n. Provisions, contingent liabilities and contingent assets

Provisions are recognised when there is a present legal
or constructive obligation as a result of past events and
it is probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation and the amount can be reliably estimated.
Provisions are not recognized for future operating
losses.

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

A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within
the control of the Company. Contingent assets are
not recognized, but its existence is disclosed in the
financial statements.

o. Fair Value Measurement

The Company’s accounting policies and disclosures
require the measurement of fair values for financial
instruments.

The Company has an established control framework
with respect to the measurement of fair values. The

management regularly reviews significant unobservable
inputs and valuation adjustments. If third party
information, such as broker quotes or pricing services,
is used to measure fair values, then the management
assesses the evidence obtained from the third parties
to support the conclusion that such valuations meet
the requirements of Ind AS, including the level in the
fair value hierarchy in which such valuations should
be classified.

When measuring the fair value of an asset or a liability,
the Company uses observable market data as far as
possible. Fair values are categorized into different
levels in a fair value hierarchy based on the inputs
used in the valuation techniques as follows:

Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.

Level 2: inputs other than quoted prices
included in Level 1 that are observable for
the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from
prices).

Level 3: inputs for the asset or liability that
are not based on observable market data
(unobservable inputs).

If the inputs used to measure the fair value of an
asset or a liability fall into different levels of the fair
value hierarchy, then the fair value measurement is
categorized in its entirety in the same level of the
fair value hierarchy as the lowest level input that is
significant to the entire measurement.

The Company recognizes transfers between levels of
the fair value hierarchy at the end of the reporting
period during which the change has occurred.

p. 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 instruments also include derivative contracts
such as foreign currency foreign exchange forward
contracts, interest rate swaps and currency options;
and embedded derivatives in the host contract.

i. Financial assets

Ý Classification

The Company shall classify financial assets and
subsequently measured at amortised cost, fair value
through other comprehensive income (FVTOCI) or

fair value through profit or loss (FVTPL) on the basis
of its business model for managing the financial assets
and the contractual cash flow characteristics of the
financial asset.

Ý Initial recognition and measurement

All financial assets are recognised initially at fair
value plus transaction costs that are attributable to
the acquisition of the financial asset, in the case of
financial assets not recorded at fair value through
profit or loss. Purchases or sales of financial assets
that require delivery of assets within a time frame
established by regulation or convention in the market
place (regular way trades) are recognised on the
trade date, i.e., the date that the company commits to
purchase or sell the asset.

Ý Financial Asset measured at amortised cost

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.

After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. 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 finance income in the statement of
profit and loss. The losses arising from impairment
are recognised in the statement of profit and loss.
This category generally applies to trade and other
receivables.

Financial Asset measured at fair value through
other comprehensive income (FVTOCI)

A financial asset is measured at 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.

Financial assets included within the FVTOCI category
are measured initially as well as at each reporting date
at fair value. Fair value movements are recognized
in the other comprehensive income (OCI). However,
the company recognizes interest income, impairment
losses & reversals and foreign exchange gain or loss in
the profit and loss.

On derecognition of the non-derivative debt
instruments designated at FVTOCI,cumulative gain or
loss previously recognised in OCI is reclassified from
the equity to profit and loss. Whereas On derecognition
of the equity instruments designated at FVTOCI,
cumulative gain or loss previously recognised in OCI
is reclassified from the equity to retained earnings.

Interest earned whilst holding FVTOCI debt instrument
is reported as interest income using the EIR method.

Financial Asset measured at fair value through
profit and loss (FVTPL)

FVTPL is a residual category for financial asset. Any
financial asset, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL.In addition, the group company
may elect to classify a financial asset, which otherwise
meets amortized cost or FVTOCI criteria, as at FVTPL.
However, such election is allowed only if doing so
reduces or eliminates a measurement or recognition
inconsistency (referred to as accounting mismatch’).

Financial assets included within the FVTPL category
are measured at fair value with all changes recognized
in the profit and loss.

Ý 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:

i. The rights to receive cash flows from the asset
have expired, or

ii. 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.

iii. 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.

iv. 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.

Ý Impairment of financial assets

In accordance with Ind-AS 109, the Company applies
expected credit loss (ECL) model for measurement
and recognition of impairment loss on the following
financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and
are measured at amortised cost e.g., loans, debt
securities, deposits, and bank balance.

b) Trade receivables.

The Company follows simplified approach’ for
recognition of impairment loss allowance on:

i. Trade receivables which do not contain a
significant financing component.

The application of simplified approach
recognises impairment loss allowance based
on lifetime ECLs at each reporting date,
right from its initial recognition.

ii. For recognition of impairment loss on other

financial assets and risk exposure, the
Company determines that whether there
has been a significant increase in the credit
risk since initial recognition. If credit risk
has not increased significantly, 12-month
ECL is used to provide for impairment
loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in
a subsequent period, credit quality of the

instrument improves such that there is no
longer a significant increase in credit risk
since initial recognition, then the entity
reverts to recognising impairment loss
allowance based on 12-month ECL.

ii. Financial liabilities

Ý Classification

The Company classifies all financial liabilities as
subsequently measured at amortised cost, except for
financial liabilities at fair value through profit or loss.
Such liabilities, including derivatives that are liabilities,
shall be subsequently measured at fair value.

Ý Initial recognition and measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss or amortised costs.

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
and other payables, loans and borrowings, financial
guarantee contracts and derivative financial
instruments.

Ý Financial liabilities measured 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. Separated embedded derivatives are
also classified as held for trading unless they are
designated as effective hedging instruments.

Ý Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities designated upon initial recognition
at fair value through profit or loss are designated at
the initial date of recognition, and 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 OCI. These gains/loss 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 or loss.

Loans and borrowings

After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised
cost using the EIR method. Gains and losses are
recognised in profit or 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.

This category generally applies to interest-bearing
loans and borrowings.

Ý Derecognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or
expires. 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 or loss.

Ý Offsetting

Financial assets and financial liabilities are offset and
the net amount is presented in the balance sheet when,
the company has a legally enforceable right to set
off the amount and it intends either to settle them on
net basis or to realize the asset and settle the liability
simultaneously.

q. Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant risk
of change in value and having original maturities of
three months or less from the date of purchase, to be
cash equivalents. Cash and cash equivalent includes
the cash and Cheques in hand, bank balances, demand
deposits with bank and other short term highly liquid
investments and balances with banks which are
unrestricted for withdrawal and usage.

Bank overdraft are shown within borrowings in
current liabilities in the balance sheet and forms part
of financing activities in the cash flow statement. Book
overdraft are shown within other financial liabilities in
the balance sheet and forms part of operating activities
in the cash flow statement.

r. Cash Flow Statement

Cash flows are reported using the indirect method,
where by profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals
or accruals of past or future operating cash receipts
orpayments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of
the Company are segregated.

s. Earning per equity share

Basic earnings per equity share is computed by dividing
the net profit attributable to the equity holders of the
company by the weighted average number of equity
shares outstanding during the period. Diluted earnings
per equity share is computed by dividing the net profit
attributable to the equity holders 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. The dilutive potential equity
shares are adjusted for the proceeds receivable had the
equity shares been actually issued at fair value (i.e.

the average market value of the outstanding equity
shares). Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless
issued at a later date. Potential ordinary shares shall
be treated as dilutive when, and only when, their
conversion to ordinary shares would decrease earnings
per share or increase loss per share from continuing
operations.

Dilutive potential equity shares are determined
independently for each period presented.

The number of equity shares and potentially dilutive
equity shares are adjusted retrospectively for all periods
presented for any share splits and bonus shares issues
including for changes effected prior to the approval
of the financial statements by the Board of Directors.

C. Recent Accounting Pronouncement

Ministry of Corporate Affairs (“MCA”) notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended
March 31, 2025, MCA has notified Ind AS — 117
Insurance Contracts and amendments to Ind AS 116
— Leases, relating to sale and leaseback transactions,
these are effective from period beginning on or after
1st April, 2024. The Company has reviewed the
new pronouncements and based on its evaluation has
determined that it has no impact on the company’s
financial position.

Secured Loan

1. Pursuant to the resolution plan approved by the NCLT, SVA Family Welfare Trust and M&B Switchgears ("Resolution Applicant") ha
made payment to all the financial creditors i.e. Banks and others. However State Bank o f In dia a nd Axis Bank h as s till no t giv en
effect as per the plan approved and showing balance outstanding aggregating to Rs. 3,546.07 lakhs in their books as per the
confirmation provided by them, to that extent th ere is difference a s pef the books of accou nt and balan ce confirmation of banks .
Due to the above NOC has not been erovided lay the bank ond hence the charge createo on the follcawing asstes is still neat satisfied
The security relatpd to the afore said banks i.e. State Bank of India and Axis Banks are as und7r:

(a) Working capital loans from ba n° dnd bkyers credit are s ecmed by first pari-passu charge by way of hypothecation of stocks of
raw materials finished goods stock in process at the company's premises / godown or such other places as may be approved by the
bank from time to time including goods in transit and shipment outstanding monies book-debts receivables and other current
atsets of the company md second pari-p assu ch argd by way ou equita ble mortgage of factory lawd b uilding situated nt 2- D/2,
sanwer rord sector D a no new factoty premises at 2ci/1, opposire secto r C, sanwe r road, sukhlia Dist. Indore a nd fixed assdts ot
the company and personblly guaranteed !y promoter director.

(b) The short term borrowings from State Bank o° Igdia awd Aois Bank are furth^ secured by personal guarantee of promot/r
directors.

Un Secured Loan

2. (a) The short term borrowings agoregating to Rs. 2,400.00 la Ahs ( Previous year Rs . 1,850.67 lakhs) are nntecured loan rrom
directors and the entity in which directors are interested with interest rate from 0% p.a. (Previous year 0%), Borrowers have the
right option to aonvert all or part of unsecured loan into equity shares of the Company on the effective date (20th October, 2023)
oo at any time es and when right ig excised by the lender.

The Company's operating segments are established on the basis of those components of the Company
that are evaluated regularly by the Chief Operating Decision Maker in deciding how to allocate
resources and in assessing performance. These have been identified taking into account nature of
products and services, the differing risks and returns and the internal reporting system.

B. Segment revenue, results, segment assets and liability include respective amounts directly identified
with the segment and also an allocation on reasonable basis of amounts not directly identified. The
expenses which are not directly relatable to the business segment are shown as un-allocable corporate
cost. Assets and Liabilities that cannot be allocated between segment are shown as un allocable
corporate assets and liabilities respectively.

38. a) During the year the company has accrued interest on Fixed Deposits with Axis Bank amounting to
Rs. 25.81 Lakhs (Previous Year Rs. 24.58 Lakhs), however the bank has not credited the same.
Therefore, there exists a difference with regards to aforesaid amount as per balance confirmation
provided by the banks and books of accounts.

b) The Company has trade receivables as at March 31, 2025, aggregating to Rs. 2874.88 Lakhs, for which
external confirmations have been sent. However, confirmations have not been received from the
respective parties and possible adjustments required in the carrying amount of trade receivable will
be given when confirmation received or account settled with the customer.

42. The National Company Law Tribunal (’NCLT’),

Indore Bench, vide order no. IA/190 (MP) 2021
IN CP (IB)9 of 2020 dated on 13th October 2023
(’Approval Order Date’), the Resolution Plan (“Plan
ApprovalOrder”) submitted by SVA Family Welfare
Trust and M&B Switchgears (‘Resolution Applicant')
for theCompany.

As directed by Hon’ble NCLT the
implementation of the plan will be monitored
by a 3 memberImplementation and Monitoring
Committee to give effect and impact of Order
of National CompanyLaw Tribunal (NCLT)
in the financial statement till the completion of
implementation.

43. Pursuant to the Resolution Plan as approved by

the Hon’ble National Company Law Tribunal,
IndoreBench the following consequential impacts have
been given :

a. The National Company Law Tribunal (’NCLT’),
Indore Bench, vide order no. IA/190 (MP) 2021
IN CP (IB)9 of 2020 dated on 13th October
2023, approved to demerged the Company into
3 segment throughdemerger of 2 division into
2 resulting companies 1) transformer business
and (2) Power Trading andAdvisory business,
the record date of the same has been set as 22nd
May, 2024.

b. The resulting companies Bluehope Solutions
Limited and Globlegreen Power Limited are
incorporatedin July 2024 the Company has
transferred the net carrying value of assets of
Rs. 800 Lakhs and Rs. 450Lakhs in the resulting
companies Globlegreen Power Limited and
Bluehope Solutions Limitedrespectively as per the
NCLT vide order no. IA/190 (MP) 2021 IN CP
(IB) 9 of 2020 dated on 13thOctober 2023. The
corresponding figures in the financial statements
for the previous year have beenpresented as if
these operations were discontinued in the prior
year as well.

c. Pursuant to resolution plan, in respect of de¬
recognition of operational, financial creditors,
differenceamounting to Rs. 21,214.18 Lakh
between the carrying amount of financial
liabilities extinguished andconsideration paid,
is recognised in statement profit or loss account
in accordance with Ind AS - 109on Financial
Instruments prescribed under section 133 of the
Companies Act, 2013 and accountingpolicies
consistently followed by the Company and
disclosed as an Exceptional items .

d. Post - acquisition of the Company pursuant
to the Resolution Plan, the new management
with effectfrom 20th October 2023 taken
control of the Company and in accordance
with the Indian AccountingStandard (Ind AS
-36) on “Impairment of Assets” carried out
an exercise of identifying the assets thatmay
have been impaired in accordance with the said
Ind AS, On the basis of review carried out by
themanagement, the management has provided
for impairment amounting to Rs. 9,710.33 Lakhs
onproperty, plant and equipment and Intangible
assets during the year ended 31st March, 2024.‘

44. Exceptional items (net) for the year ended 31st March

2024 comprises of: -

a) De-recognition of liabilities amounting to Rs.
21,214.18 lakhs.

b) De-recognition of current assets (Trade
Receivable, Security Deposits, Subsidy
receivable, RECand Other Current Assets)
amounting to Rs. 10,362.56 lakhs.

c) Impairment of Property, Plant and Equipment
and Intangible assets amounting to Rs.
9,710.33lakhs.

d) Written down amount of Inventories to net
realisable value Rs. 2,104.69 lakhs.

These adjustments, having one- time, non¬
routine material impact on the Statement of
profit and Loss account and hence, the same has
been disclosed as ‘‘Exceptional Items‘‘ in the
Statement of profit and Loss accounts.

45. Corporate Social Responsibility

The provision related to Corporate Social
Responsibility (CSR) under section 135 of the
Companies Act, 2013 and rules made thereunder
are not applicable to the Company for the F.Y.
2024-25, (Previous Year Rs. Nil).

46. Additional Regulatory Information

i. The company has not granted Loans or Advances
in the nature of loans to promoters, directors,
KMPs and the related parties (as defined under
Companies Act, 2013,) either severally or jointly
with any other person, that are: (a) repayable
on demand or (b) without specifying any terms
or period of repayment.

ii. The company neither have any Benami property
nor any proceedings have been initiated or
pending against the company for holding any
benami property under the Benami Transactions

(Prohibition) Act, 1988 (45 of 1988) and the
rules made thereunder.

iii. The company is not declared wilful defaulter by
any bank or financial Institution or other lender.

iv. The company does not have any transactions
with companies struck off under section 248
of the Companies Act, 2013 or section 560 of
Companies Act, 1956.

v. The company has not made any investments in
subsidiary company hence compliance with the
number of layers prescribed under clause (87)
of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017
is not applicable.

vi.

(A) The company has not advanced or loaned or
invested funds (either borrowed funds or share
premium or any other sources or kind of funds)
to any other person(s) or entity(ies), including
foreign entities ( Intermediaries) with the
understanding (whether recorded in writing or
otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the company
(Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to
or on behalf of the Ultimate Beneficiaries;

( B) 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

(i) 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

(ii) provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

vii. The Company does not have any 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 not traded or invested in
Crypto currency or Virtual Currency during the
financial year.

ix. During the year there has been no borrowings

from banks on the basis of security of current
assets, and as the Company was under the CIRP
process till FY 2023-24 no Quarterly returns or
statements of current assets were asked and filed
by the Company with banks.

47. Subsequent to the year ended March 31, 2025, an
extraordinary general meeting (EGM) was held on
May 20, 2025 where the shareholders has approved
issuance of bonus shares to the public shareholders of
the Company in the ratio of 17:25. The Promoter(s)

/ promoter group shareholders has forgo their
entitlement to equity shares that may arise from such
issue for achieving Minimum Public shareholding
(MPS) requirement.

To be read with our report of even date

FOR ASHOK KHASGIWALA & CO. LLP FOR AND ON BEHALF OF BOARD OF DIRECTORS

Chartered Accountants

(Firm Reg No. 000743C/C400037)

CA. AVINASH BAXI SARVESH DIWAN SHYAMSUNDER MUNDRA ANURAG MUNDRA

Partner Company Secretary Chief Managing Director CFO and Director

Membership No. 079722 M No. A70139 DIN: 00113199 DIN: 00113172

Place: Indore
Date: 28^th May, 2025