Notes to Accounts of Madhusudan Masala Ltd.

Mar 31, 2025

p Provisions, Contingent liabilities and Contingent assets

A provision is recognized when the Company has a present obligation as a result of past event. it is probable 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. 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 are reviewed at each reporting date and adjusted to
reflect the current best estimates.

Contingent Liabilities are not recognized but are disclosed in the notes to accounts when there is possible obligation or a present
obligation that may, but probably will not, require an outflow of resources, when there is a possible obligation or a present
obligation that the likelihood of outflow of resources is remote.

A contingent asset is neither recognised nor disclosed in the financial statements.

q Earnings Per Share

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the financial year. Earnings considered in ascertaining the company''s earnings
per share is the net profit for the period after deducting any attributable tax thereto for the period. The weighted average number
of equity shares outstanding during the period and for all periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding,
without a corresponding change in resources.

Diluted Earnings Per Share: For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the
effects of all dilutive potential equity shares.

As per our report of even date

For GRSM & Associates For and on behalf of the Board of

Chartered Accountants Presstonic Engineering Limited

Firm''s Registration No. 000863S

Sd/- Sd/- Sd/-

SSd/-

Rajgopal A Herga Poornachandra Kedilaya Yermal Giridhar Rao Sudha G Hegde

Partner Managing Director Jt. Managing Director & CFO Company Secretary

Membership No. 205296 DIN: 09120129 DIN: 09120130 M No: A68052

Place: Bangalore
Date: 13 May 2025

The Board of Directors at its meeting held on May 19, 2023 pursuant to section 63 and all other applicable provisions, if any, of the
Companies Act 2013. and rules made thereunder, proposed that a sum of Rs. 223.53 Lacs be capitalised as Bonus Equity Shares out of
free reserves and surplus, distributed amongst the Equity Shareholders by issue of 22,35,340 Equity Shares of Rs.10 each credited as
Fully paid to the Equity Shareholders in the proportion of 1:1 Equity Share for every 1 (One) Equity Shares. It has been approved in the
extra ordinary general meeting held on May 22, 2023. The Board of Directors of the Company in the Board meeting dated May 22,
2023 allotted the Bonus Equity Shares to the shareholders of the Company. Earnings Per Share calculations have been restated for the
previous year to give effect of bonus issue.

There are no identified Micro and Small Enterprises, to whom the Company owes dues, which are outstanding as on 31st March, 2025
and identified MSME creditors to whom payment delayed beyond 45 days. This information is disclosed as required under the Mic ro,
Small and Medium Enterprises Development Act, 2006

The suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006, have been
identified on the basis of information available with the company.

During the previous financial year, the company has successfully completed its Initial Public Offer (IPO) of 32,36,800 equity shares of
Rs 10/- each at a price of Rs 72/- per equity share (Including a premium of Rs 62 per share), amounting to Rs 2,330.50/- lakhs. Equity
Shares offered in IPO were allotted on 14th December 2023 and listed on 18th December 2023. Details of the proceeds of IPO and
utilisation, pursuant to Regulation of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are p rovided above.

38 Loans and Advances given to Related Parties

The Company, during the year, has not granted any Loans or Advances to promoters, directors, KMPs and the related parties (as
defined under Companies Act, 2013) and hence reporting in this regard is not applicable. However, there is an amount receivab le from
the promoters, which pertain to the partnership (pre-conversion) period.

39 Security of Current Assets Against Borrowings

The company is required to submit monthly statements of inventories and receivables to the bank. The statements of inventories and
receivables filed by the Company with banks were generally in agreement with the books of accounts except on a few occasions. The
disagreements were because these statements were provided on provisional basis. However, reconciliation with regard to quarter
ending months are provided in the table below:

The borrowings against security of current assets were closed during the second quarter of the year, and hence no statements relating
to current assets were submitted subsequently.

40 Details of Benami Property held

There are no proceedings which have been initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

41 Wilful Defaulter

Date of declaration as wilful defaulter

The Company has not been declared as wilful defaulter by any bank or financial Institution (as defined under companies Act, 2013) or
consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve bank of India .

42 Relationship with Struck off Companies

The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

43 Registration of Charge

The Company does not have any charges or satisfaction which are yet to be registered with Registrar of Companies beyond the
statutory period.

44 Compliance with number of layers of comapanies

The company does not have any subsidiaries and hence disclosure related to non compliance 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 is not applicable .

Reasons for Variances

Return on Equity, Net Profit Ratio, DSCR and Return on Capital Employed are having significant variances due to reduction in the net
profit for the year compared to that of the previous year.

Ratio of Trade Receivables was impacted due to high turnover towards the close of the year.

Higher inventory holding required for manufacture for orders on hand has impacted the inventory turnover ratio.

46 Disclosure where company has given loan or invested to other person or entity to lend or invest in another person or entity

The company has not advanced or given loan 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) with the understanding (whether recorded in
writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on
behalf of the Ultimate Beneficiaries and hence disclosure in this regard is not applicable.

47 Disclosure where company has received fund from other person or entity to lend or invest in other person or entity

The company has 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 (i) 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 (ii) provide
any guarantee, security or the like on behalf of the Ultimate Beneficiaries, and hence disclosure in this regard is not applicable.

48 Undisclosed Income

The Company does not have any transaction which not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961). Further, there are no transactions which are previously unrecorded income and related
assets that were recorded in the books of accounts during the year.

49 Details of Crypto Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year, and hence disclosure
relating to profit or loss on transactions involving Crypto/Virtual Currency and amount of currency held as at the reporting date and
deposits or advances from any person for the purpose of trading or investing in Crypto/virtual currency is not applicable.

50 Segment Reporting (AS-17)

Company is unable to provide Segment Reporting as it is operating in only a single Business or Geographical Segment, as stated
below:

a) Primary Segment (Business Segment): The Company is Primarily engaged in the business of manufacturing of Metro Rail Rolling
Stock Products, Railway Signaling Products, Infrastructure Products and other related products. The entire operations are governed
by the same set of risk and returns. Hence, the same has been considered as representing a single Business Segment.

b) Secondary Segment (Geographical Segments). The Company''s Major Revenue are from the India for both the reporting periods.
Hence, the same has been considered as representing a single Geographical Segment.

51 Pending Litigation

The Company has filed criminal complaints under Section 138 of the Negotiable Instruments Act, 1881, against (i) a service provider
for ^25.10 lakhs and (ii) a machinery vendor for ^4.50 lakhs, in respect of cheques issued towards outstanding dues that wer e
dishonoured due to insufficient funds. The cases are pending before the competent Magistrate Court. Based on legal advice, the
management considers the amounts recoverable and no provision is required as at the reporting date.

52 Bank Guarantee

The Company has obtained a Bank guarantee from Canara Bank and issued to various parties and balance outstanding as on 31st
March 2025 amounting to Rs.719.37 lakhs (PY: Rs 560.97/- lakhs.)

53 Confirmations

Balances of the Trade Receivables, Trade Payable, Loans and Advances and other current liabilities are subject to confirmation and
reconciliation.

54 Regrouping

The previous year figures have been reclassifed / regrouped / rearranged to conform to this year''s classification. Figures in brackets
indicate those for previous years.

55 Events after the Balance Sheet date

There were no significant events that occurred after the Balance Sheet date that required any adjustments to the financials.

As per our report of even date

For GRSM & Associates For and on behalf of the Board of

Chartered Accountants Presstonic Engineering Limited

Firm''s Registration No. 000863S

Sd/- Sd/- Sd/- Sd/-

Rajgopal A Herga Poornachandra Kedilaya Yermal Giridhar Sudha G Hegde

Rao

Partner Managing Jt. Managing Company

Director Director & CFO Secretary

Membership No. 205296 DIN: 09120129 DIN: 09120130 M No: A68052

Place: Bangalore
Date: 13 May 2025

Mar 31, 2024

n) Provisions Contingent liabilities and contingent assets:-

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as Contingent Liability.

A disclosure for a Contingent Liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Possible obligation that arises from the past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation is reported as Contingent Liability. In the rare cases, when a liability cannot be measures reliable, it is classified as Contingent Liability. The Company does not recognize a Contingent Liability but disclosed its existence in the standalone financial statements.

o) Event after Reporting Date:-

Where events occurring after the Balance Sheet date provide evidence of condition that existed at the end of reporting period, the impact of such events is adjusted within the standalone financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

All the events occurring after the Balance Sheet date up to the date of the approval of the standalone financial statement of the Company by the board of directors on May 03, 2024 have been considered, disclosed and adjusted, wherever applicable, as per the requirement of Accounting Standards.

Note 4.1 (1) Term Loans from Bank of Baroda referred above to the extent of -

1. Creation of Registered equitable mortgage of factory land and building including proposed Pe8 structure of Cold Storage at NA industrial land having sub plot no. 1/8, R. S. No. 1509/2, adm 5384.14 Sq. Mtrs. and built up adm. 2294.38 Sq. Mtrs. situated Nr. Marketing Yard, Hapa road, Jamnagar, Gujarat

2. Creation of Registered equitable mortgage of Residential cum Commerical building comprised of eight shops, two stalls, six offices and twelve flats at city survey no. 1-G-4 Paiki, Sheet No. 86, C. S. No. 3837 Paiki & 3838, Plot no. 3/A1, 3/A2 and 3/8, Saru Section road, Jamnagar

3. Creation of Registered equitable mortgage of all that piece and parcel of NA Residential land of Plot No. 51, admeasuring 694.73 Sq. Mtrs. (as per revenue record 694.73.11 Sq. Mtrs) of NA land of R. S. No. 382 paiki, situated on Rajkot Highway in the city of Jamnagar

4. Creation of Registered equitable mortgage of all that piece and parcel of NA Residential land of Plot No. 52, admeasuring 694.73 Sq. Mtrs. (as per revenue record 694.73.11 Sq. Mtrs) of NA land of R.

S. No. 382 paiki, situated on Rajkot Highway in the city of Jamnagar

Guarantee

1 Mr. Viiavkumar Vanravan Kotecha 2 Mr. Davalii Vanravan Kotecha 3 Mr. Hiren Viiavkumar Kotecha 4 Mr. Rishit Davalii Kotecha 5 Mrs. Foram Rishit Kotecha 6 Mrs. Mayuri Hiren Kotecha

(2) Term Loan from SIDBI is secured by-

1. First Charge by way of Hypothecation of all the movable assets of the company whether acuired /to be acquired at its factory premises.

2. Lien on Fixed Deposit of Rs. 150 Lakh in the name of the company

(3) Term Loan from Kotan Mahinda Prime Ltd is secured against the vehicle Jeep.

^NÂ°te ⁵-¹ (i) Working Capital Loan from Bank of Baroda referred above to the extent of -

Primary Security :

Hypothecation of Stocks and Book Debts (Existing and Future)

Collateral Security:

1. Creation of Registered equitable mortgage of factory land and building including proposed PE8 structure of Cold Storage at NA industrial land having sub plot no. 1/8, R. S. No. 1509/2, adm 5384.14 Sq. Mtrs. and built up adm. 2294.38 Sq. Mtrs. situated Nr. Marketing Yard, Hapa road, Jamnagar, Gujarat

Guarantee:

1 Mr. Viiaykumar Vanravan Kotecha

2 Mr. Dayalji Vanravan Kotecha

3 Mr. Hiren Viiaykumar Kotecha

4 Mr. Rishit Dayalji Kotecha(2) Working Capital Loan from HDFC referred above to the extent of -

Primary Security :

Hypothecation of Stocks and Book Debts (Existing and Future)

Collateral Security:

Guarantee

1 Mr. Viiavkumar Vanravan Kotecha 2 Mr. Davalii Vanravan Kotecha 3 Mr. Hiren Viiavkumar Kotecha 4 Mr. Rishit Davalii Kotecha 5 Mrs. Foram Rishit Kotecha 6 Mrs. Mayuri Hiren Kotecha

(2) Working Capital Loan from HDFC referred above to the extent of -

Primary Security :

Hypothecation of Stocks and Book Debts (Existing and Future)

Collateral Security:

1.Industrial Open Land RS No 400p1, TPS No. 3A, FP No 16, Plot No 6& 7 off Hapa Road , Nr. Shreenath Spediators Pvt Ltd. 361002 Hapa

2. Personal Gaurentee of All Directors : Guarantor:

1 Mr. Viiavkumar Vanravan Kotecha 2 Mr. Davalii Vanravan Kotecha 3 Mr. Hiren Viiavkumar Kotecha 4 Mr. Rishit Davalii Kotecha 5 Mrs. Foram Rishit Kotecha 6 Mrs. Mayuri Hiren Kotecha

3. FD For bank Gaurantee with 10% Margin.

24. The previous year''s figures have been reworked, regrouped, and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current annual financial statements and are to be read in relation to the amounts and other disclosures relating to the current financial year.

25. Credit and Debit balances of unsecured loans, sundry creditors, sundry Debtors, loans and Advances are

subject to confirmation and therefore the effect of the same on profit could not be ascertained.

26. Balances of Trade Payables, Trade Receivable and Loans and Advances are subject to confirmations and

reconciliation if any, by the respective parties.

27. Statement of Management

I. The current assets, loans and advances are good and recoverable and are approximately of the values, if realized in the ordinary courses of business unless and to the extent stated otherwise in the Accounts. Provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

II. Balance Sheet, Statement of Profit and Loss read together with Notes to the accounts thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the Company as at the end of the year and results of the Company for the year under review.

33. Tittle deeds of immovable property.

Tittle deeds of immovable property has not been held in the name of promoter, director, or relative of promoter/ director or employee of promoters / director of the company, hence same are held in the name of the company.

34. Revaluation of property, plants and equipment''s.

The Company has not revalued its Property, Plant and Equipment for the current year.

35. Loans or Advances in the nature of loans.

No Loans or Advances are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

36. Capital Work In Progress (CWIP)

There has been no Capital work in progress for the current year of the company.

37. Intangible assets under development:

There are no Intangible assets under development in the current year

38. Details of Benami property held.

The company does not hold any benami property under the Benami Transaction (prohibition) act, 1988 and the rules there made under. Hence any proceeding has not been initiated or pending against the company for holding any benami property under the Benami Transaction (prohibition) act, 1988 and rules made there under.

39. Borrowings from bank or financial institution on the basis of current assets.

The company have borrowings from bank or financial institution on the basis of current assets as per Note No. 4 and 5.

40. Willful Defaulter.

The company has not been declared as a willful defaulter by any bank or financial institution or government or government authority during the year reporting period.

41. Relationship with struck off companies.

The company does not have transactions with the struck off under section 248 of companies act, 2013 or section 560 of companies act 1956.

42. Registration of charges or satisfaction with Registrar of companies.

The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

43. Compliance with number of layers of companies.

The company is in compliance with the number of layers prescribed under clause (87) of section 2 of company''s act read with companies (restriction on number of layers) Rules, 2017.

44. Utilization of borrowed funds and share premium.

As on March 31,2024 there is no unutilized amount in respect of any issue of securities and long term borrowing from banks and financial institutions. The borrowed funds have been utilized for the specific purpose for which the funds were raised.

45. Corporate social responsibility (CSR).

As per section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed by the Company. The funds are utilized on the activities which are specified in Schedule VII of the Companies Act, 2013. The utilization is done by way of contribution towards various activities.

Average net profit of the Company for last three financial years:

Rs. 40,628,364.60

Prescribed CSR Expenditure (two percent of the amount as in above):

Rs. 8,12,568

Two percent of average net profit of the company as per section 135(5):

Rs. 8,12,568

Surplus arising out of CSR projects/ programs/ activities of the previous financial years:

NIL

Amount required to be set off for the financial year: NIL Amount unspent, if any: NIL

Total CSR obligation for the financial year: Rs. 8,12,568/-

CSR amount spent or unspent for the financial year:

a) Total Amount Spent for the Financial Year (in Rs): Rs. 8,16,000/-

b) Amount Unspent (in Rs) : NIL

46. Details of crypto currency and virtual currency.

Company has not traded or invested in crypto currency or virtual currency during the financial year.

47. Contingent Liability

i) Contingent liabilities shall be classified as:

(a) Claims by the company not acknowledged as debt: 10,05,71,521.35/-

(b) Guarantees.

Note: Contingent liability arisen on account of pending legal proceeding by company against receivable, which has been occurred after balance sheet date but before date of submission of Audit Report

48. The Company is subject to legal proceedings and claims (amounting to 10,05,71,521.35/-) after balance sheet date, which have arisen on account of non-payment of outstanding dues by trade receivables to company on account of submission of forged documents, bank receipts and bank statement. The company''s management reasonably expects that such extraordinary legal actions, when ultimately concluded and determined, will have a material and adverse effect on the company''s results of operations or financial condition.

49. A. 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 persons or entities, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (âUltimate Beneficiariesâ) by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

B. No funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), 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 (âUltimate Beneficiariesâ) by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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