The valuation for the investment property has been performed by the management of the Company except for one property for which the Company has obtained valuation from an independent valuer that is not a registered valuer as defined under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

In respect of flats, the fair valuation is derived by direct sales cost comparison method by comparing recent sale or available listing of similar property in the surrounding area of the property on the date of valuation. In respect of freehold land, the Company has referred to the publications, government website, including direct sales cost comparison method. In respect of building, the fair valuation is derived by Depreciated Replacement Cost (DRC) method.

Inter corporate deposits (ICD) to related parties are secured by the Global Letter of Support provided by the Ultimate Holding Company and are given to fellow subsidiaries for the purpose of meeting their working capital requirements and for general corporate purposes and in accordance with terms and conditions of respective agreements which carry interest rates in the range of 5.98% to 8.10%. The total non-current and current inter corporate deposits to related parties constitute 99% (2023: 99%) of the total loans given by the Company. ICDs given to Siemens Financial Services Pvt. Ltd. (SFSPL) is with an understanding that SFSPL will also provide financing to Company's customers.

Inter corporate deposits (ICD) to related parties are secured by the Global Letter of Support provided by the Ultimate Holding Company and are given to fellow subsidiaries for the purpose of meeting their working capital requirements and for general corporate purposes and in accordance with terms and conditions of respective agreements which carry interest rates in the range of 5.98% to 8.10%. The total non-current and current inter corporate deposits to related parties constitute 99% (2023: 99%) of the total loans given by the Company. ICDs given to Siemens Financial Services Pvt. Ltd. (SFSPL) is with an understanding that SFSPL will also provide financing to Company's customers.

a) Shares held by Ultimate Holding Company and its subsidiaries :

64,101,646 (2023: Nil) equity shares of ' 2 each, fully paid-up, are held by Siemens Aktiengesellschaft, Ultimate Holding Company.

169,882,943 (2023: 169,882,943) equity shares of ' 2 each, fully paid-up, are held by Siemens International Holding B.V., Subsidiary of Ultimate Holding Company.

11,738,108 (2023: 11,738,108) equity shares of ' 2 each, fully paid-up, are held by Siemens Metals Technologies Vermogensverwaltungs GmbH, Subsidiary of Ultimate Holding Company.

e) Terms / rights attached to equity shares :

The Company has only one class of equity shares having a par value of ' 2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

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

23 Other equity

Movement of each item of other equity is presented in Standalone Statement of Changes in Equity.

Nature and purpose of reserve

a) Capital reserve was created on account of merger of group companies in earlier years.

b) Amalgamation reserve was created on account of amalgamation of Siemens VDO Automotive Ltd. in 2006.

c) Capital redemption reserve was created on account of business combination under common control.

d) Securities premium account represents the surplus of proceeds received over the face value of shares, at the time of issue of shares.

e) General reserve is created out of profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up shares. As General reserve is created by transfer on one component of equity to another and is not an item of other comprehensive income, items included in the General reserve will not be subsequently reclassified to statement of profit and loss.

f) Cash flow hedge reserve represents changes in the effective portion of fair value of derivative contracts that are designated as cash flow hedges.

g) Stock awards reserve respresents the grant date fair value of equity-settled share-based payments provided to employees.

h) Retained earnings are the profits that the Company has earned till date, less any transfers to General reserve and payment of dividend.

The above reserves will be utilised in accordance with the provision of the Companies Act, 2013.

Disclosure relating to Provisions Provision for warranty

Warranty costs are provided based on a technical estimate of the costs required to be incurred for repairs, replacement, material cost, servicing and past experience in respect of warranty costs. It is expected that this expenditure will be incurred over the contractual warranty and post warranty period.

Provision for loss orders

A provision for expected loss on project contracts is recognised when it is probable that the contract costs will exceed total contract revenue. For all other contracts loss order provisions are made when the unavoidable costs of meeting the obligation under the contract exceed the currently estimated economic benefits.

Provision for other matters

The Company has made provisions for known contractual risks, litigation cases and pending assessments in respect of taxes, duties and other levies, the outflow of which would depend on the conclusion of the respective events.

(a) Revenue outside India includes revenue to Germany ' 13,908 (2023: ' 12,535) other European countries ' 5,558 (2023: ' 4,683), Asia excluding India ' 9,156 (2023: ' 7,289), Other countries ' 3,446 (2023: ' 3,161)

(b) Non-current assets excludes financial assets, deferred tax assets and income tax assets and is based on area of physical location of non-current assets.

# From 1 October 2023, there has been a reorganisation in Digital Industries segment, due to which the Low Voltage Motors business is reported under Portfolio Companies segment. Accordingly, the comparative figures for the previous periods have been restated.

46 (iii) Other disclosures

- The Chief Operating Decision Maker ("CODM") evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by operating segments. The CODM reviews revenue and profit from operations as the performance indicators for all of the operating segments. The Chief Executive Officer and Chief Financial Officer are the CODM of the Company.

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

- Other income, interest income and finance costs are not allocated to individual segments as the underlying instruments are managed on a Company basis.

- Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to individual segments as they are also managed on a Company basis.

- Capital expenditure consists of additions of property, plant and equipment, intangible assets, right-of-use assets and capital work-in-progress including assets acquired from the acquisition of businesses.

- Profits / losses on inter-segment transactions are eliminated at the Company level.

(iv) Segment information

The business of the Company is divided into five segments. These segments are the basis for management control

and hence, form the basis for reporting. The business of each segment comprises of :

- Energy : - Provides fully integrated products, solutions and services across the energy value chain of oil and gas production, power generation and transmission for various customers such as utilities, independent power producers and engineering, procurement and construction (EPC) companies.

- Smart Infrastructure : - Supplier of products, systems, solutions and services for transmission and distribution of electrical energy for power utilities, industrial companies and infrastructure segments. Portfolio covers systems for low and medium voltage distribution, solutions for smart grids and energy automation, low voltage power supply systems, provides intelligent and connected infrastructure for grids and buildings.

- Mobility : - Supplier of solutions for passenger and freight transportation - including rail vehicles, rail automation systems, rail electrification systems, turnkey systems as well as related services.

- Digital Industries : - Provides products for automation and digitalization of discrete, hybrid and process industries, supporting their digital transformation in order to become more sustainable. Its portfolio consists of industrial software and automation and drive technology products (for optimizing manufacturing value chain, covering product design, production planning, engineering, execution and customer services).

- Portfolio Companies : - Supplier of products and services of low-voltage motors.

- Others :- Services provided to other group companies and lease rentals have been classified as "Others".

Allocation of common costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to

the total common costs.

Unallocated corporate items

Unallocated items include general corporate assets and liabilities which are not allocated to any business segment.

i) The Company has an intercompany clearing and settlement agreement with Siemens AG (Ultimate Holding Company). Under this arrangement, receipts on account of sales of goods and services to and payments on account of purchase of goods and services from various fellow subsidiaries, which are part of non-money transfer obligation are carried out via Ultimate Holding Company, based on instructions from the respective counter parties.

ii) For transactions covered under share based payment plan refer note 58.

iii) All transactions entered into with related parties defined under the Companies Act, 2013 during the financial year, were on arm's length pricing basis and the Company has undertaken necessary steps to comply with the Transfer Pricing regulations under the Income tax Act, 1961.

iv) There are no loans or advances in nature of loans granted to promoters, directors or key managerial personnel.

v) The dividend paid inlcudes payment made to Immediate parent and parties with significant influence.

48 Disclosure pursuant to Indian Accounting Standard 19 'Employee Benefits'

(i) Defined Contribution Plans

Amount of ' 218 (2023: ' 209) is recognised as an expense and included in "Employee benefits expense" (refer note 37) in the statement of profit and loss.

b) The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting 30 Septemeber 2024 and the method of assumption used in preparing sensitivity analysis did not change compared to previous year.

c) The funds formed by the Company manages the investments of the gratuity and provident fund. Expected rate of return on investments is determined based on the assessment made by the Company at the beginning of the year on the return expected on its existing portfolio, along with the estimated incremental investments to be made during the year. Yield on portfolio is calculated based on a suitable mark-up over the benchmark Government securities of similar maturities. The Company expects to contribute ' 376 (2023: ' 313) to gratuity fund in year ending 30 September 2025.

The investment strategy in respect of its funded plans is implemented within the framework of the applicable statutory requirements. Each year, the Board of Trustees reviews the level of funding in the gratuity plan and provident fund. Such a review includes the asset liability matching strategy and investment risk management policy. The Board of Trustees decides its contribution based on the results of this annual review. Generally it aims to have a portfolio mix of equity instruments and debt instruments to minimize the risk exposed to investment.

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

(iii) General descriptions of significant defined plans

I Gratuity Plan

Gratuity is payable to all eligible employees of the Company on separation, superannuation, death and permanent disablement, in terms of the provisions of the Payment of Gratuity Act, 1972 or as per the Company's Scheme whichever is more beneficial. Under the Payment of Gratuity Act, 1972, employee who has completed five years of service is entitled to the benefit. The level of benefits provided depends on the member's length of service and last drawn salary.

II Medical

Post retirement medical benefit is paid to the retired employees and their spouse till their survival and after their death, benefits are available to the employee's spouse. It consists of 3 components, which is health insurance, domiciliary medical allowance and Company support in case the expenses incurred are more than the health insurance coverage subject to the ceiling limit as per the grades and Company's policy.

III Pension

Pension is paid to management cadre employees of the Company, who retired before March 1998. Pension is paid on monthly basis. In case of death in retirement,100% pension is paid to the spouse for first six months and then 60% thereafter.

IV Retirement Gift

Retirement gift is paid, as a token of appreciation to the permanent employees who are separating on their retirement or after their long association with the Company.

V Provident fund

Provident fund is a mandatory retirement benefit in India. Both, the Company and the employees of the Company, contribute 12% of applicable salary every month which accumulates with interest, as declared by the Government (EPFO rate). The Guidance note issued by the Institute of Actuaries of India states that benefits involving employer established provident funds, which require interest shortfalls to be recompensed are to be considered as defined benefit plans.

The above plans expose the Company to actuarial risks such as interest rate risk, salary inflation risk, demographic risk and medical inflation risk and EPFO return risk.

(i) Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase

(ii) Salary Inflation risk : Higher than expected increases in salary will increase the defined benefit obligation

(iii) Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

(iv) Medical Inflation risk : Higher than expected increase in premium can lead to increase in defined benefit obligation. Although, this risk is mitigated by capping the benefit paid by the insurance company (limiting the premium amount for the company).

(v) EPFO return risk : Higher the EPFO declared return, the expected shortfall increases if actual fund return continues to be on the lower side which increase the defined benefit obligation.

For the purpose of the Company's capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company's objectives are 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 maximise the shareholder's value. The Company funds its operations through internal accruals. The management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

The carrying amounts of financial instruments such as cash and cash equivalents, other bank balances, current inter-corporate deposits, current trade receivables, current trade payables, current security deposits and other current financial assets and liabilities are considered to approximate their fair values due to their short term nature. The fair values and carrying values of non-current inter-corporate deposits, non-current trade receivables, non-current security deposits, other non-current financial assets, non-current trade payables and other noncurrent financial liabilities are also materially the same as its carrying value.

The Company's principal financial liabilities comprise of trade payable, security deposits, lease liabilities and other financial liabilities. The Company's principal financial assets include trade receivables, cash and cash equivalents, bank balances, inter-corporate deposits and other financial assets that arise from its operations. The Company also enters into hedging transactions to cover foreign exchange exposure and commodity risk.

The Company's operating business is exposed to market risk, credit risk and liquidity risk. In order to optimize the allocation of the financial resources across the segments, as well as to achieve its objectives, the Company identifies, analyzes and manages the associated market risks. The Company seeks to manage and control these risks primarily through its regular operating activities and uses derivative financial instruments when deemed appropriate. All derivative activities for risk management purposes are carried out by teams that have the appropriate skills, experience and supervision. The Company has a Risk Management Committee, which ensures that the Company's financial risk-taking activities are governed by appropriate policies and procedures and that financial risks are identified, measured and mitigated in accordance with the Company's policies and overall risk appetite.

A Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency rate risk and interest rate risk. Financial instrument affected by market risks includes deposits, derivative financial instruments, trade receivables, trade payables and other financial assets and liabilities.

Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cashflows of a financial instrument will fluctuate because of changes on foreign exchange rate. The Company operates internationally and transacts in several currencies and has foreign currency trade receivables and trade payables. Hence, the Company is exposed to foreign exchange risk. The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

Foreign currency sensitivity

The following table demonstrate the sensitivity to a reasonably possible change in major currencies like US Dollar and Euro with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabilities including foreign currency derivatives. The Company's exposure to foreign currency changes for all other currencies is not material.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Consequently, this could have unforeseen impact on Company's returns thus impacting the profit and loss.

The Company does not have any borrowings. Surplus funds are invested in deposits with banks and inter corporate deposits with related parties at fixed interest rates. The tenure of the deposits is managed to match with the liquidity profile of the Company.

The Company's exposure to price risk of copper, aluminium and silver ('the Commodities') arise from purchases related to these commodities. The prices of the commodities are linked to London Metal Exchange (LME) benchmark prices. Accordingly, the Commodities are subject to price volatility on LME. The Company takes Buy position on MCX by entering into Commodity Future Contracts to hedge the price risk related to the future forecasted purchase of the Commodities. The Company also enters into Sell contracts on MCX to hedge the price risk on account of timing difference in invoicing and procurement in contracts related to future forecasted purchases of copper. The Company presents a net position for copper contracts on the reporting date, as the Company has a legally enforceable right and intends to offset the Buy and Sell contracts.

Forecasted purchase of the Commodities results in exposure to commodity price risk due to the volatility of commodity prices on LME, thereby affecting the profitability and financial position of the Company. The risk management strategy is to use the Buy future contracts on MCX, where the prices are linked to LME to hedge at least 75% of the estimated cash flows from future forecasted purchases. These contracts are not designated in a hedging relationship, and subsequent changes in fair value are recognised in profit and loss.

B Credit risk

Credit risk is defined as an potential loss in financial instruments if the counter party is failing to discharge its obligations in full and on time. The Company is exposed to credit risk from its operating and investing activities like trade receivables, cash and cash equivalents, contract assets, deposits with banks, inter corporate deposits with related parties, foreign exchange and derivative transactions and other financial instruments. There are no loans or other financial assets at 30 September 2024 and 30 September 2023, which have significant increase in credit risk or which are credit impaired, other than those disclosed in the financial statements.

Receivables

The major exposure to credit risk at the reporting date is primarily from receivables comprising of trade receivables and contract assets. Credit risk on receivables and contract assets is limited due to the Company's large and diverse customer base which includes public sector enterprises, state owned companies, private corporate and related parties. The effective monitoring and controlling of credit risk through credit evaluations and ratings is a core competency of the Company's risk management system. There is no single customer who contributes more than 10% of the total revenue or trade receivable balance for the year ended and as at 30 September 2024.

In respect of trade receivables and contract assets, the Company follows a simplified approach wherein an amount equal to lifetime expected credit loss (ECL) is measured and recognised as impairment allowance. During the previous period, the ECL was calculated considering rating and default probability percentage arrived from the historic default trend specific to a customer. During the current year, the Company has computed ECL allowance based on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. This change did not have a material impact on the profit for the year ended 30 September 2024.

The Company follows provisioning norms based on the roll rate method to estimate the impairment allowance under ECL. As the risk profiles of the receivables is diverse, the Company further categorises receivables due from various segments into Government and Private sector for deriving the rates for provision matrix. Further, the Company has assessed credit risk on an individual basis in respect of certain customers in case of event driven situation such as litigations, disputes, change in customer's credit risk history, specific provision are made after evaluating the relevant facts and expected recovery and provides customer specific allowance.

Other financial assets

Credit risk from cash and cash equivalents, deposits with banks and inter corporate deposits with related parties and derivative financial instruments is managed by the Company's treasury department in accordance with the Company's policy. Credit risk related to cash and cash equivalent, deposit with banks and other bank balances is managed by having transactions with highly rated banks and inter corporate deposits with related parties are secured by guarantee from the Ultimate Holding Company. Management does not expect any losses from non-performance by these counterparties and the risk of default is considered low or insignificant. Investments of surplus funds, temporarily, are made only with approved counter parties and within credit limits assigned to each counterparty. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

The Company's principal sources of liquidity are cash and cash equivalents, bank balances and the cash flow that is generated from operations. The Company regularly monitors the rolling forecasts and actual cashflows, to ensure it has sufficient funds to meet the operational needs. There is one supplier having an outstanding amount of more than 10% of the total trade payable balance as at 30 September 2024 and 30 September 2023.

Notes :

i) Shareholders' equity : Equity share capital and Other equity.

ii) Earnings available for debt service comprises of Profit for the year (a) Non-cash operating expenses like depreciation and amortisation (b) Finance costs.

iii) Debt service comprises of interest and principal lease payments.

iv) Cost of goods sold comprises of (a) Cost of materials consumed (b) Purchases of Stock-in-Trade (c) Changes in inventories of finished goods, work-in-progress and stock-in-trade (d) Project bought outs and other direct costs.

v) Net credit purchases comprises of (a) cost of goods sold and (b) Other expenses excluding bad debts, impairment allowance on financial and contract assets, exchange loss / (gain), commodity derivatives (gains) / loss, rates and taxes, commission to directors, donations and corporate social responsibility expenditure.

vi) Working Capital is current assets less current liabilities.

vii) Capital employed comprises of total shareholders' equity and total debt i.e. lease liabilities.

** The Company does not have any borrowings. Debt Service coverage ratio and Debt Equity ratio has been computed basis lease liabilities as per Guidance note on Schedule III issued by the Institute of Chartered Accountants of India.

53 Relationship with Struck off Companies

The Company has no transactions during the current and previous year and no balances outstanding with struck off companies.

54 Business Combination Summary of acquisition

During the previous year, on 1 July 2023, the Company had acquired Electric Vehicle division of Mass-Tech Controls Pvt. Ltd. for a cash consideration of ' 380, including a holdback of ' 5 payable after 1 year from the date of acquisition, subject to adjustments mutually agreed between the parties to the transaction. Mass-tech are manufacturers of DC UPS comprising of Battery Charging Equipments, DC distribution boards, DC-DC converters, polarization rectifiers, cathodic protection, LV switchgear panels and allied equipments. The Company's acquisition of the EV charging business primarily focuses on growth strategy into the quickly expanding EV market in India.

Goodwill is primarily attributable to overall synergies from future expected economic benefits, including enhanced revenue growth from expanded capabilities and geographic presence. Goodwill is not tax deductible. The fair value of assets and liabilities have been determined in accordance with IND AS 103 "Business Combinations". The Purchase price has been allocated to the assets acquired and liabilities assumed based on the estimated fair value at the acquisition date. The excess of purchase price over the fair value of the net assets acquired is allocated to goodwill. During the current year, the Company completed the purchase price allocation. The fair value of net identifiable assets acquired has been finalised at ' 146 after measurement period adjustments mainly due to revision in fair valuation of intangible assets and inventories. Accordingly, goodwill of ' 222 has been recognised which has been allocated to the Smart Infrastructure segment.

Intangible assets consisting of customer relationships, technology, customer contracts have been recognized and are valued using the multi-period excess earnings method ("MEEM"), or the relief from royalty ("RFR") method, both of which are forms of the income approach. Under MEEM method, the fair value is estimated as the present value of the benefits anticipated from ownership of the subject intangible asset in excess of the returns required on the investment in the contributory assets necessary to realise those benefits. Technology is valued using RFR method. The RFR-method assumes that the intangible asset has a fair value based on royalty income attributable to it. This royalty income represents the cost savings of the owner of the asset - the owner does not have to pay royalties to a third party for the license to use the intangible asset. Assembled workforce (though not recognised) are valued using the cost approach. Under this method, the costs associated with employee recruitment, selection and training provide a measurement of value. As per IND AS 103, assembled workforce is not recognized as an Intangible asset and forms part of Goodwill. However, fair value is calculated in order to determine Contributory asset charge for valuation of other Intangibles. The amounts allocated to intangible assets are as follows :

If the acquisition had occurred at the beginning of the previous year, the Company's revenue from operations and profit after tax for the year ended 30 September 2023 would have been ' 180,040 million and ' 19,144 million respectively.

55 Derivative Instruments

a) Forward Contracts

The Company uses forward contracts to mitigate its risks associated with foreign currency fluctuations having underlying transaction and relating to firm commitments or highly probable forecasted transactions. The Company does not enter into any forward contract which is intended for trading or speculative purposes. The forward exchange contracts are recognised at fair value at each reporting date with the resultant gains/ losses thereon being recorded in the statement of profit and loss.

The details of forward contracts outstanding at the year end is as follows which are not designated in a cash flow hedge relationship (Continued)

As per the qualitative and quantitative hedge effectiveness assessment performed by the Company atleast on quarterly basis, the cash flow hedges are effective considering that the hedge ratio of the hedging instrument and the hedged item is the same. Accordingly, the gains / (losses) on hedge instrument (forex forward contracts) fully offsets the gains / (losses) on hedged item (highly probable future forecasted revenue and purchase transactions). These contracts typically have a maturity period of 1-36 months. The effective portion of the gains / (losses) are re-cycled from the cash flow hedge reserve to Revenue from operations and expenses in the same period when the hedged item is recognised in Profit and Loss.

In case of USD and EUR currencies, the Company has entered into foreign currency forward contracts and accordingly, the unhedged amounts related to USD and EUR currencies are insignificant.

The forward contracts have been converted in Indian rupees, at the spot rates, as at 30 September to facilitate reading purposes only.

The Company has a policy of hedging its net foreign currency exposure at a project level.

d) Embedded Derivative

The Company recognizes embedded derivatives in respect of revenue contracts where the currency of the contract is not denominated in the functional currency of the Company or the customer. The embedded derivative element in the revenue contract is separated from the host contract and accounted for separately. As on 30 September 2024, the Company has recognized embedded derivative asset of ' 211 (2023: ' 41) and embedded derivative liability of ' 182 (2023: ' 281), which will be ultimately derecognised on the initial recognition of the receivable.

58 Share-based payment transactions

Share matching plan (SMP) and Siemens Stock Awards (SSA) are classified as equity-settled transactions. The employees of the Company are eligible for the Ultimate Holding Company's share awards, i.e. SMP and SSA. Under SMP the employee may invest a specified part of their compensation in the Ultimate Holding Company's shares, and at the end of 3 years (vesting period), employee receives one free share for every three shares purchased.

Under SSA, the Company grants stock awards of the Ultimate Holding Company's shares to the Senior management and other eligible employees. SSA includes two schemes that have a vesting period upto 4 years. Under Special Allocation Stock Awards, the shares are awarded to reward the performance of the employee. Under Performance Oriented Siemens Stock Awards (PoSSA), these awards vest on the achievement of the performance criteria of Ultimate Holding Company.

Stock awards entitle the employees to Ultimate Holding Company's shares without payment of consideration at the end of the respective vesting period. Fair value is measured at grant date and is recognised as an expense over the vesting period. Fair value is determined taking into consideration the price of the underlying shares of the Ultimate Holding Company, dividends during the vesting period, market and non-vesting conditions, as applicable.

At the end of each reporting period, the Company remeasures the fair value of the liability (payable to the Ultimate Holding Company) at the market price of the Ultimate Holding Company's share, with a corresponding adjustment to equity.

59 The Board of Directors of the Company, at its meeting held on 14 May 2024, basis the recommendations of the Audit Committee and Committee of Independent Directors, approved a scheme of arrangement amongst the Company, Siemens Energy India Ltd. ("SEIL") (a wholly owned subsidiary of the Company, which was incorporated on 7 February 2024) and their respective shareholders and creditors, providing for the demerger of the Company's Energy Business to SEIL ("Proposed Transaction") in compliance with Sections 230 to 232 and other applicable provisions of the Companies Act, 2013. Pursuant to this, the Company has received 'no adverse observations' and 'no objection', from BSE Limited and National Stock Exchange of India Limited, respectively. The Proposed Transaction is, inter alia, subject to receipt of requisite approvals from the statutory and regulatory authorities, including the approval from the shareholders and creditors of the Company, Hon'ble National Company Law Tribunal.

60 Assets held for sale as at 30 September 2024 pertains to land and building and other assets having net block of ' Nil (2023: ' 371).

61 a) Audit Trail :

With effect from April 1, 2023, the Ministry of Corporate Affairs (MCA) has made it mandatory for every company, which uses accounting software for maintaining its books of account, to use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The Company uses multiple accounting software including SAP Enterprise Resource Planning (ERP) software to maintain its books of accounts. Implementation of the above notification to ensure enabling appropriate audit log on financial tables in aforesaid SAP, which have high frequency database operations would lead to a severe system performance degradation thereby adversely impacting business operations and users, besides requiring significant additional storage and supporting infrastructure. With a view to address the above challenges, the Company is in the process of evaluating alternate measures over modification made with specific access and direct change at database level.

b) Back up of books of accounts :

Pursuant to the amendment in the Companies (Accounts) Rules, 2014 effective from 11 August 2022, requires that books of accounts and other relevant books and papers maintained in electronic mode should remain accessible in India at all times and backup must be taken on servers physically located in India.The Company has kept proper books of accounts in electronic mode on servers physically located in India on daily basis during the year except for certain books of account, the backup of which on daily basis has been maintained effective from September 1,2024 and in respect of certain other books of accounts and books and papers, the Company is in the process of evaluating and implementing necessary back up measures.

64 Other Notes

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.

ii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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 that the Intermediary shall (other than the information disclosed in note 9 and 18) :

(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 does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

vi) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013, read with Companies (restriction on number of layers) Rules, 2017.

vii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

viii) The Company does not have any borrowings from banks or financial institutions on the basis of security of current assets.

ix) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.