(d) Fair Values

The fair values of the investment properties (other than under development properties) are ''687.38 Lakh as per last valuation made during previous financial year 2024-25. These valuations are based on valuations performed by independent valuer. All fair value estimates for investment properties are included in level 3. The Company has no restrictions on the realizability of its investment properties or the remittance of income and proceeds of disposal.

Fair value is determined by a registered valuer as defined under rule 2 of Companies (Registered Valuers & Valuation) Rules, 2017. The fair value measurement is categorized in Level-3 of fair value hierarchy.

21.3 Rights, preference and restrictions attached to Equity Shares

(i) The company has one class of equity shares having a par value of '' 10 per share. All equity shares, in present and in future, rank pari passu with the existing equity shares of the company and each shareholder is entitled to one vote per share.

(ii) The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

(iii) I n 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.

(iv) The company did not have outstanding calls unpaid by the directors and officers of the Company (Previous Year NIL) and also did not have any amount of forfeited shares (Previous Year NIL).

(v) The Company has not allotted any fully paid up equity shares without payment being received in cash except bonus shares and nor has bought back any class of equity shares during the period of five years immediately preceding the balance sheet date.

(vi) During the period of last five years, the Company has issued following Bonus Shares to its Shareholders by Capitalisation of reserves:

(vii) In accordance with Employee Stock Option Plan scheme, the Company has granted 16.44 Lakh equity options to its employees (including the employees of its subsidiary) at an exercise price of '' 10 per equity share during the previous year. Accordingly, the same has been accounted as per ‘Ind AS 102 - Share Based Payment’ (Refer Note 48).

Nature of Reserves

a) Retained Earnings represent the undistributed profits of the Company.

b) Securities Premium Reserve represents the excess consideration received over the face value of equity shares issued by the Company. During the year, pursuant to the Initial Public Offer (IPO), the Company has issued equity shares at a premium and accordingly recognised securities premium.

Expenses directly attributable to the issue of shares have been adjusted against the securities premium in accordance with applicable accounting standards. The balance in the reserve is utilized in accordance with the provisions of Section 52 of the Companies Act, 2013.

c) Other Comprehensive Income Reserve represent the balance in equity for items to be accounted in Other Comprehensive Income(OCI). OCI is classified into

i) . Items that will not be reclassified to profit and loss

ii) . Items that will be reclassified to profit and loss.

d) Share based payment reserve - The fair value of the equity-settled share based payment transactions is recognised on straight line basis over vesting period in the standalone Statement of Profit and Loss with corresponding credit to Share Based Payment Reserve. This reserve would be appropriately dealt with in accordance with Ind AS 32 upon either exercise or lapse of the options.

24. Leases

Company as a Lessee

The Company has taken certain properties on lease for its offices and other business purposes. Lease arrangements generally include renewal and escalation clauses. The Company recognizes right-of-use assets and corresponding lease liabilities in accordance with Ind AS 116 - “Leases”, except for short-term leases and leases of low-value assets for which lease payments are recognised as an expense on a straight-line basis over the lease term.

In respect of Leased Properties taken on Long-term:

The impact of lease arrangements accounted for in accordance with Ind AS 116 on the Standalone Statement of Profit and Loss is as under (excluding corresponding deferred tax impact):

3. Notes

3.1 In preparing this report we have heavily relied on the completeness and accuracy of the information, data and assumptions provided to us orally and in writing by or on behalf of the Company and its advisors. We have not completed any detailed validation checks/investigation on the information, data and assumptions provided, however preliminary broad consistency is viewed in respect of data. As compared to previous valuation assumptions, changes, if any, may be due to change in yield to government bonds/change in entity’s long term views for future.

3.2 This report is based on going concern basis and as per requirements of Accounting Standard mentioned above and its application to the Plan. These results should not be used for any other purpose. In particular this Report does not constitute a formal funding actuarial valuation of the Plan and does not present any recommendation of contributions or funding levels and hence results will not hold good incase company is closed or mass attrition. This report is provided solely for the company use and for the specific purposes indicated above. It should not be disclosed or provided to any third party, in such situation, no responsibility is accepted for any consequences arising from any third party relying on this report or any advice relating to its contents. In any case, irrespective of vendor agreement etc. liability of undersigned towards entity or anyone is strictly limited to the billed amount for this report. There is no representation as to the suitability of this report for any purpose other than that for which it was originally provided.

4.1 Principal assumptions are discount rate and salary increase. The discount rate is based upon the yield on govt bonds and the salary increase should take account inflation, seniority, promotion and other relevant factors. However no explicit allowance is used for disability. As per Accounting Standard, selection of appropriate assumption is responsibility of the entity. Though entity has been advised on the suitability wherever applicable, the report is based on assumptions finalized by the entity (after considering long term view entity might have considered these assumptions prudent).

Risk Factors: Other assumptions would have produced different results e.g. a decrease in discount rate or an increase in salary inflation will lead to an increase in reported liability as per table of sensitivity analysis. Similarly change in attrition rates will also impact the liability. Funded plan carries usual investment risks including asset liability mismatch which will impact net liability/expenses and OCI if any.

5. Projected Unit Credit (PUC) Method: is used to assess the plan liabilities, including those related to death-in-service and incapacity benefits. Under this 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 plans accrual formula and service as of the beginning or end of the year, but using final compensation, projected to the age at which the employee is assumed to exit. The plan liability is actuarial present value of the projected accrued benefits as on date of valuation.

Notes:

1. The Company has certain disputes, lawsuits and claims, which arise in from time to time in the ordinary course of business. The Company believes these matters are not expected to have material impact on the Financial Statements.

2. Includes Bank Guarantees issued in favor of various customers for supply of materials, tendering, etc.

3. Represents demands raised by GST and Custom authorities pending before adjudicating authority or appellate authorities.

B. Related Party Transactions

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 interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. The Company has not recorded any impairment of receivables relating to amounts owed by related parties as at reporting dates. This assessment is undertaken each financial period through examining the financial position of the related party and the market in which the related party operates. There are no commitments with related parties.

Purchases:

The purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions and in the ordinary course of business. Purchase transactions are based on made on normal commercial terms and conditions and market rates.

46. Capital management

The Company’s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximize the shareholders value . The Company’s overall strategy remains unchanged from previous year. The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments. The funding requirements are met through a mixture of equity, internal fund generation and borrowed funds.. The Company’s policy is to use short term and long-term borrowings to meet anticipated funding requirements. The Company monitors capital on the basis of the net debt to equity ratio. The Company is not subject to any externally imposed capital requirements. Net debt are long term and short term debts as reduced by cash and cash equivalents (including restricted cash and cash equivalents) and short-term investments. Equity comprises share capital and free reserves. The following table summarizes the capital of the Company:

49 Financial risk management

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

A. Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company’s exposure to credit risk is influenced mainly by loans, cash and cash equivalents, trade receivables and other financial assets measured at amortized cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

a. Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

(i) Low credit risk

(ii) Moderate credit risk

(iii) High credit risk

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in Statement of Profit and Loss.

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

Trade receivables

Trade receivables are generally unsecured and non-interest bearing. There is no significant concentration of credit risk. The Company’s credit risk management policy in relation to trade receivables involves periodically assessing the financial reliability of customers, taking into account their financial position, past experience and other factors. The utilization of credit limit is regularly monitored. The Company’s credit risk is mainly confined to the risk of customers defaulting against credit sales made. Outstanding trade receivables are regularly monitored by credit monitoring Company. The Company has also taken advances from its customers, which mitigate the credit risk to an extent. In respect of trade receivables, the Company recognizes a impairment for lifetime expected credit losses after evaluating the individual probabilities of default of its customers which are duly based on the inputs received from the marketing teams of the Company.

Other financial assets measured at amortized cost

Other financial assets measured at amortized cost includes loans to related parties, loans to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system are in place ensure the amounts are within defined limits.

b. Expected credit losses for financial assets i. Financial assets (other than trade receivables)

Company provides for expected credit losses on financial assets other than trade receivables by assessing individual financial instruments for expectation of any credit losses.

• For cash & cash equivalents and other bank balances - Since the Company deals with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, other bank balances and bank deposits is evaluated as very low.

• For security deposits paid - Credit risk is considered low because the Company is in possession of the underlying asset.

• For other financial assets - Credit risk is evaluated based on Company knowledge of the credit worthiness of those parties and loss allowance is measured. For such financial assets, the Company policy is to provide for 12 month expected credit losses upon initial recognition and provide for lifetime expected credit losses upon significant increase in credit risk.

ii) Expected credit loss for trade receivables under simplified approach

As at March 31, 2026 and March 31, 2025 the Company considered the individual probabilities of default of its financial assets (other than trade receivables) and determined that in respect of counterparties with low credit risk, no default events are considered to be possible within the 6 months after the reporting date. In respect of trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected credit losses using a simplified approach.

B. Market Risk a) Foreign Currency Risk

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company’s exposure to currency risk relates primarily to the Company’s operating activities when transactions are denominated in a different currency from the Company’s functional currency.

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company’s activities expose it primarily to the financial risk of changes in foreign currency exchange rates on account of procurement of goods/materials from outside India.

b) Interest rate risk

The Company is exposed to interest rate risk on short-term and long-term borrowings. The Company’s policy is to maintain a balance of fixed and floating interest rate borrowings and proportion of fixed and floating rate debt is determined by current market interest rates. However, the borrowings of the Company are principally denominated in Indian Rupees and accordingly, there is no currency exchange risk on interest rate. The details of the interest-bearing liabilities are given at Note No. 20 & 23.

Interest Rate Sensitivity Analysis

The business loans and cash credits / ODs / WDDLs is linked to the Repo rate and is subject to fluctuations in interest rates. The Company has assessed its interest rate risk by considering a 100 basis points (1%) increase or decrease in interest rates as a reasonably possible change based on historical trends.

Assumptions Used in Sensitivity Analysis

The fixed-rate vehicle loans are not subject to interest rate risk and therefore are excluded from the sensitivity analysis.

A 100 basis points (1%) increase or decrease in the repo rate is considered as a reasonably possible fluctuation. The analysis assumes that all other variables remain constant.

The impact is computed based on the outstanding floating-rate borrowings as of the reporting date.

The tax rate applicable for net equity impact is assumed to be 25.17%.

Interest Rate Risk Management

The Company actively monitors market conditions and repo rate movements to manage its exposure to interest rate fluctuations. It evaluates refinancing opportunities and considers hedging strategies to mitigate the impact of adverse rate movements on floating-rate loans.

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages its liquidity risk by ensuring as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation. The Company believes that the working capital and its cash and cash equivalent are sufficient to meet its short and medium term requirements.

The table below summarizes the maturity profile of the company’s financial liabilities based on contractual undiscounted payments:

52. Segment information

a) The principal business of the Company is sale of “Customized Power Electronic Solutions’ and “Other System Integrated Solutions”. All other activities of the Company revolve around its principal business. The Executive Committee of the Company, has been identified as the Chief Operating Decision Maker (CODM). The CODM evaluates the Company’s performance, allocates resources based on analysis of the various performance indicators of the Company as a single unit. CODM have concluded that there is only one operating reportable segment as defined under IND AS 108 “Operating Segments”, i.e. “Customized Power Electronic Solutions and Other System Integrated Solutions”.

b) Disaggregation of Revenue from Operations by Geographical Area has been provided at Note No. 53

C) All Non-Current Assets of the Company are located within India only.

d) Information about Major Customers

Following are the details of customers contributing 10% or more to the Company’s revenue during the year

ended March 31, 2026 and March 31, 2025:

56. Financial instruments

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a orderly transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables.

Accordingly, fair value of such instruments is not materially different from their carrying amounts. The fair values for loans, security deposits and investment in preference shares were calculated based on cash flows discounted using a current lending rate.

They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

Fair value measurement hierarchy:

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that an entity can access at the measurement date.

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

58. Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under Benami Transactions (Prohibition) Act, 1988.

(ii) The Company has not traded or invested in Crypto currency or Virtual Currency.

(iii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(v) The Company has not entered into any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the period in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(vi) The Company is in compliance with number of layers of companies, as prescribed under clause (87)of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(vii) The Company has not revalued its Property, Plant and Equipment and ROU Assets during the year, hence, regulatory information disclosure is not applicable for the Company.

(viii) The Company has not revalued its Intangible Assets during the year, hence, regulatory information disclosure is not applicable for the Company.

(ix) Additional Regulatory Information pursuant to amendment in Schedule III of the Companies Act, 2013 dated 24.03.2021 has been given to the extent applicable to the Company.

(x) The Company does not have any relationship/transaction with Struck off Companies and has not entered into any transactions with struck off companies in the current and previous reporting period.

(xi) The Company has not entered into or implemented any Scheme of Arrangement under Sections 230 to 237 of the Companies Act, 2013 during the year ended 31^st March, 2026. Accordingly, this disclosure is not applicable.

(xii) The Company is not declared as a willful defaulter by any bank or financial institution or other lender during the any reporting period.

59. Miscellaneous:

(i) Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current year’s classification/disclosure and to comply with the requirements of Indian Accounting Standards.

(ii) Balance of trade payables, trade receivables and loans and advances are subject to confirmation/ reconciliation and resultant adjustment(s) thereof.

(iii) Absolute amounts less than '' 500 are appearing in the Financial Statements as “0.00” due to presentation in Lakhs.

n) Provisions and Contingencies

The assessments undertaken in recognising
provisions and contingencies have been made
in accordance with the applicable Ind AS.

Provisions represent liabilities to the Company
for which the amount or timing is uncertain.
Provisions are recognized when the Company
has a present obligation (legal or constructive),
as a result of past events, and it is probable that
an outflow of resources, that can be reliably
estimated, will be required to settle such an
obligation. If the effect of the time value of
money is material, provisions are determined
by discounting the expected future cash flows
to net present value using an appropriate pre¬
tax discount rate that reflects current market
assessments of the time value of money and,
where appropriate, the risks specific to the
liability. Unwinding of the discount is recognized
in the statement of profit and loss as a finance
cost. Provisions are reviewed at each reporting
date and are adjusted to reflect the current
best estimate.

Provision for Warranty: The Company makes
provision for the probable future liability
on account of the warranty based on the
estimation of the warranty claims/expenses
that the Company expects to materialize in the
future. The Company assesses the need and
quantum of provision for warranty based on
conditions prevailing at each year/period-end.

The Company has significant capital
commitments in relation to various capital
projects which are not recognized on the
balance sheet. In the normal course of business,
contingent liabilities may arise from litigation
and other claims against the Company.
Guarantees are also provided in the normal
course of business. There are certain obligations
which management has concluded, based
on all available facts and circumstances, are
not probable of payment or are very difficult
to quantify reliably, and such obligations are
treated as contingent liabilities and disclosed
in the notes but are not reflected as liabilities
in the financial statements. Although there
can be no assurance regarding the final
outcome of the legal proceedings in which the
Company involved, it is not expected that such
contingencies will have a material effect on its
financial position or profitability.

Contingent assets are not recognised but
disclosed in the financial statements when an
inflow of economic benefits is probable.

o) Cash Flow Statement

Cash flows are reported using indirect method
as set out in Ind AS -7 "Statement of Cash Flows",
whereby profit / (loss) before tax is adjusted for
the effects of transactions of non-cash nature
and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from

operating, investing and financing activities
of the Company are segregated based on the
available information.

p) Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the management. Operating segments
are those components of the business whose
operating results are regularly reviewed
by the chief operating decision making
body in the Company to make decisions
for performance assessment and resource
allocation. The reporting of segment information
is the same as provided to the management for
the purpose of the performance assessment
and resource allocation to the segments.

q) Borrowing Costs

Borrowing costs directly attributable to the
acquisition, construction or production of an
asset that necessarily takes a substantial
period of time to get ready for its intended use
or sale are capitalised as part of the cost of the
asset. All other borrowing costs are expensed
in the period in which they occur. Borrowing
costs consist of interest and other costs that an
entity incurs in connection with the borrowing of
funds. Borrowing cost also includes exchange
differences to the extent regarded as an
adjustment to the borrowing costs.

r) Impairment of Non-Financial Assets

An asset is considered as impaired when at the
date of Balance Sheet there are indications of
impairment and the carrying amount of the
asset exceeds its recoverable amount (i.e. the
higher of the fair value less cost to sell and
value in use). The carrying amount is reduced
to the recoverable amount and the reduction
is recognized as an impairment loss in the
Statement of Profit and Loss. The impairment
loss recognized in the prior accounting period
is reversed if there has been a change in
the estimate of recoverable amount. Post
impairment, depreciation is provided on the
revised carrying value of the carrying value of
the impaired asset over its remaining useful life.

s) 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. 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 is treated as deferred income and released

to the statement of profit and loss over the
expected useful lives of the assets concerned.
When the Company receives grants of non¬
monetary assets, the asset and the grant are
recorded at fair value amounts and released to
statement of profit and loss over the expected
useful life in a pattern of consumption of the
benefit of the underlying asset. When loans or
similar assistance are provided by governments
or related institutions, with an interest rate
below the current applicable market rate, the
effect of this favourable interest is regarded as
a government grant. The loan or assistance is
initially recognised and measured at fair value
and the government grant is measured as the
difference between the initial carrying value of
the loan and the proceeds received. The loan is
subsequently measured as per the accounting
policy applicable to financial liabilities.

t) Financial Instruments

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.

(A) 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. Purchases or sales of
financial assets that require delivery of
assets within a time frame established
by regulation or convention in the
market place (regular way trades) are
recognised on the trade date, i.e., the
date that the Company commits to
purchase or sell the asset.

(ii) Subsequent measurement

Subsequent measurement of financial
assets is described below -

a. Financial Assets (Debt instruments)
at amortised cost

A ''debt instrument'' is measured
at the amortised cost if both the
following conditions are met:

a) The asset is held within
a business model whose
objective is to hold assets for
collecting contractual cash
flows, and

categorization as at amortized cost
or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect
to designate a debt instrument,
which otherwise meets amortized
cost or FVTOCI criteria, as at
FVTPL. However, such election is
allowed only if doing so reduces
or eliminates a measurement or
recognition inconsistency (referred
to as ''accounting mismatch'').
The Company has designated its
investments in debt instruments as
FVTPL. Debt instruments included
within the FVTPL category are
measured at fair value with all
changes recognized in the P&L.

(iii) De-recognition

A financial asset (or, where applicable, a
part of a financial asset or part of a group
of similar financial assets) is primarily
derecognised (i.e. removed from the
Company''s balance sheet) when:

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

• 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.

Continuing involvement that takes
the form of a guarantee over the
transferred asset is measured at the
lower of the original carrying amount of
the asset and the maximum amount of
consideration that the Company could
be required to repay.

(iv) Impairment of financial assets

In accordance with Ind AS 109, the
Company applies expected credit
loss (ECL) model for measurement
and recognition of impairment loss
on the financial assets that are debt
instruments, and are measured
at amortised cost e.g., loans, debt
securities, deposits and trade
receivables or any contractual right to
receive cash or another financial asset.

Trade Receivables

A receivable is classified as a ''trade
receivable'' if it is in respect to the amount
due from customers on account of
goods sold or services rendered in the
ordinary course of business.

The Company follows ''simplified
approach'' for recognition of impairment
loss allowance on trade receivables.
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 ECLs at each reporting
date, right from its initial recognition.

In other words, trade receivables are
recognised initially at fair value and
subsequently measured at amortised
cost less expected credit loss, if any.

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, the Company
reverts to recognising impairment loss
allowance based on 12-month ECL.

Lifetime ECL are the expected credit
losses resulting from all possible
default events over the expected life of
a financial instrument. The 12-month
ECL is a portion of the lifetime ECL
which results from default events that
are possible within 12 months after the
reporting date.

ECL is the difference between all
contractual cash flows that are due to
the Company in accordance with the
contract and all the cash flows that the
entity expects to receive (i.e., all cash
shortfalls), discounted at the original EIR.

ECL impairment loss allowance (or
reversal) recognized during the period
is recognized as income/ expense in
the statement of profit and loss. This
amount is reflected under the head
''other expenses'' in the statement of
profit and loss. The balance sheet
presentation for various financial
instruments is described below:

• Financial assets measured as at
amortised cost: ECL is presented
as an allowance, i.e., as an integral
part of the measurement of those
assets in the balance sheet. The
allowance reduces the net carrying
amount. Until the asset meets write¬
off criteria, the Company does not
reduce impairment allowance from
the gross carrying amount.

• Debt instruments measured at

FVTPL: Since financial assets are
already reflected at fair value,
impairment allowance is not
further reduced from its value. The
change in fair value is taken to the
statement of Profit and Loss.

• Debt instruments measured at
FVTOCI: Since financial assets
are already reflected at fair value,
impairment allowance is not
further reduced from its value.
Rather, ECL amount is presented as
''accumulated impairment amount''
in the OCI.

For assessing increase in credit risk
and impairment loss, the Company
combines financial instruments
on the basis of shared credit risk
characteristics with the objective of
facilitating an analysis that is designed
to enable significant increases in credit
risk to be identified on a timely basis.

The Company does not have any
purchased or originated credit-
impaired (POCI) financial assets,
i.e., financial assets which are credit
impaired on purchase/ origination.

(B) Financial liabilities

(i) Initial Recognition & Measurement

Financial liabilities are classified, at
initial recognition, as financial liabilities
at fair value through statement of
profit and loss, loans and borrowings,
payables, or as derivatives designated
as hedging instruments in an effective
hedge, as appropriate.

All financial liabilities are recognised
initially at fair value and, in the case of
loans & 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, financial

guarantee contracts and derivative
financial instruments.

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

Financial liabilities at fair value
through statement of profit and loss

Financial liabilities at fair value through
statement of profit and loss include
financial liabilities held for trading
and financial liabilities designated
upon initial recognition as at fair value
through statement of profit and 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. Separated embedded
derivatives are also classified as held
for trading unless they are designated
as effective hedging instruments.

Gains or losses on liabilities held for
trading are recognised in the statement
of profit and loss. Financial liabilities
designated upon initial recognition at
fair value through statement of profit
and 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/ losses
are not subsequently transferred to
statement of profit and loss.

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 and loss. The Company has not
designated any financial liability as at
fair value through statement of profit
and loss.

(ii) Loans and Borrowings

After initial recognition, interest-bearing
loans and borrowings are subsequently
measured at amortised cost using
the effective interest rate (hereinafter
referred as EIR) method. Gains and
losses are recognized in statement of
profit and loss when the liabilities are
de-recognised as well as through the
EIR amortisation process.

Amortised cost is calculated by taking
into account any discount or premium
on acquisition and fees or costs that
are an integral part of the EIR. The EIR
amortisation is included as finance
costs in the statement of profit and loss.

(iii) Buyers Credit

The Company enters into arrangements
whereby financial institutions make
direct payments to suppliers for raw
materials and project materials. The
financial institutions are subsequently
repaid by the Company at a later
date providing working capital timing
benefits. These are normally settled up
to twelve months (for raw materials) and
up to 36 months (for project materials).
Where these arrangements are 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 operational buyers''
credit (under Trade and other payables).
Where these arrangements are for
project materials with a maturity up to
36 months, the economic substance
of the transaction is determined to
be financing in nature, and these are
classified as projects buyers'' credit
within borrowings in the statement of
financial position.

(iv) Financial liabilities - De-recognition

A financial liability is de-recognised
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 and loss.

(v) Offsetting of financial instruments

Financial assets and financial liabilities
are offset and the net amount is
reported in the balance sheet if there
is a currently enforceable legal right
to offset the recognised amounts and
there is an intention to settle on a net
basis, to realise the assets and settle
the liabilities simultaneously. For more
information on financial instruments
Refer Note No. 59.

u) Investment in Subsidiaries, joint ventures
and associates:

Subsidiary: A subsidiary is an entity controlled
by the Company. Control exists when the
Company has power over the entity, is exposed,
or has rights to variable returns from its
involvement with the entity and has the ability
to affect those returns by using its power over
entity. Power is demonstrated through existing
rights that give the Company the ability to direct
relevant activities, those which significantly
affect the entity''s returns.

Associate: Associate entities are entities, over
which an investor exercises significant influence
but not control. Significant influence is defined
as power to participate in the financial or
operating policy decisions of the investee but
not control over the policies.

Company assumes that holding of 20% or more
of the voting power of the investee (whether
directly or indirectly) gives rise to significant
influence, unless contrary evidences exist.

Joint arrangement: 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.

v) Foreign currency transactions

(i) Initial Recognition

In the Standalone financial statements of
the Company, transactions in currencies
other than the functional currency are
translated into the functional currency at
the exchange rates ruling at the date of
the transaction.

(ii) Conversion

Monetary assets and liabilities
denominated in other currencies are
translated into the functional currency at
exchange rates prevailing on the reporting
date. Non-monetary assets and liabilities
denominated in other currencies and
measured at historical cost or fair value are
translated at the exchange rates prevailing
on the dates on which such values
were determined.

(iii) Exchange Differences

All exchange differences are included in
the statement of profit and loss except
any exchange differences on monetary
items designated as an effective
hedging instrument of the currency risk of
designated forecasted sales or purchases,
which are recognized in the other
comprehensive income.

w) Dividend Distribution

Dividend Distribution / Annual dividend
distribution to the shareholders is recognised
as a liability in the period in which the dividends
are approved by the shareholders. Any interim
dividend paid is recognised on approval by
Board of Directors. Dividend payable and
corresponding tax on dividend distribution is
recognised directly in equity.

x) Prior Period Items

Errors of material amounts relating to prior
period(s) are disclosed by a note with nature of
prior period errors, amount of correction of each
such prior period presented retrospectively in
the statement of profit and loss and balance
sheet, to the extent practicable along with
change in basic and diluted earnings per share.
However, where retrospective restatement is
not practicable for a particular period then the
circumstances that lead to the existence of that
condition and the description of how and from
where the error is corrected are disclosed in
Notes on Accounts.

y) Use of Estimates and Judgments

The preparation of the financial statements in
conformity with Ind AS requires management to
make judgements, estimates and assumptions
that affect the application of accounting
policies and the reported amounts of assets,
liabilities, income, expenses and disclosures of
contingent assets and liabilities at the date of
these financial statements and the reported
amounts of revenues and expenses for the
years presented. Actual results may differ from
these estimates under different assumptions
and conditions.

Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the
period in which the estimate is revised and
future periods affected.

In particular, information about significant
areas of estimation uncertainty and critical
judgments in applying accounting policies
that have the most significant effect on the
amounts recognized in the Standalone financial
statements are elaborated in Note No. 4.

4A.Critical estimates and judgements
in applying accounting policies

The preparation of financial statements in
conformity with generally accepted accounting
principles in India requires management to
make judgments, estimates and assumptions
that affect the reported amount of revenue,
expenses, assets and liabilities and disclosure of
contingent liabilities on the date of the financial
statements and the results of operations during
the reporting year end. Although these estimates
and associated assumptions are based upon
historical experiences and various other factors
besides management''s best knowledge of
current events and actions, actual results could
differ from these estimates. The estimates and
underlying assumptions are reviewed on a
periodic basis. Any revision in the accounting
estimates is recognised in the period in which the
results are known/ materialise.

Significant judgments and key sources of
estimation in applying accounting policies are
as follows:

a) Property, plant and equipment and useful
life of property, plant and equipment and
intangible assets

The carrying value of property, plant and
equipment is arrived at by depreciating the
assets over the useful life of assets. The estimate
of useful life is reviewed at the end of each

financial year and changes are accounted
for prospectively.

b) Provisions and contingencies

The assessments undertaken in recognising
provisions and contingencies have been made
in accordance with the applicable Ind AS.

A provision is recognized if, as a result of a past
event, the Company has a present legal or
constructive obligation that can be estimated
reliably, and it is probable that an outflow of
economic benefits will be required to settle the
obligation. Where the effect of time value of
money is material, provisions are determined
by discounting the expected future cash flows.

The Company has significant capital
commitments in relation to various capital
projects which are not recognized on the
balance sheet.

In the normal course of business, contingent
liabilities may arise from litigation and other
claims against the Company. Guarantees
are also provided in the normal course of
business. There are certain obligations which
management has concluded, based on all
available facts and circumstances, are not
probable of payment or are very difficult to
quantify reliably, and such obligations are
treated as contingent liabilities and disclosed
in the notes but are not reflected as liabilities in
the Standalone financial statements. Although
there can be no assurance regarding the final
outcome of the legal proceedings in which the
Company involved, it is not expected that such
contingencies will have a material effect on its
financial position or profitability (Refer Note 44).

c) Employee benefit expenses

Actuarial valuation for gratuity liability of the
Company has been done by an independent
actuarial valuer on the basis of data provided
by the Company and assumptions used by
the actuary. The data so provided and the
assumptions used have been disclosed in the
notes to accounts.

d) Taxes

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.

The Company has determined that it can
recognise deferred tax assets on the tax losses
carried forward as it is probable that future
taxable profit will be available against which the
unused tax losses and unused tax credits can
be utilised. Further details on taxes are disclosed
in Note No. 41.

e) Impairment of accounts receivable and
advances

Trade receivables carry interest and are stated
at their fair value as reduced by appropriate
allowances for expected credit losses.
Individual trade receivables are written off when
management deems them not to be collectible.
Impairment is recognised for the expected
credit losses.

f) Discounting of Security deposit, retention
money and other long-term liabilities

For majority of the security deposits received
from suppliers of goods or contractors and the
retention moneys received, the timing of outflow,
as mentioned in the underlying contracts, is
not substantially long enough to discount. The
treatment would not provide any meaningful
information and would have no material impact
on the Standalone financial statements.

g) Amortized Cost for Employee Loans

Employee loans have not been recorded
using Effective Interest Rate method due to

absence of any material impact on Standalone
financial statements and involvement of
practical difficulties.

h) Investment in Equity Instruments

Investments made in equity instruments
other than subsidiaries, joint ventures and in
associates, have been valued at fair value using
the net asset value of the investee Companies
as on the reporting date.

i) Restatement of Prior Period Items

Material prior period items, i.e. items having a
value of above '' 5.00 Lac have been restated in
the previous year financials.

4B. 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 not notified any new
standards or amendments to the existing standards
applicable to the Company.

n) Provisions and Contingencies

The assessments undertaken in recognising provisions and contingencies have been made in
accordance with the applicable Ind AS.

Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions
are recognized when the Company has a present obligation (legal or constructive), as a result of past
events, and it is probable that an outflow of resources, that can be reliably estimated, will be required to
settle such an obligation. If the effect of the time value of money is material, provisions are determined
by discounting the expected future cash flows to net present value using an appropriate pre-tax discount
rate that reflects current market assessments of the time value of money and, where appropriate, the
risks specific to the liability. Unwinding of the discount is recognized in the statement of profit and loss
as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current
best estimate.

Provision for Warranty: The Company makes provision for the probable future liability on account of the
warranty based on the estimation of the warranty claims/expenses that the Company expects to
materialize in the future. The Company assesses the need and quantum of provision for warranty based
on conditions prevailing at each year-end.

The Company has significant capital commitments in relation to various capital projects which are not
recognized on the balance sheet. In the normal course of business, contingent liabilities may arise from
litigation and other claims against the Company. Guarantees are also provided in the normal course of
business. There are certain obligations which management has concluded, based on all available facts
and circumstances, are not probable of payment or are very difficult to quantify reliably, and such
obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as
liabilities in the financial statements. Although there can be no assurance regarding the final outcome
of the legal proceedings in which the Company involved, it is not expected that such contingencies will
have a material effect on its financial position or profitability.

Contingent assets are not recognised but disclosed in the financial statements when an inflow of
economic benefits is probable.

o) Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS -7 "Statement of Cash Flows", whereby
profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals
or accruals of past or future cash receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the available information.

p) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the
management. Operating segments are those components of the business whose operating results are
regularly reviewed by the chief operating decision making body in the Company to make decisions for
performance assessment and resource allocation. The reporting of segment information is the same as
provided to the management for the purpose of the performance assessment and resource allocation to
the segments.

q) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as
part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing
of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to
the borrowing costs.

r) Impairment of Non-Financial Assets

An asset is considered as impaired when at the date of Balance Sheet there are indications of impairment
and the carrying amount of the asset exceeds its recoverable amount (i.e. the higher of the fair value
less cost to sell and value in use). The carrying amount is reduced to the recoverable amount and the
reduction is recognized as an impairment loss in the Statement of Profit and Loss. The impairment loss
recognized in the prior accounting period is reversed if there has been a change in the estimate of
recoverable amount. Post impairment, depreciation is provided on the revised carrying value of the
carrying value of the impaired asset over its remaining useful iife.

s) 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. 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 is treated as deferred
income and released to the statement of profit and loss over the expected useful lives of the assets
concerned. When the Company receives grants of non-monetary assets, the asset and the grant are
recorded at fair value amounts and released to statement of profit and loss over the expected useful life
in a pattern of consumption of the benefit of the underlying asset. When loans or similar assistance are
provided by governments or related institutions, with an interest rate below the current applicable market
rate, the effect of this favourable interest is regarded as a government grant. The loan or assistance is
initially recognised and measured at fair value and the government grant is measured as the difference
between the initial carrying value of the loan and the proceeds received. The loan is subsequently
measured as per the accounting policy applicable to financial liabilities.

t) Financial Instruments

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.

(A) 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. Purchases or sales of financial assets
that require delivery of assets within a time frame established by regulation or convention
in the market place (regular way trades) are recognised on the trade date, i.e., the date that
the Company commits to purchase or sell the asset.

(ii) Subsequent measurement

Subsequent measurement of financial assets is described below -

a. Financial Assets (Debt instruments) at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions
are met:

a) The asset is held within a business model whose objective is to hold assets for
collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are
solely payments of principal and interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial assets are subsequently measured at

amortised cost using the effective interest rate (EIR) method. Amortised cost is

calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included in finance
income in the statement of profit and loss. The losses arising from impairment are
recognised in the statement of profit and loss. This category generally applies to trade
and other receivables.

b. Debt Instrument at FVTOCI

A ''debt instrument’ is classified as at the FVTOCI if both of following criteria are met:

a) The objective of the business model is achieved both by collecting contractual
cash flows and selling the financial assets, and

b) The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well
as at each reporting date at fair value. Fair value movements are recognized in the
other comprehensive income (OCI).

However, the Company recognizes interest income, impairment losses & reversals and
foreign exchange gain or loss in the P&L. On derecognition of the asset, cumulative
gain or loss previously recognised in OCI is reclassified from the equity to P&L. Interest
earned whilst holding FVTOCI debt instrument is reported as interest income using the
EIR method.

c. Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does
not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified
as at FVTPL.

In addition, the Company may elect to designate a debt instrument, which otherwise
meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is
allowed only if doing so reduces or eliminates a measurement or recognition
inconsistency (referred to as ''accounting mismatch''). The Company has designated
its investments in debt instruments as FVTPL. Debt instruments included within the
FVTPL category are measured at fair value with all changes recognized in the P&L.

(iii) De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of
similar financial assets) is primarily derecognised (i.e. removed from the Company''s
balance sheet) when:

ⁿ The rights to receive cash flows from the asset have expired, or

a 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 ''passthrough'' 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 mntrnl nf 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 ail 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 xtransferred asset and the associated liability are measured on a basis that reflects
the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the original carrying amount of the asset and the maximum
amount of consideration that the Company could be required to repay.

(iv) Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss on the financial assets that are debt
instruments, and are measured at amortised cost e.g., loans, debt securities, deposits and
trade receivables or any contractual right to receive cash or another financial asset.

Trade Receivables

A receivable is classified as a ''trade receivable'' if it is in respect to the amount due from
customers on account of goods sold or services rendered in the ordinary course of
business.

The Company follows ''simplified approach'' for recognition of impairment loss allowance
on trade receivables. 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 ECLs at each reporting date, right from its initial recognition.

In other words, trade receivables are recognised initially at fair value and subsequently
measured at amortised cost less expected credit loss, if any.

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, the Company
reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over
the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime
ECL which results from default events that are possible within 12 months after the reporting
date.

ECL is the difference between ail contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the entity expects to receive (i.e.,
all cash shortfalls), discounted at the original EIR.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as
income/ expense in the statement of profit and loss. This amount is reflected under the
head ''other expenses'' in the statement of profit and loss. The balance sheet presentation
for various financial instruments is described below:

^D Financial assets measured as at amortised cost: ECL is presented as an allowance,
i.e., as an integral part of the measurement of those assets in the balance sheet. The
allowance reduces the net carrying amount. Until the asset meets write-off criteria, the
Company does not reduce impairment allowance from the gross carrying amount.

a Debt instruments measured at FVTPL: Since financial assets are already reflected at
fair value, impairment allowance is not further reduced from its value. The change in
fair value is taken to the statement of Profit and Loss.

ⁿ Debt instruments measured at FVTOCI: Since financial assets are already reflected at
fair value, impairment allowance is not further reduced from its value. Rather, ECL
amount is presented as ''accumulated impairment amount'' in the OCI.

For assessing increase in credit risk and impairment loss, the Company combines financial
instruments on the basis of shared credit risk characteristics with the objective of
facilitating an analysis that is designed to enable significant increases in credit risk to be
identified on a timely basis.

The Company does not have any purchased or originated credit-impaired (POCI) financial
assets, i.e., financial assets which are credit impaired on purchase/ origination.

(B) Financial liabilities

(I) Initial Recognition & Measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through statement of profit and loss, loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans &
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, financial guarantee contracts and derivative financial
instruments.

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

Financial liabilities at fair value through statement of profit and loss

Financial liabilities at fair value through statement of profit and loss include financial
liabilities held for trading and financial liabilities designated upon initial recognition as at
fair value through statement of profit and loss. Financial liabilities are classified as held for

A.

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.
Separated embedded derivatives are also classified as held for trading unless they are
designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the statement of profit and
loss. Financial liabilities designated upon initial recognition at fair value through statement
of profit and 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/ losses are not subsequently transferred to
statement of profit and loss.

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 and loss. The
Company has not designated any financial liability as at fair value through statement of
profit and loss.

(ii) Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured
at amortised cost using the effective interest rate (hereinafter referred as EIR) method.
Gains and losses are recognized in statement of profit and loss when the liabilities are de¬
recognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortisation is included as
finance costs in the statement of profit and loss.

(iii) Buyers Credit

The Company enters into arrangements whereby financial institutions make direct
payments to suppliers for raw materials and project materials. The financial institutions
are subsequently repaid by the Company at a later date providing working capital timing
benefits. These are normally settled up to twelve months (for raw materials) and up to 36
months (for project materials). Where these arrangements are 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 operational buyers’ credit (under
Trade and other payables). Where these arrangements are for project materials with a
maturity up to 36 months, the economic substance of the transaction is determined to be
financing in nature, and these are classified as projects buyers’ credit within borrowings in
the statement of financial position.

(iv) Financial liabilities - De-recognition

A financial liability is de-recognised 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

ff ja/ /''“•a vmi ff.vV -v/Av V I

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
and loss.

(v) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the
balance sheet if there is a currently enforceable legal right to offset the recognised amounts
and there is an intention to settle on a net basis, to realise the assets and settle the
liabilities simultaneously. For more information on financial instruments Refer Note No. 59.

u) Investment in Subsidiaries, joint ventures and associates:

Subsidiary: A subsidiary is an entity controlled by the Company. Control exists when the Company has
power over the entity, is exposed, or has rights to variable returns from its involvement with the entity
and has the ability to affect those returns by using its power over entity. Power is demonstrated through
existing rights that give the Company the ability to direct relevant activities, those which significantly
affect the entity’s returns.

Associate: Associate entities are entities, over which an investor exercises significant influence but not
control. Significant influence is defined as power to participate in the financial or operating policy
decisions of the investee but not control over the policies.

Company assumes that holding of 20% or more of the voting power of the investee (whether directly or
indirectly) gives rise to significant influence, unless contrary evidences exist.

Joint arrangement: 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.

v) Foreign currency transactions

(i) Initial Recognition

In the Standalone financial statements of the Company, transactions in currencies other than the
functional currency are translated into the functional currency at the exchange rates ruling at the
date of the transaction.

(ii) Conversion

Monetary assets and liabilities denominated in other currencies are translated into the functional
currency at exchange rates prevailing on the reporting date. Non-monetary assets and liabilities
denominated in other currencies and measured at historical cost or fair value are translated at the
exchange rates prevailing on the dates on which such values were determined.

(iii) Exchange Differences

All exchange differences are included in the statement of profit and loss except any exchange
differences on monetary items designated as an effective hedging instrument of the currency risk
of designated forecasted sales or purchases, which are recognized in the other comprehensive
income.

w) Dividend Distribution

Dividend Distribution / Annual dividend distribution to the shareholders is recognised as a liability in the
period in which the dividends are approved by the shareholders. Any interim dividend paid is recognised
on approval by Board of Directors. Dividend payable and corresponding tax on dividend distribution is
recognised directly in equity.

x) Prior Period Items

Errors of material amounts relating to prior period(s) are disclosed by a note with nature of prior period
errors, amount of correction of each such prior period presented retrospectively in the statement of
profit and loss and balance sheet, to the extent practicable along with change in basic and diluted
earnings per share. However, where retrospective restatement is not practicable for a particular period
then the circumstances that lead to the existence of that condition and the description of how and from
where the error is corrected are disclosed in Notes on Accounts.

y) Use of Estimates and Judgments

The preparation of the financial statements in conformity with Ind AS requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and
liabilities at the date of these financial statements and the reported amounts of revenues and expenses
for the years presented. Actual results may differ from these estimates under different assumptions and
conditions.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised and future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgments in
applying accounting policies that have the most significant effect on the amounts recognized in the
Standalone financial statements are elaborated in Note No. 4.

4A. CRITICAL ESTIMATES AND JUDGEMENTS IN APPLYING ACCOUNTING POLICIES

The preparation of financial statements in conformity with generally accepted accounting principles in India
requires management to make judgments, estimates and assumptions that affect the reported amount of
revenue, expenses, assets and liabilities and disclosure of contingent liabilities on the date of the financial
statements and the results of operations during the reporting year end. Although these estimates and
associated assumptions are based upon historical experiences and various other factors besides
management’s best knowledge of current events and actions, actual results could differ from these
estimates. The estimates and underlying assumptions are reviewed on a periodic basis. Any revision in the
accounting estimates is recognised in the period in which the results are known/ materialise.

Significant judgments and key sources of estimation in applying accounting policies are as follows:

a) Property, plant and equipment and useful life of property, plant and equipment and intangible assets

The carrying value of property, plant and equipment is arrived at by depreciating the assets over the useful
life of assets. The estimate of useful life is reviewed at the end of each financial year and changes are
accounted for prospectively.

b) Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance
with the applicable Ind AS.

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Where the effect of time value of money is material, provisions are
determined by discounting the expected future cash flows.

The Company has significant capital commitments in relation to various capita! projects which are not
recognized on the balance sheet.

In the normal course of business, contingent liabilities may arise from litigation and other claims against the
Company. Guarantees are also provided in the normal course of business. There are certain obligations
which management has concluded, based on all available facts and circumstances, are not probable of
payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and
disclosed in the notes but are not reflected as liabilities in the Standalone financial statements. Although
there can be no assurance regarding the final outcome of the legal proceedings in which the Company
involved, it is not expected that such contingencies will have a material effect on its financial position or
profitability (Refer Note 44).

c) Employee benefit expenses

Actuarial valuation for gratuity liability of the Company has been done by an independent actuarial valuer on
the basis of data provided by the Company and assumptions used by the actuary. The data so provided and
the assumptions used have been disclosed in the notes to accounts.

d) Taxes

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.

The Company has determined that it can recognise deferred tax assets on the tax losses carried forward as
it is probable that future taxable profit will be available against which the unused tax losses and unused tax
credits can be utilised. Further details on taxes are disclosed in Note No. 41.

e) Impairment of accounts receivable and advances

Trade receivables carry interest and are stated at their fair value as reduced by appropriate allowances for
expected credit losses. Individual trade receivables are written off when management deems them not to be
collectible. Impairment is recognised for the expected credit losses.

f) Discounting of Security deposit, retention money and other long-term liabilities

For majority of the security deposits received from suppliers of goods or contractors and the retention
moneys received, the timing of outflow, as mentioned in the underlying contracts, is not substantially long
enough to discount. The treatment would not provide any meaningful information and would have no material
impact on the Standalone financial statements.

g) Amortized Cost for Employee Loans

Employee loans have not been recorded using Effective Interest Rate method due to absence of any material
impact on Standalone financial statements and involvement of practical difficulties.

h) Investment in Equity Instruments

Investments made in equity instruments other than subsidiaries, joint ventures and in associates, have been
valued at fair value using the net asset value of the investee Companies as on the reporting date.

i) Restatement of Prior Period Items

Material prior period items, i.e. items having a value of above Rs. 5.00 Lac have been restated in the previous
year financials.

4B. 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,
2024, MCA has not notified any new standards or amendments to the existing standards applicable to the
Company.

In terms of our attached report of even date
For Mansaka Ravi & Associates

Chartered Accountants - ^ For afRton behalf of the Board of Directors of
Firm Reg. No.: 015023C Prostar n Info Systems Limited

(CARaviMansalfia) - s * Tapan(holfe^ Vikasngarwal

Partner Chairman & Managing Director Whole Time Director

Membership No. 410816 DIN:01719231 DIN: 01940262

v 0(

\ S'' \\9jA ^c4/ /^c°// ^x c

UDIN: 24410816BKCZMB5210 \\ *

Place: Navi Mumbai RamAgwwal Abhishek iain

Date: 26^th August, 2024 CEO & Whole Time Director Chief Financial Officer

DIN:0J739245 PAN -ACJPJ8591L

KiretJ-Mukadam
Company Secretary
M. No. A27627