During the year, the Company sold its factory land situated at Electronic City, Bengaluru, for a consideration of Rs. 4,050 lakhs. The carrying amount of the land as at the date of sale was Rs. 8.05 lakhs, resulting in a gain on disposal of Rs. 4,041.95 lakhs. Consequent to the sale, the factory building and other related assets located at the same site were determined to have no future economic benefit and were accordingly written off during the year. The aggregate carrying amount of such assets amounted to Rs. 315.20 lakhs and has been recognised as a loss in the Statement of Profit and Loss. Accordingly, the net gain recognised in the Standalone Statement of Profit and Loss for the year, after setting off the loss on write-off of the related building and other assets against the gain on sale of land, amounted to Rs. 3,726.75 lakhs.

* 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 7.25% to 7.49% Per Annum (Previous year rate of interest is 8.25% to 8.49% 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

* Overdraft Facility and 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, Municipal 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 Municipal 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 7.25% to 9.00% Per Annum (Previous year rate of interest is 8.25% to 8.49% 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 saleable super built up area constituting the portion of ground floor of the complex - Umiya Vellociti.

The rate of interest is 8.79% to 9.25% Per Annum (Previous year 8.59% to 10.25% Per Annum)

*** Loan from director Mr Aniruddha Mehta Amounting Rs Nil (Previous year Rs.667 Lakhs) is Unsecured and Interest free loan is repayable on demand

On November 21, 2025, the Government of India notified the four Labour Codes — the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 — consolidating 29 existing labour laws. Pursuant to this, the Ministry of Labour & Employment has issued draft Central Rules and FAQs to facilitate the assessment of financial implications arising from the revised regulations. The company has evaluated the incremental financial impact of these changes based on the best information currently available, in line with the guidance issued by the Institute of Chartered Accountants of India. An incremental gratuity charge of Rs. 28.14 lakhs has been recognized during the year ended March 31, 2026.The company continues to closely monitor the finalization of the Central and State Rules and further Government clarifications and will record appropriate accounting adjustments as and when additional guidance becomes available.

* 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 March 2010. 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 Rs. 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, Bangalore) 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.,

****During FY 2025-26, the Company recognized revenue of Rs. 468.65 lakhs for Q1 to Q3 under the BSNL WCL Project, based on BSNL’s letter to continue services, and Rs.116.41 lakhs for Q4, bsed on the renewal service order issued by BSNL on 13th March 2026,. BSNL has retrospectively applied a 23% discount, giving rise to a disputed amount of Rs. 107.79 lakhs for the Q1 to Q3 period. The Company has contested this retrospective application, maintaining - based on BSNL’s letter dated 29th March 2025 - that the discount is applicable only prospectively, from Q4 of FY 2025-26 onwards. Based on management’s assessment, no provision has been considered necessary in respect of this amount, and the same has been disclosed as a contingent liability, pending final resolution with BSNL.

Note 39

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.

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

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 management 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 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 Company's 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 Company's total revenue for the year ended 31st March 2026 & for previous year ended 31 March, 2025.

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 managingliquidity 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.

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 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) 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

CORPORATE SOCIAL RESPONSIBILITY (CSR)

As per Section 135 of the Companies Act, 2013, a company is required to spend at least 2% of its average net profits of the three immediately preceding financial years on Corporate Social Responsibility (CSR) activities if it meets the prescribed applicability criteria. During the year, the company did not meet the criteria specified under Section 135 of the Companies Act, 2013 and, accordingly, the CsR provisions, including the requirement to incur CSR expenditure, were not applicable to the company.

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.