(o) Provisions and contingencies

Provisions

A provision is recognized when the Company has a
present obligation as a result of a past event 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. The amount recognized as a
provision is the best estimate of the consideration
required to settle the present obligation at the end
of the reporting period, taking into account the risks
and uncertainties surrounding the obligation.

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.

Warranty provisions

The estimated liability for product warranties is
recorded when products are sold / or the project is

completed. These estimates are established using
historical information on the nature, frequency, and
average cost of warranty claims and management's
estimates regarding possible future incidence based
on corrective actions on product failures. The timing
of outflows will vary as and when warranty claims
arise typically up to five years.

Contingencies

Contingent liabilities exist when there is a possible
obligation arising from past events, the existence
of which 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,
or a present obligation that arises from past events
where it is either not probable that an outflow of
resources will be required to settle the obligation or
the amount cannot be reliably estimated. Contingent
liabilities are appropriately disclosed unless the
possibility of an outflow of resources embodying
economic benefits is remote.

Contingent assets are not recognized in the financial
statements. However, where an inflow of economic
benefits is probable, the Company discloses the same
in the financial statements.

Environment liabilities

E-Waste (Management) Rules 2022, as amended,
requires the Company to complete the Extended
Producer Responsibility targets (EPR) measured
based on sales made in the preceding 10th year.
Accordingly, the obligation event for e-Waste
obligation arises only if Company participate in the
markets in such years.

(p) Segment reporting

Segments are identified based on how the chief
operating decision-maker (CODM) decides about the
resource allocation and reviews performance.

Segment revenue, segment expenses, segment
assets, and segment liabilities have been identified
to segments on the basis of their relationship to the
operating activities of the segment.

Segment revenue resulting from transactions with
other business segments is accounted for based on
the transfer price agreed between the segments.

Such transfer prices are either determined to yield a
desired margin or agreed on a negotiated basis.

Revenue, expenses, assets, and liabilities which relate
to the Company as a whole and are not allocable
to segments on a reasonable basis have been
included under ""unallocated revenue/expenses/
assets/ liabilities"".

(q) Earnings per share

The Companies Earnings per Share ('EPS') is
determined based on the net profit attributable to
the equity shareholders of the Company.

Basic earnings per share are calculated by dividing
the profit from continuing operations and total
profit, both attributable to equity shareholders of the
company by the weighted average number of equity
shares outstanding during the year.

Diluted earnings per share are computed using the
weighted average number of common and dilutive
shares outstanding during the year including share-
based payments, except where the result would
be anti-dilutive.

(r) Borrowing Costs

Borrowing costs directly attributable to the
acquisition, construction, or production of an asset
that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalized
as part of the cost of the asset. All other borrowing
costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs
that an entity incurs in connection with the borrowing
of funds. Interest on Borrowing is calculated using
Effective Interest Rate (EIR) method and is recognised
in profit or loss.

(s) 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 a sale rather than through
continuing use of the assets and actions required to
complete such sale. 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.

Non-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 amortised.

(t) Current / Non-current classification

The Company presents assets and liabilities in
the balance sheet based on current/ non-current
classification. An asset is treated as current when it is:

• Expected to be realised or intended to be sold or
consumed in normal operating cycle,

• Held primarily for the purpose of trading,

• Expected to be realised within twelve months
after the reporting period, or

• Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal
operating cycle,

• It is held primarily for the purpose of trading,

• It is due to be settled within twelve months after
the reporting period, or

• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

The operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash and cash equivalents. The entity's
operating cycle is twelve months.

The Company classifies all other liabilities
as non-current.

Deferred tax assets and liabilities are classified as
noncurrent assets and liabilities.

(u) Contract balances

Contract assets

A contract asset is initially recognised for revenue
earned from project business because the receipt of
consideration is conditional on successful completion
of the work. Upon completion of the work and
acceptance by the customer. The amount recognised
as contract assets is reclassified to trade receivables

once the amounts are billed to the customer
as per the conditions of the contract. Contract
assets are subject to impairment assessment. Refer
to accounting policies on impairment of financial
assets in section L 'Impairment.

Trade receivables

A receivable represents the Group's right to an amount
of consideration that is unconditional (i.e., only the
passage of time is required before payment of the
consideration is due). Refer to accounting policies of
financial assets in section M 'Financial instruments' -
initial recognition and subsequent measurement.

Contract liabilities

A contract liability is the obligation to transfer
goods or services to a customer for which the
Group has received consideration (or an amount
of consideration is due) from the customer. If a
customer pays consideration before the Group
transfers goods or services to the customer, a contract
liability is recognised when the payment is made, or
the payment is due (whichever is earlier). Contract
liabilities are recognised as revenue when the Group
performs under the contract.

Recent accounting pronouncements

New and amended IND AS effective from April
01, 2024

'The Ministry of Corporate Affairs ("MCA") notifies
new standards or amendments to the existing
standards under the 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 effective
from April 01, 2024. The Company has evaluated the
new pronouncements or amedments and there is no
impact on its Financial Statements.

New and amended IND AS issue but not yet effective

The Ministry of Corporate Affairs (MCA) notifies new
standards or amendments to the existing standards.
There is no such notification which will be applicable
from April 01, 2025.

3. CRITICAL ACCOUNTING JUDGEMENTS
AND KEY SOURCES OF ESTIMATION
UNCERTAINTY

The preparation of the Company's standalone
financial statements requires Management to make
judgements, estimates, and assumptions about
the reported amounts of assets and liabilities, and,
income and expenses that are not readily apparent
from other sources. Such Judgements, estimates,
and associated assumptions are evaluated based on
the Company's historical experience, existing market
conditions, as well as forward-looking estimates
including estimation of the effects of uncertain
future events, which are believed to be reasonable
under the circumstances. Actual results may differ
from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized
in the period in which the estimate is revised if the
revision affects only that period or in the period of
the revision and future periods if the revision affects
both current and future periods.

The following are the critical judgements and
estimations that have been made by the management
in the process of applying the Company's accounting
policies and that have the most significant effect on
the amount recognized in the standalone financial
statements and/or key sources of estimation
uncertainty that may have a significant risk of causing
a material adjustment to the carrying amounts of
assets and liabilities within the next financial year"

Expected cost of completion of contracts

For the purpose of arriving at Revenue from
construction contracts, the Company's Management
estimates the cost to completion for each project.
Management systematically reviews future projected
costs and compares the aggregate of costs incurred
to date and future cost projections against budgets,
based on which, proportionate revenue (or
anticipated losses), if any, are recognised.

Contract variations

Contract variations are recognised as revenue to
the extent that it is probable that they will result
in revenue which can be reliably measured and is

probable that the economic benefits associated
will flow to the Company. This requires the exercise
of judgement by management, based on prior
experience, the contract terms, manner and terms of
settlement, etc.

Rebates and discounts

The Company provides rebates and discounts to its
dealers and channel partners based on an expectation
of volumes to be achieved and parameters such as
exclusivity in marketing the products of the Company,
quality of showroom among other parameters. This
involves a certain degree of estimation of whether
all the parameters to provide discounts have been
achieved. Provision for discount and rebates is
based on the Company's past experience of volumes
achieved vis-a-vis targets and expected volumes to
be achieved for the year.

Warranties

Provision for warranty costs in respect of products
sold that are still under warranty is based on the best
estimate of the expenditure that will be required
to settle the present obligation at the end of the
reporting period.

Inventory

The Company has a defined policy for provision
of slow and non-moving inventory based on the
ageing of inventory. Obsolete and other non-saleable
inventory are adjusted to reflect the recoverable
value of inventory.The Company reviews the policy at
regular intervals.

Useful lives of property, plant and
equipment and intangible assets

Management reviews the useful lives of property,
plant, and equipment and intangible assets at
least once a year. The lives are dependent upon an
assessment of both the technical lives of the assets
and also their likely economic lives based on various
internal and external factors including relative
efficiency and operating costs and anticipated
technological changes. Accordingly, depreciable lives
are reviewed annually using the best information
available to the Management.

Employee benefit plans

The present value of defined benefit obligations is
determined on an actuarial basis using underlying
assumptions, including the discount rate, mortality
rate and expected increase in salary costs. Any
changes in these assumptions will impact the
carrying amount of obligations.

Fair value measurement of financial
instruments

When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques
including the DCF model. The inputs to these models
are taken from observable markets where possible,
but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements
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.

Intangible asset under development

The Company capitalizes intangible assets under
development for a project in accordance with
the accounting policy. The initial capitalization
of costs is based on management's judgement
that technological and economic feasibility is
confirmed, usually when a product development
project has reached a defined milestone according
to an established project management model.
In determining the amounts to be capitalized,
management makes assumptions regarding the
expected future cash generation of the project,
discount rates to be applied, and the expected
period of benefits.

Impairment of financial assets

The impairment provision for financial assets (other
than trade receivables) is based on assumptions of
risk of default and expected loss rates. The Company
makes judgements about these assumptions for
selecting the inputs to the impairment calculation,
based on the Company's history, existing market

conditions as well as forward looking estimates at the
end of each reporting period.

Trade receivables are stated at their nominal values
as reduced by appropriate allowances for estimated
irrecoverable amounts which are based on the aging
of the receivable balances and historical experiences.
Individual trade receivables are written off when
management deems them not collectible.

The Company applies expected credit losses (ECL)
model for measurement and recognition of loss
allowance on the following :

i. Trade receivables

ii. Financial assets measured at amortised cost
(other than trade receivables)

iii. Financial assets measured at fair value through
other comprehensive income (FVTOCI)
In case of trade receivables, the Group follows a
simplified approach wherein an amount equal
to lifetime ECL is measured and recognised as
loss allowance.

In case of other assets (listed as (ii) and (iii) above),
the Group determines if there has been a significant
increase in credit risk of the financial asset since initial
recognition. If the credit risk of such assets has not
increased significantly, an amount equal to 12-month
ECL is measured and recognised as loss allowance.
However, if credit risk has increased significantly,
an amount equal to lifetime ECL is measured and
recognised as loss allowance.

Subsequently, if the credit quality of the financial asset
improves such that there is no longer a significant
increase in credit risk since initial recognition, the
Group reverts to recognizing impairment loss
allowance based on 12-month ECL.

ECL are measured in a manner that they reflect
unbiased and probability weighted amounts
determined by a range of outcomes, taking into
account the time value of money and other
reasonable information available as a result of past
events, current conditions and forecasts of future
economic conditions.

As a practical expedient, the Group uses a provision
matrix to measure lifetime ECL on its portfolio of
trade receivables. The provision matrix is prepared
based on historically observed default rates over the
expected life of trade receivables and is adjusted for
forward-looking estimates. At each reporting date,
the historically observed default rates and changes in
the forward-looking estimates are updated.

ECL impairment loss allowance (or reversal)
recognised during the period is recognised as
income/ expense in the Consolidated Statement of
Profit and Loss.

Income Taxes

Significant judgements are involved in determining
the provision for income taxes, including amount
expected to be paid/recovered for uncertain tax
positions. In assessing the realizability of deferred
tax assets arising from unused tax credits, the
management considers convincing evidence about
availability of sufficient taxable income against
which such unused tax credits can be utilized. The
amount of the deferred income tax assets considered
realizable, however, could be reduced if estimates
of future taxable income during the carry forward
period are reduced.

(a) Margin money deposits

Margin money deposits with a carrying amount of H 3.65 Crores (As at March 31, 2024 : H 3.90 Crores) are subject to
a first charge as security deposit with customers.

(b) Foreign exchange forward contracts

The Company enters into foreign exchange forward contracts with the intention of reducing the foreign exchange risk of
buyers credit and trade payables. These contracts are not designated in hedge relationships and are measured at fair value
through profit or loss.

(c) Commodity forward contracts

The Company enters into commodity exchange forward contracts with the intention of reducing the fluctuation in
price for the purchase of copper, aluminium and other raw material imputs. These contracts are not designated in
hedge relationships and are measured at fair value through profit or loss.

(i) Trade receivables are on non interest bearing credit terms and the credit period of the products are determined by the
type of the products. In case of long term construction contracts, payment is generally due upon completion of milestone
as per terms of contract. In certain contracts, short term advances are received as per payment terms in the contract,
before the performance obligation is satisfied.

(ii) The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment losses
on trade receivables and contract assets. The Company follows the simplified approach for recognition of impairment
allowance on trade receivables and contract assets. The application of the simplified approach does not require the
Company to track changes in credit risk. Rather, it recognises impairment allowance based on lifetime ECLs at each
reporting date. ECL impairment loss allowance recognised during the period is recognised in the Statement of Profit
and Loss. This amount is reflected under the head 'other expenses' in the Statement of Profit and Loss.

Terms/Rights attached to Equity Shares

The Company has one class of equity shares having par value of H 2 per share. Each share holder is entitled to one vote
per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is
subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend, if any.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the
Company, after distribution of all preferential amounts. The distribution will be in the proportion of number of equity shares
held by the shareholders.

(I) Securities premium - Where the Company issues shares at a premium, a sum equal to the aggregate amount of the
premium received on those shares shall be transferred to "Securities Premium Reserve". The Company may use this
reserve for the purpose allowed under Section 52 of the Companies Act, 2013.

(II) Share based payment - The Company has an employee share option scheme under which options to subscribe for
the Company's shares have been granted to the key employees and directors. The share-based payment reserve is
used to recognize the value of equity-settled share-based payments provided to the key employees and directors as
part of their remuneration. Refer to Note 51 for further details of the scheme.

(III) Capital redemption reserve - Capital redemption reserve was created in an earlier year for buy-back of shares.

(IV) Capital subsidy received from government - Subsidy was received towards setting up of a factory in the state of
Himachal Pradesh during the years ended March 31, 2009 and March 31, 2013.

(V) General reserve - General reserve is created out of the profits earned by the Company by way of transfer from
surplus in the Statement of Profit and Loss.The Company can use this reserve for payment of dividend and issue
of bonus shares.

(VI) Retained earnings - The amount that can be distributed by the Company as dividends to its equity shareholders is
determined based on the balance in this reserve and also considering the requirements of the Companies Act, 2013.
Thus the amounts reported above are not distributable in entirely.

a. Outstanding loans carry an average interest rate ranging from 7.44% -7.46 % p.a. (March 31,2024 : 5.21% - 5.50% p.a.).

b. The Company has been sanctioned working capital limits in excess of Rs. 5 crores from banks on the basis of security
of current assets. The quarterly returns or statements comprising (stock, creditors, book debt statements, statements
on ageing analysis of the debtors and other stipulated financial information) filed by the Company with such banks
are in agreement with the unaudited books of account of the Company of the respective quarters and no material
differences exist. The Company has not been sanctioned any working capital facility from financial institutions.

c. Outstanding Commercial papers carry interest rate @ 7.45% p.a. (March 31, 2024 : 8.00 % p.a.) for the current year.
This is repayable within range of 91 days from the date of drawdown.

d. Oustanding Inter Corporate Deposits obtained from Related parties for meeting business requirements with interest
ranging 7.22%-7.33% p.a. ((March 31, 2024 : 7.61% to 7.82% p.a.) linked to 3 Months T bill 0.75% with frequency of
interest being paid on last day of the quarter.

Repayment upon expiry of the tenor or at such time as may be decided by both the parties.

e. The company has utilised the funds borrowed from banks and financial institution for the purpose it was taken.

f. There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.

g. The Company have not been declared as wilful defaulter by any bank, financial institutions or other lender.

h. The Company has not received any fund from any person or entity, including foreign entities 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.

Foreseeable loss

A provision for foreseeable loss on contract with customers is recognised when it is probable that the contract cost will
exceed the total contract revenue or when the unavoidable costs of meeting the obligation under the contract exceed
the currently estimated economic benefits.

Other Provisions

The Company has provided for certain regulatory and other charges for which it has received claims. The provision
represents the unpaid amount that it expects to incur / pay for which the obligating event has already arisen as on the
reporting date.

Note:

a. Pursuant to approval given by the shareholders vide postal ballot on June 08, 2023, the Company has issued
9,63,13,888 fully paid up bonus equity shares of H 2/- each in the ratio of 1 (One) equity share of H 2/- each for every
1 (One) existing equity share of H 2/- each during the previous year ended March 31, 2024.

b. The Company raised capital of H 1,000 crores through Qualified Institutions Placement ("QIP") of equity shares.
The Executive management Committee of the Board of Directors of the Company, at its meeting held on September 22,
2023, approved the allotment of 1,29,87,012 equity shares of face value H 2 each to eligible investors at a price
H 770 per equity share (including a premium of H 768 per equity share) and issued the same on September 22, 2023.

36. EMPLOYEE BENEFITS
Defined benefit plans

a. Gratuity

The Company provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible
employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount based on the respective employee's salary and
the tenure of employment with the Company. Liabilities with regard to the Gratuity Plan are determined by
actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit
credit method. The Company contributes all ascertained liabilities to the Gratuity Fund Trust (the Trust).

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability.
Gains and losses through remeasurements of the net defined benefit liability/(asset) are recognized in other
comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the
portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the
defined benefit obligation is recognized in other comprehensive income. The effect of any plan amendments
are recognised as net profit in the profit or loss. The Company expects to contribute H 6.28 crore to gratuity fund
in FY 2025-26 (FY 2024-25: H 6.55 crore).

Risk analysis

Interest Rate risk: The plan exposes the Company to the risk of all interest rates. A fall in interest rates will result in
an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the
liability (as shown in financial statements).

Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts.This may
arise due to non availabilty of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not
being sold in time.

Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary
increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants
from the rate of increase in salary used to determine the present value of obligation will have a bearing on the
plan's liabilty.

Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability.
The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act,
1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (eg.
Increase in the maximum limit on gratuity of H 20,00,000.

Asset Liability Mismatching or Market Risk: The duration of the liabilty is longer compared to duration of assets,
exposing the Company to market risk for volatilities / fall in interest rate.

Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any
particular investment.

b. Provident Fund

Eligible employees of the Company receive benefits from provident fund, which is a defined benefit plan. Both the
eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified
percentage of the covered employee's salary. The Company contributes a portion to the Provident Fund Trust. The
trust invests in specific designated instruments as permitted by Indian law. The rate at which the annual interest is
payable to the beneficiaries by the trust is being administered by the Government. The Company has an obligation
to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

The actuary has provided a valuation and according thereto, there is no shortfall as at March 31, 2025. The Company's
contribution to the Employee's Provident fund aggregates to H 12.92 crores (March 31, 2024 : H 10.16 crores).

The Supreme Court in a recent judgement has held that provident fund contributions are payable on basic wage,
dearness allowances and all other monthly allowances, which are universally, necessarily and ordinarily paid to all
the employees in the establishment of the Board. There are numerous interpretative issues relating to the judgement
and the matter remains sub judice. As a matter of caution, the company has made for an estimated amount, provision
on a prospective basis.

d The Company has an obligation to complete the Extended Producer Responsibility (EPR) targets, only if it is a
participant in the market during the financial year in accordance with the E-Waste (Management) Rules, 2016, as
amended. The Company has fulfilled its obligation for the current financial year. The Company will have an e-waste
obligation for future years, only if it participates in the market in those years.

e Uncertain tax position

The uncertain tax position as on March 31, 2025 is H 8.06 crores (March 31, 2024 : H 6.85 crores)

Notes:-

a. As the liabilities for gratuity and leave encashment are provided on actuarial basis for the Company as a whole,
the amounts pertaining to the Directors are not included above.

b. The transactions are inclusive of taxes wherever applicable.

c. The transactions are disclosed under various relationships (i.e. subsidiary, associate, joint ventures and other
related parties) based on the status of related parties on the date of transactions.

The above transactions are in the ordinary course of business and are at arm's length.

* fully provided for Allowance for doubtful loan

Note

WJ.Towell & Co LLC ('WJT'), an entity based in Oman, one of our JointVenture partner in"Blue Star Oman Electro- Mechanical
Company LLC" ( a Joint Venture Company), with whom the Company had entered into a Shareholders' Agreement dated
October 1, 2015, has filed arbitration proceedings against the Company with International Chamber of Commerce ('ICC').
The statement of claim filed by WJT stands at OMR 2,11,80,748 (approx. H 461.74 crores). In the opinion of the Company
the claims filed by WJT are frivolous, unsubstantiated, premised on fundamental factual misstatements and contrary to
the overwhelming facts and evidence. The Company has filed its statement of defence with the ICC.

39. SEGMENT INFORMATION

As per Ind AS 108, segment report is shown only in the consolidated financial statements as financial report contains both the
consolidated financial statements of a parent as well as the parent's standalone financial statement.

40. DERIVATIVE INSTRUMENTS AND ATTACHED FOREIGN CURRENCY EXPOSURE

The Company has a forex risk management policy that ensures proactive and regular monitoring and managing of foreign
exchange exposures. Financial risks relating to changes in exchange rates are hedged by forward contract.The hedging strategy
is used towards managing currency fluctuation risk and the Company does not use foreign exchange forward and options
contract for trading or speculative purposes.

Forward and options contract are fair valued at each reporting date. The resultant gain or loss of forward and option
contract is recognized in the Profit or Loss.

Commodity risk is mitigated by entering into annual rate contracts with major suppliers which are factored in pricing
decisions. This approach provides sufficient mitigation against volatility in commodity rates.

41. FINANCIAL INSTRUMENTS (Contd..)

Fair value hierarchy of financial assets and liabilities measured at fair value :

Valuation technique and key inputs used to determine fair value:

1. Level - 1:

Quoted market price in the active market for identical assets or liabilities.

2. Level - 2 :

Mutual Fund - Quoted price in the active market

Derivative Instrument - Mark to market on forward covers is based on forward exchange rates at the end of
reporting period.

3. Level - 3 :

Investment Property - Based on valuation report of independent valuer.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could
be exchanged in a current transaction between willing parties. The following methods and assumptions were
used to estimate the fair values:

- The fair value of quoted equity investment and mutual funds are based on price quotations at the
reporting date.

- The Company enters into derivative financial instruments with various counterparties, principally with banks.
Foreign exchange forward contracts are valued using valuation techniques, which employs the use of market
observable inputs. The model incorporates various inputs including the credit quality of counter parties,
foreign exchange spot and forward rates.

42. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES

The Company's principal financial liabilities comprise short term borrowings, trade and other payables. The main purpose
of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade
and other receivables, and cash and cash equivalents that are derived directly from its operations.

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The
Company is exposed to market risk, currency risk, interest rate, credit risk and liquidity risk.

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 two types of risks: Currency risk and interest rate risk. Financial instruments
affected by market risk include borrowings, investments, trade payables, trade receivables, loans, and derivative
financial instruments.

42. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (Contd..)

Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of exposure will fluctuate because of changes in
foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the
Company's operating activities (when revenue or expense is denominated in a foreign currency). Foreign currency risks
are managed within the approved policy parameters utilizing foreign exchange forward contracts.

The following table demonstrates the foreign currency exposures recognised by the Company that have not been hedged
by a derivative instrument or otherwise are as under:

Commodity price risk

The Company is subject to fluctuations in prices for the purchase of copper, alluminium, and other raw material inputs.
The Company purchased primarily all of its copper and alluminium requirements at prevailing market rates during the
year ended March 31, 2025.

Commodity hedging is used primarily as a risk management tool to secure the future cash flows in case of volatility by
entering into commodity forward contracts.

The following table demonstrates the commodity exposures recognised by the Company that have not been hedged by
a derivative instrument or otherwise are as under:

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. Interest rate change does not affect significantly to the company. Company does not
have any exposure to the future cash flows resulting from change in interest rate as the Company's net obligations and
assets carries fixed interest rate.

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, foreign exchange transactions, and other
financial instruments.

1. Trade receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures, and
controls relating to customer credit risk management. Trade receivables are non-interest bearing and are generally
on credit terms in line with respective industry norms. 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.

Refer Note 13 for details on the allowance for expected credit loss on trade receivables.

2. Financial instruments and cash deposits

Credit risk from balances with banks is managed by Company's treasury in accordance with the Board approved
policy. Investments of surplus funds, temporarily, are made only with approved counterparties, mainly mutual funds,
who meet the minimum threshold requirements under the counterparty risk assessment process. The Company's
maximum exposure for financial guarantees is given in Note 39.

Liquidity Risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company monitors
the rolling forecast of its liquidity position based on expected cash flows. The Company's approach is to ensure that
it has sufficient liquidity or borrowing headroom to meet its obligations at all points in time. The Company has
sufficient short-term fund-based lines, which provide healthy liquidity and these carry the highest credit quality
rating from a reputed credit rating agency.

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

44. FINANCIAL RATIOS (Contd..)

Current Ratio = Current Assets / Current Liabilities
Debt / Equity Ratio = Total Debt / Shareholder's Equity

DSCR = [Earnings before interest and Tax ] / [Interest expenses Principal repayments made during the period for
long term loans]

Return on Equity Ratio = Net profit after tax / Average Shareholder's equity X 100
Inventory turnover (no. of days) = Average Inventory / Cost of Goods Sold for the period X 365
Trade Receivable turnover (no. of days) = Average Debtors / Turnover for the period X 365

Trade payables turnover (no. of days) = Average payables / (Cost of material consumed purchase of stock-in-trade
change in inventory Other expenses) X365

Net capital turnover ratio (In times) = Turnover for the period / Working capital
Net profit ratio (%) = Profit/(Loss) for the period / Total income X 100

Return on capital employed (%) = (Profit before tax Finance charges) / Capital employed X 100
Return on investment (%) = Income from investment / Average investment for the year X 100

48. UTILISATION OF PROCEEDS FROM QUALIFIED INSTITUTIONAL PLACEMENT

The Company had issued 1,29,87,012 equity shares of face value of H 2 each through Qualified Institutional Placement,
(QIP) on September 22, 2023 at an issue price of H 770 per equity share (including premium of H 768 per equity share).
Total amount raised through QIP amounts to H 1,000 crore.

Following are the details of utilization of proceeds of H 981.78 crore post meeting issue expenses of H 18.22 excluding GST
and net of TDS:

50. ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III

i. The Company neither holds any benami property nor any proceedings have been initiated or pending against the
Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules
made thereunder.

ii. 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.

iii. 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 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).

iv. The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

v. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

51. EMPLOYEE SHARE BASED PAYMENT PLANS
Employees Stock Option Scheme - 2024

This Scheme shall be called the "BLUE STAR EMPLOYEES STOCK OPTION SCHEME - 2024" hereinafter referred as "the
Scheme". The Scheme was recommended by the Nomination and Remuneration Committee on August 1, 2024 and
approved by the Board of Directors on August 6, 2024 and by the Shareholders of the Company by way of special resolution
on September 25, 2024. The Scheme shall be effective from the date of approval of the Scheme by the shareholders of
the Company (i.e.) September 25, 2024 ("Effective Date"). The Scheme is in accordance with the regulations prescribed by
SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and any other regulation as applicable to the
Company and shall not contravene any law, for the time being in force that is material for giving effect to such Scheme.

51. EMPLOYEE SHARE BASED PAYMENT PLANS (Contd..)

The Scheme shall continue in effect unless terminated by the Board of Directors or Nomination and Remuneration
Committee or until all the Options granted under the Scheme are vested and exercised whichever is earlier. Any such
termination of the Scheme shall not affect Options already granted and such Options shall remain in full force and effect,
subject to clause 14.3 and 14.5, as if the Scheme had not been terminated unless mutually agreed otherwise between the
Grantee / Nominee / Legal Heirs and the Company.

The total number of Options that may be granted pursuant to this Scheme shall not exceed 5,00,000 (Five Lakhs only)
convertible into equity shares at face value of H 2/- each (or such other adjusted figure consequent to Corporate Action).

The Exercise Price of the Options granted shall be the face value of the Share, i.e., H 2/- (or as adjusted by the corporate
action(s)). No amount shall be payable at the time of Grant of Options.

The maximum number of Stock Options to be granted to any Eligible Employee under the Scheme shall not exceed 1,00,000.

The Grant of 1 (One) Option to an Eligible Employee under this Scheme shall entitle such Eligible Employee to apply for
1 (One) Share in the Company upon payment of Exercise Price and applicable taxes and subject to terms and conditions
provided in the Scheme and in the Grant Letter.

Vesting Period for Options shall commence after minimum 1 (One) year from the Grant Date and it may extend upto
maximum of 5 (Five) years from the Grant Date or such lesser period as may be decided by the NRC at its sole discretion
from time to time.

The Exercise Period shall be 7 (seven) years from the Grant Date or such lesser period as may be decided by the NRC. The
Exercise Period will be specified in the Grant Letter issued to the Eligible Employees. Failure to exercise the Options within
the specified time period, shall result in lapsing of Vested Options in the hands of Grantee.

During the year, the Company has recognized an expense of H 3.36 crores ((March 31, 2024 - Nil) which is net of recoveries
from subsidiaries of H 0.34 crores.

52. AUTHORISATION FOR ISSUE OF THE STANDALONE FINANCIAL STATEMENTS

The financial statements are approved for issue by the Audit Committee and the Board of Directors at their respective
meetings conducted on May 06, 2025 and May 07, 2025.

For and on behalf of the Board of Directors of
BLUE STAR LIMITED

Vir S. Advani B. Thiagarajan

Chairman and Managing Director Managing Director

(DIN: 01571278) (DIN: 01790498)

Rajesh Parte Nikhil Sohoni

Company Secretary Group Chief Financial Officer

Mumbai: May 07, 2025