Notes to Accounts of Supreme Power Equipment Ltd.

Mar 31, 2025

13 Provisions and Contingent Liabilities:

A provision is recognised if, as a result of past event,
the Company has a present legal obligation that
can be estimated reliably and it is probable that an
outflow of economic benefit will be required to settle
the obligation. Provisions are determined by the best
estimate of outflow of economic benefits required to
settle the obligation at the reporting date. Where no
reliable estimate can be made, a disclosure is made
as contingent liability. A disclosure for a contingent
liability is also 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
possible obligation or present obligation in respect of
which the likelihood of outflow of resources is remote,
no provision or disclosure is made.

14 Government grant:

Grants from the government are recognised at their
fair value where there is a reasonable assurance
that the grant will be received and the Company will
comply with all attached conditions. Government grants
relating to income are deferred and recognised in the
profit or loss over the period necessary to match them

with the costs that they are intended to compensate
and presented within other operating income.

15 Earnings Per Share:

Basic Earnings per share is computed by dividing the
net profit after tax by the weighted average number of
equity shares outstanding during the period. Diluted
earnings per share is computed by dividing the net
profit after tax by the weighted average number of
shares considered for deriving basic earnings per
share and also the weighted average number of equity
shares that could have been issued upon conversion
of all dilutive potential equity shares. The diluted
potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at
fair value which is the average market value of the
outstanding shares. Dilutive potential equity shares
are deemed converted as at the beginning of the
period, unless issued at a later date. Dilutive potential
equity shares are determined independently for each
period presented.

16 Cash and Cash Equivalents:

The Company''s cash and cash equivalents consist of
cash on hand and in banks , which can be withdrawn
at any time, without prior notice or penalty on the
principal. For the purposes of the statement of cash
flows, cash and cash equivalents include cash on
hand, in banks are considered part of the Company''s
cash management system. In the balance sheet, bank
overdrafts are presented under borrowings within
current liabilities.

17 Current and Non current classification:

1) An asset shall be classified as current when it
satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended
for sale or consumption in, the company''s
normal operating cycle;

(b) it is held primarily for the purpose of being
traded;

(c) it is expected to be realized within twelve
months after the reporting date; or it is Cash
or cash equivalent unless it is restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting date.

All other assets shall be classified as non¬
current.

2) A liability shall be classified as current when it

satisfies any of the following criteria:

(a) it is expected to be settled in the company''s
normal operating cycle;

(b) it is held primarily for the purpose of being
traded;

(c) it is due to be settled within twelve months
after the reporting date; or

(d) the company does not have an unconditional
right to defer settlement of the liability for
at least twelve months after the reporting
date.

Terms of a liability that could, at the option
of the counterparty, result in its settlement
by the issue of equity instruments do not
affect its classification.

All other liabilities shall be classified as non¬
current.

An operating cycle is the time between the
acquisition of assets for processing and
their realization in Cash or cash equivalents.
Where the normal operating cycle cannot be
identified, it is assumed to have a duration
of twelve months.

The same operating cycle applies to the
classification of the firm''s assets and
liabilities .

18 Cash Flow Statement:

Cash flows are reported using indirect method,
whereby net profit/loss before tax is adjusted for
the effects of transactions of a non-cash nature, any
deferrals or accruals 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.

19 Investments:

Investments, which are readily realizable and intended
to be held for not more than one year from the date
on which such investments are made, are classified
as current investments. All other investments are
classified as long-term investments.

g) Terms & Rights attached to Equity Shares

(i) The company has one class of equity shares having par value of ''10/- (Rupees ten) each. Each shareholder is
eligible for one vote per share held and having dividend rights if any, declared by the board from time to time.

(ii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company
after distribution of all preferential amounts, in proportionate to their shareholdings in the company.

(iii) The equity shares are not repayable, except in the case of a buyback, reduction of capital, or winding up, in
accordance with the provisions of the Companies Act, 2013.

(iv) Every member of the company holding equity shares has the right to attend the General Meeting of the company,
to speak, and, on a show of hands, to cast one vote if present in person. On a poll, the member shall have the
right to vote in proportion to their share of the paid-up capital of the company.

(v) The rights, preferences and restrictions attaching to each class of shares:

The Company has only one class of shares and all shareholder have equal rights and there are no restriction.

3 Proposed Dividend Details:

The Company has not declared dividend during the period under review.

4 No issue of securities were made for any specific purpose by the Company during the reporting year.

5 The assets other than Property, Plant and Equipment, Intangible Assets and non-current investments have value on
realization in the ordinary course of business equal to the amount at which they are stated.

6 Details of Benami Property Held:

There are no proceedings initiated or pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

7 The Company has made borrowings from the banks on the basis of security of current assets, and the statements
of current assets as required to be filed by the Company with any the banks or financial institutions are done
periodically.

A summary of the quarterly reconciliation between the statements filed with the banks and the books of account is
provided below.

10 Registration of Charges or Satisfaction with Registrar of Companies:

The Company has no charge which is yet to be registered with Registrar of Companies beyond the statutory period

11 Compliance with Number of Layers of Companies:

The Company has only one subsidiary which is a partnership firm (Danya Electric Company).Hence layers prescribed
under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 are not
applicable.

12 Compliance with Approved Scheme(s) of Arrangements:

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

13 Utilisation of Borrowed Funds and Share Premium:

A. 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 understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) 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

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

B. 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

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Reason for Discrepancies: The statements submitted to banks during the year were prepared based on
provisional books of account. Discrepancies, if any, between these statements and the books of account are
primarily due to adjustments relating to provisions and valuations that are recorded only upon finalisation of the
financial statements.

8 Wilful Defaulter:

The company is not declared as wilful defaulter by any bank or financial institution or other lender.

9 Relationship with Struck off Companies:

The Company has not entered into any transactions with companies struck off under section 248 of the Companies
Act, 2013.

26 Cash Flow Statement:

(1) The amount of significant cash and cash equivalent balances held by the enterprise as at 31^st March, 2025 was
Rs.578.13 lakhs that are available for use by Company.

(2) Company does not have undrawn borrowing facilities that may be available for future operating activities.

(3) The Company has appropriate amount of Cash Flows that are required to maintain operating capacity.

(4) Company is investing adequately in the maintenance of its operating capacity.

(5) There are no non cash transactions happened in investing and financing activities to be excluded from Cash Flow
Statement.

27 Changes in Accounting Estimates:

There are no changes in Accounting Estimates made by the Company for the period ended 31^st March, 2025.

28 Changes in Accounting Policies:

There are no changes in Accounting Policy made by the Company for the period ended 31^st March, 2025

29 Disclosures on Property, Plant and Equipment and Intangible Assets:

I. Property, Plant and Equipment

(1) There is no restriction on the title of Property, Plant and Equipment, subject to only those which are under
hypothecation/charge.

(2) Company has no contractual commitments for the acquisition of Property,Plant & Equipment.

(3) Company has no Impairment loss during the period for Property, Plant & Equipment.

(4) Assets are periodically checked for active usage and those which are retired are written off.

(5) There are no temporarily idle property, plant and equipment.

Note-The above variance shall be addressed if there is a change in the variance of more than 25% as compared to
the preceding year.

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

For P P N AND COMPANY SUPREME POWER EQUIPMENT LIMITED

Chartered Accountants (formerly known as Supreme Power Equipment Private Limited)

Firm Reg No: 013623S

Peer Review Certificate No. 013578

R.RAJARAM VEE. RAJMOHAN K.V. PRADEEP KUMAR

Partner Managing Director Director

Membership Number: 238452 DIN: 00844400 DIN: 10218276

PRIYANKA BANSAL T B NATHAN

Company Secretary Chief Financial Officer

M.No:FCS12865 PAN No. ADFPN2937F

Place: Chennai
Date: 22^nd May, 2025

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Mar 31, 2024

* The face value of equity share was Rs. 100/- per share and the same was sub-divided into Rs. 10/- per share vide resolution dated 17-062023. Since the event occured after balance sheet date but before the signing date, the effect for the same is also considered in 31st March 2023 in order to maintain uniformity.

** The company has allotted Bonus Shares on 04/09/2023 in the ratio of 35 shares for every 10 share held vide its members resolution passed in EGM 31.08.2023

*** The company has raised money through Initial Public Offer "IPO") and has got listed on NSE-SME platform by way of fresh issue of 71,80,000 fully-paid-up equity shares of face value of Rs.10 each at a premium of Rs.55 each.

e) The rights, preferences and restrictions attaching to each class of shares:

The Company has only one class of shares and all shareholder have equal rights and there are no restriction and preferences attached to any shareholders including the right to receive dividend and repayment of Capital.

f) Shares in respect of each class in the company held by its holding company or its ultimate holding company including shares held by subsidiaries or associates of the holding company or the ultimate holding company in aggregate

3 Proposed Dividend Details:

The Company has not declared dividend during the period under review.

4 No issue of securities were made for any specific purpose by the Company during the reporting year.

5 The assets other than Property, Plant and Equipment, Intangible Assets and non-current investments have value on realization in the ordinary course of business equal to the amount at which they are stated

6 Details of Benami Property Held:

There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

7 The Company has made borrowings from the banks on the basis of security of current assets, and the statements of current assets as required to be filed by the Company with any the banks or financial institutions are done periodically.

8 Wilful Defaulter:

The company is not declared as wilful defaulter by any bank or financial institution or other lender.

9 Relationship with Struck off Companies:

The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013.

10 Registration of Charges or Satisfaction with Registrar of Companies:

The Company has no charge which is yet to be registered with Registrar of Companies beyond the statutory period .

11 Compliance with Number of Layers of Companies:

The Company has no subsidiaries hence layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 are not applicable, however the company has invested in a partnership firm (Danya Electric Company)

12 Compliance with Approved Scheme(s) of Arrangements:

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

13 Utilisation of Borrowed Funds and Share Premium:

A. 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 understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) 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

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

B. 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

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

20 Undisclosed Income:

There are no transactions that were not recorded in the books of account, and which has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

There is no previously unrecorded income and related assets have been recorded in the books of account during the year.

21 Details of Crypto Currency or Virtual Currency:

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

22 Dues to Micro and Small Enterprises:

The dues towards micro and small enterprises have been disclosed in the scheduleds to balance sheet.

26 Employee Benefit (Incurred in India):

Gratuity - The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method. This method considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.

Interest Cost: It is the increase in the Plan liability over the accounting period resulting from the operation of the actuarial assumption of the interest rate.

Current Service Cost: is the discounted present value of the benefits from the Plan''s benefit formula attributable to the services rendered by employees during the accounting period.

Actuarial Gain or Loss: occurs when the experience of the Plan differs from that anticipated from the actuarial assumptions. It could also occur due to changes made in the actuarial assumptions.

28 Changes in Accounting Estimates:

There are no changes in Accounting Estimates made by the Company for the period ended 31st March 2024.

29 Changes in Accounting Policies:

There are no changes in Accounting Policy made by the Company for the period ended 31st March 2024.

30 Disclosures on Property, Plant and Equipment and Intangible Assets:

I. Property, Plant and Equipment

(1) There is no restriction on the title of Property, Plant and Equipment, subject to only those which are under hypothecation/ charge.

The estimates of rate of escalation in salary considered in actuarial valuation, take 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.

27 Cash Flow Statement:

(1) The amount of significant cash and cash equivalent balances held by the enterprise as at March 31, 2024 was Rs.3,30,453/- that are available for use by Company.

(2) Company does not have undrawn borrowing facilities that may be available for future operating activities.

(3) The Company has appropriate amount of Cash Flows that are required to maintain operating capacity.

(4) Company is investing adequately in the maintenance of its operating capacity.

(5) There are no non cash transactions happened in investing and financing activities to be excluded from Cash Flow Statement.

(2) Company has no contractual commitments for the acquisition of Property,Plant & Equipment.

(3) Company has no Impairment loss during the period for Property, Plant & Equipment.

(4) Assets are periodically checked for active usage and those which are retired are written off.

(5) There are no temporarily idle property, plant and equipment.

(6) Intangible asset is amortised as per Schedule II.

(7) The carrying amount and remaining amortization period of any individual intangible asset are not material to the financial statements of the enterprise as a whole.

(8) There are no amounts of intangible assets whose title is restricted and the carrying amounts of intangible assets pledged as security for liabilities.

31 Investments:I. Profits and Losses with Regard to Investments have been Disclosed as under:

a) Profits and losses on disposal of current investments

b) Profits and losses on changes in the carrying amount of current investments

c) Profits and losses on disposal of long-term investments

d) Profits and losses on changes in the carrying amount of long- term investments

32 Segment Reporting:

The Company has considered the business segment as the primary reporting segment. The business segment have been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems. The Business segment comprises of manufacturing and Selling of transformers of all varities electrical transmission equipments.

34 Balance shown under head Sundry debtors, creditors and advances are subject to confirmation.

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