U. Provisions

Provisions for legal claims and returns are recognised when
the company has a present legal or constructive obligation
as a result of past event, it is probable that an outflow of
resources will be required to settle the obligation, and
the amount can be reliably estimated. Provisions are not
recognised for future operating losses.

Provisions are measured at the present value of
management's best estimate of the expenditure required
to settle the present obligation at the end of the reporting
period. The discount rate used to determine the present
value is a pre-tax rate that reflects current market
assessments of the time value of money and the risks
specific to the liability. The increase in the provisions due
to the passage of time is recognized as interest expense.

V. Employee benefits

i. Short-term obligations

Liabilities for wages and salaries, including non-monetary
benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees
render the related service are recognized in respect of
employees' services up to the end of the reporting period
and are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are presented
as current employee benefit obligations in the balance
sheet.

ii. Other long-term employee benefit obligations

The liabilities for earned leave are not expected to be
settled wholly within 12 months after the end of the period
in which the employees render the related service. They are
therefore measured at the present value of expected future
payments to be made in respect of services provided by
employees up to the end of the reporting period using the
projected unit credit method. The benefits are discounted
using the market yields at the end of the reporting period
that have terms approximating to the terms of the related
obligations.

Remeasurements as a result of the experience adjustments
and changes in actuarial assumptions are recognised in
profit or loss.

The obligations are presented as current liabilities in the
balance sheet if the entity does not have an unconditional
right to defer settlement for at least twelve months after the
reporting period, regardless of when the actual settlement
is expected to occur.

iii. Post-employment obligations

The Company operates the following post-employment
schemes:

(a) Defined benefit plans such as gratuity; and

(b) Defined contribution plans such as provident fund and
superannuation fund.

(c) Defined benefit plans such as Leave encashment.

Gratuity & Leave Encashment obligations

The liability or assets recognised in the balance sheet in
respect of gratuity & Leave Encashment plans are the
present value of the defined benefit obligation at the end
of the reporting period less the fair value of plan assets.
The defined benefit obligation is calculated annually by
actuaries using the projected unit credit method.

The present value of the defined benefit obligation is
determined by discounting the estimated future cash
outflows by reference to market yields at the end of the
reporting period on government bonds that have terms
approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation
and the fair value of plan assets. This cost is included in
employee benefit expenses in the statement of profit and
loss.

Re-measurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in
other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in the
balance sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or curtailment
are recognised immediately in profit or loss.

Defined contribution plans

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

iv. Bonus plans

The Company recognizes a liability and an expense for
bonuses. The Company recognizes a provision where
contractually obliged or where there is a past practice that
has created a constructive obligation.

W. Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of
tax, from the proceeds.

X. Dividends

Provision is made for the amount of any dividend declared,
being appropriately authorized 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.

Y. Provision for doubtful debts

The Management reviews on a periodical basis the
outstanding debtors with a view to determine as to
whether the debtors are good, bad or doubtful after taking
into consideration all the relevant aspects. On the basis of
such review and in pursuance of other prudent financial
considerations the management determines the extent of
provision to be made in the accounts.

Z. Earnings per share

i. Basic earnings per share

Basic earnings per share are 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.

ii. Diluted earnings per share

Diluted earnings per share adjust 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.

3. Honorable Bombay High Court has passed winding up
order on the petition of M/s Savino Del Beno "Petitioner"
(Freight forwarder agent & CHA of company).

Facts of the case - During the year 2010, Petitioner has
raised bills for their services but failed to submit Original
EP copy to the company, which is essential documents
to claim Excise rebate, and accordingly the company
withheld their payment. Subsequently, the petitioner has
filed a winding up petition against the Company of dues
of '0.13 crore. Honorable Mumbai High Court has passed
an order allowing the petition and issued directions for the
appointment of the official liquidator in winding up order.

On appeal against this order made by the company before
Honorable Bombay High Court, Honorable Bombay High
Court has given an interim stay order against the winding up
order passed (against the Company) dated April 15, 2015.
The company has deposited '0.19 crore with interest as per
direction of honorable Bombay High Court. The matter is
pending before the Bombay High Court. Next hearing in
this matter shall come up as per listing of the court.

The amount deposited of '0.19 crore with court is shown in
the Balance sheet under Current Assets.

4. The balances under the heads of Trade Receivables,
Trade Payables, and Loans and Advances Receivable
and Payable are as per the books of accounts and are
subject to confirmation by the respective parties, as
well as adjustments, if any, upon reconciliation. Balance
confirmation emails have been sent to the parties
concerned, requesting confirmation or comments by a
specified date. It was indicated that, in the absence of a
response, the balances stated in the communication would
be considered as confirmed. Responses have been received
from parties; however, no adverse remarks or objections
have been received.

5. During the year '4.50 Crores (P Y. '1.59 Crores) has
been credited to the Statement of Profit and Loss in respect
of the Foreign Exchange Differences.

6. Segment reporting

The Managing Director has been identified as the Chief
Operating Decision Maker ("CODM") as defined under Ind
AS 108 - Operating Segments.

The CODM reviews the Company's operating results as
a whole for the purpose of making decisions regarding
resource allocation and assessing performance. Based on
the nature of products, production processes, customer
profile, risk and return characteristics, and the internal
management reporting system, the Company operates in
a single reportable business segment, namely Engineering
and Current Sensing Applications.

Accordingly, The Company operates in a single reportable
operating segment, e.g., Engineering and Current Sensing
applications. The Chief Operating Decision Maker (CODM)
reviews the performance of the Company as a single
operating unit. Accordingly, separate segment information
under Ind AS 108 is not required to be presented.

7. Leases: Effective date and transition

Effective April 1, 2019 the Company has adopted Ind
AS 116 Leases. Company applies retrospectively with
the cumulative effect of initially applying the Standard
recognized at the date of initial application. Company
measure lease liability at the present value of the remaining
lease payments, discounted using the lessee's incremental
borrowing rate at the date of initial application, and measure
that right-of-use asset an amount equal to the lease liability,
adjusted by the amount of any prepaid or accrued lease
payments relating to that lease recognized in the balance
sheet immediately before the date of initial application.
The company is following SLM method for depreciation on
Right of use assets over lease terms.

9. Disclosure as required by Ind AS-19, Employee Benefits

I. Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. The amount of gratuity
payable on retirement/termination is the employees' last drawn basic salary per month computed proportionately for 15
days salary multiplied for the number of years of service. The company contribution "on the basis of actuarially ascertained
by the Independent Actuaries" is charged to profit and loss accounts. The amount debited to profit, and loss account is
'0.21 Crores. Past service cost due to applicability of New Labour code is '1.74 Crores.

Other long-term employee benefits:

II. Leave encashment

The Company provides for the expected cost of accumulating paid leave which can be carried forward and used in future
periods by the employees. The obligation to accumulate paid leaves has been recognized at the end of the reporting period.

In respect of Gratuity & Leave Encashment, provision is made based on the actuarial valuation by an independent actuary.
The following information as required under Ind AS-19 is based on the report of the Actuary:

10. Component Accounting for Fixed Assets:

In the opinion of the management, based on internal verification of the assets of the company, there is no major part, in
case of any asset, which is significant to the total cost of the asset and whose useful life is different from the useful life of
the asset. Hence, there is no change in accounting of fixed assets and depreciation thereon as required under Ind AS 16:
Property, Plant, and Equipment.

11. Segment Reporting:

As the Company operates mainly in one Business Segment, i.e. Engineering and Current Sensing applications, hence are
considered to be a single primary business segment. There have been no other reportable segments identified by the Chief
Operating Decision Maker, and hence no segment reporting is presented under IND AS 108.

12. Impairment of Assets:

During the financial year 2025-26, the Company performed an impairment evaluation of certain assets within its Property,
Plant, and Equipment vertical, following internal reviews that indicated a potential reduction in economic utility.

Consequently, an impairment loss of '0.06 Crore (Previous Year: Nil) has been recognized in the Statement of Profit and
Loss under the line item 'Other Expenses'.

15. Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR)
activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, healthcare, women
empowerment, measures for the benefit of war widows and contributions to incubators has been formed by the company
as per the Act. The funds were primarily allocated to a corpus and utilised through the year on these activities which are
specified in schedule VII of the Companies Act, 2013.

The amount of expenditure to be spent on CSR activities and financial details as per the Companies Act, 2013 for the F.Y
2025-26 are as under:

16. Financial instruments and risk management

Fair values

1. The carrying amounts of trade payables, other financial liabilities (current), borrowings (current), trade receivables, cash
and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their short-term
nature.

2. Borrowings (non-current) consists of loans from banks and government authorities, other financial liabilities (noncurrent)
consist of interest accrued but not due on deposits other financial assets consist of employee advances where the fair
value is considered based on the discounted cash flow.

The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a

current transaction between willing parties, other than in a forced or liquidation sale.

Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments, other

than those with carrying amounts that are reasonable approximation of fair values:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques, which maximise the use of observable market data and rely as little as possible on entity specific estimates. If
significant inputs required to fair value instruments are observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the instruments is included
in level 3.

Management uses its best judgement in estimating the
fair value of its financial instruments. However, there are
inherent limitations in any estimation technique. Therefore,
for substantially all financial instruments, the fair value
estimates presented above are not necessarily indicative of
the amounts that the Company could have realized or paid
in sale transactions as of respective dates. As such, the fair
value of financial instruments subsequent to the reporting
dates may be different from the amounts reported at each
reporting date. In respect of investments as at the transaction
date, the Company has assessed the fair value to be the
carrying value of the investments as these companies
are in their initial years of operations obtaining necessary
regulatory approvals to commence their business.

17. Financial risk management

The Company is exposed to market risk (fluctuation in
foreign currency exchange rates, price and interest rate),
liquidity risk and credit risk, which may adversely impact
the fair value of its financial instruments. The Company
assesses the unpredictability of the financial environment
and seeks to mitigate potential adverse effects on the
financial performance of the Company.

(A) 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 of currency
risk, interest rate risk and price risk. Financial instruments
affected by market risk include loans and borrowings,
trade receivables and trade payables involving foreign
currency exposure. The sensitivity analyses in the following
sections relate to the position as at March 31, 2026, and
March 31, 2025.

The analysis excludes the impact of movements in market
variables on the carrying values of financial assets and
liabilities.

The sensitivity of the relevant profit or loss item is the effect
of the assumed changes in respective market risks. This is
based on the financial assets and financial liabilities held at
March 31, 2026, and March 31, 2025.

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that the fair value or future
cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company's exposure to the
risk of changes in foreign exchange rates relates primarily
to the trade/other payables, trade/other receivables assets/
liabilities. The risks primarily relate to fluctuations in US
Dollar & EURO against the functional currencies of the
Company. To mitigate the Group's exposure to foreign
currency risk, cash flows are monitored, and natural hedges
are used. (Amounts to be paid and received in a specific
currency are expected to be largely offset by one another).
The Company evaluates the impact of foreign exchange
rate fluctuations by assessing its exposure to exchange rate

rickc
(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash
flows of a financial instrument will fluctuate because of
change in market interest rates. The Company's exposure
to the risk of changes in market interest rates relates
primarily to the Company's debt obligations with floating
interest rates. As the Company has certain debt obligations
with floating interest rates, exposure to the risk of changes
in market interest rates are dependent of changes in market
interest rates. Management monitors the movement in
interest rate and, wherever possible, reacts to material
movements in such rates by restructuring its financing
arrangement.

As the Company has no significant interest-bearing assets,
the income and operating cash flows are substantially
independent of changes in market interest rates.

(B) Credit Risk

Credit risk is the risk arising from credit exposure to
customers, cash and cash equivalents held with banks and
current and non-current held-to maturity financial assets.

With respect to credit exposure from customers, the
Company has a procedure in place aiming to minimise
collection losses. Credit Control team assesses the credit
quality of the customers, their financial position, past
experience in payments and other relevant factors. Cash
and other collaterals are obtained from customers when
considered necessary under the circumstances.

The carrying amount of trade receivables, loans, advances,
deposits, cash and bank balances, bank deposits and interest
receivable on deposits represents company's maximum
exposure to the credit risk. No other financial asset carries
a significant exposure with respect to the credit risk. Bank
deposits and cash balances are placed with reputable banks
and deposits are with reputable government, public bodies
and others.

The credit quality of financial assets is satisfactory, taking
into account the allowance for credit losses.

The Company's exposure to credit risk is influenced mainly
by the individual characteristics of each customer. However,
management also considers the factors that may influence
the credit risk of its customer base, including default risk
associate with the industry and country in which customers
operate. Credit quality of a customer is assessed based on
an extensive credit rating scorecard and individual credit
limits are defined in accordance with this assessment.

An impairment analysis is performed at each reporting
date on an individual basis for major receivables. In
addition, a large number of minor receivables are grouped
into homogenous groups and assessed for impairment
collectively. The maximum exposure to credit risk at the
reporting date is the carrying value of each class of financial
assets. The Company also holds deposits as security from
certain customers to mitigate credit risk.

18. Event occurring after the balance sheet
date

The Board of Directors has recommended an Equity
dividend of '2.20/- per share on face value of '10/- each,
for the financial year 2025-26. The proposal is subject to the
approval of shareholders at the Annual General Meeting.
On approval, the total dividend outgo is expected to be
'1.89 Crore based on number of shares outstanding as on
March 31, 2026.

19. Other Disclosures

(a) Relationship with Struck off Companies - The Company
does not have any transactions or relationships with
any companies struck off under Section 248 of the
Companies Act, 2013 or Section 560 of the Companies
Act, 1956.

(b) There are no transactions that have been surrendered
or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 which
have not been recorded in the books of account.

(c) There are no charges or satisfaction of charges yet to
be registered with Registrar of Companies beyond the
statutory period.

(d) There is no Benami Property held under Prohibition
of Benami Property Transactions Act, 1988 and rules
made thereunder.

(e) There is no transaction in Crypto Currency or Virtual
Currency,

(f) The Company is not declared wilful defaulter by any
bank or financials institution or lender during the year.

(g) The Company has used the borrowings from banks
and financial institutions for the specific purpose for
which it was obtained.

(h) The title deeds of all the immovable properties, (other
than immovable properties where the Company is the
lessee and the lease agreements are duly executed in
favour of the Company) disclosed in the Standalone
financial statements included in property, plant and
equipment and capital work-in progress are held in the
name of the Company as at the balance sheet date.

(i) The Company has not advanced or loaned or invested
funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding
that the Intermediary shall:

(a) 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

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

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

(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 on
behalf of the ultimate beneficiaries.

20. The previous year's figures have been regrouped,
rearranged and reclassified wherever necessary to conform
to the current year's presentation.

21. Approval of Financial Statements

The financial statements were approved by the Board of
Directors on May 13, 2026.