m. Provisions and Contingent Liabilities

The Company estimates the provisions that
have present obligations as a result of past
events, and it is probable that an outflow
of resources will be required to settle the

obligations. These provisions are reviewed at
the end of each reporting date and are adjusted
to reflect the current best estimates.

The Company uses significant judgement
to disclose contingent liabilities. Contingent
liabilities are disclosed when there is a possible
obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more
uncertain future events not wholly within the
control of the Company or a present obligation
that arises from past events where it is either
not probable that an outflow of resources will
be required to settle the obligation or a reliable
estimate of the amount cannot be made.
Contingent assets are neither recognized nor
disclosed in the financial statements.

n. Share based payments transactions.

Employees (including senior executives) of the
Company receive remuneration in the form of
share-based payments, whereby employees
render services as consideration for equity
instruments (equity-settled transactions).
The cost of equity-settled transactions is
determined by the fair value at the date
when the grant is made using an appropriate
valuation model

That cost is recognized, together with a
corresponding increase in share-based
payment (SBP) reserves in equity, over the
period in which the performance and/or
service conditions are fulfilled in employee
benefits expense. The cumulative expense
recognized for equity-settled transactions
at each reporting date until the vesting date
reflects the extent to which the vesting period
has expired and the Companies’ best estimate
of the number of equity instruments that will
ultimately vest. The statement of profit and loss
expense or credit for a period represents the
movement in cumulative expense recognized
as at the beginning and end of that period and
is recognized in employee benefits expense.

No expense is recognized for awards that
do not ultimately vest because non-market
performance and/or service conditions have
not been met. Where awards include a market
or non-vesting condition, the transactions are
treated as vested irrespective of whether the
market or non-vesting condition is satisfied,
provided that all other performance and/or
service conditions are satisfied.

In case of share-based payments made to
employees of subsidiary companies, where the
Company (i.e., the parent) grants the parent’s
equity instruments, the share-based payment
expense is recognized in the financial statements
of the respective subsidiary, with a corresponding
credit to equity in the books of the Company. The
Company records a receivable from the subsidiary
for the value of the share-based payment charged
to the subsidiary, with a corresponding credit to
equity (share-based payment reserve), as per the
requirements of Ind AS 102.

o. Earnings Per Share [EPS]

Basic earnings per share is calculated by dividing
the net profit or loss for the year attributable to
equity shareholders by the weighted average
number of equity shares outstanding during the
year. Earnings considered in ascertaining the
Company’s earnings per share is the net profit
or loss for the year after deducting preference
dividends and any attributable tax thereto for
the year. The weighted average number of
equity shares outstanding during the year and
for all the years presented is adjusted for events,
such as bonus shares, other than the conversion
of potential equity shares, that have changed the
number of equity shares outstanding, without a
corresponding change in resource.

For the purpose of calculating diluted earnings
per share, the weighted average number of
shares outstanding during the year is adjusted
for the effects of all dilutive potential equity
shares which is only attributable to the share
based payment transactions as disclosed
above and in note 38.

p. Segment Reporting

The Company’s operations predominantly relate
to designing, development and manufacturing
of test and measuring instruments and

industrial control products. The Chief Operating
Decision Maker (CODM) reviews the operations
of the Company as one operating segment.
In accordance with IND AS 108, ‘Operating
Segments’, the company has presented the
segment information on a consolidated basis
in its consolidated financial statements.

4 New standards and amendments
issued but not effective

Amendment to Ind AS 1 ‘Presentation of
Financial Statements’- Classification of Liabilities
as current or non-current and non-current liabilities
with covenants:

The amendment includes specific provisions that
will take effect for reporting periods beginning
on or after April 1, 2026, retrospectively, as
outlined below:

a) Breach of material covenant for long-term loan
arrangement on or before end of reporting
period with effect that liability becomes payable
on demand as on reporting date, then it shall
be classified as current liability, if lender agreed
after reporting period and before approval of
financial statements to not demand payment
as a consequence of breach.

b) Classify as non-current liability, if lender
agreed by end of reporting period to provide
grace period ending at least 12 months after
reporting period within which entity can rectify
the breach provided lender does not demand
immediate repayment.

c) Disclose information about the timing of
settlement to understand the impact of
the liability on the financial statements.
The Company does not expect this amendment
to have an impact on its operations or
standalone financial statements.

Note 9.1 : Impairment of investment in subsidiary

During the year ended March 31, 2026, the Company has recognized an impairment loss of H 2.85 million (March
31, 2025 -H 2.96 million) in respect of its investment in Energy Solutions Labs Private Limited, a subsidiary. The
impairment loss has been recorded in accordance with the Company’s accounting policy on impairment of
investments in subsidiaries, as stated in Note 3(ii) to the financial statements.

The impairment was determined based on the recoverable amount, which was assessed using the value-in-use
approach. The key assumptions used in the discounted cash flow model included:

Discount rate: 19.66%

Forecast period: 5 Years i.e. April 01, 2026 to March 31, 2031.

Terminal growth rate: 5%

The impairment charge has been recognized in the Statement of Profit and Loss under "Other Expenses”.

Post impairment, the carrying value of the investment in Energy Solutions Labs Private Limited is H 16.47 million.
Note 9.2: Share-based Payment Cost for Subsidiary Employees

In earlier years, the Company had granted equity-settled share-based payment (ESOP) awards to employees
of its subsidiary companies. As there was no arrangement for recovery of such costs from the subsidiaries, the
related share-based payment expense was recognized as a deemed investment in the respective subsidiaries, in
accordance with the principles of Ind AS 102 - Share-based Payment and Ind AS 27 - Separate Financial Statements.

During the previous year ended on March 31, 2025, the Company had entered into a formal cost-sharing
agreement dated August 31, 2024 with the subsidiaries, pursuant to which the share-based payment cost is
recoverable. Accordingly, an amount of H 153.59 million pertaining to earlier years ESOP charges has been
recognized as a receivable under ‘Other Financial Assets’ in the previous year ended on March 31, 2025.

The corresponding reduction has been made from the carrying amount of investments in subsidiaries in the
previous year ended on March 31, 2025.

36 Earnings per share

Basic earnings per share amounts are calculated by dividing the profit for the year attributable to equity holders
by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the profit attributable to equity holders by the
weighted average number of equity shares outstanding during the year plus the weighted average number of
equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares .

(B) Defined benefit plans

a) Gratuity payable to employees

The Company and its operates a defined benefit plan vis. gratuity for its employees which is required by the
Payment of Gratuity Act, 1972. Under the gratuity plan, every employee who has completed at least 5 years
of service gets a gratuity on departure at 15 days (minimum) of the last drawn salary for each completed
year of service. The scheme is funded with an insurance Company in the form of qualifying insurance policy
[Plan Asset].

The fund is subject to risks such as asset volatility, changes in asset yields and asset liability mismatch risk.
In managing the plan assets, the management of the company reviews and manages these risks associated
with the funded plan. Each year, the management of the Company reviews the level of funding in the gratuity
plan. Such a review includes asset-liability matching strategy and investment risk management policy (which
includes contributing to plans that invest in risk-averse markets). The management aims to keep annual
contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise.”

vii) Risk Exposure
Asset volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets
under perform this yield, this will create a deficit. All plan assets are maintained in a trust fund managed
by Life Insurance Corporation of India (LIC) who have been providing consistent and competitive
returns over the years. The Company has opted for a traditional fund wherein all assets are invested
primarily in risk averse markets. The Company has no control over the management of funds but this
option provides a high level of safety for the total corpus. A single account is maintained for both the
investment and claim settlement and hence, 100% liquidity is ensured. Also, interest rate and inflation
risk are taken care of.

Changes in bond yields

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an yields
increase in the value of the plans’ bond holdings.

Future salary escalation and inflation risk

Since price inflation and salary growth are linked economically, they are combined for disclosure
purposes. Rising salaries will often result in higher future defined benefit payments resulting in higher
present value of liabilities. Further, unexpected salary increases provided at the discretion of the
management may lead to uncertainties in estimating this increasing risk.

Asset-Liability mismatch risk

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By
matching duration with the defined benefit liabilities, the Company is successfully able to neutralize
valuation swings caused by interest rate movements. Hence, companies are encouraged to adopt
asset-liability management.

39 Leases where company is a lessee

Company has taken various sales offices from multiple parties on lease, the tenure of lease ranges from 3 to 5
years and one of corporate office in Ahmedabad for period of more than 5 years.

Payments of lease rentals has been made in accordance with the rentals specified in Schedule. Lease liability
has been recognized in the books of accounts by company at present value of lease payments and Right of use
asset at cost in accordance with the requirements of IND AS 116.

(D) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at the year-end are unsecured and interest free except for borrowings and
settlement occurs in cash. For the period ended March 31, 2026, the Company has not recorded any impairment
of receivables relating to amounts owed by related parties (March 31, 2025: Nil). This assessment is undertaken
each financial year through examining the financial position of the related party and the market in which the
related party operates.

42 Financial risk management objectives and policies

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk
and liquidity risk. The Company’s risk management is coordinated by the Board of Directors and focuses on
securing long term and short term cash flows. The Company does not engage in trading of financial assets for
speculative purposes.

(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 three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include
borrowings and derivative financial instruments. The Company have certain debt obligations with floating
interest rates.

The sensitivity analysis in the following sections relate to the position as at March 31,2026 & March 31, 2025.
The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating
interest rates of the debt and the proportion of financial instruments in foreign currencies are all constant.

The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other
post retirement obligations and provisions

(i) 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. The Company exposure to the risk of changes in market
interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.
The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans
and borrowings.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that
portion of loans and borrowings. With all other variables held constant, the Company’s profit before tax is
affected through the impact on floating rate borrowings, as follows:

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange
rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in
a foreign currency).

41 Segment Reporting

The Company’s operations predominantly relate to manufacturing & supply of digital and analog electrical measuring
meters & special purpose switches. The Chief Operating Decision Maker (CODM) reviews the operations of the
Company as one operating segment. In accordance with IND AS 108, ‘Operating Segments’, the company has
presented the segment information on consolidated basis in its consolidated financial statements.

(B) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities, including deposits with banks and financial institutions, and
statutory deposits with regulatory agencies.

Trade receivables

Customer credit risk is managed subject to the Company’s established policy, procedures and control relating
to customer credit risk management. Credit quality of a customer is assessed taking into account their financial
position, past experience and other factors. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit
losses. The provision rates are based on days past due for groupings of various customer segments with similar
loss patterns (i.e., by geographical region, product type, customer type and rating, and coverage by letters of
credit or other forms of credit insurance). The calculation reflects the probability-weighted outcome, the time
value of money and reasonable and supportable information that is available at the reporting date about past
events, current conditions and forecasts of future economic conditions.

The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables disclosed in
note 14. The Company does not hold collateral as security. The company evaluates the concentration of risk with
respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate
in largely independent markets. The company uses expected credit loss model to assess the impairment loss.

Term deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury
department in accordance with the Company’s Policy. The investment of surplus funds is made in fixed
deposits which are approved by the Director. The Company’s maximum exposure to credit risk for the
components of the balance sheet at 31 March 2026 & 31 March 2025 is the carrying amount illustrated in
Note 15, and 16.

44 Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:

• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 - Inputs for the assets or liabilities that are not based on observable market data
(unobservable inputs).

(a) No financial assets/liabilities have been designated at FVTPL.

(b) Fair Value of financial assets and liabilities measured at amortized cost

The fair value of other financial assets, cash and cash equivalents, trade receivables, loans, trade payables
and other financial liabilities approximate the carrying amounts because of the short term nature of these
financial instruments.

The amortized cost using effective interest rate (EIR) of non-current financial assets consisting of security
and term deposits and of non current financial liabilities consisting of lease liability are not significantly
different from the carrying amount.

45 Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium
and all other equity reserves attributable to the equity holders. The primary objective of the Company’s
capital management is to maximize the shareholder value and to ensure the Company’s ability to continue as a
going concern.

The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and
debt. Total debt comprises of lease liability. The company manages the capital structure and makes adjustments
to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

Sanctioned limit with Bank has been secured by hypothecation of first charge on stock-in-trade, present and future,
consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever
being movable properties and all the debts, that is, all the book debts, outstandings, monies receivables, claims,
bills, invoice documents, contracts, guarantees, and rights which are now due and owing or which may at any time
hereafter during the continuance of this security becomes due and owing to the Company. The loan is also supported
by first charge by way of an equitable mortgage of industrial land and building (by deposit of title deeds).

Company had also taken a EURO loan from DBS Bank India for acquisition of Investment in a Subsidiary in China,
Such loan was secured by way of Fixed Deposits held with such bank amounting to H 231.49 million. However
the loan has been repaid in full during the previous year ended March 31, 2025.

54 Relationship with Struck off Companies under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956

The Company does not have any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956

55 Registration of charges or satisfaction with Registrar of Companies (ROC)

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

56 Compliance with number of layers of companies

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with the Companies (Restriction on number of Layers) Rules, 2017.

57 Compliance with approved Scheme(s) of Arrangements

The Company has not entered into any scheme of arrangement

58 Utilization of Borrowed funds and share premium:

(i) The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium
or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding 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 to or on behalf of the Ultimate Beneficiaries”

(ii) 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,

59 Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend
at least 2% of its average net profit for the immediately preceding three financial years on corporate social
responsibility (CSR) activities. The areas for CSR activities are charity to educational institute, animal welfare,
social welfare etc. A CSR committee has been formed by the company as per the Act. The funds are utilized
through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

61 Willful Defaulter

The Company has not being declared as willful defaulter by any bank or financials institution or any
government authority.

62 Undisclosed income

The Company do not have any undisclosed income which is not recorded in the books of account that has been
surrendered or disclosed as income during the year and in the previous 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.

63 Details of Crypto Currency or Virtual Currency

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

64 Compliance with Section 143(3) for Maintenance of Books of Account & Audit trail

The Company has used an accounting software for maintaining its books of account which has a feature of
recording audit trail (edit log) facility, except that audit trail feature was not enabled at the database level in
respect of an accounting software to log any direct data changes.

Further, to the extent enabled, audit trail feature has operated throughout the year for all relevant transactions
recorded in the accounting software. Also, we did not come across any instance of audit trail feature being
tampered with. Additionally, the audit trail of prior years has been preserved by the Company as per the statutory
requirements for record retention to the extent it was enabled and recorded in prior years.

Accordingly, the Company had raised H 750.00 Million through public issue of fresh equity shares, mainly with
an objective of financing the cost towards the expansion of Nashik Manufacturing Facility I & II and for general
corporate purposes. The Company has estimated to incur expenses aggregating H 42.50 Million towards the
initial public offering for issue of fresh equity shares. Given below are the details of utilization of proceeds raised
through public issue during the year ended March 31, 2026.

67 Events after the reporting period

The Board of Directors has recommended a final dividend of H 2/- per equity share having face value of H 10
each for the year ended March 31, 2026 in a board meeting held on 18 May 2026 , subject to the approval of the
shareholders at the ensuing Annual General Meeting of the Company.

68 The Code on Social Security, 2020

Based on the requirements of New Labour Codes and relevant Accounting Standards, the company has estimated
the liability for employee benefits, which has resulted in an incremental expense, on account of recognition of
past service cost of gratuity liability and leave encashment liability to the employees amounting to H 24.27 million
and H 2.13 million respectively during the year ended March 31, 2026. The Company continues to monitor the
finalisation of Central and State Rules and clarifications from the Government on the New Labour Codes and
would provide appropriate accounting effect on the basis of such developments, as needed.

69 Previous year figures have been regrouped/ reclassified to correspond with the current year’s classification
or disclosure.

(B) Loans and advances in the nature of loans to firms/companies in which directors are
interested by name and amount: Nil (other than subsidiaries as mention above)(C) Investments by the loanee in the shares of parent company and subsidiary company
when the company has made a loan or advance in the nature of loan as at March 31,
2026 K Nil, March 31, 2025 L Nil.66 IPO Event & Utilization of money raised through public issue.

During the financial year 2023-24, The Company had completed an Initial Public Offer (‘IPO’) of 1,11,28,858
shares at the face value of H 10 each at the issue price of H 441 per share, comprising of offer for sale 94,28,178
shares by Selling Shareholders and fresh issue of 17,00,680 shares aggregating to H 4907.83 million. The equity
shares of the company were listed on BSE Limited (‘BSE’) and National Stock Exchange of India Limited (‘NSE’)
on September 11, 2023.