Notes to Accounts of Umiya Buildcon Ltd.

Mar 31, 2025

2.15 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that the Company will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows (when the effect of the
time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be
received and the amount of the receivable can be measured reliably.

Product warranty expenses

The estimated liability for product warranties is recorded when products are sold. These estimates are
established using historical information on the nature, frequency and average cost of warranty claims and
management estimates regarding probable future incidences based on actions on product failures. The
timing of outflows will vary as and when warranty claim will arise.

2.16 Contingent liabilities

Contingent liabilities are disclosed in notes when there is a possible obligation that arises from past
events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the entity.

2.17 Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of
the reporting period.

2.18 Financial instruments

2.18.1 Investment in subsidiaries, associates and joint ventures

The Company has accounted for its investments in subsidiaries, associates and joint ventures at cost
less impairment.

2.18.2 Other financial assets and financial liabilities

Other financial assets and financial liabilities are recognised when Company becomes a party to the
contractual provisions of the instruments.

Initial recognition and measurement:

Other financial assets and financial liabilities are initially measured at fair value. Transaction costs that
are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than

financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from
the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in standalone statement of profit and loss.

Subsequent measurement:

Financial assets at amortised cost Financial assets are subsequently measured at amortised cost if
these financial assets are held within a business whose objective is to hold these assets in order to
collect contractual cash flows and contractual terms of financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these financial assets
are held within business whose objective is achieved by both collecting contractual cash flows on specified
dates that are solely payments of principal and interest on the principal amount outstanding and selling
financial assets.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it measured at amortised cost or fair
value through other comprehensive income on initial recognition. The transaction cost directly attributable to
the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised
in the standalone statement of profit and loss.

Financial liabilities

Financial liabilities are measured at amortised cost using effective interest rate method. For trade and
other payables maturing within one year from the standalone balance sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.

2.18.3 Equity instruments

An equity instrument is a contract that evidences residual interest in the assets of the company after
deducting all of its liabilities. Equity instruments recognised by the Company are recognised at the
proceeds received net off direct issue cost.

2.18.4 Derivative financial instruments and hedge accounting

The Company uses various derivative financial instruments such as interest rate swaps, currency swaps
and forward contracts to mitigate the risk of changes in interest rates and foreign exchange rates. Such
derivative financial instruments are initially recognised at fair value on the date on which a derivative
contract is entered into and are also subsequently measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to the Standalone
Statement of Profit and Loss, except for the effective portion of cash flow hedges which is recognised in
Other Comprehensive Income and later to the Standalone Statement of Profit and Loss when the hedged
item affects profit or loss or treated as basis adjustment if a hedged forecast transaction subsequently
results in the recognition of a non-financial assets or non-financial liability

Hedges that meet the criteria for hedge accounting are accounted for as follows:

a) Cash flow hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging

instruments to mitigate the risk of movement in interest rates and foreign exchange rates for foreign
exchange exposure on highly probable future cash flows attributable to a recognised asset or liability or
forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the
effective portion of changes in the fair value of the derivative is recognized in the cash flow hedging reserve
being part of other comprehensive income. Any ineffective portion of changes in the fair value of the
derivative is recognized immediately in the Standalone Statement of Profit and Loss. If the hedging
relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued
prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or
loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was
effective remains in cash flow hedging reserve until the underlying transaction occurs. The cumulative
gain or loss previously recognized in the cash flow hedging reserve is transferred to the Standalone
Statement of Profit and Loss upon the occurrence of the underlying transaction. If the forecasted transaction
is no longer expected to occur, then the amount accumulated in cash flow hedging reserve is reclassified
in the Standalone Statement of Profit and Loss.

b) Fair value hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging
instruments to mitigate the risk of change in fair value of hedged item due to movement in interest rates,
foreign exchange rates and commodity prices.

Changes in the fair value of hedging instruments and hedged items that are designated and qualify as fair value
hedges are recorded in the Standalone Statement of Profit and Loss. If the hedging relationship no longer
meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the
effective interest method is used is amortised to Statement of Profit and Loss over the period of maturity.

2.19 Exceptional items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve
an understanding of the performance of the company is treated as an exceptional item and the same is
disclosed in the notes to accounts.

2.20 Tax Input credit

Tax input credit is accounted for in the books in the period in which the underlying service received is
accounted and when there is no uncertainty in availing / utilising the credits.

2.21 Operating Cycle

As mentioned in para 1 above under ''Corporate information'', the Company is into development and
manufacture of Electronic products. Based on the normal time between acquisition of assets and their
realisation in cash or cash equivalents, the Company has determined its operating cycle as less than 1
year for manufacturing of products . The above basis is used for classifying the assets and liabilities into
current and non-current as the case may be.

2.22 Key Accounting estimates and judgements

In the application of the Company''s accounting policies, the directors of the Company are required to
make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that
are not readily apparent from other sources. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may differ from
these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future
periods.

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty
at the end of the reporting period that may have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year.

2.22.1 Impairment of non-financial assets

Determining whether the asset is impaired requires to assess the recoverable amount of the asset or
Cash Generating Unit (CGU) which is compared to the carrying amount of the asset or CGU, as applicable.
Recoverable amount is the higher of fair value less costs of disposal and value in use. Where the carrying
amount of an asset or CGU exceeds the recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.

The value in use calculation requires the directors to estimate the future cash flows expected to arise from
the cash-generating unit and a suitable discount rate in order to calculate present value. Where the actual
future cash flows are less than expected, a material impairment loss may arise.

2.22.2 Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected
cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to
the impairment calculation, based on Company''s past history, existing market conditions as well as
forward looking estimates at the end of each reporting period.

2.22.3 Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period.
This assessment may result in change in the depreciation expense in future periods.

2.22.4 Employee Benefits

The cost of defined benefit plans are determined using actuarial valuations. The actuarial valuation involves
making assumptions about discount rates, expected rates of return on assets, future salary increases,
mortality rates and future pension increases. Due to the long-term nature of these plans, such estimates
are subject to significant uncertainty.

2.22.5 Litigations

As explained in note 36, the Company is a party to certain commercial disputes and has also received
notification of claims for significant amounts. There are number of factors that may affect the ultimate
outcome in respect of this matter and accordingly, it is difficult to assess the impact of these disputes with
accuracy.

2.23 Discontinued operations and non-current assets held for sale:

Discontinued operation is a component of the Company that has been disposed of or classified as held for
sale and represents a major line of business., Non-current assets and disposal groups are classified as
held for sale if their carrying amount is intended to be recovered principally through a sale (rather than
through continuing use) when the asset (or disposal group) is available for immediate sale in its present
condition subject only to terms that are usual

and customary for sale of such asset (or disposal group)

and the sale is highly probable and is expected to qualify for recognition as a completed sale within one
year from the date of classification. Non-current assets and disposal groups classified as held for sale are
measured at lower of their carrying amount and fair value less costs to sell.

2.24 Lease

The Company recognises right of use assets under lease arrangements in which it is the lessee. Rights to
use assets owned by third parties under lease agreements are capitalised at the inception of the lease and
recognised on the balance sheet. The corresponding liability to the lessor is recognised as a lease obliga¬
tion. The carrying amount is subsequently increased to reflect interest on the lease liability and reduced by
lease payments made. For calculating the discounted lease liability, the lessee''s incremental borrowing
rate is used. The incremental borrowing rate is calculated at the rate of interest at which the Company
would have been able to borrow for a similar term and with a similar security the funds necessary to obtain
a similar asset in a similar market. Finance costs are charged to the income statement so as to produce
a constant periodic rate of charge on the remaining balance of the obligations for each accounting period.
Variable rents are not part of the lease liability and the right of use asset. These payments are charged to
the income statement as incurred. If modifications or reassessments occur, the lease liability and right of
use asset are re-measured. Right of use assets are depreciated over the shorter of the useful life of the
asset or the lease term.

2.25 Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs
(INR 00,000), except when otherwise indicated.

2.26 Events after Reporting date :

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

2.27 Earning Per Share :

Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus
elements in equity shares issued during the year and excluding treasury shares

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:

-the after income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and

-the weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.

2.28 Fair value Measurement

All assets and liabilities for which fair value is measured and disclosed in the standalone financial state¬
ments are categorised within the fair value hierarchy, described as follows, based on the lowest level inputs
that is significant to the fair value measurement as a whole:

a) Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

b) Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

c) Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable
inputs)

For assets and liabilities that are recognised in the standalone financial statements on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by reassessing
categorisation at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value
hierarchy as explained above.

* The Company has Received an order from the Sole Arbitrator and the Order dated 3rd Nov 2023 State that the
Company to require to Make Payment of Rs.34.15 lakhs Towards Claim and Rs.3.65 lakhs Towards Legal Cost
to Keltron along with Interest @12.75% Per Annum Computed on Monthly Compounding Basis from the Date of
The Order Till The Date of Payment.

** The Company has received an Order From Cestat Towards of Excise duty for the Period January 2008 to
Mar2010.As per the CESTAT Order Rs..58.82 lakhs is Payable Towards Excise duty on Manufacturing against the
same input credit of Rs.466.90 lakhs paid on imported modems has been admitted by CESTAT the Difference of
Rs.121.35 lakhs has to be Paid by the Company and against which is Rs.116.80 lakhs has been paid by MRO-
TEK Under PLA in Earlier Years and Company is Preferring an Appeal against this Order.

*** The Company received an Order-in-Original (OIO) from the GST Department dated 16th December 2022,
pertaining to the GST (CGST & SGST) liability for the period from July 2017 to March 2019. As per the order, a total
demand of ?269.97 lakhs was raised, along with applicable interest and penalty.

Subsequently, the Company filed an appeal before the First Appellate Authority (Commissioner, Appeals-II, Ban¬
galore) via Form APL-01 dated 24th March 2023. Upon review, the Commissioner (Appeals-II) dropped an
amount of Rs 7.01 lakhs with interest and passed the Order-in-Appeal (OIA), confirming the remaining demand
of Rs 262.96 lakhs, along with interest and penalty under Sections 50 and 74 of the CGST/KGST Act, 2017.

The Company is aggrieved by the Order-in-Appeal and intends to prefer an appeal before the GST Appellate
Tribunal (GSTAT). However, as of now, the GSTAT is not functional.,

Note 40

Financial Risk Management Objective And Policies

The Company''s principal financial liabilities comprise Borrowings and Trade payables. The main purpose of
these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets
include Investments, Trade Receivables, Loans, Cash and Cash Equivalents that derive directly from its
operations.

The Company is exposed to the following risks from its use of financial instruments:

- Credit risk

- Liquidity risk

- Interest rate risk

The Company''s board of directors has overall responsibility for the establishment and oversight of the
Company''s risk management framework. This note presents information about the risks associated with its
financial instruments, the Company''s objectives, policies and processes for measuring and managing risk,
and the Company''s management of capital.

The Company''s risk management policies are established to identify and analyse the risk faced by the
Company, to set appropriate risk limits and controls and to monitor risk and adherence to limits. Risk manage¬
ment policies and systems are reviewed regularly to reflect changes in market conditions and Company''s
activities. The Company through its training and management standards and procedures aims to maintain a
disciplined and constructive control environment in which all employee understand their roles and obliga¬
tions.

A. Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from Company''s receivables from customers
and loans.

The Company is exposed to credit risk as a result of the risk of counterparties defaulting on their obligations.
The Company''s exposure to credit risk primarily relates to investments, trade receivable and cash and cash
equivalents. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The
objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assess
the credit quality of the counterparties taking into account their financial condition, past experience and other
factors.

The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings as¬
signed by credit rating agencies.

The Company''s Trade and other receivables are actively monitored to review credit worthiness of the custom¬
ers to whom credit terms are granted and also avoid significant concentrations of credit risks.

Given below is ageing of accounts receivables spread by period of 6 months:

The company continuously monitors defaults of customers and other counterparties , identified either indi¬
vidually or by the group and incorporates this information into its credit risk controls.

Trade receivables consists of large number of customers spread across diverse industries and geographical
areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable and where
appropriate, credit guarantee insurance cover is purchased.

There is no receivable from single external customer outstanding more than 10% of Company''s total revenue
for the year ended 31st March 2025 & for previous year ended 31 March, 2024.

B. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company''s ap¬
proach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to
meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Company''s reputation.

The Company has an appropriate liquidity Risk management framework for the management of short,
medium and long term funding and liquidity management requirements. The Company manages liquidity
risk by maintaining adequate cash reserves, banking facilities, and reserve borrowing facilities by continu¬
ously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and
liabilities.

The Company''s treasury department is responsible for managing the short term and long term liquidity
requirements of the Company, short term liquidity situation is reviewed daily by treasury. Long Term liquidity
position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken
according to the situation.

Typically the Company ensures that it has sufficient cash on demand to meet expected operational ex¬
penses for a period of 60 days, including the servicing of financial obligations, this excludes the potential
impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

c. Market Risk

Market risk is the risk that changes in the market prices, such as foreign exchange rates, interest rates and
equity prices will affect the company''s income or the value of its holdings of the financial instruments. The
objective of market risk management is to manage and control market risk exposures with acceptable param¬
eters, while optimising the return.

The Company is exposed to interest rate risk arises mainly from debt. The Company is exposed to interest rate
risk because the fair value of fixed rate borrowings and the cash flows associated with floating rate borrowings
will fluctuate with changes in interest rates.

The Company is also exposed to foreign currency risk on certain transactions that are denominated in a
currency other than the respective entity''s functional currency hence exposures to exchange rate fluctuations
arise The risk is that functional currency value of cash flows will vary as a result of movements in exchange
rates.

ii) Foreign currency sensitivity analysis

The Company is mainly exposed to currency fluctuation of USD and EUR.

The following table details company''s sensitivity to a 10% increase and decrease in the INR against the
relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated
monetary items and adjusts their transition at the period end for 10% change in foreign currency rates. A
positive numbers below indicates an increase in profit or equity where the INR strengthens 10% against the
relevant currency. For a 10% weakening of the INR against the relevant currency, there would be a comparable
impact on the profit or equity, and the balance below would be negative

D. Capital Management

The Company manages its capital to ensure that Company will be able to continue as going concern while
maximising the return to stakeholders through the optimisation of the debt and equity balance.

The Capital structure of the Company consists of net debt borrowings (Note 18 & Note 21) offset by cash and
bank balances and total equity of the Company.

The Company is not exposed to any externally imposed capital requirements

ii) The Company has no transaction with companies struck off under section 248 of the Companies Act,
2013 or section 560 of the Companies Act, 1956

iii) The Company does not have any Benami property, where any proceeding has been initiated or pending
against for any Benami property.

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

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

vi) 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:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

vii) The Company has not advanced or loaned or invested fund to any person(s) or entity(ies), including
foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that
the Company shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

viii) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of
the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as
amended).

ix) The Company does not have 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 assessments under the Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

x) The Company has not been declared wilful defaulter by any bank or financial institution or government or
any government authority.

Note 47

Code on Social Security, 2020

The Code on Social Security, 2020 which received the President''s assent on September, 2020 subsumes
nine law relating to Social Security, retirement and employee benefits, including the Provident Fund and
Gratuity.

The effective date of the Code and rules thereunder are yet to be notified. The impact of the changes, if any,
will be assessed and recognised post notification of the relevant provisions

Note 48

Amount has been rounded off to nearest Lakhs & decimal thereof.

Note 49

Previous year’s figures have been regrouped / reclassified / restated wherever necessary to correspond
with the current year''s classification/disclosure.

As p^er °ur ^attach^ed r^ep°rt ^{of eve}n da^te _For and on behalf of the Board of Directors

F₀r K.S.Aiy_ar & C_o of Umiya Buildcon Limited

.. (Formerly known as MRO-TEK Realty Limited)

Chartered Accountants

ICAI Firm’s registration number:100186W

Aniruddha Bhanuprasad Mehta Gauri A Mehta

Chairman & Managing Director Director

Deepak Kamath

DIN No. 00720504 DIN No. 00720443

Partner

Membership Number : 218292

Place : Bengaluru ^{V Vannirajan Prashanth S}

_{Date: 29-04-2025} Chief Financial Officer ^Comp^any ^Secretary ^and

Compliance Officer

---

Mar 31, 2024

* Term Loan - loan against property/ Lease rental discounting sanctioned by HDFC Bank ltd is secured against the mortgage piece and parcel of the property bearing unit no. SF 06, Muncipal Katha no. 140/17/338/5, with a super built up area of 68,480 sq.ft & proportionate share in the common area along with 107 car parking spaces in the building known as Umiya Vellociti & 10,033.29 sq.ft of undivided share in the property bearing Muncipal no. 104/17/338, erstwhile survey no 54/2, 54/1. 50/6 & part of survey no.54/3, 53/2 and 53/1, situated at Hebbal village kasaba hobli, Bengaluru.

The rate of interest is 8.50% to 8.65% Per Annum (Previous year rate of interest is 8.50% Per Annum)

# Term Loan - loan against property/ Lease rental discounting sanctioned by Bajaj housing finance ltd is secured against the mortgage of land and building at Katha no. 140/17/338, formed in survey no 54/2, 54/1. 50/6 & 54/8 and part of survey no.54/ 3, 53/2 and 53/1, measuring 32,595 sq.ft of the salable super built up area constituting the portion of ground floor of the complex - umiya velociti.

The rate of interest is 7.50% to 10.00% Per Annum (Previous year 7.50% to 10.00% Per Annum)

''*** The company has availed a working capital term loan of Rs. 3 cr to meet out liquidity mismatch in lieu of Covid - 19 Crisis under " BOB Guaranteed Emergency credit line" Scheme(BGECLS) from Bank of Baroda against hypothication of land and building.

The rate of interest is 7.00% to 11.00% Per Annum (Previous year 7.00% to 11.00% Per Annum).

**The company has availed assistance under raw material assistance scheme from NSIC against the security of Bank Guarantee.

The rate of interest is 8.80% to 10.55% Per Annum (Previous year 8.80% to 10.55% Per Annum)

*** Term Loan - loan against property/ Lease rental discounting sanctioned by HDFC Bank ltd is secured against the mortgage piece and parcel of the property bearing unit no. SF 06, Muncipal Katha no. 140/17/338/5, with a super built up area of 68,480 sq.ft & proportionate share in the common area along with 107 car parking spaces in the building known as Umiya Vellociti & 10,033.29 sq.ft of undivided share in the property bearing Muncipal no. 104/17/338, erstwhile survey no 54/2, 54/1. 50/6 & part of survey no.54/3, 53/2 and 53/1, situated at Hebbal village kasaba hobli, Bengaluru.

The rate of interest is 8.50% to 8.65% Per Annum (Previous year rate of interest is 8.50% Per Annum)

*The company has received an order from The Sole Arbitrator and the order dated 3rd November 2023 states that the Company to required to make payment of Rs 28,56,178/- towards claim and Rs. 3,65,000/- towards Legal cost to KELTRON along with interest @12.75% per annum computed on monthly compounding basis from the date of the order till the date of payment.

**The company has received an order from CESTAT towards Excise Duty for the period January 2008 to March 2010. As per the CESTAT order Rs.5,88,26,035/- is payable towards

excise duty on manufacturing. Against the same input credit of Rs. 4,66,90,550/- paid on imported modems has been admitted by CESTAT. The difference of Rs. 1,21,35,485/- has to be

paid by the company and Against which Rs. 1,16,79,843/- has been paid by MRO-Tek under PLA in earlier years and Company is preferring an appeal against this order

Note 37

Segment Reporting

Disclosures pursuant to IND AS 108 prescribed under the Act are Primary Segment

The Company’s primary business segments are Products, Real Estate Development, EMS (Electronic Contract Manufacturing), Solutions (IT & Drone segment has been merged with Solutions segment).

Secondary Segment

The Company’s secondary segment is determined based on location of customers / export destinations (Geographical Segment).

The segment revenue in the geographical segments for disclosure are as follows:

Revenue within India includes sales to customers located within India and earnings in India.

Note 38

Financial Risk Management Objective And Policies

The Company’s principal financial liabilities comprise Borrowings and Trade payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include Investments, Trade Receivables, Loans, Cash and Cash Equivalents that derive directly from its operations.

The Company is exposed to the following risks from its use of financial instruments:

- Credit risk

- Liquidity risk

- Interest rate risk

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

This note presents information about the risks associated with its financial instruments, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital.

The company''s risk management policies are established to identify and analyse the risk faced by the company, to set appropriate risk limits and controls and to monitor risk and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and group''s activities.

The company through its training and management standards and procedures aims to maintain a disciplined and constructive control environment in which all employee understand their roles and obligations.

A. Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from company''s receivables from customers and loans.

The Company is exposed to credit risk as a result of the risk of counterparties defaulting on their obligations. The Company’s exposure to credit risk primarily relates to investments, trade receivable and cash and cash equivalents. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assess the credit quality of the counterparties taking into account their financial condition, past experience and other factors.

The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by credit rating agencies.

The companies Trade and other receivables are actively monitored to review credit worthiness of the customers to whom credit terms are granted and also avoid significant concentrations of credit risks

The company continuously monitors defaults of customers and other counterparties , identified either individually or by the group and incorporates this information into its credit risk controls.

Trade receivables consists of large number of customers spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable and where appropriate, credit guarantee insurance cover is purchased.

There is no receivable from single external customer outstanding more than 10% of companies total revenue for the year ended 31st March 2024 & for previous year ended 31 March, 2023.

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

The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s reputation.

The Company has an appropriate liquidity Risk management framework for the management of short, medium and long term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate cash reserves, banking facilities, and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Company''s treasury department is responsible for managing the short term and long term liquidity requirements of the company, short term liquidity situation is reviewed daily by treasury. Long Term liquidity position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken according to the situation.

Typically the company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations, this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

Maturities of financial liabilities

The table below provides details regarding the contractual maturities of significant financial liabilities as at 31 March, 2024 & 31 March, 2023.

Market risk is the risk that changes in the market prices, such as foreign exchange rates, interest rates and equity prices will affect the company''s income or the value of its holdings of the financial instruments. The objective of market risk management is to manage and control market risk exposures with acceptable parameters, while optimising the return.

The Company is exposed to interest rate risk arises mainly from debt. The Company is exposed to interest rate risk because the fair value of fixed rate borrowings and the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates.

The Company is also exposed to foreign currency risk on certain transactions that are denominated in a currency other than the respective entity''s functional currency hence exposures to exchange rate fluctuations arise The risk is that functional currency value of cash flows will vary as a result of movements in exchange rates.

ii) Foreign currency sensitivity analysis

The Company is mainly exposed to currency fluctuation of USD and EUR.

The following table details company''s sensitivity to a 10% increase and decrease in the INR against the relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their transition at the period end for 10% change in foreign currency rates. A positive numbers below indicates an increase in profit or equity where the INR strengthens 10% against the relevant currency. For a 10% weakening of the INR against the relevant currency, there would be a comparable impact on the profit or equity, and the balance below would be negative

Note 39

Capital Management

The Company manages its capital to ensure that company will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.

The Capital structure of the company consists of net debt borrowings (Note 18 & Note 21) offset by cash and bank balances and total equity of the company.

The Company is not exposed to any externally imposed capital requirements

ii) The Company has no transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956

iii) The Company does not have any Benami property, where any proceeding has been initiated or pending against for any Benami property.

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

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

vi) 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:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

vii) The Company has not advanced or loaned or invested fund to any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

viii) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

ix) The Company does not have 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 assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

x) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

Note 46

Code on Social Security, 2020

The Code on Social Security, 2020 which received the President''s assent on September, 2020 subsumes nine law relating to Social Security, retirement and employee benefits, including the Provident Fund and Gratuity.

The effective date of the Code and rules thereunder are yet to be notified. The impact of the changes, if any, will be assessed and recognised post notification of the relevant provisions

Note 47

Amount has been rounded off to nearest Lakhs & decimal thereof.

Corporate Social Responsibility (CSR) under the Companies Act, 2013, emphasises the role of business in contributing to Social welfare. By engaging in meaning CSR activities, Companies can make a positive impact on society while ensuring sustainable development and responsible business practices and as explained above, Board of Directors are pleased to inform that it has fulfiled its CSR obligation for the financial year 2022-23. The Company has spent the required 2% of its average net profits of the preceding 3 years into various CSR activities in alignment with the provisions of the Companies Act, 2013.

CSR provisions are not applicable to the Company for the financial year 2023-2024.

Note 49

Previous year’s figures have been regrouped / reclassified / restated wherever necessary to correspond with the current year''s classification/disclosure.

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Mar 31, 2018

Note No. 1 General Information

MRO-TEK Realty Limited (formerly known as MRO-TEK Limited) was incorporated in the year 1984. The Company''s core business activity is manufacture and supply, as well as distribution of Access and Networking equipment & Solutions. The Company entered into real estate segment during the year 2016. The Company''s name has been changed to MRO-TEK REALTY LIMITED with effect from May 11, 2016 and the registered office of the company is shifted to No 6, “ Maruthi Complex “, New BEL Road, Chikkamaranahalli, Bengaluru - 560054 on May 12,2016.

The Equity shares of the Company are listed in Bombay Stock Exchange of India, Mumbai and National Stock Exchange of India Limited, Mumbai.

Note No. 2B First-time adoption - mandatory exceptions, optional exemptions

2B.1 Overall principle

The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2016 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the certain exception and certain optional exemptions availed by the Company as detailed below.

2B.2 Derecognition of financial assets and financial liabilities

The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after April 1, 2016 (the transition date).

2B.3 Deemed cost for property, plant and equipment, investment property, and intangible assets

The Company has elected to continue with the carrying value of all items of its plant and equipment, investment property, and intangible assets recognised as of April 1, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

2B.4 Determining whether an arrangement contains a lease

The Company has applied Appendix C of Ind AS 17 Determining whether an Arrangement contains a Lease to determine whether an arrangement existing at the transition date contains a lease on the basis of facts and circumstances existing at that date.

Balance in Margin Money Deposit are held as security against borrowings, guarantees and commitments Restricted cash balances include the following

* Balance in curren account/s, payable against unclaimed dividend

** FD''s totalling to Rs. 35 lacs ( previous year - Rs. 20 lacs) offered as 100% margin money, against LC''s & Guarantees, availed from the bank.

* Asset backed drop down Over Draft limits sanctioned by State Bank of India are secured against hypothecation of Book Debts , Inventory and also a first charge on all fixed assets of the Company, movable & immovable as collateral security. **Short Term Loan or already borrowed amount from Mr. Aniruddha Bhanuprasad Mehta at a revised rate of 10.05% p.a. with effect from 1^st Jan, 2018, which is lower by 0.20% of the prevailing bank base rate i.e.10.25 %.

* Current Year - Rs. 2,36,394/- was credited to Investor Education Protection Fund as at 26th July, 2017 (During the previous year an amount of Rs.2,27,449/- was credited to Investor Education and Protection Fund as at 14.07.2016) **Current Year - Nil ( Previous Year - Represents a sum of Rs 9 crore as non refundable deposit received as per supplementary agreement dated January 04, 2016, pending the recognition to the Statement of Profit and Loss Account.)

*Central Excise Duty of Rs.4,66,90,550/- was demanded by the dept., for the value Addition ''work done to the imported goods at the Trading unit of the Company during the FY2010-11. Company has filed an appeal before CESTAT and matter is pending before the appellate '' authority.

** Amount excludes Interest of Rs 6,30,32,243 up to March 31, 2018 (Rs 5,60,28,660 up to March 31, 2017) Duty that may become payable in the event of adverse judicial pronouncement.

Segment Reporting

Disclosures pursuant to IND AS 108 prescribed under the Act are

Primary Segment

The Company''s primary business segments are Products, Real Estate Development, EMS(Electronic Contract Manufacturing), Solutions

Secondary Segment

The Company''s secondary segment is determined based on location of customers / export destinations (Geographical Segment).

The segment revenue in the geographical segments for disclosure are as follows:

Revenue within India includes sales to customers located within India and earnings in India.

Revenue outside India includes sales to customers located outside India and earnings outside India.

Financial Risk Management Objective And Policies

The Company''s principal financial liabilities comprise Borrowings and Trade payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include Investments, Trade Receivables, Loans, Cash and Cash Equivalents that derive directly from its operations.

“The Company is exposed to the following risks from its use of financial instruments:

- Credit risk

- Liquidity risk

- Interest rate risk”

“The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note presents information about the risks associated with its financial instruments, the Company''s objectives, policies and processes for measuring and managing risk, and the Company''s management of capital. The company''s risk management policies are established to identify and analyse the risk faced by the company, to set appropriate risk limits and controls and to monitor risk and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and group''s activities. The company through its training and management standards and procedures aims to maintain a disciplined and constructive control environment in which all employee understand their roles and obligations. “

A. Credit Risk

“Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from company''s receivables from customers and loans. The Company is exposed to credit risk as a result of the risk of counterparties defaulting on their obligations. The Company''s exposure to credit risk primarily relates to investments, trade receivable and cash and cash equivalents. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assess te credit quality of the counterparties taking into account their financial condition, past experience and other factors.”

The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by credit rating agencies.

The companies Trade and other receivables are actively monitored to review credit worthiness of the customers to whom credit terms are granted and also avoid significant concentrations of credit risks.

The company continuously monitors defaults of customers and other counterparties , identified either individually or by the group and incorporates this information into its credit risk controls

Trade receivables consists of large number of customers spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable and where appropriate, credit guarantee insurance cover is purchased.

There is no receivabe from single external customer outstanding more than 10% of companies total revenue for the year ended 31 March, 2018

B. Liquidity risk

“Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s reputation. The company has an appropriate liquidity Risk management framework for the management of short, medium and long term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate cash reserves, banking facilities, and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.”

The company''s treasury department is responsible for managing the short term and long term liquidity requirements of the company, short term liquidity situation is reviewed daily by treasury. Long Term liquidity position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken according to the situation.

Typically the company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations, this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

Market risk

“Market risk is the risk that changes in the market prices, such as foreign exchange rates, interest rates and equity prices will affect the company''s income or the value of its holdings of the financial instruments. The objective of market risk management is to manage and control market risk exposures with acceptable parameters, while optimising the return. The company is exposed to interest rate risk arises mainly from debt. The company is exposed to interest rate risk because the fair value of fixed rate borrowings and the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates. The company is also exposed to foreign currency risk on certain transactions that are denominated in a currency other than the respective entity''s functional currency hence exposures to exchange rate fluctuations arise The risk is that functional currency value of cash flows will vary as a result of movements in exchange rates.”

ii) foreign currency sensitivity analysis

The company is mainly exposed to currency fluctuation of USD and YEN.

The following table details company''s sensitivity to a 10% increase and decrease in the INR against the relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their transition at the period end for 10% change in foreign currency rates. A positive numbers below indicates an increase in profit or equity where the INR strengthens 10% against the relevant currency. For a 10% weakening of the INR against the relevant currency, there would be a comparable impact on the profit or equity, and the balance below would be negative.

Cash flow sensitivity analysis for variable rate instruments

A change of 100 basis points in interest rates at the reporting date would have (increased) / decreased equity and profit or loss by the amounts shown below . This analysis assumes that all other variables, in particular foreign currency rates remains constant .

Capital Management

The company manages its capital to ensure that company will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.

The Capital structure of the company consists of net debt borrowings (Note 21) offset by cash and bank balances (Note 11a and 11b) and total equity of the company.

The company is not exposed to any externally imposed capital requirements

Notes on accounts and other explanatory information

a) Revenue from operations for the current year (FY 2017-18) includes an amount of Rs. 1383.75 Lakhs from the sale of super built up area under construction in line with Development Agreement dated dated 1st January 2016 vide SYNo.54/2, 54/1, 50/6 & 56/ situated Bellary Road, Hebbal.

Revenue from operations for the previous year (FY 2016-17) includes an amount of Rs. 900 Lakhs from real estate development by virtue of recognition of deposit, given by developer, consequent to fulfillment of obligations by the company as per supplementary agreement dated 4th Janyary 2016 and waiver of right to claim refund of same as per the memorandum of understanding entered with the developer on 8th August, 2016.

b) Disclosure under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED):

Dues in respect of, Micro and Small enterprises who have duly registered themselves under the relevant Act and furnished the statutorily required proof thereof, are being regularly met as per agreed terms. Disclosures as required under MSMED are:

The Company''s financial statements for the year ended 31 March 2016 are prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015 in accordance with the accounting policies notified in Note 1. The adoption of Ind AS has been carried out in accordance with Ind AS 101, with April 1, 2016 as the transition date. In accordance with Ind AS 101, the resulting difference between the carrying amounts of the assets and liabilities in the financial statements under both Ind AS and Indian GAAP as at the transition date have been recognized directly in equity at the transition date. An explanation of how the transition from previous GAAP to Ind AS has affected the financial position, financial performance and cash flows is set out in the following notes:

A. Exceptions:

1) Estimates exception: Upon an assessment of the estimates made under Indian GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where estimates were required by Ind AS and not required by Indian GAAP.

2) The Company has classified financial assets in accordance with Ind AS 109 on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

B. Exemptions:

Ind AS 101 allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

1) The Company has elected to apply the deemed cost option available under Para D7AA of Ind AS 101 i.e. all items of property, plant and equipment have been recognised in the financial statements as at the date of transition to Ind AS at the carrying value measured as per previous GAAP. The same election has been made in respect of Intangible assets.

D. Notes to first time adoption

Note 1 Reclassification of actuarial gains and losses on employee benefit expenses

Under Indian GAAP, actuarial gains and losses relating to post employment benefit plans are charged to profit and loss. Under Ind-AS, remeasurements comprising of actuarial gains and losses are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

Note 2 Deferred tax impact on Ind AS adjustments

Under IGAAP, deferred tax is recognised using the income statement approach i.e. the tax effect of timing differences between accounting income and taxable income for the period. Under Ind AS, the Company has recognised deferred taxes using the balance sheet approach i.e. reflecting the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for taxation purposes.

Note 3 Excise duty

Under IGAAP, revenue from sale of goods is presented net of excise duty on sales. Under Ind AS revenue from sale of goods is presented inclusive of excise duty. Excise duty is presented in statement of profit and loss as an expense.

Note 4 Under Ind AS financial assets and liabilities are measured at fair value at the inception and subsequently at amortised cost or at fair value based on their classification.

Under I-GAAP the financial assets and liabilities were measured at cost.

Note 5 The previous year I-GAAP figures have been reclassified/regrouped to make them comparable with Ind AS presentation.

Note 3 Standards issued but not yet effective

Ind AS 115 - Revenue from contracts with customers. Ind AS 115 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition standards Ind AS 11 and Ind AS 18 This standard will come into force from accounting period commencing on or after 1 April 2018. The Company will adopt the standard on the required effective date.

Note 4 Exceptional Item

a Disposal of investments in RAD MRO Manufacturing Private Limited.

During the year the company has realised amounting to Rs 165.34 Lakhs from RAD MRO Manufacturing Private Limited, The investments in the said equity instruments were disposed due to the dissolution of the board of RAD MRO Manufacturing Private Limited on 31st July 2017. The resultant gain on this amounts to Rs 92.83 Lakhs.

b During the year the company has impaired assets amounting to Rs 7.66 Lakhs ( Previous year Rs 48.21 Lakhs) .

c Retrenchment compensation expenditure incurred during the year Rs Nil ( Previous year Rs 45 Lakhs)

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Mar 31, 2016

Corporate Information

MRO-TEK Realty Limited (formerly known as MRO-TEK Limited) was incorporated in the year 1984. The Company''s core business activity is manufacture and supply, as well as distribution, of Access and Networking equipment & Solutions.

The manufacture and supply of Solar Products and undertaking of Solar Power projects is being discontinued with effect from January 14, 2016.

The Company entered into Development Agreement on January 1, 2016 for the real estate development situated at Hebbal, Bellary Road, Bangalore. The Company sought the approval from shareholders to include the real estate development as one of the main objects of the Company. With this, the Company has two primary business segments, i.e "Access and networking equipment & Solutions" and "Real estate development".

The name of the Company is being changed from MRO-TEK Limited to MRO-TEK Realty Limited with effect from May 11, 2016. Further, to facilitate the development of real estate at Hebbal, the corporate office and registered office is shifted to No 6, " Maruthi Complex ", New BEL Road, Chikkamaranahalli, Bangalore - 560054.

The Equity shares of the Company are listed in BSE Limited, Mumbai and National Stock Exchange of India Limited, Mumbai.

II. Notes on accounts and other explanatory information

(a) Revenues from Sale of Solar Based Equipment and projects during the year was Rs.7, 45, 70,151/- (P.Y: Rs.15, 21, 27,938/-). This includes a sum of Rs. NIL (Rs. NIL) being the Central Financial assistance receivable from the Ministry of Non Renewable Energy (MNRE) on supply of such equipment and projects.

(b) Certain balances representing trade receivables and trade payables are subject to reconciliation and receipt of confirmations from parties, pursuant to confirmation requests sent by the Company.

(e) ''Upkeep & Maintenance expenses'' reflected in Note - 24 includes Repairs to Building - Rs.26,33,333/-(P.Y: Rs.20,45,183/-) and Repairs to Machinery - Rs.3,33,561/- (P.Y: Rs.4,53,240/-).

(g) Segment Reporting

Disclosures pursuant to Accounting Standard 17 prescribed under the Act are:

Primary Segment

The Company''s primary business segment is ''Access & Networking products'' and Real Estate Development''.

Secondary Segment

The Company''s secondary segment is determined based on location of customers / export destinations (Geographical Segment).

The segment revenue in the geographical segments for disclosure are as follows:

- Revenue within India includes sales to customers located within India and earnings in India.

- Revenue outside India includes sales to customers located outside India and earnings outside India.

(h) Related Party Disclosure

Disclosures pursuant to Accounting Standard 18 prescribed under the Act are: A. Relationships:

(i) RAD-MRO Manufacturing Private Limited - Joint Venture Company

(ii) Whole time Directors:

S. Narayanan, Chairman & Managing Director H. Nandi, Managing Director

(j) Accounting for Taxes on Income

Deferred Tax

During the year, the Company has accounted for Rs. 87,733/- (Rs. 8,26,237/- Deferred Tax Asset) towards deferred tax liability and has considered the same to the statement of profit and loss as stipulated under Accounting Standard 22, on "Accounting for Taxes on Income", prescribed under the Act. However, on conservative basis, deferred tax asset on carry forward losses, has not been considered.

(k) Intangible Assets

- The Company has in-house R & D Centre involved in developmental activities for new products in the fields of Access & Networking technology.

- Details of Capital Expenditure incurred, is provided under Note 10 relating to Fixed Assets.

(l) Interest in Joint Ventures

Disclosure of interest in respect of RAD-MRO Manufacturing Private Limited as required under Accounting Standard 27:

FY 15-16 numbers are based upon unaudited financials of RAD-MRO Manufacturing Private Limited.

(m) Impairment of Assets

Consequent to the development agreement entered in to with M/s. Umiya Builders and Developers on 1^st January, 2016 for commercial development of the Company''s property at Hebbal, an impairment loss of Rs.7,56,59,286 is recognized for corporate building.

Further an amount of Rs.5, 06,077/- has been recognized as impairment loss towards assets related to solar business.

(n) Provisions and Contingent Liabilities

- Provision reversal has been made for an amount of Rs. 5,56,60,604/- (P.Y: provision Rs. 10,00,000/-) in respect of certain items of non moving / slow-moving inventory, based on Generally Accepted Accounting Practices, since these items continue to be usable and / or salable in the activities of the Company.

- With respect to Access & Networking products, no provision has been made for post-sales support expenses, as the Company is of the opinion that such expenses are not material, based on past experience.

- With regard to products related to Solar Based Equipments & Projects, the Company transferred the warranty support obligations to Mr. H. Nandi, the promoter of the company.

* Central Excise Duty of Rs.4,66,90,550/- was demanded by the dept., for the value Addition work done to the imported goods at the Trading unit of the Company during the FY 2010-11. Company has filed an appeal before CESTAT and matter is pending before the appellate authority.

(o) Joint Development on Hebbal land:

The Company has entered into a Development Agreement with a developer, dated January 01, 2016, for development of its land situated at Hebbal admeasuring 3 Acres 11.998 Guntas purported to be developed as a commercial complex.

This arrangement is duly approved by the shareholders through postal ballot on December 22, 2015. The land has been converted to stock-in-trade and classified as current assets in the Balance Sheet.

The Company and developer shall enter into and execute a Sharing Agreement between them on or before 30 days from the date of obtaining of the plan sanction and commencement certificate from Bruhat Bangalore Mahangara Palika (BBMP) which is yet to be obtained.

(q) Conversion of fixed assets to stock- in trade:

As per the resolution passed in the Board meeting held on January 14, 2016, the Company has decided to convert the land situated at Hebbal in to Stock-in-trade. The land has converted at carrying cost of Rs 5,05,23,211 (PY Rs 5,05,23,211) and disclosed under "Inventory". The same has disclosed under primary business segment "Real estate development".

(r) Exceptional items:

The Company has written off Rs 1,74,30,988/- (PY Rs Nil) on account of inventory obsolescence.

(s) Extraordinary items:

The Company has recognized following under extraordinary items under Statement of Profit and Loss Account:

(i) Following the discontinuance of "Solar Based Equipment & Projects", the Company has entered into amicable arrangement with employees to downsized its direct labour to production. The Company has adequately discharged the legal obligation to all employees who voluntarily opted alternative employment opportunity outside the Company.

(ii) Following the addition of new primary business segment "Real estate development" and conversion of corporate building land at Hebbal to Inventory, the Company has impaired the building and fully expensed off the carrying amount of building (as on December 31, 2015) as impairment loss.

(iii) Following the discontinuance of "Solar Based Equipment & Projects", the Company has impaired the Fixed assets relating to discontinued business and fully expensed off the carrying amount of asset as impairment loss.

(t) Share purchase agreement

The promoters of the Company entered into Share Purchase agreement with Umiya Group on May 19, 2016 to sell their controlling shares in the Company. The detailed public statement has been published to this effect.

(u) Statutory compliance

The Company has not discharged Tax Deducted at Source under section 192 of the Companies Act 1961 on taxable employee compensation Rs 39,76,330. The Company would discharge the obligation with interest during next financial year 2016-17.

(v) Figures for the year have been rounded-off to the nearest rupee and, those in the brackets, wherever given, correspond to respective figures for the previous year. Figures of previous year have been regrouped & reclassified, wherever necessary.

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Mar 31, 2015

EXPLANATORY INFORMATION

(a) Revenues from Sale of Solar Based Equipment and projects during the year was Rs. 15,21,27,938/- (P.Y: Rs.24,87,17,338/-). This includes a sum of Rs. NIL (Rs. 2,42,23,243/-) being the Central Financial assistance receivable from the Ministry of Non Renewable Energy (MNRE) on supply of such equipment and projects.

(b) Certain balances representing trade receivables and trade payables are subject to reconciliation and receipt of confirmations from parties, pursuant to confirmation requests sent by the Company. Trade Receivables includes a sum of Rs. NIL (P.Y: Rs. 2,96,18,165/-) being the Central Financial Assistance receivable from the Ministry of Non Renewable Energy (MNRE) on the supply of Solar based Equipments and Projects.

(c) Disclosure under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED):

Dues in respect of, Micro and Small enterprises who have duly registered themselves under the relevant Act and furnished the statutorily required proof thereof, are being regularly met as per agreed terms. Disclosures as required under MSMED are:

(d) Segment Reporting

Disclosures pursuant to Accounting Standard 17 prescribed under the Act are:

Primary Segment

The Company''s primary business segment is ''Access & Networking products'' and ''SBEP products''.

Secondary Segment

The Company''s secondary segment is determined based on location of customers / export destinations (Geographical Segment).

The segment revenue in the geographical segments for disclosure are as follows:

- Revenue within India includes sales to customers located within India and earnings in India.

- Revenue outside India includes sales to customers located outside India and earnings outside India.

(e) Related Party Disclosure

Disclosures pursuant to Accounting Standard 18 prescribed under the Act are: A. Relationships:

(i) RAD-MRO Manufacturing Private Limited - Joint Venture Company

(ii) Whole time Directors -

f. Narayanan, Chairman & Managing Director H. Nandi, Managing Director

(g) Accounting for Taxes on Income

Deferred Tax

During the year, the Company has accounted for Rs. 8,26,237/- (Rs. 8,29,143/- Deferred Tax Asset) towards deferred tax liability and has considered the same to the statement of profit and loss as stipulated under Accounting Standard 22, on "Accounting for Taxes on Income", prescribed under the Act. However, on conservative basis, deferred tax asset on carry forward losses, has not been considered.

(h) Impairment of Assets

During the year the Company has capitalised development cost incurred in house towards development of certain products as an intangible asset aggregating to Rs. 81,61,802/- (P.Y: Rs. Nil). However, based on the market condition at the end of the year, the Company has impaired such intangible asset fully by transferring the same to statement of profit and loss.

(i) Provisions and Contingent Liabilities

- Provision has been made for an estimated amount of Rs 10,00,000/- (P.Y: Rs. 2,65,00,000/-) in respect of certain items of non moving / slow-moving inventory, based on Generally Accepted Accounting Practices, even though these items continue to be usable and / or salable in the activities of the Company.

- Inventories includes a sum of Rs. NIL (P.Y: Rs.1,38,43,660/-) being slow moving stock beyond 1 year not provided for.

- With respect to Access & Networking products, no provision has been made for post-sales support expenses, as the Company is of the opinion that such expenses are not material, based on past experience.

- With regard to the newly introduced products related to Solar Based Equipments & Projects, the Company has back-to-back arrangements towards warranty support with the original suppliers'', hence the Company is of the opinion that no additional provision is required to be made in the book of accounts for post-sale support expenses.

Contingent liabilities Amount in Rs.

Particulars 31 March 2015 31 March 2014

Counter Guarantees to Bank (to the extent of live guarantees issued by bank) 73,55,088 2,44,75,041

Letters of Credit 23,88,300 5,73,07,215

Capital Commitments 50,00,000 1,80,00,000

Sales tax liability in lieu of Form ''C'' yet to be received 2,13,45,448 1,50,39,644

Disputed Central Excise Duty 4,66,90,550 4,66,90,550

(o) Figures for the year have been rounded-off to the nearest rupee and, those in the brackets, wherever given, correspond to respective figures for the previous year. Figures of previous year have been regrouped & reclassified, wherever necessary.

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Mar 31, 2013

1 Corporate Information

MRO-TEK Limited was incorporated in the year 1984. The Company is engaged in the activity of manufacture and supply, as well as distribution, of Access and networking equipment & solutions. During the year, as a means of product diversification, the company commenced full-fledged commercial operations in manufacture and supply of Solar Based Equipment & Products (SBEP).

The Equity shares of the Company are listed in Bombay Stock Exchange of India, Mumbai and National Stock Exchange of India Limited, Mumbai.

1. Deferred Tax:

During the year, the Company has accounted for Rs.6,24,200 (Rs.5,56,029 Deferred Tax Liability) towards Deferred Tax Asset and has considered the same as reverse charge to the Profit & Loss account as stipulated under Accounting Standard- 22, on "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India. However, on conservative basis, deferred tax asset on carry forward business losses, has not been considered.

2. Exceptional Item of Rs. 1,51,71,384, is on account of profit on acquisition of assets, representing, receipt of compensation from National Highway Authority of India, consequent upon acquisition of a portion of Land belonging to the Company.

3. Inventories:

Finished Goods includes Rs.31,98,885 (Rs.35,81,373), being value of material at prospective customers'' premises for demonstration purposes.

4. Disclosure under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 :

Dues in respect, Micro and Small enterprises who have duly registered themselves under the relevant Act, and furnished the statutorily required proof thereof, are being regularly met as per agreed terms and, as such, there remains no liability towards interest. Principal amount/s remaining payable in respect of such parties, as at 31 March 2013, amount to Rs.16,61,366 (Rs.24,16,911).

5. Revenues from Sale of Solar Based Equipment and Projects during the year was Rs 15,05,95,994. This includes a sum of Rs.2,02,19,122 being Central Financial assistance receivable from the Ministry of Non Renewable Energy (MNRE) on supply of such equipment and projects.

6. Certain balances representing debtors and creditors, are subject to reconciliation & receipt of confirmations from parties, pursuant to confirmation requests sent by the company. Sundry debtors includes a sum of Rs.2,02,19,122 being Central financial assistance receivable from the Ministry of Non Renewable Energy (MNRE) on the supply of Solar Based Equipment and Projects.

7. ''Upkeep & Maintenance expenses'' reflected in Note - 24 includes Repairs to Building - Rs.53,86,091 (Rs.29,14,685) and Repairs to Machinery - Rs.9,37,550 (Rs.15,06,992).

8. No provision has been made for post-sales support expenses, with respect to Access & Networking products, as the company is of the opinion that such expenses are not material, based on past experience.

With regard to the newly introduced products related to Solar Based Equipment & Projects, the Company has back-to-back arrangements towards warranty support with the original suppliers'', hence the Company is of the opinion that no additional provision is required to be made in the book of accounts for post-sale support expenses.

9. Inventories includes a sum of Rs. 2,76,96,729 being slow moving stock beyond 1 year not provided for.

10. Provision has been made for an estimated amount of Rs.500 lacs (Previous year Rs.400 lacs) in respect of certain items of non moving/slow-moving inventory, based on Generally Accepted Accounting Practices and estimates by the company.

Equipment & Projects (SBEP). As such and based on the guiding principles given in Accounting Standard on ''Segment Reporting'' (AS 17) prescribed by the Companies (Accounting Standards) Rules 2006, the Company''s primary business segments for the purposes of Segment Reporting constitutes ''Access & Networking products'' and ''SBEP products''. The secondary segment of the Company is based on location of customers''/export destinations. The segment revenue in the geographical segments for disclosure are as follows:

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

11. Related Party Disclosure

Related party disclosures, as required by AS-18: (i) RAD-MRO Manufacturing Private Limited (ii) S Narayanan (iii) H Nandi

A. Relationships:

(i) RAD-MRO Manufacturing Private Limited - Joint Venture Company

(ii) Whole time Directors -

S. Narayanan H. Nandi

Chairman & Managing Director Managing Director

B i). The following transactions were carried out with RAD-MRO Manufacturing Private Limited, the Joint Venture Company in the ordinary course of business.

12. Research and Development

The Company has in-house R&D Centre involved in developmental activities for new products in the fields of Access & Networking technology.

13. Figures for the year have been rounded-off to the nearest rupee and, those in the brackets, wherever given, correspond to respective figures for the previous year.

Figures of previous year have been regrouped & reclassified, wherever necessary.

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Mar 31, 2012

1. Deferred Tax:

During the year, the Company has accounted for Rs.5,56,029 (Rs.45,87,803 Deferred Asset) towards Deferred Tax liability and has considered the same as charge to the Profit & Loss account as stipulated under Accounting Standard- 22, on "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India. However, on conservative basis, deferred tax asset on carry forward business losses, has not been considered.

2. Inventories:

Finished Goods includes Rs.35,81,373 (Rs.38,25,203), being value of material at prospective customers' premises for demonstration purposes.

3. Disclosure under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 :

Dues in respect, Micro and Small enterprises who have duly registered themselves under the relevant Act, and furnished the statutorily required proof thereof, are being regularly met as per agreed terms and, as such, there remains no liability towards interest. Principal amount/s remaining payable in respect of such parties, as at 31 March 2012, amount to Rs.24,16,911 (Rs.47,42,858)

4. Certain balances representing debtors and creditors, are subject to reconciliation & receipt of confirmations from parties, pursuant to confirmation requests sent by the company.

5. 'Upkeep & Maintenance expenses' reflected in Note - 24 includes Repairs to Building - Rs.29,14,685 (Rs.48,56,471) and Repairs to Machinery - Rs.15,06,992 (Rs.12,54,169).

6. No provision has been made for post-sales support expenses, as the company is of the opinion that such expenses are not material, based on past experience.

7. Provision has been made for an estimated amount of Rs 400 lakhs in respect of certain items of slow- moving inventory, based on Generally Accepted Accounting Practices, even though these items continue to be usable in the activities of the company.

8. Contingent liabilities on account of

Amount in Rs.

2011-2012 2010-2011

Counter Guarantees to Bank (to the extent of live guarantees issued by bank) 28,15,488 1,26,68,398

Letters of Credit 2,63,90,468 1,17,09,765

Capital Commitments 60,00,000 NIL

Sales tax liability in lieu of

Form 'C' yet to be received 65,42,302 68,71,117 Disputed Central Excise Duty 4,66,90,550

9. Segment Reporting

Based on the guiding principles given in Accounting Standard on 'Segment Reporting' (AS 17) prescribed by the Companies (Accounting Standards) Rules 2006, the Company's primary business segment is related to 'Access & Networking Solutions'. This business segment of the Company incorporates product groups viz., Last Mile Access, ISDN based products, Layer 3 Switches and others which mainly have similar risks and returns. Since all the products stated above fall in the same segment of Access & Networking Solutions, there remains a single segment to which the whole activity pertains to.

The secondary segment for the Company is based on location of customers'/export destinations.

The segment revenue in the geographical segments for disclosure are as follows:

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

10. Related Party Disclosure

Related party disclosures, as required by AS-18:

(i) RAD-MRO Manufacturing Pvt Ltd.,

(ii) S Narayanan

(iii) H Nandi

A. Relationships:

(i) RAD-MRO Manufacturing Pvt Ltd., - Joint Venture Company

(ii) Whole time Directors -

S. Narayanan H. Nandi

Chairman & Managing Director

Managing Director B i). The following transactions were carried out with RAD- MRO Manufacturing Private Limited, the Joint Venture Company in the ordinary course of business.

12. Figures for the year have been rounded-off to the nearest rupee and, those in the brackets, wherever given, correspond to respective figures for the previous year. Figures of previous year have been regrouped & reclassified, wherever necessary.

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Mar 31, 2011

1. Deferred Tax:

During the year, the Company has accounted for Rs.45,87,803 (Rs.2,92,462) towards Deferred Tax asset and has considered the same as reverse charge to the Profit & Loss account as stipulated under Accounting Standard- 22, on "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India.

2. Inventories:

Finished Goods includes Rs.38,25,203 (Rs.20,42,605), being value of material at prospective customers premises for demonstration purposes and Rs.Nil (Rs.203,835), being value of material at suppliers premises for rectification purposes.

3. Customs Duty Refundable amounting to Rs.67,21,166 (Previous Year- Rs.63,96,107) reflected in Schedule 10 pertains to Special Additional (Customs) Duty paid on goods imported on which, pursuant to relevant guidelines, the Company is eligible for refund on eventual sale of the said goods, and includes Rs.8,032 (Rs. 1,97,843) refund of which is awaiting such sale of relevant goods and/or filing of relevant documents for claiming said refund.

The aforesaid claim has been rejected by the Department on certain procedural grounds against which an appeal has been preferred. Pending disposal of the same, no provision is made in these accounts, in this regard.

4. Disclosure under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 :

Dues in respect, Micro and Small enterprises who have duly registered themselves under the relevant Act, and furnished the statutorily required proof thereof, are being regularly met as per agreed terms and, as such, there remains no liability towards interest. Principal amount/s remaining payable in respect of such parties, as at 31 March 2011, amount to Rs.47,42,858 (Rs. 10,03,387)

5. Certain balances representing debtors and creditors, are subject to reconciliation & receipt of confirmations from parties, pursuant to confirmation requests sent by the company.

6. Repairs & Maintenance expenses reflected in Schedule 16 includes Repairs to Building - Rs.48,56,471 (Rs.30,98,735) and Repairs to Machinery- Rs.12,54,169 (Rs.4,27,687).

7. No provision has been made for post-sales support expenses, as the company is of the opinion that such expenses are not material, based on past experience.

8. Due to Loss from operations, the tax liability computed under normal provisions of Income Tax Act, is NIL. (previous year - NIL)

9. Prior period Income includes, Services Charges Collected Rs. NIL (7,20,000), AMC Income related to prior years 2,73,396 (Rs. NIL), reversal of expenses provision no longer required amounting to Rs.2,15,66,829 (Rs.10,09,960 - reversal of Gratuity Provision) and is net of prior period expenses comprising of Rates & Taxes Rs. 1,52,500 (NIL) and Income Tax - Rs.77,477 (Rs.77,582) for earlier years.

10. Other income includes Rs.60,000 (Rs.60,000) being Lease rentals received from RAD-MRO Manufacturing Private Limited (related party),

11. Proposed dividend for the year being Rs. NIL (Rs. 1,86,84,602), no Income-tax is deductable on the same.

12. Gains from Foreign Exchange fluctuation reflected, as required under AS 11, in the Profit & Loss Account amounting to Rs.29,71,951 (Rs.2,34,11,540) denotes the variance between rates at which various imports & exports have been recorded, and the actual amount paid/received in settlement of the respective import/export invoices (based on the exchange rate/s prevailing on the actual date/s of inward/outward remittance) and includes net gain of Rs. 1,433 (NIL), attributable to Capital Assets which is absorbed in these accounts.

13. Contingent liabilities on account of

2010-2011 2009-2010 Rs. Rs.

Counter Guarantees to Bank (to the extent of live guarantees issued by bank) 1,26,68,398 1,50,05,162

Letters of Credit 1,17,09,765 5,94,52,365

Capital Commitments NIL NIL

Sales tax liability in lieu of Form C yet to be received 68,71,117 90,22,911

14. Cash & Cash equivalent reflected in Cash Flow Statement includes Fixed Deposits amounting to Rs.23,25,00,000 held by the Company with maturity period beyond three months.

15. Segment Reporting

Based on the guiding principles given in Accounting Standard on Segment Reporting (AS 17) prescribed by the Companies (Accounting Standards) Rules 2006, the Companys primary business segment is related to Access & Networking Solutions. This business segment of the Company incorporates product groups viz., Last Mile Access, ISDN based products, Layer 3 Switches and others which mainly have similar risks and returns. Since all the products stated above fall in the same segment of Access & Networking Solutions, there remains a single segment to which the whole activity pertains to.

The secondary segment for the Company is based on location of customers/export destinations.

The segment revenue in the geographical segments for disclosure are as follows:

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

16. Related Party Disclosure

Related party disclosures, as required by AS-18:

(i) RAD-MRO Manufacturing Pvt Ltd.,

(ii) S Narayanan

(iii) H Nandi

A. Relationships:

(i) RAD-MRO Manufacturing Pvt Ltd., -

Joint Venture Company

(ii) Whole time Directors - S. Narayanan, Chairman & Managing Director

H. Nandi, Managing Director

B i). The following transactions were carried out with RAD-MRO Manufacturing Private Limited, the Joint Venture Company in the ordinary course of business.

ii) Transaction details relating to Whole time Directors for the year is disclosed under note no. (9) above

17. Research and Development

The Company has in-house R&D Centre involved in developmental activities for new products in the fields of Access & Networking technology.

18. Figures for the year have been rounded-off to the nearest rupee and, those in the brackets, wherever given, correspond to respective figures for the previous year. Figures of previous year have been regrouped & reclassified, wherever necessary.

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Mar 31, 2010

1. The Board of Directors of the company, at their meeting held on 25 February 2009, approved a Share Buy Back scheme under which, a quantity not exceeding 22,00,000 equity shares would be bought from open market through Stock Exchange mechanism for & up to a maximum limit of Rs.5,00,00,000, which will be financed out of free reserves of the Company. Having complied with all the Statutory formalities relating thereto, the Company has bought 3,01,372 equity shares at a cost of Rs.66,17,252 up to 24 February 2010, and the said quantity fully extinguished, on expiry of the aforesaid Buy Back period. The Face Value of said shares bought back amounting to Rs. 15,06,860 is shown as reduction in Share Capital under the Schedule 1 and the corresponding Premium paid on the same amounting to Rs. 51,10,392 has been reduced from the Share premium under Schedule 2 of Reserves & Surplus. For the Corresponding amount of Share Capital bought back of Rs. 15,06,860 Capital Redemption Reserve has also been created as shown under Schedule 2 of Reserves & Surplus.

2. Deferred Tax:

During the year, the Company has accounted for Rs.2,92,462 (Rs.47,09,547) towards Deferred Tax liability and has considered the same as charge to the Profit & Loss account as stipulated under Accounting Standard- 22, on "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India.

3. Inventories:

Finished Goods includes Rs.20,42,605 (Rs.60,70,324), being value of material at prospective customers premises for demonstration purposes and Rs.2,03,835 (Rs.2,03,835), being value of material at suppliers premises for rectification purposes.

4. Customs Duty Refundable amounting to Rs.63,96,107 (Previous Year- Rs.1,17,36,152) reflected in Schedule 10 pertains to Special Additional (Customs) Duty paid on goods imported on which, pursuant to relevant guidelines, the Company is eligible for refund on eventual sale of the said goods, and includes Rs. 1,97,843 (Rs.27,58,860) refund of which is awaiting such sale of relevant goods and/or filing of relevant documents for claiming said refund.

5. Disclosure under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 :

Dues in respect, Micro and Small enterprises who have duly registered themselves under the relevant Act, and furnished the statutorily required proof thereof, are being regularly met as per agreed terms and, as such, there remains no liability towards interest. Principal amount/s remaining payable in respect of such parties, as at 31 March 2010, amounts to Rs. 10,03,387 (Rs. 18,95,220)

6. Certain balances representing debtors and creditors, are subject to reconciliation & receipt of confirmations from parties, pursuant to confirmation requests sent by the company.

7. Repairs & Maintenance expenses reflected in Schedule 16 includes Repairs to Building - Rs.30,98,735 (Rs.47,79,183) and Repairs to Machinery - Rs.4,27,687 (Rs. 10,53,740).

8. No provision has been made for post-sales support expenses, as the company is of the opinion that such expenses are not material, based on past experience.

-excluding Rs.22,68,000 being the contribution to Provident and other funds, grouped underMiscellaneous Expenses in Sen 16.

9. Due to Loss from operations, the tax liability computed under normal provisions of Income Tax Act, is Nil. (previous year - Rs.29,91,000 under Minimum Alternate Tax provision of Income Tax).

10. Prior period Income includes, Services Charges Collected Rs.7,20,000 (NIL), AMC Income related to prior years Nil (Rs.83,024), reimbursement of Advertisement & Publicity expenses of Rs.Nil (Rs.2,66,316) and Credits no longer required- Rs.Nil (Rs. 1,08,988) and is net of, prior period expenses comprising reversal of Gratuity Provision Rs. 10,09,960 (NIL) and Income Tax for earlier years - Rs.77,582 (Rs.2,16,806).

11. Other income includes Rs.60,000 (Rs.65,000) being Lease rentals received and Rs.NIL (Rs. 1,45,04,000) being Dividend received from RAD-MRO Manufacturing Private Limited (related party) which is of non-recurring in nature.

12. Proposed dividend for the year is Rs. 1,86,84,602 (Rs. 1,88,47,862) No Income-tax is deductible on the same.

13. Gains from Foreign Exchange fluctuation reflected, as required under AS 11, in the Profit & Loss Account amounting to Rs.2,34,11,540 (Loss Rs.4,75,59,647) denotes the variance between rates at which various imports & exports have been recorded, and the actual amount paid/received in settlement of the respective import/export invoices (based on the exchange rate/s prevailing on the actual date/s of inward/outward remittance) and includes net gain of Rs.NIL (Rs.5,163), attributable to Capital Assets which is absorbed in these accounts.

14. Cash & Cash equivalent reflected in Cash Flow Statement includes Fixed Deposits amounting to Rs.30,96,01,000 held by the Company with maturity period beyond three months.

15. Segment Reporting

Based on the guiding principles given in Accounting Standard on Segment Reporting (AS 17) issued by the Institute of Chartered Accountants of India, the Companys primary business segment is related to Access & Networking Solutions. This business segment of the Company incorporates product groups viz., Last Mile Access, ISDN based products, Layer 3 Switches and others which mainly have similar risks and returns. Since all the products stated above fall in the same segment of Access & Networking Solutions, there remains a single segment to which the whole activity pertains to.

The secondary segment for the Company is based on location of customers/export destinations.

The segment revenue in the geographical segments for disclosure are as follows:

a) Revenue within India includes sales to customers located within India and earnings in India.

b) Revenue outside India includes sales to customers located outside India and earnings outside India.

16. Related Party Disclosure

Related party disclosures, as required by AS-18:

(i) RAD-MRO Manufacturing Pvt Ltd.,

(ii) S Narayanan

(iir) H Nandi

A. Relationships:

(i) Holding Companies - Nil

(ii) Subsidiaries - Nil

(iii) Other entities-

RAD-MRO Manufacturing Pvt Ltd., - Joint Venture Company

(iv) Whole time Directors -

S. Narayanan,

Chairman & Managing Director

H. Nandi, Managing Director

B. The following transactions were carried out with RAD-MRO Manufacturing Private Limited, the Joint Venture Company in the ordinary course of business.

i) Details relating to parties referred to in items A(i), (ii) and (iii) above:

ii) Details relating to parties referred to in items (iv) - Remuneration to Directors for the year is disclosed under note no. (11) above

17. Research and Development

The Company has in-house R&D Centre involved in developmental activities for new products in the fields of Access & Networking technology.

Revenue expenditure incurred towards in-house R&D included in Schedule 15 & 16 relating to Cost of goods sold and administrative & selling expenses respectively, is as detailed below:

Details of Capital Expenditure incurred, is provided in Schedule 5 relating to Fixed Assets.

18. Figures for the year have been rounded-off to the nearest rupee and, those in the brackets, wherever given, correspond to respective figures for the previous year. Figures of previous year have been regrouped & reclassified, wherever necessary.