21. Provisions, Contingent Liabilities and Contingent

Assets

a) Provisions

i) 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.

Provisions are measured using the cash
flows estimated to settle the present
obligation and when the effect of time
value of money is material, Provisions are
determined by discounting the expected
future cash flows (representing the best
estimate of the expenditure required to settle
the present obligation at the balance sheet
date) at a pre-tax rate that reflects current
market assessments of the time value of
money and the risks specific to the liability.
The unwinding of the discount is recognized
as finance cost. Reimbursement expected
in respect of expenditure required to settle
a provision is recognised only when it is
virtually certain that the reimbursement will
be received.

ii) Decommissioning Liability

Restoration/ Rehabilitation/

Decommissioning cost are provided for in
the accounting period when the obligation
arises based on the NPV of the estimated
future cost of restoration to be incurred. It
includes the dismantling and demolition
of infrastructure and removal of residual
material. This provision is based on all
regulatory requirements and related
estimated cost based on best available
information.

iii) Onerous Contracts

Present obligations arising under onerous
contracts are recognized and measured
as provisions. An onerous contract is
considered to exist when a contract under
which the unavoidable costs of meeting the
obligations exceed the economic benefits
expected to be received from it.

b) Contingent Liabilities

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. A contingent liability also arises
in extremely rare cases where there is a
liability that cannot be recognized because it
cannot be measured reliably. The Company
does not recognize a contingent liability but
discloses its existence in the standalone
financial statements.

c) Contingent Assets

Contingent assets usually arise from
unplanned or other unexpected events that
give rise to the possibility of an inflow of
economic benefits. Contingent Assets are
not recognized though are disclosed, where
an inflow of economic benefits is probable.

22. Operating Segment

The identification of operating segment is consistent with
performance assessment and resource allocation by the
chief operating decision maker. An operating segment is
a component of the Company that engages in business
activities from which it may earn revenues and incur
expenses including revenues and expenses that relate
to transactions with any of the other components of the
Company and for which discrete financial information is
available. All operating segment's operating results are
reviewed regularly by the chief operating decision maker
to make decisions about resources to be allocated to
the segments and assess their performance.

23. Employee Share based payment

Equity- settled share-based payments to employees
are measured at the fair value of the employee stock
options at the grant date. The fair value of option at the
grant date is expensed over the vesting period with a
corresponding increase in equity as “Employee Stock
Options Account”. In case of forfeiture of unvested
option, portion of amount already expensed is reversed.
In a situation where the vested option forfeited or
expires unexercised, the related balance standing to
the credit of the “Employee Stock Options Account” are
transferred to the “General Reserve”. When the options
are exercised, the Company issues new equity shares
of the Company of '1/- each fully paid-up. The proceeds
received and the related balance standing to credit of
the Employee Stock Options Account, are credited to
share capital (nominal value) and Securities Premium
Account.

24. Measurement of Fair Values

A number of the Company's accounting policies and
disclosures require the measurement of fair values, for
both financial and non-financial assets and liabilities.
Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

a) In the principal market for the asset or liability, or

b) In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company. The fair value of an asset
or a liability is measured using the assumptions that
market participants would use when pricing the asset
or liability, assuming that market participants act in
their economic best interest. A fair value measurement
of a non-financial asset takes into account a market
participant's ability to generate economic benefits by
using the asset in its highest and best use or by selling
it to another market participant that would use the asset
in its highest and best use.

25. Non-Current Assets held for sale

The Company classifies non-current assets as held for
sale if their carrying amounts will be recovered principally
through as sale rather than through continuing use of
the assets and actions required to complete such sale
Indicate that it is unlikely that significant changes to the
plan to sell will be made or that the decision to sell will
be withdrawn. Also, such assets are classified as held
for sale only if the management expects to complete the
sale within one year from the date of classification. On-
current assets classified as held for sale are measured
at the lower of their carrying amount and the fair value
less cost to sell. Non-current assets are not depreciated
or amortized.

26. Events after Reporting date

Where events occurring after the Balance Sheet date
provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is
adjusted within the financial statements. Otherwise,
events after the Balance Sheet date of material size or
nature are only disclosed.

27. Research and Development

Expenditure on research is recognized as an expense
when it is incurred. Expenditure on development which
does not meet the criteria for recognition as an intangible
asset is recognized as an expense when it is incurred.
Items of property, plant and equipment and acquired
Intangible Assets utilized for Research and Development
are capitalized and depreciated in accordance with the
policies stated for Property, Plant and Equipment and
Intangible Assets.

The Company's employee benefits primarily cover provident fund, gratuity and leave encashment.

Provident fund is a defined contribution scheme and the company has no further obligation beyond the contribution made
to the fund. Contributions are charged to the Profit & Loss account in the year in which they accrue. Gratuity liability is a
defined benefit obligation and is based on the actuarial valuation done. The gratuity liability and the net periodic gratuity
cost is actually determined after considering discounting rates, expected long term return on plan assets and increase in
compensation level. All actuarial gain/ losses are immediately charged to the Profit & Loss account and are not deferred.

Factors used to identify the reportable segments.

The Company has following business segments, which are its reportable segments. These segments offer different
products and services and are managed separately because they require different technology and production process.
Operating segment disclosures are consistent with the Information.

The carrying amount of financial assets and financial liabilities measured at amortized cost in the financial statements are
a reasonable approximation of their fair values since the company does not anticipate that the carrying amount would be
significantly different from the values that would eventually be received or settled.

48. financial risk management objectives and policies

The Company's principal financial liabilities other than derivatives comprise long-term and short-term borrowings, capital
creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Company's
operations. The Company's principal financial assets other than derivatives include trade and other receivables, cash and
cash equivalents and deposits that derive directly from its operation.

The Company is exposed to market, credit, liquidity and regulatory risks. The Company's senior management oversees
the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks,
which are summarised below :

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: commodity risk, interest rate risk and foreign
currency risk.

(i) Commodity Price Risk

Company is affected by the price volatility of certain commodities, primarily, Solar Module. Its operating
activities require the on-going purchase of these materials. The company has arrangement to pass-through
the increase/decrease in this material price through price variance clause in majority of the contract.

(ii) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rate
relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign
currency). Further, the Company has foreign currency risk on import of input materials, capital commitment
and also borrows funds in foreign currency for its business. The Company evaluates the impact of foreign
exchange rate fluctuations by assessing its exposure to exchange rate risks. Certain transactions of the
Company act as a natural hedge as a portion of both assets and liabilities are denominated in similar foreign
currencies, for the remaining exposers to foreign exchange risks, the Company adopts a policy of selective
hedging based on risk perception of management using derivative, whenever required, to mitigate or eliminate
the risks.

(iii) Interest Rate risk

The Company is exposed to interest rate risk on financial liabilities such as borrowings, both short-term and
long-term. It maintains a balance of fixed and floating interest rate borrowings and the proportion is determined
by current market interest rates, projected debt servicing capability and view on future interest rates.

B. Credit Risk

Financial Asset of the Company include trade receivables, employee advances and bank deposits which represents
Company's maximum exposure to the credit risk.

With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection
losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience

in payment and other relevant factors. The Company's exposure to credit risk is influence mainly by the individual
characteristics of each customer. However, management also considers the factors that may influence the credit
risk of its customer base, including default risk associated with the industry and country in which customers operate.
Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits
are defined in accordance with this assessment. With respect to other financial risk via loan and advances, deposit
with government, the credit risk is insignificant since the loans and advances are given to its employees only and
deposits are held with reputable banks. The credit quality of the financial assets is satisfactory, taking into account
the allowance for credit losses.

C. Regulatory Risks

he Company performance may be impacted due to change in Regulatory Environment. The Company is closely
monitoring the regulatory developments and risks thereof and proactively implementing course correction for proper
compliance commensurate with new regulatory requirements.

49. 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 maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders. 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, trade and other payables,
less cash and cash equivalents.

51. Other Statutory Information

A. RELATIONSHIP WITH STRUCK OFF COMPANIES

The company do not have any transactions with company's struck off under Section 248 of the Companies Act,
2013 or Section 560 of the Companies Act, 1956 during the year ended 31st March, 2025 (Previous year: Nil).

B. DISCLOSURE IN RELATION TO UNDISCLOSED INCOME

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

C. DETAILS OF BENAMI PROPERTY HELD

The Company do not hold any property under Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules
made thereunder, hence there are no proceedings against the company for the year ended 31st March, 2025 and
also for the year ended 31st March, 2024.

D. REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

The Company does not have any charges or satisfaction, which are yet to be registered with ROC beyond the
statutory period, during the year ended 31st March, 2025 and also during the year ended 31st March, 2024.

E. DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The company have not traded or invested in crypto currency or virtual currency during the year ended 31st March,
2025 and also during the year ended 31st March, 2024.

F. UTILISATION OF BORROWED FUND AND SHARE PREMIUM

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.

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.

G. The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

52. In respect of financial year commencing on or after 01^st April 2023, the Company has used accounting software for
maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated
throughout the year for all relevant transactions recorded in the software and the audit trail feature has not been tampered
with. Further, the audit trail has been and will be preserved by the company as per the statutory requirements for record
retention under Rule 11(g) of the Companies (Audit and Auditors) Rule, 2014 for the financial year ended 31^st March
2025.

53. Previous year's figures have been regrouped and rearranged, wherever found necessary

Following changes has been done in the comparative period (as at March 31,2023) which is not material qualitatively and
quantitatively to the Company's prior period financial statements.

(A) Re- classification in “Balance Sheet”:

Borrowings (Current - "109.24 lacs) it was earlier shown under Current Liabilities are now shown under Non -
Current Liabilities being long term in nature for better presentation

As per our report of even date attached For and on behalf of the BOD of Surana Telecom and Power Ltd

For Luharuka & Associates
Chartered Accountants
Firm Reg No - 01882S

Arun Luharuka Narender Surana Advait Surana

Partner Managing Director Director

M. No. 021869 DIN:00075086 DIN:08971109

T.R. Venkataramanan Arcot Ganeshan Monisha

Place: Secunderabad CFO & WTD Company Secretary

Date: 20th May, 2025 DIN: 08749253 M. No. A75073