2.6 Provisions and Contingencies

A provision is recognised when an enterprise has a present obligation as a result of past event and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable
estimate can be made. Provisions are not discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.

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

2.7 Intangible Assets

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business
combination that are not individually identified and separately recognized.

Goodwill is initially measured at cost, being the excess of the consideration transferred over the net identifiable
assets acquired and liabilities assumed.

Goodwill is considered to have indefinite useful life and hence is not subject to amortization but tested for
impairment at least annually. After initial recognition, goodwill is measured at cost less any accumulated
impairment losses.

For the purpose of impairment testing, goodwill acquired in a business combination, is from the acquisition
date, allocated to each of the Company’s cash generating units (CGUs) that are expected to benefit from the
combination.

A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of
the cash inflows from other assets or group of assets. Each CGU or a combination of CGUs to which
goodwill is so allocated represents the lowest level at which goodwill is monitored for internal management
purpose and it is not larger than an operating segment of the Company.

A CGU to which goodwill is allocated is tested for impairment annually, and whenever there is an indication
that the CGU may be impaired, by comparing the carrying amount of the CGU, including the goodwill, with the
recoverable amount of the CGU. If the recoverable amount of the CGU exceeds the carrying amount of the
CGU, the CGU and the goodwill allocated to that CGU is regarded as not impaired. If the carrying amount of
the CGU exceeds the recoverable amount of the CGU, the Company recognizes an impairment loss by first
reducing the carrying amount of any goodwill allocated to the CGU and then to other assets of the CGU pro¬
rata based on the carrying amount of each asset in the CGU.

2.8 Property, Plant and Equipment

An item of property, plant and equipment is recognised as an asset if it is probable that future economic
benefits associated with the item will flow to the company and its cost can be measured reliably. This
recognition principle is applied to costs incurred initially to acquire an item of property, plant and equipment
and also to costs incurred subsequently to add to, replace part of, or service it. All other repair and
maintenance costs, including regular servicing, are recognised in the Statement of Profit and Loss as incurred.
Where an item of property, plant and equipment comprises major components having different useful lives,
these components are accounted for as separate items.

The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates,
any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any
directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and
interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for
its intended use. Subsequent expenditure on fixed assets after its purchase / completion is capitalized only if
such expenditure results in an increase in the future benefits from such asset beyond its previously assessed
standard of performance. The company depreciates property, plant and equipment over their estimated useful
lives using the straight line method. Depreciation methods and useful lives are reviewed periodically at each
financial year end. The gain or loss arising on disposal of an item of property, plant and equipment is
determined as the difference between sale proceeds and carrying value of such item and is recognised in the
Statement of Profit and Loss.

2.9 Depreciation Of Property, Plant And Equipment

Depreciation has been provided in accordance with useful lives prescribed in the Companies Act, 2013 on
Written Down Value method.

The estimated useful life of each asset as prescribed under Schedule II of the Companies Act, 2013 and based
on technical assessment of internal experts (after considering the expected usage of the asset, expected
physical wear and tear, technical and commercial obsolescence and understanding of past practices and
general industry experience) are as depicted below:

2.10 Cash and Cash Equivalents

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

2.11 Cash Flow Statement

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

2.12 Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with
the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the
accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the
reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are
recognised for timing differences of items other than unabsorbed depreciation and carry forward losses only to
the extent that reasonable certainty exists that sufficient future taxable income will be available against which
these can be realised. However, if there is unabsorbed depreciation and carry forward of losses and items
relating to capital losses, deferred tax assets are recognised only if there is virtual certainty supported by
convincing evidence that there will be sufficient future taxable income available to realise the assets. Deferred
tax assets are reviewed at each balance sheet date for their realisability.

2.13 Earnings per Share

Basic earnings per share is computed by dividing the net profit / (loss) after tax by the weighted average
number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the
net profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income relating to
the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity shares which could have been issued on
the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if
their conversion to equity shares would decrease the net profit per share from continuing ordinary operations.
Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have
been issued at a later date. Dilutive potential equity shares are determined independently for each period
presented. The number of shares and potentially dilutive

equity shares are adjusted retrospectively for all periods presented in case of share splits.

2.14 Post-employment obligations

Defined contribution plans: The Company's contribution to provident fund are considered as defined
contribution plans and are charged as an expense based on the amount of contribution required to be made
and when services are rendered by the employees.

For defined benefit plans in the form of gratuity, the cost of providing benefits is determined using the
Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial
gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past
service cost is recognised immediately to the extent that the benefits are already vested and otherwise is
amortised on a straight-line basis over the average period until the benefits become vested. The retirement
benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit
obligation as adjusted for unrecognised past service cost.

d) Rights, Preferences and restrictions attached to equity shares

The Company has one class of equity shares having a par value of Rupees 10.00 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts, in proportion to their shareholding.

e) The Board of Directors in its meeting held on February 1, 2023 have recommended for approval by shareholders, bonus issue of 85 (Eighty Eight) equity share of INR 10.00 each for every
1 (one) equity shares of INR 10.00 each held by shareholders of the Company, subject to approval of the shareholders.

Pursuant to the approval of the shareholders , the Company alloted 1,21,36,300 bonus equity shares of INR 10.00 each as fully paid-up bonus equity shares, in the proportion of 85
(Eighty Eight) equity shares of INR 10.00 each for every 1 (One) existing equity shares of INR 10.00 each to the equity shareholders of the Company as on February 23, 2023.

f) Initial Public Offer (IPO) of equity shares of the company

During the year, company raised an amount of INR 2275.20 lakhs through IPO of 56,88,000 equity shares of INR 10.00 each at an issue price of INR 40.00 each ( including securities
premium of INR 30.00 each per share). The offer was open from June 24,2024 to June 27,2024.The equity shares of the company are listed on the SME Platform of National Stock
Exchange of India (NSE EMERGE) with effect from July 2,2024.

g) Preferential issue of Equity shares

Board of Directors of the company in their meeting held on November 29,2024 considered and approved equity infusion of INR 2,849.52 lakhs through preferential issue of 22,98,000
equity shares of INR 10.00 each at an issue price of INR 124.00 each ( including securities premium of INR 114.00 each per share) into the Company which was approved by the
shareholders in their meeting held on January 1,2025.

Further, the shareholders approved the aforesaid issuance and allotment of 22,98,000 equity shares of INR 124.00 each vide resolution dated March 22,2025.Proceeds from the issue were
utilised for the acquisition of a company. i.e. Vimlesh Industries Private Limited (Refer Note 42).

* Note on Security of Loans

-Vehicle Loans were secured by way of hypothecation of respective vehicle and repayable in 48-84 monthly installments commencing
from Oct 1, 2020. Loan outstanding as on March 31, 2025 is INR 132.34 Lakhs (As at March 31,2024 : INR 116.99 Lakhs) . Rate of
interest as on March 31,2025 varies from 7.50% to 9.19%.

-Machinery Loan were secured by way of hypothecation of respective Machinery and repayable in 36-54 monthly installments
commencing from March 10, 2023. Loan outstanding as on March 31, 2025 is INR 152.61 Lakhs (As at March 31,2024 : INR 324.52
Lakhhs) . Rate of interest as on March 31,2025 varies from 8.60% to 10.95%.

(2) Emergency Credit Line Guarantee Scheme (ECLGS) as on March 31, 2025 is INR 148.07 Lakhs (As at March 31,2024 : INR
340.53 Lakhhs). Rate of interest as on March 31,2025 is 9.25%

Primary: Exclusive charge by way of hypothetication over entire current & moveable assets of the company (present & future except
of assets already hypotheticated/mortgaged to other banks/Financial Institutions)

Guarantee: Personal Guarantees of the Directors & Individuals:

(a) Mr. Rajesh Giri

(b) Mr. Vikas T alwar

(c) Mrs. Pratibha T alwar

(d) Mrs. Dali Giri

Collateral:

Equitable Mortgage of Residential property situated at B-82, Anand Vihar, Railway Board employees, Cooperative House building
society, Anand Vihar, Delhi-110092

(3) Term Loan of INR 2,500.00 Lakhs as on March 31, 2025 is INR 2500.00 Lakhs (As at March 31,2024 : Nil). Rate of interest as on
March 31,2025 is 10.75%.

Collateral:

Industrial Property situated at Khasra No. 6/1/2, 6/2, 6/3, 2/22/2 & 2/23, Village - Joshijat, Bahalgarh Road, Sonepat, Haryana (West),
New Delhi owned by M/s. Vimlesh Industries Private Limited (VIPL) under pari-passu.

Guarantee: Personal Gurantee of Directors & Individuals.

(a) Rajesh Giri

(b) Vikas T alwar

(c) Anuj T alwar

(d) Dali Giri

(e) Corporate Guarantee of Vimlesh Industries Private Limited (VIPL)

(a) Defined Benefit Plans
Gratuity

The Company operates a defined benefit gratuity plan for its employees. The gratuity scheme provides for lump sum payment to vested employees
at retirement/death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed
year of service or part thereof in excess of 6 months subject to a limit of INR 20.00 lakhs (March 31, 2024: INR 20.00 lakhs )

i) Movement of defined benefit obligation :

The amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the year are as follows:

Notes :

(1) The discount rate is based on the prevailing market yield of Indian Government Securities as at Balance Sheet date for the estimated term of
obligation.

(2) The estimate of future salary increase considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant
factors such as supply and demand in the employment market.

42 Event occurring after the Balance Sheet date

During the year, the Board of Directors of Divine Power Energy Limited ('the Company') in their meeting held on October 23, 2024 considered and
approved the acquisition of whole of the assets and liabilities of Vimlesh Industries Private Limited ('VIPL'), by way of entering into a Share
Purchase Agreement ('Agreement') for the acquisition of 2,51,000 Equity Shares of VIPL .

Pursuant to the said Agreement dated November 21,2024, the company has paid consideration for the aforesaid acquisition amounting to INR
5,583.21 lakhs to VIPL as at March 31,2025 (shown under 'Investments' in Note 14).

On completion and transfer of shares on April 2,2025, company held 2,51,000 equity shares representing 100.00% of paid up share capital of
VIPL. Accordingly, VIPL became a wholly owned subsidiary of the company with effect from April 2,2025.