Notes to Accounts of TechEra Engineering (India) Ltd.

Mar 31, 2025

n) Provisions:

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.

0) Retirement and other employee benefits:

Defined contribution plans: Provident Fund and ESI

The Company pays Provident fund contributions to publicly administered provident funds as
per local regulations. The Company has no further payment obligations once the
contributions have been paid. The contributions are accounted for as defined contribution
plans and the contributions are recognized as employee benefit expense when they are due.

Defined benefit plan: Gratuity

The Company provides for gratuity, a defined benefit plan (the “Gratuity Plan”) covering
eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan
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. The
Company''s liability is actuarially determined (using the Projected Unit Credit method) at the
end of each year. Actuarial losses / gains are recognized in the Profit and loss account in the
year in which they arise. The gratuity benefit is non funded Liability.

Defined benefit plan: Leave Encashment

The Company provides for Leave Encashment, a defined benefit plan (the “Leave
Encashment plan”) covering eligible employees. The Leave Encashment Plan provides a
payment to employees to encash their accrued leave balance either during service or at
retirement, death, incapacitation or termination of employment. The Company''s liability is
actuarially determined (using the Projected Unit Credit method) at the end of each year.
Actuarial losses/gains are recognized in the Profit and loss account in the year in which they
arise. The leave Encashment benefit is non funded Liability.

p) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence
will be confirmed by the occurrence or nonoccurrence 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 the settle the
obligation. A contingent event also arises in extremely rare cases where there is a liability
that cannot be recognized because it cannot be measured reliably. The company does not
recognize a contingent liability but disclose its existence in the financial statements.

Contingent liabilities are reviewed at each Balance Sheet date.

q) Cash & cash equivalent:

Cash & cash equivalent for the purpose of cash flow statement comprise cash at bank
and in hand and short-term investments with an original maturity of less than three
months.

r) Events occurring after balance sheet dates

No significant events which could affect the financial position as on 31st March, 2025,
to a material extent have been reported after the balance sheet date.

s) Prior period and extra ordinary items:

There are no material changes or credits which arise in current period, on account of
errors or omissions in the preparation of financial statements for one or more periods.

t) Dues to Small Scale undertakings:

Based on the information available with the company, there are certain outstanding
dues to small scale undertakings as at the year end. The information as required to be
disclosed under the micro, Small and medium Enterprise Development Act, 2006 has
been determined to the extent such parties have been identified on the basis of
information available with the company.

u) foreign currency transactions: -

1) The reporting currency of the company is Indian rupee (INR).

2) Foreign currency transactions are recorded on initial recognition in the
reporting currency, using exchange rate at the date of the transactions. At each
balance sheet date, foreign currency monetary items are reported using the
closing rate. There are no non-monetary items which needs to be reported. An
exchange differences that arise on settlement of monetary items or on reporting
of monetary items at each balance sheet date at the closing rate are:

i) Adjusted in the cost of fixed assets specifically attributable to it, as per
provisions of Accounting Standard 11 issued by Ministry of Corporate
Affairs read with Accounting Standard Rules, 2006 as amended from
time to time.

ii) Recognized as income or expenses in the period in which they arise, in
case other than above.

As per AS-11, the exchange difference arising on account of long-term foreign currency
monetary item in so far as they relate to acquisition of a depreciable capital asset, can be
added to or deducted from the cost of the asset. Accordingly, the foreign exchange
difference arising on account of principal repayment in adjusted in the Cost of the asset.
Similarly, foreign exchange difference arising on account of Interest booked is of revenue
nature and hence, routed through Profit & Loss account.

All the above Foreign currencies balances outstanding as on 31^st March, 2025 are
unhedged.

v) Lease: -

The company has taken the premises on the operating lease and entered into
Leave and License agreement with various parties. A lease in which a significant portion
of the risks and rewards of ownership are retained by the lessor are classified as
operating leases. Payments made under operating leases are charged to the
Statement of Profit and Loss on a straight line basis over the period of the lease term.

w) Other Statutory Information: -

1. The company do not have any Benami Property, where any proceeding has been
initiated or pending against the company for holding any benami property.

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

3. The company has not been declared as willful defaulter by any bank or financial
institutions or any other lender.

4. During the audited period, the company has not revalued its Property, Plant and
Equipment.

5. The company have not traded or invested in Crypto Currency or Virtual Currency
during the audited period.

6. The company have not advanced or loan or invested funds to any other person(s) or
entity (ie), including foreign entities (intermediaries) with the understanding that the
intermediaries shall :

i) Directly or indirectly lend or invest in other person or entities identified in any manner
whatsoever by or on behalf of the company. (ultimate beneficiaries); or

ii) Provide any guaranty, security or the like to or on behalf of the ultimate beneficiaries.

7. The company have not received any funds from any person(s) or entity(ies), including
foreign entities (funding party) with the understanding (whether recorded in writing or
otherwise) that the company shall:

i) Directly or indirectly lend or invest in other person or entities identified in any manner
whatsoever by or on behalf of the funding party. (ultimate beneficiaries); or

ii) Provide any guaranty, security or the like to or on behalf of the ultimate beneficiaries.

8. The company have not done any such transaction which is not recorded in the books
of accounts that has been surrendered or disclosed as income during the year in the tax
assessment under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provision of the Income Tax Act, 1961.)

9. Based on the Information available with the company, the company do not have any
transaction with the companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.

10. During the year, the company has received funds amounting to Rs. 35,89,63,200/-
from proceeds of the issue of fresh equity shares. The company has incurred an issue
expense amounting to Rs. 6,11,94,675/-. Further, the utilization of issue proceeds net of
issue expenses is summarized as below: -

The balance of Rs. 51,71,254/- which is in the account of Scheduled Commercial bank
will be utilized by the company in the FY 2025-26.

The company has utilized an amount of Rs. 5,26,06,054/- towards General Corporate
Purpose. The proceeds utilized towards General Corporate purpose are from the proceeds
estimated for the capital expenditure and repayment of debts. The amount spent is well
within the limits of 25% of gross proceeds of fresh issue as set out in the prospectus as
per the requirement of SEBI ICDR Regulations.

11. The figures for the previous financial year have been regrouped and reclassified,
wherever necessary and have also been converted from thousands to lakhs of rupees, in
line with the presentation adopted for the current financial year.

TECHERA ENGINEERING (INDIA) LIMITED
Sd/-

NIMESH RAMESHCHANDRA DESAI
MANAGING DIRECTOR

FOR D A S K & ASSOCIATES
CHARTERED ACCOUNTANTS

Sd/-

CA SANTOSH DEVKAR
PARTNER
M No :- 133174
FRN :- 130493W
Date:- 28/05/2025
Place:-PUNE

Notes: - Right, Preference and restriction attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10/- each. Each shareholder
is entitled to one vote per share. The comapny declares and pays dividends in Indian rupees. The
dividend proposed by the board of directors is subject to approval by the shareholders in ensuing
Annual General Meeting. In the unlikely event of liquidation of the company, the holder of euqity
shares will be entitled to receive remaining assets of the company, after distribution of all preferential
amounts. The distribution will be in the proportion to the number of equity shares held by the
shareholders.

1) As on 12th October, 2021 the company has alloted 4,347 Equity Shares of Rs. 10 each at premium of

Rs. 13 each to Maharashtra Defence and Aerospace Venture Fund through its Investment Manager M/S
IDBI Capital Markets & Securities Limited._

2) During the FY 2021-22, the company has also issued and alloted 11,99,000, 0.01% Compulsory
Convertible Preference Shares of Rs. 100/- each to Maharashtra Defence and Aerospace Venture Fund
through its Investment Manager M/S IDBI Capital Markets & Securities Limited persuant to Subscription
Cum Share Holders Agreement dated 23/09/2021.

3 ) The Investor shall be entitled to receive Cash Dividend at the rate of 0.01% per annum of the Original
Issue Price per CCPS from the date of allotment of the respective CCPS. The dividend on the outstanding
CCPS shall accrue irrespective of the same being declared by the Board or not, be cumulative, and be

4) In accordance with SHA entered into by the company If the CCPS are not purchased by the Company
and/ or Promoters on or prior to 60 (sixty) months of the Transaction Date, then the Investor shall, at its
sole discretion, have a right (but not an obligation) to convert, the CCPS held by the Investor along with
the accumulated dividend (as applicable), if any, into fully paid up Equity Shares as per the terms given
below a) 50% of the CCPS are to be converted within 48 months from the date of transaction and the
basis of conversation shall be Profit & Loss Account for the previous 12 months and the Valuation should
be 5 times of PAT. Balance 50% of the CCPS are to be converted within 60 months from the date of
transaction and the basis of conversation shall be Profit & Loss Account for the previous 12 months and
the Valuation should be 4 times of PAT. b)In the event the shareholding of the Investor in the Company
on a Fully Diluted Basis exceeds 30% (thirty percent) of the paid up equity Share Capital on a Fully
Diluted Basis at any time, then in compliance with the applicable provisions of the Companies Act 2013,
the Investor shall, at its sole discretion, be entitled to convert such number of CCPS so as to maintain the
shareholding of the Investor in the Company on a Fully Diluted Basis less than or equal to 30% (thirty
percent) of the paid up equity Share Capital on a Fully Diluted Basis. The balance unconverted CCPS
shall be bought back by the Company and/ or purchased by the Promoters so as to ensure that the Investor
shall receive an IRR of 20% (twenty percent). The dividend paid on the CCPS by the Company to the
Investor, if any, shall be taken into consideration for the purpose of calculation of such
IRR.c)Notwithstanding anything to the contrary contained herein, in the event the Company proposes to
raise funds by way of a fresh issue of Securities to any Person (other than the Investor or any other
existing Shareholder) prior to 60 (sixty) months from the Transaction Date and such investor along with
the others proposes to invest a minimum amount of INR 12,00,00,000/- (Indian Rupees Twelve Crore
only) into the Company, then the Investor shall, at its sole discretion, be entitled to convert, either all or
in part, the CCPS, at any time, into fully paid up Equity Shares at a price which can give notional IRR of
20% p.a. at the price of investment by the new investor.d) in the event the Company is able to complete
an IPO before conversion of the CCPS, at any time on or prior to 60 (sixty) months from the Transaction
Date, then the Investor shall, at its sole discretion, be entitled to convert the CCPS held by the Investor
into fully paid up Equity Shares at a conversion price, provided that, the floor price of the IPO shall be
at the price which can give notional IRR of atleast 20% (twenty percent) than the Investor’s conversion
price or any other price acceptable to the Investor.e) In the event the conversion as set out above does
not take place on account of average loss incurred by the Company during the period from 60 (sixty)
months to 72 (seventy-two) months from the Transaction Date, then such number of CCPS (due for
conversion in the respective years as per above mentioned table) shall, at the sole discretion of the
Investor, be converted into fully paid up Equity Shares at par._

5) As on 24th January, 2024 , the company has issued Equity Shares of 3,19,275 at Rs. 294.80 per share
(Rs. 10 Face Value and Rs. 284.80 premium). The equity shares alloted as above shall rank pari passu with
the existing Equity Shares of the company including Dividends and other corporate benefits, if any, declared
by the company after this allotment.

6) As per the resolution passed on 24th January, 2024, the company altered terms and conditions of 6,20,228
compulsorily convertible preference shares into redeemable preference shares and accordingly as per
agreement " Subscription Cum Shareholders" dated 23rd September, 2021 company redeemed preference
shares out of the proceeds of fresh issue of 3,19,275 equity shares of Rs. 10/- each at a premium of Rs.
284.80/- per share agreegating to Rs. 9,41,22,270/-

7) As on 29th January, 2024 , the company has also converted 5,78,772 - 0.01% Compulsorily Convertible
Preference Shares ( CCPS ) of Face Value of Rs. 100/- Each into 2,98,643 Equity Shares of face value of
INR 10/- as per the conversion terms of CCPS provided in Subscription and Shareholders agreement dated
23rd September, 2021.

8) As on 27th February, 2024 , the company has issued Bonus shares in the proportion of 4 new fully paid
up Equity Shares of Rs. 10/- each for every 1 existing fully paid up equity share held by the members. The
Bonus shares has been issued capitalising the Securuties Premium account. The Company has issued
97,14,660 Bonus shares of Rs. 10/- each.

9) During the year 2024-25, the company has made a public issue of 43,77,600 Equity Shares which has
been authorised by a resolution of Board of Directors at the meeting held on March 23, 2024 and was
approved by the Shareholders of the company by passing a Special Resolution at the Extra Ordinary General
Meeting held on March 26, 2024 in accordance with the provisions of section 62(1)( c) of the companies
act, 2013.

10) The Equity shares issued in accordance with the above mentioned issue shall be subject to the provisions
of the Companies Act, 2013 and our MOA and AOA and shall rank pari passu in all respects with the
existing Equity shares of the company including the rights in relation to the dividend. They will be entitle
to receive dividend and all other corporate benefits, if any, declared by the company after the date of
allotment.

11) The issue of 43,77,600 Equity Shares of Face Value of Rs. 10/- each was made at price of Rs. 82/- each
( including securities premium of Rs. 72/- each aggregating to Rs. 35,89,63,200/- and already existing
equity shares will be listed on the NSE SME platform as at 03rd October, 2024.

Note

A) Non convertible debentures:-

During the year FY 2024-25, the company has issue 15% Non convertible debentures of 1,50,000 at
face value of Rs.100 debentures which has been authorised by a resolution of Board of Directors at
the meeting held on September 2,2024 and it carries coupon rate of 15% payable annually on or before
31st March of the year.If the interest on NCD to be paid on the due date or before 31st March. Delay
in Interest is subject to penalty of 30% per annum from the date of default till the date of
payment.Tenure of 24 months from date of date of disbursement and if the principal is to be repaid on
or before the due date i.e. 24 months from transaction date any default will attract will be liable to
penalty of 30% per annum from date of default till the date of payment.

B) Secured loan:¬
- From Bank

1. Term Loan - Cosmos Bank - amounting to Rs. 1,70,00,000/- is Loan for purchase of Resale
machinery. It is payable in 54 Equated Monthly Installment of Rs. 4,04,741/-. The loan is secured against
Machinery purchased (Horizontal Boring Machine - MMPL ) and Collateral security of director
Property,Situated at Plot No 147/21, 147/22 and 147/23 of GAT No. 147 in the village Thapewadi,
Purandhar, Pune

2. DMG Mori Loan is an External Commercial Borrowing from DMG Mori Finance GmBH amounting
to Euro 1,86,870.55 which is repayable in 60 Equated Monthly Installments of Euro 2,779.72. The Loan is
secured against hypothecation of 5 Axis Machine from DMG Mori. The entire loan is repaid in the month
of April, 2025.

3. Term Loan - SIDBI ( Small Industries Development Bank of India) is an assistance to Re-energize
Capital Investment by SMES. The amount sanctioned is Rs. 200,00,000/- and is repayable in 78 equated
monthly Installment of Rs. 2,57,000/-. The loan is for the purpose of undertaking
expansion/modernization/capital expansion. The loan is secured against all equipments, Plant & Machinery
and other assets and also the company has kept the fixed deposit of Rs. 60,00,000/- which is to be kept till
the tenure of the loan.

4. Term Loan - HDFC BANK is the Extended Fund Facility. The amount sanctioned is Rs. 24,68,000/-
which is repayable in 27 Equated Monthly Installments amounting to Rs. 1,01,600/-.secured against the
primary security of Stock, Debtors, FD, Property and CGTSME. The secondary security for the same is
personal guarantee and CGTSME Guarrenty. The personal guarrenty of Mrs. kalpana Desai includes the
equitable mortage of Flat No 602, Sun Planet, Pune 411051.

5. Term Loan - HDFC BANK is the Extended Fund Facility. The amount sanctioned is Rs. 96,00,000/-
which is repayable in 39 Equated Monthly Installments amounting to Rs. 2,85,946/-.secured against the
primary security of Stock, Debtors, FD, Property and CGTSME. The secondary security for the same is
personal guarantee and CGTSME Guarrenty. The personal guarrenty of Mrs. kalpana Desai includes the
equitable mortage of Flat No 602, Sun Planet, Pune 411051.

6. Term Loan - HDFC BANK is the Extended Fund Facility. The amount sanctioned is Rs. 39,95,000/-
which is repayable in 48 Equated Monthly Installments amounting to Rs. 99,891/-.secured against the
primary security of Stock, Debtors, FD, Property and CGTSME. The secondary security for the same is
personal guarantee and CGTSME Guarrenty. The personal guarrenty of Mrs. kalpana Desai includes the
equitable mortage of Flat No 602, Sun Planet, Pune 411051.

- From NBFC

1. Term Loan - Electronica Finance Limited is the is the Machinery Loan. The amount sanctioned is
Rs. 47,20,000/- which is repayable in 60 Equated Monthly Installments amounting to Rs. 1,03,214/-.The
loan is secured against the machineries of the company (3D Coordinate Measuring Machine "Mega").

2. Term Loan - Electronica Finance Limited is the Extended Fund Facility. The amount sanctioned is
Rs. 79,64,764/- which is repayable in 60 Equated Monthly Installments amounting to Rs. 1,74,168/-The
loan is secured against Machinery purchased (Faro Business Technologies India Pvt Ltd ) and the company

has kept Collateral security of fixed deposit of Rs. 31,85,906/- which is to be kept till the tenure of the
loan.

3. Term Loan - Electronica Finance Limited is the Machinery Loan. The amount sanctioned is Rs.
44,85,180/- which is repayable in 60 Equated Monthly Installments amounting to Rs. 98,079/-.The loan is
secured against Machinery purchased (Jyoti make CNC vertical machining center, Model:1060 DM with
controller siemens-828 D with all standard accessories and electricals).

4. Term Loan AU Small Finance is secured loan against vehicle. The amount sanctioned is Rs.7,87,000/-
and is repayble in 60 Equated Monhtly Installment amounting to Rs.16,916/-.

5. Term Loan - Electronica Finance Limited is the Extended Fund Facility. The amount sanctioned is
Rs. 21,29,310/- which is repayable in 48 Equated Monthly Installments amounting to Rs. 55,096/-.The loan
is secured against Machinery purchased (Micromatic Grinding Technologies Pvt. Ltd. ) and the company
has kept Collateral security of fixed deposit of Rs. 6,38,793/- which is to be kept till the tenure of the loan.

6. Term Loan- Electronica Finance Limited is the Business Loan. The amount sanctioned is Rs.

4,00,00,000/- which is payable in 48 Equated Monthly Installments amounting to Rs. 10,44,538/-. The loan
is secured against the machineries of the company ( Jyoti Make CNC Vertical Machining Center Model
VMC 1370 NVU Machine,Jyoti Make CNC Vertical Machining Center Model VMC 1880 Machine, Jyoti
Make CNC Vertical Machining Center Model VMC 850DM Machine, DMG Mori 5 Axis Universal
Machine and 3D Co-ordinate meas M/C Megh Make Accurate operation. The company has also kept an
FD amounting to Rs. 1,00,00,000/- as a Cash Collateral Security.

7. Term Loan- Electronica Finance Limited is the Business Loan. The amount sanctioned is Rs.
72,21,600/- which is payable in 48 Equated Monthly Installments amounting to Rs. 1,86,611/-. The loan is
secured against the machineries of the company ( LML Vertical CNC Machining Center Model VM-7,
LML Vertical CNC Machining Center Model VM-11). The company has also kept an FD amounting to Rs.
18,05,400/- as a Cash Collateral Security.

8. Term Loan- Poonawalla Fincorp Limited is the Machinery Loan. The amount sanctioned is Rs.
5,08,25,923/- which is payable in 72 Equated Monthly Installments of Rs. 9,93,657/-.

C) Unsecured Loan:-

1. Term Loan - Kisetsu Saison Finance (India) Pvt Ltd is the Extended Fund Facility. The amount
sanctioned is Rs. 35,70,000/- which is repayable in 36 Equated Monthly Installments amounting to Rs.
1,26,837/-

2. Term Loan - Poonawalla Fincorp is the Extended Fund Facility. The amount sanctioned is Rs.

30.00. 000/- which is repayable in 36 Equated Monthly Installments amounting to Rs. 1,08,005/-

3. Term Loan - Shriram Finance is the Extended Fund Facility. The amount sanctioned is Rs.

35.00. 000/- which is repayable in 24 Equated Monthly Installments amounting to Rs. 1,74,398/-

4. Term Loan - SMFG India Credit Co.Ltd is the Extended Fund Facility. The amount sanctioned is
Rs. 40,00,000/- which is repayable in 19 Equated Monthly Installments amounting to Rs. 2,54,347/-

5. Term Loan - Unity Small Finance Bank is the Extended Fund Facility. The amount sanctioned is
Rs. 30,60,000/- which is repayable in 24 Equated Monthly Installments amounting to Rs. 1,52,399/-

6. Term Loan- Fedbank Financial Services Limited is the Business Loan. The amount sanctioned is
30,30,000/- which is payable in 25 Equated Monthly Installment amounting to Rs. 1,49,810/-.

7. Term Loan- Hero Fincorp is the Business Loan. The amount sanctioned is Rs. 30,30,000/- which is
payable in 36 Equated Monthly Installment of Rs. 1,08,784/-.

8. Term Loan- Protium Finance Limited is the Business Loan. The amount sanctioned is rs.

35,00,000/- which is payable in 30 Equated Monthly Installment of Rs. 1,44,878/-

9. Term Loan- Kotak Mahindra Bank is the Business Loan. The amount sanctioned is rs. 40,00,000/-
which is payable in 24 Equated Monthly Installment of Rs. 1,97,771/-

The Company provides Gratuity for employees in India as per the Payment of Gratuity Act, 1972.
All employees are entitled to gratuity benefits on exit from service due to retirement, resignation or
death. There is a vesting period of 5 years on exits due to retirement or resignation. This defined
benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and
market (investment) risk. ) In Compliance with accounting standard-15, issued by Institute of
Chartered Accountants of India, regarding the provisions of retirements benefit, the present value of
the defined benefit obligation and the relevant current service cost are measured using the Projected
Unit Credit Method, with actuarial valuations being carried out at each Balance sheet date. During
the FY 2024-25, the company has recognized the provision for Gratuity & the same are unfunded.

The following table summarize the components of net benefit expense recognized in the Profit &
Loss account. These calculations are based on the actuarial valuation required as per AS-15.

In Compliance with accounting standard-15, issued by Institute of Chartered Accountants of India,
regarding the provisions of retirements benefit, the present value of the defined benefit obligation
and the relevant current service cost are measured using the Projected Unit Credit Method, with
actuarial valuations being carried out at each Balance sheet date. During the FY 2024-25, the
company has recognized the provision for leave encashment

The following table summarize the components of net benefit expense recognized in the Profit &
Loss account and the non- funded status and amount recognized in the balance sheet for the respective
plan. These calculations are based on the actuarial valuation required as per AS-15.

Note 28 Segment Reporting

The company operates in the areas of designing and manufacturing of tooling and
automation systems for defense and aviation industry and general purpose automation
systems in the single geographical area i.e. India. Therefore, the disclosure requirements
as per Accounting Standard 17- “ Segment Reporting” are not applicable to the company.

FOR AND ON BEHALF OF BOARD OF DIRECTORS FOR D A S K & ASSOCIATES

TECHERA ENGINEERING (INDIA) LIMITED CHARTERED ACCOUNTANTS

CIN :- L29100PN2018PLC179327 FRN :- 130493W

Sd/- Sd/- Sd/-

NIMESH RAMESHCHANDRA DESAI KALPANA NIMESH DESAI CA SANTOSH DEVKAR

MANAGING DIRECTOR DIRECTOR (PARTNER)

DIN - 02779330 DIN- 02779365 M No - 133174

UDIN - 25133174BMIHQY4772

Sd/- Sd/- PLACE - PUNE

CS PRATIKSHA KUMBHARE SANDEEP SHINDE

COMPANY SECRETARY CFO

M NO :- 12098

---

Mar 31, 2024

l) Provisions:

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.

Where the company expects some or all of a provision to be reimbursed, for
example under an insurance contract, the reimbursement is recognized as a separate
asset but only when the reimbursement is virtually certain. The expense relating to any
provision is presented in the statement of profit and loss net of any reimbursement.
Provisions are reviewed on each Balance sheet date.

m) Retirement and other employee benefits:

(i) Retirement benefit in the form of provident fund is a defined contribution scheme. The
contributions to the provident fund are charged to the statement of profit and loss for the
year when the contributions are due. The company has no obligation other than the
contribution payable to the provident fund.

(ii) In Compliance with accounting standard-15, issued by Institute of Chartered
Accountants of India, regarding the provisions of retirements benefit, the company has
made the provision gratuity based on actuarial valuation. During the FY 2023-24, the
company has recognized the provision for Gratuity amounting to Rs. 11,87,266/-.

The following table summarize the components of net benefit expense recognized in the
Profit & Loss account and the funded status and amount recognized in the balance sheet
for the respective plan. These calculations are based on the actuarial valuation required
as per AS-15.

(ii) In Compliance with accounting standard-15, issued by Institute of Chartered
Accountants of India, regarding the provisions of retirements benefit, the company has
made the provision Leave Encashment based on actuarial valuation. During the FY
2023-24, the company has recognized the provision for Leave Encashment amounting to
Rs. 10,45,856/-.

The following table summarize the components of net benefit expense recognized in the
Profit & Loss account and the funded status and amount recognized in the balance sheet
for the respective plan. These calculations are based on the actuarial valuation required
as per AS-15.

n) Contingent liabilities and contingent assets

A contingent liability is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or nonoccurrence 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 the
settle the obligation. A contingent event also arises in extremely rare cases where there is
a liability that cannot be recognized because it cannot be measured reliably. The company
does not recognize a contingent liability but disclose its existence in the financial
statements.

Contingent liabilities & Assets are reviewed at each Balance Sheet date.

o) Cash & cash equivalent:

Cash & cash equivalent for the purpose of cash flow statement comprise cash at
bank and in hand and short-term investments with an original maturity of three
months/less.

p) Related party transactions:

i) The following table provides the total amount of transactions that have been
entered into with related parties for the year ended 31.03.2024: -

q) Events occurring after balance sheet dates

No significant events which could affect the financial position as on 31st March, 2024,
to a material extent have been reported after the balance sheet date.

r) Prior period and extra ordinary items:

There are no material changes or credits which arise in current period, on account of
errors or omissions in the preparation of financial statements for one or more periods.

The company has recorded Leave Encashment as prior period item amounting to
Rs.4,78,655/- as per actuary valuation.

s) Preliminary expenses:

Preliminary Expenses of the company are amortized equally over a period of 5 years.

t) Dues to Small Scale undertakings:

Based on the information available with the company, there are certain outstanding
dues to small scale undertakings as at the year end. The information as required to be
disclosed under the micro, Small and medium Enterprise Development Act, 2006 has
been determined to the extent such parties have been identified on the basis of
information available with the company.

u) foreign currency transactions: -

1) The reporting currency of the company is Indian rupee (INR).

2) Foreign currency transactions are recorded on initial recognition in the
reporting currency, using exchange rate at the date of the transactions. At each
balance sheet date, foreign currency monetary items are reported using the
closing rate. There are no non-monetary items which needs to be reported. An
exchange differences that arise on settlement of monetary items or on reporting
of monetary items at each balance sheet date at the closing rate are:

i) Adjusted in the cost of fixed assets specifically attributable to it, as per
provisions of Accounting Standard 11 issued by Ministry of Corporate
Affairs read with Accounting Standard Rules, 2006 as amended from
time to time.

ii) Recognized as income or expenses in the period in which they arise, in
case other than above.

iii) The Company has taken a External commercial Borrowing from DMG
Mori Finance GMBH for purchase of 5 Axis machine from DMG Mori.

The said loan is secured against the hypothecation of the said asset.

The amount of borrowing is INR 1,59,45,102/- (€ 1,86,870.54). The
borrowing is to be repaid over the period of 61 EMIs.

As per AS-11, the exchange difference arising on account of long-term foreign currency
monetary item in so far as they relate to acquisition of a depreciable capital asset, can be
added to or deducted from the cost of the asset. Accordingly, the foreign exchange
difference arising on account of principal repayment in adjusted in the Cost of the asset.
Similarly, foreign exchange difference arising on account of Interest booked is of revenue
nature and hence, routed through Profit & Loss account.

During the year the company has following Foreign Currency Inflow and outflow: -

Foreign Currency Inflow: - Rs. 2,79,02,929/-
Foreign Currency Outflow: - Rs. 72,06,387/-.

v) In accordance with the requirements of Accounting Standard 17, “Segmental
Reporting”, the company has only one reportable business segment which is a business
of undertaking projects involving Designing and manufacturing of tooling and
automation systems for defense and aviation industry and general-purpose automation
systems. And hence no separate disclosure pertaining to attributable Revenues, profits,
assets, Liabilities and capital employed are given.

w) Certain Trade Receivables, Advances and Trade Payables as at 31^st March, 2024 are
subject to confirmations of balances and reconciliations with the respective parties, the
impact of which is not ascertained. The financial statements do not include the impact of
adjustments, if any, which may arise out of the confirmation and reconciliation process.

x) Lease: - The company has taken the premises on the operating lease and entered into
Leave and License agreement with various parties. An amount of Rs. 1,03,56,206 has
been recognized as Lease/Rent Expense in the statement of Profit & Loss for the year
ended 31^st March, 2024.

y) Deferred Revenue Expenditure: - During the year, the company has recognized the
Deferred Revenue Expenditure amounting to Rs. 2,18,21,117/-. But considering the
nature of expenses and the benefits derived in the current period, company has
debited the same to profit & Loss account during the period.

z) Other Statutory Information: -

1. The company do not have any Benami Property, where any proceeding has been
initiated or pending against the company for holding any benami property.

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

3. The company has not been declared as willful defaulter by any bank or financial
institutions or any other lender.

4. During the audited period, the company has not revalued its Property, Plant and
Equipment.

5. The company have not traded or invested in Crypto Currency or Virtual Currency
during the audited period.

6. The company have not advanced or loan or invested funds to any other person(s) or
entity(ies), including foreign entities (intermediaries) with the understanding that the
intermediaries shall :

i) Directly or indirectly lend or invest in other person or entities identified in any manner
whatsoever by or on behalf of the company. (ultimate beneficiaries); or

ii) Provide any guaranty, security or the like to or on behalf of the ultimate beneficiaries.

7. The company have not received any funds from any person(s) or entity(ies), including
foreign entities (funding party) with the understanding (whether recorded in writing or
otherwise) that the company shall:

i) Directly or indirectly lend or invest in other person or entities identified in any manner
whatsoever by or on behalf of the funding party. (ultimate beneficiaries); or

ii) Provide any guaranty, security or the like to or on behalf of the ultimate beneficiaries.

8. The company have not done any such transaction which is not recorded in the books
of accounts that has been surrendered or disclosed as income during the year in the tax

assessment under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provision of the Income Tax Act, 1961.)

9. Based on the Information available with the company, the company do not have any
transaction with the companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.

10. The remuneration to Auditors includes the following: -

11. The previous year figures are regrouped & rearranged wherever required.
TECHERA ENGINEERING (INDIA) LTD

NIMESH RAMESHCHANDRA DESAI
MANAGING DIRECTOR.