Notes to Accounts of Smarten Power Systems Ltd.

Mar 31, 2025

2.6 Provisions and contingencies

Contingent liabilities are disclosed after evaluation of the facts and legal aspects of the matter
involved, in line with the provisions of Accounting Standard (AS) 29. Provisions are recognised when
the company has a legal / constructive obligation as a result of a past event, for which it is probable
that a cash outflow may be required and a reliable estimate can be made of the amount of the
obligation.

2.7 Provision for warranty

The Company accrues warranty costs upon sale. Product warranty costs are accrued based on past
experience, adjusted for current trends.

2.8 Borrowing Cost

Borrowing Cost includes exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost. Borrowing costs that are attributable
to the acquisition or construction of qualifying assets are capitalized as part of the cost of such
assets. A qualifying assetsis is one that necessary takes substantial period of time to get ready for
its intended use. All other borrowing costs are changed to the Standalone Profit and Loss Statement
in the period in which they are incurred.

2.9 Earnings per share

Basic earnings per share are calculated by dividing the net Standalone Profit or loss of the year
attributable to equity shareholders by weighted average number of equity shares outstanding
during the year. For calculating diluted earnings per share, the net Standalone Profit or loss for the
year attributable to equity shareholders and the weighted average number of shares outstanding
during the year are adjusted for the effects of all dilutive potential equity shares.

3.0 Segment reporting

The Company has a single identifiable and reportable segment in terms of the Accounting Standard
AS - 17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India", taking
into account the organizational structure and different risk and return of the business activities.
Thus, no separate reporting of business and geographical segments is required to be given as per
AS - 17.

3.1 Cash and Cash Equivalents:

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term
balances (with an original maturity of three months or less from the date of acquisition), highly
liquid investments that are readily convertible into known amounts of cash and which are subject
to insignificant risk of changes in value.

3.2 Cash Flow Statement:

Cash flows are reported using the indirect method, whereby Standalone Profit / (loss) before tax is
adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or
future cash receipts or payments. The cash flows from operating, investing and financing activities
of the Company are segregated based on the available information.

3.3 Material events

Material adjusting events occurring after the Standalone Balance sheet date are taken into
cognizance.

For Mahesh Yadav & Co. For and on behalf of the Board of Directors

Chartered Accountants Smarten Power Systems Limited

Firm No. 036520N (Formerly known as Smarten Power Systems Private

UDIN: 25548924BMUKHQ1434 Limited)

Mahesh Yadav Rajnish Arun Bharadwaj

Proprietor Sharma

Membership No. 548924

WTD & CEO Managing

Director

DIN:06813014 DIN:06964929

Place: Taoru Rahul Sharma Rajbir Sharma

Date: 7^th June, 2025 CFO Company

Secretary

Equity shares movement during the 5 years preceding March 31, 2025
* Equity shares issued as pursuant to any contract for consideration other than cash

During the financial year 2024-25, the Company issued bonus shares in the ratio of 14:1 (i.e. 14
shares for every one share held) by capitalizing ^1,400.00 lakhs from Retained Earnings. This
increased the paid-up share capital from ^ 100.00 Lakhs to ^1,500.00 Lakhs.

The issuance was approved by the Board on October 24, 2024 and by shareholders in the EGM held on
October 24, 2024, in compliance with the Companies Act, 2013 and applicable regulations. The bonus
issue aims to optimize share capital before the proposed listing on the SME platform of NSE Emerge.

List of the Shareholders holding more than five percent of shares in the company as at the balance
sheet date:

* Term Loan of Rs. 600 Lakhs has been sanctioned by the ICICI BANK LIMITED, out of which Rs. 249.19 Lakhs
has been draw down by the Company. The facility is having Exclusive charge in favour of the Bank by way of
hypothecation of the firms entire stocks of raw materials, semi-finished and finished goods, consumable
stores and spares and such other movables including book-debts, bills whether documentary or clean,
outstanding monies, receivables, both present and future, in a form and manner satisfactory to the Bank..
The Facility is having collateral charge on Industrial Plot of the Company. The Facility is further secured by
personal guarantee of all the four directors.

** Vehicle Loans are secured by having hypothecation on Specific Vehicle Finance by Lender.

* Total Working Capital Exposure of Rs. 1390 Lakh, comprises the Overdraft Facility of Rs. 690 Lakh and Export
Packing Credit of Rs. 700 Lakh. has been sanctioned by the ICICI BANK LIMITED. The facility is having Exclusive
charge in favour of the Bank by way of hypothecation of the firms entire stocks of raw materials, semi¬
finished and finished goods, consumable stores and spares and such other movables including book-debts,
bills whether documentary or clean, outstanding monies, receivables, both present and future, in a form
and manner satisfactory to the Bank. The Facility is having collateral charge on Industrial Plot of the
Company. The Facility is further secured by personal guarantee of all the four directors.

** Vehicle Loans are secured by having hypothecation on Specific Vehicle Finance by Lender.

***Term Loan of Rs. 600 Lakhs has been sanctioned by the ICICI BANK LIMITED, out of which Rs. 249.19
Lakhs has been draw down by the Company. The facility is having Exclusive charge in favour of the Bank by
way of hypothecation of the firms entire stocks of raw materials, semi-finished and finished goods,
consumable stores and spares and such other movables including book-debts, bills whether documentary or
clean, outstanding monies, receivables, both present and future, in a form and manner satisfactory to the
Bank. The Facility is having collateral charge on Industrial Plot of the Company. The Facility is further secured
by personal guarantee of all the four directors.

The Company has a single identifiable and reportable segment in terms of the
Accounting Standard AS - 17 on "Segment Reporting" issued by the Institute of
Chartered Accountants of India", taking into account the organizational structure and
different risk and return of the business activities. Thus, no separate reporting of
business and geographical segments is required to be given as per AS - 17.

Note 30. Earnings Per Share

In the opinion of the management and to the best of their knowledge and believe, the
value on realization of current assets, Loans and Advances in the ordinary course of
business would not be less than the amount at which they are stated in the Standalone
Balance sheet.

Note 38. Balance Confirmations

Balance of Trade Receivable / Trade Payable /Loans / Advances are subject to
reconciliation & confirmation.

Note 39. GST Reconciliations

The Company turnover as on 31st March ''2025 is in reconciliation with turnover
reported in GSTR-1 & GSTR-3B. The reconciliation of input claimed in Books Vs GSTR-
3B Vs Input Available in GSTR-2B is available & in records.

Note 40. MSME Disclosure & Compliance

Based on the information available in records, company has identified vendors under
Micro, Small & Medium Enterprises Development Act, 2006.

Note 41. Investment in Subsidiary

In Standalone financial statements, the investments made in subsidiary is accounted
for as per AS 13 - Accounting for Investments.

(i) During the year, the Company has not entered into any transaction with companies
struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies
Act,1956.

(ii) No proceeding has been initiated or pending against the Company for holding any
benami property under the Benami Transactions (Prohibition) Act,1988 (us of 1988)
an rules made thereunder.

(iii) The Company has not been declared a wilful defaulter by any bank or financial
institution or other lender.

(iv) The Company has not traded or invested in Crypto currency or virtual currency
during the financial year.

(v) The company has complied with the number of layer prescribed under clause (87)
of section 2 of the companies act 2013 read with the companies (Restriction on
number of layers) rules , 2017 from the date of their implementation.

(vi) The vehicle Loan provided by the ICICI Bank Limited of Rs. 15.00 Lakhs in FY 2023¬
24 is having hypothecation on vehicle finance by them however Bank not initiated the
process of Charge Filling on MCA due to which charges were not filed.

(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 in the tax
assessments under the Income Tax Act 1961 (Such as, search or survey or any other
relevant provision of the Inco me Tax Act, 1961).

Note 3. Deferred Tax Assets/(Liabili ty)

There are timing differences between Book Standalone profit and Accounting
Standalone profit and to bridge the Gap the company has recognized Deferred tax
assets on temporary timing differences only for which there is virtual certainty
supporting with convincing evidence that such differences would be mitigate in
future.Where there are permanent timing differences no Deferred Tax Assets has been
Recognised.

Note 44. TDS / TCS Reconciliation

TDS / TCS Reconciliation of Books Vs. Form 26AS has been done till 31st December''24
only, as till the date of closing of these financials statements, Fourth Quarter TDS data
is not available in Form 26AS for reconciliation.

Note 45. Regroup/Reclassification

The previous year figures has been re-classified and re-grouped wherever necessary
to confirm to the current year presentation.

As per our audit report of even date attached

For Mahesh Yadav For and on behalf of the Board of Directors

& Co.

Chartered

. Smarten Power Systems Limited

Accountants

(Formerly known as Smarten Power Systems Private
FirmNo.036520N Limited)

UDIN:

25548924BMUKHQ1434

Rajnish Sharma Arun Bharadwaj

Mahesh Yadav WTD & CEO Managing Director

Proprietor DIN:06813014 DIN:06964929

Membership
No. 548924

Place: Taoru Rahul Sharma Rajbir Sharma

Date: 07th June, 2025 CFO Company Secretary