Notes to Accounts of Schneider Electric Infrastructure Ltd.

Mar 31, 2025

2.10 Provisions and contingencies

Provisions

Provisions are recognised only when:

(i) the Company has a present obligation (legal or
constructive) as a result of past event;

(ii) i t is probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation; and

(iii) 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. When
discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.

Contingent liabilities

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
company or a present obligation that is not recognised
because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where

there is a liability that cannot be recognised because
it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its
existence in the financial statements.

2.11 Employee benefits

i. Short-term obligations

Liabilities for wages and salaries, including non-monetary
benefits that are expected to be settled wholly within twelve
months after the end of the period in which the employees
render the related service are recognised in respect of
employee service upto the end of the reporting period and
are measured at the amount expected to be paid when the
liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

ii. Long-term employee benefit obligations

Gratuity

Gratuity liability is defined benefit obligation and is provided
for on the basis of an actuarial valuation on projected unit
credit (PUC) method made at the end of each financial
year. The Company''s gratuity fund scheme is managed
by trust maintained with Insurance companies to cover the
gratuity liability of the employees and premium paid to such
insurance companies is charged to the statement of profit
and loss.

Net interest is calculated by applying the discount rate to
the net balance of the defined benefit obligation and the fair
value of plan assets. The Company recognises the following
changes in the net defined benefit obligation as an expense
in the statement of profit and loss:

- service costs comprising current service costs, past-
service costs, gains and losses on curtailments and
non-routine settlements

- net interest expense or income
Re-measurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in
other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in the
balance sheet. Re-measurements are not reclassified to
profit or loss in the subsequent periods.

Provident fund and Superannuation fund

The Company''s contributions to defined contribution plans
(provident fund, ESI, superannuation fund) are recognized
in profit or loss when the employee renders related service.
The Company has no further obligations under these plans
beyond its periodic contributions.

Compensated absences

Accumulated leaves, which are expected to be utilized within
the next 12 months, are treated as short-term employee
benefits. The Company measures the expected cost of such
absences as the additional amount that it expects to pay as

a result of the unused entitlement that has accumulated at
the reporting date.

The Company treats accumulated leaves expected to
be carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such long¬
term compensated absences are provided for based on the
actuarial valuation using the projected unit credit method at
the year-end. Actuarial gains/losses are immediately taken
to the Statement of Profit and Loss and are not deferred.
The Company presents the leave as a current liability in the
balance sheet, to the extent it does not have an unconditional
right to defer its settlement for 12 months after the reporting
date. Where the Company has the unconditional legal and
contractual right to defer the settlement for a period beyond
12 months, the same is presented as non-current liability.

iii. Share based payments

Equity-settled transactions

Employees (including senior executives) of the Company
receive remuneration from the ultimate holding company
in the form of share-based payments, whereby employees
render services as consideration for equity instruments
(equity-settled transactions).

The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using an
appropriate valuation model.

That cost is recognised as employee benefits expense in
the statement of profit and loss over the period in which
the performance and/or service conditions are fulfilled.
The cumulative expense recognised for equity settled
transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired
and the Company''s best estimate of the number of equity
instruments that will ultimately vest. The statement of profit
and loss expense or credit for a period represents the
movement in cumulative expense recognised as at the
beginning and end of that period and is recognised in
employee benefits expense.

Service and non-market performance conditions are not
taken into account when determining the grant date fair
value of awards, but the likelihood of the conditions being
met is assessed as part of the Company''s best estimate
of the number of equity instruments that will ultimately
vest. Market performance conditions are reflected within
the grant date fair value. Any other conditions attached to
an award, but without an associated service requirement,
are considered to be non-vesting conditions. Non-vesting
conditions are reflected in the fair value of an award and
lead to an immediate expensing of an award unless there
are also service and/or performance conditions.

No expense is recognised for awards that do not ultimately
vest because non-market performance and/or service
conditions have not been met. Where awards include a

market or non-vesting condition, the transactions are treated
as vested irrespective of whether the market or non-vesting
condition is satisfied, provided that all other performance
and/or service conditions are satisfied.

When the terms of an equity-settled award are modified,
the minimum expense recognised is the expense had the
terms had not been modified, if the original terms of the
award are met. An additional expense is recognised for any
modification that increases the total fair value of the share-
based payment transaction or is otherwise beneficial to the
employee as measured at the date of modification. Where
an award is cancelled by the entity or by the counterparty,
any remaining element of the fair value of the award is
expensed immediately through profit or loss.

2.12 Financial instruments

A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity. Financial assets and financial
liabilities are recognised when the Company becomes a
party to the contractual provisions of the instrument.

i. Financial assets

Initial recognition and measurement
All financial assets are recognised initially at fair value plus,
in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable
to the acquisition of the financial asset. However, trade
receivables that do not contain a significant financing
component are measured at transaction price.

Subsequent measurement

For purpose of subsequent measurement, financial assets
are measured at:

- amortised cost

- fair value through other comprehensive income
(FVTOCI)

- fair value through statement of profit and loss (FVTPL)
Where financial assets are measured at fair value, gains
and losses are either recognised entirely in the statement
of profit and loss (i.e. fair value through profit or loss) or
recognised in other comprehensive income (i.e. fair value
through other comprehensive income).

Financial assets at amortized cost

A ‘debt instrument'' is measured at the amortised cost if both
the following conditions are met:

a) The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows, and

b) Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial assets are
subsequently measured at amortized cost using the effective
interest rate (EIR) method. Amortised cost is calculated by
taking into account any discount or premium on acquisition
and fees or costs that are an integral part of EIR. EIR is
the rate that exactly discounts the estimated future cash
receipts over the expected life of the financial instrument or
a shorter period, where appropriate, to the gross carrying
amount of the financial asset. When calculating the effective
interest rate, the Company estimates the expected cash
flows by considering all the contractual terms of the financial
instrument but does not consider the expected credit losses.
The EIR amortization is included in finance income in profit
or loss. The losses arising from impairment are recognised
in the profit or loss. This category generally applies to trade
and other receivables.

Financial assets at fair value through other comprehensive
income (FVTOCI)

A financial asset is measured at fair value through other
comprehensive income if following criteria are met:

a) The objective of the business model is achieved both
by collecting contractual cash flows and selling the
financial assets, and

b) The asset''s contractual cash flows represent SPPI.
Financial assets included within the FVTOCI category are
measured initially as well as at each reporting date at fair
value. Fair value movements are recognised in the other
comprehensive income (OCI), except for the recognition
of interest income, impairment gains or losses and foreign
exchange gains or losses which are recognised in statement
of profit and loss. On derecognition of asset, cumulative
gain or loss previously recognised in OCI is reclassified from
the equity to statement of profit and loss. Interest earned
whilst holding FVTOCI financial asset is reported as interest
income using the EIR method.

Financial assets at FVTPL

FVTPL is a residual category for financial instruments. Any
financial instrument, which does not meet the criteria for
amortized cost or FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a
financial instrument, which otherwise meets amortized
cost or FVTOCI criteria, as at FVTPL. However, such
election is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to as
‘accounting mismatch'').

Financial instruments included within the FVTPL category
are measured at fair value with all changes recognised in
the statement of profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial
asset or part of a Company of similar financial assets) is

primarily derecognised (i.e. removed from the Company''s
statement of financial position) when:

- t he rights to receive cash flows from the asset have
expired, or

- the Company has transferred its rights to receive cash
flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay
to a third party under a "pass through" arrangement
and either;

(a) the Company has transferred substantially all the risks
and rewards of the asset, or

(b) the Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but
has transferred control of the asset.

Impairment of financial assets

In accordance with IND AS 109, the Company applies
expected credit losses (ECL) model for measurement and
recognition of impairment loss on the following financial
assets and credit risk exposure:

- Financial assets measured at amortized cost;

- Financial assets measured at fair value through other
comprehensive income (FVTOCI);

The Company follows ‘simplified approach'' for recognition of
impairment loss allowance on trade receivables or contract
revenue receivables. The application of simplified approach
does not require the Company to track changes in credit
risk. Rather, it recognises impairment loss allowance based
on lifetime ECLs at each reporting date, right from its initial
recognition.

For recognition of impairment loss on other financial assets
and risk exposure, the Company determines whether there
has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly,
12-month ECL is used to provide for impairment loss.
However, if credit risk has increased significantly, lifetime
ECL is used. If, in subsequent period, credit quality of the
instrument improves such that there is no longer a significant
increase in credit risk since initial recognition, then the
Company reverts to recognizing impairment loss allowance
based on 12- months ECL.

ECL is the difference between all contractual cash flows that
are due to the Company in accordance with the contract
and all the cash flows that the entity expects to receive (i.e.,
all cash shortfalls), discounted at the original EIR.

The Company uses a provision matrix to determine
impairment loss allowance on the portfolio of trade
receivables. The provision matrix is based on its historically
observed default rates over the expected life of trade
receivable and is adjusted for forward looking estimates.
At every reporting date, the historical observed default rates
are updated and changes in the forward-looking estimates
are analysed.

ii. Financial liabilities:

Initial recognition and measurement
Financial liabilities are classified at initial recognition as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value
and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs.

The Company''s financial liabilities include borrowings, lease
liabilities, trade and other payables.

Subsequent Measurement

For the purpose of subsequent measurement, financial
liabilities are classified in two categories:

- Financial Liabilities at fair value through profit or loss

- Financial Liabilities at amortised cost (loan and
borrowings)

Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through
profit or loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing
in the near term.

Gains or losses on liabilities held for trading are recognised
in the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair
value through profit or loss are designated as such at the
initial date of recognition, and only if the criteria in IND AS
109 are satisfied. For liabilities designated as FVTPL, fair
value gains/ losses attributable to changes in own credit
risk are recognised in OCI. These gains/ losses are not
subsequently transferred to profit and loss. However, the
Company may transfer the cumulative gain or loss within
equity. All other changes in fair value of such liability are
recognised in the statement of profit and loss. The Company
has not designated any financial liability as at fair value
through profit and loss.

Financial liabilities at amortised cost (Loans and borrowings)
Borrowings are initially recognised at fair value, net of
transaction cost incurred. After initial recognition, interest¬
bearing loans and borrowings are subsequently measured at
amortized cost using the EIR method. Gains and losses are
recognised in statement of profit and loss when the liabilities
are derecognised as well as through the EIR amortization
process. Amortized cost is calculated by taking into account
any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortization is
included as finance costs in the statement of profit and loss.

Trade payables

These amounts represent liabilities for goods and services
provided to the Company prior to the end of financial year
which are unpaid. Trade and other payables are presented
as current liabilities unless payment is not due within 12
months after the reporting period. They are recognised
initially at fair value and subsequently measured at amortized
cost using EIR method.

Derecognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or the
terms of an existing liability are substantially modified, such
an exchange or modification is treated as the derecognition
of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is
recognised in the statement of profit or loss.

Offsetting of financial instruments:

Financials assets and financial liabilities are offset and the
net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis,
to realize the assets and settle the liabilities simultaneously

2.13 Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise
cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject
to insignificant risk of changes in value.

2.14 Leases

The Company assesses at contract inception whether a
contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration.

Where the Company is lessee

(i) Right to use assets

The Company assesses whether a contract contains a
lease, at inception of a contract. 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.

At the date of commencement of the 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. For these
short-term and low value leases, the Company recognizes
the lease payments as an operating expense.

Certain lease arrangements include the options to extend or
terminate the lease before the end of the lease term. ROU
assets and lease liabilities includes these options when it is
reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which
comprises the initial amount of the lease liability adjusted for
any lease payments made at or prior to the commencement
date of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses, if any.
Right-of-use assets are depreciated from the commencement
date on a straight-line basis over the shorter of the lease
term and the estimated useful lives of the assets, as follows:

If ownership of the leased asset transfers to the Company
at the end of the lease term or the cost reflects the exercise
of a purchase option, depreciation is calculated using the
estimated useful life of the asset.

Right of use assets are evaluated for recoverability whenever
events or changes in circumstances indicate that their
carrying amounts may not be recoverable. For the purpose
of impairment testing, the recoverable amount (i.e. the
higher of the fair value less cost to sell and the value-in-use)
is determined on an individual asset basis unless the asset
does not generate cash flows that are largely independent
of those from other assets. In such cases, the recoverable
amount is determined for the Cash Generating Unit (CGU)
to which the asset belongs.

(ii) Lease liabilities

The lease liability is initially measured at amortized cost
at the present value of the future lease payments. The
lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable, using
the incremental borrowing rates in the country of domicile
of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset
if the Company changes its assessment if whether it will
exercise an extension or a termination option.

Lease liability and ROU asset have been separately
presented in the balance sheet and lease payments have
been classified as financing cash flows.

2.15 Earnings per share

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year.

Diluted earnings per share are calculated by dividing
the net profit or loss for the period attributable to equity
shareholders by the weighted average number of shares
outstanding during the year as adjusted for the effect of all
potentially dilutive equity shares.

2.16 Use of estimates

The Company is required to make estimates and
assumptions that affect the reported amounts of assets,
liabilities, disclosure of contingent liabilities at the date
of the financial statements and the reported amounts of
revenue and expenses during the reporting period. Actual
results could differ from those estimates. The Company
bases its estimates on historical experience and on various
other assumptions that are believed to be reasonable, the
results of which form the basis for making judgements about
carrying values of assets and liabilities.

2.17 Exceptional items

The Company recognises exceptional item when items of
income and expenses within Statement of Profit and Loss
from ordinary activities are of such size, nature or incidence
that their disclosure is relevant to explain the performance
of the Company for the year.

2.18 Inventories

i. Raw materials, components, stores and spares are
valued at lower of cost and net realisable value after
providing cost of obsolescence, if any. However,
materials and other items held for use in the production
of inventories are not written down below cost if the
finished products in which they will be incorporated
are expected to be sold at or above cost. Cost of
raw materials, components and stores and spares is
determined on a weighted average basis.

ii. Work in progress and finished goods are valued at lower
of cost and net realizable value. Cost includes direct
materials and labour and proportion of manufacturing
overheads based on normal operating capacity. Cost
is determined on a weighted average basis.

iii. Traded goods are valued at lower of cost and net
realizable value. Cost includes cost of purchase and
other costs in bringing the inventories to their present
location and condition. Cost is determined on weighted
average basis.

iv. Net realizable value is the estimated selling price in
the ordinary course of business, less estimated costs
of completion and estimated costs necessary to make
the sale.

v. Stores and spares which do not meet the definition
of property, plant and equipment are accounted as
inventories.

2.19 Derivative financial instruments and hedge
accounting

The Company uses derivative financial instruments to
hedge its foreign currency and commodity risks. Derivatives
are measured at fair value. At the inception of the hedge
relationship, the entity documents the relationship between
the hedging instrument and the hedged item, along
with its risk management objectives and its strategy for
undertaking various hedge transactions. Furthermore, at
the inception of the hedge and on an ongoing basis, the
Company documents whether the hedging instrument is
highly effective in offsetting changes in fair values of the
hedged item attributable to the hedged risk.

The treatment of changes in the value of derivative depends
on their use as explained below:

Cash flow hedges: Derivatives are held to hedge the
uncertainty in timing or amount of future forecast cash
flows. Such derivatives are classified as being part of cash
flow hedge relationships. For an effective hedge, gains
and losses from changes in the fair value of derivatives are
recognised in other comprehensive income. Any ineffective
elements of the hedge are recognised in the statement of
profit and loss.

If the hedged cash flow relates to a non-financial asset, the
amount accumulated in equity is subsequently included
within the carrying value of that asset. For other cash flow
hedges, amounts accumulated in other comprehensive
income are taken to the statement of profit and loss at the
same time as the related cash flow.

When a derivative no longer qualifies for hedge accounting,
any cumulative gain or loss remains in equity until the related
cash flow occurs. When the cash flow takes place, the
cumulative gain or loss is taken to the statement of profit
and loss. If the hedged cash flow is no longer expected to
occur, the cumulative gain or loss is taken to the statement
of profit and loss immediately.

Fair value hedges: The Company designates certain
hedging instruments, which include derivatives, in respect
of foreign currency risk, as fair value hedges. Hedges of
foreign exchange risk on firm commitments are accounted
for as fair value hedge.

Changes in fair value of the designated portion of derivatives
that qualify as fair value hedges are recognised in profit or
loss immediately, together with any changes in the fair value
of the hedged asset or liability that are attributable to the
hedged risk. The change in the fair value of the designated
portion of hedging instrument and the change in the hedged
item attributable to the hedged risk are recognised in profit
or loss in the line item relating to the hedged item. Hedge
accounting is discontinued when the hedging instrument
expires or is sold, terminated, or exercised, or when it
no longer qualifies for hedge accounting. The fair value

adjustment to the carrying amount of the hedged item
arising from the hedged risk is amortised to profit or loss
from that date.

2.20 Borrowings

Borrowings are initially recognised at fair value, net of
transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the
borrowings using the effective interest method. Fees paid
on the establishment of loan facilities are recognised as
transaction costs of the loan to the extent that it is probable
that some or all of the facility will be drawn down. In this
case, the fee is deferred until the draw-down occurs. To the
extent there is no evidence that it is probable that some or
all of the facility will be drawn down, the fee is capitalised
as a prepayment for liquidity services and amortised over
the period of the facility to which it relates.

Borrowings are classified as current liabilities unless the
company has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting
period. Where there is a breach of a material provision of
a long-term loan arrangement on or before the end of the
reporting period with the effect that the liability becomes
payable on demand on the reporting date, the entity does
not classify the liability as current, if the lender agreed,
after the reporting period and before the approval of the
financial statements for issue, not to demand payment as a
consequence of the breach.

2.21 Fair value measurement

The Company measures financial instruments at fair value
at each balance sheet date.

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The
fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes
place either:

- In the principal market for asset or liability, or

- I n the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non- financial asset takes into
account a market participant''s ability to generate economic
benefits by using the asset in its highest and best use or by

selling it to another market participant that would use the
asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:

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

Level 2- Valuation techniques for which the lowest level input
that is significant to the fair value measurement is directly or
indirectly observable

Level 3- Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.

For assets and liabilities that are recognised in the financial
statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the
hierarchy by re-assessing categorization (based on the
lowest level input that is significant to fair value measurement
as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has
determined classes of assets and liabilities on the basis of
the nature, characteristics and risks of the asset or liability
and the level of the fair value hierarchy as explained above.

2.22 Preference Shares

Preference shares are separated into liability and equity
components based on the terms of the contract. On
issuance of the preference shares, the fair value of the
liability component is determined using an incremental
borrowing rate of the Company. This liability is classified
as financial liability measured at amortised cost (net of
transaction costs) until it is extinguished on redemption.

The remainder of the proceeds is allocated to the conversion
option that is recognised and included in equity net of tax
effect. The carrying amount of the conversion option is not
remeasured in subsequent years.

2.23 Significant accounting judgements, estimates and
assumptions

The preparation of the Company''s financial statements
requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities.
Uncertainty about these judgement, assumptions and

estimates could result in outcomes that require a material
adjustment to the carrying amount of the asset or liability
affected in future periods.

Judgements

In the process of applying the Company''s accounting
policies, management has made the following judgements,
which have the most significant effect on the amounts
recognised in the financial statements.

Leases

The Company determines the lease term as the non¬
cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably
certain to be exercised, or any periods covered by an option
to terminate the lease, if it is reasonably certain not to be
exercised. The Company has several lease contracts that
include extension and termination options. The Company
applies judgement in evaluating whether it is reasonably
certain whether or not to exercise the option to renew or
terminate the lease. That is, it considers all relevant factors
that create an economic incentive for it to exercise either the
renewal or termination. After the commencement date, the
Company reassesses the lease term if there is a significant
event or change in circumstances that is within its control
and affects its ability to exercise or not to exercise the option
to renew or to terminate.

Estimates and assumptions

The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next
financial year, are described below. The Company based its
assumptions and estimates on parameters available when the
financial statements were prepared. Existing circumstances
and assumptions about future developments, however, may
change due to market changes or circumstances arising
beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

(a) Taxes

Uncertainties exist with respect to the interpretation of
complex tax regulations, changes in tax laws, and the
amount and timing of future taxable income. Given the wide
range of business relationships and the long-term nature and
complexity of existing contractual agreements, differences
arising between the actual results and the assumptions
made, or future changes to such assumptions, could
necessitate future adjustments to tax income and expense
already recorded. the Company establishes provisions,
based on reasonable estimates. The amount of such
provisions is based on various factors, such as experience
of previous tax audits and differing interpretations of tax
regulations by the taxable entity and the responsible tax
authority.

Such differences of interpretation may arise on a wide
variety of issues depending on the conditions prevailing in
the respective domicile of the companies.

(b) Gratuity benefit

The cost of defined benefit plans (i.e. Gratuity benefit) is
determined using actuarial valuations. An actuarial valuation
involves making various assumptions which may differ
from actual developments in the future. These include the
determination of the discount rate, future salary increases,
mortality rates and future pension increases. Due to the
complexity of the valuation, the underlying assumptions
and its long-term nature, a defined benefit obligation
is highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date. In
determining the appropriate discount rate, management
considers the interest rates of long-term government bonds
with extrapolated maturity corresponding to the expected
duration of the defined benefit obligation. The mortality
rate is based on publicly available mortality tables for the
specific countries. Future salary increases and pension
increases are based on expected future inflation rates for the
respective countries. Further details about the assumptions
used, including a sensitivity analysis, are given in note 31.

(c) Fair value measurement of financial instrument

When the fair value 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 (DCF) model. The inputs to these models are taken from
observable markets where possible, but where this is not
feasible, a degree of judgement is required in establishing
fair values. Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes in
assumptions about these factors could affect the reported
fair value of financial instruments.

(d) Provision for expected credit losses of trade receivables
and contract assets

The Company uses a provision matrix to calculate ECLs
for trade receivables and contract assets. The provision
rates are based on days past due for groupings of various
customer segments that have similar loss patterns (i.e.,
by geography, product type, customer type and rating,
and coverage by letters of credit and other forms of credit
insurance).

The provision matrix is initially based on the Company''s
historical observed default rates. The Company will calibrate
the matrix to adjust the historical credit loss experience

with forward-looking information. For instance, if forecast
economic conditions (i.e., gross domestic product) are
expected to deteriorate over the next year which can lead
to an increased number of defaults in the manufacturing
sector, the historical default rates are adjusted. At every
reporting date, the historical observed default rates are
updated and changes in the forward-looking estimates are
analysed.

The assessment of the correlation between historical
observed default rates, forecast economic conditions
and ECLs is a significant estimate. The amount of ECLs
is sensitive to changes in circumstances and of forecast
economic conditions. The Company''s historical credit loss
experience and forecast of economic conditions may also
not be representative of customer''s actual default in the
future. The information about the ECLs on the Company''s
trade receivables and contract assets is disclosed in Note
38.

(e) Warranty provision

Warranty Provisions are measured at discounted present
value using pre-tax discount rate that reflects the current
market assessments of the time value of money and the risks
specific to the liability. Warranty provisions is determined
based on the historical percentage of warranty expense to
sales for the same types of goods for which the warranty
is currently being determined. The same percentage to
the sales is applied for the current accounting period to
derive the warranty expense to be accrued. It is adjusted to
account for unusual factors related to the goods that were
sold, such as defective inventory lying at the depots. It is
very unlikely that actual warranty claims will exactly match
the historical warranty percentage, so such estimates are
reviewed annually for any material changes in assumptions
and likelihood of occurrence.

(f) Restructuring provisions

Restructuring provisions are recognised only when the
Company has a constructive obligation, which is when a
detailed formal plan identifies the business or part of the
business concerned, the location and number of employees
affected, a detailed estimate of the associate costs, and an
appropriate timeline, and the employees affected have been
notified of the plan''s main features.

(g) Provision for litigations

A provision is recognised when the Company has a present
obligation as result of a past event and it is probable that the
outflow of resources will be required to settle the obligation,
in respect of which a reliable estimate can be made. These

are reviewed at each balance sheet date and adjusted to
reflect the current best estimates. Contingent liabilities are
not recognised in the financial statements.

(h) Estimated useful life of property, plant and equipment

The Company uses its technical expertise along with
historical and industry trends for determining the economic
life of an asset/component of an asset. The useful lives
are reviewed by management periodically and revised,
if appropriate. In case of a revision, the unamortised
depreciable amount is charged over the remaining useful
life of the assets.

(i) Revenue rom contracts with customers
The percentage-of-completion (POC) method places
considerable importance on accurate estimates to the
extent of progress towards completion and may involve
estimates on the scope of deliveries and services required
for fulfilling the contractually defined obligations. These
significant estimates include total contract costs, total
contract revenues, contract risks, including technical,
political and regulatory risks, and other judgments. The
Company re-assesses these estimates on periodic basis
and makes appropriate revisions accordingly.

Description of nature and purpose of each reserve

Equity component of preference shares - The equity component of preference shares has been measured as the
difference between the carrying value and the fair value of the preference shares.

Equity component of inter corporate deposits - The equity component of inter corporate deposits has been measured
as the difference between the carrying value of the borrowing and the fair value of the borrowing.

Share based payments reserve - The fair value of the equity-settled share based payment transactions is recognised
in Statement of Profit and Loss with corresponding credit to share based payments reserve.

Capital reserve - The Company had acquired the distribution business of erstwhile Areva T&D India Limited, now GE
Vernova T&D India Limited through a Scheme of arrangement for demerger. At that time, the excess of net assets
acquired, over the cost of consideration paid was treated as capital reserve.

General reserve - The Company had acquired the distribution business of erstwhile Areva T&D India Limited, now
GE Vernova T&D India Limited through a Scheme of arrangement for demerger. The general reserve was transferred
from the demerged Company to the tune of ''14,948 lakhs. Further, the Company had transferred general reserve from
surplus balance in the statement of profit and loss to the tune of '' 398 lakhs.

Retained Earnings - Retained earnings are the profits that the Company has earned till date, less any transfers to
general reserve, dividends or other distributions paid to shareholders.

j) The Company''s best estimate of expense for the next annual reporting period is '' 582 lakhs (March 31, 2024:
'' 557 lakhs)

k) Expected contribution for the next year is '' 481 lakhs.

l) Salary increase rate takes into account of inflation, seniority, promotion and other relevant factors on long term
basis.

m) The discount rate is based upon the market yields available on Government bonds at the accounting date with a
term that matches that of the liabilities.

n) The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined
benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting
period.

o) Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company
is exposed to various risks as follow -

A) Salary Increases- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate
assumption in future valuations will also increase the liability.

B) Investment Risk - If Plan is funded then assets liabilities mismatch and actual investment return on assets lower
than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan''s liability.

D) Mortality and disability - Actual deaths and disability cases proving lower or higher than assumed in the valuation
can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal
rates at subsequent valuations can impact Plan''s liability.

33 LEASES

As a lessee

The Company has lease contracts for various properties (e.g. sales office, Warehouse, leasehold land, buildings etc.)
used in its operations. Leases of property other than leasehold land and building generally have lease terms upto 20
years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the
Company is restricted from assigning and subleasing the leased assets.

The Company also has certain leases of property and machinery with lease terms of 12 months or less and leases of
office equipment with low value. The Company applies the ‘short-term lease'' and ‘lease of low-value assets'' recognition
exemptions for these leases.

d) The Company had total cash outflows for leases of '' 1,155 lakhs during the year ended March 31,2025 ( March
31,2024: '' 442 lakhs).

The Company also had non-cash additions as at March 31, 2025 to right-of-use assets of '' 1,912 lakhs ( March
31,2024 : '' 7,169 lakhs) and lease liabilities of '' 1,912 lakhs (March 31,2024: '' 7,169 lakhs).

e) The Company has several lease contracts that include extension and termination options. These options are
negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the
Company''s business needs. Management exercises significant judgement in determining whether these extension
and termination options are reasonably certain to be exercised.

A.2 Indirect Tax cases [Mixed cases with GE Vernova T&D India Limited (formerly Alstom T&D India Limited)]

Post demerger, Company and GE Vernova T&D India Limited (formerly Alstom T&D India Limited) have bifurcated the
total outstanding demands of Excise/ Service Tax and Sales tax in accordance with the arrangement agreed between
the two Companies (mixed cases). Accordingly, GE is contesting the total outstanding demands, before various
appellate authorities, including the share of the Company.

35 RELATED PARTY TRANSACTIONS (CONTD.)

2. In addition to the above transactions, Schneider Electric Industries SAS, France (the ultimate holding company)
has given letter of comfort to banks of the Company based on which banks have given unsecured loan facilities
(at the prevailing interest rate) to the Company. This letter is not intended as a legal guarantee on the part of the
ultimate holding company.

3. The Company has cash pooling arrangement with Schneider Electric IT Business India Private Limited, India,
(SEITB), a fellow subsidiary, under which the Company''s banker automatically transfers funds from SEITB to the
Company''s bank account in case of requirement of fund at the end of each day up to the approved limits. The
details are as below:

The management assessed that bank balances, trade receivables, trade payables, short term borrowings and other
current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and
assumptions were used to estimate the fair values:

1. The fair values of the interest-bearing borrowings and loans are determined by using Discounted cashflow method
(DCF) using discount rate that reflects the Company''s borrowing rate as at the end of the reporting period. The
own non-performance risk as at March 31,2025 was assessed to be insignificant.

2. Long-term receivables/payables are evaluated by the Company based on parameters such as interest rates, risk
factors, individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based
on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable,
either directly or indirectly

Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on
observable market data

38 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main
purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets
include loans, trade and other receivables and cash and bank balances that are derived directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The
Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks and also ensure that the Company''s
financial risk activities are governed by appropriate policies and procedures and that financial risks are identified,
measured and managed in accordance with the Company''s policies and risk objectives.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:
(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks,
such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and
borrowings, deposits and foreign currency receivables and payables. The sensitivity analysis in the following sections
relate to the position as at March 31 2025. The sensitivity of the relevant Profit and Loss item is the effect of the assumed
changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March
31,2025

(i) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates
relates primarily to the Company''s operating activities (when revenue or expense is denominated in foreign currency).
Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries.
The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established
risk management policies.

Foreign currency risk sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD, EUR and other exchange
rates, with all other variables held constant. The impact on the Company profit before tax is due to changes in the fair
value of monetary assets and liabilities. Foreign currency exposures recognised by the Company that have not been
hedged by a derivative instrument or otherwise are as under:

(ii) Interest Rate Risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will f

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Mar 31, 2024

2.11 Provisions and contingencies Provisions

Provisions are recognised only when:

(i) t he Company has a present obligation (legal or constructive) as a result of past event;

(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(iii) 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. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent

liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

2.12 Employee benefits

i. Short-term obligations

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognised in respect of employee service upto the end of the reporting period and are measured at the amount expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

ii. Long-term employee benefit obligations Gratuity

Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit (PUC) method made at the end of each financial year. The Company''s gratuity fund scheme is managed by trust maintained with Insurance companies to cover the gratuity liability of the employees and premium paid to such insurance companies is charged to the statement of profit and loss.

Net interest is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:

- service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements

- net interest expense or income

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet. Remeasurements are not reclassified to profit or loss in the subsequent periods.

Provident fund and Superannuation fund

The Company''s contributions to defined contribution plans (provident fund, ESI, superannuation fund) are recognized in profit or loss when the employee renders related service. The Company has no further obligations under these plans beyond its periodic contributions.

Compensated absences

Accumulated leaves, which are expected to be utilized within the next 12 months, are treated as short-term employee benefits. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The Company treats accumulated leaves expected to be carried forward beyond twelve months, as longterm employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/ losses are immediately taken to the Statement of Profit and Loss and are not deferred. The Company presents the leave as a current liability in the balance sheet, to the extent it does not have an unconditional right to defer its settlement for 12 months after the reporting date. Where the Company has the unconditional legal and contractual right to defer the settlement for a period beyond 12 months, the same is presented as non-current liability.

iii. Share based payments Equity-settled transactions

Employees (including senior executives) of the Company receive remuneration from the ultimate holding company in the form of share-based payments, whereby employees render services as consideration for equity instruments (equity-settled transactions).

The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model.

That cost is recognised as employee benefits expense in the statement of profit and loss over the period in which the performance and/or service conditions are fulfilled. The cumulative expense recognised for equity settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company''s best estimate of the number of equity instruments that will ultimately vest. The statement of profit and loss expense or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in employee benefits expense.

Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Company''s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an

associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions.

No expense is recognised for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.

When the terms of an equity-settled award are modified, the minimum expense recognised is the expense had the terms had not been modified, if the original terms of the award are met. An additional expense is recognised for any modification that increases the total fair value of the share-based payment transaction or is otherwise beneficial to the employee as measured at the date of modification. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss.

2.13 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

i. Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at transaction price.

Subsequent measurement

For purpose of subsequent measurement, financial assets are measured at:

- amortised cost

- fair value through other comprehensive income (FVTOCI)

- fair value through statement of profit and loss (FVTPL)

Where financial assets are measured at fair value, gains and losses are either recognised entirely

in the statement of profit and loss (i.e. fair value through profit or loss) or recognised in other comprehensive income (i.e. fair value through other comprehensive income).

Financial assets at amortized cost

A ‘debt instrument'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of EIR. EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses. The EIR amortization is included in finance income in profit or loss. The losses arising from impairment are recognised in the profit or loss. This category generally applies to trade and other receivables.

Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at fair value through other comprehensive income if following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset''s contractual cash flows represent SPPI.

Financial assets included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognised in the other comprehensive income (OCI), except for the recognition of interest income, impairment gains or losses and foreign exchange gains or losses which are recognised in statement of profit and loss. On derecognition of asset, cumulative gain or loss previously

recognised in OCI is reclassified from the equity to statement of profit and loss. Interest earned whilst holding FVTOCI financial asset is reported as interest income using the EIR method.

Financial assets at FVTPL

FVTPL is a residual category for financial instruments. Any financial instrument, which does not meet the criteria for amortized cost or FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a financial instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch'').

Financial instruments included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognised (i.e. removed from the Company''s statement of financial position) when:

- t he rights to receive cash flows from the asset have expired, or

- the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a "pass through" arrangement and either;

(a) the Company has transferred substantially all the risks and rewards of the asset, or

(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of financial assets

In accordance with IND AS 109, the Company applies expected credit losses (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

- Financial assets measured at amortized cost;

- Financial assets measured at fair value through other comprehensive income (FVTOCI);

The Company follows ‘simplified approach'' for recognition of impairment loss allowance on trade receivables or contract revenue receivables. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on

lifetime ECLs at each reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the Company reverts to recognizing impairment loss allowance based on 12- months ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR.

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default rates over the expected life of trade receivable and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

ii. Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company''s financial liabilities include borrowings, lease liabilities, trade and other payables.

Subsequent Measurement

For the purpose of subsequent measurement, financial liabilities are classified in two categories:

- Financial Liabilities at fair value through profit or loss

- Financial Liabilities at amortised cost (loan and borrowings)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair

value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

Gains or losses on liabilities held for trading are recognised in the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in IND AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognised in OCI. These gains/ losses are not subsequently transferred to profit and loss. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit and loss. The Company has not designated any financial liability as at fair value through profit and loss.

Financial liabilities at amortised cost (Loans and borrowings)

Borrowings are initially recognised at fair value, net of transaction cost incurred. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognised in statement of profit and loss when the liabilities are derecognised as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

Trade payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at fair value and subsequently measured at amortized cost using EIR method.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Offsetting of financial instruments:

Financials assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously

2.14 Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to insignificant risk of changes in value.

2.15 Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Where the Company is lessee

(i) Right to use assets

The Company assesses whether a contract contains a lease, at inception of a contract. 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.

At the date of commencement of the 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 (shortterm leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over

I f ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-inuse) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

(ii) Lease liabilities

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the balance sheet and lease payments have been classified as financing cash flows.

16 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year as adjusted for the effect of all potentially dilutive equity shares.

2.17 Use of estimates

The Company is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgements about carrying values of assets and liabilities.

2.18 Exceptional items

The Company recognises exceptional item when items of income and expenses within Statement of Profit and Loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the Company for the year.

2.19 Inventories

i. Raw materials, components, stores and spares are valued at lower of cost and net realisable value after providing cost of obsolescence, if any. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost of raw materials, components and stores and spares is determined on a weighted average basis.

ii. Work in progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour and proportion of manufacturing overheads based on normal operating capacity. Cost is determined on a weighted average basis.

iii. Traded goods are valued at lower of cost and net realizable value. Cost includes cost of purchase and other costs in bringing the inventories to their present location and condition. Cost is determined on weighted average basis.

iv. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

v. Stores and spares which do not meet the definition of property, plant and equipment are accounted as inventories.

2.20 Derivative financial instruments and hedge accounting

The Company uses derivative financial instruments to hedge its foreign currency and commodity risks. Derivatives are measured at fair value. At the inception

of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values of the hedged item attributable to the hedged risk.

The treatment of changes in the value of derivative depends on their use as explained below:

Cash flow hedges: Derivatives are held to hedge the uncertainty in timing or amount of future forecast cash flows. Such derivatives are classified as being part of cash flow hedge relationships. For an effective hedge, gains and losses from changes in the fair value of derivatives are recognised in other comprehensive income. Any ineffective elements of the hedge are recognised in the statement of profit and loss.

If the hedged cash flow relates to a non-financial asset, the amount accumulated in equity is subsequently included within the carrying value of that asset. For other cash flow hedges, amounts accumulated in other comprehensive income are taken to the statement of profit and loss at the same time as the related cash flow.

When a derivative no longer qualifies for hedge accounting, any cumulative gain or loss remains in equity until the related cash flow occurs. When the cash flow takes place, the cumulative gain or loss is taken to the statement of profit and loss. If the hedged cash flow is no longer expected to occur, the cumulative gain or loss is taken to the statement of profit and loss immediately.

Fair value hedges: The Company designates certain hedging instruments, which include derivatives, in respect of foreign currency risk, as fair value hedges. Hedges of foreign exchange risk on firm commitments are accounted for as fair value hedge.

Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The change in the fair value of the designated portion of hedging instrument and the change in the hedged item attributable to the hedged risk are recognised in profit or loss in the line item relating to the hedged item. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the

hedged item arising from the hedged risk is amortised to profit or loss from that date.

2.21 Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

2.22 Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non- financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and

best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

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

Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

2.23 Preference Shares

Preference shares are separated into liability and equity components based on the terms of the contract. On issuance of the preference shares, the fair value of the liability component is determined using an incremental borrowing rate of the Company. This liability is classified as financial liability measured at amortised cost (net of transaction costs) until it is extinguished on redemption.

The remainder of the proceeds is allocated to the conversion option that is recognised and included in equity net of tax effect. The carrying amount of the conversion option is not remeasured in subsequent years.

2.24 Significant accounting judgements, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts

of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these judgement, assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements.

Leases

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(a) Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes

to such assumptions, could necessitate future adjustments to tax income and expense already recorded. the Company establishes provisions, based on reasonable estimates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.

Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the companies.

(b) Gratuity benefit

The cost of defined benefit plans (i.e. Gratuity benefit) is determined using actuarial valuations. An actuarial valuation involves making various assumptions which may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. In determining the appropriate discount rate, management considers the interest rates of long-term government bonds with extrapolated maturity corresponding to the expected duration of the defined benefit obligation. The mortality rate is based on publicly available mortality tables for the specific countries. Future salary increases and pension increases are based on expected future inflation rates for the respective countries. Further details about the assumptions used, including a sensitivity analysis, are given in note 31.

(c) Fair value measurement of financial instrument

When the fair value 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 (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

(d) Provision for expected credit losses of trade receivables and contract assets

The Company uses a provision matrix to calculate ECLs for trade receivables and contract assets.

The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography, product type, customer type and rating, and coverage by letters of credit and other forms of credit insurance).

The provision matrix is initially based on the Company''s historical observed default rates. The Company will calibrate the matrix to adjust the historical credit loss experience with forwardlooking information. For instance, if forecast economic conditions (i.e., gross domestic product) are expected to deteriorate over the next year which can lead to an increased number of defaults in the manufacturing sector, the historical default rates are adjusted. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Company''s historical credit loss experience and forecast of economic conditions may also not be representative of customer''s actual default in the future. The information about the ECLs on the Company''s trade receivables and contract assets is disclosed in Note 38.

(e) Warranty provision

Warranty Provisions are measured at discounted present value using pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the liability. Warranty provisions is determined based on the historical percentage of warranty expense to sales for the same types of goods for which the warranty is currently being determined. The same percentage to the sales is applied for the current accounting period to derive the warranty expense to be accrued. It is adjusted to account for unusual factors related to the goods that were sold, such as defective inventory lying at the depots. It is very unlikely that actual warranty claims will exactly match the historical warranty percentage, so such estimates are reviewed annually for any material changes in assumptions and likelihood of occurrence.

(f) Restructuring provisions

Restructuring provisions are recognised only when the Company has a constructive obligation, which is when a detailed formal plan identifies

the business or part of the business concerned, the location and number of employees affected, a detailed estimate of the associate costs, and an appropriate timeline, and the employees affected have been notified of the plan''s main features.

(g) Provision for litigations

A provision is recognised when the Company has a present obligation as result of a past event and it is probable that the outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements.

(h) Estimated useful life of property, plant and equipment

The Company uses its technical expertise along with historical and industry trends for

determining the economic life of an asset/ component of an asset. The useful lives are reviewed by management periodically and revised, if appropriate. In case of a revision, the unamortised depreciable amount is charged over the remaining useful life of the assets.

(i) Revenue from contracts with customers

The percentage-of-completion (POC) method places considerable importance on accurate estimates to the extent of progress towards completion and may involve estimates on the scope of deliveries and services required for fulfilling the contractually defined obligations. These significant estimates include total contract costs, total contract revenues, contract risks, including technical, political and regulatory risks, and other judgments. The Company re-assesses these estimates on periodic basis and makes appropriate revisions accordingly.

Description of nature and purpose of each reserve

Equity component of preference shares - The equity component of preference shares has been measured as the difference between the carrying value and the fair value of the preference shares.

Equity component of inter corporate deposits - The equity component of inter corporate deposits has been measured as the difference between the carrying value of the borrowing and the fair value of the borrowing.

Share based payments reserve - The fair value of the equity-settled share based payment transactions is recognised in Statement of Profit and Loss with corresponding credit to Share based payments reserve.

Capital reserve - The Company had acquired the distribution business of erstwhile Areva T&D India Limited, now GE T&D India Limited through a Scheme of arrangement for demerger. At that time, the excess of net assets acquired, over the cost of consideration paid was treated as capital reserve.

General reserve - The Company had acquired the distribution business of erstwhile Areva T&D India Limited, now GE T&D India Limited through a Scheme of arrangement for demerger. The general reserve was transferred from the demerged Company to the tune of ''14,948 lakhs. Further, the Company had transferred general reserve from surplus balance in the statement of profit and loss to the tune of '' 398 lakhs.

Retained Earnings - Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

37 FAIR VALUE MEASUREMENTS (CONTD.)

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

1. The fair values of the interest-bearing borrowings and loans are determined by using Discounted cashflow method (DCF) using discount rate that reflects the Company''s borrowing rate as at the end of the reporting period. The own non-performance risk as at March 31,2024 was assessed to be insignificant.

2. Long-term receivables/payables are evaluated by the Company based on parameters such as interest rates, risk factors, individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data

38 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables and cash and bank balances that are derived directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks and also ensure that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below: (a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits and foreign currency receivables and payables. The sensitivity analysis in the following sections relate to the position as at March 31 2024. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31,2024

(i) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

(iii) Commodity Price Risk

The Company is affected by the price volatility of certain commodities. Its operating activities require manufacturing, designing, building and servicing technologically advanced products and systems for electricity distribution including products such as distribution transformers, medium voltage switchgears, medium and low voltage protection relays and electricity distribution and automation equipment. It therefore require a continuous supply of copper and Aluminium being the major input used in the manufacturing. Due to the significantly increased volatility of the price of the Copper and aluminium, the Company has entered into various purchase contracts for these material for which there is an active market. The Company maintain the level of these stock as per the requirement of business and market which are discussed by the management on regular basis. Company operates in the way that saving / impact due to change in commodity prices are pass on to the customer and therefore impact on profit due to change in price of commodity is unascertainable.

(b) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation 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) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management.

An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

(ii) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made in the risk free bank deposits. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter party''s potential failure to make payments.

The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2024 and March 31,2023 is the carrying amounts . Trade Receivables and other financial assets are written off when there is no reasonable expectation of recovery, such as debtor failing to engage in the repayment plan with the Company. The Company''s maximum exposure relating to financial assets is noted in liquidity table below.

For the purposes of Company''s capital management, Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31,2024 and March 31,2023.

45 Additional regulatory information required by Schedule III of Companies Act, 2013

(i) Details of Benami property: No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(ii) Utilisation of borrowed funds and share premium: 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:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(iii) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(iv) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(v) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(vi) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(vii) The Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment.

(viii) Valuation of Property Plant & Equipment and intangible asset: The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(ix) The Company has not been declared as a Willful Defaulter by any bank or financial institution or government or any government authority

46 As per the MCA notification dated August 05, 2022, the Central Government has notified the Companies (Accounts) Fourth Amendment Rules, 2022. As per the amended rules, the Companies are required to maintain back-up of the books of account and other relevant books and papers in electronic mode that should be accessible in India at all the time. Also, the Companies are required to create backup of accounts on servers physically located in India on a daily basis. The books of accounts along with other relevant records and papers of the Company are maintained in electronic mode. These are readily accessible in India at all times and a backup is maintained in servers outside India. The Company and its officers have full access to the data in the servers located outside India.

47 The figures have been rounded off to the nearest lakhs of rupees. The figure 0 wherever stated represents value less than '' 50,000/-.

48 The comparative figures have been regrouped/ rearranged wherever considered necessary to make them comparable with current year numbers.

The accompanying notes form an integral part of the financial statements.

As per our report of even date attached

For S.N. Dhawan & CO LLP For and on behalf of Board of Directors of

Chartered Accountants Schneider Electric Infrastructure Limited

Firm Registration No.: 000050N/N500045

Udai Singh Deepak Sharma

Managing Director & CEO Director

DIN:10311583 DIN : 10059493

Date: May 23, 2024 Date: May 23, 2024

Place: Mumbai Place: Gurugram

Pankaj Walia Suparna Banerjee Bhattacharyya Bhumika Sood

Partne

---

Mar 31, 2023

Terms/rights attached to equity shares

The Company has equity shares having par value of '' 2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Description of nature and purpose of each reserve

Share based payments reserve - The fair value of the equity-settled share based payment transactions is recognised in Statement of Profit and Loss with corresponding credit to Share based payments reserve.

Capital reserve - The Company had acquired the distribution business of erstwhile Areva T&D India Limited, now GE T&D India Limited through a Scheme of arrangement for demerger. At that time, the excess of net assets acquired, over the cost of consideration paid was treated as capital reserve.

General reserve - The Company had acquired the distribution business of erstwhile Areva T&D India Limited, now GE T&D India Limited through a Scheme of arrangement for demerger. The general reserve was transferred from the demerged Company to the tune of '' 1,494.86 million. Further, the Company had transferred general reserve from surplus balance in the statement of profit and loss to the tune of '' 39.77 million.

Equity component of inter corporate deposits - The equity component of inter corporate deposits has been measured as the difference between the carrying value of the borrowing and the fair value of the borrowing.

Equity component of preference shares - The equity component of preference shares has been measured as the difference between the carrying value and the fair value of the preference shares.

a. Inter corporate deposits from group company Schneider Electric IT Business India Private Limited carries floating interest rate in the range of 5.67% to 7.32% for the year ended March 31, 2023 (March 31, 2022 : 5.30% to 5.65%) which is due for maturity on June 27, 2028.

b. Each holder of cumulative redeemable preference shares is entitled to one vote per share only on resolution placed before the company which directly affect the rights attached to cumulative redeemable preference shares. The tenure of 8% cumulative redeemable preference shares are of 20 years from date of allotment i.e for Energy Grid Automation Transformers and Switchgears India Private Limited is August 11, 2015 and for Schneider Electric IT Business India Private Limited is March 15, 2016.

d) The Company had total cash outflows for leases of '' 58.17 million during the year ended March 31, 2023 ( March 31, 2022: '' 50.22 million). The Company also had non-cash additions as at March 31, 2023 to right-of-use assets of '' 44.93 million ( March 31, 2022 : '' 40.01) and lease liabilities of '' 44.93 million ( March 31, 2022: '' 40.01 million).

e) The Company has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Company''s business needs. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised.

33. COMMITMENTS AND CONTINGENCIES A. Contingent Liabilities		('' in million)
	As at	As at
	March 31,2023	March 31,2022
A.1 Income Tax
Contingent liabilities	246.33	246.33

Contingent liability on account of certain information/details yet to be submitted to the assessing officer. The management believes that all the required information will be submitted to the tax authorities at the time of hearing and there is no potential exposure on account of the same.

B. Commitments		('' in million)
	As at March 31,2023	As at March 31,2022
Estimated amount of contracts remaining to be executed on capital account and not provided (net of advances)	135.19	96.87
Bank guarantees	887.22	791.06
	1,022.41	887.93

35. Segment Reporting

The Chief Operating Decision Maker “CODM” reviews the operations of the Company as a whole, i.e. single primary business segment viz. product and systems for electricity distribution, hence, there are no reportable segments as per Ind AS 108 “Operating Segments”.

The management assessed that bank balances, trade receivables, trade payables, short term borrowings and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

1. The fair values of the interest-bearing borrowings and loans are determined by using Discounted cashflow method (DCF) using discount rate that reflects the Company''s borrowing rate as at the end of the reporting period. The own non-performance risk as at March 31, 2023 was assessed to be insignificant.

2 Long-term receivables/payables are evaluated by the Company based on parameters such as interest rates, risk factors, individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data

37. Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables and cash and bank balances that are derived directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks and also ensure that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits and foreign currency receivables and payables. The sensitivity analysis in the following sections relate to the position as at March 31 2023. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2023

(i) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

Foreign currency risk sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD, EUR and other exchange rates, with all other variables held constant. The impact on the Company profit before tax is due to changes in the fair value of monetary assets and liabilities. Foreign currency exposures recognised by the Company that have not been hedged by a derivative instrument or otherwise are as under:

(ii) Interest Rate Risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long term debt obligation at floating interest rates. The Company''s borrowings outstanding as at March 31, 2023 comprise of fixed rate loans and accordingly, are not exposed to risk of fluctuation in market interest rate.

(iii) Commodity Price Risk

The Company is affected by the price volatility of certain commodities. Its operating activities require manufacturing, designing, building and servicing technologically advanced products and systems for electricity distribution including products such as distribution transformers, medium voltage switchgears, medium and low voltage protection relays and electricity distribution and automation equipment. It therefore require a continuous supply of copper and Aluminium being the major input used in the manufacturing. Due to the significantly increased volatility of the price of the Copper and aluminium, the Company has entered into various purchase contracts for these material for which there is an active market. The Company maintain the level of these stock as per the requirement of business and market which are discussed by the management on regular basis. Company operates in the way that saving / impact due to change in commodity prices are pass on to the customer and therefore impact on profit due to change in price of commodity is unascertainable.

(b) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation 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) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management.

An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

(ii) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made in the risk free bank deposits. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter party''s potential failure to make payments.

The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2023 and March 31, 2022 is the carrying amounts . Trade Receivables and other financial assets are written off when there is no reasonable expectation of recovery, such as debtor failing to engage in the repayment plan with the Company. The Company''s maximum exposure relating to financial assets is noted in liquidity table below.

(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company manages liquidity risk by maintaining adequate banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

38. Capital Management

For the purposes of Company''s capital management, Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2023 and March 31, 2022.

40.4 Performance obligation:

Information about the Company''s performance obligations are summarised below:

Sale of goods

The performance obligation is satisfied upon delivery of the goods.

Services

The Performance obligation is satisfied at point of time upon completion of service and pro-rata over the period of contract as and when service is rendered.

Long term Contract

The performance obligation is satisfied over a period of time. The Company uses cost based input method for measuring progress for performance obligation satisfied over time.

41.CORPORATE SOCIAL RESPONSIBILITY

As per provisions of section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average net profits of the preceding three financial years towards Corporate Social Responsibility (“CSR”). Accordingly a CSR committee has been formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013. The Company has contributed and paid a sum of '' 4.83 million (March 31, 2022: Nil) towards this cause and debited the same to the Statement of Profit And Loss. The funds are primary allocated to Schneider Electric India Foundation (SEIF), a society registered under section 12A of the Income Tax Act, 1961 for promoting social integration and vocational training of disadvantaged youths and electrification of remote villages with limited resources.

42. As per the Transfer Pricing Rules of the Income Tax Act, 1961 every company is required to get a transfer pricing study conducted to determine whether the transactions with associated enterprises were undertaken at an arm''s length basis for each financial year end. Transfer pricing study for the transaction pertaining to the year ended March 31, 2023 is currently in progress and hence adjustments if any which may arise there from have not been taken into account in these financial statements for the year ended March 31, 2023 and will be effective in the financial statements for the year ended March 31, 2023. However, in the opinion of the Company''s management, adjustments, if any, are not expected to be material.

43. As at the end of current year, the Company has total accumulated losses aggregating to '' 2,090.36 million. The management has evaluated availability of sufficient funding to meet Company''s obligations. For such evaluation, the management has considered various factors which include estimated future cash flows, availability of working capital facilities sanctioned by the banks and borrowings sourced from group companies. Basis such evaluation and mitigating actions which included securing of continuation of the short-term and renewal of the long-term borrowings from group companies, the management is confident that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. Therefore, these financial results have been prepared based on going concern assumption.

44. Disclosure Of Transactions With Struck Off Companies

The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

45. Additional regulatory information required by Schedule III of Companies Act, 2013

(i) Details of Benami property: No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder

(ii) Utilisation of borrowed funds and share premium: 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:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(iii) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(iv) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(v) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(vi) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year

(vii) The Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment.

(viii) Valuation of Property Plant & Equipment and intangible asset: The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(ix) The Company has not been declared as a Willful Defaulter by any bank or financial institution or government or any government authority

46. As per the MCA notification dated August 05, 2022, the Central Government has notified the Companies (Accounts) Fourth Amendment Rules, 2022. As per the amended rules, the Companies are required to maintain back-up of the books of account and other relevant books and papers in electronic mode that should be accessible in India at all the time. Also, the Companies are required to create backup of accounts on servers physically located in India on a daily basis. The books of accounts along with other relevant records and papers of the Company are maintained in electronic mode. These are readily accessible in India at all times and a backup is maintained in servers in France. The Company and its officers have full access to the data in the servers located in France.

47. The figures have been rounded off to the nearest millions of rupees up to two decimal places. The figure 0.00 wherever stated represents value less than '' 10,000.

48. The comparative figures have been regrouped/ rearranged wherever considered necessary to make them comparable with current year numbers.

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Mar 31, 2022

Description of nature and purpose of each reserve

Share based payments reserve - The fair value of the equity-settled share based payment transactions is recognised in Statement of Profit and Loss with corresponding credit to Share based payments reserve.

Capital reserve - The Company had acquired the distribution business of erstwhile Areva T&D India Limited, now GE T&D India Limited through a Scheme of arrangement for demerger. At that time, the excess of net assets acquired, over the cost of consideration paid was treated as capital reserve.

General reserve - The Company had acquired the distribution business of erstwhile Areva T&D India Limited, now GE T&D India Limited through a Scheme of arrangement for demerger. The general reserve was transferred from the demerged Company to the tune of '' 1,494.86 million. Further, the Company had transferred general reserve from surplus balance in the statement of profit and loss to the tune of '' 39.77 million.

Defined Benefit Plan

The Company has a defined benefit gratuity plan payment of gratuity is made in accordance with the provision of the Payment of Gratuity Act, 1972 . Every employee who has completed five years or more of service gets a gratuity on retirement/resignation/death at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with insurance companies in the form of a qualifying insurance policy.

The following tables summaries the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:

j) The Company''s best estimate of expense for the next annual reporting period is '' 32.56 million (March 31, 2021 : '' 31.77 million)

k) Expected contribution for the next year is '' 5.76 million.

l) Salary increase rate takes into account of inflation, seniority, promotion and other relevant factors on long term basis.

m) The discount rate is based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

n) The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

o) Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -

A) Salary Increases- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B) Investment Risk - If Plan is funded then assets liabilities mismatch and actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan''s liability.

D) Mortality and disability - Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

31. Share Based Payments

The Company does not provide any share based compensation to its employees. However, the Ultimate holding company Schneider Electric SE (‘the issuer'') has provided various share-based payment scheme to employees of the Company.

32.Leases

As a lessee

The Company has lease contracts for various Properties (e.g. Sales office, Warehouse, leasehold land etc.) used in its operations. Leases of property other than leasehold land generally have lease terms between 2 to 5 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets. The Company also has certain leases of property and machinery with lease terms of 12 months or less and leases of office equipment with low value. The Company applies the ‘short-term lease'' and ‘lease of low-value assets'' recognition exemptions for these leases.

33. COMMITMENTS AND CONTINGENCIES
A. Contingent Liabilities		('' in million)
	As at	As at
	March 31,2022	March 31, 2021
A.1 Income Tax
Contingent liabilities	246.33	414.28

Contingent liability on account of certain information/details yet to be submitted to the assessing officer. The management believes that all the required information will be submitted to the tax authorities at the time of hearing and there is no potential exposure on account of the same.

A.2 Indirect Tax cases [Mixed cases with GE T&D India Limited (formerly Alstom T&D India Limited)]

Post demerger, Company and GE T&D India Limited (formerly Alstom T&D India Limited) have bifurcated the total outstanding demands of Excise/ Service Tax and Sales tax in accordance with the arrangement agreed between the two Companies (mixed cases). Accordingly, GE is contesting the total outstanding demands, before various appellate authorities, including the share of the Company.

('' in million)
As at March 31, 2022
Total Demand including GE share	Company''s share	Contingent Liabilities		Provisions		Deposits made under protest
a. Excise and Service Tax 236.81	52.42		46.46	5.96		-
(93.93)	(12.70)		(6.74)	(5.96)		-
b. Sales Tax 1,044.05	459.15		176.54	282.61		272.74
(1,105.79)	(500.83)	(163.86)		(336.97)		(311.92)
Total 1,280.86	511.57		223.00	288.57		272.74
(1,199.72)	(513.53)	(170.60)		(342.93)		(311.92)
Amount in brackets represents amount as at March 31, 2021
A.3 Other Indirect Tax cases						('' in million)
			As at March 31,2022
		Contingent Liabilities		Provisions		Deposits made under protest
a. Excise and Service Tax			22.89	6.41		1.75
			(22.96)	(6.34)		(1.82)
b. Sales Tax			417.07	137.36		121.88
		(653.42)		(196.95)		(177.93)
c. Custom Duty			316.27		-	23.72
		(321.86)			-	(23.72)
Total			756.23	143.77		147.35
		(998.24)		(203.29)		(203.47)
Amount in brackets represents amount as at March 31, 2021 The Company has preferred appeals against the above demands (refer note A.1, A.2 and A.3 above) which are pending before various appellate authorities, and has been advised by the reputed professional advisers, engaged by it, that there are reasonable chances of success in these appeals.
B. Commitments						('' in million)
			As at March 31,2022			As at March 31, 2021
Estimated amount of contracts remaining to be executed on provided (net of advances)	capital account and not			96.87		66.14
Bank guarantees				791.06		549.28
			887.93		615.42

1. The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole. However, the remuneration provided to key managerial personnel includes the share based payments. It is accounted for in accordance with the regulation of IND AS 102.

2. In addition to the above transactions, Schneider Electric Industries SAS, France (the ultimate holding company) has given letter of comfort to banks of the Company based on which banks have given unsecured loan facilities (at the prevailing interest rate) to the Company This letter is not intended as a legal guarantee on the part of the ultimate holding company

35. Segment Reporting

The Chief Operating Decision Maker “CODM” reviews the operations of the Company as a whole, i.e. single primary business segment viz. product and systems for electricity distribution, hence, there are no reportable segments as per Ind AS 108 “Operating Segments”.

The management assessed that bank balances, trade receivables, trade payables, short term borrowings and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

1. The fair values of the interest-bearing borrowings and loans are determined by using Discounted cashflow method (DCF) using discount rate that reflects the Company''s borrowing rate as at the end of the reporting period. The own non-performance risk as at March 31, 2022 was assessed to be insignificant.

2. Long-term receivables/payables are evaluated by the Company based on parameters such as interest rates, risk factors, individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data Quantitative disclosures of fair value measurement hierarchy for assets as on March 31,2022

37. Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables and cash and bank balances that are derived directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks and also ensure that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits and foreign currency receivables and payables. The sensitivity analysis in the following sections relate to the position as at March 31 2022. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2022

(i) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

(ii) Interest Rate Risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long term debt obligation at floating interest rates. The Company''s borrowings outstanding as at March 31, 2022 comprise of fixed rate loans and accordingly, are not exposed to risk of fluctuation in market interest rate.

(iii) Commodity Price Risk

The Company is affected by the price volatility of certain commodities. Its operating activities require manufacturing, designing, building and servicing technologically advanced products and systems for electricity distribution including products such as distribution transformers, medium voltage switchgears, medium and low voltage protection relays and electricity distribution and automation equipment. It therefore require a continuous supply of copper and Aluminium being the major input used in the manufacturing. Due to the significantly increased volatility of the price of the Copper and aluminium, the Company has entered into various purchase contracts for these material for which there is an active market. The Company maintain the level of these stock as per the requirement of business and market which are discussed by the management on regular basis. Company operates in the way that saving / impact due to change in commodity prices are pass on to the customer and therefore impact on profit due to change in price of commodity is unascertainable.

(b) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation 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) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management.

An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

(ii) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made in the risk free bank deposits. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter party''s potential failure to make payments.

The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2022 and March 31, 2021 is the carrying amounts . Trade Receivables and other financial assets are written off when there is no reasonable expectation of recovery, such as debtor failing to engage in the repayment plan with the Company. The Company''s maximum exposure relating to financial assets is noted in liquidity table below.

(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company manages liquidity risk by maintaining adequate banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

38. Capital Management

For the purposes of Company''s capital management, Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2022 and March 31, 2021.

Management expects that the entire transaction price allotted to the unsatisfied contract as at the end of the reporting period will be recognised as revenue during the next financial year.

40.4 Performance obligation:

Information about the Company''s performance obligations are summarised below:

Sale of goods

The performance obligation is satisfied upon delivery of the goods.

Services

The Performance obligation is satisfied at point of time upon completion of service and pro-rata over the period of contract as and when service is rendered.

Long term Contract

The performance obligation is satisfied over a period of time. The Company uses cost based input method for measuring progress for performance obligation satisfied over time.

41. The Company has made an assessment of the impact of the continuing Covid-19 pandemic on its current and future operations. liquidity position and cash flow giving due consideration to the internal and external factors. The Company is continuously monitoring the situation and does not foresee any significant impact on its operations and the financial position as at March 31, 2022.

42. As per the Transfer Pricing Rules of the Income Tax Act, 1961 every company is required to get a transfer pricing study conducted to determine whether the transactions with associated enterprises were undertaken at an arm''s length basis for each financial year end. Transfer pricing study for the transaction pertaining to the year ended March 31, 2022 is currently in progress and hence adjustments if any which may arise there from have not been taken into account in these financial statements for the year ended March 31, 2022 and will be effective in the financial statements for the year ended March 31, 2023. However, in the opinion of the Company''s management, adjustments, if any, are not expected to be material.

42. As at the end of current year, the Company has total accumulated losses aggregating to '' 3,239.93 million. The management has evaluated availability of sufficient funding to meet Company''s obligations. For such evaluation, the management has considered various factors which include estimated future cash flows, availability of working capital facilities sanctioned by the banks and borrowings sourced from group companies. Basis such evaluation and mitigating actions which included securing of continuation of the short-term and renewal of the long-term borrowings from group companies, the management is confident that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. Therefore, these financial results have been prepared based on going concern assumption.

43. Disclosure Of Transactions With Struck Off Companies

The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year

44. Additional regulatory information required by Schedule III of Companies Act, 2013

(i) Details of Benami property: No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder

(ii) Utilisation of borrowed funds and share premium: 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:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(iii) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(iv) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year

(v) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(vi) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(vii) The Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment.

(viii) Corporate social responsibility activities (CSR) : Since the Company is having losses in the last three preceding financial years. Hence, the Company is not liable to incur on CSR activities.

(ix) Valuation of PP&E and intangible asset: The Company has not revalued its property plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year

(x) The Company has not been declared as a Willful Defaulter by any bank or financial institution or government or any government authority

45. The Indian Parliament has approved the Code of Social Security, 2020, which would impact the contributions by the Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in financial results in the period in which the Code becomes effective and the related rules are published.

46. The figures have been rounded off to the nearest millions of rupees up to two decimal places. The figure 0.00 wherever stated represents value less than '' 10,000/-

47. The comparative figures have been regrouped/ rearranged wherever considered necessary to make them comparable with current year numbers.

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Mar 31, 2018

1. SHARE BASED PAYMENTS

The Company does not provide any share based compensation to its employees. However, the Ultimate holding company Schneider Electric SE (''the issuer'') has provided various share-based payment scheme to employees of the Company Details of these plans are as under:-A. Performance Stock Units

Operating lease commitments-Company as lessee

General description of the Company''s operating lease arrangements:

The company has entered into non-cancellable operating lease for an office at Noida. Some of the significant terms and conditions for the arrangements are:

- As per contract, this lease has an average life of nine years with renewal option and 15% escalation clause at the end of every three years.

- There is an initial lock-in period of three years and after that each renewal is at the option of the lessee.

- There are no restrictions placed upon the company by entering into this lease.

The Company had vacated the premise during the year 2016-17.

Finance lease commitments-Company as lessee

General description of the Company''s financing lease arrangements: The Company has entered into finance leases contracts for Vehicles. Some of the significant terms and conditions for the arrangements are:

- The Company''s obligations under finance leases are secured by the lessor''s title to the leased vehicles.

- The lease period extends for 4 years for each vehicles.

- The company will be required to pay 15% of the vehicle value at the end of lease period for transferring title of the vehicle in Company name.

2. COMMITMENTS AND CONTINGENCIES

A. Contingent Liabilities

a. Total contingent liability for Income Tax Matters aggregates to Rupees 360.67 Million (March 31, 2017 Rupees 360.67 Millions, April 01, 2016 - Rupees 116.78) in relation to financial year 2011-12, 2012-2013 and 2013-2014 on account of certain information/details yet to be submitted to the assessing officer The management believes that all the required information will be submitted to the tax authorities at the time of hearing and there is no potential exposure on account of the same.

The deposits made under protest pertaining to above demands aggregates to Ropes 60.95 Million (March 31, 2017- Rupees Nil ).

b. Post demerger, Company and ALSTOM T&D India Limited (ALSTOM) have bifurcated the total outstanding demands of Excise/ Service Tax and Sales tax in accordance with the arrangement agreed between the two Companies. Accordingly, ALSTOM is contesting the total outstanding demands, before various appellate authorities, including the share of the Company.

(i) Total outstanding demands of Excise / Service tax aggregates to Rupees 105.90 Million out of which Company share is Rupees 23.65 Million. The Company has considered demands amounting to Rupees 17.13 Millions as contingent as at March 31, 2018, net of provisions of Rupees 6.52 Million.

(March 31, 2017 - Total outstanding demands of Excise / Service tax aggregates to Rupees 264.78 Million out of which Company share is Rupees 62.16 Million. The Company has considered demands amounting to Rupees 6.24 Millions as contingent as at March 31, 2017, net of provisions of Rupees 55.92 Million) (April 01, 2016 - Total outstanding demands of Excise / Service tax aggregates to Rupees 249.18 Million out of which Company share is Rupees 61.70 Million.

The Company has considered demands amounting to Rupees 5.78 Millions as contingent as at April 01, 2016, net of provisions of Rupees 55.92 Million) The deposits made under protest pertaining to above demands aggregates to Rupess Nil Millions (March 31, 2017 - Rupees 35.84 Million, April 01, 2016 - Rupees 35.84 Million).

(ii) Total outstanding demands of Sales Tax aggregates to Rupees 1,448.78 Million out of which Company share is Rupees 650.18 Million. The Company has considered demands amounting to Rupees 237.36 Million as contingent, net of provisions of Rupees 412.82 Million.

(March 31, 2017 - Total outstanding demands of Sales Tax aggregates to Rupees 1791.38 Million out of which Company share is Rupees 723.93 Million. The Company has considered demands amounting to Rupees 311.11 Million as contingent, net of provisions of Rupees 412.82 Million) (April 01, 2016 - Total outstanding demands of Sales Tax aggregates to Rupees 1,779.70 Million out of which Company share is Rupees 723.93 Million. The Company has considered demands amounting to Rupees 476.35 Million as contingent, net of provisions of Rupees 247.58 Million.).

The deposits made under protest pertaining to above demands aggregates to Rupees 286.88 Million(March 31, 2017 -Rupees 286.88 Million, April 01, 2016- Rupees 285.13 Million)

c. For the demands pertaining to the Company only (with no ALSTOM share being there), the Company has considered Excise/ Service Tax demands amounting to Rupees 41.47 Million as contingent, net of provisions of Rupees 20.73 Million (March 31, 2017- Rupees 406.23 Million as contingent, net of provisions of Rupees 13.03 Million, April 01, 2016 - Rupees 389.70 Million, net of provision of Rupees 13.03 Million).

The deposits made under protest pertaining to above demands aggregates to Rupees 3.46 Million (March 31, 2017- Rupees 2.27 Million, April 01, 2016 - Rupees 2.08 Million)

d. For the demands pertaining to the Company only (with no ALSTOM share being there), the Company has considered Sales Tax demands amounting to Rupees 560.97 Million as contingent, net of provisions of Rupees 121.90 Million (March 31, 2017 -Rupees 348.86 Million as contingent, net of provisions of Rupees 120.87 Million, April 1, 2016 - Rupees 216.26 Million, net of provision of Rupees 61.83 Million).

The deposits made under protest pertaining to above demands aggregates to Rupees 66.02 Million (March 31, 2017- Rupees

42.07 Million, April 01, 2016 - Rupees 8.55 Million)

e. For the demands pertaining to the Company only (with no ALSTOM share being there), the Company has considered Custom tax demands amounting to Rupees 5.59 Million as contingent, net of provisions of Rupees Nil Million (March 31, 2017- Rupees 5.59 Million as contingent, net of provisions of Rupees Nil, April 01, 2016 - Rupees 5.59 Million, net of provision of Rupees Nil)

The Company has preferred appeals against the above demands (refer note a to e above) which are pending before various appellate authorities, and has been advised by the reputed professional advisers, engaged by it, that there are reasonable chances of success in these appeals.

f. The Company has availed receivables purchase facility from banks against which a sum of Rupees 111.91 Million (March 31, 2017- Rupees 118.83 Million, April 01, 2016 - Rupees 203.19 Million) have been utilised as on the date of Balance Sheet. The Company has assigned all its rights and privileges to the bank. Accordingly the amount of utilization has been reduced from trade receivables.

Following are the Related Parties and transactions entered with related parties for the year:

(A) Names of related parties and related party relationship

(i) Related party where control exists

Name of the related parties Relationship

1. Energy Grid Automation Transformers and Switchgears India Private Limited Holding company

2. Schneider Electric Industries SAS, France Ultimate holding Company

3. Schneider Electric Singapore Pte. Limited, Singapore Parent of holding Company

(ii) Fellow subsidiaries with which there have been transactions during the year

Schneider Electric Industries SAS, France Schneider Electric (UK) Ltd, United Kingdom

Schneider Electric India Private Limited, India Schneider Electric Industries (M) Sdn Bhd, Malaysia

France Transfo SAS, France Schneider Electric It Logistics Asia Pacific Pte. Ltd, Singapore

Manufacturas Electricas Sa, Spain Schneider Electric Korea Ltd, South Korea

Power Measurement Ltd, Canada Schneider Electric Lanka (Private) Limited, Sri Lanka

Societe Electrique D''Aubenas SAS, France Schneider Electric Mexico S.A. De C.V., Mexico

Schneider Electric Argentina Sa, Argentina Schneider Electric Nigeria Ltd, Nigeria

Schneider Electric (Xiamen) Switchgear Co. Ltd, China Schneider Electric (Philippines) Inc., Philippines

Schneider Electric (Australia) Pty Limited, Australia Eps Electrical Power Distribution Boards & Switchgear Ltd, Saudi Arabia

Schneider Electric Energy France SAS, France Schneider Electric South Africa (Pty.) Ltd, South Africa

Schneider Electric Espana Sa, Spain Schneider Electric India Software Private Limited, India

Schneider Electric France SAS, France Zao Gruppa Kompaniy Electroshield, Russia

Schneider Electric Gmbh, Germany Invensys India Private Ltd, India

Scheneider Electric It Business India Pvt.Ltd., India Schneider Electric O.M. Llc, Oman

Schneider Electric Brasil Ltda, Brazil Schneider Electric Dms Ns, Serbia

Schneider Electric Ltd, United Kingdom Schneider Electric President Systems Ltd, India

Schneider Electric Logistics Asia Pte. Ltd, Singapore Schneider Electric Overseas Asia Pte. Ltd, Singapore

Schneider Electric Protection Et Controle SAS, France Schneider Electric Polska Sp, Poland

Schneider Electric S.PA., Italy Schneider Electric Services Llc, Qatar

Schneider Electric Sachsenwerk Gmbh, Germany Schneider Electric Vietnam Co. Ltd, Vietnam

Schneider Electric South East Asia (Hq) Pte. Ltd, Singapore Schneider Electric IT Singapore Pte. Ltd, Singapore

Schneider Electric Telecontrol SAS, France Schneider Electric Kenya, Kenya

Schneider Electric Usa, Inc., USA Clipsal Manufacturing (M) Sdn Bhd, Malaysia

Schneider Elektrik Sanayi Ve Ticaret A.S., Turkey Schneider Electric FZE, United Arab Emirates

Schneider Electric Canada Inc., Canada Schneider Busway (Guangzhou) Ltd, China

Schneider Switchgear (Suzhou) Co, Ltd, China Schneider Electric (China) Co. Ltd, China

Schneider Electric De Colombia Sa, Colombia Schneider Enerji Endustries, Turkey

Shanghai Schneider Electric Power Automation Co. Ltd, China

Schneider Electric Services International SPRL, Belgium

Vamp Oy, Finland

Schneider Electric Distribution Company, Egypt Luminous Power Technologies Private Ltd, India Pt Schneider Electric Indonesia, Indonesia Schneider (Thailand) Ltd, Thailand

iii. Key management personnel Mr. Prakash Kumar Chandraker, Managing Director

Mr. Vivek Sarwate, Whole time Director

iv. Additional related parties as per companies act 2013 Mr. Anurag Mantri, Chief Financial Officer till Nov 24, 2016 with whom transactions have taken place during the year Mr. Arnab Roy, Chief Financial Officer w.e.f Mar 8, 2017

Mr. Vinod Kumar Dhall, Chairman and Director Mr. Ranjan Pant, Director Mr. Subramanian Vishar Vasudeven, Director Mr. Anil Rustgi, Company Secretary

The management assessed that bank balances, trade receivables, trade payables, short term borrowings and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

1. The fair values of the interest-bearing borrowings and loans are determined by using DCF method using discount rate that reflects the Company''s borrowing rate as at the end of the reporting period. The own non-performance risk as at March 31, 2018 was assessed to be insignificant.

2. Long-term receivables/payables are evaluated by the Company based on parameters such as interest rates, risk factors, individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at March 31, 2018, are as shown below

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data

3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables and cash and bank balances that are derived directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks and also ensure that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at March 31, 2018. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2018.

(i) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

(ii) Interest Rate Risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long term debt obligation at floating interest rates. The Company''s borrowings outstanding as at March 31, 2018 comprise of fixed rate loans and accordingly, are not exposed to risk of fluctuation in market interest rate.

(iii) Commodity Price Risk

The Company is affected by the price volatility of certain commodities. Its operating activities require manufacturing, designing, building and servicing technologically advanced products and systems for electricity distribution including products such as distribution transformers, medium voltage switchgears, medium and low voltage protection relays and electricity distribution and automation equipment. It therefore require a continuous supply of copper and Aluminium being the major input used in the manufacturing. Due to the significantly increased volatility of the price of the Copper and aluminium, the Company has entered into various purchase contracts for these material for which there is an active market. The Company maintain the level of these stock as per the requirement of business and market which are discussed by the management on regular basis. Company operates in the way that saving / impact due to change in commodity prices are pass on to the customer and therefore impact on profit due to change in price of commodity is unascertainable.

(b) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation 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) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management.

An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

(ii) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made in the risk free bank deposits. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter party''s potential failure to make payments.

The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2018, March 31, 2017 and April 01, 2016 is the carrying amounts . Trade Receivables and other financial assets are written off when there is no reasonable expectation of recovery, such as debtor failing to engage in the repayment plan with the Company. The Company''s maximum exposure relating to financial assets is noted in liquidity table below.

(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company manages liquidity risk by maintaining adequate banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Maturity profile of financial liabilities

The table below provides the details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

For the purposes of Company''s capital management, Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic Conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2018, March 31, 2017 and as at April 01, 2016.

The Company monitors capital using gearing ratio, which is net debt divided by total capital plus net debt.

4. DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (IND AS 101) FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARDS

These are Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet as at April 01, 2016 (The Company''s date of transition for Ind AS). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with accounting standards notified under section 133 of Companies Act, 2013, read together with paragraph 7 of Companies (Accounts) Rules, 2014 and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

A.1 Ind-AS optional exemptions :

Ind AS 101 allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

A.1.1 Fair Valuation of PPE

Ind AS 101 permits a first time adopter to elect to fair value of its property, plant and equipment as recognised in financial statements as at the date of transition to Ind AS, measured as per previous GAAP and use that as its deemed cost as at the date of transition or apply principles of Ind AS retrospectively Ind AS 101 also permits the first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS. This exemption can be also used for intangible assets covered by Ind-AS 38.

The Company has elected to fair value of its property, plant and equipment as recognised in its financial statements as at the date of transition to Ind AS as deemed cost at the transition date. In respect to Intangible assets, the Company has elected to continue with the carrying value as recognised in its Indian GAAP financial statements as deemed cost at the transition date.

A.1.2 Share based payment transactions

Ind AS 101 permits a first time adopter to elect not to apply principles of Ind AS 102 to liabilities arising from share based payment transactions that were settled before the date of transition.

The Company has elected not to apply Ind AS 102- "Share based payment” on stock options that vested before date of transition.

A.1.4 Leases

Appendix C to Ind AS 17-” Leases” requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind-AS except where the effect is expected to be not material.

The Company has elected to apply this exemption for such contracts/arrangements.

A.2 Ind AS mandatory exceptions

A.2.1 Estimates

An entity estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error

Ind AS estimates at April 01, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

(i) Liability in debt instruments carried at amortised cost; and

(ii) Impairment of financial assets based on expected credit loss model.

A.2.2 Derecognition of financial assets and financial liabilities

Ind AS 101 requires a first time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. Accordingly, the Company has applied the derecognition requirement for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after date of transition to Ind AS.

A.2.3 Classification of financial assets and liabilities

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of facts and circumstances that exist on the date of transition to Ind AS. Accordingly, the Company has applied the above requirement prospectively.

A.2.4 Impairment of financial assets

Ind AS 101 requires an entity to assess and determine the impairment allowance on financial assets as per Ind AS 109 using the reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments which were initially recognised and compare that to the credit risk at the date of transition to Ind AS. The Company has applied this exception prospectively.

A. Property, Plant and Equipment (PPE)

The Company has elected to fair value of its property, plant and equipment as recognised in its financial statements as at the date of transition to Ind AS as deemed cost at the transition date. The Company has fair valued all the property, plant and equipment based on valuation report obtained from independent valuer as on April 01, 2016. As per the provisions of AS 20, grants received against fixed assets were accounted as a deduction from the gross value of the related asset. However, as per Ind AS 20, grant received against fixed assets is required to be recognized in the profit and loss on a systematic basis over the useful life of the assets. Accordingly, grant net of depreciation till date is debited to retained earnings on the date of transition with a corresponding credit to the deferred revenue as a separate line item in the balance sheet. Also, grant received during the year ended March 31, 2017 has been accounted as debit to fixed assets and credit to deferred revenue. Further, for the year ending March 31, 2017, depreciation charge and amortization of deferred revenue have been recognised in the statement of profit and loss.

B Amortised cost of financial assets and financial liabilities

(i) Under the previous GAAP loans received from group company are recorded at their transaction value. Under Ind AS all financial assets/financial liabilities are required to be recognised at fair value. Accordingly the Company has fair valued the loan retrospectively at their amortised cost. Difference between the transaction value and fair value is recognised as other equity as on the date of transition.

(ii) Gain/(loss) on forward contracts with banks have been recognised on Mark to Market(MTM) basis under Ind AS and corresponding gain/(loss) as of and for the year ended March 31, 2017 is recognised in the Statement of Profit and Loss. In previous GAAP the same was recognised as amortisation of premium.

C Impairment of financial assets

Under Indian GAAP, the Company has created provision for impairment of receivables consists only in respect of specific amount for incurred losses. Under Ind AS, impairment allowance has been determined based on Expected Loss model (ECL). Due to ECL model, the group impaired its trade receivable on April 01, 2016 which has been eliminated against retained earnings. The impact of for year ended on March 31, 2017 has been recognized in the statement of profit and loss.

D Provision

Under Indian GAAP provisions, including long-term provision are accounted at the undiscounted amount. In contrast, Ind AS 37 requires that where the effect of time value of money is material, the amount of provision should be recognised at the present value of the expenditure expected to settle the obligation. Accordingly, provision for warranty costs has been reduced as at the date of transition with a corresponding adjustment against the deferred revenue. Similarly, provision for warranty costs recognised during the year ended March 31, 2017 has also been reduced . Further, interest expense of representing unwinding of discount due to passage of time has been recorded in the statement of profit of loss during the year ended March 31, 2017.

E Excise Duty

Under Indian GAAP sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is presented on the face of statement of profit and loss as a separate line item. Thus, sale of goods under Ind AS has increased with a corresponding increase in other expense. This has no resulting impact on the equity

F Remeasurement of Defined Benefit Obligation

Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements (comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined liability) are recognised in balance sheet through other comprehensive income. Thus, the employee benefit cost recognised in the statement of profit and loss is reduced with a corresponding (net of tax) charge in the OCI.

Under Indian GAAP the Company was not required to account for share based compensation received by its employees from the ultimate holding company i.e. Schneider Electric SE (''the issuer''). However, Ind AS 102 requires the Indian subsidiary company to recognize the cost of share based payments to its employees from the issuer Accordingly, cost of vested shared payments has been accounted for as ‘share-based payment reserve'' as on the transition date with corresponding debit to the retained earnings. Further, amount for the year ended March 31, 2017 has been accounted as employee stock option expense in the statement of profit and loss.

G Preference Shares

The Company had issued cumulative redeemable preference shares. The preference shares carry fixed cumulative dividend which is non-discretionary Under Indian GAAP the preference shares were classified as equity and dividend payable thereon, if any, was treated as distribution of profit.

Under Ind AS, cumulative redeemable preference shares are separated into liability and equity components based on the terms of the contract. Interest on liability component is recognised using the effective interest method. Thus the preference share capital is reduced with a corresponding increase in borrowings as liability component.

H Trade Payables

Under the previous GAAP, the Company had created the lease equalisation reserves for straight lining of future rent payment under non-cancellable leases, however under Ind AS lease equalisation reserves is not required as escalation in rent is inflatory in nature.

I Incentives on exports and imports

Under the previous GAAP, duty drawback income was presented under revenue from operations, however under Ind AS duty drawback income is shown as other income. Further under the previous GAAP, duty saved on purchase of raw material under advance license scheme was presented net of cost of raw material consumed, however under Ind AS the said duty amount is presented as other income and cost of material consumed is shown as inclusive of duty saved.

J Other comprehensive income

Under Indian GAAP the Company has not presented other comprehensive income (OCI) separately Hence, it has reconciled Indian GAAP profit to profit as per Ind AS. Further, Indian GAAP profit is reconciled to total comprehensive income as per Ind AS.

K Statement of cash flows

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flow.

5. As per the Transfer Pricing Rules of the Income Tax Act, 1961 every company is required to get a transfer pricing study conducted to determine whether the transactions with associated enterprises were undertaken at an arm''s length basis for each financial year end. Transfer pricing study for the transaction pertaining to the year ended March 31, 2018 is currently in progress and hence adjustments if any which may arise there from have not been taken into account in these financial statements for the year ended March 31, 2018 and will be effective in the financial statements for the year ended March 31, 2019. However, in the opinion of the Company''s management, adjustments, if any, are not expected to be material.

6. The Company had obtained shareholders'' approval by way of a special resolution in accordance with provisions of section 197 read along with schedule V of the Act in respect of managerial remuneration to be paid to whole time director and managing director The Board of Directors of the Company in their meeting held on November 13, 2017, re-appointed whole time director and managing director for a further period of two years subject to the approval of shareholders of the Company by way of a special resolution in the ensuing Annual General Meeting as per the provisions of the Companies Act , 2013.

7. The figures have been rounded off to the nearest millions of rupees up to two decimal places.

8. Figures relating to April 01, 2016 (date of transition) has been regrouped/reclassified wherever necessary to make them comparable with the current year figures and for period ended March 31, 2017.

9. Note No.1 to 45 form integral part of the balance sheet and statement of profit and loss

---

Mar 31, 2017

1. Nature of operations

Schneider Electric Infrastructure Limited was incorporated on March 12, 2011. It is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on three stock exchanges in India. The Company is engaged in the business of manufacturing, designing, building and

2. Basis of preparation

The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014 and Companies servicing technologically advanced products and systems for electricity distribution including products such as distribution transformers, medium voltage switchgears, medium and low voltage protection relays and electricity distribution and automation equipment.

(Accounting Standards) Amendment Rules, 2016. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

3. Share capital

a. Terms/rights attached to equity shares

The company has equity shares having par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

The Company issued 172,000,000 Cumulative Redeemable Preference Shares of Rs. 10 each fully paid-up by conversion of loans. Cumulative Preference Shares carry cumulative dividend @ 8% p.a. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

b. Shares held by Holding/ ultimate holding company and/or their subsidiaries/ associates :

Out of equity and preference shares issued by the Company, shares held by its holding company and/or their subsidiaries are as below:

As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

c. Arrears of cumulative dividends (including dividend distribution tax) on cumulative redeemable Preference shares as at March 31, 2017 Rs. 198.64 Millions (March 31, 2016 - Rs. 32.25 Millions)

4. Provisions

Provision for Warranties:

A provision is recognised for expected warranty claims on products sold during the last 18 to 24 months, based on past experience of the level of repairs and returns. It is expected that significant portion of these costs will be paid out in the next financial year and balance will be paid out within two years after the reporting date. Assumptions used to calculate the provision for warranties were based on current sales levels and current information available about returns based on the 18 to 24 months warranty period for products sold.

Provision for Litigation:

Provision for Litigations represent provisions in respect of litigations for sales tax, excise duty and service tax. Although the company continues to contest the cases at different forums, the management believes that outflow of resources embodying economic benefits is probable. Hence, the Company has created a provision towards the same.

5. Short-term borrowings

a. Cash credit is repayable on demand and carries interest @ 9.00% per annum.

b. Short term loan from bank carries interest rate of 7.70% and payable within 30 days from the balance sheet date.

c. Foreign currency loan from banks carries interest rate of 2.23% to 2.36% and payable within 90 to 180 days from the balance sheet date.

d. Loan taken from Energy Grid Automation Transformers and Switchgears India Private Limited carries interest rate of 5.75% per annum. The loan is repayable within 90 days from the date of balance sheet.

e. Loan taken from Schneider Electric IT Business India Private Limited carries interest rate of 5.90% to 6.15% per annum. The loan is repayable within 60 to 210 days from the date of balance sheet.

6. Employee Benefits

6.1 The company has a defined gratuity plan. Every employee who has completed five years or more of service (as per Gratuity Act) gets a gratuity on retirement at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy The liability is provided as per actuarial valuation.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the Gratuity

7.Leases

Operating Lease: Company as Lessee

The company has entered into non-cancellable lease for an office at Noida. As per contract, this lease has an average life of nine years with renewal option and 15% escalation clause at the end of every three years.

There is an initial lock-in period of three years and after that each renewal is at the option of the lessee. There are no restrictions placed upon the company by entering into this lease. The Company has vacated the premises during the year The lease rental expense recognized in the Statement of Profit and Loss during the year in respect of this lease transaction is Rupees 10.60 Millions (March 31, 2016 - Rupees 55.85 Millions).

The Company has cancellable operating lease arrangements for its office premises and storage locations, with varying renewable options. Some of the lease agreements have escalation clause ranging from 5% to 15%. There are no exceptional / restrictive covenants in the lease agreements. Lease payments recognised in the statement of profit and loss for the year is Rupees 64.78 Millions (March 31, 2016 - Rupees 62.75 Millions).

8. Segment information

The Company is engaged in the business relating to product and systems for electricity distribution only, and accordingly there are no primary segments to be reported, as per Accounting Standard 17 "Segment Reporting”.

9. Capital and other commitments

a. At March 31, 2017, the company has commitments of Rupees 40.44 Millions (March 31, 2016: Rupees 20.21 Millions) relating to purchase of tangible fixed assets.

b. There are no significant other commitments.

10. Contingent Liabilities

a. Total contingent liability of Income Tax aggregates to Rupees 360.67 Millions (March 31, 2016 - Rupees 116.78) in relation to financial year 2011-12, 2012-2013 and 2013-2014.

b. Post demerger, Company and ALSTOM T&D India Limited (ALSTOM) have bifurcated the total outstanding demands of Excise/ Service Tax and Sales tax in accordance with the arrangement agreed between the two Companies. Accordingly, ALSTOM is contesting the total outstanding demands, before various appellate authorities, including the share of the Company

(i) Total outstanding demands of Excise / Service tax aggregates to Rupees 264.78 Million out of which Company share is Rupees 62.16 Million. The Company has considered demands amounting to Rupees 6.24 Millions as contingent as at March 31, 2017, net of provisions of Rupees 55.92 Million.

(March 31, 2016 - Total outstanding demands of Excise / Service tax aggregates to Rupees 249.18 Million out of which Company share is Rupees 61.70 Million. The Company has considered demands amounting to Rupees 5.78 Millions as contingent as at March 31, 2017, net of provisions of Rupees 55.92 Million)

The deposits made under protest pertaining to above demands aggregates to Rupees 35.84 Million (March 31, 2016 -Rupees 35.84 Million).

(ii) Total outstanding demands of Sales Tax aggregates to Rupees 1791.38 Million out of which Company share is Rupees 723.93 Million. The Company has considered demands amounting to Rupees 311.11 Million as contingent, net of provisions of Rupees 412.82 Million.

(March 31, 2016 - Total outstanding demands of Sales Tax aggregates to Rupees 1,779.70 Million out of which Company share is Rupees 723.93 Million. The Company has considered demands amounting to Rupees 476.35 Million as contingent, net of provisions of Rupees 247.58 Million).

The deposits made under protest pertaining to above demands aggregates to Rupees 286.88 Million (March 31, 2016 -Rupees 285.13 Million)

c. For the demands pertaining to the Company only (with no ALSTOM share being there), the Company has considered Excise/ Service Tax demands amounting to Rupees 406.23 Million as contingent, net of provisions of Rupees 13.03 Million. (March 31, 2016 - Rupees 389.70 Million, net of provision of Rupees 13.03 Million).

The deposits made under protest pertaining to above demands aggregates to Rupees 2.27 Million (March 31, 2016 – Rupees 2.08 Million)

d. For the demands pertaining to the Company only (with no ALSTOM share being there), the Company has considered Sales Tax demands amounting to Rupees 348.86 Million as contingent, net of provisions of Rupees 120.87 Million. (March 31, 2016 -Rupees 216.26 Million, net of provision of Rupees 61.83 Million).

The deposits made under protest pertaining to above demands aggregates to Rupees 42.07 Million. (March 31, 2016- Rupees 8.55 Million)

e. For the demands pertaining to the Company only (with no ALSTOM share being there), the Company has considered Custom tax demands amounting to Rupees 5.59 Million as contingent, net of provisions of Rupees Nil. (March 31, 2016 - Rupees 5.59 Million, net of provision of Rupees Nil)

The Company has preferred appeals against the above demands which are pending before various appellate authorities, and has been advised by the reputed professional advisers, engaged by it, that there are reasonable chances of success in these appeals.

f. The Company has availed receivables purchase facility from banks against which a sum of Rupees 118.83 Million (March 31, 2016 - Rupees 203.19 Million) have been utilised as on the date of Balance Sheet. The Company has assigned all its rights and privileges to the bank. Accordingly the amount of utilization has been reduced from trade receivables.

11 . As per Notification dated March 30, 2017, issued by Ministry of Corporate Affairs, details of the Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December 30, 2016, the Company did not have cash balance on November 8, 2016 and December 30, 2016 and no cash dealings during this period.

12. The Company as part of its Energy Rebound Program is focusing on profitable and rigorous project selection. As part of this initiative, management has evaluated the recoverability of old trade receivables considering the changing financial conditions of some customers, slow recovery and passage of time. On the basis of such evaluation and other factors, the management based on best estimates has recorded a provision for doubtful trade receivables of Rs. 1,376.72 Millions (year ended March 31, 2016 - Rs. 39.03 Millions).

13 . The Company follows Accounting Standard - 22 ”Accounting for Taxes on Income” as notified by the Company Accounting Standards Rules, 2006 (as amended). The Company has net deferred tax assets primarily consisting of unabsorbed depreciation and carry forward losses. However, the subsequent realization of such amount is not virtually certain in near future and the management is of the view that it is prudent not to recognize deferred tax assets. A summary of deferred tax assets to the extent of deferred tax liability is given below:

14. Previous year figures have been regrouped / reclassified, where necessary, to conform to this year’s classification.

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Mar 31, 2016

1. Employee Benefits

26.1 The company has a defined gratuity plan. Every employee who has completed five years or more of service (as per Gratuity Act) gets a gratuity on retirement at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The liability is provided as per actuarial valuation.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the Gratuity.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

2.Leases

Operating Lease: Company as Lessee

The company has entered into non-cancellable lease for an office at Noida. As per contract, this lease has an average life of nine years and 15% escalation clause at the end of every three years.

The lease rental expense recognized in the Statement of Profit and Loss during the year in respect of this lease transaction is Rupees 55.85 Millions (March 31, 2015 - Rupees 55.76 Millions).

The Company has cancellable operating lease arrangements for its office premises and storage locations, with varying renewable options. Some of the lease agreements have escalation clause ranging from 5% to 15%. There are no exceptional / restrictive covenants in the lease agreements. Lease payments recognized in the statement of profit and loss for the year is Rupees 17.30 Millions (March 31, 2015 - Rupees 23.60 Millions).

3. Related party disclosures

a. Names of related parties and related party relationship Related parties where control exists

Holding company Energy Grid Automation Transformers and Switchgears India Private Limited Ultimate holding Company Schneider Electric Industries SAS, France Parent of holding Company Schneider Electric Singapore Pte. Limited, Singapore

b. Related parties with whom transactions have taken place during the year :

Fellow subsidiaries

Schneider Electric India Private Limited, India Schneider Electric Canada Inc., Canada

Schneider Electric Protection-Et Controle, France Schneider Electric FZE, Oman (UAE)

Schneider Electric Sachsenwerk Gmbh, Germany Schneider Electric Brazil Ltda, Brazil

Schneider Electric Services International SPRL, Belgium Schneider Electric Indonesia PT Indonesia

Schneider Switchgear (Suzhou) Co. Ltd., China Schneider Electric President Systems Limited, India

Schneider Electric Energy Poland SP ZOO, Poland Schneider Electric Huadian Switchgear (Xiamen) Co. Limited, China

Schneider Electric Energy France Schneider Electric Taiwan Co., Limited, Taiwan

Schneider Electric (Honk Kong) Limited Schneider Electric Energy Hungary Limited, Hungary

Schneider Electric Telecontrol, France Schneider Electric (China) Investment Co. Ltd., Shanghai

Schneider Electric DMS Ns LLC, Serbia Schneider Electric de Columbia, S.A., Columbia

Schneider Electric Lanka Pvt.Ltd, Sri Lanka Schneider Electric Vietnam Limited, Vietnam

Schneider Electric Overseas Asia PTE Limited, Singapore Schneider Electric (Australia) Pty Ltd., Australia

Schneider Electric Industries (M) SDN BHD, Malaysia Schneider Electric Nigeria Limited, Nigeria

Schneider Electric Energy Manufacturing Italia Srt, Italy Shanghai Schneider Electric Power Automation Co. Limited, China

Schneider Electric Energy UK Limited, United Kingdom Schneider Electric Espana SA, Spain

Schneider Electric Turkey, Turkey Schneider Electric Limited, United Kingdom

Schneider Electrik Sanayi ve Ticaret AS, Turkey Vamp Limited, Finland

Telvent Energia S.A. Manufacturas Electricas SAU, Spain

Telvent Trafico y Transporte, S.A. S.E. Logistics Asia Pte Ltd, Singapore

Power Measurement Ltd, Canada Schneider Electric Centro, USA

Schneider Beijing M & Low Voltage Co, China Schneider Electric Dms Ns LLC, Siberia

Schneider Electric D.O.O., Italy (Schneider Electric Spa, Italy) Schneider Electric Energy Malaysia

Schneider Electric D-O-O- Croatia, Croatia Schneider Electric Espana Sau, Spain

Schneider Electric Hudian Switchgear China Schneider Electric Industries, UAE

Schneider Electric Overseas, Singapore Schneider Electric Industries (M), Malaysia

Schneider Electric Taiwan Co Ltd Schneider Electric Mexico, Mexico

Schneider Electric ADH, Turkey Shanghai Schneider Electric Power - CN5001, China

Shanghai Schneider Electric Power Automation Co Ltd-Pcw-Cn China Schneider Electric IT Business India Private Limited, India

Schneider Electric South East Asia (HQ) Pte.Ltd, Singapore Schneider Electric Peru, Peru

Schneider Electric USA Inc, USA Invensys India Private Limited, India

Electric Power Distribution Board and Switchgears Ltd, Saudi Arabia FranceTransfo, France

Luminous Power Technologies Private Limited, India Schneider Electric A.E.B.E, Greece

Schneider Electric Argentina, Argentina Schneider Electric Asia Pacific Limited, Hongkong

Schneider Electric Korea Paju DC, South Korea Schneider Electric, Saudi Arabia

Schneider Electric East Mediterrane, Lebanon Telvent USA LLC, USA

Schneider Electric Egypt, Egypt Skelta Software Private Limited, India

c. Key management personnel : Mr. Prakash Kumar Chandraker, Managing Director

Mr. Vivek Sarwate, Whole Time Director (With effect from February 4, 2016)

Mr. Manish Jaiswal, Whole Time Director (June 18 2014 to March 31, 2015)

d. Additional related parties as per companies act 2013 Mr. Anurag Mantri, Chief Financial Officer with whom transactions have taken place during the year : Mr. Vinod Kumar Dhall, Chairman and Director

Mr. Ranjan Pant, Director

Mr. Subramanian Vishar Vasudeven, Director

Mr. Anil Rustgi, Company Secretary (With effect from May 15,2015)

Mr Sameet Gambhir Company Secretary (April 1, 2014 to Mar 14, 2015)

*The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the company as a whole.

4. Capital and other commitments

a. At March 31, 2016, the company has commitments of Rupees 20.21 Millions (March 31, 2015: Rupees 89.86 Millions) relating to purchase of tangible fixed assets.

b. There are no significant other commitments.

5. Contingent Liabilities

a. Total outstanding demands of Income Tax aggregates to Rupees 116.78 Millions considered as contingent as at March 31, 2016 net of provisions Nil (March 31, 2015 - Rupees Nil).

b. Post demerger, Company and ALSTOM T&D India Limited (ALSTOM) have bifurcated the total outstanding demands of Excise/ Service Tax and Sales tax in accordance with the arrangement agreed between the two Companies. Accordingly, ALSTOM is contesting the total outstanding demands, before various appellate authorities, including the share of the Company

(i) Total outstanding demands of Excise / Service tax aggregates to Rupees 249.18 Million out of which Company share is Rupees 61.70 Million. The Company has considered demands amounting to Rupees 5.78 Millions as contingent as at March 31, 2016, net of provisions of Rupees 55.92 Million

(March 31, 2015- Total outstanding demands of Excise / Service tax aggregates to Rupees 270.53 Million out of which Company share is Rupees 65.35 Million. The Company has considered demands amounting to Rupees NIL demand as contingent , net of service tax provision of Rupees 59.74 Million) The deposits pertaining to Excise/ Service tax considered as contingent aggregates to Rupees 35.84 Million (March 31, 2015 - Rupees 17.92 Million).

(ii) Total outstanding demands of Sales Tax aggregates to Rupees 1,779.70 Million out of which Company share is Rupees 723.93 Million. The Company has considered demands amounting to Rupees 476.35 Million as contingent, net of provisions of Rupees 247.58 Million.

(March 31, 2015- Total outstanding demands of Sales Tax aggregates to Rupees 2,277.29 Million out of which Company share is Rupees 699.44 Million. The Company has considered demands amounting to Rupees 428.34 Million as contingent, net of provisions of Rupees 270.81 Million).The deposits pertaining to Sales tax cases considered as contingent aggregates to Rupees 285.13 Million (March 31, 2015- Rupees 224.11 Million)

c. For the demands pertaining to the Company only (with no ALSTOM share being there), the Company has considered Excise/ Service Tax demands amounting to Rupees 389.70 Million as contingent ,net of provisions of Rupees 13.03 Million.

(March 31, 2015 - Rupees 368.87 Million, net of provision of Rupees 10.34 Million). The deposits pertaining to Excise/ Service tax considered as contingent aggregates to Rupees 2.08 Million (March 31, 2015 - Rupees 0.02 Million)

d. For the demands pertaining to the Company only (with no ALSTOM share being there), the Company has considered Sales Tax demands amounting to Rupees 216.26 Million as contingent, net of provisions of Rupees 61.83 Million.

(March 31, 2015 - Rupees 159.97 Million, net of provision of Rupees 49.97 Million). The deposits pertaining to Sales Tax cases considered as contingent aggregates to Rupees 8.55 Million.(March 31, 2015- Rupees 5.85 Million)

e. For the demands pertaining to the Company only (with no ALSTOM share being there), the Company has considered Custom tax demands amounting to Rupees 5.59 Million as contingent, net of provisions of Rupees Nil

(March 31, 2015 - Rupees 5.59 Million, net of provision of Rupees Nil )

The Company has preferred appeals against the above demands which is pending before various appellate authorities, and has been advised by the reputed professional advisers, engaged by it, that there are reasonable chances of success in these appeals.

6. The Company follows Accounting Standard - 22 "Accounting for Taxes on Income” as notified by the Company Accounting Standards Rules, 2006 (as amended). The Company has net deferred tax assets primarily consisting of unabsorbed depreciation and carry forward losses. However, the subsequent realization of such amount is not virtually certain in near future and the management is of the view that it is prudent not to recognize deferred tax assets.

7. Previous year figures have been regrouped / reclassified, where necessary, to conform to this year’s classification.

Represents Company’s share of Rs. 785.62 Million of dues pending in forums Jointly with ALSTOM T&D India Limited (Refer Note 31 of the accompanying financial statements)

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Mar 31, 2014

Nature of operations

Schneider Electric Infrastructure Limited was incorporated on March 12, 2011. It is a Public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on three stock exchanges in India. The Company is engaged in the business of manufacturing, designing, building and servicing technologically advanced products and systems for electricity distribution including products such as distribution transformers, medium voltage switchgears, medium and low voltage protection relays and electricity distribution and automation equipments.

Basis of preparation

The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956, read with general circular 8/2014 dated 4th April 2014 issued by Ministry of Corporate Affairs. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

1. Capital and other commitments

a. At March 31, 2014, the company has commitments of Rupees 140.87 Millions (March 31, 2013: Rupees 358 Millions) relating to purchase of tangible assets.

b. There are no significant other commitments.

2. Contingent liabilities

a. Post demerger, Company and ALSTOM T&D India Limited (ALSTOM) have bifurcated the total outstanding demands of Excise/ Service Tax and Sales tax in accordance with the arrangement agreed between the two Companies. Accordingly, ALSTOM is contesting the total outstanding demands, before various appellate authorities, including the share of the Company

(i) Total outstanding demands of Excise / Service tax aggregates to Rupees 277.81 Million out of which Company share is Rupees 67.27 Million. The Company has considered NIL demand as contingent as at March 31, 2014, net of provisions of Rupees 50.45 Million.

(March 31, 2013- Total outstanding demands of Excise / Service tax aggregates to Rupees 277.81 Million out of which Company share is Rupees 67.27 Million. The Company has considered demands amounting to Rupees 3.84 Million as contingent , net of service tax provision of Rupees 46.61 Million)

The deposits pertaining to Excise/ Service tax considered as contingent aggregates to Rupees 17.92 Million (March 31, 2013 - NIL).

(ii) Total outstanding demands of Sales Tax aggregates to Rupees 2,193.17 Million out of which Company share is Rupees 628.20 Million. The Company has considered demands amounting to Rupees 397.92 Million as contingent, net of provisions of Rupees 227.43 Million.

(March 31, 2013- Total outstanding demands of Sales Tax aggregates to Rupees 820.17 Million out of which Company share is Rupees 324.90 Million. The Company has considered demands amounting to Rupees 171.30 Million as contingent, net of provisions of Rupees 144.24 Million).

The deposits pertaining to Sales tax cases considered as contingent aggregates to Rupees 160.15 Million (March 31, 2013- Rupees 61.20 Million).

a. For the demands pertaining to the Company only (with no ALSTOM share being there), the Company has considered Excise/ Service Tax demands amounting to Rupees 361.59 Million as contingent , net of provisions of Rupees 10.34 Million . (March 31, 2013 - NIL).

The deposits pertaining to Excise/ Service tax considered as contingent aggregates to Rupees 2 Million (March 31, 2013 - NIL).

b. For the demands pertaining to the Company only (with no ALSTOM share being there), the Company has considered Sales Tax demands amounting to Rupees 144.81 Million as contingent, net of provisions of Rupees 74.59 Million. (March 31, 2013 - Rupees 195.74 Million, net of provision of Rupees 42 Million).

The deposits pertaining to Sales Tax cases considered as contingent aggregates to Rupees 8.91 Million (March 31, 2013 - Rupees 2.94 Million).

The Company has preferred appeals against the above demands which is pending before various appellate authorities, and has been advised by the reputed professional advisers, engaged by it, that there are reasonable chances of success in these appeals.

3. Minimum public shareholding

Consequent to the closure of " "Open Offer" " in February 2013, the shareholding of the Acquirer/Promoter Group in the Company had increased from 73.40% to 78.13%. Also, shareholding of holding company (Energy Grid Automation Transformers and Switchgears India Limited) had increased from 73.40% to 73.70%. Accordingly, in order to achieve minimum 25% public shareholding in the Company in terms of Rule 19(2)(b) and 19A of the Securities Contracts Regulation Rules,1957, read with Clause 40A (ii) (c) of the Listing Agreement, the holding company sold 7,479,178 equity shares of the Company (i.e 3.13%) in the secondary market by way of " "Offer for Sale" " of shares through the Stock exchange mechanism in the month of January, 2014.

Consequently, shareholding of holding company has decreased from 73.70% to 70.57% and overall shareholding of Acquirer/ Promoter group reduced to 75%.

4. The Company had entered into transactions of purchase and sale of goods and availing and rendering of services with a company covered under section 297 of the Companies Act, 1956. The Company has received approval from Central Government for goods transactions starting from March 6, 2013 and services transactions starting April 1, 2013. Pending Government approval on compounding the goods transactions prior to March 6, 2013 and services transactions prior to April 1, 2013, no adjustments have been considered in financial statements as Management is of the view that it will not have any material impact on the results.

5. Previous year figures

The company has reclassified previous year figures, wherever necessary, to conform to this year''s classification.

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Mar 31, 2013

1. Nature of Operations

Schneider Electric Infrastructure Limited was incorporated on March 12, 2011. It is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on three stock exchanges in India. The Company is engaged in the business of manufacturing, designing, building and servicing technologically advanced products and systems for electricity distribution including products such as distribution transformers, medium voltage switchgears, medium and low voltage protection relays and electricity distribution and automation equipments.

2. Basis of preparation

The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

3. Employee Benefits

25.1 The company operates two defined plans, viz., gratuity and PF fund trust, for its employees. Under the gratuity plan, every employee who has completed atleast one year of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.

4. Leases

Operating Lease: Company as Lessee

The company has entered into non-cancellable lease for an office at Noida. As per contract, this lease has an average life of nine years with renewal option and 15% escalation clause at the end of every three years

There is an initial lock-in period of three years and after that each renewal is at the option of the lessee. There are no restrictions placed upon the company by entering into this lease

The lease rental expense recognized in the Statement of Profit and Loss during the year in respect of this lease transaction is Rupees 55.86 Millions (Including a Provision of Lease Equalization of Rupees 5.30 Millions) (March 31, 2012 - Nil)

5. Accounting for Demerger

By a Scheme of arrangement, between the Company and Areva T&D India Limited and their respective shareholders and creditors under section 391-394 of the Companies Act, 1956, the distribution undertaking of Areva T&D India Ltd, now known as ALSTOM T&D India Limited (Transferor) was transferred to the Company ( Transferee ). The said Scheme was sanctioned by Hon''ble High Courts of Gujarat and Delhi, on September 19, 2011 and October 24, 2011 respectively. The certified true copies of the orders of the Hon''ble High Courts of Gujarat and Delhi were filed with the respective Registrar of Companies on November 26. 2011 ( effective date ) . In terms of the aforesaid Scheme the distribution business of Areva T&D India Limited was demerged to the Company w.e.f. April 1, 2011.

As per the terms of the Scheme, the Company has issued and allotted 239,104,035 equity shares of Rupees 2/- each fully paid to the shareholders of Areva T&D India Limited (now Alstom T&D India Limited), as on the record date (December 15, 2011) on a proportionate basis, for every 1 (one) fully paid-up equity share of Rupees 2 /- each held in Areva T&D India (now Alstom T&D India Limited), 1 (one) fully paid-up equity shares of Rupees 2 /- each of the Company. In terms of the Scheme, there are no fractional entitlements. Simultaneous to the issue of these shares, as per Scheme, existing shares (500,000 shares of Rupees 21- each) issued to Areva T&D India Limited and its nominees stands cancelled. The shares have been issued at fair value.

In terms of the Scheme of arrangement for demerger ("Scheme"), upon the Scheme becoming effective (effective date - November 26, 2011), the assets and liabilities of the ''distribution undertaking'' demerged from the Transferor Company, were transferred and vested unto the Company at the book values appearing in the books of account of the Transferor Company as on the close of business on the date immediately preceding the appointed date -April 1, 2011 and the net balance between the book value of assets and liabilities as given below were adjusted from the reserves in the books of the Transferor Company in the manner specified in the Scheme.

6. Related party disclosures

a. Names of related parties and related party relationship Related parties where control exists

Holding company Energy Grid Automation Transformers and Switchgears India Limited

(w.e.f. March 28, 2012) Ultimate holding company Alstom Holdings (by shareholding) and Schneider Electric Services

nternational (by agreement) (Upto February 14, 2013) Schneider Electric SA (w.e.f. February 15, 2013) Parent of holding company and Others Alstom Grid Finance BV, Netherlands; (parent of holding company)

(Upto February 14, 2013) Schneider Electric Singapore Pte. Limited (w.e.f. February 15, 2013)

b. Related parties with whom transactions have taken place: Fellow subsidiaries

Schneider Electric India Pvt Ltd, India

Schneider Electric Protectionale, France

Alstom T&D India Ltd, India (Upto February 14, 2013)

Schneider Electric Sachsenwerk Gmbh, Germany

Schneider Electric Energy, France

Schneider Electric Industries SAS, France

Schneider Electric Service International Sprl, Belgium

Schneider Electric Energy UK Ltd, UK

Schneider Electric Energy Poland Sp. Z O.O., Poland

Schneider Electric Australia Pty Ltd, Australia

Schneider Electric Industries, Malaysia

Schneider Electric Energy, Italy

Schneider Switchgear (Suzhou) Co. Ltd, China

Alstom S A Transport Tarbes, France

(Upto February 14, 2013)

Schneider Electric Nigeria Ltd., Nigeria

Schneider Electric Canada Inc., Canada

Schneider Electric Sa, Uae

Alstom Projects India Ltd, India

(Upto February 14, 2013)

Schneider Enerji Endustri, Turkey

Schneider Electric Ftr, France

ArevaT&D Sas, France (Upto February 14, 2013)

Alstom Grid Uk Ltd, Uk (Upto February 14, 2013)

Schneider Electric Telecontrol, France

Areva Ert Tanzania, Tanzania (Upto February 14, 2013)

Schneider-Electric Energy, Hungary

Shanghai Schneider Electric Power Automation

Co.,Ltd, China

ArevaT&D Enerji Endustrisi A.S.Turkey

(Upto February 14, 2013)

Schneider Electric Huadian Switchgear, China Schneider Electric East Mediterranean S.A. L, Jordan Schneider Electric Brasil Ltda., Brazi

Areva Energietechnik Gmbh, Germany (Upto February 14, 2013) Schneider Electric Taiwan Co., Ltd., Taiwan Alstom Switchgear, South Africa (Upto February 14, 2013) Schneider Electric Energy De, Columbia Schneider Electric It Business India Pvt Ltd, India Schneider Electric Mexico, Mexico

Areva Solar India Private Limited, India (Upto February 14, 2013) ArevaT&D Uk Ltd Systems Produ, Uk (Upto February 14, 2013) Schneider Electric Sri Lanka( Pvt) Ltd, Sri Lanka Alstom Transport SA, France (Upto February 14, 2013) Schneider Electric Vietnam., Ltd, Vietnam

Schneider Electric (China) Investment Co. Ltd., Shanghai, China Schneider Electric D.O.O., Croatia Alstom Grid Sas, France (Upto February 14, 2013) Schneider Electric Sa, South Africa

ArevaT&D Australia Limited, Australia (Upto February 14, 2013)

Alstom Grid Pte Ltd, Singapore (Upto February 14, 2013)

Alstom Grid Italy S.P.A., Italy (Upto February 14, 2013)

Power Measurement Ltd, Canada

Areva Renewable Energies Ltd, India (Upto February 14, 2013)

Schneider Electric(China), China

Schneider Electric, Indonesia

Areva Suzhou High Voltage, Suzhou, China (Upto February 14, 2013)

ArevaT&D Malaysia Sdn Bhd-215632V, Malaysia (Upto February 14, 2013)

Key management personnel Mr. Prakash Kumar Chandraker, Managing director

(From December 16, 2011) Mr. Alexandre Tagger, Whole Time Director (From April 1, 2012)

7. Capital and other commitments

a. At March 31, 2013, the company has commitments of Rupees 358 Millions (March 31, 2012: Rupees 26 Millions) relating to purchase of tangible assets.

b. There are no significant other commitments.

8. Contingent Liabilities

a. Post demerger, Company and ALSTOM T&D India Limited (ALSTOM) have bifurcated the total outstanding demands of Excise/ Service Tax and Sales tax in accordance with the arrangement agreed between the two Companies. Accordingly, ALSTOM is contesting the total outstanding demands, before various appellate authorities, including the share of the Company

(i) Total outstanding demands of Excise / Service tax aggregates to Rupees 277.81 Million out of which Company share is

Rupees 67.27 Million. The Company has considered demands amounting to Rupees 3.84 Million, net of service tax provision of Rupees 46.61 Million, for various years as contingent. (March 31, 2012 - Rupees 46.02 Million, net of provision of Nil)

(ii) Total outstanding demands of Sales Tax aggregates to Rupees 820.17 Million out of which Company share is Rupees 324.90 Million. The Company has considered demands amounting to Rupees 110.10 Million, net of sales tax deposits of Rupees 61.20 Million and provisions of Rupees 144.24 Million, for various years as contingent. (March 31, 2012 - Rupees 136.75 Million, net of deposit of Rupees 52.09 Million and provisions of Rupees 126.70 Million)

b. For the demands pertaining to the Company only (with no ALSTOM share being there), the Company has considered Sales Tax demands amounting to Rupees 192.80 Million, net of sales tax deposit of Rupees 2.94 Million and provisions of Rupees 42 Million, for various years as contingent. (March 31, 2012 - Rupeesl92.80 Million, net of deposit of Rupees 2.94 Million and provision of Rupees 42 Million)

The Company has preferred appeals against the above demands which is pending before various appellate authorities, and has been advised by the reputed professional advisers, engaged by it, that there are reasonable chances of success in these appeals

9. Holding Company

Consequent to the closure of the demerger in India, the ALSTOM Grid Finance BV and Schneider Electric Singapore Pte Ltd entered into a Share purchase agreement whereby ALSTOM Grid Finance BV had agreed to transfer the entire beneficial interest in Energy Grid Automation Transformers and Switchgears India Limited the Holding Company of Schneider Electric Infrastructure Limited. In terms of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations,2011 Schneider Electric Singapore Pte Ltd ("Acquirer") and Schneider Electric South East Asia (HQ) Pte Ltd, Schneider Electric Services International and Energy Grid Automation Transformers and Switchgears India Limited, in their capacity as persons acting in concert with the Acquirer (collectively the "PAC"), made an open offer. The process of ''Open Offer'' was completed in February,2013 and in terms of the same, 11,314,680 Equity Shares of the Company were tendered by the Shareholders of the Company. 10,592,659 Equity Shares were acquired by the Acquirer and one of the PAC, Energy Grid Automation Transformers and Switchgears India Limited acquired, 722,021 equity shares. Consequent to the open Offer the shareholding of the Acquirer/ Promoter Group in the Company increased from 73.40% to 78.13%. Also, shareholding of holding company has increased from 73.40% to 73.70%. The Acquirer /Promoter Group have committed themselves to reduce their shareholding in the Company within the regulatory time frame, such that the minimum public shareholding of the voting share capital of the Company is maintained, to enable the Company''s Shares, to continue to remain listed.

10. During the year, the Company has entered into transactions of Purchase of goods and services amounting to Rupees 488.80 Million and sales of goods and services amounting to Rupees 321.70 Million with Schneider Electric India Private Limited (Company covered under Section 297 of the Ccompanies Act, 1956). These transactions are approved by Board of Directors of the Company. Company has also filed an application for approval from Central Government which is awaited as of date. Pending Government approval, no adjustments have been considered in financial statements as Management is of the view that it will not have any material impact on the results.

11. Previous year figures

The company has reclassified previous year figures, wherever necessary, to conform to this year''s classification.

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Mar 31, 2012

1. Nature of Operations

Schneider Electric Infrastructure Limited (Formerly Smartgrid Automation Distribution and Switchgear Limited) was incorporated on March 12, 2011. It is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on three stock exchanges in India. The Company is engaged in the business of manufacturing, designing, building and servicing technologically advanced products and systems for electricity distribution including products such as distribution transformers, medium voltage switchgears, medium and low voltage protection relays and electricity distribution and automation equipments.

2. Basis of preparation

These financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

3. Employee Benefits

3.1 The company operates two defined plans, viz., gratuity and PF fund trust, for its employees. Under the gratuity plan, every employee who has completed atleast one year of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.

4. Accounting for Demerger

By a Scheme of arrangement, between the Company and Areva T&D India Limited and their respective shareholders and creditors under section 391-394 of the Companies Act, 1956, the distribution undertaking of Areva T&D India Ltd, now known as ALSTOM T&D India Limited ( Transferor) was transferred to the Company ( Transferee ). The said Scheme was sanctioned by Hon'ble High Courts of Gujarat and Delhi, on September 19, 2011 and October 24, 2011 respectively. The certified true copies of the orders of the Hon'ble High Courts of Gujarat and Delhi were filed with the respective Registrar of Companies on November 26, 2011 ( effective date ) . In terms of the aforesaid Scheme the distribution business of Areva T&D India Limited was demerged to the Company w.e.f. April 1, 2011.

As per the terms of the Scheme, the Company has issued and allotted 239,104,035 equity shares of Rs 21- each fully paid to the shareholders of Areva T&D India Limited (now Alstom T&D India Limited), as on the record date (December 15, 2011), on a proportionate basis, for every 1 (one) fully paid-up equity share of Rs. 2 /- (Rupees two) each held in Areva T&D India (now Alstom T&D India Limited), 1 (one) fully paid-up equity shares of Rs. 2 /-(Rupees two) each of the Company. In terms of the Scheme, there are no fractional entitlements. Simultaneous to the issue of these shares, as per Scheme, existing shares (500,000 shares of Rs.2 each) issued to Areva T&D India Limited and its nominees stands cancelled. The shares have been issued at fair value.

In terms of the Scheme of arrangement for demerger ("Scheme"), upon the Scheme becoming effective (effective date - November 26, 2011), the assets and liabilities of the 'distribution undertaking' demerged from the Transferor Company, were transferred and vested unto the Company at the book values appearing in the books of account of the Transferor Company as on the close of business on the date immediately preceding the appointed date - April 1, 2011 and the net balance between the book value of assets and liabilities as given below were adjusted from the reserves in the books of the Transferor Company in the manner specified in the Scheme.

5. Capital and other commitments

a. At 31 March 2012, the company has commitments of Rs. 26 Millions (March 31, 2011: NIL) relating to purchase of fixed assets

b. There are no significant other commitments.

6. Contingent Liabilities

a. The Company considers Sales Tax demands amounting to Rs. 12.47 Millions (Previous Year: NIL) as contingent. The Company has preferred appeals against these demands which is pending before various appellate authorities, and has been advised that there are reasonable chances of success in these appeals.

b. The Company considers demand for Excise / Service tax amounting to Rs. 9.89 Millions (Previous Year: NIL) for various years as contingent. The Company has preferred appeals against these demands which is pending before various appellate authorities, and has been advised that there are reasonable chances of success in these appeals.

7. Holding Company

The company's promoters shareholding comprising of 175,492,524 number of equity shares i.e equivalent to 73.4 % of the equity share capital of the company. The above equity share capital was held by Alstom Grid SAS, Alstom Sextant 5 SAS, T & D Holding and Long & Crawfold Limited and was transferred to Energy Grid Automation Transformers and Switchgears India Limited through a block deal at Bombay stock exchange on March 28, 2012._

8. Change in Company Name_

The company has changed its name from Smartgrid Automation Distribution and Switchgear Limited to Schneider Electric Infrastructure Limited and a 'Fresh Certificate of Incorporation Consequent upon Change of Name' dated December 8, 2011, has been issued by the Registrar of Companies, Gujarat, in this regard.

9. Previous year figures

Till the year ended 31 March 2011, the company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company.

The company has reclassified previous year figures to conform to this year's classification. However, the adoption of revised Schedule VI does not impact recognition, measurement principles, presentation and disclosures.

In some of the notes, previous year figures have not been given as these are the first financials post demerger and the Company did not have any operations in the previous year.