Marine Electricals (India) Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

3.10 Provisions, contingent liabilities and contingent assets
Provision

Provisions 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. Provision 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. Provisions are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.

If the effect of the time value of money is material, provisions are discounted using a current 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 finance cost.

Contingent liabilities and contingent assets

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company or a present obligation that arises from past events where it is
either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount
cannot be made. Information on contingent liability is disclosed in the notes to the standalone financial
statements.

Contingent assets are not recognized in the standalone financial statements. However, it is disclosed only
when an inflow of economic benefits is probable.

3.11 Borrowing costs

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with
the borrowing of funds.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which

are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are substantially ready for their intended use or
sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the statement of profit and loss in the period in which they are
incurred.

3.12 Employee benefits
Short-term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short¬
term employee benefits. These benefits include salary, wages, short-term compensated absences,
performance incentives, etc. The undiscounted amount of short -term employee benefits expected to be paid
in exchange for the services rendered by employees is recognized during the period of rendering of service by
the employee.

Long-term employee benefits:

(i) Defined contribution plans:

The Company''s contribution to provident fund, superannuation fund, employee state insurance scheme
and labour welfare fund are considered as defined contribution plans. The Company''s contribution paid /
payable under the plans are recognised as an expense in the standalone statement of profit and loss
during the period in which the employee renders the related service.

(ii) Defined benefits plan:

Post-employment benefit:

The Company''s gratuity scheme is a defined benefit plan. The Company''s net obligation in respect of the
gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have
earned in return for their service in the current and prior periods; that benefit is discounted to determine
its present value. The present value of the obligation under such defined benefit plan is determined
based on independent actuarial valuation at the balance sheet date using the Projected Unit Credit
Method, which recognizes each period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation. The obligation is
measured at the present value of the estimated future cash flows. The discount rates used for
determining the present value of the obligation under defined benefit plan are based on the market yields
on Government securities as at the balance sheet date. Actuarial gains and losses are recognized
immediately in the standalone statement of profit and loss.

Other long-term employment benefit:

The employees can carry-forward a portion of the unutilised accrued compensated absences and utilise
it in future service periods or receive encashment on termination of employment. Since the
compensated absences do not fall due wholly within twelve months after the end of the period in which
the employees render the related service and are also not expected to be utilized wholly within twelve
months after the end of such period, the benefit is classified as a long-term employee benefit. The
Company records an obligation for such compensated absences in the period in which the employee
renders the services that increase this entitlement. The obligation is measured on the basis of
independent actuarial valuation using the projected unit credit method.

3.13 Leases

At inception of contract, the Company assesses whether the Contract is, or contains, a lease. 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. At inception or on reassessment of a contract that contains a lease component, the Company
allocates consideration in the contract to each lease component on the basis of their relative standalone
price.

As a lessee:

Leases are recognised as a Right-of-Use (ROU) asset at cost with a corresponding lease liability, except for
leases with term of less than twelve months (short term) and low-value assets in accordance with Ind AS 116
‘Leases''.

The cost of the right-of-use assets comprises the amount of the initial measurement of the lease liability, any
lease payments made at or before the inception date of the lease plus any initial direct costs etc.

Subsequently, the right-of-use asset is measured at cost less any accumulated depreciation and
accumulated impairment losses, if any. The right-of-use asset is depreciated using the straight-line method
from the commencement date over the shorter of lease term or useful life of right-of-use assets.

For lease liabilities at the commencement date, the Company measures the lease liability at the present value
of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate
implicit in the lease, if that rate is readily determined, if that rate is not readily determined, the lease payments
are discounted using the incremental borrowing rate.

For short-term and low value leases, the Company recognizes the lease payments as an operating expense
in the Statement of Profit and Loss on a straight-line basis over the lease term.

As a lessor:

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset
are classified as operating leases. Rental income on such operating leases are recognised in the statement of profit and
loss on an accrual basis in accordance with the lease agreement. Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same
basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

3.14 Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs)
and the redemption amount is recognised in the statement of profit and loss over the period of the borrowings
using the effective interest method.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in the statement of profit and loss as other gains/(losses).

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting period.

3.15 Earnings per share

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

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

3.16 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (“CODM”) of the Company.

iv) (a) During the year, the holding of the Company in Evigo Charge Private Limited ("Evigo") has changed from 99.44%
to 91.74% on account of various events like allotment of 2,77,000 sweat equity shares by Evigo, allotment of
11,18,382 equity shares to the Company pursuant to conversion of its loan (including interest) and acquisition of
2,500 equity shares by the Company from other shareholders of Evigo.

During the previous year, on 17 November 2023, Board of Directors of Evigo considered and approved allotment
of 10,27,777 equity shares of face value of Rs. 10 each on right issue basis by conversion of loan (including
interest) amounting to Rs. 102.78 lakhs given by the Company to Evigo. Post the allotment of shares pursuant to
conversion of loan, the shareholding of the Company in Evigo increased from 98.88% to 99.44%.

(b) During the previous year, the Company made further investment in 12,00,000 equity shares of Eltech Engineers
Madras Private Limited ("Eltech"), at face value of Rs. 10 each on 01 June 2023. The said investment was
approved by the Board of Directors in their meeting held on 13 February 2023. Post this investment, the
shareholding of the Company in Eltech increased from 70.00% to 94.00%.

(c) During the previous year, 59 no. of equity shares of AED 1500 each were issued by MEL Power Systems FZC
("MEL") for a total consideration of Rs. 399.98 lakhs (including premium) on 08 January 2024. Post allotment of
these additional equity shares, the shareholding of the Company in MEL increased from 90.00% to 93.71%.

(d) During the previous year, the Company incorporated a subsidiary company named as Xanatech Synergies
Private Limited ("Xanatech") on 22 January 2024 consequent to the joint venture agreement with its foreign
subsidiary (Xanatos Marine Limited) and subscribed 7,400 equity shares of Xanatech of face value of Rs. 10 each
amounting to Rs. 0.74 lakhs comprising 74% stake in Xanatech.

v) (a) During the year, as approved by the board of directors in their meeting held on 12 February 2025, the Company
has sold its entire 50% equity stake in Athmar India Private Limited ("Athmar") on 31 March 2025 comprising of
5,000 equity shares of Rs. 10 each for an aggregate consideration of Rs. 0.50 lakhs.

During the previous year, the Company incorporated Athmar on 07 February 2024 and subscribed 5,000 equity
shares of face value of Rs. 10 each amounting to Rs. 0.50 lakhs comprising 50% stake in Athmar. As at 31 March
2024, Athmar did not commence its business operations.

(b) During the previous year, the Board of Directors of the Company at its meeting held on 16 October 2023 accorded
its consent to acquire 49.20% of issued and paid-up equity share capital of Marks Marine Radio Private Limited
("Marks Marine") by way of acquiring of 2,460 equity shares from its shareholders for total consideration
amounting to Rs. 235.18 lakhs. The transfer of shares related to the acquisition were approved by the Board of
Marks Marine at its meeting held on 25 October 2023. Post completion of acquisition, Marks Marine has become
associate of the Company w.e.f. 25 October 2023.

(a) During the year, on 10 September 2024, the board of directors of the Company approved allotment of
52,79,160 equity shares on a preferential basis at a price of Rs. 205 each (including premium of Rs. 203 per
share) in accordance with the regulations for preferential issue contained in Chapter V of the SEBI (ICDR)
Regulations ("ICDR Regulations").

The Board on 10 September 2024 also allotted 20,00,000 convertible warrants carrying an entitlement to
subscribe to an equivalent number of equity shares of face value of Rs. 2 each at price of Rs. 205 per warrant
(including premium of Rs. 203 per warrant), being price not lower than the minimum price calculated in

accordance with the ICDR Regulations to the Promoter and Non-Promoters allotees. Each warrant is
convertible into one equity share within a period of 18 months from the date of allotment at the option of
warrant holder. As per the terms of allotment, the Company has received subscription money equivalent to
25% of the issue price and the balance 75% shall be paid by the warrant holder at the time of allotment of
equity shares pursuant to exercise of option.

(b) During the previous year, 63,50,000 convertible warrants, carrying an entitlement to subscribe to an
equivalent number of equity shares of face value of Rs. 2 each at price of Rs. 29.25 per warrant (including
premium of Rs. 27.25 per warrant), were converted into equivalent number of equity shares by the
Promoters/Non-Promoters. As per the terms of allotment, balance 75% subscription money payable by the
warrant holder at the time of allotment of equity shares pursuant to exercise of option was received by the
Company. 15,00,000 equity shares issued on conversion of warrants were reflected in Benpos report of the
Company subsequent to previous year end.

b) Rights, preference and restrictions attached to the equity shares:

The Company has single class of equity shares having a par value of Rs. 2 each. 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 will be entitled to receive any of the
remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.

(a) Indian rupee vehicle loan from ICICI Bank Limited carrying value of Rs. Nil as at 31 March 2025 (31 March 2024:
Rs. 0.53 lakhs) was secured against hypothecation of vehicle repaid in 60 monthly installments. The loan carry
interest of NA (31 March 2024: 9.75% p.a.).

(b) Indian rupee vehicle loan from HDFC Bank Limited carrying value of Rs. 8.45 lakhs as at 31 March 2025 (31
March 2024: Rs. 12.00 lakhs) secured against hypothecation of vehicle is repayable in 39 monthly installments.
The loan carry interest of 8.80% p.a. (31 March 2024: 8.80% p.a.).

(c) Indian rupee vehicle loan from HDFC Bank Limited carrying value of Rs. 19.79 lakhs as at 31 March 2025 (31
March 2024: Rs. Nil) secured against hypothecation of vehicle is repayable in 39 monthly installments. The loan
carry an interest of 9.60% p.a. (31 March 2024: NA).

(d) Indian rupee vehicle loan from IndusInd Bank Limited carrying value of Rs. 4.72 lakhs as at 31 March 2025 (31
March 2024: Rs. Nil) secured against hypothecation of vehicle is repayable in 23 monthly installments. The loan
carry an interest of 10.56% p.a. (31 March 2024: NA).

(e) Indian rupee term loan from The Karur Vysya Bank Limited carrying value of Rs. 1,112.06 lakhs as at 31 March
2025 (31 March 2024: Rs. 1,274.69 lakhs) is primarily secured by mortgage of commercial land and building
situated at ground 2 upper floors, road no.9, MIDC Marol, Plot No.16, Village Mulgaon, Andheri East, Mumbai -
400093. The loan is repayable in 120 monthly installments. The loan carries an interest of 3 months MCL rate of
the bank Spread of 0.10% p.a. (31 March 2024: 3 months MCL rate of the bank Spread of 0.10% p.a.). The
loan is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate guarantee of KDU
Enterprises Private Limited.

(f) Indian rupee term loan from Kotak Mahindra Bank Limited under Guaranteed Emergency Credit Line (GECL)
under ECLGS scheme carrying value of Rs. Nil as at 31 March 2025 (31 March 2024: Rs. 33.28 lakhs) was
secured by equitable mortgage of industrial property at plot no. 54, 57, 55 and 56, Verna Industrial Estate, Phase
IV, Salcete, Goa. The loan was repayable in 48 monthly installments including moratorium of 12 months. The
loan was carrying an interest of NA (31 March 2024: 8.00% p.a.). The loan was backed by personal guarantee of
Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited. The loan has
been repaid by the Company during the year.

(g) Indian rupee term loan from Kotak Mahindra Bank Limited carrying value of Rs. Nil as at 31 March 2025 (31
March 2024: Rs. 508.02 lakhs) was primarily secured by equitable mortgage of industrial property at plot no. 54,
57, 55 and 56, Verna Industrial Estate, Phase IV, Salcete, Goa. The loan was repayable in 60 monthly
installments. The loan was carrying an interest of NA (31 March 2024: Repo Rate Spread of 3.25% p.a.). The
loan was backed by corporate guarantee of KDU Enterprises Private Limited. The loan has been repaid by the
Company during the year.

(h) Indian rupee term loan from Kotak Mahindra Bank Limited carrying value of Rs. Nil as at 31 March 2025 (31
March 2024: Rs. 692.90 lakhs) was primarily secured by equitable mortgage of industrial property at plot no. 54,
57, 55 and 56, Verna Industrial Estate, Phase IV, Salcete, Goa. The loan was repayable in 120 monthly
installments. The loan was carrying an interest of NA (31 March 2024: Repo Rate Spread of 2.50% p.a.). The
loan was backed by corporate guarantee of KDU Enterprises Private Limited. The loan has been repaid by the
Company during the year.

(i) Indian rupee vehicle loan from Kotak Mahindra Prime Limited carrying value of Rs. 5.15 lakhs as at 31 March
2025 (31 March 2024: Rs. 9.54 lakhs) secured against hypothecation of vehicle is repayable in 60 monthly
installments. The loan carry an interest of 7.72% p.a. (31 March 2024: 7.72% p.a.).

(j) Indian rupee vehicle loan from Kotak Mahindra Prime Limited carrying value of Rs. 16.73 lakhs as at 31 March
2025 (31 March 2024: Rs. 25.64 lakhs) secured against hypothecation of vehicle is repayable in 36 monthly
installments. The loan carry an interest of 8.97% p.a. (31 March 2024: 8.97% p.a.).

(k) Indian rupee vehicle loan from Mercedes-Benz Financial Services India Private Limited carrying value of Rs.
33.31 lakhs as at 31 March 2025 (31 March 2024: Rs. 48.77 lakhs) secured against hypothecation of vehicle is
repayable in 36 monthly installments. The loan carry an interest of 8.02% p.a. (31 March 2024: 8.02% p.a.).

(l) Indian rupee vehicle loan from Mercedes-Benz Financial Services India Private Limited carrying value of Rs.
111.87 lakhs as at 31 March 2025 (31 March 2024: Rs. Nil) secured against hypothecation of vehicle is repayable
in 60 monthly installments. The loan carry an interest of 8.72% p.a. (31 March 2024: NA).

(a) Cash credit facility from State Bank of India outstanding of Rs. Nil as at 31 March 2025 (31 March 2024: Rs.
2,768.73 lakhs). There is a debit balance in the account of Rs. 999.48 lakhs as at 31 March 2025 which is
disclosed as balances with banks under cash and cash equivalents in note 17. The facility carries interest of
1.70% above 6 M MCLR (31 March 2024: 2% above 6M MCLR) and is repayable on demand. These are secured
by first pari passu charge by way of hypothecation over entire current assets viz. inventory, book debts and other
receivables etc. and all movable fixed assets, wherever situated, both present & future at Mumbai & Goa plants.
The facility is collaterally secured by:

i. Equitable / Registered Mortgage on Unit No B-1, Ground Floor, Industrial Computer and Software Premises
Co. Op. Soc. Ltd., Udyog Sadan-3, Plot no-F4, F5, F6, MIDC, Andheri (E), Mumbai owned by the Company.

ii. Equitable / Registered Mortgage on factory land & buildings bearing Survey No.30, plot no. 17 & 18, Verna
Industrial Estate, Phase-I, Verna Electronic City, Salcete, Goa owned by the Company.

iii. Hypothecation of all Plant & Machinery, present and future, at plants located in (a) B-1, Industrial Computer
and Software Premises Co. Op. Soc. Ltd., Udyog Sadan-3, Plot no-F4, F5, F6, MIDC, Andheri (E) and (b)
Survey No.30, plot no. 17 & 18, Verna Industrial Estate, Phase-I, Verna Electronic City, Salcete, Goa.

iv. Equitable / Registered Mortgage on Unit No A-2, Ground Floor, Industrial Computer and Software Premises
Co. Op. Soc. Ltd., Udyog Sadan No.3, Central Road, Near Seepz Bus Depot, Andheri (E), Mumbai owned by
M/s Philins Industrial Corporation.

v. Equitable / Registered Mortgage on Unit No B-2, D-1 & B-3 Ground Floor, Industrial Computer and Software
Premises Co. Op. Soc. Ltd., Udyog Sadan No.3, Central Road, Near Seepz Bus Depot, Andheri (E), Mumbai
owned by KDU Enterprises Private Limited.

vi. Equitable / Registered Mortgage on 502/A and 502/B, Fifth Floor, Heritage, Hiranandani gardens, CTS Nos.
20(pt), 21(pt), 22(pt) and 30(pt), Powai, Mumbai - 400076 owned by Mr. Venkatesh Uchil.

The facility is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate
guarantee of KDU Enterprises Private Limited and Philins Industrial Corporation.

(b) Cash credit facility from IndusInd Bank Limited outstanding of Rs. 757.92 lakhs as at 31 March 2025 (31 March
2024: Rs. 1,154.99 lakhs) carrying interest of Repo Rate 3.40% p.a (31 March 2024: 6M MCLR 0.75% p.a.) is
repayable on demand. These are secured by first pari-passu charge on current assets and moveable fixed
assets of the Company, both present and future. The facility is collaterally secured against fixed deposit of Rs.
2,034.32 lakhs (31 March 2024: Rs. 1,911.00 lakhs). The facility is backed by personal guarantee of Mr.
Venkatesh Uchil & Mr. Vinay Uchil & corporate guarantee of KDU Enterprises Private Limited.

(c) Cash credit facility from Kotak Mahindra Bank Limited outstanding of Rs. 611.53 lakhs as at 31 March 2025 (31
March 2024: Rs. 948.84 lakhs) carrying interest of 3M Repo rate 3.1% (31 March 2024: 3M Repo rate 3.1%) is
repayable on demand. These are secured by first pari passu hypothecation charge on all existing and future
receivables/current assets/ moveable assets/moveable fixed assets of the Company. The facility is collaterally
secured by exclusive charge on land and building at plot no N-51, 52, 59 and 60, Phase IV, Verna Industrial
Estate, Salcete, Goa owned by the Company. The facility is backed by personal guarantee of Mr. Venkatesh
Uchil & Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited.

(d) Cash credit facility from Yes Bank Limited outstanding of Rs. 201.35 lakhs as at 31 March 2025 (31 March 2024:
Rs. Nil) carrying interest of TBILL 3M 2.68% (31 March 2024: NA) is repayable on demand. These are secured
by first pari passu hypothecation charge on current assets of the Company. The facility is collaterally secured by
exclusive charge on property located at plot no N-54, 55, 56 and 57, Phase IV, Verna Industrial Estate, Salcete,
Goa. The facility is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate
guarantee of KDU Enterprises Private Limited.

(e) The quarterly returns/ statements read with subsequent revisions, if any, filed by the Company with the banks are
in agreement with the books of accounts.

Note:

(a) During the year, on 10 September 2024, the board of directors of the Company approved allotment of 52,79,160
equity shares on a preferential basis at a price of Rs. 205 each (including premium of Rs. 203 per share) in
accordance with the regulations for preferential issue contained in Chapter V of the SEBI (ICDR) Regulations
("ICDR Regulations").

The Board on 10 September 2024 also allotted 20,00,000 convertible warrants carrying an entitlement to subscribe
to an equivalent number of equity shares of face value of Rs. 2 each at price of Rs. 205 per warrant (including
premium of Rs. 203 per warrant), being price not lower than the minimum price calculated in accordance with the
ICDR Regulations to the Promoter and Non-Promoters allotees. Each warrant is convertible into one equity share
within a period of 18 months from the date of allotment at the option of warrant holder. As per the terms of allotment,
the Company has received subscription money equivalent to 25% of the issue price and the balance 75% shall be
paid by the warrant holder at the time of allotment of equity shares pursuant to exercise of option.

(b) During the previous year, 63,50,000 convertible warrants, carrying an entitlement to subscribe to an equivalent
number of equity shares of face value of Rs. 2 each at price of Rs. 29.25 per warrant (including premium of Rs.
27.25 per warrant), were converted into equivalent number of equity shares by the Promoters/Non-Promoters.
As per the terms of allotment, balance 75% subscription money payable by the warrant holder at the time of
allotment of equity shares pursuant to exercise of option was received by the Company.

46 Employee benefits

(i) Defined contribution plans:

The Company makes contributions, determined as a specified percentage of employees salaries, in respect of
qualifying employees towards provident fund, employees state insurance scheme and labour welfare scheme,
which are defined contribution plans. The obligation of the Company is limited to the amount contributed and it
has no further contractual nor any constructive obligation. The contributions are charged to the statement of
profit and loss as they accrue. The amount recognized as an expense towards contribution to provident and other
funds for the year aggregated to Rs. 161.31 lakhs (31 March 2024: Rs 171.24 lakhs).

(ii) Defined benefit plans:

The Company operates an unfunded post-employment defined benefit plan that provides for gratuity benefit.
The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive
gratuity at 15 days salary (salary last drawn) for each completed years of service at the time of retirement / exit.

The Company determines the gratuity liability based on the actuarial valuation using Projected Unit Credit
Method by an Independent firm of Actuaries that is registered with The Institute of Actuaries of India.

The following table summarizes the position of obligation relating to gratuity plan:

There are no financial instruments that have been classified as Fair Value through Profit and Loss (FVTPL) and Fair
Value through Other Comprehensive Income (FVTOCI).

^A Fair values for these financial instruments have not been disclosed because their carrying amount are a
reasonable approximation of their fair values.

Fair value hierarchy

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Financial instruments - risk management

The Company has exposure to the following risks arising from financial instruments: credit risk (refer note (b) below);
liquidity risk (refer note (c) below) and market risk (refer note (d) below):

(a) Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the
Company''s risk management framework. The Company''s risk management policies are established to identify
and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and
adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the Company''s activities.

The Company''s board oversees how management monitors compliance with the Company''s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced
by the Company. The Company, through its training and management standards and procedures, aims to maintain a
disciplined and constructive control environment in which all employees understand their roles and obligations.

(b) Credit risk

Credit risk is the risk that a counter party fails to discharge its obligation to the Company. The maximum credit risk
comprises the carrying amounts of the financial assets. The Company''s exposure to credit risk arises mainly
from cash and cash equivalents, other bank balances, trade receivables, loans and other financial assets. The
Company continuously monitors defaults of customers and other counterparties and incorporates this
information into its credit risk controls.

(i) Credit risk management

Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on
the basis of assumptions, inputs and factors specific to the class of financial assets.

(ii) Credit risk exposure

Cash and cash equivalents and other bank balances

Credit risk related to cash and cash equivalents and other bank balances is managed by accepting highly
rated banks and diversifying bank deposits and accounts in different banks. Management does not expect
any losses from non-performance by these counterparties.

Loans and other financial assets measured at amortized cost

Loans and other financial assets measured at amortized cost includes deposits, staff advances, interest
accrued on loans/deposits, unbilled revenue, loans and other receivables. Credit risk related to these is
managed by monitoring the recoverability of such amounts continuously, while at the same time internal
control system in place ensures that amounts are within defined limits. The expected credit loss on these
financial instruments is expected to be insignificant.

Trade receivables

Credit risk arise from possibility that customer may default on its obligation to make timely payments, resulting
into financial loss. The maximum exposure to the credit risk is primarily from trade receivables. The expected
credit loss allowance is based on the ageing of the days for which the receivables are due and the expected
loss rates.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to settle or meet its obligations on time. The Company''s
primary sources of liquidity are cash generated from operations. The cash flows from operating activities are
driven primarily by operating results and changes in the working capital requirements.

The Company believe that its liquidity position is adequate to fund the operating and investing needs and to
provide with flexibility to respond to further changes in the business environment.

The Company is contesting the demands and the management, including its tax advisors, believe that its
position will likely be upheld in the appellate process. No tax expense has been accrued in the standalone
financial statements for the tax demand raised. The management believes that the ultimate outcome of this
proceedings will not have a material adverse effect on the Company''s financial position and results of operations.

(ii) The Company has received a demand order dated 31.08.2020 from the office of The Commissioner of Customs
raising a demand of Rs. 120.62 lakhs on the Company u/s 28(8) of the Customs Act, 1962 read with section 5(1) of
IGST Act, 2017 with regards to classification under incorrect CTH of copper busbar imported by the Company during
the period from 13.08.2014 to 30.10.2018. The order also imposes a penalty of Rs. 12 lakhs on the Company and
interest u/s 28AA of the Customs Act, 1962. The amount disclosed above is exclusive of interest as the same is not
currently quantifiable. The Company has filed an appeal against the said order on 23.10.2020. Based on the legal
opinion obtained by the Company from an independent firm of advocates, the management believes that the
ultimate outcome of the proceedings will not have an adverse effect on the Company''s financial position.

(iii) The Company in the year 2017 was awarded a contract for setting up a 50 MW capacity solar power project (the
"Project") in Tamil Nadu. The Company subcontracted the EPC portion to a sub-contractor. The obligations of the
sub-contractor for the project were not completely fulfilled by the sub-contractor leading to dispute and arbitration
between the Company and the sub-contractor. The Company received a final arbitration award on 1 August
2024, directing payment of Rs. 2,134 lakhs plus interest to the sub contractor. The Company has admitted part of
the claim at Rs. 85.37 lakhs and has paid the admitted amount along with interest of Rs. 55.10 lakhs which have
been charged to standalone statement of profit and loss in the current financial year. On the balance part of the
award, based on the legal advice received from the legal advisors who are of the considered opinion that the
Company has a reasonably good prospect of securing a favourable outcome, the Company has subsequently
filed application with the Bombay High Court on 24 October 2024 to set aside the arbitration award and the
outcome is awaited. Considering the uncertainty and potential outcome, the Company has further made a
prudent provision of Rs. 1,077.51 lakhs during the current financial year.

(iv) During the FY 2021-22, pursuant to inspection by GST Department, the Company paid Rs. 120.14 lakhs towards
GST on bank guarantee invocation. The Company during FY 2022-23 filed application for refund of the said
amount which was rejected by the Department vide its order dated 27 January 2023. The Company has filed an
appeal against the rejection order with the appellate authorities on 06 March 2023. Pending final outcome, the
Company continues to carry the amount paid as balance with government authorities. The management believes
that the ultimate outcome of the proceedings will not have an adverse effect on the Company''s financial position.

61 Events after the reporting period

As approved by the board of directors in their meeting held on 12 February 2025, the Company subsequent to year
end on 12 May 2025 has completed acquisition of additional 10% equity shares of Marks Marine Radio Private
Limited (''''MMRPL") for a consideration of Rs 50 lakhs thereby increasing its stake from 49.2% to 59.23%. Post this
acquisition, MMRPL has became a subsidiary of the Company.

62 Additional regulatory information required by Schedule III

i) Details of benami property held:

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) Wilful defaulter:

The Company is not declared wilful defaulter by any bank or financial institution or other lender during the year.

iii) Relationship with struck off companies:

The Company does not have any transactions with companies struck off.

iv) Registration of charges or satisfaction with Registrar of Companies (ROC):

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

v) Utilisation of borrowed funds and share premium:

A. 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.

B. 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.

vi) Compliance with number of layers of companies:

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

vii) Valuation of Property, Plant and Equipment (including Right-of-use assets) and Intangible assets:

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) Compliance with approved Scheme of Arrangement:

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

63 Details of crypto currency or virtual currency:

The Company has not traded or invested in Crypto currency or Virtual currency during the financial year ended 31
March, 2025. Further, the Company has also not received any deposits or advances from any person for the
purpose of trading or investing in crypto currency or virtual currency.

64 Undisclosed income:

The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year 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).

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Mar 31, 2024

(i) Investment property comprise of a commercial building that is leased to third party. Subsequent renewal of license agreement are negotiated with the tenant and average renewal period ranges between three and five years.

(ii) Refer note 24 and 29 for information on investment property pledged as security by the Company.

(iii) (a) As at 31 March 2024, the fair value of the property has been updated to Rs. 2,327.60 lakhs. This represents

a revision from the previous year''s fair value of Rs. 2,917.04 lakhs.

(b) For the year ended 31 March 2024, the fair value of the Company''s investment property has been determined using the ready reckoner rate published by local municipal authorities, rather than an independent valuation report. The ready reckoner rate provides a standardized valuation for properties similar in type and location for tax and regulatory purposes.

For the year ended 31 March 2023, the fair value of the Company''s investment property was based on valuation performed by an accredited independent valuer in the financial year ended 31 March 2022. The management believed that there was no significant fluctuation in the fair value of the property during the year ended 31 March 2023. The fair value of the Company''s investment property was arrived at using Composite rate method. Under Composite rate method, rate is arrived using comparable sales instance for similar property with same specification in the adjoining locality and further adjusted for depreciation on building component. The main inputs used are age of the building, life of the building, salvage value and composite rate.

(c) The management believes that the ready reckoner rate is a reliable estimate of the property''s fair value, considering the relative stability in property values and minimal market fluctuations during the year.

* Consequent to the approval by the Audit Committee by Circular Resolution and by the General Purpose Committee (GPC) of the Board of Directors in their respective meetings held on 23 September 2022, the Company has increased its % holding in its Subsidiary, Narhari Engineering Works, a partnership firm, by way of further acquisition of 19% holding from the existing partners for a consideration of Rs 197.93 lakhs based on the valuation report by a registered valuer, resulting in total holding of 99% post acquisition. The reconstituted partnership deed is entered between the parties w.e.f. 30 September 2022.

(iii) The Company has neither raised loans during the year on the pledge of securities held in its subsidiaries and associates (as defined under the act) nor has not taken any funds from any entity or persons on account of or to meet the obligations of its subsidiaries and associates. The Company does not hold any investment in any jointly controlled entity (as defined under the act) during the year ended 31 March 2024.

iv) a) During the year, the Company has made further investment in 12,00,000 equity shares of one of its subsidiary, Eltech Engineers Madras Private Limited ("Eltech"), at face value of Rs 10 each on 01 June 2023. The said investment was approved by the Board of Directors in their meeting held on 13 February 2023. Post this investment, the shareholding of the Company in Eltech has increased from 70.00% to 94.00%.

b) The Board of Directors of the Company on 13 February 2023 approved further investment of upto Rs 400.00 lakhs in MEL Power Systems FZC ("MEL"), a foreign subsidiary of the Company, by way of purchase of additional equity shares to be alloted to the Company by MEL. During the year, 59 no. of equity shares of AED 1500 each were issued by MEL for a total consideration of Rs 399.98 lakhs (including premium) on 08 January 2024. Post allotment of these additional equity shares, the shareholding of the Company in MEL has increased from 90.00% to 93.71%.

c) On 17 November 2023, Board of Directors of a subsidiary company, Evigo Charge Private Limited ("Evigo"), has considered and approved allotment of 10,27,777 Equity Shares of face value of Rs 10 each on right issue basis by conversion of loan (including interest) amounting to Rs. 102.78 lakhs given by the Company to Evigo. Post the allotment of shares pursuant to conversion of loan, the shareholding of the Company in Evigo has increased from 98.88% to 99.44%.

d) During the year, the Company has incorporated a subsidiary company named as Xanatech Synergies Private Limited ("Xanatech") on 22 January 2024 consequent to the joint venture agreement with its foreign subsidiary, Xanatos Marine Ltd. and has subscribed 7,400 equity shares of Xanatech of face value of Rs 10 each amounting to Rs 0.74 lakhs comprising 74% stake in Xanatech.

v) a) During the year, the Board of Directors of the Company at its meeting held on 16 October 2023 accorded its consent to acquire 49.20% of issued and paid-up equity share capital of Marks Marine Radio Private Limited ("Marks Marine") by way of acquiring of 2,460 equity shares from its shareholders for total consideration amounting to Rs 235.18 lakhs. The transfer of shares related to the acquisition were approved by the Board of Marks Marine at its meeting held on 25 October 2023.

b) During the year, the Company has incorporated a company named as Athmar India Private Limited ("Athmar") on 07 February 2024 and has subscribed 5,000 equity shares of Athmar of face value of Rs 10 each amounting to Rs 0.50 lakhs comprising 50% stake in Athmar. As at 31 March 2024, Athmar is yet to commence its business operations.

* Consequent to the approval by the Board of Directors in its meeting dated 22 August 2022 and subsequent approval by the Shareholders by Special Resolution in the Annual General Meeting dated 19 September 2022, the Board, on 30 September 2022 has allotted 1,00,00,000 Convertible Warrants carrying an entitlement to subscribe to an equivalent number of equity shares of face value of Rs 2 each at price of Rs 29.25 per warrant (including premium of Rs 27.25 per warrant), being price not lower than the minimum price calculated in accordance with the Regulations for Preferential Issue in Chapter V of SEBI (ICDR) Regulations, 2018 to the Promoters and Non-Promoters allotees. Each warrant is convertible into one equity share within a period of 18 months from the date of allotment at the option of warrant holder. As per the terms of allotment, the Company has received subscription money equivalent to 25% of the issue price and the balance 75% shall be paid by the warrant holder at the time of allotment of equity shares pursuant to exercise of option.

During the year, 63,50,000 (31 March 2023: 36,50,000) Convertible Warrants have been converted into equivalent number of equity shares by the Promoters/Non-Promoters. As per the terms of allotment, the balance 75% subscription money payable by the warrant holder at the time of allotment of equity shares pursuant to exercise of option have been received by the Company. 15,00,000 (31 March 2023: 36,50,000) equity shares issued on conversion of warrants are reflected in Benpos report of the Company subsequent to year end. b) Rights, preference and restrictions attached to the equity shares:

The Company has single class of equity shares having a par value of Rs. 2 each. 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 will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

f) The Company has neither allotted any fully paid-up equity share by way of bonus shares, or in pursuant to contract without payment being received in cash nor has bought back any class of equity shares during the period of five year immediately preceding the balance sheet date.

Nature and purpose of reserves:

Securities premium: Securities premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the provision of the Companies Act, 2013.

General reserve: General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer of one component of equity to another.

Retained earnings: Retained earnings represents surplus / accumulated earnings of the Company and are available for distribution to shareholders. Further, it also includes the impact of remeasurements of the defined benefit obligations, net of tax.

Other component of equity: Other component of equity represents fair value of financial guarantee.

Money received against share warrants: Represents subscription money received by the Company as per the terms of allotment equivalent to 25% of the issue price of share warrants.

(a) Indian rupee vehicle loan from ICICI Bank Limited carrying value of Rs 0.53 lakhs as at 31 March 2024 (31 March 2023: Rs 1.16 lakhs) secured against hypothecation of vehicles is repayable in 60 monthly installments. The loans carry interest of 9.75% p.a. (31 March 2023: 9.00% p.a. to 9.75% p.a.).

(b) Indian rupee vehicle loan from HDFC Bank Limted carrying value of Rs 12.00 lakhs as at 31 March 2024 (31 March 2023: Rs N.A.) secured against hypothecation of vehicle is repayable in 39 monthly installments. The loan carry interest of 8.80% p.a. (31 March 2023: N.A.).

(c) Indian rupee term loan from Kotak Mahindra Bank Limited carrying value of Rs Nil as at 31 March 2024 (31 March 2023: Rs 298.56 lakhs) was primarily secured by equitable mortgage of industrial property at plot no. 54, 57, 55 and 56, Verna Industrial Estate, Phase IV, Salcete, Goa. The loan was repayable in 60 monthly installments. The loan carried an interest of N.A. (31 March 2023: K-MCLR 6M Spread of 1.15% p.a.). The loan was backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited.

The tenure of the loan had completed and the loan has been repaid by the Company during the current year.

(d) Indian rupee term loan from Kotak Mahindra Bank Limited under Guaranteed Emergency Credit Line (GECL) under ECLGS scheme carrying value of Rs 33.28 lakhs as at 31 March 2024 (31 March 2023: Rs 108.79 lakhs) is secured by equitable mortgage of industrial property at plot no. 54, 57, 55 and 56, Verna Industrial Estate, Phase IV, Salcete, Goa. The loan is repayable in 48 monthly installments including moratorium of 12 months. The loan carries an interest of 8.00% p.a. (31 March 2023: 8.00% p.a.). The loan is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited.

(e) Indian rupee term loan from The Karur Vysya Bank Limited carrying value of Rs 1,274.69 lakhs as at 31 March 2024 (31 March 2023: Rs.1,372.97 lakhs) is primarily secured by mortgage of commercial land and building situated at ground 2 upper floors, road no.9, MIDC Marol, Plot No.16, Village Mulgaon, Andheri East, Mumbai -400093. The loan is repayable in 120 monthly installments. The loan carries an interest of 3 months MCL rate of the bank Spread of 0.10% p.a. (31 March 2023: 3 months MCL rate of the bank). The loan is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited.

(f) Indian rupee term loan from Kotak Mahindra Bank Limited carrying value of Rs 508.02 lakhs as at 31 March 2024 (31 March 2023: Rs 629.33 lakhs) is primarily secured by equitable mortgage of industrial property at plot no. 54, 57, 55 and 56, Verna Industrial Estate, Phase IV, Salcete, Goa. The loan is repayable in 60 monthly installments. The loan carries an interest of Repo Rate Spread of 3.25% p.a. (31 March 2023: Repo Rate Spread of 3.25% p.a.). The loan is backed by corporate guarantee of KDU Enterprises Private Limited.

(g) Indian rupee term loan from Kotak Mahindra Bank Limited carrying value of Rs 692.90 lakhs as at 31 March 2024 (31 March 2023: N.A.) is primarily secured by equitable mortgage of industrial property at plot no. 54, 57, 55 and 56, Verna Industrial Estate, Phase IV, Salcete, Goa. The loan is repayable in 120 monthly installments. The loan carries an interest of Repo Rate Spread of 2.50% p.a. (31 March 2023: NA). The loan is backed by corporate guarantee of KDU Enterprises Private Limited.

(h) Indian rupee vehicle loan from Kotak Mahindra Prime Limited carrying value of Rs 9.54 lakhs as at 31 March 2024 (31 March 2023: Rs 13.61 lakhs) secured against hypothecation of vehicle is repayable in 60 monthly installments. The loan carry an interest of 7.72% p.a. (31 March 2023: 7.72% p.a.)

(i) Indian rupee vehicle loan from Kotak Mahindra Prime Limited carrying value of Rs. Nil as at 31 March 2024 (31 March 2023: Rs.5.77 lakhs) secured against hypothecation of vehicle was repayable in 36 monthly installments. The loan carried an interest of N.A. (31 March 2023: 8.50% p.a to 9.00% p.a)

(j) Indian rupee vehicle loan from Mercedes-Benz Financial Services India Private Limited carrying value of Rs. 48.77 lakhs as at 31 March 2024 (31 March 2023: N.A.) secured against hypothecation of vehicle is repayable in 36 monthly installments. The loan carry an interest of 8.02% p.a. (31 March 2023: N.A.)

(k) Indian rupee vehicle loan from Kotak Mahindra Prime Limited carrying value of Rs. 25.64 lakhs as at 31 March 2024 (31 March 2023: N.A.) secured against hypothecation of vehicle is repayable in 36 monthly installments. The loan carry an interest of 8.97% p.a. (31 March 2023: N.A.)

(a) Cash credit facility from State Bank of India outstanding of Rs 2,768.73 lakhs as at 31 March 2024 (31 March 2023: Rs 2,034.10 lakhs) carrying interest of 2.00% above 6 M MCLR (31 March 2023: 2% above 6M MCLR) is repayable on demand. These are secured by first pari passu charge by way of hypothecation over entire current assets viz. inventory, book debts and other receivables etc. and all movable fixed assets, wherever situated, both present & future at Mumbai & Goa plants. The facility is collaterally secured by:

i) Equitable / Registered Mortgage on Unit No B-1, Ground Floor, Industrial Computer and Software Premises Co. Op. Soc. Ltd., Udyog Sadan-3, Plot no-F4, F5, F6, MIDC, Andheri (E), Mumbai owned by company.

ii) Equitable / Registered Mortgage on factory land & buildings bearing Survey No.30, plot no. 17 & 18, Verna Industrial Estate, Phase-I, Verna Electronic City, Salcete, Goa owned by company.

iii) Hypothecation of all Plant & Machinery, present and future, at Mumbai and Goa plants.

iv) Equitable / Registered Mortgage on Unit No A-2, Ground Floor, Industrial Computer and Software Premises Co. Op. Soc. Ltd., Udyog Sadan No.3, Central Road, Near Seepz Bus Depot, Andheri (E) Mumbai owned by M/s Philins Industrial Corporation

v) Equitable / Registered Mortgage on Unit No B-2, D-1 & B-3 Ground Floor, Industrial Computer and Software Premises Co. Op. Soc. Ltd., Udyog Sadan No.3, Central Road, Near Seepz Bus Depot, Andheri (E) Mumbai owned by KDU Enterprises Private Limited

vi) Equitable / Registered Mortgage on 502/A and 502/B, Fifth Floor, Heritage, Hiranandani gardens, CTS Nos. 20(pt), 21(pt), 22(pt) and 30(pt), Powai, Mumbai - 400076 owned by Mr. Venkatesh Uchil.

The facility is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited and Philins Industrial Corporation.

(b) Cash credit facility from Indusind Bank Ltd outstanding of Rs 1,154.99 lakhs as at 31 March 2024 (31 March 2023: Rs 677.21 lakhs) carrying interest of floating rate of 6M MCLR 0.75% p.a (31 March 2023: 6M MCLR 0.75% p.a.) is repayable on demand. These are secured by first pari-passu charge on entire current assets of the Company. The facility is collaterally secured against fixed deposit of Rs. 1,911.00 lakhs.

The facility is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil & corporate guarantee of KDU Enterprises Private Limited.

(c) Cash credit facility from Kotak Mahindra Bank Ltd outstanding of Rs 948.84 lakhs as at 31 March 2024 (31 March 2023: Rs N.A.) carrying interest of floating rate of 3M Repo rate 3.1% (31 March 2023: N.A) is repayable on demand. These are secured by first pari passu hypothecation charge on all existing and future receivables/current assets/ moveable assets/moveable fixed assets of the Company. The facility is collaterally secured by exclusive charge on Land and building at plot no N-51,52,59 and 60 Phase IV Verna Industrial Estate, Salcete, Goa owned by the Company

The facility is backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited.

(d) Cash credit facility from Axis Bank Limited outstanding of Rs Nil as at 31 March 2024 (31 March 2023: Rs 256.45 lakhs) carrying interest of N.A. (31 March 2023: Repo 4.25%). was repayable on demand. These was secured by hypothecation of entire current assets including stock, raw material, semi-finished goods, consumable stores, receivables, bills, deposits etc. and moveable fixed assets both present and future of the Company in pari passu with other banks. The facility was collaterally secured by exclusive charge on industrial property situated at Plot No. C1, B-71 and C1, B-72, GIDC Industrial Estate, Surat Hazira Road, Ichchpore, Bhatpore, Opp. GAIL Colony, Surat - 394510 and exclusive charge on land and building at Plot No. N-51, 52, 59 & 60, Phase IV, Verna Industrial Estate, Salcete, Goa owned by the Company. The facility was backed by personal guarantee of Mr. Venkatesh Uchil & Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited.

During the year, the Company has closed cash credit facility and all hypothecation charge & charge on collateral securities have been released. There is a debit balance in the account as at 31 March 2024 which is disclosed as balances with banks under Cash and cash equivalents in note 17.

(e) The quarterly returns/ statements read with subsequent revisions, if any, filed by the Company with the banks are in agreement with the books of accounts.

Trade receivables and contract balances:

(i) The Company classifies the right to consideration in exchange for deliverables as either a receivable or as contract asset.

(ii) A receivable is a right to consideration that is unconditional upon passage of time.

(iii) The contract assets primarily relate to the Company''s right to consideration for work completed but not billed at the reporting date. The contract assets are transferred to receivables when the right become unconditional. Contract assets are presented in note 21.

(iv) The contract liabilities primarily relate to the advance consideration received from customers. Contract liabilities are presented in note 32.

* During the previous year, the Company has allotted 1,00,00,000 Convertible Warrants carrying an entitlement to subscribe to an equivalent number of equity shares of face value of Rs 2 each at price of Rs 29.25 per warrant (including premium of Rs 27.25 per warrant). As per the terms of allotment, the Company has received subscription money equivalent to 25% of the issue price and the balance 75% shall be paid by the warrant holder at the time of allotment of equity shares pursuant to exercise of option. Of the above, 63,50,000 (31 March 2023: 36,50,000) Convertible Warrants have been converted into equivalent number of equity shares during the year and the balance 75% subscription money payable by the warrant holder at the time of allotment of equity shares pursuant to exercise of option have been received by the Company.

46 Employee benefits

(i) Defined contribution plans:

The Company makes contributions, determined as a specified percentage of employees salaries, in respect of qualifying employees towards provident fund, employees state insurance scheme and labour welfare scheme, which are defined contribution plans. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The contributions are charged to the statement of profit and loss as they accrue. The amount recognized as an expense towards contribution to provident and other funds for the year aggregated to Rs. 171.24 lakhs (31 March 2023: Rs 117.16 lakhs).

(ii) Defined benefit plans:

The Company operates an unfunded post-employment defined benefit plan that provides for gratuity benefit. The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive gratuity at 15 days salary (salary last drawn) for each completed years of service at the time of retirement / exit.

The Company determines the gratuity liability based on the actuarial valuation using Projected Unit Credit Method by an Independent firm of Actuaries that is registered with The Institute of Actuaries of India.

The following table summarizes the position of obligation relating to gratuity plan:

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amount shown below:

The sensitivity is performed on the DBO at the respective valuation date by modifying one parameter whilst retaining other parameters constant. The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

Risk exposures:

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

(A) Salary Increases: Actual salary increases will increase the plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

(B) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan’s liability.

(C) Withdrawals: Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact plan’s liability.

(D) Mortality & disability: Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

(iii) Other long-term employee benefits:

Compensated absences

The compensated absences cover the company’s liability for earned leave.

The Company has recognised an amount of Rs. 59.70 lakhs (31 March 2023: Rs. 46.56 lakhs) as an expense towards compensated absences and included in “Employee benefits expense” in the Statement of Profit and Loss. The Company has determined the liability for compensated absences based on the actuarial valuation using Projected Unit Credit Method.

49.Segment information

The Company is primarily engaged into the business of providing integrated electrical and automation solution. The main segments of the Company are:

a. Marine: Providing products and services of navigational equipment''s etc in new ship building.

b. Industry: Providing products and services of power distribution and solutions for industries like data centre, industrial and large buildings.

As per Ind AS 108 - "Operating Segments", operating segments are those components of the business whose operating results are reviewed by the Chief Operating Decision Maker ("CODM") to make decisions for performance assessment and resource allocation. Previously, the Company was disclosing two business segments i.e. Electricals & Electronics and Solar. In the board meeting dated 29 May 2023, board approved change in operating segment reporting between two business segments i.e. Marine and Industry, as segments based on how CODM make decision internally for performance assessment and resource allocation.

Pursuant to approval by Board, the Company has identified its reportable segment as Marine and Industry during the year and accordingly previous period / year figures have been regrouped / rearranged among those segments.

The CODM does not review assets and liabilities for each operating segment separately, hence segment disclosure relating to assets and liabilities have not been furnished.

Information about major customers

There is 1 (31 March 2023: 2) customers contributing in excess of 10% of the total revenue of the Company amounting to Rs 7,728.44 lakhs for the year ended 31 March 2024 (31 March 2023: Rs 10,089.88 lakhs).

There are no financial instruments that have been classified as Fair Value through Profit and Loss (FVTPL) and Fair Value through Other Comprehensive Income (FVTOCI).

^A Fair values for these financial instruments have not been disclosed because their carrying amount are a reasonable approximation of their fair values.

Fair value hierarchy

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). Financial instruments - risk management

The Company has exposure to the following risks arising from financial instruments: credit risk (refer note (b) below); liquidity risk (refer note (c) below) and market risk (refer note (d) below):

(a) Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company''s board oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(b) Credit risk

Credit risk is the risk that a counter party fails to discharge its obligation to the Company. The maximum credit risk comprises the carrying amounts of the financial assets. The Company''s exposure to credit risk arises mainly from cash and cash equivalents, other bank balances, trade receivables, loans and other financial assets. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

(i) Credit risk management

Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk B: Moderate credit risk C: High credit risk

(ii) Credit risk exposure

Cash and cash equivalents and other bank balances

Credit risk related to cash and cash equivalents and other bank balances is managed by accepting highly rated banks and diversifying bank deposits and accounts in different banks. Management does not expect any losses from non-performance by these counterparties.

Loans and other financial assets measured at amortized cost

Loans and other financial assets measured at amortized cost includes deposits, staff advances, interest accrued on loans/deposits, unbilled revenue, loans and other receivables. Credit risk related to these is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensures that amounts are within defined limits. The expected credit loss on these financial instruments is expected to be insignificant.

Trade receivables

Credit risk arise from possibility that customer may default on its obligation to make timely payments, resulting into financial loss. The maximum exposure to the credit risk is primarily from trade receivables. The expected credit loss allowance is based on the ageing of the days for which the receivables are due and the expected loss rates.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to settle or meet its obligations on time. The Company''s primary sources of liquidity are cash generated from operations. The cash flows from operating activities are driven primarily by operating results and changes in the working capital requirements.

The Company believe that its liquidity position is adequate to fund the operating and investing needs and to provide with flexibility to respond to further changes in the business environment.

(d) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, which will affect the Company''s income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

i) Foreign currency risk

The transactions of the Company are denominated in both Indian rupees and foreign currencies and accordingly, the Company is exposed to foreign exchange risk in relation to operating activities (when revenue or expense is denominated in a foreign currency) arising from foreign currency transactions.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / decreased profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The year end balances are not necessarily representative of the average debt outstanding during the year.

51 Capital management

The funding requirements of the Company are met through a mixture of equity shares and borrowings. The Company''s policy is to use current and non-current borrowings to meet anticipated funding requirements.

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximizing the return to stakeholders through optimisation of debt and equity balance.

The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the standalone financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceedings will not have a material adverse effect on the Company''s financial position and results of operations.

(ii) The Company has received a demand order dated 31.08.2020 from the office of The Commissioner of Customs raising a demand of Rs 120.62 lakhs on the Company u/s 28(8) of the Customs Act, 1962 read with section 5(1) of IGST Act, 2017 with regards to classification under incorrect CTH of copper busbar imported by the Company during the period from 13.08.2014 to 30.10.2018. The order also imposes a penalty of Rs 12 lakhs on the Company and interest u/s 28AA of the Customs Act, 1962. The amount disclosed above is exclusive of interest as the same is not currently quantifiable. The Company has filed an appeal against the said order on 23.10.2020. Based on the legal opinion obtained by the Company from an independent firm of advocates, the management believes that the ultimate outcome of the proceedings will not have an adverse effect on the Company''s financial position.

(iii) The Company in the year 2017 was awarded a contract for setting up a 50 MW capacity solar power project (the "Project") in Tamilnadu. The Company subcontracted the EPC portion to a sub-contractor. The obligations of the sub-contractor for the project were not completely fulfilled by the sub-contractor leading to dispute and arbitration between the Company and the sub-contractor. Both the parties have filed Statement of Defence and Counterclaim against each other. The matter is currently in the final argument stage before the arbitrator. Pending arbitration, the impact of the outcome of the proceedings on these financial statements of the Company is currently not ascertainable.

(iv) During the F.Y.2021-22, pursuant to inspection by GST Department, the Company paid Rs. 120.14 lakhs towards GST on bank guarantee invocation. The Company during F.Y. 2022-23 filed application for refund of the said amount which was rejected by the Department vide its order dated 27 January 2023. The Company has filed an appeal against the rejection order with the appellate authorities on 06 March 2023. Pending final outcome, the Company continues to carry the amount paid as balance with government authorities. The management believes that the ultimate outcome of the proceedings will not have an adverse effect on the Company''s financial position.

(v) The Supreme court of India had passed a judgement in the month of February 2019 relating to definition of wages under the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. The Management is of the view that there are interpretative challenges on the application of the judgement. However, the Company is in the process of determining the possible impact and update its provision, if required. The Management does not expect any material impact of the same for financial year 2023-24 based on the present salary structure followed by the Company for its class of employees.

60 Subsequent events

There are no significant reportable subsequent events that have occurred after the reporting period till the date of this financial statements.

61 Additional regulatory information required by Schedule III

i) Details of benami property held:

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) Wilful defaulter:

The Company is not declared wilful defaulter by any bank or financial institution or other lender during the year.

iii) Relationship with struck off companies:

The Company does not have any transactions with companies struck off.

iv) Registration of charges or satisfaction with Registrar of Companies (ROC):

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

v) Utilisation of borrowed funds and share premium:

A. 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.

B. 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.

vi) Compliance with number of layers of companies:

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

vii) Valuation of Property, Plant and Equipment (including Right-of-use assets) and Intangible assets:

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) Compliance with approved Scheme of Arrangement:

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

62 Details of crypto currency or virtual currency:

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

63 Undisclosed income:

The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year 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).

64 In the opinion of the board of directors, assets, loans and advances have a value on realization in the ordinary course of the business at least equal to the amounts at which they are stated and provision for all known liabilities have been made.

65 The Company did not have any long-term contracts including derivative contracts for which there were any foreseeable losses as at 31 March 2024.

66 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on 13 November 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

67 The Company had paid an advance of USD 800,000 to a supplier in China during the financial year 2017-18 for procurement of solar PV modules. This advance was carried at Rs 584.48 lakhs as at 31 March 2023. Due to nonreceipt of the material from the supplier and since the supplier has filed for insolvency during the year, the Company has determined that the said advance is no longer recoverable and the entire amount of Rs 584.48 lakhs have been charged to standalone statement of profit and loss in the current financial year ended 31 March 2024.

68 During the previous year, the Company became successful bidder in the e-auction dated 08 April 2022 conducted by a liquidator of the sole liquidation estate / premise of a corporate debtor under section 61 of the Insolvency and Bankruptcy Code, 2016. The Company purchased the said liquidation estate / premise vide sale certificate dated 11 May 2022. The consideration paid by the Company amounted to Rs 1,160.00 lakhs and also incurred other expenditures amounting to Rs 177.80 lakhs as on 31 March 2024. The process of e-auction was challenged by another unsuccessful bidder in National Company Law Tribunal (NCLT). The entire e-auction process was set aside by NCLT vide its order dated 02 March 2023 as not in compliance with law. The Company had filed an appeal against the order of NCLT in National Company Law Appellate Tribunal (NCLAT) on 28 March 2023. During the year, the decision of NCLT was upheld by NCLAT and Supreme Court. On 21 November 2023, the Company filed a reply in response to the liquidator’s request to vacate the premises, seeking refund of the entire consideration paid and expenditure incurred if the premise is to be vacated, while the Company still aims to retain the ownership. Pending the final resolution and the refund of the payment, the Company continues to carry the total payments made towards the purchase of the liquidation estate/premise as a capital advance in its financial statements.

69 The Company has entered into Memorandum Of Understanding ("MOU") dated 07 May 2021 with an individual and his HUF to purchase their entire shareholding held in Marks Marine Radio Private Limited ("MMRPL") engaged in marine electronic products. As per the terms of MOU, the Company subject to valuation of shares had lend Rs 100.00 lakhs as advance.

During previous year, pending final due diligence and share valuation, the Company has recognised an interest income of Rs 12.07 lakhs on the said advance for the year ended 31 March 2023.

During current year, the Board of Directors of the Company at its meeting held on 16 October 2023 accorded its consent to acquire 49.20% of issued and paid-up equity share capital of MMRPL by way of acquiring of 2460 equity shares from its shareholders for total consideration amounting to Rs 235.18 lakhs. The transfer of shares related to the acquisition were approved by the Board of MMRPL at its meeting held on 25 October 2023. Post completion of acquisition, MMRPL has become associate of the Company w.e.f. 25 October 2023.

70 There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended 31 March 2024.

71 Previous year’s figures

Previous year’s figures have also been regrouped / recasted, wherever necessary, to conform to the current year’s presentation.

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Mar 31, 2023

(i) Investment property comprise of a commercial building that is leased to third party. Subsequent renewal of license agreement are negotiated with the tenant and average renewal period ranges between three and five years.

(ii) Refer note 23 and 27 for information on investment property pledged as security by the Company.

(iii) (a) As at 31 March 2023, the fair value of the property is Rs. 2,917.04 lakhs (31 March 2022: Rs. 2,917.04

lakhs). This valuation is based on valuation performed by an accredited independent valuer in the previous year. The management believes that there is no significant fluctuation in the fair value of the property during the year ended 31 March 2023.

(b) The fair value of the Company''s investment property has been arrived at using Composite rate method. Under Composite rate method, rate is arrived using comparable sales instance for similar property with same specification in the adjoining locality and further adjusted for depreciation on building component. The main inputs used are age of the building, life of the building, salvage value and composite rate.

* Consequent to the approval by the Audit Committee by Circular Resolution and by the General Purpose Committee (GPC) of the Board of Directors in their respective meetings held on 23 September 2022, the Company has increased its % holding in its Subsidiary, Narhari Engineering Works, a partnership firm, by way of further acquisition of 19% holding from the existing partners for a consideration of Rs 197.93 lakhs based on the valuation report by a registered valuer, resulting in total holding of 99% post acquisition. The reconstituted partnership deed is entered between the parties w.e.f. 30 September 2022.

(iii) The Company has neither raised loans during the year on the pledge of securities held in its subsidiaries (as defined under the act) nor has not taken any funds from any entity or persons on account of or to meet the obligations of its subsidiaries. The Company does not hold any investment in any associates or jointly controlled entity (as defined under the act) during the year ended 31 March 2023.

(iv) On 07 December 2022, Board of Directors of a subsidiary company, Evigo Charge Private Limited ("Evigo"), has considered and approved allotment of 10,00,000 Equity Shares of face value of Rs 10 each upon conversion of 10,000 0.001% Compulsorily Convertible Preference Shares (CCPS) of Rs 1,000 each held by the Company in Evigo. Post the allotment of shares pursuant to conversion of CCPS, the shareholding of the Company in Evigo has increased from 71.04% to 98.88%.

* Consequent to the approval by the Board of Directors in its meeting dated 22 August 2022 and subsequent approval by the Shareholders by Special Resolution in the Annual General Meeting dated 19 September 2022, the Board, on 30 September 2022 has allotted 1,00,00,000 Convertible Warrants carrying an entitlement to subscribe to an equivalent number of equity shares of face value of Rs 2 each at price of Rs 29.25 per warrant (including premium of Rs 27.25 per warrant), being price not lower than the minimum price calculated in accordance with the Regulations for Preferential Issue in Chapter V of SEBI (ICDR) Regulations, 2018 to the Promoters and NonPromoters allotees. Each warrant is convertible into one equity share within a period of 18 months from the date of allotment at the option of warrant holder. As per the terms of allotment, the Company has received subscription money equivalent to 25% of the issue price and the balance 75% shall be paid by the warrant holder at the time of allotment of equity shares pursuant to exercise of option.

During the year, 36,50,000 Convertible Warrants have been converted into equivalent number of equity shares by the Promoters. As per the terms of allotment, the balance 75% subscription money payable by the warrant holder at the time of allotment of equity shares pursuant to exercise of option have been received by the Company. These equity shares issued on conversion are reflected in Benpos report of the Company subsequent to year end. b) Rights, preference and restrictions attached to the equity shares:

The Company has single class of equity shares having a par value of Rs. 2 each. 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 will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserves:

Securities premium: Securities premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the provision of the Companies Act, 2013.

General reserve: General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer of one component of equity to another.

Retained earnings: Retained earnings represents surplus / accumulated earnings of the Company and are available for distribution to shareholders. Further, it also includes the impact of remeasurements of the defined benefit obligations, net of tax.

Other component of equity: Other component of equity represents fair value of financial guarantee.

Money received against share warrants: Represents subscription money received by the Company as per the terms of allotment equivalent to 25% of the issue price of share warrants.

(a) Indian rupee vehicle loans from ICICI Bank Limited carrying value of Rs 1.16 lakhs as at 31 March 2023 (31 March 2022: Rs 2.73 lakhs) secured against hypothecation of vehicles is repayable in 60 monthly installments. The loans carry interest ranging from 9.00% p.a. to 9.75% p.a. (31 March 2022: 9.00% p.a. to 9.75% p.a.).

(b) Indian rupee vehicle loan from Axis Bank Limited carrying value of Rs Nil as at 31 March 2023 (31 March 2022: Rs 2.52 lakhs) secured against hypothecation of the vehicle is repayable in 36 monthly installments. The loan carries an interest of NA (31 March 2022: 8.76% p.a.).

(c) Indian rupee term loan from Kotak Mahindra Bank Limited carrying value of Rs 298.56 lakhs as at 31 March 2023 (31 March 2022: Rs 633.08 lakhs) is primarily secured by equitable mortgage of industrial property at plot no. 54, 57, 55 and 56, Verna Industrial Estate, Phase IV, Salcete, Goa. The loan is repayable in 60 monthly installments. The loan carries an interest of K-MCLR 6M Spread of 1.15% p.a. (31 March 2022: K-MCLR 6M Spread of 1.15% p.a.). The loan is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company.

(d) Indian rupee term loan from Kotak Mahindra Bank Limited under Guaranteed Emergency Credit Line (GECL) under ECLGS scheme carrying value of Rs 108.79 lakhs as at 31 March 2023 (31 March 2022: Rs 178.51 lakhs) is secured by equitable mortgage of industrial property at plot no. 54, 57, 55 and 56, Verna Industrial Estate, Phase IV, Salcete, Goa. The loan is repayable in 48 monthly installments including moratorium of 12 months. The loan carries an interest of 8.00% p.a. (31 March 2022: 8.00% p.a.). The loan is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company.

(e) Indian rupee term loan from State Bank of India carrying value of Rs Nil as at 31 March 2023 (31 March 2022: Rs 39.34 lakhs) is primarily secured by hypothecation charge over inventory, book debts and other movable current assets, present & future at Mumbai and both the Goa plants. The loan is collaterally secured by:

(i) Commercial Building bearing Survey Number: A2, B1, B2, Ground Floor, situated at Unit No. A-2, B-1, B-2, Ground Floor, Udyog Sadan No. 3, Industrial Computer & Software Premises Co-op. Society Ltd., Near Seepz Bus Stop, Central Road, Seepz, Andheri East, Mumbai, 400093;

(ii) P & M at (a) B-1, Udyog Sadan- 3 Andheri and (b) 5-17/18 Goa;

(iii) Factory Land & Buildings bearing Survey Number: 30, situated at Plot No. 17 & 18, bearing Survey No. 30, Verna Industrial Estate, Phase I, Village Nagoa, District Salcete, South Goa, Village Nagoa, District Salcete, Goa, 403722;

(iv) Residential Building bearing Survey Number : 502A and 502B, situated at 502/A and 502/B, Fifth Floor, Heritage, Hiranandani gardens, CTS Nos. 20(pt), 21(pt), 22(pt) and 30(pt), Powai, Mumbai, 400 076;

(v) Commercial Building bearing Survey Number: D-1 & B-3, situated at Unit No. D-1 & B-3, Ground Floor, Udyog Sadan No. 3, Industrial Computer & Software Premises Co-op. Society Ltd., Near Seepz Bus Stop, Central Road, Seepz, Andheri East, Mumbai, 400093;

The loan is repayable in 24 monthly installments including moratorium of 6 months. The loan carries an interest of 1 year MCLR with annual reset (31 March 2022: 1 year MCLR with annual reset). The loan is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company and Philins Industrial Corporation.

(f) Indian rupee term loan from The Karur Vysya Bank Limited carrying value of Rs 1,372.97 lakhs as at 31 March 2023 (31 March 2022: Rs Nil) is primarily secured by mortgage of commercial land and building situated at ground 2 upper floors, road no.9, MIDC Marol, Plot No. 16, Village Mulgaon, Andheri East, Mumbai - 400093. The loan is repayable in 120 monthly installments. The loan carries an interest of 3 months MCL rate of the bank (31 March 2022: NA). The loan is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company.

(g) Indian rupee term loan from Kotak Mahindra Bank Limited carrying value of Rs 629.33 lakhs as at 31 March 2023 (31 March 2022: Rs Nil) is primarily secured by equitable mortgage of industrial property at plot no. 54, 57, 55 and 56, Verna Industrial Estate, Phase IV, Salcete, Goa. The loan is repayable in 60 monthly installments. The loan carries an interest of Repo Rate Spread of 3.25% p.a. (31 March 2022 : NA). The loan is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company.

(h) Indian rupee vehicle loan from Kotak Mahindra Prime Limited carrying value of Rs 13.61 lakhs as at 31 March 2023 (31 March 2022: Rs 17.38 lakhs) secured against hypothecation of vehicle is repayable in 60 monthly installments. The loan carries an interest of 7.72% p.a. (31 March 2022: 7.72% p.a.)

(i) Indian rupee vehicle loan from Kotak Mahindra Prime Limited carrying value of Rs 5.77 lakhs as at 31 March 2023 (31 March 2022: Rs Nil) secured against hypothecation of vehicle is repayable in 36 monthly installments. The loan carries an interest ranging from 8.50% p.a to 9.00% p.a (31 March 2022: NA)

(a) Cash credit facility from Axis Bank Limited outstanding of Rs 256.45 lakhs as at 31 March 2023 (31 March 2022: Rs 43.97 lakhs) carrying interest of Repo 4.25% (31 March 2022: Repo 5.25%) is repayable on demand. These are secured by hypothecation of entire current assets including stock, raw material, semi-finished goods, consumable stores, receivables, bills, deposits etc. and moveable fixed assets both present and future of the Company in pari passu with other banks. The facility is collaterally secured by exclusive charge on industrial property situated at Plot No. C1, B-71 and C1, B-72, GIDC Industrial Estate, Surat Hazira Road, Ichchpore, Bhatpore, Opp. GAIL Colony, Surat - 394510 and exclusive charge on land and building at Plot No. N-51,52, 59 & 60, Phase IV, Verna Industrial Estate, Salcete, Goa owned by the Company.

The facility is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company.

(b) Cash credit facility from State Bank of India outstanding of Rs 2,034.10 lakhs as at 31 March 2023 (31 March 2022: Rs 1,410.27 lakhs) carrying interest of 2.00% above 6M MCLR (31 March 2022: 2.75% above 6M MCLR) is repayable on demand. These are secured by 1st pari passu hypothecation charge over inventory, book debts and other movable current assets, present & future at Mumbai and Goa plants. The facility is collaterally secured by:

i) Equitable / Registered Mortgage of Unit No B-1, Ground Floor, Industrial Computer and Software Premises Co-Op. Soc. Ltd., Udyog Sadan-3, Plot no-F-4 5 6, MIDC, Andheri (E), Mumbai owned by the Company;

ii) Equitable Mortgage on factory premises at S-17/18, Verna Industrial Estate, Phase-1, Verna Electronic City, Salcete, Goa owned by the Company;

iii) Hypothecation of all Plant & Machinery, present and future at Mumbai and Goa plants;

iv) Equitable / Registered Mortgage on Unit No A-2, Ground Floor, Industrial Computer and Software Premises Co-Op. Soc. Ltd., Udyog Sadan No.3, Central Road, Near Seepz Bus Depot, Andheri (E), Mumbai owned by M/s Philins Industrial Corporation;

v) Equitable / Registered Mortgage of Unit No B-2, D-1, B-3 Ground Floor, Industrial Computer and Software Premises Co-Op. Soc. Ltd., Udyog Sadan No.3, Central Road, Near Seepz Bus Depot, Andheri (E), Mumbai owned by KDU Enterprises Private Limited;

vi) Equitable / Registered Mortgage on 502/A and 502/B, Fifth Floor, Heritage, Hiranandani Gardens, CTS Nos. 20(pt), 21(pt), 22(pt) and 30(pt), Powai, Mumbai - 400076 owned by Mr. Venkatesh Uchil.

The facility is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company and Philins Industrial Corporation.

(c) Cash credit facility from Indusind Bank outstanding of Rs 677.21 lakhs as at 31 March 2023 (31 March 2022: Rs 447.13 lakhs) carrying interest of floating rate of 6M MCLR 0.75% p.a. (31 March 2022: 6M CD rate 5.31%) is repayable on demand. These are secured by first pari-passu charge on entire current assets of the Company. The facility is collaterally secured against fixed deposit of Rs. 1,620 lakh.

The facility is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company.

(d) The quarterly returns/ statements read with subsequent revisions, if any, filed by the Company with the banks are in agreement with the books of accounts.

Trade receivables and contract balances:

(i) The Company classifies the right to consideration in exchange for deliverables as either a receivable or as contract asset.

(ii) A receivable is a right to consideration that is unconditional upon passage of time.

(iii) The contract assets primarily relate to the Company’s right to consideration for work completed but not billed at the reporting date. The contract assets are transferred to receivables when the right become unconditional. Contract assets are presented in note 20.

(iv) The contract liabilities primarily relate to the advance consideration received from customers. Contract liabilities are presented in note 30.

(v) Trade receivables are presented net off loss allowance in note 15.

There are no amounts of interest paid during the year for payments made beyond the appointed day. Also, there is no amount of interest accrued and remaining unpaid as at period end for principal amount outstanding beyond the appointed day.

44.Employee benefits

(i) Defined contribution plans:

The Company makes contributions, determined as a specified percentage of employees salaries, in respect of qualifying employees towards provident fund, employees state insurance scheme and labour welfare scheme, which are defined contribution plans. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The contributions are charged to the statement of profit and loss as they accrue. The amount recognized as an expense towards contribution to provident and other funds for the year aggregated to Rs. 117.16 lakhs (31 March 2022: Rs 97.22 lakhs).

(ii) Defined benefit plans:

The Company operates an unfunded post-employment defined benefit plan that provides for gratuity benefit. The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive gratuity at 15 days salary (salary last drawn) for each completed years of service at the time of retirement / exit.

The Company determines the gratuity liability based on the actuarial valuation using Projected Unit Credit Method by an Independent firm of Actuaries that is registered with The Institute of Actuaries of India.

The following table summarizes the position of obligation relating to gratuity plan:

The sensitivity is performed on the DBO at the respective valuation date by modifying one parameter whilst retaining other parameters constant. The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

Risk exposures:

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

(A) Salary Increases: Actual salary increases will increase the plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

(B) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan’s liability.

(C) Withdrawals: Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact plan’s liability.

(D) Mortality & disability: Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

(iii) Other long-term employee benefits:

Compensated absences

The compensated absences cover the company’s liability for earned leave.

The Company has recognised an amount of Rs.46.56 lakhs (31 March 2022: Rs. 27.77 lakhs) as an expense towards compensated absences and included in “Employee benefits expense” in the Statement of Profit and Loss. The Company has determined the liability for compensated absences based on the actuarial valuation using Projected Unit Credit Method.

Assets and liabilities used in the Company''s business are not identified to any of the reportable segments as these are used interchangeably between segments. The Company believes that it is currently not practicable to provide segmental disclosure relating to total assets and liabilities since a meaningful segregation of the available data could be onerous.

Information about major customers

There are 2 (31 March 2022: 2) customers contributing in excess of 10% of the total revenue of the Company amounting to Rs 10,089.88 lakhs for the year ended 31 March 2023 (31 March 2022: Rs 10,665.29 lakhs).

There are no financial instruments that have been classified as Fair Value through Profit and Loss (FVTPL) and Fair Value through Other Comprehensive Income (FVTOCI).

a Fair values for these financial instruments have not been disclosed because their carrying amount are a reasonable approximation of their fair values.

Fair value hierarchy

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). Financial instruments - risk management

The Company has exposure to the following risks arising from financial instruments: credit risk (refer note (b) below); liquidity risk (refer note (c) below) and market risk (refer note (d) below):

(a) Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company’s board oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(b) Credit risk

Credit risk is the risk that a counter party fails to discharge its obligation to the Company. The maximum credit risk comprises the carrying amounts of the financial assets. The Company''s exposure to credit risk arises mainly from cash and cash equivalents, other bank balances, trade receivables, loans and other financial assets. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

(ii) Credit risk exposure

Cash and cash equivalents and other bank balances

Credit risk related to cash and cash equivalents and other bank balances is managed by accepting highly rated banks and diversifying bank deposits and accounts in different banks. Management does not expect any losses from non-performance by these counterparties.

Loans and other financial assets measured at amortized cost

Loans and other financial assets measured at amortized cost includes lease deposits, staff advances, interest accrued on loans/deposits, loans and other receivables. Credit risk related to these is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensures that amounts are within defined limits. The expected credit loss on these financial instruments is expected to be insignificant.

Trade receivables

Credit risk arise from possibility that customer may default on its obligation to make timely payments, resulting into financial loss. The maximum exposure to the credit risk is primarily from trade receivables. The expected credit loss allowance is based on the ageing of the days for which the receivables are due and the expected loss rates.

The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the standalone financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceedings will not have a material adverse effect on the Company’s financial position and results of operations.

(ii) The Company has received a demand order dated 31.08.2020 from the office of The Commissioner of Customs raising a demand of Rs 120.62 lakhs on the Company u/s 28(8) of the Customs Act, 1962 read with section 5(1) of IGST Act, 2017 with regards to classification under incorrect CTH of copper busbar imported by the Company during the period from 13.08.2014 to 30.10.2018. The order also imposes a penalty of Rs 12 lakhs on the Company and interest u/s 28AA of the Customs Act, 1962. The amount disclosed above is exclusive of interest as the same is not currently quantifiable. The Company has filed an appeal against the said order on 23.10.2020. Based on the legal opinion obtained by the Company from an independent firm of advocates, the management believes that the ultimate outcome of the proceedings will not have an adverse effect on the Company''s financial position.

(iii) The Company in the year 2017 was awarded a contract for setting up a 50 MW capacity solar power project (the "Project") in Tamilnadu. The Company subcontracted the EPC portion to a sub-contractor. The obligations of the sub-contractor for the project were not completely fulfilled by the sub-contractor leading to dispute and arbitration between the Company and the sub-contractor. Both the parties have filed Statement of Defence and Counterclaim against each other. The matter is pending before arbitrator for cross examination. Pending arbitration, the impact of the outcome of the proceedings on these financial statements of the Company is currently not ascertainable.

(iv) During the previous year, pursuant to inspection by GST Department, the Company paid Rs. 120.14 lakhs towards GST on bank guarantee invocation. The Company during the year filed application for refund of the said amount which was rejected by the Department vide its order dated 27 January 2023. The Company has filed an appeal against the rejection order with the appellate authorities on 06 March 2023. Pending final outcome, the Company continues to carry the amount paid as balance with government authorities. The management believes that the ultimate outcome of the proceedings will not have an adverse effect on the Company''s financial position.

(v) The Supreme court of India had passed a judgement in the month of February 2019 relating to definition of wages under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The Management is of the view that there are interpretative challenges on the application of the judgement. However, the Company is in the process of determining the possible impact and update its provision, if required. The Management does not expect any material impact of the same for financial year 2022-23 based on the present salary structure followed by the Company for its class of employees.

57 Subsequent events

There are no significant reportable subsequent events that have occurred after the reporting period till the date of this financial statements.

58 Additional regulatory information required by Schedule III

i) Details of benami property held:

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) Wilful defaulter:

The Company is not declared wilful defaulter by any bank or financial institution or other lender during the year.

iii) Relationship with struck off companies:

The Company does not have any transactions with companies struck off.

iv) Borrowing secured against current assets:

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

v) Utilisation of borrowed funds and share premium:

A. 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

B. 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

vi) Compliance with number of layers of companies:

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

vi) Valuation of Property, Plant and Equipment (including Right-of-use assets) and Intangible assets:

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) Compliance with approved Scheme of Arrangement:

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

59 Details of crypto currency or virtual currency:

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

60 Undisclosed income:

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

61 In the opinion of the board of directors, assets, loans and advances have a value on realization in the ordinary course of the business at least equal to the amounts at which they are stated and provision for all known liabilities have been made.

62 The Company did not have any long-term contracts including derivative contracts for which there were any foreseeable losses as at 31 March 2023.

63 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on 13 November 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

64 The Company during financial year 2017-18 paid to a supplier in China an advance of USD 8,00,000 carried at Rs 584.48 lakhs as at 31 March 2023 (31 March 2022: USD 8,00,000 carried at Rs 584.48 lakhs), for procurement of solar PV modules. The Company has initiated arbitration proceedings against the supplier by appointing an independent arbitration professional. Pending recovery of the advance paid or procurement of material against the said advance, the Company believes that this advance is recoverable and it continues to carry the said advance as unsecured and considered good under "Other current assets".

65 During the year, the Company became successful bidder in the e-auction dated 08 April 2022 conducted by a liquidator of the sole liquidation estate / premise of a corporate debtor under section 61 of the Insolvency and Bankruptcy Code, 2016. The Company purchased the said liquidation estate / premise vide sale certificate dated 11 May 2022. The consideration paid by the Company amounted to Rs 1,160.00 lakhs and also incurred other expenditures amounting to Rs 177.80 lakhs as on 31 March 2023. The process of e-auction was challenged by another unsuccessful bidder in National Company Law Tribunal (NCLT). The entire e-auction process was set aside by NCLT vide its order dated 02 March 2023 as not in compliance with law. The Company has filed an appeal against the order of NCLT in National Company Law Appellate Tribunal (NCLAT) on 28 March 2023. Pending final outcome, the Company continues to carry total payments made towards the purchase of said liquidation estate / premise as capital advance.

66 Advance towards purchase of equity instruments

(a) The Board of Directors of the Company on 22 October 2021 approved the investment towards acquisition of 75% paid-up equity share capital of Xanatos Marine Ltd ("Xanatos"), a Canadian Company. During the previous year, the Company has entered into Share Purchase Agreement ("SPA") dated 23 February 2022 with a non-resident individual (the "Vendor") to purchase 75 class “A” Common Shares ("Vendor''s Shares") held by the Vendor in Xanatos and representing 75% of all the issued and outstanding shares of Xanatos for a total consideration of USD 1,550,000 (at a fair value of USD 20,667 per share). The total consideration was to be paid by the Company to the Vendor in tranches. During the previous year, the Company has paid USD 950,000 (equivalent Rs 731.66 lakhs). The transfer of shares to the Company was subject to fulfilment of conditions precedent as per SPA and payment of entire consideration. During the current year, the Company paid balance consideration of USD 600,000 and the acquisition was completed on 04 January 2023 on payment of final tranche by the Company towards the acquisition. Total purchase consideration paid by the Company in tranches towards the acquisition amounted to USD 15,50,000 (Equivalent Rs 1,216.86 lakhs).

(b) During the previous year, the Company has entered into Memorandum Of Understanding ("MOU") dated 07 May 2021 with an individual and his HUF to purchase their entire shareholding held in a Private Limited company engaged in marine electronic products. As per the terms of MOU, during the previous year, the Company subject to valuation of shares has agreed to lend Rs 100.00 lakhs as advance. Pending final due diligence and share valuation, the Company has recognised an interest income of Rs 12.07 lakhs on the said advance for the year ended 31 March 2023 (31 March 2022: Rs 9.73 lakhs).

67 There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended 31 March 2023.

68 Previous year’s figures

Previous year’s figures have also been regrouped / recasted, wherever necessary, to conform to the current year’s presentation.

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Mar 31, 2021

For investment property existing as on 1 April 2019, i.e., its date of transition to Ind AS, the Company has used Indian GAAP carrying value as deemed cost.

Investment property comprise of a commercial building that is leased to third party. Subsequent renewal of license agreement are negotiated with the tenant and average renewal period ranges between three and five years.

The Company has not obtained valuation report from an independent registered valuer to determine the fair value of its investment property as at the reporting dates. Accordingly, fair value disclosure as required under Ind AS 40 - Investment Property is not provided.

Refer note 22 and 25 for information on investment property pledged as security by the Company.

# The equity shares of the Company, during the current year, have been sub-divided from existing face value of Rs 10 per equity share to face value of Rs 2 per equity share based on approval by the shareholders through postal ballot resolution on 04 February 2021.

b) Rights, preference and restrictions attached to the equity shares:

The Company has single class of equity shares having a par value of Rs. 2 each. 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 will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

d) The Company has neither allotted any fully paid-up equity share by way of bonus shares, or in pursuant to contract without payment being received in cash nor has bought back any class of equity shares during the period of five year immediately preceding the balance sheet date.

Nature and purpose of reserves:

Securities premium: Securities premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the provision of the Companies Act, 2013.

General reserve: General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer of one component of equity to another.

Retained earnings: Retained earnings represents surplus / accumulated earnings of the Company and are available for distribution to shareholders. Further, it also includes the impact of remeasurements of the defined benefit obligations, net of tax.

Other component of equity: Other component of equity represents fair value of financial guarantee.

(a) Indian rupee vehicle loans from ICICI Bank Limited outstanding of Rs 4.08 lakhs as at 31 March 2021 (31 March 2020: Rs 5.32 lakhs; 1 April 2019: Rs 5.36 Lakhs) secured against hypothecation of vehicles is repayable in 60 monthly installments. The loans carry interest ranging from 9.00% p.a. to 9.75% p.a. (31 March 2020: 9.00% p.a. to 9.75% p.a.; 1 April 2019: 9.00% p.a. to 11.26% p.a.)

(b) Indian rupee vehicle loan from Yes Bank Limited outstanding of Rs 2.97 lakhs as at 31 March 2021 (31 March 2020: Rs 6.22 lakhs; 1 April 2019: Rs 9.20 Lakhs) secured against hypothecation of the vehicle is repayable in 37 monthly installments. The loan carries an interest of 9.50% p.a. (31 March 2020: 9.50% p.a.; 1 April 2019: 9.50% p.a).

(c) Indian rupee vehicle loan from Axis Bank Limited outstanding of Rs 4.05 lakhs as at 31 March 2021 (31 March 2020: Nil; 1 April 2019: Nil) secured against hypothecation of the vehicle is repayable in 36 monthly installments. The loan carries an interest of 8.76% p.a. (31 March 2020: Nil; 1 April 2019: Nil).

(d) Foreign Currency Non-Resident (Bank) "FCNR(B)" term loan from ICICI Bank Limited outstanding of Rs Nil as at 31 March 2021 (31 March 2020: Rs Nil; 1 April 2019: USD 15,945 equivalent to Rs 11.13 Lakhs) is primarily secured by equitable mortgage of commercial property at Plot No.16, Road No. 9, MIDC, Andheri East, Mumbai which is owned by the Company. The loan is collaterally secured by equitable mortgage of commercial property at C1 and C2, Udyog Sadan 3, MIDC, Andheri East, Mumbai which is owned by KDU Enterprises Private Limited, the Holding Company and also subservient hypothecation charge on current assets i.e. entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movable including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, in a form and manner satisfactory to the Bank. The loan is repayable in 30 monthly installments. The loan carries an interest of Nil (31 March 2020: Nil; 1April 2019: LIBOR 3M 4.05%). The loan is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company.

The tenure of the loan had completed and the loan has been repaid back by the Company during the year ended 31 March 2020.

Indian rupee term loan from ICICI Bank Limited outstanding of Rs Nil as at 31 March 2021 (31 March 2020: Rs 20.46 Lakhs; 1 April 2019: Rs 100.91 Lakhs) is primarily secured by charge on all of the Company''s fixed assets (Plant and Machinery) funded by the loan. The loan is collaterally secured by equitable mortgage of commercial property at C1 and C2, Udyog Sadan 3, MIDC, Andheri East, Mumbai which is owned by KDU Enterprises Limited, the Holding Company, (after providing 1.5 times cover to the primary collateral of FCNR(B) term loan mentioned above) equitable mortgage of commercial property at Plot No.16, Road No. 9, MIDC, Andheri East, Mumbai which is owned by the Company and also subservient hypothecation charge on current assets i.e. entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movable including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, in a form and manner satisfactory to the Bank. The loan is repayable in 13 quarterly installments. The loan carries an interest of Nil (31 March 2020: I-MCLR 1 Year Spread of 1.90% p.a.; 1 April 2019: I-MCLR 1 Year Spread of 1.90% p.a). The loan is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company.

The tenure of the loan had completed and the loan is repaid back by the Company during the current year.

(e) Indian rupee term loan from Kotak Mahindra Bank Limited outstanding of Rs 901.23 Lakhs as at 31 March 2021 (31 March 2020: Rs 1,025.16 Lakhs; 1 April 2019: Rs 1,232.23 Lakhs) is primarily secured by equitable mortgage of industrial property at plot no. 54, 57, 55 and 56, Verna Industrial Estate, Phase IV, Salcete, Goa. The loan is repayable in 60 monthly installments. The loan carries an interest of K-MCLR 6M Spread of 1.15% p.a. (31 March 2020: K-MCLR 6M Spread of 1.15% p.a.; 1 April 2019: K-MCLR 6M Spread of 1.15% p.a.). The loan is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company.

(f) Indian rupee term loan from Kotak Mahindra Bank Limited under Guaranteed Emergency Credit Line (GECL) under ECLGS scheme outstanding of Rs 216.68 Lakhs as at 31 March 2021 (31 March 2020: Rs Nil; 1 April 2019: Rs Nil) is secured by equitable mortgage of industrial property at plot no. 54, 57, 55 and 56, Verna Industrial Estate, Phase IV, Salcete, Goa. The loan is repayable in 48 monthly installments including moratorium of 12 months. The loan carries an interest of 8.00% p.a. (31 March 2020: Nil; 1 April 2019: Nil). The loan is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company.

(g) Indian rupee term loan from State Bank of India outstanding of Rs 232.06 Lakhs as at 31 March 2021 (31 March 2020: Rs Nil; 1 April 2019: Rs Nil) is primarily secured by hypothecation charge over inventory, book debts and other movable current assets, present & future at Mumbai and both the Goa plants. The loan is collaterally secured by:

(i) Commercial Building bearing Survey Number: A2, B1, B2, Ground Floor, situated at Unit No. A-2, B-1, B-2, Ground Floor, Udyog Sadan No. 3, Industrial Computer & Software Premises Co-op. Society Ltd., Near Seepz Bus Stop, Central Road, Seepz, Andheri East, Mumbai, 400093;

(ii) P & M at (a) B-1, Udyog Sadan- 3 Andheri and (b) 5-17/18 Goa;

(iii) Factory Land & Buildings bearing Survey Number: 30, situated at Plot No. 17 & 18, bearing Survey No. 30, Verna Industrial Estate, Phase I, Village Nagoa, District Salcete, South Goa, Village Nagoa, District Salcete, Goa, 403722;

(iv) Residential Building bearing Survey Number : 502A and 502B, situated at 502/A and 502/B, Fifth Floor, Heritage, Hiranandani gardens, CTS Nos. 20(pt), 21(pt), 22(pt) and 30(pt), Powai, Mumbai, 400076;

(v) Commercial Building bearing Survey Number: D-1 & B-3, situated at Unit No. D-1 & B-3, Ground Floor, Udyog Sadan No. 3, Industrial Computer & Software Premises Co-op. Society Ltd., Near Seepz Bus Stop, Central Road, Seepz, Andheri East, Mumbai, 400093;

The loan is repayable in 24 monthly installments including moratorium of 6 months. The loan carries an interest of 1 year MCLR with annual reset (31 March 2020: Nil; 1 April 2019: Nil). The loan is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company and Philins Industrial Corporation.

(h) Indian rupee vehicle loan from Kotak Mahindra Prime Limited outstanding of Rs Nil as at 31 March 2021 (31 March 2020: Rs 3.23 Lakhs; 1 April 2019: Rs 10.40 Lakhs) secured against hypothecation of the vehicle is repayable in 36 monthly installments. The loan carries an interest of Nil (31 March 2020: 8.50% p.a.; 1 April 2019: 8.50% p.a).

The tenure of the loan had completed and the loan has been repaid back by the Company during the current year.

(i) Indian rupee vehicle loan from Volkswagen Finance Private Limited outstanding of Rs Nil as at 31 March 2021 (31 March 2020: Rs 1.34 Lakhs; 1 April 2019: Rs. 3.85 Lakhs) secured against hypothecation of the vehicle is repayable in 36 monthly installments. The loan carries an interest of Nil (31 March 2020: 8.75% p.a.; 1 April 2019: 8.50% p.a).

The tenure of the loan had completed and the loan has been repaid back by the Company during the current year.

(j) Indian rupee term loan from ICICI Bank Limited outstanding Rs 14.40 Lakhs as at 31 March 2021 (31 March 2020: Rs 48.88 Lakhs; 1 April 2019: Rs. Nil). The loan is unsecured and is repayable in 15 monthly installments. The loan carries an interest of 16.50% p.a. (31 March 2020: 16.50% p.a.; 1 April 2019: Nil).

(k) Indian rupee term loan from Tata Capital Financial Services Limited outstanding Rs 3.14 Lakhs as at 31 March 2021 (31 March 2020: Rs 34.01 Lakhs; 1 April 2019: Nil). The loan is unsecured and is repayable in 12 monthly installments. The loan carries an interest of 16.50% p.a. (31 March 2020: 16.50% p.a; 1 April 2019: Nil).

(a) Cash credit facility from Axis Bank Limited outstanding of Rs. 248.11 Lakhs as at 31 March 2021 (31 March 2020: Rs 48.45 Lakhs; 1 April 2019: Rs. 48.74 Lakhs) carrying interest of 3 month MCLR 2 bps (31 March 2020: 3 month MCLR 2 bps; 1 April 2019: 3 month MCLR 2 bps) is repayable on demand. These are secured by hypothecation of entire current assets including stock, raw material, semi-finished goods, consumable stores, receivables, bills, deposits etc. both present and future of the Company in pari passu with other banks. The facility is collaterally secured by industrial property siutated at Plot No. C1, B-71 and C1, B-72, GIDC Industrial Estate, Surat Hazira Road, Ichchpore, Bhatpore, Opp. GAIL Colony, Surat -394510 and land and building at Plot No. N-51, 52, 59 & 60, Phase IV, Verna Industrial Estate, Salcete, Goa owned by the Company. The facility is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company.

(b) Cash credit facility from State Bank Of India outstanding of Rs 2,696.73 Lakhs as at 31 March 2021 (31 March 2020: Rs 2,117.55 Lakhs; 1 April 2019: Rs 2,773.00 Lakhs) carrying interest of 3.5% above 1 year MCLR (31 March 2020: 3.5% above 1 year MCLR; 1 April 2019: 3% above 1 year MCLR) is repayable on demand. These are secured by 1st pari passu hypothecation charge over inventory, book debts and other movable current assets, present & future at Mumbai and Goa plants. The facility is collaterally secured by:

i) Equitable / Registered Mortgage of Unit No B-1, Ground Floor, Industrial Computer and Software Premises Co-Op. Soc. Ltd., Udyog Sadan-3, Plot no-F-4 5 6, MIDC, Andheri (E), Mumbai owned by the Company;

ii) Equitable Mortgage on factory premises at S-17/18, Verna Industrial Estate, Phase-1, Verna Electronic City, Salcete, Goa owned by the Company;

iii) Hypothecation of all Plant & Machinery, present and future at Mumbai and Goa plants;

iv) Equitable / Registered Mortgage on Unit No A-2, Ground Floor, Industrial Computer and Software Premises Co-Op. Soc. Ltd., Udyog Sadan No.3, Central Road, Near Seepz Bus Depot, Andheri (E), Mumbai owned by M/s Philins Industrial Corporation;

v) Equitable / Registered Mortgage of Unit No B-2, D-1, B-3 Ground Floor, Industrial Computer and Software Premises CoOp. Soc. Ltd., Udyog Sadan No.3, Central Road, Near Seepz Bus Depot, Andheri (E), Mumbai owned by KDU Enterprises Pvt. Ltd.;

vi) Equitable / Registered Mortgage on 502/A and 502/B, Fifth Floor, Heritage, Hiranandani Gardens, CTS Nos. 20(pt), 21(pt), 22(pt) and 30(pt), Powai, Mumbai - 400076 owned by Mr. Venkatesh Uchil.

The facility is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company and Philins Industrial Corporation.

(c) Cash credit facility from ICICI Bank Limited outstanding of Rs 70.10 lakhs as at 31 March 2021 (31 March 2020: Rs Nil; 1 April 2019: Rs Nil) carrying interest of I-MCLR 6M 1.90% p.a. (31 March 2020: I-MCLR 6M 1.90% p.a.; 1 April 2019: I-MCLR 6M 1.90% p.a.) is repayable on demand. These are secured by first pari-passu hypothecation on firm''s entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other moveable, including book debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, in a form and manner satisfactory to the Bank. The facility is collaterally secured by equitable mortgage of commercial property at C1 and C2, Udyog Sadan 3, MIDC, Andheri East, Mumbai which is owned by KDU Enterprises Limited, the Holding Company, (after providing 1.5 times cover to the primary collateral of FCNR(B) term loan mentioned above) equitable mortgage of commercial property at Plot No.16, Road No. 9, MIDC, Andheri East, Mumbai which is owned by the Company and is backed by personal guarantee of Mr. Venkatesh Uchil and Mr. Vinay Uchil and corporate guarantee of KDU Enterprises Private Limited, the Holding Company.

The Company has a debit balance in cash credit account as at 31 March 2020 and 01 April 2019 (refer note 15).

Trade receivables and contract balances :

The Company classifies the right to consideration in exchange for deliverables as either a receivable or as contract asset.

A receivable is a right to consideration that is unconditional upon passage of time.

The contract assets primarily relate to the Company’s right to consideration for work completed but not billed at the reporting date. The contract assets are transferred to receivables when the right become unconditional. Contract assets are presented in note 19.

The contract liabilities primarily relate to the advance consideration received from customers. Contract liabilities are presented in note 28.

* The equity shares of the Company, during the current year, have been sub-divided from existing face value of Rs 10 per equity share to face value of Rs 2 per equity share based on approval by the shareholders through postal ballot resolution on 04 February 2021. Accordingly, basic and diluted earnings per equity share for previous year have been computed on the basis of new number of equity shares.

42. Employee benefits

The Company contributes to the following post-employment plans:

(i) Defined contribution plans:

The Company makes contributions, determined as a specified percentage of employees salaries, in respect of qualifying employees towards provident fund, employees state insurance scheme and labour welfare scheme, which are defined contribution plans. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The contributions are charged to the statement of profit and loss as they accrue. The amount recognized as an expense towards contribution to provident and other funds for the year aggregated to Rs. 75.86 lakhs (31 March 2020: Rs 98.28 lakhs).

(ii) Defined benefit plans:

TThe Company operates an unfunded post-employment defined benefit plan that provides for gratuity benefit. The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive gratuity at 15 days salary (salary last drawn) for each completed years of service at the time of retirement / exit.

The Company determines the gratuity liability based on the actuarial valuation using Projected Unit Credit Method by an Independent firm of Actuaries that is registered with The Institute of Actuaries of India.

The sensitivity is performed on the DBO at the respective valuation date by modifying one parameter whilst retaining other parameters constant. There are no changes from the previous period to the methods and assumptions underlying the sensitivity analysis. The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

Risk exposures:

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

(A) Salary Increases: Actual salary increases will increase the plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

(B) Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan’s liability.

(c) Withdrawals: Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact plan’s liability.

(D) Mortality & disability: Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

(iii) Other long-term employee benefits:

Compensated absences

The compensated absences cover the company’s liability for earned leave .The Company has recognised an amount of Rs. 2.93 lakhs (31 March 2020 - Rs. 17.35 lakhs) as an expense towards compensated absences and included in “Employee benefits expense” in the Statement of Profit and Loss. The Company has determined the liability for compensated absences based on the actuarial valuation using Projected Unit Credit Method.

The following is the summary of practical expedients elected on initial application :

1) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment

2) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application.

3) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

4) Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under AS 17.

5) The weighted average incremental borrowing rate applied to lease liabilities as at April 1, 2019 is 11.23% p.a.

45. Segment reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Maker ("CODM"), in deciding how to allocate resources and assessing performance. The Board of Directors of the Company are identified as the CODM. Based on the nature of products and services, the risk and return profile of individual business and the internal business reporting systems, the Company has identified its reportable segments as under:

Assets and liabilities used in the Company''s business are not identified to any of the reportable segments as these are used interchangeably between segments. The Company believes that it is currently not practicable to provide segmental disclosure relating to total assets and liabilities since a meaningful segregation of the available data could be onerous.

Information about major Customers

There are no customers contributing in excess of 10% of the total revenue of the Company for the year ended 31 March 2021 and 31 March 2020.

There are no financial instruments that have been classified as Fair Value through Profit and Loss (FVTPL) and Fair Value through Other Comprehensive Income (FVTOCI).

a Fair values for these financial instruments have not been disclosed because their carrying amount are a reasonable approximation of their fair values.

* Other financial liabilities includes current maturities of long term borrowings.

Fair value hierarchy

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Financial instruments - risk management

The Company has exposure to the following risks arising from financial instruments: credit risk (refer note (b) below); liquidity risk (refer note (c) below) and market risk (refer note (d) below) :

(a) Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company’s board oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(b) Credit risk

Credit risk is the risk that a counter party fails to discharge its obligation to the Company. The maximum credit risk comprises the carrying amounts of the financial assets. The Company''s exposure to credit risk arises mainly from cash and cash equivalents, other bank balances, trade receivables, investments, loans and other financial assets. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

ii) Credit risk exposure

Cash and cash equivalent and other bank balances

Credit risk related to cash and cash equivalents and other bank balances is managed by accepting highly rated banks and diversifying bank deposits and accounts in different banks. Management does not expect any losses from nonperformance by these counterparties.

Loans and other financial assets measured at amortized cost

Loans and other financial assets measured at amortized cost includes lease deposits, staff advances, loans and other receivables. Credit risk related to these is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensures that amounts are within defined limits. The expected credit loss on these financial instruments is expected to be insignificant.

Trade and other receivables

Credit risk arise from possibility that customer may default on its obligation to make timely payments, resulting into financial loss. The maximum exposure to the credit risk is primarily from trade receivables. The expected credit loss allowance is based on the ageing of the days for which the receivables are due and the expected loss rates.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to settle or meet its obligations on time. The Company’s primary sources of liquidity are cash generated from operations. The cash flows from operating activities are driven primarily by operating results and changes in the working capital requirements.

The Company believe that its liquidity position is adequate to fund the operating and investing needs and to provide with flexibility to respond to further changes in the business environment.

(d) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, which will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. i) Foreign currency risk

The transactions of the Company are denominated in both Indian rupees and foreign currencies and accordingly, the Company is exposed to foreign exchange risk in relation to operating activities (when revenue or expense is denominated in a foreign currency) arising from foreign currency transactions.

Foreign currency risk exposure

The Company is contesting the demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the standalone financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceedings will not have a material adverse effect on the Company’s financial position and results of operations.

(ii) The Company during the year has made entry tax payment of Rs 12.28 lakhs against the said demand. Balance Rs 5.90 lakhs pertaining to penalty has been waived off by the department.

(iii) The Company during the year has received a demand order dated 31.08.2020 from the office of The Commissioner of Customs raising a demand of Rs 120.62 lakhs on the Com pany u/s 28(8) of the Customs Act, 1962 read with section 5(1) of IGST Act, 2017 with regards to classification under incorrect CTH of copper busbar imported by the Company during the period from 13.08.2014 to 30.10.2018. The order also imposes a penalty of Rs 12 lakhs on the Company and interest u/s 28AA of the Customs Act, 1962. The amount disclosed above is exclusive of interest as the same is not currently quantifiable. The Company has filed an appeal against the said order on 23.10.2020. Based on the legal opinion obtained by the Company from an independent firm of advocates, the management believes that the ultimate outcome of the proceedings will not have an adverse effect on the Company''s financial position.

(iv) The Supreme court of India had passed a judgement in the month of February 2019 relating to definition of wages under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The Management is of the view that there are interpretative challenges on the application of the judgement. However, the Company is in the process of determining the possible impact and update its provision, if required. The Management does not expect any material impact of the same for financial year 2020-21 based on the present salary structure followed by the Company for its class of employees.

51 First time adoption of Ind AS

As stated in Note 2.1, these are the Company''s first financial statements prepared in accordance with Ind AS. For the year ended upto and including 31 March 2020, the Company had prepared its financial statements in accordance with Companies (Accounting Standards) Rules, 2006, notified under Section 133 of the Act and other relevant provisions of the Act (''previous GAAP'').

The accounting policies set out in Note 3 have been applied in preparing these financial statements for the year ended 31 March 2021 including the comparative information for the year ended 31 March 2020 and the opening Ind AS balance sheet on the date of transition i.e. 1 April 2019. ( Transition date)

In preparing its Ind AS balance sheet as at 1 April 2019, and in presenting the comparative information for the year ended 31 March 2020, the Company has adjusted amounts reported previously in financial statements prepared in accordance with previous GAAP as detailed hereunder and accordingly the impact of such transition on the Company''s financial position and financial performance is listed hereunder:

In preparing these financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

A. Optional exemptions availed :

Ind AS 101 allows first-time adopters certain optional exemptions from the retrospective application of certain requirements under Ind AS for transition from the previous GAAP. The Company has availed the following :

(i) Deemed cost for property, plant and equipment and other intangible assets

In accordance with Ind AS 101, the Company has elected to continue with the carrying value of its property, plant and equipment and other intangible assets recognised as at 1 April 2019 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment and other intangible assets as on the date of transition.

(ii) Deemed cost for investments in subsidiaries

The Company has elected to continue with the carrying value of all of its investments in subsidiaries recognised as of transition date measured as per the Previous GAAP as its deemed cost as at the date of transition.

B. Mandatory exceptions :

In accordance with Ind AS 101, the Company has applied following mandatory exceptions for transition from the previous GAAP:

(i) Classification and measurement of financial assets

In accordance with Ind AS 101, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

(ii) Estimates

In accordance with Ind AS 101, the Company''s estimates are consistent with those made under previous GAAP and where necessary, appropriate adjustments are made to carrying value as at the date of transition.

As per Ind AS 101, the Company is required to make certain estimates that were not required under previous GAAP, which should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).

Further estimates considered in preparation of the financial statements that were not required under the previous GAAP are:

(i) Fair valuation of financial instruments carried at FVTPL and/or FVOCI;

(ii) impairment of financial assets based on the expected credit loss model

(iii) determination of the discounted value for financial instruments carried at amortised cost.

1 Measurement of financial assets and financial liabilities at amortised cost

Under Previous GAAP, all financial assets and financial liabilities were carried at cost.

Under Ind AS, certain financial assets and financial liabilities are subsequently measured at amortised cost which involves the application of effective interest method. In applying the effective interest method, an entity identifies, fees that are an integral part of the effective interest rate of a financial instrument. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of the financial asset or financial liability.

For certain financial assets and liabilities, the fair value of the financial assets liabilities at the date of transition to Ind AS has been considered as the new amortised cost of that financial assets and liabilities at the date of transition to Ind AS.

2 Leases

Under Previous GAAP, lessee classified a lease as an operating or a finance lease based on whether or not the lease transferred substantially all risk and rewards incidental to the ownership of an asset. Operating lease were expensed in the statement of profit and loss. Pursuant to application of Ind AS 116, for operating leases other than those for which the Company has opted for short-term or low value exemption, the Company has recorded a right-to-use asset and lease liability. Right-to-use asset is amortised over the lease term or useful life of the leased assets whichever is lower and lease liability is subsequently measured at amortised cost and interest expense is recognised.

3 Recognition of loss allowance for expected credit losses on financial assets measured at amortised cost

Under Previous GAAP, provision for doubtful debts was recognised based on the estimates of the outcome and of the financial effect of contingencies determined by the management of the Company. This judgement was based on consideration of information available up to the date on which the financial statements were approved and included a review of events occurring after the balance sheet date.

Under Ind AS, a loss allowance for expected credit losses is recognised on financial assets carried at amortised cost. The expected credit loss allowance is based on the ageing of the days for which the receivables are due and the expected loss rates.

4 Revenue from contracts with customers

The Company has adopted Ind AS 115 ‘Revenue from Contracts with Customers’ which introduces a new five step approach to measuring and recognising revenue from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for services to a customer. The Company has adopted Ind AS 115 effective 1 April 2019 applying the standard to all the contracts that are not completed as such date.

5 Re-measurement gains on defined benefit plans

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 liability, are recognized in other comprehensive income instead of profit or loss in Previous GAAP.

6 Deferred tax

Under Previous GAAP, deferred taxes were recognised for the tax effect of timing differences between accounting profit and taxable profit for the year using the income statement approach. Under Ind AS, deferred taxes are recognised using the balance sheet approach for future tax consequences of temporary differences between the carrying value of assets and liabilities and their respective tax bases. The above difference, together with the consequential tax impact of the other Ind AS transitional adjustments lead to temporary differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or through profit or loss. For transactions and other events recognised outside profit or loss (either in other comprehensive income or directly in equity), related tax effects are also recognised outside profit or loss (either in other comprehensive income or directly in equity, respectively).

52. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

53. Estimation uncertainty relating to the global health pandemic on COVID-19

The Company has evaluated the possible impact of this pandemic on the business operations and the financial position of the Company and based on its assessment, believes that there is no significant impact on the financial statements of the Company, as at and for the year ended 31 March 2021. The Company has carried out this assessment based on available internal and external sources of information upto the date of approval of these financial statements and believes that the impact of COVID-19 is not material to these financial statements and expects to recover the carrying amount of its assets. The impact of COVID-19 on the financial statements may differ from that estimated as at the date of approval of these financial statements owing to the nature and duration of COVID-19.

54. The Company during financial year 2017-18 paid to a supplier in China an advance of USD 8,00,000 carried at Rs 584.48 lakhs as at 31 March 2021 (31 March 2020: USD 8,00,000 carried at Rs 600.40 lakhs, 01 April 2019: USD 8,00,000 carried at Rs 559.44 lakhs), for procurement of solar PV modules. The Company has initiated arbitration proceedings against the supplier by appointing an independent arbitration professional. Pending recovery of the advance paid or procurement of material against the said advance, the Company believes that this advance is recoverable and it continues to carry the said advance as unsecured and considered good under "Other current assets".

55 Previous year’s figures

Previous year’s figures have also been regrouped / recasted, wherever necessary, to conform to the current year’s presentation.

---

Mar 31, 2018

NOTES TO THE FINANCIAL STATEMENTS

MARINE ELECTRICALS (INDIA) PRIVATE LIMITED
Notes To The Financial Statements
No					As At 31st March 2018	As At 31st March 2017
1	Share Capital				Amount in Rs.	Amount in Rs.
		Authorized
		2,00,00,000 (Previous year 2,00,00,000] Equity Shares of Rs 10/-each			200,000,000	200,000,000
		Issued Subscribed and Fully Paid Up
		1,80,37,050 (Previous year 171,78,200] Equity Shares of Rs 10/-each			180,370,500	171,782,000
	(a)	Shares held by ultimate holding company and its subsidiaries:
		1,26,81,375 (Previous year 1,20,77,500] Equity Shares are held by KDU Enterprises Pvt. Ltd., the Holding company
	(b)	Reconciliation of the number of equity shares and share capital:
			As at 31st March 2018		As at 31st March 2017
		Particulars	No. of shares	Rs.	No. of shares	Rs.
		Issued, subscribed and fully paid up equity shares outstanding at the beginning of the year	17,178,200	171,782,000	17,178,200	171,782,000
		Add: Issue of Shares	858,850	8,588,500	-	-
		Issued, subscribed and fully paid up equity shares outstanding at the end of the year	18,037,050	180,370,500	17,178,200	171,782,000
	(c)	Terms/rights attached to equity shares:
		The Company has only one class of share capital, i.e. equity shares having face value of Rs 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The 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 the equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

	(d)	Shareholder holding more than 5% of equity shares as at the end of the year
			As at 31st March 2018		As at 31st March 2017
		Name of the Shareholder	No. of shares	% of holding	No. of shares	% of holding
		KDU Enterprises Pvt. Ltd.	12,681,375	70.31	12,077,500	70.30
		Mr. Venkatesh K. Uchil	5,354,475	29.68	5,099,500	29.68
					As at 31 March 2018	As at 31 March 2017
					Amount in Rs.	Amount in Rs.
2	RESERVES AND SURPLUS
	(a)	Securities Premium Account
		As per Last Balance Sheet			13,302,500	13,302,500
		Shares issued during year			41,224,800	-
					54,527,300	13,302,500
	(b)	General Reserves
		As per Last Balance Sheet			70,809,605	70,809,605
	(c)	Surplus in the statement of profit and loss
		As per last Balance Sheet			331,579,931	245,704,485
		Add: Profit for the year			117,240,617	86,114,162
		Appropriations during the year			221,496	-238,717
		Closing Balance			449,042,044	331,579,931
		Total			574.378.949	415.692.036
3	LONG TERM BORROWINGS
		Secured
		Term Loan
		From Banks
		Vehicle			3,355,902	1,004,475
		Term Loan			36,879,387	113,222,562
					40,235,290	114,227,037
		Less: Current Portion of Long Term Borrowings			27,657,306	55,953,752
		Long Term Borrowings			12.577.984	58.273.285

		Nature of security & term loan of repayment for Long Term secured borrowings
		FCNR & Term Loan Rs. 36,879,387/- (Previous year Rs. 113,222,562/-) are secured by way of an equitable mortgage of Factory, Land & Building (ICICI FCNR Loan Rs. 18,438,606/- (previous year 35,372,053/-, Int. @ Libor 3M 4.05%, ICICI Term Loan Rs.18,440,782/- (previous year Rs.26,636,686/-, Int. @ 9.10% and and SBI Term Loan Rs.Nil (Previous year Rs.51,213,823/- Int. @11.95%)
			As at 31 March 2018	As at 31 March 2017
			Amount in Rs.	Amount in Rs.
4	DEFERRED TAX LIABILITIES [NET]
		Deferred Tax liabilities [Net]	18.472.178	27.629.178
5	LONG TERM PROVISIONS
		Provision for Gratuity	12,340,879	-
		Provision for Leave Salary	3,966,525	-
			16.307.404	-
6	SHORT TERM BORROWINGS
	(a)	Secured
		Working Capital Loans from Bank
		Cash Credit from Bank	290,554,840	197,722,067
	(b)	Unsecured
		Loans from Others	3,828,110	46,301
		Total	294.382.950	197.768.368
		(Cash Credit from Bank Rs. 290,554,840/-(Previous year Rs. 197,739,985/-J are secured by way of hypothecation of Inventories, Debtors/ Receivables & other movable current assets at Mumbai & both the Goa Plants ]
7	TRADE PAYABLES
	(a)	Due to Related Parties	12,750,789	7,233,179
	(b)	Micro and Small Enterprises	-	-
	(c)	Due to Others	1,241,698,193	447,400,328
		Total	1,254,448,981	454,633,507
8	OTHER CURRENT LIABILITIES
	(a)	Interest Occurred and Due on Borrowings	-	-
	(b)	Advances From Customers	261,968,988	42,139,200

	(c)	Payable for Capital Goods	19,359,770	25,122,658
	(d)	Current maturities of Long Term Borrowings- Banks	27,423,164	55,953,752
	(e)	Current maturities of Long Term Borrowings- Others	234,143	-
			As at 31 March 2018	As at 31 March 2017
			Amount in Rs.	Amount in Rs.
	(0	Other Payables
		i. Statutory Dues	7,155,336	29,987,158
		ii. Commissioning Expenses Payable	15,171,199	30,316,240
		iii. Rent Deposit	2,000,000	2,000,000
		iv. Others	47,568,094	29,196,984
		TOTAL	380.880.693	214.715.991
9		SHORT -TERM PROVISIONS
		Provision For Employee Benefits:
		Bonus Provision	5,786,085	5,502,315
		Provision for Gratuity	219,000	6,529,156
		Provision for Leave Salary	92,475	-
		Others:
		Provision for Taxation [net]	32,165,237	20,539,481
		Total	38.262.797	32.570.951

As per our Report of even date
For R. R. Bandekar & Associates	For and on behalf of the Board
Chartered Accountants
FRN:117221W
CA. Rishikesh R. Bandekar	Vinay K. Uchil	Venkatesh K. Uchil
Proprietor	Director	Director
M. No: 102790	Din: 01276871	Din:01282671
Place: Mumbai
Date: 26/07/2018