(n) Provisions, Contingent Liabilities and Contingent Assets

(i) Provisons

Provisions are recognized when, based on the Company's present obligation (legal or contractive) as a result of a past event, it is
probable that the Company will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of
the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using
the cash flows estimated to settle the present obligarion, its carrying amount is the present value of those cash flows (when the effect
of the time value of money is material).

(ii) Contingent Liabilities and Assets

Show-cause notices issued by various Government Authorities are generally not considered as obligations. When the demand notices
are raised against such show cause notices and are disputed by the Company, these are classified as disputed obligations.

The treatment in respect of disputed obligations are as under:

a) a provision is recognized in respect of present obligations where the outflow of resources is probable:

b) all other cases are disclosed as contingent liabilities unless the possibility of outflow of resources is remote.

Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence
or non-occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an
outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent
liability. Contingent liabilities are disclosed on the basis of judgment of the management/independent experts and reviewed at each
balance sheet date to reflect the current management estimate.

Contingent assets are disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is
probable.

(o) Statement of Cash Flow

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transaction of a non-cash nature,
any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or
financing cash flows. The cash flows are segregated into operating, investing and financing activities.

(p) Segment Reporting

The Company identifies primary segments based on the dominant source, nature of riska and returns and the intemal organisation and
management structure. The operating segments are the segments for which separate financial information is available and for which
operating profit/loss amounts are evaluated regularly by the Chief Operating Decisions Making Body (CODM) in deciding how to allocate
resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company.

2.3 Critical Accounting Judgments, Estimates, Assumptions and Key Sources of Estimation Uncertainty

The preparation of the Company's financial statements requires management to make judgemens, estimates and assumption that affect the
reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities at
the date of the financial statements. Estimates and assumptions are continuously evaluated and are based on management's experience and
other factors, including expectations of future events that are believed to be reasonable under the circumstances. Uncertainty about these
asumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in
future periods.

(a) Judgement

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

Evaluation of Indicators for Impairment of Property, Plant and Equipment

The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline asset's value,
significant changes in the technological, market, economic or legal environment, market interest rates etc.) and internal factors
(obsolescence or physical damage of an asset, poor economic performance of the asset etc.) which could result in significant change in
recoverable amount of the Property, Plant and Equipment.

(b) Assumptions and Estimation Uncertainties

Information about estimates and assumptions that have the significant effect on recognition and measurment of assets. liabilities, income
and expenses is provided below. Actual results may differ from these estimates.

(i) Defined Benefit Obligations

The cost of the defined benefit gratuity plan, the present value of the grantity obligation and compensated absences 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.

(ii) Useful lives of Property, Plant and Equipment/Intangible Assets

Property, Plant and Equipment/ Intangible Assets are depreciated/amortised over their estimated useful lives, after taking into account
estimated residual value. The useful lives and residual values are based on the Company's historical experience with similar assets and
taking into account anticipated technological changes or commercial obsolescence. Management reviews the estimated useful lives
and residual values of the assets annually in order to determine the amount of depreciation/amortisation to be recorded during any
reporting period. The depreciation/ amortisation for future periods is revised, if there are significant changes from previous estimates
and accordingly, the unamortised/depreciable amount is charged over the remaining useful life of the assets.

(iii) Contingent Liabilities

In the normal course of business, Contingent Liabilities may arise from litigation and other claims against the Company. Potential
liabilities that are possible but not probable of crystallising or are very difficult to quantify reliably are treated as contingent liabilities.
Such liabilities are disclosed in the Notes but are not recognised.

Potential liabilities that are remote are neither recognised nor disclosed as contingent liability. The management decides whether the

matters need to be classified as 'remote', 'possible' or 'probable' based on expert advice, past judgements, experiences etc.

(iv) Evaluation of Indicators for Impairment of Property, Plant and Equipment

The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline in

asset's value, economic or legal environment, market interest rates etc.) and internal factors (obsolescence or physical damage of an
asset, poor economic performance of the idle assets etc.) which could result in significant change in recoverable amount of the

Property, Plant and Equipment and such assessment is based on estimates, future plans as envisaged by Company.

(v) Allowance for impairment of trade receivables

The expected credit loss is mainly based on the ageing of the receivable balances and historical experience. The receivables are
assessed on an individual basis or assessed for impairment collectively, depending on their significance. Moreover, trade receivables

are written off on a case-to-case basis if deemed not to be collectible on the assessment of the underlying facts and circumstances.

(vi) Provisions

Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of funds resulting
from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification
of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying
amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

(vii) Revenue Recognition

The Company's contracts with customers include promises to transfer products and service to the customers. The Company assesses
the products and service promised in a contract and identifies distinct performance obligations. if any, in the contract. Identification of
distinct performance obligation involves judgement to determine the deliverables and the ability of the customer to benefit
independently from such deliverables. Judgement is also required to determine the transaction price for the contract. The Company
exercises judgement in determining whether the performance obligation is satisfied at a point in time or over time. The Company
considers indicators such as to who controls the asset as it is being created or existence of enforceable right to payment for
performance to date and alternate use of such product, bill and hold agreements, transfer of significant risks and rewards to the
customer, acceptance of delivery by the customer, etc. The judgment is also exercised in determining the variable consideration, if any,
involved in transaction price.

ii) The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities(intermediaries) with the understanding that the
intermediary shall : (a) directly or indirectly lend or invest in other persons or entitites identified in any manner whatsoever by or on behalf of the company (Ultimate
Beneficiaries) or (b) provide ang guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The company has not received any fund from any person(s) or entity(is), 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.

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

iv. ) The company does not hold Immovable Property whose title deed is not held by the company.

v. ) The company has not revalued any of its Property, Plant and Equipment during the year.

Note No. 33

The figures for the previous year have been regrouped / reclassified to correspond with current year’s classfication/ disclosure that include changes consequent to
the issuance of “Guidance Note on Division II - Ind AS Schedule III to the Companies Act, 2013.”

Note No. 34

Disclosure For struck-off Companies

The Company has no Balance Outstanding in respect of Transations with any Company Struck-off under Section 248 of the Companies Act 2013.

For and on behalf of Board of Directors of As per our report of even date

Star Delta Transformers Limited For A K KHABYA & CO.

Chartered Accountants
FRNo. 001994C

Kishore Gupta Rakesh Gupta Itisha Agarwal

Chairman & Managing Director CFO & Whole Time Director Company Secretary

DIN-00014205 DIN-00014139 A67169

CA M.N.G. PILLAI

PLACE : BHOPAL PARTNER

DATED : 28th May 2025 Membership No.: 07405