	(186.93)
At the end of the year	845.00	365.08
Reconciliation of Contract liabilities: (₹ million)
	31 Mar 25	31 Mar 24
At the beginning ofyear	1,024.22	905.32
Contractliabilityrecognised during the year	850.78	7,740.04
Revenuerecognised during the year	(1,014.11)	(7,621.14)
At the end of the year	860.89	1,024.22
Reconciliation of Refund liability: (₹ million)
	31 Mar 25	31 Mar 24
At the beginning ofthe year	678.63	629.37
Arising during the year	497.30	577.57
Utilised during the year	(387.26)	(528.31)
At the end of the year	788.67	678.63

Page 44 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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24. Revenue from operations

Accounting Policy

(i) Measurement of revenue Revenue is measured based on the transaction price, which is the consideration, adjusted for discounts, incentive schemes, if any, as per contracts with customers. Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring good or service to a customer. Taxes collected from customers on behalf of Government are not treated as Revenue.

• (ii) Performance obligations:-

• (a) Sale of goods

Revenue from contracts with customers involving sale of these products is recognized at a point in time when control of the product has been transferred at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services, and there are no unfulfilled obligation that could affect the customer’s acceptance of the products and the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. At contract inception, the Company assess the goods or services promised in a contract with a customer and identify as a performance obligation each promise to transfer to the customer. Revenue from contracts with customers is recognized when control of goods are transferred to customers and the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. The point of time of transfer of control to customers depends on the terms of the trade - CIF, CFR or DDP, ex-works, etc.

• (b) Revenue from construction contracts

Performance obligation in case of revenue from long - term contracts is satisfied over the period of time, the revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation. However, the same may not be possible if it lacks reliable information that would be required to apply an appropriate method of measuring progress. In some circumstances, if the Company is not able to reasonably measure the outcome of a performance obligation, but expects to recover the costs incurred in satisfying the performance obligation, the company shall recognise revenue only to the extent of the costs incurred until such time that it can reasonably measure the outcome of the performance obligation.

Contract asset is the entity’s right to consideration in exchange for goods or services that the entity has transferred to the customer. A contract asset becomes a receivable when the entity’s right to consideration is unconditional, which is the case when only the passage of time is required before payment of the consideration is due.

Contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract. The timing of the transfer of control varies depending on individual terms of the sales agreements. The total costs of contracts are estimated based on technical and other estimates. Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in Statement of Profit & Loss immediately in the period in which such costs are incurred. Incremental costs of obtaining a contract, if any, and costs incurred to fulfil a contract are amortised over the period of execution of the contract.

In the event that a loss is anticipated on a particular contract, provision is made for the estimated loss. Contract revenue earned in excess of billing is reflected under as “contract asset” and billing in excess of contract revenue is reflected under “contract liabilities”.

• (iii) Variable consideration

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

(iv) Schemes

The Company operates several sales incentive programmes wherein the customers are eligible for several benefits on achievement of underlying conditions as prescribed in the scheme programme such as credit notes, tours, kind etc. Revenue from contract with customer is presented deducting cost of all these schemes.

• (v) Significant financing components

In respect of advances from its customers, using the practical expedient in Ind AS 115, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be within normal operating cycle. Retention money receivable from project customers does not contain any significant financing element, these are retained for satisfactory performance of contract. Contract assets arising from such customer contracts are subject to impairment assessment.

(vi) Warranty

The Company typically provides warranties for general repairs of defects that existed at the time of sale, as required by law. These assurancetype warranties are accounted for under Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets. Refer to the accounting policy on warranty as per note 22. In certain contracts, the Company provides warranty for an extended period of time and includes rectification of defects that existed at the time of sale and are normally bundled together with the main contract. Such bundled contracts include two separate performance obligations, because the promises to transfer the goods and services and the provision of service-type warranty are capable of being distinct. Using the relative stand-alone selling price method, a portion of the transaction price is allocated to the service-type warranty and recognised as a contract liability at the time of recognition of revenue. Revenue allocated towards service-type warranty is recognised over a period of time on a basis appropriate to the nature of the contract and services to be rendered.

Page 45 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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24. Revenue from operations

• (vii) Right to return

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

At the point of sale, a refund liability and a corresponding adjustment to revenue is recognised for those products expected to be returned. At the same time, the Company has a right to recover the product when customers exercise their right of return. Consequently, the Company recognises a right to returned goods asset and a corresponding adjustment to cost of sales. The Company uses its accumulated historical experience to estimate the number of returns on a portfolio level using the expected value method. It is considered highly probable that a significant reversal in the cumulative revenue recognised will not occur given the consistent level of returns over previous years. The Company updates its estimates of refund liabilities (and the corresponding change in the transaction price) at the end of each reporting period. Refer to above accounting policy on variable consideration.

For goods expected to be returned, the Company presented a refund liability and an asset for the right to recover products from a customer separately in the balance sheet.

(viii) Onerous Contracts

A provision for onerous contract is recognised when the expected benefits to be derived by the company from a contract are lower than the unavoidable cost of meeting its obligation under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the company recognises any impairment loss on assets associated.

(ix) Export incentives

Export incentives under various schemes notified by the Government have been recognised on the basis of applicable regulations, and when reasonable assurance to receive such revenue is established. Export incentives income is recognised in the statement of profit and loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate.

(x) Cost to obtain a contract Any costs to obtain a contract or incremental costs to fulfil a contract are recognised as an asset if certain criteria are met as per Ind AS 115. The Company applies the optional practical expedient to immediately expense costs to obtain a contract if the amortisation period of the asset that would have been recognised is one year or less.

• (xi) Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. Government grants are recognised in the statement of profit and loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate.

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

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

The export incentive and grants received are in the nature of other operating revenue in the Statement of Profit & Loss.

Revenue from operations

Revenue from operations	Revenue from operations	Revenue from operations	Revenue from operations
(₹ million)
31 Mar 25 31 Mar 24
Revenue from contracts with customers
Revenue on Sale of Products
Finishedgoods		1,91,565.12	1,63,798.04
Tradedgoods		4,965.71	6,244.34
Revenue from Construction Contracts		19,052.48	7,810.86
		2,15,583.31	1,77,853.24
Other operating revenue
Job work income		5.40	12.76
Scrapsales		2,628.59	1,791.64
Total revenue from contracts with customers		2,18,217.30	1,79,657.64
Export incentives		54.50	66.37
Governmentgrants		867.72	784.50
Total Revenue from operations		2,19,139.52	1,80,508.51
Notes: (a) Disaggregated revenue information (₹ million) 31 Mar 25 31 Mar 24 Type of Goods or Services Wires & Cables 1,84,072.48 1,60,418.58 FastMovingElectricalGoods (FMEG) 15,092.34 11,428.20 Revenuefromconstructioncontracts 19,052.48 7,810.86 Total revenue from contracts with customers 2,18,217.30 1,79,657.64 Location of customer India 2,05,845.70 1,62,172.64 Outside India 12,371.60 17,485.00 Total revenue from contracts with customers 2,18,217.30 1,79,657.64 Timing of revenue recognition Goods transferred at apoint in time 1,99,153.82 1,71,817.56 Goods and Services transferred over aperiod of time 19,063.48 7,840.08 Total revenue from contracts with customers 2,18,217.30 1,79,657.64 Revenue from B2B and B2C Vertical Business to Consumer 63,922.45 53,039.66 Business to Business 1,50,899.05 1,23,372.39 Others(i) 3,395.80 3,245.59 Total revenue from contracts with customers 2,18,217.30 1,79,657.64
	31 Mar 25 31 Mar 24
	Type of Goods or Services
	Wires & Cables	1,84,072.48	1,60,418.58
	FastMovingElectricalGoods (FMEG)	15,092.34	11,428.20
	Revenuefromconstructioncontracts	19,052.48	7,810.86
	Total revenue from contracts with customers	2,18,217.30	1,79,657.64
	Location of customer
	India	2,05,845.70	1,62,172.64
	Outside India	12,371.60	17,485.00
	Total revenue from contracts with customers	2,18,217.30	1,79,657.64
	Timing of revenue recognition
	Goods transferred at apoint in time	1,99,153.82	1,71,817.56
	Goods and Services transferred over aperiod of time	19,063.48	7,840.08
	Total revenue from contracts with customers	2,18,217.30	1,79,657.64
	Revenue from B2B and B2C Vertical
	Business to Consumer	63,922.45	53,039.66
	Business to Business	1,50,899.05	1,23,372.39
	Others(i)	3,395.80	3,245.59
	Total revenue from contracts with customers	2,18,217.30	1,79,657.64

Note:(i) Others includes discounts, scrap sales, raw material sales, and job work income.

Page 46 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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24. Revenue from operations

(b)	Reconciliation of the revenue from contracts with customers with the amounts disclosed in the segment information (₹ million)	Reconciliation of the revenue from contracts with customers with the amounts disclosed in the segment information (₹ million)	Reconciliation of the revenue from contracts with customers with the amounts disclosed in the segment information (₹ million)
	31 Mar 25 31 Mar 24
	Total revenue from contracts with customers	2,18,217.30	1,79,657.64
	Export incentives (Refer note (a))	54.50	66.37
	Government grant (Refer note (b))	867.72	784.50
	Other income excludingfinance income	604.48	994.96
	Total income as per Segment (Refer note 38)	2,19,744.00	1,81,503.47
	Notes: (a) Export incentive includes Remission of Duties and Taxes on Export Products (RoDTEP) and duty drawback incentives.

(b) Government grant includes advance licence benefits and deferred income released to the statement of profit and loss on fulfilment of export obligation under the export promotion capital goods (EPCG) scheme.

(c)	Reconciliation between revenue with customers and contracted price as per Ind AS 115: (₹ million)	Reconciliation between revenue with customers and contracted price as per Ind AS 115: (₹ million)	Reconciliation between revenue with customers and contracted price as per Ind AS 115: (₹ million)
	31 Mar 25 31 Mar 24
	Revenue as per contracted price	2,20,535.57	1,82,200.38
	Adjustments:
	Price adjustments such as Discounts,Rebates and Sales Promotion Schemes	(3,123.86)	(2,630.67)
	Change in contract liabilities(excess billingover revenue recognised asper applicable Ind-AS)	163.33	(118.90)
	Provisions for expected sales return	(110.04)	(49.26)
	Change in contract assets(Unbilled Revenue - EPC)	746.70	239.63
	Other adjustments	5.60	16.46
	Revenue from contract with customers	2,18,217.30	1,79,657.64

(d)	Disclosure in terms of Ind AS 115 on the accounting of construction contract is as under: (₹ million)	Disclosure in terms of Ind AS 115 on the accounting of construction contract is as under: (₹ million)	Disclosure in terms of Ind AS 115 on the accounting of construction contract is as under: (₹ million)
	31 Mar 25 31 Mar 24
	Contract revenue recognised for theyear ended	19,052.48	7,810.86
	Contract that are inprogress as on reportingdate
	(i) Contract costs incurred and recognisedprofits(less recognised losses)	19,052.48	7,810.86
	(ii) Amount of retentions*	2,992.03	1,186.88
	(iii) Contract balances recognised and included in financial statement as:
	Contract asset	1,082.42	365.59
	Contract liabilities	860.89	1,024.22

*Retentions are specific to projects and are generally receivable within 6 months from completion of project.

(e) Trade receivables are usually non-interest bearing and are generally on credit terms up to 90 days except EPC business. Provision for expected credit losses on trade receivables recognised during the year of ₹ 190.23 million (31 March 2024: ₹ 305.26 million). The Company has channel finance arrangement for providing credit to its dealers. Evaluation is made as per the terms of the contract i.e. if the Company does not retain any risk and rewards or control over the financial assets, then the entity derecognises such assets upon transfer of financial assets under such arrangement with the banks.

(f) No single customer contributed 10% or more to the Company's revenue for the year ended 31 March 2025 and 31 March 2024.

(f)	expected credit losses on trade receivables recognised during the year of ₹ 190.23 million (31 March 2024: ₹ 305.26 million). The Company has channel finance arrangement for providing credit to its dealers. Evaluation is made as per the terms of the contract i.e. if the Company does not retain any risk and rewards or control over the financial assets, then the entity derecognises such assets upon transfer of financial assets under such arrangement with the banks. No single customer contributed 10% or more to the Company's revenue for the year ended 31 March 2025 and 31 March 2024.	expected credit losses on trade receivables recognised during the year of ₹ 190.23 million (31 March 2024: ₹ 305.26 million). The Company has channel finance arrangement for providing credit to its dealers. Evaluation is made as per the terms of the contract i.e. if the Company does not retain any risk and rewards or control over the financial assets, then the entity derecognises such assets upon transfer of financial assets under such arrangement with the banks. No single customer contributed 10% or more to the Company's revenue for the year ended 31 March 2025 and 31 March 2024.	expected credit losses on trade receivables recognised during the year of ₹ 190.23 million (31 March 2024: ₹ 305.26 million). The Company has channel finance arrangement for providing credit to its dealers. Evaluation is made as per the terms of the contract i.e. if the Company does not retain any risk and rewards or control over the financial assets, then the entity derecognises such assets upon transfer of financial assets under such arrangement with the banks. No single customer contributed 10% or more to the Company's revenue for the year ended 31 March 2025 and 31 March 2024.
(g) (h) (i)	Set out below is the amount of revenue recognised from: (₹ million)
	31 Mar 25 31 Mar 24
	Amounts included in contract liabilities at the beginningof theyear	1,014.11	7,621.14
	Performance obligations satisfied inpreviousyears	365.59	72.39
	Right of return assets and refund liabilities as at year end: (₹ million)
	31 Mar 25 31 Mar 24
	Right of return assets	304.80	306.60
	Refund liabilities	788.67	678.63
	Allocation of the transaction price to the remaining performance obligations: (₹ million)
	31 Mar 25 31 Mar 24
	Within oneyear	25,896.79	14,834.56
	More than oneyear	42,354.30	32,773.17
		68,251.09	47,607.73

Page 47 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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25. Other income

Accounting Policy:

Other income is comprised primarily of interest income, dividend income, gain on investments and exchange gain on forward contracts and on translation of other assets and liabilities.

Interest income on financial asset measured either at amortised cost or FVTPL is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time 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 asset to that asset’s net carrying amount on initial recognition.

Dividend income from investments is recognised when the shareholder’s right to receive payment has been established.

Foreign Currency

The Company’s Financial Statements are presented in Indian rupee (₹) which is also the Company’s functional currency. Foreign currency transaction are recorded on initial recognition in the functional currency, using the exchange rate prevailing at the date of transaction.

Measurement of foreign currency item at the balance sheet date:

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

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

(iii) Exchange differences :

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

(iii) Exchange differences: Exchange differences arising on settlement or translation of monetary items are recognised as income or expense in the Statement of Profit & Loss.	(iii) Exchange differences: Exchange differences arising on settlement or translation of monetary items are recognised as income or expense in the Statement of Profit & Loss.	(iii) Exchange differences: Exchange differences arising on settlement or translation of monetary items are recognised as income or expense in the Statement of Profit & Loss.
(₹ million)
31 Mar 25 31 Mar 24
(a) Interest income on financial assets under effective interest method
Carried at amortised cost
Bank deposits	213.92	225.02
Others	167.69	97.91
Carried at FVTPL
Others	3.52	3.15
(b) Income from Investments designated at FVTPL
Gain on redemption of mutual funds	1,153.75	815.01
Fair valuationgain on mutual funds	45.73	62.21
(c) Dividend income	70.99	-
(d) Fair value gain / loss on financial instruments
Derivatives at FVTPL (Refer note (a))	42.88	-
(e) Other non-operating income
Exchange differences(net)	268.88	758.84
Gain on sale ofproperty, plant and equipment	-	1.93
Gain on termination of lease	1.01	1.60
Sundrybalances written back	23.11	-
Miscellaneous income	197.61	232.59
	2,189.09	2,198.26

(a) Gain on fair valuation of financial instruments at fair value through profit or loss relates to foreign exchange fluctuation on forward contracts that are designated as at fair value through profit and loss account and on embedded derivatives, which have been separated. No ineffectiveness has been recognised on foreign exchange and interest rate hedges.

26. Cost of materials consumed

Cost of materials consumed (₹ million)
	31 Mar 25	31 Mar 24
Inventories at the beginning of the year	14,801.56	12,820.18
Add: Purchases	1,49,258.01	1,28,663.14
	1,64,059.57	1,41,483.32
Less: Inventories at the end of the year	(10,002.28)	(14,801.56)
Cost of materials consumed	1,54,057.29	1,26,681.76
Note: Details of material consumed (₹ million)
31 Mar 25 31 Mar 24
Copper	89,567.43	77,967.29
Aluminium	31,176.30	20,592.71
Steel	4,682.72	4,177.69
PVC Compound/HDPE/LDPE/XLPE/Resin	16,960.05	14,796.57
Packing Materials	3,863.05	3,169.82
Others*	7,807.74	5,977.68
	1,54,057.29	1,26,681.76
* Others includes Raw material for consumer products Purchases of stock-in-trade (₹ million)
31 Mar 25 31 Mar 24
Electrical wiring accessories	266.67	280.81
Electrical appliances	3,486.65	3,142.13
Others	30.86	78.41
	3,784.18	3,501.35

27. Purchases of stock-in-trade

Page 48 of 71

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Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

28. Changes in inventories of finished goods, stock-in-trade and work-in-progress

Changes in inventories of finished goods, stock-in-trade and work-in-progress (₹ million)
31 Mar 25 31 Mar 24
Inventory at the beginning of the year
Finished goods	10,940.66	11,089.02
Stock-in-trade	793.84	1,198.92
Scrap materials	639.11	429.91
Work-in-progress	3,451.89	2,174.94
	15,825.50	14,892.79
Inventory at the end of the year
Finished goods	15,320.35	10,940.66
Stock-in-trade	680.44	793.84
Scrap materials	693.81	639.11
Work-in-progress	4,383.41	3,451.89
	21,078.01	15,825.50
Changes in Inventories	(5,252.51)	(932.71)

29. Project bought outs and sub-contracting cost (₹ million) 31 Mar 25 31 Mar 24 Project bought outs 11,115.70 4,104.14 Sub-contracting expenses for EPC 1,453.17 639.33 12,568.87 4,743.47	29. Project bought outs and sub-contracting cost (₹ million) 31 Mar 25 31 Mar 24 Project bought outs 11,115.70 4,104.14 Sub-contracting expenses for EPC 1,453.17 639.33 12,568.87 4,743.47	29. Project bought outs and sub-contracting cost (₹ million) 31 Mar 25 31 Mar 24 Project bought outs 11,115.70 4,104.14 Sub-contracting expenses for EPC 1,453.17 639.33 12,568.87 4,743.47	29. Project bought outs and sub-contracting cost (₹ million) 31 Mar 25 31 Mar 24 Project bought outs 11,115.70 4,104.14 Sub-contracting expenses for EPC 1,453.17 639.33 12,568.87 4,743.47
	31 Mar 25 31 Mar 24
	Project bought outs	11,115.70	4,104.14
	Sub-contracting expenses for EPC	1,453.17	639.33
		12,568.87	4,743.47

30. Employee benefits expense

Accounting policy

• (i) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages, incentives, special awards, medical benefits etc. are charged to the Statement of Profit & Loss in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid when there is a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

• (ii) Compensated absences

The Company estimates and provides the liability for such short-term and long term benefits based on the terms of the policy. The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the yearend. Remeasurement gains/losses on defined benefit plans are immediately taken to the Statement of Profit & Loss and are not deferred.

• (iii) Defined contribution plans

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

• (iv) Defined benefit plan

The Company operates a defined benefit gratuity plan for its employees. The costs of providing benefits under this plan is determined on the basis of actuarial valuation at each year-end using the projected unit credit method. The discount rate used for determining the present value of obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations. Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the Balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to Statement of Profit & Loss in subsequent periods. Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. Past service costs are recognised in profit or loss on the earlier of:

• The date of the plan amendment or curtailment, and

• • The date that the Company recognises related restructuring costs

• When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service (‘past service cost’ or ‘past service gain’) or the gain or loss on curtailment is recognised immediately in Statement of profit and Loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

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

The fair value determined at the grant date of the equity-settled share based payment is expensed on a straight line basis over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimates of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any is, recognised in Statement of Profit and Loss such that the cumulative expenses reflects the revised estimate, with a corresponding adjustment to the ESOP outstanding account (Refer note 16(g)).

No expense is recognised for options that do not ultimately vest because non market performance and/ or service conditions have not been met.

The dilutive effect, if any of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share (Refer note 34).

Page 49 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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30. Employee benefits expense

Employee benefits expense	Employee benefits expense	Employee benefits expense
Employee benefits expense (₹ million)
31 Mar 25 31 Mar 24
Salaries, wages and bonus	5,584.87	4,749.46
Employees share based payment expenses	687.00	564.24
Contribution to provident and other funds	355.18	320.71
Staff welfare expense	269.50	231.64
	6,896.55	5,866.05

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective. Based on a preliminary assessment, the Company believes the impact of the change will not be significant.

Gratuity and other post-employment benefit plans

(A) Defined Benefit plan

Gratuity Valuation - As per actuary

In respect of Gratuity, the Company makes annual contribution to the employee group gratuity scheme of the Life Insurance Corporation of India, funded defined benefits plan for qualified employees. The scheme provided for lump sum payments to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service. The Company has provided for gratuity based on the actuarial valuation done as per Project Unit Credit Method.

Defined benefit plans expose the Company to actuarial risks such as:

• (i) Interest rate risk

A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

(ii) Salary Risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.

(iii) Investment Risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

(iv) Asset Liability Matching Risk

The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

• (v) Mortality risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

(vi) Concentration Risk

Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow regulatory guidelines which mitigate risk.

(vii) Variability in withdrawal rates

If actual withdrawal rates are higher than assumed withdrawal rate assumption then the gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

(viii) Regulatory Risk

Gratuity Benefit must comply with the requirements of the Payment of Gratuity Act, 1972 (as amended up-to-date). There is a risk of change in the regulations requiring higher gratuity payments.

A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by rule 103 of Income Tax Rules, 1962.

The Company operates a defined benefit plan, viz., gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The most recent actuarial valuation of the present value of defined obligation and plan assets were carried out as at 31 March 2025 by an external independent fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation and the related current service cost were measured using the projected unit credit method.

Page 50 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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30. Employee benefits expense

The following tables summarise the components of net benefit expenses recognised in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for gratuity.

Statement of profit and loss

Statement of profit and loss	Statement of profit and loss
Net employee benefits expense recognised in profit or loss:		(₹ million)
31 Mar 25		31 Mar 24
Current service cost	97.29	78.17
Past Service cost	-	42.31
Net interest cost	29.97	20.20
Net benefits expense	127.26	140.68
Net remeasurement (gain)/ loss on defined benefit plans recognised in Other comprehensive income for the year:		(₹ million)
31 Mar 25		31 Mar 24
Actuarial (gain) /loss on obligations	89.88	89.98
Return on plan assets, excluding interest income	2.35	0.59
Net (Income)/Expense for the year recognized inOCI	92.23	90.57
Balance sheet Benefits liability		(₹ million)
31 Mar 25		31 Mar 24
Present value of defined benefit obligation	(1,105.03)	(888.27)
Fair value of plan assets	618.77	471.54
Plan liability	(486.26)	(416.73)
Changes in the present value of the defined benefit obligation are as follows:		(₹ million)
31 Mar 25		31 Mar 24
Opening defined benefit obligation	888.27	675.68
Interest cost	63.72	49.82
Current service cost	97.29	78.17
Past Service Cost	-	42.31
Liability Transferred In/ Acquisitions	0.07	1.17
(Liability Transferred Out/ Divestments)	(0.20)	(0.01)
(Benefit Paid Directly by the Employer)	-	(2.02)
(Benefit Paid From the Fund)	(34.00)	(46.83)
Actuarial (gains)/losses on obligations	-	-
Due to change in demographics assumptions	-	-
Due to change in financial assumptions	38.25	13.46
Due to experience	51.63	76.52
Closing defined benefit obligation	1,105.03	888.27
Changes in the fair value of plan assets are as follows:		(₹ million)
31 Mar 25		31 Mar 24
Opening fair value of plan assets	471.54	402.37
Interest Income	33.76	29.62
Contribution by employer	149.83	86.97
Benefits paid	(34.02)	(46.83)
Return on Plan Assets, Excluding Interest Income	(2.34)	(0.59)
Closing fair value of plan assets	618.77	471.54
The Company expects to contribute ₹ 193.61 million towards gratuity in the next year (31 March 2024: ₹ 159.17 million). Current & non-current bifurcation of provision for gratuity as per actuarial valuation is as follows:		(₹ million)
31 Mar 25		31 Mar 24
Non-current	292.65	257.56
Current	193.61	159.17
The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
	31 Mar 25	31 Mar 24
Investmentwith insurer	100%	100%
The principal assumptions used in determining gratuity for the Company's plans are shown below:
	31 Mar 25	31 Mar 24
Discountrate	6.65%	7.19%
Expectedrate of returnonplanassets	6.65%	7.19%
Employee turnover	10.00%	10.00%
Salary escalation	11.00%	11.00%
Weighted average duration	8	8
Mortality rate during employment	Indian Assured Lives Mortality 2012-14 (Urban)	Indian Assured Lives Mortality 2012-14 (Urban)

Page 51 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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30. Employee benefits expense

The average expected future service as at 31 March 2025 is 7 years (31 March 2024- 7 years).

The estimates of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on plan assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

A quantitative sensitivity analysis for significant assumption as at 31 March 2025 is as shown below:

Sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be co-related. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

A quantitative sensitivity analysis for significant assumption as at 31 March 2025 is as shown below: Sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be co-related. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.	A quantitative sensitivity analysis for significant assumption as at 31 March 2025 is as shown below: Sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be co-related. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.	A quantitative sensitivity analysis for significant assumption as at 31 March 2025 is as shown below: Sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be co-related. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.
Sensitivity analysis (₹ million)
	31 Mar 25	31 Mar 24
Projected benefit obligationoncurrent assumptions	1,105.03	888.27
Delta effect of+1% changein rate ofdiscounting	(68.85)	(55.15)
Delta effect of -1% changein rate ofdiscounting	78.34	62.62
Delta effect of+1% changein rate ofsalaryincrease	74.36	59.76
Delta effect of -1% changein rate ofsalaryincrease	(66.87)	(53.83)
Delta effect of+1% changein rate ofemployee turnover	(20.44)	(14.49)
Delta effect of -1% changein rate ofemployee turnover	22.70	16.09

Methodology for defined benefit obligation:

The Projected Unit Credit (PUC) actuarial method has been used to assess the plan’s liabilities, including those related to death-in-service and incapacity benefits.

Under PUC method a projected accrued benefit is calculated at the beginning of the year and again at the end of the year for each benefit that will accrue for all active members of the plan. The projected accrued benefit is based on the plan’s accrual formula and upon service as of the beginning or end of the year, but using a member’s final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the projected accrued benefits for active members.

Projected benefits payable in future years from the date of reporting.

Projected benefits payable in future years from the date of reporting.	Projected benefits payable in future years from the date of reporting.	Projected benefits payable in future years from the date of reporting.
Maturity analysis of projected benefit obligation from the fund: (₹ million)
	31 Mar 25	31 Mar 24
1stfollowing year	167.28	87.16
2ndfollowing year	83.55	78.09
3rdfollowing year	95.54	122.90
4th following year	106.52	85.50
5th following year	88.52	87.97
Sumofyears 6 to10	438.70	362.12
Sumofyears11years and above	934.55	794.22

(B) Other defined benefit and contribution plans

Provident Fund

The Company contribute towards Provident Fund to defined contribution retirement benefit plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company contributes towards Provident Fund managed by Central Government and has recognised ₹ 165.12 million (31 March 2024: ₹ 150.27 million) for provident fund contributions in the Statement of Profit and Loss.

Pension Fund

Contribution to National Pension Scheme, a defined contribution scheme, is made at predetermined rates to the asset management companies under National Pension Scheme and is charged to the statement of profit and loss. The Company contribution has recognised ₹ 19.34 million (31 March 2024: ₹ 15.92 million) for contribution to National Pension Scheme in the Statement of Profit and Loss.

Compensated absences (unfunded)

In respect of Compensated absences, accrual is made on the basis of a year-end actuarial valuation as at balance sheet date except for Halol workers. The actuarial valuation done as per Project Unit Credit Method except for Halol workers.

The leave obligation covers the Company’s liability for earned leave. The amount of the provision of ₹ 253.04 million (31 March 2024: ₹ 197.65 million) is presented as current. The Company has recognised contribution of ₹ 70.97 million (31 March 2024: ₹ 46.67 million) for Compensated absences in the Statement of Profit and Loss.

Page 52 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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31. Finance cost

Accounting Policy

Borrowing cost includes interest expense on financial liabilities, interest on tax matters, exchange differences arising from the foreign currency borrowings, gain/loss on fair value of forward cover and it's premium and amortisation of ancillary costs incurred in connection with the arrangement of borrowings.

Finance cost Accounting Policy Borrowing cost includes interest expense on financial liabilities, interest on tax matters, exchange differences arising from the foreign currency borrowings, gain/loss on fair value of forward cover and it's premium and amortisation of ancillary costs incurred in connection with the arrangement of borrowings.	Finance cost Accounting Policy Borrowing cost includes interest expense on financial liabilities, interest on tax matters, exchange differences arising from the foreign currency borrowings, gain/loss on fair value of forward cover and it's premium and amortisation of ancillary costs incurred in connection with the arrangement of borrowings.	Finance cost Accounting Policy Borrowing cost includes interest expense on financial liabilities, interest on tax matters, exchange differences arising from the foreign currency borrowings, gain/loss on fair value of forward cover and it's premium and amortisation of ancillary costs incurred in connection with the arrangement of borrowings.
(₹ million)
31 Mar 25 31 Mar 24
Interest expense on financial liabilities at amortised cost (Refer note (a))	1,241.23	805.16
Interest expense on financial liabilities at FVTPL (Refer note 5)	61.57	35.07
Other borrowing costs (Refer note (b))	285.69	164.19
	1,588.49	1,004.42

(a) Interest expense includes ₹ 14.47 million (31 March 2024: ₹ 4.26 million) paid / payable to Income Tax Department. (b) Other borrowing costs would include bank commission charges, bank guarantee charges, letter of credit charges, premium on forward contract, fair value loss/(gain) on forward contracts, other ancillary costs incurred in connection with borrowings.

32. Depreciation and amortisation expenses (₹ million) 31 Mar 25 31 Mar 24 Depreciation of property, plant and equipment (Refer note 3) 2,630.07 2,172.84 Depreciation of right-of-use assets (Refer note 5) 181.79 151.47 Amortisation of other intangible assets (Refer note 6) 55.53 47.09 2,867.39 2,371.40 33. Other expenses (₹ million) 31 Mar 25 31 Mar 24 Consumption of stores and spares 1,095.49 1,116.88 Sub-contracting expenses 4,094.81 3,411.83 Power and fuel 2,524.60 2,155.29 Rent 68.58 43.21 Rates and taxes 169.17 100.50 Insurance 249.34 138.21 Repairs and maintenance Plant and machinery 86.09 70.65 Buildings 92.60 66.73 Others 187.41 138.76 Advertising and sales promotion 1,200.20 1,980.31 Brokerage and commission 449.29 467.16 Travelling and conveyance 705.86 548.68 Communication cost 68.51 48.18 Legal and professional fees 1,400.49 981.40 Director sitting fees 7.16 6.86 Freight & forwarding expenses 3,588.17 3,348.54 Payments to auditor (Refer note (a) below) 15.44 13.14 Sundry advances written off - 0.43 Loss on sale of property, plant and equipment 29.72 - Fair valuation loss on derivatives (Refer note (b) below) - 145.15 Impairment allowance for trade receivable considered doubtful and contract assets (Refer note 8 and 14) 220.10 314.84 Impairment of goodwill 46.22 - Impairment of investment accounted for using the equity method - 105.20 CSR expenditure (Refer note (c)) 347.84 259.01 Miscellaneous expenses 1,785.80 822.96 18,432.89 16,283.92 Notes: (a) Payments to auditor: (₹ million) 31 Mar 25 31 Mar 24 As auditor (i) Audit fee 14.19 12.44 (ii) Certification fees 0.80 0.26 (iii) Out of pocket expenses 0.45 0.44 15.44 13.14	32. Depreciation and amortisation expenses (₹ million) 31 Mar 25 31 Mar 24 Depreciation of property, plant and equipment (Refer note 3) 2,630.07 2,172.84 Depreciation of right-of-use assets (Refer note 5) 181.79 151.47 Amortisation of other intangible assets (Refer note 6) 55.53 47.09 2,867.39 2,371.40 33. Other expenses (₹ million) 31 Mar 25 31 Mar 24 Consumption of stores and spares 1,095.49 1,116.88 Sub-contracting expenses 4,094.81 3,411.83 Power and fuel 2,524.60 2,155.29 Rent 68.58 43.21 Rates and taxes 169.17 100.50 Insurance 249.34 138.21 Repairs and maintenance Plant and machinery 86.09 70.65 Buildings 92.60 66.73 Others 187.41 138.76 Advertising and sales promotion 1,200.20 1,980.31 Brokerage and commission 449.29 467.16 Travelling and conveyance 705.86 548.68 Communication cost 68.51 48.18 Legal and professional fees 1,400.49 981.40 Director sitting fees 7.16 6.86 Freight & forwarding expenses 3,588.17 3,348.54 Payments to auditor (Refer note (a) below) 15.44 13.14 Sundry advances written off - 0.43 Loss on sale of property, plant and equipment 29.72 - Fair valuation loss on derivatives (Refer note (b) below) - 145.15 Impairment allowance for trade receivable considered doubtful and contract assets (Refer note 8 and 14) 220.10 314.84 Impairment of goodwill 46.22 - Impairment of investment accounted for using the equity method - 105.20 CSR expenditure (Refer note (c)) 347.84 259.01 Miscellaneous expenses 1,785.80 822.96 18,432.89 16,283.92 Notes: (a) Payments to auditor: (₹ million) 31 Mar 25 31 Mar 24 As auditor (i) Audit fee 14.19 12.44 (ii) Certification fees 0.80 0.26 (iii) Out of pocket expenses 0.45 0.44 15.44 13.14	32. Depreciation and amortisation expenses (₹ million) 31 Mar 25 31 Mar 24 Depreciation of property, plant and equipment (Refer note 3) 2,630.07 2,172.84 Depreciation of right-of-use assets (Refer note 5) 181.79 151.47 Amortisation of other intangible assets (Refer note 6) 55.53 47.09 2,867.39 2,371.40 33. Other expenses (₹ million) 31 Mar 25 31 Mar 24 Consumption of stores and spares 1,095.49 1,116.88 Sub-contracting expenses 4,094.81 3,411.83 Power and fuel 2,524.60 2,155.29 Rent 68.58 43.21 Rates and taxes 169.17 100.50 Insurance 249.34 138.21 Repairs and maintenance Plant and machinery 86.09 70.65 Buildings 92.60 66.73 Others 187.41 138.76 Advertising and sales promotion 1,200.20 1,980.31 Brokerage and commission 449.29 467.16 Travelling and conveyance 705.86 548.68 Communication cost 68.51 48.18 Legal and professional fees 1,400.49 981.40 Director sitting fees 7.16 6.86 Freight & forwarding expenses 3,588.17 3,348.54 Payments to auditor (Refer note (a) below) 15.44 13.14 Sundry advances written off - 0.43 Loss on sale of property, plant and equipment 29.72 - Fair valuation loss on derivatives (Refer note (b) below) - 145.15 Impairment allowance for trade receivable considered doubtful and contract assets (Refer note 8 and 14) 220.10 314.84 Impairment of goodwill 46.22 - Impairment of investment accounted for using the equity method - 105.20 CSR expenditure (Refer note (c)) 347.84 259.01 Miscellaneous expenses 1,785.80 822.96 18,432.89 16,283.92 Notes: (a) Payments to auditor: (₹ million) 31 Mar 25 31 Mar 24 As auditor (i) Audit fee 14.19 12.44 (ii) Certification fees 0.80 0.26 (iii) Out of pocket expenses 0.45 0.44 15.44 13.14	32. Depreciation and amortisation expenses (₹ million) 31 Mar 25 31 Mar 24 Depreciation of property, plant and equipment (Refer note 3) 2,630.07 2,172.84 Depreciation of right-of-use assets (Refer note 5) 181.79 151.47 Amortisation of other intangible assets (Refer note 6) 55.53 47.09 2,867.39 2,371.40 33. Other expenses (₹ million) 31 Mar 25 31 Mar 24 Consumption of stores and spares 1,095.49 1,116.88 Sub-contracting expenses 4,094.81 3,411.83 Power and fuel 2,524.60 2,155.29 Rent 68.58 43.21 Rates and taxes 169.17 100.50 Insurance 249.34 138.21 Repairs and maintenance Plant and machinery 86.09 70.65 Buildings 92.60 66.73 Others 187.41 138.76 Advertising and sales promotion 1,200.20 1,980.31 Brokerage and commission 449.29 467.16 Travelling and conveyance 705.86 548.68 Communication cost 68.51 48.18 Legal and professional fees 1,400.49 981.40 Director sitting fees 7.16 6.86 Freight & forwarding expenses 3,588.17 3,348.54 Payments to auditor (Refer note (a) below) 15.44 13.14 Sundry advances written off - 0.43 Loss on sale of property, plant and equipment 29.72 - Fair valuation loss on derivatives (Refer note (b) below) - 145.15 Impairment allowance for trade receivable considered doubtful and contract assets (Refer note 8 and 14) 220.10 314.84 Impairment of goodwill 46.22 - Impairment of investment accounted for using the equity method - 105.20 CSR expenditure (Refer note (c)) 347.84 259.01 Miscellaneous expenses 1,785.80 822.96 18,432.89 16,283.92 Notes: (a) Payments to auditor: (₹ million) 31 Mar 25 31 Mar 24 As auditor (i) Audit fee 14.19 12.44 (ii) Certification fees 0.80 0.26 (iii) Out of pocket expenses 0.45 0.44 15.44 13.14	32. Depreciation and amortisation expenses (₹ million) 31 Mar 25 31 Mar 24 Depreciation of property, plant and equipment (Refer note 3) 2,630.07 2,172.84 Depreciation of right-of-use assets (Refer note 5) 181.79 151.47 Amortisation of other intangible assets (Refer note 6) 55.53 47.09 2,867.39 2,371.40 33. Other expenses (₹ million) 31 Mar 25 31 Mar 24 Consumption of stores and spares 1,095.49 1,116.88 Sub-contracting expenses 4,094.81 3,411.83 Power and fuel 2,524.60 2,155.29 Rent 68.58 43.21 Rates and taxes 169.17 100.50 Insurance 249.34 138.21 Repairs and maintenance Plant and machinery 86.09 70.65 Buildings 92.60 66.73 Others 187.41 138.76 Advertising and sales promotion 1,200.20 1,980.31 Brokerage and commission 449.29 467.16 Travelling and conveyance 705.86 548.68 Communication cost 68.51 48.18 Legal and professional fees 1,400.49 981.40 Director sitting fees 7.16 6.86 Freight & forwarding expenses 3,588.17 3,348.54 Payments to auditor (Refer note (a) below) 15.44 13.14 Sundry advances written off - 0.43 Loss on sale of property, plant and equipment 29.72 - Fair valuation loss on derivatives (Refer note (b) below) - 145.15 Impairment allowance for trade receivable considered doubtful and contract assets (Refer note 8 and 14) 220.10 314.84 Impairment of goodwill 46.22 - Impairment of investment accounted for using the equity method - 105.20 CSR expenditure (Refer note (c)) 347.84 259.01 Miscellaneous expenses 1,785.80 822.96 18,432.89 16,283.92 Notes: (a) Payments to auditor: (₹ million) 31 Mar 25 31 Mar 24 As auditor (i) Audit fee 14.19 12.44 (ii) Certification fees 0.80 0.26 (iii) Out of pocket expenses 0.45 0.44 15.44 13.14
	31 Mar 25 31 Mar 24
	Consumption of stores and spares		1,095.49	1,116.88
	Sub-contracting expenses		4,094.81	3,411.83
	Power and fuel		2,524.60	2,155.29
	Rent		68.58	43.21
	Rates and taxes		169.17	100.50
	Insurance		249.34	138.21
	Repairs and maintenance
	Plant and machinery		86.09	70.65
	Buildings		92.60	66.73
	Others		187.41	138.76
	Advertising and sales promotion		1,200.20	1,980.31
	Brokerage and commission		449.29	467.16
	Travelling and conveyance		705.86	548.68
	Communication cost		68.51	48.18
	Legal and professional fees		1,400.49	981.40
	Director sitting fees		7.16	6.86
	Freight & forwarding expenses		3,588.17	3,348.54
	Payments to auditor (Refer note (a) below)		15.44	13.14
	Sundry advances written off		-	0.43
	Loss on sale of property, plant and equipment		29.72	-
	Fair valuation loss on derivatives (Refer note (b) below)		-	145.15
	Impairment allowance for trade receivable considered doubtful and contract assets (Refer note 8 and 14)		220.10	314.84
	Impairment of goodwill		46.22	-
	Impairment of investment accounted for using the equity method		-	105.20
	CSR expenditure (Refer note (c))		347.84	259.01
	Miscellaneous expenses		1,785.80	822.96
			18,432.89	16,283.92
	Notes: (a) Payments to auditor: (₹ million) 31 Mar 25 31 Mar 24 As auditor (i) Audit fee 14.19 12.44 (ii) Certification fees 0.80 0.26 (iii) Out of pocket expenses 0.45 0.44 15.44 13.14
		31 Mar 25 31 Mar 24
		As auditor
		(i) Audit fee	14.19	12.44
		(ii) Certification fees	0.80	0.26
		(iii) Out of pocket expenses	0.45	0.44
			15.44	13.14

(b) Loss on fair valuation of financial instruments at fair value through profit or loss relates to foreign exchange fluctuation on forward contracts that are designated as at fair value through profit and loss account and on embedded derivatives, which have been separated. No ineffectiveness has been recognised on foreign exchange.

Page 53 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025 33. Other expenses

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(c) Details of Corporate Social Responsibility Expenses:

(₹ million)

31 Mar 25 31 Mar 24	31 Mar 25 31 Mar 24	31 Mar 25 31 Mar 24
(A) Gross amount required to be spent by the Company during the year as per provisions of section 135 of the Companies Act, 2013 i.e. 2% of average net profits for last three financialyears, calculated asper section 198 of the Companies Act, 2013.	347.84	257.44
Amount transferred to CSR unspent account (B)	167.53	-
Gross amount spent by the Company during the year
(i) Construction / acquisition of any asset	-	-
(ii) On purposes other than (i) above:
Rural Development	9.13	3.13
Education	56.27	37.25
Health Care	104.53	156.62
Environment	7.01	8.57
National Heritage Art & Culture	-	42.00
Administration cost	3.37	11.44
Total CSR spent in actual (C)	180.31	259.01
Shortfall/(Excess) (A-B-C)	-	(1.57)
Details of related party transactions, e.g., contribution to a trust in relation to CSR expenditure as per Ind AS 24, Related Party Disclosures (contributed to Polycab Social Welfare Foundation ("PSWF") where KMP's are interested)	115.02	259.01
Where a provision is made in accordance with paragraph above the same should be presented as per the requirements of Schedule III to the Act. Further, movements in the provision during the year should be shown separately	-	-
The amount of shortfall at the end of the year out of the amount required to be spent by the Company during the year	-	-
The total of previous years’shortfall amounts	-	-
The reason for above shortfalls by way of a note	NA	NA

(d) The unspent amount on ongoing projects as at 31 March 2025 aggregating to ₹ 167.53 million is deposited in separate CSR unspent accounts before the due date.

34. Earnings Per Share

Accounting Policy

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

Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

Employee Stock Option Plan 2018

Pursuant to the resolutions passed by the Company's Board on 30 August 2018 and our Shareholders on 30 August 2018, the Company approved the Employee Stock Option Plan 2018 for issue of options to eligible employees which may result in issue of Equity Shares of not more than 35,30,000 Equity Shares. The company reserves the right to increase, subject to the approval of the shareholders, or reduce such numbers of shares as it deems fit.

The exercise of the vested option shall be determined in accordance with the notified scheme under the plan.

Employee Stock Option Performance Scheme 2018 and Employee Stock Option Privilege Scheme 2018

The Company also approved Employee Stock Option Performance Scheme 2018 and Employee Stock Option Privilege Scheme 2018 under which the maximum number of options granted to any grantee under "Performance Scheme" together with options granted in any other scheme shall not exceed 1 percent of the total share capital at the time of grant.

(a) Basic Earnings Per Share

31 Mar 25 31 Mar 24	31 Mar 25 31 Mar 24	31 Mar 25 31 Mar 24
Profit for the year ₹ in million A	20,019.60	17,696.67
Weighted average number of equity shares for basic earning per share* Number B	15,03,64,869	15,00,14,272
Earnings per shares - Basic (one equity share of ₹ 10 each) ₹per share (A/B)	133.14	117.97
Diluted Earnings Per Share
31 Mar 25 31 Mar 24
Profit for the year ₹ in million A	20,019.60	17,696.67
Weighted average number of equity shares for basic earning per share* Number B	15,03,64,869	15,00,14,272
Effect of dilution
Share options Number C	6,09,268	5,52,203
Weighted average number of equity shares adjusted for effect of dilution Number D=(B+C)	15,09,74,137	15,05,66,475
Earnings per shares - Diluted (one equity share of ₹ 10 each) ₹per share (A/D)	132.60	117.53

(b) Diluted Earnings Per Share

• Refer note 16(a) for movement of shares.

Note: There have been no other transactions involving equity shares or potential equity shares between the reporting date and the date of authorisation of these financial statements.

Page 54 of 71

Polycab India Limited

Notes to Standalone Financial Statements as at 31 March 2025

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35. Contingent liabilities and commitments

Accounting Policy

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

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

(A) Contingent liabilities (to the extent not provided for)

Contingent liabilities (to the extent not provided for)	Contingent liabilities (to the extent not provided for)	Contingent liabilities (to the extent not provided for)
(₹ million)
	31 Mar 25	31 Mar 24
(i) Outstanding corporate guarantees given on behalf of subsidiaries and Joint venture's (Refer note 37 (F))	-	1,299.70
(ii) Financial guarantee given in lieu of shortfall undertaking on behalf of subsidiaries (Refer note	400.00
(iii) Taxation matters
Disputed liability in respect of sales tax /VAT demand & pending sales tax/VAT forms	0.66	0.66
Disputed liability in respect of Service tax duty demand	18.17	18.17
Disputed liability in respect of excise duty demand	8.60	8.60
Disputed liability in respect of custom duty demand	17.08	17.08
Disputed liability in respect of income tax demand	3.71	3.71
(iii) Customs duty on capital goods imported under Export Promotion Capital Goods Scheme, againstwhichexport obligation is to befulfilled	252.59	107.81
(iv) Customs duty on raw materials imported under Advance License, against which export obligation is to befulfilled	322.60	372.65

Notes:

(a) In respect of the items above, future cash outflows in respect of contingent liabilities are determinable only on receipt of judgements/decisions pending at various forums/authority. The Company doesn't expect the outcome of matters stated above to have a material adverse effect on the Company's financial conditions, result of operations or cash flows.

(b) There is uncertainty and ambiguity in interpreting and giving effect to the guidelines of Honourable Supreme Court vide its ruling in February 2019, in relation to the scope of compensation on which the organisation and its employees are to contribute towards Provident Fund. The Company will evaluate its position and act, as clarity emerges.

(B) Commitments

Commitments	Commitments	Commitments
(₹ million)
	31 Mar 25	31 Mar 24
Capital commitments
(Estimated value of contracts in capital account remaining to be executed and not provided for (net of capital advances))
Towards property, plant and equipment	15,021.95	10,319.79
Note:

For lease commitments, refer note 5.

36.[Pursuant][to][the][search][action][by the][Income-tax authorities in][December 2023,][assessment /][re-assessment orders][for AY 2014-15 to][AY 2023-] 24 were passed in the FY 2024-25. Against the said orders, the Company filed appeals and application for rectifications with the appropriate authorities. After considering rectification orders, received post the balance sheet date, the aggregate tax demand is ₹ 544.71 million and interest thereon is ₹ 174.27 million. The Company, in consultation with its tax experts, believe that these orders are not tenable in law and its favorable position will likely to be upheld by the appropriate authorities. Accordingly, no provision has been made in the financial statements. The assessment proceedings for AY 24-25 are currently under process.

Page 55 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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37. Related party disclosure

(A) Enterprises where control exists

Country of Piil tiiti	Ownership interest (%)	Ownership interest (%)
incorporation rncpa acves	31 Mar 25	31 Mar 24
(i) Subsidiaries
India Manufacturing and trading of Wooden Pallets, Outer Laggings and Cable Drums Tirupati Reels Private Limited (TRPL)	55%	55%
India Manufacture and trading of cable accessories & equipment’s Dowells Cable Accessories Private Limited (DCAPL)	60%	60%
India Engaged in the business of electrical goods, instruments, appliances and apparatus Polycab Electricals & Electronics Private Limited (PEEPL)	100%	100%
USA Trading business of electrical cables and wires, optical fibre cables and consumer electrical goods Polycab USA LLC (PUL)	100%	100%
Australia Trading business of electrical cables and wires, optical fibre cables and consumer electrical goods Polycab Australia Pty Ltd (PAPL)	100%	100%
India Manpower services Polycab Support Force Private Limited (PSFPL)	100%	100%
India Uniglobus Electricals and Electronics Private Limited (UEEPL) Trading and manufacturing of fast moving electricals and electronics goods	100%	100%
India Steel Matrix Private Limited (SMPL)(*) Manufacturing of steel drums and bobbins for cables and wires	100%	100%
(ii) Joint Ventures
Techno Electromech Private Limited (TEPL) India Manufacturing of light emitting diodes, lighting and luminaires, and LED drivers	50%	50%

() additional 25% acquired on 29 June 2023 (B) Enterprises owned or significantly influenced by Key Management Personnel AK Enterprises (A K) Polycab Social Welfare Foundation (PSWF) Transigo Fleet LLP Bootbhavani Fabricators (upto 29 June 23) S.B. Enterprise (upto 29 June 23) T.P. Ostwal & Associates LLP, Chartered Accountants (C) Key Management Personnel (i) Executive Directors* Mr. Inder T. Jaisinghani Chairman and Managing Director Mr. Rakesh Talati Whole-time Director (upto 21 January 2025) Mr. Bharat A. Jaisinghani Whole-time Director Mr. Nikhil R. Jaisinghani Whole-time Director Mr. Vijay Pandey Executive Director (w.e.f. 22 January 2025) Mr. Gandharv Tongia Executive Director and Chief Financial Officer

(ii) Non-Executive Directors Mr. R.S. Sharma Mr. T.P. Ostwal Mr. Pradeep Poddarp Poddar Poddar Ms. Sutapa Banerjeepa Banerjeea Banerjeejeeee Ms. Manju Agarwalju Agarwalu Agarwalgarwalarwal Mr. Bhaskar Sharma Mr. Sumit Malhotra (iii)iii)) Key Management Personnel Ms. Manita Gonsalves

Mr. R.S. Sharma Independent Director Mr. T.P. Ostwal Independent Director Mr. Pradeep Poddarp Poddar Poddar Independent Director (upto 19 September 2023) Ms. Sutapa Banerjeepa Banerjeea Banerjeejeeee Independent Director Ms. Manju Agarwalju Agarwalu Agarwalgarwalarwal Independent Director Mr. Bhaskar Sharma Independent Director (w.e.f. 12 May 2023) Mr. Sumit Malhotra Independent Director (w.e.f. 22 January 2025) (iii)iii)) Key Management Personnel Ms. Manita Gonsalves Company Secretary and Vice- President Legal (D) Relatives of Key Management Personnel Mr. Kunal I. Jaisinghani Son of Mr. Inder T. Jaisinghani Ms. Kiara Duhlani Sister of Mr. Bharat A. Jaisinghani Ms. Deepika Sehgal Sister of Mr. Nikhil R. Jaisinghani Ms. Jayshriben Talati Wife of Mr. Rakesh Talati

Page 56 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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37. Related party disclosure (E) Transactions with group companies :

Related party disclosure Transactions with group companies :	Related party disclosure Transactions with group companies :
			(₹ million)
		Year ended 31 Mar 25	Year ended 31 Mar 24
(i) Sale of goods (including GST)
Dowells CableAccessoriesPrivateLimited Subsidiary		8.28	6.63
Polycab USA LLC Subsidiary		(365.55)	3,928.46
TechnoElectromech PrivateLimited Joint Venture		99.01	32.47
Uniglobus Electricals and Electronics Private Limited Subsidiary		106.97	83.71
Tirupati Reels Private Limited Subsidiary		-	3.86
PolycabAustraliaPTY Ltd Subsidiary		1,168.20	1,834.97
(ii) Sale of PPE (including GST)
Dowells Cable Accessories Private Limited Subsidiary		11.71	-
(iii) Purchase ofgoods(including GST)
Tirupati Reels Private Limited Subsidiary		1,856.76	1,526.14
Dowells Cable Accessories Private Limited Subsidiary		6.61	17.32
Uniglobus Electricals and Electronics Private Limited Subsidiary		311.26	183.83
Techno Electromech Private Limited Joint Venture		2,045.86	1,394.68
(iv) Sub-contracting expense(including GST)
Techno Electromech Private Limited Joint Venture		-	4.85
Polycab SupportForcePrivateLimited Subsidiary		296.82	92.09
Uniglobu	s Electricals and Electronics Private Limited Subsidiary	25.26	5.44
(v) Job work Income(including GST)
Dowells Cable Accessories Private Limited Subsidiary		1.29	0.99
Techno Electromech Private Limited Joint Venture		3.99	12.12
(vi) Reimbursement of expenses(including GST)
Uniglobus Electricals and Electronics Private Limited Subsidiary		1.73	5.90
(vii) Other charges recovered(including GST)
Uniglobus Electricals and Electronics Private Limited Subsidiary		6.43	3.27
Polycab Support Force Private Limited Subsidiary		2.24	4.47
Dowells Cable Accessories Private Limited Subsidiary		9.19	9.56
(viii) Commission received(including GST)
Tirupati Reels Private Limited Subsidiary		2.65	7.10
Uniglobus Electricals and Electronics Private Limited Subsidiary		3.34	3.54
(ix) Rent received(including GST)
Dowells Cable Accessories Private Limited Subsidiary		6.37	6.53
Polycab Support Force Private Limited Subsidiary		0.04	0.04
Uniglobus Electricals and Electronics Private Limited Subsidiary		2.53	2.53
(x) Interest received
Uniglobus Electricals and Electronics Private Limited Subsidiary		112.80	49.35
Techno Electromech Private Limited Joint Venture		10.75	10.53
Polycab SupportForcePrivateLimited Subsidiary		0.52	0.51
(xi) Testing chargespaid(including GST)
Techno Electromech Private Limited Joint Venture		-	0.17
(xii) Recovery of manpower charges (including GST)
Dowells Cable Accessories Private Limited Subsidiary		17.44	15.99
Tirupati Reels Private Limited Subsidiary		3.45	4.15
Uniglobus Electricals and Electronics Private Limited Subsidiary		6.62	5.07
Polycab SupportForcePrivateLimited Subsidiary		2.19	3.15
TechnoElectromech PrivateLimited JointVenture		5.37	2.60
(xiii) Loansgiven
UniglobusElectricals andElectronicsPrivateLimited Subsidiary		360.00	950.00
(xiv) Investment made
Polycab USA LLC Subsidiary		0.42	-
Uniglobus Electricals and Electronics Private Limited Subsidiary		310.00	-

Page 57 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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37. Related party disclosure

(F)	Outstanding as at the year end : (₹ million)	Outstanding as at the year end : (₹ million)	Outstanding as at the year end : (₹ million)
		Year ended 31 Mar 25	Year ended 31 Mar 24
	(i) Loansgiven
	Uniglobus Electricals and Electronics Private Limited Subsidiary	1,310.00	950.00
	Techno Electromech Private Limited Joint Venture	100.00	100.00
	Polycab SupportForcePrivateLimited Subsidiary	5.00	5.00
	(ii) Trade Receivables
	Techno Electromech Private Limited Joint Venture	-	71.01
	PolycabAustraliaPTY Ltd Subsidiary	139.69	199.58
	Uniglobus Electricals and Electronics Private Limited Subsidiary	38.87	-
	Polycab USA LLC Subsidiary	2,999.86	3,805.20
	(iii) Others Receivables
	Dowells Cable Accessories Private Limited Subsidiary	1.45	0.95
	(iv) Advancegiven for material and services
	Tirupati Reels Private Limited Subsidiary	-	34.52
	(vi) Interest accrued on loan given
	Techno Electromech Private Limited Joint Venture	2.39	2.62
	Uniglobus Electricals and Electronics Private Limited Subsidiary	-	0.08
	Polycab SupportForcePrivateLimited Subsidiary	0.12	0.11
	(vii) Trade Payables
	Tirupati Reels Private Limited Subsidiary	97.73	-
	Polycab SupportForcePrivateLimited Subsidiary	38.81	9.74
	Uniglobus Electricals and Electronics Private Limited Subsidiary	-	8.51
	Techno Electromech Private Limited Joint Venture	44.06	-

Note:

The bank released the Company's corporate guarantees of ₹ 899.70 million issued for credit facilities provided to Tirupati Reels Private Limited on 29 June 2024. Similarly, the corporate guarantees of ₹ 400 million issued for credit facilities to Uniglobus Electricals and Electronics Private Limited were released by the banks on 26 August 2024, and the Company issued a shortfall undertaking of ₹ 400 million on the same date. The Company charges a regular commission for these financial guarantees and shortfall undertaking.

(G) Transactions with KMP:

(i)	Remuneration paid for the year ended and outstanding as on:(a) (₹ million)	Remuneration paid for the year ended and outstanding as on:(a) (₹ million)	Remuneration paid for the year ended and outstanding as on:(a) (₹ million)	Remuneration paid for the year ended and outstanding as on:(a) (₹ million)
	31 Mar 24 31 Mar 25
	For the year ended Outstanding for the year end For the year ended			Outstanding for the year end
	CMDand Executive directors
	Short term employee benefits	471.11 293.28	417.54 260.29
	Share based payment	51.65 -	58.99 -
	Non-Executive directors
	Director sitting fees	7.16 -	6.78 -
	Commission	20.08 20.08	15.29 15.29
	Key management personnel (excluding CMDand WTD)
	Short term employee benefits	6.04 0.44	5.19 0.38
	Share based payment	7.66 -	- -

(a) As the liabilities for gratuity and leave encashment are provided on actuarial basis for the Company as a whole, the amounts pertaining to the directors and KMP are not included above.

Page 58 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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37. Related party disclosure

(ii)	Transactions with enterprises owned or significantly influenced by key managerial personnel	Transactions with enterprises owned or significantly influenced by key managerial personnel	(₹ million)	(₹ million)
	Nature of 31 Mar 25		31 Mar 24
	For the year ended Outstanding for the year end transaction		For the year ended	Outstanding for the year end
	Polycab Social Welfare Foundation Donation	115.02 -	258.56 -
	Transigo Fleet LLP Professional fees (includingGST)	19.12 5.83	19.12 2.92
	AK Enterprises* Rent paid (including GST)	29.17 -	29.17 2.23
	Professional fees (includingGST) T.P. Ostwal & Associates LLP	0.41 -	0.73 0.11

*Security deposit given to AK Enterprises amounting to ₹ 6.17 million (31 March 2024 : ₹ 6.17 million).

(H) Transactions with relatives of KMP:

Transactions with relatives of KMP:	Transactions with relatives of KMP:	(₹ million)	(₹ million)
31 Mar 25		31 Mar 24
For the year ended Outstanding for the year end		For the year ended	Outstanding for the year end
Remuneration to other related parties
Salaries, wages, bonus, commission and other benefits	4.61 0.02	4.40 -
Contribution to PF, Family Pension and ESI	0.32 -	0.29 -
Rent paid
Mrs. Jayshriben Talati	0.48 -	0.59 -

(I) Terms and conditions of transactions with related parties:

• i. The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the period-end are unsecured and settlement occurs in cash or credit as per the terms of the arrangement.

• ii. Guarantees are issued by the Company in accordance with Section 186 of the Companies Act, 2013 read with rules issued thereunder.

• iii. For the year ended 31 March 2025, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2024: ₹ Nil). This assessment is undertaken each financial year through examining the financial position of the related party.

38. Segment reporting

Accounting Policy

Identification of segments

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses,

The Operating Segment is the level at which discrete financial information is available. Operating segments are identified considering:

• a the nature of products and services

• b the differing risks and returns

• c the internal organisation and management structure, and d the internal financial reporting systems.

The Board of Directors monitors the operating results of all product segments separately for the purpose of making decisions about resource allocation and performance assessment based on an analysis of various performance indicators by business segments and geographic segments.

Segment revenue and expenses:

• 1 It has been identified to a segment on the basis of relationship to operating activities of the segment.

• 2 The Company generally accounts for intersegment sales and transfers at cost plus appropriate margins. 3 Intersegment revenue and profit is eliminated at group level consolidation.

• 4 Finance income earned and finance expense incurred are not allocated to individual segment and the same has been reflected at the Company level for segment reporting as the underlying instruments are managed at Company level.

Segment assets and liabilities:

Segment assets and segment liabilities represent assets and liabilities of respective segments, however the assets and liabilities not identifiable or allocable on reasonable basis being related to enterprise as a whole have been grouped as unallocable.

The accounting policies of the reportable segments are same as that of Company’s accounting policies described.

No operating segments have been aggregated to form the above reportable operating segments. Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

The Company is organised into business units based on its products and services and has three reportable segments as follows:

Wires and Cables : Manufacture and sale of wires and cables.

Fast moving electrical goods (FMEG): Fans, LED lighting and luminaires, switches, switchgears, solar products, water heaters, conduits, pumps and domestic appliances.

EPC: Design, engineering, supply of materials, survey, execution and commissioning of projects on a turnkey basis.

For the year ended 31 March 2025, the EPC business, which was earlier reported as part of the “Others” segment, is now presented as the “EPC” segment in accordance with Ind AS 108, based on meeting the quantitative threshold for separate disclosure.

Page 59 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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38. Segment Reporting

(A) The following summary describes the operations in each of the Company's reportable segments:

(A) (B) (C) **(D) **	The following summary describes the operations in each of the Company's reportable segments: (₹ million)	The following summary describes the operations in each of the Company's reportable segments: (₹ million)	The following summary describes the operations in each of the Company's reportable segments: (₹ million)	The following summary describes the operations in each of the Company's reportable segments: (₹ million)	The following summary describes the operations in each of the Company's reportable segments: (₹ million)
		Wires & Cables FMEG EPC Eliminations Total 31 Mar 25	Wires & Cables FMEG EPC Eliminations Total 31 Mar 24
	Externalsales	1,85,459.27 15,092.34 19,192.39 - 2,19,744.00	1,62,182.97 11,432.80 7,887.70 - 1,81,503.47
	Intersegmentrevenue	3,415.72 - - (3,415.72) -	2,053.00 - - (2,053.00) -
	Total Income	1,88,874.99 15,092.34 19,192.39 (3,415.72) 2,19,744.00	1,64,235.97 11,432.80 7,887.70 (2,053.00) 1,81,503.47
	Segment Results
	External	24,926.45 (343.51) 1,806.40 - 26,389.34	23,267.09 (911.10) 632.24 - 22,988.23
	Intersegmentresults	460.14 - - (460.14) -	296.20 - - (296.20) -
	Segment/Operating results	25,386.59 (343.51) 1,806.40 (460.14) 26,389.34	23,563.29 (911.10) 632.24 (296.20) 22,988.23
	Un-allocated items:
	Financeincome	1,584.61	1,203.30
	Finance costs	1,588.49	1,004.42
	Profit before tax	26,385.46	23,187.11
	Taxexpenses
	Current tax	5,867.18	5,358.74
	Deferred taxcharge/ (credit)	498.68	131.70
	Profit for the year	20,019.60	17,696.67
	Depreciation & amortisation expenses	2,525.51 328.20 13.68 - 2,867.39	2,047.81 314.67 8.92 - 2,371.40
	Non-cash expenses/ (Income) other than depreciation	(122.10) 227.04 171.96 - 276.90	804.58 187.24 (35.03) - 956.79
	Total cost incurred during the year to acquire segment assets (net of disposal)	8,607.52 561.80 - - 9,169.32	7,561.68 621.68 - - 8,183.36
	Revenue by Geography The amount of its revenue from external customers analysed by the country, in which customers are located, are given below: (₹ million)
				Year ended 31 Mar 25	Year ended 31 Mar 24
	Within India			2,07,372.40	1,64,018.47
	OutsideIndia			12,371.60	17,485.00
				2,19,744.00	1,81,503.47
	Segment assets (₹ million)
		Wires & Cables FMEG EPC Eliminations Total 31 Mar 25	Wires & Cables FMEG EPC Eliminations Total 31 Mar 24
	Segment assets	78,042.72 7,025.02 17,235.42 - 1,02,303.16	74,664.35 6,464.61 8,386.31 - 89,515.27
	Unallocated assets:
	Investments (Non-current and Current)	17,573.84	18,243.38
	IncomeTaxassets (net)	373.81	170.77
	Cash and cash equivalents and bank balance other than cash and cash equivalents	7,226.12	3,082.21
	Loans	1,426.00	1,061.26
	Other unallocable assets	5,027.04	5,506.96
	Total assets	1,33,929.97	1,17,579.85
	Segment liabilities (₹ million)
		Wires & Cables FMEG EPC Eliminations Total 31 Mar 25	Wires & Cables FMEG EPC Eliminations Total 31 Mar 24
	Segment liabilities	22,229.11 3,434.87 5,180.31 - 30,844.29	24,879.61 2,366.99 4,378.03 - 31,624.63
	Unallocated liabilities:
	Current tax liabilities (net)	149.82	111.29
	Deferred tax liabilities (net)	988.02	517.97
	Other unallocable liabilities	4,320.38	3,881.84
	Total liabilities	36,302.51	36,135.73

(E) Non-current assets by Geography

The total of non-current assets excluding financial assets and deferred tax assets analysed by the country in which assets are located are given below:

(₹ million)	(₹ million)	(₹ million)
	31 Mar 25	31 Mar 24
Within India	39,082.70	30,829.89
OutsideIndia	-	-
	39,082.70	30,829.89

Page 60 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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39. Financial Instruments and Fair Value Measurement

A) Financial Instruments

Accounting policy

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

Financial assets

• (i) Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through Statement of Profit & Loss, transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at transaction price. Financial assets are classified at the initial recognition as financial assets measured at fair value or as financial assets measured at amortised cost.

• (ii) Subsequent measurement

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

• (a) Financial assets at amortised cost

• (b) Financial assets at fair value Where assets are measured at fair value, gains and losses are either recognised entirely in the Statement of Profit & Loss (i.e. fair value through Statement of Profit & Loss), or recognised in other comprehensive income (i.e. fair value through other comprehensive income) depending on the classification at initial recognition.

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

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

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

(b) Financial assets at fair value

• (i) Financial assets at fair value through other comprehensive income Financial assets is subsequently measured at fair value through other comprehensive income if it is held with in a business model whose objective is achieved by both collections contractual cash flows and selling financial assets and the contractual terms of the financial assets give rise on specified dated to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

• Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit & Loss.

• (ii) Financial assets at fair value through profit or loss

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

• (iii) Derecognition

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

• (a) The rights to receive cash flows from the asset have expired, or

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

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

The Company discloses analysis of the gain or loss recognised in the statement of profit and loss arising from the derecognition of financial assets measured at amortised cost, showing separately gains and losses arising from derecognition of those financial assets.

(iv) Impairment of financial assets

The Company assesses impairment based on expected credit losses (ECL) model for the following:

• (a) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115.

Page 61 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025 39. Financial Instruments and Fair Value Measurement

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• (b) The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables and contract assets. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

The Company recognises an allowance for ECL for all debt instruments not held at fair value through profit or loss. ECL are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECL are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECL are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. In determining the allowances for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and allowance rates used in the provision matrix. For all other financial assets, expected credit losses are measured at an amount equal to the 12-months expected credit losses or at an amount equal to the 12 months expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

The Company considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used.

If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

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

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

Financial liabilities

• (i) Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, lease liabilities and derivative financial instruments.

• (ii) Subsequent measurement

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

• (a) Financial liabilities at fair value through profit or loss

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

(b) Gains or losses on liabilities held for trading are recognised in the profit or loss

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

• (c) Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate method.

Page 62 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025 39. Financial Instruments and Fair Value Measurement

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(iii) Embedded Derivatives

A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if: the economic characteristics and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and the hybrid contract is not measured at fair value through profit or loss.

• (iv) Derecognition

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

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

B) Fair value measurements

Accounting policy

The Company measures financial instruments, such as, derivatives, mutual funds etc. at fair value at each Balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• (a) In the principal market for the asset or liability, or

• (b) In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

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

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

All assets and liabilities for which fair value is measured or disclosed in the Financial Statements are categorised within the fair value hierarchy, to provide an indication about the reliability of inputs used in determining fair value, the Company has classified its financial statements into three levels prescribed under the Ind AS as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

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

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

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

Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments:

(₹ million)	(₹ million)	(₹ million)	(₹ million)	(₹ million)
Carrying value Fair value
	31 Mar 25	31 Mar 24	31 Mar 25	31 Mar 24
Financial assets
Measured at amortised cost
Trade receivables	30,374.62	24,184.44	30,374.62	24,184.44
Cash and cash equivalents	1,903.29	2,551.44	1,903.29	2,551.44
Bank balance other than cash and cash equivalents	5,093.82	528.07	5,093.82	528.07
Loans	1,426.00	1,061.26	1,426.00	1,061.26
Other financial assets	1,177.74	521.26	1,177.74	521.26
Measured at fair value through profit or loss account (FVTPL)
Investment in mutual funds	17,056.49	18,036.45	17,056.49	18,036.45
Firm Commitment	318.49	-	318.49	-
Derivative assets	126.72	23.62	126.72	23.62
	57,477.17	46,906.54	57,477.17	46,906.54
Financial liabilities
Measured at amortised cost
Acceptances	13,062.37	18,619.66	13,062.37	18,619.66
Tradepayables	13,833.96	9,471.69	13,833.96	9,471.69
Creditors for capital expenditure	1,106.85	838.37	1,106.85	838.37
Lease liabilities	759.41	512.44	781.32	563.50
Other financial liabilities	889.42	1,129.51	889.42	1,129.51
Measured at fair value through profit or loss account (FVTPL)
Derivative liabilities	643.33	577.23	643.33	577.23
	30,295.33	31,148.90	30,317.24	31,199.96

Page 63 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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39. Financial Instruments and Fair Value Measurement

• (a) The management assessed that cash and cash equivalents, other bank balance, trade receivables, acceptances, trade payables, loans to related party, loans to employees, short term security deposit and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

• (b) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

• (c) Fixed deposit of ₹ 330.57 million (31 Mar 2024: ₹ 7.80 million) is restricted for withdrawal, considering it is lien against commercial arrangements.

• (d) There are no borrowings as at 31 March 2025 (31 March 2024: Nil) For secured loans, charge created by way of:

• (i) First ranking pari passu charge by way of hypothecation over the entire current assets including but not limited to Stocks and Receivables.

• (ii) Pari passu first charge by way of hypothecation on the entire movable fixed assets.

• (iii) Charges with respect to above borrowing has been created in favour of security trustee. No separate charge has been created for each of the borrowing.

• (iv) All charges are registered with ROC within statutory period by the Company.

• (v) Funds raised on short term basis have not been utilised for long term purposes and spent for the purpose it were obtained. (vi) Bank returns / stock statements filed by the Company with its bankers are in agreement with books of account.

( e) Credit facilities The Company has fund based and non-fund based revolving credit facilities amounting to ₹ 60,000.00 million (31 March 2024: ₹ ₹ 56,650.00 million), towards operational requirements that can be used for the short term loan, issuance of letters of credit and bank guarantees. The unutilised credit line out of these working capital facilities at the year end is ₹ 13,698.30 million (31 March 2024: ₹ 22,677.10 million).

In addition to above, ₹ 9,640 million project specific working capital limit has been sanctioned by SBI which is to be released on need basis. The unutilised credit line out of these working capital facilities at the year end is ₹ 4,332.40 million.

(f) Measurement of fair values

The following table shows the valuation techniques used in measuring fair values, as well as the significant observable inputs used (if any)

Financial instruments measured at fair value:

Type	Valuation technique
Commodity Futures Embedded Derivatives Foreign exchange forward contracts Mutual Fund Investments	Basis the quotes given by the LME broker/ dealer with appropriate adjustments as required by Ind AS 113 Basis the quotes given by the LME broker/ dealer. with appropriate adjustments as required by Ind AS 113 MTM value as per RBI reference rate. with appropriate adjustments as required by Ind AS 113 Net asset value quoted by mutual funds with appropriate adjustments as required by Ind AS 113

Fair value hierarchy

All assets and liabilities for which fair value is measured or disclosed in the Financial Statements are categorised within the fair value hierarchy, to provide an indication about the reliability of inputs used in determining fair value, the Company has classified its financial statements into three levels prescribed under the Ind AS as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

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

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

The following table provides the fair value measurement hierarchy of the Company's assets and liabilities.

Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at 31 March 2025:

Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at 31 March 2025:	Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at 31 March 2025:
(₹ million)
Quoted prices in active markets Significant observable inputs Significant unobservable inputs (Level 1) (Level 2) (Level 3) Date of valuation Total Fair value measurement using
Assets measured at fair value:
Units of mutual funds	31 Mar 25 17,056.49 17,056.49 - -
Derivative assets
Embedded derivatives	31 Mar 25 44.08 - 44.08 -
Foreign exchange forward contract	31 Mar 25 82.64 - 82.64 -
Liabilities measured at fair value:
Derivative liabilities
Commoditycontracts	31 Mar 25 444.63 - 444.63 -
Foreign exchange forward contract	31 Mar 25 198.70 - 198.70 -

Page 64 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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39. Financial Instruments and Fair Value Measurement

Quantitative disclosures fair value measurement hierarchy for assets and liabilities as at 31 March 2024:

					(₹ million)	(₹ million)
			Fair value measurement using
	Date of valuation	Total	Quoted prices in active markets	Significant observable inputs	Significant unobservable inputs
			(Level 1)	(Level 2)	(Level	3)
Assets measured at fair value:
Units of mutual funds	31 Mar 24	18,036.45	18,036.45	-		-
Derivative assets
Foreign exchange forward contract	31 Mar 24	1.99	-	1.99		-
Embedded derivatives	31 Mar 24	21.63	-	21.63		-
Liabilities measured at fair value:
Derivative liabilities
Commodity contracts	31 Mar 24	568.19	-	568.19		-
Foreign exchange forward contract	31 Mar 24	9.04	-	9.04		-

Notes:

(a) Investment Property Under Construction is measured at cost as at 31 March 2025 of ₹ 790.08 million (31 March 2024:762.98 million). The fair value measurement is required for disclosure purpose in the financial statements as per Ind AS 40 (Refer note 4).

(b) There is no transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period. Timing of transfer between the levels determined based on the following:

(a) the date of the event or change in circumstances that caused the transfer

• (b) the beginning of the reporting period

• (c) the end of the reporting period

40. Financial Risk Management Objectives And Policies

The Company's principal financial liabilities, other than derivatives, comprise acceptances, trade payables, lease liabilities and other liabilities. The main purpose of these financial liabilities is to finance the Company's operations and to provide guarantees to support its operations. The Company's principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds FVTPL investments and enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors of the Company has formed a Risk Management Committee to periodically review the risk management policy of the Company so that the management manages the risk through properly defined mechanism. The Risk Management Committee's focus is to foresee the unpredictability and minimize potential adverse effects on the Company's financial performance.

The Company's overall risk management procedures to minimise the potential adverse effects of financial market on the Company's performance are as follows:

(A) Market Risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, trade receivables, deposits, FVTPL investments and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or 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 debt obligations with floating interest rates. The Company is also exposed to the risk of changes in market interest rates due to its investments in mutual fund units in debt funds.

Acceptances as at 31 March 2025 of ₹ 13,062.27 million (31 March 2024: ₹ 18,619.66 million) are at a fixed rate of interest.

Page 65 of 71

Polycab India Limited

Notes to Standalone Financial Statements for the year ended 31 March 2025

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40. Financial Risk Management Objectives And Policies

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency).

Derivative financial instruments

The Company enters into derivative contracts with an intention to hedge its foreign exchange price risk and interest risk. Derivative contracts which are linked to the underlying transactions are recognised in accordance with the contract terms. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit & Loss. To some extent the Company manages its foreign currency risk by hedging transactions.

Particulars of unhedged foreign currency exposures as at the reporting date:

Particulars of unhedged foreign currency exposures as at the reporting date:	Particulars of unhedged foreign currency exposures as at the reporting date:	Particulars of unhedged foreign currency exposures as at the reporting date:
(₹ million)
Currency Currency Symbol	Foreign currency Indian Rupees 31 Mar 25	Foreign currency Indian Rupees 31 Mar 24
United States Dollar USD	(34.70) (2,965.83)	(94.58) (7,885.57)
Euro Euro	30.55 2,758.94	16.73 1,509.70
Pound GBP	0.49 54.23	0.52 54.73
Swiss Franc CHF	(0.78) (75.05)	0.38 34.69
Chinese Yuan CNY	1.26 14.82	(0.79) (9.12)
Japanese Yen JPY	(15.78) (8.96)	- -
Australian Dollar AUD	3.27 174.58	3.99 216.51
Figures shown in brackets represent payables.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD, Euro, GBP, CHF, CNY, JPY and AUD exchange rates, with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency derivatives and embedded derivatives. Sensitivity due to unhedged Foreign Exchange Exposures is as follows:

Impact on profit before tax and equity

Impact on profit before tax and equity	Impact on profit before tax and equity	Impact on profit before tax and equity
(₹ million)
Currency +2% -2% 31 Mar 25 Currency Symbol		+2% -2% 31 Mar 24
United States Dollar USD	(59.32) 59.32	(157.71) 157.71
Euro Euro	55.18 (55.18)	30.19 (30.19)
Pound GBP	1.08 (1.08)	1.09 (1.09)
Swiss Franc CHF	(1.50) 1.50	0.69 (0.69)
Chinese Yuan CNY	0.30 (0.30)	(0.18) 0.18
Japanese Yen JPY	(0.18) 0.18	- -
Australian Dollar AUD	3.49 (3.49)	4.33 (4.33)

Figures shown in brackets represent payables.

Page 66 of 71

Notes to Standalone Financial Statements as at 31 March 2025

Polycab India Limited

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40. Financial Risk Management Objectives And Policies

(iii) Commodity price risk

The Company's exposure to price risk of copper and aluminium arises from :

• Trade payables of the Company where the prices are linked to LME prices. Payment is therefore sensitive to changes in copper and aluminium prices quoted on LME. The provisional pricing feature (Embedded Derivatives) is classified in the balance sheet as fair value through profit or loss. The option to fix prices at future LME prices works as a natural hedge against the movement in value of inventory of copper and aluminium held by the Company. The Company also takes Sell LME positions to hedge the price risk on Inventory due to ongoing movement in rates quoted on LME. The Company applies fair value hedge to protect its copper and aluminium Inventory from the ongoing movement in rates.

• Purchases of copper and aluminium results in exposure to price risk due to ongoing movement in rates quoted on LME affecting the profitability and financial position of the Company. The risk management strategy is to use the Buy future contracts linked to LME to hedge the variation in cash flows of highly probable future purchases. Refer note 41 for outstanding buy future contracts link to LME as of 31 March 2025 and there were no outstanding buy future contracts link to LME as of 31 March 2024.

Sensitivity analysis for unhedged exposure for the year ended 31 March are as follows:

Exposure of Company in Inventory

	(₹ million)	(₹ million)	(₹ million)
Metal	Hedge instruments	+2% -2% +2% -2% Exposure in ₹ million Impact in Profit before tax Exposure in Metric Tonne 31 Mar 24 Exposure in Metric Tonne 31 Mar 25 Exposure in ₹ million Impact in Profit before tax
Aluminium Copper	Embedded derivative Embedded derivative	- - - - - - - -	2,750 540.91 (10.82) 10.82 10,300 7,598.21 (151.96) 151.96

(B) Credit risk Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade receivables and contract assets

The Company has adopted a policy of only dealing with counterparties that have sufficient credit rating. The Company’s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties. Credit risk has always been managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company has applied Expected Credit Loss (ECL) model for measurement and recognition of impairment losses on trade receivables. ECL has been computed as a percentage of revenue on the basis of Company's historical data of delay in collection of amounts due from customers and default by the customers along with management's estimates.

The Company has sold without recourse trade receivables under channel finance arrangement for providing credit to its dealers. Evaluation is made as per the terms of the contract i.e. if the Company does not retain any risk and rewards or control over the financial assets, then the entity derecognises such assets upon transfer of financial assets under such arrangement with the banks. Derecognition does not result in significant gain / loss to the Company in the Statement of profit and loss.

In certain cases, the Company has sold with recourse trade receivables to banks for cash proceeds. These trade receivables have not been derecognised from the statement of financial position, because the Company retains substantially all of the risks and rewards – primarily credit risk. The amount received on transfer has been recognised as a financial liability. The arrangement with the bank is such that the customers remit cash directly to the bank and the bank releases the limit of facility used by the Company. The receivables are considered to be held within a held-to-collect business model consistent with the Company’s continuing recognition of the receivables.

The carrying amount of trade receivables at the reporting date that have been transferred but have not been derecognised and the associated liabilities is ₹ 375.58 million (31 March 2024: ₹ 508.05 million).

Trade receivables (net of expected credit loss allowance) of ₹ 30,374.62 million as at 31 March 2025 (31 March 2024: ₹ 24,184.44 million) forms a significant part of the financial assets carried at amortised cost which is valued considering provision for allowance using expected credit loss method. In addition to the historical pattern of credit loss, we have considered the likelihood of delayed payments, increased credit risk and consequential default considering emerging situations while arriving at the carrying value of these assets. This assessment is not based on any mathematical model but an assessment considering the nature of verticals, impact immediately seen in the demand outlook of these verticals and the financial strength of the customers. The Company has specifically evaluated the potential impact with respect to customers for all of its segments.

The Company closely monitors its customers who are going through financial stress and assesses actions such as change in payment terms, discounting of receivables with institutions on no ‐ recourse basis, recognition of revenue on collection basis etc., depending on severity of each case. The collections pattern from the customers in the current period does not indicate stress beyond what has been factored while computing the allowance for expected credit losses.

The expected credit loss allowance for trade receivables of ₹ 1,264.81 million as at 31 March 2025 (31 March 2024 ₹1,350.27 million) is considered adequate.

The same assessment is done in respect of contract assets of ₹ 1,127.52 million as at 31 March 2025 (31 March 2024 ₹ 380.82 million) while arriving at the level of provision that is required. The expected credit loss allowance for contract assets of ₹ 206.17 million as at 31 March 2025 (31 March 2024 ₹ 15.23 million) is considered adequate.

Other financial assets

The Company has adopted a policy of only dealing with counterparties that have sufficient credit rating. The Company’s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties.

Credit risk arising from investment in mutual funds, derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the international credit rating agencies.

Page 67 of 71

Notes to Standalone Financial Statements as at 31 March 2025

Polycab India Limited

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40. Financial Risk Management Objectives And Policies

(C) Liquidity risk

The Company's principle sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the working capital is sufficient to meet its current requirements.

Further, the Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalents position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on a regular basis. Surplus funds not immediately required are invested in certain financial assets (including mutual funds) which provide flexibility to liquidate at short notice and are included in current investments and cash equivalents. Besides, it generally has certain undrawn credit facilities which can be accessed as and when required, which are reviewed periodically.

The Company's channel financing program ensures timely availability of finance for channel partners with extended and convenient re-payment terms, thereby freeing up cash flow for business growth while strengthening company’s distribution network. Further, invoice discounting get early payments against outstanding invoices. Sales Invoice discounting is intended to save the Company’s business from the cash flow pressure.

The Company has developed appropriate internal control systems and contingency plans for managing liquidity risk. This incorporates an assessment of expected cash flows and availability of alternative sources for additional funding, if required.

Corporate guarantees given on behalf of group companies might affect the liquidity of the Company if they are payable. However, the Company has adequate liquidity to cover the risk (Refer note 35(A)).

Maturity analysis

The table below summarises the maturity profile of the Company's financial assets and financial liabilities based on contractual undiscounted payments.

	(₹ million)	(₹ million)
	< 1 year > equal to 1 year Total < 1 year > equal to 1 year Total 31 Mar 24 31 Mar 25
Financial assets:
Investments	17,056.49 - 17,056.49	18,036.45 - 18,036.45
Trade receivables	27,380.24 2,994.38 30,374.62	22,993.74 1,190.70 24,184.44
Cash & cash equivalents	1,903.29 - 1,903.29	2,551.44 - 2,551.44
Bank balance other than cash & cash equivalents	5,093.82 - 5,093.82	528.07 - 528.07
Loans	1,426.00 - 1,426.00	1,061.26 - 1,061.26
Other financial assets	1,125.76 532.36 1,658.12	314.19 248.99 563.18
	53,985.60 3,526.74 57,512.34	45,485.15 1,439.69 46,924.84
Financial liabilities:
Lease liabilities	216.31 908.90 1,125.21	172.35 524.17 696.52
Other financial liabilities	2,534.57 105.03 2,639.60	2,397.86 147.24 2,545.10
Acceptances	13,062.37 - 13,062.37	18,619.66 - 18,619.66
Tradepayables	13,833.96 - 13,833.96	9,471.69 - 9,471.69
	29,647.21 1,013.93 30,661.14	30,661.56 671.41 31,332.97

41. Hedging activity and derivatives

The company uses the following hedging types:

(i) Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or an unrecognised firm commitment.

(ii) Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment.

• (A) Fair value hedge of copper and aluminium price risk in inventory

• (i) The Company enters into contracts to purchase copper and aluminium wherein the Company has the option to fix the purchase price based on LME price of copper and aluminium during a stipulated time period. Accordingly, these contracts are considered to have an embedded derivative that is required to be separated. Such feature is kept to hedge against exposure in the value of unpriced inventory of copper and aluminium due to volatility in copper and aluminium prices. The Company designates the embedded derivative in the payable for such purchases as the hedging instrument in fair value hedging of inventory. The Company designates only the spot-to-spot movement of the copper and aluminium inventory as the hedged risk. The carrying value of inventory is accordingly adjusted for the effective portion of change in fair value of hedging instrument. Hedge accounting is discontinued when the hedging instrument is settled, or when it is no longer qualifies for hedge accounting or when the hedged item is sold. The Company also hedges its unrecognised firm commitment for risk of changes in commodity prices.In such hedges, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in the statement of profit and loss. Hedge accounting is discontinued when the Company revokes the hedge relationship, the hedging instrument or hedged item expires or is sold, terminated, or exercised or no longer meets the criteria for hedge accounting.

• (ii) To use the Sell future contracts linked with LME to hedge the fair value risk associated with inventory of copper and aluminium. Once the purchases are concluded and its final price is determined, the Company starts getting exposed to price risk of these inventory till the time it is not been sold. The Company’s policy is to designate the copper and aluminium inventory which are already priced and which is not been sold at that point in time in a hedging relationship against Sell LME future positions based on the risk management strategy of the Company. The hedged risk is movement in spot rates.

  • To test the hedge effectiveness between embedded derivatives/derivatives and LME prices of Copper and Aluminium, the Company uses the said prices during a stipulated time period and compares the fair value of embedded derivatives/derivatives against the changes in fair value of LME price of copper and aluminium attributable to the hedged risk.

The Company establishes a hedge ratio of 1:1 for the hedging relationships as the underlying embedded derivative/derivative is identical to the LME price of Copper and Aluminium.

Disclosure of effects of fair value hedge accounting on financial position:

Hedged item:

Changes in fair value of unpriced inventory/unrecognised firm commitment attributable to change in copper and aluminium prices.

Hedging instrument:

Changes in fair value of the embedded derivative of copper and aluminium trade payables and sell future contracts, as described above.

Page 68 of 71

Notes to Standalone Financial Statements as at 31 March 2025

Polycab India Limited

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41. Hedging activity and derivatives

(B) Cash flow hedge associated with highly probable forecasted purchases of copper and aluminium:

The Company enters into buy future commodity price contracts as a part of risk management strategy for hedging highly probable forecast transaction and account for them as cash flow hedges and states them at fair value. Subsequent changes in fair value are recognised in equity through OCI until the hedged transaction occurs, at which time, the respective gain or losses are reclassified to profit or loss. These hedges have been effective for the year ended 31 March 2025.

As at 31 March 2025

As at 31 March 2025						(₹ million)	(₹ million)	(₹ million)	(₹ million)
	Asset- increase/ (decrease) Liabilities- increase/ (decrease) Equity- increase/ (decrease) Commodity price risk Carrying amount Maturity date					Hedge Ratio Effective portion of Hedge -gain/ ( loss) Balance sheet classification Firm commitment(P &L) portion of Hedge -gain/ (loss)
Fair Value Hedge
Hedged item	Inventory of Copper and aluminium	99.54	-	-	Range within 1 to 6 months	1:1	Inventory	(439.56)	39.01
	Highly probable future purchases	-	-	(21.52)		1:1	Cash flow hedge Reserve
	Firm Commitment	318.49	-	-		1:1	Current financial Assest
Hedging instrument	Embedded derivative in trade payables of Copper and aluminium	44.08	-	-		1:1	Current financial Assest
	Buy future contracts	-	21.52	-		1:1	Current financial liabilities
	Sell future contracts	-	423.10	-		1:1	Current financial liabilities

The following table presents details of amounts held in effective portion of Cash flow/Fair value hedge and the period during which these are going to be released and affecting Statement of profit and Loss (₹ million)

Less than 3 Months 3 Months to 6 Months 6 Months to 12 Months Total As at 31 Mar 2025 Cash Flow/Fair value hedges release to P&L	Less than 3 Months 3 Months to 6 Months 6 Months to 12 Months Total As at 31 Mar 2025 Cash Flow/Fair value hedges release to P&L	Less than 3 Months 3 Months to 6 Months 6 Months to 12 Months Total As at 31 Mar 2025 Cash Flow/Fair value hedges release to P&L	Less than 3 Months 3 Months to 6 Months 6 Months to 12 Months Total As at 31 Mar 2025 Cash Flow/Fair value hedges release to P&L	Less than 3 Months 3 Months to 6 Months 6 Months to 12 Months Total As at 31 Mar 2025 Cash Flow/Fair value hedges release to P&L	Less than 3 Months 3 Months to 6 Months 6 Months to 12 Months Total As at 31 Mar 2025 Cash Flow/Fair value hedges release to P&L	Less than 3 Months 3 Months to 6 Months 6 Months to 12 Months Total As at 31 Mar 2025 Cash Flow/Fair value hedges release to P&L	Less than 3 Months 3 Months to 6 Months 6 Months to 12 Months Total As at 31 Mar 2025 Cash Flow/Fair value hedges release to P&L	Less than 3 Months 3 Months to 6 Months 6 Months to 12 Months Total As at 31 Mar 2025 Cash Flow/Fair value hedges release to P&L	Less than 3 Months 3 Months to 6 Months 6 Months to 12 Months Total As at 31 Mar 2025 Cash Flow/Fair value hedges release to P&L
Commodity Price risk
Sell Future Contracts- Copper (279.33) (258.05)						- (537.38)
Embedded derivative- Copper - 29.45						29.45 -
BuyFuture Contracts- Aluminium (21.52) -						- (21.52)
Sell Future Contracts- Aluminium 66.33 8.94						- 75.27
Embedded derivative- Aluminium 14.63 -						14.63 -
As at 31 March 2024						(₹ million)
	Asset- increase/ (decrease) Liabilities- increase/ (decrease) Equity- increase/ (decrease) Maturity date Commodity price risk Carrying amount					Ineffective portion of Hedge -gain/ ( loss) Hedge Ratio Balance sheet classification Effective portion of Hedge -gain/ ( loss)
Fair Value Hedge
Hedged item	Inventory of Copper and aluminium	380.34	-	-	Range within 1 to 6 months	1:1	Inventory	(380.34)	(176.85)
	Highly probable future purchases	-	-	-		1:1	Cash flow hedge Reserve
Hedging instrument	Embedded derivative in trade payables of Copper and aluminium	-	(1.99)	-		1:1	Current financial liabilities
	Buy future contracts	-	-	-		1:1	Current financial liabilities
	Sell future contracts	-	568.19	-		1:1	Current financial liabilities

Page 69 of 71

Polycab India Limited

Notes to Standalone Financial Statements as at 31 March 2025

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The following table presents details of amounts held in effective portion of Cash Flow Hedge and the period during which these are going to be released and affecting Statement of Profit and Loss

	and affectingStatement of Profit and Loss
		(₹ million)
		As at 31st March 2024
		Cash Flow hedge release to P&L
		3 Months to 6 Months 6 Months to 12 Months Total Less than 3 Months
	Commodity Price risk
	Sell Future Contracts- Copper	(310.36) (42.94) - (353.30)
	Sell Future Contracts- Aluminium	(14.25) - (12.79) (27.04)
The Board of Directors has constituted a Risk Management Committee (RMC) to frame, implement and monitor the risk management plan of the Company
which	inter-alia covers risks arising out of exposure	to foreign currency fluctuations. Under the guidance and framework provided by the RMC, the Company
uses various derivative instruments such as foreign		exchange forward in which the counter party is generally a bank. For the purpose of the Company’s capital
management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders. The primary
objective is to maximise the shareholders value.
The Company has entered into derivative instruments by way of foreign exchange forward contracts, which are, as per the requirements of Ind AS 109,
measured at fair value through profit and loss account. The notional amount of outstanding contracts and loss/(gain) on fair valuation of such contracts are
given below:

	The following table presents details of amounts held in effective portion of Cash Flow Hedge and the period during which these are going to be released and affectingStatement of Profit and Loss	The following table presents details of amounts held in effective portion of Cash Flow Hedge and the period during which these are going to be released and affectingStatement of Profit and Loss	The following table presents details of amounts held in effective portion of Cash Flow Hedge and the period during which these are going to be released and affectingStatement of Profit and Loss	The following table presents details of amounts held in effective portion of Cash Flow Hedge and the period during which these are going to be released and affectingStatement of Profit and Loss	The following table presents details of amounts held in effective portion of Cash Flow Hedge and the period during which these are going to be released and affectingStatement of Profit and Loss
	(₹ million) Commodity Price risk Sell Future Contracts- Copper Sell Future Contracts- Aluminium 3 Months to 6 Months (310.36) (42.94) - (353.30) 6 Months to 12 Months Total (14.25) - Cash Flow hedge release to P&L As at 31st March 2024 The Board of Directors has constituted a Risk Management Committee (RMC) to frame, implement and monitor the risk management plan of the Company which inter-alia covers risks arising out of exposure to foreign currency fluctuations. Under the guidance and framework provided by the RMC, the Company uses various derivative instruments such as foreign exchange forward in which the counter party is generally a bank. For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders. The primary objective is to maximise the shareholders value. The Company has entered into derivative instruments by way of foreign exchange forward contracts, which are, as per the requirements of Ind AS 109, measured at fair value through profit and loss account. The notional amount of outstanding contracts and loss/(gain) on fair valuation of such contracts are given below: (12.79) (27.04) Less than 3 Months	(₹ million)
		3 Months to 6 Months 6 Months to 12 Months Total Cash Flow hedge release to P&L As at 31st March 2024 Less than 3 Months
		Commodity Price risk
		Sell Future Contracts- Copper (310.36) (42.94) - (353.30)
		Sell Future Contracts- Aluminium (14.25) - (12.79) (27.04)
(₹ million) 31 Mar 25 31 Mar 24 Foreign exchange forward contracts- Buy 12,677.79 5,303.28 Foreign exchange forward contracts- Sale (6,545.80) (4,684.74) 6,131.99 618.54 Fair valuation loss/(gain)on foreign exchange forward contracts 116.07 (12.59) 42. Financial performance ratios: 31 Mar 25 31 Mar 24 Variance A Performance Ratios Net Profit ratio 9.14% 9.80% -6.8% Net Capital turnover ratio 3.81 3.55 7.3% Return on Capital employed 28.37% 29.52% -3.9% Return on EquityRatio 22.36% 24.00% -6.8% Return on investment(i) Unquaoted(Fixed Deposits) 7.45% 7.06% 5.5% Quoted(Mutual Funds) 7.05% 7.31% -3.6% Debt Service Coverage ratio(ii) 11.12 18.17 -38.8% 31 Mar 25 31 Mar 24 Variance B Leverage Ratios Debt-EquityRatio - - 0.0% 31 Mar 25 31 Mar 24 Variance C Liquidity Ratios Current Ratio 2.72 2.47 10.2% 31 Mar 25 31 Mar 24 Variance D Activity Ratio Inventoryturnover ratio 5.06 4.38 15.4% 8.03 9.78 -17.8% Trade Payables turnover ratio 6.01 5.50 9.2% Profit before interest and tax Capital employed Total Debt Shareholder's equity Gain(Realised and Unrealised) Average Investment Average Investment Current Liabilities Current Assets Cost ofgoods sold Average inventory Revenue from operations Average trade receivables Net creditpurchases Average tradepayable* Trade Receivables turnover ratio Profit after tax Average shareholder's equity Earnings available for debt services Debt Service Denominator Revenue from operations Numerator Profit after tax Revenue from operations Workingcapital Interest Income	(₹ million)
				31 Mar 25	31 Mar 24
	Foreign exchange forward contracts- Buy			12,677.79	5,303.28
	Foreign exchange forward contracts- Sale			(6,545.80)	(4,684.74)
				6,131.99	618.54
	Fair valuation loss/(gain)on foreign exchange forward contracts			116.07	(12.59)
	Denominator Numerator		31 Mar 25	31 Mar 24 Variance
	Performance Ratios
	Net Profit ratio Revenue from operations Profit after tax		9.14%	9.80%	-6.8%
	Net Capital turnover ratio Revenue from operations Workingcapital		3.81	3.55	7.3%
	Return on Capital employed Profit before interest and tax Capital employed		28.37%	29.52%	-3.9%
	Return on EquityRatio Profit after tax Average shareholder's equity		22.36%	24.00%	-6.8%
	Return on investment(i)
	Unquaoted(Fixed Deposits) Average Investment Interest Income		7.45%	7.06%	5.5%
	Quoted(Mutual Funds) Gain(Realised and Unrealised) Average Investment		7.05%	7.31%	-3.6%
	Debt Service Coverage ratio(ii) Earnings available for debt services Debt Service		11.12	18.17	-38.8%
			31 Mar 25	31 Mar 24	Variance
	Leverage Ratios
	Debt-EquityRatio Total Debt Shareholder's equity		-	-	0.0%
			31 Mar 25	31 Mar 24	Variance
	Liquidity Ratios
	Current Ratio Current Liabilities Current Assets		2.72	2.47	10.2%
			31 Mar 25	31 Mar 24	Variance
	Activity Ratio
	Inventoryturnover ratio Cost ofgoods sold Average inventory		5.06	4.38	15.4%
	Revenue from operations Average trade receivables Trade Receivables turnover ratio		8.03	9.78	-17.8%
	Trade Payables turnover ratio Net creditpurchases Average tradepayable*		6.01	5.50	9.2%

Note: Explanation for change in ratio by more than 25%

(i) The reduction in the debt service coverage ratio is primarily attributable to the upfront payment for leasehold land and a marginal increase in working capital financing cost during the year.

• Average trade payable is the average of opening and closing balance of acceptances and trade payable balances.

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Polycab India Limited

Notes to Standalone Financial Statements as at 31 March 2025

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43. Struck off Company:

The following companies were struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956, as applicable.

Name of Stcuk of Company	Nature of transactions with struck off company	Balance outstanding as at current period (₹ million)	Balance outstanding as at previous period	Relationship with the struck off company, if any, to be disclosed
Pyrotech Electronics Private Limited	Purchase	0.04	-	Creditor
AnmayInfratech Private Limited	Purchase	0.41	0.41	Creditor

44. Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders. The primary objective is to maximise the shareholders value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The funding requirements are met through equity and operating cash flows generated.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

The capital structure is governed by policies approved by the Board of Directors and monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, lease liabilities and other payables, less cash and cash equivalents and current investments.

The capital structure is governed by policies approved by the Board of Directors and monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, lease liabilities and other payables, less cash and cash equivalents and current investments.	The capital structure is governed by policies approved by the Board of Directors and monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, lease liabilities and other payables, less cash and cash equivalents and current investments.	The capital structure is governed by policies approved by the Board of Directors and monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, lease liabilities and other payables, less cash and cash equivalents and current investments.
(₹ million)
	31 Mar 25	31 Mar 24
Otherpayables(Refer note 21)	2,639.60	2,545.10
Lease liabilities(Refer note 18)	759.41	512.44
Less: Cash and cash equivalents(Refer note 9)	(1,903.29)	(2,551.44)
Less: Current investments(Refer note 7B)	(17,056.49)	(18,036.45)
Net debt	(15,560.77)	(17,530.35)
Equity (Refer note 16 and 17)	97,627.46	81,444.12
Total capital	97,627.46	81,444.12
Capital and net debt	82,066.69	63,913.77
Gearing ratio	-18.96%	-27.43%

No changes were made in the objectives, policies or processes for managing capital during the year ended 31 March 2025 and year ended 31 March 2024.

45. Environmental, Social and Governance (ESG)

As a socially and environmentally responsible business, committed to the highest standards of corporate governance, the Company is focused on growing sustainably to build long-term stakeholder value by embracing sustainable development. The Company aims to deliver value to its employees, customers,

46. Events after the reporting period

(i) The Board of Directors of the Company at their meeting held on 06 May 2025 have approved the Scheme of Amalgamation between the Company and Uniglobus Electricals and Electronics Private Limited, a wholly owned subsidiary of the Company on going concern basis. The Appointed Date of the Scheme is 1 April 2025. The Scheme will be given effect to on receipt of requisite regulatory approvals and consent from Shareholders and filing of such approvals with the ROC.

(ii) The Board of Directors in their meeting on 6 May 2025 recommended a final dividend of ₹ 35 /- per equity share for the financial year ended 31 March 2025. This payment is subject to the approval of shareholders in the Annual General Meeting of the Company and if approved would result in a net cash outflow of approximately ₹ 5,264.91 million. It is not recognised as a liability as at 31 March 2025.

(iii) Refer note 36 for income tax order received post balance sheet date.

47. Others

Figures representing ₹ 0.00 million are below ₹ 5,000.

As per our report of even date For B S R & Co. LLP Chartered Accountants ICAI Firm Registration No. 101248W/W-100022

For and on behalf of the Board of Directors of Polycab India Limited CIN : L31300GJ1996PLC114183

sd/-

Sreeja Marar Partner Membership No. 111410

Place: Mumbai Date: 6 May 2025

sd/-

sd/-

Inder T. Jaisinghani Bharat A. Jaisinghani Chairman & Managing Director Whole Time Director DIN : 00309108 DIN : 00742995

sd/-

Gandharv Tongia Executive Director & CFO DIN : 09038711

Place: Mumbai Date: 6 May 2025

sd/-

Nikhil R. Jaisinghani Whole Time Director DIN : 00742771

sd/-

Manita Gonsalves Company Secretary Membership No. A18321

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