r. Provisions and Contingent liabilities

Provisions are recognised when the Company has a present, legal or constructive obligation as a result of a past
event and it is probable that an outflow of resources will be required to settle the obligation, and a reliable
estimate of the amount of the obligation can be made. Provisions are determined based on the best estimate
required to settle the obligation at the Balance Sheet date. Provisions are reviewed at each Balance Sheet date
and adjusted to reflect current best estimates. Provisions are not recognised for future operating losses.
Provision for warranty is computed as a percentage of sales based on the past trends observed.

Contingent liabilities are disclosed by way of a note to the financial statements 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.

s. Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are
recognised in respect of employees' services up to the end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for Other long-term employee benefits such as long service award, privileged leave and sick
leave are not expected to be settled wholly within 12 months after the end of the period in which the
employees render the related service. They are therefore measured as the present value of expected future
payments to be made in respect of services provided by employees up to the end of the reporting period
using the projected unit credit method. The benefits are discounted using the market yields at the end of the
reporting period that have terms approximating to the terms of the related obligation. Remeasurements as
a result of experience adjustments and changes in actuarial assumptions are recognised in the Statement of
Profit and Loss. The Company does not have an unconditional right to defer settlement for any of these
obligations. However, based on the past experience, the Company does not expect payment of the entire
amount of accrued leaves or availment of the entire number of accrued leaves by employees within twelve
months and accordingly, amounts have been classified as current and non-current.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) Defined benefit plans - gratuity and superannuation

(b) Defined contribution plans - provident fund

(a) Defined benefit plans - gratuity and superannuation
(i) Gratuity

The Company provides for gratuity, a defined benefit plan (the “Gratuity Plan”) covering
eligible employees in accordance with the Payment of Gratuity Act, 1972, as amended from
time to time. The Gratuity Plan provides a lump sum payment to vested employees at
retirement, death or termination of employment, of an amount based on the respective
employee's salary and the tenure of employment.

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans
is the present value of the defined benefit obligation at the end of the reporting period less the
fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using
the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows by reference to market yields at the end of the reporting period on
government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in finance cost in the
Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive
income. They are included in retained earnings in the Statement of Changes in Equity and in
the Balance Sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments
or curtailments are recognised immediately in the Statement of Profit and Loss as past service
cost.

(ii) Superannuation

Superannuation is a benefit to certain employees (depending on the grade / category of the
employee and completed years of service) per month for each completed year of service. The
accounting policy followed by the Company for Superannuation is consistent with accounting
policy followed for Gratuity [Refer note 1(s)(iii)(a)(i)].

(b) Defined Contribution Plans

The Company pays provident fund contributions for all employees to publicly administered
provident funds as per local regulations. The Company has no further payment obligations once
the contributions have been paid. The contributions are accounted for as defined contribution
plans and the contributions are recognised as employee benefits expense when they are due.

t. Dividends

The Company recognizes provision for Dividend and the tax thereupon, if any, once the Dividend is approved
by the shareholders in the annual general meeting.

u. Contributed equity

Equity shares are classified as equity.

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

v. Earnings per share

i. Basic Earnings per share

Basic earnings per share is calculated by dividing:

• the net profit for the period attributable to equity shareholders

• by the weighted average number of equity shares outstanding during the financial year.

Earnings considered in ascertaining the Company's earnings per share is the net profit for the period after
deducting any attributable tax thereto for the period. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted for events, such as bonus shares or
share split, other than the conversion of potential equity shares that have changed the number of equity
shares outstanding, without a corresponding change in resources.

ii. Diluted Earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:

• the after-income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.

Other accounting policies:

a. Government grants

Grants from the government are recognised at their fair value where there is a reasonable assurance that the
grant will be received, and the Company will comply with all attached conditions. Government grants
relating to income are recognised in the Statement of Profit and Loss. Refer note 1(e)(iii) for accounting
policy related to Duty drawback, Merchandise Export Incentive Scheme (MEIS) and Remission of Duties
and Taxes on Exported Products (RoDTEP).

When government or related institutions provide concession in interest on borrowings or loans availed by
the Company from financial institutions, such interest concession is regarded as a government grant. The
Company accounts for the interest paid at concessional rate on packing credit facility availed for export of
goods.

b. Derivatives

The Company enters into certain derivative contracts to hedge risks which are not designated as hedges.
Such contracts are accounted for at fair value through profit or loss.

c. Rounding of amounts:

Amounts disclosed in the financial statements are presented in INR in million rounded off to two decimal
places as permitted by Schedule III to the Companies Act, 2013, unless otherwise stated.

2. Significant accounting judgements, estimates and assumptions

The preparation of financial statements requires the use of accounting estimates which, by definition, will
seldom equal the actual results. Management also needs to exercise judgement in applying the company's
accounting policies. Estimates and assumptions are continuously evaluated and are based on historical
experience and other factors including expectations of future events that are believed to be reliable and relevant
under the circumstances. This note provides an overview of the areas that involved a higher degree of
judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and
assumptions turning out to be different than those originally assessed. Management believes that the estimates
are the most likely outcome of future events. Detailed information about each of these estimates and
judgements is described below.

Judgements

In the process of applying the Company's accounting policies, Management has made the following
judgements, which have the most significant effect on the amounts recognized in the financial statements:

i. Legal contingencies

The Company has received various orders and notices from tax authorities in respect of direct taxes and
indirect taxes. The outcome of these matters may have a material effect on the financial position, results of
operations or cash flows. Management regularly analyzes current information about these matters and
provides provisions for probable contingent losses including the estimate of legal expense to resolve the
matters. In making the decision regarding the need for loss provisions, management considers the degree
of probability of an unfavorable outcome and the ability to make a sufficiently reliable estimate of the
amount of loss. The filing of a suit or formal assertion of a claim against the Company or the disclosure of
any such suit or assertions, does not automatically indicate that a provision of a loss may be appropriate.

ii. Revenue Recognition on Contracts with Customers

Company generate revenue from sale of Pumps, valves and related support services. Company uses
judgement with respect to accounting of multiple contracts which need to be combined and considered as
single contract. The Company exercises judgement with respect to identifying contracts for which
revenue need to be recognised point in time or over time, depending upon when customer consumes the
benefit, when the control is passed to customer, whether asset created has an alternative use and whether
the Company has right to payment for performance completed till date, either contractually or legally.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and

liabilities within the next financial year, are described below. The Company based its assumptions and
estimates on parameters available when the financial statements were prepared. Existing circumstances and
assumptions about future developments, however, may change due to market changes or circumstances arising
that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

i. Warranty

The Company generally offers an 18 months warranty for its products, except for certain projects where
the warranty offered may be higher to meet specific project requirements. Warranty costs are determined
as a percentage of sales based on the past trends of the costs required to be incurred for repairs,
replacements, material costs and servicing cost. Management estimates the related closing provision as at
Balance Sheet date for future warranty claims based on historical warranty claim information, as well as
recent trends that might suggest that past information may differ from future claims. The assumptions
made in current period are consistent with those in the prior year. As the time value of money is not
considered to be material, warranty provisions are not discounted. Refer note 18 for further information.

ii. Gratuity

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined
using actuarial valuation. An actuarial valuation involves making various assumptions that may differ
from actual developments in the future. These include the determination of the discount rate, future salary
increases, attrition rate, mortality rates and expected return on planned assets. Due to the complexities
involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at the year end. The parameter most subject
to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the
management considers the interest rates of government bonds in currencies consistent with the currencies
of the post-employment benefit obligation. The mortality rate is based on Indian Assured Lives Mortality
(2012-14) Ultimate. Those mortality tables tend to change only at interval in response to demographic
changes. Future salary increases and gratuity increases are based on expected future inflation rates. For
further details about gratuity obligations are given in note 31.

iii. Recoverability of trade receivables

Judgements are required in assessing the recoverability of overdue trade receivables and determining
whether a provision against those receivables is required. Factors considered include the credit rating of
the counterparty, the amount and timing of anticipated future payments and any possible actions that can
be taken to mitigate the risk of non-payment. Refer note 35(A) for further details.

iv. Inventories

An inventory provision is recognized for cases where the realizable value is estimated to be lower than the
inventory carrying value. The inventory provision is estimated takinginto account various factors,
including prevailing sale prices of inventory item and losses associated with obsolete / slow moving /
redundant inventory items. The Company has, based on these assessments, made adequate provision in
the books.

*The Board of Directors of the Company at its meeting held on April 26, 2024 recommended the sub-division/split of
1 (One) fully paid-up equity share having a face value of ' 10 each into 5 (Five) fully paid-up equity shares having a face
value of ' 2 each by alteration of capital clause of the Memorandum of Association (MOA) subject to the approval of
Members of the Company. Further, the Board of Directors approved the Record Date for Split/Sub-division of Equity
Shares. The Members of the Company approved the sub-division/Split of 1 (One) fully paid up equity share of ' 10 each
into 5 (Five) fully paid-up equity shares of ' 2 each through an ordinary resolution passed in the Annual General Meeting
held on June 27, 2024 with the requisite majority. The voting results were declared on June 29, 2024.

Consequent to this, the authorised share capital comprises 20,00,00,000 equity shares having a face value of ' 2 each
aggregating to 40,00,00,000, and the paid-up capital comprises 17,40,39,220 equity shares having a face value of ' 2
each aggregating to 34,80,78,440. The impact of this has been considered in the financial statement.

(ii) Rights, preferences and restrictions attached to equity shares

The Company has only one class of shares referred to as equity shares having a face value of ' 2 per share.
Each equity shareholder is entitled to one vote per share. The dividend proposed by the Board of Directors
is subject to approval of the shareholders in the ensuing Annual General Meeting except in case of interim
dividend. In the event of liquidation of the Company, the equity shareholders 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.

A Defined contribution plan

Contributions are made to provident fund at a fixed percentage of employee's salary as per the regulations. The
contributions are made to registered provident fund administered by the government. The obligation of the Company is
limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense
recognised during the year towards contribution to provident fund is ' 119.71 million (December 31, 2023 - ' 107.46
million).

B Compensated absences

The leave obligations cover the Company's liability for privilege leave and sick leave. The amount of provision made
during the year is ' 86.98 million (December 31, 2023 - ' 32.61 million). The Company does not have an unconditional
right to defer settlement for any of these obligations. However, based on the past experience, the Company does not expect
payment of the entire amount of accrued leaves or availment of the entire number of accrued leaves by employees within
twelve months and accordingly, amounts have been classified as current and non-current.

C Long service award

The Company award all the employees who complete 25 years of service in the Company and the Workmen employees
who complete 20 or more years of service in the Company but unable to complete 25 years due to superannuation.
The amount of provision made during the year is ' 5.83 million (December 31, 2023 - ' 9.22 million).

Risk exposure for the above plans

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

(i) Asset-liability mismatch risk

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. In managing
the plan assets, Board of Trustees reviews and manages these risks associated with the funded plan. Each
year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes asset -
liability matching strategy and investment risk management policy (which includes contributing to plans
that invest in risk averse markets).

(ii) Asset volatility

All plan assets are maintained in a trust fund managed by a public sector insurer i.e., LIC of India. LIC has
a sovereign guarantee and has been providing consistent and competitive returns over the years. The
Company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets.
The Company has no control over the management of funds but this option provides a high level of safety
for the total corpus. A single account is maintained for both the investment and claim settlement and
hence, 100% liquidity is ensured.

(iii) Discount rate risk

The present value of the defined benefit obligation is calculated using discount rate based on Government
bonds. The decrease in the bond yield will increase the defined benefit obligation, however the same will
be partially offset by an increase in value of plan assets.

(iv) Future salary escalation risk

The present value of the defined benefit obligation is calculated by reference to the future salaries of plan
participants. As such, an increase in salary of the plan participants will increase the defined benefit
obligation.

33 Segment reporting

As per Ind AS 108 Operating Segments, when a financial report contains both consolidated financial statements
and separate financial statements for the parent, segment information needs to be presented only in case of
consolidated financial statements. Accordingly, segment information has been provided only in the consolidated
financial statements.

34 Fair value measurements

Except derivative instruments, all financial assets and financial liabilities are measured at amortised cost.
Derivative instruments are classified as fair value through profit or loss. The fair value is determined using
forward exchange rates at the balance sheet date. The instruments fall under level 2 of the fair value hierarchy as
per Ind AS 113 Fair Value Measurements. Level 2 fair value financial instruments are those which are not traded
in an active market, which maximise the use of observable market data and rely as little as possible on entity
specific estimates. Significant inputs required to measure a level 2 fair value are observable. The fair value of all
the instruments measured at amortised cost is not significantly different from the carrying value of such
instruments.

35 Financial risk management

The Company's activities exposes it to credit risk, liquidity risk and market risk. In order to minimise any adverse
effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange
forward contracts are taken. This note explains the sources of risk which the entity is exposed to and how the
entity manages the risk.

The Company's risk management is carried out by the Company's treasury department under policies approved
by the board of directors. The board provides written principles for overall risk management, as well as policies
covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial
instruments and non-derivative financial instruments, and investment of excess liquidity.

(A) Credit risk

The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including deposits with banks and other financial instruments. For banks and other financial
institutions, only high rated banks/ financial institutions are accepted. The balances with banks, loans given to
employees, security deposits are subject to low credit risk and the risk of default is negligible or nil. The
Company has recognized provision based on assumptions about risk of default, expected loss rates and specific
identification method.

I Trade receivables

Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed.
To manage this, the Company periodically assesses the financial reliability of customers, taking into account the
financial condition, current economic trends, analysis of historical bad debts, ageing of accounts receivable and
forward looking information. Individual credit limits are set accordingly. The Company has recognized the
provision based on assumptions about risk of default, expected loss rates based on payment profile and historic
credit losses experienced.

(B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations when due
and to close out market positions. Due to the dynamic nature of the underlying business, the Company's treasury
maintains flexibility in funding by maintaining availability under committed credit lines.

The table below analyses the Company's financial liabilities into relevant maturity groupings based on their
contractual maturities.

Maturity profile of financial liabilities based on undiscounted cash flows:

36 Capital management

a) Risk management

The Company's objectives when managing capital are to safeguard their ability to continue as a going
concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders,
and maintain an optimal capital structure to reduce the cost of capital. For the purpose of the Company's
capital management, capital includes issued equity capital and all other equity reserves attributable to the
equity holders of the parent. The primary objective of the Company's capital management is to maximise
the shareholders value. The Company manages its capital structure and makes adjustments in light of
changes in economic conditions. The Company is debt-free and has net cash and bank balance as at years
ended December 31,2024 and December 31, 2023.

No changes were made in the objectives, policies or processes for managing capital during the years ended
December 31,2024 and December 31, 2023.

37 With effect from August 5, 2022, the Ministry of Corporate Affairs (MCA) has amended the Companies
(Accounts) Rules, 2014 as per which backup of books of accounts and other books and papers maintained in
electronic mode is required to be kept on servers physically located in India on a daily basis. The Company has a
process in place to take backup on a daily basis. During the year ended December 31, 2024, the Company has
taken the backup of its ERP system used for maintaining books of accounts. However, due to a technical issue,
daily backup of certain working files and papers maintained in electronic mode has not been maintained on
certain occasions on servers physically located in India.

38 The Company has complied with the requirements of The Companies (Accounts) Rules, 2014 with respect to the
usage of accounting software with a feature of recording audit trail except for matters listed below

a) Feature of recording audit trail (edit log) facility has operated throughout the year for all transactions in
respect of the core accounting software (SAP) which the company has used for maintaining its books of
accounts, except that the due to certain inherent and other technical challenges, audit trail is not maintained
for certain records and changes made.

b) Further, from the purpose of payroll processing the Company uses software of third-party service provider
for certain records. Due to certain inherent and other technical challenges, the audit trail feature was not
enabled at the database level to log any direct data changes.

(c) Borrowing secured against current assets

The Company has placed fixed deposits of INR 500.96 million (December 31, 2023: INR 988.44 million)
under lien with banks and has availed the overdraft facilities against the same. Thus, the Company is not
required to file quarterly returns or statement of current assets with the banks.

(d) Wilful defaulter

The company has not been declared wilful defaulter by any bank or financial institution or government or
any government authority.

(e) Relationship with struck off companies

Below are the details of transactions with the companies struck off under Companies Act, 2013 or
Companies Act, 1956.

(f) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(g) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact in the year
ended December 31,2024 and December 31, 2023.

(h) Utilisation of borrowed funds and share premium

The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or
any other sources or kind of funds) to any other person or entity, including foreign entity (Intermediary)
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

The Company has not received any funds from any person or entity, including foreign entity (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

(i) Undisclosed income

There is no income surrendered or disclosed as income during the year ended December 31, 2024 and
December 31, 2023 in the tax assessments under the Income Tax Act, 1961, that has not been recorded in
the books of account.

(j) Details of cryptocurrency or virtual currency

The Company has not traded or invested in cryptocurrency or virtual currency during the year ended
December 31,2024 and December 31, 2023.

(k) Valuation of Property, plant and equipment, Right-of-use assets and Other intangible assets

The Company has not revalued its property, plant and equipment or right-of-use assets or intangible assets
during the year ended December 31,2024 and December 31, 2023.

40 During the year ended December 31, 2023, the Company has filed for renewal application with Income Tax
authorities for Unilateral Advance Pricing Agreement for the period from April 01, 2023 to March 31, 2028 and
is awaiting the approval. The initial application for Unilateral Advance Pricing Agreement for the period from
April 01, 2018 to March 31, 2023 was filed in the year ended December 31, 2018 and the same is under approval
with the Income Tax authorities.

41 Events occurring after the reporting period

Refer to note 36 (b) (ii) for the final dividend recommended by the directors which is subject to the approval of
shareholders in the ensuing general meeting.

In terms of our report of even date

For Price Waterhouse Chartered Accountants LLP For and on behalf of the Board of Directors

Firm Registration Number: 012754N/N500016

Vivian Pillai Gaurav Swarup Ulhas Yargop

Partner Chairman Director

Membership No.: 127791 (DIN : 00374298) (DIN : 00054530)

Rajeev Jain Mahesh Bhave

Managing Director Chief Financial Officer

(DIN :07475640)

Place : Mumbai Place : Mumbai Shraddha Kavathekar

Date : February 27, 2025 Date : February 27, 2025 Company Secretary