Provisions And Contingent Liabilities

A provision is recognized when an enterprise has a present obligation (legal or constructive) as result
of past event and it is probable that an outflow embodying economic benefits of resources will be
required to settle a reliably assessable obligation. Provisions are determined based on best estimate
required to settle each obligation at each balance sheet date. 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 discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Provisions for onerous contracts, i.e. contracts where the expected unavoidable costs of meeting
obligations under a contract exceed the economic benefits expected to be received, are recognized
when it is probable that an outflow of resources embodying economic benefits will be required to
settle a present obligation as a result of an obligating event, based on a reliable estimate of such
obligation.

A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized because it is not probable that
an outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably. The Company does not recognize a contingent liability but discloses its existence
in the standalone financial statements.

Earnings Per Share

The basic earnings per share is computed by dividing the net profit attributable to equity
shareholders for the period by the weighted average number of equity shares outstanding during the
period. The number of shares used in computing diluted earnings per share comprises the weighted
average shares considered for deriving basic earnings per share, and also the weighted average
number of equity shares which could be issued on the conversion of all dilutive potential equity
shares. Dilutive potential equity shares are deemed converted as of the beginning of the period,
unless they have been issued at a later date. The diluted potential equity shares have been arrived at,
assuming that the proceeds receivable were based on shares having been issued at the average market
value of the outstanding shares. In computing dilutive earnings per share, only potential equity
shares that are dilutive and that would, if issued, either reduce future earnings per share or increase

loss per share, are included.

Inventories

Inventory comprises of traded goods and is measured at lower of cost and net realisable value. Cost
includes cost of purchase and other costs incurred in bringing the inventories to their present location
and condition. Cost is determined on a weighted average basis. Net realisable value is the estimated
selling price in the ordinary course of business, less estimated cost necessary to make the sale.

Cash Dividend To Equity Holders Of The Company

The Company recognises a liability to make cash distributions to equity holders of the Company
when the distribution is authorised and the distribution is no longer at the discretion of the Company.
Final dividends on shares are recorded as a liability on the date of approval by the shareholders and
interim dividends are recorded as a liability on the date of declaration by the Company's Board of
Directors.

Government Grants

The Company recognizes government grants only when there is reasonable assurance that the
conditions attached to them shall be complied with, and the grants will be received. Government
grants related to assets are treated as deferred income and are recognized in net profit in the
statement of profit and loss on a systematic and rational basis over the useful life of the asset.
Government grants related to revenue are recognized on a systematic basis in net profit in the
statement of profit and loss over the periods necessary to match them with the related costs which
they are intended to compensate.

Current Vs Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current / non-current
classification.

An asset is treated as current when:

Ý It is expected to be realised or intended to be sold or consumed in normal operating cycle.

Ý It is held primarily for purpose of trading.

Ý It is expected to be realised within twelve months after the reporting period.

Ý Cash and cash equivalents unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period.

All other assets are classified as non-current. A liability is treated as current when:

Ý It is expected to settle in the normal operating cycle.

Ý It is due to be settled within twelve months after the reporting date.

Ý There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current.

Advance tax paid is classified as non-current assets.

Our Report Attached

For ANANT RAO & MALLIK For I Power Solutions India Limited

Chartered Accountants
FRN: 006266S

Sd/-

V. ANANT RAO

Partner
M.No.: 022644

Date: 09-05-2024

UDIN: 24022644BKANSF1436

SD/- SD/-

V Parandhaman Rajendra Naniwadekar

Director Managing Director

DIN: 00323551 DIN: 00032107