Notes to Accounts of Macpower CNC Machines Ltd.

Mar 31, 2025

2.15 Pro vision, Contingent Liabilities and Contingent Assets:

a Provision is recognised in the accounts when there is a present obliga tion as a result of
past event(s) and it is probable that an outflow of resources will be required to settle the
obligation and reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on the best estimate required to settle the
obligation at the reporting date. These estimates reviewed at each reporting date and
adjusted to reflect the current best estimate.

b Contingent liabilities are disclosed un less the possibility of outflow of resources is remote.
Contingent assets are not recognised in the financial statements.

2.16 Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing
and financing activities. Cash flow from operating activities is reported using indirect
method, adjusting the profit before tax excluding exceptional items for the effects of:

(i) changes during the period in inventories and operating receivables and payables,
transactions of a non-cash nature;

(ii) n on-cash ite ms such as de pre ciation, pro visions, unrealised foreign cu rrenc y gains and
losses; and

(iii) all other items for which the cash effects are investing or financing cash flows.

Disclosure regarding Cash Credit Limit with Axis Bank Limited

Axis Bank Ltd. CC A/c. 914030041250678, is primarily secured by hypothecation of current assets both present
and future of the company.

Further mortgage of industrial property situated at plot no. 2234, GIDC lodhika Industrial Estate, Kalawad road,
Village : Metoda Taluka: Lodhia, Rajkot

The facility is futher guaranteed by the personal gurantee of Mr. Rupeshbhai Mehta
Repayment Terms: Repayable on Demand.

34 EMPLOYEE BENEFITS
A. Gratuity

The Company has a defined benefit gratuity plan (funded) and is governed by the Payment of
Gratuity Act, 1972. Under the Act, which provides a lump sum payment to vested employees at
retirement, death, incapacitation or termination of employment, of an amount based on the
respective employee''s salary and the tenure of employment. Vesting occurs on completion of 5
continuous year of services as per Indian Law. However, no vesting condition applies in case of
death. The scheme is funded with Life Insurance Corporation of India (LIC) in form of a qualifying
insurance policy for future payment of gratuity to the employees.

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.

The sensitivity analysis presented below may not be representative of the actual change in the
projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation
of one another as some of the assumptions may be correla te d.

Significant actuarial assumptions for the determination of the defined benefit obligation are
discount rate , expected salary increase and withdrawal rate.

Liabilities are very less sensitive due to change in mortality assumptions. Hence,sensitivities due to
change in mortality are ignored.

Furthermore, in presenting the below sensitivity analysis, the present value of the projected benefit
obligation has been c alculated using the projected unit credit method at the end of the reporting
period, which is the same method as applied in calculating the projected benefit obligation as
recognised in the balance sheet. There was no change in the methods and assumptions used in
preparing the sensitivity analysis from prior years.

B. Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The company
has no obligation, other than the contribution payable to the provident fund. The company
recognizes contribution payable to the provident fund scheme as an expenditure, when an
employee renders the related service. If the contribution payable to the scheme for service
received before the balance sheet date exceeds the contribution already paid, the deficit
payable to the scheme is recognized as a liability after deducting the contribution already paid. If
the contribution already paid exceeds the contribution due for services received before the
balance sheet date, then excess is recognized as an asset to the extent that the pre payment will
lead to, for example, a reduction in future payment or a cash refund.

35 DISCLOSURE OF TRANSACTION WITH RELATED PARTIES AS REQUIRED BY THE INDIAN ACCOUNTING STANDARD-
24 (Cont.)

All Related Party Transactions entered during the year were in ordinary course of the business and on arm''s
length basis and amount showing inclusive of ta x. Outstandi ng balances at the year-end are unsecured
and settlement occurs in cash.

There have been no guarantees provided or received for any related party receivables or payables. For the
year ended 31st M arch, 2025, the Company has not record ed any impairment of rec eivables 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.

36 FINANCIAL RISK MANAGEMENT
A Financial Risk Factors

The Company''s principal financial liabilities comprise borrowings, leases, trade and other payables. The
main purpose of these financial liabilities is to manage finances for the Company''s operations. The
Company has trade and other receivables, cash and short-term deposits that arise directly from its
operations. The C ompany''s activities expose it to a variety of financial risks detaile d below:-

a Market Risk

Market risk is th e ris k that the fair value or future cash flows of a financial instrument will fluctua te because of
changes in m arket p rices. Market prices comprise three types of risk: currenc y rat e ris k, interest ra te risk and
other pri ce ris ks, such a s c ommodity risk. Foreign currency risk is the risk that the fair value or futu re cash flows
of a fin ancial in strument will fluctuate because of changes in foreign exchang e rates. Interest ra te risk is the
risk that the fair value orfuture cash flows of a financial instrument will fluctuate because of changes in
market interest rates. This is based on the financial assets and financial liabilities held as at March 31, 2025
and March 31,2024.

The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post¬
employment benefit obli gations provisions and on the non-fin ancial as sets and liabilities. The se nsitivity of
the relevant Statement of Profit and Loss item is the effect ofthe assumed changes in the respective market
risks. The Company''s activities expose it to a variety of financial risks, including the effects of changes in
foreign currency exchange rates and interest rates.

Foreign Exchange Risk and Sensitivity

The Company transacts business primarily in USD and Euro. The Company has foreign currency trade
payables and receivables and is therefore, exposed to foreign exchange risk.

b Commodity Price Risk and Sensitivity

The Company is exposed to the movement in price of key raw materials in domestic and international
markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw
materials used in operations.

c Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss.

Credit risk arises from cash and cash equivalents, credit exposures from custome rs including outstanding
receivables and other financial instruments.

Trade receivables a nd contract assets

The Company extends credit to customers in normal course of business. The Company considers factors
such as credit track record in the market and past dealings for extension of credit to customers. The
Company monitors the payment track record of the customers. Outstanding customer receivables are
regularly monitored. The Company evaluates the concentration o f risk with respect to trade receivab les as
low, as its customers are located in several jurisdictions and industries and operate in largely independent
markets. The Company has obtained advances and security deposits from its customers & distributors, which
mitigate the credit risk to an extent.

Provision for Expected Credit Loss

The Company extends credit to customers as per the internal credit policy. Any deviation are approved by
appropriate officials, after due consideration of the customers credentials and financial capacity, trade
practices and prevailing business and economic conditions. The Company''s historical experience of
collecting receivables and the level of defau l t indicate t hat c re dit risk is low and gen erally unif orm across
markets; consequentl y, trade receivables are considered to be a sing l e class of financial assets. All overdue
customer balances are evaluated taking in to account the age of the dues, specific c redi t circumstances,
the track record of the customers etc. Loss allowances and impairment is recognised as per the Company
policy.

The Company uses Lifetime expected credit losses (simplified approach) for doubtful trade receivables

36 FINANCIAL RISK MANAGEMENT (Cont.)

Others

All of the entity''s debt investments (securities, loan to related parties and others and security deposits) at
amortised cost are considered to have low credit risk, when they have a low risk of default and the
issuer/holder has a strong capacity to meet its contractual cash flow obligations in the near term. For cash
and cash equivale nts, the Company consid ers factors such as trac k record, size of the institution, market
reputation and service standards to select the banks with which balances and deposits are maintained. The
Company does not maintain sig nificant cas h balances oth er than those required for its day to day
operations. The company invests in liquid schemes of mutual fund which have a very short maturity. These
schemes are readily convertible and have insignifcant changes in value and are he ld as means for settling
liabilities or for working capital limits from banks. The loss allowance recognised during the period was
therefore limited upto 12 months expected losses.

d Liq uidity Risk

Liquidity risk is th e risk that the Company may not be able to meet its present an d future ca sh and collateral
obligations without incurring unacceptable losses. The Company''s overall risk management programme
focuses on the unpredictability of f inancial markets and seeks to minimise potential adverse effects on the
Company''s financial p erformance. The Company does not acquire o r issue derivativ e financ i al instruments
for trading or speculative purposes. Risk management is carried ou t under policies approved by the board
of directors. It identifies, evaluates and hedges financial risks in close co-operation with the Company''s
operating units. The board provides principles for overall risk management, as well as policies covering
specific areas, such as foreign exchange risk, interest rate risk, credit risk and liquidity risk.

The Company''s objective is to maintain optimum levels of liquidity to meet its cash requirements at all times.
The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The
Company monitors rolling forecasts of its liquidity requirem en ts to ens ure it has sufficient cash to meet
operational need s while maintaining suf ficient headroom on its u ndrawn committed borrowing faciliti es at
all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of
its borrowing facilities.

The table be low provides undiscounted cash flows towards non-derivative financial liabi l ities and net-settled
derivative financial liabilities into relevant maturity based on the remaining period at the balance sheet to
the contractual maturity date.

e Competition Risk

Th e Company faces competition from local and foreign competitors. Nevertheless, it believes that it has
competitive advantage in terms of high quality products and by continuously upgrading its expertise and
range of products to meet the needs of its customers.

f Capital Risk Management

The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the
Company m ay adjust the dividend payment to shareholders, return c apital to shareholders or issue new
shares. The primary objective of the Company''s capital management is to maximize the shareholder value.
The Company''s primary objective when managing capital is to ensure that it maintains an efficient capital
structure and healthy capital ratio and safeguard the Company''s ability to continue as a going concern in
order to support its business and provide maximum returns for shareholders. The Company also proposes to
maintain an optimal capital structure to reduce the cost of capital. No changes were made in the
objectives, policies or p rocesses during t he year ended March 31,2025 and year ended March 31,2024. The
Company m onitors capital u sing gearing ratio, which is net debt divided by sum of capital and net de bt.

B Fair Value Heirarchy

Th e table below analysis financial instruments at fair value, by valuation method. The different levels have
been i dentified as follows:

Level 1: - Quoted prices in active markets for identified assets or liabilities.

Level 2: - Inputs other than quoted prices included with level 1 that are observable for the assets or liability,
other directly (i.e.as prices) or indirectly (i.e. derived from prices).

Level 3: - Inputs for the assets or lliabilities that are not based on observable market data (underrated
inputs).

Fair Value Measurement of Financial Liabilities

When the fa ir values of financial assets and financial liabiliti es recorded in the ba l ance sheet cannot be
measured based on quoted prices in active markets, t heir fair value is measured using valuati on techniques.
The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the
reported fair value of financial instruments.

38 Others (Cont.)

(iv No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sourc es or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign
entities (“Intermediaries") with the understanding, whethe r recorded in writing or otherwise, that the
Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
The Company has n ot re ceived any fund from any party(s) (Fundi ng Party) with the understanding that the
Comp any shall whether, directly or indirectly lend or inves t in other perso ns o r entities identified by or on
behalf of the Company (“Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of
the Ultimate Be neficiaries.

(v) There were no material changes and commitments affecting the financial position of the Company which
occurred between the end of the financial year to which this financial statement relates on the date of this
Integrated Annual Report.

(vi Ratios ha ve been annexed separately in the report

39 Exceptional Items

On 2n d Fe bruary 2025, a fire incident occurred due to short circuit in the Unit-2 godown premises located at
Metoda Gl DC near registered office of t he company. The fire was controlled within time and there were no
human injuries or casualties reported except some of company''s finished stock have been
affected/damaged due to this fire incident.

There is adequate in surance c overage under I ndustry All Risk Policy for stock of the company. Th e company
has lodged intimation of the incident t o the insurance company and the survey is currentl y undergoing.

The primary assessment of loss on book value of inventories is Rs.4,39,08,851 and has recognized insurance
claim receivable of Rs.3,62,38,654 to the extent of aforesaid losses. The aforesaid mentioned losses and
corresponding credit arising from the insurance claim receivable has been presented on a net basis
Rs.76,70,197 under exceptional items in the above result for the quarter and year ended March 31,2025.

40 Segment Information

The Company primarily operates in the CNC Turning Centers, Vertical Machine Centers(VMC), Horizontal
Machine Centers(H MC), Cylindrica l Grinder, Verticle Turrent Lathe(VTL), Turn Mill Ce nters, Drill Tap
Cente r(DTC), Twin Spindle T urning & VMC along with robotic automation solutio ns. The board of directors of
the Company, which has been identified as being the chief operating decision maker (CODM), evaluates
the Compa ny ''s performan ce, allocate resources based o n the analysis of the va rio us performance
indicators of the company as a single unit. Therefore, Segment Reporting is not applicable to the Company.

The geographical segment has been considered for disclosure as secondary segment.

Two secondary segments have been identified based on the geographical locations of customers i.e.
domestic and export. Information about geographical segments are as below.

Information about Major Customers are as below

Any of the company''s customer do not account for 10% or more revenue during the financial year ending
on 31.03.2025 and 31.03.2024

41 Goods and Service Tax

Expenses and assets a re recognised net of the amount of sales/ value added taxes/ goods and services tax
paid, except:

• When the tax in curred o n a purchase of assets or services is not recoverable from the taxation authority, in
which case, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the
expense item, as applicable; and

• When receivables and payables are stated with the amount of tax included. The net amount of tax
recoverable from, or p ayable to, t he t axation authority is included a s part of receivables or payab les in the
balance sheet.

42 Benami Transactions

There is no proceedings in itiated or pending agains t the co mpany for holdi ng any Ben ami Property under
the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and Rules made there under during the year.

43 Undisclosed Income

There is no tax assessment under The Income Tax Act, 1961 for non-disclosure or surrender of undisclosed
income during the year.

44 Crypto Currency

The company has not traded nor invested in the Virtual Currency - Crypto Currency during the year.

45 Events after the balance sheet date

Events after the Balance Sheet Date - The Board of directors have recommended dividend of Rs.1,50,06,240
i.e. Rs.1.5 Per S hare for the financial ye ar 2024-25, which is subjec t to the approv al of the sh areholders in the
ensuing annual gene ral meeting. These fi nancial stateme nts were app roved an d ado pted by the board of
directors o f the Company in their meetin g held on May 29, 2025 a nd are subject to shareholder approval at
the forthcoming Annual General Meeting of shareholders.

46 Au dit Trail

As per the proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account
using accounting software which has a feature of recording audi t tra il ( Ed it Log) facili ty is complied by the
company.

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Mar 31, 2024

Disclosure regarding Cash Credit Limit with Axis Bank Limited

Axis Bank Ltd. CC A/c. 914030041250678. is primarily secured by hypothecation of current assets both present and future of the company.

Further mortgage of industrial property situated at plot no. 2234, GIDC lodhika Industrie¹ Estate, Kalawad road. Village : Metoda Taluka: Lodhia. Rajkot

The facility is futher guaranteed by the personal gurantee of Mr. Rupeshbhai Mehta Repayment Terms: Repayable on Demand.

(d) Terms/Riqhts ottached to Equity

The company has only one class of equity shares having a per share value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

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

Sensitivity Analysis

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.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Liabilities are very less sensitive due to change in mortality assumptions. Hence.sensitivities due to change in mortality are ignored.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected 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 projected benefit obligation as recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

B. Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other than the contribution payable to the provident fund. The company recognizes contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre payment will lead to. for example, a reduction in future payment or a cash refund.

35 DISCLOSURE OF TRANSACTION WITH RELATED PARTIES AS REQUIRED BY THE INDIAN ACCOUNTING STANDARD-24 (Cont.)

AJI Related Party Transactions entered during the year were in ordinary course of the business and on arm''s length basis and amount showing inclusive of tax. Outstanding balances at the year-end are unsecured and settlement occurs in cash.

There have been no guarantees provided or received for any related party receivables or payobles. For the year ended 31st March. 2024. the Group has nol recorded any impairment of receivables relating lo 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.

36 FINANCIAL RISK MANAGEMENT_

A Financial Risk Factors

The Company''s principal financial liabilities comprise borrowings, leases, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company’s operations. The Company has trade and other receivables, cash and short-term deposits that arise directly from its operations. The Company’s activities expose it to a variety of financial risks detailed below:-

a Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as commodity risk. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value orfuture cash flows of a financial instrument will fluctuate because of changes in market interest rates. This is based on the financial assets and financial liabilities held as at March 31.2024 and March 31.2023.

The sensitivity analysis excludes the impact of movements in market variables on the carrying value of postemployment benefit obligations provisions and on the non-financial assets and liabilities. The sensitivity of the relevant Statement of Profit and Loss item is the effect otthe assumed changes in the respective market risks. The Company’s activities expose it to a variety ot financial risks, including the effects of changes in foreign currency exchange rates and interest rates.

Foreign Exchange Risk and Sensitivity

The Company transacts business primarily in USD and Euro. The Company has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk.

b Commodity Price Risk and Sensitivity

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations.

c Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

Credit Risk

Credit risk arises from cash and cash equivalents, credit exposures from customers including outstanding receivables and other financial instruments.

Ife.receiy a bjesandcontract assets

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low. as its customers are located in several jurisdictions and industries and operate in largely independent markets. The Company has obtained advances and security deposits from its customers & distributors, which mitigate the credit risk to an extent.

Provision for Expected Credit Loss

The Company extends credit to customers as per the internal credit policy. Any deviation are approved by appropriate officials, after due consideration of the customers credentials and financial capacity, trade practices and prevailing business and economic conditions. The Company''s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the customers etc. Loss allowances and impairment is recognised as per the Company policy.

The Company assigns the following internal credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class ofthe financial assets. The Company provides for expected creditloss based on the following:_

Others

A¹1 of the entity''s debt investments (securities, loan to related parties and others and security deposits) at amortised cost are considered to have low credit risk, when they have a low risk of default and the issuer/holder has a strong capacity to meet its contractual cash flow obligations in the near term. For cash and cash equivalents, the Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which balances and deposits are maintained. The Company does not maintain significant cash balances other than those required for its day to day operations. The company invests in liquid schemes of mutual fund which have a very short maturity. These schemes are readily convertible and have insignificant changes in value and are held as means for settling liabilities or for working capital limits from banks. The loss allowance recognised during the period was therefore limited upto 12 months expected losses.

d Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial performance. The Company does not acquire or issue derivative financial instruments for trading or speculative purposes. Risk management is carried out under policies approved by the board of directors. It identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and liquidity risk.

Liquidity Risk

The Company''s objective is to maintain optimum levels of liquidity to meet its cash requirements at all times. The current committed lines of credit are sufficient to meet its short lo medium term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of ifs borrowing facilities.

The table below provides undiscounted cash flows towards non-derivative financial liabilities and net-settled derivative financial liabilities into relevant maturity based on the remaining period at the balance sheet to the contractual maturity date.

e Competition Risk

The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage in terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of its customers.

f Capital Risk Management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company''s capital management is to maximize the shareholder value. The Company''s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratio and safeguard the Company''s ability to continue as a going concern in order to support its business and provide maximum returns tor shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. No changes were made in the objectives, policies or processes during the year ended March 31, 2024 and year ended March 31, 2023. The Company monitors capital using gearing ratio, which is net debt divided by sum ot capital and net debt.

For the purpose of the Company''s capital management, capital includes equity share capital and other equity as per the balance sheet. Net debt includes, lease liabilities and borrowings less cash and cash equivalents.

B Fair Value Heirarchy

The table below analysis financial instruments at fair value, by valuation method. The different levels have been identified as follows:

Level I: - Quoted prices in active markets for identified assets or liabilities.

Level 2: - Inputs other than quoted prices included with level 1 that are observable for the assets or liability, other directly (i.e.as prices) or indirectly (i.e. derived from prices).

Level 3: - Inputs for the assets or inabilities that are not based on observable market data (underrated inputs).

Fair Value Measurement of Financial Liabilities

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

37 Others (Cont.)

(iv) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vj There were no material changes and commitments affecting the financial position of the Company which occurred between the end of the financial year to which this financial statement relates on the date of this Integrated Annual Report.

38 Goods and Service Tax

Expenses and assets are recognised net of the amount of sales/ value added taxes/ goods and services tax paid, except:

• When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable; and

• When receivables and payables are stated with the amount of tax included. The net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

39 Benaml Transactions

There is no proceedings initiated or pending against the company for holding any Benami Property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and Rules made there under during the year.

40 Undisclosed Income

There is no tax assessment under The Income Tax Act, 1961 for non-disclosure or surrender of undisclosed income during the year.

41 Crypto Currency

The company has not traded nor invested in the Virtual Currency - Crypto Currency during the year.

42 Events after the balance sheet date

Events after the Bolonce Sheet Date - The Board of directors have recommended dividend for the financial year 2023-24. which is subject to the approval of the shareholders in the ensuing annual general meeting. These financial statements were approved and adopted by the board of directors of the Company in their meeting and are subject to shareholder approval at the forthcoming Annual General Meeting of shareholders.

43 Audit Trail

As per the proviso to rule 3(1} of the Companies (Accounts) Rules. 2014 for maintaining books of account using accounting software which has a feature of recording audit trail ( Edit Log) facility is complied by the company.

44 Regrouping

There has been change in the internal grouping of few balance sheet items which has caused changes in the values of those balance sheet items as shown on the face of balance sheet of the statutory report as compared with the result published. However the regrouping as done is not material.

1

In line with Circular No 04/2015 issued by Ministry of Corporate Affairs dated 10th March, 2015. loans given to employees as per the Company''s policy ore not considered for the purposes of disclosure under Section 186(4) of the

Companies Act. 2013.

There ore no loans or advances in the nature of loans granted to Promoters, Directors. KMPs and their related parties

(as defined under Companies Act, 2013). either severally or jointly with any other person, that are:

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Mar 31, 2023

Sensitivity Analysis

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.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Liabilities are very less sensitive due to change in mortality assumptions. Hence,sensitivities due to change in mortality are ignored.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected 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 projected benefit obligation as recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

B. Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other than the contribution payable to the provident fund. The company recognizes contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre payment will lead to, for example, a reduction in future payment or a cash refund.

35 DISCLOSURE OF TRANSACTION WITH RELATED PARTIES AS REQUIRED BY THE INDIAN ACCOUNTING STANDARD-24 (Cont.)

All Related Party Transactions entered during the year were in ordinary course of the business and on arm''s length basis and amount showing inclusive of tax.Outstanding balances at the year-end are unsecured and settlement occurs in cash.

There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31st March, 2023, the Group has not recorded any impairment of receivables relating to amounts owed by related parties (2021-22: ''Nil). 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.

36 FINANCIAL RISK MANAGEMENT

Board of Directors oversees Risk Management Framework and monitors Company''s risk management policies. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company''s activities to provide reliable information to the Management and the Board to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

1 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates, commodity prices and interest rates.

The Company seeks to minimize the effects of these risks by using financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company''s policies approved by the Board of Directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the Management and the internal auditors on a continuous basis. The Company does not enter into or trade financial instruments, including derivatives for speculative purposes.

2 Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. Company''s credit risk arises principally from the trade receivables, loans, investments in debt securities, cash & cash equivalents, derivatives and financial guarantees. Company has a policy to get the collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

a) Trade Receivables

Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits defined in accordance with the assessment. Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables. To mitigate credit risk from trade receivables, the company has adopted a policy of despatching machines only on receiving full amount unless to Government department or dealing with creditworthy parties exceptionally. The history of trade receivables shows a negligible allowance for bad and doubtful debts.

During the year company has identified disputed trade receivable. However company is considering it good and expecting full recovery of amount considering past transactions experience of customer with the company.

b) Loans and investment in debt securities

The Company''s centralized treasury function manages the financial risks relating to the business. The treasury function focuses on capital protection, liquidity and yield maximization. Investments of surplus funds are made only in approved counterparties within credit limits assigned for each of the counterparty. Counterparty credit limits are reviewed and approved by the Company. The limits are set to minimize the concentration of risks and therefore mitigate the financial loss through counter party''s potential failure to make payments.

c) Cash and cash equivalents

Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy.

3 Liquidity Risk

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short term operational needs as well as for long term capital expenditure growth projects. The Company generates sufficient cash flow for operations, The Company has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company monitors its capital using gearing ratio. The funding requirements are met largly through internal accruals, income generated from its investments.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2022 and 31 March 2021.

36 FINANCIAL RISK MANAGEMENT (Cont.)_

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

(iv) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(v) There were no material changes and commitments affecting the financial position of the Company which occurred between the end of the financial year to which this financial statement relates on the date of this Integrated Annual Report.

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Mar 31, 2021

Equity Shares

The company has only one class of equity shares having a per share value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

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

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

Loan from Bank:

Term loan Outstanding as on 1st April 2019 is secured against :

i) AXIS Bank car loan is primarily secured by the hypothecation of Maruti Ciaz Car Purchased through loan.

ii) State Bank of India car loan is primarily secured by the hypothecation of Land Rover car purchase through loan.

Rate of Interest is :

I i)Axis Bank Car Loan: 8.90%

ii)State Bank of India Car Loan: 8.75%

Repayment Terms :

i) Axis Bank car loan: Repayable in 36 EMIs Out of which first 35 EMIs are of Rs.25,403/- & Last EMI of Rs.25,404/-

ii) State Bank of India car loan: Repayable in 36 EMIs Out of which first 35 EMIs are of Rs. 1,55,947 /- & Last EMI of Rs.1,38,244/-

Note:

Our basic EPS before exceptional item and bonus shares increased by 121.30% during the year to Rs. 6.15 per share from Rs. 2.78 per share in the previous year. But after issuing bonus share the EPS is Rs.6.03 and Rs. 2.73 per share in current year and previous year, respectively. However, after issuing bonus shares the outstanding shares for computing basic EPS is increased from 98,08,000 shares to 1,00,04,200 shares for the year ended March 31, 2021

LEASEAs a Lessee:

The company has entered into various lease agreements. The lease period can be extended beyond the agreed period at mutually acceptable terms and conditions. There are no restrictions placed upon the company by entering into these leases.

Sensitivity Analysis

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.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the 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 projected 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 projected benefit obligation as recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

B. Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The company has no obligation, other than the contribution payable to the provident fund. The company recognizes contribution payable to the provident fund scheme as an expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre payment will lead to, for example, a reduction in future payment or a cash refund.

36 FINANCIAL RISK MANAGEMENT

Board of Directors oversees Risk Management Framework and monitors Company’s risk management policies. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company’s activities to provide reliable information to the Management and the Board to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

1 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates, commodity prices and interest rates.

The Company seeks to minimize the effects of these risks by using financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company’s policies approved by the Board of Directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the Management and the internal auditors on a continuous basis. The Company does not enter into or trade financial instruments, including derivatives for speculative purposes.

2 Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. Company’s credit risk arises principally from the trade receivables, loans, investments in debt securities, cash & cash equivalents, derivatives and financial guarantees. Company has a policy to get the collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

a) Trade Receivables

Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits defined in accordance with the assessment. Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables. To mitigate credit risk from trade receivables, the company has adopted a policy of despatching machines only on receiving full amount unless to Government department or dealing with creditworthy parties exceptionally. The history of trade receivables shows a negligible allowance for bad and doubtful debts.

b) Loans and investment in debt securities

The Company’s centralized treasury function manages the financial risks relating to the business. The treasury function focuses on capital protection, liquidity and yield maximization. Investments of surplus funds are made only in approved counterparties within credit limits assigned for each of the counterparty. Counterparty credit limits are reviewed and approved by the Company. The limits are set to minimize the concentration of risks and therefore mitigate the financial loss through counter party’s potential failure to make payments.

c) Cash and cash equivalents

Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy.

3 Liquidity Risk

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short term operational needs as well as for long term capital expenditure growth projects. The Company generates sufficient cash flow for operations, The Company has established an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximize the shareholder value.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents and current investments.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interestbearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2021 and 31 March 2020.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

If the change in rates decline by a smiliar percentage, there will be opposite impact of similar amount on Profit Before Tax and Pre-Tax Equity.

The sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

37 IMPACT OF COVID-19

The Company has considered the possible effects of COVID-19 on the carrying amounts of Property, Plant and Equipment, Investments, Inventories, Trade Receivable and Other current assets.- ln developing the assumptions relating to possible future uncertainties in future economic conditions because of this pandemic, the company, as at the date of approval of the financial results, has used external and internal sources of information/ indicators to estimate the future performance of the Company. Based on current estimates the Company expects the carrying amount of these assets to be recovered. Hence, company has estimated nil impact of COVID-19 in the financial results for the quarter and year ended 31st March, 2021. The impact of the COVID-19 on the Company''s Audited financial results may differ from that estimated as at the date of approval of these results.

On transition to Ind AS , the company has elected to continue with the carrying value of its property, plant and equipments recognised as at 1 April

1 2019 measured as per previous GAAP,which in case of the company,corresponds with carrying costs measured in accordance with Ind AS - 16 Property, Plant and Equipments. As on date of transition, gross block and accumulated depreciation was Rs.1,837 Lakhs and Rs. 610 Lakhs.

2 Refer to clause 2.4.3 of notes to significant accounting policies

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the

3 lease. The Company’s lease asset primarily consists of Building. The right-of-use assets are initially recognised at cost, which comprises the initial measurement of the lease liability adjusted plus any initial direct costs less any lease incentives.

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Mar 31, 2018

1.1 Terms/Rights attached to Equity Shares:

The company is having only one class of Equity Shares with par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

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

1. AXIS Bank car loan is primarily secured by the hypothecation of Maruti Ciaz Car Purchased through

Repayment Terms : Repayable in 36 EMIs Out of which first 35 EMIs are of Rs.25,403/- & Last EMI of Rs.25,404/-

2. Cholamandalam Investments and Finance Limited vehicle Loan is primarily secured by hypothecation of Eicher Truck purchased through loan.

Repayment Terms : Repayable in 36 EMIs of Rs. 27,850/- each.

3. State Bank of India car loan is primarily secured by the hypothecation of Land Rover car purchase through loan.

Repayment Terms : Repayable in 36 EMIs Out of which first 35 EMIs are of Rs.l ,55,947 /- & Last EMI of Rs. 1,38,244/-.

Axis Bank Ltd. CC A/c. No. 914030041250678, is primarily secured by hpthecation of current assets both present and future of the company.

ii Further Mortgage of Industrial Property Situated at Plot no.2234, GIDC Lodhika Industrail Estate , Kalawad Road, Village : Methoda , Taluka : Lodhika , Rajkot.

iii.Further mortgage of Residentail property situated at Panchratna Park, Street no.l, Opp. Jalaram Hospital Street, B/h Panchvati Hall, Rajkot.

iii. The facility is further guaranteed by the personal gurantee of both the directors and Mrs. Riyaben Mehta and Mrs. Seemaben Mehta.

Repayment Terms : Repayable on Demand.

2 Caluculation for the Deferred Tax Asset/(Liability) is annexed seperately.

3 Previous Year’s figures have been regrouped/recast in order to confirm the current year’s classification

4 In the opinion of the management of company, value of all current assets, loans, advances and other receivables is not less than their net realisable value in the ordinary course of business.

5 Where external evidences in the form of Cash Memo, bills, receipts were not available, reliance is placed on the internal vouchers, informations and explanations given by the management.