ii) Rights, preferences and restrictions attached to the equity shares:

The Company has only one class of shares referred to as equity shares having a face value of ? 10 each. Each holder of equity share is eligible for one vote per share held. 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, except in the case of interim dividend. In the event of liquidation, the holders of equity shares will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by the shareholders.

Dues to Micro, Small and Medium Enterprises have been determined to extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

28 Employee Benefits

(a) Defined Contribution Plans

The Company makes Provident fund and Employees’ State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. The Company recognised ?8.51 lakhs (Year ended March 31, 2024: ?7.01lakhs) for provident fund contributions, and ?2.58 lakhs (Year ended March 31, 2024: ?2.78 lakhs) towards Employees’ State Insurance Scheme contributions in the Statement of Profit and Loss.

(b) Defined Benefit Plans

The Company provides to the eligible employees defined benefit plans in the form of gratuity. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days’ salary payable for each completed year of service. Vesting occurs upon completion of five continuous years of service. The measurement date used for determining retirement benefits for gratuity is March 31.

These plans typically expose the Company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Interest rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. Increase in salaries due to adverse inflationary pressures might lead to higher liabilities.

The estimates of future salary increase, considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

Demographic assumptions Mortality in Service: Indian Assured Lives Mortality (2012-14) table.

29 Segment Reporting

The Company publishes Standalone Financial Statements and the company has only one operating segment hence the segment wise disclosers are not required as per Ind AS 108.. Accordingly, the segment information is not given in the Financial Statements of M/s Divyashakti Limited for the year ended March 31, 2025.

Geographical information

The Company operates in India and makes sales to customers situated outside India. The revenue from external customers by location of customers is detailed below. All the noncurrent assets of the Group are situated within India.

32 Financial Instruments and Related Disclosures A. Capital Management

The Company's financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met through internal accruals and long-term/short-term borrowings. The Company aims at maintaining a strong capital base largely towards supporting the future growth of its businesses as a going concern. The capital structure of the Company is based on Management’s judgment of its strategic day-to-day needs with a focus on proper mix of total equity and debt so as to maintain investor, creditors and market confidence.

The Management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary, adjust its capital structure.

For the purpose of capital management, capital includes issued equity capital, securities premium and all other resources. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents. The following table summarises the capital of the Company:

The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company’s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard. The key risks and mitigating actions are overseen by the Board of Directors of the Company.

The Board of Directors of the Company have established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of the financial assets and liabilities. Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis.

The following table details the Company’s remaining contractual maturity for its financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are linked to floating rate, the undiscounted amount is derived from interest rate at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

E. Foreign Currency Risk:

The Company is not exposed to any material foreign currency risk on account of the fact that the major sourcing of raw materials, stores and spares and items of property, plant and equipment is indigenous.

There are no material foreign currency exposures as at March 31, 2025 and March 31, 2024.

F. Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. 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. The Company’s major customers includes Indian Railways. For private customers, the Company evaluates the creditworthiness based on publicly available financial information and the Company’s historical experiences. The Company’s exposure to its counterparties are continuously reviewed and monitored by the Chief Operating Decision Maker (CODM).

The credit risk on cash and bank balances is limited because the counterparties are banks with high credit ratings.

G. Interest rate risk:

The Company is exposed to interest rate risk because the Company borrows funds at both fixed and floating interest rates.

Interest rate sensitivity

The sensitivity analysis below has been determined based on the exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year and using the interest rate applicable at the end of the reporting period. A 50 basis point increase or decrease is used for the purpose of sensitivity analysis.

• In case of trade receivables, cash and cash equivalents, trade payables, other financial assets and liabilities it is assessed that the fair values approximate their carrying amounts largely due to their short-term nature.

• The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

• There were no transfers between Level 1 and Level 2 during the year.

33 As per the proviso to Rule 3(1) of Companies (Accounts) Rules, 2014, for the financial year commencing on or after the 1st day of April 2024, every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company used accounting software for recording all the accounting transactions viz., sales, purchases, production/costing, fixed assets, other expenses, cash and bank transactions, journal entries and all other general ledger accounting transactions for the year ended March 31, 2024. Such accounting software has a feature of recording audit trail (edit log) facility.

The Management has adequate general information technology controls including access controls, change management controls, and manual controls which are operating, to prevent inappropriate/unauthorized changes to the accounting software(s). The Management will work towards enabling edit logs in the aforesaid software(s) in the near future.

34. As per the provisions of Section 135 of the Companies Act, 2013, the Company is required to comply with the CSR provisions if certain eligibility criteria, such as net profit, are met. However, for the financial year 2024-25, the Company has not met the criteria stipulated under Section 135(1) of the Companies Act, 2013, and therefore, the CSR provisions are not applicable during the financial year 2024-25. Despite this, the Company has voluntarily undertaken certain CSR initiatives during the year, and spent ^25,000 on palliative care services to people with serious health related suffering.

35. Other Statutory Information

(i) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) The Company has no transactions or balances with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(iii) No Schemes of Arrangements have been applied or approved by the Competent Authority in terms of Section 230 to 237 of the Companies Act, 2013.

(iv) 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

(v) 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 Group (Ultimate Beneficiaries) or

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

(vi) There are no charges or satisfaction yet to be registered with the Registrar of Companies beyond the statutory period.

(vii) The Company has complied with the number of layers prescribed under the Companies Act, 2013, read with the Companies (Restriction on number of layers) Rules, 2017

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

(ix) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

36. These financial statements are approved for issue by the Board of Directors at its meeting held on May 29, 2025.