2.18 Provisions, contingent liabilities and contingent assets

Provision is recognized in the accounts when there is present obligation as a result of a past event(s) and it is probable that an
outflow of resources will be required and a reliable estimate can be made. Provisions are not discounted to their present value
and are determined based on the best estimate required to settle the obligation at the reporting date.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognized nor disclosed in the financial statements.

2.19 Earnings per Share

Basic earnings per share are computed by dividing the net profit for the year attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the
net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity
equivalent shares outstanding during the year, except where the results would be anti-dilutive.

2.20 Borrowing costs

Borrowing costs include exchange difference arising from foreign currency borrowings to the extent they are regarded as an
adjustment to the interest cost. Borrowing costs that are attributable to the acquisition or construction of a qualifying asset are
capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get
ready for intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.
Capitalisation of borrowing costs is suspended during the extended period in which active development is interrupted.
Capitalisation of borrowing costs is ceased when substantially all the activities necessary to prepare the qualifying asset for its
intended use or sale are complete. Other borrowing costs are charged to statement of profit and loss as and when incurred.

2.21 Cash and Cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks. The company considers all highly liquid investments
with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of
cash to be cash equivalents.

2.22 Government Grants and Subsidies

The Company is not entitled to any subsidy from government authorities in respect of manufacturing units located in specified
regions: Grants in the nature of subsidy which are nonrefundable are credited to the Statement of Profit and Loss, on accrual
basis, where there is reasonable assurance that the Company will comply with all the necessary conditions attached to them.
Grants in the nature of subsidy which are refundable are shown as Liabilities in the Balance Sheet.

2.23 Measurement of EBITDA

The Company has opted to present earnings before interest (finance cost), tax, depreciation and amortization (EBITDA)as a
separate line item on the face of the Statement of Profit and Loss for the year. The Company measures EBITDA on the basis of
profit/ (loss) from continuing operations.

2.24 Statement of Cash Flow

Cash flows are reported using the indirect method whereby the profit before tax is adjusted for the effect of the transactions of a
non-cash nature, any deferrals or accruals of past and future operating cash receipts or payments and items of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of
the company are segregated for presentations in the statement of cash flows, cash and cash equivalents does not includes cash
credit and overdraft facility

2.25 Proposed Dividend

The Company recognizes a liability to pay dividend when the distribution is authorized and the distribution is no longer at the
discretion of the Company i.e. when the dividend distribution is being approved by the shareholders. A corresponding amount is
recognized directly in equity.

Nature & Purpose of Reserves
Retained Earnings

Retained earnings represents cumulative profits of the company and effects of remeasurement of defined benefit obligations,
This resevres can be utilised in accordance with the provisions of Companies Act, 2013,

Securities Premium

Securities Premium was created on issue of shares, This reserve is being utilised in accordance with provisions of the
Companies Act, 2013,

Notes :

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

(b) Utilisation of borrowings availed from banks and financial institutions:

The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for
which such loans were taken. In respect of the term loans which were taken in the previous year, those were applied in
the respective year for the purpose for which the loans were obtained.

A) Nature of Securities

I. Term Loan From Bank of Baroda - Acquisition of Plant & Machinery

Secured by way of first and exclusive hypothecation charge on the plant & machinery of the Company financed out of
the said term loan.

II. Loan Against Property From Citizen Credit Co-operative Bank Ltd

The loan is secured by mortgage of land and industrial Unit ie.immovable property situated at S No. 134, Hissa No. 17A,
Pajar Talav Pada, Village- Chandrapada, Nagigaon (East), Vasai, Palghar. The said loan has been closed in the month of

May 2025.

III. Guranteed Emergency Credit Line (GECL) loan From Citizen Credit Co-operative Bank Ltd

The GECL term loan is secured by first charge by way of guarantee provided under the Emergency Credit Line Guarantee
Scheme (ECLGS) of the National Credit Guarantee Trustee Company (NCGTC) and second charge by way of
hypothecation of stocks, debtors and movable fixed assets, together with mortgage of the immovable property situated at
S. No. 134, Hissa No. 17A, Pajar Talav Pada, Village Chandrapada, Nagigaon (East), Vasai, Palghar. The said loan has
been closed in the month of May 2025.

IV. Term Loan from Citizen Co-operative Bank Ltd - Vehicle Loan

Secured by way of hypothecation of respective vehicle.

V. Term Loan From Union Bank of India.

a) Acquisition of Factory Land

The term loan is secured by mortgage of land and industrial unit situated at S. No. 134, Hissa No. 17A, Pajar Talav Pada,
Village Chandrapada, Nagigaon (East), Vasai, Palghar.

b) Factory Construction & Renovation

The term loan is secured by exclusive charge on the entire present and future plant & machinery and furniture &
fixtures of the Company.

c) Factory Construction & Renovation

The term loan is secured by exclusive charge on the entire present and future plant & machinery and furniture &
fixtures of the Company.

d) Setting up Capacitor Manufacturing Unit

The term loan is secured by exclusive charge on the entire present and future plant & machinery and furniture &
fixtures of the Company.

e) Purchase of Machinaries & Equipments

The term loan is secured by exclusive charge on the entire present and future plant & machinery and furniture &
fixtures of the Company.

Note 36 - Impact of Labour Codes

On November 21, 2025, the Government of India notified provisions of the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions
Code, 2020, (‘Labour Codes’) which consolidate twenty-nine existing labour laws into a unified framework governing
employee benefits during employment and post-employment.These Codes have been made effective from November
21,2025; however, the corresponding rules thereunder are yet to be notified. The Labour Codes, amongst other things
introduces changes, including a uniform definition of wages and enhanced benefits relating to leave. The Company
continues to monitor the developments pertaining to Labour Codes and will evaluate impact if any on the measurement
of the employee benefits liability.

Note 37 - Funding Arrangement

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
("Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or
invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any
fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly
lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 38 - Segment Information

i) Business Segment

a. The business segment has been considered as the primary segment.

b. The Company’s primary business segments are reflected based on principal business activities, the nature of service,
the differing risks and returns, the organization structure and the internal financial reporting system.

c. The Company’s primary business comprises of manufacturing & supply of re-active power compensation systems,
harmonic filters & other engineering goods and since it is the only reportable segment as envisaged in Accounting
Standard 17. ‘Segment Reporting’. Accordingly, no separate disclosure for SegmentReporting to be made in the
financial statements of the Company.

ii) Geographical Segment

A geographical segment is a distinguishable component of an enterprise that is engaged in providing products or
services within a particular economic environment and that is subject to risks and returns that are different from those
of components operating in other economic environments. The company provides products or services only through
single establishment. Accordingly, no separate disclosure for Segment Reporting to be made in the financial statements
of the Company.

Note 39 - Other Additional Information

Information with regard to the other additional information and other disclosures to be disclosed by way of notes to
statement of profit and loss as specified in the Schedule III of the Companies Act, 2013 is either ‘nil’ or ‘not applicable’ to
the Company for the year.

Note 40 - Others

Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year
classification / disclosure.

V) Details of Benami property:

No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami

VI) Wilful Defaulter

The Company has not been declared as a wilful defaulter by any bank or financial institution or government or any government

VII) The company has no borrowings from banks or financial institutions on the basis of security of current assets.

30) i) Contingent liability in respect of capital contracts remaining to be executed - Rs. 25.84 (PY Rs. 25.84)

ii) Other Contingent liabilities- Rs. 0.77 in respect of demand outstanding at TDSCPC (PY 0.36)

iii) Company has not provided any corporate guarantee.

31) Debit and Credit balances are subject to confirmation.

32) In the opinion of the Board of Directors, the current assets have value on realization in ordinary course of business at least equal to the amount at which they are stated except as otherwise stated.

35) Disclosure regarding loans given, investments made and guarantee given pursuant to section 186(4) of the Companies Act, 2013:

a) Loan Given: Nil

b) Investment Made: Nil

c) Guarantee Given: Nil

36) Segment Reporting

The Company does not have more than one business segment and hence segment reporting is not applicable.

40) Figures have been rounded off to the nearest rupee and those in brackets represent corresponding figures for the previous year.

41) The company has not incurred any Financial Lease obligation during the current financial year however the company has paid Rs. 14.13 Lacs (P.Y. Rs. 14.85 Lacs) during the current financial year towards office rent which would be classified as operating lease.

42) Additional regulatory information required by Schedule III of Companies Act, 2013:a) Details of Benami property:

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

b) Utilization of borrowed funds and share premium:

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

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

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

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

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

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

c) Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

d) Compliance with approved scheme(s) of arrangements:

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

e) The Company has not been declared as a wilful defaulter by any bank or financial institution or government or any government authority.

f) Struck off Companies:

Details of relationship with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of the Companies Act, 1956

g) Undisclosed income:

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

h) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

i) The figures have been rounded off to the nearest lacs of rupees upto two decimal places. The figure 0.00 wherever stated represents value less than '' 1000/-.

Notes referred to above form part of the accounts as per our report of even date attached.

12. Provisions and Contingencies

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

13. Earnings per Share

The Basic and Diluted Earnings per Share (“EPS”) is computed by dividing the profit after tax for the year by weighted average number of equity shares outstanding during the year.

14. Borrowing Cost

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs, if any, directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized. All other borrowing costs are expensed in the period they occur.

15. Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits with banks and other short-term highly liquid investments where the original maturity is three months or less.

16. Government Grants and Subsidies

The Company is not entitled to any subsidy from government authorities in respect of manufacturing units located in specified regions: Grants in the nature of subsidy which are nonrefundable are credited to the Statement of Profit and Loss, on accrual basis, where there is reasonable assurance that the Company will comply with all the necessary conditions attached to them. Grants in the nature of subsidy which are refundable are shown as Liabilities in the Balance Sheet.

17. Measurement of EBITDA

The Company has opted to present earnings before interest (finance cost), tax, depreciation and amortization (EBITDA)as a separate line item on the face of the Statement of Profit and Loss for the year. The Company measures EBITDA on the basis of profit/ (loss) from continuing operations.

18. Segment Reporting

i) Business Segment

a. The business segment has been considered as the primary segment.

b. The Company’s primary business segments are reflected based on principal business activities, the nature of service, the differing risks and returns, the organization structure and the internal financial reporting system.

c. The Company’s primary business comprises of manufacturing & supply of re-active power compensation systems, harmonic filters & other engineering goods and since it is the only reportable segment as envisaged in Accounting Standard 17. ‘Segment Reporting’. Accordingly, no separate disclosure for Segment Reporting to be made in the financial statements of the Company.

ii) Geographical Segment

A geographical segment is a distinguishable component of an enterprise that is engaged in providing products or services within a particular economic environment and that is subject to risks and returns that are different from those of components operating in other economic environments. The company provides products or services only through single establishment. Accordingly, no separate disclosure for Segment Reporting to be made in the financial statements of the Company.

19. The Company has recognized deferred tax arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and is capable of reversal in one or more subsequent period(s) in compliance with Accounting standard (AS 22) - Accounting for Taxes on income.

20. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 are provided as under for the year 2023-24, to the extent the Company has received intimation from the “Suppliers” regarding their status under the Act.t

31.03.2016

(i) Principal amount and the interest due thereon remaining unpaid to each supplier at the end of each accounting year (but within due date as per the MSMED Act) Principal amount due to micro and small enterprise Rs. 269.10 Lacs (PY Rs. 245.25 Lacs) and Interest due on above- Nil.

(ii) Interest paid by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along-with the amount of the payment made to the supplier beyond the appointed day during the period - Nil

(iii) Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding interest specified under the Micro, Small and Medium Enterprises Act, 2006 - Nil

(iv) The amount of interest accrued and remaining unpaid at the end of each accounting year - Nil

(v) Interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprises - Nil

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

21. Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with current year’s classification.

30) i) Contingent liability in respect of capital contracts remaining to be executed - Rs. 25.84 (PY Rs. 2.70)

ii) Other Contingent liabilities- Rs. 0.36 in respect of demand outstanding at TDSCPC (PY 0.03)

iii) Company has not provided any corporate guarantee.

31) Debit and Credit balances are subject to confirmation.

32) In the opinion of the Board of Directors, the current assets have value on realization in ordinary course of business at least equal to the amount at which they are stated except as otherwise stated.

33) Earnings per Share (EPS):

The Company has complied with the provisions of AS-20 on Earning per share as notified by the Companies (Accounting Standards) Rules, 2006. The same has been calculated as follows:

34) Micro, Small and Medium Enterprises Development Act, 2006: -

The Company is in the process of compiling information from its suppliers regarding their status under the above act and hence disclosure, if any, of the amount unpaid as at the period end together with the interest paid/payable as required has been to the extent of information available: -

35) Disclosure regarding loans given, investments made and guarantee given pursuant to section 186(4) of the Companies Act, 2013:

a) Loan Given: Nil

b) Investment Made: Nil

c) Guarantee Given: Nil

36) Segment Reporting

The Company does not have more than one business segment and hence segment reporting is not applicable.

37) Related Party Transactions

In accordance with the Accounting Standard 18, the disclosure required is given below: i) List of related parties and relationship (as identified by management)

40) Figures have been rounded off to the nearest rupee and those in brackets represent corresponding figures for the previous year.

41) The company has not incurred any Financial Lease obligation during the current financial year however the company has paid Rs. 14.85 Lacs (P.Y. Rs. 10.81 Lac) during the current financial year towards office rent which would be classified as operating lease.

42) Additional regulatory information required by Schedule III of Companies Act, 2013:

a) Details of Benami property:

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

b) Utilisation of borrowed funds and share premium:

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

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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

c) Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

d) Compliance with approved scheme(s) of arrangements:

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

e) The Company has not been declared as a wilful defaulter by any bank or financial institution or government or any government authority.

f) Struck off Companies:

Details of relationship with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of the Companies Act, 1956

g) Undisclosed income:

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

h) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

i) The figures have been rounded off to the nearest lacs of rupees upto two decimal places. The figure 0.00 wherever stated represents value less than '' 1000/-.

Notes referred to above form part of the accounts as per our report of even date attached.

For N B T & Co For Cospower Engineering Limited

Chartered Accountants

ICAI Firm Reg. No. 140489W

Oswald D''Souza Felix Kadam

Wholetime Director Managing Director

(DIN: - 02711251) (DIN: - 02880294)

Ashutosh Biyani Partner

Membership No. 165017

Place: Mumbai Company Secretary Chief Financial Officer

Dated: 03/06/2024 Mr. Deepam P Shah Mr. Hiren Solanki