3.4 f Provision for income tax and deferred

taxes

The company uses judgements based on the
relevent rulings in the areas of allocation of
revenue, costs, allowances and disallowances
which is exercised while determining
provision for income tax. A deferred tax
asset is recognised to the extent that it is
probable that its future taxable profits will
be available against which the deductable
temporary differences and tax losses can be
utilised accordingly the company exercises
its judgement to re assess carrying amount
of deferred tax asset at the end of each
reporting period.

3.4 g Provision and contingencies

The company estimates the provisions
that have present obligation as a result of
past events and it is probable that out flow
of resources will be required to settle the
obligations. These provisions are reviewed
at the end of each reporting period and or
adjusted to reflect the current best estimates.

The company uses significant judgements
to assess contingent liabilities. Contingent
liabilities are disclosed when there is possible

4 Recent accounting pronouncements :

Ministry of Corporate Affairs ("MCA") notifies
new standards 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, applicable to
the Company w.e.f. April 1, 2024. The Company
has reviewed the new pronouncements and
based on its evaluation has determined that
it does not have any significant impact in its
financial statements.

Note: 7 intangible assets as on March 31, 2025
Accounting policy:

intangible asset is recognised when it is probable that future economic benefits that are attributable to the
asset will flow to the enterprise and the cost of the asset can be measured reliably.

New product development expenditure, software licences, technical knowhow fee, infrastructure and logistic
facilities, etc, are recognised as intangible assets upon completion of development and commencement of
commercial production,

intangible assets are amortized on straight line method over their technically estimated useful lives,

Note: 9 Leases

Accounting policy:

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a

period of time in exchange for consideration.

i) Assets taken under lease

a) The Company recognises Right-of-Use (ROU) asset representing its right to use the underlying asset for the
lease term at the lease commencement date. The cost of the ROU asset is measured in accordance with
the measurement criteria as per Ind AS 116. The ROU asset is depreciated using the straight-line method
from the commencement date over the shorter of lease term or useful life of ROU asset. The estimated
useful lives of ROU assets are determined on the same basis as those of property, plant and equipment.
ROU assets are tested for impairment whenever there is any indication that their carrying amounts may
not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.

b) The Company measures the lease liability at the present value of the lease payments that are not paid at
the commencement date of the lease. The lease payments are discounted using the interest rate implicit
in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company
uses incremental borrowing rate. The lease liability is subsequently remeasured by increasing the carrying
amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments
made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect
revised in-substance fixed lease payments. The company recognises the amount of the re-measurement
of lease liability in accordance with the requirements under Ind AS 116.

c) The Company has elected not to apply the requirements of Ind AS 116 leases to short-term leases of all
assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value.
The lease payments associated with these leases are recognized as an expense.

ii) Assets given on lease

At the inception of the lease the Company classifies each of its leases as either an operating lease or a
finance lease. The Company recognises lease payments received under operating leases as income. In case
of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant
periodic rate of return on the lessor's net investment in the lease.

Disclosure as per IND-AS 116

(i) The Company has adopted ind AS 116, effective annual reporting period beginning April 1, 2019 and
applied the standard to its leases, retrospectively, with the cumulative effect of initially applying the
standard, recognised on the date of initial application (April 1, 2019). The Company has also used the
practical expedient provided by the standard when applying ind AS 116 to leases previously classified as
operating leases under ind AS 17 and therefore, has not reassessed whether a contract, is or contains a
lease, at the date of initial application, relied on its assessment of whether leases are onerous, applying
ind AS 37 immediately before the date of initial application. The Company has used a single discount rate
to a portfolio of leases with similar characteristics. On transition, the Company recognised a lease liability
measured at the present value of the remaining lease payments. The right-of-use asset is recognised at
an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments
relating to that lease recognised in the balance sheet immediately before the date of initial application
using the practical expedient provided by the standard.

(iv) The company incurred H193.36 lakhs for the year ended March 31, 2025 (Previous year H245.91 lakhs)
towards expenses relating to short-term leases and leases of low-value assets. The total cash outflow for
leases is H491.98 lakhs for the year ended March 31, 2025 (Previous year H483.97 lakhs), including cash
outflow for short term and low value leases.

(v) Lease contracts for land & building entered by the company are primarily to conduct its business in the
ordinary course.

Note: 10 investments

Accounting policy:

i) Investments in subsidiaries, associate and joint ventures are measured at cost. Impairment / diminution in
value, other than temporary, is provided for.

ii) Investments classified as 'current investments' are carried at cost and diminution / impairment with
reference to market value is recognized.

iii) Investments in mutual funds & Alternate Investment fund (AIF) are classified as "At fair value through Profit
& Loss Account (FVTPL)" and gains/losses are routed through Profit & Loss at each reporting period.

10.3 HBL Tonbo Private Limited (HTPL)

HBL Tonbo Private Limited (HTPL) was incorporated by HBL Engineering Limited and Tonbo imaging India
Private Limited incorporated on September 12, 2022 with a sharing ratio of 51:49. There were no commercial
operations since inception of HTPL. An application under Section 248 (2) of the Companies Act, 2013 was
made during FY 22-23 for striking off the name of the Company and is under process with Ministry of
Corporate Affairs. In view of the same, a provision for diminution of 100% value of investment in equity
shares of HTPL of H51,000 has been made during the previous reporting periods.

Torquedrive Technologies Private Limited (TTL) :

In view of the permanant diminution of the investments in TTL, during the previous year an amount of H300
lacs had been provided for diminution in value of investments.

TTL Electric Fuel Private Limited (TTL EFL) :

Electric Fuel Limited (EFL) is treated as subsidiary due to control arising on account of shareholding.
During the year HBL has invested an additional amount of H120 Lakhs in the equity of TTL EFL. Provision
for dimunition to the tune of H60 Lakhs, is made in the books as the fair value of equity share is H5/- against
face value of H10/-.

Tonbo Imaging India Private Limited (Tonbo):

Pursuant to the shareholder's agreement entered, HBL exercised its conversion rights and consequently,
on March 27, 2025 the Board of Directors of Tonbo Imaging India Private Limited (Tonbo) have approved
the conversion of 1,12,156 Compulsorily Convertible Preference Shares (CCPS) of H100 each into 81,630
Equity shares of H10 each at an agreed conversion rate of 0.7278 equity share of H10 each for every 1 CCPS
of H100 each held by HBL. Upon allotment of 81,630 Equity shares of H10 each on March 27, 2025 HBL holds
11.13% in the equity capital of Tonbo against overall original cost of Investment of H86.67 Crores.

Tonbo is continued to be classified as "Associate" based upon the Board representation and voting rights
on affirmative matters affecting the operating and financials decisions of the investee company.

Naval Systems and Technologies Private Limited:

NSTL is also classified as "Associate" due to significant influence arising on voting power in the Board and
also share holidng of 41%,

Mutual Funds and AIF:

Since the audited NAV for India SME investments (AIF) will be available within 180 days from the end of
financial year, only the realized gains which will be passed through and reflected in Form 64C are recognized
in the Profit & Loss for the period ended 31^st March 2025, The balance gains/ losses will be recorded after
the NAV duly audited is shared,

Note: 11 Financial instruments (financial assets and financial liabilities):

Accounting policy:

i) All financial instruments are recognized initially at fair value, The classification of financial Instruments
depends on the objective of the business model for which it is held and the contractual cash flows that
are solely payments of principal and interest on the principal amount outstanding, For the purpose of
subsequent measurement, financial instruments of the Company are classified into (a) Non-derivative
financial instruments and (b) Derivative financial instruments,

ii) Non-derivative financial instruments

a) Security Deposits, cash and cash equivalents, employee and other advances, trade receivables and
eligible current and non-current financial assets are classified as financial assets under this clause,

b) Loans and borrowings, trade and other payables including deposits collected from various parties and
eligible current and non-current financial liabilities are classified as financial liabilities under this clause,

c) Financial instruments are subsequently carried at amortized cost wherever applicable using Effective
Interest Rate (EIR) method less impairment loss,

d) Transaction costs that are attributable to the financial instruments recognized at amortized cost are
included in the fair value of such instruments,

iii) Derivative financial instruments

a) Derivative financial assets and liabilities are initially recognized at fair value on the date a derivative
contract is entered into and are subsequently re-measured to their fair value at each reporting date

b) Changes in the fair value of any derivative asset or liability are recognized immediately in the income
statement and are included in other income or expense,

c) Cash flow hedge: Changes in the fair value of the derivative hedging instrument designated as a cash
flow hedge are recognized in other comprehensive income and presented within equity in the cash
flow hedging reserve to the extent that the hedge is effective, To the extent that the hedge is ineffective,
changes in fair value are recognized in the statement of profit and loss, If the hedging instrument no
longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then hedge
accounting is discontinued prospectively, The cumulative gain or loss previously recognized in the
cash flow hedging reserve is transferred to the statement of profit and loss upon the occurence of the
related forecasted transaction,

(iv) impairment

i) Financial assets

a) The Company applies Expected Credit Loss (ECL) model for measurement and recognition of
impairment loss on the following financial assets and credit risk exposure:

Financial assets that are debt instruments, and are measured at amortized cost wherever applicable
for e.g., loans, debt securities, deposits, and bank balance.

b) Trade receivables

The Company follows 'simplified approach' for recognition of impairment loss allowance on trade
receivables which do not contain a significant financing component. The application of simplified
approach does not require the company to track changes in credit risk. Rather, it recognizes
impairment loss allowance based on lifetime ECL's at each reporting date, right from its initial
recognition.

ii) Non - financial assets

The company assesses at each reporting date whether there is any objective evidence that a non¬
financial asset or a group of non-financial assets is impaired. If any such indication exists, the Company
estimates the amount of impairment loss.

Disclosure in accordance with ind-AS 107 and 113 - Financial instruments
A) Capital management

The Company manages its capital structure and make adjustments to it, in light of changes in economic
condition. To mainintain or adjust the capital structure, the Company may adjust the dividend payment to
shareholders, return capital to shareholder, or issue new shares. No changes were made in the objectives,
policies and procedures in the past three years.

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, borrowings, trade and other payables, other liabilities, less
cash and cash equivalents. Capital includes Issued equity capital, securities premium and all other equity
reserves attributable to the equity holders.

Level 1 - Quoted prices (unadjusted) in the active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within level 1 that are observable for assets or liabilities,
either directly (i,e,, as prices) or indirectly (i,e,, derived from prices),

Level 3 - Inputs for assets or liabilities that are not based on observable market data (unobservable inputs),

0 Financial risk management
Financial risk factors

The Company is exposed to financial risks arising from its operations and the use of financial instruments,
The key financial risks include market risk, credit risk and liquidity risk, The management reviews and designs
policies and procedures to minimise potential adverse effects on its financial performance, The primary
market risk to the company is foreign exchange risk, The companies exposure to credit risk is influenced
mainly by the customers repayments, The companies exposure to liquidity risks are on account of interest
rate risk on borrowings, The following sections provide details regarding the companies exposure to the
above mentioned financial risks and the management thereof,

Market risk

The Company operates internationally and a portion of the business is transacted in several currencies
and consequently the Company is exposed to foreign exchange risk through its sales and services in those
countires. The exchange rate between the rupee and foreign currencies has changed substantially in recent
years and may fluctuate substantially in the future. Consequently, the results of the Company's operations
are affected as the rupee appreciates/ depreciates against these currencies. The company leaves exchange
rate risk with regard to foreign exposures unhedged when the local currency is depreciating against the
foreign currency and hedges this risk when the local currency is appreciating against the foreign currency.
Currently the foreign exchange risk of the company is covered through natural hedge and the Company
uses the foreign currency denominated accounts to mitigate the exchange rate variation.

For the year ended March 31,2025 and March 31,2024, the depreciation / appreciation in the exchange rate
between the Indian rupee and respective unhedged foreign currency exposures, has resulted in incremental
operating margins by approximate H1,042.65 lakhs and H632.40 lakhs respectively.

Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The
maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting
to ?38,603.05 lakhs and H35,585.75 lakhs as of March 31, 2025 and March 31, 2024, respectively. Trade
receivables are typically unsecured and are derived from revenue earned from customers primarily located
in India and overseas. Credit risk has always been managed by the company through credit approvals,
establishing credit limits and continuously monitoring the creditworthiness of customers to which the
company grants credit terms in the normal course of business. On account of adoption of Ind AS 109,
the company uses expected credit loss model to assess the impairment loss or gain. The company uses a
provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix
takes into account available external and internal credit risk factors and the companie's historical experience
for customers.

Credit risk on cash and cash equivalents is limited as the company generally invest in deposits with banks
and financial institutions with high credit ratings assigned by international and domestic credit rating
agencies with no history of default.

Liquidity risk

The company's principal sources of liquidity are cash and cash equivalents and the cash flow that is
generated from operations, The company also has long term and short term borrowings from banks and
financial institutions, Term loans are project specific and for refinancing of capital expenditures, Short term
loans repayable on demand from banks are obtained for the working capital requirements of the company,

As of March 31, 2025, the Company had a working capital of H88,663,48 lakhs including cash and cash
equivalents of H11,296,04 lakhs, As of March 31, 2024, the Company had a working capital of H73,412,20
lakhs including cash and cash equivalents of H22,057,47 lakhs,

As of March 31,2025 and March 31,2024, the outstanding gratuity and compensated absences were H449.75
lakhs and H294.77 lakhs, respectively, which have been substantially funded, Accordingly, no liquidity risk
is perceived,

interest rate risk

The interest rate risk is the risk that the fair value or the future cash flows of the companies financial
instruments will fluctuate because of the change in market interest rates, The company is exposed to
interest rate risks as it has significant interest bearing loans from banks and financial institutions, These
fluctuations are managed through negotiated and prefixed interest rates on term loans enabling the
management to plan its future financial commitments and exposures, Short term and Working capital
loans repayable on demand are a subject to prevailing market rate fluctuations and sanctioned facilities
are availed on a need to borrow basis to ensure minimun exposure to interest rate fluctuations,

Note: 30 Revenue recognition
Accounting policy:

i) Revenue from contracts with customers that meet the recognition criteria under paragraph 9 of ind AS 115
are recognised when (or as) a performance obligation is satisfied by transferring a promised good or service
to a customer, for the amount of the transaction price that is allocated to that performance obligation.

ii) Satisfaction of a performance obligation and recognition of revenue over time is followed when, transfer
of control of a good or service are made over time and, if one of the following criteria is met:

(a) the customer simultaneously receives and consumes the benefits provided by the entity's performance
as the entity performs.

(b) the entity's performance creates or enhances an asset (for example, work in progress) that the customer
controls as the asset is created or enhanced; or

(c) the entity's performance does not create an asset with an alternative use to the entity and the entity
has an enforceable right to payment for performance completed to date.

Performance obligations that are not satisfied over time are treated as performance obligations satisfied
at a point in time which in case of goods are upon their despatch/delivery to domestic customers as per
terms of sale and on the basis of proof of export/delivery for export customers as per terms of sale and in
case of services are upon completion of service.

There are no significant items of revenue to be recognised against performance obligation satisfied in
previous year due to change in transaction price.

Timing of satisfaction of performance obligations

For each performance obligation satisfied over time the company recognises revenue over time by
measuring the progress towards complete satisfaction of that performance obligation. The objective when
measuring progress is to depict the company's performance in transferring control of goods or services
promised to a customer (ie the satisfaction of an entity's performance obligation).

The right to payment for performance completed to date does not need to be for a fixed amount. However,
at all times throughout the duration of the contract, the company is entitled to an amount that at least
compensates for performance completed to date if the contract is terminated by the customer or another
party for reasons other than the company's failure to perform as promised.

Output method is used for measurement where the units produced or units delivered faithfully depict the
company's performance in satisfying a performance obligation and, at the end of the reporting period, the
companie's performance has produced work in progress or finished goods that are not controlled by the
customer.

Input method is used to recognise revenue where the company's efforts or inputs in satisfaction of a
performance obligation (for example, resources consumed, labour hours expended, costs incurred,
time elapsed or machine hours used) is relative to the total expected inputs to the satisfaction of that
performance obligation and depict the company's performance in transferring control of goods or services
to the customer.

Note: 34 Employee benefits
Accounting policy:

i) Short term benefits:

All employee benefits falling due within twelve months of rendering the service are classified as short
term employee benefits. The cost of the benefits like salaries, wages, medical, leave travel assistance, short
term compensated absences, bonus, exgratia, etc. is recognised as an expense in the period in which the
employee renders the related service.

ii) Post-employment benefits:

A) Defined contribution plans:

The contribution paid/payable under provident fund scheme, ESI scheme and employee pension
scheme is recognised as expenditure in the period in which the employee renders the related service.

B) Defined benefit plans:

The Company's obligation towards Gratuity is a defined benefit plan. The present value of the estimated
future cash flows of the obligation under such plan is determined based on actuarial valuation using
the Projected Unit Credit (PUC) method. Any difference between the interest income on plan assets
and the return actually achieved and any changes in the liabilities over the year due to changes in
actuarial assumptions or experienced adjustments within the plan are recognized immediately in other
comprehensive income and subsequently not reclassified to the statement of profit and loss.

All defined benefit plan obligations are determined based on valuation as at the end of the reporting
period, made by independent actuary using the PUC Method. The classification of the Company's net
obligation into current and non-current is as per the actuarial valuation report.

iii) Long term employee benefits:

The obligation for long term employee benefits such as long term compensated absences, is determined
and recognised in the manner similar to that stated in the defined benefit plan.

b) Defined benefit plan:

(i) Gratuity obligation of the Company :

To cover the employer's obligation towards gratuity, under the Payment of Gratuity Act, the
Company has obtained actuarial valuation of the said liability. As per the valuation made under
Projected Unit Credit (PUC) method by the Actuary, the fund required to be maintained, to cover
the present value of past service benefit and current service cost, is fully funded/provided for by
the Company. To meet the actual liability, the company has taken a group gratuity policy of the
LIC of India and to keep the policy alive, the Company also paid the annual risk premium and
recognised it as expense for the year.

Note: 35

Accounting policy:

Borrowing costs

i) Borrowing costs incurred for obtaining assets which take substantial period to get ready for their intended
use are capitalized to the respective assets wherever the costs are directly attributable to such assets and
in other cases by applying weighted average cost of borrowings to the expenditure on such assets.

ii) Other borrowing costs are treated as expense for the year.

iii) Significant transaction costs in respect of long-term borrowings are amortized over the tenor of respective
loans using effective interest rate (EIR) method.

38.3 Provision for extended producer responsibility:

Pursuant to the notification dated 22^nd August, 2022 issued by Ministry of Environment, Forest & Climate change
under the Battery waste management rules, 2022, the Company has the obligation of Extended Producer
Responsibility (EPR) to meet the collection and recycling and/or refurbishment of certain percentage of the
quantity of batteries placed in the market.The recovery of the minimum percentage is the percentage of total
weight of all recovered materials out of dry weight of the batteries. It also has the obligation to the minimum
use of the domestically recycled materials in the new battery. The Company can discharge the obligation by
purchasing the EPR certificates from the recycler or refurbish player. In accordance with the regulations, the
Company has made provision for the percentage of quantities placed for the period up to 31^st March 2025. The
obligation was discounted, and the net present value of the obligation worked out to H1,089.89 lakhs, of which
the comapny purchased EPR certificates worth H99.50 lakhs.

Note: 40 Current tax and deferred tax
Accounting policy:

i) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

ii) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profits differ from the profit
as reported in the statement of profit and loss because of items of income or expense that are taxable
or deductible in other years and items that are not taxable or deductible. The Company's current
tax is calculated using tax rates that have been enacted or substantively enacted upto the end of the
reporting period.

iii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all taxable temporary differences, Deferred tax assets are
generally recognised for all deductible temporary differences to the extent that it is probable that taxable
profits will be available against which those deductible temporary differences can be utilised,

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of
the asset to be recovered,

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period,

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
from the manner in which the Company expects, at the end of the reporting period, to recover or settle
the carrying amount of its assets and liabilities,

iv) Current and deferred tax for the year

Current and deferred tax are recognised in statement of profit or loss, except when they relate to items
that are recognised in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognised in other comprehensive income or directly in equity respectively,

income tax and Sales tax assessments:
income tax:

Taxes were paid in accordance with income tax returns filed and were charged off to revenue, In respect of
pending assessments, the liability, if any, that may arise upon completion of assessments is not ascertainable
at this stage, During the year, in the income tax assessments, there were no transactions that were not
recorded in the books of accounts but have been surrenderd or disclosed as income,

Sales tax:

The Company has paid/provided for VAT/CST as per the records and returns filed upto December 31,
2017 after considering the input VAT on purchases and also on the basis of concessional forms expected
to be received from customers, The related assessments for various years are pending at various stages in
different states, The liability, if any, in respect of such pending assessments is not ascertainable at this stage,

*The erstwhile promoters of M/s. SCIL infracon Private Limited filed a petition with the Sole Arbitrator making several new claims against
the Company and others. The Arbitration award allowed, only one claim of theirs, relating to Unsecured Loans of H208 lakhs to be paid
along with interest of 12% p.a., effective from 31.01.2011 till the date of the payment. On an appeal preferred by the Company against
the arbitral award, the Hon'ble Civil Court granted stay on the operation of the award on condition of depositing 50% of the amount
awarded with interest till date of the order. The Company deposited the 50% amount along with interest amounting to H271.02 lakhs
on 17^th April 2023 in compliance of the Hon'ble Civil Court's order as modified by the Hon'ble High Court. However, the appeal against
the arbitral award is yet to be decided by the Hon'ble Civil Court and the matter is still sub-judice. The company's legal counsel, based
on the facts of the case, opined that the claim is not admissible and is likely to be dismissed by the Hon'ble City Civil Court. Based on
the above facts, the claim is not acknowledged as debt against the company and is appropriately reported as a contingent liability.

The Company has other commitments, for purchase / sale orders which are issued after considering requirements
per operating cycle for purchase / sale of goods and services, employee benefits in the normal course of
business. The company does not have any long term committments or material non-cancellable contractual
committments / contracts, which might have material impact on the financial statements.

42.3 Commitment towards dividend

The Board in its meeting held on May 24, 2025 has recommended a dividend of HI/- per Equity Share of HI/- each
for the financial year ended March 31,2025. The proposal is subject to the approval of shareholders at the annual
general meeting to be held, and if approved would result in a cash outflow of H2,771.95 lakhs towards dividend.

42.4 Contingent assets:

During the year 2011, some assets at one of the plants of the Company, were damaged due to heavy rains. The
Company's claim for the loss was repudiated by the insurers. A case was filed for recovery of the claim of H234.60
lakhs towards loss sufferred apart from interest thereon. The matter is sub judice.

During the year 2014, there was a heavy damage to the assets and inventory at two plants of the Company, due
to hud-hud cyclone. The Company's claim for the resultant losses was partly allowed by the Insurers and the
balance claims were repudiated. The matter relating to the claim of H400 lakhs towards damage to assets and
inventory and H921.75 lakhs towards loss of profits, apart from interest thereon, on being referred to arbitration
was partly awarded infavour of the company. Subsequently on an appeal by the insurer further proceedings of
arbitration were stayed by the commercial Court. The matter is sub judice.

42.5 Confirmation of balances

The Company had sent letters seeking confirmation of balances to various parties under trade payables, trade
receivables, advance to suppliers and others and advance from customers. Based on the confirmations received
and upon proper review, corrective actions have been initiated and the amounts have been trued up, accounting
adjustments have been made wherever found necessary. Such confirmations are awaited from some parties,
comprising of government departments and public sector undertakings.

42.6

In the opinion of the board, assets other than fixed assets and non-current investments have a value, on
realisation in the ordinary course of business, which is at least equal to the amount at which they are stated in
the financial statements.

42.7Relationship with Struck off Companies:

The Company has engaged services of third party to carry out the exercise of machine matching of the names
of its active customers/vendors with the list of "Struck Off companies" hosted in the MCA website. There are no
reportable cases for the reporting period.

43.11 Disclosures relating to Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend
atleast two percent of its average net profits for the immediately preceding three years, on Corporate Social
Responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promotion
of education, art and culture, health care, destitute care and rehabilitation, environment sustainability, disaster
relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The
funds were utilized through the year on these activities which are specified in schedule VII of the Companies
Act, 2013.

a) Gross amount required to be spent by the Company during the year H414.89 Lakhs (Previous year H177.05 Lakhs).

b) Amount approved by the Board to be spent during the year H425.00 Lakhs (Previous year H200.00 Lakhs).

43.12

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current
year's classification / disclosure.

As per our report of even date annexed

For L N R Associates On behalf of the board

Chartered Accountants
FRN No. 05381S

Raghuram Vedula Dr A J Prasad M S S Srinath Kavita Prasad Aluru

Partner Chairman & Managing Director Whole-time Director Director

M.No: 242883 DIN : 00057275 DIN : 00319175 DIN : 00319292

UDIN : 25242883BMIRNE3619

Place : Hyderabad Sairam Edara GBS Naidu Place : Hyderabad

Date : May 24, 2025 Chief Financial Officer Company Secretary Date : May 24, 2025