3.12 PROVISIONS (OTHER THAN FOR EMPLOYEE BENEFITS) AND CONTINGENCIES:

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. If the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When dis¬
counting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be
received and the amount of the receivable can be measured reliably. The expense relating to a provision
is presented in the Statement of profit and loss net of any reimbursement.

Provision for Warranties:

The warranty provision is provided at the end of reporting period based on technical evaluation, histor¬
ical warranty data and all possible outcomes by their associated probabilities.

Onerous contracts: A contract is considered to be onerous when the expected economic benefits to
be derived by the Company from the contract are lower than the unavoidable cost of meeting its obli¬
gations under the contract. The provision for an onerous contract is measured at the present value of
the lower of the expected cost of terminating the contract and the expected net cost of continuing with
the contract.

Contingent Assets:

A contingent asset is not recognised but disclosed in the Financial Statements where an inflow of eco¬
nomic benefit is probable.

Contingent liabilities

Contingent liability is disclosed in the case of:

i. A present obligation arising from past events, when it is not probable that an outflow of resources will
be required to settle the obligation;

ii. A present obligation arising from past events, when no reliable estimate is possible;

iii. A possible obligation arising from past events, unless the probability of outflow of resources is
remote.

3.13 BORROWING COSTS

Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets,
that necessarily take a substantial period to get ready for their intended use or sale, are added to the cost
of those assets, until the assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing cost eligible for capitalization.

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

3.14 LEASES

A contract is, or contains, a lease if the contract conveys right to control the use of an identified asset for
a period of time in exchange for consideration.

Company as a lessee

A. Lease Liability

At the commencement date, the company measures the lease liability at the present value of the lease
payments that are not paid at that date. The lease payments shall be discounted using incremental bor¬
rowing rate (as determined by the management from time to time).

The Company determines the lease term as the non-cancellable period of a lease, together with both
periods covered by an option to extend or terminate the lease if the Company is reasonably certain based
on relevant facts and circumstances that the option to extend or terminate will be exercised. If there is a
change in facts and circumstances, the expected lease term is revised accordingly.

B. Right of use assets

Initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any
lease incentives.

Subsequent measurement

A. Lease Liability

Company measures the lease liability by (a) increasing the carrying amount to reflect interest on the lease
liability; (b) reducing the carrying amount to reflect the lease payments made; and (c ) remeasuring the
carrying amounts to reflect any reassessment or lease modifications

B. Right of use assets

Subsequently measured at cost less accumulated depreciation and impairment losses. Right of use
assets are amortised from the commencement date on straight-line basis over the shorter of the lease
term and useful life of the under lying asset

Impairment

Right of use assets are evaluated for recoverability wherever events or changes in circumstances indicate
that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recov¬
erable amount (i.e. the higher of the fair value less cost to sell and the value in use) is determined on an
individual asset basis unless the asset does not generate cash flows that are largely independent of those
from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit
(CGU) to which the asset belongs.

Short term lease

Short term lease is that, at the commencement date, has a lease term of 12 months, or less. A lease that
contains a purchase option is not a short term lease. If the company elected to apply short term lease,
the lessee shall recognise the lease payments associated with those leases as an expense on either a
straight line basis over the lease term or another systematic basis. The lessee shall apply another sys¬
tematic basis if that basis is more representative of the pattern of the lessee’s benefit. Leases of low value
assets are recognised in the statement of profit and loss on straight line basis.

As a lessor

Leases for which the company is a lessor is classified as a finance or operating lease. Whenever the
terms of the lease transfers substantially all the risks and rewards of ownership to the lessee, the contract
is classified as as finance lease. All other leases are classified as operating leases.

Lease income is recognised in the statement of profit and loss on straight line basis over the lease term

3.15 EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the profit/ (loss) from continuing operations and the
total profit/ (loss)attributable to equity shareholders(after deducting attributable taxes) by the weighted
average number of equity shares outstanding during the period.

For calculating diluted earnings per share, the profit/(loss) from continuing operations and the total profit/
(loss) attributable to equity shareholders by the weighted average number of shares outstanding during
the period after adjusting the effects of all dilutive potential equity shares.

3.16 CASH FLOW STATEMENT

Cash and cash equivalents include cash at bank and cash in hand and highly liquid interest-bearing
securities with maturities of three months or less from the date of inception/acquisition

The Cash Flow Statement is prepared by using the “indirect method” set out in Ind AS 7 on “Cash Flow
Statements” and presents the cash flows during the period by operating, investing and financing activi¬
ties of the company.

3.17 SEGMENT REPORTING:

Segment information Operating segments are defined as components of an enterprise for which discrete
financial information is available that is evaluated regularly by the chief operating decision maker, in
deciding how to allocate resources and assessing performance Revenue and expenses directly attribut¬
able to segments are reported under each reportable segment. Expenses which are not directly identifi¬
able to each reporting segment have been allocated on the basis of associated revenue of the segment.
All other expenses which are not attributable or allocable to segments have been disclosed as unalloca¬
ble expenses.

The Segment disclosure are given in the Consolidated Financial Statements by virtue of exemption given
in Ind AS - “Operating Segment”.

B. Functional and presentation currency

These financial statements are presented in Indian Rupees (?), which is also the Company’s functional
currency. All amounts have been rounded-off to the nearest lakhs, unless otherwise indicated.

Note 16.3 Terms / rights attached to class of shares

(a) The Company has only one class of share referred to as equity shares having a par value of ? 10/-. Each
holder of equity shares is entitled to one vote per share.

(b) The Company declares and pays dividends if any, in Indian rupees. The dividend proposed, if any, by the
Board of Directors is subject to the approval of the Shareholders at the ensuing Annual General Meeting,
except in case of interim dividend.

(c) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the
remaining assets of the Company, after distribution of all preferential amount. The distribution will be propor¬
tionate to the number of equity shares held by the share holders.

(d) For the period of five years immediately preceding the date as at which the Balance Sheet is prepared:

(1) During the year 30,33,442 Equity shares were allotted as fully paid up pursuant to contract(s) without payment

being received in cash.

The establishment of S & S Power Switchgear - Employee Stock Option Scheme 2024 (ESOS 2024) was
approved by the Board of Directors at its meeting held on August 30, 2024 and by the shareholders in the Annual
General Meeting held on September 30, 2024. The Scheme shall be administered by the Committee via primary
allotment of equity shares

The ESOS 2024 scheme is designed to provide benefits to the eligible employees of the company and its
subsidiaries. Under the plan, the participants are granted options which vest upon completion of three years
of service from the grant date. Only Employees are eligible for being granted Options under the Scheme. The
specific Employees to whom the Options would be granted, and their Eligibility Criteria shall be determined by
the Committee.

Once vested, the options remain exercisable for a maximum period of 4 (Four) years commencing from the rel¬
evant date of Vesting of Options, or such other shorter period as may be prescribed by the Committee at time
of Grant.

Options are granted under the scheme for no consideration and carry no dividend or voting rights. When exer¬
cisable, each option is convertible into one equity share.

[A] Defined contribution plans:

The Company makes contribution 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.

The Company recognised ? 11.12 lakhs in current financial year (? 6.37 lakhs in immedeate previous financial
year) for provident fund contributions in the Statement of Profit and Loss.

[B] Defined benefit plan:

The Company makes annual contributions to Employees’ Gratuity Fund which is administered by the Life
Insurance Corporation of India. Having regard to the assets of the gratuity fund and the return on the investment
the company does not expect any deficiency as at the year end. The scheme provides for payment to vested
employees as under:

i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of
Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.
Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is
below this rate, it will create plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially off set by an
increase in the plan assets.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants both during and after their employment. An increase in the life expectancy of the
plan participants will increase the plan’s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

j) Sensitivity analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and
expected salary increase. The sensitivity analysis below have been determined based on reasonably possible
changes of the respective assumptions occurring at the end of the reporting period, while holding all other
assumptions constant.

[B] Defined benefit plan: Leave

The Company does not makes annual contributions to leave benefit Fund. The scheme provides for payment
to vested employees as under:

i) On normal retirement / early retirement / withdrawal / resignation: Accumulated leave balance as on the date
of retirement /resignation

ii) On death in service: Accumulated leave balances
Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is
below this rate, it will create plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants both during and after their employment. An increase in the life expectancy of the
plan participants will increase the plan’s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

Note 39 Financial instruments
[A] Capital Management:

The Company’s policy is to maintain a strong capital base so as to ensure that the Company is able to continue as
going concern to sustain future development of the business. The Company monitors the return on capital as well
as the level of dividends to ordinary shareholders.

Its guiding principles

i) Maintenance of financial strength to ensure the highest ratings;

ii) Ensure financial flexibility and diversify sources at financing;

included in level 2. In the case of the mutual funds are valued using the closing NAV. In the case of Derivative
contracts, the Company has valued the same using the forward exchange rate as at the reporting date.

iii) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. This is the case for unlisted equity securities included in level 3. The Company owns unlisted equity
shares in companies, which are non-profit companies providing facilities for treating effluents generated during
its manufacturing process. In the absence of any observable market data in relation to the said companies, the
same have been categorised as Level 3. Considering the objective of investment and materiality, its fair value
have been considered same as cost as at the reporting date.

Note 39 Financial risk management
Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s
risk management framework.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company,
to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Company’s activities.

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

The Company has exposure to the following risks arising from financial instruments:

A) Credit risk;

B) Liquidity risk;

C) Market risk; and

D) Interest rate risk
[A] Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans
and investment in debt securities. Credit risk is managed through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal
course of business. The Company establishes an allowance for doubtful trade receivables and impairment that
represents its estimate of incurred losses in respect of trade and other receivables and investments.

The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their
respective carrying amount.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer and including the default risk of the industry, also has an influence on credit risk
assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a
significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting
date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding¬
looking information such as:

i) Actual or expected significant adverse changes in business;

ii) Actual or expected significant changes in the operating results of the counterparty;

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to
meet its obligations;

iv) Significant increase in credit risk on other financial instruments of the same counterparty;

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party
guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company
continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made,
these are recognized as income in the statement of profit and loss.

The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information.
The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as
given in the provision matrix. The provision matrix at the end of the reporting period is as follows :

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices
and the business environment in which the entity operates. Loss rates are based on actual credit loss experience
and past trends.

Loans

In the case of loans to concerned employees, the same is managed by establishing limits. (Which in turn based on
the employees salaries and number of years of service put in by the concern employee)

Cash and cash equivalents

The Company held cash and cash equivalents of ? 31.71 lakhs at 31st Mar, 2025 (? 1.68 lakhs at 31st Mar, 2024).
The cash and cash equivalents are held with bank and financial institution counterparties with good credit ratings.

[B] Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The responsibility for liquidity risk
management rests with the board of directors, which has established an appropriate liquidity risk management
framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity
management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities
and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the
maturity profiles of financial assets and liabilities.

The current liabilities include inter corporate deposits from related parties which are repayable on demand.
Based on past experience, the Company does not expect immediate demand for repayment of such deposits

[C] Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity
prices - will affect the Company’s income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.

[D] Currency risk

The Company is not exposed to the foreign currency transactions hence the disclosure is not applicable

[E] Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk
is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest
rates, in cases where the borrowings are measured at fair value through profit or loss. Cash flow interest rate risk
is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations
in the interest rates. The Company’s investments are primarily in fixed rate interest bearing investments. Hence,
the Company is not significantly exposed to interest rate risk. Also there is no material interest risk relating to the
Company’s financial liabilities.

[F] Fair Values:

The following table presents the carrying amounts and fair value of each category of financial assets and liabilities.

The Company is a party to various legal proceedings in the normal course of business and does not expect
the outcome of these proceedings to have any material adverse effect on its financial conditions, results of
operations or cash flows. Further, claims by parties in respect of which the Management have been legally
advised that the same are frivolous and not tenable, have not been considered as contingent liabilities as the
possibility of an outflow of resources embodying economic benefit is highly remote.

For Asst. year 2007-08, Department has filed an appeal against the CIT(A)’s order directing the deletion of
addition made representing waiver of principal portion of loans from banks and financial institutions and the
consequential tax demand is ? 92.98 lakhs. The High Court Judgment dated 22.08.2019 has dismissed the case
against the Department on account of monetary limit being increased to Rs 1 Crore [Tax case appeal no 773 of
2013]

In respect to PF contribution threshold, there are numerous interpretative issues relating to the Supreme Court
(SC) Judgement on PF dated 28th February, 2019. The company will update its provision, on receiving further
clarity on the subject. In respect of the items above, further cash outflows in respect of contingent liabilities are
determinable only on receipt of judgements/decisions pending at various forums/authority. The company does
not expect the outcome of matters stated above to have a material adverse effect on the company’s financial
conditions, result of operations or cash flows.

Note 43 CSR Expenditure

The Company does not meet the turnover and networth criteria specified under Section 135 of the Companies
Act, 2013 to constitute a Corporate Social Responsibility Committee. Thus, provisions of Section 135 and
disclosure requirements specified therein are not applicable to the company.

* The Company has given corporate guarantee for working capital facility given by ICICI for its subsidiary entity
S & S Power Switchgear Equipments Limited

Note 47 Going Concern

As on 31st March 2023, the Company’s current liabilities exceeds its current assets mainly due to the loans
granted by the promoter group for sustaining the business operations. The Company has also suffered losses
over the last few years. The promoter group has promised to extend continuous support to enable the long-term
operations of the company. Hence the accounts are prepared on a Going concern basis.

Note 47 Segment Information

As permitted by paragraph 4 of Ind AS-108, ‘Operating Segment’, if a single financial report contains both
consolidated financial statements and the separate financial statements of the parent, segment information need
be presented only on the basis of the consolidated financial statements. Thus, disclosures required by Ind-AS
108 are given in consolidated financial statements.

Note 48 Other Statutory Information

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

ii. The Company does not have any transaction with Companies Struck off u/s. 248 of the Companies Act,
2013 or u/s. 560 of the Companies Act, 1956.

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

iv. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

v. No Bank or financial institution or other lender has declared the Corporation as willful defaulter.

vi. The Company has not advanced or loaned or invested funds to any persons or entities, including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

vii. The Company have 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.

viii. The company doesn’t hold any immovable property.

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

x. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of
the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as
amended).

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

Note 49 Events occurring after the Balance sheet date

No adjusting or significant non-adjusting events have occurred between the reporting date (31st March, 2025)
and the report release date (23rd May, 2025).

Note 50 Previous year figures have been regrouped/reclassified to confirm to current year classification.

See accompanying notes forming part of the financial statements

As per our attached report of even date

For CNK & Associates LLP For and on behalf of the Board of Directors of

Chartered Accountants S&S Power Switchgear Limited

ICAI Firm Registration No: 101961W/W100036 CIN: L31200TN1975PLC006966

Uttamchand Jain Krishnakumar Ramanathan Ashish Sushil Jalan

Partner Managing Director Chairman

Membership No: 205976 DIN No: 08880943 DIN No: 00031311

Place: Chennai Place: Kolkata Place: Kolkata

Date: 23-May-2025 Date: 23-May-2025 Date: 23-May-2025

Sathyanarayanan C N Prince Thomas

Group Chief Financial Officer Company Secretary & Compliance Officer

Place: Kolkata Place: Kolkata

Date: 23-May-2025 Date: 23-May-2025