(k) Provisions (other than employee benefits)

A provision is recognised if, as a result of
a past event, the Company has a present
legal or constructive obligation that can be
estimated reliably, and it is probable that an
outflow of economic benefits will be required
to settle the obligation.

Warranties

A provision for warranties is recognised
when the underlying products or services
are sold. The provision is based on technical
evaluation, historical warranty data and
all possible outcomes by their associated
probabilities.

Onerous contracts

A contract is considered to be onerous
when the expected economic benefits to be
derived by the Company from the contract

are lower than the unavoidable cost of
meeting its obligations under the contract.
The provision for an onerous contract
is measured at the present value of the
lower of the expected cost of terminating
the contract and the expected net cost of
continuing with the contract.

(l) Contingent Liabilities and Contingent
Assets

Contingent liability is disclosed for (i)
Possible obligations which will be confirmed
only by the future events not wholly within
the control of the Company or (ii) Present
obligations arising from past events where it
is not probable that an outflow of resources
will be required to settle the obligation or
a reliable estimate of the amount of the
obligation cannot be made.

Contingent assets are not recognised in the
financial statements. A contingent asset
is disclosed where an inflow of economic
benefits is probable. Contingent assets are
assessed continually and, if it is virtually
certain that an inflow of economic benefits
will arise, the asset and related income are
recognised in the period in which the change
occurs.

(m) Revenue recognition

Sale of goods and services

Revenue is recognised upon transfer of
control of promised goods to customers in
an amount that reflects the consideration
which the Company expects to receive in
exchange for those goods.

Revenue from the sale of goods is
recognised at the point in time when control
is transferred to the customer, which
generally coincides with the delivery of
goods to customers, based on contracts
with the customers.

Revenue is measured based on the
transaction price, which is the consideration,
adjusted for volume discounts, price
concessions, incentives, and returns, if
any, as specified in the contracts with the
customers.

Revenue excludes taxes collected from
customers on behalf of the government.
Accruals for discounts/incentives and
returns are estimated (using the most likely
method) based on accumulated experience
and underlying schemes and agreements
with customers.

Revenue from services towards erection,
commissioning and other services is
recognised when services are rendered and
there is certainty of the realisation.

Transaction Price

The Company is required to determine the
transaction price in respect of each of its
contracts with customers. Contract with
customers for sale of goods or services
are either on a fixed price or on variable
price basis. For allocating the transaction
price, the Company measures the revenue
in respect of each performance obligation
of contract at its relative standalone selling
price. The price that is regularly charged for
an item when sold separately is the best
evidence of its standalone selling price.
In making judgment about the standalone
selling price, the Company also assesses
the impact of any variable consideration in
the contract, due to discounts or rebates.

Performance Obligations

If a contract contains more than one distinct
goods and service, the transaction price is
allocated to each performance obligation
based on relative stand-alone selling prices.

Dividend and Interest income:

Dividend income from investments is
recognised when the Company's right to
receive payment is established.

Interest income from financial assets
is recognised when it is probable that
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a
time basis, by reference to the principal
outstanding and at the effective interest
rate applicable, which is the rate that exactly

discounts estimated future cash receipts
through the expected life of the financial
asset to that asset's net carrying amount on
initial recognition.

Insurance claim:

Insurance claims are recognised on the
basis of claims admitted / expected to be
admitted, to the extent that the amount
recoverable can be measured reliably and it
is reasonable to expect ultimate collection.

Other Income:

Other income is comprised primarily of
gain / loss on investments, exchange gain/
loss on foreign currency transactions and
commission for corporate guarantee.

(n) Government Grants

The export incentives received by the
Company such as duty draw back, Remission
of Duties or Taxes on Export Products
Scheme (RoDTEP) and Export Promotions
on Capital Goods (EPCG) scheme are treated
as government grants.

(o) Income taxes

Income tax expense comprises current and
deferred tax. It is recognised in the statement
of profit and loss except to the extent it may
relate to a business combination, or items
recognised directly in equity or in OCI.

The Company has determined that interest
and penalties related to income taxes,
including uncertain tax treatments, do not
meet the definition of income taxes, and
therefore accounted for them under Ind AS
37 "Provisions, Contingent Liabilities and
Contingent Assets"

Current tax

Current tax comprises the expected tax
payable or receivable on the taxable income
or loss for the year and any adjustment to
the tax payable or receivable in respect
of previous years. The amount of current
tax reflects the best estimate of the tax
amount expected to be paid or received after
considering the uncertainty, if any, related to

income taxes. It is measured using tax rates
(and tax laws) enacted or substantively
enacted by the reporting date.

Current tax assets and current tax liabilities
are offset only if there is a legally enforceable
right to set off the recognised amounts, and
it is intended to realise the asset and settle
the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of
temporary differences between the carrying
amounts of assets and liabilities for financial
reporting purposes and the corresponding
amounts used for taxation purposes.
Deferred tax is also recognised in respect of
carried forward tax losses and tax credits, if
any.

Deferred tax assets are recognised for
unused tax losses, unused tax credits and
deductible temporary differences to the
extent that it is probable that future taxable
profits will be available against which
they can be used. Deferred tax assets -
unrecognised or recognised, are reviewed
at each reporting date and are recognised/
reduced to the extent that it is probable/ no
longer probable respectively that the related
tax benefit will be realised.

Deferred tax is measured at the tax rates
that are expected to apply to the period when
the asset is realised or the liability is settled,
based on the laws that have been enacted or
substantively enacted by the reporting date.

The measurement of deferred tax reflects
the tax consequences that would follow
from the manner in which the Company
expects, at the reporting date, to recover or
settle the carrying amount of its assets and
liabilities.

(p) Borrowing cost

Borrowing costs are interest and other costs
incurred in connection with the borrowing of
funds. Borrowing costs directly attributable

to acquisition or construction of an asset
which necessarily take a substantial period
of time to get ready for their intended use are
capitalised as part of the cost of that asset.
Other borrowing costs are recognised as
an expense in the period in which they are
incurred.

(q) 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.
The CODM is responsible for allocating
resources and assessing performance of
the operating segments of the Company. For
the disclosure on reportable segments see
Note 43.

(r) Cash and cash equivalents

Cash and cash equivalents comprise
cash and cheques in hand, bank balances,
demand deposits with banks where the
original maturity is three months or less and
other short term highly liquid investments.

(s) Investments in subsidiaries and associates

The Company has elected to recognise its
investments in subsidiary and associate
companies at cost in accordance with
the option available in Ind AS 27, Separate
Financial Statements.

(t) Cash flow statement

Cash flows are reported using the indirect
method, whereby profit for the period is
adjusted for the effects of transactions of
a non-cash nature, any deferrals or accruals
of past or future operating cash receipts or
payments and item of income or expenses
associated with investing or financing cash
flows. The cash flows from the operating,
investing and financing activities of the
Company are segregated. In the cash-flow
statement, cash and cash equivalents are
shown net of bank overdrafts, which are
included as current borrowings in liabilities
on the balance sheet.

(u) The Dividend Distribution to equity
shareholders:

The Holding Company recognises a liability
to make cash distributions to equity holders
when the distribution is authorised and the
distribution is no longer at the discretion
of the Holding Company. A distribution
is authorised when it is approved by the
shareholders. A corresponding amount is
recognised directly in other equity.

(v) Earnings per share

Basic earnings per equity share are
computed by dividing the net profit
attributable to the equity holders of the
Company by the weighted average number
of equity shares outstanding during the
period. Diluted earnings per equity share
is computed by dividing the net profit
attributable to the equity holders of the
Holding Company by the weighted average
number of equity shares considered for
deriving basic earnings per equity share and
also the weighted average number of equity
shares that could have been issued upon
conversion of all dilutive potential equity
shares. The dilutive potential equity shares
are adjusted for the proceeds receivable had
the equity shares been actually issued at fair
value (i.e. the average market value of the
outstanding equity shares). Dilutive potential
equity shares are deemed converted as of

the beginning of the period, unless issued
at a later date. Dilutive potential equity
shares are determined independently for
each period presented. The number of
equity shares and potentially dilutive equity
shares are adjusted retrospectively for all
periods presented for any share splits and
bonus shares issues including for changes
effected prior to the approval of the financial
statements by the Board of Directors.

2.6 Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
For the year ended March 31, 2025, MCA has
notified Ind AS - 117 Insurance Contracts and
amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to
the Company w.e.f. April 1,2024.

The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any significant
impact in its financial statements.

2.7 Rounding off

Amounts in these Financial Statements are
rounded off to the nearest Lakhs except Earnings
per share. The amount "0" (zero) represents value,
which is less than ' 1 Lakh.

16.3 Description of Reserves

General Reserve

General Reserve represents appropriation of retained earnings and are available for distribution to shareholders.

Securities Premium

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the

provisions of the Companies Act, 2013.

Capital Reserve

a) Capital reserve amounting to ' 4,259 Lakhs is recorded in bargain purchase transaction of business combination
in which the fair value of acquired net assets exceeded the purchase consideration. Capital reserve is not available
for dividend distribution.

b) Capital Reserve amounting to ' 683 Lakhs represent difference between book value of the net assets and reserves
of Elecon Transmission International Limited ('ETIL') and investment in equity shares of Elecon Transmission
International Limited.

Retained Earnings

Retained earnings represents surplus/accumulated earnings of the Company and are available for distribution to

shareholders.

17.1 Nature of Securities {Loans repayable on demand}

i) Working Capital Loans from banks granted by Consortium of Banks consisting of State Bank of India (As Lead
Bank), Axis Bank, IDBI Bank and HDFC Bank (Including guarantees issued by them in favour of various clients of the
Company) are secured by:-

a) First pari passu hypothecation charge over all the current assets of the Company, present and future.

b) Omnibus Counter Guarantee of the Company for consortium BG limits

c) Extension of first pari passu hypothecation charge over property, plant and equipment (movable and
immovable) present and future, excluding certain assets specifically / exclusively charged to other banks/
financial institutions.

d) Undertaking for non disposal of various land parcels of the Company as per loan sanction letter.

e) Securities released by Consortium of Banks during the current year:

- Registered mortgage on factory land and building as per NOC.

f) Rate of Interest for Loan from banks during the year ended:

37 FINANCIAL INSTRUMENTS RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's financial liabilities comprise mainly of borrowings, trade and other payables. The Company's financial
assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables
and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of the Company has constituted a
Risk Management Committee to frame, implement and monitor the risk management plan for the Company. The said
committee is responsible for reviewing the risk management plan and ensuring its effectiveness. The Audit Committee
has additional oversight in the area of financial risks and controls. It also covers policies on specific risk areas such as
currency risk, interest rate risk, credit risk and investment of surplus funds.

The following disclosures summarise the Company's exposure to financial risks and information regarding use of
derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect
the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of
the Company.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other
price risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade
receivables and loans.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company seeks to mitigate such risk by maintaining an adequate proportion of
floating and fixed interest rate borrowings. As at March 31,2025, approximately 100% of the Company's borrowings
which consist of cash credits for working capital are at fixed rate (March 31, 2024 : 100%). Summary of financial
assets and financial liabilities has been provided below:

(b) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk primarily trade receivables and other
financial assets including deposits with banks. The Company's exposure and credit ratings of its counterparties are
continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties.
Security deposits mainly includes rental deposits, earnest money deposits which are given as per contractual
agreement. Contract assets mainly pertains to contracts where there has been no delay or default in the past
periods.

Other financial assets

This comprises mainly of deposits with banks, investments in mutual funds, market linked debentures, other quoted
instruments and other group receivables. Credit risk arising from these financial assets is limited because the
counterparties are group companies, banks and recognised financial institutions and other corporates with high
ratings, assigned by recognised credit rating agencies. In case of mutual fund investments, since majority of the
investments are in overnight or liquid funds, having limited risk.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company's established policy and procedures.
Trade receivables are non-interest bearing and generally have a credit period not exceeding 90 days. Credit limits
are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly
monitored and any shipments to major customers are generally covered by letters of credit. The Company has no
concentration of credit risk as the customer base is widely distributed both economically and geographically.

An impairment analysis is performed at each reporting date based on the facts and circumstances existing on
that date to identify expected losses on account of time value of money and credit risk. For the purposes of this
analysis, the receivables are categorised into groups based on types of receivables. Each group is then assessed for
impairment using the Expected Credit Loss (ECL) model as per the provisions of Ind AS 109 - Financial instruments.
The calculation is based on provision matrix which considers actual historical data adjusted appropriately for the
future expectations and probabilities. Receivables from group companies and secured receivables are excluded for
the purposes of this analysis since no credit risk is perceived on them. Proportion of expected credit loss provided
for across the ageing buckets is summarised below:

# Includes provision made for long outstanding retention money.

The loss rates are based on actual credit loss experience over past years. These loss rates are then adjusted
appropriately to reflect differences between current and historical economic conditions and the Company's view of
economic conditions over the expected lives of the receivables.

The following significant change in the carrying amounts of trade receivables contributed to change in the
impairment loss allowance during year ended March 31,2025:

- increase in credit impaired balances is due to additional impairment is considered for specific customers due to
lapse of time in realising the receivable due.

Movement in provision of expected credit loss has been provided in Note no. 12.

(c) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated
with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result
from an inability to sell a financial asset quickly at close to its fair value. The Company's objective is to, at all times
maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors
its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing
including bilateral loans, debt and overdraft from both banks and financial institutions at an optimised cost.

The table below analyses non-derivative financial liabilities of the Company into relevant maturity groupings based
on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed under the
ageing buckets are the contractual undiscounted cash flows and includes contractual interest payments.

(d) Commodity price risk

Commodity price risk arises due to fluctuation in prices of steel. The Company has a risk management framework
aimed at prudently managing the risk arising from the volatility in the commodity prices and freight costs. The
Company's commodity risk is managed through well-established control processes.

(e) Capital management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. Management monitors the return on capital as well as the level
of dividends to ordinary shareholders.

The Company has adequate cash and bank balances and no interest bearing liabilities. The Company monitors its
capital by a careful scrutiny of the cash and bank balances, and a regular assessment of any debt requirements.
In the absence of any interest bearing debt, the maintenance of debt equity ratio etc. is not of relevance to the
Company.

Fair value of financial assets and liabilities measured at amortised cost is not materially different from the amortised
cost. Further, impact of time value of money is not significant for the financial assets and liabilities classified as
current. Accordingly, the fair value has not been disclosed separately.

B. Measurement of fair values

i) Valuation techniques and significant unobservable inputs

The carrying amounts of financial assets and liabilities other than those valued at Level 1 and Level 2 are
considered to be the same as their fair values due to the current and short term nature of such balances and
no material differences in the values.

Fair value of borrowing is computed using the market comparison technique where information for the
interest rate at which a borrowing can availed by company is used to arrive at fair value of borrowing. Further
management measurement of fair value is not materially different from the amortised cost in these case
significant unobservable inputs and inter relationship between significant unobservable inputs and fair value
measurement is not applicable.

The Company's investments on disposal will fetch only the principal amount invested and hence the Company
considers cost and fair value to be the same for investments in equity shares of ' 0.15 Lakhs (March 31,2024:
' 0.15 Lakhs).

ii) Levels 1,2 and 3

Level 1 : It includes Investment in equity shares and mutual funds that have a quoted price and which are
actively traded on the stock exchanges. It is been valued using the closing price as at the reporting period on
the stock exchanges.

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

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

C. Fair value through profit and loss - in unquoted equity shares:

i) Transfers between Levels 1 and 2

There have been no transfers between Level 1 and Level 2 during the reporting periods.

ii) Level 3 fair values

Movements in the values of unquoted equity instruments for the year ended March 31, 2025 and March 31,
2024 is as below:

d Unsatisfied performance obligations

The Company applies the practical expedient in Paragraph 121 of Ind AS 115 and does not disclose information
about remaining performance obligations where the Company has a right to consideration from the customer in an
amount that corresponds directly with the value to the customer of the Company's performance completed to date.
Accordingly, the Company recognises revenue by an amount to which the Company has a right to invoice.

44 LEASE TRANSACTIONS

The Company has elected below practical expedients while applying Ind AS 116:

1. Applied a single discount rate to a portfolio of leases with reasonably similar characteristics.

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

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

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified assets for a period
of time in exchange for consideration.

The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all the assets that
have a lease term of twelve months or less and leases for which the underlying asset is of low value. The lease
payments associated with these leases are recognised as an expense on a straight line basis over the lease term.
The incremental borrowing rate applied to lease liabilities as at 1st April, 2024 is 14.50%, 8.00% and 8.5% for Lease
Arrangements of current year.

(g) The Company does not have any charges or satisfaction which is yet to be registered with Registrars of Companies
beyond the statutory period.

(h) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

47 The Standalone financial statements were authorised by the Board of Directors at its Board meeting held on
April 24, 2025.

As per our report of even date attached

For CNK & Associates LLP For and on behalf of the Board of Directors

Chartered Accountants Elecon Engineering Company Limited

Firm's Registration No : 101961W/W-100036 CIN: L29100GJ1960PLC001082

Himanshu Kishnadwala Prayasvin Patel Ashutosh Pednekar

Partner Chairman & Managing Director Director

Membership No: 037391 DIN : 00037394 DIN : 00026049

Narasimhan Raghunathan Bharti Isarani

Chief Financial Officer Company Secretary

Place : Vallabh Vidyanagar Place : Vallabh Vidyanagar

Date : April 24, 2025 Date : April 24, 2025