Notes to Accounts of Presstonic Engineering 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.

a) 22,35,340 No. of Equity Shares were issued for Consideration other than cash, on incorporation pursuant to the conversion of a
Partnership Firm into a Private Limited Company as on 23-03-2021 as per the provisions of Section 366 of the Companies Act 2013.

b) The Company has issued fully paid bonus equity shares of 22,35,340 in the ratio of 1:1 as on 22nd May 2023.

c) The Company during the previous year has completed its initial public offer (IPO) of 32,36,800 Equity shares of face value of Rs 10
each at an issue price of Rs.72/- per share amounting to Rs 2,330.50/- lakhs The equity shares of the company were listed on SME
EMERGE Platform of National Stock Exchange of India Limited ("NSE EMERGE") on 18th December 2023

d) The Company has completed its initial public offer (IPO) of 32,36,800 Equity shares of face value of Rs 10 each at an issue price of Rs
72/- per share amounting to Rs 2,330.50/- lakhs The equity shares of the company were listed on SME EMERGE Platform of National
Stock Exchange of India Limited ("NSE EMERGE") on 18th December 2023.

(ii) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has one class of equity shares. Each shareholder is eligible for one vote per share held. In case of any
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 shareholdings.

General Description of the Plan

The Entity operates gratuity plan through a trust wherein every employee is entitled to the benefit equivalent to fifteen days salary last drawn
for each completed year of service. The same is payable on termination of service or retirement, whichever is earlier. The benefit vests after
five years of continuous service. In case of some employees, the Entity''s scheme is more favourable as compared to the obligation under Payment
of Gratuity Act, 1972.

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.

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

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Mar 31, 2024

a) 22,35,340 No. of Equity Shares were issued for Consideration other than cash, on incorporation pursuant to the conversion of a Partnership Firm into a Private Limited Company as on 23-03-2021 as per the provisions of Section 366 of the Companies Act 2013.

b) During the year, the Authorised Share capital of the company is increased from Rs 300 lakhs divided 30 lakhs Equity shares of Rs 10/- each to Rs 800 lakhs divided into 80 lakhs Equity shares of Rs 10/- each.

c) The Company has issued fully paid bonus equity shares of 22,35,340 in the ratio of 1:1 as on 22nd May 2023.

d) The Company has completed its initial public offer (IPO) of 32,36,800 Equity shares of face value of Rs 10 each at an issue price of Rs 72/- per share amounting to Rs 2,330.50/- lakhs The equity shares of the company were listed on SME EMERGE Platform of National Stock Exchange of India Limited ("NSE EMERGE") on 18th December 2023.

(ii) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has one class of equity shares. Each shareholder is eligible for one vote per share held. In case of any 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 shareholdings.

a) Canara bank: Rate of Interest on loans varies based on RLLR.

b) Loans from Bank were initially sanctioned to the partnership firm later all the existing loans were transferred in the name of the company.

c) Current Maturity of Long term debts disclosed under schedule Short Term Borrowings.

Details of Security:

a) Primary Secuirty: Hypothecation of Stock and Book Debts for Overdraft , Bills Discounting and Bank Guarantee facilities and Hypothecation of new 900 tons Hydraulic Pressing Machine for Term Loan.

b) Collateral Security: Loans from Bank are additionally secured by the personal guarantee of directors and against properties belonging to their relatives.

a) Loans from Bank were initially sanctioned to the partnership firm later all the existing loans were transferred in the name of the company.

b) Loan repayable on demand from banks represents working capital loan borrowed from canara bank which is secured against Stock, Book debts and Current Assets of the company and Rate of Interest varies based on RLLR.

c) Overdraft, Bill-discounting facilities and guarantees are towards working capital and are renewable annually. Term loans were sanctioned partly towards general corporate and working capital purposes and partly for acquiring capital assets.

d) Unsecured loans were from various unrelated parties, with no specific term for repayment and on a lumpsum interest basis. This Loans were taken before the conversion of partnership firm into private limited.

General Description of the Plan

The Entity operates gratuity plan through a trust wherein every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service. The same is payable on termination of service or retirement, whichever is earlier. The benefit vests after five years of continuous service. In case of some employees, the Entity''s scheme is more favourable as compared to the obligation under Payment of Gratuity Act, 1972.

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 alloted 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, 2024 and identified MSME creditors to whom payment delayed beyond 45 days. This information is disclosed as required under the Micro, 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 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 provided above.

*General Corporate Expenses includes Rs 266.43/- lakhs spent towards IPO expenses.

37 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 receivable from the promoters, which pertain to the partnership (pre-conversion) period.

38 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:

39 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.

40 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.

41 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.

42 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.

43 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.

The variance in many ratios are due to operational changes.

Revenue growth along with higher efficiency on working capital improvement has resulted in an improvement in certain ratios.

The Company has added Share Capital and reduced certain borrowings, resulting in changes in some ratios.

45 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.

46 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.

47 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.

48 CSR Expenditure

The provisions of Corporate Social Responsibility under section 135 of Companies Act, 2013 is not applicable to the company.

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 a case u/s 138 of the Negotiable Instruments Act for recovery of Rs. 25.70/- lacs against a party who failed to render service as promised and returned the advance amount by way of two cheques which bounced.

Other pending litigations : NIL

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 2024 amounting to Rs 560.97/- lacs.

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.

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Mar 31, 2023

TAXES ON INCOME

The Company provides for Current Taxes at current rates under the provisions of the Income Tax Act, 1961. The Company provides for Deferred Tax arising on account of temporary and reversible timing differences on account of depreciation, employees’ benefits and expenditure which are allowed under the Income Tax Act only on payment

INTANGIBLE ASSETS

Intangible assets are accounted at their acquisition cost and are amortised over their useful lives.

OTHER NOTES

1. The prepaid expenses balance as on 31.3.2022 have been reclassified/regrouped and transferred to research and development un ei intangible assest during the year.

2. All amounts in the financial statements are presented in Indian Rupees. Figures for the previous year have been regrouped/reairange w erever considered necessary to conform to the figures presented in t e cunen year.

Loans from Bank consist ol Machinery Term Loans from Canara Bank by way of hypothecation/security of Machinery and Directors'' personal guarantee. The principal amount is to he paid in monthly instalments of Rs. 10,33/132. The outstanding Term Loans are repayable in the next four years ending on March, 2027 and carry rate of interest varying from 8.9% to I 1.7% on the reporting date.

All charges arc registered with Registrar of Companies (ROC) within statutory period by the Company.

Term Loans were used for the purpose for which the loans were obtained.

Working Capital Loans/Borrowings from Banks are generally renewable within twelve months from the date of sanction or immediately previous renewal date, unless otherwise stated. The lender banks have a right to cancel the credit limits either fully or partially, demand repayment in case of non-compliance of terms and conditions of sanctions or deterioration in the sanctioned loan account in any manner.

Working Capital Loans/borrowings are secured by way of hypothecation of entire Current Assets, both present and future, of the Company viz. inventories, bills receivables, book debts (trade receivables) and Directors personal guarantee.

Bank Returns/Stock Statements filed by the Company with its Bankers are materially in the agreement with books of account.

1. Title deeds of immovable properties not held in the name of the Company.

Nil. There are no immovable properties held in the name of the Company

6. Wilful Defaulter

The company has not been declared as wilful defaulter by any bank or financial institution or other lender.

7. Relationship with struck off Companies

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

8. 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.

9. Compliance with number of layers of companies

The company neither has a subsidiary nor is an associate therefore the layers prescribed under clause 87 of section 2 of the Act read with Companies Rules, 2017 not applicable.

10. Ratios

a) Current Ratio : 1.07

b) Debt Equity Ratio : 0.93

c) Debt Service Coverage Ratio : 1.65

d) Return on Equity Ratio : 1.09

e) Inventory Turnover Ratio : 1.96

f) Trade Receivable Turnover Ratio : 5.15

g) Trade payable Turnover Ratio : 5.93

/"i ’j .1 ''Turnover Ratio ; 15..H

h) Net Capital lurnovur

i) Net Profit Ratio : 0.1 - «,

j) Return on Capital Employod.O.H I

k) Return on Investment. )• >

11. Details of crypto currency or virtual f^Orypufcurrency or Virtual The Company has not traded or invested currency during the financial year.

The borrowings obtained by the company from banks and linaneia institutions have been applied for the purposes for which such loans were taken.