12. PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognized when there is a present obligation as a result of past events and it is probable that an outflow of
resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed
at each Balance Sheet date and adjusted to reflect the current best estimate.

A present obligation that arises from past events whether 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, is disclosed as a contingent liability. Contingent
Liabilities are also 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.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed
as contingent liabilities. Contingent liabilities are not recognized but are disclosed and contingent assets are neither
recognized nor disclosed, in the financial statements. The company has taken various Bank Guarantees required to be
submitted to Custom authorities towards import and export of goods as well as collateral security for availing facilities
from Banks against which company has lien various term deposits with the banks.

13. CASH & CASH EQUIVALENTS

Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all highly liquid
investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to
known amounts of cash to be cash equivalents.

14. SEGMENT REPORTING

The Company is operating under a single segment of manufacturing of lithium batteries.

15. OTHERS

Related party transactions are reported as per AS-18 of Companies (Accounting Standards) Rules, 2006, as amended, in
the Note 31 of the enclosed financial statements.

Figures have been rearranged and regrouped wherever practicable and considered necessary.

The management has confirmed that adequate provisions have been made for all the known and determined liabilities
and the same is not in excess of the amounts reasonably required to be provided for.

The balances of trade payables, trade receivables, loans and advances are unsecured and considered as good.

Realizations - In the opinion of the Board and to the best of its knowledge and belief, the value on realization of current
assets and loans and advances are approximately of the same value as stated.

Contractual liabilities - All other Contractual liabilities connected with business operations of the company have been
appropriately provided for.

Amounts in the financial statements - Amounts in the financial statements are rounded off to nearest Indian Rupees in
lakhs. Figures in brackets indicate negative values.

During the year, the Company has completed its Initial Public Offering (IPO) comprising a fresh issue of equity shares and an offer for
sale by existing shareholders.

The Company has utilized the Securities Premium Account in accordance with the provisions of Section 52 of the Companies Act,
2013. Accordingly, expenses directly attributable to the fresh issue of shares, including listing fees, underwriting commission, issue
management fees, legal and professional fees, printing and advertisement costs, Registrar expenses and other incidental expenses
aggregating to Rs. 599.86 lakhs have been adjusted against the securities premium.

It is clarified that expenses relating to the Offer for Sale (OFS) portion of the IPO, which are attributable to the selling shareholders,
have not been debited to the Securities Premium Account and have been borne by the respective selling shareholders, or adjusted
accordingly in line with the terms of the offer.

The company has not held any benami property during the year ended 31.03.2024 or year ended 31.03.2025.

There is no proceedings have been initiated or pending against the company for holding any benami property under the Benami
Transaction (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

Note 34 (e) Title deeds of Immovable Property not held in name of the Company

The title deed of Immovable property held is in the name of the Company.

Note 34 (f) Compliance with number of layers of companies :

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

Note 34 (g) Compliance with approved Scheme(s) of Arrangements

Company has not prepared any scheme of Arrangements in terms of sections 230 to 237 of the Companies Act, 2013.

Note: 35 Utilisation of borrowed funds and Share Premium

a) During the year, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (" Intermediaries"), with
the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

b) During the year, no funds have been received by the Company from any persons or entities, including foreign entities (" Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Where the Company has borrowings from banks or financial institutions on the basis of current assets

The company has taken the cash credit facility to the tune of Rs. 499 Lacs on the basis of Stock and Book- debts and other collateral
securities for which all required monthly/quarterly returns were filed by the company with the Bank

Note 36: OTHER DISCLOSURES

1. In the opinion of the management, the current assets, loans & advances are approx. of the same value as stated, if realised in
the ordinary course of business.

2. Trade Payables, Trade Receivables and Loans & Advances are subject to confirmation and reconciliation, if any.

3. Provisions for all known liabilities are adequate and not in excess of amount reasonably necessary

4. Previous years' figures have been regrouped / rearranged wherever found necessary.

5. The company does not have any wilful defaulter as at the Balance Sheet date.

6. The company does not have any relationship with Struck off Companies as at the Balance Sheet Date.

7. The company does not have any pending registration of charges or satisfaction with Registrar of Companies as at the Balance
Sheet date.

8. The company has not traded or invested in Crypto Currency or Virtual currency during the financial year.

9. There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax
assessments under the Income Tax Act, 1961 (43 of 1961) during the year.

Signature to Note No. 1 to 36 forming part of the Balance Sheet and Statement of Profit & Loss.

As per our report of even date attached

For A Kasliwal & Company For and on behalf of Board of Directors of

Chartered Accountants ATC Energies System Limited

FRN No.:- 011727C

Ambar Kasliwal Sandeep Gangabishan Bajoria Piyush Vijaykumar Kedia

Proprietor Director Director & CFO

Membership No. 402210 DIN No. 06597817 DIN No. 00635105

UDIN: 25402210BMMMNL7743

Kiran Honnaya Shettigar

Place : Mumbai Company Secretary

Date : 28th May, 2025 Membership No. ACS68131