అకౌంట్స్ గమనికలుGK Energy Ltd.

2.14 Provisions, Contingent Liabilities and Contingent
Assets

Provisions are recognized when there is a present
legal or constructive obligation as a result of a
past event and it is probable (i.e. more likely than
not) that an outflow of resources embodying
economic benefits will be required to settle the
obligation and a reliable estimate can be made of
the amount of the obligation. Such provisions are
determined based on management estimate of
the amount required to settle the obligation at the
balance sheet date. When the Company expects
some or all of a provision to be reimbursed, the
reimbursement is recognized as a standalone
asset only when the reimbursement is virtually
certain.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects, the risks specific to the liability.
When discounting is used, the increase in the
provision due to the passage of time is recognized
as a finance costs.

Present obligations arising under onerous contracts
are recognized and measured as provisions.
An onerous contract is considered to exist when
a contract under which the unavoidable costs
of meeting the obligations exceed the economic
benefits expected to be received from it.

Contingent liabilities are disclosed on the basis of
judgment of management/independent experts.
These are reviewed at each balance sheet
date and are adjusted to reflect the current
management estimate.

Contingent Assets are not recognized, however,
disclosed in financial statement when inflow of
economic benefits is probable.

2.15 Revenue Recognition and Other Income

Revenue is measured at amount of transaction
price (net of variable consideration) received or
receivable when control of the goods is transferred
to the customer and there are no unfulfilled
performance obligations as per the contract with
the customers. The Company recognizes revenue
when it satisfies a performance obligation in
accordance with the provisions of contract with
the customer. This is achieved when;

a) effective control of goods along with significant
risks and rewards of ownership has been
transferred to customer;

b) the amount of revenue can be measured
reliably;

c) it is probable that the economic benefits
associated with the transaction will flow to the
Company; and

d) the costs incurred or to be incurred in respect
of the transaction can be measured reliably

Revenue represents net value of goods and
services provided to customers after deducting
for certain incentives including, but not limited
to discounts, volume rebates, etc. For incentives
offered to customers, the Company makes
estimates related customer performance and sales
volume to determine the total amounts earned
and to be recorded as deductions. The estimate
is made in such a manner, which ensures that it
is highly probable that a significant reversal in the
amount of cumulative revenue recognized will not
occur. The actual amounts may differ from these
estimates and are accounted for prospectively.

Revenue are net of Goods and Service Tax.
No element of significant financing is deemed
present as the sales are made with a credit term,
which is consistent with market practice.

Company generate revenue from sale of pumps
and related support services. Revenue from

services is recognized in the accounting period in
which the services are rendered.

Interest income from a financial asset is recognized
when it is probable that the economic benefits
will flow to the Company and the amount of
income can be measured reliably. Interest income
is accrued on a time basis, by reference to the
principal outstanding and at the effective interest
rate applicable, which is the rate that exactly
discounts estimated future cash receipts through
the expected life of the financial asset to that
asset’s net carrying amount on initial recognition.

2.16 Depreciation and Amortization

Depreciation of PPE commences when the assets
are ready for their intended use. Depreciation on
PPE is recognized so as to write off the cost of
assets (other than freehold land) less their residual
values over their useful lives, using the straight¬
line method. PPE which are added / disposed off
during the year, depreciation is provided on pro¬
rata basis from / up to the date on which the asset
is available for use / disposal. The estimated useful
lives, residual values and depreciation method are
reviewed at the end of each reporting period, with
the effect of any changes in estimate accounted
for on a prospective basis. Component of an item
of PPE with the cost that is significant in relation
to total cost of that item is depreciated Separately
if it’s useful life differs from other components of
the assets.

Depreciation on PPE is provided over the useful
life of assets on straight line method as specified
in the Schedule II of the Companies Act 2013 to the
extent of 95 except the following

Assets acquired on lease arrangement are
depreciated over the respective useful life
applicable to asset or written off over lease period,
whichever is lower.

2.17 Borrowing and Borrowing costs

Borrowings are initially recognized at fair
value, net of transaction costs incurred.
Borrowings are subsequently measured at
amortized cost. Any difference between ]the
proceeds (net of transaction costs) and the
redemption amount is recognized in Statement of
profit and loss over the period of the borrowings
using the effective interest method. Borrowings are
derecognized from the balance sheet when the
obligation specified in the contract is discharged,
cancelled or expired. The difference between the

carrying amount of a borrowings that has been
extinguished or transferred to another party
and the consideration paid, including any non¬
cash assets transferred or liabilities assumed, is
recognized in Statement of profit and loss as other
gains/(losses). 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.

Borrowing costs directly attributable to the
acquisition, construction or production of an asset
that necessarily takes a substantial period of time
to get ready for its intended use are capitalized as
part of the cost of the asset. All other borrowing
costs are expensed in the period in which they
occur. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as
an adjustment to the borrowing costs.

Borrowing costs which are directly attributable to
acquisition / construction of qualifying assets that
necessarily takes a substantial period of time to
get ready for its intended use are capitalized as
a part of cost pertaining to those assets. All other
borrowing costs are recognized as expense in the
period in which they are incurred.

2.18 Employee Benefits

Short-term Employees Benefits

All employee benefits payable wholly within twelve
months of rendering services are classified as short
term employee benefits. Benefits such as salaries,
wages, short-term compensated absences,
performance incentives etc., are recognized during
the period in which the employee renders related
services and are measured at undiscounted
amount expected to be paid when the liabilities
are settled.

Post-employment benefits

The Company provides the following post¬
employment benefits:

i) Defined benefit plans such as gratuity and

ii) Defined Contribution plans such as provident
fund 5 employee State Insurance Scheme

Defined benefits plans

The cost of providing defined benefit plans such
as gratuity is determined on the basis of present
value of defined benefits obligation which is

computed using the projected unit credit method
with independent actuarial valuation made at
the end of each annual reporting period, which
recognizes each period of service as given rise
to additional unit of employees benefit entitlement
and measuring each unit separately to build final
obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense
in the Statement of Profit and Loss except those
included in cost of assets as permitted.

Re-measurements comprising of actuarial gains
and losses arising from experience adjustments
and change in actuarial assumptions, the
effect of change in assets ceiling (if applicable)
and the return on plan asset (excluding net
interest as defined above) are recognized in
other comprehensive income (OCI) except those
included in cost of assets as permitted in the
period in which they occur. Re-measurements are
not reclassified to the Statement of Profit and Loss
in subsequent periods.

Service cost (including current service cost,
past service cost, as well as gains and losses on
curtailments and settlements) is recognized in the
Statement of Profit and Loss except those included
in cost of assets as permitted in the period in
which they occur.

Defined Contribution Plans

Payments to defined contribution retirement benefit
plans, viz., Provident Fund for eligible employees
are recognized as an expense when employees
have rendered the service entitling them to the
contribution.

2.19 Earnings per Share:

Basic earnings per share is calculated by dividing
the profit from continuing operations and total
profit, both attributable to equity shareholders of
the Company by the weighted average number of
equity shares outstanding during the year.

2.20 Income Taxes

Income tax expense represents the sum of
tax currently payable and deferred tax. Tax is
recognized in the Statement of Profit and Loss,
except to the extent that it relates to items
recognized directly in equity or in other
comprehensive income.

Current tax

Current tax assets and liabilities are measured
at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and
tax laws used to compute the amount are those
that are enacted or substantively enacted in India,
at the reporting date.

Current tax relating to items recognized
outside statement of profit or loss is recognized
outside statement of profit or loss (either in
other comprehensive income or in equity).
Current tax items are recognized in correlation to
the underlying transaction either in OCI or directly
in equity. Management periodically evaluates
positions taken in the tax returns with respect to
situations in which applicable tax regulations are
subject to interpretation and establishes provisions
where appropriate.

Current tax assets is offset against current tax
liabilities if, and only if, a legally enforceable right
exists to set off the recognized amounts and there
is an intention either to settle on a net basis,
or to realize the asset and settle the liability
simultaneously

Deferred Tax

Deferred tax is recognized on temporary
differences between the carrying amounts of
assets and liabilities in the balance sheet and the
corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally
recognized for all taxable temporary differences.
Deferred tax assets are generally recognized for
all deductible temporary differences, unabsorbed
losses and unabsorbed depreciation to the extent
that it is probable that future taxable profits
will be available against which those deductible
temporary differences, unabsorbed losses
and unabsorbed depreciation can be utilized.
Such deferred tax assets and liabilities are not
recognized if the temporary difference arises
from initial recognition of assets and liabilities in a
transaction that affects neither the taxable profit
nor the accounting profit.

The carrying amount of deferred tax assets is
reviewed at each balance sheet date and reduced
to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all
or part of the asset to be recovered.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in

the period in which the liability is settled or the
asset realized, based on tax rates (and tax laws)
that have been enacted or substantively enacted
by the balance sheet date. The measurement of
deferred tax liabilities and assets reflects the tax
consequences that would follow from the manner
in which the Company expects, at the reporting
date, to recover or settle the carrying amount of
its assets and liabilities.

Deferred tax assets and liabilities are offset when
there is a legally enforceable right to set off
current tax assets against current tax liabilities
and when they relate to income taxes levied by
the same taxation authority and the Company
intends to settle its current tax assets and liabilities
on a net basis.

Statement of Cash Flows and Cash and Cash
Equivalents

Statement of cash flows is prepared in
accordance with the indirect method prescribed
in the relevant IND AS. For the purpose of
presentation in the statement of cash flows, cash
and cash equivalents includes cash on hand,
cheques and drafts on hand, deposits held with
Banks, other short-term, highly liquid investments
with original maturities of three months or less
that are readily convertible to known amounts
of cash and which are subject to an insignificant
risk of changes in value, and book overdrafts.
However, Book overdrafts are to be shown within
borrowings in current liabilities in the balance
sheet for the purpose of presentation.

2.21 Current versus non-current classification

The Company presents assets and liabilities in the

Balance Sheet based on current /non-current

classification.

a) An asset is current when it is:

- Expected to be realized or intended to be
sold or consumed in the normal operating
cycle,

- Held primarily for the purpose of trading,

- Expected to be realized within twelve
months after the reporting period, or

All other assets are classified as non-current.

b) A liability is current when:

- It is expected to be settled in the normal
operating cycle,

- It is held primarily for the purpose of
trading,

- It is due to be settled within twelve months
after the reporting period, or

- There is no unconditional right to defer
the settlement of the liability for at least
twelve months after the reporting period.

All other liabilities are classified as non¬
current.

c) Deferred tax assets and liabilities are classified
as non-current assets and liabilities.

d) The operating cycle is the time between the
acquisition of assets for processing and their
realization in cash and cash equivalents.

Compliance with number of layers of companies: The Company has complied with the number of layers
prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers)
Rules, 2017.

The Company holds the shares in physical form. As per Rule 9B of the Companies (Prospectus and Allotment
of Securities) Rules, 2014, any transfer of these securities will require prior dematerialisation.

The company uses a practical expedient for computing the Expected Credit Loss allowance for trade
receivables based on a provision matrix. The provision matrix takes into account the historical credit loss
experience and adjusted for forward looking information. The ECL allowance is based on ageing days
receivable are due from the completion of project and the rates are as per the provision matrix.

The ageing of receivables has been determined from the respective invoice dates. Outstanding balances
reflect the application of receipts against the earliest invoices first, accordingly the most recent invoices
remain as the current outstanding balances. invoices first, accordingly the most recent invoices remain as
the current outstanding balances.

Rights, preferences and restrictions attaching to each class of shares including restrictions on the
distribution of dividends and the repayment of capital

The company has one class of equity shares having a par value of W 2 per share. 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 ensuing Annual General Meeting, except in case of interim dividend. 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.

Details of Subdivision of shares

Shareholders of the Company through its extra ordinary meeting held on December 2, 2024 vide ordinary
resolution approved subdivision of the nominal value of equity shares of the company form the existing
nominal value of W 10/- each to the nominal value of W 2/- each. Post subdivision of nominal value, authorised
share capital of the Company changed from W 75,000,000 equity shares of W 10/- each to W 375,000,000
equity shares of W 2/-each.

Details of issue of bonus, buy back, cancellation and issue of shares for other than cash consideration in
last 5 Years

The Board of Directors, in its meeting held on November 29, 2024, pursuant to Section 63 of the Companies
Act, 2013, approved the issuance of bonus shares in the ratio of 25:1 (25 fully paid-up equity shares for
every 1 equity share held), subject to shareholder approval. The members approved this proposal through
a special resolution at the Extraordinary General Meeting (EGM) held on December 2, 2024. The record
date for determining eligible shareholders was December 6, 2024, and on the same day, the Board allotted
162,498,750 bonus shares, increasing the issued share capital from W12,999,900 to W337,997,400.

Details of Issue of Shares

The Company has completed its pre initial public offer (Pre-IPO) of fresh issue of 6,535,947 equity shares of
face value of '' 2 each at an issue price of '' 153 per share.

The Company has completed its initial public offer (IPO) of 30,343,790 equity shares of face value of '' 2
each at an issue price of '' 153 per share. The equity shares of the Company were listed on National Stock
Exchange of India Limited (NSE) and BSE Limited (BSE) on September 26, 2025. The issue comprised of a
fresh issue of 26,143,790 equity shares aggregating to, 4,000.00 millions and offer for sale of 4,200,000 equity
shares by selling shareholders aggregating to, 642.60 millions.

Terms and conditions of transactions with related parties;

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash.

The Company has not recorded any impairment of receivables relating to amounts owed by related parties.
This assessment is undertaken each financial year through examining the financial position of the related
party and the market in which the related party operates, receivables or payables for the year ended
March 31, 2026 : ? Nil, March 31, 2025 : ? Nil.

34 CAPITAL COMMITMENTS

There are no capital commitments as at March 31, 2026.

35 TITLE DEEDS OF IMMOVABLE PROPERTY NOT HELD IN NAME OF THE COMPANY

There are no immovable property not held in name of the company.

36 SEGMENTAL REPORTING

According to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker
(CODM) approach for about allocating resources to the segment and assessing its performance. The Board
of Directors which are identified as a CODM, consist of managing directors, executive directors and
independent directors. The Board of directors of Company assesses the financial performance and position
of the group and makes strategic decisions.

The business activity of the Company falls within one broad business segment viz. “EPC of Solar Energy
Powered Pumps and Other related products” and all of the sale of the product / services is within India.
There are no separate reportable segments under Ind AS 108 “Operating Segments” notified under the
Companies (Indian Accounting Standard) Rules, 2015. Hence, the disclosure requirement of Ind AS 108 of
‘Segment Reporting’ is not considered applicable.

37 DISCLOSURES REQUIRED UNDER THE MICRO, SMALL & MEDIUM DEVELOPMENT ACT, 2006

The information as required to be disclosed under the Micro, Small and Medium Enterprises Development
Act, 2006 has been determined to the extent such parties have been identified on the basis of information
available with the Company. The amount of principal and interest outstanding during the year is given below

38 REVALUATION OF PROPERTY, PLANT AND EQUIPMENTS

Company has not revalued its Property, Plant and Equipment, and other assets of the company. So the
details as required to be provided are not applicable to the company.

39 LOANS AND ADVANCES GRANTED TO PROMOTERS, DIRECTORS AND KMP

The Company has not granted any loans and advances to promoters, directors and key managerial persons.

40 RELATIONSHIP WITH STRUCK OFF COMPANIES

The Company does not have any transactions with struck off companies.

41 DETAILS OF BENAMI PROPERTIES HELD IN NAME OF COMPANY

Company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and the rules made thereunder.

42 DISCLOSURE IN CASE OF WILFUL DEFAULTER

The Company is not declared as willful defaulter by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful
defaulters issued by the Reserve Bank of India.

43 DISCLOSURE IN CASE OF TRADING AND INVESTMENT IN CRYPTO OR VIRTUAL CURRENCY

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

44 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

Company have registered and satisfied all the charges as required under the Act with Registrar of Companies.

The sensitivity analysis have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
change in assumptions would occur in isolation of one another as some of the assumptions may be
correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation
has been calculated using the projected unit credit method at the end of the reporting period, which is the
same method as applied in calculating the defined benefit obligation as recognized in the balance sheet.
There is no change in the methods and assumptions used in preparing the sensitivity analysis from previous
year.

Qualitative Disclosures

Para 139 (a) characteristics of defined benefit plan

The entity has a defined benefit gratuity plan in India (unfunded). The entity’s defined benefit gratuity plan
is a final salary plan for employees.

Gratuity is paid from entity as and when it becomes due and is paid as per entity scheme for Gratuity.
Para 139 (b) Risks associated with defined benefit plan

Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary of the members more than assumed level will
increase the plan’s liability.

Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value
of the liability requiring higher provision.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Entity has to
manage pay-out based on pay as you go basis from own funds.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age
only, plan does not have any longevity risk.

Para 139 (c) : Characteristics of defined benefit plans During the year, there were no plan amendments,
curtailments and settlements.

Para 147 (a) : Gratuity plan is unfunded.

Actuarial Gains/ Losses are accounted for immediately in the Other Comprehensive Income. Salary escalation
5 attrition rate are considered as advised by the entity; they appear to be in line with the industry practice
considering promotion and demand 5 supply of the employees.

Average expected future working life of employees represents Estimated Term of Benefit Obligation.

46 COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

Company is not an investment Company and has not made any investment layers of investment company.

47 DECLARATION OF UNDISCLOSED INCOME IN TAX ASSESSMENTS

The Company does not have any transactions that are not recorded in the books of accounts that have
been surrendered or disclosed as income during the year ended March 31, 2026, March 31, 2025 in the tax
assessments under the Income Tax Act, 1961.

48 CORPORATE SOCIAL RESPONSIBILITY (CSR)

As per Section 135 of the Companies Act, 2013, expenditure in respect of Corporate Social Responsibility is
applicable to the Company for the year ended on 31 March, 2026.

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are a) recognized and measured at fair value and b) measured at amortized cost and for
which fair values are disclosed in the Financial Statements. To provide an indication about the reliability of
the inputs used in determining fair value, the Company has classified its financial instruments into the three
levels prescribed in the Indian Accounting Standard.

A CAPITAL MANAGEMENT

For the purpose of Company’s Capital Management, capital includes Issued Equity Capital, Securities
Premium, and all other Equity Reserves attributable to the Equity Holders of the Company. The primary
objective of the Company’s Capital Management is to maximize the Share Holder Value.

The Company manages its capital structure and makes adjustments in the light of changes in economic
conditions and requirements of the financial covenants and to continue as a going concern. The Company
monitors using a gearing ratio which is net debts divided by total equity.

The Company includes within net debt, interest bearing loans and borrowings, less cash and short term
deposit.

‘During the year, the Company realised significant trade receivables, resulting in higher cash balances. Accordingly, the
Company is in a net cash position as at the reporting date. As a result, the gearing ratio has become negative during
the current year. The change in capital structure is primarily attributable to timing of cash flows and does not indicate
any structural change in the company’s financing strategy

B FINANCIAL RISK MANAGEMENT

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 operations of the Company. The principal
financial assets include trade and other receivables, cash and bank deposits.

The Company has assessed market risk, credit risk and liquidity risk to its financial liabilities.

i. Market Risk

Market Risk is the risk of loss of future earnings, fair values or cash flows that may result from a
change in the price of a financial instrument, as a result of interest rates and other price risks.
Financial instruments affected by market risks, primarily include loans and payables.

Interest Rate Risks

The Company borrows funds in Indian Rupees to meet both the long term and short term funding
requirements. Interest rate is fixed for the tenor of the Long term loans availed by the Company.
Interest on Short term borrowings is subject to floating interest rate and are repriced regularly.

The sensitivity analysis detailed below have been determined based on the exposure to variable interest
rates on the average outstanding amounts due to bankers over a year.

If the interest rates had been 1% higher / lower and all other variables held constant, the company’s
profit for the year ended 31^st March, 2026 would have been decreased/increased by W 14.06 million, W
4.70 million for 31^st March, 2025.

ii. Credit Risk

Credit Risk is the risk that a counterparty will default on its contractual obligations resulting in a
financial loss to the Company. It arises from credit exposure to customers and Balances with Banks.

The Company holds cash and cash equivalents with banks which are having highest safety rankings
and hence has a low credit risk.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. The demographics of the customer, including the default risk of the industry and country
in which the customer operates, also has an influence on credit risk assessment. The Company ’s
receivables can be classified in to two categories, one is from the customers/dealers in the market and
second one is from the Government of India/State. As far as receivables from the Government are
concerned, credit risk is Nil. Credit risk is managed through credit approvals, establishing credit limits
and continuously monitoring the creditworthiness of customers to which the Company grants credit
terms in the normal course of business. The outstanding trade receivables due for a period exceeding
180 days as at the period ended 31^st March 2026 is 1.43%, 31^st March 2025 is 11.03%, of the total trade
receivables. The Company uses Expected Credit Loss (ECL) Model to assess the impairment loss or gain.

iii. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset.

The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve
borrowings facilities by continuously monitoring forecasts and actual cash flows.

All payments are made along due dates and requests for early payments are entertained after due
approval and availing early payment discounts. The Company has a system of forecasting rolling one
month cash inflow and outflow and all liquidity requirements are planned.

iv. Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date.
The amounts are gross and undiscounted and include estimated interest payments.

55 STATEMENT OF UTILIZATION OF IPO PROCEEDS

The Company has completed its initial public offer (IPO) of 30,343,790 equity shares of face value of '' 2 each
at an issue price of '' 153 per share.

The equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and
BSE Limited (BSE) on September 26, 2025. The issue comprised of a fresh issue of 26,143,790 equity shares
aggregating to, 4,000.00 millions and offer for sale of 4,200,000 equity shares by selling shareholders
aggregating to, 642.60 millions.

60 UTILISATION OF BORROWED FUNDS

a. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium
or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities
(Intermediaries). So the details as required to be provided are not applicable to the company.

b The Company has not received any funds from any person(s) or entity(ies), including foreign entities
(funding party) with the understanding (whether recorded in writing or otherwise). So the details as
required to be provided are not applicable to the company.

61 The Company have not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall
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 provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.

62 MATERIAL REGROUPING

Appropriate regroupings have been made in the Balance Sheet, Statement of Profit 5 Loss and Statement
of Cashflows, wherever required, by reclassification of the corresponding items of income, expenses, assets,
liabilities and cashflows, in order to bring them in line with the accounting policies and classification as per
Ind AS financial information of the Company for the years ended 31 March 2026, 31 March 2025 prepared
in accordance with Schedule III of Companies Act, 2013, requirements of Ind AS 1 and other applicable Ind
AS principles.

2.14 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when there is a present legal or constructive obligation as a result of a past event and it is probable (i.e. more likely than not)

that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount

of the obligation. Such provisions are determined based on management estimate of the amount required to settle the obligation at the balance sheet

date. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a standalone asset only when the

reimbursement is virtually certain.

if the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is recognized as a finance costs.

Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous contract is considered to exist when a

contract under which the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received from it.

Contingent liabilities are disclosed on the basis of judgment of management/independent experts. These are reviewed at each balance sheet date and
are adjusted to reflect the current management estimate.

Contingent Assets are not recognized, however, disclosed in financial statement when inflow of economic benefits is probable.

2.13 Revenue Recognition and Other Income

Revenue is measured at amount of transaction price (net of variable consideration) received or receivable when control of the goods is transferred to
the customer and there are no unfulfilled performance obligations as per the contract with the customers. The Company recognizes revenue when
it satisfies a performance obligation in accordance with the provisions of contract with the customer. This is achieved when;

a) effective control of goods along with significant risks and rewards of ownership has been transferred to customer;

b) the amount of revenue can be measured reliable;

c) it is probable that the economic benefits associated with the transaction will flow to the Company; and

d) the costs incurred or to be incurred in respect of the transaction can be measured reliable

Revenue represents net value of goods and services provided to customers after deducting for certain incentives including, but not limited to
discounts, volume rebates, etc. For incentives offered to customers, the Company makes estimates related customer performance and sales volume
to determine the total amounts earned and to be recorded as deductions. The estimate is made in such a manner, which ensures that it is highly

probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The actual amounts may differ from these

estimates and are accounted for prospectively.

Revenue are net of Goods and Service Tax. No element of significant financing is deemed present as the sales are made with a credit ferny

which is consistent with market practice.

Companv generate revenue from sale of pumps and related support services. Revenue from services is recognized in the accounting period in which
the services are rendered.

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Companv'' and the amount of income
can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net

carrying amount on initial recognition.

2.16 Depreciation and Amortization

Depreciation of PPT commences when the assets are ready for their intended use. Depreciation on PPP is recognized so as to write off the cost of assets
(other than freehold land) less their residual values over their useful lives, using the straight-line method. PPP. which are added / disposed off during

the year, depreciation is provided on pro-rata basis from / up to the date on which the asset is available for use / disposal. The estimated useful lives,

residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on

a prospective basis. Component of an item of PPP with the cost that is significant in relation to total cost of that item is depredated Separately

if it''s useful life differs from other components of the assets.

Depreciation on PPP is provided over the useful life of assets on written down value as specified in the Schedule II of the Companies Act 2013 to the
extent of 95 except the following;

Assets acquired on lease arrangement are depreciated over the respective useful life applicable to asset or written off over lease period, whichever is
lower.

2.17 Borrowing and Borrowing costs

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any

difference between the proceeds (net of transaction costs) and the redemption amount is recognized in Statement of profit and loss over the period
of the borrowings using the effective interest method. Borrowings are derecognized from the balance sheet when the obligation specified in the

contract is discharged, cancelled or expired. The difference between the carrying amount of a borrowings that has been extinguished or transferred

to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in Statement of profit

and loss as other gains/(losses). 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.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get

ready for its intended use are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes

exchange differences to the extent regarded as an adjustment to the borrowing costs.

Borrowing costs which are directly attributable to acquisition / construction of qualifying assets that necessarily takes a substantia] period of time to

get ready for its intended use are capitalized as a part of cost pertaining to those assets. All other borrowing costs are recognized as expense in the
period in which they are incurred.

2.18 Employee Benefits
Short-term Employees Benefits

All employee benefits payable wholly within twelve months of rendering services are classified as short term employee benefits. Benefits such as
salaries, wages, short-term compensated absences, performance incentives etc., are recognized during the period in which the employee renders
related services and are measured at undiscounted amount expected to be paid when the liabilities are settled.

Post-employment benefits

The Company provides the following post-employment benefits:

i) Defined benefit plans such as gratuity and

ii) Defined Contribution plans such as provident fund & employee State Insurance Scheme
Defined benefits plans

The cost of providing defined benefit plans such as gratuity is determined on the basis of present value of defined benefits obligation which is
computed using the projected unit credit method with independent actuarial valuation made at the end of each annual reporting period, which
recognizes each period of service as given rise to additional unit of employees benefit entitlement and measuring each unit separately to build
final obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense in the Statement of Profit and Toss except those included in cost of assets as permitted.

Re-measurements comprising of actuarial gaiiys^nT''-''To^s^s arising from experience adjustments and change in actuarial assim\ptiong*,«4ha«₄effect of

change in assets ceiling (if applicable) and/Tlie^ fetfiifdan asset (excluding net interest as defined above) are recognized iiwffE^Q<^i3pS^nsive

income (OC1) except those included in ^^^iX^^ssedS''^/^^''e^nitted in the period in which they occur, Re-measurements are

Statement of Profit and Loss in subsequent per/wdsT / \ ''" ..Y\ / A.

d^,s*»rajoi n i mi

Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements) is recognized in the
Statement of Profit and Loss except those included in cost of assets as permitted in the period in which they occur.

Defined Contribution Plans

Pavments to defined contribution retirement benefit plans, viz., Provident Lund for eligible employees are recognized as an expense when employees
have rendered the service entitling them to the contribution.

2.19 Earnings per Share:

Basic earnings per share is calculated by dividing the profit from continuing operations and total profit, both attributable to equity shareholders of

the Company by the weighted average number of equity shares outstanding during the year.

2.20 Income Taxes

Income tax expense represents the sum of tax currently payable and deferred tax. Lax is recognized in the Statement of Profit and Loss, except to the
extent that it relates to items recognized directly in equity or in other comprehensive income.

Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax
law''s used to compute the amount are those that are enacted or substantively enacted in India, at the reporting date.

Current tax relating to items recognized outside statement of profit or loss is recognized outside statement of profit or loss (either in other

comprehensive income or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to

interpretation and establishes provisions where appropriate.

Current tax assets is offset against current tax liabilities if, and only if, a legal!)’ enforceable right exists to set off the recognized amounts and there is

an intention either to settle on a net basis, or to realize the asset and settle the liability simultaneously

Deferred Lax

Deferred tax is recognized on temporal'')'' differences between the carrying amounts of assets and liabilities in the balance sheet and the corresponding

tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences.

Deferred tax assets are generally recognized for all deductible temporary differences, unabsorbed losses and unabsorbed depreciation to the extent

that it is probable that future taxable profits will be available against which those deductible temporal'')'' differences, unabsorbed losses and

unabsorbed depreciation can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from initial
recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow'' all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in w-hich the liability is settled or the asset
realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred

tax liabilities and assets reflects the tax consequences that would follow'' from the manner in which the Company expects, at the reporting dale, to

recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when
they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

Statement of Cash Flow’s and Cash and Cash Equivalents

Statement of cash flow''s is prepared in accordance with the indirect method prescribed in the relevant IND AS. For the purpose of presentation in the
statement of cash flow''s, cash and cash equivalents includes cash on hand, cheques and drafts on hand, deposits held with Banks, other short-term,

highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value, and book overdrafts. How''ever, Book overdrafts are to be shown within borrowings in current liabilities

in the balance sheet for the purpose of presentation.

2.21 Current versus non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current /non-current classification.

a) An asset is current when it is:

- Expected to be realized or intended to be sold or consumed in the normal operating cycle,

- Held primarily for the purpose of trading,

•• Expected to be realized within twelve months after the reporting period, or

All other assets are classified as non-current.

b) A liability is current when:

- It is expected to be settled in the normal operating cycle,

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

c) Deferred tax assets and liabilities are classified as non-current assets and liabilities.

d) The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents.

2.22 First time adoption of Ind AS - mandatory exceptions/optional exemptions
Overall principle

The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2023 (the transition date) by recognizing all assets and liabilities

whose recognition is required by Ind AS, not recognizing items of assets or liabilities w''hich are not permitted by Ind AS, by reclassifying certain
items from previous GAAP to Ind AS as requixyd under the Ind AS, and applying Ind AS in the measurement of recognized assets and liabilities.

However, this principle is subject to exceptions and certain optional exemptions availed by the Company as detailed below''.

Derecognition of financial assets and fina/m$^fTilities''^\, 3^ y.

The Company has applied the de-re/''Q^inion requireWfits\ of financial assets and financial liabilities prospectively for tra/fs^Ntof^^ or

after April!, 2023 (the transition date). II ^ ° ^ ^^220Wj jj sill \*^j\

Classification of debt instruments

The Company has determined the classification of debt instruments in terms of whether they meet the amortized cost criteria or the fair value through
other comprehensive income (FVTOCI) criteria based on the facts and circumstances that existed as of the transition date.

Impairment of financial assets

The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable

and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were
initially recognized in order to compare it with the credit risk at the transition date. Further, the Companv has not undertaken an exhaustive search
for information when determining, at the date of transition to Ind AS whether there have been significant increases in credit risk since initial

recognition, as permitted by Ind AS 101.

Deemed cost for PPE, CWIP and Intangible assets

The Company has elected to continue with the carrying value of its PPE, CWIP and Intangible assets recognized as of 1 April 2023 (Transition date)

measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

A) Right of use assets and lease liability

Under previous GAAP, the Company had recognized lease payments as indirect expenses under the profit and loss account. Under Ind AS the
Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is subsequently depreciated using
the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
The lease liability is measured at amortized cost using the effective interest method.

B) Reclassification

Appropriate re-classification have been made, wherever required, bv reclassification of the corresponding items of income, expenses, assets, liabilities
and cash flow''s, in order to bring them in line with the accounting policies and classification as per the Ind AS financial information of the Company
prepared in accordance with Schedule III of Companies Act, 2013, requirements of Ind AS 1 and other applicable Ind AS principles and the
requirements of the Securities and Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations, 2018, as amended.

C) Other financial assets

Under previous GAAP, interest free lease security deposits are recorded at their transaction value. Under IndAS, all financial assets are required to
be recognized at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS 109. Difference between the fair value and
transaction value of the security deposit has been recognized as right-of-use asset as per Ind AS T16.

D) Borrowings

Under previous GAAP, transaction costs that are directly attributable to borrowings was charged to profit and loss. Under Ind AS, Borrowings are

initiallv measured at fair value. On initial recognition transaction costs that are directly attributable to the borrowings are deducted from the fair value
of the borrowings. Borrowings are measured at amortized cost at the end of subsequent accounting periods. Amortized cost is calculated by taking
into account fees or costs that are an integral part of the PIR. Under previous GAAP, borrowings from related parties was recognized at transaction price.
Under Ind AS, borrowings from related parties are initially measured at fair value. Difference between the proceeds (transaction price) and the fair

value at initial recognition is recognized as deferred liability. The deferred liability is subsequently credited in the Statement of Profit and Loss

(Interest income) over tine loan period.

E) Deferred Tax

Under previous GAAP, deferred tax accounting was done using the income statement approach, which focuses on differences between taxable profits

and accounting profits for the period. Under Ind AS, accounting of deferred taxes is done using the Balance Sheet approach, which focuses on

temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.

Based on this approach, additional deferred tax has been recognized by the Company on all IndAS adjustments as some would
create temporary difference between books and tax accounts.

ii. Credit Risk

Credit Risk is the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. It arises from credit
exposure to customers and Balances with Banks.

The Company holds cash and cash equivalents with banks which are having highest safety rankings and hence has a low credit risk.

The Company''s exposure to credit risk is influenced mainly bv the individual characteristics of each customer. The demographics of the customer,
including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Company ''s
receivables can be classified in to two categories, one is from the customers/dealers in the market and second one is from the Government of
India/State. As far as receivables from the Government are concerned, credit risk is Nil. Credit risk is managed through credit approvals, establishing

credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of
business. The outstanding trade receivables due for a period exceeding 180 davs as at the period ended 31st March 2025 is 11.13%, 31st March 2024 is 2.14%,
of the total trade receivables. The Company uses Expected Credit Loss (ECL) Model to assess the impairment loss or gain.

iii. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled
by delivering cash or another financial asset.

The Company manages liquidity risk by maintaining adequate surplus, banking facilities and reserve borrowings facilities by continuously monitoring
forecasts and actual cash flows.

All payments are made along due dates and requests for early payments are entertained after due approval and availing early payment discounts.
The Company has a system of forecasting rolling one month cash inflow and outflow and all liquidity requirements are planned.

iv. Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted and
include estimated interest payments.

62 UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM:

a. The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds)

to any other person(s) or entity(ies), including foreign entities (Intermediaries). So the details as required to be provided are not applicable to the

company.

b The Company has not received any funds from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether

recorded in writing or otherwise). So the details as required to be provided are not applicable to the company.

63 The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether

recorded in writing or otherwise) that the Company shall 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 provide an}’ guarantee, security or the like on behalf of the Ultimate Beneficiaries.

64 M AT E RIA L R E G R O U PIN G

Appropriate regroupings have been made in the Balance Sheet, Statement of Profit & Loss and Statement of Cashflows,

wherever required, by reclassification of the corresponding items of income, expenses, assets, liabilities and cashflows, in order to bring them in line with

the accounting policies and classification as per Ind AS financial information of the Company for the years ended 31 March 2025, 31 March 2024 and

1 April 2023 prepared in accordance with Schedule III of Companies Act, 2013, requirements of Ind AS 1 and other applicable Ind AS principles.

For Bharat j. Rughani & Co For and on Behalf of the Board of Directors of GK Energy Limited

Chartered Accountants _ (Formerly GK Energy Private Limited,

Firm Registration No: 101220W GK Energy Marketers Private Limited)

CA Akash Bharat Rughani ’ GCy Gopal/KabraV Mehul Ajit Shah

Partner Director ) Director r/V

Membership No. 139664 " DIN: 02M3T58 DIN: 03508348 XAA-----

Date:-April 17,2025 Date :-ApriI 17, 2025 Date:-April 17,2025 (if?/

Place:-Pune Place:-Pune ^ Place:-Pune l^U''( 1 —11

u&jui-isisseM-ftwuuwv’Ssfc. v Gy J^m)

SumtS^Mffalkishor Malu Jeevan Santoshkumar Innani

Chief Financial Officer Company Secretary and

Date : - April 17, 2025 Compliance Officer

Place:-Pune Date April 17,2025

PlacePune