Notes to Accounts of Bajel Projects Ltd.

Mar 31, 2025

21. Provisions, contingent liabilities and
contingent assets

A. Provisions

A provision is recognised if

• the Company has present legal or
constructive obligation as a result of an
event in the past;

• it is probable that an outflow of
resources will be required to settle the
obligation; and

• the amount of the obligation has been
reliably estimated.

Provisions are measured at the
management’s best estimate of the
expenditure required to settle the
obligation at the end of the reporting
period. If the effect of the time value
of money is material, provisions are
discounted to reflect its present value using
a current pre-tax discount rate that reflects
the current market assessments of the time
value of money and the risks specific to the
obligation. When discounting is used, the
increase in the provision due to the passage
of time is recognised as a finance cost.

Onerous Contract

If the Company has a contract that is
onerous, the present obligation under the
contract is recognised and measured as
a provision. However, before a separate
provision for an onerous contract is
established, the Company recognises
any impairment loss that has occurred
on assets dedicated to that contract. An
onerous contract is a contract under which
the unavoidable costs (i.e., the costs that
the Company cannot avoid because it has
the contract) of meeting the obligations
under the contract exceed the economic
benefits expected to be received under it.
The unavoidable costs under a contract
reflect the least net cost of exiting from

the contract, which is the lower of the cost
of fulfilling it and any compensation or
penalties arising from failure to fulfil it. The
cost of fulfilling a contract comprises the
costs that relate directly to the contract (i.e.,
both incremental costs and an allocation of
costs directly related to contract activities).

Defect Liability Provision

The Defect Liability Period (DLP) is a
contractual provision that defines the
period after construction completion
during which the Company is responsible
for rectifying any defects at no extra cost
to the client. The DLP is a contractual
obligation towards failure to rectify defects
within the specified period.

This period can range from a few months to
several years, depending on the project and
contract terms.

Company creates provisions to cover
potential costs associated with rectifying
defects during the DLP. This provision is
based on estimation as mentioned under
critical estimates.

B. Contingent liabilities

Contingent liabilities are disclosed when
there is a possible obligation arising from
past events, the existence of which will be
confirmed only by the occurrence or non¬
occurrence of one or more uncertain future
events not wholly within the control of the
Company or a present obligation that arises
from past events where it is either not
probable that an outflow of resources will be
required to settle the obligation or a reliable
estimate of the amount cannot be made.

C. Contingent assets

A contingent asset is a possible asset 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 entity. A contingent asset is not
recognised but disclosed where an inflow
of economic benefit is probable.

22. Employee benefits

A. Short-term obligations

Liabilities for wages and salaries, including
non-monetary benefits that are expected
to be settled wholly within 12 months
after the end of the period in which the

employees render the related service are
recognised in the same period in which the
employees renders the related service and
are measured at the amounts expected to
be paid when the liabilities are settled.

Retirement benefit in the form of provident
fund is a defined contribution plan. The
Company has no obligation , other than
the contribution payable to the provident
fund. The Company recognises contribution
payable to the provident fund scheme as
an expense, when an employee renders
the related services. If the Contribution
payable to the scheme for service received
before the balance sheet date exceeds
the contribution already paid, the deficit
payable to the scheme is recognised as a
liability after deducting the contribution
already paid. If the contribution already paid
exceeds the contribution due for services
received before the balance sheet date, then
excess is recognised as an asset to the extent
that the prepayment will lead to a reduction
in future payment or a cash refund.

B. Other long-term employee benefit
obligations

The liabilities for earned leave and sick leave
are not expected to be settled wholly within
12 months after the end of the period in
which the employees render the related
service. They are therefore measured
as the present value of expected future
payments to be made in respect of services
provided by employees up to the end of
the reporting period using the projected
unit credit method. The benefits are
discounted using the market yields at the
end of the reporting period that have terms
approximating to the terms of the related
obligation. Remeasurements as a result of
experience adjustments and changes in
actuarial assumptions are recognised in the
statement of profit or loss.

The obligations are presented as current
liabilities in the balance sheet if the entity
does not have an unconditional right to defer
settlement for at least twelve months after
the reporting period, regardless of when the
actual settlement is expected to occur.

C. Post-employment obligations

The Company operates the following post¬
employment schemes

(a) defined benefit plans - Gratuity

(b) defined contribution plans - Provident
fund, superannuation and pension

Defined benefit plans:

The liability or asset recognised in the balance
sheet in respect of defined benefit plans
is the present value of the defined benefit
obligation at the end of the reporting period
less the fair value of plan assets excluding
non-qualifying asset (reimbursement right).
The defined benefit obligation is calculated
annually by actuaries using the projected
unit credit method. The present value of the
defined benefit obligation is determined
by discounting the estimated future cash
outflows by reference to market yields at the
end of the reporting period on government
bonds that have terms approximating to
the terms of the related obligation. The
net interest cost is calculated by applying
the discount rate to the net balance of the
defined benefit obligation and the fair
value of plan assets. This cost is included in
employee benefit expense in the statement
of profit and loss. Remeasurement gains and
losses arising from experience adjustments
and changes in actuarial assumptions are
recognised in the period in which they occur,
directly in other comprehensive income.
They are included in retained earnings in the
statement of changes in equity and in the
balance sheet.

Insurance policy held by the Company from
insurers who are related parties are not
qualifying insurance policies and hence the
right to reimbursement is recognised as
a separate asset under other non-current
and/or current assets as the case may be.

Changes in the present value of the
defined benefit obligation resulting from
plan amendments or curtailments are
recognised immediately in profit or loss as
past service cost.

Defined contribution plans:

In case of all employees, the Company pays
provident fund contributions to publicly
administered provident funds as per local
regulations. The Company has no further
payment obligations once the contributions
have been paid. Such contributions are
accounted for as employee benefit expense
when they are due. Defined contribution
to superannuation fund is being made
as per the scheme of the Company.

Defined contribution to Employees Pension
Scheme 1995 is made to Government
Provident Fund Authority whereas the
contributions for National Pension Scheme
is made to Stock Holding Corporation of
India Limited.

D. Share based payment

The Company operates an equity settled,
employee share based compensation plan,
under which the Company receives services
from employees as consideration for equity
shares of the Company. Equity settled share
based payment to employees and other
providing similar services are measured at fair
value of the equity instrument at grant date.

The fair value of the employee services
received in exchange for the grant of the
options is determined by reference to the
fair value of the options as at the Grant Date
and is recognised as an ‘employee benefits
expense’ with a corresponding increase in
equity. The total expense is recognised over
the vesting period which is the period over
which the applicable vesting condition is to
be satisfied.

At the end of each year, the entity revises
its estimates of the number of options that
are expected to vest based on the service
vesting conditions. It recognises the impact
of the revision to original estimates, if any,
in profit or loss, with a corresponding
adjustment to equity.

If at any point of time after the vesting of the
share options, the right to the same expires
(either by virtue of lapse of the exercise period
or the employee leaving the Company), the
fair value of the options accruing in favour of
the said employee are transferred back to the
retained earnings in the reporting period in
which the right expires.

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

23. Segment reporting

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 has
been identified as the Chief Operating Decision
Maker which reviews and assesses the financial
performance and makes the strategic decisions.

24. Earnings per share

Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
period. Earnings considered in ascertaining the
Company’s earnings per share is the net profit
for the period. The weighted average number
equity shares outstanding during the period
and all periods presented is adjusted for events,
such as bonus shares, other than the conversion
of potential equity shares that have changed
the number of equity shares outstanding,
without a corresponding change in resources.
For the purpose of calculating diluted earnings
per share, the net profit of loss for the period
attributable to equity shareholders and the
weighted average number of share outstanding
during the period is adjusted for the effects of all
dilutive potential equity shares.

25. Exceptional items

Exceptional items include income/expenses
that are considered to be part of ordinary
activities, however of such significance and
nature that separate disclosure enables the
users of standalone financial statements to
understand the impact in more meaningful
manner. Exceptional Items are identified by
virtue of their size, nature and incidence.

26. Rounding of amounts

All amounts disclosed in the standalone financial
statements and notes have been rounded off
to the nearest lakhs as per the requirement of
Schedule III, unless otherwise stated.

1C NEW AND AMENDED STANDARDS

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.

a. 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 amendments had no impact on the
Company’s standalone financial statements.

b. 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 had no impact on the
Company’s standalone financial statements.

STANDARDS ISSUED BUT NOT YET
EFFECTIVE

There are no new standards which are issued but not
yet effective as on March 31, 2025.

1D SUMMARY OF CRITICAL ESTIMATES,
JUDGEMENTS AND ASSUMPTIONS

The preparation of standalone financial statements
requires the use of accounting estimates which, by
definition, will seldom equal the actual results. The
management also needs to exercise judgment in
applying the Company’s accounting policies. This
note provides an overview of the areas that involved
a higher degree of judgment or complexity, and of
items which are more likely to be materially adjusted
due to estimates and assumptions turning out to
be different than those originally assessed. Detailed
information about each of these estimates and
judgments is included below.

1 Defect Liability provision

DLP (Defect Liability Period) is a specified period
after the completion of a construction project
during which the contractor is responsible for
rectifying any defects or faults that may arise.
Although DLP is project specific, it is generally
varying from 12 months to 24 months depending
on the contractual condition. During the DLP,
the contractor carries out repairs and fix any
defects from his own cost which appear in the
workmanship, so that, at the end of the DLP, all
works are as per specifications of the contract.

Once project is handed over to the customer
and all revenue of the project is recognised, the
Company starts accounting of DLP expenses. At
the time of closing the projects, the Company
makes provision against DLP expenses which is
project specific. Considering the complexity of
the project, project manager recommends the
DLP amount after discussion and approval of BU
head.

Every quarter end expenses incurred are
adjusted against this DLP expenses provision.
Once provision is exhausted, all expenses if any
will be directly booked in the project.

2 Impairment allowance for trade receivables

The impairment provisions for trade receivables
are based on assumptions about risk of default
and expected loss rates. The Company uses
judgement in making these assumptions
and selecting the inputs to the impairment
calculation, based on Company’s past history,
credit risk, existing market conditions as well
as forward looking estimates at the end of
each reporting period. Further, in case of
operationally closed projects, Company makes
specific assessment of the overdue balances
by considering the customer’s historical
payment patterns, latest correspondences with
the customers for recovery of the amounts
outstanding and credit status of the significant
counterparties where available. Accordingly, a
best judgment estimate is made to record the
impairment allowance in respect of operationally
closed projects.

3 Project revenue and costs

Revenue from construction contracts is
recognised based on the stage of completion
determined with reference to the actual costs
incurred up to reporting date on the construction
contract and the estimated cost to complete the
project. The percentage-of-completion method
places considerable importance on accurate

estimates to the extent of progress towards
completion and involve estimates on the scope
of deliveries and services required for fulfilling
the contractually defined obligations. These
significant estimates include total contract
costs, total contract revenues, contract risks,
including technical, political and regulatory
risks, and other judgments. The Company re¬
assesses these estimates on periodic basis and
makes appropriate revisions accordingly.

4 Fair value measurement

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
appropriate valuation techniques. The inputs
for these valuations are taken from observable
sources where possible, but where this is not
feasible, a degree of judgement is required in
establishing fair values. Judgements include
considerations of various inputs including
liquidity risk, credit risk, volatility etc. Changes
in assumptions/judgements about these factors
could affect the reported fair value of financial
instruments. Refer Note 36 of standalone
financial statements for the fair value disclosures
and related sensitivity.

5 Employee benefits

The cost of the defined benefit gratuity plan
and other post-employment leave benefits
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 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
are based on expected future inflation rates.
Refer note 16 and note 35(a, b)

6 Leases

Estimates are required to determine the
appropriate discount rate used to measure
lease liabilities. The Company cannot readily
determine the interest rate implicit in the lease,

therefore, it uses its incremental borrowing rate
(IBR) to measure lease liabilities. The IBR is the
rate of interest that the Company would have
to pay to borrow over a similar term, and with
a similar security, the funds necessary to obtain
an asset of a similar value to the right-of-use
asset in a similar economic environment. The
IBR therefore reflects what the Company ‘would
have to pay’, which requires estimation when
no observable rates are available or when they
need to be adjusted to reflect the terms and
conditions of the lease. The Company estimates
the IBR using observable inputs (such as market
interest rates, bank rates to the Company for
a loan of a similar tenure, etc). The Company
has applied a single discount rate to a portfolio
of leases of similar assets in similar economic
environment with a similar end date

7 Share based payments

Estimating fair value for share-based payment
transactions requires determination of the
most appropriate valuation model, which is
dependent 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, volatility and dividend yield and making
assumptions about them.

8 Contingencies

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 crystalising
or are very difficult to quantify reliably are
treated as contingent liabilities. Such liabilities
are disclosed in the notes but are not recognised.
The cases which have been determined as
remote by the Company are not disclosed.

Contingent assets are neither recognised nor
disclosed in the financial statements unless
when an inflow of economic benefits is probable.

9 Useful lives of property, plant and equipment

Management reviews the useful lives of property,
plant and equipment at least once a year. Such
lives are dependent upon an assessment of both
the technical lives of the assets and also their
likely economic lives based on various internal
and external factors including relative efficiency
and operating costs. This reassessment
may result in change in depreciation and
amortisation expected in future periods.

Nature and Purpose of Reserves
Retained Earnings

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

Capital Reserve

Reserve is primarily created on business combination as per statutory requirement. This reserve is utilised in
accordance with the specific provisions of the Companies Act 2013.

Securities Premium

Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with the
provisions of the Companies Act, 2013.

Effective Portion of Cashflow Hedges

The Company uses hedging instrument to manage its commodity price risk with respect to forecast purchase
of aluminium . To the extent these hedges are effective, the changes in fair value of the hedging instrument is
recognised in the effective portion of cash flow hedges. Amounts recognised in the effective portion of cash flow
hedges is reclassified to the Statement of profit & loss when the hedged item affects the Profit and Loss.

Note 19 : Trade Credits (Contd..)

Acceptances pertain to amount payable towards arrangements wherein banks and financial institutions make direct
payments to suppliers for raw materials and traded goods. The banks and financial institutions are subsequently repaid
by the Company at the due date. Interest in such cases is borne by the Company.

Bill Discounting pertains to amounts payable towards vendor financing entered into with the suppliers. Under this
arrangement, the supplier is eligible to receive payment prior to the expiry of extended credit period by assigning such
invoices to a third-party purchaser bank based on security in the form of an undertaking issued by the Company to the
bank. Further, the third party purchaser bank charges interest to the Company for the extended credit period.

These arrangements are normally settled within 120 days from the date of draw down. The economic substance of these
transactions is determined to be operating in nature and these are recognised as trade credits and disclosed on the face
of the balance sheet. Payments made by banks and financial institutions to the operating vendors are treated as a non¬
cash item and settlement of trade credits by the Company is treated as cash flows from operating activity reflecting the
substance of the payment. The interest borne by the Company has been presented under Finance Cost.

Note 33 : Exceptional Items

Pursuant to a Scheme of Arrangement between Bajaj Electricals Limited (“Demerged Company”) and Bajel Projects
Limited (“Resulting Company”) and their respective shareholders ("Scheme") as approved by National Company Law
Tribunal’s (NCLT) Order dated order June 8, 2023, stamp duty needs to be paid on demerger as per Maharashtra Stamp
Act, 1958 as amended by Maharashtra Stamp (Amendement and Validation) Act, 2017. Further, pursuant to scheme
of demerger, transfer fees is payable on transfer of leasehold land from Demerged Company to Resulting Company.
Accordingly, provision of H768.04 lakhs was recorded in previous year towards the stamp duty and transfer fees. The
same was disclosed in exceptional items.

Note 35 (a) : Defined Benefit Plan

Disclosure of defined benefit plans are as given below :

A. Gratuity :

The Company has a defined benefit gratuity plan in India (Funded) for its employees, which requires contribution
to be made to a separately administered fund.

The gratuity benefit payable to the employees of the Company is greater of the two : (i) The provisions of the
Payment of Gratuity Act, 1972 or (ii) The Company’s gratuity scheme as described below.

Note 37: Financial risk management objectives and policies

The Company''s principal financial liabilities comprises of trade payables, trade credits, borrowings, lease liabilities and
other financial liabilities. The Company''s principal financial assets include trade receivables, investments, cash and cash
equivalents, other bank balances and other financial assets that are derived directly from the operations. The Company''s
risk management is carried out by the management under the policies approved of the Board of Directors that help in
identfication, measurement, mitigation and reporting all risk associated with the activities of the Company. The Board
of Directors reviews and agrees policies for managing each of these risks, which are summaried below:

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual
obligations. Credit risk encompasses the direct risk of default, the risk of deterioration of creditworthiness as well as
concentration risks. The Company is exposed to credit risk from its operating activities mainly in relation to trade
and other receivables and bank deposits.

Trade and other receivables

Trade and other receivables of the Company are typically unsecured and credit risk is managed through credit
approvals and periodical monitoring of the creditworthiness of customers to which the Company grants credit
terms.

The Company undertake projects for government institutions (including local bodies) and private institutional
customers. The credit concentration is more towards government institutions. These projects are normally of
long term duration of two to three years. Such projects normally are regular tender business with the terms and
conditions agreed as per the tender. These projects are generally fully funded by the government of India through
Rural Electrification Corporation, Power Finance Corporation, and Asian Development Bank etc. The Company
enters into such projects after careful consideration of strategy, terms of payment, past experience etc.

In case of private institutional customers, before tendering for the projects Company evaluate the creditworthiness,
general feedback about the customer in the market, past experience, if any with customer, and accordingly
negotiates the terms and conditions with the customer.

The Company assesses its trade and other receivables for impairment at the end of each reporting period. In
determining whether an impairment loss should be recorded in profit or loss, the Company makes judgements
as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from
such trade and other receivables. In respect of trade receivables the Company has a provisioning policy that is
commensurate to the expected losses. The provisioning policy is based on past experience, customer creditability,
and also on the nature and specifics of business especially in the engineering and projects division. In case of
engineering projects, the Company also provides on more case-to-case basis, since they are large projects in
individuality.

Note 37: Financial risk management objectives and policies (Contd..)

Bank deposits

The Company maintains its cash and bank balances with credit worthy banks and financial institutions and
reviews it on an on-going basis. Moreover, the interest-bearing deposits are with banks and financial institutions of
reputation, good past track record and high-quality credit rating. Hence, the credit risk is assessed to be low. The
maximum exposure to credit risk as at March 31, 2025 and March 31, 2024 is the carrying value of such cash and cash
equivalents and deposits with banks as shown in note 5, 10 and 11 of the financials.

B) Liquidity Risk

The Company has a central treasury department, which is responsible for maintaining adequate liquidity in the
system to fund business growth, capital expenditures, as also ensure the repayment of financial liabilities. The
department obtains business plans from business units including the capex budget, which is then consolidated
and borrowing requirements are ascertained in terms of long term funds and short-term funds. Considering the
peculiar nature of EPC business, which is very working capital intensive, treasury maintains flexibility in funding
by maintaining availability under committed credit lines in the form of fund based and non-fund based (Letter of
Credit and Bank Guarantee) limits.

The limits sanctioned and utilised are then monitored monthly, fortnightly and daily basis to ensure that mismatches
in cash flows are taken care of, all operational and financial commitments are honoured on time and there is proper
movement of funds between the banks from cashflow and interest arbitrage perspective.

Maturities of financial liabilities

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

(C) Market Risk

Market risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to
changes in market prices. It comprises three main components: currency risk, interest rate risk, and other price risks
such as commodity price risk.

The Company aims to minimise the impact of currency and commodity price risks through the use of derivative
financial instruments. These instruments are used in accordance with the Company’s Risk Management Policies,
which are approved by the Board of Directors. These policies provide written guidelines for the use of financial
derivatives to hedge currency and commodity risks. The Company does not engage in derivative trading for
speculative purposes.

Note 37: Financial risk management objectives and policies (Contd..)

The Company is primarily exposed to financial risks arising from changes in foreign currency exchange rates and
commodity prices. To manage these exposures, the Company enters into various derivative financial instruments,
including:

- foreign currency forward contracts to hedge the exchange rate risk arising from USD-linked purchase contracts

- Commodity Over the Counter (OTC) derivative contracts to hedge the price risk for base metal such as
Aluminium.

(i) Foreign currency risk

The Company’s functional currency is Indian Rupees (INR). The Company operates in the global market and is
therefore exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect
to the US Dollar (''USD''), Kenyan Shillings (‘KES’), Zambian Kwacha (‘ZMW’) and West African CFA Franc (‘XOF’).
Volatility in exchange rates also affects the cost of raw materials, primarily in relation to USD linked purchase
contracts.

(a) Foreign currency risk exposure:

The Company''s exposure to foreign currency risk at the end of the reporting period expressed in INR, are
as follows :

Note 37: Financial risk management objectives and policies (Contd..)

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
becauseof changes in market interest rates. In case of short term borrowings, the interest rate is fixed in a
large number of cases. Hence, interest rate risk is assessed to be low. Accordingly, the sensitivity / exposure to
change in interest rate is insignificant.

(iii) Commodity Price risk

The Company undertakes turnkey EPC projects, which involve procuring equipment and materials often linked
to commodity prices such as steel, copper, aluminium, and zinc. This exposes the Company to commodity
price risk.

To mitigate these risks, the Company employs several strategies:

- Contractual arrangements such as variable price purchase orders, where hedging may be performed by
vendors;

- Direct hedging of base metal exposure (e.g., aluminium) using OTC derivative contracts linked to London
Metal Exchange (LME) prices.

(D) Derivative Instruments and Hedge Accounting

Hedging commodity is based on procurement schedule and price risk. Commodity is undertaken as a risk offsetting
exercise and depending upon market conditions, hedges may extend beyond the financial year.

The Company has a well defined hedging policy approved by Board of Directors of the Company, which partially
takes care of the commodity price fluctuations and minimizes the risk.

Note 38: Capital Management
Objectives of Company''s capital management

The Board policy is to maintain a strong capital base so as to mainain investor, creditor and market confidence and
to sustain future development of the business. The Board of directors monitors the return on capital employed. The
Company manages capial risk by maintaining sound / optimal capital stucture through monitoring of financial ratios on
a monthly basis and implements capital structure improvement plan when necessary. The Company uses debt ratio as
a capital management index and calculates the ratio as Net debt divided by total equity. Net debt and total equity are
based on the amounts stated in the financial statements.

Debt ratio is 0.21 of the Company as on the balance sheet date.

Note 39: Segment reporting

The Company will be primarily engaged in the business of power transmission and power distribution, which in terms
of Ind AS 108 is a ''Operating Segments'', constitutes a single reporting sement which is also reviewed by the Chief
Operating Decision Maker (CODM).

1) Segment Revenue :

The amount of revenue from external customers broken down by location if the customers is shown in table below :-

Note 42. Commitments and contingencies (Contd..)

i) These represent legal claims filed against the Company by various parties and these matters are in litigation.
Management has assessed that in all these cases the outflow of resources embodying economic benefits is
not probable.

ii) GST matters under dispute pertain to dispute regarding discrepancies between E-way bill and delivery challan.

iii) Income tax matters in last year pertain to matter regarding allowance of TDS credits.

b. Commitments

i. Estimated amounts of contracts remaining to be executed in capital account (net of capital advances) is
H5,476.93 lakhs (March 31, 2024 - 240.62 lakhs).

ii. The Company is carrying provision of H104.68 lakhs (March 31, 2024 - H 5.42 lakhs) towards forseeable losses in

relation to certain projects where the cost estimated to complete the project has significantly exceeded the
cost expected at the time of bidding on account of:¬
- Delay in awarding the project

- Increase in metal prices

Note 43: Disclosures of revenue from contracts with customers

The disclosures as required for revenue from contracts with customers are as given below

(i) Disaggregation of revenue

Disaggregation of the Company’s revenue from contracts with customers and reconciliation of amount of revenue
recognised in the statement of profit and loss with the contracted price is as given below.

The Company executes the work as per the terms and agreements mentioned in the contracts. The Company
receives payments from the customers based on the milestone achievement and billing schedule as established in
the contracts.

Contract assets are initially recognised for revenue earned from supply of materials and erection services provided
when the performance obligation is met. Upon achievement and acceptance of milestones mentioned by the
customer, the amounts recognised as contract assets are reclassified to trade receivables.

Contract liabilities are related to payments received in advance of performance under the contract and billing in
excess of contract revenue recognised. Contract liabilities are recognised as revenue when the Company satisfies
the performance obligation under the contract.

(iii) Performance obligations

Information about the Company''s performance obligations is summarised below:

The performance obligations is the supply of materials and erection services. The supply of materials and erection
services are promised goods and services which are not individually distinct. Hence both of them are counted as
a single performance obligation under the contract. The satisfaction of this performance obligation happens over
time, as the performance or enhancement of the obligation is controlled by the customer. Also, the performance of
the obligation creates an asset without any alternative use to the customer. The Company uses the input method
to determine the progress of the satisfaction of the performance obligation and accordingly recognises revenue.

The standalone selling price of the performance obligation is determined after taking the variable consideration
and significant financing component .

Note 44: Leases

The Company takes on lease, storage places at various EPC sites to store the inventories which are used for construction.
These leases are generally short term in nature, with very few contracts having a tenure of 1-2 years. Further, the Company
has few guest houses, residential premises and office premises and IT assets also on leases which generally for a longer
period ranging from 2-5 years.

The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. Upon adoption of Ind AS
116, the Company applied a single recognition and measurement approach for all leases for which it is the lessee, except
for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments
and right-of-use assets representing the right to use the underlying assets, on the commencement of the lease. There
are several lease contracts that include extension and termination options. 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 leases which the Company enters, does not have any variable payments. The lease rents are
fixed in nature with gradual escalation in lease rent.

Apart from the above, the Company also has various leases which are either short term in nature or the assets which are
taken on the leases are generally low value assets. Lease payments on short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis over the lease term.

The Company has determined leasehold lands also as right of use assets and hence the same has been classified from
property, plant and equipment to right of use assets.

For movement of right of use assets, Refer note 3
For movement of lease liability, Refer note 3.

For significant judgements used for accounting right of use assets and lease liabilities, Refer note 1D(6)

For new leases added during the year, lease liabilities have been measured using incremental borrowing rate of 9.35%
For maturity analysis of lease liabilities, refer note 37(B)(ii)

Note 47: Other statutory information

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

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

iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

Note 47: Other statutory information (Contd..)

v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

vi) The Company has not any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961.

vii) The Company has not granted any loans or advances in nature of loans to promoters, directors and KMPseither
severally or jointly with any other person during the year ended March 31, 2025 and March 31, 2024

viii) The Company has not been declared wilful defaulter by any bank, financial institution, government or government
authority.

ix) The Company has not revalued its property, plant and equipment (including right-to-use assets) or intangible
assets during the year ended March 31, 2025 and March 31, 2024.

x) There are no amounts which are required to be transferred to Investor Education and Protection Fund.

xi) The Company is maintaining its books of accounts in electronic mode and these books of accounts are accessible
in India at all times and the backup of these books of accounts have been kept in servers located physically in India.

xii) The Company has been sanctioned working capital limits in excess of H5 crores from banks and financial institurions
on the basis of security of current assets of the Company. The quarterly returns filed by the Company with such
banks & financial institutions are in agreement with books of accounts of the Company.

xiii) The Company do not have any transactions/balances with companies struck off under Section 248 of Companies
Act, 2013 or Section 560 of the Companies Act, 1956 except as stated below.

Note 48: Employee stock options :

As per the Scheme of Arrangement between Bajaj Electricals Limited (“Demerged Company”) and Bajel Projects
Limited (“Resulting Company/ Company”) and their respective shareholders under Sections 230 to 232 of Act (“Demerger
Scheme”) the Company has implemented the Bajel Special Purpose Employees Stock Option Scheme 2023 (“Special
Purpose ESOP Scheme”) in accordance with the SEBI (Share Based Employee Benefits) Regulations, 2014, read with
Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (“SEBI
SBEB Regulations”).

Note 49: Audit Trail

The Company has used accounting softwares i.e. privileged access management tool (PAM) for maintaining 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 certain changes made, if any, using priviliged / admin rights.

Note 50: Business Combination
Demerger of Companies

During the previous year, Hon’ble National Company Law Tribunal, Mumbai Bench ("NCLT") had approved the Scheme
of Arrangement between Bajaj Electricals Limited “Demerged Company”) and Bajel Projects Limited (“Resulting
Company”) and their respective shareholders ("Scheme"). Further on July 5, 2023, the Company received a certified true
copy of the order dated June 8, 2023 ("Order") passed by the Hon''ble NCLT approving the Scheme, which was filed with
the Registrar of Companies (ROC), on August 1, 2023. The company intimated BSE and NSE on August 25, 2023 that
the scheme shall become operative on September 1, 2023 and accordingly, as per clause 1.8 of the Scheme, this date i.e.
September 1, 2023, is the ''Effective Date'' of the Scheme. Accordingly, financials statements for the year ended March 31,
2024 had prepared by considering the impact of demerger.

Upon the Scheme becoming effective 11,51,01,953 equity shares of Face Value of H2 each were issued to the shareholders
of demerged company.

Accordingly, the Company had accounted for the demerger under the pooling of interest method retrospectively for all
periods presented as prescribed in Ind AS 103 Business Combinations of entities under common control.

Note 51: Comparative Information

The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them
comparable, in accordance with amendments to Schedule III.

The Company has reclassified following for the year ended March 31, 2025 and accordingly regrouped the figures for the
year ended March 31, 2024.

i) Crop compensation receivable has been reclassed from other non-current assets of H786 lakhs and other current
assets of H39 lakhs to other non-current financial assets and other current financial assets respectively.

ii) Provision for onerous contracts and Defect liability period of H46.9 lakhs and 458.61 lakhs respectively, has been
relcassed from other current financial liabilities to Provisions.

iii) Assignment charges directly allocable to projects of H802.44 lakhs has been reclassed from other expenses to
erection and subcontracting expenses

iv) Cost of materials consumed and purchase of stock-in-trade of H16,190.58 lakhs and H68,788.32 lakhs respectively,
have been reclassed under ''Cost of materials consumed (including project bought outs)''

Note 52: Events after the reporting period

The Company has evaluated subsequent events from the balance sheet date through May 22, 2025, the date at which
the financial statements were available to be issued, and accordingly, other than appointment of Mr.Nitesh Bhandari
as the Chief Financial Officer w.e.f. May 01, 2025 in place of Mr.Binda Misra, there are no other material items to disclose.

As per our report attached of even date

For S R B C & CO LLP For and on behalf of the Board of

ICAI Firm Registration No. 324982E/E300003 directors of Bajel Projects Limited
Chartered Accountants

Shekhar Bajaj

Chairman- Non Executive
DIN:00089358
Mumbai, May 22, 2025

per Pushkar Sakhalkar Rajesh Ganesh Maneck Davar

Partner Managing Director and CEO Chairman - Audit Committee

Membership No. 160411 DIN: 07008856 DIN: 01990326

Mumbai, May 22, 2025 Mumbai, May 22, 2025 Mumbai, May 22, 2025

Ajay Suresh Nagle Nitesh Bhandari

Executive Director & Chief Financial Officer

Company Secretary Mumbai, May 22, 2025

DIN: 00773616
Mumbai, May 22, 2025

---

Mar 31, 2024

18. Provisions, contingent liabilities and contingent assets

A. Provisions

A provision is recognised if

• the Company has present legal or constructive obligation as a result of an event in the past;

• it is probable that an outflow of resources will be required to settle the obligation; and

• the amount of the obligation has been reliably estimated.

Provisions are measured at the management''s best estimate of the expenditure required to settle the obligation at the end of the reporting period. If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

If the Company has a contract that is onerous, the present obligation under the contract is recognised and measured as a provision.

However, before a separate provision for an onerous contract is established, the Company recognises any impairment loss that has occurred on assets dedicated to that contract. An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot avoid because it has the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the contract (i.e., both incremental costs and an allocation of costs directly related to contract activities).

B. Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the

control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

A contingent liability recognised in a business combination is initially measured at its fair value. Subsequently, it is measured at the higher of the amount that would be recognised in accordance with the requirements for provisions above or the amount initially recognised less, when appropriate, cumulative amortisation recognised in accordance with the requirements for revenue recognition.

C. Contingent assets

A contingent asset is a possible asset 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 entity. A contingent asset is not recognised but disclosed where an inflow of economic benefit is probable.

19. Employee benefits

A. Short-term obligations

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in the same period in which the employees renders the related service and are measured at the amounts expected to be paid when the liabilities are settled.

Retirement benefit in the form of provident fund is a defined contribution plan. The Company has no obligation , other than the contribution payable to the provident fund. The Company recognises contribution payable to the provident fund scheme as an expense, when an employee renders the related services. If the Contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognised as an asset to the extent that the prepayment will lead to a reduction in future payment or a cash refund.

B. Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in the statement of profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

C. Post-employment obligations

The Company operates the following postemployment schemes

(a) defined benefit plans - Gratuity

(b) defined contribution plans - Provident fund (RPFC Contributions), superannuation and pension

Defined benefit plans:

The liability or asset recognised in the balance sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets excluding non-qualifying asset (reimbursement right). The defined benefit obligation is calculated annually by actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss. Remeasurement gains and losses arising from experience adjustments

and changes in actuarial assumptions are recognised in the period inwhich they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Insurance policy held by the Company from insurers who are related parties are not qualifying insurance policies and hence the right to reimbursement is recognised as a separate asset under other noncurrent and/or current assets as the case may be.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined contribution plans:

In case of all employees, the Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. Such contributions are accounted for as employee benefit expense when they are due. Defined contribution to superannuation fund is being made as per the scheme of the Company. Defined contribution to Employees Pension Scheme 1995 is made to Government Provident Fund Authority whereas the contributions for National Pension Scheme is made to Stock Holding Corporation of India Limited.

D. Share based payment

The Company operates an equity settled, employee share based compensation plan, under which the Company receives services from employees as consideration for equity shares of the Company. Equity settled share based payment to employees and other providing similar services are measured at fair value of the equity instrument at grant date.

The fair value of the employee services received in exchange for the grant of the options is determined by reference to the fair value of the options as at the Grant Date and is recognised as an ''employee benefits expense'' with a corresponding increase in equity. The total expense is recognised over the vesting period which is the period over which the applicable vesting condition is to be satisfied. The total amount to be expensed is determined by reference to the fair value of the options granted excluding the impact of any service vesting conditions.

At the end of each year, the entity revises its estimates of the number of options that are expected to vest based on the service vesting conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

If at any point of time after the vesting of the share options, the right to the same expires (either by virtue of lapse of the exercise period or the employee leaving the Company), the fair value of the options accruing in favour of the said employee are written back to the retained earnings in the reporting period in which the right expires.

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

20. Segment reporting

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 has been identified as the Chief Operating Decision Maker which reviews and assesses the financial performance and makes the strategic decisions.

21. Dividends

The Company recognises a liability to pay dividend to equity holders when the distribution is authorised and is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity. Interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors.

22. Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company''s earnings per share is the net profit for the period. The weighted average number equity shares outstanding during the period and all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating

diluted earnings per share, the net profit of loss for the period attributable to equity shareholders and the weighted average number of share outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

1C NEW AND AMENDED STANDARDS

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 1 April 2023. The Company applied for the firsttime these amendments.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Company''s financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures

The amendments have had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s financial statements

STANDARDS ISSUED BUT NOT YET EFFECTIVE.

There are no new standards which are issued but not yet effective as on March 31,2024.

ID. SUMMARY OF CRITICAL ESTIMATES, JUDGEMENTS AND ASSUMPTIONS.

1. Defect Liability provision

DLP (Defect Liability Period) is a specified period after the completion of a construction project during which the contractor is responsible for rectifying any defects or faults that may arise. Although DLP is project specific, it is generally varying from 12 months to 24 months depending on the contractual condition. During the DLP, the contractor carries out repairs and fix any defects from his own cost which appear in the workmanship, so that, at the end of the DLP, all works are as per specifications of the contract.

Once project is handed over to the customer and all revenue of the project is recognised, the company starts accounting of DLP expenses. At the time of closing the projects from POCM of revenue recognition, the company makes provision against DLP expenses which is project specific. In general, the company makes provision of 0.25% of the project value. Considering the complexity of the project, project manager recommends higher or lower DLP amount after discussion and approval of BU head.

Every quarter end whatever expenses incurred in the project is adjusted against this DLP expenses provision. Once provision is exhausted, all expenses if any will be directly booked in the project.

2. Impairment allowance for trade receivables

The Company makes allowances for doubtful accounts receivable using a simplified approach which is a dual policy of an ageing based provision and historical / anticipated customer experience. Management believes that this simplified model closely represents the expected credit loss model to be applied on financial assets as per Ind AS 109. Further, in case of operationally closed projects, Company makes specific assessment of the overdue balances by considering the customer''s historical payment patterns, latest correspondences with the customers for recovery of the amounts outstanding and credit status of the significant counterparties where available. Accordingly, a best judgment estimate is made to record the impairment allowance in respect of operationally closed projects.

3. Project revenue and costs

Revenue from construction contracts is recognised based on the stage of completion determined with reference to the actual costs incurred up to reporting date on the construction contract and the estimated cost to complete the project. The percentage-of -completion method places considerable importance on accurate estimates to the extent of progress towards completion and may involve estimates on the scope of deliveries and services required for fulfilling the contractually defined obligations. These significant estimates include total contract costs, total contract revenues, contract risks, including technical, political and regulatory risks, and other judgments. The Company re-assesses these estimates on periodic basis and makes appropriate revisions accordingly.

4. Fair value measurement

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 appropriate valuation techniques. The inputs for these valuations are taken from observable sources where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of various inputs including liquidity risk, credit risk, volatility etc. Changes in assumptions/ judgements about these factors could affect the reported fair value of financial instruments. Refer Note 35 of financial statements for the fair value disclosures and related sensitivity.

5. Employee benefits

The cost of the defined benefit gratuity plan and other post-employment leave benefits 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 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 are based on expected future inflation rates. Refer note 20 and note 34(a, b)

6. Leases

Estimates are required to determine the appropriate discount rate used to measure lease liabilities. The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ''would have to pay'', which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs (such as market interest rates,

bank rates to the Company for a loan of a similar tenure, etc). The Company has applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date

7. Share based payments

The Company initially measures the cost of cash-settled transactions with employees using a binomial model to determine the fair value of the liability incurred. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent 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, volatility and dividend yield and making assumptions about them.

8. For judgements relating to contingent liabilities, refer Note 41(a).

Nature and Purpose of Reserves Retained Earnings

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

Capital Reserve

Reserve is primarily created on business combination as per statutory requirement. This reserve is utilised in accordance with the specific provisions of the Companies Act 2013

Securities Premium

Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with the provisions of the Companies Act, 2013.

Share options outstanding account

The fair value of the equity-settled share based payment transactions is recognised in Statement of Profit and Loss with corresponding credit to Employee Stock Options Outstanding Account.

Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques

Level 1- Quoted (unadjusted) market prices in active markets for identical assets and liabilities

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

Level 3- Valuation techniques for which the lowest level of input that is significant to the fair value measurement is unobservable.

Note 36: Financial risk management objectives and policies

The Company''s principal financial liabities comprises of trade payables, trade credits, lease liabilities and other financial liabilities. The Company''s principal financial assets include trade receivables, cash and cash equivalents, other bank balances and other financial assets that are derived directly from the operations. The Company''s risk management is carried out by the management under the policies approved of the Board of Directors that help in identification, measurement, mitigation and reporting all risk associated with the activities of the Company. The Board of Directors reviews and agrees policies for managing each of these risks, which are summaried below:

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations. Credit risk encompasses the direct risk of default, the risk of deterioration of creditworthiness as well as concentration risks. The Company is exposed to credit risk from its operating activities mainly in relation to trade and other receivables and bank deposits.

Trade and other receivables

Trade and other receivables of the Company are typically unsecured and credit risk is managed through credit approvals and periodical monitoring of the creditworthiness of customers to which the Company grants credit terms. The Company undertake projects for government institutions (including local bodies) and private institutional customers. The credit concentration is more towards government institutions. These projects are normally of long term duration of two to three years. Such projects normally are regular tender business with the terms and conditions agreed as per the tender. These projects are fully funded by the government of India through Rural Electrification Corporation, Power Finance Corporation, and Asian Development Bank etc. The Company enters into such projects after careful consideration of strategy, terms of payment, past experience etc.

In case of private institutional customers, before tendering for the projects Company evaluate the creditworthiness, general feedback about the customer in the market, past experience, if any with customer, and accordingly negotiates the terms and conditions with the customer.

The Company assesses its trade and other receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in profit or loss, the Company makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from such trade and other receivables. In respect of trade receivables the Company has a provisioning policy that is commensurate to the expected losses. The provisioning policy is based on past experience, customer creditability, and also on the nature and specifics of business especially in the engineering and projects division. In case of engineering projects, the Company also provides on more case-to-case basis, since they are large projects in individuality.

The maximum exposure to credit risk as at March 31,2024 and March 31,2023 is the carrying value of such trade and other receivables as shown in note 5 and 8 of the financial statements.

Bank deposits

The Company maintains its cash and bank balances with credit worthy banks and financial institutions and reviews it on an on-going basis. Moreover, the interest-bearing deposits are with banks and financial institutions of reputation, good past track record and high-quality credit rating. Hence, the credit risk is assessed to be low. The maximum exposure to credit risk as at March 31,2024 and March 31,2023 is the carrying value of such cash and cash equivalents and deposits with banks as shown in note 6, 11 and 12 of the financials.

B) Liquidity Risk

The Company has a central treasury department, which is responsible for maintaining adequate liquidity in the system to fund business growth, capital expenditures, as also ensure the repayment of financial liabilities. The department obtains business plans from business units including the capex budget, which is then consolidated and borrowing requirements are ascertained in terms of long term funds and short-term funds. Considering the peculiar nature of EPC business, which is very working capital intensive, treasury maintains flexibility in funding by maintaining

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 three types of risk: currency risk, interest risk and other price risk such as commodity risk.

(i) 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 operates in the global market and is therefore exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar (''USD''), , Kenyan Shillings (''KES''), Zambian Kwacha (''ZMW'') and West African CFA Franc (''XOF''). Exposure is largely in exports receivables and Imports payables arising out of trade in the normal course of business. As these commercial

(ii) 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. In case of short term borrowings, the interest rate is fixed in a large number of cases. Hence, interest rate risk is assessed to be low. Accordingly, the sensitivity / exposure to change in interest rate is insignificant.

(iii) Commodity Price risk

The Company bids for and executes EPC projects on a turnkey basis. EPC projects entail procurement of various equipment and materials which may have direct or indirect linkages to commodity prices like steel, copper, aluminium, zinc etc. Accordingly, the Company is exposed to the price risk on these commodities. To mitigate the risk of commodity prices, the Company relies on contractual provisions like fixed price purchase order, semivariable price purchase order, wherein hedging contract is entered into by vendor. However, there are certain risks related to commodity prices for which company is in the process of developing hedging policy.

Note 37: Capital Management Objectives of Company''s capital management

The Board policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board of directors monitors the return on capital employed. The Company manages capital risk by maintaining sound / optimal capital structure through monitoring of financial ratios on a monthly basis and implements capital structure improvement plan when necessary. The Company uses debt ratio as a capital management index and calculates the ratio as Net debt divided by total equity. Net debt and total equity are based on the amounts stated in the financial statements.

Debts ratio is not computed as there is no debt on the Company as on the balance sheet date.

Note 38: Segment reporting

The Company will be primarily engaged in the business of power transmission and power distribution, which in terms of Ind AS 108 is a ''Operating Segments'', constitutes a single reporting segment which is also reviewed by the Chief Operating Decision Maker (CODM).

Notes:-

1. As the future liability for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to individual is not ascertainable and therefore not included above

2. The Independent Non-Executive Directors are paid remuneration by way of sitting fees. The Company pays sitting fees at the rate of Rs.1,00,000 for meeting of the Board and Rs.50,000 for meeting of Audit, NRC. The amount paid to them by way of sitting fees during current year is Rs.65.50 lakh

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31 March, 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March, 2023: INR Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Note 41. Commitments and contingencies (Contd..)

iv) There are certain corporate and performance guarantees issued by the demerged company (Bajaj Electricals Ltd.) on behalf of the company which are in the process of being transferred to the company pursuant to demerger. The open exposure as on March 31,2024 is H 14,101.96 lakhs.

b. Commitments

i. Estimated amounts of contracts remaining to be executed in capital account (net of capital advances) is H 240.62 lakhs (March 31,2023 - NIL).

ii. The Company is carrying provision of H 5.42 lakhs (March 31,2023 - H 147.99 lakhs) towards foreseeable losses in

relation to certain projects where the cost estimated to complete the project has significantly exceeded the cost expected at the time of bidding on account of:- Delay in awarding the project

- Increase in metal prices

Note 42: Disclosures of revenue from contracts with customers

The disclosures as required for revenue from contracts with customers are as given below

Note 42: Disclosures of revenue from contracts with customers (Contd..)

The Company executes the work as per the terms and agreements mentioned in the contracts. The Company receives payments from the customers based on the milestone achievement and billing schedule as established in the contracts. Contract assets are initially recognised for revenue earned from supply of materials and erection services provided when the performance obligation is met. Upon achievement and acceptance of milestones mentioned by the customer, the amounts recognised as contract assets are reclassified to trade receivables.

Contract liabilities are related to payments received in advance of performance under the contract and billing in excess of contract revenue recognised. Contract liabilities are recognised as revenue when the Company satisfies the performance obligation under the contract.

(iii) Performance obligations

Information about the Company''s performance obligations is summarised below:

The performance obligations is the supply of materials and erection services. The supply of materials and erection services are promised goods and services which are not individually distinct. Hence both of them are counted as a single performance obligation under the contract. The satisfaction of this performance obligation happens over time, as the performance or enhancement of the obligation is controlled by the customer. Also, the performance of the obligation creates an asset without any alternative use to the customer. The Company uses the input method to determine the progress of the satisfaction of the performance obligation and accordingly recognises revenue.

The standalone selling price of the performance obligation is determined after taking the variable consideration and significant financing component.

v) Assets recognised from the costs to obtain or fulfil a contract

The incremental costs of obtaining a contract with a customer are recognised as an asset if the Company expects to recover them. The Company incurs costs such as bank guarantee charges and insurance charges. The Company amortizes the same over the period of the contract.

Note 43: Leases

The Company takes on lease, storage places at various EPC sites to store the inventories which are used for construction. These leases are generally short term in nature, with very few contracts having a tenure of 1-2 years. Further, the Company has few guest houses, residential premises and office premises also on leases which generally for a longer period ranging from 2-5 years.

The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Upon adoption of Ind AS 116, the Company applied a single recognition and measurement approach for all leases for which it is the lessee, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets, on the commencement of the lease. There are several lease contracts that include extension and termination options. 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 leases which the Company enters, does not have any variable payments. The lease rents are fixed in nature with gradual escalation in lease rent.

Apart from the above, the Company also has various leases which are either short term in nature or the assets which are taken on the leases are generally low value assets (e.g. printers). Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

Note 44: Corporate Social Responsibility

As per Section 135(5) of the Companies Act, every Company which is required to engage in CSR, must ensure CSR spending with reference to the average net profits made during the immediately preceding three financial years, or where the concerned company has not completed a period of three financial years since its incorporation, then with reference to the immediately preceding financial year.

The Company was incorporated on January 19, 2022. In FY 2022-23, the Company had no operations and it was part of demerged company (Refer Note 45). As the Company had no profits in FY 2022-23 and since demerged company has already complied with CSR provisions including profits of resulting Company, the Company has assessed that it is not required to do CSR spending as per Section 135(5) of the Companies Act, 2013 for FY 2023-24.

Note 45: Business Combination Demerger of Companies

During the current period, Hon''ble National Company Law Tribunal, Mumbai Bench ("NCLT”) has approved the Scheme of Arrangement between Bajaj Electricals Limited "Demerged Company”) and Bajel Projects Limited ("Resulting Company”) and their respective shareholders ("Scheme”). Further on July 5, 2023, the Company received a certified true copy of the order dated June 8, 2023 ("Order”) passed by the Hon''ble NCLT approving the Scheme, which was filed with the Registrar of Companies (ROC), on August 1,2023. The company intimated BSE and NSE on August 25, 2023 that the scheme shall become operative on September 1, 2023 and accordingly, as per clause 1.8 of the Scheme, this date i.e. September 1, 2023, is the ''Effective Date'' of the Scheme. Accordingly, these financials statements for the period ended March 31,2024 have been prepared by considering the impact of demerger.

Upon the Scheme becoming effective 11,51,01,953 equity shares of Face Value of Rs.2 each were issued to the shareholders of demerged company.

Note 47: Other statutory information

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

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

iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the period.

iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

vi) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

vii) The quarterly returns/ statements filed by the Company with the banks/ financial institutions for working capital

borrowings are in agreement with the books of accounts.

viii) The Company has not granted any loans or advances in nature of loans to promoters, directors and KMPs either severally or jointly with any other person during the period ended March 31,2024 and March 31,2023

ix) The Company has not been declared wilful defaulter by any bank, financial institution, government or government authority.

x) The Company has not revalued its property, plant and equipment (including right-to-use assets) or intangible assets during the period ended March 31,2024 and March 31,2023.

xi) The Company has complied with the relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and the Companies Act, 2013 for the above transactions and the transactions are not violative of the Prevention of Money-Laundering Act, 2002 (15 of 2003)

xii) The Company do not have any transactions/balances with companies struck off under Section 248 of Companies Act, 2013 or Section 560 of the Companies Act 1956 except as stated below.

Note 49: Audit Trail

The Company has used accounting softwares i.e. privileged access management tool (PAM) for maintaining recording audit trail (edit log) facility and the same has operated throughout the year except for the period April 01,2023 to June 04, 2023 and from October 08, 2023 to November 12, 2023 for all relevant transactions recorded in the software or whether feature being tampered during the said period in the absence of log of changes to certain audit features.

Note 50: Comparative Information

The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them comparable, in accordance with amendments to Schedule III. The Company has been incorporated on January 19, 2022 and hence pursuant to the provisions of Section 2(41) of the Companies Act, 2013 read with the Rule 40 of the Companies (Incorporation) Rule 2014, the first financial commenced from the date of incorporation ie January 19, 2022 and ended on March 31,2023, both days inclusive. Accordingly, figures reported for March-23 are for the period from January 19, 2022 to March 31,2023 and hence not comparable with the current year.

Note 51: Events after the reporting period

The Company has evaluated subsequent events from the balance sheet date through May 23, 2024, the date at which the financial statements were available to be issued, and determined that there are no material items to disclose.

As per our report attached of even date

For S R B C & CO LLP For and on behalf of the Board of

ICAI Firm Registration No. 324982E/E300003 directors of Bajel Projects Limited

Shekhar Bajaj

Chairman- Non Executive DIN: 00089358

per Vikram Mehta Rajesh Ganesh Maneck Davar

Partner Managing Director and CEO Chairman - Audit Committee

Membership No.105938 DIN: 07008856 DIN: 01990326

Mumbai, May 23, 2024

Ajay Nagle Binda Misra

Executive Director & Company Secretary Chief Financial Officer DIN: 00773616