2.15 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and
it is probable that an outflow of resources will be required to settle the obligation in respect of which
a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their
present value and are determined based on the best estimate of the consideration required to settle
the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets
are not recognised in the financial statements.

2.16 Leases

From April 1, 2019, leases are recognised as a right-of-use asset and a corresponding liability is
recognised at the date at which the leased asset is available for use by the Company. Assets and
liabilities arising from a lease are initially measured on present value basis. Lease liability include the
net present value of the following payments:

a) fixed payments (including in substance fixed payments), less any lease incentives receivable

b) variable lease payments that are based on an index or a rate, initially measured using the index
or rates at the commencement date

c) amounts expected to be payable by the Company under residual value guarantees

d) the exercise price of purchase options if the Company is reasonably certain to exercise that option

e) payment of penalties for terminating the lease, if the lease term reflects the Company exercising
that option

Lease payments to be made under reasonably certain extension options are also included in the
measurement of the liability. The lease payments are discounted using the interest rate implicit in the
lease. If that rate cannot be readily determined, the Company's incremental borrowing rate is used,
being the rate the Company would have to pay to borrow fund necessary to obtain an asset of similar
value to the right-of-use asset in a similar economic environment with similar terms, security and
conditions.

Lease payments are allocated between principal and finance cost. The finance cost is charged to
statement of profit and loss over the lease period so as to produce a constant periodic rate of interest
on the remaining balance of the liability for each period.

Right-of-use assets are measured at cost comprising the following:

a) the amount of initial measurement of lease liability

b) any lease payments made at or before the commencement date less any incentives received

c) any initial direct costs and

d) restoration costs

Right-of-use assets are generally depreciated over the shorter of asset's useful life and the lease term
on a straight line basis. If the Company is reasonably certain to exercise a purchase option, the right-
of-use asset is depreciated over the underlying asset's useful life.

Payments associated with short-term leases of equipment and all leases of low-value assets are
recognised on a straightline basis as an expense in statement of profit and loss. Short term leases are
leases with a lease term of 12 months or less.

2.17 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) for the year by the weighted average
number of equity shares outstanding during the year. Diluted earnings per share (if any) is computed by
dividing the profit / (loss) for the year as adjusted for dividend, interest and other charges to expense
or income relating to the dilutive potential equity shares, by the weighted average number of equity
shares considered for deriving basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive potential equity shares.

2.18 Operating Cycle

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

26.4 Employee benefit plans

Defined contribution plans

In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect
of provident fund, a defined contribution plan, in which both employees and the Company make monthly
contributions at a specified percentage of the covered employees' salary. The contributions, as specified
under the law, are made to the Provident Fund.

The total expense recognised in profit or loss of Rs. 359.24 Lakhs for the year ended March 31,2025: (Last
year - Rs.351 Lakhs) represents contribution paid to these plans by the Company at rates specified in the
rules of the plan.

Defined benefit plans
a) Gratuity

Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, gratuity is computed
by multiplying last drawn salary (basic salary including dearness Allowance if any) by completed years
of continuous service with part thereof in excess of six months and again by 15/26. The payment of
Gratuity Act, 1972, provides for a vesting period of 5 years for withdrawal and retirement and a monetary
ceiling on gratuity payable to an employee on separation, from time to time.

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk
and salary risk.

2. Reviewing the Company's financial and risk management policies;

3. Assessing risk and minimizing the procedures;

4. Framing, implementing and monitoring the risk management plan.

The Company's risk management policies are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions and the
Company's activities. The Company, through its training and management standards and procedures, aims
to maintain a disciplined and constructive control environment in which all employees understand their roles
and obligations.

The Risk management Committee oversees how management monitors compliance with the Company's
risk management policies and procedures, and reviews the adequacy of the risk management framework in
relation to the risks faced by the Company. The Risk management Committee is assisted in its oversight role
by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls
and procedures, the results of which are reported to the audit committee.

The company has exposure to the following risks arising from its financial risk management:

Credit risk
Liquidity risk
Commodity price risk
Foreign currency risk

The Company manages its financial operations with its own accruals and hence is not subject to interest
rate risk. The company manages its working capital with its own stock and debtors. However, the overdraft/
cash credit facility from our bankers are utilised to manage the working capital gap as and when required.
The company does not forsee any requirement for long term funding in the near future.

Credit risk management

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company's trade receivables, deposits
and other financial assets.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business.
The company has established a strong liquidity damage agreement with its customers. The normal credit
period for trade receivable is 15 days and any settlement beyond 15 to 90 days and thereafter the same
is compensated by an agreed interest on outstanding amounts.

The company based on internal assessment which is driven by the historical experience and current facts
available in relation to default and delays in collection thereof, has decided not to make any provision for
the expected credit loss of trade receivables. The company does not forsee any requirement to create the
allowance matrix considering the past trend and future operations.

Liquidity risk management

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach
to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or

risking damage to the company's reputation. The average credit period for purchase of materials and traded
products ranges from 30 to 60 days and the company settles the significant portion of the obligation within
the aforesaid credit period. The company's working capital is adequately supported by Stock, Book debts
and Bank overdraft/ CC facilities.

Commodity price risk management

The Company is exposed to commodity price risk, mainly in respect of Zinc, which is a key raw material in
the manufacture of batteries. The price risk is linked to fluctuations in London Metal Exchange (LME). The
Company manages the price risk by entering into a average price agreeement with the vendor.

Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange
rate fluctuations arise. The company has the policy of settling the foreign exchange exposure within 5 to 10
days to mitigate the foreign currency risk.

26.13 Fair value measurements

The company has not recognised any financial asset / liability at fair value. The directors consider that the
carrying amounts of financial assets and financial liabilities that are recognised in the financial statements
approximate their fair values.

26.14 Supreme Court ruling on Provident Fund

With regard to the Supreme Court ruling on the applicability of provident fund on all fixed allowances payable
to employees, pending clarity on the matter, no provision is made in the books. Necessary provision will
be made once the circular is issued / communication is received by the Company from the Provident Fund
Authorities.

26.15 Labour Code - Transition related

The Central Government has published the Code on Social Security, 2020 and Industrial Relations Code,
2020 ("the codes") in the Gazette of India, interalia, subsuming various existing labour and industrial laws
which deals with employees including post employment period. The Ministry of labour and employment has
released draft rules for the Code on Social Security 2020 on November 13, 2020 which are yet to be notified.
The company will assess and evaluate the impact once the subject rules are notified and will appropriately
consider the same in its financial statements in the period in which the Code becomes effective.

26.16 Loans or advances (repayable on demand or without specifying any terms or period of repayment)
to specified persons

During the year ended March 31,2025 the Company did not provide any Loans or advances which remains
outstanding (repayable on demand or without specifying any terms or period of repayment) to specified
persons (Nil as on March 31, 2024).

26.17 Relationship with Struck off Companies

The Company did not have any transaction with companies struck off during the year ended March 31,
2025 and also for the year ended March 31, 2024.

26.18 Disclosure in relation to undisclosed income

The Company does not have any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year ended March 31, 2025 and March 31, 2024 in
the tax assessments under the Income Tax Act, 1961 (Such as, search or survey and any other relevant
provisions of the Income Tax Act, 1961).

26.19 Details of Benami Property held

The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company, during the year ended, March 31,2025 and March 31,2024 for holding any Benami
Property.

26.20 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended
March 31,2025 and March 31,2024.

26.21 Utilisation of Borrowed Fund & Share Premium

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.

The Company has not advanced or lent 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.

26.22 Registration of charges or satisfaction with register of companies

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

26.23 Compliance with Number of layers of companies

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

26.24 Event occuring after the reporting date

The Board of directors of lndo National Limited at its meeting held on 15th July 2024 had approved the
proposal for amalgamation of Helios Strategic Systems ltd, wholly owned subsidiary into lndo National
Limited under Sections 230 to 234 of the Companies Act, 2013 and other provisions of the Companies
Act 2013. Accordingly an application was made to the Hon'ble NCL T , Chennai Branch . The company
has received an order dated 29-04-2025 from NCLT, Division Bench 11, Chennai allowing this application
and providing directions to be followed by the companies . The amalgamation Order is subject to requisite
statutory and regulatory approvals .

26.26 Figures of the previous year have been regrouped/rearranged wherever considered necessary.

26.27 Approval of Financial Statement

The financial statements were approved for issue by the board of directors on May 20, 2025

As per Audit report attached For and on behalf of the Board of Directors

For G Balu Associates LLP P. Dwaraknath Reddy P. Aditya Reddy

Chartered Accountants Managing Director Joint Managing Director

Firm Registration Number : 000376S/S200073 (DIN: 00277929) (DIN: 00482051)

R. Ravi Shankar C.R. Sivaramakrishnan J. Srinivasan

Partner Chief Financial Officer Company Secretary

Membership Number : 026819
Place : Chennai
Date : 20^th May, 2025