Notes to Accounts of Sahasra Electronic Solutions Ltd.

Mar 31, 2025

(xiii) Provisions and Contingent liabilities and Contingent Assets.

The Company recognises a provision when there is a present obligation as a result of past event that probably
requires an outflow of resources and reliable estimates can be made of the amount of obligation. A disclosure
of contingent liability is made when there is possible obligation or a present obligation that will probably
not require outflow of resources or where a reliable estimate of the obligation cannot be made. Where there
is a possible obligation or a present obligation and likelihood of outflow of resources is remote, no provision
or disclosure is made.

Contingent assets are not recognised but disclosed in the financial statements, where economic
inflow is probable.

(xiv) Cash and Cash Equivalents

Cash and Cash Equivalent in the Cash Flow Statement comprises cash on hand, demand deposits with banks
and short-term investments with an original maturity of three months or less from the date of acquisition.

(xv) Earnings Per Share:

i) Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the
equity holders of the company by the weighted average number of ordinary shares outstanding during
the year.

ii) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable
to equity shareholders and the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.

(xvi) Research and Development:

Revenue expenditure on Research and Development is charged as expenses under the head "Research and
Development" in the year in which it is incurred. Capital expenditure incurred on equipment and facilities
that are acquired for research and development activities is capitalised and depreciated according to the
policy followed by the Company.

(xvii) Government Grant/ Interest Subsidy:

Government Grants are recognised where there is reasonable assurance that the grant will be received and
all attached condition will be complied with. Grants related to specific fixed assets are deducted from the
gross value of the concerned assets in arriving at their book values. Investment subsidy/employment
generation subsidy / Interest rate subsidy and other revenue grants are credited to Statement of Profit and
Loss or deducted from the related expenses.

(xviii) Dividend:

Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of declaration by the company''s Board of Directors.

to the short-term maturities of these instruments. Company has adopted Effective Interest Rate Method (EIR) for fair
valuation of long-term borrowings.

Fair Value Hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

37 LEASE

Leases are accounted as per Ind AS 116. At inception of a contract, the entity shall assess whether the contract is, or
contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.

As a Lessee (Assets taken on lease)

The Company recognizes a Right-of-use Asset ("ROU") and a corresponding lease liability for all lease arrangements
in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases.
The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to
use the underlying assets, if applicable. For these short-term and low value leases, the Company recognizes the lease
payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements include options to extend or terminate the lease before the end of the lease term. The
right-of-use assets and lease liabilities include these options when it is reasonably certain that such options would be
exercised.

The company recognises a Right of Use Assets and lease liability at lease commencement date. The Right of use
Asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial cost incurred. The right-of-use assets is
subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted
for any re-measurement of the lease liability. The right-of-use assets is depreciated using the straight-line method
from the commencement date over the shorter of lease term or useful life of right-of-use asset.

Lease liability is measured at the present value of the lease payments that are not paid at the commencement date of
the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. The lease
liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing
the carrying amount to reflect the lease payments made and re measuring the carrying amount to reflect any
reassessment or lease modifications. The Company recognizes the amount of the re-measurement of lease liability
as an adjustment to the right-of-use asset. Where the carrying amount of the right-of-use asset is reduced to zero
and there is a further reduction in the measurement of the lease liability, the Company recognizes any remaining
amount of the re-measurement in statement of profit and loss.

Variable lease payments not included in the measurement of the lease liabilities are expensed to the statement of
profit and loss in the period in which the events or those payments occur.

38 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s activities are exposed to a variety of Financial Risks from its Operations. The key financial risks include
Market risk, Credit risk and Liquidity risk.

(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 mainly three types of risk:, Foreign currency risk,
Interest rate risk and other price risk such as Equity price risk and Commodity Price risk.

(b) Foreign Currency Risk: Foreign currency risk is the risk that the fair value or future cash flows of an exposure will
fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk
arising from foreign currency transactions of imports and exports primarily with respect to USD & JPY. The
Company''s exports are denominated generally in USD, providing a natural hedge to some extent against foreign
currency payments on account of imports of raw materials & plant and machinery. The Company does not use

the risk of changes in the market interest rates as the company''s borrowings comprises of loans with fixed rate
of interest.

(e) Commodity price risk:

The Company is affected by the price volatility of certain commodities. Its operating activities require the purchase
of raw material and therefore, require a continuous supply of certain raw materials. To mitigate the price risk, the
company has an approved supplier base to get the best competitive prices for the commodities and to manage
the cost without any compromise on quality.

(g) Credit Risk:

Credit risk is the risk that counter party might not honor its obligations under a financial instrument or customer
contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily
trade receivables).

Trade Receivables:

Customer credit risk is managed based on company''s established policy, procedures and controls. The company
assesses the credit quality of the counter parties, taking into account their financial position, past experience and
other factors.

Credit risk is reduced by receiving pre-payments and export letter of credit to the extent possible. The Company
has a well-defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are
regularly monitored and assessed. The Company follows the simplified approach for recognition of impairment
loss and the same, if any, is provided as per its respective customer''s credit risk as on the reporting date

(h) Deposits with Bank:

The deposits with banks constitute mostly the investment made by the company against bank guarantee and are
generally not exposed to credit risk .

(i) Liquidity Risk:

Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The company''s
approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due.

39 CAPITAL MANAGEMENT:

The Company''s policy is to maintain an adequate capital base so as to maintain creditor and market confidence and
to sustain future development. Capital includes issued capital, share premium and all other equity reserves attributable
to equity holders.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net
Debt is calculated as borrowings less cash and cash equivalent.

41 EXCEPTIONS AND EXEMPTIONS APPLIED FOR TRANSITION TO IND AS

Ind AS 101 "First-time adoption of Indian Accounting Standards" (hereinafter referred to as Ind AS 101) allows first
time adoptions certain mandatory exceptions and optional exemptions from the retrospective application of certain
Ind AS, effective from 1^st April, 2023. In preparing these financial statements, the company has applied the below
mentioned optional exemptions and mandatory exceptions.

(a) Optional Exemptions Availed:

Property Plant and Equipment,

As permitted in para D5-D8B of Ind AS 101, the company has opted to continue with the carrying values under
previous GAAP for all the items of Property, Plant and Equipment and investment as deemed cost on transition
date.

(b) Mandatory Exceptions:

(i) Estimates

Upon an assessment of the estimates made under Previous GAAP, the company has an opinion that there
was no necessity to revise such estimates under Ind AS, except where revision ins was necessitated as
required in Ind AS. The estimates used by the company to present the amounts in accordance with Ind AS
reflect conditions existing as at 1^st April, 2023, the date of transition to Ind AS and as at 31^st March, 2024 and
as at 31^st March, 2025.

(ii) Derecognition of Financial Assets and Financial Liabilities

The Company has opted to apply the derecognition requirements for financial assets and financial liabilities
in accordance with Ind AS 109 prospectively for transactions occurring on or after the date of transition to
Ind AS.

(iii) Classification and Measurement of Financial Assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and
circumstances that exist at the date of transition to Ind AS.

52 The disclosures required as per the Indian Accounting Standards (Ind-AS 19 - Employee Benefits) notified under the
Companies (Indian Accounting Standards) Rules, 2015 are as under:

Defined Contribution Plans

The Company offers its employees defined contribution plan in the form of provident fund (PF) and Employees State
Insurance Scheme (ESI) which covers substantially all regular employees. Contribution are paid during the year into
separate funds under certain fiduciary-type arrangements. Both the employees and the company pay pre-determined
contribution into the provident funds, family pension fund and the Employees State Insurance Scheme. The
Contributions are normally based on a certain proportion of the employee''s salary. "

Contribution to Defined Benefit Plan, recognized and charged off for the year are as under (excluding for on contracts
payments):

Defined Benefit Plans

The Company offers its employees defined- benefit Plans in the form of a Gratuity Scheme. Benefits under the
defined benefit plan is typically based either on years of service and the employee''s compensation (generally
immediately before retirement). The Gratuity scheme covers substantially all regular employees. Commitments are
actuarially determined at year end. The actuarial valuation is done based on "Projected Unit Credit" method. Gains &
Losses of changed actuarial assumptions are charged to the profit and loss account. The obligations for leave
encashment is recognised in the same manner as gratuity.

55 a) Fair value of investment in equity shares of rupees 11 lacs in Infopower Technologies Private Limited has not

been done as at 31.3 .2024 and 31.3.2025 since its effect is not material in the opinion of the management.

b) Investment in equity shares of '' 948.00 Lacs & '' 648.00 Lacs in Sahasra Semiconductors Private Limited has been
carried at cost as at 31.3.2024 and 01.04.2023 since it became subsidiary in current year.

56 The company has not entered into any transactions with the companies struck off u/s 248 of the companies Act 2013.

57 Additional reporting requirement pursuant to amendment is schedule III has been given to the extent applicable to
the company.

58 The funds of IPO have been utilized by way of loan of '' 460 Lacs to Infopower Technologies Private Limited and
'' 1440 Lacs as investment in Subsidiary company for general corporate purpose which were not covered in the
object of IPO and there is unutilised balance of IPO is '' 62.69 crore for which fixed deposit was taken.

59 During the year unsecured loan of '' 4000 Lacs given to Limited has been converted into 4 crore equity shares of '' 10
each of the said company.

60 Quarterly returns of statement of current assets including inventories filed by the company with bank in respect of
borrowings from banks on the basis of scrutiny of current assets are not having material variation with the books of
accounts.

62 The company has utilised the borrowing received from bank for the purpose for which it was taken during the year.

63 Previous Year figures have been regrouped / rearranged, wherever necessary.

64 The company has changed the method of depreciation from written down value method to Straight line method
prospectively for current year as resulting into increase of profit by '' 144.73 lacs.

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

• Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate beneficiaries), or

• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

66 All benefits of Noida Special Economic Zone including Section 10AA of Income Tax act will be made available to the
company from 22.02.2023 and onwards in pursuance of LOA letter no. 09/02/2005Proj/2794.

67 The company will fulfil stipulated export in five years and in case of failure the company will be contingently liable to
pay custom duty on already imported capital goods and other materials (amount unascertained).

» 68 Current Assets, Loans and Advances are approximately of the value stated, if realized in ordinary course of business.
i

71 Previous years figures have been recast or rearranged wherever considered necessary.

Material Accounting Policies and Notes to Accounts Note No. 30 to 71) As per our Report of even date.

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

For P K M B & Co. Sahasra Electronic Solutions Limited

Firm Registration No. 005311N

Chartered Accountants (AMRIT LAL MANWANI) (VARUN MANWANI)

Chairman & Managing Director Director

DIN 00920206 DIN 00921735

P.K Jain (MANEESH TIWARI) (NEHA TAHIR)

Partner Chief Financial officer Company Secetary &

Membership No. 010479 Compliance Officer

Membership No. A46571

Place : New Delhi
Date: 20^th May 2025

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Mar 31, 2024

F. SEGMENT INFORMATION

a) The Company is exclusively engaged in the business of Manufacturing of populated printed Circuit boards assembly, LED Lighting Products and USB Flash Storage Devices. This, in the context of Accounting Standard (AS 17) Segment Reporting, issued by The Institute of Chartered Accountants of India, constitutes one single primary segment.

Disclosure of Sundry Creditors under the Other Current Liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the “Micro, Small and Medium Enterprises Development Act, 2006.

2) Defined Benefit plan

1 he present Value of obligation of gratuity is determined based on actuarial valuation using the Projected unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment and long benefit award is also recognized in the same manner as gratuity.

The estimates ot rate of escalation in salary considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. ”

^Quarterly return or statement of current assets filed by the company with banks in respect of borrowings from banks on the basis of security of current assets are not having material variation with the books of accounts.

O. The company has utilized the borrowing received from banks for the purpose for which it was taken during the year.

Additional Regulatory Information

Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as given in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statements.

(a) Title deeds of Immovable Property not held in name of the Company I he Company doesn’t own any immovable property.

(b) Fair Value of Investment Property

The Company do not have any Investment property.

(c) Details of Benami Property held

The company does not have any Benami Property, where any proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(^d) Borrowings from banks or financial institutions on the basis of security of current assets

The Company has a not availed any borrowing from bank or financial institutions on the basis of security of current assets.

(e) Wilful Defaulter

The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a willful defaulter at any time during the financial year or after the end of reporting period but before the date when the financial statements are approved.

(f) Relationship with Struck off Companies

The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(g) Registration of charges or satisfaction thereof with Registrar of Companies

There is no charges or satisfaction thereof yet to be registered with Registrar of Companies beyond the statutory period as on the date of Balance Sheet.

(h) Compliance with number of layers of companies

There Is no non-compliance of provisions regarding the number of layers prescribed under clause (87) of ser-tinn ? of the Act r#ad with Companion (Restriction on number of Layeis) Rules, 2017.

(i) The company has not advanced or loaned or invested funds to any other person(s) or entity (is), including foreign entities (intermediaries), with the understanding that the intermediary shall;

(1) 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

(2) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

. 0) The Company has not received any funds 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;

(1) 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

(2) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(k) Undisclosed

The Company does not have any transactions which is not recorded in the books of accounts but 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).

(l) Details of Crvpto Currency or Virtual Currency

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

(^m) Compliance with approved schemcfs) of arrangements

During the year, no scheme of arrangement has been approved by the competent authority in terms of section 230 to 237 of the companies Act,2013, Hence no further disclosure is required.

(n) Corporate Social Responsibility (CSR)

The provisions of Section 135 of the companies Act, 2013 are not applicable to the Company during the year.

R^Previous year figures have been regrouped/rearranged, wherever considered necessary to conform to current year classification, The figures in brackets are those in respect of the previous accounting year.

S/The Company has not entered into any transaction with the Companies struck of U/S 248 of the Companies Act 2013.

T. All benefits ofNoida Special Economic Zone including Section 10AA of Income Tax act will be made available to the company from 22.02.2023 and onwards in pursuance of LOA letter no. 09/02/2005Proj/2794.

li. The company will fulfill stipulated export in five years and in case of failure the company will be contingently liable to pay custom duty on already imported capital goods and other materials (amount unascertained).

V. Current Assets, Loans and Advances are approximately of the value stated, if realized in ordinary course of business.

W, An audit trail has not been maintained by the company in accordance with compliance requirements. The company will be implemented on 01.04.2024.

X. The Board of Directors in their meeting held on 12^,h Jan 2024 has recommended interim dividend of 65% i.e. Rs. 6.5/- on per fully paid-up equity share of Rs. 10/- each aggregating to Rs. 1,168.02 lacs. Such'' dividend is proposed to be considered as final dividend.

Y. Previous year’s figures are not comparable as this is the first year of company’s full year operations.

Details of loans are granted to related parties that are repayable on demand.