n. Provisions, Contingent Liabilities & Contingent Assets
Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a 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. When the Company expects some or all of a provision to be reimbursed,
the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating
to a provision is presented in the statement of profit and loss net of any reimbursement.

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.

Contingent Liabilities

Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by the future events not wholly within the
control of the company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources
will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent liabilities are disclosed in the Financial Statements by way of notes to accounts, unless the possibility of an

outflow of resources embodying economic benefit is remote. Contingent liabilities are disclosed on the basis of judgment of
the management/independent experts. These are reviewed at each balance sheet date and are adjusted to reflect the current
management estimate.

Warranty provisions

Product warranty expenses are estimated by the management on the basis of technical evaluation and past experience. Provision
is made for estimated liability in respect of warranty cost in the period of recognition of revenue.

Contingent Assets

Contingent assets are not recognised in financial statements. A contingent asset is disclosed where an inflow of economic
benefits is probable. Contingent assets are assessed continually and, if it is virtually certain that an inflow of economic benefits
will arise, the assets and related income are recognised in the period in which the change occurs.

o. Statement of cash flows

Cash flows are reported using the indirect method, whereby 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 or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows are segregated into operating, investing and financing activities.

p. Earnings per share (EPS)

Basic EPS is calculated by dividing the profit / (loss) for the year attributable to ordinary equity holders by the weighted average
number of equity shares outstanding during the year, adjusted for bonus elements in equity shares issued during the year.

Diluted EPS is calculated by dividing the profit /(loss) attributable to ordinary equity holders of the parent by the weighted average
number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be
issued on conversion of all the dilutive potential ordinary shares into ordinary shares. The company did not have any potential
dilutive securities in the years presented.

2.6. Critical Accounting Judgments, Assumptions and Key Sources of Estimation Uncertainty

The preparation of the Company's financial statements requires management to make judgments, 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.

Judgments

In the process of applying the Company's accounting policies, management has made the following judgments, which have the
most significant effect on the amounts recognized in the financial statements:

• Note-3 - Impairment of Assets.

• Note - 37(b) - Allowance of Expected credit Loss

• Note - 2.5(i) & 25 - Identification of performance obligation in revenue recognition

Assumptions and Estimation Uncertainties

Fair value measurement

In measuring the fair value of certain assets and liabilities for financial reporting purpose, the Company uses market observable
data to the extent available. Where such Level 1 inputs are not available, the Company engages third party qualified valuers
to establish appropriate valuation techniques and inputs to the model. The inputs to these models are taken from observable
markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments
include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors
could affect the reported fair value of financial instruments.

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.

Defined benefit obligation (DBO)

Management's estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation,
medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may
significantly impact the DBO amount and the annual defined benefit expenses.

Taxes

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

Allowance for uncollectible trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for
estimated irrecoverable amounts. Estimated irrecoverable amounts are based on the ageing of the receivable balance and
historical experience. Individual trade receivables are written off when management deems them not to be collectible.

Warranty Provision

The company generally offers 12 months warranties for the product sold. Management estimates the related provision for
future warranty claims based on historical warranty claim information as well as recent trends that might suggest that past cost
information may differ from future claims. The assumptions made in relation to the current period are consistent with those in
the prior periods. Factors that could impact the estimated claim information include the success of the company's productivity
and quality initiatives.

Property, plant and equipment

Refer Note 2.5 (a) for the estimated useful life of Property, plant and equipment. The carrying value of Property, plant and
equipment has been disclosed in Note 3 .

Litigations

From time to time, the Company is subject to legal proceedings and 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 judgment is made when evaluating, among other factors,
the probability of unfavourable outcome and the liability to make a reasonable estimate of the amount of potential loss. Provision
for litigations are reviewed at the end of each accounting period and revisions made for the changes in facts and circumstances.

Recent 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 31^st March 2025, MCA has not notified any new
standards or amendments to the existing standards applicable to the Company.

NOTE 17.2 : DIVIDEND PROPOSED

The Board of Directors in their meeting held on April 23, 2025 have recommended a final dividend of Rs. 5 per Equity Share (previous
year Rs.5 per equity share) to be approved by the shareholders in the ensuing general meeting. On approval, this will result in an
outflow of Rs. 288.42 Lakhs (Previous year Rs. 288.42 Lakhs).

NOTE 17.3 : DESCRIPTION OF RESERVES

1. Capital reserve

Capital reserve is of capital nature. Capital reserves are not freely available to distribute among share holders as dividend.

2. Securities premium

Security premium is used to record the premium received on issuse of shares. It is utilised in accordance with the provisions of
the Companies Act 2013.

3. General reserve

General Reserve represents appropriation of retained earning and are available for distribution to shareholders.

4. Retained earnings

Retained earning represents surplus/accumulated earning of the Company and is available for distribution to shareholders.

NOTE 37 : FINANCIAL INSTRUMENTS

The Company's principal financial liabilities comprise trade & other payables. The main purpose of these financial liabilities is to
finance the Company's operations and to support its operations. The Company's principal financial assets include Investments, trade
and other receivables and cash & short-term deposits that derive directly from its operations.

The following disclosures summarize the Company's exposure to financial risks and information regarding use of derivatives employed
to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible
changes in market rates on the financial results. cash flows and financial position of the Company.

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. such as equity
price risk and commodity risk. Financial instruments affected by market risk include borrowings, deposits, Investments, trade
and other receivables, trade and other payables.

Within the various methodologies to analyse and manage risk, the Company has implemented a system based on "sensitivity
analysis" on symmetric basis. This tool enables the risk managers to identify the risk position of the Company. Sensitivity
analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met
under a specific set of assumptions. The risk estimates provided here assume:

The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions
and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of Profit
and Loss may differ materially from these estimates due to actual developments in the global financial markets.

The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other post-retirement
obligations and provisions.

The following assumption has been made in calculating the sensitivity analyses:

- The sensitivity of the relevant Statement of Profit or Loss item is the effect of the assumed changes in respective market
risks. This is based on the financial assets and financial liabilities held at 31-March-2025 and 31-March-2024.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company does not have any borrowings with floating interest rate. Hence, the Company does not
have any interest rate risk at present.

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 transacts business in local currency and in foreign currency, primarily in USD, GBP
and EUR. Consequently, the Company has foreign currency trade payables and receivables etc. and is, therefore, exposed to
foreign exchange risk. However, exposure to foreign currency is not material and hence, foreign currency risk is assessed by
the Company is low.

Equity price risk

The Company's investment consists of investments in publicly traded companies held for purposes other than trading. Such
investments held in connection with non-consolidated investments represent a low exposure risk for the Company and are not
hedged.

(b) Credit Risk

Credit risk is the risk that a 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 from its operating activities (primarily trade receivables) and from its
financing activities, including deposits with banks and other financial instruments.

Trade Receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control
relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 30 days to 90 days
credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables
are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed both
economically and geographically.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number
of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based
on actual incurred historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each
class of financial assets disclosed in Note 6. The Company does not hold collateral as security. The Company evaluates the
concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries
and operate in largely independent markets.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance
with the Company's policy. Investments of surplus funds are made only with approved counterparties who meet the minimum
threshold requirements under the counterparty risk assessment process. The Company monitors the ratings, credit spreads
and financial strength of its counterparties. Based on its on-going assessment of counterparty risk, the Company adjusts its
exposure to various counterparties. The Company's maximum exposure to credit risk for the components of the Balance Sheet
as on 31-March-2025 and 31-March-2024 is the carrying amount as disclosed in Note 35.

(c) Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without
incurring unacceptable losses. The Company's objective is to at all times maintain optimum levels of liquidity to meet its cash
and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management
system. It maintains adequate sources of financing, including bilateral loans, debt and overdraft from domestic banks at an
optimised cost. It also enjoys strong access to domestic capital markets across equity.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted
payments:

NOTE 38 : CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable
to the equity holders of the Company. The primary objective of the Company's capital management is to ensure that it maintains an
efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or its business
requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return
capital to shareholders or issue new shares. 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 short-term
deposits (including other bank balance).

NOTE 46 : LEASE TRANSACTIONS

The Company has elected below practical expedients while applying Ind AS 116:

1. Applied the exemption not to recognise right of use assets and lease liabilities with less than 12 months of lease term on the
date of initial application.

2. Excluded the initial direct costs from the measurement of right of use asset at the date of initial application.

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified assets for a period of time
in exchange for consideration.

The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all the assets that have a lease
term of twelve 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 on a straight line basis over the lease term.

NOTE 47 : OTHER DISCLOSURES WITH RESPECT TO SCHEDULE III

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

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

c. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237of the Companies
Act, 2013.

d. 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.

e. The company have not traded or invested in Crypto currency or Virtual Currency during the year.

f. The company does not have any transactions with companies struck off.

g. The company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

h. The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities

(Intermediaries) with the understanding that the Intermediary shall:

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

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

i. The company have 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.

NOTE 48 : The Company operates in one segment i.e. Machinery and Spares

NOTE 49 : The previous year's figures have been regrouped / rearranged wherever necessary to make it comparable with the
current year.

As per our report of even date attached

For K C MEHTA & CO LLP For and on behalf of the Board of Directors

Chartered Accountants Eimco Elecon (India) Limited

(Firm's Registration No. : 106237W/W100829) CIN : L29199GJ1974PLC002574

Neela R. Shah Mukulnarayan Dwivedi Prayasvin B. Patel

Partner Executive Director Executive Director

Membership No. 045027 DIN : 08442155 DIN : 00037394

Vishal C. Begwani Rikenkumar Dalwadi

Chief Financial Officer Company Secretary

Place : Vallabh Vidyanagar Place : Vallabh Vidyanagar

Date : 23^rd April, 2025 Date : 23^rd April, 2025