2.U MATERIAL ACCOUNTING POLICIES INFORMATION_

2.1 STATEMENT OF COMPLIANCE_

(a) These fitnanciii! statements have been prepared in accordance with Indian Accounting Standards f'lnd AS'¹) as per the Companies (Indian accounting standard) Rules, 20L > as ainendcd and notified under .section 133 of the companies act 2013 (the “Act”) and other relevant provisions of the Act.

(b) Tfie aforesaid financial statements have beet) approved by the Board of Directots in the meeting held on May 25, 2024.

2.2 BASIS OF PREPARATION AND PRESENTATION _

(a) These financial statements have been prepared and presented on the accrual basis of accounting under historical post convention or fair values as per the requirement of Ind AS prescribed under section 135 of (he Act read with Rule 5 of the Companies (Indian Accounting Standards) Rules. 2015 as amended from time in time,

(b) Historical cost ss generally based on the fair value of the consideration given in exchange for goods and services.

(c) Fair value is the price that would he received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at die measurement date, regardless of whether chat price is directly observable or estimated using another valuation technique m estimating the fair value of an asset or a liability, the Company takes in to account the Characteristics of the asset nr liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date,

(d) Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind A3 102. leasing transactions that are within the scope of bid AS l Ki. and measurements that have some similarities to fair value but are rot fair value, such as ret realizable value, in Ind AS 2 or value in use in Ind AS 36.

(Ýe) In addition, for financial reporting purposes, fair value measurements arc categorized into level 1, 2, or 3 based on the degree in which the input# te the fair value measurements are observable and the significance of ihe inputs to the fair value measurement;; it) iLs entirely, which are described as follows.

* Lett e! ] inputs are quoted pritflHunadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

* Level 2 inputs are inputs, other than quoted prices included within level I that are observable for the asset or liability, cither directly or indirectly,

* Level 3 inputs are unobservable inputs for the asset or liability,

(ft Ail assets and labilities have been, classified as current or non-current as per the Company’s normal operating cycle or i2 months or other criteria as set out in the Schedule III to ihe L ompauies Act 2013; Rased on ihe nature of its business, the Company has ascertained its operating cycle to be 12 months Ibr the purpose of current anti non-current classification of assets and liabilities.

2.3 REVENUE RECOGNITION_

(a) Revenue is recognized to the extent that it is probable that the ce on oil lie benefits will How to the company rind the revenue can he reliably measured.

(bj Revenue towards satisfaction of a performance obligation is measured at the amount of transactions price (net of variable consideration) allocated to that performance obligation. The transaction price of goods and services rendered is net of variable consideration on account of various discounts, rebate, returns etc.

(c) The following specific recognition criteria must also be met before revenue is recognized.

Sales of Rood s

Revenue from sale of goods is recognised at the point in time when control of the asset is transferred to the customer, generally on delivery of the equipment. "Ihe normal credit term is 30 to 90 days upon delivery.

Hit' Company considers whether there are other promises in the contract thaL are separate performance obligations to which ft portion of Lhe transaction price reeds to be allocated fe.g,. warranties, customer loyalty points}, In detemiifling the transaction price for the sale of equipment, the Company considers the effects of variable consideration, the existence of significant financing components, noncash consideration, and consideration payable to the customer ti t' any).

(i) Variable consideration

IJ'Lhe consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer, file variably consideration is estimate*! al conLrac! inception and constrained until it is highly probable that a significant revenue reversal in the amount of eunmljlive revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Sonic contracts for the sale of electronic equipment provide customers with a right of return the goods wiihin a specified period. The Group also provides retrospective volume rebates to certain customers once the quantity of electronic equipment purchased during (he period exceeds the threshold specified in the contract. I he rights of return and volume rebEitcs give rise to variable consideration.

* Rights of return

The Group uses the expected value method to estimate the variable consideration given the large number of contracts that have similar character is ties. The Group then applies the requirements on constraining estimates of variable eons i deration in order to determine the amount of variable con side ml ion that can be included in the transaction price. A refund l lability is recognized for the goods that are expected to he returned (i.e., the amount not in eluded in the transaction price). A right of return Eisset fund corresponding adjustment to cost of sales) is ttiso recognised for the right to recover the goods from a customer.

* Volume rebates

The Group applies the tnosl likely amount method or the expected value method to estimate the variable consideration in the contract. The selected method that best predicts the amount of variable consideration is primarily driven by the number of volume thresholds contained in ihe contract. The unosi likely amount is used for itiose cot)tracts with a single volume threshold, while ihe expected value method is used for those with more than one volume threshold, The Group then applies (be requirements on constraining estimates in order to determine (lie amount of variable consideration that can be included in the trail sac r ion price and recognised as revenue, A refund liability is recognised for Ihe expected future rebates (i.e., the amount not included in the transaclion price).

Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and tbe applicable interest rate. Interest income is included under the head "other income" in the statement bf profit and loss.

l>ivi(h-itd Income

Dividend income is recognized when the company's right to receive dividend is established by the reporting date.

Windmill energy Income

Consideration for electricity generated by the windmill division and fed into tire slate power grid is recoil ed in the form of credit in the manufacturing dit is inn's power biil. Credits are recognised as income net of wire e ling charges. Income so recognised is shown separately from the power cost under other operating revenue.

Other income is recognized on accrual basis provided that it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably.

,4 PROPERTY, PLANT AND EQUIPMENT_

The cost of property, plant and equipment comprises its purchase price, any import duties and other taxes (other than those subsequently recoverable from the lax (authorities), ary directly attributable expenditure on making the as sc l ready for its ml ended use, including relevant borrowing costs for quali lying assets and any expected costs of' decommissioning, net of any trade discounts und rebates. Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs and maintenance, are charged to the Statement of profit and hiss in the period in which the costs arc iueuiTed unless such expenditure results in a significant increase in the future benefits of the concerned asset.

An item of property, plant and equipment is derecognized upon disposal or on retirement, when no future ceonomic benefits Eire expected to arise From the continued use of the asset. Any giiin or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the net sale proceeds and rhe carrying amount of the asset and is recognized in statement of profit and loss.

Property! plant and equipment are stated in die balance sheet at cost less accumulated depreciation and accumulated impairment losses, if any.

file company hats elected to continue with the carrying value tor all of its property, plant and equipment as recognized in tip financial statements as at ihe date of man si [inn to !md AS t.e. I Apri|-20Lfe, measured as per the previous GAAP and use that ass its deemed cost as ill the dale of Iran sit ion.

Depreciation commences when the assets ate ready for their intended use. Depreciable a mount for assets is the tost of an asset, or other amount substituted lor cost, less its estimated residual value. Depreciation is recognized so as us write oil the cost of assets (other than properties under construction) less their residua! vaiitcs over their useful lives, using straight-lire method as per the useful life prescribed in schedule II to the companies Act, 20)3. In respect of addition; to property, plant and equipment, depreciation has been charged on pro rata basis.

The company reviews the residua! value, useful lives and depreciation method annually and. if current estimates differ from previous estimates, the change is accounted for as a change in accounting estimate on a prospective basis.

is capital, work in progress--

is) Asset during constriction is capitalized in the assets under capital work in progress account. At the point when an asset is operating at manage want's intended use, the cost of construction is transferred to the appropriate category of property, plant and equipment and depreciation on that asset will be commenced.

2.6 INTANG1RLE ASSETS _

(a) In tangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recogn ized on a Straight-line basis over their estimated useful lives. The esii mated useful life and amortization method are reviewed at the end of each reporting period, with ihe effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives iluii arc acquired separately arc carried al cos! less accumulated impairment losses,

fb) An item of intangible assets is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on Derecognition of the asset is included in the statement of profit or loss when the asset is derecognized.

(o) Intangible Assets amortized as follows:

Ý (.’ompiiter Software is amortized over the useful life estimated by the managcrncul over a period of 5 years.

2.1 IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS -

fa) At the end of each reporting period, the company reviews the carrying amounts of hs tangible and intangible assets to determine whether there is tiny indication that those assets have suffered an impainnent loss. If any sueh indication: exists, (lit: recoverable amount of the asset is estimated in order to determine die extent of the impairment loss (if <my| Where ii is not possible to estimate the recoverable amount of individual assets, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate asseis ate also allocated to individual cash-generating units, or otherwise they are all^aled to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

(b) Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired;

(c) Iteeoverable amount is (he higher oflair value less costs to sell and value in use.In assessing value in use, the estimated future cash flows arc discounted to their present: value using pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset tor which the estimates of future cash flows have not been adjusted,

(d) If the recoverali I e amount of an asset (or cash-generating unii > is estimated to be less than ip¹ carrying amount, the carrying amount of the asset (or cash- generating unit) is reduced to its recoverable amount. An impairment toss is recognized immediately in the statement of Profit and Loss, unless the relevant asset is carried at a revalued amount, in w hich case [he impairment loss is treated as a revaluation decrease.

fej Any reversal of ihe prei io|j$lv recognized impairment lo$j ip limited to the extent lhat the asset's carrying amount dees riot exceed the carrying amount that would have been determined if nil impairment In--* had previously been recognized

2.S LEASES -

The company assesses at contract inception whether ;i contract is, or oontahis, a lease. That is, IT the contract eonveys the rjjdit to control the use of an identified asset tor a period of time in exchange for consideration-

Where the company is lessee

Company's leased assets comprise of lands. The company applies a single recognition and measurement approach for alt leases, except for short-term teases and leases of tow- value assets. The company recognises tease liabilities to make ietise payment and right- of-use assure representing the rigln 10 use the underlying assets.

Right.at.HS* assets

The company recognises rtglu-of-usc assets al (he commencement date of the lease (i.e,, the date the underlying asset :s available for use), Righl-of-tree assets are measured at cost. less any accumulated depreciation and imp airmen! losses, and adjusted for any renieasureiiient of lease liabilities. The eosi of ri a In -of-use assets includes the amount of lease liabilities recognized. initLi] direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term and the estimated useful lives of the assets, the right-oi-u&e assets are also subject to impairment. Refer to the accounting policies in section F Impairment of property, plant and equipment and intangible assets.

Lease I in h links

At the eoiiiEiiettceiiieni dale of the lease, the company recogt)ises tease liabilities measured til the present value of lease payments in be made over the lease term. The tease pay men ts in c lade fixed payments {including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees! The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the company and payments of penalties for terminating the lease, if the lease term reflects the company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised u,s expenses {unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs,

In calculating (be present value of lease payments, the company uses its incremental borrowing rate al die lease commencement date because the interest rale implicit in the lease is not readily determinable. After the commencement dale, the amount of lease liabilities is increased fo reflect the accretion of interest and reduced for the leti.se payments made; In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a charge m the lease payments te.g,, charges to future payments resulting from a change in an index or rate used fo detenuine such lease payments) or a change in the assessment of an option to purchase the underlying assci,

Short-term leases and leases of low-value assets

The Company applies the short-term least recognition exemption Lo us short-term leases (i.e„ those leases that have a lease term of 12 months or less from the commencement dale with no option for extension and do not contain a purchase option). It also applies the least of low-val^ assets recognition exemption to leases that arc considered to be low value, Lease payments on short-term lenses and lenses oftow-value assets arc recognised as expense on a straight-line basis over die lease term.

Comp any ns Lessor

Tenses in which the company does not transfer substantially all the risks and rewards incidental to ownership of an asset are Classified as operating lenses. Renta t income arising is accounted for on ft straight-line basis over the lease terms and is iitc luded in other income in the statement of profit or loss. Initial direct costs incurred in negotiating and arranging an operating lease arc added fo the carrying amount of the leased asset and recognised over the lease form on the same basis as rental income.

1.9 INVENTORIES_

(u) Inventories are stated at lower of cost and net readable value'. Cost comprises of purchase price, applicable taxes, less rebates, discounts and conversion costs and olhcT costs incurred ill bringing the inventories in to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of bitsiness less the estimated costs of completion and the estimated costs necessary lo make the sale, fb) Stoves and spares which do not meet the definition of property, plant anti equipment are accounted as inventories,

(e) In vent ttries are valued at

2.10 EMPLOYEE BENEFITS -

(aj In respect of defined contribution plan ihe COlfflTflUV makes, the stipulated contributions- to provident fund and petition fund, in respect of employees to the respective authorities under which the liability of the company is limited to the extent of the contribution.

(b) The liability for gratuity, considered as defined benefit, is determined actuarially using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period Rc-measurement, comprising actuarial gains and losses, the effect of the changes 10 [he asset ceiling $£ applicable) and the return on

plan assets (excluding interest), is reflected immediately in the statement of financial position with a charge or credit

recognized in ^thcrea^tchcnsivt; income- in the period in which they occur. Rc-measure men! recognized in other comprehensive income is reflected immediately in retnined earnings and will not be reclassified to profit or loss. Past service Cost is recognized in period of a plan amendment. Net inLerest is calculated by applying die discount rate at ihe beginning of the period to the net defined benefit liability or asset. Delined benefit costs me categorized sis follows:

* Service cost (including current service cost, past service cost, as well as gains and losses on curtail men ts and settlements);

' Net interest expense or income: and

* Re- measure m ent,

(c) I he Company presents the first two com pone ms of defined benefit costs in profit or lose in the line item ‘Employee benefits expenses’. Curtailment gains and losses are accounted for as past service costs.

(d) The retirement benefit obligation recognized in the statement of financial position represents the actual deficit or surplus indie Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future ccnitri but ions to the plans.

(e) A liability tor a termination benefit is recognized at the earlier of when the entity cart no longer withdraw the offer of the termination benefit and when the entity recognizes any related restructuring costs.

(f) A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave ant! sick leave iit the period the related service is rendered at the undiseounted amotmi of the benefits expected to be paid in exchange for that service. Liabilities recognized in respect of short-term employee benefits arc measured at the undi scour led amount of the benefits expected to be paid in exchange for the related service.

2.11 TAXATION _

(a) Ineome lax expense represents the sum of the tax currently payable and deferred tax.

Current Tax

(b) Current Tax is the amount of tax payable based on the taxable profit for the year as determined in accordance with the applicable tax rates and the provisions of the India [rcome Tax Act, 1961.

151; furred Tax

(c) Deferred lax is recognized on temporary differences between the carrying amounts of assets and liabilities in live financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities arc generally recognized for all taxable temporary differences. Deterred tax assets are generally recognized for till deductible temporary differences to the exieut that it is probable that taxable profits will he Available against which those deductible temporary dilfererices can be utilized, Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition of assets and liabilities Iii a transaction that affects neither the taxable profil nor the accounting profit.

(d^t The carrying amount of deferred tax assets is reviewed at the end of each annual report! ng period and reduced to the extent that if is no longer probable that .sufficient 1 ax able profits wilt be available to allow all or part of the asset to be recovered,

(e) Deferred tax assets and liabi lilies are measured at the tax rates that are expected 10 apply in the period in which the liability is settled or the asset realized, based or tax rates (and tax laws) that have been enacted or substantivety enacted by (he end of the reporting period.

(f) Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against Current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

(g) Current and deferred tux are recognized in the statement of profit and loss, except when they are related to item that are recognized in other comprehensive income or directly in equity: in which ease, the current and deferred tax are also recognized in other comprehensive income ur directly in equity respeetnc!y.

(h) Minimum Alternate tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in rhe form of adjustment to future income tax liability, is considered us an asset if there ts convincing evidence lhat the company will pay normal income tax, Accordingly, MAT is recognizedasi an as^et in the Balance Sheet when ii is highly probable that future economic benefit associated with it will flow lo the Company.

2,12 Foreign currencies_

fa) The functional currency of the Company is do term i Tied based on ihe primary economic environment in which il operates, Phe functional currency of the Company is Indian National Rupee 11 MR).

(t>) The tran sac lions in currencies other (tan Ihe entity’s functional currency I Foreign currencies) are recognized at (he rates of exchange prevailing ur the dates oT the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-inonctary items earned at fair value that are denominated in foreign currencies are retranslated at the rales pret ailing at Ihe date when the fair value teas determined, Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated,

(c) Exchange di Fferenees on monetary items arc recognized in statement of Profit and Loss in the period in which (hey arise except for;

* Exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are incl tided in the cost of (hose assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings;

* Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor lilcely !t> occur (therefore forming part of Ihe net investment in ihe foreign operation), which are recognized initially in other comprehensive income and reel us si lied from equity to statement of Profit and Loss on repayment of the monetary items.