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सेंसेक्स 77,566.16 -1.71% ↓ निफ्टी 24,005.80 -1.82% ↓ सोना ₹ 14,835/gm चांदी ₹ 2,80,000/kg पेट्रोल ₹ 94.77 डीज़ल ₹ 87.67 कच्चा तेल $ 103.75 USD ₹ 92.28

HPL Electric & Power Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

P) Provisions and Contingent liabilities

Provisions for legal claims, service warranties, volume discounts
and returns are recognised when the Company has a present
legal or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required to
settle the obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management''s
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount
rate used to determine the present value is 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.

A contingent liability is possible obligation that arises from past
events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events
beyond the control of the Company or a present obligation
that is not recognised because it is not probable that an
outflow of resources will be required to settle the obligation.
A contingent liability also arises in extremely rare cases, where
there is a liability that cannot be recognised because it cannot
be measured reliably. The Company does not recognise a
contingent liability but disclose its existence in the financial
statements unless the probability of outflow of resource is
remote.

Q) Other Operating Revenues

i) Government Grant

Grants from the government are recognised at their fair
value where there is a reasonable assurance that the grant
will be received and the Company will comply with all
attached conditions.

Government grants relating to income are deferred and
recognised in the profit or loss over the period necessary
to match them with the costs that they are intended to
compensate and presented within other income.

Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities
as deferred income and are credited to profit or loss on a
straight-line basis over the expected lives of the related
assets and presented within other income.

ii) Export Benefit

Revenue from export benefits arising from Duty
entitlement pass book (DEPB scheme), duty drawback
scheme, merchandise export incentive scheme are
recognised on export of goods in accordance with their
respective underlying scheme at fair value of consideration
received or receivable.

R) Segment Reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the Chief operating
decision maker (CODM). CODM monitors the operating results
of all strategic business units separately for the purpose of
making decisions about resource allocation and performance
assessment. Segment performance is evaluated based on profit
and loss and is measured consistently with profit and loss in the
financial statements.

S) Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of
tax, from the proceeds.

T) Dividends

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

U) Cash and Cash Equivalents

For the purpose of presentation in the Statement of Cash flows,
Cash and Cash equivalents includes cash on hand, deposits held
at call, other short-term, highly liquid investments with original
maturities of three months or less that are readily convertible
to known amounts of cash and which are subject to an
insignificant risk of changes in value, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities in
the Balance Sheet.

V) Offsetting financial instruments

Financial assets and financial 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.

W) Rounding of amounts

All amounts disclosed in the financial statements and notes have
been rounded off to the nearest lakhs as per the requirement of
Schedule III, unless otherwise stated.

X) Changes in significant accounting policies

The Company has not been required to apply any new standard,
interpretation or amendment that has been issued and
therefore there were no significant changes in the accounting
policies.

Y) Significant Accounting Judgement estimest & assumptions.

The preparation of the Company''s financial statements requires
management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures. Uncertainty
about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying
amount of the assets or liabilities affected in future periods.

Judgements, Estimates and assumptions

The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next
financial year, are described below. The Company based its
assumptions and estimates on parameters available when the
financial statements were prepared. Existing circumstances
and assumptions about future developments, however, may
change due to market changes or circumstances arising beyond
the control of the Company. Such changes are reflected in the
assumptions when they occur.

a) Defined benefit plan-Gratuity

The cost of defined benefit plans (i.e. Gratuity benefit) is
determined using actuarial valuations. An actuarial valuation
involves making various assumptions which may differ
from actual developments in the future. These include the
determination of the discount rate, future salary increases,
mortality rates and future pension increases. Due to the
complexity of the valuation, the underlying assumptions and its
long-term nature, a defined benefit obligation is highly sensitive
to changes in these assumptions. All assumptions are reviewed
at each reporting date. In determining the appropriate discount
rate, management considers the interest rates of long term
government bonds with extrapolated maturity corresponding
to the expected duration of the defined benefit obligation. The
mortality rate is based on publicly available mortality tables
for the specific countries. Future salary increases and pension
increases are based on expected future inflation rates for the

respective countries. Further details about the assumptions
used, including a sensitivity analysis, are given in Note 40.

b) Impairment of Financial assets

The impairment provisions of financial assets are based on
assumptions about risk of default and expected loss rates. The
Company uses judgement in making these assumptions and
selecting the inputs to the impairment calculation, based on
Company''s past history, existing market conditions as well as
forward looking estimates at the end of each reporting period.

c) Warranty provision

Warranty Provisions are measured at discounted present value
using pre-tax discount rate that reflects the current market
assessments of the time value of money and the risks specific
to the liability. Warranty provisions is determined based on
the historical percentage of warranty expense to sales for the
same types of goods for which the warranty is currently being
determined. The same percentage to the sales is applied for the
current accounting period to derive the warranty expense to
be accrued. It is adjusted to account for unusual factors related
to the goods that were sold, such as defective inventory lying
at the depots. It is very unlikely that actual warranty claims
will exactly match the historical warranty percentage, so such
estimates are reviewed annually for any material changes in
assumptions and likelihood of occurrence.

d) Depreciation/amortisation and useful lives of property plant
and equipment/intangible assets

Property, plant and equipment / Intangible assets are
depreciated /amortised over their estimated useful lives, after
taking into account estimated residual values. Management
reviews the estimated useful lives and residual values of
the assets annually in order to determine the amount of
depreciation / amortisation to be recorded during any
reporting period. The useful lives and residual values are based
on the Company''s historical experience with similar assets
and take into account anticipated technological changes. The
depreciation/amortisation for future period is revised if there
are significant changes from previous estimates.

e) Events occurring after Balance Sheet date

The Company evaluates events and transactions that occur
subsequent to the balance sheet date but prior to approval
of the financial statements to determine the necessity for
recognition and/or reporting of any of these events and
transactions in the financial statements. As of date, there are
no subsequent events to be recognized or reported that are not
already disclosed.

f) Provisions

Provisions and liabilities are recognised in the period when it
becomes probable that there will be a future outflow of funds
resulting from past operations or events and the amount of cash
outflow can be reliably estimated. The timing of recognition
and quantification of the liability requires the application of
judgment to existing facts and circumstances, which can be
subject to change. The carrying amounts of provisions and
liabilities are reviewed regularly and revised to take account of
changing facts and circumstances..

Secured term loan

The part of outstanding term loan (including current maturity of long term borrowings as per note 22) amounting to Rs. 10.94 crores is
secured by way of first pari-passu charge over immovable properties of the Company with working capital lenders and also first charge on
movable fixed assets financed by term lenders with FACR of 1.33 and second pari-passu charge on entire current assets of the Company
AND part of term loan (including current maturity of long term borrowings as per note 22) amounting to Rs. 56.71 crores is secured by way
of first pari-passu charge over entire current assets of the Company both present and future with working capital lenders and collaterally
secured by way of 1st pari-passu charge on entire fixed assets of the Company excluding movable fixed assets financed by term lenders,
the outstanding of which is 10.94 crores as mentioned above with FACR of 1.33 and also secured by way of 1st pari-passu charge equitable
mortgage on land and building with working capital lenders and term lenders of Rs 10.94 crores as mentioned above and 2nd pari-passu
charge on fixed assets financed by term lenders of Rs. 10.94 crores and also secured by way of personal guarantee of three promoter
directors on entire term loans.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example foreign exchange forward contracts) is
determined using valuation techniques which maximize 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.â

There are no transfer of levels during the year.

As of 31st March 2025, 31st March 2024, the fair value of cash and bank balances, trade receivables, other current financial assets and
liabilities, borrowings, trade payables approximate their carrying amount largely due to the short term nature of these instruments. For other
financial assets and liabilities that are measured at amortised cost, the carrying amounts approximate the fair value.

36 Financial risk management

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

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management
of these risks. The Company''s senior management ensures that the Company''s financial risk activities are governed by appropriate
policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and
risk objectives.

(A) Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the
credit risk at the reporting date is primarily from trade receivables. Trade receivables are typically unsecured and are derived from revenue
earned through government customers and other corporate customers. The Company has used the expected credit loss model to assess the
impairment loss or gain on trade receivables and unbilled revenue, and has provided it wherever appropriate. The following table gives the
movement in allowance for expected credit loss for the year ended 31 March, 2025:

(B) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company''s
objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its
liquidity position and maintains adequate source of financing through the use of short term bank deposits and cash credit facility. Processes and
policies related to such risks are overseen by senior management.

(i) Maturities of financial liabilities

The table below provides details regarding the contractual maturities of significant financial liabilities:

(C) 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 prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and
commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits, investments and foreign
currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at 31st March 2025. The
analyses exclude the impact of movements in market variables on: the carrying values of gratuity, pension obligation and other postÂ¬
retirement obligations; provisions; and the nonfinancial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the
effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of 31st
March 2025.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the short term debt obligation
at floating interest rates.The Company''s borrowings outstanding as at March 31,2025 comprises of floating rate loans and accordingly,
are expose to risk of fluctuation in market interest rate.

Sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates.

Sensitivity

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjust their translation for the period
end for 1% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the Rupees 1%
against the relevant currency. For a 1% weakening of the Rs. against relevant currency, there would be a comparable impact on the profits
or equity, and the balances below would be negative.

37 Capital management

(a) Risk management

For the purposes of the Company''s capital management, Capital includes equity attributable to the equity holders of the Company and all
other equity reserves. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure
and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were
made in the objectives, policies or processes for managing capital during the year ended 31st March 2025, 31st March 2024.

The Company monitors capital using net debt to equity ratio, which is net debt (as reduced by Cash and Cash Equivalent) divided by total
equity.

38 Leases

The Company''s lease asset classes primarily consist of leases for buildings and plant & machineries. The Company assesses whether a
contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of
an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of
an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially
all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the
asset.

At the date of commencement of the lease, the Company recognises a right-of-use asset (âROUâ) and a corresponding lease liability for
all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases), variable lease and
low value leases. For these short-term, variable lease and low value leases, the Company recognises the lease payments as an operating
expense on a straight-line basis over the term of the lease.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful
life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that
their carrying value may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value
less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which
the asset belongs.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of
domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company
changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing
cash flows. Lease liabilities have been included in other financial liabilities. The Company has used a single discount rate to a portfolio of
leases with similar characteristics

(i) Following is carrying value of right of use assets recognised on date of transition and the movements thereof during the year ended March
31, 2025.

vii) The average duration of the defined benefit plan obligation at the end of the reporting period is 13.32 years (31st March 2024: 11
years)

viii) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion
and other relevant factors including supply and demand in the employment market. The above information is as certified by the Actuary.

ix) The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as
a result of reasonable changes in key assumptions occurring at the end of the reporting period.

x) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated
term of the obligations.

41 Segment Reporting

a) The segment reporting of the Company has been prepared in accordance with Ind AS-108, âOperating Segmentâ (specified under
section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015). For management purposes, the
company is organised into business units based on its products and services and has identified two reportable segments viz Metering,
Systems & Services and Consumer, Industrial & Services on the basis of the nature of products, the risk return profile of individual
business and the internal business reporting systems.

b) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue
and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as
âUnallocatedâ.

c) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investment, tax related assets and other
assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as âUnallocatedâ

* Net Profit after taxes Non-cash operating expenses Interest Other non-cash adjustments
** Net Worth Total borrowings Deferred tax liabilities - Deferred Tax Assets
Note : Explanation for change in ratio by more than 25%

(i) Return on equity ratio, ROCE and Net profit ratio are improved due to growth in revenue with stable margins.

(ii) Debt service coverato ratio improved due to growth in profitability of company.

47 Additional regulatory information required by Schedule III of Companies Act, 2013

(I) Details of Benami property: No proceedings have been initiated or are pending against the Company for holding any Benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(II) Utilisation of borrowed funds and share premium: The Company has not advanced or loaned or invested funds to any other
person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:â

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

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(III) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under the
Companies Act, 2013.

(IV) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which
has an accounting impact on current or previous financial year.

(V) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(VI) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency
during the current or previous year.

(VII) Valuation of PP&E, intangible asset and investment property: The Company has not revalued its property, plant and equipment
(including right-of-use assets) or intangible assets or both during the current or previous year.

(VIII) The company has not granted any loans or advances in the nature of loans either repayable on demand

48 Previous year''s figure have been regrouped/ re-arranged, wherever considered necessary to make them comparable with corresponding
year ending 31st March, 2025.

For and on behalf of the Board

As per our report of even date attached Rishi Seth Gautam Seth

For Sakshi & Associates Managing Director Joint MD and CFO

Chartered Accountants DIN- 00203469 DIN- 00203405

F.R.N. : 025099N

Sakshi Kharabanda Lalit Seth Vivek Kumar

Proprietor Director Company Secretary

M.No. : 523802 DIN-00312007 M.No. A18491

UDIN : 25523802BMKTYH4438

Place : New Delhi Place :Kundli

Dated : 22 May, 2025

Mar 31, 2024

(d) Rights, Preferences and Restrictions attached to the shares

The company has only one class of equity shares having a par value of ''10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares are entitled to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting.

Secured term loan

The part of outstanding term loan (including current maturity of long term borrowings as per note 20) amounting to Rs. 29.35 crores is secured by way of first pari-passu charge over immovable properties of the Company with working capital lenders and also first charge on movable fixed assets financed by term lenders with FACR of 1.33 and second pari-passu charge on entire current assets of the Company AND part of term loan (including current maturity of long term borrowings as per note 20) amounting to Rs. 88.95 crores is secured by way of first pari-passu charge over entire current assets of the Company both present and future with working capital lenders and collaterally secured by way of 1st pari-passu charge on entire fixed assets of the Company excluding movable fixed assets financed by term lenders, the outstanding of which is 29.35 crores as mentioned above with FACR of 1.33 and also secured by way of 1st pari-passu charge equitable mortgage on land and building with working capital lenders and term lenders of Rs 29.35 crores as mentioned above and 2nd pari-passu charge on fixed assets financed by term lenders of Rs. 29.35 crores and also secured by way of personal guarantee of three promoter directors on entire term loans.

The interest rates on above term loans varies from 9.6% p.a. to 11.60% p.a. Vehicles loans are secured against hypothecation of respective vehicles and are repayable in maximum 60 instalments and last date of installment is May, 2027. The loan carries an interest rate from 8.6% p.a. to 8.75% p.a.

Service warranties

Product warranties:- The company gives warranties on certain products to repair or replace the items that fail to perform satisfactorily during the warranty period. Provision made represents the amount of the expected cost of meeting such obligations of rectification/replacement.

Working capital facilities (Fund based and Non Fund Based) are availed from consortium of banks led by State Bank of India. The lead bank has linked its cash credit interest rate with 6 months MCLR spread 0.95% p.a. and WCL interest with applicable MCLR linked to the tenure of WCL spread of 0.95% p.a. and these working capital facilities are repayable on demand. Working capital facilities alongwith term lenders of Rs 88.95 Crores are secured by way of first pari passu charge over entire current assets of the Company including stock and receivables both present and future and first charge on pari passu basis over Company''s entire fixed assets (excluding movable fixed assets financed by Term Lenders the outstanding of which is Rs. 29.35 Crores with FACR of 1.33 on which Term lenders have first pari passu charge). Working Capital lenders have also 1st pari passu charge by way of EM on land and building with Term Lenders (the outstanding of which is Rs 29.35 Crores) at Company''s 6 manufacturing locations. Working capital facilities and term loans are also secured by personal guarantees of three promoter directors.

As per the provisions of section 135 of the Companies Act, 2013, the Company has to spend at least 2% of average net profits of the preceding three financial years towards Corporate Social Responsibility (âCSRâ). Accordingly, a CSR committee has been formed for carrying out CSR activities. The areas for CSR activities are eradicating hunger, poverty and malnutrition, promoting preventive health care, providing relief to the poor and rural development projects.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example foreign exchange forward contracts) is determined using valuation techniques which maximize 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.

(i) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfer of levels during the year.

As of 31st March 2024, 31st March 2023, the fair value of cash and bank balances, trade receivables, other current financial assets and liabilities, borrowings, trade payables approximate their carrying amount largely due to the short term nature of these instruments.

For other financial assets and liabilities that are measured at amortised cost, the carrying amounts approximate the fair value.

35 Financial risk management

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

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management ensures that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

(A) Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are typically unsecured and are derived from revenue earned through government customers and other corporate customers. The Company has used the expected credit loss model to assess the impairment loss or gain on trade receivables and unbilled revenue, and has provided it wherever appropriate. The following table gives the movement in allowance for expected credit loss for the year ended 31 March, 2024:

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the short term debt obligation at floating interest rates.The Companyâs borrowings outstanding as at March 31,2024 comprises of floating rate loans and accordingly, are expose to risk of fluctuation in market interest rate.

(B) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and maintains adequate source of financing through the use of short term bank deposits and cash credit facility. Processes and policies related to such risks are overseen by senior management.

(ii) Foreign currency risk

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the trade receivables and payables. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the companyâs functional currency (INR).

(C) 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 prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at 31st March 2024. The analyses exclude the impact of movements in market variables on: the carrying values of gratuity, pension obligation and other post-retirement obligations; provisions; and the nonfinancial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of 31st March 2024.

Sensitivity

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjust their translation for the period end for 1% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the Rupees 1% against the relevant currency. For a 1% weakening of the Rs. against relevant currency, there would be a comparable impact on the profits or equity, and the balances below would be negative.

(ii) Dividends not recognised at the end of the reporting period

In addition to the above dividends, since year end the directors have recommended the payment of a final dividend of '' 1.00 per (10%) fully paid equity share. This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting.

37 Leases

The Group''s lease asset classes primarily consist of leases for buildings. The Group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether: (i) the contract involves the use of an identified asset (ii) the Group has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Group has the right to direct the use of the asset.

At the date of commencement of the lease, the Group recognises a right-of-use asset (âROUâ) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases), variable lease and low value leases. For these short-term, variable lease and low value leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

36 Capital management

(a) Risk management

For the purposes of the Company''s capital management, Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March 2024, 31st March 2023.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying value may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Group changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows. Lease liabilities have been included in other financial liabilities. The Company has used a single discount rate to a portfolio of leases with similar characteristics

(i) Following is carrying value of right of use assets recognised on date of transition and the movements thereof during the year ended March 31,2024.

38 The disclosure pursuant to Micro, Small & Medium Enterprises Act 2006, are as under:

a) Principal amount and the interest due thereon remaining unpaid to any supplier at the period ending 31st March, 2024 - '' 1,471.01/- lakhs (P.Y. '' 1,625.87/- lakhs)

b) Amount of interest paid by the Company in terms of Section 16 of the MSMED, along with the amount of the payment made to the beyond the appointed day during the accounting period ending 31st March, 2024 - Nil (P.Y. Nil)

c) Amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding the interest specified under the MSMED - Nil (P.Y. Nil)

vii) The average duration of the defined benefit plan obligation at the end of the reporting period is 11 years (31st March 2023: 12 years)

viii) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the Actuary.

ix) The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

x) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

a) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the Actuary.

b) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

40 Segment Reporting

a) The segment reporting of the Company has been prepared in accordance with Ind AS-108, âOperating Segmentâ (specified under section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015). For management purposes, the company is organised into business units based on its products and services and has identified four reportable segments viz Metering,Switchgear, Lighting & Electronics and cables on the basis of the nature of products, the risk return profile of individual business and the internal business reporting systems.

b) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as âUnallocatedâ.

c) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investment, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as

42 The Company do not have any outstanding commercial paper period ending 31st March, 2024. (P Y '' Nil)

43 The Company has taken various residential/ commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry. There are no restrictions placed upon the company by entering into these leases. Lease payments recognized in the Statement of Profit & Loss as rent expenses for the year.

44	Commitments
					('' in Lakhs)
	Particulars			As at 31st March 2024	As at 31st March 2023
	Estimated amount of capital contracts remaining to be executed and not provided for (net of advances)			-	27.89
45	Contingent Liabilities:
					('' in Lakhs)
	S. No	Name of Statute	Description	As at 31st March 2024	As at 31st March 2023
	1	Central Excise Act, 1944	Demand for Excise Duty before Add. Comm. LTU, New Delhi for 2008-09	16.40	16.40
	2	Central Excise Act, 1944	Demand for Excise Duty before Comm. (A), New Delhi for 2009-10 to 2015-16.	82.49	82.49
	3	Finance Act, 1994	Demand for Service Tax Credit before Commissioner Appeal, LTU, Delhi for 2012-13	1.01	1.01
	4	Finance Act, 1994	Demand for Cenvat Credit before Commissioner Appeal, LTU, Delhi for 2011-12	1.13	1.13

S. No	Name of Statute		Description	As at 31st March 2024	As at 31st March 2023
5	Haryana Vat Act,	2003	Demand for Sales Tax before Haryana Tax, Tribunal, Chandigarh for 2008-09	18.44	25.51
6	Haryana Vat Act,	2003	Demand for Sales Tax before Joint Comm., (Appeal), Rohtak for 2010-11	10.43	17.83
7	Haryana Vat Act,	2003	Demand for Sales Tax before Haryana Tax, Tribunal, Chandigarh for 2009-10	3.76	4.78
8	Haryana Vat Act,	2003	Demand for Sales Tax before Haryana Tax, Tribunal, Rohtak for 2011-12	11.66	18.45
9	Haryana Vat Act,	2003	Demand for Sales Tax before Haryana Tax, Tribunal, Rohtak for 2012-13	7.57	10.06
10	Haryana Vat Act,	2003	Demand for Sales Tax before Haryana Tax, Tribunal, Chandigarh for 2011-12	23.19	23.19
11	Haryana Vat Act,	2003	Demand for Sales Tax before Joint Comm., (Appeal), Ambala for 2011-12	4.38	4.38
12	Finance Act, 1994		Show cause notice received towards short payment of Service Tax for 2010-11 to 201415	163.04	163.04
13	Employee''s Fund Act, 1952	Provident	Demand for EPF before EPF appellate, Tribunal, New Delhi.	8.87	8.87
14	Haryana Vat Act,	2003	Demand for sales tax before Haryana Tax Tribunal for 2011-12	16.37	23.39
15	Haryana Vat Act,	2003	Demand for sales tax before Haryana Tax Tribunal for 2012-13	16.56	23.67
16	Haryana Vat Act,	2003	Demand for sales tax before Haryana Tax Tribunal for 2013-14	80.59	80.59
17	Haryana Vat Act,	2003	Demand for sales tax before Jt. Commissioner (A), Rohtak for 2013-14	3.93	4.80
18	Haryana Vat Act,	2003	Demand for sales tax before Jt. Commissioner (A), Rohtak for 2014-15	8.63	12.05
19	Haryana Vat Act,	2003	Demand for sales tax before Jt. Commissioner (A), Rohtak for 2013-14	-	18.38
20	Haryana Vat Act,	2003	Haryana Tax Tribunal, Chandigarh-Final demand after Rectification on 31.07.2017 (Revision Pending)	3.61	3.61
21	Haryana Vat Act,	2003	Haryana Tax Tribunal, Chandigarh-Pending for Rectification for 2012-13	1.97	1.97
22	Haryana Vat Act,	2003	Haryana Tax Tribunal, Chandigarh-Pending for Rectification for 2013-14	3.73	3.73
23	Haryana Vat Act,	2003	Haryana Tax Tribunal, Chandigarh-Pending for Rectification for 2014-15	0.52	0.52
24	Haryana Vat Act,	2003	Haryana Tax Tribunal-Rohtak-Appeal pending before the Jt.ETC(A),Rohtak for 2010-11	23.77	33.95
25	Haryana Vat Act,	2003	Demand for sales tax before Dy. Excise & Taxation Commissioner (ST),Sonepat for 2014-15	7.10	10.14

S. No	Name of Statute	Description	As at 31st March 2024	As at 31st March 2023
26	Haryana Vat Act, 2003	Demand for sales tax before Jt Excise Excise & Taxation Commissioner, Ambala for 201415	55.72	55.74
27	Incomet Tax Act, 1961	Income Tax demand before Asstt. Commissioner of Income Tax, Delhi for AY-2017-18	-	28.72
28	Haryana Vat Act, 2003	Demand for Sales Tax before Haryana Tax, Tribunal, Rohtak for 2015-16	41.89	41.89
29	Haryana Vat Act, 2003	Demand for Sales Tax before Haryana Tax, Tribunal, Rohtak for 2014-15	42.80	97.13
30	Haryana Vat Act, 2003	Demand for Sales Tax before Haryana Tax, Tribunal, Rohtak for 2015-16	14.28	75.76
31	Central Excise Act, 1944	Demand for Excise Duty before Deputy Comm.Central GST Gurgram for 2016-17.	1.72	1.72
32	Finance Act, 1994	Demand for Service Tax Credit before Asstt. Commissioner Gurugram for 2015-16 to 2017-18	14.78	14.78
33	Custom Act,1962	Demand for Custom Duty before Adl./Joint Comm./Customs Gr-VA,ACC Import New Custom House New Delhi for 2018-19	22.67	22.67
34	Haryana Vat Act, 2003	Demand for Sales Tax before Haryana Tax, Tribunal, Rohtak for 2016-17	73.54	73.54
35	Haryana Vat Act, 2003	Demand for Sales Tax before Haryana Tax, Tribunal, Rohtak for 2016-17	15.09	37.23
36	Haryana Vat Act, 2003	Demand for Sales Tax before Haryana Tax, Tribunal, Rohtak for 2017-18	24.19	68.87
37	CGST Act, 2017	Asst. Commissioner CGST division, Parwanoo, jabli Himachal	-	4.33
Notes :1. Based on the favorable decisions in similar cases and discussions with the solicitors, the company does not expect any liability against these matters, hence no provision has been considered in the books of the accounts.

47 Additional regulatory information required by Schedule III of Companies Act, 2013

(I) Details of Benami property: No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(II) Utilisation of borrowed funds and share premium: The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(III) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(IV) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(V) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(VI) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(VII) Valuation of PP&E, intangible asset and investment property: The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(VIII) The company has not granted any loans or advances in the nature of loans either repayable on demand

48 Previous year''s figure have been regrouped/ re-arranged, wherever considered necessary to make them comparable with corresponding year ending 31st March, 2024.

Mar 31, 2023

Provisions and Contingent liabilities

Q) Other Operating Revenues

i) Government Grant

Grants from the government are recognised at their fair
value where there is a reasonable assurance that the grant
will be received and the Company will comply with all
attached conditions.

ii) Export Benefit

R) Segment Reporting

S) Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of
tax, from the proceeds.

T) Dividends

Provision is made for the amount of any dividend declared,
being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the reporting period but

not distributed at the end of the reporting period.

U) Cash and Cash Equivalents

V) Offsetting financial instruments

W) Rounding of amounts

All amounts disclosed in the financial statements and notes have
been rounded off to the nearest lakhs as per the requirement of
Schedule III, unless otherwise stated.

X) Changes in significant accounting policies

The Company has not been required to apply any new standard,
interpretation or amendment that has been issued and
therefore there were no significant changes in the accounting
policies.

Y) Recent accounting pronouncements

New and amended standards adopted by the Company

The Ministry of Corporate Affairs had vide notification dated
March 23, 2022 notified Companies (Indian Accounting
Standards) Amendment Rules, 2022 which amended certain
accounting standards, and are effective April 1, 2022. These
amendments did not have any impact on the amounts
recognised in prior periods and are not expected to significantly
affect the current or future periods.

New and amended standards issued but not effective

The Ministry of Corporate Affairs has vide notification dated
March 31, 2023 notified Companies (Indian Accounting
Standards) Amendment Rules, 2023 (the ''Rules'') which amends
certain accounting standards, and are effective April 1 2023.

The Rules predominantly amend Ind AS 12, Income taxes,
and Ind AS 1, Presentation of financial statements. The other
amendments to Ind AS notified by these rules are primarily in
the nature of clarifications.

These amendments are not expected to have a material impact
on the company in the current or future reporting periods and
on foreseeable future transactions. Specifically, no changes
would be necessary as a consequence of amendments made to

Ind AS 12 as the companies accounting policy already complies
with the now mandatory treatment.

Z) Significant accounting judgements, estimates and assumptions

Judgements, Estimates and assumptions

a) Defined benefit plan-Gratuity

The cost of defined benefit plans (i.e. Gratuity benefit)
is determined using actuarial valuations. An actuarial
valuation involves making various assumptions which
may differ from actual developments in the future. These
include the determination of the discount rate, future
salary increases, mortality rates and future pension
increases. Due to the complexity of the valuation, the
underlying assumptions and its long-term nature, a
defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at
each reporting date. In determining the appropriate
discount rate, management considers the interest rates of
long term government bonds with extrapolated maturity
corresponding to the expected duration of the defined
benefit obligation. The mortality rate is based on publicly
available mortality tables for the specific countries. Future
salary increases and pension increases are based on
expected future inflation rates for the respective countries.
Further details about the assumptions used, including a
sensitivity analysis, are given in Note 37.

b) Impairment of Financial assets

The impairment provisions of financial assets are based
on assumptions about risk of default and expected loss
rates. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment
calculation, based on Company''s past history, existing
market conditions as well as forward looking estimates at
the end of each reporting period.

c) Warranty provision

sales for the same types of goods for which the warranty
is currently being determined. The same percentage to the
sales is applied for the current accounting period to derive
the warranty expense to be accrued. It is adjusted to
account for unusual factors related to the goods that were
sold, such as defective inventory lying at the depots. It is
very unlikely that actual warranty claims will exactly match
the historical warranty percentage, so such estimates are
reviewed annually for any material changes in assumptions
and likelihood of occurrence.

d) Depreciation/amortisation and useful lives of property
plant and equipment/intangible assets

Property, plant and equipment / Intangible assets are
depreciated /amortised over their estimated useful
lives, after taking into account estimated residual values.
Management reviews the estimated useful lives and
residual values of the assets annually in order to determine
the amount of depreciation / amortisation to be recorded
during any reporting period. The useful lives and residual
values are based on the Company''s historical experience
with similar assets and take into account anticipated
technological changes. The depreciation/amortisation for
future period is revised if there are significant changes
from previous estimates.

e) Provisions

Provisions and liabilities are recognised in the period when
it becomes probable that there will be a future outflow of
funds resulting from past operations or events and the
amount of cash outflow can be reliably estimated. The
timing of recognition and quantification of the liability
requires the application of judgment to existing facts
and circumstances, which can be subject to change. The
carrying amounts of provisions and liabilities are reviewed
regularly and revised to take account of changing facts and
circumstances.

Mar 31, 2018

Note-1

COMPANY OVERVIEW

HPL Electric & Power Limited (Formerly HPL Electric & Power Private Limited) (âthe Companyâ) is a limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956 having its registered office at 1/20, Asaf Ali Road, New Delhi. The Company is one of the leading players and Indiaâs fastest growing electrical and power distribution equipment manufacturer with products ranging from Industrial and Domestic Circuit Protection Switchgears, Cables, Energy Saving Meters, CFL & LED Lamps and Luminaries for Domestic, Commercial and Industrial applications, Modular Switches covering the entire range of household, commercial and industrial electrical needs. The Companyâs manufacturing facilities are located at 6 locations, 2 units at Gurgaon, 1 unit at village Bastara, Tehsil Gharaunda, Karnal, 1 unit at village Bhigan, Ganauar, Sonipat, 1 unit at Kundli in Haryana and 1 unit at village Shavela, Jabli in Himachal Pradesh.

The Company has R&D facilities located at Gurgaon and Kundli in Haryana, approved by Department of Scientific & Industrial Research (DSIR), Ministry of Science & Technology.

The Financial statements were approved by the Board of Directors for issue in accordance with resolution passed on May 21, 2018.

(Trade receivables include outstanding for a period exceeding six months from the date they became due for payment Rs. Nil (P.Y. Rs. Nil)

* Includes from subsidiary company Rs. 4,162.25 lakhs (31^st March 2017; Rs. 852.95 lakhs, 1^st April 2016, Rs. 1490.33/-) and from companies where directors are interested Rs. 1,037.06 lakhs (31^st March 2017; Rs. 3,780.37 lakhs, 1^st April 2016; Rs. 6,373.33 lakhs) Refer note no. 40

(d) Rights, preferences and restrictions attached to the shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares are entitled to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting. In the event of liquidation of the company, the holders of equity shares are entitled to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(f) Aggregate number of shares issued as fully paid up pursuant to contract without payment being received in cash or by way of bonus shares during the period of five years immediately preceding the date of Balance Sheet.

Equity shares allotted as fully paid up bonus shares by capitalisation of securities premium account:-

Securities premium reserve

Securities premium reserve is used to record the premium on issue of securities. The reserve is utilised in accordance with the provisions of the act.

* The term loan is secured as per the note given in note 19 and rate of interest on term loan is linked with MCLR of the bank spread. The loan is repayable in eleven equal quarterly installments, starting from 31^st December 2017 and have maturity date of 30^th June 2020.

** Vehicles loans are secured against hypothecation of respective vehicles and are repayable in maximum 60 instalments and last date of installment is Dec. 2022. The loan carries an interest rate @ 9.10% pa.

Service warranties

Product warranties:- The Company gives warranties on certain products to repair or replace the items that fail to perform satisfactorily during the warranty period. Provision made represents the amount of the expected cost of meeting such obligations of rectification/replacement.

Working capital facility are drawn from consortium of banks and are repayable on demand. State bank of India is the primary lender having an interest of 9.25% per annum.

Working capital facilities (fund based and non-fund based) are secured by way of first pari-passu charge over entire current assets of the Company including receivables both present and future and first charge on pari-passu basis over Companyâs entire fixed assets and also secured by personal guarantee of promoter directors. There is a proposal to share first charge on property, plant & equipment of the company to the extent of outstanding terms loan with additional margin which may range from 25% to 40% of the term loan in favour of term lenders if it is decided and approved by the working capital consortium led by State Bank of India, then first charge over fixed assets of the Company will be reduced to that extent.

Net debt reconciliation

This section sets out an analysis of net debt and the movements in net debt for each of the periods presented

According to the requirement of Ind AS and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, revenue for the period ended June 30, 2017, and year ended March 31, 2017 were reported inclusive of Excise Duty. The Government of india has implemented Goods and Service Tax (âGSTâ) from July 1, 2017 replacing Excise Duty, Service Tax and various other indirect taxes. As per Ind AS 18, the revenue for the year ended March 31, 2018 and March 31, 2017, is reported net of GST. Had the previously reported revenue shown net of excise duty, comparative revenue of the Company would have been as follows:-

2 (a) Corporate Social Responsibility expenditure :-

(i) Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example foreign exchange forward contracts) is determined using valuation techniques which maximize 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 are not based on observable market data, the instrument is included in level 3.

There are no transfer of levels during the year.

As of 31^st March 2018, 31^st March 2017 and 1^st April 2016, the fair value of cash and bank balances, trade receivables, other current financial assets and liabilities, borrowings, trade payables approximate their carrying amount largely due to the short term nature of these instruments.

For other financial assets and liabilities that are measured at amortised cost, the carrying amounts approximate the fair value.

3 Financial risk management

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

The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs senior management oversees the management of these risks. The Companyâs senior management ensures that the Companyâs financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Companyâs policies and risk objectives.

(A) Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are typically unsecured and are derived from revenue earned through government customers and other corporate customers. The Company has used the expected credit loss model to assess the impairment loss or gain on trade receivables and unbilled revenue, and has provided it wherever appropriate. The following table gives the movement in allowance for expected credit loss for the year ended 31 March, 2018:

(B) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Companyâs objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and maintains adequate source of financing through the use of short term bank deposits and cash credit facility. Processes and policies related to such risks are overseen by senior management.

(i) Maturities of financial liabilities

The table below provides details regarding the contractual maturities of significant financial liabilities:

(C) 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 prices comprises three types of risk, currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at 31^st March 2018. The analyses exclude the impact of movements in market variables on the carrying values of gratuity, pension obligation and other post-retirement obligations, provisions, and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of 31^st March 2018.

(i) Interest rate risk

I nterest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the short term debt obligation at floating interest rates.The Companyâs borrowings outstanding as at March 31,2018 comprises of floating rate loans and accordingly, are expose to risk of fluctuation in market interest rate.

Sensitivity

Profit or loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates.

(ii) Foreign currency risk

The Companyâs exposure to foreign currency risk at the end of the reporting period expressed in INR, are as follows

Sensitivity

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjust their translation for the period end for 1% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the Rupees 1% against the relevant currency. For a 1% weakening of the Rs. against relevant currency, there would be a comparable impact on the profits or equity, and the balances below would be negative.

4 Capital management

(a) Risk management

For the purposes of the Companyâs capital management, Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Companyâs capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended 31^st March 2018, 31^st March 2017 and as at 1^st April 2016.

The Company monitors capital using net debt to equity ratio, which is net debt (as reduced by Cash and Cash Equivalent) divided by total equity.

(ii) Dividends not recognised at the end of the reporting period

I n addition to the above dividends, since year end the directors have recommended the payment of a final dividend of Re 1 per fully paid equity share. This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting.

5 The disclosure pursuant to Micro, Small & Medium Enterprises Act 2006, are as under:

a) Principal amount and the interest due thereon remaining unpaid to any supplier at the period ending 31^st March, 2018 Rs. 2,117.38/- lakhs (31^st March 2017 Rs. 2,521.49/-, 1^st April 2016 Rs. 3,496.67/- lakhs)

d) Amount of interest accrued and remaining unpaid at the end of the accounting period ending 31^st March, 2018 - Nil (P.Y. Nil)

6 Disclosures pursuant to Ind AS-19 âEmployee Benefitsâ(specified under section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015) are given below :

a) Defined contribution plans

Contribution to defined contribution plan, recognized as expenses for the period are as under :

b) Defined benefit plans

The following tables summaries the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans.

i) Reconciliation of opening and closing balance of defined benefit obligation

b) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

vii) The average duration of the defined benefit plan obligation at the end of the reporting period is 14 years (31^st March 2017: 15 years)

viii) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the Actuary.

ix) The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

7 Segment reporting

a) The segment reporting of the Company has been prepared in accordance with Ind AS-108, âOperating Segmentâ (specified under section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015). For management purposes, the company is organised into business units based on its products and services and has identified four reportable segments viz Metering, Switchgear, Lighting & Electronics and cables on the basis of the nature of products, the risk return profile of individual business and the internal business reporting systems.

b) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as âUnallocatedâ.

c) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investment, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as âUnallocatedâ.

d) There are no customers having revenue exceeding 10% of the total revenues.

** Himachal Energy Private Limited was holding 56,25,000 equity shares in HPL Electric & Power Ltd. As per the scheme of arrangement as approved by the Honâable High Court of Himachal Pradesh vide its order 21^st March, 2016 (before IPO of the Company) the investment held by Himachal Energy Private Limited in our company was vested with another group company-HPL Projects Portfolio Private Limited. Though the said 56,25,000 equity shares of HPL Electric & Power Limited had been acquired and vested with HPL Projects Portfolio Private Limited pursuant to the scheme of arrangement before IPO; due to procedural delays in opening demat account, delay in shifting of name of beneficiary of such shares in the depository records etc., the same shown in the demat account of Himachal Energy Private Limited., which has been shifted to the demat account of HPL Projects Portfolio Private Limited on June 2, 2017

The transactions with related parties are made on terms equivalent to those that prevail in armâs length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31^st March 2017, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

All outstanding balances are unsecured and are repayable in cash.

8 First time adoption of Ind AS Transition to Ind AS

These are the Companyâs first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended 31^st March 2017 and in the preparation of an opening Ind AS balance sheet at 1^st April 2016 (The companyâs date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected The companyâs financial position, financial performance and cash flows is set out in the following tables and notes.

9(a) Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions A.1.1 Deemed cost

Ind AS 101 permits a first time adopter to elect to fair value of its property, plant and equipment as recognised in financial statements as at the date of transition to Ind AS, measured as per previous GAAP and use that as its deemed cost as at the date of transition or apply principles of Ind AS retrospectively. Ind AS 101 also permits the first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS. This exemption can be also used for intangible assets covered by Ind-AS 38. The Company has elected to consider fair value of its property, plant and equipment as its deemed cost on the date of transition to Ind AS.

A.1.2 Investments in subsidiaries, associates and joint ventures

I nd AS 101 permits the first time adopter to measure investment in subsidiaries, joint ventures and associates in accordance with Ind AS 27 at one of the following:

a) Cost determined in accordance with Ind AS 27 or

b) Deemed cost:

(i) fair value at date of transition

(ii) previous GAAP carrying amount at that date.

The Company has elected to consider previous GAAP carrying amount of its investments in subsidiaries, Joint ventures and associates on the date of transition to Ind AS as its deemed cost for the purpose of determining cost in accordance with principles of IND AS 27- âSeparate financial statementsâ.

A.2 Ind AS mandatory exceptions A.2.1 Estimates

An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1^st April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for âImpairment of financial assets based on expected credit loss modelâ in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

A.2.2 De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the derecognition requirements in Ind AS 109 retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

A.2.3 Classification and measurement of financial assets

I nd AS 101 requires an entity to assess classification and measurement of financial assets on the basis of facts and circumstances that exist on the date of transition to Ind AS. Accordingly, the Company has applied the above requirement prospectively.

A.2.4 Impairment of financial assets

Ind AS 101 requires an entity to assess and determine the impairment allowance on financial assets as per Ind AS 109 using the reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments which were initially recognised and compare that to the credit risk at the date of transition to Ind AS. The Company has applied this exception prospectively.

9(c) Notes to first-time adoption:

A Borrowings

Under the previous GAAP, transaction costs incurred in connection with borrowings were amortized upfront and charged to profit or loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method over the period of borrowing.

B Proposed Dividend

Under the previous GAAP, proposed dividend including corporate dividend tax (CDT), are recognised as liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, proposed dividend is recognised as liability in the period in which it is declared by the Company, usually when approved by the shareholders in a general meeting, or paid.

C Change in measurement of long term provisions

Under previous GAAP, the Company has accounted for long-term provision, at the undiscounted amount. In contrast, Ind AS 37 requires that where the effect of time value of money is material, the amount of provision should be the present value of the expenditures expected to be required to settle the obligation. Ind AS 37 also provides that where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognised as finance cost.

D Property, plant and equipment (PPE)

The Company has elected the option to consider fair value as deemed cost of property, plant & equipment on the date of transition to Ind AS.

E Revenue recognition

During transition to Ind AS, the Company has reassessed its revenue recognition policies. Consequent to change in policies relating to timing of revenue recognition under Ind AS, retained earnings and profit for the year ended March 31, 2017 has been adjusted.

F Expected credit loss- financial assets

As per Ind AS 109, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts. Accordingly, the Company has made the provision for expected credit loss as required under Ind AS on the financial assets and trade receivables.

G Expense relating to earlier period

Expense relating to earlier period has been adjusted in retained earnings on transition as these pertain to prior period.

H Deferred tax

Under the previous GAAP, deferred tax is calculated using the income statement approach, which focuses on difference between taxable profits and accounting profits for the period. Ind AS 12-â Income taxâ requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. Application of Ind AS has resulted in recognition of deferred tax on new temporary differences and on the adjustments arising due to adjustments made on transition.

I Others

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as prepaid rent.

J Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year.

K Excise duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and Excide duty expenses for the year ended 31^st March 2017. However, there is no impact on the total equity and profit.

L Other financial liabilities

Under previous GAAP, trade receivables were derecognised on factoring of these receivables from the banks. Under Ind AS, the factoring with recourse arrangement does not qualify for derecognition of the trade receivables. Therefore, the Company has recognised the debtors under factoring under Ind AS with corresponding increase in other financial liabilities for the year.

Notes :1. Based on the favorable decisions in similar cases and discussions with the solicitors, the company does not expect any liability against these matters, hence no provision has been considered in the books of the accounts.

2. Besides the above, show cause notices from the various departments have been received by the company, had not been treated as contingent liabilities since the company has represented to the concerned departments and does not expect any liability on this account.

10 The Board of Directors has recommended a dividend at the rate of Rs. 1/- per share of face value of Rs. 10 each for the year ended 31^st March, 2018.

11 The Company had issued commercial papers amounting to Rs. 6,000 lakhs and Rs. 4,000 lakhs during the period ending 31^st Mar, 2018 which was subscribed by HDFC Bank Ltd at discounted yield of 7.50% p.a and 8.10% p.a. The commercial paper was issued for 179 and 178 days with maturity on 6^th July, 2018 & 31^st August, 2018 respectively.

12 The Company has taken various residential/ commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry. There are no restrictions placed upon the company by entering into these leases. Lease payments recognized in the statement of profit & loss as rent expenses for the year.

Mar 31, 2016

1) Identification of Segments:

Primary- Business Segment

the Company has identified four reportable segments viz. Electronic Energy Static Meters, Switchgears, Lighting and Cables on the basis of the nature of products The risk and return profile of individual business & the internal Business reporting systems.

2) Secondary- Geographical Segment

The analysis of geographical segment is based on geographical location of the customers.

3) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which telate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocated".

4) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets, borrowings and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocated".

âWorking capita! fad, ties (fund based and non-fund based) are secured by way of first pari-passu charge over the current'' assets of ''company including receivables both present and future by way of hypothecation with corporate loan lender (IDBI Bank to the extent of Rs. 35.00 Crs) and on land and building of the company at its two units and all fixed assets of the company which are not financed by any other term lender. These facilities are further secured by second pari-passu charge over entire fixed assets of the company on which other lenders have first charge excluding assets financed by IDBI Bank and Kotak Mahindra Bank, on which these banks have excluding charge and the personal guarantees of th_{e amount}

Name of related parties with and description of relationship :

(A) Associates :

^m Enterprises Development Act, 2006 MSMED Act) for the year ended 31st March 2016 is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the company.

- Principal amount and the interest due thereon remaining unpaid to any supplier at the period ending 31st Mar 2016 - Rs,349,666,845/-(P.Y. Rs,201,696,384/-)

- Amount of interest paid by the Company in terms of Section 16 of the MSMED, along with the amount of the payment made to the beyond the appointed day during the accounting period ending 31st March, 2016 - Nil (P Y Nil)

- Amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding the interest specified under the MSMED - Nil (P.Y. Nil)

" counting period ending 31st March, 2016 â Nil

"Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

a Defined Contribution Plans

Contribution to Defined Contribution Plan, recognized as expenses for the period are as under:

5 Borrowing Costs

A sum of Rs. NIL (P.Y. ?37,466,047/-) attributable to the acquisition or construction of qualifying assets has been capitalized.

6 Segment Reporting

The segment reporting of the Company has been prepared in accordance with Accounting Standard (AS-17) ''Accounting for Segment Reporting" issued by The Institute of Chartered Accountants of India.

Segment Reporting Policies

a) Identification of Segments:

Primary-Business Segment

The company has identified four reportable segments viz Metering, Lighting and cables on the basis of the nature of products, the risk return profile of individual business and the internal business reporting systems.

b) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocated".

c) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investment, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Others"

7. The Company had issued commercial papers amounting to Rs,70.00 Crs. in two tranches of Rs. 30 crores and Rs. 40 crores during the year ending 31st Mar, 2016 which was subscribed by HDFC Bank Ltd at discounted yield of 9.20% p.a. The commercial papers were issued for 90 days with maturity on 8th June, 2016 & 29th June, 2016 respectively.

Since the above joint ventures have the constitution of âAssociation of Persons'' (AOPs), there is no fixed investment in these joint ventures. The short term mismatches in receipts and payments of these joint ventures are bridged by the Company. The maximum balance outstanding at any point of time during the year was Rs,5.01 Crs. (P.Y. Rs,10 82 Crs ) and closing balance as on 31st March, 2016 was Rs,4.84 Crs.( P.Y. Rs,4.28 Crs.).

8. As per the provisions of Section 135 of the Companies Act, 2013, the Company has to provide 2% of average net profits of preceding 3 financial years towards Corporate Social Responsibility (CSR). Accordingly, a CSR Committee has been formed for carrying out CSR activities as per Schedule VII of the Companies Act, 2013. The company has formed the trust to this specified purpose and will start contributing once this trust is registered with the concerned authorities.

9. The Company has taken various residential/ commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry. There are no restrictions placed upon the company by entering into these leases. Lease payments recognized in the Statement of Profit a Loss as rent expenses for the period.

10. Figures pertaining to previous year have been regrouped, reclassified to conform to the classification of current/corresponding period on the lines of Accounting Principles, standards 6 as well as restated standalone financial information.

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