(b) Terms/ rights attached to equity shares

i. The Company has only one class of equity shares having a par value of Rs. 5/- per share. Each holder of equity share is entitled to one vote per share.

ii. No dividend was proposed for the current or the previous financial year

iii. In event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts.

The distribution will be in proportion to the number of equity shares held by the shareholders.

iv. Of the above, 3,04,32,390 equity shares of Rs.5/- each fully paid up has been allotted to non-residents on non-repatriation basis.

v. There have been no shares allotted as fully paid up by way of bonus shares or shares allotted as fully paid up pursuant to contract without payment being received in cash during five years immediately preceding March 31, 2025

vi. There are no shares bought back during 5 years immediately preceding March 31,2025

*Note: The Company had received an interest-free loan (ECB) of USD 13.85 million in various tranches starting from FY 2002-03 from a shareholder holding a 29% stake in the company. Partial repayments of USD 0.50 million and USD 1.23 million were made in 2009 and 2016, respectively. The repayment terms were extended multiple times, each without any interest or enforcement by the shareholder.

During the year, the Company has negotiated and entered into an MOU with the lender for currency swap from USD to INR of the outstanding amount. These matters are also subject to approval of the statutory and regulatory authorities. Additionally, the lenders have agreed for a moratorium period and have extended the repayment schedule starting from April 2030. These loans do not carry any interest.

In view of the long-standing non-recourse nature of the arrangement and absence of any repayment demand from the lender, and the fact that the amount is now settled or otherwise dealt with solely at the discretion of the Company, the loan has been reclassified as Other Equity as at March 31, 2025

i) Contingent Liability & Commitments not provided for:

The Company is a defendant in certain pending court cases filed by suppliers and employees. These cases, initiated suppliers and former employees, relate to disputed payments for goods supplied and services provided. The company has contested these claims and, based on legal advice, believes it has strong grounds for a favorable outcome. The estimated aggregate amount of these claims is Rs 32 lakhs. As the outflow of resources to settle these disputes is considered not probable, no provision has been recognized in the financial statements as of the reporting date. The final outcome of these legal proceedings may differ from this assessment, and the company will continue to monitor the developments closely.

ii) There are no contracts that are yet to be executed that would have a significant impact on the financial position of the company

iii) No dividend was proposed for the current or the previous financial year

iv) There is no amount due and outstanding to be credited to Investor Education and Protection Fund.

v) The Company has not entered into any forward contracts

The Company has a net Deferred Tax Asset (DTA) of Rs. 2844.98 Lacs (Previous Year: Rs. 2049.67 Lacs) arising from temporary differences related to depreciation and other components. In accordance with Ind AS 12: Income Taxes, the DTA has not been recognized in the financial statements. This is based on a detailed assessment of the Company’s business plan and financial projections, which indicate that it is not probable that sufficient future taxable profits will be available against which the deferred tax asset can be utilized

vii) The Company has stopped operations in all the segments including the windmill. Hence segment results are not applicable for the company.

xi) Confirmation from certain parties for amounts due to them/amount due from them as per accounts of the Company has not been received. Necessary adjustment, if any will be made when the accounts are reconciled/settled.

x) The company has filed Income Tax Returns upto the Assessment Year 2024-25. There are no demands outstanding. In view of loss for assessment year 2024-25, the company has been advised that there is no liability to income tax and accordingly no provision has been made.

Note No. 26

xiv Financial instrument - Accounting, Classification and Fair Values

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments. The details of significant accounting policies, including the criteria for recognition, basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in notes forming the part of the financial statements.

xiv Financial instrument - Accounting, Classification and Fair Values (Cont'd)

(b) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company does not have any financial instrument which have been measured using the valuation techniques as per level 1.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using 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). The Company does not have any financial instrument which have been measured using the valuation techniques as per level 2.

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair value is determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. The Company does not have any financial instrument which have been measured using the valuation techniques as per level 3.

(i) Other financial assets, cash and cash equivalents, trade receivables, trade payables and other financial liabilities are stated at carrying value which is approximates their fair value.

(ii) All borrowings except one have variable interest rate which gets adjusted yearly based on the change in interest rate. The borrowing which is at fixed rate approximates the market interest rate. Hence the carrying value approximates the fair value.

(iv) Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.

(v) There have been no transfers between Level 1 and Level 2 during the reporting year. xv Capital management

The capital structure of the Company consists of share capital comprising of equity share capital, debt, cash and cash equivalents accumulated reserves like general reserve, retained earnings, capital reserve and securities premium, other comprehensive income as disclosed in the statement of changes in equity.

The Company’s capital management objective is to achieve an optimal weighted average cost of capital while continuing to safeguard the Company’s ability to meet its liquidity requirements and repay loans as they fall due.

xvi Financial risk management objectives and policies

The Company’s principal financial liabilities comprises of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade and other receivables, and cash that derive directly from its operations.

The Company is exposed to the following risks from its use of financial instruments:

(a) Credit risk

(b) Liquidity risk

(c) Market risk

The Company’s Board of Directors has the overall responsibility for the establishment and oversight of the Company's risk management framework. This note presents information about the risks associated with its financial instruments, the Company’s objectives, policies and processes for measuring and managing risk.

(a) Credit risk

The Company is exposed to credit risk as a result of the risk of counterparties defaulting on their obligations. The Company’s exposure to credit risk primarily relates to trade receivables. The Company monitors and limits its exposure to credit risk on a continuous basis. The Company’s credit risk associated with trade receivable is primarily related to customers not able to settle their obligation as agreed upon. To manage this, the Company yearly reviews the financial reliability of its customers, taking into account their financial condition, current economic trends and analysis of historical bad debts and ageing of trade receivables.

Financial instruments that are subject to such risk, principally consist of investments, trade receivables, loans, other financial assets and cash. None of the financial instruments of the Company results in material concentration of credit risks Maximum exposure to credit risk of the Company has been listed below:

The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109, Financial Instruments which permits the use of the lifetime expected loss provision for all trade receivables. The Company has computed expected credit losses based on a provision matrix which uses historical credit loss experience of the Company. Forward-looking information (including macroeconomic information) has been incorporated into the determination of expected credit losses.

(b) Liquidity risk

The Company is exposed to liquidity risk related to its ability to fund its obligations as and when they become due. The Company monitors and manages its liquidity risk to ensure access to sufficient funds to meet operational and financial requirements. The Company has access to credit facilities and monitors cash and bank balances on a regular basis. In relation to the Company’s liquidity risk, the Company’s policy is to ensure that it will have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions without incurring unacceptable losses.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(c) Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

xvii Additional Notes

a) The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment.

b) The Company was not holding any benami property and no proceedings were initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

c) The Company had not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

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

e) The Company has not traded or invested in Crypto currency or Virtual Currency during year ended 31 March, 2025.

f) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) any funds to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other 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.

g) The Company has not received any funds from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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.

h) The Company did not have any transaction which had not been recorded in the books of account that had 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).

i) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period read with Point xi

xviii Subsequent events

No material events have occurred between the balance sheet date to the date of issue of these financial statements that could affect the values stated in the financial statements as at 31 March 2025.

xix Prior year comparatives

Prior year amounts have been regrouped/reclassified wherever necessary, to conform to the current years’ presentation. The impact of such reclassification/regrouping is not material to the financial statements.