Level 1: Level 1 hierarchy includes Financial Instruments measured using quoted prices. This includes listed

equity instruments that have quoted price.

Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using

valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included

in level 3. This is the case for unlisted equity securities, included in level 3.

Note:

The management assessed that trade receivables, trade payables, cash and cash equivalents, other bank balances and other current financial assets and liabilities are generally considered to approximate their carrying amounts largely due to the shortterm maturities of these instruments.

35 Financial Risk Management

The Company's activities expose it to market risk (including currency risk, interest rate risk and other price risk), liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk. The Company's risk management is carried out by a director under policies approved by the Board of Directors. The Director identifies, evaluates and hedges financial risks in close co-operation with the Company's operating units. The board provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of non-derivative financial instruments and investment of excess liquidity.The risk management includes identification and evaluation of risk and identifying the best possible option to reduce such risk.

(A) Market risk(i) Foreign currency risk

Foreign currency risk arises from future commercial transactions and recognized assets or liabilities denominated in a currency that is not the Company's functional currency (INR). The exposure of the Company to foreign currency risk is not significant. However, this is closely monitored by the Management to decide on the requirement of hedging. The position of unhedged foreign currency exposure to the Company as at the end of the year expressed in INR are as follows :

Credit risk is the risk that a counter party will default on contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities primarily trade receivables. Credit risk on cash and cash equivalents and other bank balances is limited as the Company generally invests in deposits with banks . Trade receivables consist of customers from different geographical areas. In order to mitigate the risk of financial loss from defaulters, the Company has an ongoing credit evaluation process in respect of customers who are allowed credit period. In respect of walk-in customers the Company does not allow any credit period and therefore, is not exposed to any credit risk. In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 1 year past due. Outstanding customer receivables are regularly monitored. An impairment analysis is performed for all major customers at each reporting date on an individual basis. The maximum exposure to credit risk at the reporting date in respect of trade receivables is disclosed in note 7.

Liquidity risk implies the risk that the Company may not be able to meet its obligations associated with its financial liabilities. The Company has a liquidity risk management framework for managing its short term, medium term and long term sources of funding vis-a-vis short term, medium term and long term utilization requirement. This is monitored through a rolling forecast showing the expected net cash flow, likely availability of cash and cash equivalents, and available undrawn borrowing facilities.

36 Capital management

For the purpose of the Company's capital management, capital includes equity attributable to the equity holders and all other equity reserves. The Company's Capital Management objectives are to maintain equity including all reserves to protect economic viability and to finance any growth opportunities that may be available in future so as to maximize shareholders' value. The Company is monitoring capital structure using debt equity ratio as its base, which is debt to equity. The Company's endeavour is to keep debt equity ratio below two. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and business opportunities and may infuse capital if and when required by issue of new shares or raise / repay debt for achieving its capital management objectives.

37. Disclosures as per IND AS-19, "Employee Benefits" are given below :(i) Short Term Employee Benefits

I. The Company has paid/provided for bonus amounting to Rs.8.10 lacs (Previous year Rs.7.77 lacs) for all its employees under the Payment of Bonus Act, which has been recognized in the Statement of Profit & Loss for the year.

II. During the year the company has paid/provided for Leave Salary amounting to Rs.3.74 Lacs (Previous year Rs.2.17 lacs) in the Statement of Profit & Loss on payment basis.

III. During the year the company has recognized its contribution towards Employees State Insurance Scheme amounting to Rs.7.55 lacs (Previous year Rs.8.03 lacs) in the Statement of Profit and Loss.

(ii) Long Term Employee Benefits

The Company has classified the various Long Term Employee Benefits as under:-I. Defined Contribution Plans

a) Contribution to Provident Fund

b) Contribution to Pension Scheme

II. Defined Benefit Plan

The Employees Gratuity Fund Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Details of dues to Micro Enterprises and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 (MSME Act) are based on information made available to the Company.

41 Segment Reporting

Operating Segment are reported in a manner consistent with the internal reporting provided to the Chief Operating decision maker. Segments have been identified taking into account the nature of the products the differing risks and returns, the organisational structure and internal reporting system. The Company generally deals in Rolling and Forging of Agricultural Implements and Other Products. All the Products made by the Company essentially emanate from Rolling and Forging division and as such it is the only reportable operating segment as per Ind AS 108, "Operating Segment". As the Company is engaged in a single operating segment, segment information has been provided based on geographical location of the customers as under :-

(1) Total Debt = Current Borrowings Non Current Borrowings Lease Liabilities

(2) Earnings Available for Debt Services = Profit after tax Depreciation Interest Profit on sale of Property, Plant and Equipment

(3) Debt Services = Interest & Lease Payments Principal Repayments

(4) Shareholders Equity = Equity - Other comprehensive Income Balance

(5) Earning before interest and taxes = Profit before tax Interest

(6) Capital Employed = Equity - Other comprehensive income balance Borrowings Deferred tax liability.

(7) Working capital does not include short term borrowings of Rs. 1,569.15 Lacs (March 31, 2025 : Rs. 1,377.28 Lacs)

NOTE: 44

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending

against the Company for holding any Benami property.

(ii) The quarterly returns / statements filed by the company with the banks are not having material difference with the unaudited books of account of the Company, of the respective quarters and those differences are of explainable items such as valuation difference ubilled receivables etc.

(iii) The Company has not entered into any transactions with Companies struck off under section 248 of the

Companies Act, 2013 or section 560 of the companies Act, 1956.

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

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

(vi) 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.

(vii) 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 to or on behalf of the Ultimate Beneficiaries.

(viii) The Company does not have any transactions which are not recorded in the books of accounts that have 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.

(ix) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets during the year ended 31st March, 2026.

(x) The Company has not provided loans, advances in the nature of loans, stood guarantee, or povided security to Companies, Firms or limited liability partnerships.

(xi) The Company has not defaulted in repayment of loans, or other borrowings or payment of interest thereon to any lender.

(xii) The Company has not been declared willful defaulter by any bank, financial institution, government or government authority.

(xiii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restrictions on number of Layers) Rules,2017.

NOTE:-45

The previous year's figures are grouped / regrouped or arranged / rearranged wherever necessary to make them comparable with current year's figures.