a) A Provision Is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably,
and It Is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected
future cash flows (representing the best estimate of the expenditure required to settle the obligation at the balance sheet date) at a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as
finance cost

b) Provision for contractual obligation has been provided for in accounts based on management's assessment of the probable outcome with reference
to the available Information supplemented by experience of similar transactions.

c) The Company makes provision towards warranty obligation arising under the contract, while progressively recognising the revenue, based on
management estimate and past experience of similar contracts. Such provision Is maintained until the warranty period is completed. The unutilised
provision if any, Is reversed on expiry of the warranty period.

xiii) Revenue

The Company has adopted Ind AS 115 'Revenue from Contracts with Customers' with the date of initial application being April 1, 2018. Ind AS 115
establishes a comprehensive framework on revenue recognition. Ind AS 115 replaces Ind AS 18 'Revenue' and Ind AS 11 'Construction Contracts'.

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a) Sale of goods and services - Performance obligation at a point In time

Revenue from the sale of goods In the course of ordinary activities is measured at the transaction price of the consideration received or receivable, net
of returns, trade discounts. Revenue Is recognised on the basis of despatches in accordance with the terms of sale when thefsignificant risks and
rewards of ownership have been transferred to the buyer, recovery of the consideration Is probable, the associated costs and possible return of the
goods can be estimated reliably, there Is no continuing effective control over, or managerial Involvement with the goods, and the amount of revenue
can be measured reliably. The timing of transfers of risk and rewards varies depending on the Individual terms of sale.

Revenue from services is recognized In accordance with the specific terms of contract on performance.

Other operating revenue Includes scrap sale, interest Income on margin money deposits etc.arising out of and incidental to the principal operation. The
entire Income under other operating revenue Is recognised on accrual basis except In the case of interest income which is recognised using effective
rate of Interest method.

b) Construction contracts - Performance obligation over time

The Company uses the 'percentage of completion method' to determine the appropriate amount to recognise revenue In a given period. The stage of
completion Is measured by reference to the contract costs Incurred upto the end of the reporting period as percentage of total estimated costs for each
contract. Expected loss, if any, on the construction / project related activity is recognized as an expense in the period In which It is foreseen,
Irrespective of the stage of completion of the contract. While determining the amount of foreseeable loss, all elements of costs and related incidental
Income not Included Is taken into consideration. In respect of construction contracts, revenue Includes variations In contract work, claims and Incentive
payments are Included in contract revenue to the extent that may have been agreed with the customer and are capable of being reliably measured.

c) Other Income

Other Income is comprised primarily of dividend income and exchange gain/loss on forward and options contracts and on translation of other assets
and liabilities.

Dividend Income: Dividend income Is recognised In profit or loss on the date on which the Company's right to receive payments Is established.

Others: Any other Income Is recognised only on accrual basis.

xlv) Income tax

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to other comprehensive Income.

a) Current tax

Current tax comprises the expected tax payable or receivable on the taxable Income or loss for the year and any adjustments to the tax payable or
receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after
considering the uncertainty, if any, related to Income taxes. It is measured using tax rates (and tax taws) enacted or substantially enacted by the
reporting date. Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is
Intended realise the asset and settle the liability on a net basis or simultaneously.

b) Deferred tax

Deferred tax Is recognised In respect of temporary differences between the carrying amounts of assets and liabilities for financial repotting purposes
and the corresponding amounts used for taxation purpose. Deferred tax is recognised In respect of carried forward losses and tax credits. Deferred tax
also not recognised for temporary differences arising on the initial recognition of assets or liabilities in a transaction that affects neither accounting nor
taxable profit or loss at the time of transaction.

Deferred tax assets and liabilities are recognised to the extent that it is probable that future taxable profits will be available against which they can be
used. The existence of unused tax losses Is strong evidence that future taxable profit may not be available. Therefore, In case of a history of recent
losses, the Company recognises a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other
evidence that sufficient taxable profit will be available against which such deferred tax asset can be realised. Deferred tax assets — unrecognised or
recognised, are reviewed at each reporting date and are recognised/ reduced to the extent that it is probable/ no longer probable respectively that the
related tax benefit will be realised.

Deferred tax Is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability Is settled, based on the
laws that have been enacted or substantively enacted by the reporting date. The measurement of deferred tax reflects the tax consequences that
would follow from the manner In which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to Income
taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they Intend to settle current tax liabilities and assets
on a net basis or their tax assets and liabilities will be realised simultaneously.

xv) Segment Reporting

a) Segment policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial
statements of the Company as a whole.

b) Identification of segments:

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The board of
directors of the Company assesses the financial performance and position of the Company and makes strategic decisions.

c) Segment Revenue and Segment Result:

Segment revenue includes revenue from operations and other income directly Identifiable with / allocable to the segment Expenses that are directly
identifiable with / allocable to segments are considered for determining the segment result. Revenue and expenses which relate to the Company as a
whole and are not allocable to a segment on a reasonable basis have been disclosed as unallocable.

d) Segment Assets and Liabilities:

Segment assets and liabilities Include those directly Identifiable with respective segments. Unallocable corporate assets and liabilities represent the
assets and liabilities that relate to the Company as a whole and not allocable to any segment

xvi) Statement of Cash flows

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial
Institution, other short-term, highly liquid Investments with original maturities of twelve months or less that are readily convertible to known cash and
which are subject to an insignificant risk of changes In value.

Statement of Cash flows are prepared using the indirect method, whereby profit before tax Is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future operating cash receipts or payments and Items of Income or expense associated with investing or
financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

xvii) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial Institution, other short-term, highly liquid investments with
original maturities of twelve months or less that are. readily convertible to known cash and which are subject to an insignificant risk of changes in
value.

xviil) Dividends

Final dividend on shares are recorded as a liability on the date of approval by the shareholders and Interim dividends are recorded as a liability on the
date of declaration by the Company' Board of Directors.

xix) Earnings per share

a. Basic earning per share

Basic earnings per share is calculated by dividing
I. the profit attributable to owners of the Company

il. by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during
the year and excluding treasury shares

b. Diluted earnings per share

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

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

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

xx) Contingent liabilities

The company recognizes contingent liability for disclosure In notes to accounts, if any of the following conditions is fulfilled:

n

a) a possible obligation that arises 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 enterprise; or

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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.

xxi) Contingent Assets

Contingent assets has to be recognised in the financial statements in the period In which it Is virtually certain that an inflow of economic benefits will
arise.

xxii) Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period , the impact of such
events is adjusted within the standalone financial statements .Otherwise events after the balance sheet date of materials size or nature are only
disclosed. i

a) TTie balance In project specific escrow,current and EEFC accounts have been netted off against respective project's working capital loan accounts.

b) The Company has availed working capital loan from State Bank of India on sole banking basis for Its Product business and project business which have not been
specifically funded by other banks. The loan Is secured by hypothecation of inventories, trade receivables and movable assets of Product Division viz AFC, ETD, OGED,
EED and EPD excluding Project assets specifically charged to the banks / Consortium of banks. The loan from State Bank of India Is further secured by first charge on
land property at Panjettl Village, Tlruvallur Dlst, Tamilnadu and first charge on the fixed assets of the Product Division.

The Loan Is further secured by corporate guarantee and collateral of land held by Sravanaa Properties Limited (Subsidiary Company), pledge of shares held by BGR
Investment Holdings Company Limited In BGR Energy Systems Limited and the corporate guarantee of BGR Investment Holdings Company Limited.

c) The Company has availed contract specific working capital loans from State Bank of India, IDBI Bank, Punjab National Bank, Canara Bank, Bank of Baroda, Indian
Bank, Bank of India, Central Bank of India, Axis Bank, ICICI Bank, Kotak Mahlndra Bank Ltd and Union Bank of India. These loans are secured by hypothecation of
Inventories, trade receivables and movable current assets of the respective contracts. The participating banks share the securities on parl-passu basis.

d) The Company has availed unsecured Loans from Related Parties at the Interest rate of 9.75% p.a. These loans are repayable on demand subject to approval from
Banks. The details of Loan Is tabulated below

33 Risk Management Strategies
Financial risk management:

The Company's activities exposed to market risk, credit risk and liquidity risk. The company's senior management oversees the management of these risks.

Market risk

Market risk Is the risk of loss of future earnings or fair values or future cash flows that may result from a change In the price of a financial Instrument The value of a
financial Instrument may change as a result of changes In the Interest rates, foreign exchange rates and other market changes that affect market risk sensitive
Instruments. Market risk Is attributable to all market risk sensitive financial Instruments Including foreign currency receivables and payables. The company Is exposed to
market risk primarily related to foreign exchange rate risk (currency risk), Interest rate risk and the market value of Its Investments. Thus the Company's exposure to
market risk Is a function of Investing and borrowing activities and revenue generating and operating activities In foreign currencies.

Foreign currency risk

The Company has entered Into various contracts In several currencies and consequently the Company Is exposed to foreign exchange risk through Its sales, services
and purchases from suppliers In various foreign currencies. The Company holds derivative financial Instruments such as foreign exchange forward contract to mitigate
the risk of changes In exchange rates on foreign currency exposures. The exchange rate between the rupee and foreign currencies has changed substantially In recent
years. The fluctuations In exchange rate may have an Impact on Company's operations.

The Company is affected by the price volatility of certain commodities. Us operating activities require the ongoing purchase of Steel, Cement and other materials. Due
to the significantly Increased volatility of the price of the raw material, the Company also entered Into various purchase contracts for supply of Steel, Cement & other
material. The Company has escalation clause In some of their client contracts for variation In the price of commodities.

Equity price risk

The Company's listed securities are susceptible to market price risk arising from uncertainties about future value of the Investment securities.

At the reporting date, the exposure to listed securities at fair value was Rs.215 lakhs (Rs.20S lakhs). An Increase / decrease of 10% on the BSE Market Index could
have an Impact of approximately Rs.21.50 lakhs (Rs. 20.50 lakhs) on the oa or equity attributable to the Group.

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 (primarily trade receivables) and from Its financing activities, including deposits with banks, foreign exchange
transactions and other financial Instruments.

Trade receivables

Outstanding customer receivables are regularly monitored and any major export shipments to customers are generally covered by letters of credit The maximum
exposure to the credit risk at reporting date Is primarily from trade receivables amounting to Rs.50357 Lakhs

Financial Instruments and cash deposits .

Credit risk from balances with banks and financial Institutions Is limited as the Company generally Invests In banks and financial Institutions with high credit ratings.
Other financial Instruments Includes primarily Investment In fixed deposits.

Liquidity risk

Liquidity risk Is the risk that the Company will encounter difficulty In meeting the obligations associated with Its financial liabilities that are settled by delivering cash or
another financial asset. The Company's objective Is to maintain a balance between continuity of funding and flexibility through the use of bank borrowings.

42 During the year, some of the contracts have been terminated by the customers resulting In shortclosure of contract value to the extent of Rs.31991 lakhs.

43 During the year, some of our customers encashed our BG amounting to Rs.152567 lakhs.

44 Going Concern: In the opinion of the management the preparation of the financial statements or a going concern basis Is appropriate, considering the developments
during the current year. These Include the infusion of unsecured loans of Rs.43318 lakhs by the promoters, the Company's continued execution of ongoing projects
despite instances of bank guarantee encashments, and an order book of approximately Rs.68577 lakhs as on that date. Furthermore, the Company Is actively engaged
In discussions with its bankers for a potential restructuring package.

45 The balance under "Trade Receivables Including retention money" as at 31.03.2025 Is considered good and fully recoverable. A detailed review of sundry debtors was
conducted, including a comprehensive division-wise analysis of collectible and non-collectible receivables pertaining to closed and old projects. We placed emphasis on
this area given the materiality of the balances and the significant Judgment involved In assessing the recoverability of trade receivables and accrued revenue. Several
factors were considered in determining whether an Impairment was necessary. Including defaults or delays In payments, the ageing of outstanding balances, and
challenges encountered In project execution

Based on this review, a provision for old and doubtful debts amounting to Rs.13520 lakhs was recognised during the financial year. We reaffirm that the remaining
balances are considered good and recoverable.

Additionally Rs.1300 lakhs provided for debtors based on the arbitration proceedings, Rs.3413 lakhs provided on account of MSME award to various
vendors and provision created for Rs.916 Lakhs for TRN vendors based on TRN award.

46 During the year, the Company recognised a substantial wrlte-back of trade payables amounting to Rs.4780 lakhs, classified as other income In the Statement of Profit
and Loss. The write-back resulted from the expiry of the limitation period, settlement of disputes, and supplier reconciliations, based on management's assessment,
conducted with the assistance of external professionals, that no further obligations remained In respect of these liabilities. Additionally, the Company reversed other
provisions that were no longer considered necessary.

47 We have received a notice u/s 201 from Income tax TDS office,Vijayawada for non deduction of TDS for Interest provision created on customer advance for Rs.852
lakhs (including interest) for FY 2022-23 and Rs.1975 lakhs for FY 2023-24 (Including Interst). This has been contested by the Company and the same is Included In
Contingent liability.

48 Pursuant to the Rajasthan High Court order dated 21.12.2023, the Company received a VAT demand notice amounting to Rs.50869.50 lakh. The Company filed a
Special Leave Petition (SLP) before the Supreme Court on 29.04.2024, which has been admitted and is currently pending. Meanwhile, the Company applied under the
Rajasthan Amnesty Scheme 2024 seeking relief, while disputing the tax computation by the authorities and requesting Its revision. The application now continues
under the extended Amnesty Scheme 2025. As the proceedings are still ongoing, the amount continues to be disclosed as a Contingent Liability.

0

49 For the NUPPL-Ghatampur project, which commenced with a contract value of Rs.280162 lakhs, revenue has been fully recognized in accordance with Ind AS 115 as of
30th June 2024, corresponding to cumulative costs incurred of Rs.222788 lakhs.

From July 2024 to March 2025, the Company Incurred additional costs of Rs. 19944 lakhs towards project completion. As the contract does not allow for revision of the
agreed contract value, these costs, on which no profit could be recognized, have been fully charged to the Profit and Loss Account

Further, the Company raised a claim of Rs.80462 Lakhs for the increased costs, which was referred to the Conciliation Committee. The Committee recommended
Rs.33969 Lakhs, subject to NtJPPL's approval. Since the matter remains unresolved, no Income has been recognized against the claim, and all excess costs have been
expensed in the statement of profit and loss account. During the year, Rs.19944 lakh has been written off to the profit and loss account.

50 'Other expenses' include Rs.11907 lakhs, represenbng the value of certain contract assets recognised under Ind AS 115 (Revenue from Contracts with Customers),
which were written off as the underlying contracts were either short-closed or cancelled, and in the management's opinion, their enforceability and collectability are no
longer considered possible.

Similarly, 'other income' Includes Rs.11597 lakhs, representing the value of certain contract liabilities recognized under Ind AS 115 (Revenue from Contracts with
Customers), which were written back as the underlying contracts were either short-dosed or cancelled, and In the management's opinion, the obligation for repayment
no longer exists. / 's'-Y\ .

51 During the year, the Hontjle Andhra Pradesh has granted an interim stay for Insolvency and/or recovery proceedings initiated by the Operational Creditors (ie.,
Vendors/suppllers) and Financial Creditors (le., Bankers) before the NCLT, Amaravatl Bench, which were kept under abeyance for time being.

52 Total BG encashed by various customers is Rs. 188808 lakhs till date and Rs.94001 lakhs is adjusted towards customer advance and balance amount of Rs.94808 lakhs
forms part of current asset. Company is in the process of ascertaining the realisability and Initiating legal proceedings customerwise accordingly.

53 During Mar-2023, Chattisgarh State Power Generabon Co Ltd (CSPGCL) (Marwa Project) demanded encashment of two BGs totalling to Rs.16337 Lakhs from State Bank
of India. The encashment was resorted to without communicating either the termination of the contract or claim of LO. Immediately we approached the Court for stay on
invocation of BG. The stay was Initially granted by the Honourable Chennai High Court and subsequently by the Honourable Chattisgarh High Court The said amount
included In Contingent Liability as on 31.03.2023.

The present status is that Writ Appeal filed before Chattisgarh High Court, against Single Judge's order In W.P.No.1992/2023 was set aside and the Divisional Bench
allowed our Writ Appeal No. 498/2023 and directed the Adhiniyam to decide the case filed before them within 4 months from the date of receipt of this Judgement/

Order.

Based on SLP judgement BG encashed for Rs, 16337 Lakhs in Dec'24. Arbitration proceedings is under progress.

54 The company reviewed Its Investment In subsidaries l.e BGR Boilers Private Limited and BGR Turbines company Private Limited and confident of recovering Its investment
In lieu of settlement and seperation aggrement with Hitachi Group.Accordlngly no provision for dimunitlon in value of Investment is made.

55 VAT/GST/Income tax receivable is written off in Rates & taxes for Rs.1147 lakhs

56 Inventories are valued at the lower of cost or net realizable value. The Company follows the weighted average cost method for the relevant categories of inventory.
Physical verification of stocks was carried out during the year, and no material discrepancies were noted. We also confirm that all stocks, including non-moving Items, are
In usable condition. During the year, certain Inventories were written off due to deterioration In value, amounting to Rs.148 lakhs relating to the Environment Engineering
Division (EED) and Rs.36 Lakhs relating to the Oil and Gas Engineering Division, aggregating to Rs.184 Lakhs.

Further, during the year, inventory pertaining to the AFC Division, where no commercial operations are being carried on, was disposed of for a lump sum amount of
Rs.306 Lakhs. The remaining inventory, with a book value of Rs.465 Lakhs, was written off and disclosed under 'Exceptional Items' in the financial statements.

57 Previous year figures

Figures of previous year have been regrouped / rearranged, wherever required to conform to the current year presentation.

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

t For Anand & Ponnappan

/I Chartered Accountants

i/. H I Firm Registration No.: OOOll IS ,

OHl PATHY ^ • R PONNAPPAN

\ / /) 7T fanner

^v ..----- P () IL-J Membership No.021695

1(1 (*( e tlto W

K.MEYYKNATHAN \]EYAKRISMNA GANESAN [71 • , r, Ji I *

Independent Director f4on-Independent Director

DIN: 07845698 / D1N:0320803S

S.PATTABIRAMAN SUNDAR 5R1NIVASAN Chennai

Vice President & Chief Financial Officer Company secretary & Compliance officer May 28,2025