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Company Information

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BAJAJ ELECTRICALS LTD.

25 July 2025 | 12:00

Industry >> Domestic Appliances

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ISIN No INE193E01025 BSE Code / NSE Code 500031 / BAJAJELEC Book Value (Rs.) 126.82 Face Value 2.00
Bookclosure 18/07/2025 52Week High 1038 EPS 11.57 P/E 55.54
Market Cap. 7410.48 Cr. 52Week Low 490 P/BV / Div Yield (%) 5.07 / 0.47 Market Lot 1.00
Security Type Other

NOTES TO ACCOUNTS

You can view the entire text of Notes to accounts of the company for the latest year
Year End :2025-03 

17 Provisions, contingent liabilities and contingent
assets

A. Provisions

A provision is recognised if

• the Company has present legal or
constructive obligation as a result of an
event in the past;

• it is probable that an outflow of resources
will be required to settle the obligation; and

• the amount of the obligation has been
reliably estimated.

Provisions are measured at the management's
best estimate of the expenditure required to
settle the obligation at the end of the reporting
period. If the effect of the time value of money is
material, provisions are discounted to reflect its
present value using a current pre-tax discount
rate that reflects the current market assessments
of the time value of money and the risks specific
to the obligation. When discounting is used, the
increase in the provision due to the passage of
time is recognised as a finance cost.

The Company provides for general repairs of
defects that existed at the time of sale, as required
by the law. Provision for warranty related costs
are recognised when the product is sold to
the customer. Initial recognition is based on
historical experience. The estimate of warranty
related costs is revised annually.

If the Company has a contract that is onerous,
the present obligation under the contract is
recognised and measured as a provision. However,
before a separate provision for an onerous
contract is established, the Company recognises
any impairment loss that has occurred on assets
dedicated to that contract. An onerous contract is
a contract under which the unavoidable costs (i.e.,
the costs that the Company cannot avoid because
it has the contract) of meeting the obligations
under the contract exceed the economic benefits
expected to be received under it. The unavoidable
costs under a contract reflect the least net cost of
exiting from the contract, which is the lower of
the cost of fulfilling it and any compensation or
penalties arising from failure to fulfil it. The cost of
fulfilling a contract comprises the costs that relate
directly to the contract (i.e., both incremental
costs and an allocation of costs directly related to
contract activities).

B. 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.

A contingent liability recognised in a business
combination is initially measured at its fair value.
Subsequently, it is measured at the higher
of the amount that would be recognised in
accordance with the requirements for provisions
above or the amount initially recognised less,
when appropriate, cumulative amortisation
recognised in accordance with the requirements
for revenue recognition.

C. Contingent assets

A contingent asset is a possible asset that
arises from past events and whose existence
will be confirmed only by the occurrence or
non-occurrence of one or more uncertain
future events not wholly within the control of
the entity. A contingent asset is not recognised
but disclosed where an inflow of economic
benefit is probable.

18 Employee benefits

A. Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the
period in which the employees render the related
service are recognised in the same period in

which the employees renders the related service
and are measured at the amounts expected to be
paid when the liabilities are settled.

Retirement benefit in the form of provident fund
is a defined contribution plan. The Company
has no obligation, other than the contribution
payable to the provident fund. The Company
recognises contribution payable to the provident
fund scheme as an expense, when an employee
renders the related services. If the Contribution
payable to the scheme for service received before
the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme
is recognised as a liability after deducting the
contribution already paid. If the contribution
already paid exceeds the contribution due for
services received before the balance sheet
date, then excess is recognised as an asset to
the extent that the prepayment will lead to a
reduction in future payment or a cash refund.

B. Other long-term employee benefit obligations

The liabilities for earned leave and sick leave
are not expected to be settled wholly within
12 months after the end of the period in which
the employees render the related service. They
are therefore measured as the present value of
expected future payments to be made in respect
of services provided by employees up to the end
of the reporting period using the projected unit
credit method. The benefits are discounted using
the market yields at the end of the reporting
period that have terms approximating to the
terms of the related obligation. Remeasurements
as a result of experience adjustments and
changes in actuarial assumptions are recognised
in the statement of profit or loss.

The obligations are presented as current liabilities
in the balance sheet if the entity does not have
an unconditional right to defer settlement for
atleast twelve months after the reporting period,
regardless of when the actual settlement is
expected to occur.

C. Post-employment obligations

The Company operates the following post¬
employment schemes

(a) defined benefit plans - gratuity and obligation
towards shortfall of Provident Fund Trusts

(b) defined contribution plans - Provident fund
(RPFC Contributions), superannuation and
pension

Defined benefit plans :

The liability or asset recognised in the balance
sheet in respect of defined benefit plans is the
present value of the defined benefit obligation
at the end of the reporting period less the fair
value of plan assets excluding non-qualifying
asset (reimbursement right). The defined benefit
obligation is calculated annually by actuaries
using the projected unit credit method. The
present value of the defined benefit obligation is
determined by discounting the estimated future
cash outflows by reference to market yields at
the end of the reporting period on government
bonds that have terms approximating to the terms
of the related obligation. The net interest cost is
calculated by applying the discount rate to the
net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included
in employee benefit expense in the statement
of profit and loss. Remeasurement gains and
losses arising from experience adjustments and
changes in actuarial assumptions are recognised
in the period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the statement of changes in
equity and in the balance sheet.

Insurance policy held by the Company from
insurers who are related parties are not
qualifying insurance policies and hence the right
to reimbursement is recognised as a separate
assets under other non-current and/or current
assets as the case may be.

Changes in the present value of the defined
benefit obligation resulting from plan
amendments or curtailments are recognised
immediately in profit or loss as past service cost.

Defined contribution plans :

In respect of certain employees, the Company
pays provident fund contributions to publicly
administered provident funds as per local
regulations. The Company has no further
payment obligations once the contributions have
been paid. Such contributions are accounted for
as employee benefit expense when they are due.
Defined contribution to superannuation fund is
being made as per the scheme of the Company.
Defined contribution to Employees Pension
Scheme 1995 is made to Government Provident
Fund Authority whereas the contributions for
National Pension Scheme is made to Stock
Holding Corporation of India Limited.

D. Share based payment

The Company operates a number of equity
settled, employee share based compensation
plans, under which the Company receives
services from employees as consideration for
equity shares of the Company. Equity settled
share based payment to employees and other
providing similar services are measured at fair
value of the equity instrument at grant date.

The fair value of the employee services
received in exchange for the grant of the
options is determined by reference to the fair

value of the options as at the Grant Date and is
recognised as an 'employee benefits expense'
with a corresponding increase in equity. The
total expense is recognised over the vesting
period which is the period over which the
applicable vesting condition is to be satisfied.
The total amount to be expensed is determined
by reference to the fair value of the options
granted excluding the impact of any service
vesting conditions.

At the end of each year, the entity revises its
estimates of the number of options that are
expected to vest based on the service vesting
conditions. It recognises the impact of the
revision to original estimates, if any, in profit or
loss, with a corresponding adjustment to equity.

If at any point of time after the vesting of the
share options, the right to the same expires
(either by virtue of lapse of the exercise period
or the employee leaving the Company), the fair
value of the options accruing in favour of the said
employee are written back to the retained earning
in the reporting period in which the right expires.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share

Pursuant to the scheme of demerger, the
employees also have benefits available in
the other group entity. The Company records
as a cross charge for such employee share
based compensation.

19 Trade credits
Suppliers' credit

Supplier's credit also includes amounts payable
towards vendor financing entered into with the
suppliers. Under this arrangement, the supplier is
eligible to receive payment prior to the expiry of
extended credit period by assigning such invoices to
a third-party purchaser bank based on security in the
form of an undertaking issued by the Company to
the bank. Further, the supplier charges interest to the
Company for the extended credit period which has
been presented under Finance Cost.

These are normally settled up to four months. Where
these arrangements are for goods used in the normal
operations of the Company with a maturity of up to four
months, the economic substance of the transaction
is determined to be operating in nature and these
are recognised as operational suppliers' credit and
disclosed on the face of the balance sheet under trade
credits. Payments made to vendors are treated as cash
item and disclosed as cash flow from operating activity
depending on the nature of the underlying transaction.

Customers' credit

Customer credits include receivables which are subject
to factoring arrangements and channel financing
facilities. Under this arrangement the Company has
transferred the relevant receivables to the factor
in exchange for cash. The Company continues to
recognise the transferred assets in their entirety in its
balance sheet with the corresponding liability under
customer credits.

20 Segment reporting

An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses, whose operating
results are regularly reviewed by the entity's chief
operating decision maker to make decisions about
resources to be allocated to the segment and assess
its performance and for which discrete financial
information is available.

Operating segments often exhibit similar long-term
financial performance if they have similar economic
characteristics. Two or more operating segments are
aggregated by the Company into a single operating
segment if aggregation is consistent with the core
principle of Ind AS 108, the segments have similar
economic characteristics, and the segments are similar
in aspects as defined by Ind AS.

The Company reports separately, information about
an operating segment that meets any of quantitative
thresholds as defined by Ind AS. Operating segments
that do not meet any of the quantitative thresholds,
are considered reportable and separately disclosed,
only if management of the Company believes that
information about the segment would be useful to
users of the financial statements

Information about other business activities and
operating segments that are not reportable
separately are combined and disclosed in an 'all other
segments' category

21 Dividends

The Company recognises a liability to pay dividend
to equity holders when the distribution is authorised
and is no longer at the discretion of the Company.
As per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders. A
corresponding amount is recognised directly in equity.
Interim dividends are recorded as a liability on the date
of declaration by the Company's Board of Directors.

22 Assets held for sale and discontinued operations

The Company classifies non-current assets and
disposal Companys as held for sale if their carrying
amounts will be recovered principally through a sale
rather than through continuing use. Non-current assets
and disposal Companys classified as held for sale are
measured at the lower of their carrying amount and fair

value less costs to sell. Costs to sell are the incremental
costs directly attributable to the disposal of an asset
(disposal Company), excluding finance costs and
income tax expense.

The criteria for held for sale classification is regarded as
met only when the sale is highly probable, and the asset
or disposal Company is available for immediate sale
in its present condition. Actions required to complete
the sale/ distribution should indicate that it is unlikely
that significant changes to the sale will be made or that
the decision to sell will be withdrawn. Management
must be committed to the sale and the sale expected
within one year from the date of classification. For
these purposes, sale transactions include exchanges
of non-current assets for other non-current assets
when the exchange has commercial substance. The
criteria for held for sale classification is regarded met
only when the assets or disposal Company is available
for immediate sale in its present condition, subject
only to terms that are usual and customary for sales of
such assets (or disposal Companys), its sale is highly
probable; and it will genuinely be sold, not abandoned.

The Company treats sale of the asset or disposal
Company to be highly probable when:

• The appropriate level of management is
committed to a plan to sell the asset (or
disposal Company),

• An active programme to locate a buyer
and complete the plan has been initiated
(if applicable),

• The asset (or disposal Company) is being actively
marketed for sale at a price that is reasonable in
relation to its current fair value,

• The sale is expected to qualify for recognition as
a completed sale within one year from the date of
classification, and

• Actions required to complete the plan indicate
that it is unlikely that significant changes
to the plan will be made or that the plan
will be withdrawn.

Property, plant and equipment and intangible are not
depreciated, or amortised assets once classified as
held for sale. Assets and liabilities classified as held
for sale are presented separately from other items in
the balance sheet.

Discontinued operations are excluded from the results
of continuing operations and are presented as a single
amount as profit or loss after tax from discontinued
operations in the statement of profit and loss. All other
notes to the financial statements mainly include amounts
for continuing operations, unless otherwise mentioned.

23 Earnings per share

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
/ (loss) considered in ascertaining the Company's
earnings per share is the net profit / (loss) for the
year. The weighted average number equity shares
outstanding during the year and all year 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 resources. For the
purpose of calculating diluted earnings per share, the
net profit of loss for the period attributable to equity
shareholders and the weighted average number of
share outstanding during the year is adjusted for the
effects of all dilutive potential equity shares.

24 Investment in Associate

Investment in associates are accounted at cost in
accordance with Ind AS 28.

25 All amounts disclosed in the standalone financial
statements and notes have been rounded off to
the nearest lakh (upto two decimals) as per the
requirement of Schedule III, unless otherwise stated.

1C NEW AND AMENDED STANDARDS

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after 1 April 2024. The Company has not
early adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of corporate Affairs (MCA) notified the
Ind AS 117, Insurance Contracts, vide notification
dated 12 August 2024, under the Companies (Indian
Accounting Standards) Amendment Rules, 2024,
which is effective from annual reporting periods
beginning on or after 1 April 2024.

Ind AS 117 Insurance Contracts is a comprehensive
new accounting standard for insurance contracts
covering recognition and measurement, presentation
and disclosure. Ind AS 117 replaces Ind AS 104
Insurance Contracts. Ind AS 117 applies to all types of
insurance contracts, regardless of the type of entities
that issue them as well as to certain guarantees and
financial instruments with discretionary participation
features; a few scope exceptions will apply. Ind AS 117
is based on a general model, supplemented by:

• A specific adaptation for contracts with direct
participation features (the variable fee approach)

• A simplified approach (the premium allocation
approach) mainly for short-duration contracts

The application of Ind AS 117 had no impact on the
Company's standalone financial statements as the
Company has not entered any contracts in the nature
of insurance contracts covered under Ind AS 117.

(ii) Amendment to Ind AS 116 Leases - Lease
Liability in a Sale and Leaseback

The MCA notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024, which
amend Ind AS 116, Leases, with respect to Lease
Liability in a Sale and Leaseback.

The amendment specifies the requirements that a
seller-lessee uses in measuring the lease liability arising
in a sale and leaseback transaction, to ensure the seller-
lessee does not recognise any amount of the gain or loss
that relates to the right of use it retains. The amendment
is effective for annual reporting periods beginning on or
after 1 April 2024 and must be applied retrospectively
to sale and leaseback transactions entered into after the
date of initial application of Ind AS 116.

The amendment does not have any impact on the
Company's standalone financial statements

STANDARDS ISSUED BUT NOT YET EFFECTIVE

There are no standards that are notified and not yet
effective as on the date.

CLIMATE RELATED MATTERS

The Company considers climate-related matters
in estimates and assumptions, where appropriate
and based on its overall assessment, believes that
the climate-related risks might not currently have a
significant impact on the Company. However, the
Company will continue to closely monitor relevant
changes and developments, such as any new climate-
related legislation as and when they become applicable

1D SUMMARY OF CRITICAL ESTIMATES, JUDGEMENTS
AND ASSUMPTIONS

The preparation of standalone financial statements requires
the use of accounting estimates which, by definition, will
seldom equal the actual results. The management also needs
to exercise judgment in applying the Company's accounting
policies. This note provides an overview of the areas that
involved a higher degree of judgment or complexity, and of
items which are more likely to be materially adjusted due to
estimates and assumptions turning out to be different than
those originally assessed. Detailed information about each
of these estimates and judgments is included below.

1 Warranty provision

The Company generally offers 1-2 years standard
warranties for its products. The Company has taken
warranty insurance under which most of the products
are covered. The Company recognises warranty
provision basis assumptions, on serviceable sales
and cost to service those serviceable sales. The
warranty insurance premium paid is charged off to
the statement of profit and loss account and warranty
insurance assets is created on an estimated basis. The
insurance claims received are then netted against the
said warranty insurance assets.

The Company also sells certain lighting fitting to its
customers. In few lighting fittings products, the drivers
are an essential part and are expected to last for a
longer period. In such cases, the Company provides
warranties beyond fixing defects that existed at the
time of sale. Basis this, the Company recognises this
as a separate performance obligation and recognises
revenue only in the period in which such service is
provided based on time elapsed.

2 Impairment allowance for trade receivables

The Company makes allowances for doubtful
accounts receivable using a simplified approach
which is a dual policy of an ageing based provision
and historical / anticipated customer experience.
Management believes that this simplified model
closely represents the expected credit loss model to be
applied on financial assets as per Ind AS 109. Further,
in case of operationally closed projects, Company
makes specific assessment of the overdue balances
by considering the customer's historical payment
patterns, latest correspondences with the customers
for recovery of the amounts outstanding and credit
status of the significant counterparties where
available. Accordingly, a best judgment estimate is
made to record the impairment allowance in respect of
operationally closed projects.

3 Project revenue and costs

Revenue from construction contracts is recognised
based on the stage of completion determined with
reference to the actual costs incurred up to reporting
date on the construction contract and the estimated
cost to complete the project. The percentage-of-
completion method places considerable importance
on accurate estimates to the extent of progress
towards completion and may involve estimates on
the scope of deliveries and services required for
fulfilling the contractually defined obligations. These
significant estimates include total contract costs, total
contract revenues, contract risks, including technical,
political and regulatory risks, and other judgments.
The Company re-assesses these estimates on periodic
basis and makes appropriate revisions accordingly.

4 Fair value measurement

When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using appropriate valuation
techniques. The inputs for these valuations are taken
from observable sources where possible, but where
this is not feasible, a degree of judgement is required
in establishing fair values. Judgements include
considerations of various inputs including liquidity
risk, credit risk, volatility etc. Changes in assumptions/
judgements about these factors could affect the
reported fair value of financial instruments. Refer Note
34 of financial statements for the fair value disclosures
and related sensitivity.

5 Employee benefits

The cost of the defined benefit gratuity plan and other
post-employment leave benefits are determined using
actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from
actual developments in the future. These include
the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature,
a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are
reviewed at each reporting date. The mortality rate is
based on publicly available mortality tables. Those
mortality tables tend to change only at interval in
response to demographic changes. Future salary
increases are based on expected future inflation rates.
Refer note 21 of financial statements for disclosure.

6 Leases

Estimates are required to determine the appropriate
discount rate used to measure lease liabilities. The
Company cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The
IBR is the rate of interest that the Company would
have to pay to borrow over a similar term, and with a
similar security, the funds necessary to obtain an asset
of a similar value to the right-of-use asset in a similar
economic environment. The IBR therefore reflects
what the Company 'would have to pay', which requires
estimation when no observable rates are available or
when they need to be adjusted to reflect the terms
and conditions of the lease. The Company estimates
the IBR using observable inputs (such as market
interest rates, bank rates to the Company for a loan of a
similar tenure, etc). The Company has applied a single
discount rate to a portfolio of leases of similar assets in
similar economic environment with a similar end date.

7 Impairment of non-financial assets

The Company assesses, at each reporting date,
whether there is an indication that an asset may be
impaired. If any indication exists, or when annual
impairment testing for an asset is required, the
Company estimates the asset's recoverable amount.
An asset's recoverable amount is the higher of an
asset's or cash-generating unit's (CGU) fair value less
costs of disposal and its value in use. The recoverable
amount is determined for an individual asset, unless
the asset does not generate cash inflows that are
largely independent of those from other assets or
Companys of assets. When the carrying amount of
an asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to its
recoverable amount.

In assessing value in use, the estimated future cash
flows are discounted to their present value using
a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs

of disposal, recent market transactions are taken into
account. If no such transactions can be identified,
an appropriate valuation model is used. These
calculations are corroborated by valuation multiples,
quoted share prices for publicly traded companies or
other available fair value indicators.

The Company bases its impairment calculation on
detailed budgets and forecast calculations, which
are prepared separately for each of the Company's
CGUs to which the individual assets are allocated.
These budgets and forecast calculations generally
cover a period of five years. For longer periods, a long¬
term growth rate is calculated and applied to project
future cash flows after the fifth year. To estimate cash
flow projections beyond periods covered by the most
recent budgets/forecasts, the Company extrapolates
cash flow projections in the budget using a steady or
declining growth rate for subsequent years, unless an
increasing rate can be justified. In any case, this growth
rate does not exceed the long-term average growth
rate for the products, industries, or country or countries
in which the Company operates, or for the market in
which the asset is used.

Impairment losses of continuing operations, including
impairment on inventories, are recognised in the
statement of profit and loss, except for properties
previously revalued with the revaluation surplus
taken to OCI. For such properties, the impairment is
recognised in OCI up to the amount of any previous
revaluation surplus.

For assets excluding goodwill, an assessment is made
at each reporting date to determine whether there is
an indication that previously recognised impairment
losses no longer exist or have decreased. If such
indication exists, the Company estimates the asset's
or CGU's recoverable amount. A previously recognised
impairment loss is reversed only if there has been a
change in the assumptions used to determine the
asset's recoverable amount since the last impairment
loss was recognised. The reversal is limited so that
the carrying amount of the asset does not exceed its
recoverable amount, nor exceed the carrying amount
that would have been determined, net of depreciation,
had no impairment loss been recognised for the
asset in prior years. Such reversal is recognised in the
statement of profit and loss unless the asset is carried
at a revalued amount, in which case, the reversal is
treated as a revaluation increase.

8 Retailer Bonding Program

The Company has a loyalty points program, "Retailer
Bonding Program", which allows customers to
accumulate points that can be redeemed for free
products, upto a limited time period. The loyalty points
give rise to a separate performance obligation as they
provide a material right to the customer. A portion of
the transaction price is allocated to the loyalty points
awarded to customers based on relative stand-alone
selling price and recognized as deferred revenue

until the points are redeemed. Revenue is recognized
upon redemption of products by the customer. When
estimating the stand-alone selling price of the loyalty
points, the Company considers the likelihood that
the customer will redeem the points. The Company
considers various judgement and estimates like
determination of cost of redemption, redeemed points,
expiry date, etc. The Company updates its estimates on
a quarterly basis and any adjustments to the deferred
revenue are charged against revenue.

9 Share based payments

The Company initially measures the cost of cash-
settled transactions with employees using a binomial
model to determine the fair value of the liability
incurred. Estimating fair value for share-based
payment transactions requires determination of the
most appropriate valuation model, which is dependent

on the terms and conditions of the grant. This estimate
also requires determination of the most appropriate
inputs to the valuation model including the expected
life of the share option, volatility and dividend yield
and making assumptions about them.

10 Taxes

Deferred tax assets are recognised for unused tax
losses to the extent that it is probable that taxable
profit will be available against which the losses can
be utilised. Significant management judgement is
required to determine the amount of deferred tax
assets that can be recognised, based upon the likely
timing and the level of future taxable profits together
with future tax planning strategies.

11 For judgements relating to contingent liabilities,
refer note 40(a).

Nature and purpose of reserves
Securities Premium

Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with the provisions of the
Companies Act, 2013.

General Reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified
percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in
a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the
total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer
a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the
general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

Share options outstanding account

The fair value of the equity-settled share based payment transactions is recognised in Statement of Profit and Loss with corresponding
credit to Employee Stock Options Outstanding Account.

Effective Portion of Cashflow Hedges

The Company uses hedging instruments as part of its management of foreign currency risk and interest rate risk associated on
borrowings. For hedging foreign currency and interest rate risk, the Company uses foreign currency forward contracts, cross
currency swaps, foreign currency option contracts and interest rate swaps. To the extent these hedges are effective, the change in
fair value of the hedging instrument is recognised in the effective portion of cash flow hedges. Amounts recognised in the effective
portion of cash flow hedges is reclassified to the statement of profit and loss when the hedged item affects profit or loss.

Amalgamation adjustment reserve

The Company creates amalgamation adjustment reserve on account of business combination pursuant to any schemes for
merger/demerger, etc.

Note 17 : Other Equity (Contd..)

Retained earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general reserve,
dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit
plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

Capital reserve

In case of business combinations, if the fair value of the net assets acquired is in excess of the aggregate consideration transferred,
the Company re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews
the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess
of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in OCI and
accumulated in equity as capital reserve. However, if there is no clear evidence of bargain purchase, the entity recognises the gain
directly in equity as capital reserve, without routing the same through OCI.

Capital redemption reserve

The Company in the past had redeemed certain preference shares of H 1,000.00 lakhs. The Company had set aside an equal amount
from retained earnings into capital redemption reserve. Further, the said capital redemption reserve was used for issue of bonus
shares in the year ended March 31, 2008 and an amount of H 864.29 lakhs was utilised from the said reserve.

Note 18 : Borrowings

There are no borrowings outstanding as at 31st March 2025 and 31st March 2024.

Note a : Below are the details of the assets hypothecated and immovable properties charged towards the facility of fund and non¬
fund based limits with the Company

First pari passu charge by way of hypothecation of inventories, book debts and all movable assets under the head property,
plant and equipment

First pari passu charge on the Company's immovable properties at

- Wardha premises - Plot no. 36, Block no. 17, Mouza no. 225, Bacharaj road, Gandhi Chowk, Wardha

- Hari Kunj - Flat No. 103 and 104, 'B' wing, Sindhi Society, Chembur East, Mumbai - 400071

Second pari passu charge over present and future property, plant and equipment of the Company, situated at

- Chakan Unit : Village Mahalunge, Chakan Talegaon Road, Khed, Pune - 410501;

- Showroom on Ground floor and Office Premises on Second Floor at Bajaj Bhawan 226, Jamnalal Bajaj Marg, Nariman Point,
Mumbai 400 021.

- Office Premises No : 001, 502 and 701, 'Rustomjee Aspiree', Bhanu Shankar Yagnik Marg, Off Eastern Highway, Sion (East),
Mumbai - 400 022

- R & D centre at Plot no. 27/ pt 2/ at Millennium Business Park, TTC Industrial area, Mahape, Navi Mumbai
The Company has not defaulted on any loans which were due for repayment during the year.

Note b : The Company has funded and non-funded borrowing limits from banks and financial institutions and has utilised the same for
the specific purpose for which it was taken. Further, these limits are on the basis of security of current assets and the Company has filed
quarterly returns / statement of current assets with banks or financial institutions which are in agreement with the books of accounts.

a) Funding arrangements and Funding Policy

The scheme is managed on funded basis. Payment for present liability of future payment of PF is made by the Company
towards shortfall of Bajaj Electricals Limited Employees' Provident Fund Trust and Matchwel Electricals (India) Ltd Employees'
Provident Fund Trust. The investments for the same are managed by Trustees as per advice and recommendations of a
professional consultant and in compliance of obligatory pattern of investments as per government notification in official
gazette for the pattern of investment for EPF exempted establishments. Any deficit in the assets of PF Trusts is funded by the
Company. The provident fund for certain employees is a defined contribution plans covered under RPFC Contributions

Considering the emerging practices in India and globally, the Company has certain obligations on behalf of suppliers or customers and
in certain cases bears portion of interest cost. The company has treated the same as a separate line item as trade credit arrangements on
the face of the balance sheet under financial liabilities to provide users to assess impact on liabilities, cash flows and liquidity risks more
clearly. Suppliers credit was hitherto included in trade payables and customer channel financing was included in other financial liabilities.
These are not due as on the date of the balance sheet.

* Customer credits include receivables which are subject to factoring arrangements and channel financing facilities. Under this arrangement the Company
has transferred the relevant receivables to the factor in exchange for cash. The Company continues to recognise the transferred assets in their entirety in its
balance sheet with the corresponding liability under customer credits.

** Supplier's credit also includes amounts payable towards vendor financing entered into with the suppliers. Under this arrangement, the supplier is eligible
to receive payment prior to the expiry of extended credit period by assigning such invoices to a third-party purchaser bank based on security in the form of
an undertaking issued by the Company to the bank. Further, the supplier charges interest to the Company for the extended credit period which has been
presented under Finance Cost

Note 33 : Employee stock options : (Contd..)

Assumptions:

Stock Price: Closing price on National Stock Exchange on the date of grant has been considered

Volatility: The expected price volatility is based on the historic volatility, adjusted for any expected changes to future volatility due
to publicly available information. The volatility is calculated considering the daily volatility of the stock prices on National Stock
Exchange of India Ltd. (NSE), over a period prior to the date of grant corresponding with the expected life of the options.

Risk-free rate of return: The risk-free interest rate being considered for the calculation is the interest rate applicable for a maturity
equal to the expected life of the options based on the zero-coupon yield curve for Government Securities

Exercise Price: Exercise Price of each specific grant has been considered.

Time to Maturity: Time to Maturity / Expected Life of options is the period for which the Company expects the options to be live.

Expected divided yield: Expected dividend yield has been calculated as an average of dividend yields for five financial years
preceding the date of the grant

The Company's principal financial liabilities comprise of trade payables, trade credits, lease liabilities and other financial liabilities. The
main purpose of these financial liabilities is to finance the entity's operations and to provide support for its operations. The Company's
principal financial assets include trade receivables, investments, cash and cash equivalents and bank balances, loans and other financial
assets, that derive directly from its operations.

The Company lays down appropriate policies and procedures to ensure that financial risks are identified, measured and managed in
accordance with the entity's policies and risk objectives.

The Company is exposed to credit risk, liquidity risk and market risk, which are explained in detail below:

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.
Credit risk encompasses the direct risk of default, the risk of deterioration of creditworthiness as well as concentration risks. The
Company is exposed to credit risk from its operating activities mainly in relation to trade and other receivables and bank deposits
and investments.

Trade and other receivables

Trade and other receivables of the Company are typically unsecured and credit risk is managed through credit approvals and
periodical monitoring of the creditworthiness of customers to which the Company grants credit terms. In respect of trade receivables,
the Company typically operates in two segments:

Consumer products

The Company sells the products mainly through various channels i.e. dealers and distributors, institutions and e-commerce and
through government sector. The appointment of dealers, distributors, institutions is strictly driven as per the standard operating
procedures and credit policy followed by the Company. In case of government sector, the credit risk is low.

Lighting Solutions

In case of Business to Consumer (B2C) sub-segment, the credit risk of the receivables are similar to consumer products.

In case of Business to Business (B2B) sub-segment, the Company undertakes projects for government institutions (including local
bodies) and private institutional customers. The credit concentration is more towards government institutions. These projects
are normally of duration of 6 months to 1 year. Such projects normally are regular tender business with the terms and conditions
agreed as per the tender. The Company enters into such projects after careful consideration of strategy, terms of payment, past
experience etc.

In case of private institutional customers, before tendering for the projects company evaluate the creditworthiness, general feedback
about the customer in the market, past experience, if any with customer, and accordingly negotiates the terms and conditions
with the customer.

The Company assesses its trade and other receivables for impairment at the end of each reporting period. In determining whether
an impairment loss should be recorded in profit or loss, the Company makes judgements as to whether there is observable data
indicating a measurable decrease in the estimated future cash flows from such trade and other receivables. In respect of trade
receivables the Company has a provisioning policy that is commensurate to the expected losses. The provisioning policy is based
on past experience, customer creditability, and also on the nature and specifics of business. In case of B2B sub-segment in Lighting
Solutions, the Company also provides on more case-to-case basis.

The maximum exposure to credit risk as at March 31, 2025 and March 31, 2024 is the carrying value of such trade and other
receivables as shown in note 6, 8 and 13 of the standalone financial statements.

Bank deposits & Investments

The Company maintains its cash and bank balances with credit worthy banks and financial institutions and reviews it on an on-going
basis. Moreover, the interest-bearing deposits are with banks and financial institutions of reputation, good past track record and high-
quality credit rating. Hence, the credit risk is assessed to be low. The maximum exposure to credit risk as at March 31, 2025 and March
31, 2024 is the carrying value of such cash and cash equivalents and deposits with banks as shown in note 8, 12 and 13 of the financials.

B) Liquidity risk

The Company has a central treasury department, which is responsible for maintaining adequate liquidity in the system to fund
business growth, capital expenditures, as also ensure the repayment of financial liabilities. The department obtains business plans
from business units including the capex budget, which is then consolidated and borrowing requirements are ascertained in terms
of long term funds and short-term funds. Treasury maintains flexibility in funding by maintaining availability under committed credit
lines in the form of fund based and non-fund based (LC and BG) limits.

The limits sanctioned and utilised are then monitored monthly, fortnightly and daily basis to ensure that mismatches in cash flows
are taken care of, all operational and financial commitments are honoured on time and there is proper movement of funds between
the banks from cashflow and interest arbitrage perspective.

(C) 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 commodity risk.

(i) 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 operates in the global market and is therefore exposed to foreign exchange risk arising from foreign currency
transactions, primarily with respect to the US Dollar ('USD'), Euro ('EUR'), Great Britain Pound ('GBP'), Chinese Yuan Renminbi
('RMB'), United Arab Emirates Dirham ('AED'), and Canadian Dollar ('CAD'). Exposure is largely in exports receivables and
Imports payables arising out of trade in the normal course of business. As these commercial transactions are recorded in
currency other than the functional currency (INR), the Company is exposed to Foreign Exchange risk arising from future
commercial transactions and recognised assets and liabilities. The Company is a net importer as its imports and other forex
liabilities exceeds the exports. It ascertains its forex exposure and bifurcates the same into forex receivables and payables.
These exposures are covered by taking appropriate forward cover from the banks.

The Company takes a forward cover based on the underlying liability for the estimated period which would be closed to
the likely maturity date of the forex liability proposed to be hedged. On maturity date, the forward contracts are utilized for
settlement of the underlying transactions or cancelled.

(ii) 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. In case of short term borrowings, the interest rate is fixed in a large number of cases. Hence, interest rate
risk is assessed to be low. Accordingly, the sensitivity / exposure to change in interest rate is insignificant

(iii) Commodity Price risk

The Company's revenue is exposed to market risk of price fluctuations related to the sales of its products. Market forces
generally determine the prices for the products sold by the Company. This prices may be influenced by the factors such as
supply, demand, production cost (including the cost of raw materials), regional and global economic conditions and growth.
Adverse changes in any of the factors may reduce the revenue that Company earns from sale of its products. The Company is
therefore subject to fluctuations in prices for the purpose of raw materials like Aluminium, Copper and other raw material inputs.

Commodity hedging is used primarily as a risk management tool to secure the future cash flow in case of volatility by entering
into commodity forward contracts. The Company has entered into commodity forward contracts for aluminium and Copper.
Hedging the price volatility of forecast aluminium and copper purchases is in accordance with the risk management strategy
outlined by the Board of Directors. Hedging commodity is based on procurement schedule and price risk. Commodity is
undertaken as a risk offsetting exercise and depending upon market conditions, hedges may extend beyond the financial year.

There is an economic relationship between the hedged items and the hedging instruments as the terms of the foreign
exchange and commodity forward contracts match the terms of the expected highly probable forecast transactions (i.e.,
notional amount and expected payment date). The Company has established a hedge ratio of 1:1 for the hedging relationships
as the underlying risk of the foreign exchange and commodity forward contracts are identical to the hedged risk components.
To test the hedge effectiveness, the Company uses the hypothetical derivative method and compares the changes in the fair
value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks.

The hedge ineffectiveness can arise from:

• Differences in the timing of the cash flows of the hedged items and the hedging instruments

• Different indexes (and accordingly different curves) linked to the hedged risk of the hedged items and hedging instruments

Note 35: Financial risk management objectives and policies (Contd..)

• The counterparties' credit risk differently impacting the fair value movements of the hedging instruments and hedged items

• Changes to the forecasted amount of cash flows of hedged items and hedging instruments
There are no commodity future contracts held as on 31st March 2025 and 31st March 2024.

There are no hedging transactions during the year ended as on 31st March 2025 and 31st March 2024.

There are no hedging gain/loss during the year ended as on 31st March 2025 and 31st March 2024.

Note 36: Capital Management

The Company has cash surplus and has no capital other than equity and reserves.

The cash surpluses are currently invested in income generating debt instruments (including through mutual funds) and money market
instruments depending on economic conditions in line with the guidelines set out by the Management. Safety of capital is of prime
importance to ensure availability of capital for operations. Further the objective of the Company's capital management is to safeguard
its ability to continue as going concern, maintain strong credit rating, preserve cash and to ensure that it maintains an efficient capital
structure and maximize shareholder value.

The Company does not have any borrowings and does not borrow funds unless circumstances require. To maintain or adjust the capital
structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any
externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the
year ended March 31, 2025 and March 31, 2024.

# As the future liability for defined benefit obligations and other long term employment benefits is provided on an actuarial basis for the Company as a whole,
the amounts pertaining to key managerial personnel is not ascertainable and hence not included above.

There are no loans or advances granted to promoters, directors, KMPs and the related parties that are repayable on demand or without
any terms or period of repayment

" Refer note 40(xi) and 40(xii) for transactions entered between Bajaj Electricals Limited and Bajel Projects Limited pursuant to the scheme of demerger.

As on March 31, 2025, the Company has granted 240,738 employee stock options to Key Managerial Personnel. Of this, 17,875 options are vested, 16,113
options are unvested, 74,750 options are exercised and 132,000 options are cancelled.

Terms and conditions of major transactions with related parties

(i) Sales to related parties and concerned balances

Sales are made to related parties on the same terms as applicable to third parties in an arm's length transaction and in the ordinary
course of business. The Company mutually negotiates and agrees sales price, discount and payment terms with the related parties by
benchmarking the same to transactions with non-related parties, who purchase goods and services of the Company in similar quantities.
Such sales generally include payment terms requiring related party to make payment within 30 to 60 days from the date of invoice.

Trade receivables outstanding balances are unsecured, interest free and require settlement in cash. No guarantee or other security
has been received against these receivables. The amounts are recoverable within 30 to 60 days from the reporting date (31 March
2024: 30 to 60 days from the reporting date). For the year ended 31 March 2025, the Company has not recorded any impairment on
receivables due from related parties (31 March 2024: Nil)

(ii) Purchase of goods and concerned balances

Purchases are made from related parties on the same terms as applicable to third parties in an arm's length transaction and in the
ordinary course of business. The Company mutually negotiates and agrees purchase price and payment terms with the related
parties by benchmarking the same to sale transactions with non-related parties entered into by the counter-party and similar
purchase transactions entered into by the Company with the other non-related parties. Such purchases generally include payment
terms requiring the Company to make payment within 30 to 60 days from the date of invoice.

Trade payables outstanding balances are unsecured, interest free and require settlement in cash. No guarantee or other security has
been given against these payables. The amounts are payable within 30 to 60 days from the reporting date (31 March 2024: 30 to 60
days from the reporting date).

(iii) Compensation to KMP of the Company

The amounts disclosed above are the amounts recognised as an expense during the financial year related to KMP. The amounts do not
include expense, if any, recognised toward post-employment benefits and other long-term benefits of key managerial personnel. Such
expenses are measured based on an actuarial valuation done for each Company in the Company as a whole. Hence, amounts attributable

to KMPs are not separately determinable. Short-term employee benefits includes the sitting fees and commission as approved by the
Board. Long-term employee benefits includes contribution to provident fund. Post-employment benefits includes contribution to super
annunation fund. Further non-executive directors do not receive any gratuity or post-employment benefits from the Company.

(iv) Transactions with group entity (Bajel Projects Limited)

The transactions entered with Bajel Projects Limited mainly includes transactions like cross charge for shared services, reimbursement
of expenses and rental for a let-out property. All of these transactions are on the same terms as applicable to third parties in an arm's
length transaction and in the ordinary course of business. During the year, the Company has also entered into a transaction, where
the Company has places fixed deposits on behalf of the group entity. The Company has carried out a benchmark analysis and is
adequately compensated for the risk undertaken. Outstanding balances are unsecured, interest free and require settlement in cash.
No guarantee or other security has been received against these outstanding. The amounts are recoverable within 30 to 60 days from
the reporting date (31 March 2024: 30 to 60 days from the reporting date). For the year ended 31 March 2025, the Company has not
recorded any impairment on these outstanding due from related parties (31 March 2024: Nil)

The Company has also given certain performance guarantees to third parties on behalf of the group entity. The Company has
entered into a back-to-back indemnity arrangement by way of an Undertaking cum Corporate Guarantee ("UGC"), whereby the
group entity shall, inter alia, agree to indemnify the Company for any loss, if any, suffered in the event that any Guarantee is invoked
by a customer during this interim period. For the year ended 31 March 2025, the Company has not recorded any impairment on
guarantee arrangement (31 March 2024: Nil). Refer note 40(xi) and 40(xii) for more details

(v) Transactions with group entity (Bajaj Allianz General Insurance Company Limited)

The Company has taken certain general insurances like warranty insurance and others from the group entity Bajaj Allianz General
Insurance Company Limited. All of these transactions are on the same terms as applicable to third parties in an arm's length
transaction and in the ordinary course of business. The Company has certain insurance claims receivable for warranty insurances as
on the balance sheet date. For the year ended 31 March 2025, the Company has not recorded any impairment on these outstanding
due from the group entity (31 March 2024: Nil)

(vi) Transactions with group entity (Bajaj Allianz Life Insurance Co Limited)

The Company has taken insurance policies towards the gratuity and earned leave obligations towards the employees. These
insurance policies are actuarially valued by an independent valuer. For the year ended 31 March 2025, the Company has not
recorded any impairment on these outstanding due from the group entity (31 March 2024: Nil)

(vii) Transactions with group entity (Bajaj Finance Limited)

The Company has invested the surplus funds in fixed deposits with the the group entity, Bajaj Finance Limited. The rate of interest offered
are on the same terms as applicable to third parties in an arm's length transaction and in the ordinary course of business. For the year ended
31 March 2025, the Company has not recorded any impairment on these outstanding due from the group entity (31 March 2024: Nil)

viii) The E-waste Rules, 2022 replaced E-waste (Management) Rules, 2016 and became effective from April 1, 2023. The
Company manufactures wide range of products like, consumer electrical and electronics, and large and small electrical and
electronic equipment, which are covered under the E-waste Rules, 2022.

Pursuant to the 2024 Amendment Rules, the Central Pollution Control Board (CPCB) also introduced the Guidelines for
Environment Compensation under the E-Waste (Management) Rules, 2022 dated 9th September 2024 ("CPCB Guidelines"),
which, fixed the lowest price for the purposes of non - fulfilment of EPR target end - product wise, for Electrical and
Electronic Equipment ("EEE") products, anywhere between INR 22 per kilogram to INR 41 per kilogram. Many companies/
producers have proceeded to file Writ Petitions before the Hon'ble High Court of Delhi under Article 226 of the Constitution
of India, 1950, inter alia challenging the validity of the 2024 Amendment Rules and the CPCB Guidelines.

The Company has also taken a legal opinion on this matter challenging the same as ultravires. Pursuant to the above the
Company has fulfilled its EPR obligations of FY25 at the rates prevailing/charged in the market by the EPR agencies, which
is around H 7-10 per kilogram. However, since the matter above is sub-judice, the Company is disclosing H 1,193 lakhs as a
contingent liability.

The amounts recognised in the financial statements towards fulfilment of EPR obligations for FY25 is H 1,001.68 lakhs which
is shown under other expenses (note 30).

ix) These represent legal claims filed against the Company by various parties and these matters are in litigation. Management
has assessed that in all these cases the outflow of resources embodying economic benefits is not probable.

x) The Company had in earlier years terminated employment agreements of few die casting workmen at the Chakan plant. On
3rd July, 2018, the Honourable Hight Court of Bombay had awarded the appeal in favour of the Company. On 27th June,
2019, the appeal on the matter has been admitted in the Honourable Supreme Court. Management has assessed that the
outflow of resources embodying economic benefits is not probable and has accordingly considered the claim of H 354.17
lakhs as contingent liability as at March 31, 2025 (H 328.70 as at March 31, 2024).

xi) For certain customer contracts that formed part of the demerged undertaking (erstwhile EPC Segment of the Company), the
Company had provided certain performance bank guarantees. For smooth transitioning, the Company had allowed these
guarantees to remain in place for a limited period post the effective date (September 1, 2023) until such time as Bajel Projects
Limited (BPL) is able to have them replaced by its own bank guarantees. In turn, BPL and the Company has entered into a back-to-
back indemnity arrangement by way of an Undertaking cum Corporate Guarantee ("UGC"), whereby BPL shall, inter alia, agree to
indemnify the Company for any loss, if any, suffered in the event that any Guarantee is invoked by a customer during this interim
period. The open exposure as on March 31, 2025 and March 31, 2024 is H 1,571.86 lakhs and H 14,101.96 lakhs, respectively.

xii) Before the Scheme of Demerger between the Company and Bajel Projects Limited ('BPL') (erstwhile EPC segment of the

Company), took effect, the Company had secured a contract for developing the electric supply infrastructure in Sasaram and
Munger, Bihar, by South Bihar Power Distribution Company Limited ("Contract"). Following the Scheme, this Contract stands
transferred and vested in Bajel Projects Limited.

To facilitate this transition of the Contract smoothly, it was proposed to form a Tripartite Agreement among Bajel Projects
Limited, the Company, and South Bihar Power Distribution Company Limited, alongside an Irrevocable Indemnity Cum
Undertaking between Bajel Projects Limited and the Company.

b. Commitments

i. Estimated amounts of contracts remaining to be executed in capital account (net of capital advances) is H 1,546.99 lakhs
(March 31, 2024, H 755.58 lakhs).

Contract assets are initially recognised for revenue earned from supply of materials and erection services provided when the
performance obligation is met. Upon achievement and acceptance of milestones mentioned by the customer, the amounts
recognised as contract assets are reclassified to trade receivables.

Contract liabilities are relates to payments received in advance of performance under the contract and billing in excess of contract
revenue recognised. Contract liabilities are recognised as revenue when the Company satisfies the performance obligation
under the contract.

(iii) Performance obligations

Information about the Company's performance obligations under Consumer Products & Lighting Solutions segment are
summarised below:

Consumer Product and B2C sub-segment of Lighting Solutions Segment:

a) Delivery of goods:

The Company sells fans, appliances and lighting products to the customers. The performance obligation is satisfied and
revenue is recognised on dispatch of the goods to the customers. The stand alone selling price of the performance obligation
is determined after taking the variable consideration and right to return. The contracts do not have a significant financing
component. The Company offers standard warranty on selected products. The Company makes provision for same as per the
principles laid down under Ind AS 37. The payment is generally due within 30 to 60 days across various streams of customers.

b) Loyalty program:

The Company operates a customer loyalty program (for retailers), where the customer is awarded certain points on purchase
of selected products from the Company. The customer (retailer) can redeem these points in future. The Company treats the
redemption of customer loyalty points as a separate performance obligation. Accordingly, the revenue is recognised by
allocating the total transaction price on the stand alone selling prices of sale of goods and loyalty points.

c) Extended warranties:

The Company provides a warranty beyond fixing defects that existed at the time of sale. These service-type warranties are
bundled together with the sale of products. Contracts for bundled sales of products and a service-type warranty comprise
two performance obligations because the product and service-type warranty are both sold on a stand-alone basis and are
distinct within the context of contract. Using the relative stand-alone selling price method, a portion of the transaction price is
allocated to the service-type warranty and recognised as deferred revenue. Revenue for service-type warranties is recognised
over the period in which the service is provided based on the time elapsed.

B2B sub-segment of Lighting Solutions:

The performance obligations is the supply of materials and erection services. The supply of materials and erection services are
promised goods and services which are not individually distinct. Hence both of them are counted as a single performance obligation
under the contract. The satisfaction of this performance obligation happens over time, as the performance or enhancement of the
obligation is controlled by the customer. Also, the performance of the obligation creates an asset without any alternative use to the
customer. The Company uses the input method to determine the progress of the satisfaction of the performance obligation and
accordingly recognises revenue.

The standalone selling price of the performance obligation is determined after taking the variable consideration and significant
financing component.

The Company for the consumer products segment, generally takes godowns on lease to store the goods at various locations. These godowns
generally have a term of 1 year to 3 years. There are few godowns with a longer lease period of 5 years or more also. Further, the Company
has few guest houses, residential premises and office premises also on leases which generally for a longer period ranging from 2-5 years.

The Company's obligations under its leases are secured by the lessor's title to the leased assets. Upon adoption of Ind AS 116, the
Company applied a single recognition and measurement approach for all leases for which it is the lessee, except for short-term leases
and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing
the right to use the underlying assets, on the commencement of the lease. There are several lease contracts that include extension and
termination options. The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered
by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is
reasonably certain not to be exercised. The leases which the Company enters, does not have any variable payments. The lease rents are
fixed in nature with gradual escalation in lease rent.

Apart from the above, the Company also has various leases which are either short term in nature or the assets which are taken on the
leases are generally low value assets (e.g. printers). Lease payments on short-term leases and leases of low-value assets are recognised
as expense on a straight-line basis over the lease term.

1. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

2. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the
statutory period,

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

4. The Company has not advanced or loaned or invested 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

5. 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,

6. The Company has not had or does not have any such 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

7. The Company has not granted any loans or advances in nature of loans to promoters, directors and KMPs either severally or jointly
with any other person during the year ended March 31, 2025 and March 31, 2024.

8. The Company has not been declared wilful defaulter by any bank, financial institution, government or government authority.

9. The Company has not revalued its property, plant and equipment (including right-to-use assets) or intangible assets during the year
ended March 31, 2025 and March 31, 2024.

10. Transactions with the companies which are struck off are as under

11. The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit
log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that the
Company is unable to comment on whether certain features of the audit trail of the said software has operated from the period
September 8, 2024, to February 11, 2025 or whether there were any instances of audit trail feature being tampered during the said
period in the absence of log of changes to certain audit features. Additionally, the audit trail of prior year has been preserved by the
Company as per the statutory requirements for record retention to the extent it was enabled and recorded in the respective year. The
same has been remediated as on date of adoption of these standalone financial statements.

Note 49: Subsequent events

The Company has evaluated subsequent events from the balance sheet date through May 12, 2025, the date at which the standalone
financial statements were available to be issued, and determined that there are no material items to disclose.

Note 50: Business Combinations

Merger of Nirlep Appliances Private Limited (NAPL) into the Company

The Hon'ble National Company Law Tribunal, Mumbai Bench, vide its order dated March 01, 2024 ("Order") [passed in the matter of
Company Scheme Petition No. C.P (C.A.A)/250(MB)2023 connected with C.A. (CAA)/246(MB)2022) ("Petition") in respect of the Scheme],
had inter-alia approved the Scheme of Merger by Absorption of Nirlep Appliances Private Limited ("Transferor Company") with Bajaj
Electricals Limited ("Transferee Company") and their respective shareholders under Sections 230 to 232 and other applicable provisions
of the Companies Act, 2013 ("Scheme").

Accordingly, the Company had accounted for the merger under the pooling of interest method in financial year 2023-24 as prescribed
in IND AS 103 Business Combinations of entities under common control. The Company had recorded the assets and liabilities, of the
Transferor Company vested in it pursuant to this Scheme, at the carrying values of the Transferee Company. The identity of the reserves
of the Transferor Company had been preserved and the Transferee Company had recorded the reserves of the Transferor Company in
the same form and at the carrying amount.

Demerger of EPC segment

During the previous year, Hon'ble National Company Law Tribunal, Mumbai Bench (""NCLT"") had approved the Scheme of Arrangement
between Bajaj Electricals Limited "Demerged Company") and Bajel Projects Limited ("Resulting Company") and their respective
shareholders (""Scheme""). On July 5, 2023, the Company had received a certified true copy of the order dated June 8, 2023 (""Order"")
passed by the Hon'ble NCLT approving the Scheme. The Company had completed the process of obtaining the requisite consent,
approval or permission of the appropriate authorities, which by applicable law or contract, agreement, were necessary for the effective
transfer of business and/or implementation of the Scheme. The Scheme, has been made effective from September 1, 2023.

Accordingly, effect of the de-merger had been considered in the standalone financial statements for the year ended March 31, 2024. The
assets and liabilities relating to the demerged undertaking have been de-recognised from the books and have been adjusted against the
retained earnings in the said standalone financial statements.

Note 51: Previous year's figures have been regrouped / reclassed wherever necessary to correspond with the current year's
classification / disclosure.

As per our report attached of even date For and on behalf of the Board of directors

For S R B C & CO LLP of Bajaj Electricals Limited

ICAI Firm Registration No. 324982E/E300003

Chartered Accountants Shekhar Bajaj Sanjay Sachdeva

Chairman Managing Director & Chief Executive Officer

DIN: 00089358 DIN: 11017868

per Aruna Kumaraswamy Prashant Dalvi EC Prasad Shailesh Haribhakti

Partner Company Secretary Chief Financial Officer Chairman - Audit Committee

Membership No.219350 DIN: 00007347

Mumbai, May 12, 2025 Mumbai, May 12, 2025