(k) 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 the Company will be
required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.

The amount recognised 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. When the effect of the time
value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the time
value of money and the risks specific to the liability. The
increase in the provision due to the passage of time is
recognised as interest expense.

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is
virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably.

(l) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within twelve months after the end of the
period in which the employees render the related
service are recognised in respect of employees'
services up to the end of the reporting period
and are measured at the undiscounted amounts
expected to be paid when the liabilities are settled.
The liabilities are presented as current benefit
obligations in the Balance Sheet.

(ii) Other long-term employee benefit obligations

Other long-term employee benefits include earned
leaves and employee retention bonus.

Earned leaves

The liability for earned leaves is not expected to be
settled wholly within twelve months after the end of
the period in which the employees render the related
service. They are therefore measured at the present
value of expected future payments to be made in
respect of services provided by employees up to
the end of the reporting period using the projected
unit credit method, with actuarial valuations being
carried out at the end of each annual reporting
period. The benefits are discounted using the
market yields at the end of the reporting period
that have terms approximating to the terms of the
related obligation. Remeasurements as a result of
experience adjustments and changes in actuarial
assumptions are recognised in the Statement of
Profit and Loss. The obligations are presented as
provisions in the Balance Sheet.

Employee retention bonus

The Company, as a part of retention policy,
pays retention bonus to certain employees after
completion of specified period of service. The
timing of the outflows is expected to be within a
period of five years. They are therefore measured
at the present value of expected future payments
at the end of each annual reporting period in
accordance with management best estimates. This
cost is included in employee benefit expense in the
Statement of Profit and Loss with corresponding
provisions in the Balance Sheet.

(iii) Post-employment obligations

The Company operates the following post¬
employment schemes:

• defined benefit plan towards payment of
gratuity; and

• defined contribution plans towards provident
fund & employee pension scheme, employee
state insurance and superannuation scheme.

Defined benefit plans

The Company provides for gratuity obligations
through a defined benefit retirement plan (the
‘Gratuity Plan') covering all employees. The Gratuity
Plan provides a lump sum payment to vested
employees at retirement/termination of employment

or death of an employee, based on the respective
employees' salary and years of employment with
the Company.

The liability or asset recognised in the Balance
Sheet in respect of the defined benefit plan is the
present value of the defined benefit obligation at
the end of the reporting period less the fair value
of plan assets. The present value of the defined
benefit obligation is determined using projected
unit credit method by discounting the estimated
future cash outflows by reference to market yields
at the end of the reporting period on government
bonds that have terms approximating to the terms
of the related obligation, with actuarial valuations
being carried out at the end of each annual
reporting period.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense
in the Statement of Profit and Loss. Remeasurement
gains and losses arising from experience
adjustments and changes in actuarial assumptions
are recognised in the period in which they occur,
directly in Other Comprehensive Income. They are
included in retained earnings in the statement of
changes in equity and in the Balance Sheet.

Defined contribution plans

Defined contribution plans are retirement benefit
plans under which the Company pays fixed
contributions to separate entities (funds) or
financial institutions or state managed benefit
schemes. The Company has no further payment
obligations once the contributions have been paid.
The defined contributions plans are recognised
as employee benefit expense when they are due.
Prepaid contributions are recognised as an asset
to the extent that a cash refund or a reduction in
the future payments is available.

• Provident Fund Plan & Employee
Pension Scheme

The Company makes monthly contributions
at prescribed rates towards Employees'
Provident Fund/ Employees' Pension Scheme

to a Fund administered and managed by the
Government of India.

• Employee State Insurance

The Company makes prescribed monthly
contributions towards Employees' State
Insurance Scheme.

• Superannuation Scheme

The Company contributes towards a fund
established by the Company to provide
superannuation benefit to certain employees
in terms of Group Superannuation Policies
entered into by such fund with the Life
Insurance Corporation of India.

(m) Dividends

Provision is made for the amount of any dividend
declared, being appropriately authorised and no longer
at the discretion of the Company, on or before the end
of the reporting period but not distributed by the end of
the reporting period.

(n) Cash and cash equivalents

Cash and cash equivalents includes cash on hand,
other short-term, highly liquid investments with original
maturities of three month or less that are readily
convertible into known amount of cash and which are
subject to an insignificant risk of changes in value.

(o) Earnings per share

Basic earnings per share are calculated by dividing
the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number
of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.

(p) Financial assets

(i) Classification

The Company classifies its financial assets in the
following measurement categories:

investment that is subsequently measured at
amortised cost is recognised in profit or loss
when the asset is derecognised or impaired.
Interest income from these financial assets
is recognised using the effective interest
rate method.

• Fair value through Other Comprehensive
Income (FVTOCI): Assets that are held
for collection of contractual cash flows and
for selling the financial assets, where the
assets' cash flows represent solely payments
of principal and interest, are measured at
fair value through Other Comprehensive
Income (FVTOCI). Movements in the carrying
amount are taken through OCI, except for the
recognition of impairment gains or losses,
interest revenue and foreign exchange gains
and losses which are recognised in Statement
of Profit and Loss. When the financial asset
is derecognised, the cumulative gain or loss
previously recognised in OCI is reclassified
from equity to profit or loss and recognised
in other gains/(losses). Interest income
from these financial assets is included in
other income using the effective interest
rate method.

• Fair value through profit or loss (FVTPL):

Assets that do not meet the criteria for
amortised cost or FVTOCI are measured at
fair value through profit or loss. A gain or loss
on a debt investment that is subsequently
measured at fair value through profit or loss
is recognised in profit or loss and presented
net in the in Statement of Profit and Loss within
other gains/(losses) in the period in which it
arises. Interest income from these financial
assets is included in other income.

Equity instruments

The Company subsequently measures all
equity investments at fair value, except
for equity investments in subsidiary and
joint venture where the Company has the
option to either measure it at cost or fair
value. The Company has opted to measure
equity investments in subsidiary and joint
venture at cost. Where the Company's

management elects to present fair value
gains and losses on equity investments in
Other Comprehensive Income, there is no
subsequent reclassification of fair value gains
and losses to profit or loss. Dividends from
such investments are recognised in profit or
loss as other income when the Company's
right to receive payments is established.

(iii) Impairment of financial assets

In accordance with Ind AS 109 Financial
Instruments, the Company applies expected credit
loss (ECL) model for measurement and recognition
of impairment loss associated with its financial
assets carried at amortised cost and FVTOCI
debt instruments.

For trade receivables or any contractual right to
receive cash or another financial asset that result
from transactions that are within the scope of Ind
AS 115 Revenue from contracts with customers, the
Company applies simplified approach permitted by
Ind AS 109 Financial Instruments, which requires
expected life time losses to be recognised after
initial recognition of receivables. For recognition
of impairment loss on other financial assets and
risk exposure, the Company determines whether
there has been a significant increase in the credit
risk since initial recognition. If credit risk has not
increased significantly, twelve months ECL is
used to provide for impairment loss. However,
if credit risk has increased significantly, lifetime
ECL is used. If, in a subsequent period, credit
quality of the instrument improves such that there
is no longer a significant increase in credit risk
since initial recognition, then the entity reverts to
recognising impairment loss allowance based on
twelve-months ECL.

ECL represents expected credit loss resulting
from all possible defaults and is the difference
between all contractual cash flows that are due
to the Company in accordance with the contract
and all the cash flows that the entity expects
to receive, discounted at the original effective
interest rate. While determining cash flows, cash
flows from the sale of collateral held or other credit
enhancements that are integral to the contractual
terms are also considered.

ECL is determined with reference to historically
observed default rates over the expected life of
the trade receivables and is adjusted for forward
looking estimates. Note 36 details how the
Company determines expected credit loss.

(iv) Derecognition of financial assets

A financial asset is derecognised only when

• the Company has transferred the rights to
receive cash flows from the financial asset; or

• retains the contractual rights to receive the
cash flows of the financial asset, but assumes
a contractual obligation to pay the cash flows
to one or more recipients.

Where the Company has transferred an asset, it
evaluates whether it has transferred substantially
all risks and rewards of ownership of the financial
asset. In such cases, the financial asset is
derecognised. Where the Company has not
transferred substantially all risks and rewards of
ownership of the financial asset, the financial asset
is not derecognised.

Where the Company has neither transferred a
financial asset nor retained substantially all risks
and rewards of ownership of the financial asset, the
financial asset is derecognised if the Company has
not retained control of the financial asset. Where the
Company retains control of the financial asset, the
asset is continued to be recognised to the extent
of continuing involvement in the financial asset.

On derecognition of a financial asset in its entirety,
the difference between the asset's carrying amount
and the sum of the consideration received and
receivable and the cumulative gain or loss that had
been recognised in Other Comprehensive Income
and accumulated in equity is recognised in profit
or loss if such gain or loss would have otherwise
been recognised in profit or loss on disposal of that
financial asset.

On derecognition of a financial asset other than
in its entirety, the Company allocates the previous
carrying amount of the financial asset between
the part it continues to recognise under continuing

involvement, and the part it no longer recognises
on the basis of the relative fair values of those parts
on the date of the transfer. The difference between
the carrying amount allocated to the part that is no
longer recognised and the sum of the consideration
received for the part no longer recognised and
any cumulative gain or loss allocated to it that had
been recognised in Other Comprehensive Income
is recognised in profit or loss if such gain or loss
would have otherwise been recognised in profit or
loss on disposal of that financial asset. A cumulative
gain or loss that had been recognised in Other
Comprehensive Income is allocated between the
part that continues to be recognised and the part
that is no longer recognised on the basis of the
relative fair values of those parts.

(v) Effective interest method

The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
through the expected life of the financial asset to
the gross carrying amount of a financial asset.
When calculating the effective interest rate, the
Company estimates the expected cash flows by
considering all the contractual terms of the financial
instrument but does not consider the expected
credit losses. Income is recognised on an effective
interest basis for debt instruments other than those
financial assets classified as at FVTPL.

q) Financial liabilities and equity instruments

(i) Classification

Debt and equity instruments issued by the
Company are classified as either financial liabilities
or as equity in accordance with the substance of
the contractual arrangements and the definitions of
a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences
a residual interest in the assets of the Company
after deducting all of its liabilities.

Financial liabilities

The Company classifies its financial liabilities in the
following measurement categories:

• t hose to be measured subsequently at fair
value through profit or loss, and

• those measured at amortised cost.

Financial liabilities are classified as at FVTPL
when the financial liability is held for trading or it is
designated as at FVTPL, other financial liabilities
are measured at amortised cost at the end of
subsequent accounting periods.

(ii) Measurement

Equity instruments

Equity instruments issued by the Company are
recognised at the proceeds received. Transaction
cost of equity transactions shall be accounted for
as a deduction from equity.

Financial liabilities

At initial recognition, the Company measures a
financial liability at its fair value net of, in the case
of a financial liability not measured at fair value
through profit or loss, transaction costs that are
directly attributable to the issue of the financial
liability. Transaction costs of financial liability
carried at fair value through profit or loss are
expensed in profit or loss.

Subsequent measurement of financial liabilities
depends on the classification of financial liabilities.
There are two measurement categories into which
the Company classifies its financial liabilities:

• Fair value through profit or loss (FVTPL):

Financial liabilities are classified as at FVTPL
when the financial liability is held for trading
or it is designated as at FVTPL. Financial
liabilities at FVTPL are stated at fair value, with
any gains or losses arising on remeasurement
recognised in profit or loss.

• Amortised cost: Financial liabilities that are
not held-for-trading and are not designated
as at FVTPL are measured at amortised cost
at the end of subsequent accounting periods.
The carrying amounts of financial liabilities
that are subsequently measured at amortised
cost are determined based on the effective
interest method. Interest expense that is not

capitalised as part of costs of an asset is
included in the ‘Finance costs' line item.

(iii) Derecognition
Equity instruments

Repurchase of the Company's own equity
instruments is recognised and deducted directly
in equity. No gain or loss is recognised in profit or
loss on the purchase, sale, issue or cancellation of
the Company's own equity instruments.

Financial liabilities

The Company derecognises financial liabilities
when, and only when, the Company's obligations
are discharged, cancelled or have expired. An
exchange with a lender of debt instruments with
substantially different terms is accounted for as an
extinguishment of the original financial liability and
the recognition of a new financial liability. Similarly,
a substantial modification of the terms of an existing
financial liability (whether or not attributable to the
financial difficulty of the debtor) is accounted for as
an extinguishment of the original financial liability
and the recognition of a new financial liability.
The difference between the carrying amount
of the financial liability derecognised and the
consideration paid and payable is recognised in
profit or loss.

(iv) Effective interest method

The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
through the expected life of the financial liability to
the gross carrying amount of a financial liability.

(v) Foreign exchange gains and losses

For financial liabilities that are denominated in a
foreign currency and are measured at amortised
cost at the end of each reporting period, the foreign
exchange gains and losses are determined based
on the amortised cost of the instruments and
are recognised in ‘Other income'. The fair value
of financial liabilities denominated in a foreign
currency is determined in that foreign currency
and translated at the spot rate at the end of the
reporting period.

(r) Offsetting financial instruments

Financial assets and liabilities are offset and the
net amount is reported in the Balance Sheet where
there is a legally enforceable right to offset the
recognised amounts and there is an intention to
settle on a net basis or realise the asset and settle
the liability simultaneously. The legally enforceable
right must not be contingent on future events and
must be enforceable in the normal course of
business and in the event of default, insolvency or
bankruptcy of the Company or the counterparty.

(s) Fair value of financial instruments

Fair value measurements are categorised into Level
1, 2 or 3 based on the degree to which the inputs
to the fair value measurements are observable
and the significance of the inputs to the fair value
measurement in its entirety, which are described
as follows:

• Level 1 inputs are quoted prices (unadjusted)
in active markets for identical assets or
liabilities that the Company can access at the
measurement date;

• Level 2 inputs are inputs, other than quoted
prices included within Level 1, that are
observable for the asset or liability, either
directly or indirectly; and

• Level 3 inputs are unobservable inputs for the
asset or liability.

(t) Derivative financial instruments and
hedge accounting

The Company uses derivative financial instruments
i.e. forward currency contracts to hedge its
foreign currency risks. These derivative financial
instruments are initially recognised at fair value on
the date on which a derivative contract is entered
into and are subsequently re-measured at fair
value. Derivatives are carried as financial assets
when the fair value is positive and as financial
liabilities when the fair value is negative.

For the purpose of hedge accounting, the Company
has classified hedges as Cash flow hedges wherein
it hedges the exposure to the variability in cash
flows that is either attributable to a particular risk

associated with a recognised asset or liability or a
highly probable forecast transaction or the foreign
currency risk in an unrecognised firm commitment.

At the inception of a hedge relationship, the Company
formally designates and documents the hedge
relationship to which the Company contemplates to
apply hedge accounting and the risk management
objective and strategy for undertaking the hedge
in compliance with Company's hedge policy.
The documentation includes the company's risk
management objective and strategy for undertaking
hedge, the hedging/ economic relationship, the
hedged item or transaction, the nature of the risk
being hedged, hedge ratio and how the entity will
assess the effectiveness of changes in the hedging
instrument's fair value in offsetting the exposure to
changes in the hedged item's fair value or cash
flows attributable to the hedged risk. Such hedges
are expected to be highly effective in achieving
offsetting changes in fair value or cash flows and
are assessed on an ongoing basis to determine
that they actually have been highly effective
throughout the financial reporting periods for which
they were designated. Any hedge ineffectiveness is
calculated and accounted for in Statement of profit
or loss at the time of hedge relationship rebalancing.

The effective portion of changes in the fair value
of the hedging instruments is recognised in Other
Comprehensive Income and accumulated in the
cash flow hedging reserve. Such amounts are
reclassified in to the profit or loss when the related
hedge items affect profit or loss, such as when the
hedged financial income or financial expense is
recognised or when a forecast sale occurs. When
the hedged item is the cost of a non-financial asset
or non-financial liability, the amounts recognised as
OCI are transferred to the initial carrying amount of
the non-financial asset or liability.

Any ineffective portion of changes in the fair value
of the derivative or if the hedging instrument no
longer meets the criteria for hedge accounting,
is recognised immediately in profit or loss. If
the hedging relationship ceases to meet the
effectiveness conditions, hedge accounting is
discontinued and the related gain or loss is held

in cash flow hedging reserve until the forecast
transaction occurs.

(u) Equity-settled transactions

Certain employees of the Company receive
remuneration in the form of share-based
payments, whereby employees render services as
consideration for equity instruments (equity-settled
transactions).

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model. Further
details are given in Note 40.

That cost is recognised, together with a
corresponding increase in share-based payment
(SBP) reserves in equity, over the period in which the
performance and/or service conditions are fulfilled
in employee benefits expense. The cumulative
expense recognised for equity-settled transactions
at each reporting date until the vesting date reflects
the extent to which the vesting period has expired
and the Company's best estimate of the number
of equity instruments that will ultimately vest. The
expense or credit in the statement of profit and loss
for a period represents the movement in cumulative
expense recognised as at the beginning and end
of that period and is recognised in employee
benefits expense.

Service and non-market performance conditions
are not taken into account when determining the
grant date fair value of awards, but the likelihood
of the conditions being met is assessed as part
of the Company's best estimate of the number of
equity instruments that will ultimately vest. Market
performance conditions are reflected within the
grant date fair value. Any other conditions attached
to an award, but without an associated service
requirement, are considered to be non-vesting
conditions. Non-vesting conditions are reflected in
the fair value of an award and lead to an immediate
expensing of an award unless there are also service
and/or performance conditions.

No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met. Where
awards include a market or non-vesting condition,
the transactions are treated as vested irrespective
of whether the market or non-vesting condition is
satisfied, provided that all other performance and/
or service conditions are satisfied.

When the terms of an equity-settled award are
modified, the minimum expense recognised is
the grant date fair value of the unmodified award,
provided the original vesting terms of the award
are met. An additional expense, measured as at
the date of modification, is recognised for any
modification that increases the total fair value of the
share-based payment transaction, or is otherwise
beneficial to the employee. Where an award is
cancelled by the entity or by the counterparty, any
remaining element of the fair value of the award is
expensed immediately through profit or loss.

The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.

(v) Current vs Non Current

The Company presents assets and liabilities in the
Balance Sheet based on Current/ Non-Current
classification considering an operating cycle of 12
months being the time elapsed between deployment
of resources and the realisation/ settlement in cash
and cash equivalents there against.

(w) Recent pronouncements

Ministry of Corporate Affairs (‘MCA') notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Amendment Rules as issued from time to time.
The Company applied following amendments for
the first-time which are effective for annual periods
beginning on or after 1 April 2024.

a. Ind AS 117 Insurance Contracts

b. Amendments to Ind AS 116 Leases - Lease
Liability in a Sale and Leaseback

The Company has reviewed the new
pronouncements and based on its evaluation
has determined there is no material impact to the
financial statements.

Note 2: Critical accounting judgements and key
sources of estimation uncertainty

The preparation of financial statements requires the use of
accounting estimates which, by definition, will seldom equal
the actual results. Management also needs to exercise
judgement in applying the Company's accounting policies.

This note provides an overview of the areas that involved a
higher degree of judgement or complexity, and of items which
are more likely to be materially adjusted due to estimates
and assumptions turning out to be different than those
originally assessed.

Estimates and judgements are continually evaluated. They are
based on historical experience and other factors, including
expectations of future events that may have a financial impact
on the Company and that are believed to be reasonable
under the circumstances.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future,
and other key sources of estimation uncertainty at the end
of the reporting period that may have a significant risk of
causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year.

(i) Write -downs of Inventory

The Company write-downs the inventories to net
realisable value on account of obsolete and slow-moving
inventories, which is recognised on case to case basis
based on the management's assessment.

The Company uses following significant judgements
to ascertain value for write-downs of inventories to
net realisable:

a) nature of inventories mainly comprise of iron, steel,
forging and casting which are non-perishable
in nature;

b) probability of decrease in the realisable value of
slow moving inventory due to obsolesce or not
having an alternative use is low considering the
fact that these can also be used after necessary
engineering modification;

c) maintaining appropriate inventory levels for after
sales services considering the long useful life of
the product.

Effective April 01, 2024, ageing of inventory has also
been included as one of the significant judgement to
ascertain value for write-downs of inventories, however
the inclusion of such judgements did not have a material
impact on the financial statements for the year.

(ii) Employee benefit plans

The cost of the defined benefit plans and other long term
employee benefits and the present value of the obligation
thereon are determined using actuarial valuations. An
actuarial valuation involves making various assumptions
that may differ from actual developments in the future.
These include the determination of the discount rate,
future salary increases, attrition and mortality rates.
Due to the complexities involved in the valuation and its
long-term nature, obligation amount is highly sensitive
to changes in these assumptions.

The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for
plans, the management considers the interest rates of
government bonds. Future salary increases are based
on expected future inflation rates and expected salary
trends in the industry. Attrition rates are considered
based on past observable data on employees leaving
the services of the Company. The mortality rate is
based on publicly available mortality tables. Those
mortality tables tend to change only at interval in
response to demographic changes. See note 32 for
further disclosures.

(iii) Provision for warranty claims

The Company, in the usual course of sale of its
products, gives warranties on certain products and
services, undertaking to repair or replace the items
that fail to perform satisfactorily during the specified
warranty period. Provisions made represent the
amount of expected cost of meeting such obligations
of rectifications / replacements based on best estimate
considering the historical warranty claim information and
any recent trends that may suggest future claims could
differ from historical amounts. The assumptions made
in relation to the current period are consistent with those
in the prior years.

(iv) Provision for liquidated damages

It represents the potential liability which may arise from
contractual obligation towards customers with respect
to matters relating to delivery and performance of the
ultimate outcome of such past events and measurement
of the obligation amount.

(vi) Useful life and residual value of plant, property and
equipment and intangible assets

The useful life and residual value of plant, property and
equipment and intangible assets are determined based
on technical evaluation made by the management of the
expected usage of the asset, the physical wear and tear
and technical or commercial obsolescence of the asset.
Due to the judgements involved in such estimations, the
useful life and residual value are sensitive to the actual
usage in future period.

(i) Information about individual provisions and significant estimates

(a) Compensated absences

Compensated absences comprises earned leaves, the liabilities of which are not expected to be settled wholly
within twelve months after the end of the period in which the employees render the related service. They are
therefore measured as the present value of expected future payments to be made in respect of services provided
by employees up to the end of the reporting period using the projected unit credit method, with actuarial valuations
being carried out at the end of each annual reporting period. The Company presents the compensated absences
as a current liability in the Balance Sheet wherever it does not have an unconditional right to defer its settlement
beyond twelve months after the reporting date.

(b) Employee retention bonus:

The Company, as a part of retention policy, pays retention bonus to certain employees after completion of specified
period of service. The timing of the outflows is expected to be within a period of five years. They are therefore
measured as the present value of expected future payments, with management best estimates.

(c) Warranty:

The Company, in the usual course of sale of its products, gives warranties on certain products and services,
undertaking to repair or replace the items that fail to perform satisfactorily during the specified warranty period.
Provisions made represent the amount of expected cost of meeting such obligations of rectifications / replacements
based on best estimate considering the historical warranty claim information and any recent trends that may suggest
future claims could differ from historical amounts.

Note 32: Employee benefit plans

(i) Defined contribution plans

(a) The Company operates defined contribution retirement benefit plans under which the Company pays fixed
contributions to separate entities (funds) or financial institutions or state managed benefit schemes. The Company
has no further payment obligations once the contributions have been paid. Following are the schemes covered
under defined contributions plans of the Company:

Provident Fund Plan and Employee Pension Scheme: The Company makes monthly contributions at prescribed
rates towards Employee Provident Fund/ Employee Pension Scheme to fund administered and managed by the
Government of India.

Employee State Insurance: The Company makes prescribed monthly contributions towards Employees State
Insurance Scheme.

Superannuation Scheme: The Company contributes towards a fund established to provide superannuation benefit
to certain employees in terms of Group Superannuation Policies entered into by such fund with the Life Insurance
Corporation of India.

(ii) Defined benefit plans

(a) The Company provides for gratuity obligations through a defined benefit retirement plan (the ‘Gratuity Plan') covering
all employees under the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested
employees at retirement/termination of employment or death of an employee, based on the respective employees'
salary and years of employment with the Company.

(b) Risk exposure

These plans typically expose the Company to a number of actuarial risks, the most significant of which are
detailed below:

Investment risk: The plan liabilities are calculated using a discount rate set with references to government bond
yields as at end of reporting period; if plan assets under perform compared to the government bonds discount
rate, this will create or increase a deficit. The Plan assets comprise principally Group Gratuity Plans offered by the
life insurance companies. Majority of the funds invested are under the traditional platform where the insurance
companies declare a return at the end of each year based upon its performance. Certain investments are also
made in funds (growth plans) managed by the life insurance companies under which the returns are based upon the
accretion to the net asset value (NAV) of the particular fund, which are declared on a daily basis. The NAV based
funds of the insurance companies are approved and regulated by the Insurance Regulatory and Development
Authority of India and the investment risk is mitigated by investment in funds where the asset allocation is primarily
in sovereign and debt securities. The Company has a risk management strategy which defines exposure limits and
acceptable credit risk rating. There has been no change in the process used by the Company to manage its risks
from prior years.

Interest risk: A decrease in government bond yields will increase plan liabilities, although this is expected to be
partially offset by an increase in the value of the plans' debt instruments.

Life expectancy: The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants during their employment. An increase in the life expectancy of the plan
participants will increase the plan's liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of
plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

Attrition rate: The present value of the defined benefit plan liability is impacted by the rate of employee turnover,
disability and early retirement of plan participants. A decrease in the attrition rate of the plan participants will increase
the plan's liability.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant.
In practise, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating
the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value
of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period)
has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods
and types of assumptions used in preparing the sensitivity analysis did not change compared to prior years.

(i) Defined benefit liability and employer contributions

The Company expects to contribute ' 68.48 Million to the defined benefit plan during the year ending March
31, 2026.

The weighted average duration of the defined obligation as at March 31, 2025 is 7 years.

The expected maturity analysis of undiscounted defined benefit obligation as at March 31, 2025 is as follows:

The remuneration of directors and key executives is determined by the remuneration committee having regard to the
performance of individuals and market trends.

(iv) Terms & conditions:

The sales to and purchases from related parties, including rendering / availment of services, are made on terms which
are on arm's length after taking into consideration market considerations, external benchmarks and adjustment thereof,
terms of Joint Venture agreement and methodology of sharing common group costs. There has not been any transactions
with key management personnel other than the approved remuneration having regards to the performance and market
trends. The outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. The
Company has not recorded impairment of receivables relating to amounts owned by related parties (March 31, 2024:
Nil).

(v) In respect of figures disclosed above:

Remuneration and outstanding balances of KMP does not include long term benefits by way of gratuity and compensated
absences, which are currently not payable and are provided on the basis of actuarial valuation by the Company. The
perquisite value of ESOP of 13,790 shares vested is included in the remuneration of KMP.

(vi) There are no reportable transactions/balances as required under regulation 34(3) of SEBI (Listing and Other Disclosure
Requirements) Regulations, 2015.

(vii) Exceptional item:

During the year ended March 31, 2025, the Hon'ble National Company Law Tribunal vide its order dated October 22,
2024 has approved the reduction of share capital of Triveni Energy Solutions Limited, a Wholly Owned Subsidiary of the
Company, from 1,60,00,000 equity shares of ' 10/- each to 80,00,000 equity shares of ' 10/- each for a total consideration
of ' 440.00 million. Accordingly, ' 360.00 million of gain on account of such capital reduction has been presented as
an exceptional item.

Note 34: Capital management

For the purpose of capital management, equity includes total equity share capital of the Company and all other equity
reserves attributable to the equity holders of the Company. The Company is debt free as at March 31, 2025 ( Nil as at March
31, 2024). The Company manages its capital to maximize shareholder value. The Company's objectives are to safeguard
continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate
return to shareholders.

The business model of the Company is not capital intensive and being in the engineered-to-order capital goods space, the
working capital is largely funded by internal accruals (mainly advances from customers i.e revenue received in advance). The
Company manages its capital structure and makes adjustments in light of changes in economic conditions which may be in
the form of payment of dividend subject to benchmark pay-out ratio, return capital to the shareholders. The management and
the Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

Further, no changes were made in the objectives, policies or process for managing capital during the years ended March
31, 2025 and March 31, 2024.

The Company is not subject to any externally imposed capital requirements.

Note 35: Financial risk management

The Company's principal financial liabilities comprise of trade payable, security deposits, lease liabilities and other financial
liabilities. The Company's principal financial assets include trade receivables, cash and cash equivalents, bank balances,
FVTPL investments and other financial assets that arise from its operations. The Company has substantial exports and is
exposed to foreign currencies fluctuations during the contractual delivery period which is normally in the range of one year.
therefore the Company enters into hedging transactions to cover foreign exchange exposure.

The Company's activities expose it mainly to market risk, liquidity risk and credit risk. The monitoring and management of
such risks is undertaken by the senior management of the Company and there are appropriate policies and procedures in
place through which such financial risks are identified, measured and managed in accordance with the Company's policies
and risk objectives. The Company has specialized teams to undertake derivative activities for risk management purposes and
such team has appropriate skills, experience and expertise. It is the Company policy not to carry out any trading in derivative
for speculative purposes. The Audit Committee and the Board are regularly apprised of such risks every quarter and each
such risk and mitigation measures are extensively discussed.

(i) Credit risk

Credit risk arises when a counterparty defaults on its contractual obligations to pay resulting in financial loss to the
Company. The Company is exposed to credit risk from its operating activities, primarily trade receivables and unbilled
revenue. The credit risks in respect of deposits with the banks, foreign exchange transactions and other financial
instruments are only nominal.

(a) Credit risk management

The customer credit risk is managed subject to the Company's established policy, procedure and controls relating
to customer credit risk management. In order to contain the business risk, prior to acceptance of an order from
a customer, the creditworthiness of the customer is ensured through scrutiny of its financials, status of financial
closure of the project, if required, market reports and reference checks. The Company remains vigilant and regularly
assesses the financial position of customers during execution of contracts with a view to limit risks of delays and
default. Further, in most of the cases, the Company prescribes stringent payment terms including ensuring full
payments or security of Letter of Credit/Guarantee before delivery of goods. Retention amounts, if applicable, are
payable after satisfactory commissioning and performance. In view of the industry practice and being in a position
to prescribe the desired commercial terms, credit risks from receivables are well contained on an overall basis.

* March 31, 2025: Receivable individually in excess of 10% of the total receivables pertains to the receivables
towards supply of turbine to single customer. The Company has managed to minimize the credit risk to the Company
by securing against Letter of Credit.

From the above table, it can be observed that the concentration of risk in respect of trade receivables is well spread
out and moderate. Further, its customers are located in several jurisdictions and industries and operate in largely
independent markets.

(b) Provision for expected credit losses

Basis as explained above, apart from specific provisioning against impairment on an individual basis for major
customers, the Company provides for expected credit losses (ECL) for other receivables based on historical data
of losses, current conditions and forecasts and future economic conditions, including loss of time value of money
due to delays. In view of the business model of the Company, engineered-to-order products and the prescribed
commercial terms, the determination of provision based on age analysis may not be a realistic and hence, the
provision of expected credit loss is determined for the total trade receivables outstanding as on the reporting date.
Considering all such factors, ECL (net of specific provisioning) for trade receivables as at year end worked out
as follows:

The net carrying value, security and ageing of trade receivable is considered a reasonable approximation of
exposures and analysis relating to the allowance for ECL.

(c) Mutual Funds and Bank deposits

Fixed deposits, investment in mutual funds are made in accordance with the Board approved investment policy of
the company. Investments of surplus funds are made only with approved AMC's and Banks having a good market
reputation and within limits assigned. The limits are set to minimise the concentration of risks.

(ii) Liquidity risk

The Company uses liquidity forecast tools to manage its liquidity. As per the business model of the Company, the
requirement of working capital is not intensive. The Company is able to substantially fund its working capital from
advances from customers and from internal accruals and hence, there is no requirement of funding through borrowings.
In view of free cash flows, the Company has even been able to fund substantial capital expenditure from internal accruals.

(iii) Market risk

The Company is debt free as at March 31, 2025 and March 31, 2024, hence there is no interest rate risks. Even with
respect to investments in mutual funds, the impact of interest rate risk is nominal as the investment is carried in liquid or
substantially liquid funds. The Company is essentially exposed to currency risks as export sales forms substantial part
of the total sales of the Company. While the Company is mainly exposed to US Dollars, the Company also deals in other
currencies, such as, Euro, GBP etc.

The cycle from booking order to collection extends to about a year and the Company is exposed to foreign exchange
fluctuation risks during this period. As a policy, the Company remains substantially hedged through forward exchange
contracts or other simple structures. It considerably mitigates the risk and the Company is also benefitted in view of
incidental forward premium. The policy of substantial hedging insulates the Company from the exchange rate fluctuation
and the impact of sensitivity is nominal.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. No assets are classified in
this category.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. No assets are classified in this category.

There are no transfers between levels 1 and 2 during the year.

(iii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the fair value of the mutual funds is determined using daily NAV as declared for the particular scheme by the Asset
Management Company. The fair value estimates are included in Level 2.

- the fair value of foreign exchange forward contracts is determined using market observable inputs, including
prevalent forward rates for the maturities of the respective contracts and interest rate curves as indicated by Banks
and third parties.

All of the resulting fair value estimates are included in level 2

(iv) Valuation processes

The finance team has requisite knowledge and skills. The team headed by CFO directly reports to the audit committee
to arrive at the fair value of financial instruments.

(v) Fair value of financial assets and liabilities that are not measured at fair value (but fair value
disclosures are required)

The management considers that the carrying amounts of financial assets and financial liabilities recognised in the financial
statements approximate their fair values.

Note 37: Leases
Company as a Lessee

(i) During financial year 2014-15, the Company had acquired land at Sompura from Karnataka Industrial Areas Development
Board (KIADB) on a lease-cum-sale basis. The land is under lease for initial period of ten years thereafter the ownership
of the land will be transferred in favour of the Company (refer note 3(i)).

During financial year 2023-24, the Company had paid ' 85.27 million to KIADB as a final settlement under the agreement.
There is no contingent rent or restriction imposed in the lease agreement.

During the year ended March 31, 2025, upon completion of lease of ten years the Company had paid ' 0.19 million
to KIADB as a final settlement under the agreement for additional land thereafter the ownership of the land has been
transferred in favour of the Company by way of registered sale deed[Stamp duty charges of ' 11.65 million paid] ,
consequently same is classified as freehold land.

(ii) The Company has various lease contracts for vehicles and office premises used in its operations. Leases of vehicles
generally have lease term of 5 years while office premises have lease terms between 5 and 10 years. The Company's
obligations under its leases are secured by the lessor's title to the leased assets. The Company has given refundable
interest- free security deposits under certain agreements. There is no contingent rent, sublease payments or restriction
imposed in the lease agreement.

The Company also has certain leases of office premises with lease terms of 12 months or less and leases of office
equipment with low value. The Company applies the ‘short-term lease' and ‘lease of low-value assets' recognition
exemptions for these leases as per Ind AS 116.

As Lessor

The Company has given certain portions of its office premises under leases. These leases are cancellable and are
extendable by mutual consent and at mutually agreeable terms. The gross carrying amount, accumulated depreciation
and depreciation recognized in the Statement of Profit and Loss in respect of such portion of the leased premises are not
separately identifiable. There is no impairment loss in respect of such premises. No contingent rent has been recognised
in the Statement of Profit and Loss. Lease income is recognised in the Statement of Profit and Loss under “Other Income”
(refer note 21). Initial direct costs incurred, if any, to earn revenues from a lease are recognised as an expense in the
Statement of Profit and Loss in the period in which they are incurred

Note 40: Share-based payments

Triveni Turbine Ltd- Employee stock unit plan 2023 (‘the plan'): The Company instituted this scheme pursuant to the Nomination
and Remuneration Committee (‘NRC') dated January 08, 2024. As per the plan, the Company granted Nil (March 31, 2024:
1,24,735) options comprising equal number of equity shares in one or more tranches to the eligible employees of the Company.
The vested units shall be excercisable within a maximum period of 4 years from the date of vesting of units or such period as
may be determined by the NRC. All the units granted on any date shall not vest earlier than the minimum vesting period of 1
year and not later than 4 years from the date of grant or such period as determined by the NRC.

The fair value of the share options is estimated at the grant date using Black Scholes Model taking into account the terms and
conditions upon which the share options are granted and there are no cash settled alternatives for employees.

The weighted average remaining contractual life for the stock options outstanding as at March 31, 2025 is 0.89 year [March
31,2024: 2.5 years]. Exercise Period shall be within 4 years from the date of vesting.The expected life of the stock is based on
historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected
volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future
trends, which may also not necessarily be the actual outcome.

Trade receivables have increased by ' 2,293.14 million over previous year due to increase in export sales and increase
in credit period of the customer. [' 1,090.05 million of the Trade receivables [March 31, 2024: ' 286.07] are secured
by Letter of Credit/Bank Guarantees.]

During the year, impairment allowance on trade receivables was recognised amounting to ' 194.67 million (March 31,
2024: ' 61.26 million).

Contract liabilities include advances received from customers (revenue received in advance) , deferred revenue and
amount due to customers. The outstanding balances of these accounts has decreased by ' 1,146.60 million primarily
on account of increase in satisfaction of performance obligation in current year.

During the year, the Company has recognised revenue of ' 2,893.13 million out of the contract liabilities outstanding at
the beginning of the year.

iv) Performance obligation

Information about the Company's performance obligations are summarised below:

Sale of goods

The performance obligation is satisfied upon transfer of control of the goods basis the commercial and shipment
inco terms. The Company considers whether there are other promises in the contract that are separate performance
obligations to which a portion of the transaction price is allocated

Sale of services

The performance obligation is satisfied over-time or point in time based on the nature of services and payment is generally
due upon completion of services

Obligation towards warranties

The Company provides for warranties to its customers in the nature of assurance-type. The assurance-type warranty is
accounted for as obligation and provided for under Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets.

Note 45: Other Statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

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

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

(iv) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind
of funds) to any person or entity, including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (“Ultimate Beneficiaries”).

(v) The Company has not received any fund from any party(ies) (Funding Party) with the understanding that the Company shall whether,
directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like on behalf of the Ultimate beneficiaries.

(vi) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or
consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

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

(viii) The Company does not have any 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

(ix) The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or
Section 560 of Companies Act, 1956 during the financial year.

(x) No Scheme of arrangement has been approved by the competent authority in term of Section 230 to 237 of the Companies Act, 2013.

Note 46:

The Company is using an accounting ERP system wherein it has a defined process of maintaining full back up of books of account and
other relevant books and papers electronically on regular basis in a server physically located in India.

Further, 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 accounting software, except
that audit trail feature is not enabled for changes made to the underlying SQL data base. Further, no instance of audit trail feature being
tampered with was noted in respect of the accounting software.

Note 47: Approval of Standalone Financial Statements

The Standalone financial Statements were approved for issue by the Board of Directors of the Company on May 10, 2025 subject to
approval of shareholders.

As per our report of even date attached

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of Triveni Turbine Limited

Chartered Accountants

Firm’s Registration No.: 001076N/N500013

Hemant Maheshwari Dhruv M. Sawhney Vipin Sondhi

Partner Chairman & Managing Director Director & Audit Committee Chairperson

Membership No.: 096537 DIN: 00102999 DIN: 00327400

Lalit Kumar Agarwal Pulkit Bhasin

Chief Financial Officer Company Secretary [ACS: A27686]

Place: Bengaluru Place: Noida (U.P.)

Date: May 10, 2025 Date: May 10, 2025