1.18 Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of past events
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation. If the effect is material, provisions are recognised at
present value by discounting the expected future cash flows at a pretax rate that reflects current market assessments of
the time value of money. When a contract becomes onerous, the present obligation under the contract is recognised as
a provision. These are reviewed at each Balance Sheet date and adjusted to reflect current best estimates.

Disclosures for contingent liability are made when there is a possible and present obligation that arises from past events
which is not recognised since it is not probable that there will be an outflow of resources. When there is a possible and
present obligation in respect of which the likelihood of outflow of resources is remote, no disclosure is made.

Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc. are recorded when it is probable that
a liability has been incurred and the amount can be reasonably estimated.

Provisions for warranty related cost are recognised when the product is sold or service is provided to the customer.

Contingent assets are not recognised in financial statements since this may result in the recognition of income that may
never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent
asset and is recognized.

1.19 Cash and Cash equivalents

Cash and cash equivalents include cash, cheques in hand, cash at bank and deposits with banks having original maturity
of three months or less. Bank deposits with original maturity of up to three months are classified as 'Cash and cash
equivalents'. Bank deposits with original maturity of more than three months and deposits with banks that are restricted
for withdrawal and usage. are classified as 'Other bank balances'.

1.20 Non-current assets held for sale and discontinued operations

Non-current assets or disposal groups comprising of assets and liabilities are classified as 'held for sale' when all the
following criteria are met:

a. decision has been made to sell;

b. the assets are available for immediate sale in its present condition;

c. the assets are being actively marketed; and

d. sale has been agreed or is expected to be concluded within 12 months of the Balance Sheet date.

Subsequently, such non-current assets and disposal groups classified as 'held for sale' are measured at the lower of its
carrying value and fair value less costs to sell.

Non-current assets held for sale are not depreciated or amortised.

A discontinued operation is a component of the entity that has been disposed of or is classified as held for
sale and represents a separate major line of business or geographical area of operations and is part of a single
co-ordinated plan to dispose of such a line of business or area of operations. The results of discontinued operations are
presented separately in the Standalone Statement of Profit and Loss.

1.21 Operating segments:

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker.

1.22 Dividend:

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

2. Critical estimates and judgments

The preparation of financial statements in conformity with Ind AS requires management to make estimates and
assumptions that affect the reported amounts of revenue, expenses, assets and liabilities. Actual results could differ
from those estimates. Any revision to accounting estimates is recognised prospectively.

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

a. Project revenue and costs

The input method places considerable importance on accurate estimates to the extent of progress towards
completion and may involve estimates on the scope of deliveries and services required for fulfilling the contractually
defined obligations. These significant estimates include total contract costs, total contract revenues, contract
risks, including technical, political and regulatory risks, and other judgments viz. variable considerations such as
customer incentive claims, liquidated damages, etc. The Company reassesses these estimates on periodic basis
and makes appropriate revisions accordingly.

b. Inventories

Inventories are measured at lower of cost or net realisable value. The amount of the write-down is estimated
based on expected inventory usefulness or marketability, considering the criteria like slow-moving, technical
obsolescence, price level etc.

c. Property, plant and equipment and intangible assets

The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful
life. The useful lives of the Company's assets are determined by management at the time the asset is acquired and
reviewed periodically, including at each financial year end. The lives are based on historical experience with similar
assets as well as anticipation of future events, which may impact their life, such as changes in technology.

d. Leases

The Company use estimates and judgements in identification of leases, lease term assessment considering
termination and renewal option and the discounting rate used.

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgement. The Company uses significant judgement in assessing
the lease term (including anticipated renewals) and the applicable discount rate. The Company determines the
lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the
lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate
the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is
reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it
considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the
option to extend the lease, or not to exercise the option to terminate the lease. The discount rate is generally based
on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar
characteristics.

e. Employee benefits

The Company's obligation for employee benefits is determined based on actuarial valuations. An actuarial valuation
involves making various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases, attrition, mortality rates and medical inflation rate.
Due to the complexities involved in the valuation and its long-term nature, these liabilities are highly sensitive
to changes in these assumptions. All assumptions are reviewed at each reporting date and adjusted, if needed
following actuarial and experience changes.

Refer note 48 for details of the key assumptions used in determining the accounting of these plans.

The parameter most sensitive to change is the discount rate. In determining the appropriate discount rate for plans
operated in India, the Actuary considers the interest rates based on Government bond yield.

e. Employee benefits (Continued)

The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change
only at interval in response to demographic changes. Future salary increases are based on expected future inflation
rates. Medical Medical inflation rate is determined based on the analysis done of historical medical expenses,
medical premium inflation, industry benchmarks and macroeconomic indicators on long-term.

f. Impairment of financial assets

The Company assesses impairment on financial assets based on Expected Credit Loss (ECL) model. The provision
matrix is based on its historically observed default rates over the expected life of the financial assets and is adjusted
for forward looking estimates. At every reporting date, the historical observed default rates are updated and
changes in forward looking estimates are analysed.

Refer note 51B for details on Impairment of financial assets.

g. Provisions and contingent liabilities

Significant estimates are involved in the determination of provisions related to onerous contracts, warranty costs,
legal and regulatory proceedings (legal proceedings) including direct and indirect tax matters. The Company
recognises the estimated liability for warranty cost when the products are sold. These estimates are established using
historical information on the nature, frequency and average cost of warranty claims and management estimates
regarding possible future incidence based on corrective actions or product failures. Management estimates
the provision based on historical trends adjusted for any forward looking specific information supplemented
by technical evaluation for products/projects and estimate of costs for repairs, replacement, material cost and
servicing.

The Company records a provision for expected loss on contracts with customers, where revenue is recognised over
time, is recognised when it is probable that the contract costs will exceed 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.

The provision for warranty and onerous contracts is based on the best estimate required to settle the present
obligation at the end of reporting period.

Further in respect of the Energy segment, warranties relate to completed projects and products sold, and are
determined on the basis of repair and replacement costs resulting from component defects or functional errors,
which may cover both warranty and post warranty period. Additionally, non-recurring provisions are recorded due
to various factors, such as portfolio changes and customer application that, in general, relate to situations in which
the expected failure rates are above normal levels. The measurement of warranty provisions reflects whether the
underlying contractual or underlying obligation results from a single obligation or a larger population of items.
The amount provided are based on the management judgement and use of assumptions basis best available
information, some of which may be for matter that are inherently uncertain and susceptible to change as more
relevant data becomes available. Considering these obligations could be concluded over a longer period exceeding
1 year, these have been appropriately discounted to reflect the time value of money.

Legal proceedings including direct and indirect tax matters often involve complex legal issues and are subject
to substantial uncertainties. Accordingly, considerable judgment is part of determining whether it is probable
that there is a present obligation as a result of a past event at the end of the reporting period, whether it is
probable that such a legal proceeding including direct and indirect tax matters will result in an outflow of resources
and whether the amount of the obligation can be reliably estimated. Where the Company has assessed that it is
only possible, but not probable, that outflow of economic resources will be required, the Company disclosing
Contingent liabilities for those matters. Internal and external counsels are generally part of the determination
process. All the estimates are revised periodically.

New Standards, Interpretations and Amendments Adopted by the Company

The Ministry of Corporate Affairs had notified the Companies (Indian Accounting Standards) Second Amendment
Rules, 2024 and Companies (Indian Accounting Standards) Third Amendment Rules, 2024, respectively, which notified/
amended certain accounting standards (see below), and are effective for annual reporting periods beginning on or after
1 April 2024:

(i) Insurance contracts - Ind AS 117; and

(ii) Lease Liability in Sale and Leaseback - Amendments to Ind AS 116.

These amendments did not have any material impact on the amounts recognised in prior periods and are not expected
to significantly affect the current or future periods.

New Amendments to Indian Accounting Standards that are not yet effective:

The Ministry of Corporate Affairs has notified the Companies (Indian Accounting Standards) Amendment Rules, 2025
and Companies (Indian Accounting Standards) Second Amendment Rules, 2025, respectively, which amended certain
accounting standards which are not yet effective for current eighteen months period ended 31 March 2026.

Amendments effective for the annual reporting periods beginning on or after 1 April 2025:

Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants -

Amendments to Ind AS 1, Presentation of Financial Statements: These amendments clarified that liabilities are classified
as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification
is unaffected by the entity's expectations or events after the reporting date (e.g. a breach of covenant). Covenants of
loan arrangements will not affect classification of liability as current or non-current at the reporting date if the entity
must only comply with the covenants after the reporting date. However, if the entity must comply with a covenant
either before or at the reporting date, this will affect the classification as current or non-current even if the covenant is
only tested for compliance after the reporting date. The amendments require certain disclosures if an entity classifies a
liability as non-current and that liability is subject to covenants that the entity must comply with within 12 months of the
reporting date.

Supplier Finance Arrangements:

Amendments to Ind AS 7, Statement of Cash Flows, and Ind AS 107, Financial Instruments: Disclosures: These
amendments require specific disclosures about supplier finance arrangements (SFAs). The amendments respond to the
investors' need for more information about SFAs to be able to assess how these arrangements affect an entity's liabilities,
cash flows and liquidity risk.

International tax reform - Pillar Two model rules:

Amendments to Ind AS 12, Income Taxes: These amendments provide temporary relief from accounting for deferred
taxes arising from the implementation of the Pillar Two model rules and introduce targeted disclosure requirements.

Lack of exchangeability:

Amendments to Ind AS 21, The Effects of Changes in Foreign Exchange Rates: The standard has been amended to help
entities to determine whether a currency is exchangeable into another currency, and which spot exchange rate to use
when it is not.

The Company is in the process of assessing the impact of application of these amendments on the financial statements.
Amendments effective for the annual reporting periods beginning on or after 1 April 2026:

Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants:

The recent amendments to Ind AS 1 have removed the carve-out from IFRS Accounting Standards which allowed
entities to classify liability as non-current on account of breach of a material provision for which the lender has agreed
to waive the breach after the end of reporting period but before the approval of the financial statements for issue.
This amendment should be applied retrospectively in accordance with the principles of Ind AS 8, Accounting Policies,
Changes in Accounting Estimates and Errors.

The Company is in the process of assessing the impact of application of these amendments on the financial statements.

i) There are no projects which are overdue or has exceeded its cost compared to its original plan during the eighteen
months period ended 31 March 2026 and year ended 30 September 2024.

ii) Refer note 41 for disclosure of contractual commitments for the acquisition of Property, plant and equipment.

iii) During the eighteen months period ended 31 March 2026, certain costs incurred by the Company have been
capitalised to property, plant and equipment and capital work-in-progress. Consequently, the related expenses
recognised in the Standalone Statement of Profit and Loss are presented net of such capitalised costs.

* denotes figures less than a million

Inter-corporate deposits (ICDs) 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 6.35% to 7.97% (30 September 2024: 5.98% to 8.10%). The total non-current and
current inter-corporate deposits to related parties constitute 99.87% (30 September 2024: 99.44%) of the total loans
of the Company. ICDs given to Siemens Financial Services Private Limited (SFSPL) is with an understanding that SFSPL
will also provide financing to Company's customers. Refer note 47 for the ICDs placed with SFSPL during the eighteen
months period ended 31 March 2026.

Note:

Inter-corporate deposits (ICDs) 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 6.35% to 7.97% (30 September 2024: 5.98% to 8.10%). The total non-current and
current inter-corporate deposits to related parties constitute 99.87% (30 September 2024: 99.44%) of the total loans
of the Company. ICDs given to Siemens Financial Services Private Limited (SFSPL) is with an understanding that SFSPL
will also provide financing to Company's customers. Refer note 47 for the ICDs placed with SFSPL during the eighteen
months period ended 31 March 2026.

23 Other equity

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

Nature and purpose of reserves

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 Limited 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 Standalone
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 Standalone
Statement of Profit and Loss (refer note 59.1).

f) Cash flow hedge reserve represents changes in the effective portion of fair value of derivative contracts that are
designated as cash flow hedges (refer note 59.1).

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.

Note:

On 21 November 2025, the Government of India has consolidated multiple existing labour legislations into a unified
framework comprising four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code
on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating
29 existing labour laws, collectively referred to as the 'New Labour Codes'. In accordance with Ind AS 19 'Employee
Benefits', changes to employee benefit plans arising from legislative amendments are treated as plan amendments,
requiring immediate recognition of past service cost in the Standalone financial statements. The Company has
assessed and disclosed the incremental impact of these changes on the basis of best information available, consistent
with the guidance provided by the Institute of Chartered Accountants of India.

The implementation of New Labour Codes has resulted in an incremental impact of ' 628 million on the provision for
gratuity and compensated absences in the Standalone financial statements of continuing operations, which is due
to the changes in the wage definition and employee policies. Considering the materiality and regulatory-driven, non¬
recurring nature of this impact, the Company has presented such incremental impact under "Exceptional Item" in the
Standalone financial statements for the eighteen months period ended 31 March 2026.

Note: The auditors' remuneration for the eighteen months period ended 31 March 2026 in the above disclosure
include both continuing operations of the Company and discontinued operations (up to date of demerger i.e. 1 March
2025 for Energy Division and for the eighteen months period ended 31 March 2026 for LVM Division) of the Company
(also refer note 59)

43 Disclosure relating to Provisions
Provision for warranty

Provision for warranty is based on historical trends adjusted for any forward looking specific information supplemented
by technical evaluation for products/projects and estimate of costs for repairs, replacement, material cost and servicing.

Provisions are measured at the present value of management's best estimate of the cost required to settle the present
obligation at the end of the reporting period. The warranty costs are expected to be incurred over the warranty period
and is accoridngly classified as current and non-current.

Provision for loss orders

A provision for expected loss on contracts with customers, where revenue is recognised over time, is recognised when it
is probable that the contract costs will exceed 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, net

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.

The movements in the above provisions are summarised below:

* Adjustments for warranty includes discounting of warranty provisions to reflect the same at present value. For other
matters, it includes netting-off provisions against the payment made under protest with Governments authorities and
other adjustments.

** Other matters include indirect tax provision of ' 827 as at 31 March 2026.

44 Disclosure pursuant to Indian Accounting Standard 115 'Revenue from contract with customers'

(i) The transactions for the eighteen months period ended 31 March 2026 in the below disclosure include transactions
from both continuing operations of the Company and discontinued operations (up to date of demerger i.e.
1 March 2025 for Energy Division and up to 31 March 2026 for Low Voltage Motors Division) of the Company
(also refer note 59).

(ii) Out of the total revenue recognised under Ind AS 115 during the period, ' 96,872 (30 September 2024:
' 72,769) is recognised over a period of time and ' 159,804 (30 September 2024: ' 129,735) is recognised at a
point in time.

45 Disclosure pursuant to Ind AS 116 "Leases"

The transactions for the eighteen months period ended 31 March 2026 in the below disclosure include transactions from
both continuing operations of the Company and discontinued operations (up to date of demerger i.e. 1 March 2025
for Energy Division and for the eighteen months period ended 31 March 2026 for Low Voltage Motors Division) of the
Company (refer note 59).

Notes:

Land and Building includes gross carrying amount of ' 5 (30 September 2024: ' 5) where the lease deed is in the
name of iMetrex Technologies Limited as lease transfer is pending due to litigation case since 2012.

*denotes figures less than a million.

**The Company enters into a vehicle lease arrangement with leasing company to use a car by its employees for
their business and personal use.

45.2 As Lessor

During the eighteen months period ended 31 March 2026, the Company sub-leased a building for which a right-of-use
asset had been recognised. Consequently, the carrying amount of the related ROU asset was derecognised and a net
investment in the sub-lease was recognized amounting to ' 450.

The transaction resulted in a net gain of ' 27, which has been recognised in the Standalone Statement of Profit and Loss
and presented as part of 'Other income' under the head 'Net gain on sub-lease of property'.

Additionally, the Company has recognised interest income of ' 56 on the lease receivables during the eighteen months
period ended 31 March 2026 (30 September 2024: ' Nil).

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. Demerger related expenses and exceptional item (refer note
39.1) are not allocated to individual segments as the CODM does not consider this impact on segment
results.

- 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 aquired from the acquisition of businesses.

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

(iv) Segment information

The business of the Company is divided into three continuing operating segments. These segments are the basis

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

- 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).

- Others :- Services provided to related parties and lease rentals have been classified as "Others".

During the eighteen months period ended 31 March 2026, the Company has discontinued the below two
segments:

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 (refer note 59.1).

Low Voltage Motors : - Supplier of products and services of low-voltage motors (refer note 59.2)

Allocation of common costs

Common allocable costs are allocated to each segment in the relative proportion / ratio of revenue from operations

of each segment to the total revenue from operations.

Unallocated corporate items

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

Notes :

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 57.

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) Purchase of services mentioned above includes settlement of forward contracts entered into to hedge commodity
exposure, with Siemens AG being the counterparty (Refer Note 54 for details). The net gain / loss disclosed therein
represents realised settlement gains and losses on commodity hedges matured during the eighteen months period
ended 31 March 2026, [(gains settlement receipts) of ' 490 and (losses settlement payments) of ' 17]

vi) The dividend paid includes payment made to Immediate parent and Parties with significant influence.

The transactions for the eighteen months period ended 31 March 2026 in the below disclosure include transactions
from both continuing operations of the Company and discontinued operations (up to date of demerger i.e. 1 March
2025 for Energy Division and for the eighteen months period ended 31 March 2026 for LVM Division) of the Company
(also refer note 59).

(i) Defined Contribution Plans

Amount of ' 226 (30 September 2024: ' 152) is recognised as an expense and included in "Employee benefits
expense" (refer note 37) in the Standalone Statement of Profit and Loss. The said amount is excluding amounts of
discontinued operations.

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
period and the method of assumption used in preparing sensitivity analysis did not change compared to previous
period.

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 period on the return expected on its existing portfolio, along with the estimated incremental investments
to be made during the period. 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 (30 September 2024:
' 376) to gratuity fund and ' 881 (30 September 2024: ' 632) to Provident fund in period ending 31 March 2027.

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.

e) During the eighteen months period ended 31 March 2026, the Company has voluntarily made application to EPFO
for the Company to comply as an unexempted establishment effective 1 September 2025. The Company awaits
approval from the EPFO on the aforementioned surrender application.

(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, calculated as per the New Labour Codes as defined in Note 39.1 or as per the Company's policy,
whichever is more beneficial. The benefit vests upon completion of five years of continuous service for permanent
employees and on completion of 12 months for fixed term employees. The level of benefits provided depends on
the member's length of service and last drawn wages as per the New Labour Codes.

II Medical benefits

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.

(v) Other Employment benefits provisions
Compensated absences

The Compensated absences cover the Company's liability for earned and sick leave. The entire amount of the provision
of ' 787 (30 September 2024: ' 904) is presented as current, since the Company does not have an unconditional right to
defer settlement for these obligations. However, based on past experience, the Company does not expect all employees
to avail the full amount of accrued leave or require payment for such leave within the next 12 months.

Compensated absences not expected to be settled within the next 12 months are ' 580 (30 September 2024: ' 607).

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.

50 Financial instruments

The carrying amount as at 31 March 2026 in the below disclosure include carrying amount of continuing operations of
the Company to the respective notes as mentioned below and discontinued operations pertaining to sale of LVM Division
of the Company (refer note 59.2).

The Company's principal financial liabilities comprise of trade payables, 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 mangement 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 instruments
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 and other receivables and trade and other 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.

A Market risk (Continued)

Commodity price risk
As at 31 March 2026:

In November 2024, the Company transitioned the execution of commodity forward contracts from Multi
Commodity Exchange (MCX) to London Metal Exchange (LME) and London Bullion Market Association (LBMA),
without any change in the underlying risk management objective. The Company's exposure to price risk of copper,
aluminum and silver ('the Commodities') arise from the future purchases of these commodities. The prices of the
commodities are linked to LME benchmark prices for copper and aluminum and LBMA for silver. Accordingly, the
Commodities are subject to price volatility on LME and LBMA.

The Company takes Buy position on LME for copper and aluminum and LBMA for silver by entering into Commodity
Forward Contracts to hedge the price risk related to the future forecasted purchase of the Commodities. The
Company enters into non-deliverable Sell contracts to square-off the open Buy Positions due to any changes in the
timing of the future forecasted purchases of copper and aluminum.

The Company hedges its commodity exposure in the overseas markets through forward contracts on LME and
LBMA which are benchmarked against prices published by the respective exchanges, with Siemens AG (the
Ultimate Holding Company) acting as the counterparty. All commodity forward contracts are denominated in
USD. Forecasted purchase of the Commodities results in exposure to commodity price risk due to the volatility
of commodity prices on LME and LBMA, thereby affecting the profitability and financial position of the Company.
The risk management strategy is to use the Buy future contracts on LME and LBMA, to hedge at least 75% of
the forecasted purchases for the next three months on a rolling basis. These contracts are not designated in a
hedging relationship, and subsequent changes in fair value are recognized in the Standalone Statement of Profit
and Loss. The Company presents gross positions for the above-mentioned contracts as on the reporting date, as
the Company does not meet criteria of offsetting.

As at 30 September 2024:

The Company took Buy position on MCX by entering into Commodity Future Contracts to hedge the price risk related
to the future forecasted purchase of the Commodities and entered 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.

As at 30 September 2024, the Company presented a net position for the Commodity Future Contracts on the
reporting date, as the Company had a legally enforceable right and intends to offset the Buy and Sell contracts.

B Credit risk

Credit risk is defined as a 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 31 March 2026 and 30 September 2024, which have significant increase in credit risk
or which are are credit impaired, other than those disclosed in these Standalone 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 eighteen months period ended and as at
31 March 2026.

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. 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.

B Credit risk (Continued)

The Company follows provisioning norms based on the roll rate method to estimate the impairment allowance
under ECL on unsecured trade receivables and contract assets. 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 specifc 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 equivalents, deposits 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.

C Liquidity risk

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 31 March 2026 and 30 September 2024.

The outstanding balances as at 31 March 2026 in the below disclosure include outstanding balances of both
continuing operations of the Company and discontinued operations pertaining to sale of LVM Division of the
Company (also refer note 59.2).

The table below summarises the maturity profile of the Company's financial liabilities based on contractually
agreed undiscounted cash flows:

52 Ratio Analysis (Continued)

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) 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.

Note:

For the purpose of calculating ratios for the eighteen months period ended 31 March 2026, all relevant amounts
pertaining to continuing and discontinued operations have been considered (refer note 59).

53 Relationship with Struck off Companies:

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

54 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 Standalone Statement of Profit and Loss.

54 Derivative Instruments (Continued)
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 31 March 2026,
the Company has recognized embedded derivative asset of ' 721 (30 September 2024: ' 161) and embedded
derivative liability of ' 3 (30 September 2024: ' 46), which will be ultimately derecognised on the initial recognition
of the receivable.

57 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 up to 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 Discontinued operations
59.1 Demerger of Energy business

During the previous year, 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, had approved a scheme of
arrangement amongst the Company, Siemens Energy India Limited ("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 in compliance with Sections 230 to 232 and other applicable provisions of the
Companies Act, 2013 (the "scheme").

On 25 March 2025, the scheme was sanctioned by the Hon'ble National Company Law Tribunal (the "NCLT"). Pursuant
to receipt of necessary statutory approvals and in accordance with the Scheme, the Company has demerged the Energy
business effective 25 March 2025, with appointed date being 1 March 2025, as per the scheme.

Upon the scheme being effective, the Company has transferred the assets and liabilities pertaining to Energy business
to SEIL as on the appointed date. The Company has accordingly derecognized from its books of account the carrying
amount of such assets and liabilities. The excess of the carrying amount of assets transferred over the carrying amount
of liabilities transferred aggregating ' 37,846 (including ' 25,478 of cash and cash equivalents being transferred as an
integral part of the scheme) had been adjusted to retained earnings in accordance with the scheme in the Standalone
financial statements. Additionally, in accordance with the scheme, the Company had also made certain consequential
adjustments to applicable reserves within equity.

Further, pursuant to the requirements of the Indian Accounting Standards (Ind AS), the Company's Energy business up
to the appointed date of demerger has been disclosed as discontinued operations; accordingly, the previous year figures
in the Standalone Statement of Profit and Loss have been re-presented.

Brief particulars of the Discontinued Operations of Energy business are given as under:

Based on the recommendations of the Committee of Directors and the Audit Committee, the Board of Directors of the
Company, at its meeting held on 8 December 2025, has approved the sale and transfer of the Company's LVM business
to Innomotics India Private Limited ("the Buyer") as a going concern by way of a slump sale ("Proposed Transaction"),
as per the terms of the slump sale agreement entered into by the Company inter alia with the Buyer, subject to fulfilment
of customary conditions precedent, including receipt of requisite regulatory and statutory approvals such as approval
from the Competition Commission of India ("CCI"), as may be applicable, for a cash consideration (enterprise value) of
' 22,000 on a cash free, debt free basis and subject to mutually agreed adjustments. During the eighteen months period
ended 31 March 2026, the Buyer has received CCI's approval on the Proposed Transaction. The Proposed Transaction is
yet to be consummated based on the steps agreed between the parties.

Consequently, pursuant to the requirements of Ind AS 105 "Non Current Assets held for Sale and Discontinued Operations",
the results of the Company's LVM business have been disclosed as discontinued operations; accordingly, the previous
period figures in the Standalone Statement of Profit and Loss have been re-presented.

Brief particulars of the Discontinued Operations of LVM business are given as under:

60 Business Combination

60.1 During the year ended 30 September 2023, the Company had acquired the Electric Vehicle division of Mass-Tech Controls
Pvt. Ltd. for a consideration of ' 368 (net) as part of its strategy to expand in the EV market in India. The acquisition
resulted in recognition of goodwill, primarily representing expected synergies, enhanced capabilities and future growth
opportunities, which is not tax deductible. The purchase price allocation was completed in the previous year ended

30 September 2024 in accordance with Ind AS 103 "Business Combinations". The fair value of net identifiable assets
was finalised at ' 146 after measurement period adjustments, mainly relating to intangible assets and inventories.
Accordingly, goodwill of ' 222 was recognised and allocated to the Smart Infrastructure segment.

60.2 Based on the recommendations of the Committee of Directors and the Audit Committee, the Board of Directors of the
Company, at its meeting held on 26 May 2026, approved the Scheme of Amalgamation of Siemens Rail Automation
Private Limited ("SRAPL"), a wholly owned subsidiary of the Company, with the Company and their respective shareholders
under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013. The Scheme of Amalgamation
is, inter alia, subject to receipt of requisite approvals from shareholders and creditors of SRAPL and the Company,
as applicable, and other requisite regulatory authorities including the National Company Law Tribunal.

61 Change of Financial Year

The Board of Directors at its meeting held on 8 August 2025 approved the change of financial year of the Company
to uniform financial year commencing on 1 April of every year and ending on 31 March of the following year
including observing a one-time transitional financial year from 1 October 2024 to 31 March 2026. Consequently,
as a transitional arrangement, the Company observed an eighteen-month financial year from 1 October 2024 to

31 March 2026, while the immediately preceding financial year was for a period of twelve months from 1 October
2023 to 30 September 2024. The Standalone audited financial statements for the previous twelve months financial
year ended 30 September 2024 and the Standalone audited financial statements for the eighteen months period ended
31 March 2026 are therefore not strictly comparable.

62 (a) Audit Trail:

The Company uses multiple accounting software which have features of recording audit trail
(edit log) facility and these have operated throughout the year for all relevant transactions recorded in the
respective software, except the following:

1. in respect of the core accounting software, the audit log is not maintained in case of modification made with
specific access and further, the audit trail feature was not enabled at the database level to log any direct data
changes;

2. with respect to another third-party software for maintaining employee masters, the independent service
auditor's report for October 2024 to September 2025 period did not address the audit trail / edit log feature;
and the report for subsequent period is yet to be issued;

3. for another third-party software used for payroll records, the independent service auditor's report confirmed
that the audit trail feature was enabled and operated for all relevant transactions from October 2024 to
December 2025. The report for subsequent period, including January to March 2026, is yet to be issued.
Further, the audit trial, to the extent maintained in the prior year, has been preserved by the Company as per
the statutory requirements for record retention.

(b) Back up of books of accounts :

The Company has kept proper books of accounts in electronic mode on servers physically located in India on daily basis
during the eighteen months period ended 31 March 2026 except for backup of certain books of account and other
books and papers maintained in electronic mode which primarily includes employee masters, paper records, etc.

65 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 eighteen months period
ended 31 March 2026 / year ended 30 September 2024.

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 information disclosed in
notes 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) There is no income surrendered or disclosed as income during the eighteen months period ended 31 March 2026
or year ended 30 September 2024 in the tax assessments under the Income Tax Act, 1961, that has not been
recorded in the books of account.

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.

vii) 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.