Notes to Accounts of Olectra Greentech Ltd.

Mar 31, 2025

3.17 Provisions

A provision is recognized if, as a result of a
past event, the company has a present legal or
constructive obligation that can be estimated
reliably, and it is probable that an outflow of
economic benefits will be required to settle
the obligation. If the effect of the time value of
money is material, provisions are determined
by discounting the expected future cash flows
at a pre-tax rate that reflects current market
assessments of the time value of money and the
risks specific to the liability. Where discounting
is used, the increase in the provision due to
the passage of time is recognized as a finance
cost.

Warranties:

The estimated liability for product warranties
is recorded when products are sold based
on technical evaluation/management''s best
estimate of expenditure required to settle the
possible future warranty claims.

The timing of outflows will vary as and when
warranty claim will arise being typically upto
six years. The Company also has back-to-back
contractual arrangement with its suppliers in
the event that a vehicle fault is proven to be a
supplier''s fault.

3.18 Contingent liabilities & contingent

assets

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. Where
there is a possible obligation or a present
obligation in respect of which the likelihood of
outflow of resources is remote, no provision or
disclosure is made.

Contingent assets are not recognised in the
financial statements. However, contingent
assets are assessed continually and if it is
virtually certain that an inflow of economic
benefits will arise, the asset and related
income are recognised in the period in which
the change occurs.

3.19 Financial instruments

a. Recognition and Initial recognition

The company recognizes financial assets
and financial liabilities when it becomes
a party to the contractual provisions of
the instrument. All financial assets and
liabilities are recognized at fair value
on initial recognition, except for trade
receivables which are initially measured
at transaction price. Transaction costs
that are directly attributable to the
acquisition or issues of financial assets
and financial liabilities that are not at fair
value through profit or loss, are added to
the fair value on initial recognition.

A financial asset or financial liability is
initially measured at fair value plus, for
an item not at fair value through profit
and loss (FVTPL), transaction costs that
are directly attributable to its acquisition
or issue.

b. Classification and Subsequent
measurement

Financial assets:

On initial recognition, a financial asset is
classified as measured at

- amortised cost;

- FVTPL

Financial assets are not reclassified
subsequent to their initial recognition,
except if and in the period the
company changes its business model
for managing financial assets.
A financial asset is measured at amortised
cost if it meets both of the following
conditions and is not designated as at
FVTPL:

- the asset is held within a business
model whose objective is to hold
assets to collect contractual cash
flows; and

- the contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments
of principal and interest on the
principal amount outstanding.

All financial assets not classified as
measured at amortised cost as described
above are measured at FVTPL. On
initial recognition, the company may
irrevocably designate a financial asset
that otherwise meets the requirements to
be measured at amortised cost at FVTPL
if doing so eliminates or significantly
reduces an accounting mismatch that
would otherwise arise.

Financial assets: Business model

assessment

The company makes an assessment
of the objective of the business model
in which a financial asset is held at a
portfolio level because this best reflects
the way the business is managed and
information is provided to management.
The information considered includes:

- the stated policies and objectives
for the portfolio and the operation
of those policies in practice. These
include whether management s
strategy focuses on earning
contractual interest income,
maintaining a particular interest
rate profile, matching the duration

of the financial assets to the duration
of any related liabilities or expected
cash outflows or realising cash flows
through the sale of the assets;

- how the performance of the portfolio
is evaluated and reported to the
company''s management;

- the risks that affect the performance
of the business model (and the
financial assets held within that
business model) and how those risks
are managed;

- how managers of the business
are compensated - e.g. whether
compensation is based on the fair
value of the assets managed or the
contractual cash flows collected;
and

- the frequency, volume and timing
of sales of financial assets in prior
periods, the reasons for such sales
and expectations about future sales
activity.

Transfers of financial assets to third
parties in transactions that do not qualify
for derecognition are not considered
sales for this purpose, consistent with the
company''s continuing recognition of the
assets.

Financial assets that are held for trading
or are managed and whose performance
is evaluated on a fair value basis are
measured at FVTPL.

Financial assets: Assessment whether
contractual cash flows are solely
payments of principal and interest

For the purposes of this assessment,
''principal'' is defined as the fair value of
the financial asset on initial recognition.
''Interest is defined as consideration for
the time value of money and for the credit
risk associated with the principal amount
outstanding during a particular period
of time and for other basic lending
risks and costs (e.g. liquidity risk and
administrative costs), as well as a profit
margin.

In assessing whether the contractual cash
flows are solely payments of principal
and interest, the company considers the
contractual terms of the instrument. This
includes assessing whether the financial
asset contains a contractual term that
could change the timing or amount of
contractual cash flows such that it would
not meet this condition. In making this
assessment, the company considers:

- contingent events that would change
the amount or timing of cash flows;

- terms that may adjust the contractual

coupon rate, including variable
interest rate features;

- prepayment and extension features;
and

- terms that limit the compan/ s claim
to cash flows from specified assets
(e.g. non- recourse features).

A prepayment feature is consistent
with the solely payments of principal
and interest criterion if the prepayment
amount substantially represents unpaid
amounts of principal and interest on the
principal amount outstanding, which
may include reasonable additional
compensation for early termination of the
contract.

Additionally, for a financial asset acquired
at a significant discount or premium to
its contractual par amount, a feature
that permits or requires prepayment at
an amount that substantially represents
the contractual par amount plus accrued
(but unpaid) contractual interest (which
may also include reasonable additional
compensation for early termination) is
treated as consistent with this criterion if
the fair value of the prepayment feature is
insignificant at initial recognition.

Financial_assets: Subsequent

measurement and gains and losses

Financial assets at FVTPL: These assets are
subsequently measured at fair value. Net
gains and losses, including any interest
or dividend income, are recognised in
profit or loss.

Financial assets at amortised cost: These
assets are subsequently measured at
amortised cost using the effective interest
method. The amortised cost is reduced
by impairment losses. Interest income,
foreign exchange gains and losses and
impairment are recognised in profit or
loss. Any gain or loss on derecognition is
recognised in profit or loss.

Financial liabilities:

Classification, Subsequent measurement
and gains and losses

Financial liabilities are classified as
measured at amortised cost or FVTPL. A
financial liability is classified as at FVTPL
if it is classified as held- for- trading,
or it is a derivative or it is designated
as such on initial recognition. Financial
liabilities at FVTPL are measured at fair
value and net gains and losses, including
any interest expense, are recognised in
profit or loss. Other financial liabilities
are subsequently measured at amortised
cost using the effective interest method.
Interest expense and foreign exchange
gains and losses are recognised in profit
or loss. Any gain or loss on derecognition
is also recognised in profit or loss.

c. Derecognition
Financial assets

The company derecognises a financial
asset when the contractual rights to the
cash flows from the financial asset expire,
or it transfers the rights to receive the
contractual cash flows in a transaction
in which substantially all of the risks and
rewards of ownership of the financial
asset are transferred or in which the
company neither transfers nor retains
substantially all of the risks and rewards
of ownership and does not retain control
of the financial asset.

If the company enters into transactions
whereby it transfers assets recognised on
its balance sheet, but retains either all or
substantially all of the risks and rewards
of the transferred assets, the transferred
assets are not derecognised.

Financial liabilities

The company derecognises a financial
liability when its contractual obligations
are discharged or cancelled, or expire

The company also derecognises a
financial liability when its terms are
modified and the cash flows under
the modified terms are substantially
different. In this case, a new financial
liability based on the modified terms is
recognised at fair value. The difference
between the carrying amount of the
financial liability extinguished and the
new financial liability with modified
terms is recognised in profit.

d. Offsetting

Financial assets and financial liabilities
are offset and the net amount presented
in the balance sheet when and only when,
the company currently has a legally
enforceable right to set off the amounts
and it intends either to settle them on a
net basis or to realise the asset and settle
the liability simultaneously.

e. Impairment

The company recognises loss allowances
for expected credit losses on financial
assets measured at amortised cost;
At each reporting date, the company
assesses whether financial assets carried
at amortised cost and debt securities at
fair value through other comprehensive
income (FVTOCI) are credit impaired.
A financial asset is ''credit- impaired''
when one or more events that have a
detrimental impact on the estimated
future cash flows of the financial asset
have occurred.

Evidence that a financial asset is
credit- impaired includes the following
observable data:

- significant financial difficulty of the
borrower or issuer;

- the restructuring of a loan or
advance by the company on
terms that the company would not
consider otherwise;

- it is probable that the borrower will
enter bankruptcy or other financial
reorganisation; or

- the disappearance of an active
market for a security because of
financial difficulties.

The company measures loss allowances
at an amount equal to lifetime expected
credit losses, except for the following,
which are measured as 12 month
expected credit losses:

- debt securities that are determined
to have low credit risk at the
reporting date; and

- other debt securities and bank
balances for which credit risk (i.e.
the risk of default occurring over
the expected life of the financial
instrument) has not increased
significantly since initial recognition.

Loss allowances for trade receivables are
always measured at an amount equal to
lifetime expected credit losses.

Lifetime expected credit losses are the
expected credit losses that result from all
possible default events over the expected
life of a financial instrument.

12-month expected credit losses are the
portion of expected credit losses that
result from default events that are possible
within 12 months after the reporting date
(or a shorter period if the expected life of
the instrument is less than 12 months).

In all cases, the maximum period
considered when estimating expected
credit losses is the maximum contractual
period over which the company is
exposed to credit risk.

When determining whether the credit
risk of a financial asset has increased
significantly since initial recognition and
when estimating expected credit losses,
the company considers reasonable
and supportable information that is
relevant and available without undue
cost or effort. This includes both
quantitative and qualitative information

and analysis, based on the compan/ s
historical experience and informed credit
assessment and including forwardÂ¬
looking information.

Measurement of expected credit
losses

Expected credit losses are a
probability-weighted estimate of credit
losses. Credit losses are measured as
the present value of all cash shortfalls
(i.e. the difference between the cash
flows due to the company in accordance
with the contract and the cash flows
that the company expects to receive).
Presentation of allowance for expected
credit losses in the balance sheet
Loss allowances for financial assets

measured at amortised cost are deducted
from the gross carrying amount of the
assets.

Write-off

The gross carrying amount of a financial
asset is written off (either partially or in
full) to the extent that there is no realistic
prospect of recovery. This is generally the
case when the company determines that
the trade receivable does not have assets
or sources of income that could generate
sufficient cash flows to repay the amounts
subject to the write- off. However,
financial assets that are written off could
still be subject to enforcement activities
in order to comply with the company''s
procedures for recovery of amounts due.

Note:- The Company had entered into a Memorandum of Understanding (MOU) with M.L.R. Motors
Limited (MLR) in the year 2017. As per the terms and conditions of MOU, capital advance amount of
Rs. 10.00 Crores was paid towards acquisition of land for setting up electric bus project. As MLR had
failed to honour its obligations and to take appropriate measures / steps to implement the provisions of
MOU in terms of completing the acquisition of land etc., inter-alia, the company had asked for refund
of aforesaid advance paid to them. Instead of refunding the advance, allegedly MLR had allotted shares
for the aforesaid advance by creating back dated allotment of shares, which the Company has refused
to accept and the matter has been referred to Hon''ble NCLT for declaring the alleged allotment of shares
for the value of Rs. 10.00 Crores to the Company as null and void ana to direct the MLR to refund the
advance amount along with interest.

During the current year the Petition filed by the Company under Section 59 of the Companies Act, 2013
against M.L.R. Motors Limited ("MLR") for recovery of Rs. 10.00 Crores (which was paid as a Capital
Advance) has been dismissed by the Hon ''ble National Company Law Tribunal, Hyderabad Bench
("NCLT") vide its order dated 14.12.2023 with an observation that the subject matter of the petition is to
be settled through Arbitration. The Hon''ble NCLT also gave liberty to the Company to represent before
them "if the Arbitral Tribunal decides about the non-arbitral of the subject matter or when the allotment
of shares in favour of the Petitioner is declared illegal or wrong by Arbitral Tribunal''.

The Company is in the process of proceeding with the Arbitration for recovery in due course. (Contd.)

A. Term loan from Financial Institutions:

Term loan consists of loan taken from Rural Electrical Corporation Limited in December 2020
and April 2022 amounting Rs. 232.60 Lakhs and Rs.1,753.00 lakhs respectively, which was
sanctioned for procurement of TSRTC project buses. The loan of Rs. 232.60 lakhs carries an
interest rate of 9.32% repayable in 72 equal installments and Rs.1,753.00 lakhs carries an
interest rate of 9.07% repayable in 45 equal installments secured by:

i. First charge by way of hypothecation of all 40 E-buses, covered in the project owned by
SSISPL-OGL-BYD Consortium in respect of which the loan was sanctioned.

ii. First charge by way of hypothecation/ assignment of all present and future book debts,
bills, receivables, monies including bank accounts, claims of all kinds and stocks including
consumables and general stores in respect of the project of 40 E-buses.

The aforementioned loan was sanctioned for procurement of TSRTC project buses by SSISPL-
OGL-BYD Consortium, Joint Venture of the Company. As per back to back arrangement
between REC, OGL and SSISPL-OGL-BYD Consortium(JV), the loan was sanctioned to the
Company which inturn was passed on to the JV carrying the same interest rate being charged
by REC and the same is reflected as "Loan to Related Parties" in Note -7.

B. Term Loans from banks:

SBI has sanctioned Term loan of Rs.500 Crs to the company for establishing Greenfield EV
manufacturing unit at Seethramapur village, Shabad Mandal, Telangana. The bank has
disbursed part of Term loan till 31st March 2025. Currently the above loan carries an interest
rate of 9.35% p.a. i.e. 0.45% above 6M MCLR. The above Term loan repayable in 20 equal
quarterly instalments of Rs.25 Crs commencing from Q3 of FY2026 to Q2 of FY2031 after a
moratorium of 2 quarters i.e. Q1 of FY2026 & Q2 of FY2026. The above Term loan is secured
Iâ¢

vi. Cash Collateral of Rs.1.76 Crs

vii. 2nd Charge to SBI on movable fixed assets of E-Bus division both present and future and
2nd charge on seetharampur project land for insulator division''s limits with SBI.

E Bus Division Lenders- SBI.Yes Bank , ICICI & IDBI:

i. Paripassu First Charge on current assets of the company''s E-bus division for all the lenders
in consortium both present and future.

ii. Pari passu second charge on the Movable Fixed Assets of E-Bus Division both present &
future for all the E-bus division lenders excluding e Buses (supplied to PMPML 150 e buses
with 5 spare buses) with 2nd charge on seetharampur project land for all E bus division
lenders.

iii. Pari passu second charge on all moveable and immovable assets of Insulator division
both present and future.

iv. Exclusive Hypothecation of 150 Electric Buses with respect to PMPML contract for e-Bus
division to SBI.

Note: Miscellaneous expenses includes amount spent for Corporate Social Responsibility

Revenue expenditure charged to statement of profit and loss in respect of Corporate Social
Responsibility (CSR) activities undertaken during the year ended March 31,2025 was Rs.162
Lakhs as compared to Rs. 106.10 Lakhs for the year ended March 31,2024.

Note :- (a)

The Income Tax Department has raised demands on the Company in respect of past years on
account of various disallowances, the year wise break up of which is as under:

Note :- (b)

The Company has issued an Irrevocable Undertaking with Indemnification Obligation in favour
of REC Limited (the Lender), as a condition for the sanction of a Letter of Comfort (LOC) facility.
This facility has been utilized to open Letters of Credit (LCs) for procuring components required for
manufacturing electric buses, which are ultimately supplied to designated Authorities.

- Rs.20150 lakhs LOC facility has been extended from the Rupee Term loan sanctioned to Evey
Trans (MSR) Private Limited; additional LOC for Rs.7050 lakhs extended under Evey Trans (MUM)
Private Limited.

- The company is financially obligated to repay the facility (with interest) if buses are not supplied
and hypothecated within 6 months of LOC issuance.

- The outstanding LOC exposure as of 31st March 2025 is shown as a contingent liability.

d) Terms and conditions of transactions with related parties:

The transactions with related parties are made on terms equivalent to those that prevail in
arm''s length transactions.

34 Segment information

Ind AS 108 "Operating Segment" ("Ind AS 108") establishes standards for the way that
public business enterprises report information about operating and geographical segments
and related disclosures about products and services, geographic areas, and major customers.
Based on the "management approach" as defined in Ind AS 108, Operating segments and
geographical segments are to be reported in a manner consistent with the internal reporting
provided to the Chief Operating Decision Maker (CODM).The CODM evaluates the Company''s
performance and allocates resources on overall basis.

The Company has two reportable segments during the year, i.e. Composite Polymer Insulators,
e vehicle division which includes e- buses & e trucks.

The segment revenue, profitability, assets and liabilities are as under:

36 Gratuity

The Company provides its employees with benefits under a defined benefit plan, referred to as
the "Gratuity Plan". The Gratuity Plan entitles an employee, who has rendered at least five years
of continuous service, to receive 15 days salary for each year of completed service (service of
six months and above is rounded off as one year) at the time of retirement/exit.

The following tables summarize the components of net benefit expense recognised in the statement
of profit or loss and the amounts recognised in the balance sheet for the plan:

Reconciliation of opening and closing balances of the present value of the defined benefit
obligations:

37 Dues to Micro, small and medium enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated
26 August 2008 which recommends that the Micro and Small Enterprises should mention in
their correspondence with its customers the Entrepreneurs Memorandum Number as allocated
after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable
to such enterprises as at March 31,2025 has been made in the financial statements based on
information received and available with the Company. Further in view of the management, the
impact of interest, if any, that may be payable in accordance with the provisions of the Micro,
Small and Medium Enterprises Development Act, 2006 (''The MSMED Acf) is not expected to be
material. The Company has not received any claim for interest from any supplier.

38 Leases

Where the Company is a lessee:

The Company has elected not to apply the requirements of Ind AS 116 Leases to short term
leases of all assets that have a lease term of 12 months or less and leases for which the
underlying asset is of low value. The lease payments associated with these leases amounting
to INR 241.12 Lakhs (INR 326.52 Lakhs Previous Year) are recognised as an expense on a
straight-line basis over the lease term.

39 Earnings per share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity
holders by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by
the weighted average number of equity shares outstanding during the year plus the weighted
average number of equity shares that would be issued on conversion of all the dilutive potential
equity shares into equity Shares.

The following table sets out the computation of basic and diluted earnings per share:

Fair value hierarchy

The carrying amount of the current financial assets and current financial liabilities are considered
to be same as their fair values, due to their short term nature. In absence of specified maturity
period, the carrying amount of the non-current financial assets and non-current financial
liabilities such as security deposits (assets) are considered to be same as their fair values.

The fair value of mutual funds is classified as Level 2 in the fair value hierarchy as the fair value
has been determined on the basis of Net Assets Value (NAV) declared by the mutual fund.
The fair value of Financial derivative contracts has been classified as Level 2 in the fair value
hierarchy as the fair value has been determined on the basis of mark-to-market valuation
provided by the bank, The corresponding changes in fair value of investment is disclosed as
''Other Income''.

41 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other
payables. The main purpose of these financial liabilities is to finance and support Company s
operations. The Company''s principal financial assets include inventory, trade and other
receivables, cash and cash equivalents and refundable deposits that derive directly from its
operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior
management oversees the management of these risks. The Board of Directors reviews and agrees
policies for managing each of these risks, which are summarized below.

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises two types of risk: interest rate risk
and other price risk, such as commodity risk. Financial instruments affected by market risk include
loans and borrowings and refundable deposits. The sensitivity analysis in the following sections
relate to the position as at March 31, 2025 and March 31,2024. The sensitivity analyses have
been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest
rates of the debt.

The analysis excludes the impact of movements in market variables on: the carrying values of
gratuity and other post retirement obligations; provisions.

The below assumption has been made in calculating the sensitivity analysis:

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

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Company''s exposure to the risk of
changes in market interest rates relates primarily to the Company''s short-term debt obligations
with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of variable rate
borrowings. The Company does not enter into any interest rate swaps.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates
on that portion of loans and borrowings affected. With all other variables held constant, the
Company''s profit before tax is affected through the impact on floating rate borrowings, as
follows:

b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The credit risk arises principally from its operating
activities (primarily trade receivables) and from its investing activities, including deposits with
banks and financial institutions and other financial instruments.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a
continuous basis to whom credit has been granted after obtaining necessary approvals for
credit. The collection from the trade receivables are monitored on a continuous basis by the
receivables team.

The Company establishes an allowance for credit loss that represents its estimate of expected
losses in respect of trade and other receivables based on the past and the recent collection trend.
The maximum exposure to credit risk as at reporting date is primarily from trade receivables
amounting to '' 68,930.63 lakhs (March 31,2024: '' 51,105.84 lakhs). The movement in
allowance for credit loss in respect of trade and other receivables during the year was as follows:

The top customers profile includes sale of e-buses under the Department of Heavy Industries
(DHI) FAME - II frame work/ GCC Contracts to Special Purpose Vehides(SPV''s) formed for
execution of contracts with the STUs and hence the concentration of revenue risk is minimal.

Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks
and financial institutions with high credit ratings assigned by international and domestic credit
rating agencies.

c) Liquidity risk

The Company s objective is to maintain a balance between continuity of funding and flexibility
through the use of bank deposits and loans.

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

42 Capital management

The Company''s policy is to maintain a stable capital base so as to maintain investor, creditor
and market confidence and to sustain future development of the business. Management monitors
capital on the basis of return on capital employed as well as the debt to total equity ratio.

For the purpose of debt to total equity ratio, debt considered is long-term and short-term
borrowings. Total equity comprise of issued share capital and all other equity reserves.

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NOTES FORMING PART OF THE STANDALONE FINANCIAL STATEMENTS

(All amounts in Indian Rupees Lakhs, except share data and where otherwise stated)

44 The Board of Directors have recommended a dividend of Rs 0.40 per share (Face value of

Rs 4/- each) for the year ended March 31, 2025.

45 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 the statutory period.

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

(iv) 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 to or on behalf of the
Ultimate Beneficiaries.

(v) 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.

(vi) The Company is in compliance with the number of layers prescribed under clause (87) of
section 2 of the Companies Act,2013 read with the Companies (Restriction on number of
Layers) Rules, 2017 (as amended).

(vii) The Company does not have any such transaction which is not recorded in the books of
accounts that has been surrendered or disclosed as income during the 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.

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

(ix) The Company does not have any transactions with companies struck off.

46 Prior year comparitives

The figures of the previous year have been regrouped/reclassified, where necessary, to conform

with the current year''s classification.

As per our report of even date attached for and on behalf of the Board of Directors of

for Sarath & Associates Olectra Greentech Limited

Chartered Accountants CIN: L34100TG2000PLC035451

ICAI Firm Registration Number: 005120S

Sd/- Sd/- Sd/-

CA. S. Srinivas K.V. Pradeep P. Rajesh Reddy

Partner Chairman and Managing Director Director

Membership No.: 202471 DIN: 02331853 DIN: 02758291

UDIN: 25202471BMKVVQ7724 _Sd/_{- S}d/_-

Place : Hyderabad B. Sharat Chandra P. Hanuman Prasad

Date : 26th May 2025 Chief Financial Officer Company Secretary

Membership No.: A22525

Mar 31, 2024

3.17 Provisions

A provision is recognized if, as a result of a past event, the company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Warranties:

The estimated liability for product warranties is recorded when products are sold based on technical evaluation/management''s best estimate of expenditure required to settle the possible future warranty claims.

The timing of outflows will vary as and when warranty claim will arise being typically upto

six years. The Company also has back-to-back contractual arrangement with its suppliers in the event that a vehicle fault is proven to be a supplier''s fault.

3.18 Contingent liabilities & contingent

assets

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. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.

3.19 Financial instruments

a. Recognition and Initial recognition

The company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issues of financial assets and financial liabilities that are not at fair value through profit or loss, are added to the fair value on initial recognition.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

b. Classification and Subsequent measurement

Financial assets:

On initial recognition, a financial asset is classified as measured at

- amortised cost;

- FVTPL

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the company changes its business model for managing financial assets. A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

- the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortised cost as described above are measured at FVTPL. On initial recognition, the company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets: Business model assessment

The company makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:

- the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration

of any related liabilities or expected cash outflows or realising cash flows through the sale of the assets;

- how the performance of the portfolio is evaluated and reported to the company''s management;

- the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;

- how managers of the business are compensated - e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

- the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the company''s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, ''principal'' is defined as the fair value of the financial asset on initial recognition. ''Interest is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the company considers the

contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the company considers:

- contingent events that would change the amount or timing of cash flows;

- terms that may adjust the contractual coupon rate, including variable interest rate features;

- prepayment and extension features; and

- terms that limit the compan/ s claim to cash flows from specified assets (e.g. non- recourse features).

A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract.

Additionally, for a financial asset acquired at a material discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is material at initial recognition.

Financial_assets: Subsequent

measurement and gains and losses

Financial assets at FVTPL: These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss.

Financial assets at amortised cost: These assets are subsequently measured at

amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

Financial liabilities:

Classification, Subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held- for- trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.

c. Derecognition Financial assets

The company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

Financial liabilities

The company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

The company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in profit.

d. Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when and only when, the company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

e. Impairment

The company recognises loss allowances for expected credit losses on financial assets measured at amortised cost;

At each reporting date, the company assesses whether financial assets carried at amortised cost and debt securities at fair value through other comprehensive income (FVTOCI) are credit impaired. A financial asset is ''credit- impaired'' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit- impaired includes the following observable data:

- material financial difficulty of the borrower or issuer;

- the restructuring of a loan or advance by the company on terms that the company would not consider otherwise;

- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or

- the disappearance of an active market for a security because of financial difficulties.

The company measures loss allowances at an amount equal to lifetime expected credit losses, except for the following, which are measured as 12 month expected credit losses:

- debt securities that are determined to have low credit risk at the reporting date; and

- other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased Significantly since initial recognition.

Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses.

Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

12-month expected credit losses are the portion of expected credit losses that result from default events that are possible within 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

In all cases, the maximum period considered when estimating expected credit losses is the maximum contractual period over which the company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information

and analysis, based on the compan/ s historical experience and informed credit assessment and including forwardlooking information.

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the company in accordance with the contract and the cash flows that the company expects to receive). Presentation of allowance for expected credit losses in the balance sheet Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the company determines that the trade receivable does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write- off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the company''s rocedures for recovery of amounts due.

B. Working capital loans from Banks:

Working Capital Facilities from Banks carries an interest rate ranging from 7% to 11.90% are

secured by:

Insulator Division Lender- SBI:

i. Exclusive first charge to SBI on current assets of the company pertaining to Insulators division both present and future.

ii. Exclusive first charge to SBI on movable assets of the company both present & future of Insulators Division for insulator division limits with 2nd charge in favour of other e-bus division lenders.

iii. Exclusive first charge to SBI by way of equitable mortgage of factory land & building of the Company with 2nd charge in favour of other e-bus division lenders.

iv. Exclusive charge to SBI by way of equitable mortgage of immovable property of M/s. Megha Fibre Glass Industries Ltd for Insulator Division limits with SBI.

iv. Corporate guarantee given by M/s.Megha Fibre Glass Industries Limited for Insulator Division limits with SBI to the extent of value of Securities offered.

v. Cash Collateral of Rs.1.76 Crs

vi. 2nd Charge to SBI on movable fixed assets of E-Bus division both present and future for insulator division''s limits with SBI.

E Bus Division Lenders- SBI.Yes Bank , ICICI & IDBI:

i. Paripassu First Charge on current assets of the company s E-bus division for all the lenders in consortium both present and future.

ii. Pari passu first charge on the Movable Fixed Assets of E-Bus Division both present & future for all the E-bus division lenders excluding e Buses (supplied to TSRTC 40 buses and PMPML 150 e buses with 5 spare buses) with 2nd charge in favour of working capital limits of insulator division with SBI.

iii. Pari passu second charge on all moveable assets of Insulator division both present and future.

iv. Pari passu second charge on all immoveable assets of Insulator division both present and future.

v. Exclusive Hypothecation of 150 Electric Buses with respect to PMPML contract for e-Bus division to SBI.

d) Terms and conditions of transactions with related parties:

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions.

34 Segment information

Ind AS 108 "Operating Segment" ("Ind AS 108") establishes standards for the way that public business enterprises report information about operating and geographical segments and related disclosures about products and services, geographic areas, and major customers. Based on the "management approach" as defined in Ind AS 108, Operating segments and geographical segments are to be reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM).The CODM evaluates the Company''s performance and allocates resources on overall basis.

The Company has two reportable segments during the year, i.e. Composite Polymer Insulators, e-vehicle division which includes e- buses & e trucks.

37 Dues to Micro, small and medium enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31,2024 has been made in the financial statements based on information received and available with the Company. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (''The MSMED Acf) is not expected to be material. The Company has not received any claim for interest from any supplier.

38 Leases

Where the Company is a lessee:

The Company has elected not to apply the requirements of Ind AS 116 Leases to short term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases amounting to INR 326.52 Lakhs (INR 283.16 Lakhs Previous Year) are recognised as an expense on a straight-line basis over the lease term.

39 Earnings per share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity Shares.

Fair value hierarchy

The carrying amount of the current financial assets and current financial liabilities are considered to be same as their fair values, due to their short term nature. In absence of specified maturity period, the carrying amount of the non-current financial assets and non-current financial liabilities such as security deposits (assets) are considered to be same as their fair values.

The fair value of mutual funds is classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of Net Assets Value (NAV) declared by the mutual fund. The fair value of Financial derivative contracts has been classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of mark-to-market valuation provided by the bank, The corresponding changes in fair value of investment is disclosed as ''Other Income''.

41 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company s operations. The Company''s principal financial assets include inventory, trade and other receivables, cash and cash equivalents and refundable deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company s senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings and refundable deposits. The sensitivity analysis in the following sections relate to the position as at March 31,2024 and March 31,2023. The sensitivity analyses have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt.

The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions.

The below assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31,2024 and March 31,2023.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of variable rate borrowings. The Company does not enter into any interest rate swaps.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The credit risk arises principally from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks and financial institutions and other financial instruments.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by the receivables team.

The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade and other receivables based on the past and the recent collection trend. The maximum exposure to credit risk as at reporting date is primarily from trade receivables amounting to ''51,105.84 lakhs (March 31, 2023: ''62,922.72 lakhs). The movement in allowance for credit loss in respect of trade and other receivables during the year was as follows:

The top customers profile includes sale of e-buses under the Department of Heavy Industries (DHI) FAME - II frame work/ GCC Contracts to Special Purpose Vehicles(SPV''s) formed for execution of contracts with the STUs and hence the concentration of revenue risk is minimal.

Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

c) Liquidity risk

The Company s objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans.

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

42 Capital management

The Company''s policy is to maintain a stable capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors capital on the basis of return on capital employed as well as the debt to total equity ratio.

For the purpose of debt to total equity ratio, debt considered is long-term and short-term borrowings. Total equity comprise of issued share capital and all other equity reserves..

44 Recent Indian Accounting Standards

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) amendment Rules, 2023 dated March 31, 2023 to amend the following Ind AS which are effective from April 01,2023. However, there are no new standards notified during the year.

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

Policies, Changes in accounting Estimates and Errors"

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

The amendments do not have any impact on the standalone financial statements.

(ii) . Disclosure of accounting policies - Amendments to Ind AS 1 "Presentation of

Financials Statements"

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 company has, as per above amendment, disclosed material accounting policies.

(iii) . Deferred Tax related to assets and liabilities arising from a Single transaction -

Amendments to Ind AS 12 ''Income Taxes''

The amendments narrow the scope of the initial recognition exception under Ind AS12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences.

The amendments do not have any impact on the standalone financial statements..

45 The Code on Social Security, 2020 ("Code") received Presidential assent in September 2020. The Code has been published in the Gazette of India. However the related final rules have not yet been issued and the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code and the rules thereunder when they come into effect.

46 The Board of Directors have recommended a dividend of Rs 0.40 per share( Face value of Rs 4/- each) for the year ended March 31,2024..

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 the statutory period.

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

(iv) 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 to or on behalf of the Ultimate Beneficiaries.

(v) 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.

(vi) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act,2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the 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.

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

(ix) The Company does not have any transactions with companies struck off..

48 Prior year comparitives

The figures of the previous year have been regrouped/reclassified, where necessary, to conform

with the current year''s classification.

As per our report of even date attached for and on behalf of the Board of Directors of

for Sarath & Associates Olectra Greentech Limited

Chartered Accountants CIN: L34100TG2000PLC035451

ICAI Firm Registration Number: 005120S

Sd/- Sd/- Sd/-

CA. V.S. Roop Kumar K.V. Pradeep B. Appa Rao

Partner Chairman and Managing Director Director

Membership No.: 213734 DIN: 02331853 DIN: 00004309

UDIN: 24213734BKCAKQ3011 _Sd/_{- S}d/_-

Place : Hyderabad B Sharat Chandra P. Hanuman Prasad

Date : 25th April 2024 Chief Financial Officer Company Secretary

Membership No.: A22525

Mar 31, 2023

The company had entered into an MOU with MLR Motors Private Limited (MLR). As per the terms and conditions of MOU, Capital advance amount of Rs. 1000 lakhs was paid towards acquisition of land for setting up electric bus project. As MLR had failed to honour its obligations and failed to take appropriate measures and steps to implement the provisions of MOU in terms of completing the acquisition of land etc., the company had asked for refund of aforesaid advance paid to them. Instead of refunding the advance, MLR had fraudulently allotted shares for the aforesaid advance by creating back dated allotment of shares, which the Company has refused to accept and the matter has been referred to NCLT for declaring the alleged allotment of shares of the value of Rs. 1,000 lakhs to the company as null and void and direct MLR motors to refund the amount along with Interest. The Company believes that the above advance amount will be realised in due course.

(b) Terms / rights attached to the equity shares

Equity shares of the Company have a par value of '' 4 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

A. Term loan from Financial Institutions:

Term loan consists of loan taken from Rural Electrical Corporation Limited in December 2020 and April 2022 amounting Rs. 232.60 Lakhs and Rs.1,753.00 lakhs respectively, which was sanctioned for procurement of TSRTC project buses. The loan of Rs. 232.60 lakhs carries an interest rate of 9.32% repayable in 72 equal installments and Rs.1,753.00 lakhs carries an interest rate of 9.07% repayable in 45 equal installments secured by:

i. First charge by way of hypothecation of all 40 E-buses, covered in the project owned by SSISPL-OGL-BYD Consortium in respect of which the loan was sanctioned.

ii. First charge by way of hypothecation/ assignment of all present and future book debts, bills, receivables, monies including bank accounts, claims of all kinds and stocks including consumables and general stores in respect of the project of 40 E-buses.

The aforementioned loan was sanctioned for procurement of TSRTC project buses by SSISPL-OGL-BYD Consortium, Joint Venture of the Company. As per back to back arrangement between REC, OGL and SSISPL-OGL-BYD Consortium(JV), the loan was sanctioned to the Company which inturn was passed on to the JV carrying the same interest rate being charged by REC and the same is reflected as "Loan to Related Parties" in Note -7.

B. Vehicle loans from Banks:

The Company has the following 3 vehicle loans:

Vehicle loans of Rs. 22.46 Lakhs & Rs. 8.49 Lakhs taken from Yes Bank on 25-07-2018 repayable in 48 installments from August 2018 to July 2022 and a vehicle loan of Rs.56 Lakhs from Yes Bank on 18-09-2018 repayable in 60 installments from October 2018 to September 2023. These loans are secured by hypothecation of the vehicles for which the loan was taken.

C. Sales tax deferrment loan:

The Company has been granted an interest free sales tax deferrment loan by the Government of Andhra Pradesh. As per the terms of this scheme, the Company has repaid the amount in FY 2022-23.

D. Working facilities from State Bank of India:

Working Capital Facilities from Banks carries an interest rate ranging from 6.5% to 9.40% are secured by:

Insulator Division Lender- SBI:

i. Exclusive first charge to SBI on current assets of the company pertaining to Insulators division both present and future with 2nd charge in favour of e-bus division lenders (SBI,Yes Bank & ICICI).

ii. Exclusive first charge to SBI by way of equitable mortgage of factory land & building of the Company with 2nd charge in favour of other e-bus division lenders.

iii. Exclusive first charge to SBI by way of equitable mortgage of immovable property of M/s Goldstone Technologies Limited for Insulator Division limits with SBI.

iv. Corporate guarantee given by M/s Trinity Infraventures Limited & M/s Goldstone technologies Limited for Insulator Division limits with SBI.

v. 2nd Charge to SBI on movable fixed assets of E-Bus division both present and future for insulator division''s limits with SBI.

E Bus Division Lenders- SBI,Yes Bank & ICICI:

i. Paripassu First Charge on current assets of the company s E-bus division for all the lenders in MBA both present and future

iii. Exclusive Hypothecation of 150 Electric Buses with respect to PMPML contract for e-Bus division to SBI.

34 Segment information

Ind AS 108 "Operating Segment" ("Ind AS 108") establishes standards for the way that public business enterprises report information about operating and geographical segments and related disclosures about products and services, geographic areas, and major customers. Based on the "management approach" as defined in Ind AS 108, Operating segments and geographical segments are to be reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM).The CODM evaluates the Company''s performance and allocates resources on overall basis.

The Company has two reportable segments during the year, i.e. Composite Polymer Insulators and Electric Buses.

36 Gratuity

The Company provides its employees with benefits under a defined benefit plan, referred to as the "Gratuity Plan". The Gratuity Plan entitles an employee, who has rendered at least five years of continuous service, to receive 15 days salary for each year of completed service (service of six months and above is rounded off as one year) at the time of retirement/exit.

The following tables summarize the components of net benefit expense recognised in the statement of profit or loss and the amounts recognised in the balance sheet for the plan:

Reconciliation of opening and closing balances of the present value of the defined benefit obligations:

These sensitivies have been calculated to show the movement in projected benefit obligation in isolation and assuming there are no other changes in market conditions.

37 Dues to Micro, small and medium enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31,2023 has been made in the financial statements based on information received and available with the Company. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (''The MSMED Acf) is not expected to be material. The Company has not received any claim for interest from any supplier.

38 Leases

Where the Company is a lessee:

The Company has elected not to apply the requirements of Ind AS 116 Leases to short term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases amounting to INR 283.16 Lakhs (INR 178.23 Lakhs Previous Year) are recognised as an expense on a straight-line basis over the lease term.

39 Earnings per share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity Shares.

Fair value hierarchy

The carrying amount of the current financial assets and current financial liabilities are considered to be same as their fair values, due to their short term nature. In absence of specified maturity period, the carrying amount of the non-current financial assets and non-current financial liabilities such as security deposits (assets) are considered to be same as their fair values.

The fair value of mutual funds is classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of Net Assets Value (NAV) declared by the mutual fund. The fair value of Financial derivative contracts has been classified as Level 2 in the fair value hierarchy as the fair value has been determined on the basis of mark-to-market valuation provided by the bank, The corresponding changes in fair value of investment is disclosed as ''Other Income''.

41 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support Company s operations. The Company''s principal financial assets include inventory, trade and other receivables, cash and cash equivalents and refundable deposits that derive directly from its operations.

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as commodity risk. Financial instruments affected by market risk include loans and borrowings and refundable deposits. The sensitivity analysis in the following sections relate to the position as at March 31,2023 and March 31,2022. The sensitivity analyses have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt.

The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations; provisions.

The below assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31,2023 and March 31,2022.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of variable rate borrowings. The Company does not enter into any interest rate swaps.

b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The credit risk arises principally from its operating activities (primarily trade receivables) and from its investing activities, including deposits with banks and financial institutions and other financial instruments.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by the receivables team.

The top customers profile includes sale of e-buses under the Department of Heavy Industries (DHI) FAME-II frame work/GCC contracts to Special Purpose Vehicles (SPV''s) formed for execution of contracts with the STUs and hence the concentration of revenue risk is minimal.

Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

c) Liquidity risk

The Company s objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans.

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

42 Capital management

The Company''s policy is to maintain a stable capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors capital on the basis of return on capital employed as well as the debt to total equity ratio.

For the purpose of debt to total equity ratio, debt considered is long-term and short-term borrowings. Total equity comprise of issued share capital and all other equity reserves..

44 Recent Indian Accounting Standards

Ministry of Corporate Affairs (MCA), vide notification dated 31st March, 2023, has made the following amendments to Ind AS which are effective 1st April, 2023:

a. Amendments to Ind AS 1, Presentation of Financial Statements where the companies are now required to disclose material accounting policies rather than their significant accounting policies.

b. Amendments to Ind AS 8, Accounting policies, Changes in Accounting Estimates and Errors where the definition of ''change in account estimate'' has been replaced by revised definition of ''accounting estimate''.

c. Amendments to Ind AS 12, Income Taxes where the scope of Initial Recognition Exemption (IRE) has been narrowed down.

Based on preliminary assessment, the Company does not expect these amendments to have any significant impact on the Company''s financial statements.

45 Exceptional Items

During the previous year, the Company has recognised (a) Rs.255.81 Lakhs towards one time severance cost in Insulators Division and (b) Profit on sale of wholly owned subsidiary of the Company (TF Solar Power Private Limited) to Trinity Infraventures Ltd of Rs.1 Lakhs. Accordingly, the total amount of Rs. 254.81 Lakhs has been considered as "Exceptional Items".

46 The Company has performed a detailed assessment of its liquidity position and the recoverability of the assets as at the balance sheet date and has concluded that based on current indicators of future economic conditions, the carrying value of the assets will be recovered. Management believes that it has fully considered all possible impact of known events in the preparation of the standalone financial results. However, given the effect of the lockdown on the overall economic activity and in particular on the automotive industry, the impact assessment of COVID-19 is a continuing process, given the uncertainties associated with its nature and duration. The Company will continue to monitor any material changes to future economic conditions and the consequent impact on its business, if any, which may be different from those estimated on the date of approval of these financial statements.

47 The Code on Social Security, 2020 ("Code") received Presidential assent in September 2020. The Code has been published in the Gazette of India. However the related final rules have not yet been issued and the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code and the rules thereunder when they come into effect.

48 The Board of Directors have recommended a dividend of Rs 0.40 per share( Face value of Rs 4/- each) for the year ended March 31,2023.

49 the Company has elected to exercise the option permitted under section 115 BAA of the Income Tax Act, 1961, as introduced by the Taxation Laws (Amendment) Ordinance 2019. Accordingly, the Company had recognised Provision for Income Tax and re-measured its Deferred Tax Liabilities based on the rates prescribed in the aforesaid section. The corresponding impact of adopting this option has also been recognised in the Statement of Profit and Loss for the year ended March 31,2022.

50 Other statutory information