Notes to Accounts of Shera Energy Ltd.

Mar 31, 2025

1.3.23 Provisions, Contingent Liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect
of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability.

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

1.3.24 Events after Reporting Date

Where events occurring after the Balance Sheet date provide evidence of condition that existed at the
end of reporting period, the impact of such events is adjusted within the financial statements. Otherwise,
events after the Balance Sheet date of material size or nature are only disclosed.

1.3.25 Non - Current Assets Held For Sales

Non-current assets are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use and sale is considered highly probable.

A sale is considered as highly probable when decision has been made to sell, assets are available for
immediate sale in its present condition, assets are being actively marketed and sale has been agreed or is
expected to be concluded within 12 months of the date of classification.

Non-current assets held for sale are neither depreciated nor amortised.

Assets and liabilities classified as held for sale are measured at the lower of their carrying amount and fair
value less cost of sale and are presented separately in the Balance Sheet.

1.3.26 Cash Flows Statement

Cash Flows Statements are reported using the method set out in the Ind AS - 7, "Cash Flow Statements”,
whereby the Net Profit / (Loss) before tax is adjusted for the effects of the transactions of a Non-Cash
nature, any deferrals or accrual of past or future operating cash receipts or payments and item of income
or expenses associated with investing or financing cash flows. The cash flows from operating, investing
and financing activities of the Company are segregated.

1.3.27 Cash and Cash Equivalents

Cash and cash equivalents comprise of cash on hand, cash at banks, short-term deposits and short-term,
highly liquid investments that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value.

1.3.28 Recent Pronouncements

Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. MCA has notified Ind
AS-117 - Insurance Contracts and amendments to Ind AS-116 - Leases, relating to sale and leaseback
transactions, applicable to the Company w.e.f April 1, 2024. The Company has reviewed the new
pronouncements and based on its evaluation has determined that it does not have any significant impact
in its financial statements.

.4 Critical Accounting Judgments and Key Sources of Estimation Uncertainty:

The preparation of the Company''s Financial Statements requires management to make judgment, estimates
and assumptions that affect the reported amount of revenue, expenses, assets and liabilities and the
accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of assets or liabilities affected in next financial years.

1.4.1 Income Tax

The Company''s tax jurisdiction is in India. Significant judgments are involved in estimating budgeted
profits for the purpose of paying advance tax, determining the income tax provisions, including the
amount expected to be paid / recovered for uncertain.

1.4.2 Property Plant and Equipment/ Intangible Assets

Estimates are involved in determining the cost attributable to bringing the assets to the location and
condition necessary for it to be capable of operating in the manner intended by the management.
Property, Plant and Equipment/Intangible Assets are depreciated/amortised over their estimated useful
life, after taking into account estimated residual value. Management reviews the estimated useful life and
residual values of the assets annually in order to determine the amount of depreciation/ amortisation to
be recorded during any reporting period. The useful life and residual values are based on the Company''s
historical experience with similar assets and take into account anticipated technological changes. The
depreciation/amortisation for future periods is revised if there are significant changes from previous
estimates.

1.4.3 Defined Benefits Obligations

The costs of providing Gratuity and other post-employment benefits are charged to the Statement of
Profit and Loss in accordance with Ind AS - 19, "Employee Benefits” over the period during which benefit
is derived from the employees'' services. It is determined by using the Actuarial Valuation and assessed on
the basis of assumptions selected by the management. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These assumptions include salary
escalation rate, discount rates, expected rate of return on assets and mortality rates. Due to complexities
involved in the valuation and its long term in nature, a defined benefit obligation is highly sensitive to
change in these assumptions. All assumptions are reviewed at each balance sheet date.

1.4.4 Fair value measurements of Financial Instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques,
including the discounted cash flow model, which involve various judgments and assumptions.

1.4.5 Recoverability of Trade Receivables

Judgments are required in assessing the recoverability of overdue trade receivables and determining
whether a provision against those receivables is required. Factors considered include the credit rating of
the counterparty, the amount and timing of anticipated future payments and any possible actions that
can be taken to mitigate the risk of non-payment.

1.4.6 Provisions

The timing of recognition and quantification of the liability (including litigations) requires the application
of judgment to existing facts and circumstances, which can be subject to change. The carrying amounts
of provisions and liabilities are reviewed regularly and revised to take account of changing facts and
circumstances.

1.4.7 Impairment of Financial and Non - Financial Assets

The impairment provisions for Financial Assets are based on assumptions about risk of default and
expected cash loss rates. The Company uses judgment in making these assumptions and selecting the
inputs to the impairment calculation, based on Company''s past history, existing market conditions as well
as forward-looking estimates at the end of each reporting period.

In case of non-financial assets company estimates asset''s recoverable amount, which is higher of an asset''s
or Cash Generating Units (CGU''s) fair value less costs of disposal and its value in use

In assessing value in use, the estimated future cash flows are discounted to their present value using
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
into account, if no such transactions can be identified, an appropriate valuation model is used.

1.4.8 Recognition of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are recognised for deductible temporary differences and unused tax
losses for which there is probability of utilisation against the future taxable profit. The Company uses
judgment to determine the amount of deferred tax that can be recognised, based upon the likely timing
and the level of future taxable profits and business developments.

1.4.9 Supplier Financing Arrangements:

The company participates in various supply chain finance programs under which participating suppliers
may voluntarily elect to sell some of all of their Company receivables to third-party financial institutions.
Supplier participation in the programs is solely up to the supplier, and participating suppliers enter
their arrangements directly with the financial institutions. The Company and its suppliers agree on
the contractual terms for the goods and services it procure, including prices, quantities and payment
terms, regardless of whether the supplier elects to participate in these programs. The suppliers'' voluntary
inclusion of invoices in these programs has no bearing on our payment terms. Further, the company has
no economic interest in a supplier''s decision to participate in these programs: As at 31st March, 2025
and 31st March, 2024, confirmed supplier invoices that are outstanding and subject to the third-party
programs included in accounts payable on the balance sheets were 1,645.69 Lakhs and 1585.60 Lakhs
respectively, The company do not believe that future changes in the availability of supply chain financing
will have a significant impact on the company''s liquidity (Further information are set out in Note 19).

B. Defined Benefit Plan - Gratuity:

(i) The Company administers its employees'' gratuity scheme funded liability. The present value of the liability for the
defined benefit plan of gratuity obligation is determined based on actuarial valuation by an independent actuary at
the period end, which is calculated using the projected unit credit method, which recognises each year of service
as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the
final obligation.

(iii) Characteristics of defined benefit plans and risks associated with them:

Valuation of defined benefit plan are performed on certain basic set of pre-determined assumptions and other reg¬
ulatory framework which may vary over time. Thus, the Company is exposed to various risks in providing the above
benefit plans which are as follows:

A. Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience:

Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that
is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the
Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the
acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary
growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than
the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are
vested as at the resignation date.

B. Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be
the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the
future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant
changes in the discount rate during the inter- valuation period." \

C. Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of bene¬
fits. If some of such employees resign/retire from the company there can be strain on the cashflows"

D. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets.
One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of
money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa.
This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is
exposed to fluctuations in the yields as at the valuation date.

E. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the leg-
islation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay
higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the
same will have to be recognized immediately in the year when any such amendment is effective.

Looking to the nature of Business, Company is operating under single Operating segement hence Segement Reporting
is not Applicable as per IND AS 108.

Note - 36 [LEASES (Right to Use of Assets)

The Company''s significant leasing arrangements are in respect of Land and buildings and office premises taken on lease
and license basis.

The Company has recorded the lease liability at the present value of the lease payments discounted at the incremental
borrowing rate and the ROU asset at its carrying amount. The weighted average incremental borrowing rate applied to
lease liabilities is 10.00 %.

Financial Risk Management - Objectives and Policies

The Company''s financial liabilities mainly comprise the loans and borrowings in domestic currency, money related to
capital expenditures, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s
operations. The Company''s financial assets comprise mainly of investments, security deposits, cash and cash equivalents,
other balances with banks, trade and other receivables that derive directly from its business operations.

The Company is exposed to the Market Risk, Credit Risk and Liquidity Risk from its financial instruments.

The Management of the Company has implemented a risk management system which is monitored by the Board of
Directors of the Company. The general conditions for compliance with the requirements for proper and future-oriented
risk management within the Company are set out in the risk management principles. These principles aim at encouraging
all members of staff to responsibly deal with risks as well as supporting a sustained process to improve risk awareness.
The guidelines on risk management specify risk management processes, compulsory limitations, and the application of
financial instruments. The risk management system aims to identify, assess, mitigate the risks in order to minimize the
potential adverse effect on the Company''s financial performance.

The following disclosures summarize the Company''s exposure to the financial risks and the information regarding use
of derivatives employed to manage the exposures to such risks. Quantitative Sensitivity Analysis has been provided to
reflect the impact of reasonably possible changes in market rate on financial results, cash flows and financial positions of
the Company.

(*) Investment in subsidiaries are measured at cost as per Ind AS 27, "Separate financial statements”, and hence not pre¬
sented here.

(**) Fair value of financial assets and liabilities measured at amortized cost approximates their respective carrying values
as the management has assessed that there is no significant movement in factor such as discount rates, interest rates,
credit risk from the date of the transition. The fair values are assessed by the management using Level 3 inputs.

(***) The financial instruments measured at FVTPL represents current investments and derivative assets having been
valued using level 2 valuation hierarchy.

Fair value hierarchy

The fair value of financial instruments as referred to in note below has been classified into three categories depending on
the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for
identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs;
and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in
whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices
from observable current market transactions in the same instrument nor are they based on available market data.

B. 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 three types of Risk: "Interest Rate Risk, Currency Risk and Other Price Risk” Financial
instrument affected by the Market Risk includes loans and borrowings in foreign as well as domestic currency, retention
money related to capital expenditures, trade and other payables.

(a) Interest Rate Risk

Interest Rate Risk is the risk that fair value or future cash outflows of a financial instrument will fluctuate because of chang¬
es in market interest rates. An upward movement in the interest rate would adversely affect the borrowing cost of the
Company. The Company is exposed to long term and short - term borrowings. The Company manages interest rate risk
by monitoring its mix of fixed and floating rate instruments and taking actions as necessary to maintain an appropriate

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed
for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to
each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets. (i) Low
credit risk, (ii) Moderate credit risk, (iii) High credit risk.

Based on business environment in which the Company operates, a default on a financial asset is considered when the
counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are
based on actual credit loss experience and considering differences between current and historical economic condi¬
tions.

(i) Cash and cash equivalent and bank balance:

Credit risk related to cash and cash equivalents and bank balance is managed by only accepting highly rated banks and
diversifying bank deposits and accounts in different banks.

(ii) Loans and Other financial assets measured at amortized cost:

Other financial assets measured at amortized cost includes Security Deposit to various authorities , Loans to staff and
other receivables. Credit risk related to these other financial assets is managed by monitoring the recoverability of such
amounts continuously, while at the same time internal control system in place ensure the amounts are within defined
limits.

(iii) Trade receivables:

Life time expected credit loss is provided for trade receivables. Based on business environment in which the Company
operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed
time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering
differences between current and historical economic conditions. Assets are written off when there is no reasonable ex¬
pectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company
continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made
are recognized in statement of profit and loss.

(A) Expected credit losses:

Expected credit loss for trade receivables under simplified approach:

The Company recognizes lifetime expected credit losses on trade receivables & other financial assets using a simplified
approach, wherein Company has defined percentage of provision by analyzing historical trend of default based on the
criteria defined below and such provision percentage determined have been considered to recognize life time expected
credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss
against the amount recoverable is provided for). Further, the Company has evaluated recovery of receivables on a case
to case basis. No provision on account of expected credit loss model has been considered for related party balances. The
Company computes credit loss allowance based on provision matrix. The provision matrix is prepared on historically ob¬
served default rate over the expected life of trade receivable and is adjusted for forward - looking estimate. The provision
matrix at the end of reporting period is as follows:

Maturities of Financial Liabilities:

The tables below analyze the Company''s financial liabilities into relevant maturity based on their contractual maturities
for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.
Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. AS per
Annexure "A".

E. Capital Management

The Company''s capital management objectives are to ensure the company''s ability to continue as a going concern, to
provide an adequate return to share holders.

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented
on the face of balance sheet. Management assesses the Company''s capital requirements in order to maintain an efficient
overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the
Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light
of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the

1. All related party transactions entered during the year were in ordinary course of business and are on arm''s length
basis.

2. The Names of related parties and nature of the relationships are disclosed irrespective of whether or not there have
been transactions between the related parties. For Related party transactions, it is disclosed only when the transac¬
tions are entered into by the company with the related parties during the existence of the related party relationship.

Note - 42l Additional regulatory information

A) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease ree-
ments are duly executed in favour of the lessee) are held in the name of the Company.

B) The Company does not have any investment property.

C) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible
assets.

D) There are loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and the related parties
(as defined under Companies Act, 2013), either severally or jointly with any other person, that are outstanding as on
31st March, 2025, are as follows which are repayable on demand:

undrstanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or
invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the
company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries. \

J) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the company shall directly or indirectly lend
or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of
the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

K) No transactions has been surrendered or disclosed as income during the year in the tax assessment under the In¬
come Tax Act, 1961. There are no such previously unrecorded income or related assets.

L) Shera Energy Limited has made an investment in Rajputana Industries limited, a subsidiary of the Company. As part
of this investment, Shera Energy has acquired 1,13,31,000 equity shares of Rajputana Industries limited.

M) Shera Energy Limited has made an investment in Shera Metal Private Limited, a subsidiary of the Company. In con¬
nection with this, Shera Energy has acquired 1,56,35,000 equity shares of Shera Metal Private Limited.

N) During the year ended at 31st March, 2025 , the company has alloted 16,51,000 Equity share by way of Preferential
allotment as on 24th March, 2025 at face value of 10.00 each at an issue price of RS 184.00 per Equity Share (includ¬
ing security premium of RS.174.00 per Equity Share).

O) The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility are applicable
to the Company during the period.

E) No proceedings have 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

F) The company is not declared willful defaulter by any bank or financial institution or other lender.

G) The company has not undertaken any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.

H) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to237 of the
Companies Act, 2013.

I) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the

3 Return on Capital employed (in %)

"While both EBIT and capital employed increased during the period, Capital employed increased at higher pace than
EBIT. It reflects disciplined and strategic reinvestment aimed at sustaining future profitability.

4 Return on investment (in %)

The decrease in ROI from 10.94% to 7.33% is due to year-end investments, with returns expected to materialize in
future periods.

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

For, Keyur Shah & Co. For, Shera Energy Limited

F.R. No. : 141173W

Chartered Accountants Sheikh Naseem Shivani Sheikh

Chairman & Managing Director Whole-time Director

(DIN: 02467366) (DIN: 02467557)

Keyur Shah Sumit Singh Jyoti Goyal

Proprietor Chief Financial Officer Company Secretary

M. No. 153774 M. No. A57211

Date : 28th May, 2025 Date : 28th May, 2025

Place : Ahmedabad Place : Jaipur

---

Mar 31, 2024

Note : The company participates in various supply chain finance programs under which participating suppliers may voluntarily elect to sell some of all of their Company receivables to third-party financial institutions. Supplier participation in the programs is solely up to the supplier, and participating suppliers enter their arrangements directly with the financial institutions. The Company and its suppliers agree on the contractual terms for the goods and services it procure, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in these programs. The suppliers'' voluntary inclusion of invoices in these programs has no bearing on our payment terms. Further, the company has no economic interest in a supplier''s decision to participate in these programs: As at 31st March ''24 and 31st March ''23, confirmed supplier invoices that are outstanding and subject to the third-party programs included in accounts payable on the balance sheets were 1,585.60 Lakhs and 1,097.38 Lakhs respectively, The company do not believe that future changes in the availability of supply chain financing will have a significant impact on the company''s liquidity.

Note-33- Details of Employee Benefits:

The Company has the following post-employment benefit plans:

A. Defined Contribution Plan

Contribution to defined contribution plan recognised as expense for the year is as under:

The Company offers its employees benefits under defined contribution plans in the form of provident fund. Provident fund cover substantially all regular employees which are on payroll of the company. Both the employees and the Company pay predetermined contributions into the provident fund and approved superannuation fund. The contributions are normally based on a certain proportion of the employee''s salary and are recognised in the Statement of Profit and Loss as incurred.

Adverse Salary Growth Experience:

Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

B. Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the intervaluation period.

C. Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cashflows.

D. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/ government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

B. Defined Benefit Plan - Gratuity:

(i) The Company administers its employees'' gratuity scheme funded liability. The present value of the liability for

the defined benefit plan of gratuity obligation is determined based on actuarial valuation by an independent actuary at the period end, which is calculated using the projected unit credit method, which recognises each year of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(iii) Characteristics of defined benefit plans and risks associated with them:

Valuation of defined benefit plan are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit plans which are as follows:

A. Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Note- 35- Segment Reporting

Looking to the nature of Business, Company is operating under single Operating segement hence Segement Reporting is not Applicable as per IND AS 108.

Note -36- LEASES (Right to Use of Assets)

The Company''s significant leasing arrangements are in respect of Land and buildings and office premises taken on lease and license basis.

The Company has recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the ROU asset at its carrying amount. The weighted average incremental borrowing rate applied to lease liabilities is 10.00 %.

(*) Investment in subsidiaries are measured at cost as per Ind AS 27, "Separate financial statements", and hence not presented here.

Note - 37 - Financial Instruments

Financial Risk Management - Objectives and Policies

The Company''s financial liabilities mainly comprise the loans and borrowings in domestic currency, money related to capital expenditures, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets comprise mainly of investments, security deposits, cash and cash equivalents, other balances with banks, trade and other receivables that derive directly from its business operations.

The Company is exposed to the Market Risk, Credit Risk and Liquidity Risk from its financial instruments.

The Management of the Company has implemented a risk management system which is monitored by the Board of Directors of the Company. The general conditions for compliance with the requirements for proper and future-oriented risk management within the Company are set out in the risk management principles. These principles aim at encouraging all members of staff to responsibly deal with risks as well as supporting a sustained process to improve risk awareness. The guidelines on risk management specify risk management processes, compulsory limitations, and the application of financial instruments. The risk management system aims to identify, assess, mitigate the risks in order to minimize the potential adverse effect on the Company''s financial performance.

The following disclosures summarize the Company''s exposure to the financial risks and the information regarding use of derivatives employed to manage the exposures to such risks. Quantitative Sensitivity Analysis has been provided to reflect the impact of reasonably possible changes in market rate on financial results, cash flows and financial positions of the Company.

(**) Fair value of financial assets and liabilities measured at amortized cost approximates their respective carrying values as the management has assessed that there is no significant movement in factor such as discount rates, interest rates, credit risk from the date of the transition. The fair values are assessed by the management using Level 3 inputs.

(***) The financial instruments measured at FVTPL represents current investments and derivative assets having been valued using level 2 valuation hierarchy.

Fair value hierarchy

The fair value of financial instruments as referred to in note below has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than

Level 1 inputs; and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are

determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

B. 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 three types of Risk: "Interest Rate Risk, Currency Risk and Other Price Risk". Financial instrument affected by the Market Risk includes loans and borrowings in foreign as well as domestic currency, retention money related to capital expenditures, trade and other payables.

(a) Interest Rate Risk

Interest Rate Risk is the risk that fair value or future cash outflows of a financial instrument will fluctuate because of changes in market interest rates. An upward movement in the interest rate would adversely affect the borrowing cost of the Company. The Company is exposed to long term and short - term borrowings. The Company manages interest rate risk by monitoring its mix of fixed and floating rate instruments and taking actions as necessary to maintain an appropriate balance. The Company has not used any interest rate derivatives.

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and other Financial assets measured at amortized cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

(b) Foreign Currency Risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar. Foreign exchange risk arises from recognized assets and liabilities denominated in a currency that is not the functional currency of the Company. Considering the volume of foreign currency transactions, the Company has taken certain forward contracts to manage its exposure.

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets. (i) Low credit risk, (ii) Moderate credit risk, (iii) High credit risk.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Liquidity Risk is the risk that the Company will encounter difficulty in raising the funds to meet the commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

(i) Cash and cash equivalent and bank balance:

Credit risk related to cash and cash equivalents and bank balance is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks.

(ii) Loans and Other financial assets measured at amortized cost:

Other financial assets measured at amortized cost includes Security Deposit to various authorities, Loans to staff and other receivables. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

(iii) Trade receivables:

Life time expected credit loss is provided for trade receivables. Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions. Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.

(A) Expected credit losses:

Expected credit loss for trade receivables under simplified approach:

The Company recognizes lifetime expected credit losses on trade receivables & other financial assets using a simplified approach, wherein Company has defined percentage of provision by analyzing historical trend of default based on the criteria defined below and such provision percentage determined have been considered to recognize life time expected credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss against the amount recoverable is provided for). Further, the Company has evaluated recovery of receivables on a case to case basis. No provision on account of expected credit loss model has been considered for related party balances. The Company computes credit loss allowance based on provision matrix. The provision matrix is prepared on historically observed default rate over the expected life of trade receivable and is adjusted for forward - looking estimate. The provision matrix at the end of reporting period is as follows:

The cash credit and other facilities may be drawn at any time and may be terminated by the bank without notice. Maturities of Financial Liabilities:

The tables below analyze the Company''s financial liabilities into relevant maturity based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cashflows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. AS per Annexure "A"

E. Capital Management

The Company''s capital management objectives are to ensure the company''s ability to continue as a going concern, to provide an adequate return to share holders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet. Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company''s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

The Company has complied with the covenants as per the terms and conditions of the major borrowing facilities throughout the Reporting Period.

Note - 38 - Balance confirmation of Receivables

Confirmation letters have not been obtained from all the parties in respect of Trade Receivable, Other NonCurrent Assets and Other Current Assets. Accordingly, the balances of the accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

Note - 39 - Balance Confirmation of Payables

Confirmation letters have not been obtained from all the parties in respect of Trade Payable and other current liabilities. Accordingly, the balances of the accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

Note - 40 - Events occurring after the Balance sheet Date

The Group evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. There are no subsequent events to be recognized or reported that are not already disclosed.

Note:41:- Related Parties Transaction

Disclosure of transactions with Related Parties, as required by Ind AS 24 "Related Party Disclosures" has been set out below. Related parties as defined under clause 9 of the Ind AS 24 have been identified on the basis of representations made by the management and information available with the Company.

Note - 45- Additional regulatory information

A) The title deeds of immovable properties (other than properties where the Company is the lessee and the lease reements are duly executed in favour of the lessee) are held in the name of the Company.

B) The Company does not have any investment property.

C) The Company has not revalued its Property, Plant and Equipment (including Right-of-Use Assets) and Intangible assets.

D) There are loans or advances in the nature of loans are granted to Promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are outstanding as on 31st March ''24, are as follows which are repayable on demand:

G) The company has not undertaken any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

H) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

I) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the undrstanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

J) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (Ultimate Beneficiaries) by or on behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

K) No transactions has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961. There are no such previously unrecorded income or related assets.

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

M) During the quarter ended 31st December ''23, the company successfully divested its investment in Shera Infra Power Private Limited, a subsidiary, for a total sum of Rs. 2.70 crore. This transaction resulted in a profit of Rs. 2.20 crore for the parent company. This profit has been categorized under exceptional Item / extra Ordinary Items in the financial Statements.

N) During the financial year ending 31 March ''24, the company has made an investment of Rs. 2.04 crore in Shera Zambia Limited, a newly incorporated subsidiary. This investment aims to enhance the company''s international footprint in Central Africa by focusing on the production of winding wire and cables for Zambia and its neighboring nations

O) During the financial year, the GST department initiated an enquiry into the input tax credit (ITC) of the company. As a result of this inquiry, the company made a deposit of Rs. 49,50,907.00 under protest. Current status of the proceedings is under process.

P) Shera Energy Limited is currently in the process of establishing a new cable and wire manufacturing plant, which is currently under development and installation phase. The company have secured the land for this project by the way of a rental agreement with one of its subsidiary"Rajputana Industries Limited".

Q) The Provision of Section 135 of the Companies Act 2013 in relation to Corporate Social Responsibility areapplicable to the Company during the period.

E) No proceedings have 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

F) The company is not declared willful defaulter by any bank or financial institution or other lender.

Reason for variance More than 25 %

C Debt Service Coverage Ratio(in times)

Debts Service Coverage Ratio improved due to increase in the Profitability of the Company during the year as Compared to Previous year.

D Return on Equity Ratio (in %)

Return on Equity Ratio improved due to increase in the Net Profit After Tax from 465.48 lakhs to 697.74 lakhs of the Company during the year as Compared to Previous year.

I Net profit ratio (in %)

Net profit ratio improved due to Increase in the Revanue from operation from 54,828.26 lakhs to 62,940.18 lakhs of theCompany during the year as Compared to Previous year.

K. Return on investment (in %)

Return on investment improved due to Invested in the New Fixed Deposit during the years .