m. Provisions, Contingent Liabilities & Contingent Assets

Provisions are recognised when the company has a present obligation (legal
or constructive) as a result of a past event, and it is probable that an outflow
of economic benefits will be required to settle the obligation and a reliable
estimate of the amount of the obligation can be made. Where the time value
of money is material, provisions are stated at the present value of the
expenditure expected to settle the obligation. All provisions are reviewed at
each reporting date and adjusted to reflect the current best estimate.

Where it is not probable that an outflow of economic benefits will be
required, or the amount cannot be estimated reliably, the obligation is
disclosed as a contingent liability, unless the probability of outflow of
economic benefits is remote. Possible obligations, whose existence will only
be confirmed by the occurrence or non-occurrence of one or more future
uncertain events not wholly within the control of the company, are also
disclosed as contingent liabilities unless the probability of outflow of
economic benefits is remote. Contingent Assets are not recognised in the
financial statements. However, when the realisation of income is virtually
certain, then the related asset is not a contingent asset and its recognition is
appropriate. Where an inflow of economic benefits is probable, an entity shall
disclose a brief description of the nature of the contingent assets at the end of
the reporting period, and, where practicable, an estimate of their financial
effect.

n. Employee benefits expenses

Employee benefits include salaries, wages, contribution to provident fund,
gratuity, leave encashment towards un-availed leave, compensated absences,
post-retirement medical benefits and other terminal benefits.

The company operates a defined benefit gratuity plan in India, which requires
contributions to be made to a separately administered fund. The cost of
providing benefits under the defined benefit plan is determined using the
projected unit credit method. Re-measurement of defined benefit plans in
respect of post-employment are charged to the Other Comprehensive Income.
Past Service cost is recognized in the statement of profit & loss in the period
of plan amendment.

Defined contribution plan:

Company’s contributions paid/payable during the year to Provident Fund,
Superannuation Fund and Employee state insurance are recognised in
statement of profit and loss.

Compensated absence:

Liability for compensated absence is provided based on accumulated leave
credit outstanding to employees as on the date of balance sheet.

Liabilities for short term employee benefits are measured at undiscounted
amount of the benefits expected to be paid and charged to Statement of Profit
& Loss in the year in which the related service is rendered.

Whereas Company is maintaining the Gratuity funds with LIC and making
the premium payment over the period for its maintenance. The post¬
employment benefits like pension and gratuity are taken under Other Current
Assets.

o. Financial instruments
A. Financial assets:-

(i) Initial recognition and measurement

All financial assets are recognised initially at fair value plus or minus, in the
case of financial assets not recorded at fair value through profit or loss,
transaction costs that are attributable to the acquisition of the financial
asset. Purchases or sales of financial assets that require delivery of assets
within a time frame established by regulation or convention in the market
place (regular way trades) are recognised on the trade date, i.e., the date that
the Company commits to purchase or sell the asset.

(ii) Subsequent measurement

On subsequent recognition, a financial asset is classified as measured at:

• Amortised cost — Debt instruments

• Fair value through other comprehensive income (FVTOCI) - Debt
Investment

• Fair value through other comprehensive income (FVTOCI) — Equity
investment

• Fair value through profit or loss (FVTPL) — Derivatives, preference shares
and debt instruments.

(iii) Amortised cost

A ‘Financial asset' is measured at the amortised cost if both the following
conditions are met and is not designated as at FVTPL:

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

- Contractual terms of the asset give rise on specified dates to cash flows that
are solely payments of principal and interest (SPPI) on the principal amount
outstanding.

(iv) Equity Investment

On initial recognition of an equity investment that is not held for trading,
the company may irrevocably elect to present subsequent changes in the
fair value of investment in OCI (designated as FVTOCI — equity
investment). This election is made on an investment by investment basis.

When the Company has transferred its rights to receive cash flows from an
asset or has entered into a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of ownership. When it has

neither transferred nor retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the Company continues to
recognise the transferred asset to the extent of the Company's continuing
involvement. In that case, the Company also recognises an associated
liability. The transferred asset and the associated liability are measured on a
basis that reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the
transferred asset is measured at the lower of the original carrying amount of
the asset and the maximum amount of consideration that the Company
could be required to repay.

(v) Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss
(ECL) model for measurement and recognition of impairment loss on the
following financial assets and credit risk exposure:

Financial assets that are debt instruments, and are measured at amortised
cost e.g., loans, debt securities, deposits, trade receivables and bank
balance. Financial assets that are debt instruments and are measured as at
FVTOCI. Trade receivables or any contractual right to receive cash or
another financial asset that result from transactions that are within the scope
of Ind AS 11 and Ind AS 18. Financial guarantee contracts which are not
measured as at FVTPL.

The Company follows ‘simplified approach’ for recognition of impairment
loss allowance on:

Trade receivables or contract revenue receivables; and The application of
simplified approach does not require the Company to track changes in
credit risk. Rather, it recognises impairment loss allowance based on
lifetime ECLs at each reporting date, right from its initial recognition. For
recognition of impairment loss on other financial assets and risk exposure,
the Company determines that whether there has been a significant increase
in the credit risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment loss.
However, if credit risk has increased significantly, lifetime ECL is used. If,
in a subsequent period, credit quality of the instrument improves such that
there is no longer a significant increase in credit risk since initial
recognition, then the entity reverts to recognising impairment loss
allowance based on 12-month ECL.

ECL is the difference between all the contractual cash flows that are due to
the group in accordance with the contract and all the cash flows that the
entity expects to receive (i.e., all cash shortfalls), discounted at the original
EIR. When estimating the cash flows, an entity is required to consider:

All the contractual terms of the financial instrument (including prepayment,
extension, call and similar options) over the expected life of the financial
instrument. However, in rare cases when the expected life of the financial
instrument cannot be estimated reliably, then the entity is required to use
the remaining contractual cash terms of the financial instruments.

Cash flows from the sale of collateral held or other credit enhancements
that are integral to the contractual terms.

(vi) Financial Liabilities

A financial liability is any liability that is:

a) a contractual obligation :

i) to deliver cash or another financial asset to another entity; or

ii) to exchange financial assets or financial liabilities with another

iii) entity under conditions that are potentiallyunfavourable to
the entity; or

b) a contract that will or may be settled in the entity’s own equity instruments
and is:

i) a non-derivative for which the entity is or may be obliged to deliver a
variable number of the entity’s own equity instruments; or

ii) a derivative that will or may be settled other than by the exchange of a fixed
amount of cash or another financial asset for a fixed number of the entity’s
own equity instruments. For this purpose, rights, options or warrants to
acquire a fixed number of the entity’s own equity instruments for a fixed
amount of any currency are equity instruments if the entity offers the rights,
options or warrants pro rata to all of its existing owners of the same class of its
own non- derivative equity instruments. Apart from the aforesaid, the equity
conversion option embedded in a convertible bond denominated in foreign
currency to acquire a fixed number of the entity’s own equity instruments is
an equity instrument if the exercise price is fixed in any currency.

Also, for these purposes the entity's own equity instruments do not include
puttable financial instruments that are classified as equity instruments in
accordance with paragraphs 16A and 16B, instruments that impose on the
entity an obligation to deliver to another party a pro rata share of the net assets
of the entity only on liquidation and are classified as equity instruments in
accordance with instruments that are contracts for the future receipt or delivery
of the entity’s own equity instruments. As an exception, an instrument that
meets the definition of a financial liability is classified as an equity instrument
if it has all the features and meets the conditions in paragraphs 16A and 16B or
paragraphs 16C and 16D.

Initial Recognition and measurement

All financial liabilities are recognised initially at fair value plus or minus, in
the case of financial assets not recorded at fair value through profit or loss,
transaction costs that are attributable to the acquisition of the financial
asset.

(vii) Derecognition

A financial liability is derecognised when the obligation under the liability is
discharged or cancelled or expires. When an existing financial liability is replaced by
another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is
treated as the derecognition of the original liability and the recognition of a new
liability. The difference between the carrying amount of a financial liability (or part
of a financial Liability) extinguished or transferred to another party and the
consideration paid, including any non- cash assets transferred or liabilities assumed,
shall be recognised in profit or loss.

(viii) Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial
recognition. After initial recognition, no reclassification is made for financial assets
which are equity instruments and financial liabilities. For financial assets which are
debt instruments, a reclassification is made only if there is a change in the business
model for managing those assets. Changes to the business model are expected to be
infrequent. The Company's senior management determines change in the business
model as a result of external or internal changes which are significant to the
Company's operations. Such changes are evident to external parties. A change in the
business model occurs when the Company either begins or ceases to perform an
activity that is significant to its operations. If the Company reclassifies financial
assets, it applies the reclassification prospectively from the reclassification date
which is the first day of the immediately next reporting period following the change
in business model.

p. Cash and Cash equivalents

Cash and Cash equivalents in the balance sheet comprises cash on hand, at bank and
short-term deposits with banks. The Company considers all highly liquid financial
instruments, which are readily convertible into cash and have original maturities of
three months or less from the date of purchase, to be cash equivalents. Such cash
equivalents are subject to insignificant risk of changes in value.

In Cash Flow statement prepared by the company, Cash flows are reported using
indirect method, whereby profit / (loss) before extraordinary items and tax is
adjusted for the effects of transaction of non- cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based on the
available information.

q. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax
(including the post-tax effect of extraordinary items, if any) by the weighted average
number of equity shares outstanding during the year. Diluted earnings per share is
computed by dividing the profit / (loss) after tax (including the post-tax effect of any
extra ordinary items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving basic earnings per share
and also the weighted average number of equity shares which could have been
issued on the conversion of all dilutive potential equity shares. Dilutive potential
equity shares are deemed converted as at the beginning of the period, unless they
have been issued at a later date. The dilutive potential equity shares are adjusted for
the proceeds receivable had the shares been actually issued at fair value (i.e. average
market value of the outstanding shares). Dilutive potential equity shares are
determined independently for each period presented.

r. Trade receivables

Trade receivables represents amount billed to customers as credit sales and are net
off;

a) Any amount billed but for which revenues are reversed under the different
accounting standard and

b) Impairment for trade receivables, which is estimated for amounts not expected to
be collected in full.

s. Loans and Advances

Loans and advances are non-derivative financial assets with fixed and determinable
payments. This category includes the loans, cash and bank balances, other financial assets
and other current assets.

Subsequent to initial measurement, loans and receivables are carried at amortized cost
based on effective interest rate method less appropriate allowance for doubtful receivables.
Loans and advances are further classified as current and non-current depending on whether
they will be realized within 12 months after the balance sheet date or beyond.

t. Investment:-

There is no investment made by the company in securities or shares during the year.

25.6 Employee Benefits: As per IND AS -19 on "Employee Benefits" as notified by The
Companies (Indian Accounting Standards) Rules 2015, the disclosures of employee
benefits are given below:

a) Company’s Contribution to Provident Fund & Employee State Insurance
Scheme is Rs. 1,94,39,828/- (Previous Year Rs. 1,32,85,062/-).

25.7 In the opinion of Board of Directors and to the best of their knowledge, value on
realization of Assets other than fixed assets in the ordinary course of business,
would not be less than the amount at which they are stated in the Balance Sheet.

25.8 All the figures in financial statement have been rounded off to rupees in lakhs.

25.9 Export Development Expenses

During the year, Company has written off the expenses incurred on Export
Development which is being written off in 5 years started from the FY 2021-22.

25.10 Trade Payables-Micro and Small Enterprises

Based upon the data received from vendors, Company has classified vendors into
Micro/ Small enterprises. No separate verification done.

25.11 Sundry Debtors, Sundry Creditors and Other Advances:-

The balances of sundry debtors, Sundry creditors and other advances are subject to
confirmation. The balances adopted are as appearing in the books of accounts of the
company.

25.12 Previous year figures have been regrouped, reclassified and rearranged, wherever
necessary to confirm to this year’s classification.

25.13 Financial Instruments

The carrying value is considered as measured at fair value of financial instruments
of March 31, 2025 were as follows:

NOTE NO: 27 Additional Regulatory Information

26.1 There is no Immovable Properties held by the company title deeds of which are not
in name of the Company;

26.2 There is no investment property held by the company during the year, hence
valuation by a registered valuer for the fair value of investment property does not
require;

26.3 The Company has not revalued its Property, Plant and Equipment (including Right-
of-Use Assets) during the year hence valuation by a registered valuer does not
require;

26.4 There is no Loans or Advances in the nature of loans which are granted to
promoters, directors, KMPs and the related parties (as defined under Companies
Act, 2013), either severally or jointly with any other person;

26.5 There is no Capital-Work-in-progress (CWIP) during the year;

26.6 There is no Intangible assets under development during the year;

26.7 Company does not hold any benami property during the year;

26.8 Company is availing working capital limit from HDFC Bank on the basis of security
of Inventory and debtors in respect of which a monthly statements of book debt,
stock and creditors is being filed by the company with the bank and they are broadly
in agreement with the books of account of the Company;

26.9 Company has not been declared a wilful defaulter by any bank or financial
Institution or other lender during the year;

26.10 Company is not having any kind of relationship with the Struck off Companies
under section 248 of the Companies Act, 2013 or section 560 of Companies Act,
1956;

26.11 There is no charges or satisfaction which are yet to be registered with Registrar of
Companies (ROC) beyond the statutory period;

26.12 Compliance with number of layers of companies prescribed under clause (87) of
section 2 of the Act read with the Companies (Restriction on number of Layers)
Rules, 2017 does not applicable on the company;

26.13 There is no Scheme of Arrangements which has been approved by the Competent
Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the
year;

26.14 Ratios to the extent applicable on company are attached as per Annexure-I;

26.15 Utilisation of Borrowed funds and share premium:-

(a) No funds have been advanced or loaned or invested (either from borrowed funds
or share premium or any other sources or kind of funds) by the company to or in
any other person(s) or entity(ies), including foreign entities (“Intermediaries”),
with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall, whether, 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 provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;

(b) No funds have been received by the company from any person(s) or entity(ies),
including foreign entities (“Funding Parties”), with the understanding, whether
recorded in writing or otherwise, that the company shall, whether, 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
provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;

26.16 During the year, there is no 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);

26.17 Company has not traded or invested in Crypto currency or Virtual Currency during
the financial year;

26.18 Note 1 to 27 forms an integral part of the Balance Sheet and have been
authenticated.

As per our Audit Report of even date attached.

For Tanuj Garg & Associates For & on behalf of

Chartered Accountants Wonder Electricals Limited

(Registration No. 013843C)

Sd/- Sd/- Sd/-

CA Shailendra Singh Bhadauria Harsh Kumar Anand Yogesh Anand

Partner (Chairman) (Chief FinancialOfficer)

(Membership No. 097767) DIN: 00312438 PAN: AAEPA6561

Place:-New Delhi Sd/- Sd/-

Date: - 24.05.2025 Yogesh Sahni Dhruv Kumar Jha

(Managing Director) (Company Secretary)

DIN: 00811667 PAN: BLJPJ3631F