N. Provisions and Contingent Liabilities
Provisions

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation. The expense relating to a
provision is presented in the statement of profit and loss.

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

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.

Warranties

The estimated liability for product warranties is recorded
when products are sold / project is completed. These
estimates are established using historical information on
the nature, frequency and average cost of warranty claims,
management estimates for possible future incidence
based on corrective actions on product failures. The
timing of outflows will vary as and when warranty claims
arise being typically up to five years.

Contingent Liabilities

Contingent liabilities exist 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
or the amount cannot be reliably estimated. Contingent
liabilities are appropriately disclosed unless the possibility
of an outflow of resources embodying economic benefits
is remote.

Environment Liabilities

E-Waste (Management) Rules 2022, as amended, requires
the Company to complete the Extended Producer
Responsibility targets (EPR) measured based on sales
made in the preceding 10th year. Accordingly, the
obligation event for E-Waste obligation arises only if
Company participate in the markets in such years and
based on Company participation in market in such year,
liability for E-Waste obligation is recognised.

O. Financial Instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

Financial Assets

• Initial Recognition and Measurement

Financial assets are classified, at initial recognition,
and subsequently measured at amortised cost, fair

value through other comprehensive income (OCI),
and fair value through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset's
contractual cash flow characteristics and the
Company's business model for managing them. With
the exception of trade receivables that do not contain
a significant financing component or for which the
Company has applied the practical expedient, the
Company initially measures a financial asset at its
fair value plus, in the case of a financial asset not at
fair value through profit or loss, transaction costs.
Trade receivables that do not contain a significant
financing component or for which the Company
has applied the practical expedient are measured
at the transaction price determined under Ind AS
115. Refer to the accounting policies in section B
'Revenue'.

In order for a financial asset to be classified and
measured at amortised cost or fair value through
other comprehensive income, it needs to give rise to
cash flows that are 'solely payments of principal and
interest (SPPI)' on the principal amount outstanding.
This assessment is referred to as the SPPI test and
is performed at an instrument level. Financial assets
with cash flows that are not SPPI are classified
and measured at fair value through profit or loss,
irrespective of the business model.

The Company's business model for managing financial
assets refers to how it manages its financial assets in order
to generate cash flows. The business model determines
whether cash flows will result from collecting contractual
cash flows, selling the financial assets, or both. Financial
assets classified and measured at amortised cost are
held within a business model with the objective to hold
financial assets in order to collect contractual cash flows
while financial assets classified and measured at fair value
through other comprehensive income are held within
a business model with the objective of both holding to
collect contractual cash flows and selling the financial
assets.

• Subsequent Measurement

For purposes of subsequent measurement, financial
assets are classified in four categories:

• Financial assets at amortised cost (debt
instruments)

• Financial assets at fair value through other
comprehensive income (FVTOCI) with
recycling of cumulative gains and losses (debt
instruments)

• Financial assets designated at fair value
through other comprehensive income with no
recycling of cumulative gains and losses upon
derecognition (equity instruments)

• Financial assets at fair value through profit or
loss (FVTPL)

• Financial Assets at Amortised Cost (Debt
Instruments)

A 'financial asset' is measured at the amortised cost if
both the following conditions are met:

(a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

(b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

This category is the most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
Effective Interest Rate (EIR) method and are subject to
impairment as per the accounting policy applicable
to 'Impairment of financial assets.' Amortised cost is
calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is
included in other income in the profit or loss. The
losses arising from impairment are recognised in the
statement of profit and loss. The Company's financial
assets at amortised cost includes trade receivables,
loans and other financial assets.

• Financial Assets at Fair Value Through Other
Comprehensive Income (FVTOCI) (Debt
Instruments)

A 'financial asset' is classified as FVTOCI if both of the
following criteria are met:

(a) The objective of the business model is
achieved both by collecting contractual cash
flows and selling the financial assets, and

(b) The asset's contractual cash flows represent
SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. For debt instruments,
at fair value through other comprehensive income,
interest income, foreign exchange revaluation and
impairment losses or reversals are recognised in the
statement of profit and loss and computed in the
same manner as for financial assets measured at
amortised cost. The remaining fair value changes are
recognised in other comprehensive income. Upon
derecognition, the cumulative fair value changes
recognised in other comprehensive income is
reclassified from the equity to profit or loss.

• Financial Assets at Fair Value Through Other
Comprehensive Income (FVTOCI) (Equity
Instruments)

Upon initial recognition, the Company can elect
to classify irrevocably its equity investments as
equity instruments designated at fair value through
other comprehensive income when they meet
the definition of equity under Ind AS 32 'Financial
Instruments: Presentation' for the issuer and are not
held for trading. The classification is determined
on an instrument-by-instrument basis. Equity
investment which are held for trading are classified
as at FVTPL.

Gains and losses on these financial assets are never
recycled to profit or loss. Dividends are recognised
as other income in the statement of profit and loss
when the right of payment has been established,
except when the Company benefits from such

proceeds as a recovery of part of the cost of
the financial asset, in which case, such gains are
recorded in other comprehensive income. Equity
instruments designated at fair value through
other comprehensive income are not subject to
impairment assessment.

The Company elected to classify irrevocably its
listed and non-listed equity investments under this
category.

• Financial Assets at Fair Value Through Profit Or
Loss (FVTPL)

Financial assets in this category are those that are
held for trading and have been either designated
by management upon initial recognition or are
mandatorily required to be measured at fair value
under Ind AS 109, 'Financial Instruments' i.e. they do
not meet the criteria for classification as measured
at amortised cost or FVTOCI. Management only
designates an instrument at FVTPL upon initial
recognition, if the designation eliminates, or
significantly reduces, the inconsistent treatment
that would otherwise arise from measuring the
assets or liabilities or recognising gains or losses
on them on a different basis. Such designation is
determined on an instrument-by-instrument basis.
For the Company, this category includes derivative
instruments, certain investments in bonds and
investment in mutual funds.

Financial assets at fair value through profit or loss
are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of
profit and loss.

• Investments in Subsidiaries, Joint Ventures and
Associates

A subsidiary is an entity that is controlled by another
entity.

An associate is an entity over which the Company
has significant influence. Significant influence is the
power to participate in the financial and operating
policy decisions of the investee but is not control or
joint control over those policies.

A joint venture is a type of joint arrangement
whereby the parties that have joint control of the
arrangement have rights to the net assets of the joint
venture. Joint control is the contractually agreed
sharing of control of an arrangement, which exists
only when decisions about the relevant activities
require unanimous consent of the parties sharing
control.

Investment in subsidiaries, joint ventures and
associates are carried at cost less impairment in the
financial statements.

• Derecognition

A financial asset (or, where applicable, a part of
a financial asset or part of a company of similar
financial assets) is primarily derecognised (i.e
removed from the Company's balance sheet) when:

• The rights to receive cash flows from the asset
have expired or

• The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay
to a third party under a 'pass-through'
arrangement; and either (a) the Company
has transferred substantially all the risks and
rewards of the asset, or (b) the Company has
neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates
if and to what extent it has retained the risks
and rewards of ownership. When it has neither
transferred nor retained substantially all of the
risks and rewards of the asset, nor transferred
control of the asset, the Company continues
to recognise the transferred asset to the extent
of the Company's continuing involvement.
In that case, the Company also recognises an
associated liability. The transferred asset and
the associated liability are measured on a basis
that reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form
of a guarantee over the transferred asset is
measured at the lower of the original carrying
amount of the asset and the maximum
amount of consideration that the Company
could be required to repay.

• Impairment of Financial Assets

The Company recognises an allowance for expected
credit losses (ECLs) for all debt instruments not held
at fair value through profit or loss. ECLs are based
on the difference between the contractual cash
flows due in accordance with the contract and all
the cash flows that the Company expects to receive,
discounted at an approximation of the original
effective interest rate.

For all financial assets other than trade receivables,
expected credit losses are measured at an amount
equal to the 12-month expected credit loss (ECL)
unless there has been a significant increase in credit
risk from initial recognition in which case those
are measured at lifetime ECL. For trade receivables
and contract assets, the Company applies a
simplified approach in calculating ECLs. Therefore,
the Company does not track changes in credit risk,
but instead recognises a loss allowance based on
lifetime ECLs at each reporting date. The Company
has established a provision matrix that is based
on its historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and
the economic environment.

Financial Liabilities

• Initial recognition, measurement and presentation

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs.

The Company's financial liabilities include trade
payables, loans and borrowings including bank
overdrafts, other financial liabilities, financial
guarantee contracts and derivative financial
instruments.

• Subsequent Measurement

For purposes of subsequent measurement, financial
liabilities are classified in two categories:

• Financial liabilities at fair value through profit
or loss

• Financial liabilities at amortised cost (loans and
borrowings)

• Financial Liabilities at Fair Value Through Profit or
Loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in
the near term. This category also includes derivative
financial instruments entered into by the Company
that are not designated as hedging instruments in
hedge relationships as defined by Ind AS 109. Gains
or losses on liabilities held for trading are recognised
in the profit or loss.

Financial liabilities are designated upon initial
recognition as at fair value through profit or loss only
if the criteria in Ind AS 109 'Financial Instruments'
are satisfied. For liabilities designated as FVTPL, fair
value gains / losses attributable to changes in own
credit risk are recognized in other comprehensive
income. These gains / losses are not subsequently
transferred to P&L. However, the Company may
transfer the cumulative gain or loss within equity.
All other changes in fair value of such liability are
recognised in the statement of profit and loss.

• Financial Liabilities at Amortised Cost

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in the statement of profit and
loss when the liabilities are derecognised as well as
through the EIR amortisation process.

Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the
statement of profit and loss.

• Financial Guarantee Contracts

Financial guarantee contracts issued by the
Company are those contracts that require a payment
to be made to reimburse the holder for a loss it
incurs because the specified debtor fails to make a
payment when due in accordance with the terms of
a debt instrument. Financial guarantee contracts are
recognised initially as a liability at fair value, adjusted
for transaction costs that are directly attributable to
the issuance of the guarantee.

Subsequently, the liability is measured at the
higher of the amount of loss allowance determined
as per impairment requirements of Ind AS 109
'Financial Instruments' and the amount recognised
less cumulative amount of income recognised
in accordance with the principles of Ind AS 115
'Revenue from Contracts with Customers'.

• Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expired. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the terms
of an existing liability are substantially modified,

such an exchange or modification is treated as
the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
statement of profit and loss.

• Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and
the net amount is reported in the Balance Sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

P. Derivative Financial Instruments:

The Company uses derivative financial instruments,
such as forward currency contracts to hedge its foreign
currency risks. Such derivative financial instruments are
initially recognised at fair value on the date on which a
derivative contract is entered into and are subsequently
re-measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as
financial liabilities when the fair value is negative. Any
gains or losses arising from changes in the fair value of
derivatives are taken directly to profit or loss.

Q. 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.
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 groups
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.

I n 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.

I mpairment losses including impairment on inventories
are recognised in the statement of profit and loss.
For assets, 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.

For contract assets, the Company has applied the
simplified approach for recognition of impairment

allowance as provided in Ind AS 109 'Financial Instruments'
which requires the expected lifetime losses from initial
recognition of the contract assets. Refer to accounting
policies on impairment of financial assets in section O
'Financial Instruments'.

R. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an original maturity of three months or less, that are
readily convertible to a known amount of cash and which
are subject to an insignificant risk of changes in value.

S. Earnings Per Share (EPS)

Basic EPS is calculated by dividing the profit or loss
attributable to equity shareholders of the Company by the
weighted average number of equity shares outstanding
during the period. Diluted EPS is determined by adjusting
the profit or loss attributable to equity shareholders
and the weighted average number of equity shares
outstanding for the effects of all dilutive potential equity
shares.

T. Segment Reporting

Segments are identified based on the manner in which
the Chief Operating Decision-Maker (CODM) decides
about the resource allocation and reviews performance.

Segment revenue, segment expenses, segment assets
and segment liabilities have been identified to segments
on the basis of their relationship to the operating activities
of the segment.

Inter-segment revenue is accounted on the basis of
transactions which are primarily determined based on
market / fair value factors. Revenue, expenses, assets and
liabilities which relate to the Company as a whole and are
not allocable to segments on reasonable basis have been
included under "unallocated revenue / expenses / assets/
liabilities".

Segment information has been presented in the
Consolidated Financial Statements as permitted by Ind AS
108 'Operating Segments.

U. Dividend

The Company recognises a liability to pay dividend to
equity shareholders when the distribution is authorised
and the distribution 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.

V. Government Grants

Government grants are recognised where there is
reasonable assurance that the grant will be received,
and all attached conditions will be complied with. When
the grant relates to an expense item, it is recognised as
income on a systematic basis over the periods that the
related costs, for which it is intended to compensate,
are expensed. When the grant relates to an asset, it is
recognised as income in equal amounts over the expected
useful life of the related asset.

When the Company receives grants of non-monetary
assets, the asset and the grant are recorded at fair value
amounts and released to profit or loss over the expected
useful life in a pattern of consumption of the benefit of
the underlying asset i.e. by equal annual instalments.

W. Events after the Reporting Period

I f the Company receives information after the reporting
period, but prior to the date of approval for issue, about
conditions that existed at the end of the reporting period,
it will assess whether the information affects the amounts
that it recognises in its separate financial statements.
The Company will adjust the amounts recognised in its
financial statements to reflect any adjusting events after
the reporting period and update the disclosures that
relate to those conditions in light of the new information.
For non-adjusting events after the reporting period, the
Company will not change the amounts recognised in its
separate financial statements but will disclose the nature
of the non-adjusting event and an estimate of its financial
effect, or a statement that such an estimate cannot be
made, if applicable.

X. Operating Cycle

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash and
cash equivalents. A portion of the Company's activities
(primarily long-term project activities) have an operating
cycle that exceeds one year. Accordingly, assets and
liabilities related to these long-term contracts, which will
not be realised/paid within one year, have been classified
as current. For all other activities, the operating cycle is
twelve months.

Y. Current versus Non-Current Classification

The Company segregates assets and liabilities into
current and non-current categories for presentation in
the balance sheet after considering its normal operating
cycle and other criteria set out in Ind AS 1 'Presentation
of Financial Statements. For this purpose, current assets
and liabilities include the current portion of non-current
assets and liabilities respectively. Deferred tax assets and
liabilities are always classified as non-current.

2A. RECENT ACCOUNTING PRONOUNCEMENTS ISSUED
BUT NOT YET EFFECTIVE

The new and amended standards that are notified by the
Ministry of Corporate Affairs (MCA), but not yet effective,
up to the date of issuance of the Company's financial
statements are disclosed below. The Company will adopt
these amendments to the standards, when they become
effective.

Amendments to Ind AS 1 - Classification of Liabilities
as Current or Non-current and Non-current
Liabilities with Covenants:

I n accordance with changes to Ind AS 1 as notified by
the MCA breach of an immaterial covenant will trigger
classification of non-current liability as current. The
Company does not expect any material impact of the
amendments on its financial statements.

3. SIGNIFICANT ACCOUNTING, JUDGEMENTS
ESTIMATES AND ASSUMPTIONS

The preparation of the Company's Standalone financial
statements requires management to make judgements,
estimates and assumptions that affect the reported

amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of
assets or liabilities affected in future periods.

Estimates and Assumptions:

The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the
next financial year, are described below. The Company
based its assumptions and estimates on parameters
available when the financial statements were prepared.
Existing circumstances and assumptions about future
developments, however, may change due to market
changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected in the
assumptions when they occur.

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

Cost to Complete on Construction Contracts

Management estimates the costs to complete for each
project for the purpose of revenue recognition and
recognition of anticipated losses on projects, if any. In the
process of calculating the cost to complete, Management
conducts regular and systematic reviews of actual results
and future projections with comparison against budget.
This process requires monitoring controls including
financial and operational controls and identifying
major risks facing the Company and developing and
implementing initiatives to manage those risks. The
Company's Management is confident that the costs to
complete the project are fairly estimated.

Percentage of Completion on Construction
Contracts

Management's estimate of the percentage of completion
on each project for the purpose of revenue recognition is
through conducting some weight analysis to assess the
actual quantity of the work for each activity performed
during the reporting period and estimate any future
costs for comparison against the initial project budget.
This process requires monitoring of financial and
operational controls. Management is of the opinion that
the percentage of completion of the projects is fairly
estimated.

As required by Ind AS 115, in applying the percentage
of completion on its long-term projects, the Company
is required to recognise any anticipated losses on it
contracts.

Impairment of Financial Assets and Contract Assets

The Company's Management reviews periodically items
classified as receivables and contract assets to assess
whether a provision for impairment should be recorded
in the statement of profit and loss. Management
estimates the amount and timing of future cash flows
when determining the level of provisions required. Such
estimates are necessarily based on assumptions about
several factors involving varying degrees of judgement
and uncertainty. Details of impairment provision on
contract assets and trade receivable are given in Note 14
and Note 15.

The Company reviews its carrying value of investments
annually, or more frequently when there is indication for
impairment. If the recoverable amount is less than it's
carrying amount, the impairment loss is accounted for.

Fair Value Measurement of Financial Instruments

Some of the Company's assets are measured at fair
value for financial reporting purposes. The Management
determines the appropriate valuation techniques and
inputs for fair value measurements. In estimating the fair
value of an asset, the Company uses market-observable
data to the extent it is available. Where Level 1 inputs are
not available, the Company engages third party qualified
valuers to perform the valuation. The Management works
closely with the qualified external valuers to establish
the appropriate valuation techniques and inputs to the
model.

I nformation about valuation techniques and inputs used
in determining the fair value of various assets is disclosed
in Note 50 (B).

Litigations

From time to time, the Company is subject to legal
proceedings the ultimate outcome of each being always
subject to many uncertainties inherent in litigation. A
provision for litigation is made when it is considered
probable that a payment will be made, and the amount
of the loss can be reasonably estimated. Significant
judgement is made when evaluating, among other
factors, the probability of unfavourable outcome and the
ability to make a reasonable estimate of the amount of
potential loss. Litigation provisions are reviewed at each
Balance Sheet date and revisions made for the changes
in facts and circumstances. Provision for litigations and
contingent liabilities are disclosed in Note 47 (C).

Defined Benefit Plans

The cost of the defined benefit plans and the present value
of the defined benefit obligation are based on actuarial
valuation using the projected unit credit method. 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 calculation is most sensitive to changes in the
discount rate. In determining the appropriate discount
rate, the management considers the interest rates of
government bonds where remaining maturity of such
bond correspond to expected term of defined benefit
obligation.

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 and gratuity increases are based on
expected future inflation rates.

Further details about defined benefits plans are disclosed
in Note 48.

Useful Lives of Property, Plant and Equipment

The Company has estimated useful life of each class of
assets based on the nature of assets, the estimated usage
of the asset, the operating condition of the asset, past
history of replacement, anticipated technological changes,
etc. The Company reviews the useful life of property, plant
and equipment as at the end of each reporting period.
This reassessment may result in change in depreciation
and amortisation expense in future periods.

Warranty Provisions

The Company provides warranties for its products,
undertaking to repair or replace the product that fail to
perform satisfactory during the warranty period. Provision
made at the year-end represents the amount of expected
cost of meeting such obligations of rectification/
replacement which is based on the historical warranty
claim information as well as recent trends that might
suggest that past cost information may differ from
future claims. Factors that could impact the estimated
claim information include the success of the Company's
productivity and quality initiatives. Provision towards
warranty is disclosed in Note 35.

Footnotes:

(i) Under a loan agreement for ' 0.60 crore (fully drawn and outstanding) entered into between Agro Foods Punjab Ltd. (AFPL) and
the Punjab State Industrial Development Corporation Ltd. (PSIDC), the Company has given an undertaking to PSIDC that it will not
dispose off its shares in AFPL till the monies under the said loan agreement between PSIDC and AFPL remain due and payable by
AFPL to PSIDC. During 1998-99, the Company had transferred its beneficial rights in the shares of AFPL.

(ii) The Company has legal ownership of 49% in Universal MEP Contracting Services and Trading WLL (formerly known as Voltas Qatar
W.L.L.), however, the Company has beneficial ownership of 97% in the entity.

(ii) Contract assets are initially recognised for revenue earned from construction contracts relating to electro-mechanical projects
as receipt of consideration that is conditional on successful completion of project milestone. Upon completion of milestone,
acceptance/certification by the customer and pending no other performance obligation, the amounts recognised as contract
assets are billed to customers and reclassified to trade receivables.

(iii) Refer note 15 footnote (v) and (vi).

(iii) No Trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other
person. Nor any trade or other receivables due from firms or private companies respectively in which any director is a partner, a
director or a member.

(iv) Trade receivables are non interest bearing and are generally on terms of 7 to 60 days in case of sale of products and in case of long
term construction contracts, payment is generally due upon completion of milestone as per terms of contract.

(v) During the current year, the Company has reclassified an amount of ' 120.47 crores from Trade Receivables to Contract Assets for
the year ended 31 March, 2025 being amount not unconditionally due to the Company based on contractual terms.The Company
believes it is more appropriate to classify these amounts as contract assets instead of trade receivables in accordance with the
interpretation of the accounting standards.

(vi) The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment losses on trade
receivables and contract assets. The Company follows the simplified approach for recognition of impairment allowance on trade
receivables and contract assets. The application of the simplified approach does not require the Company to track changes
in credit risk. Rather, it recognises impairment allowance based on lifetime ECLs at each reporting date. ECL impairment loss
allowance (or reversal) recognised during the period is recognised in the statement of profit and loss. This amount is reflected
under the head 'other expenses' in the statement of profit and loss.

(vii) Refer note 51 for information about credit risk and market risk of trade receivables.

Nature and purpose of reserves:

(a) Capital Reserve

Capital Reserve was created from capital surplus on sale of assets and on amalgamation of subsidiary company.

(b) Capital Redemption Reserve

Capital Redemption Reserve is created out of profit available for distribution towards redemption of Preference shares. This
reserve can be used for the purpose of issue of bonus shares.

(c) Securities Premium

Securities Premium represents the surplus of proceeds received over the face value of shares, at the time of issue of shares.
This reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of
the Companies Act, 2013.

(d) General Reserve

General Reserve is created out of amounts transferred from retained earnings. As the General Reserve is created by a transfer
from one component of equity to another and is not an item of other comprehensive income, items included in the General
Reserve will not be reclassified subsequently to statement of profit and loss.

(e) Equity instruments fair value through other comprehensive income:

The Company has elected to recognise changes in the fair value of investments in equity securities in other comprehensive
income. These changes are accumulated within the FVTOCI equity investments reserve within equity. The Company transfers
amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

(f) Retained earnings

Retained earnings are the profit/ (loss) that the Company has earned/ incurred till date less any transfer to general reserve,
dividends or other distribution 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.

47 COMMITMENTS AND CONTINGENCIES (Contd.)

Footnote:

(i) In 2010 the Company through its Qatar Branch jointly with a Consortium Partner had entered into a sub-contract with
the Main Contractor, in connection with a project awarded by the Ultimate Client. In 2014, the main contract between
the Ultimate Client and the Main Contractor was terminated by the Ultimate Client owing to delays and defects in
execution. The Ultimate Client thereafter initiated arbitration proceedings against the Main Contractor. Accordingly,
the Company had made a comprehensive assessment of the losses arising on account of the termination of the main
contract and had accounted for all probable losses on the sub-contract in the earlier years.

In connection to the sub-contract, the Company had issued bank guarantees amounting to ' 433.34 crores (QAR 166.6
million) to the Main Contractor which have been disclosed as a contingent liability in the financial statements over the
years. In June 2023, the Company was informed by its bankers that the Main Contractor had sought to invoke the said
bank guarantees. However, due to certain deficiencies in the invocation process, the guarantees were not honoured
by the Bank, leading to the commencement of legal proceedings. The Company, Main Contractor, Consortium partner
and the Bank had filed their respective appeals before the Court of Appeal (Qatar). As per the latest developments,
the Court of Appeal (Qatar) vide its judgment dated 04 May 2026 directed the main contractor to return the bank
guarantees issued by the Company within ten days of judgment failing which the said bank guarantees shall be
deemed void. The Court has further directed the Main Contractor to pay the settlement amount towards variation
order claims and compensation to the Company and its Consortium partner. The Company has filed the application
for execution of said judgment. Based on the aforesaid developments, ongoing assessment by the Company and legal
advice obtained from an independent counsel, the Company does not expect any financial impact in relation to this
matter, even if the Court of Appeal (Qatar) judgment is challenged before a higher judicial forum by the aggrieved
parties. The Company is confident of its ability to defend any such appeal on merits.

48 EMPLOYEE BENEFITS (Contd.)

(iv) Provident Fund

In case of holding company's employees contribution to Provident Fund is made to trusts administered by the Company. In
terms of guidance note issued by the Institute of Actuaries of India, the Actuary has provided a valuation of Provident fund
liability based on the assumptions listed and determined that there is no shortfall as at 31 March, 2026.

The details of the fund and plan assets position are as follows:

Risk Analysis

The Company is exposed to the following Risks in the defined benefits plans:

(a) I nvestment Risk: The present value of the defined benefit obligation is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds. If the return on
plan assets is below this rate, it will create a plan deficit.

(b) I nterest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by
increase in the return on the plan's debt investments.

(c) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and after their employment. An increase in the life expectancy of the
plan participants will increase the plan's liability.

(d) Salary growth risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries
of plan participants. An increase in the salary of the plan participants will increase the plan's liability.

(v) The Board of Directors of the Company, at its meeting held on 14 August 2024, approved a Long-Term Incentive Scheme
2024 ("Scheme") for eligible employees, with the objective of driving organisational performance and retaining key talent.
The Scheme provides for payment of incentives in cash, contingent upon achievement of specified performance conditions,
including the Company's share price performance, and subject to continued employment (with certain exceptions such as
retirement, completion of contract and death). The Scheme originally had a vesting period of three years commencing from
01 April 2024. During the current year, the vesting period has been extended by an additional year and will now end on 31
March 2028. Based on an actuarial valuation, the Company has recognised a liability of '32.39 crores as at 31 March 2026
(' 28.30 crores as at 31 March 2025) in respect of the Scheme.

49 RELATED PARTY DISCLOSURES (Contd.)

Terms and conditions of transactions with related parties

(i) Sales of products/PPE and rendering of services
(Refer S. No. 1, 2 and 6)

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 07 to 60
days from the date of invoice.

(ii) Construction contract revenue (Includes billed and
unbilled revenue) (Refer S. No. 3)

Construction contracts are entered with 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 contract
price, margin, and payment terms with the related parties
by benchmarking the same to transactions with non¬
related parties with whom the Company enters with
similar nature of contracts. In these contracts, payments
are generally due upon completion of milestone as per
terms of contract. In certain contracts short term advance
are received before the performance obligation is satisfied.

(iii) Rental Income (Refer S. No. 4)

The Company leases out investment properties - Building
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 Compa ny mutually negotiates and
agrees lease rate with the related parties by benchmarking
the same to transactions with non-related parties with
whom the company enters with lease contracts. These
lease contracts include payment terms requiring related
party to make payments in advance.

(iv) Corporate Guarantee Fees Received / Receivable
and Guarantees Outstanding at period end (S. No. 9
and 29)

The Company has issued financial guarantees to banks
on behalf of and in respect of credit facilities (fund and
non-fund) availed by its subsidiaries. The Guarantee
given by the Company will require it to make specified
payments to reimburse the bank for the loss it incurs if its
subsidiaries fail to make payment when due in accordance
with the original terms of the credit facilities agreements.
The Company receives commission for providing the
guarantees to its subsidiaries. The rate of guarantee
commission is determined using Transfer Pricing study
conducted by tax professionals.

(v) Security deposit at the end of the period (Refer S.
No. 23)

These deposits are received on investment properties -
Building leased out to related parties and are non-interest
bearing and on the same terms as applicable to third
parties in an arm's length transaction and in the ordinary
course of business.

(vi) Remuneration Paid / Payable (including commission
and sitting fees) (Refer S. No. 7 and 8)

The amounts paid/payable are the amounts recognised
as an expense during the financial year related to Key
Management Personnel and Directors. The amounts
do not include expense, if any, recognised toward post¬
employment benefits of Key Management Personnel.
Such expenses are measured based on an actuarial
valuation done for Company. Hence, amounts attributable
to KMPs are not separately determinable.

(vii) Purchases of PPE, stock-in-trade and goods / services
for execution of contracts (Refer S. No. 12,16 and 18)

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

49 RELATED PARTY DISCLOSURES (Contd.)

Company mutually negotiates and agrees purchase
price and payment terms with the related parties by
benchmarking the other purchases being made from
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.

(viii) Receiving of services (Refer S. No. 11)

The company received services in the nature of insurance,
communication, IT services etc. 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 agrees the price and payment
terms with the related parties by benchmarking the same
to the services received from non-related parties. Such
transactions include payment terms requiring payment to
be made to related parties within 07 to 60 days from the
date of invoice.

(ix) Other Expenses - Recovery / Reimbursement of
expenses (Refer S. No. 13 and 14)

These transactions represent expense incurred by the
Company on behalf of related parties or expenses
incurred by related parties on behalf of the Company. This
reimbursement / recovery of expenses is made on actual
cost incurred basis without mark-up.

(x) Royalty Charges (Refer S. No. 15)

The Company pays royalty to the entity having significant
influence over the Company for using the brand name
The rate of royalty is determined using Transfer Pricing
study conducted by tax professionals.

(xi) Deputation Charges Paid (Refer S. No. 17)

These transactions represent hiring of manpower
from related parties where prices are agreed at cost to
related party plus mark-up. Mark-up for this purpose is
determined using Transfer Pricing study conducted by tax
professionals.

(xii) Debit Balance and Provision for Debts and Advances
at period end (Refer S. No. 24 and 27)

Trade receivables and other receivables 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 21
to 60 days from the reporting date (31 March, 2025: 21
to 60 days from the reporting date). The Company has
recorded impairment allowances on receivables as per
ECL matrix followed by the Company.

(xiii) Advances Outstanding at period end (Refer S. No. 25)

Advances outstanding balances are unsecured, interest
free and will be settled against the provision of services by
the related parties. These advances have been paid as per
the terms of contracts.

(xiv) Credit Balance outstanding at period end (Refer
S. No. 28)

Trade payables and other payables 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, 2025: 30 to 60 days
from the reporting date).

49 RELATED PARTY DISCLOSURES (Contd.)

(xv) Contract Revenue in excess of Billing (Refer S. No. 31)

Outstanding balances of contract assets is related to
the revenue earned from Construction contracts relating
to electro-mechanical projects as receipt of consideration
that is conditional on successful completion of project
milestone. Upon completion of milestone acceptance/
certification by the related parties and no otherperformance
obligation is pending, the amounts recognised as contract
assets are billed and reclassified to trade receivables.
Contract assets balances are unsecured, interest free and
require settlement in cash. No guarantee or other security
has been received against these assets. The company
expects to complete the work as per the milestone agreed
as per terms of the contracts.

(xvi) Billing in excess of contract revenue (Refer S. No. 32)

Billing in excess of contract revenue represents billing
made in excess of revenue recognised on construction
contracts and will get adjusted against the revenue to
be recognised as work gets executed on the contracts.
Invoices on construction contracts are raised as per the
terms of the contracts.

(xvii) Contribution to Employee Benefit Funds (Refer
S. No. 33)

Contribution to Employee Benefit Funds are made as per
applicable statutory laws and regulations.

(xviii) Investment in Equity Shares (Refer S. No. 19)

The Company has invested in equity shares of Voltas
Netherlands B.V. ('VNBV'), the proceeds of which will

be utilised by VNBV to purchase the investment in
other subsidiaries as held by the Company with an aim
to house the international business operations of the
Company under a separate entity. VNBV has one class
of equity shares having a par value of EUR 45 per share
(Refer Note 57(v)).

The Company has invested in equity shares of Voltbek
Home Appliances Private Limited ('VHAPL') for its
working capital requirements and capital expansion. The
investment has been utilised by VHAPL for the purpose
it was obtained. VHAPL has one class of equity shares
having a par value of ' 10 per share. Each shareholder is
entitled for one vote per share held.

The Company has invested in equity shares of Voltas
Components Private Limited ("VCPL") to support its
operational expenditure requirements. The investment
is being utilised by VCPL for the intended purposes. VCPL
has a single class of equity shares with a face value of '10
per share, and each shareholder is entitled to one vote for
every share held.

(xix) Investment in Bonds and Debentures (Refer
S. No. 21)

I nvestment made in bonds issued by related parties are
on the same terms as applicable to third parties in an
arm's length transaction and in the ordinary course of
business considering the yield on investment and credit
risk associated with the investment.

50 FINANCIAL INSTRUMENTS (Contd.)

- Further, in case of certain other Unquoted equity instrument their respective cost has been considered as an appropriate
estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of
fair value within that range. (Refer Note 8 (v))

- The Company enters into derivative financial instruments with various counterparties, principally with banks. Foreign
exchange forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The
model incorporates various inputs including the credit quality of counter parties, foreign exchange spot and forward rates.

- The fair value of the investment properties have been derived using the market comparable approach (market value method
/ sale comparison technique) based on recent market prices without any significant adjustments being made to the market
observable data. The valuation was carried out by an independent registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017.

- There were no transfers between Level 1 and 2 during the period.

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instrument by valuation

techniques:

(i) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

(ii) Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
or indirectly observable;

(iii) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a

current transaction between willing parties.

The following methods and assumptions were used to estimate the fair values:

- The fair value of quoted equity investment & quoted debentures/bonds and mutual funds are based on price quotations at
the reporting date.

- The fair value of certain unquoted equity investments have been estimated using discounted cashflow / market multiple
method.The valuation requires management to make certain assumptions about the model inputs, including forecast cash
flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably
assessed and are used in management's estimate of fair value for these unquoted equity investments.

51 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's financial liabilities include borrowings, lease liabilities, trade and other payables. The Company's financial assets
include investments, loans, trade and other receivables, cash and cash equivalents and other bank balances. The Company also
holds FVTPL and FVTOCI investments.

The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors of the Company oversee the
management of these financial risks through its Risk Management Committee as per Company's existing policy.

(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 comprise three types of risk: interest rate risk, currency risk and other price risk, such as equity price
risk. Financial instruments affected by market risk include borrowings, lease liabilities, investments, trade payables and other
payables, trade receivables and other receivables, loans and derivative financial instruments.

(a) Interest rate risk

I nterest 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. The Company's exposure to the risk of changes in the market interest rates related
primarily to the Company's long term borrowings and investment in debt mutual funds. The Company has availed
benchmark linked, short term and long term debt from banks both in India and overseas. It is estimated that an increase
in 25 bps change in benchmark rate would result in a loss before tax of approximately ' 1.98 crores whereas a decrease
in 25 bps change in benchmark rate would result in a profit before tax of approximately ' 1.98 crores (31 March, 2025:
' 1.41 crores).

51 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd.)

Given the portfolio of investments in debt mutual funds, the Company has exposure to interest rate risk with respect
to returns realised. It is estimated that an increase in 25 bps change in 10 year Govt. bond yield would result in a loss
before tax of approximately ' 3.02 crores (31 March, 2025: ' 3.53 crores) whereas a decrease in 25 bps change in 10 year
Govt. bond yield would result in a profit before tax of approximately ' 3.02 crores (31 March, 2025: ' 3.53 crores). This
estimate is based on key assumption with respect to seamless transition of rates across debt instruments in the market
and also basis the duration of debt instruments in turn held by mutual funds that the Company has invested in.

(b) 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's exposure to the risk of changes in foreign exchange rates relates primarily to
the Company's operating activities (when revenue or expense is denominated in a foreign currency). Foreign currency
risks are managed by utilising foreign exchange forward contracts within the approved policy parameters.

As at the year end, the carrying amounts of the foreign currency denominated monetary assets and liabilities are as
follows:

(ii) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk for trade receivables, contract asset, cash and cash equivalents,
investments, other bank balances, loans and other financial assets. The Company only deals with parties which have good
credit rating/worthiness given by external rating agencies or based on Company's internal assessment.

Credit risk on trade receivables and contract assets are managed by each business unit subject to the Company's established
policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed and
individual credit limits are defined in accordance with this assessment. Moreover, given the diverse nature of the Company's
businesses, trade receivables and contract assets are spread over a number of customers with no significant concentration of
credit risk. No single customer accounted for 10% or more of the trade receivables and contracted assets in any of the years
presented.

For trade receivables and contract assets, as a practical expedient, the Company computes credit loss allowance based on a
provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade
receivables and contract assets and is adjusted for forward-looking estimates.

For Mutual Fund Investments, counterparty risk are in place to limit the amount of credit exposure to any one counterparty.
This, therefore, results in diversification of credit risk for Company's mutual fund investments.

Credit risk from cash and cash equivalents and balances with banks is managed by the Company's treasury department in
accordance with the Company's treasury policy.

The Credit risk on mutual fund investments, cash and cash equivalents, and other bank balances are limited as the
counterparties are banks and fund houses with high-credit ratings assigned by credit rating agencies.

The carrying value of the financial assets represents the maximum credit exposure. The Company's maximum exposure to
Credit risk is disclosed in Note 50 Financial Instruments. The maximum credit exposure on financial guarantees given by the
Company for various financial facilities is disclosed in Note 47 (B) Commitments and Contingencies.

(iii) Liquidity risk management:

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that the funds are available for use as per the requirements.
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities,
by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and
liabilities. The Company consistently generates sufficient cash flows from operations to meet its financial obligations as and
when they fall due.

54 LEASES
Company as a lessee

The Company has lease contracts for its office premises, and storage locations with lease term between 1 year to 9 years. The Company
also has Land for lease for a maximum lease term of 99 years and Vehicle on Lease for a lease term between 1-2 years. The Company's
obligations under its leases are secured by the lessor's title to the leased assets. Generally, the Company is restricted from assigning and
subleasing the leased assets.

The Company also has certain leases of office premises and storage locations with lease terms of 12 months or less. The Company
applies the 'short-term lease' recognition exemptions for these leases.

54 LEASES (Contd.)

Company as a lessor

The Company has entered into operating leases on its investment property portfolio consisting of land and office premises. These
leases have lease terms between 1 year to 5 years. The Company has the option under some of its leases to lease the assets for
additional periods. An amount of ' 38.53 crores is recognised as lease income in the statement of profit and loss account for the
year ended 31 March, 2026 (31 March, 2025: ' 36.52 crores).

55 CAPITAL MANAGEMENT:

The capital structure of the Company consists of net debt and total equity of the Company. The Company manages its capital
to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through an
optimum mix of debt and equity within the overall capital structure. The Company monitors capital using a gearing ratio, which
is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings,
less cash and cash equivalents.

(c) Details of carrying amount of right-of-use assets and movement during the period is disclosed under Note 6.
Footnotes:

(i) The maturity analysis of lease liabilities are disclosed in Note 51 (iii) Liquidity Risk Management.

(ii) The effective interest rate for lease liabilities is 8% to 9% p.a. (31 March, 2025: 9% p.a.), with maturity between 2024-2033.

(iii) Expense relating to short-term leases are disclosed under the head rent and clearing charges in other expenses (refer note 42).

(iv) The Company had total cash flows for leases of ' 13.47 crores on 31 March, 2026 (31 March, 2025: ' 13.84 crores).

57 OTHER STATUTORY INFORMATION:

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

(ii) The Company does not have any transactions with companies struck off from the records of the Registrar of Companies
(ROC).

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

(v) Following are the details of the funds advanced by the Company to Intermediaries for further advancing to the Ultimate
beneficiaries:

Footnotes:

(a) The Board of Directors of the Company, at its Meeting held on 26 April, 2023, with an objective to house the international
business operations of the Company under a separate entity, i.e. Universal MEP Projects Pte Limited (UMPPL), in the
Republic of Singapore, approved the transfer of the Company's investments in its overseas subsidiaries - Weathermaker
FZE (Weathermaker) (100%), UAE, Saudi Ensas Company for Engineering Services W.L.L. (Saudi Ensas), Kingdom of Saudi
Arabia (92%) and Lalbuksh Voltas Engineering Services & Trading L.L.C. (Lalvol), Sultanate of Oman (20%). During the
previous year, the Company has invested ' 111.84 crores in the share capital of Voltas Netherlands B.V. which has
infused these funds in share capital of UMPPL. These funds were utilised by UMPPL for purchase of investments from
Voltas.

(b) The Company has made an investment of ' 220.01 crores (31 March, 2025: ' 60.54 crores) in Voltas Netherlands B.V.
('VNBV') and the said amount was further invested by VNBV into Universal MEP Projects Pte Limited, a step-down
subsidiary of the Company primarily for repayment of bank overdraft facility earlier taken by UMPPL to extend financial
support for business operation of Universal MEP Contracting Services and Trading WLL (formerly known as Voltas Qatar
W.L.L) a step-down subsidiary of the Company.

The Company has complied with the relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999)
and the Companies Act, 2013 for the above transactions and the transactions are not violative of the Prevention of
Money-Laundering Act, 2002 (15 of 2003).

57 OTHER STATUTORY INFORMATION: (Contd.)

(vi) 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.

(vii) The Company has no 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).

(viii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013
read with the Companies (Restriction on number of Layers) Rules, 2017.

(ix) The Company has not been declared as wilful defaulter by any Bank, Financial Institution or any other lender.

58 AUDIT TRAIL:

The Company has used accounting softwares 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 audit trail feature is not enabled at the database level in relation to payroll software. Further no instance of audit trail feature
being tampered with was noted in respect of such softwares. Additionally, the audit trail of previous years has been preserved as
per the statutory requirements for record retention, to the extent it was enabled and recorded in those respective years except for
changes made at the database level for the accounting software for the period November 12, 2024 to March 31,2025.

59 BACKUP OF BOOKS OF ACCOUNTS:

The Company is maintaining its books of account in electronic mode and these books of account are accessible in India at all times
and the back-up of books of account has been kept in servers physically located in India on a daily basis.

60 INVESTMENTS IN SUBSIDIARIES AND BUSINESS TRANSFER AGREEMENTS:

The Board of Directors of the Company at its Meeting held on 13 March, 2025, approved transfer of overseas branches of the
Company at Dubai and Abu Dhabi in UAE to Universal MEP Contracting L.L.C. ('UMCL'), Dubai, UAE, a step-down subsidiary of
the Company on a slump sale basis through Business Transfer Agreements ('BTAs'). The BTAs between the Company and UMCL
have been executed on 20 August, 2025. The transaction is expected to be consummated by 30 June, 2026 or such other date as
mutually agreed between the Company and UMCL.

62 EVENTS OCCURRING AFTER BALANCE SHEET DATE:

(i) The Board of Directors have proposed dividend of ' 4.00/- per share after the balance sheet date which is subject to approval
by the shareholders at the annual general meeting.

(ii) The Board of Directors have approved an amount of ' 20.00 crores to be transferred to General Reserve from Retained
Earnings after the balance sheet date.