There are no Micro, Small and Medium Enterprises, to whom the Company owes (principal and/or interest), which has been outstanding for more than 45 days as at the balance sheet date. There were delay in payments to Micro, Small and Medium Enterprises for more than 45 days during the year for which no provision for interest has been made. As per the management, the Company has mutual understanding with such parties for different payment terms while purchasing materials from them and the payment to them is made as per agreed terms accordingly. As per management there are no MSME registered parties with whom the Company has any dispute related to the principal or interest towards the delay payments so happened during the year over and above the agreed terms of payment.

The financial instruments are categorized into following levels based on the inputs used to arrive at fair value measurements described below:

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price 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).

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

3. Financial Risk Management:

The activities of the Company exposes it to a number of financial risks namely market risk, credit risk and liquidity risk. The Company seeks to minimize the potential impact of unpredictability of the financial markets on its financial performance. The Company does regularly monitor, analyze and manage the risks faced by the Company and to set and monitor appropriate risk limits and controls for mitigation of the risks.

A) Management of Market Risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises to three type of risk, interest rate risk, price risk and currency rate risk. Financial instrument affected by market risk includes borrowings and investments. The Company has international trade operations and is exposed to a variety of market risks, including currency and interest rate risks.

i) Management of interest rate risk:

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rates. The Company is having least interest rate risk since it has repaid the major borrowing during the year. Further the outstanding borrowing has the fixed rate of interest which is repayable in installments for the term loan availed by it from bank.

ii) Management of currency risk:

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company has foreign currency trade receivables and payable and advances given to suppliers and received from customers. The Company mitigates the foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures etc. The exchange rates have been volatile in the recent period and may continue to be volatile in the future. Hence the operating results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies.

iii) Management of price risk:

The Company has a risk management framework aimed at prudently managing the risk arising from the volatility in commodity prices and freight costs. The Company's commodity risk is managed centrally through well-established control processes and also future market position in accordance with the risk management policy. Further the Company invests its surplus funds in deposits with banks on short term tenors on fixed interest rate and the same is not exposed to any price risk. This risk is mitigated by investing the funds in various tenors depending on the liquidity needs of the Company.

B) Management of Credit Risk:

Credit risk refers to the risk of default on its obligations by a counter party to the Company resulting in a financial loss to the Company. The Company is exposed to credit risk from its

operating activities i.e. trade receivable, foreign exchange transactions and other financial instruments. Credit risk from trade receivables is managed through the Company's policies, procedures and controls relating to customer credit risk management by establishing credit limits, credit approvals and monitoring creditworthiness of the customers to which the Company extends credit in the normal course of business. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed. The Company's historical experience of collecting receivables and level of default indicate that credit risk is low and generally uniform across markets consequently, trade receivables are considered to be a single class of financial assets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. Loss allowances and

impairment is recognized, where considered appropriate by responsible management. The Company has receivable at the year ended where in the debtor's parties are under NCLT. The total amount receivable from such debtors is for ' 15.40 Lakhs. The management is hopeful to receive the same therefore the same has been considered good at the year ended.

C) Management of Liquidity Risk:

Liquidity risk is the risk that the Company may not be able to meet its present and future cash obligations without incurring unacceptable losses. The Company's objective is to maintain at all times, optimum levels of liquidity to meet obligations. The Company closely monitors its liquidity position and has a cash management system. The Company maintains adequate sources of financing including debt and overdraft from banks and financial markets at optimized cost. The Company's current assets aggregate to ' 27,976.47 Lakhs (PY 2023: ' 15,435.82 Lakhs) including cash and cash equivalents and other bank balances of ' 10,548.74 Lakhs (2023: ' 618.43 Lakhs) against an aggregate current liability of ' 8,080.81 Lakhs (2023: ' 7,894.97 Lakhs) and Non-Current liabilities due between one year to three years amounting to ' NIL Lakhs (2023: 98.57) and Non-Current liabilities due after three years amounting to NIL (2023: NIL) on the reporting date. Further, while the Company's total equity stands at ' 29,325.84 Lakhs (2023: ' 11,418.74 Lakhs), it has Non-Current borrowings of ' 6.34 Lakhs (2023: ' 1,968.63 Lakhs). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligation as they become due does not exist.

NOTE 41: EMPLOYEE BENEFITS

A) Defined Contribution Plan

Provident Fund: The contribution to the provident fund of employees are made to a government administered provident fund and there are no further obligations beyond making such contribution.

B) Defined Benefit Plan

Gratuity: The Company participates in the employee's group gratuity-scheme of life insurance corporation limited, a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on death or on separation/termination in terms of the provisions of the payment of gratuity (Amendment) act, 1997, or as per Company's scheme whichever is more beneficial to the employees. The Company made payments for the gratuity for the year ended based on the actuarial valuation of the gratuity liability as done by the LIC and the same has been provided in the books of accounts. Payments of the Company to such gratuity fund has been considered as expenditure for the year and the fund laying with LIC under the gratuity fund is not been accounted as assets as the same is towards the defined future liability of the Company.

Provident fund: The Company makes provident fund contribution to the government administered provident fund. The Company has no part to play in this respect.

C) Amounts Recognized as Expense:

i) Defined Contribution Plan:

Employer's contribution to provident fund amounting to ' 89.44 Lakhs has been included under contribution to provident funds.

ii) Defined Benefit Plan:

Gratuity amount payable for ' 16.54 Lakhs till the year ended out of which ' 10 Lakhs has been paid to the LIC gratuity fund as calculated based on actuarial valuation of the gratuity made by the Life Insurance Corporation and the balance amount has been shown as payable at the year ended.

NOTE 44: SEGMENT INFORMATION

The Company operates in a single segment i.e. manufacturing of product, hence segment-wise reporting is not applicable as required in accordance with Ind AS 108.

NOTE 45: DIVIDEND

The Company has declared dividend for the FY 2022-23 in the Annual General meeting of the Company held on July 08, 2023. The dividend so declared has been accounted and adjusted during the year from the brought forward balances of the profit & loss account.

NOTE 46: UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM

I) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other source or kind of funds) to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise) the Intermediary (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

the charges registered with the ROC against the said loans has been duly discharged during the year. The Company has outstanding term loan availed from Kotak Mahindra Bank at the year ended against hypothecation of vehicle and the charge for the same is duly registered with Registrar of Companies within statutory period.

IX) The Company has not been declared as willful defaulter by any bank or financial Institution or any other lender during the financial year.

X) The Company did not have any transactions during the year with the companies which are struck off under Section 248 of the companies Act 2013 or Section 560 of the companies Act 1956.

XI) As per the information & details available on records and the disclosure given by the management, the Company has complied with the number of layers prescribed under clause (87) of Section 2 of the companies Act read with the Companies (Restriction on number of layers) Rules 2017.

XII) As per the information & details available on records and the disclosure given by the management, the Company has not advanced, loaned or invested to any other person or entity or foreign entities with the understanding that the intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company or provide any guarantee, security or like to or on behalf of the Company. Further the Company has not received any funds from any person, entity including the foreign entity with the understanding that the Company shall directly or indirectly lend, invest or provide guarantee, security or like manner on behalf of the funding party.

XIII) There are no amounts due to be credited to Investor Education and Protection Fund in accordance with Section 125 of the companies act, 2013 as at the year end.

XIV) The Company has over due receivables against the export realization of goods for ' equivalent to 3,234.65 Lakhs due to the various business reasons. Further as per the information available and as intimated by the management, the Company is in process of availing extension from RBI through its authorized dealers for the overdue realizations however till the date of the balance sheet such extension has not been approved.

XV) There is no impairment of any assets during the reporting period.

XVI) With respect to disclosures pursuant to Section 186(4) of the Companies Act, 2013 the Company has not given any amount in the nature of loan nor has provided any guarantee or security to any entity in connection with loan during the year. The Company has investment in its wholly owned subsidiary as given in note 5.

XVII) No scheme of arrangement has been approved by the competent authority in terms of sections 230 to 237 of the Companies Act, 2013.

XVIII) All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs and decimal thereof as per the requirements of schedule III to the Companies Act, 2013, unless otherwise stated.

XIX) The Company has submitted documents to Registrar of Companies (ROC) Mumbai on dated September 06, 2023, for change of its Listing status from "unlisted

to listed" in the master data of the Company on MCA portal post Initial Public Offer. However, the change in the status has not been updated by ROC till the date of the balance sheet and the same is still under process and is pending with ROC for further action to change the status of the Company in the master data-the Company Information on the portal.

Note: While calculating Net capital Turnover Ratio & Return on capital employed, we have considered average working capital & average capital employed respectively. Further IPO funds unutilized at the year ended has been subtracted from the working capital & capital employed as the same has not been utilized for business operations during the year to show the fair comparison of the ratios.

For (*) Please refer below Notes:

Explanation for change in ratio by more than 25% as compared to previous year:

i) Current ratio has increased mainly due to the liquidity available and kept under cash & cash equivalent & bank balances at the year ended.

ii) Debt-Equity Ratio has decreased due to repayment of borrowings and increase in equity.

iii) Debt Service Coverage Ratio has decreased due reduction in interest cost after repayment of borrowing from IPO consideration.

iv) Return on Equity Ratio has decreased due to increase in equity via IPO during the year.

v) Net capital turnover ratio has decreased due to healthy cash flow in working capital.

vi) Return on investment has not been calculated as investment is in subsidiary which has not generated any revenue to the Company during the year.

NOTE 49: The financial statements has been authorized for issue by the Board of Directors on dated May 06, 2024. NOTE 50: EVENTS AFTER REPORTING DATE

a) The Board of Directors at their Board meeting held on May 06, 2024 have recommended final dividend of ' 0.25 per fully paid up equity share of ' 2/- each for the financial year ended March 31, 2024, subject to approval of shareholders at ensuing Annual General Meeting of the Company.

b) The Company has signed Share Purchased Agreement after the balance sheet date for purchase of 100% equity shares of Hyd-Air Engineering Private Limited engaged in the business activities of Precision Engineering on April 02, 2024.

NOTE 51: Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current

year's classification/disclosure.