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Company Information

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MANGAL ELECTRICAL INDUSTRIES LTD.

13 August 2026 | 03:51

Industry >> Electric Equipment - Transformers

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ISIN No INE0PKD01011 BSE Code / NSE Code 544492 / MEIL Book Value (Rs.) 213.67 Face Value 10.00
Bookclosure 52Week High 574 EPS 15.62 P/E 17.57
Market Cap. 758.31 Cr. 52Week Low 206 P/BV / Div Yield (%) 1.28 / 0.00 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 :2026-03 

(XI) Provisions, Contingent Liabilities,
Commitments and Contingent Assets

A provision is recognized if, as a result of
a past event, the Company has a present
legal or constructive obligation that can
be estimated reliably, and it is probable
that an outflow of economic benefits
will be required to settle the obligation.
If the effect of the time value of money is
material, provisions are determined by
discounting the expected future cash
flows at a pre-tax rate that reflects current
market assessments of the time value of
money and the risks specific to the liability.
When discounting is used, the increase in
the provision due to the passage of time is
recognized as a finance costs.

The amount recognized as a provision is the
best estimate of the consideration required
to settle the present obligation at reporting
date, taking into account the risks and
uncertainties surrounding the obligation.

When some or all of the economic benefits
required to settle a provision are expected
to be recovered from a third party, the
receivable is recognized as an asset if it is
virtually certain that reimbursement will be
received and the amount of the receivable
can be measured reliably. The expense
relating to a provision is presented in the
statement of profit and loss net of any
reimbursement.

Contingent liabilities are possible
obligations that arise from past events and
whose existence will only be confirmed by
the occurrence or non-occurrence of one
or more future events not wholly within
the control of the Company. Where it is
not probable that an outflow of economic
benefits will be required, or the amount
cannot be estimated reliably, the obligation
is disclosed as a contingent liability, unless
the probability of outflow of economic
benefits is remote. Contingent liabilities
are disclosed on the basis of judgment of
the management/independent experts.
These are reviewed at each balance sheet
date and are adjusted to reflect the current
management estimate.

Contingent assets are possible assets that
arise 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 Company. Contingent assets are
disclosed in the financial statements when
inflow of economic benefits is probable
on the basis of judgment of management.
These are assessed continually to ensure
that developments are appropriately
reflected in the financial statements.

(XII) Foreign Currency Transactions and
Translation

Transactions in foreign currencies are initially
recorded at the functional currency spot
rates at the date the transaction first qualifies
for recognition.

Monetary assets and liabilities denominated
in foreign currencies are translated at the
functional currency spot rates of exchange
at the reporting date. Exchange differences
arising on settlement or translation of
monetary items are recognized in profit or
loss in the year in which it arises.

Non-monetary items are measured in terms
of historical cost in a foreign currency are not
retranslated.

(XIII) Revenue Recognition

(A) The Company derives revenues
primarily from the sale of goods .
Revenue is recognized on satisfaction of
performance obligation upon transfer
of control of promised products or
services to customers in an amount
that reflects the consideration the
Company expects to receive in
exchange for those products or services.

The Company does not expect to have
any contracts where the period between
the transfer of the promised goods or
services to the customer and payment
by the customer exceeds one year. As a
consequence, it does not adjust any of
the transaction prices for the time value
of money.

(B) According to Ind AS 115, Revenue from
EPC Contracts is recognized at the time
of billing determined with reference
to the costs incurred on contracts and
their estimated total costs. Provision
for foreseeable losses/ construction
contingencies on turnkey contracts
is made on the basis of technical
assessments of costs to be incurred and
revenue to be accounted for.

(C) Price Escalation and other claims or
variations in the contract work are
included in contract revenue only when:

i) Negotiations have reached to an
advanced stage such that it is
probable that customer will accept
the claim; and

ii) The amount that is probable will be
accepted by the customer and can
be measured reliably.

Other income

Interest income is recognized, when
no significant uncertainty as to
measurability or collectability exists,
on a time proportion basis taking into
account the amount outstanding and
the applicable interest rate.

(XIV) Employee Benefits

(A) Short-Term Employee Benefits

Short-term employee benefit obligations
are measured on an undiscounted basis
and are expensed as the related service
is provided.

A liability is recognized for the amount
expected to be paid under performance
related pay if the Company has a present
legal or constructive obligation to pay
this amount as a result of past service
provided by the employee and the
obligation can be estimated reliably.

(B) Post-Employment Benefits

Employee benefit that are payable after
the completion of employment are
Post-Employment Benefit (other than
termination benefit). These are of two
types:

(B.1) Defined Contribution Plans

Defined contribution plans
are those plans in which an
entity pays fixed contribution
into separate entities and will
have no legal or constructive
obligation to pay further
amounts. Provident Fund and
Employee State Insurance are
Defined Contribution Plans
in which the company pays a
fixed contribution and will have
no further obligation.

(B.2) Defined Benefit Plans A

defined benefit plan is a post¬
employment benefit plan other
than a defined contribution
plan.

Company pays Gratuity as
per provisions of the Gratuity
Act, 1972. The Company’s net
obligation in respect of defined
benefit plans is calculated
separately for each plan by
estimating the amount of future
benefit that employees have
earned in return for their service
in the current and prior periods;
that benefit is discounted to
determine its present value.
Any unrecognized past service
costs and the fair value of any
plan assets are deducted.
The discount rate is based
on the prevailing market
yields of Indian government
securities as at the reporting
date that have maturity dates
approximating the terms of the
Company’s obligations and that
are denominated in the same
currency in which the benefits
are expected to be paid. The
calculation is performed
annually by a qualified actuary
using the projected unit
credit method. When the
calculation results in a liability
to the company, the present
value of liability is recognized
as provision for employee
benefit. Any actuarial gains or

losses are recognized in Other
Comprehensive Income (“OCI”)
in the period in which they
arise.

(XV) Accounting for Taxes on Income

Tax expense comprises current tax and
deferred tax. Current tax expense is
recognized in the statement of profit
or loss except to the extent that it
relates to items recognized directly
in other comprehensive income or
equity, in which case it is recognized
in OCI or equity. Current tax is the
expected tax payable on the taxable
income for the period, using tax rates
enacted or substantively enacted and
as applicable at the reporting date, and
any adjustment to tax payable in respect
of previous years. Current taxes are
recognized under ‘Income tax payable’
net of payments on account, or under
‘Tax receivables’ where there is a debit
balance.

Deferred tax is recognized using the
balance sheet method, providing for
temporary differences between the
carrying amounts of assets and liabilities
for financial reporting purposes and the
amounts used for taxation purposes.
Deferred tax is measured at the tax
rates that are expected to be applied
to temporary differences when they
reverse, based on the laws that have
been enacted or substantively enacted
by the reporting date. Deferred tax
assets and liabilities are offset if there is a
legally enforceable right to offset current
tax liabilities and assets, and they relate
to income taxes levied by the same tax
authority on the same taxable entity, or
on different tax entities, but they intend
to settle current tax liabilities and assets
on a net basis or their tax assets and
liabilities will be realized simultaneously

Deferred tax is recognized in the
statement of profit or loss except to the
extent that it relates to items recognized
directly in OCI or equity, in which case it
is recognized in OCI or equity. A deferred
tax asset is recognized to the extent that

it is probable that future taxable profits
will be available against which the
temporary difference can be utilized.
Deferred tax assets are reviewed at each
reporting date and are reduced to the
extent that it is no longer probable that
the related tax benefit will be realized.
Additional income taxes that arise
from the distribution of dividends are
recognized at the same time that the
liability to pay the related dividend is
recognized.

(XVI) Leases

(A) As Lessor

Leases for which the Company is
a lessor is classified as a finance
or operating lease. Whenever
the terms of the lease transfer
substantially all the risks and
rewards of ownership to the lessee,
the contract is classified as a finance
lease. All other leases are classified
as operating leases. For operating
leases, rental income is recognized
on a straight-line basis over the
term of the relevant lease.

(B) As Lessee

The Company’s lease asset classes
primarily consist of leases for
buildings. The Company assesses
whether a contract contains a lease
at the inception of a contract. A
contract is, or contains, a lease if
the contract conveys the right to
control the use of an identified asset
for a period of time in exchange for
consideration. To assess whether
a contract conveys the right to
control the use of an identified
asset, the Company assesses
whether: (i) the contract involves
the use of an identified asset (ii) the
Company has substantially all of
the economic benefits from use of
the asset through the period of the
lease and (iii) the Company has the
right to direct the use of the asset.

At the date of commencement of
the lease, the Company recognizes

a right-of-use (ROU) asset and a
corresponding lease liability for all
lease arrangements in which it is
a lessee, except for leases with a
term of 12 months or less (short¬
term leases) and low-value leases.
For these short-term and low- value
leases, the Company recognizes
the lease payments as an operating
expense on a straight-line basis
over the term of the lease. Certain
lease arrangements include the
options to extend or terminate
the lease before the end of the
lease term. ROU assets and lease
liabilities include these options
when it is reasonably certain that
they will be exercised. ROU assets
are initially recognized at cost,
which comprises the initial amount
of the lease liability adjusted for any
lease payments made at or prior
to the commencement date of the
lease plus any initial direct costs
less any lease incentives. They are
subsequently measured at cost
less accumulated depreciation
and impairment losses. ROU
assets are depreciated from the
commencement date on a straight¬
line basis over the shorter of the
lease term and useful life of the
underlying asset. The lease liability
is initially measured at amortized
cost at the present value of the
future lease payments. The lease
payments are discounted using the
interest rate implicit in the lease or,
if not readily determinable, using
the incremental borrowing rates.

(XVII) Impairment of Non-Financial Assets

The carrying amounts of the Company’s
non-financial assets are reviewed at
each reporting date to determine
whether there is any indication of
impairment considering the provisions
of Ind AS 36 ‘Impairment of Assets’. If any
such indication exists, then the asset’s
recoverable amount is estimated.

The recoverable amount of an asset or
cash-generating unit is the higher of its

fair value less costs to disposal and its
value in use. 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.
For the purpose of impairment testing,
assets that cannot be tested individually
are grouped together into the smallest
group of assets that generates cash
inflows from continuing use that are
largely independent of the cash inflows
of other assets or groups of assets (the
"cash-generating unit”, or “CGU”).

An impairment loss is recognized if
the carrying amount of an asset or its
CGU exceeds its estimated recoverable
amount. Impairment losses are
recognized in the statement of profit or
loss and are reduced from the carrying
amounts of the assets of the CGU.

Impairment losses recognized in prior
periods are assessed at each reporting
date for any indications that the loss
has decreased or no longer exists. An
impairment loss is reversed if there has
been a change in the estimates used to
determine the recoverable amount. An
impairment loss is reversed only to the
extent that the asset’s carrying amount
does not exceed the carrying amount
that would have been determined, net
of depreciation or amortization, if no
impairment loss had been recognized.

(XVII) Dividends

Dividends and interim dividends
payable to a Company’s shareholders
are recognized as changes in equity in
the period in which they are approved
by the shareholders’ meeting and the
Board of Directors respectively.

(XIX) Earnings per Share

Basic earnings per equity share is
computed by dividing the net profit or
loss attributable to equity shareholders
of the Company by the weighted
average number of equity shares
outstanding during the financial year.

Diluted earnings per equity share is
computed by dividing the net profit or
loss attributable to equity shareholders
of the Company by the weighted average
number of equity shares considered for
deriving basic earnings per equity share
and also the weighted average number
of equity shares that could have been
issued upon conversion of all dilutive
potential equity shares.

(XX) Statement of Cash Flows

Cash flow statement is prepared in
accordance with the indirect method
prescribed in Ind AS 7 ‘Statement of
Cash Flows’ for operating activities.

(XXI) Financial Instruments

Financial assets and financial liabilities
are recognized when the Company
becomes a party to the contractual
provisions of the instruments.

Financial assets and financial liabilities
are initially measured at fair value.

Transaction costs that are directly
attributable to the acquisition or issue
of financial assets and financial liabilities
(other than financial assets and financial
liabilities at fair value through profit or
loss (“FVTPL”)) are added to or deducted
from the fair value of the financial assets
or financial liabilities, as appropriate, on
initial recognition.

Transaction costs directly attributable
to the acquisition of financial assets or
financial liabilities at fair value through
profit or loss are recognized immediately
in statement of profit and loss.

(A) Financial Assets

On initial recognition, a financial
asset is recognized at fair value.
All recognized financial assets are
subsequently measured in their
entirety at either amortized cost
or fair value through profit or loss
(FVTPL) or fair value through other
comprehensive income (FVOCI)
depending on the classification of
the financial assets.

Financial assets are not reclassified
subsequent to their recognition,
except if and in the period the
Company changes its business
model for managing financial
assets.

Trade Receivables and Loans:

Trade receivables are initially
recognized at fair value.
Subsequently, these assets are held
at amortized cost, using the effective
interest rate (EIR) method net of any
expected credit losses. The EIR is the
rate that discounts estimated future
cash income through the expected
life of financial instrument.

Derecognition

The Company derecognises a
financial asset when the contractual
rights to the cash flows from the
financial asset expire, or it transfers
the contractual rights to receive the
cash flows from the asset.

Impairment of Financial Assets

Expected credit losses are
recognized for all financial assets
subsequent to initial recognition
other than financials assets in
FVTPL category.

ECL is the weighted-average of
difference between all contractual
cash flows that are due to the
Company in accordance with the
contract and all the cash flows that
the Company expects to receive,
discounted at the original effective
interest rate, with the respective
risks of default occurring as the
weights. When estimating the cash
flows, the Company is required to
consider:

a) All contractual terms of the
financial assets (including
prepayment and extension) over
the expected life of the assets.
b) Cash flows from the sale of
collateral held or other credit
enhancements that are integral

to the contractual terms.
In respect of trade receivables,
the Company applies the
simplified approach of Ind
AS 109, which requires
measurement of loss allowance
at an amount equal to lifetime
expected credit losses. Lifetime
expected credit losses are the
expected credit losses that
result from all possible default
events over the expected life of
a financial instrument.

For financial assets other than
trade receivables, as per Ind AS
109, the Company recognises
12 month expected credit
losses for all originated or
acquired financial assets if at
the reporting date the credit
risk of the financial asset has not
increased significantly since its
initial recognition. The expected
credit losses are measured as
lifetime expected credit losses
if the credit risk on financial
asset increases significantly
since its initial recognition. The
Company assumes that the
credit risk on a financial asset
has not increased significantly
since initial recognition if the
financial asset is determined
to have low credit risk at the
balance sheet date.

(B) Financial Liabilities and

Equity Instruments

Classification as Equity

Equity instruments issued by
the Company are classified as
either financial liabilities or as
equity in accordance with the
substance of the contractual
arrangements and the

definitions of a financial liability
and an equity instrument.

Equity Instruments

"An equity instrument is any
contract that evidences a
residual interest in the assets of

an entity after deducting all of
its liabilities. Equity instruments
issued by the Company are
recognized at the proceeds
received, net of direct issue
costs.”

Repurchase of the Company’s
own equity instruments is
recognized and deducted
directly in equity. No gain or loss
is recognized in statement of
profit and loss on the purchase,
sale, issue or cancellation of
the Company’s own equity
instruments.

Financial Liabilities

Financial liabilities are
recognized when the
Company becomes a party
to the contractual provisions
of the instrument. Financial
liabilities are initially measured
at the amortised cost unless
at initial recognition, they are
classified as fair value through
profit or loss. In case of trade
payables, they are initially
recognized at fair value and
subsequently, these liabilities
are held at amortised cost,
using the effective interest
method. All financial liabilities
are subsequently measured
at amortized cost using the
effective interest method.

Financial liabilities carried at fair
value through profit or loss are
measured at fair value with all
changes in fair value recognized
in the Statement of Profit
and Loss. Interest expense
are included in the ‘Finance
costs’ line item. The effective
interest method is a method
of calculating the amortized
cost of a financial liability and
of allocating interest expense
over the relevant period.

The effective interest rate
is the rate that exactly
discounts estimated future
cash payments (including

all fees and points paid or
received that form an integral
part of the effective interest
rate, transaction costs and
other premiums or discounts)
through the expected life of
the financial liability, or (where
appropriate) a shorter period,
to the net carrying amount on
initial recognition.

Derecognition of Financial
Liabilities

The Company derecognises
financial liabilities when, and
only when, the Company’s
obligations are discharged,
cancelled or have expired.

Derivative Financial
Instruments

The Company does not currently
enter into or hold any derivative
financial instruments, such as
forward contracts, interest rate
swaps, currency derivatives,
or commodity derivatives.
Accordingly, the Company is not
exposed to risks arising from
such derivative transactions
and has not recognized any
derivative financial assets
or financial liabilities in its
financial statements during the
reporting period.

(XXII) Segment Reporting

The Company has reassessed its
operating segment reporting framework
in accordance with the requirements
of Ind AS 108 - "Operating Segments”,
based on the manner in which business
operations are reviewed by the Chief
Operating Decision Maker ("CODM”) for
the purposes of performance evaluation
and resource allocation.

During the current financial year,
considering the scale and nature of
operations of various business verticals
and the applicability of the quantitative
thresholds prescribed under Ind AS 108,
the Company has identified separate
reportable segments as following: -

(a) Manufacturing and Trading of
Electrical Transformer, CRGO, and
other electrical items and

(b) Engineering, Procurement and
Construction business (EPC)

Accordingly, segment information
has been disclosed in these financial
statements in line with the internal
management reporting framework
reviewed by the CODM. Previous
year figures have been regrouped /
reclassified, wherever necessary, to
conform to the current year presentation.

(XXIII) Operating Cycle

Based on the nature of products/
activities of the Company and the
normal time between acquisition of
assets and their realisation in cash or
cash equivalents, the Company has
determined its operating cycle as 12
months for the purpose of classification
of its assets and liabilities as current and
non-current.

(XXIV) Major Estimates made in preparing
Financial Statements

(A) Useful life of Property, Plant and
Equipment and Intangible Assets

The estimated useful life of property,
plant and equipment is based on
a number of factors including the
effects of obsolescence, demand,
competition and other economic
factors (such as the stability of the
industry and known technological
advances) and the level of
maintenance expenditures required
to obtain the expected future cash
flows from the asset.

Useful life of the assets other
than Plant and machinery are in
accordance with Schedule II of the
Companies Act, 2013.

The Company reviews at the end of
each reporting date the useful life

of property, plant and equipment,
and are adjusted prospectively,
if appropriate. Intangible assets
are amortised over a period of
estimated useful life as determined
by the management.

(B) Post-Employment Benefit Plans

Employee benefit obligations are
measured on the basis of actuarial
assumptions which include
mortality and withdrawal rates as
well as assumptions concerning
future developments in discount
rates, the rate of salary increases
and the inflation rate. The Company
considers that the assumptions
used to measure its obligations
are appropriate and documented.
However, any changes in these
assumptions may have a material
impact on the resulting calculations.

(C) Provisions and Contingencies

The assessments undertaken
in recognizing provisions and
contingencies have been made
in accordance with Ind AS 37,
‘Provisions, Contingent Liabilities
and Contingent Assets’. The
evaluation of the likelihood of the
contingent events has required
best judgment by management
regarding the probability of
exposure to potential loss. Should
circumstances change following
unforeseeable developments, this
likelihood could alter.

(D) Allowance for Credit Losses on
Receivables

The Company determines the
allowance for credit losses based on
historical loss experience adjusted to
reflect current and estimated future
economic conditions. The Company
considered current and anticipated
future economic conditions relating
to industries the Company deals with
and the countries where it operates.
In calculating expected credit loss,
the Company has also considered
credit reports and other related
credit information for its customers

to estimate the probability of default
in future.

(E) Fair value of Financial Assets and
Liabilities and Investments

The Company measures certain
financial assets and liabilities on
fair value basis at each balance
sheet date or at the time they are
assessed for impairment. Fair value
measurement that are based on
significant unobservable inputs
(Level 3) requires estimates of
operating margin, discount rate,
future growth rate, terminal values,
etc. based on management’s
best estimate about future
developments.

Recent Accounting
Pronouncements

The Ministry of Corporate Affairs
(“MCA”) issues new standards
and amendments to existing
standards under the Companies
(Indian Accounting Standards)
Rules from time to time. The MCA
issued amendments to Ind AS 21 -
The Effects of Changes in Foreign
Exchange Rates, providing enhanced
guidance on assessing currency
exchangeability and determining the
appropriate exchange rate when a
currency is not readily exchangeable.
Further,

The MCA notified the Companies
(Indian Accounting Standards)
Second Amendment Rules, 2025,

introducing revisions to multiple

standards, including:

• Ind AS 1: Clarifications on the
classification of liabilities as
current or non-current, including
considerations relating to
covenant compliance and the
entity’s right to defer settlement
as at the reporting date.

• Ind AS 7 and Ind AS 107: Additional
disclosure requirements for
supplier finance arrangements
aimed at enhancing transparency
regarding their effect on liabilities
and cash flows.

• Ind AS 12: A temporary exception
from recognising deferred tax
assets and liabilities arising
from the OECD Pillar Two global
minimum tax rules, together with
related disclosure requirements.

• Ind AS 101: Transitional relief for
first-time adopters with respect to
lease classification.

*During the year, the Company has completed an Initial Public Offering ("IPO") of 71,30,124 equity shares with a face
value of Rs. 10 each at an issue price of Rs. 561 per share. The Company's equity shares were listed on the National
Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on August 28, 2025.

(B) RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO EQUITY SHARES

The Company has only one class of equity shares having a par value of ^ 10/- per share. Each shareholder
is entitled to one vote per equity share. The dividend, if any, proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim
dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive
remaining assets of the Company, after distribution of all preferential amounts. The distribution will be
in proportion to the number of equity shares held by the shareholder.

No member shall be entitled to exercise any voting rights either personally or by proxy at any meeting of
the company in respect of any shares registered in his name on which any calls or other sums presently
payable by him have not been paid or in regard to which the company has, and has exercised, any right
of lien.

DESCRIPTION OF THE NATURE AND PURPOSE OF OTHER EQUITY:

(i) Securities premium:

Securities Premium Reserve represents the amount received in excess of the face value of shares issued by the
company. The reserve is utilized only for the purposes permitted under the applicable provisions of the Companies
Act 2013.

(ii) Retained earnings:

Retained earnings comprises of accumulated balance of profits / (losses) of current and prior year. The reserve can
be utilized or distributed by the Company in accordance with the provisions of the Companies Act, 2013.

(iii) Other Comprehensive Income (OCI) Reserve:

This reserve comprises items of income and expense that are recognized directly in Other Comprehensive Income
and are not reclassified to the Statement of Profit and Loss, or are reclassified subsequently as required by applicable
accounting standards. Such items may include remeasurements of defined benefit plans and changes in the fair
value of certain financial instruments.

32 DISCLOSURES AS PER AMENDMENTS IN SCHEDULE III OF COMPANIES ACT,2013 WITH
NOTIFICATION ISSUED ON 24TH MARCH 2021:

Information required against additional disclosures as per amendments in Schedule III of Companies
Act, 2013 are as under:-

a. Title deeds of Immovable Property not held in name of the Company (Para a(ii)(XIII)(Y)(i))-

There are no immovable properties owned by the company whose title deeds are not held in its
name.

b. Revaluation of Property, Plant & Equipment (Para a(ii)(XIII)(Y)(ii)) -

During the year under review the company has not revalued its property, plant & equipment
(including right of use assets).

c. Loan & Advance made to promoters, directors, KMPs and other related parties (Para a(ii)(XMI)
(Y)(iii))-

The Company has not provided any loan to the parties.

d. Intangible Assets under development (Para a(ii)(XIII)(Y)(v))-

There is an intangible assets under development at the year end with the company under
implementation phase. Intangible Assets that are in implementation phase and the expenses
incurred for the same are initially recognised as intangible assets under development until the
implementation phase is complete, upon which the amount is capitalised as intangible asset.

e. Details of Benami property held (Para a(ii)(XIII)(Y)(vi))-

No proceeding has been initiated or pending against the company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

f. Wilful Defaulter (Para a(ii)(XIII)(Y)(viii))-

The company has not been declared as wilful defaulter by any bank or financial institutions or other
lenders.

g. Relationship with struck of Companies (Para a(ii)(XIII)(Y)(ix))-

There are no transactions (including Investment in Securities / Shares held by Struck off company
& Other Outstanding balances) with companies struck off u/s 248 of the Companies Act 2013, or
section 560 of the Companies At, 1956. The above information is provided on basis of reasonable
diligence done to ascertain relevant companies that have been struck off on the website of the
Ministry of Company Affairs.

h. Registration of charges and satisfaction with Registrar of Companies (Para a(ii)(XIII)(Y)(x))-

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

i. Compliance with number of layers of companies (Para a(ii)(XIII)(Y)(xi)) -

The company has not made violation of requirements related to number of layers of companies
as prescribed under clause 87 of Section 2 read with Companies (Restriction of number of Layers)
Rules 2017.

j. Compliance with approved Scheme(s) of Arrangements (Para a(ii)(XIII)(Y)(xiii)) - Not Applicable

k. Utilization of Borrowed funds and share premium (Para a(ii)(XIII)(Y)(xiv)) -

No funds have been advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the Company to or in any other persons(s) or entity(ies),
including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the
Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s)
(Funding Party) with the understanding that the Company shall whether, directly or indirectly
lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

l. Undisclosed Income (Para a(iii)(ix))-

Company has not surrendered or disclosed any transaction which was not recorded in the books of
accounts as income during the year in the tax assessment under the Income Tax Act.

m. Details of Crypto Currency or Virtual Currency (Para a(iii)(xi))-

The company has not traded or invested in Crypto Currency or Virtual Currency during the financial
year.

33 DISCLOSURE AS PER IND AS 19 - EMPLOYEE BENEFITS

a) Defined Contribution plan

The Company makes provident fund and Employee State Insurance (ESI) contributions to defined
contribution plans for qualifying employees. Under the Schemes, the Company is required
to contribute a specified percentage of the payroll costs to fund the benefits. The Company
recognised in the year ended on March 31, 2026 Rs.128.83 Lakhs (March 31, 2025: Rs.101.44
Lakhs) for provident fund and ESI contributions in the Statement of Profit and Loss (Refer Note 27).
The contributions payable to these plans by the Company are at rates specified in the rules of the
Schemes.

b) Defined benefit plan

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount
of gratuity payable on retirement/termination is the employees last drawn basic salary per month
computed proportionately for 15 days salary multiplied for the number of years of service.

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As

such company is exposed to various risks as follow :

a) Changes in Discount rate - Reduction in discount rate in subsequent valuations can increase the
plan’s liability.

b) Salary increase risk - Actual salary increases will increase the Plan’s liability. Increase in salary
increase rate assumption in future valuations will also increase the liability.

c) Life expectancy - Actual deaths & disability cases proving lower or higher than assumed in the
valuation can impact the liabilities.

d) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change
of withdrawal rates at subsequent valuations can impact Plan’s liability.

C. Capital Commitments

The estimated amount of contracts remaining to be executed on Capital Account and not provided is
Rs. 801.35 Lakhs.

35 DISCLOSURE AS PER IND AS 108 - OPERATING SEGMENTS

The Company has reassessed its operating segment reporting framework in accordance with the
requirements of Ind AS 108 - "Operating Segments”, based on the manner in which business operations
are reviewed by the Chief Operating Decision Maker ("CODM”) for the purposes of performance
evaluation and resource allocation.

During the current financial year, considering the scale and nature of operations of various business
verticals and the applicability of the quantitative thresholds prescribed under Ind AS 108, the Company
has identified separate reportable segments as following: -

(a) Manufacturing and Trading of Electrical Transformer, CRGO, and other electrical items and

(b) Engineering, Procurement and Construction business (EPC)

Accordingly, segment information has been disclosed in these financial statements in line with the
internal management reporting framework reviewed by the CODM. Previous year figures have been
regrouped / reclassified, wherever necessary, to conform to the current year presentation.

ion

The Ministry of Corporate Affairs has notified Section 135 of the Companies Act, 2013 on Corporate
Social Responsibility with effect from April 01, 2014. As per the provision of the said section, the
Company has incurred an expenditure towards CSR activities, amounting to Rs. 92.46 Lakhs during the
year ended March 31, 2026 (Previous Year Rs. 47.38 Lakhs). In addition to the above, an amount of 9.42
Lakhs (Previous Year Rs. 6.48 Lakhs) has been recorded as an additional spent during the current year,
which is recognised as an asset; to be utilized in the subsequent years.

39 IPO FUND UTILIZATION

During the year ended 31st March 2026, the company has completed its Initial Public Offer (“IPO”)
of 71,30,124 Equity Shares at the face value of 10/- each at an issue price of 561/- per Equity Share
(including securities premium of 551 per share). The issue comprised of fresh issue of equity share
aggregating to 40,000.00 Lakhs. The Equity Shares of the Company were listed on BSE Limited (“BSE”)
and National Stock Exchange of India limited (“NSE”) on 28th August, 2025 The total offer expenses in
relation to the issue are 2403.26 Lakhs (including taxes ). The details of the proceeds from the Issue are
summarized as below

41 CAPITAL MANAGEMENT

For the purpose of Company's Capital Management, Capital includes issued equity share capital &
Borrowings. The primary objective of Company's Capital Management is to maximize shareholder's value
and to maintain an appropriate capital structure of debt and equity. The company manages its capital
structure and makes adjustments in the light of changes in economic environment and the requirements
of financial covenants. The company manages it's capital using Total Debt to Equity Ratio. Total Debt is total
borrowing (Non-current and current).

42 DISCLOSURE AS PER IND AS 113 - FAIR VALUE MEASUREMENTS

The fair values of the financial assets and liabilities are included at the amount at which the instrument could
be exchanged in an orderly transaction in the principal (or most advantageous) market at measurement
date under the current market condition regardless of whether that price is directly observable or estimated
using other valuation techniques.

The Company has established the following fair value hierarchy that categorizes the values into 3 levels.
The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1- Level 1 hierarchy includes financial instruments measured using quoted prices. This Includes
listed equity instruments/mutual funds that have quoted price. Listed and actively traded securities are
stated at the last quoted closing price on the National Stock Exchange of India Limited (NSE).

Level 2- The fair value of financial instruments that are not traded in active market is determined using
valuation techniques which maximize the use of observable market data and rely as little as possible on
entity specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.

Level 3- If one or more of the significant inputs is not based on observable market data, the instrument
is included in level 3. The fair value of the financial assets and liabilities included in Level 3 is determined
in accordance with generally accepted pricing models based on discounted cash flow analysis using
prices from observable current market transactions and dealer quotes of similar instruments.

The Company maintains policies and procedures to value financial assets or financial liabilities using the
best and most relevant data available. The fair values of the financial assets and liabilities are included at
the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The following methods and assumptions were
used to estimate the fair values:

1) Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets
and liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.

2) Long-term variable-rate borrowings are evaluated by the Company based on parameters such as
interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of
variable interest rate borrowings approximates their carrying values. Risk of other factors for the
company is considered to be insignificant in valuation.

43 DISCLOSURE AS PER IND AS 107 - FINANCIAL INSTRUMENTS
Financial risk management policy and objectives

The key objective of the Company’s financial risk management is to ensure that it maintains a stable
capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and
to ensure future development of its business. The Company is focused on maintaining a strong equity
base to ensure independence, security, as well as financial flexibility for potential future borrowings, if
required without impacting the risk profile of the Company.

Company’s principal financial liabilities, comprise Borrowings from Banks, trade and other payables.
The main purpose of these financial liabilities is to finance Company's operations and plant expansion.
Company’s principal financial assets include investments, trade and other receivables, deposits with
banks and cash and cash equivalents, that derive directly from its operations
Company is exposed to market risk, credit risk and liquidity risk.

The Company’s Board oversees the management of these risks. The Company’s Board is supported by
senior management team that advises on financial risks and the appropriate financial risk governance
framework for the Company. The senior management provides assurance to the Company’s Board that
the Company’s financial risk activities are governed by appropriate policies and procedures and that
financial risks are identified, measured and managed in accordance with the Company’s policies and
risk objectives.

The Board of Directors reviews and agrees policies for managing each of these risks, which are
summarised below:

(i) 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 price risk. Financial instruments affected by market risk include investments in
equity shares, security deposits, trade and other receivables, deposits with banks and financial
liabilities.

The sensitivity analysis in the following sections relate to the position as at 31st March 2026
and 31st March 2025. The sensitivity of the relevant income statement item is the effect of the
assumed changes in respective market risks.

a) Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument
will fluctuate because of changes in foreign exchange rate. The company is exposed to foreign
exchange risk arising from foreign currency transactions primarily to USD. Company do not enter
into any derivative instrument in order to hedge its foreign currency risks.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change by 5% in USD
exchange rates, with all other variables held constant

Commodity risk is defined as the possibility of financial loss as a result of fluctuation in price of Raw
Material/Finished Goods and change in demand of the product and market in which the company
operates. The Company is exposed to the movement in price of key raw materials in domestic and
international markets. The Company has in place policies to manage exposure to fluctuations in the
prices of the key raw materials used in operations. The company forecast annual business plan and
execute on monthly business plan. Raw material procurement is aligned to its monthly/annual business
plan and inventory position is monitored in accordance with future price trend.

(i) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss.
The Company is exposed to credit risk mainly from its operating activities (primarily trade receivables)
and from its financing activities, including deposits with banks.

Credit risk on trade receivables is managed by the Company through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of customers to which the Company grants
credit terms in the normal course of business. The Company has no concentration of risk as customer
base in widely distributed both economically and geographically.

An impairment analysis is performed at each reporting date on an individual basis for major clients.
In addition, a large number of minor receivables are grouped into homogenous groups and assessed
for impairment collectively. The calculation is based on exchange losses historical data. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The
Company does not hold collateral as security. The Company uses expected credit loss model to assess
the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss
allowance for trade receivables. The provision matrix takes into account available external and internal
credit risk factors such as financial condition, ageing of outstanding and the Company's historical
experience for customers.

(a) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Compai
department in accordance with Company’s policy. Investments of surplus funds are mac
approved counterparties and within credit limits assigned to each counterparty. Compa
rating, credit spreads and financial strength of its counter parties. Company monitors ra
spread and financial strength of its counter parties. Based on ongoing assessment Compa
exposure to various counterparties. Company's maximum exposure to credit risk for the cor
balance sheet is the carrying amount as disclosed in Note 38.

Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow
obligations without incurring unacceptable losses. Company's objective is to, at all time maintain
optimum levels of liquidity to meet its cash requirements. Company closely monitors its liquidity position
and deploys a robust cash management system. It maintains adequate sources of financing including
overdraft, debt from banks at optimised cost and cash flow from operations.

NOTE-45

Previous year’s figures have been regrouped, rearranged and reclassified, wherever considered necessary,
and are rounded off to nearest Lakhs, in order to conform to the current period’s presentation.

NOTE-46

The Government of India has enacted the following labour codes, which subsume and replace multiple
existing labour laws: Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020,
Occupational Safety, Health and Working Conditions Code, 2020. The implementation of the labour codes
is subject to issuance of the relevant rules and notifications by the Central and State Governments. The
Company has undertaken an assessment of the potential impact of these labour codes on its financial
statements, including employee benefits, social security contributions and related compliances. Based on
the assessment carried out and considering the current status of implementation, the Company does not
expect a material impact on its financial information at the time of adoption. The Company will continue to
monitor developments in this regard and will appropriately evaluate and account for the impact, if any, in the
period in which the labour codes become effective.