3.07 Provisions, Contingent Liabilities and

Contingent Assets

Provisions

Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result
of a past event, it is probable that the Company will be
required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. The amount
recognized as a provision is the best estimate of the
consideration required to settle the present obligation at
the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. When
a provision is measured using the cash flows estimated
to settle the present obligation, its carrying amount is the
present value of those cash flows (when the effect of the
time value of money is material).

Contingent Liabilities and Contingent Assets
A contingent liability is

a) a possible obligation that arises from past events
and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the entity or

b) a present obligation that arises from past events but
is not recognised because:

(i) it is not probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation or

(ii) the amount of the obligation cannot be
measured with sufficient reliability.

Disclosure of contingent liability is made when there is a
possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not
wholly within the control of the Company or a present
obligation that arises from past events where it is either
not probable that an outflow of resources embodying
economic benefits will be required to settle or a reliable
estimate of amount cannot be made.

A contingent asset is a possible asset that arises from the
past events and whose existence will be confirmed only
by the occurrence or non- occurrence of one or more of
uncertain future events not wholly within the control of
the entity. Contingent assets are disclosed in the Ind AS
Financial Statements by way of notes to accounts when
an inflow of economic benefits is probable.

3.08 Income Tax

Income Tax Expenses comprise the sum of Current Tax
(including past year tax difference) and Deferred Tax.
Current and deferred tax expense is recognized in the
Statement of Profit and Loss, except when they relate
to items that are recognized in other comprehensive
income or directly in equity, in which case, the current and
deferred tax are also recognized in other comprehensive
income or directly in equity respectively.

Current Tax

The tax currently payable is based on taxable profit for
the year. Taxable profit differs from ‘Profit Before Tax’ as
reported in the Statement of Profit and Loss because of
items of income or expense that are taxable or deductible
in other years and items that are never taxable or
deductible under The Indian Income Tax, 1961.

Provision for current tax is made as per the provisions of
the Income Tax Act, 1961.

Current income tax assets and liabilities are measured at
the amount expected to be recovered from or paid to the
taxation authorities based on the tax rates and laws that
are enacted at the balance sheet date.

Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.

Deferred tax:

Deferred tax is recognized on temporary differences
between the tax bases of assets and liabilities use in
computation of taxable profit and their carrying amounts
for financial reporting purposes at the reporting date.
Deferred Tax Liabilities are generally recognized on
all taxable temporary differences. Deferred Tax Assets

are generally recognized for all deductible temporary
differences to the extent that it is probable that taxable
profits will be available against which those deductible
temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to be
utilized. Unrecognized deferred tax assets are re-assessed
at each reporting date and are recognized to the extent
that it has become probable that future taxable profits
will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realized or the liability is settled, based on tax rates
(and tax laws) that have been enacted or substantively
enacted at the reporting date.

The Company offsets current tax assets and current tax
liabilities, where it has a legally enforceable right to set
off the recognised amounts and where it intends either to
settle on a net basis, or to realize the asset and settle the
liability simultaneously. In case of deferred tax assets and
deferred tax liabilities, the same are offset if the Company
has a legally enforceable right to set off corresponding
current tax assets against current tax liabilities and the
deferred tax assets and deferred tax liabilities relate to
income taxes levied by the same tax authority on the
Company.

3.09 Employee Benefits
Short-term Employee Benefits

Employee benefit liabilities such as salaries, wages,
compensated absences (leave encashment), bonus,
incentives, etc., that are expected to be settled wholly
within twelve months after the end of the period in which
the employees render the related service are recognized
in respect of employees’ services up to the end of the
reporting period and are measured at an undiscounted
amount expected to be paid when the liabilities are
settled.

Post-employment benefit plans
Defined Contribution Plans:

State governed Provident Fund Scheme and Employees
State Insurance Scheme are defined contribution plans
since eligible employees are entitled to get benefits and
both the Company and eligible employees make monthly
contributions towards the same. The contribution paid/
payable by the Company under the schemes is recognized
during the period in which the employees render the
related services.

Defined Benefit Plans:

A defined benefit plan is a post-employment benefit plan
other than a defined contribution plan. The Company’s
gratuity scheme is a defined benefit plan. The Company

recognizes the defined benefit liability in Balance sheet.
The present value of the obligation under such defined
benefit plan and the related current service cost and,
where applicable past service cost is determined based on
an actuarial valuation done using the Projected Unit Credit
Method by an independent actuary, which recognizes
each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit
separately to build up the final obligation. The obligations
are measured at the present value of the estimated future
cash flows.

Re-measurements, comprising actuarial gains and losses,
the effect of the changes to the asset ceiling (if applicable)
is reflected immediately in Other Comprehensive Income
in the Statement of Profit and loss. All other expenses
related to defined benefit plans are recognized in
Statement of Profit and Loss as employee benefit expenses.
Re-measurements recognized in Other Comprehensive
Income will not be reclassified to Statement of Profit and
Loss hence it is treated as part of retained earnings in the
Statement of Changes in Equity.

3.10 Trade Receivables

Trade receivables are recognized initially at fair value
and subsequently measured at amortized cost using the
effective interest method, less provision for impairment.

In accordance with Ind AS 109, the Company applies the
simplified approach to measure expected credit losses
(ECL), which requires the use of a lifetime expected loss
allowance for all trade receivables.

To measure the expected credit losses, the Company
evaluates trade receivables based on historical credit
loss experience, shared credit risk characteristics, and
days past due, adjusted for forward-looking information
specific to the debtors and the economic environment.

Trade receivables are written off when there is no
reasonable expectation of recovery. Subsequent
recoveries of amounts previously written off are credited
to the Statement of Profit and Loss.

3.11 Cash and Cash Equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk
of change in value and having original maturities of three
months or less from the date of purchase, to be cash
equivalents. Cash and cash equivalents consist of balances
with banks which are unrestricted for withdrawal and
usage.

3.12 Inventories

Inventories are valued on the following basis:

• Raw Materials and Stores and Spares are valued at
cost or net realizable value whichever is lower on
FIFO Basis.

• Finished goods produced by the company are valued
at lower of cost or net realizable value.

• Work-in-progress has been valued by deducting a
margin from the sales price in consonance with the
stage of completion as certified by the management.

• Scrap is valued at estimated net realizable value.

Net realizable value represents the estimated selling price
for Inventories less all estimated costs necessary to make
the sale.

Where required provisions are made for obsolete or non¬
moving Inventories.

3.13 Foreign currency
Functional and Presentation Currency

Items included in the Ind AS financial statements are
measured using the currency of the primary economic
environment in which the entity operates (the functional
currency). The Company’s Ind AS Financial Statements
are presented in Indian Rupee (INR) which is also the
Company’s functional and presentation currency.

Initial Recognition:

The financial statements are presented in Indian Rupees
(INR), which is the functional currency of the Company.
Transactions in foreign currencies are initially recorded at
the exchange rate prevailing on the date of the transaction.
Exchange differences arising on foreign exchange
transactions settled during the year are recognised in the
statement of profit and loss.

Subsequent Measurement:

Foreign currency denominated monetary assets and
liabilities are translated into the functional currency at
the exchange rates prevailing on the Balance Sheet date.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transactions
and are not re-measured at the reporting date.

Exchange differences arising on the settlement of
transactions and the translation of monetary items are
recognized in the Statement of Profit and Loss. However,
exchange differences arising on foreign currency
borrowings if any, are capitalized as part of borrowing
costs to the extent they are regarded as an adjustment to
interest costs on qualifying assets.

3.14 Revenue Recognition

A. Revenue from Contracts with Customers (Sale of
Products & Services):

Revenue from contracts with customers is recognized
when control of the goods or services is transferred to the
customer at an amount that reflects the consideration

to which the Company expects to be entitled in
exchange for those goods or services. The Company has
generally concluded that it is the principal in its revenue
arrangements, except for job work services.

Sale of Products:

Revenue is recognized at a point in time when performance
obligations are satisfied. For domestic sales, this generally
occurs upon dispatch or delivery of the goods to the specific
location, depending on the contract terms. For export sales
(including CIF terms), control generally transfers when the
goods are loaded onto the shipping vessel and the Bill
of Lading is issued. Domestic sales are recognized at the
transaction price excluding taxes collected on behalf of
the government (such as GST). Export sales are recognized
at their invoice value.

Income from Job Work:

Revenue from job work (processing) services is recognized
when the performance obligation is satisfied, which
generally occurs upon the completion of the processing
activities and dispatch of the processed goods back to
the customer. Revenue is recognized based on the agreed-
upon job work charges and strictly excludes the value
of the raw materials supplied by the customer, as the
Company does not obtain control of these materials.

Revenue is only recognized to the extent that it is highly
probable that a significant reversal will not occur. A liability
is recognized for expected volume discounts payable to
customers in relation to sales made until the end of the
reporting period. Any obligation to provide a refund is
recognized as a provision. Sales returns are reduced from
the total value of products sold during the year.

B. Other Income
Interest Income:

Interest income from a financial asset is recognised when
it is probable that the economic benefits will flow to the
Company and the amount of income can be measured
reliably. Interest income is accrued on time basis, by
reference to the principal outstanding and at the effective
interest rate applicable.

For all debt instruments measured either at amortised
cost or at fair value through other comprehensive income
(FVTOCI), interest income is recorded using the effective
interest rate (EIR), which is the rate that exactly discounts
the estimated future cash payments or receipts over the
expected life of the financial instrument or a shorter
period, where appropriate, to the gross carrying amount
of the financial asset or to the amortised cost of a financial
liability. Interest income is included in other income in the
statement of profit and loss.

Net Gain on Mutual Funds:

Investments in mutual funds are measured at Fair Value
Through Profit or Loss (FVTPL). Gains or losses arising

from fair value restatement as well as realized gains on
redemption are recognized in the Statement of Profit and
Loss.

Rental Income:

Rental income arising from operating leases is accounted
for on a straight-line basis over the lease term and is
included in other income in the Statement of Profit and
Loss.

C. Other Non-Operating Income:

Sundry balances written back are recognized in the
Statement of Profit and Loss when the liability is
extinguished or management determines the obligation is
no longer payable.

Gain or loss on the sale of property, plant, and equipment
is recognized when control of the asset is transferred to
the buyer.

Income from insurance claims is recognized when the
realization of the claim is virtually certain, and the amount
can be measured reliably.

Any other item of income such as Dividends is recognized
on accrual basis depending on certainty of realisation.

3.15 Borrowing Costs

Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets are
capitalized as part of the cost of such assets up to the
assets are substantially ready for their intended use or
sale. The loan origination costs directly attributable to
the acquisition of borrowings (e.g. loan processing fee,
upfront fee) are amortized in the year in which they occur.

All other borrowing costs are recognized in the statement
of profit and loss in the period in which they are incurred.

3.16 Goods and Services Tax

GST is a destination-based tax and is levied at the point
of supply. It is collected on sale of goods and services on
behalf of Government and is remitted by way of payment
or adjustment of credit on input goods or services. GST
input credit is accounted on an accrual basis on purchase
of eligible inputs, capital goods and services.

GST Accounts are created under Balance Sheet Groupings
for liability towards GST collected on Sales/Other Revenue
and asset towards GST paid on purchases or other
expenditure for which credit is available. For Each month
the GST liability is worked out after offsetting the credit
available against the GST collected. The Net GST Account
appears in the Balance Sheet as a Liability, if any amount
is payable as at the year-end after offsetting the available
credit and as an Asset if credits remain unutilized after
adjusting the amount payable.

The balance of GST Input Credit is reviewed at the end of
each year and amount estimated to be un-utilizable is
charged to the statement profit and Loss for the year.

Balance of Liability or Asset are reconciled with the
GSTR2A/2B and GSTR1 /GSTR3B Returns filed by the
Company. The difference, if any, which may be due
to various reasons, are transferred to separate ledger
accounts (liability or asset) pending reconciliation. Final
reconciliation is done at the time of filing of GST Annual
Return GSTR 9 by the Company. Financial Impact on
account of such reconciliation/rectification are quantified
and accounted for at the time of finalization of the GST
Annual Return.

3.17 Segment Reporting

An operating segment is a component of the Company
that engages in business activities from which it may earn
revenues and incur expenses, whose operating results are
regularly reviewed to make decisions for which discrete
financial information is available.

The Company identifies operating segments based on
the dominant source, nature of risks and return and the
internal organisation and management structure and for
which discrete financial information is available.

The Company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the financial statements of the
Company as a whole.

With respect to Ind AS - 108 Segment Reporting, the
Management of the Company is of the view that the
products offered by the Company are Transformer
Laminations, Cores and its related products, having the
same risks and returns, same type and class of customers
and regulatory environment. Hence, the Company
effectively has a single reportable business segment.

3.18 Earnings Per Share

Basic Earnings per Share (and Diluted Earnings per Share,
if applicable) is computed using the net profit for the year
attributable to the shareholders’ and weighted average
number of equity shares outstanding during the year.

3.19 Cash Flow Statement

Cash flows are reported using the indirect method,
whereby profit for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals
of past or future operating cash receipts or payments and
item of income or expenses associated with investing
or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are
segregated based on the available information.

3.20 Exceptional Item

When items of income and expense within statement of
profit and loss from ordinary activities are of such size,

nature or incidence that their disclosure is relevant to
explain the performance of the company for the period,
the nature and amount of such material items are
disclosed separately as exceptional items.

3.21 Event Occurring after the reporting period

Where events occurring after the balance sheet date
provide evidence of conditions that existed at the end of
the reporting period, the impact of such events is adjusted
within the Ind AS Financial Statements. Otherwise, events
alter the balance sheet date of material size or nature are
only disclosed.

3.22 Fair Value Measurement

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either:

• In the principal market for the asset or liability; or

• In the absence of a principal market, in the most
advantageous market for the asset or Liability.

• The principal or the most advantageous market must
be accessible to/by the Company.

Fair value hierarchy

The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their best economic interest. The
Company uses valuation techniques that are appropriate
in the circumstances and for which sufficient data are
available to measure fair value, maximizing the use of
relevant observable inputs and minimizing the use of
unobservable inputs. All financial instruments for which
fair value is recognized or disclosed are categorized within
the fair value hierarchy, described as follows, based on
the lowest level input that is significant to the fair value
measurement as a whole:

♦ Level 1: Quoted (unadjusted) prices in active markets
for identical assets or liabilities. (e.g., Mutual Fund
investments measured using observable Net Asset
Values).

♦ Level 2: Valuation techniques for which the lowest
level input that has a significant effect on the fair
value measurement is observable, either directly or
indirectly.

♦ Level 3: Valuation techniques for which the lowest
level input that has a significant effect on the fair
value measurement is not based on observable
market data.

For assets and liabilities that are recognized in the
financial statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by reassessing categorization
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.

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

Fair value of short-term financial instruments

The management assessed that the fair values of cash
and cash equivalents, bank balances, trade receivables,
short-term borrowings, trade payables, and other current
financial assets and liabilities approximate their carrying
amounts largely due to the short-term maturities of these
instruments.

3.23 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.

The Company determines the classification of its
financial assets and liabilities at initial recognition. The
classification depends on the Company’s business model
for managing the financial assets and the contractual
terms of the cash flows.

Financial Assets

Initial recognition and measurement:

All financial assets are recognized initially at fair value.
Transaction costs that are directly attributable to the
acquisition or issue of financial assets, which are not at
fair value through profit or loss, are adjusted to the fair
value on initial recognition. However, trade receivables
that do not contain a significant financing component
are initially measured at the transaction price determined
under Ind AS 115.

Subsequent measurement:

For subsequent measurement, financial assets are
classified as measured at:

♦ Amortized cost

♦ Fair Value Through Other Comprehensive Income
(FVTOCI)

♦ Fair Value Through Profit or Loss (FVTPL)

Financial Assets at amortized cost:

A Financial Asset are subsequently measured at the
amortized cost if both the following conditions are met:

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

• 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 amortized cost using the
effective interest rate (EIR) method. Amortized 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 amortization and losses arising from impairment
are recognized in the Statement of Profit & Loss. The
amortized cost of the financial asset is also adjusted for
loss allowance, if any.

Financial Assets at FVTOCI:

Financial Asset is measured at fair value through other
comprehensive income if both the following conditions
are met:

• The asset is held within a business model whose
objective is achieved by both collecting contractual
cash flows and selling financial assets, and

• 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 fair value and changes therein
are recognized directly in other comprehensive income,
net of applicable taxes.

Financial Assets at FVTPL:

FVTPL is a residual category for Financial Assets.

Any Financial Asset, 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
Financial 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’).

Financial Assets included within the FVTPL category are
measured at fair value with all changes recognized in the
Statement of Profit & Loss.

Presentation in Financial Statements:

The company has made an election for classification and
subsequent measurement for its investments based on
its business model and is disclosed in relevant note of
investments respectively.

Derecognition of Financial Assets:

The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the
transfer qualifies for de-recognition under Ind AS 109.
If the Company retains substantially all the risks and
rewards of ownership of a transferred financial asset,
the Company continues to recognize the financial asset
and the proceeds received are recognized as borrowing.
Any gain or loss on de-recognition is recognized in the
Statement of Profit and Loss.

Impairment of financial assets:

In accordance with Ind AS 109, the Company uses ’Expected
Credit Loss’ (ECL) model, for evaluating impairment of
financial assets other than those measured at Fair Value
Through Profit and Loss (FVTPL). The company applies
expected credit loss (ECL) model on the following
financial assets and credit risk exposure:

♦ Financial assets that are debt instruments, and are
measured at amortized cost e.g. Loans and Trade
Receivables.

♦ The company follows ‘simplified approach’ for
recognition of impairment loss allowance on Trade
receivables that do not contain a significant financing
component.

The application of simplified approach does not require
the Company to track changes in credit risk. Rather,
it recognizes impairment loss allowance based on
lifetime ECLs at each reporting date, right from its initial
recognition.

Financial liabilities

Initial recognition and measurement:

All financial liabilities are initially recognized when the
Company becomes a party to the contractual provisions
of the instrument.

All financial liabilities are recognised at fair value and
in case of borrowings, net of directly attributable cost.
Fees of recurring nature are directly recognised in the
statement of profit and loss as finance cost.

Subsequent measurement:

Financial liabilities are carried at amortised cost using the
effective interest method. For trade and other payables
maturing within one year from the balance sheet date,
the carrying amounts approximate fair value due to the
short maturity of these instruments.

Under the EIR method, the future cash payments are
exactly discounted to the initial recognition value using
the effective interest rate. The cumulative amortization
using the effective interest method of the difference
between the initial recognition amount and the maturity
amount is added to the initial recognition value (net of
principal repayments, if any) of the financial liability over
the relevant period of the financial liability to arrive at the
amortized cost at each reporting date. The corresponding
effect of the amortization under effective interest method
is recognized as expense over the relevant period of the
financial liability in the Statement of Profit and Loss.

Derecognition:

A financial liability is derecognized 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 between the
carrying amount of the financial liability derecognized
and the consideration paid is recognized in the Statement
of Profit and Loss.

Offsetting of Financial Instruments:

Financial assets and financial liabilities are offset and the
net amount presented in the Balance Sheet when, and only
when, the Company currently has a legally enforceable
right to set off the amounts and it intends either to settle
them on a net basis or to realize the assets and settle the
liabilities simultaneously.

3.24 Prepaid Expenses

Prepaid expenses are payments made in advance for
goods or services to be received in future periods.
These are initially recognized as current assets and are
subsequently amortized to the statement of profit and
loss over the period to which the expense pertains, in
accordance with the accrual and matching principles.

3.24 Transition to Ind AS
First-time adoption of Ind AS

The Company’s financial statements for the year ended
March 31,2026, are the first annual financial statements
prepared in compliance with Indian Accounting
Standards (Ind AS). The transition to Ind AS was carried
out in accordance with Ind AS 101 “First-time Adoption
of Indian Accounting Standards”, using April 1, 2024, as
the transition date.

Ind AS 101 requires that all Ind AS standards that are
effective for the first Ind AS Financial Statements for the
year ended March 31, 2026, be applied consistently and
retrospectively for all fiscal years presented. The resulting
difference between the carrying amounts of the assets
and liabilities in the financial statements under Ind AS

and previous GAAP as of the transition date has been
recognized directly in Retained Earnings (Other Equity).

These financial statements include the necessary
reconciliations of Shareholders’ Equity and Total
Comprehensive Income from Previous GAAP to Ind AS
as at April 01, 2024 and March 31, 2025. In accordance
with Ind AS 101 First-time Adoption of Indian Accounting
Standard, the Company has presented a reconciliation
from the presentation of financial statements under
Accounting Standards notified under the Companies
(Accounting Standards) Rules, 2014 (“Previous GAAP”) to
Ind AS of Shareholders’ equity as at March 31, 2025 and
April 01, 2024 and of the comprehensive net income for
the year ended March 31,2025 and April 01,2024.

In preparing these financial statements, the Company
has availed certain mandatory exceptions and optional
exemptions in accordance with Ind AS 101, which are
detailed in Note 51.

The Ind AS Financial Statements of the Company comprises,
the Ind AS Balance sheet, the Ind AS Statements of Profit
and Loss (including Other Comprehensive Income), the
Ind AS Statements of Changes in Equity and the Ind AS
Statements of Cash Flows as at and for the year ended
March 31, 2026 and the Material Accounting Policies and
explanatory notes.

(d) The Company has only one class of equity shares having a par value of '' 10/- per share. Each holder of equity shares
is entitled to one vote per share. The holders of Equity Shares are entitled to receive dividends as declared from
time to time. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be
entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution
will be in proportion to the number of equity shares held by the shareholders.

Facilities from ICICI Bank:

The Bank Facilities of '' 75.00 Crores sanctioned by ICICI
Bank effectively consist of Cash Credit of ''15 Crore,
separate LC Limits and Sub Limits of ''37.18 Crores, LC
Backed Pre Acceptance Bill Discounting of '' 0.9 Crore,
Derivatives of '' 1.92 Crore and Term Loan of 20.00 Crores,
which are secured by First Pari Passu Charge on the Current
Assets and Moveable Fixed Assets of the Company as
well as exclusive charge on certain Fixed Deposits of the
Company. The facilities are further secured the Personal
Guarantee of the Managing Director of the Company. The
Applicable Rate of Interest for Cash Credit and Term Loan
Facilities is 8.50%. The Company has not utilised the term
loan facilities as at the end of the year.

The Company has additionally obtained fixed deposit-
backed facilities totalling '' 47.71 Crores from ICICI
Bank. This aggregate limit comprises a Overdraft facility
of '' 25.00 Crores and Letter of Credit facility of '' 22.71
Crores. Both of these primary facilities include sub¬
limits for issuing Standby Letters of Credit (SBLC) for
Buyer''s Credit. These facilities are exclusively secured by
a lien on the Company''s Fixed Deposits totalling '' 50.09
Crores.

During the year company availed additional Overdraft
facility of ''10 crore from the ICICI Bank which inter-alia
includes the facilities of Letter of Credit and SBLC for
Buyers credit as its sub limit. These facilities are secured
by Liquid Funds/Debt Mutual Funds as acceptable to ICICI
Bank with LTV of 80% to 95% depending upon the funds
as acceptable to ICICI Bank with additional 10% margin
in case of Foreign Currency limits. Applicable Rate of
Interest is 7.85%.

Facilities from HDFC Bank

The Company has also availed Bank Facilities of '' 30
Crores from HDFC Bank Limited which inter-alia includes
the facilities of Cash Credit of ''2 Crores with LC, Bank
Guarantee and Buyer''s Credit as sub-limits and LC limits of
''18 Crores with Buyers Credit (SBLC) and Bank Guarantee
as its sub-limit. Further Company also availed the facility
of Overdraft against Fixed Deposit of ''10.00 Crore with
Bank Guarantee and Letter of Credit as its sub-limit. These
facilities are secured by way of First pari-passu charge on
entire current assets along with First pari-passu charge
on entire current assets and movable fixed assets of the
Company. Applicable Rate of Interest on Cash Credit
Facility is 8.61% and on Overdraft facility against Fixed
Deposit in average rate of Fixed Deposit 1.50%.

NOTE NO: 40 DETAILS OF EMPLOYEE BENEFIT
Defined Contribution Plans:

The Company makes contributions towards provident
fund to defined contribution retirement benefit plan for
qualifying employees. The provident fund contributions
are made to Government administered Employees
Provident Fund. Both the employees and the Company
make monthly contributions to the Provident Fund Plan
equal to a specified percentage of the covered employee’s
salary. Provident Fund dues amounting to '' 37.10 Lacs
(Previous Year: '' 38.47 Lacs) paid during the year,
being defined contributions, have been charged to the
Statement of Profit and Loss. Employee State Insurance
dues amounting to '' 10.54 Lacs (Previous Year: '' 9.36
Lacs) paid during the year, being defined contributions,
have been charged to the Statement of Profit and Loss.

Leave Encashment (Short Term Employee Benefit)

The provision for leave encashment represents the value
of unutilized leave balances due to employees at the
end of the reporting period. As the Company''s policy
mandates the settlement of these accumulated leaves
within the next financial year, the obligation is classified
as a short-term employee benefit. Consequently, the
liability has been recognized on an undiscounted basis in
accordance with Ind AS 19, and no actuarial assumptions
are applicable. Leave encashment expense amounting to

'' 20.38 Lacs (P.Y '' 16.10 Lacs) has been recognized in the

Statement of Profit and Loss.

Defined Benefit Plans: Gratuity

i. The Company has a defined benefit gratuity plan.
Every employee who has completed five or more years
of service is eligible for gratuity @ 15 days salary
(last drawn) for every completed year of service with
a overall ceiling of 20 Lacs. The Company has taken
a Group Gratuity cum Life Insurance Policy from Life
Insurance Corporation of India (a qualifying policy)
and makes annual contributions to the same to
create a fund to meet this defined benefit gratuity
obligation.

The estimates of rate escalation in salary is considered in actuarial valuation which take into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market. The above
information is certified by the actuary.

Sensitivity Analysis:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected
salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented

The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2025-26.

The Plan typically exposes the Company to actuarial risks such as interest rate risk, liquidity risk, salary escalation & regulatory risk.
Interest Rate Risk:

The plan exposes the Company to the risk of a fall in interest rates. A fall in interest rates will result in an increase in the
ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in
financial statements).

Liquidity Risk:

This is the risk that the Company is not able to meet the short-term gratuity pay outs. This may arise due to non-availability
of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation Risk:

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants
in future. Deviation in the rate of increase in salary in future for plan participants from the rate of increase in salary used
to determine the present value of obligation will have a bearing on the plan’s liability.

Regulatory Risk:

Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 ( as amended from
time to time). There is a risk of change in regulations requiring higher gratuity pay-outs (e.g. Increase in the maximum
limit on Gratuity of '' 20.00 Lacs).

NOTE NO 41:

In the opinion of the Board, all assets which are considered good (other than Property Plant and Equipments and Non¬
Current Investments) are expected to be realised at least the amount at which they are stated, if realised in the ordinary
course of business. Further in the opinion of the Board, provision for all known liabilities has been adequately made in
the accounts and as per management experience and estimates, no additional provisions are required.

NOTE NO 42:

Company has used the borrowings from Banks for the specific purpose for which they were taken at Balance sheet date.

NOTE NO 44: LEASES

(a) Company as a Lessee:

The Company evaluates its leasing arrangements at inception and at each reporting date to determine whether a
contract is, or contains, a lease in accordance with Ind AS 116. The Company has elected not to recognize Right-of-Use
(ROU) assets and lease liabilities for short-term leases that have a lease term of 12 months or less.

(b) Rent Expense and Lease Amendment:

During the financial year 2025-26, the Company has recognized a total rent expense of '' 9.00 Lacs in the Statement
of Profit and Loss. The Company initially intended to acquire the underlying leased asset outright in the current year.
Because of the impending acquisition, the effective remaining lease period was less than 12 months. Consequently,
utilizing the short-term lease recognition exemption under Ind AS 116, the Company had not recognized any Right-of-
Use (ROU) Asset or corresponding Lease Liability in the Financial Statement for FY 2024-25. The said acquisition got
delayed and the Company ended up paying lease rental for the whole of FY 2025-26. However, since the acquisition
of the underlying leased asset is expected to be complete in FY 2026-27, it has been decided that no further lease
rentals will be paid from FY 2026-27. Because of this amendment and the impending acquisition, the Company has not
recognized any Right-of-Use (ROU) Asset or corresponding Lease Liability in the balance sheet as at March 31,2026.

NOTE NO 48: SEGMENT REPORTING

With respect to Ind AS 108, the Management of the
Company is of the view that the products offered by the
Company are in the nature of Transformer Laminations,
Cores and its related products, having the same risks and
returns, same type and class of customers and regulatory
environment. Hence, the business of production of
Lamination and its related products belong to one
business segment only.

NOTE NO 49: IMPAIRMENT OF ASSETS

In absence of any indications, external or internal, as
to any probable impairment of assets, no provision has
been made for the same during the year under report,
in accordance with the requirement of Ind AS - 36 on
Impairment of Assets.

NOTE NO 50: OTHER STATUTORYINFORMATION

(1) The Company does not have any Benami property,
where any proceeding has been initiated or pending
against the Company for holding any Benami property.

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

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

(4) 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: (i)
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
(ii) provide any guarantee, security or the like to or
on behalf of the Ultimate Beneficiaries.

(5) 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: (i) 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 (ii) provide any
guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

(6) The company has not given any loans or Advances in
the nature of loans to Directors, KMPs and the Related
Parties (as defined under Companies Act, 2013) either
severally or jointly with any other person.

(7) The Company does not have any such transaction
which is not recorded in the books of accounts and that
has been surrendered or disclosed as income during the
year 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).

(8) There is no Scheme of Arrangements approved by the
Competent Authority in terms of sections 230 to 237
of the Companies Act, 2013.

(9) The Company is not declared as wilful defaulter by
any bank or financial Institution or other lender.

(10) The Company does not have any relationship with
struck off companies.

(11) There are no immovable properties (other than
properties where the Company is a lessee and the
lease agreements are duly executed in favour of the
lessee) whose title deeds are not held in the name of
the Company.

(12) The Company has not revalued its Property, Plant
and Equipment during the period.

NOTE NO 51: FIRST TIME ADOPTION OF IND AS

The Company has adopted Indian Accounting Standards
as notified by the Ministry of Corporate Affairs and has
prepared the Ind AS financial statements for the financial
year ended March 31, 2026 having Transition Date as
April 01,2024.

For periods up to and including the year ended 31^st March
2025, the Company has prepared its annual financial
statements in accordance with accounting standards
notified under section 133 of the Companies Act 2013,
read together with paragraph 7 of the Companies
(Accounts) Rules, 2014 (Indian GAAP).

The transition to Ind AS has resulted in changes in the
presentation of the financial statements, disclosures in the
notes thereto, and accounting policies and principles. The
following notes explain the principal adjustments made
by the Company in restating its previous GAAP financial
statements, including the balance sheet as at April 1,
2024 (Transition Date) and the financial statements as at
and for the year ended March 31,2025.

Ind AS 101 First Time adoption of Ind AS prescribes the
accounting principles for first time adoption of Ind AS.
It lays downs various ‘transition’ requirements when a
Company adopts Ind AS for the first time. The accounting
under Ind AS should be applied retrospectively at the time
of transition to Ind AS. However, Ind AS 101 grants limited
exemptions from these requirements. The Mandatory
and Optional exemptions opted by the Company are
mentioned below.

In preparing our opening Ind AS balance sheet, we have
adjusted amounts reported in financial statements
prepared in accordance with IGAAP. An explanation of
how the transition from IGAAP to Ind AS has affected our

financial performance, cash flows and financial position
is set out in the following tables and the notes that
accompany the tables. On transition, the Company has
not revise estimates previously made under IGAAP except
where required by Ind AS.

I. Mandatory Exceptions applied:

The Company has applied the following exceptions to
the retrospective application of Ind AS as mandatorily
required under Ind AS 101.

(a) Estimates:

The Company’s estimates in accordance with Ind AS
as at the date of transition to Ind AS (April 1, 2024) are
consistent with the estimates made for the same date
as per previous GAAP (after adjustments to reflect any
difference in accounting policies).

(b) Classification and Measurement of Financial
Assets:

The classification of financial assets to be measured at
amortized cost or fair value through profit or loss (FVTPL)
is made on the basis of the facts and circumstances that
existed on the date of transition to Ind AS.

II. Optional Exemptions availed:

(a) Deemed cost for Property, Plant and Equipment
and Intangible Assets:

The Company has elected to continue with the carrying
value of all of its Property, Plant and Equipment and
Intangible Assets recognized as of April 1,2024 (transition
date) measured as per the previous GAAP, and use that
carrying value as its deemed cost as of the transition date.

(b) Deferred Tax

Indian GAAP requires deferred tax accounting using the
income statement approach, which focuses on differences
between taxable profits and accounting profits for the
period. Ind AS 12 “Income Taxes” requires entities to account
for deferred taxes using the balance sheet approach, which
focuses on temporary differences between the carrying
amount of an asset or liability in the balance sheet and its
tax base. In addition, the various transitional adjustments
lead to temporary differences. According to the accounting
policies, the Company has to account for such differences.
Deferred tax adjustments are recognised in correlation to
the underlying transaction either in retained earnings or a
separate component of equity.

(c) Expected Credited Loss Allowances:

Under Ind AS, expected life time credit provision is made
on trade receivables. Under Indian GAAP, the provision for
doubtful debts was made using ageing analysis and an
individual assessment of recoverability.

Transition to Ind AS - Reconciliations

The following reconciliations provide the explanation of
the differences arising from the transition from Indian
GAAP to Ind AS in accordance with Ind AS 101:

Reconciliation of Statement of Cash Flows:

The IND AS adjustments are either non-cash adjustments
or are regrouping among the cash flows from operating,
investing and financing activities. Consequently, IND
AS adoption has no impact on the net cash flow for
the year ended March 31, 2025 as compared with the
previous GAAP.

Notes to Reconciliations:

Recognition of Actuarial Gain/Loss:

Under Previous GAAP, actuarial gains and losses on
defined benefit obligations (such as gratuity) were
recognized in the Statement of Profit and Loss. Under
Ind AS 19, these remeasurements are recognized in
Other Comprehensive Income (OCI). Consequently,
the relevant amounts have been reclassified from
employee benefit expenses to OCI in the comparative
financial statements.

Recognition of Gain/Loss on account of Fair Value
Measurement of Investments:

Under Previous GAAP, current investments were generally
measured at the lower of cost or fair value. Under Ind AS
109, these investments are classified and measured at
Fair Value Through Profit or Loss (FVTPL). Consequently,
gains or losses arising from the fair value restatement of
these investments on the transition date and subsequent

periods are recognized in Retained Earnings and the
Statement of Profit and Loss, respectively.

Property, Plant and Equipment (PPE) & Revaluation
Reserve

The Company has elected the exemption to use the
previous GAAP carrying amount as deemed cost for
all PPE. For land, the previous GAAP carrying amount
included a revaluation. Upon transition to Ind AS, the
Company has treated this revalued amount as the deemed
cost. Consequently, the balance standing to the cre

XIII. Contingencies/Provisions:

Provisions requiring a substantialdegree of estimation
in measurement are recognized, if in the opinion of the
Management, there is a probability that a present obligation
as a result of past events will result in an outflow for the
Company in the future. Contingencies, the outcome of
which is not certain, have been disclosed in these notes
as Contingent Liabilities. Contingent Assets are neither
recognized nor disclosed in the financial statements.

XIV. Prior Period and Extra Ordinary items and Changes
in Accounting Policies, having a material bearing on the
financial affairs of the Company are disclosed separately.

XV. Expenditure incurred on the Initial Public Offer is being
entirely expensed off in the year of incurrence and is not
being amortised.

XVI. Earnings Per Share:

(i) Basic Earnings per Share

Basic earnings per share is computed by dividing the profit/
(loss) after tax by the weighted average number of equity
shares outstanding during the year.

(ii) Diluted Earnings per Share

Diluted earnings per share is computed by dividing the
profit/(loss) after tax as adjusted for dividend, interest and
other charges to expense or income (net of any attributable
taxes) relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered for
deriving basic earnings per share and the weighted average
number of equity shares which could have been issued on
the conversion of all dilutive potential equity share.

Facilities from ICICI Bank: The Bank Facilities of '' 62.80
Crores sanctioned by ICICI Bank effectively consist of Cash
Credit of ''15 Crores (with restriction of Drawing Power
upto '' 1 Crores only and LC Sub Limit of '' 14 Crores),
separate LC Limits and Sub Limits of '' 44.98 Crores, LC
Backed Pre Acceptance Bill Discounting of '' 1 Crores and
Derivatives of '' 1.82 Crores which are secured by First Pari
Passu Charge on the Current Assets and Moveable Fixed
Assets of the Company as well as exclusive charge on
certain Fixed Deposits of the Company. The facilities are
further secured the Personal Guarantee of the Managing
Director of the Company. The Applicable Rate of Interest
for Cash Credit Facilities is Repo Rate 6.50% Spread of 4%
effective interest rate is 10.50%. Since the year end balance
in the Cash Credit Account was a debit amount, the same
has been presented under the head of ''Balances lying with
Bank in Current Accounts.

The Company has additionally obtained Letter of Credit
Facilities amounting to '' 47.71 Crores and SBLC for Buyers
Credit, which is a sublimit of the Letter of Credit, from ICICI
Bank. These facilities are backed by Fixed Deposit Receipts
totalling '' 50.09 Crores.

During the year Company availed Overdraft facility of '' 10
crore from the ICICI Bank Limited which inter-alia includes
the facilities of Letter of Credit and SLBC for Buyers credit
as its sub limit. These facilities are secured by Liquid Funds/
Debt Mutual Funds as acceptable to ICICI Bank with LTV of
80% to 95% depending upon the funds as acceptable to
ICICI Bank with additional 10% margin in case of Foreign
Currency limits. Applicable Rate of Interest is 9.10%

Facilities from HDFC Bank: The Company has also availed
Bank Facilities of '' 30 Crores from HDFC Bank Limited
which inter-alia includes the facilities of Cash Credit of '' 2
Crores with LC, Bank Guarantee and Buyer''s Credit as sub¬
limits and LC limits of '' 18 Crores with Buyers Credit (SBLC)
and Bank Guarantee as its sub-limit. Further Company
also availed the facility of Overdraft against Fixed Deposit
of '' 10.00 Crores with Bank Gurantee and Letter of Credit
as its sub-limit. These facilities are secured by way of First
pari-passu charge on entire current assets along with First
pari-passu charge on entire current assets and movable
fixed assets of the Company. Applicable Rate of Interest on
Cash Credit Facility is 9.98% and on Overdraft facility against
Fixed Deposit in average rate of Fixed Deposit 1.50%.

Additional perquisite of free usage of car is granted to the Managing Director but he is not considered eligible for PF, Bonus,
Gratuity and Leave Encashment.

38. POST EMPLOYMENT BENEFITS

Provident Fund dues amounting to '' 38.47 Lakhs (p.y '' 35.91 Lakhs) paid during the year being defined contributions have
been charged to the Statement of Profit and Loss.

Leave Encashment, though a defined benefit obligation, falls under short-term compensated absences in terms of the
policy of the Company. The value of obligation towards entitlement of employees accumulating earned leave and eligibility
of compensation or encashment of the same is determined on the basis of the expected amount required to be paid as a
result of actual unused entitlement standing to the credit of the employees as at end of the year based on current salary
standards. Accordingly a sum of '' 16.10 Lakhs (P.y. '' 15.23 Lakhs) has been determined as obligation as at the year end and
charged to the Statement of Profit and Loss.

The Company has a defined benefit gratuity plan. Every employee who has completed five or more years of service is eligible
for gratuity @ 15 days salary (last drawn) for every completed year of service with a overall ceiling of '' 20.00 Lakhs The
Company has taken a Group Gratuity cum Life Insurance Policy from the Life Insurance Corporation of India (a qualifying
policy) and makes annual contributions to create a fund to meet this defined benefit gratuity obligation.

39. BORROWING COSTS

No Borrowing Costs were eligible for capitalization during the year.

The Company has used the borrowings from Banks and Financials Institutions for the specific purpose for which it was taken
at the Balance Sheet Date.

40. SEGMENT REPORTING

With respect to Accounting Standard-17, the Management of the Company is of the view that the products offered by the
Company are in the nature of Transformer Laminations, Cores and its related products, having the same risks and returns,
same type and class of customers and regulatory environment. Hence, the business of production of Lamination and its
related products belong to one business segment only.

41. RELATED PARTY TRANSACTIONS

The Company has identified all the related parties having transactions during the year in line with Accounting Standard 18.
Details of the same are as under

Note:

The number of equity shares outstanding at the beginning of the year was 180.00 Lakhs. On 30^th May 2024, the Company
issued an additional 64,80,000 equity shares. As a result, the weighted average number of equity shares for the year ended
31^st March 2025 is 234.33.

44. IMPAIRMENT OF ASSETS

In absence of any indications, external or internal, as to any probable impairment of assets, no provision has been made for
the same during the year under report, in accordance with the requirement of Accounting Standard - 28 on "Impairment
of Assets".

45. INITIAL PUBLIC OFFER (IPO)

The Company completed its Initial Public Offer (IPO) of 64.80 Lakhs Equity Shares of face value of '' 10 each at an issue price
od '' 147/- per share (Including share premium of '' 137/- per share) amounting to '' 9,525.60 Lakhs during the year. The
Equity Shares of the Company were listed on NSE Emerge Platform on 03^rd June 2024.

46. BORROWINGS AGAINST SECURITY OF CURRENT ASSETS

The Company has been sanctioned Fund Based Working Capital Limits wherein usage is restricted to '' 300 Lakhs which
are inter-alia against security of current assets. The Company has filed the Statements of Current Assets on monthly basis.

On comparing the amounts appearing in the Statements filed at the end of each Quarter as against those appearing in the
books there were some differences in the amounts shown as Book Debts.

48. There are no immovable properties (other than properties where the Company is a lessee and the lease agreements
are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company.

49. The Company has not revalued its Property, Plant and Equipment during the period.

50. In the opinion of the Board, all assets which are considered good (other than Property Plant and Equipments and Non¬
Current Investments) are expected to realised at least the amount at which they are stated, if realised in the ordinary course
of business. Further in the opinion of the Board, provision for all known liabilities has been adequately made in the accounts
and as per management experience and estimates, no additional provisions are required.

For the year ended 31/03/2025

(Figures in Lakhs)

52. The fi gures in respect of previous year have been re-grouped/recast wherever necessary to confirm to the current
year''s classification.

53. All figures are rounded off to '' Lakhs unless otherwise stated.

For Talati & Talati LLP, For & on behalf of the Board

Chartered Accountants For Vilas Transcore Limited

FRN 110758W/W100377

CA Manish Baxi

Partner Nilesh Patel Vipul Patel

Mem. No.: 045011 Managing Director WTD & CFO

UDIN: 25045011BMNSMK1564 DIN: 00447907 DIN: 09732297

Gandhali Paluskar

Company Secretary
M. No.: A53697

Place: Vadodara Place: Vadodara

Date: 21.05.2025 Date: 21.05.2025

(d) The Company has a single class of equity shares having par value of '' 10/- per equity share. All shares rank pari passu with refrence to all rights relating thereto. The dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all the preferential amounts, in proportions to their shareholding.

Facilities from ICICI Bank: The Bank Facilities of '' 3780.00 Lacs sanctioned by ICICI Bank effectively consist of Cash Credit of '' 1500.00 Lacs (with restriction of Drawing Power upto '' 100.00 Lacs only and LC Sub Limit of '' 1400.00 Lacs), separate LC Limits and Sub Limits of '' 1998.00 Lacs, LC Backed Pre Acceptance Bill Discounting of '' 100.00 Lacs and Derivatives of '' 182.00 Lacs which are secured by First Pari Passu Charge on the Current Assets and Movable Fixed Assets of the Company as well as exclusive charge on certain Fixed Deposits of the Company. The facilities are further secured by the Personal Guarantee of the Managing Director of the Company. The Applicable Rate of Interest for Cash Credit Facilities is Repo Rate 6.50% Spread of 4% effective interest rate is 10.50%. Since the year end balance in the Cash Credit Account was a debit amount, the same has been presented under the head of ''Balances lying with Bank in Current Accounts.

The Company has additionally obtained Letter of Credit Facilities amounting to '' 5227.00 Lacs and SBLC for Buyers Credit, which is a sublimit of the Letter of Credit, from ICICI Bank. These facilities are backed by Fixed Deposit Receipts totalling '' 5490.00 Lacs.

During the year Company availed Overdraft facility of '' 1000.00 Lacs from the ICICI Bank Limited which inter-alia includes the facilities of Letter of Credit and SLBC for Buyers credit as its sub limit. These facilities are secured by Liquid Funds/Debt Mutual Funds as acceptable to ICICI Bank with LTV of 80% to 95% depending upon the funds as acceptable to ICICI Bank with additional 10% margin in case of Foreign Currency limits. Applicable Rate of Interest is 9.10%.

Facilities from HDFC Bank: The Company has also availed Bank Facilities of '' 2000.00 Lacs from HDFC Bank Limited which inter-alia includes the facilities of Cash Credit of '' 200.00 Lacs with LC, Bank Guarantee and Buyer''s Credit as sub-limits and LC limits of '' 1800.00 Lacs with Buyers Credit (SBLC) and Bank Guarantee as its sub-limit. These facilities are secured by way of First pari-passu charge on entire current assets along with First pari-passu charge on entire movable fixed assets of the Company. Applicable Rate of Interest is 9.78%. Since the year end balance in the Cash Credit Account with HDFC Bank was a debit amount, the same has been presented under the head of ''Balances lying with Bank in Current Accounts.

Sundry Creditors are as per books and have not been corroborated by circulation/confirmation of balances.

Disclosures required under Micro, Small and Medium Enterprises Development Act, 2006

Trade Payables includes '' 18.19 Lacs (PY '' 14.02 Lacs) outstanding to Micro and Small Enterprises. The above information has been compiled in respect of parties to the extent they could be identified as Micro and Small Enterprises on the basis of information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company.

The Company deals with various Micro and Small Enterprises on mutually accepted terms and conditions. Accordingly, no interest is payable if the terms are adhered to by the Company. Consequently, no interest has been paid or is due and no provision for interest payable to such units is required or has been made under Micro, Small and Medium Enterprises Development Act, 2006.

Margin Money Deposits are Fixed deposits kept with banks as collateral against the LC facilities availed by the Company. As such the Margin Money Deposits are usually auto-renewed on maturity since they are a security against banking facilities. However, since their duration is a period of one-year only, they have been presented under Current Assets. Further, the Margin Money Deposits and Fixed Deposits amount shown above includes interest accrued on the principal amount after last annual auto-renewal/maturity.

24. The Company has used the borrowings from Banks and Financials Institutions for the specific purpose for which it was taken at the Balance Sheet Date.

25. In the opinion of the Board, all assets which are considered good (other than Property Plant and Equipments and NonCurrent Investments) are expected to realised at least the amount at which they are stated, if realised in the ordinary course of business. Further in the opinion of the Board, provision for all known liabilities has been adequately made in the accounts and as per management experience and estimates, no additional provisions are required.

27. ADDITIONAL REGULATORY INFORMATION:

I. There are no immovable properties (other than properties where the Company is a lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company.

II. The Company has not revalued its Property, Plant and Equipment during the period.

III. The Company has not granted any Loans or Advances in the nature of loans to Promoters, Directors, KMPs and Related Parties either severally or jointly with other persons that are repayable on demand or without specifying any terms or period of repayment.

V. The Company did not have and Intangible Assets under Development as at the end of the year.

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

VII. The Company has never been declared as a Wilful Defaulter by any bank or financial institution or other lender.

VIII. The Company has been sanctioned Fund Based Working Capital Limits wherein usage is restricted to '' 300 Lacs which are inter-alia against security of current assets. The Company has filed the Statements of Current Assets on monthly basis.

On comparing the amounts appearing in the Statements filed at the end of each Quarter as against those appearing in the books there were some differences in the amounts shown as Book Debts.

The quarterly statements are submitted based on unaudited data as at each quarter end. As against the same, the amounts appearing in the above table as per books are the final audited numbers. Hence, some discrepancies may arise.

In case of Book Debts, the differences are not major and these differences are primarily on account of adjustment of advances and TDS in the Customers'' account,.

In the case of inventory, the differences are due to the classification of inventories. When submitting the statement to the bank, some WIP items were incorrectly included in Finished Goods and vice versa, causing discrepancies. These were rectified during the audit.

As such, none of the differences had any impact on the drawing power vis-a-vis the available limits and utilisation at the end of those quarters.

IX. The Company has not entered into any transactions with Struck-off Companies.

X. There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period or otherwise.

XI. The Company has not made any downstream investments in any other Companies

XII. There was no Scheme of Arrangements during the year

XIII. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of 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 directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

XIV. 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 directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the funding party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

42. POST EMPLOYMENT BENEFITS

Provident Fund dues amounting to '' 35.91 Lacs (p.y '' 27.93 Lacs)paid during the year being defined contributions have been charged to the Statement of Profit and Loss.

Leave Encashment, though a defined benefit obligation, falls under short-term compensated absences in terms of the policy of the Company. The value of obligation towards entitlement of employees accumulating earned leave and eligibility of compensation or encashment of the same is determined on the basis of the expected amount required to be paid as a result of actual unused entitlement standing to the credit of the employees as at end of the year based on current salary standards. Accordingly a sum of '' 15.23 Lacs (P.y. '' 16.34 Lacs) has been determined as obligation as at the year end and charged to the Statement of Profit and Loss.

The Company has a defined benefit gratuity plan. Every employee who has completed five or more years of service is eligible for gratuity @ 15 days salary (last drawn) for every completed year of service with a overall ceiling of '' 20.00 Lacs. The Company has taken a Group Gratuity cum Life Insurance Policy from the Life Insurance Corporation of India (a qualifying policy) and makes annual contributions to create a fund to meet this defined benefit gratuity obligation.

44. BORROWING COSTS

No Borrowing Costs were eligible for capitalization during the year.

45. SEGMENT REPORTING

With respect to Accounting Standard-17, the Management of the Company is of the view that the products offered by the Company are in the nature of Transformer Laminations, Cores and its related products, having the same risks and returns, same type and class of customers and regulatory environment. Hence, the business of production of Lamination and its related products belong to one business segment only.

The EPS for year ended, March 31, 2023 has been adjusted on account of bonus issue made during the year ended March 31,2024, as required by AS 20 Earnings per share.

50. IMPAIRMENT OF ASSETS

In absence of any indications, external or internal, as to any probable impairment of assets, no provision has been made for the same during the year under report, in accordance with the requirement of Accounting Standard - 28 on "Impairment of Assets".

51. CRYPTO CURRENCY/VIRTUAL CURRENCY

The Company has not traded or invested in Crypto Currency or Virtual Currency during the Financial Year.

52. NO UNDISCLOSED INCOME

There are no transactions which are not recorded in books and have been surrendered or disclosed as income during the year in Income Tax Assessments.

53. INITIAL PUBLIC OFFER (IPO)

The Company filed a Draft Red Herring Prospectus on 31^st January, 2024 for its proposed Initial Public Offer (IPO) on the MSME Platform of NSE. The approval of the same was received from NSE in May, 2024 and subsequently the Company completed its Initial Public Offer (IPO) of 100% fresh issue of 64,80,000 equity shares of Face Value of '' 10 each at issued at a price of '' 147 per share aggregating to '' 9525.60 lacs. The IPO was fully subscribed and the Equity Shares of the Company were listed on NSE Emerge Platform on 3^rd June, 2024.

54. The fi gures in respect of previous year have been re-grouped/recast wherever necessary to confirm to the current year''s classification.

55. All figures are rounded off to '' lacs unless otherwise stated.