G V Electricals Ltd Management Discussions

The Restated Statement of Assets and Liabilities of the Company as at March 31, 2026, March 31, 2025 and March
31, 2024, the Restated Statements of Profit and Loss for the financial year ended March 31, 2026, March 31, 2025
and March 31, 2024, the Restated Cash Flow Statement for the financial year ended March 31, 2026, March 31, 2025,
and March 31, 2024, the Summary Statement of Significant Accounting Policies, the Notes and Annexures as forming
part of these Restated Financial Statements (collectively, the "Restated Financial Information") has been extracted by
the management from the Audited Financial Statements of the Company.

The financial statements of the company have been prepared and presented in accordance with the Generally Accepted
Accounting Principles (GAAP). GAAP comprises the Accounting Standards notified u/s 133 read with Section 469 of
the Companies Act, 2013. The accounting policies have been framed, keeping in view the fundamental accounting
assumptions of Going Concern, Consistency and Accrual, as also basic considerations of Prudence, Substance over
form, and Materiality. These have been applied consistently, except where a newly issued accounting standard is
initially adopted or a revision in the existing accounting standards require a revision in the accounting policy so far in
use. The need for such a revision is evaluated on an ongoing basis.

The accounting policies adopted in the preparation of financial statements have been consistently applied. All assets
and liabilities have been classified as current or non-current as per the companys normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of operations and time difference
between the provision of services and realization of cash and cash equivalents, the company has ascertained its
operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

The preparation of financial statements required the management to make estimates and assumptions that affect the
reported balance of assets and liabilities, revenues and expenses including of warranty claims and disclosures relating
to contingent liabilities. The Management believes that the estimates used in the preparation of financial statements
are prudent and reasonable. Future results could differ from these estimates. Any revision of accounting estimates is
recognized prospectively in the current and future periods. Significant estimates used by the management in the

preparation of these financial statements include provision for employee benefits, estimates of the economic useful
life of plant and equipment, provision for expenses, etc.

The Company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis. The
accounts are prepared on historical cost basis and as a going concern. Accounting policies not referred to specifically
otherwise, are consistent with the generally accepted accounting principles.

The following significant accounting policies are adopted in the preparation and presentation of these financial
statements:

Revenue from manpower services is recognized on an accrual basis as services are rendered, measured via attendance
records and service reports acknowledged by the customer.

For EPC and long-term contracts, revenue is recognized under the Percentage of Completion Method (AS 7), with the
stage of completion determined by the proportion of contract costs incurred for work performed to date relative to the
total estimated contract costs; any expected losses are recognized immediately as an expense.

Unbilled revenue represents the value of work performed or services rendered up to the reporting date that are yet to
be formally invoiced due to billing cycles or pending certifications and is classified under Other Current Assets.

Work-in-Progress (WIP) includes costs incurred for future contract activities that are probable of recovery. Revenue
is recognized only when there is reasonable certainty of ultimate collection, and management periodically reviews
total contract estimates, with revisions recognized in the period they occur.

a) Property, Plant and Equipment are stated as per Cost Model i.e., at cost less accumulated depreciation and
impairment, if any; Costs directly attributable to acquisition are capitalized until the Property, Plant and Equipment
are ready for use, as intended by the management:

b) Subsequent expenditures relating to Property, Plant and Equipment are capitalized only when it is probable that
future economic benefits associated with these will flow to the Company and the cost of the item can be measured
reliably. Repairs & maintenance costs are recognized in the Statement of profit & Loss when

incurred;

c) The cost and related accumulated depreciated are eliminated from the financial statements upon sale or retirement
of the asset and the resultant gains or losses are recognized in the Statement of Profit or Loss. Assets to be disposed
of are reported at the lower of the carrying value or the fair value less cost to sell;

d) Depreciation on fixed assets is calculated using the Written Down Value (WDV) method, which involves applying
depreciation rates prescribed under Schedule II to the Companies Act 2013 to the carrying amount of the asset. The
carrying amount is reduced each year by the amount of depreciation charged.

e) Depreciation methods, useful lives, and residual values are reviewed periodically, including at each financial year
end;

Intangible assets are stated at the consideration paid for acquisition less accumulated amortization and impairment
loss if any. Intangible assets are amortized on a straight-line basis over the estimated economic life. Costs relating to
software, which are acquired, are capitalized and amortized on a straight-line basis over their useful lives not exceeding
five years.

The Management periodically assesses, using external and internal sources, whether there is an indication that an asset
may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable
amount. The recoverable amount is higher of the assets net selling price and value in use, which means the present
value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An
impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring
after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable
amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any
accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

Costs relating to assets not ready for intended use are capitalized as Capital Work-in-Progress. Assets included in
Capital Work-in-Progress are not depreciated.

Inventories which comprise raw material, work in progress, finished goods and stores and spares are valued at the
lower of cost and net realisable value.

(i) Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency at the date of the transaction.

(ii) Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date.

(iii) Exchange difference

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions
of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of
income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and
financing activities are segregated.

Borrowing cost includes interest, amortization of ancillary cost incurred in connection with the arrangement of
borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an
adjustment to the interest cost.

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income
tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Tax expense relating
to foreign operations is determined in accordance with tax laws applicable in countries where such operations are
domiciled.

Deferred Tax is calculated at the rates and laws that have been enacted or substantively enacted as at the Balance Sheet
date and is recognized on timing difference that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets, subject to consideration of prudence, are recognized and carried forward only
to the extent that they can be realized.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate
to taxes on income levied by the same governing taxation laws.

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity
shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the
weighted average number of equity shares considered for deriving basic earnings per share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair
value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined
independently for each period presented.

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably
estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions
are determined by the best estimate of the likely future outflow of economic benefits required to settle the obligation
at the reporting date.

Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent
liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require
an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are not recognized in the
financial statements since this may result in the recognition of income that may never be realized.

Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all highly liquid
investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible
to known amounts of cash to be cash equivalents.

Investments that are readily realizable and intended to be held for not more than one year from the date of acquisition
are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable
acquisition charges such as brokerage, fees and duties.

Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply
with the conditions attached to them and the grants / subsidy will be received. Government grants whose primary
condition is that the Company should purchase, construct or otherwise acquire capital assets are presented by
deducting them from the carrying value of the assets. The grant is recognised as income over the life of a depreciable
asset by way of a reduced depreciation charge.

Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the risks and
rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of the lease at lower
of the fair value or the present value of the minimum lease payments and a liability is recognised for an equivalent
amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic
rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor,
are recognised as operating leases. Lease rentals under operating leases are recognised in the statement of profit and
loss on a straight-line basis.

Events that occur between balance sheet date and date on which these are approved, might suggest the requirement
for an adjustment(s) to the assets and the liabilities as at balance sheet date or might need disclosure. Adjustments are
required to assets and liabilities for events which occur after balance sheet date which offer added information
substantially affecting the determination of the amounts which relates to the conditions that existed at balance sheet
date.

As per AS -17 Segment Reporting is not applicable to the company for the reporting period.

A defined contribution plan is a post-employment benefit plan under which the Company pays specified
contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund.
The Companys contribution is recognised as an expense in the Profit and Loss Statement during the period in
which the employee renders the related services.

Gratuity liability valuation on projected unit credit (PUC) method at the end of each year. Actuarial gains/losses
are immediately taken to the statement of profit and loss and are not deferred. Accumulated gratuity which is
expected to be utilized within the next 12 months, is treated as short-term employee benefit and which is expected
to be carried forward beyond 12 months, as long term employees benefit for measurement purpose.

a) Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the
Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial
statements.

Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also
treated as extraordinary item and disclosed as such.

b) On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities
of the Company, is such that its disclosure improves an understanding of the performance of the Company. Such
income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.

c) There were no changes in accounting policies requiring adjustments in the Restated Financial Statements, except
for the accounting of retirement benefits in accordance with AS-15 (Revised) - Employee Benefits and deferred tax
in accordance with AS-22 - Accounting for Taxes on Income. During the restatement, the Company has accounted
for retirement benefits based on an actuarial valuation certificate and recognized deferred tax as per the requirements
of AS-22.

A disclosure for a contingent liability reported in the notes to restated financial restatements when there is a possible
obligation that may, require an outflow of the Companys resources. Refer Annexure 31.

2. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

Amount due to entities covered under Micro, Small and Medium Enterprises as defined in the Micro, Small, Medium
Enterprises Development Act, 2006, have been reported to the extent of information memorandum received from the
suppliers.

3. Related Party Transactions

Related party transactions are already reported as per AS-18 of Companies (Accounting Standards) Rules, 2006, as
amended, in the Annexure - 33 of the enclosed financial statements.

4. Material Adjustments

Appropriate adjustments have been made in the restated financial statements, whenever required, by a reclassification
of the corresponding items of assets, liabilities, and cash flow statement, in order to ensure consistency and compliance
with requirements of Schedule VI and Accounting Standards.

5. The management has confirmed that adequate provisions have been made for all the known and determined liabilities
and the same is not in excess of the amounts reasonably required to be provided for.

6. Realizations

The Company evaluated the carrying amounts of property, plant and equipment, investments, inventories, loans and
advances, receivables and other current assets. In developing the assumptions relating to the possible future
uncertainties, the Company, as at the date of approval of these Restated financials has used internal and external
sources on the expected future performance of the Company and management expects the carrying amount of these
assets will be recovered and sufficient liquidity is available to fund the business operations for at least another 12
months. Due to any unforeseen circumstances the final impact on the Companys assets in future may differ from that
estimate as at the date of approval of these Restated Financials.

7. Contractual liabilities

All other contractual liabilities connected with business operations of the Company have been appropriately provided
for in the Restated Financial Statements.

8. Impact of Audit Qualifications/Observations in Statutory Auditors Report on Financial Statements

There have been no audit qualifications/observations in Statutory Auditors Report F.Y. 2025-26, 2024-25 and 2023-
24 which requires adjustments in restated financial statements.

9. Amounts in the financial statements

Amounts in the financial statements are reported in Indian Rupees in lakhs and rounded off to second digit in decimal.
Figure in brackets indicate negative values.

RECONCILIATION OF RESTATED PROFIT:

1. Due to the reclassification of fixed assets, depreciation expenses were revised during the restated period.
Accordingly, the differential amount has been restated, and the necessary effects have been incorporated into the
carrying amounts of Property, Plant and Equipment.

2. The provision for gratuity has been done in all years covered for restatement as per Actuarial Valuation Reports and
provided in the respective year in which such liability has arisen as per AS 15 Employee Benefits.

3. The provision for Bonus has been done in all years covered for restatement.

4. The provision for accrued interest has been done in all years covered for restatement.

5. Interest payable under the Micro, Small and Medium Enterprises Development Act, 2006 has been
recognised/adjusted based on updated information and management assessment, resulting in changes in the respective
periods.

6. The amount of Fixed Deposits balance has been written off after the reconciliation of the Fixed Deposits and Other
Expenses.

7. Due to Provision for Gratuity (Employee benefits), Difference of WDV of Fixed Assets as per Companies Act, 2013
and Income Tax Act, 1961 during the period of restatement, The Company has recalculated the deferred tax liability
and deferred tax assets at the end of respective year ended at the rate of normal Tax rate applicable at the end of
relevant year.

8. The provision for audit fees has been done in years covered for restatement and provided in the respective year in
which such liability has arisen.

9. Provision for Taxation has been adjusted for Items like Income Tax related to Earlier Years and Short Provision for
Earlier Years.

10. Prior period item related to change in Deprecation method adjusted in restatement.

11. Due to revision in unbilled revenue, wherein the GST component was earlier included, the same has now been
reversed in the respective year. The billing for such revenue has not yet been raised in the subsequent year.

12. The expense, which was earlier treated as a revenue expense, has now been reclassified as capital in nature and
accordingly reversed.

Explanatory notes to the above restatements made in the audited financial statements of the Company for the respective
year.

1. Amounts relating to the prior period have been adjusted in the year to which the same relates to and the same amount
is arrived on account of change in Opening Balance of Reserve and Surplus due to the restated effect on the profit /
(loss) of prior period.

Note - To give Explanatory Notes regarding Adjustments Appropriate adjustments have been made in the restated
financial statements, wherever required, by reclassification of the corresponding items of Income, expenses, assets
and liabilities, in order to bring them in line with the groupings as per the audited financial of the company for all the
years and requirements of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations 2018.

Our total income comprises of revenue from operations and other incomes.

Revenue from operations mainly consists of revenue from sale of Electrical Infrastructure and Network Development
Works, Metering and Meter Management Services and Network Operation and Maintenance ("O&M") Services.

The following table sets forth the bifurcation of revenue (service-wise) for the financial year ended March 31, 2026,
March 31, 2025 and March 31, 2024:

(Pc in T al/hcl

Other income primarily comprises of Interest Income on Fixed Deposits and Miscellaneous Income.

Total expenses consist of operating cost like Cost of Material consumed, Change in inventories of WIP, Employee
benefits expense, Finance costs, Depreciation and amortization expenses and Other expenses.

Cost of Material consumed primarily comprise of Opening stock of raw material, purchase of goods during the year and
Closing stock of raw material.

Changes in inventories of Work in Progress between opening and closing dates of a reporting period.

Our finance cost includes Interest on working capital loan and Other loan, and Other Financial charges like Bank &
Processing charges.

Depreciation includes depreciation on tangible assets such as Building, Plant & Machinery, Office Equipment, Furniture
and Fixtures, Computer and Vehicles.

Other Expenses include Direct expenses like Crane hire charges, Consumables, tools and tackles, Transport charges and
Site expenses; and Other expenses like Auditor Fees, Electricity expenses, Loss on sale of Fixed Assets, Amount w/off,
Bank charges, Legal and Professional Expenses, Deduction & Late Delivery Charges, Insurance, Interest to MSME,
Interest & Penalty on Statutory Dues, Printing and stationery, Rent, Rates & Taxes, Repairs & maintenance, Travelling
& Conveyance Expenses, Other Administrative Expense, CSR Expenditure and Telephone & Internet Expenses.

Total Income increased by 19.26%, from Rs. 13,135.60 lakhs in FY2025 to Rs.15,666.10 lakhs in FY2026. The growth
was primarily driven by a 19.18% increase in Revenue from Operations, which rose from Rs.13,123.56 lakhs to
Rs.15,641.29 lakhs, along with a 105.94% increase in Other Income, which increased from Rs.12.05 lakhs to Rs.24.81
lakhs. Overall, the increase in operating revenue remained the principal contributor to the Companys higher total
income during the year.

Revenue from Operations increased by 19.18%, from Rs.13,123.56 lakhs in FY2025 to Rs.15,641.29 lakhs in FY2026.
The growth was primarily driven by a 127.84% increase in Electrical Infrastructure and Network Development Works,
with revenue rising from Rs.1,006.46 lakhs to Rs.2,293.10 lakhs, and a 15.64% increase in Network Operation &
Maintenance (O&M) Services, from Rs.10,401.08 lakhs to Rs.12,028.31 lakhs. However, revenue from Metering and
Meter Management Services declined by 23.08%, decreasing from Rs.1,716.02 lakhs in FY2025 to Rs.1,319.88 lakhs
in FY2026, partially offsetting the overall growth.

Other Income increased by 105.94%, from Rs.12.05 lakhs in FY2025 to Rs.24.81 lakhs in FY2026. The increase was
primarily driven by higher Interest Income on Fixed Deposits, which rose by 68.91% from Rs. 12.05 lakhs to Rs.20.35
lakhs, along with Rs.4.46 lakhs of additional Miscellaneous Income recognized during FY2026.

Total expenses for FY 2025-26 were Rs. 14,236.09 Lakhs, compared to Rs. 12,460.63 Lakhs in FY 2024-25, reflecting
an increase of 14.25%. This increase was primarily attributable to a rise in Employee Benefit Expenses, which
increased by 14.93% from Rs.9,268.80 Lakhs to Rs.10,652.69 Lakhs, along with a significant increase in Finance
Costs from Rs.66.33 Lakhs to Rs.131.00 Lakhs and Depreciation and Amortization Expenses from Rs.75.10 Lakhs to
Rs.168.75 Lakhs. Further, Other Expenses increased by 7.58% from Rs.2,796.84 Lakhs to Rs.3,008.93 Lakhs. The
overall increase in expenses was in line with the expansion of the Companys business operations, higher employee-
related costs, increased borrowing costs, and additional depreciation on newly acquired assets.

Cost of Material Consumed decreased by 11.68% to Rs.367.17 Lakhs in FY 2025-26 from Rs.415.75 Lakhs in FY
2024-25. The decrease was primarily due to a significant increase in closing inventory of raw materials, which rose
from Rs.90.39 Lakhs to Rs.218.82 Lakhs, indicating that the Company maintained higher inventory levels to support
its anticipated operational requirements.

Change in inventories of Work in Progress:

Our Company has incurred Rs.10,652.69 lakhs as Employee Benefit Expenses during FY 2025-26 as compared to
Rs.9,268.80 lakhs in FY 2024-25, reflecting an increase of 14.93%. This increase was primarily due to a rise in

Our Company has incurred Rs.131.00 lakhs as Finance Costs during FY 2025-26 as compared to Rs.66.33 lakhs in
FY 2024-25, reflecting an increase of 97.50%. This increase was primarily due to a rise in interest on Working Capital
Loans and Other Loans from Rs.44.10 lakhs in FY 2024-25 to Rs.101.04 lakhs in FY 2025-26, indicating higher
utilization of borrowings to support business operations. Further, Bank and Processing Charges increased from
Rs.22.22 lakhs to Rs.29.96 lakhs during the same period

Other expenses for the FY 2025-26, were Rs. 3,008.93 lakhs as compared to Rs. 2.796.84 lakhs for the FY 2024-25,
including Direct expenses like Crane hire charges, Consumables, tools and tackles, Transport charges and Site expenses;
and Other expenses like Auditor Fees, Electricity expenses, Loss on sale of Fixed Assets, Amount w/off, Bank charges,
Legal and Professional Expenses, Deduction & Late Delivery Charges, Insurance, Interest to MSME, Interest & Penalty
on Statutory Dues, Printing and stationery, Rent, rates and taxes, Repairs & Maintenance, Travelling & Conveyance
Expenses, Other Administrative Expense, CSR Expenditure and Telephone & Internet Expenses.

Net profit before tax for the Financial Year 2025-26 increased to Rs. 1,430.01 lakhs as compared to Rs. 674.98 lakhs
in the Financial Year 2024-25, marking an increase of 111.86%. This significant growth was primarily driven by the
factors mentioned above.

The total income for FY 2024-25 stood at Rs. 13,135.60 Lakhs, compared to Rs. 11,203.17 Lakhs in FY 2023-24,
reflecting a growth of 17.25%. This increase was primarily driven by higher Revenue from Operations and Other
Income.

During the year ended March 31^st , 2025 the net Revenue from Operations of our Company was Rs. 13,123.56 lakhs
as compared to 11,179.56 lakhs in FY 2023-24, marking an increase of 17.39% primarily driven by the sale Network
Operation and Maintenance ("O&M") Services of Rs. 10,401.08 lakhs with a growth of 22.73% and Metering and
Meter Management Services of Rs. 1,716.02 lakhs with a growth of 44.00% as against FY 2023-24.

Other income for FY 2024-25 stood at Rs. 12.05 Lakhs, compared to Rs. 23.61 Lakhs in FY 2023-24, marking a
decrease of 48.98%. The decrease was primarily due to decrease in Interest Income on Fixed Deposits.

The Cost of material consumed decreased to Rs. 415.75 Lakhs in FY 2024-25 from Rs. 736.85 Lakhs in FY 2023-24,
representing a decline of 43.58% which was primarily due to reduced purchase of goods during the year.

Our Company has incurred Rs. (162.19) Lakhs as Change in inventories of work in progress during the Financial Year
2024-25 as compared to NIL in the Financial Year 2023-24.

Our Company has incurred Rs. 9,268.80 lakhs as Employee Benefits Expense during the FY 2024-25 as compared to
Rs. 8,223.81 lakhs in FY 2023-24 with an increase of 12.71%. This increase was primarily due to a rise in Salary,
Wages and Other Allowances from Rs. 7,374.92 lakhs in FY 2023-24 to Rs. 8,133.85 lakhs in FY 2024-25, Directors
Remuneration from Rs. 2.50 lakhs in FY 2023-24 to Rs. 66.00 lakhs in FY 2024-25, Gratuity expenses Rs. 190.89
lakhs as against Rs. 29.16 lakhs in FY 2023-24, Provident Fund from Rs. 616.29 lakhs in FY 2023-24 to Rs. 683.51
lakhs in FY 2024-25 and Contribution to labour welfare and PT from Rs. 2.39 lakhs in FY 2023-24 to Rs. 5.78 lakhs
FY 2024-25. However, there was a decrease in Staff welfare expenses from Rs. 5.49 lakhs to Rs. 0.30 lakhs in FY
2024-25 and decrease in ESIC contribution from Rs. 193.06 lakhs in FY 2023-24 to Rs. 188.47 lakhs in FY 2024-25.

Our Company has incurred Rs. 66.33 lakhs as finance cost during the Financial Year 2024-25 as compared to Rs.
50.51 lakhs in the Financial Year 2023-24 reflecting an increase of 31.30%. This incline was primarily due to increase
in Bank & Processing charges of 63.71% from Rs. 13.57 lakhs in FY 2023-24 to Rs. 22.22 lakhs in FY 2024-25.
Further, there was a increase in Interest on working capital loan and term loan to Rs 44.10lakhs in FY 2024-25 from
Rs. 36.94 lakhs in FY 2023-24. i.e. increase of 19.40%.

Net profit before tax for the Financial Year 2024-25 increased to Rs. 674.98 lakhs as compared to Rs. 546.55 lakhs in
the Financial Year 2023-24, marking an increase of 23.50%. This significant growth was primarily driven by the
factors mentioned above.

As a result of the foregoing factors, our profit after tax increased by 66.27%, rising from Rs. 280.32 lakhs in the
Financial Year 2023-24 to Rs. 466.08 lakhs in the Financial Year 2024-25.

Net cash generated from operating activities was Rs. 108.18 lakhs for the FY 2024-25. While our net profit before tax
was Rs. 674.98 lakhs, we had an operating profit before working capital changes of Rs. 995.25 lakhs for FY 2024-25
which was due to interest income on Fixed Deposits Rs. (12.05) lakhs, depreciation of Rs. 75.10 lakhs, finance cost
of Rs. 66.33 lakhs and provision for gratuity of Rs. 190.89 lakhs. Our changes in working capital for FY 2024-25
primarily consisted of an increase in trade receivables by Rs. (467.50) lakhs, increase in inventories by Rs. (205.76)
lakhs, increase in other current assets by Rs. (50.73) lakhs, decrease in Short term loans and advances by Rs. 390.95
lakhs, increase in Other non-current assets by Rs. (137.45) lakhs, decrease in trade payables by Rs. (43.87) lakhs and
decrease in other current liabilities of Rs. (175.68) lakhs. Our income taxes paid was Rs. (197.03) lakhs for FY 2024-
25.

Net cash used in investing activities was Rs.543.08 lakhs for FY 2025-26, primarily comprising purchase of Property,
Plant and Equipment of Rs. (306.04) lakhs, investment in Fixed Deposits of Rs. (214.39) lakhs, and investment in
Mutual Funds of Rs. 48.00 lakhs. These outflows were partially offset by proceeds from sale of Property, Plant and
Equipment of Rs.5.00 lakhs and interest income on Fixed Deposits of Rs.20.35 lakhs. The higher cash outflow reflects
the Companys continued investment in fixed assets and investments to support its business growth and operational
requirements.

Net cash outflow in investing activities was Rs. (205.64) lakhs for the FY 2024-25 comprising payment for purchase
of Property, Plant and Equipment of Rs. (292.76) lakhs, Investment in Fixed Deposits of Rs. 122.02 lakhs, Investment
in Mutual Fund of Rs. (46.95) lakhs and Interest income on Fixed Deposit of Rs. 12.05 lakhs.

Net cash outflow in investing activities was Rs. (119.82) lakhs for the FY 2023-24 comprising payment for purchase
of Property, Plant and Equipment of Rs. (111.86) lakhs, Investment in Fixed Deposits of Rs. (31.57) lakhs and Interest
income on Fixed Deposit of Rs. 23.61 lakhs.

Net cash generated from financing activities was Rs.731.94 lakhs for FY 2025-26, primarily comprising proceeds
from Long-term Borrowings of Rs.78.27 lakhs and Short-term Borrowings of Rs.784.68 lakhs. These inflows were
partially offset by finance costs of Rs.(131.00) lakhs incurred during the year. The positive cash flow from financing
activities reflects the Companys increased reliance on borrowings to support its working capital requirements and
business expansion initiatives.

Net cash flow used in financing activities was Rs. 371.95 lakhs for the FY 2024-25, comprising of repayment of Long-
term borrowings and proceeds of Short-term borrowings of Rs. (20.00) lakhs and Rs. 458.27 lakhs respectively, along
with a Finance cost of Rs. (66.33) lakhs.

Net cash flow used in financing activities was Rs. (5.89) lakhs for the FY 2023-24 comprising of repayment of Long-
term borrowings and proceeds of Short-term borrowings of Rs. (15.83) lakhs and Rs. 60.46 lakhs respectively, along
with a Finance cost of Rs. (50.51) lakhs.

/Pc in IvilrhcA

Revenue from Operations increased by 17.39% to Rs. 13,123.56 lakhs in FY 2024-25 from Rs. 11,179.56 lakhs in FY
2023-24. The increase was primarily driven by a 22.73% growth in Network Operation and Maintenance ("O&M")
Services, which increased to Rs. 10,401.08 lakhs from Rs. 8,474.81 lakhs, reflecting higher execution of operation
and maintenance contracts during the year. The growth was further supported by a 44% increase in Metering and
Meter Management Services, which increased to Rs. 1,716.02 lakhs from Rs. 1,191.67 lakhs. This was partially offset
by a 33.48% decline in Electrical Infrastructure and Network Development Works, which decreased to Rs. 1,006.46
lakhs from Rs. 1,513.08 lakhs, primarily due to lower execution of infrastructure development projects during the
year.

PAT increased from Rs. 280.32 lakhs in FY 2023-24 to Rs. 466.08 lakhs in FY 2024-25 marking an increase of 66.27%
primarily due to an increase in Revenue from Operations. Further, depreciation and amortization expenses increased
from Rs. 40.44 lakhs to Rs. 75.10 lakhs (from 0.36% to 0.57% of revenue from operations) mainly due to additions

to fixed assets. Employee benefits expense marked an increase from Rs. 8,223.81 lakhs to Rs. 9,268.80 lakhs due to
expansion in operations and strengthening of the workforce to support the substantial growth in profitability. Also,
there was a rise in Finance cost from Rs. 50.51 lakhs to Rs. 66.33 lakhs (from 0.45% of revenue from operations to

0.51%). Profit After Tax increased by 66.27% in FY 2024-25 primarily driven by higher Revenue from Operations,
which offset the decline in Other income and the rise in depreciation, employee benefits, and finance costs during the
year.

EBITDA increased from Rs. 613.89 lakhs in FY 2023-24 to Rs. 804.35 lakhs in FY 2024-25 primarily due to a
significant improvement in operating performance driven by higher revenue from operations, which increased from
Rs. 11,179.56 lakhs in FY 2023-24 to Rs. 13,123.56 lakhs in FY 2024-25, reflecting a growth of approximately
17.39%. The increase in revenue was attributable to higher sales volumes, expansion across sales channels, and
improved pricing of the Companys services. Further, EBITDA margins improved primarily due to a reduction in cost
of services as a percentage of revenue from operations, driven by enhanced operational efficiencies and better cost
management. Additionally, employee benefits expense as percentage of revenue declined from 73.56% of revenue in
FY 2023-24 to 70.63% in FY 2024-25 due to manpower optimisation. However, finance costs increased by 31.30%
in FY 2024-25 on account of higher borrowings, and depreciation and amortisation expenses increased by 85.69%
due to additions to fixed assets. Despite these increases, the overall improvement in operating margins resulted in an
expansion in EBITDA during FY 2024-25.

Revenue from Operations increased by 19.18% to Rs. 15,641.29 lakhs in FY 2025-26 from Rs. 13,123.56 lakhs in FY
2024-25. The increase was primarily driven by a 127.84% growth in Electrical Infrastructure and Network
Development Works, which increased to Rs. 2,293.10 lakhs from Rs. 1,006.46 lakhs, on account of higher execution
of infrastructure development projects during the year. The growth was further supported by a 15.64% increase in
Network Operation and Maintenance ("O&M") Services, which increased to Rs. 12,028.31 lakhs from Rs. 10,401.08
lakhs. This was partially offset by a 23.08% decline in Metering and Meter Management Services, which decreased
to Rs. 1,319.88 lakhs from Rs. 1,716.02 lakhs, primarily due to lower execution of metering-related projects during
the year. Accordingly, the increase in Revenue from Operations was primarily attributable to higher execution of O&M
services and electrical infrastructure projects, resulting in overall growth in the Companys service revenue.

Profit After Tax (PAT) increased from Rs.466.08 lakhs in FY 2024-25 to Rs.1,046.57 lakhs in FY 2025-26, reflecting
an increase of 124.55%. The increase was primarily driven by growth in Revenue from Operations, which increased
from Rs.13,123.56 lakhs in FY 2024-25 to Rs.15,641.29 lakhs in FY 2025-26, representing a growth of 19.18%. The
Company also reported higher Other Income of Rs.24.81 lakhs as compared to Rs. 12.05 lakhs in FY 2024-25. During
the year, total expenses increased from Rs.12,460.63 lakhs to Rs.14,236.09 lakhs, mainly due to higher Employee
Benefit Expenses of Rs.10,652.69 lakhs as compared to Rs.9,268.80 lakhs in FY 2024-25, Finance Costs of Rs.131.00
lakhs as compared to Rs.66.33 lakhs in FY 2024-25 and Depreciation and Amortization Expenses of Rs. 168.75 lakhs
as against Rs.75.10 lakhs in FY 2024-25. Despite the increase in operating expenses, Profit Before Tax (PBT)
increased from Rs.674.98 lakhs to Rs.1,430.01 lakhs, reflecting a growth of 111.86%, driven by higher revenue and
improved operational efficiency. Consequently, the Companys PAT margin improved from 3.55% in FY 2024-25 to
6.69% in FY 2025-26.

EBITDA increased from Rs.804.35 lakhs in FY 2024-25 to Rs.1,704.94 lakhs in FY 2025-26, reflecting a growth of

Rationale for changes in Cost of Material as a percentage of Revenue from Operations from FY 2023-24 to FY 2024-
25 and FY 2025-26 .

> The reduction in cost as a percentage of revenue from operations is primarily attributable to improved operating
leverage and a more efficient cost structure, supported by optimized procurement and favorable inventory movements
during the year.

The cost of materials consumed decreased from Rs. 736.85 lakhs in FY 2023-24 to Rs. 415.75 lakhs in FY 2024-25,
despite an increase in Revenue from Operations from Rs. 11,179.56 lakhs to Rs. 13,123.56 lakhs during the same
period. Consequently, the total material cost (including the impact of changes in inventories of work-in-progress) as a
percentage of Revenue from Operations declined significantly from 6.59% in FY 2023-24 to 1.93% in FY 2024-25.
The decrease was primarily attributable to a shift in the Companys project execution mix towards contracts requiring
relatively lower direct material inputs, coupled with improved inventory utilization, as reflected in the higher reduction
in work-in-progress inventories during the year. Accordingly, the reduction in material cost and its proportion to
revenue reflects improved operational efficiency and changes in the nature of projects executed during the year, rather
than any adverse impact on the Companys operations.

The cost of materials consumed further decreased from Rs. 415.75 lakhs in FY 2024-25 to Rs. 367.17 lakhs in FY
2025-26, while Revenue from Operations increased from Rs. 13,123.56 lakhs to Rs. 15,641.29 lakhs during the same
period. Consequently, the total material cost (including the impact of changes in inventories of work-in-progress) as a
percentage of Revenue from Operations improved further from 1.93% in FY 2024-25 to 1.76% in FY 2025-26. The
decline was primarily attributable to continued execution of projects with comparatively lower material intensity,
efficient procurement and inventory management practices, and higher revenue growth relative to material
consumption. Accordingly, the decrease in material cost and its proportion to revenue is consistent with the Companys
project mix and operational efficiencies and does not indicate any adverse impact on its business operations.

Our borrowings include term loans from banks, working capital loans, cash credit, Business purpose loan, and vehicle
loans. The Companys total long-term borrowings stood at Rs. 99.36 lakhs as on March 31st, 2026, compared to Rs.
21.10 lakhs as on March 31, 2025, and Rs. 41.09 lakhs in FY 2023-24. The borrowings primarily comprise secured
loans from banks and financial institution and unsecured loans from directors and related parties. The change in long-
term debt reflects stable financing arrangements and consistent debt servicing.

Our trade payables stood at Rs. 376.94 lakhs as of March 31, 2024, constituting 3.37% of Revenue from Operations
of Rs. 11,179.56 lakhs. In FY 2024-25, Revenue from Operations increased by 17.39% to Rs. 13,123.56 lakhs, while
trade payables declined to Rs. 333.07 lakhs, resulting in trade payables as a percentage of revenue improving to 2.54%.
Further, in FY 2025-26, Revenue from Operations increased to Rs. 15,641.29 lakhs and trade payables increased to
Rs. 377.87 lakhs. However, the increase in revenue outpaced the increase in trade payables, leading to a further
improvement in trade payables as a percentage of revenue to 2.42%. This trend indicates effective management of
supplier obligations and working capital despite the growth in business operations

Also, the trade payables have remained at reasonable levels and are commensurate with the scale of operations and
credit terms extended by suppliers in the ordinary course of business. The details of trade payables and corresponding
ratio to revenue from operations for the periods indicated^ are as shown below: -

Trade payables decreased from Rs. 376.94 lakhs in FY 2023-24 to Rs. 333.07 lakhs in FY 2024-25 and increased to
Rs. 377.87 lakhs in FY 2025-26. However, Revenue from Operations grew at a faster pace over the same period,
resulting in trade payables as a percentage of Revenue from Operations declining from 3.37% in FY 2023 -24 to 2.54%
in FY 2024-25 and further to 2.42% in FY 2025-26. The movement in trade payables was primarily in line with the
Companys procurement requirements, project execution schedule and agreed credit terms with suppliers, reflecting
efficient working capital management.

Our inventories increased from Rs. 46.81 lakhs in FY 2023-24 and further to Rs. 252.58 lakhs in FY 2024-25,
representing a growth of 439.53% from FY 2023-24 to FY 2024-25. As on March 31st, 2026, inventories stood at Rs.
473.45 lakhs. The revenue from operations of our company increased from Rs. 11,179.56 lakhs in FY 2023-24 to Rs.
13,123.56 lakhs in FY 2024-25. However, inventory as a percentage of revenue from operations kept increasing from
0.42% in 2023-24 to 1.92% in 2024-25 to 3.03% in 2025-26 primarily due to higher stock holding to support business
expansion and anticipated growth in operations. The Company continues to maintain optimal inventory levels to
ensure smooth execution while effectively managing carrying costs. Further, inventory holding days remained 2 days
in FY 2023-24 to 7 days in FY 2024-25 to 11 days in FY 2025-26. The increase in inventory holding days is primarily
due to higher inventory levels maintained to support anticipated demand and ensure uninterrupted operations.

Further, a significant portion of the increase in inventories in FY 2024-25 is on account of work-in-progress amounting
to Rs. 162.19 lakhs and Rs. 254.63 lakhs in FY 2025-26, which represents costs incurred on ongoing projects that
were at various stages of completion as at the reporting date. Such work in progress is inherent to the nature of the
Companys operations and reflects execution of projects that are yet to be completed and billed. This increase is
primarily due to higher WIP levels and strategic inventory buildup undertaken to support anticipated demand, manage
procurement lead times, and mitigate supply chain constraints.

Our short-term loans and advances stood at Rs. 257.17 lakhs as on March 31st, 2026, compared to Rs. 150.31 lakhs
as on March 31, 2025, Rs. 541.26 lakhs in FY 2023-24. The significant increase for the year ended March 31^st, 2026
from FY 2024-25 was primarily due to increased Advance to suppliers from Rs. 79.66 lakhs in FY 2024-25 to Rs.

153.50 lakhs as on March 31^st, 2026 increased Advance to employees from Rs. 29.43 lakhs to Rs. 63.28 lakhs,
reflecting the procurement requirements for increased production.

Property, Plant and Equipment increased from ^231.35 lakhs as at March 31, 2024 to Rs.449.00 lakhs as at March 31,
2025 and further to Rs.580.29 lakhs as at March 31, 2026, primarily due to capital expenditure incurred during the
respective financial years. The significant increase in Property, Plant and Equipment during FY 2024-25 was primarily
attributable to additions comprising buildings of Rs.44.29 lakhs, plant and machinery of Rs.216.10 lakhs, office equipment
of Rs.1.86 lakhs, computers of Rs.3.19 lakhs and vehicles of Rs.23.82 lakhs. These additions resulted in a significant increase
in the closing balance of Property, Plant and Equipment as at March 31, 2025. During FY 2025-26, further additions
were made towards plant and machinery amounting to Rs.84.85 lakhs, office equipment amounting to Rs.24.07 lakhs,
computers amounting to Rs.1.13 lakhs, and furniture and fittings and vehicles amounting to Rs.194.75 lakhs. These
additions contributed to the increase in the closing balance of Property, Plant and Equipment to Rs.580.29 lakhs as at
March 31, 2026.

There have not been any unusual events or transactions on account of our business activity.

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 23 of the Red Herring Prospectus,
in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse
impact on revenue or income from continuing operations.

4. Future changes in the relationship between costs and revenues:

Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis
of Financial Condition and Results of Operations" on pages 23, 127 and 255 respectively, to our knowledge, no future
relationship between expenditure and income is expected to have a material adverse impact on our operations and
finances.

As per AS -17 Segment Reporting is not applicable to the company for the reporting period.

Except as disclosed in the Chapter "Our Business", our Company has not announced any new service.

Our business is not subject to seasonality. For further information, see "Industry Overview" and "Our Business" on
pages 107 and 127 respectively.

Substantial portion of our revenue has been dependent upon few customers with which we do not have any firm
commitments. For details, please refer to risk factor "Majority of our revenue is derived from a limited number of
customers, and any reduction in orders from such customers may adversely affect our business, financial condition,
results of operations and cash flows" on page 25 of this RHP.

Competitive conditions are as described under the Chapter "Our Business - Competition" beginning on page 141 of
this Red Herring Prospectus.