3.19 Accounting of provisions, contingent liabilities and
contingentassets

Provisions are recognized, when there is a present legal or
constructive obligation as a result of past events, where it
is probable that there will be outflow of resources to
settle the obligation and when a reliable estimate of the
amount of the obligation can be made. Where a provision
is measured using the cash flows estimated to settle the

present obligation, its carrying amount is the present
value of those cash flows. Where the effect is material,
the provision is discounted to net present value using an
appropriate current market-based pre-tax discount rate
and the unwinding of the discount is included in finance
costs.

Contingent liabilities are recognised only when there is a
possible obligation arising from past events, due to
occurrence or non-occurrence of one or more uncertain
future events, not wholly within the control of the
Company, or where any present obligation cannot be
measured in terms of future outflow of resources, or
where a reliable estimate of the obligation cannot be
made. Obligations are assessed on an ongoing basis and
only those having a largely probable outflow of resources
are provided for. Contingent assets are not disclosed in
the financial statements unless an inflow of economic
benefits is probable.

3.20 Dividend to equity shareholders

Dividend to equity shareholders is recognised as a liability
and deducted from shareholders' equity, in the period in
which the dividends are approved by the equity
shareholders in the general meeting.

3.21 Earnings per share(EPS)

Basic EPS is computed by dividing the profit or loss
attributable to the equity shareholders of the Company
by the weighted average number of Ordinary shares
outstanding during the year. Diluted EPS is computed by
adjusting the profit or loss attributable to the ordinary
equity shareholders and the weighted average number of
ordinary equity shares, for the effects of all dilutive
potential Ordinary shares.

3.22 Roundingofamounts

All amounts disclosed in the financial statements and
notes have been rounded off to the nearest lacs with two
decimals as per the requirement of Schedule III, unless
otherwise stated.

3.23 Critical accounting judgements and key sources of
estimation uncertainty

The preparation of thefinancial statements in conformity
with the Ind AS requires management to make
judgements, estimates and assumptions that affect the
application of accounting policies and the reported
amounts of assets, liabilities and disclosures as at date of
the financial statements and the reported amounts of the

revenues and expenses for the years presented. The
estimates and associated assumptions are based on
historical experience and other factors that are
considered to be relevant. Actual results may differ from
these estimates under different assumptions and
conditions.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is
revised if the revision affects only that period, or in the
period of the revision and future periods if the revision
affects both current and future periods.

Critical Judgements

In the process of applying the Company's accounting
policies, management has made the following
judgements, which have the most significant effect on the
amounts recognized in thefinancial statements:

Discount rate used to determine the carrying amount of
the Company's defined benefit obligation

In determining the appropriate discount rate for plans
assets, the management considers the interest rates of
government bonds as provided by LIC, in currencies
consistent with the currencies of the post-employment
benefitobligation.

Contingencies and commitments

In the normal course of business, contingent liabilities
may arise from litigations and other claims against the
Company.

Where the potential liabilities have a low probability of
crystallizing or are very difficult to quantify reliably, we
treat them as contingent liabilities. Such liabilities are
disclosed in the notes but are not provided for in the
financial statements. Although there can be no assurance
regarding the final outcome of the legal proceedings, we
do not expect them to have a materially adverse impact
on ourfinancial position or profitability.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other
key sources of estimation uncertainty at the end of the
reporting period, that have a significant risk of causing a
material adjustment to the carrying amounts of assets
and liabilities within the next financial year are discussed
below:

Useful livesof property, plant and equipment

As described above, the Company reviews the estimated
useful lives and residual values of property, plant and
equipment at the end of each reporting period. During
the current financial year, the management determined
that there were no changes to the useful lives and
residual values ofthe property, plant and equipment.

Allowances for doubtful debts

The Company makes allowances for doubtful debts based
on an assessment of the recoverability of trade and other
receivables. The identification of doubtful debts requires
use of judgement and estimates. Where the expectation
is different from the original estimate, such differencewill
impact the carrying value of the trade and other
receivables and doubtful debts expenses in the period in
which such estimate has been changed.

Allowances for inventories

Management reviews the inventory age listing on a
periodic basis. This review involves comparison of the
carrying value of the aged inventory items with the
respective net realizable value. The purpose is to
ascertain whether an allowance is required to be made in
the financial statements for any obsolete and slow-
moving items. Management is satisfied that adequate
allowance for obsolete and slow-moving inventories has
been made in thefinancial statements.

Liability forsales return

In making judgment for liability for sales return, the
management considered the detailed criteria for the
recognition of revenue from the sale of goods set out in
Ind AS 115 and in particular, whether the Company had
transferred to the buyer the significant risk and rewards
of ownership of the goods. Following the detailed
quantification of the Company's liability towards sales
return, the management is satisfied that significant risk
and rewards have been transferred and that recognition
of the revenue in the current year is appropriate, in
conjunction with the recognition of an appropriate
liability forsales return.

Accruals for estimated product returns, which are based
on historical experience of actual sales returns and
adjustment on account of current market scenario is
considered by Company to be reliable estimate of future
sales returns.

Notes:

1. The normal creditperiod ranges from30days to 180 days.

2. Movementinthe expected credit loss allowance: Not Applicable

3. There is no amount due by directors or officers of the Company or any of them, severally or jointly with any
other persons or amount due by firms or private companies respectively in which such director is a partner or a
memberatanytimeduringthe reportingperiod.

4. There is no amount due byany of related party except as disclosed in note 29.

5. ForTrade receivables ageing schedule and other details, please refer note 32.

14.2 Bonussharesissuedduringthecurrentfinancialyear

On 13 October 2025, the Company has allotted 38,14,030 fully paid-up Bonus Equity Shares of the face value of
' 10/- each in the ratio of one new fully paid-up bonus equity share for every two existing Equity Shares, held by the
shareholders of the Company on record date of 10 October 2025.

In accordance with approval received from the Members at their last annual general meeting held on 30 September
2025, the said bonus equity shares rank pari passu in all respects with the existing equity shares of the Company. As a
result of the bonus issue, the paid-up capital of the Company increased to ' 1,144 lacs from ' 763 lacs. The paid-up
capital on account of bonus issue of' 381 lacs has been appropriated from the securities premium and capital
redemption reserve.

14.3 Issuanceof convertible warrants during thecurrent financial year

The Board of Directors of the Company, in their meeting held on 27 November 2025 have allotted 6,00,000
warrants, each are convertible into fully paid-up Equity Shares of the Company, on preferential basis to the 'Non¬
Promoter' category, up to an amount of' 4,608 Lacs, at an issuance price of' 768/- per warrants (derived pursuant
to SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018). Equity shares issued upon exercise of
warrants, shall rank pari passu to existing equity shares of the Company. The shareholders of the Company, byway
of postal ballot, approved the issuance of warrants on preferential basis. During the financial year under reporting,
the Company has received an aggregate consideration of ' 1,152 Lacs towards minimum 25% of the total
consideration ofthe warrants.

14.4 During the erstwhile financial year 2023-2024, the Company had made a preferential allotment of 4,04,600 (Four
Lakh FourThousand and Six Hundred only) equity shares of face value of' 10/- (Rupees Ten only) each fully paid up
for cash, at an issue price of' 319 /- (RupeesThree Hundred and Nineteen only) per equity share (which included a
premium of' 309/- per equity share), in accordance with the provisions of Sections 23(1)(b), 42, 62 and all other
applicable provisions ofthe Companies Act, 2013 read with the Chapter V of Securities and Exchange Board of India
(Issueof Capital and Disclosure Requirements) Regulations, 2018("SEBI ICDR Regulations").

14.5 The Company has issued only one class of shares/ securities i.e. fully paid-up equity shares. Each equity shareholder
is entitled to vote one vote per share. The dividend proposed by Board of Directors, if any, is subject to the approval
of equity shareholders in their ensuing annual general meeting, exceptin case of interim dividend.

In the event of liquidation of Company, the equity shareholders shall be entitled for remaining assets of the
Company, after distribution of all preferential amount. The distribution shall be in proportion to the number of
sharesheld by equity shareholders.

Note:

The Company has allotted 38,14,030 fully paid-up Bonus Equity Shares of the face value of' 10/- each in the ratio of
one new fully paid-up bonus equity share for every two existing Equity Shares, held by the shareholders of the
Company on record date of 10 October 2025.

Thishas been considered for calculating weightedaveragenumber of equity shares for comparative previousyear as
perInd AS 33. Inline with the above, EPS (basicand diluted) have been adjusted for all the periods presented.

24. Contingent liabilities and commitments24.1 Contingent liabilities (not provided for)

There is no contingent liabilityliable to be reported.

24.2 Commitments

There isnocommitmentliableto be reported for the year under reporting.

Whereas, in the previous year, the estimated amount of contracts remained to be executed on capital account of
property, plant and equipmentwas ' 39 lacs against which advances paid aggregate ' 11 lacs.

25. Codeon Social Security

The Ministry of Labour & Employment has notified the Code on Wages, 2019, the Industrial Relations Code, 2020, the
Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively
referred toas"the LabourCodes") on 21 November 2025.

The existing emolument structure of the Company is broadly in the compliance with the LabourCodes. Therefore, the
Board doesnot foresee anysignificant impactof the execution ofthe LabourCodes.

26. Gratuity

The Company has a defined benefit gratuity plan with Life Insurance Corporation of India (LIC) in the form of a
qualifying insurance policy. Eligible employees are entitled for gratuity in accordance with the statuary provisions,
including anystatutory modificationsorre-enactmentthereof. Thefund has formed a trust and itis governed by the
Board ofTrustees.

The sensitivity analysis presented above may not be a representative of the actual change in the defined benefit
obligation as, in practice, it is unlikely that the change in assumptions would occur in isolation of one another as
some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has
been calculated using "Projected Unit Credit" method at the end of the reporting period which is the same as that
applied in calculatingthe defined benefit obligation liability recognised in Balance Sheet.

There were no change in the methods and assumptions used in preparing the sensitivity analysis from prioryears.
Following are the expected cash flows to the defined benefit plan in future years:

27. FinancialinstrumentsCapital management

The Company's objective for capital management is to maximize shareholder wealth, safeguard business continuity
and support the growth of the Company. The Company determines the capital management requirement based on
annual operating plans and long term and other strategic investment plans. The funding requirements are met
through equity, borrowingsand operating cash flows.

Fair value hierarchy

There are no reported financial assets and financial liabilities that are measured at fair value or where fair value
disclosure is required as at 31 March 2026 and 31 March 2025.

28. Financial risk management

Risk is inherent in the Company's activities but it is managed through a process of ongoing identification, measurement
and monitoring, subjectto risklimitsand other controls.

The financial liabilities of the Company comprise borrowings, trade and other payables to finance the operations of the
Company. The financial assets of the Company include loans, trade and other receivables, cash and cash equivalents
that directlyderivefrom the operations. The Company has not entered into anyderivative transactions.

The Company's Board of Directors is ultimately responsible for the overall risk management approach and for
providingtheriskstrategiesand principles.

Market risk

TheCompany's activities exposeit primarily to the financial riskof changes inforeigncurrencyexchange rates.

Though the Company has not entered in any forward foreign exchange contract; however, the market risk is managed
on the basis of continuous appraisal of market conditions and management's estimate of long and short-term and
changesinfairvalue.

Foreign currency risk management

The Company is mainly exposed to the currencies: USD, CAD, JPY andEuro currency.

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate
fluctuations arise. Exchange rate exposures are managed in accordance with the market conditions and management's
estimates.

The carrying amounts of the Company's foreign currency dominated unhedged monetary assets and monetary
liabilities atthe end of the reporting period are as follows:

Foreign currency sensitivity analysis

The following table details the Company's sensitivity to a 5% increase and decrease in the ' against the relevant
foreign currency. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management
personnel and represents management's assessment of the reasonably possible change in foreign exchange rates.
This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the
reporting period.

Favourable impact shown as positive and adverse impactas negative.

The Company has not entered inany forward foreign exchange derivative contracts during the reporting periods.
Equity risk

There is no material equity risk relating to the Company's equity investments. The Company's equity investments
majorly comprises of strategic investments ratherthan trading purposes.

Interestrisk

There isno material interest risk relating to theCompany's financial liabilities.

Credit risk management

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to
the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers. The
Company's exposures are continuously monitored and the aggregate value of transactions concluded, are spread
amongst approved counter parties.

Liquidity risk management

The ultimate 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 by continuously monitoring forecast and actual cash flows, and by matching the
maturity profiles of financial assets and liabilities. All current financial liabilities are repayable within one year.

The Company manufactures "Communication Equipment" primarily for power utilities / other utilities and engaged
in its allied services, which is the only business segment of the Company. The Company is an Export Oriented Unit
with its sole manufacturing unit being located at New Delhi. The above segment revenue and results are being
identified on the basis of geographical markets. The fixed assets used in the Company's business cannot be
specifically identified with any geographical segment. The management believes that it is currently not practicable
to provide segment disclosures relating to total assets and liabilities since a segregation of capital employed on
segment basis, is not possible.

Note: The variations in turnover ratios are because of the efficiency recorded in the working capital management
specifically at an inventory level and debtors realization. There is an increase in working capital by 60% on year-on-
year basis, supported by increased profitability and resulting an increase in cash generated from the operating
activities. The Bank balance is also increased because of the convertible warrants issued during the year under
reporting.The purchases are stable and inventories have been reduced. Thedecrease in Debt-Equity ratiois because
of the increase in equity.

The increase in above reported margin and return ratios are primarily because of the reported increase in revenue
and other income. It has further positive impact on profitability and the thereby, the debt service and interest
coverage ratio. Whereas, the increase in net-worth isalso supported bythe afresh warrants issued.

b) CorporateSocialResponsibility(CSR)

The gross amount required to be spent by the Company during the year towards Corporate Social Responsibility
(CSR) as per the provision of Section 135 of the Companies Act, 2013 alongwith the amount spent during the year
areasunder:

c) Other Disclosures

i. Relationship with Struck off Companies - The Company does not have any transactions or relationships with any
companies struckoff under Section 248 of the CompaniesAct, 2013 orSection 560of the CompaniesAct, 1956.

ii. There are no transactions that have been surrendered or disclosed as income during the year in the tax
assessments underthe IncomeTaxAct, 1961 which have not been recorded in the booksof account.

iii. There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the
statutory period.

36. Subsequent event(s)

i. The Board of Directors at its meeting held on 30 May 2026 has recommended a dividend of' 1.50 (15%) per
equity share on the face value of' 10/- each [previous year:' 1.50 (15%)], subject to shareholders approval at
the annual general meeting.

ii. The Preferential Issue Committee of the Board of Directors of the Company at their meeting held on 07 May
2026, allotted 2,50,000 equity shares of face value of' 10/- each, pursuant to the conversion of 2,50,000 fully
convertible warrants into equityshares,asreferred in note 14.3

37. The comparative figures for the previous year have been rearranged wherever required to conform to the revised
presentationof accounts.

38. Notes to financialstatements form an integral partof financial statements.