s. Provisions and Contingent liability
Provisions
General

Provisions are recognised when the Company has
a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow
of resources embodying economic benefits will be
required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. When the Company expects some or
all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement
is recognised as a separate asset, but only when
the reimbursement is virtually certain. The expense
relating to a provision is presented in the statement
of profit and loss net of any reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognised as a finance cost.

Contingent Liability

Contingent liability is:

(a) a possible obligation arising from past events
and whose existence will be confirmed only
by the occurrence or non-occurrence of one
or more uncertain future events not wholly
within the control of the entity or

(b) a present obligation that arises from past
events but is not recognized because;

- it is not probable that an outflow of
resources embodying economic benefits
will be required to settle the obligation,
or

- the amount of the obligation cannot be
measured with sufficient reliability

The Company does not recognize a contingent
liability but discloses its existence and other
required disclosures in notes to the financial
statements, unless the possibility of any outflow
in settlement is remote.

t. Segment Reporting

The Executive Management Committee is the Chief
Operating Decision Maker (CODM) and monitors
the operating results of its business units separately
for the purpose of making decisions about resource
allocation and performance assessment. Segment
performance is evaluated based on profit or loss
and is measured consistently with profit or loss in
the standalone financial statements. The
Company's loan given to subsidiaries and
Investment made, interest receivables, finance
income and income taxes, deferred tax are
managed on a Company basis and are not
allocated to operating segments.

Transfer prices between operating segments are
on an arm's length basis in a manner similar to
transactions with third parties. Also refer note 2.3
for change in accounting policies.

u. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short¬
term deposits with an original maturity of three
months or less, which are subject to an insignificant
risk of changes in value.

For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash and
short-term deposits, as defined above as they are
considered an integral part of the Company's cash
management.

v. Earnings per share

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

Diluted earnings per share when applicable are
calculated by dividing the net profit or loss (after
tax) for the year attributable to equity shareholders
by the weighted average number of equity shares

which would be issued on the conversion of all the
dilutive potential equity shares into equity shares.
Dilutive potential equity shares when applicable
are deemed converted as of the beginning of the
period, unless they have been issued at a later date.

w. Share Based Payments

Employees (including senior executives) of the
Company and its one subsidiary, receive
remuneration in the form of share-based
payments, whereby employees render services as
consideration for equity instruments (equity-
settled transactions).

Equity-settled transactions

The cost of equity-settled transactions is
determined by the fair value at the date when the
grant is made using an appropriate valuation
model. Further details are given in Note 42.

That cost is recognised, together with a
corresponding increase in share-based payment
(SBP) reserves in equity, over the period in which
the performance and/or service conditions are
fulfilled in employee benefits expense. The
cumulative expense recognised for equity-settled
transactions at each reporting date until the vesting
date reflects the extent to which the vesting period
has expired and the Group's best estimate of the
number of equity instruments that will ultimately
vest. The expense or credit in the statement of
profit and loss for a period represents the
movement in cumulative expense recognised as
at the beginning and end of that period and is
recognised in employee benefits expense.

With respect to ESOP granted to employee of
subsidiary Company, the same has been treated
as deemed investment in the financial statements
of the Company and equity contribution in the
financial statements of subsidiary company.

Service and non-market performance conditions
are not taken into account when determining the
grant date fair value of awards, but the likelihood
of the conditions being met is assessed as part of
the Group's best estimate of the number of equity
instruments that will ultimately vest. Market
performance conditions are reflected within the
grant date fair value. Any other conditions attached
to an award, but without an associated service
requirement, are considered to be non-vesting
conditions. Non-vesting conditions are reflected

in the fair value of an award and lead to an
immediate expensing of an award unless there are
also service and/or performance conditions.

No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met.
Where awards include a market or non-vesting
condition, the transactions are treated as vested
irrespective of whether the market or non-vesting
condition is satisfied, provided that all other
performance and/or service conditions are
satisfied.

When the terms of an equity-settled award are
modified, the minimum expense recognised is the
grant date fair value of the unmodified award,
provided the original vesting terms of the award
are met. An additional expense, measured as at
the date of modification, is recognised for any
modification that increases the total fair value of
the share-based payment transaction, or is
otherwise beneficial to the employee. Where an
award is cancelled by the entity or by the
counterparty, any remaining element of the fair
value of the award is expensed immediately
through profit or loss.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

x Climate - related matters

The Company considers climate-related matters in
estimates and assumptions, where appropriate.
This assessment includes a wide range of possible
impacts on the Company due to both physical and
transition risks. Even though the Company believes
its business model and products will still be viable
after the transition to a low-carbon economy,
climate-related matters increase the uncertainty in
estimates and assumptions underpinning several
items in the financial statements. Even though
climate-related risks might not currently have a
significant impact on measurement, the Company
is closely monitoring relevant changes and
developments, such as new climate-related
legislation.

2.1 New and amended Standard adopted by the

Company

The Company applied for the first-time certain

standards and amendments, which are effective for

annual periods beginning on or after 1 April 2024. The
Company has not early adopted any standard,
interpretation or amendment that has been issued but
is not yet effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified
the Ind AS 117, Insurance Contracts, vide
notification dated 12 August 2024, under the
Companies (Indian Accounting Standards)
Amendment Rules, 2024, which is effective from
annual reporting periods beginning on or after 1
April 2024.

Ind AS 117 Insurance Contracts is a comprehensive
new accounting standard for insurance contracts
covering recognition and measurement,
presentation and disclosure. Ind AS 117 replaces
Ind AS 104 Insurance Contracts. Ind AS 117 applies
to all types of insurance contracts, regardless of
the type of entities that issue them as well as to
certain guarantees and financial instruments with
discretionary participation features; a few scope
exceptions will apply. Ind AS 117 is based on a
general model, supplemented by:

• A specific adaptation for contracts with direct
participation features (the variable fee
approach)

• A simplified approach (the premium allocation
approach) mainly for short-duration contracts

The application of Ind AS 117 does not have
material impact on the Company's separate
financial statements as the Company has not
entered any contracts in the nature of insurance
contracts covered under Ind AS 117.

(ii) Amendments to Ind AS 116 Leases - Lease
Liability in a Sale and Leaseback

The MCA notified the Companies (Indian
Accounting Standards) Second Amendment Rules,
2024, which amend Ind AS 116, Leases, with respect
to Lease Liability in a Sale and Leaseback.

The amendment specifies the requirements that a
seller-lessee uses in measuring the lease liability
arising in a sale and leaseback transaction, to
ensure the seller-lessee does not recognise any
amount of the gain or loss that relates to the right
of use it retains.

The amendment is effective for annual reporting
periods beginning on or after 1 April 2024 and must

be applied retrospectively to sale and leaseback
transactions entered into after the date of initial
application of Ind AS 116.

The amendments do not have a material impact
on the Company's separate financial statements.

2.2 Standards issued but not yet effective

The new and amended standards and interpretations
that are issued, but not yet effective, up to the date of
issuance of the Company's standalone financial
statements are disclosed below. The Company will
adopt this new and amended standard, when it become
effective:

Lack of exchangeability - Amendments to Ind AS
21

The Ministry of Corporate Affairs notified amendments
to Ind AS 21 The Effects of Changes in Foreign Exchange
Rates to specify how an entity should assess whether a
currency is exchangeable and how it should determine
a spot exchange rate when exchangeability is lacking.
The amendments also require disclosure of information
that enables users of its financial statements to
understand how the currency not being exchangeable
into the other currency affects, or is expected to affect,
the entity's financial performance, financial position and
cash flows.

The amendments are effective for annual reporting
periods beginning on or after 1 April 2025. When
applying the amendments, an entity cannot restate
comparative information.

The amendments are not expected to have a material
impact on the Company's financial statements.

2.3 Changes in accounting policies and disclosures

During the year, the Company has reassessed
presentation of outstanding employee salaries and
wages, which were previously presented under 'Trade

Payables' within 'Current Financial Liabilities'. In line the
recent opinion issued by the Expert Advisory
Committee (EAC) of the Institute of Chartered
Accountants of India (ICAI) on the "Classification and
Presentation of Accrued Wages and Salaries to
Employees", the Company has concluded that
presenting such amounts under 'Other Financial
Liabilities', within 'Current Financial Liabilities', results
in improved presentation and better reflects the nature
of these obligations. Accordingly, amounts aggregating
to INR 585.52 lacs as at March 31, 2025 (INR 426.95
lacs as at March 31, 2024), previously classified under
'Trade Payables', have been reclassified under the head
'Other Financial Liabilities'. Both line items form part
of the main heading 'Financial Liabilities.

In addition, the Company has reviewed its presentation
of segment information in line with the IFRS
Interpretations Committee's Agenda Decision titled
"Operating Segments - Disclosure of Revenues and
Expenses for Reportable Segments". Based on this
guidance, the Company has enhanced its segment
disclosures to include segment-wise break-up of
specified and material income and expense items. To
ensure consistency and comparability, the
corresponding figures for the year ended March
31,2024 have also been revised.

The above changes do not impact recognition and
measurement of items in the financial statements, and,
consequentially, there is no impact on total equity and/
or profit (loss) for the current or any of the earlier
periods. Nor there is any material impact on
presentation of cash flow statement. Considering the
nature of changes, the management believes that they
do not have any material impact on the balance sheet
at the beginning of the comparative period and,
therefore, there is no need for separate presentation
of third balance sheet. For details refer to Note 18 and
33.

Notes:

i) On transition to Ind AS (i.e. 1 April 2016), the Company has elected to continue with the carrying value of all property,
plant and equipment measured as per previous GAAP and use that carrying value as the deemed cost of property,
plant and equipment.

ii) Capital work-in-progress

Capital work-in progress is comprised of expenditure on buildings under construction in respect of factory buildings
and capital expenditure on plant and machinery.

iii) Property plant and equipment pledged as security

Refer note 11 (A) and 11 (B) for information on property, plant and equipment pledged as security for borrowings by
the Company.

iv) Contractual obligations

Refer note 32(A) for disclosure of contractual commitments for the acquisition of property, plant and equipment.

v) Capitalised borrowing cost

Borrowing cost capitalised in case of Property, plant and equipment under construction for the year ended 31 March
2025 of Rs 369.23 lacs (31 March 2024: Rs 205.66 lacs). The rate used to determine the amount of borrowing costs
eligible for capitalisation was 9.65 % (31 March 2024: 9.50%) which is the effective interest rate of the specific borrowing.

vi) Assets held in the name of the Company

The title deeds of all immovable properties (i.e. land and building) are held in the name of the Company as at 31
March 2025 and 31 March 2024.

Note:

Derivative instruments at fair value through profit or loss reflect the positive change in fair value of those foreign
exchange forward contracts that are not designated in hedge relationships, but are, nevertheless, intended to reduce
the level of foreign currency risk for expected sales and purchases.

# Expense recoverable from shareholder of Rs Nil ( March 31, 2024: Rs 192.68 lakhs ) incurred by the Company is
towards proposed Initial Public Offering (IPO) of the equity shares held by the selling shareholder. As per the offer
agreement with the selling shareholders, these expenses are recoverable in proportion to the shares that are expected
to be offered to the public in the offering.

Nature and purpose of reserves:

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited
purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if
a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the
total dividend distribution is less than the total distributable results for that year. Consequent to introduction of
Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general
reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only
in accordance with the specific requirements of Companies Act, 2013.

Capital redemption reserve

The Capital redemption reserve has been created in accordance with provision of the Companies Act, 2013 with
respect to buy back of equity shares from the market during the previous year.

Retained earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general
reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss /
(gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

Employee stock option outstanding reserve

Employee stock option outstanding reserve is used to record the fair value of equity-settled share based payment
transactions with employees.

i) Security clauses

a) Term loan of Rs. 7,562.53 lacs (31 March 2024: INR 7,383.07 lacs) is secured by way of i) first pari-passu
charge on the fixed assets of the Piping Unit of the Company at Palwal & Numaligarh Unit ii) Pari-passu
charge with other Term Lender for the Gujarat (Fabrication) Unit on the project asset funded out of Term
Loan by way of hypothecation on entire plant and machineries and MFA iii) Pari-passu charge by way of
Equitable Mortgage of factory land and building at the fabrication plant in gujarat measuring 9 Acres situated
at REVENUE Survey No. 28 P/1, Village - Lakhapar, State Highway Satapar Lakhapar Road, Taluka Anjaar, Dist
Kutch, Gujarat, with other Term Lender. iv) Equitable charge on the fixed deposit of Rs. 431 lacs with other
Term Lender of the new unit.

b) Further, term loan are secured by Irrevocable and unconditional, joint and several personal guarantee of the
promoters and corporate guarantee of DDE Piping Components Private Limited.

c) Vehicle loan

Term loan of INR 267.38 lacs (31 March 2024: INR 293.10 lacs) is secured by way of charges on vehicle owned
by the Company against which such loan is obtained.

ii) Loan Covenants:

Term loan contain certain debt covenants relating to security cover, debt-equity ratio the Company has satisfied
all debt covenants prescribed in the terms of term loan.

iii) The Company has not defaulted on any loans payable.

iv) All term loans availed by the Company have been utilised for the purpose for which they have been obtained.

Notes:

i) Security clauses

a) The rate of interest for loan taken from banks is ranging from 3.36 % p.a. to 11.75% p.a. (31 March, 2024 -
4.36 % p.a. to 12.15% p.a.)

b) The rate of interest for loan taken from Non Banking Financial Company is ranging from 11.75 % p.a. to
15.00% p.a ( 31 March 2024: 11.75 % p.a. to 15.00% p.a.).

c) Cash credit facilities, Working Capital Demand Loan, Buyer credit and Export Packing Credit of INR 26,352.84
lacs (31 March 2024: INR 27,878.29 lacs) is secured by way of i) second pari-passu charge on the fixed assets
and first pari-passu charge on current assets of the Piping Unit of the Company ii) exclusive charges on the
current assets of the 8 MW power plant, of the Company ii) first pari-passu charge on the property situated
at Jatola Road, Tatarpur Industrial Area Maidapur, Tehsil & Distt. Palwal measuring 1,770.00 sq. Yards iii) first
pari-passu charge on the basis of equitable mortgage over residential house situated at 1255, sector 14
Faridabad, ownership in the name of Mr. Krishan Lalit Bansal [(Chairman and Managing Director) (area 500
Sq yards) iv) first pari-passu charges basis on net block of the 8 MW power unit at Gaddadhob, Tehsil -
Abohar, Distt - Firozpur, Punjab v) first pari-passu charge on the property situated at Unit 11 and Unit 12,
First Floor, Block No: II SIDCO Electronic Complex, Thiru VI Ka Industrial Estate, Gundy, Chennai, measuring
2,053 sq. ft. in the name of the Company. vi) first pari-passu charge on the fixed deposit of INR 350 lacs v)
Exclusive charge over FDR of Rs. 15 lacs in favor of Bank of India

d) Further, Cash credit, WCDL and Buyer Credit are secured by Irrevocable and unconditional, joint and several
personal guarantee of the promoters and corporate guarantee of DDE Piping Components Private Limited.

e) Unsecured and non-interest bearing loan from director.

Terms and conditions of the above financial liabilities:

- Trade payables are non-interest bearing and are normally settled on 0 to 75 days terms including those trade
payables that are included in the Company's supplier finance arrangement.

- For terms and conditions relating to related party payables, refer to note 31(E ).

- For explanations on the Company's credit risk management processes, refer to note 36.

The Company has established a supplier finance arrangement that is offered to some of the Company's key suppliers
in India. Participation in the arrangement is at the suppliers' own discretion. Suppliers that participate in the supplier
finance arrangement will receive early payment on invoices sent to the Company from the Company's external
finance provider. If suppliers choose to receive early payment, they pay a fee to the finance provider, to which the
Company is not party. In order for the finance provider to pay the invoices, the goods must have been received or
supplied and the invoices approved by the Company. Payments to suppliers ahead of the invoice due date are
processed by the finance provider and, in all cases, the Company settles the original invoice by paying the finance
provider in line with the original invoice maturity date described above. Payment terms with suppliers have not been
renegotiated in conjunction with the arrangement. The Company provides no security to the finance provider and
there is no change in the Company's original obligation towards the supplier.

Accordingly, the trade payables subject to the supplier finance arrangement are included in trade payables in the
balance sheet.

^A Acceptances includes transactions where Company bank issues a letter of credit guaranteeing payment to seller's
bank. Seller ships goods, presents documents complying with LC terms to receive payment from buyer's bank, ensuring
secure domestic / international transactions on due date. while the Company records the liability until settling with
the bank usually within 90 days. Also includes arrangements where suppliers of goods and services are initially paid
by the banks, while Company continues to recognize the liability till settlement with the banks, which are normally
effected within a period of 89 days to 120 days.

Performance obligation

Information about the Company's performance obligations for material contracts are summarised below:

The performance obligation of the Company in case of sale of products and job work is satisfied once the goods are
transported as per terms of order and control is transferred to the customers.

The customer makes the payment for contracted price as per terms stipulated under customers purchase order.

Information about the Company's performance obligations for electricity supply contract are summarised
below:

The performance obligation of the Company in case of sale of electricity is based on supply of electricity through
installed meters. Revenue from sales of electricity is accounted for on the basis of billing to customer based on billing
cycles followed by the Company.

The customer makes the payment for electricity supplied during the billing cycle at contracted price as per terms
stipulated under agreement.

Information about the Company's performance obligations for erection and design services contracts are
summarised below:

The performance obligation is satisfied over-time and payment is generally due upon completion of erection and

result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future
periods.

Other disclosures relating to the Company's exposure to risks and uncertainties includes:

• Capital management Note 37

• Financial risk management objectives and policies Note 36

• Sensitivity analyses disclosures Notes 36

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 recognised in the Standalone financial statements.

Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered
by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to
terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies
judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate
the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the
renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant
event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the
option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation
to the right-of-use assets).

The Company included the renewal period as part of the lease term for leases of land with shorter non-cancellable
period (i.e., three to five years). The Company typically exercises its option to renew for these leases because there
will be a significant negative effect on production if factory land is not readily available.

Refer to Note 38 for information on potential future rental payments of leases.

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.

Valuation of Investment in subsidiaries

Investments in subsidiaries are carried at cost. At each balance sheet date, the management assesses the indicators
of impairment of such investments. This requires assessment of several external and internal factor including
capitalisation rate, key assumption used in discounted cash flow models (such as revenue growth, unit price and
discount rates) or sales comparison method which may affect the carrying value of investments in subsidiaries.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which
is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation
is based on available data from binding sales transactions, conducted at arm's length, for similar assets or observable
market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.
The cash flows are derived from the budget for the next five years and do not include restructuring activities that the
Company is not yet committed to or significant future investments that will enhance the asset's performance of the
CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the
expected future cash-inflows and the growth rate used for extrapolation purposes.

Taxes

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which
the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax

assets that can be recognised, based upon the likely timing and the level of future taxable profits together with
future tax planning strategies.

Defined benefit plans (gratuity)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using
actuarial valuations. 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 and mortality
rates. 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 each reporting date.

The calculation is most sensitive to changes in the discount rate. In determining the appropriate discount rate for
plans operated in India, the management considers the interest rates of government bonds where remaining maturity
of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables. 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.

Further details about gratuity obligations are given in Note 30.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured
based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF
model. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as
liquidity risk, credit risk and volatility.

Changes in assumptions about these factors could affect the reported fair value of financial instruments. Refer note
34 for further disclosures.

Useful Lives of Property Plant and Equipment

The Company reviews the estimated residual values and expected useful lives of assets at least annually. In particular,
the Company considers the impact of health, safety and environmental legislation in its assessment of expected
useful lives and estimated residual values. Refer note (2(h)) in accounting policies.

Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation
model, which depends on the terms and conditions of the grant. This estimate also requires determination of the
most appropriate inputs to the valuation model including the expected life of the share option or appreciation right,
volatility and dividend yield and making assumptions about them. For the measurement of the fair value of equity-
settled transactions with employees at the grant date, the Company uses Black-Scholes Model for share Option Plan
given to employees. The assumptions and models used for estimating fair value for share-based payment transactions
are disclosed in Note 42.

Provision for expected credit losses of trade receivables

The Company uses a provision matrix to calculate ECLs for trade receivables. The provision rates are based on days
past due for companyings of various customer segments that have similar loss patterns (i.e., by geography, product
type, customer type and rating, and coverage by letters of credit and other forms of credit insurance).

The provision matrix is initially based on the Company's historical observed default rates. The Company will calibrate
the matrix to adjust the historical credit loss experience with forward-looking information. For instance, if forecast
economic conditions (i.e., gross domestic product) are expected to deteriorate over the next year which can lead to
an increased number of defaults in the manufacturing sector, the historical default rates are adjusted. At every
reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are
analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs
is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic
conditions. The Company's historical credit loss experience and forecast of economic conditions may also not be
representative of customer's actual default in the future. The information about the ECLs on the Company's trade
receivables is disclosed in Note 6(A).

30 Gratuity and other post-employment benefit plans
A. Defined benefit plans - general description

The Company has a defined benefit gratuity plan (funded). The Company's defined benefit gratuity plan is a final
salary plan for employees, which requires contributions to be made to a separately administered fund.

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five
years of service is entitled to specific benefit. The level of benefits provided depends on the member's length of
service and salary at retirement age. The scheme is funded through a trust and funds are managed by Life Insurance
Corporation of India

Each year, the executive management commitee of Company reviews the level of funding in the gratuity plan in
accordance with planned contribution of as per LIC. Such a review includes the asset-liability matching strategy and
investment risk management policy. This includes employing the use of annuities to manage the risks.

The following tables summaries the components of net benefit expense recognised in the Statement of Profit and
Loss and the funded status and amounts recognised in the balance sheet for the plan (based on actuarial valuation):

(E) Terms and conditions of transactions with related parties

i) Sales to related parties and concerned balances:

For terms of transaction

Sales are made to related parties on the same terms as applicable to third parties in an arm's length transaction
and in the ordinary course of business. The Company mutually negotiates and agrees sales price, discount and
payment terms with the related parties by benchmarking the same to transactions with non-related parties, who
purchase goods and services of the Company in similar quantities. Such sales generally include payment terms
requiring related party to make payment within 30 to 180 days from the date of invoice.

For terms of balance

(ii) Trade receivables outstanding balances are unsecured, interest free and require settlement in cash. No
guarantee or other security has been received against these receivables. The amounts are recoverable within 30
to 180 days from the reporting date (31 March 2024: 30 to 180 days from the reporting date). For the year ended
31 March 2025, the Company has not recorded any impairment on receivables due from related parties (31
March 2024: Nil)

ii) Purchases of goods and related balances
For terms of transaction

Purchases are made from related parties on the same terms as applicable to third parties in an arm's length

transaction and in the ordinary course of business. The Company mutually negotiates and agrees purchase price
and payment terms with the related parties by benchmarking the same to sale transactions with non-related
parties entered into by the counter-party and similar purchase transactions entered into by the Company with
the other non-related parties. Such purchases generally include payment terms requiring the Company to make
payment within 0 to 75 days from the date of invoice.

For terms of balance

Trade payables outstanding balances are unsecured, interest free and require settlement in cash. No guarantee
or other security has been given against these payables. The amounts are payable within 0 to 75 days from the
reporting date (31 March 2024: 0 to 75 days from the reporting date).

iii) Services received from related parties

a) Job work

The Company has received the Job work services on the same terms as applicable to third parties in an arm's
length transaction and in the ordinary course of business. The Company mutually negotiated and agrees the
price and payment terms with the related parties by benchmarking the same to the services to non-related
parties entered into by the counter-party and similar services received by the Company from other non¬
related parties. The service agreement included payment terms requiring the Company to make payment
within 0 to 75 days from the date of invoice. The amount was fully repaid at the reporting date.

b) Rent

The Company has taken factory building on lease from subsidiary Company on short term basis. At the end
of lease term, the lease agreement is renewable based on mutual negotiation and agreement. For the year
ended 31 March 2025, the Company has not recorded any impairment on lease payments due from the
related party (31 March 2024: Nil).

iv) Items of Property, Plant and Equipment (PPE) purchased from the related party

During the year 2024-25, the Company has purchased items of PPE from DEE Fabricom India Private Limited. The
purchase was made on the same terms as applicable to third parties in an arm's length transaction and in the
ordinary course of business. The Company mutually negotiated and agreed purchase price and payment terms
with DEE Fabricom India Private Limited by benchmarking the same to sale transactions with non-related parties
entered into by the counter-party and similar purchase transactions entered into by the Company with the other
non-related parties. Such purchases generally include payment terms requiring the Company to make payment
within 30 to 60 days from the date of invoice. The amount was fully repaid at the reporting date.

v) Loans given to related parties

The loans granted to subsidiaries was given in the previous years to finance the setup of plant and to support
working capital requirements of these subsidiaries. The loan has been utilized by the subsidiaries for the purpose
it was obtained. The loans are un-secured. For the year ended 31 March 2025, the Company has not recorded
any impairment on loans due from subsidiaries (31 March 2024: Nil).

vi) Guarantees given on behalf of related parties

The Company has given guarantee against loan amounting to INR 3,096.74 lacs obtained by Malwa Power
Private Limited and DEE Fabricom India Private Limited in current year and INR 8,221.69 lacs obtained by DEE
Piping Systems (Thailand) Co. Limited in financial year 2022-23 from bank to finance the working capital
requirements and to set-up the plant. The loan has been utilized by these subsidiaries for the purpose it was
obtained. The loan is first secured against the equipment purchased from the loan. The Guarantee given by the
Company will require it to make specified payments to reimburse the bank for the loss it incurs if subsidiaries
fails to make payment when due in accordance with the original terms of the loan arrangement.

The Company is entitled to recover losses from subsidiaries if it needs to make any payment to bank under the
guarantee arrangement.The Company has not received any commission from subsidiaries for providing the
guarantee. The Company expects that subsidiaries will make payment to the bank when loan is repayable. For
the year ended 31 March 2025, the Company has not recorded any impairment on guarantee arrangement (31
March 2024: Nil).

*The Income Tax Authorities have raised demands on account of disallowances of certain expenditures pertaining
to different assessment years. The Company is contesting these demands, which are pending at various appellate
levels. Based on the advice from independent tax experts and the development on the appeals, the management
is confident that additional tax so demanded with reference to these cases will not be sustained on completion
of the appellate proceedings and accordingly, pending the decision by the appellate authorities, no provision
has been considered in the financial statements. Further, the income tax authorities have issued notices for
initiation of penalty proceedings in respect of various assessment years, which has been appropriately responded
by the Company and there is no further demands raised by the income tax authorities.

**The Excise/ GST Authorities have raised demands on account of non payment of excise duty on certain goods.
The Company is contesting these demands, which are pending at various appellate levels. Based on the advice
from independent experts and the development on the appeals, the management is confident that the demands
raised by Excise/GST Authorities is not tenable and accordingly no provision has been considered in the financial
statements.

^A The Company is of the view that it will be able to fulfil its underlying export obligations amounting to INR
10,033.38 lacs for the year ended March 31,2025. Accordingly, no adjustment is required in the financial statements.

d) The Company is currently involved in a legal dispute with Hyundai Merchant Marine India Private Limited (HMMIPL)
relating to the import of raw materials in earlier years. The Company has raised claims of INR 127.89 lakhs against
HMMIPL and in response, HMMIPL has lodged counterclaims amounting to INR 178.49 lakhs. Currently in ongoing
litigation, the Company is confident in its legal position based on evaluations and advice, and believes that there
will be no outflow of the company's economic resources and accordingly no provision has been considered in
the financial statements.

e) The Company had received a Demand notice from the Commissioner of Customs demanding payment of customs
duty of INR 815.09 lacs and imposed penalty of INR 305.00 lacs. This demand was made due to alleged non¬
compliance with pre-import and physical export conditions related to raw materials imported in previous years.
The Company has evaluated the demand raised by the authorities and company had filled appeal before
honourable CESTAT after paying 7.5% of INR 815.09 lacs under protest. Based on the advice from independent
experts, the management is confident that the demands raised by Custom Authorities is not tenable and the
Company is in the process of filing an appeal before the higher authorities.

f) On May 19, 2023, the Enforcement Directorate issued a notice in accordance with FEMA regulations, requesting
specific information related to the Company's operations and financial transactions. The Company duly furnished
the required information to the relevant authority on August 25, 2023, ensuring compliance with FEMA regulations.

g) The Customs Authorities have issued a demand for antidumping duty regarding imports of seamless carbon
steel pipes in earlier years. The notice requires payment of the necessary antidumping duty amounting to Rs
72.43 lacs. Based on expert advice, the Company has made provision of Rs 47.64 lacs for potential exposure, and
the remaining demanded duty balance of Rs 24.79 lacs is not payable as the goods were imported under an
advance authorization.

C. Guarantees

The Company has given corporate guarantee for loans taken by subsidiary companies, to the extent loan amount
outstanding as on balance sheet date. The carrying amounts of the related financial guarantee contracts were INR
5,220.12 lacs at 31 March 2025 and INR 6,029.22 lacs at 31 March 2024 respectively.

33 Segment reporting
A Basis for segmentation

The Executive Management Committee monitors the operating results of its business units separately for the purpose
of making decisions about resource allocation and performance assessment. Segment performance is evaluated
based on profit or loss and is measured consistently with profit or loss in the standalone financial statements. Operating
segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind
AS 108.

On the basis of nature of businesses and information reviewed by Executive Management Committee, the Company
has determined two reportable segments, as follows:

- The piping segment which is mainly engaged in manufacturing of pre-fabricated engineering products, pipe
fittings, piping systems.

- The power segment, which is engaged in biomass based power generation

No operating segments have been aggregated to form the above reportable operating segments.

Segment revenue and results:

The expenses / income which are not directly attributable to any segment are shown as unallocable expenditure. The
assets/ liabilities which are not directly attributable to any segment are shown as unallocable assets / liabilities'

Segment assets and liabilities:

Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and
equipment, capital work in progress, intangible assets, right of use assets, trade receivables, cash and bank balances,
term deposits, Inventory and other operating assets. Segment liabilities primarily include trade payable, lease liabilities,
borrowings and other liabilities. Common assets and liabilities which can not be allocated to any of the segment are
shown as unallocable assets / liabilities.

Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with
third parties.

Note:¬
* The management assessed that fair value of trade receivables, cash and cash equivalents, term deposits, other
short-term financial assets, short-term borrowings, trade payables and other short-term financial liabilities approximate
their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

a. Foreign exchange forward contracts- The Company enters into derivative financial instruments with various
counterparties, principally financial institutions with investment grade credit ratings. Foreign exchange forward
contracts are valued using valuation techniques, which employs the use of market observable inputs. The most
frequently applied valuation techniques include forward pricing , using present value calculations. The models
incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward
rates, yield curves of the respective currencies, currency basis spreads between the respective currencies. As at
31 March 2025, the mark-to-market value of other derivative asset positions is net of a credit valuation adjustment
attributable to derivative counterparty default risk.

b. Non-current borrowings - The fair value of non-current borrowings is estimated by discounting future cash flows
using rates currently available for debt on similar terms, credit risk and remaining maturities. The carrying value
and fair value of the borrowings has been considered the same since the existing interest rate approximates its
fair value.

c. The fair value of security deposit has been estimated using DCF model which consider certain assumptions viz.
forecast cash flows, discount rate, credit risk and volatility.

d. The fair value of loan to related parties including interest accrued has been estimated using DCF model which
consider certain assumptions viz. forecast cash flows, discount rate, credit risk and volatility.

e. The fair value of bank deposits has been estimated using DCF model which consider certain assumptions viz.
discount rate, credit risk and volatility etc.

35 Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are:

(a) recognised and measured at fair value and

(b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified
its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level
follows underneath the table.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable

36 Financial risk management objectives and policies

The Company's principal financial liabilities comprise borrowings, lease liabilities, trade and other payables. The main
purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets
include security deposits given, loan to related party, employee advances, trade and other receivables, cash and cash
equivalents and other assets.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees
the management of these risks. All derivative activities for risk management purposes are carried out by specialist
teams that have the appropriate skills, experience and supervision. It is the Company's policy that no trading in

derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for
managing each of these risks, which are summarised below.

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 interest rate risk and currency risk. Financial instruments affected by
market risk include borrowings and foreign exchange forward contracts.

The sensitivity analysis has been prepared on the basis that the amount of net debt, the ratio of floating to fixed
interest rates of the debt and the proportion of financial instruments in foreign currencies are all constant in place at
31 March 2025 and 31 March 2024.

The sensitivity analysis in the following sections relate to the position as at 31 March 2025 and 31 March 2024.

The analyses exclude the impact of movements in market variables on the carrying values of gratuity and provisions.
The following assumptions have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This
is based on the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.

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's exposure to the risk of changes in market interest rates relates
primarily to the Company's obligations with floating interest rates.

The Company is exposed to interest rate risk because Company borrows funds at floating interest rates. These
exposures are reviewed by appropriate levels of management. The Company regularly monitors the market rate of
interest to mitigate the risk exposure. The following table demonstrates the sensitivity to a reasonably possible
change in interest rates on that portion of borrowings affected. With all other variables held constant, the Company's
profit before tax is affected through the impact on floating rate borrowings, as follows:

The assumed movement in interest rates for the interest rate sensitivity analysis is based on the currently observable
market environment, showing a significantly higher volatility than in prior years.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates
primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency).

The Company manages its foreign currency risk by purchasing foreign currency forward contracts for purchase
transactions that are expected to occur within a maximum 12-month forecasted period. The following tables
demonstrate the unhedged foreign currency exposure and sensitivity to a reasonably possible change in foreign
exchange rates, with all other variables held constant. The impact on the Company's profit before tax is due to
changes in the fair value of monetary assets and liabilities are as follows:

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in US Dollars (USD), Thai baht (THB)
Japanese yen (yen) and EURO exchange rates, with all other variables held constant. The impact on the Company's
profit before tax is due to changes in the fair value of monetary assets and liabilities including non-designated
foreign currency derivatives.

Commodity price risk

The Company is exposed to movement in price of steel commodity. Profitability of Company may get affected by
movement in the prices of steel. The strategic move of the Company from fixed price contracts to variable price
contracts helps mitigate steel price fluctuation risk.

Equity price risk

Equity price risk is the risk that the value of a equity financial instrument will fluctuate due to changes in market
prices. The Company does not hold any quoted or marketable equity financial instruments, hence, is not exposed to
any movement in market prices.

Credit risk

Credit risk is the risk that 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 from its operating activities including trade receivables,
deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade receivables

Trade receivables do not have any significant potential credit risk for the Company as the business of the Company
is majorly cash based. An impairment analysis is performed by the management at each reporting date on an individual
basis for major clients.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and
control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive
credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding
customer receivables are regularly monitored and any shipments to major customers are generally covered by letters
of credit or other forms of credit insurance obtained from reputable banks and other financial institutions. At 31
March 2025, the Company had 19 customers (31 March 2024: 18 customers) that owed the Company more than INR
200 lacs each and accounted for approximately 87% (31 March 2024: 80%) of all the receivables outstanding. There
were six customers (31 March 2024: three customers) with balances greater than INR 1,000 lacs accounting for just
over 33% (31 March 2024: 53%) of the total amount receivable.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit
losses. The provision rates are based on days past due for groupings of various customer segments with similar loss
patterns (i.e., by geographical region, product type, customer type and rating, and coverage by letters of credit or
other forms of credit insurance). The calculation reflects the probability-weighted outcome, the time value of money
and reasonable and supportable information that is available at the reporting date about past events, current conditions
and forecasts of future economic conditions. The maximum exposure to credit risk at the reporting date is the
carrying value of each class of financial assets disclosed in Note 6. The Company does not hold collateral as security.
The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are
located in several jurisdictions and industries and operate in largely independent markets.

Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company's treasury department in accordance with the
Company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits
assigned to each counterparty. Counterparty credit limits are reviewed by the key management personnel on an
annual basis and may be updated throughout the year. The limits are set to minimise the concentration of risks and
therefore mitigate financial loss through counterparty's potential failure to make payments.

The Company's maximum exposure to credit risk for the components of the balance sheet at 31 March 2025 and 31
March 2024 is the carrying amounts as illustrated in note 6.

Liquidity risk

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of
cash credits and bank loans. Approximately 31% of the Company's long-term borrowings will mature in less than one
year from/ as at 31 March 2025 (31 March 2024: 28%) based on the carrying value of borrowings reflected in the
financial statements. The Company assessed the concentration of risk with respect to refinancing its debt and concluded
it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12
months can be rolled over with existing lenders.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual
undiscounted payments.

Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the
same geographical region, or have economic features that would cause their ability to meet contractual obligations
to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative
sensitivity of the Company's performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific guidelines
to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and
managed accordingly. Selective hedging is used within the Company to manage risk concentrations at both the
relationship and industry levels.

A substantial portion of the Company's trade payables are included in the Company's supplier finance arrangement
and are, thus, with a single counterparty rather than individual suppliers. This results in the Company being required
to settle a significant amount with a single counterparty, rather than less significant amounts with several counterparties.
However, the Company's payment terms for trade payables covered by the arrangement are identical to the payment
terms for other trade payables. Management does not consider the supplier finance arrangement to result in excessive
concentrations of liquidity risk, and the arrangement has been established to ease the administrative burden of
managing invoices from a significant number of suppliers, rather than to obtain financing. Please refer to Note 18 for
further disclosures about the arrangement.

Collateral

The Company has pledged part of its current and Non current term deposits in order to fulfil the collateral requirements
for the issuance of Bank guarantee submitted to customers. The counterparties (bank) have an obligation to return
the securities to the Company upon completion of bank guarantee period. There are no other significant terms and
conditions associated with the use of collateral [refer note 6(D)].

37 Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, convertible preference
shares, securities premium and all other equity reserves attributable to the equity holders of the Company. The
primary objective of the Company's capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital
using a gearing ratio, which is net debt divided by total capital plus net debt. The Company's policy is to keep the
gearing ratio between 20% and 60%. The Company includes within net debt, interest bearing loans and borrowings,
lease liabilities, less cash and cash equivalents. The Company has established a supplier finance arrangement to
manage its working capital. See Note 18 and Note 36 for further details.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and
borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowings in
the current year.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31 March
2025 and 31 March 2024.

38 Company as a lessee

i) The Company's leased assets primarily consists of lease for factory lands, computers, data processing equipment
and plant and machinery having lease term of 2-11 years.

The Company recorded the lease liability at the present value of the remaining lease payments discounted at the
incremental borrowing rate as on the date of transition and has measured right of use asset at an amount equal
to lease liability adjusted for previously recognised prepaid or accrued lease payments.

The Company's obligations under its leases are secured by the lessor's title to the leased assets. Generally, the
Company is restricted from assigning and subleasing the leased assets.

The Company also has certain leases of machinery with lease terms of 12 months or less and leases of office
equipment with low value. The Company applies the 'short-term lease' and 'lease of low-value assets' recognition
exemptions for these leases.

39 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
Certain sections of the Code came into effect on 3 May 2024. However, the final rules/interpretation have not yet
been issued. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

40 Other statutory information:

(i) The Company do not have any Benami Property, where any proceeding has been initiated or pending against the
company for holding any Benami Property.

(ii) The Company do not have any transactions with companies struck off.

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

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have not advanced or loaned or invested funds to any other persons or entities, including foreign
entities (intermediaries) with the understanding that the intermediary shall:

(a) Directly or indirectly lend or invest in other person 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.

(vi) The Company have not received any fund from any persons or entities, including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the group 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.

(vii) 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 period in the tax assessment under the income tax Act,1961 (Such
as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(viii) The Company has not been declared as wilful defaulter.

(ix) The 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.

42 Employee Share Based Payment

Employee Stock Option Scheme "ESOP-2023" (herein referred as DEE Development Engineers Limited ESOP-2023)
was approved by our Board of Directors in their meeting held on 22nd September, 2023 and by our shareholders in
their meeting dated 23rd September 2023 respectively. Under ESOP-2023, Nomination and Remuneration Committee
is authorised to grant 3,88,920 options to eligible employees of the Company in one or more tranches. Options
granted under ESOP-2023 shall not vest earlier than a minimum vesting period of one year and not later than a
maximum vesting period of three years from date of grant. The exercise period in respect of vested options shall be
subject to maximum period of four years commencing from the date of vesting. The options granted under ESOP-
2023 carry no rights to dividends and no voting rights till the date of exercise.

The fair value of the share options is estimated at the grant date using Black- Scholes Model, taking into account the
terms and conditions upon which the share options were granted.

The Company has recognised an expense of INR 308.16 lacs (March 31, 2024 : INR 248.36 lacs) on grant of 3.89 lacs
ESOP granted during the period in accordance with Ind AS 102 "Share Based Payments". The carrying amount of
ESOP reserve as at 31 March 2025 is INR 602.53 lacs including INR 46.02 lacs issued to the employees of subsidiary
Company (March 31, 2024: INR 266.23 lacs including INR 17.88 lacs). Further, Share option granted to employees of
subsidiary company is treated as deemed investment in the books of the Company.

The exercise price of the share options is Rs. 10 per equity share. There are no cash settlement alternatives for
employees.

The expected life of the share options is based on historical data and current expectations and is not necessarily
indicative of exercise patterns that may occur. The volatility is based on annualised standard deviation of the
continuously compounded rates of return based on the peer companies and competitive stocks over a period of
time. The Company has determined the market price on grant date based on latest equity valuation report
available with the Company preceding the grant date.

43. The Company has used two accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in
the software except that audit trail feature is not enabled for direct changes to data when using certain access rights.
Further no instance of audit trail feature being tampered with was noted in respect of accounting softwares where
the audit trail has been enabled.

Since the audit trail feature was not enabled in the previous years, hence the same have not been preserved by the
company as per the statutory requirements for record retention.

44. During the year ended March 31, 2025, the Company had completed its Initial Public Offer ("IPO") of 2,05,96,938
equity shares (including 54,347 equity shares issued to employees) of face value of Rs. 10 each at an issue price of Rs.
203 per share (Rs. 184 per share for equity shares issued to employees) comprising fresh issue of 1,60,14,938 equity
shares aggregating to Rs. 32,500.00 lakhs and offer for sale of 45,82,000 equity shares by selling shareholders
aggregating to Rs. 9,301.46 lakhs, resulting in equity shares of the Company being listed on National Stock Exchange
of India Limited ('NSE') and BSE Limited ('BSE') on June 26, 2024. Consequent to allotment of fresh issue, the paid-up
equity share capital of the Company stands increased from Rs. 5,303.91 lakhs consisting of 5,30,39,140 equity shares
of Rs. 10 each to Rs. 6,905.41 lakhs consisting of 6,90,54,078 Equity Shares of Rs. 10 each. The total actual expenses
incurred in relation to the IPO are Rs 2,964.70 lakhs (excluding GST). Out of this, Rs. 2,305.00 (excluding GST) was
borne by the Company while Rs. 659.70 lakhs (excluding GST of Rs. 118.74 lakhs) was borne by the selling shareholders.

45 The management has evaluated the likely impact of prevailing uncertainties relating to imposition or enhancement
of reciprocal tariffs and believes that there are no material impacts on the standalone financial statements of the
Company for the year ended March 31, 2025. However, the management will continue to monitor the situation from
the perspective of potential impact on the operations of the Company.

46 Events after the reporting period

The Company had setup Bio-Mass power plant of 8 MW at Abohar, Punjab and entered into a Power Purchase
Agreement ('PPA') with Punjab State Power Corporation Limited ('PSPCL') for a period of 30 years expiring on December
31, 2040. The PPA provided for tariff revisions after 13 years and 20 years from the PPA commencement date. On
expiry of 13 years, the Company filed petition before Punjab State Electricity Regulatory Commission ('PSERC'), seeking
an upward revision of the tariff from Rs 7.48 per unit applicable till that date, to reflect rising operational costs and
market conditions.

PSERC, vide its order dated May 15, 2025, reduced the tariff from Rs. 7.48 per unit to Rs. 5.42 per unit retrospectively
w.e.f. January 01, 2024 resulting in payable of Rs. 1,457.04 lacs to PSPCL towards excess revenue recognised from
January 01, 2024 to March 31, 2025.

Management is of the view that the downward revision of tariff is not commercially acceptable having regard to the
generation costs involved and believes that the rate should be indicative of the costs involved in generation of
power. Accordingly, the Company has filed a review petition on May 19, 2025, before PSERC against the order and
basis the legal opinion obtained by the management, it believes that there is strong likelihood of succeeding in
respect of above matter.

Since the matter is currently sub-judice, no adjustments have been made in these standalone financial statement.
As per our report of even date

For S. R. Batliboi & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants DEE Development Engineers Limited

ICAI Firm Registration Number: 301003E/E300005

per Rajeev Sawhney K.L. Bansal Shruti Aggarwal

Partner Chairman and Managing Director Director

Membership No: 096333 DIN No. 01125121 DIN No. 08598962

Ranjan Sarangi Sameer Agarwal

Company Secretary Chief Financial Officer

FCS-8604

Place : Palwal Place : Palwal

Date : 29 May, 2025 Date : 29 May, 2025