Notes to Accounts of Disa India Ltd.

Mar 31, 2025

3.13. Provisions and contingent liability

Provisions are recognized when the Company has a present
obligation as a result of a past event that it is probable will
result in an outflow of economic benefits that can be
reasonably estimated.

The amount recognized 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).

A contingent liability is a possible obligation that arises from
past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future
events beyond the control of the Company or a present

obligation that is not recognised because it is not probable that
an outflow of resources will be required to settle the obligation.
A contingent liability also arises in extremely rare cases where
there is a liability that cannot be recognised because it cannot
be measured reliably. The Company does not recognize a
contingent liability but discloses its existence in the financial
statements.

Provisions, contingent liabilities are reviewed at each Balance
Sheet date.

3.14. Investment in subsidiaries

A subsidiary is an entity that is controlled by another entity.
Investment in its subsidiary are carried at cost less impairment,
if any.

The Company reviews its carrying value of investments carried
at cost annually, or more frequently when there is indication for
impairment. If the recoverable amount is less than its carrying
amount, the impairment loss is recorded in the Statement of
Profit and Loss.

When an impairment loss subsequently reverses, the carrying
amount of the Investment is increased to the revised estimate
of its recoverable amount, so that the increased carrying
amount does not exceed the cost of the Investment. A reversal
of an impairment loss is recognised immediately in Statement
of Profit or Loss.

3.15. Financial instruments

Financial instruments are recognised when the Company
becomes a party to the contract that gives rise to financial
assets and financial liabilities. All financial assets and liabilities
are recognized at fair value on initial recognition, except for
trade receivables which are initially measured at transaction
price. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities,
which are not at fair value through profit or loss, are added to
the fair value on initial recognition. Purchases or sales of
financial assets that require delivery of assets within a time
frame established by regulation or convention in the
marketplace (regular way trades) are recognised on the trade
date, i.e., the date that the Company commits to purchase or
sell the asset.

Subsequent measurement
Financial Assets

Financial assets at amortised cost

A ''financial asset'' is measured at the amortised cost if both the
following conditions are met:

a) The asset is held within a business model whose objective is
to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates
to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial
measurement, such financial assets are subsequently
measured at amortised cost using the effective interest rate
(EIR) method. Amortised cost is calculated by taking into
account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is
included in finance income in the profit or loss. The losses
arising from impairment are recognised in the profit or loss. The
Company''s financial assets at amortised cost includes loans,
trade receivables, cash and cash equivalents, bank balance
other than cash and cash equivalent and security deposits
included under other financial assets.

Financial assets at fair value through OCI (FVTOCI)

A financial asset is subsequently measured at fair value through
other comprehensive income if it is held within a business
model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and the
contractual terms of the 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 profit or loss

Financial assets at fair value through profit or loss are carried in
the balance sheet at fair value with net changes in fair value
recognised in the statement of profit and loss.

Impairment of financial assets

For trade receivables, the Company applies a simplified
approach in calculating ECLs. Therefore, the Company does not
track changes in credit risk, but instead recognises a loss
allowance based on lifetime ECLs at each reporting date.

The Company recognises an allowance for expected credit
losses (ECLs) for all debt instruments not held at fair value
through profit or loss. ECLs are based on the difference
between the contractual cash flows due in accordance with the
contract and all the cash flows that the Company expects to
receive, discounted at an approximation of the original
effective interest rate. The expected cash flows will include
cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.

The amount of ECLs (or reversal) that is required to adjust the

loss allowance at the reporting date to the amount that is
required to be recorded is recognized as an impairment loss or
gain in statement of profit and loss..

Financial liabilities

Financial liabilities at amortised cost

This is the category most relevant to the Company. After initial
recognition, such financial liabilities are subsequently measured
at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised
as well as through the EIR amortisation process. The
Company''s financial liabilities at amortised cost includes lease
liabilities, trade payables and employee payables included
under other financial liabilities.

Derecognition of financial instruments

The Company derecognizes a financial asset when the
contractual rights to the cash flows from the financial asset
expire or it transfers the financial asset and the transfer
qualifies for derecognition under Ind AS 109. A financial liability
is derecognised when the obligation under the liability is
discharged or cancelled or expires. When an existing financial
liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is
treated as the derecognition of the original liability and the
recognition of a new liability. The difference in the respective
carrying amounts is recognised in the statement of profit and
loss.

3.16. Cash flow statement

Cash flows are reported using the indirect method, whereby
profit / (loss) before extraordinary items and tax is adjusted for
the effects of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on
the available information.

Cash for the purpose of cash flow statement comprises cash on
hand and demand deposits with banks. Cash equivalents are
short term (with an original maturity of three months or less
from the date of acquisition), highly liquid investments that are
readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.

3.17. Dividend

The Company recognises a liability to make cash distributions
to equity holders of the Company when the distribution is
authorised, and the distribution is no longer at the discretion of

the Company. Final dividends on shares are recorded as a
liability on the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of declaration
by the Company''s Board of Directors.

3.18. Segment reporting

Operating segments are components of the Company whose
operating results are regularly reviewed by the Chief Operating
Decision Maker (CODM) to make decisions about resources to
be allocated to the segment and assess its performance and for
which discrete financial information is available.

Manufacturing and selling of foundry machinery and machinery
parts is identified as single operating segment for the purpose
of making decision on allocation of resources and assessing its
performance (refer note 40).

3.19. Earnings per share

Basic earnings per share is computed by dividing the profit /
(loss) after tax by the weighted average number of equity
shares outstanding during the year. Diluted earnings per share
is computed by dividing the profit /(loss ) after tax as adjusted
for dividend, interest and other charges to expense or income
relating to the dilutive potential equity shares, by the weighted
average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares.
Potential equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net
profit/(loss) per share.

3.20. Events after the reporting period

If the Company receives information after the reporting period,
but prior to the date of approved for issue, about conditions
that existed at the end of the reporting period, it will assess
whether the information affects the amounts that it
recognises in its standalone financial statements. The Company
will adjust the amounts recognised in its standalone financial
statements to reflect any adjusting events after the reporting
period and update the disclosures that relate to those
conditions in light of the new information. For non-adjusting
events after the reporting period, the Company will not change
the amounts recognised in its standalone financial statements
but will disclose the nature of the non-adjusting event and an
estimate of its financial effect, or a statement that such an

estimate cannot be made, if applicable.

3.21. Changes in accounting policies and disclosures
New and amended standards.

Ministry of Corporate Affairs (“MCA") notifies new standards or
amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. For the year ended March 31, 2025, MCA has notified Ind
AS - 117 Insurance Contracts and amendments to Ind AS 116 -
Leases, relating to sale and leaseback transactions, applicable
to the Company w.e.f. 01 April 2024. The Company has
reviewed the new pronouncements and based on its evaluation
has determined that it does not have any significant impact in
its standalone financial statements.

3.22. Climate-related matters

The Company considers climate-related matters in estimates
and assumptions, where appropriate. This assessment includes
a wide range of possible impacts on the Company due to both
physical and transition risks. Even though the Company
believes its business model and products will still be viable after
the transition to a low-carbon economy, climate-related
matters increase the uncertainty in estimates and assumptions
underpinning several items in the financial statements. Even
though climate-related risks might not currently have a
significant impact on measurement, the Company is closely
monitoring relevant changes and developments, such as new
climate-related legislation. The items and considerations that
are most directly impacted by climate-related matters are:

• Useful life of property, plant and equipment. When reviewing
the residual values and expected useful lives of assets, the
Company considers climate-related matters, such as climate-
related legislation and regulations that may restrict the use of
assets or require significant capital expenditures.

• Impairment of non-financial assets. The value-in-use may be
impacted in several different ways by transition risk in particular,
such as climate-related legislation and regulations and changes
in demand for the Company''s products.

3.23. Standards notified but not yet effective.

There are no standards that are notified and not yet effective
as on the date.

Fair value of the company''s investment property :

The Company''s investment property consists of three office spaces located at Pune, Kolkata and New Delhi, a freehold land and a factory
building located in Hosakote Industrial area, Karnataka. The Management has determined that the investments property consists of two
classes of asset, “Freehold Land" and “Building (which includes three office spaces and a factory building)" based on nature, characteristics
and risks of each property.

As at March 31, 2025, the fair values of three office spaces are Rs. 60.8 Million (March 31, 2024 : Rs.56.2 Million), a factory building Rs. 56.4
Million and a freehold land Rs. 260.0 Million. Fair valuation of Investment Properties as at March 31, 2025 has been arrived at on the basis of
valuation carried out by an independent valuers not related to the Company. The valuers are registered with the authority which governs the
valuers in India, and in the opinion of the Management, valuer has appropriate qualifications and relevant experience in valuation of
properties.

Fair value hierarchy disclosures for investment properties have been provided in note 38.

The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or
develop investment properties or for repairs, maintenance and enhancements.

The aforesaid freehold land and factory building is currently vacant. The Company is not using this vacant freehold land and factory building
for its own use. The Company has held the Freehold Land and Building for undetermined future use, hence, the property is treated as
Investment Properties.

iv) Details of rights, preferences and restrictions in respect of equity shares :

The Company has one class of Shares referred to as Equity Shares with par value of Rs 10/- per share. Each holder of equity shares
is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive
remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the share holders.

The Equity shareholders are entitled to receive dividend proposed (if any) by the Board of Directors which is subject to the
approval of the shareholders in the Annual General meeting, except in case of Interim Dividend, where the dividend is declared by
the Board of Directors.

v) The Company has neither issued any bonus shares nor bought back any shares during the period of five years immediately
preceding the reporting date.

18b NATURE AND PURPOSE OF RESERVES
Retained earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general reserve, dividends
or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit plans, net of
taxes that will not be reclassified to Statement of Profit and Loss.

Capital Redemption Reserve

During the year ended March 31, 2017, the Company had concluded the buyback of 56,000 fully paid equity shares as approved by the
board of directors on August 12, 2016 at a price of Rs. 4,800/- per share amounting to Rs. 268.8 Million. Further Capital Redemption
reserve of Rs 0.6 Million has been created as an apportionment from retained earnings. Consequent to the buyback, share capital has
reduced by Rs. 0.6 Million
Capital reserve

Any profit or loss on purchase, sale, issue or cancellation of the Company''s own equity instruments is transferred to capital reserve.

(a) Trade receivables are non-interest bearing and are generally on terms of 30 to 60 days. During the year ended, March 31, 2025, Rs 0.6
Million (March 31, 2024: Rs 8.1 million) was recognised as provision for expected credit losses on trade receivables.

(b) Contract assets relates to revenue earned from Supervision services for erection and commissioning. As such, the balances of this
account vary and depend on the number of ongoing contracts at the end of the year.

The transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) for contract assets is
expected to be recognised within one year

( c) Advances from customers include short-term advances received to deliver machinery equipment''s, and loyalty points not yet
redeemed.

The amount of revenue recognised in the current year of Rs 822.1 Million (March 31, 2024: Rs 705.4 Million) that was included in the
opening advance from customer balance towards unsatisfied performance obligation.

(vi) Performance obligation

Information about the Company''s performance obligations are summarised below:

Sale of manufactured machinery

The performance obligation is satisfied upon dispatch of the machines or sub-machines (part of larger machineries) and payment
is generally collected in advance.

In some contracts, supervision services for erection and commissioning are agreed to be provided to customers as a part of sale of
manufactured machinery. The supervision services are accounted for as a separate performance obligation and a portion of the
transaction price is allocated. The performance obligation for the supervision services is satisfied over one-year based on time
elapsed.

Sale of traded and manufactured parts of machinery

The performance obligation is satisfied upon delivery of the spare parts and payment is generally due within 30 to 60 days from
delivery.

Customers are entitled to loyalty discounts which results in allocation of a portion of the transaction price to the loyalty discounts.
Revenue is recognised when the loyalty discount is redeemed.

In addition, the Company updates its estimates of the loyalty discount that will be redeemed on a quarterly basis and any
adjustments to the contract liability balance are charged against revenue.

Exceptional items of Rs 12.6 million for the year ended March 31, 2025 (Rs. 25.5 million for the year ended March 31, 2024) represents
provision made towards an Arbitration Award (“Award") issued against the Company for alleged unsatisfactory performance of an
equipment supplied to a customer in prior periods. During the year ended March 31, 2025, the Company had filed a writ petition in the
Honourable High Court of Karnataka, challenging the aforesaid Award. The Honourable High Court of Karnataka has passed an Order
on February 6, 2025, and pursuant to the said Order of the Honourable High Court of Karnataka, the Company has remitted a sum of Rs.
9.9 million to the customer and has taken back the equipment from the customer. Additionally, the Company has deposited Rs. 17.0
million with the Honourable High Court of Karnataka, representing 75% of the interest on the claim for equipment and on claims related
to installation and commissioning. The Company is currently awaiting date for further hearing from the Honourable High Court of
Karnataka.

34 EMPLOYEE BENEFIT OBLIGATIONS

As per Ind AS 19 “Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

The Company has one post-employment funded plans, namely Gratuity.

The gratuity plan is governed by the Payment of Gratuity Act, 1972 (Act). Under the Act, an employee who has completed five years of
service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at retirement
age. Gratuity being administered by a Trust is computed as 15 days salary, for every completed year of service or part thereof in excess of
6 months and is payable on retirement/termination/resignation. The Gratuity plan for the Company is a defined benefit scheme where
annual contributions as demanded by the insurer are deposited to a Gratuity Fund established to provide gratuity benefits. The Fund
has taken a Scheme of Insurance, whereby these contributions are transferred to the insurer. The Company makes provision of such
gratuity asset/liability in the books of accounts on the basis of actuarial valuation as per the projected unit credit method.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely
that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in
presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected
unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation
liability recognized in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

VII. Asset Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on year cash accumulation plan in which the interest rate is
declared on yearly basis and is guaranteed for a period of one year. The Insurance Company, as part of the policy rules, makes all of the
gratuity payments happening during the year (subject to sufficiency of funds under the policy). The policy thus mitigates the liquidity
risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the
Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in
liability without corresponding increase in the asset).

VIII. Effect of Plan on Entity''s Future Cash Flows

(i) Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance
company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets
arising as a result of such valuation is funded by the Company.

(ii) Expected contribution during the next annual reporting period.

The Company''s best estimate of Contribution during the next year is Rs. 17.1 Million (March 31, 2024 9.1 Million)

(i) The Company is contesting the tax litigations in respect of income tax matters for the years FY 2011-12 and FY 2012-13 for
disallowances made by the tax authorities. The Management, including its tax advisors, believes that it''s position will likely to be
upheld at the various forums where the matters are pending. The Company has reviewed all its pending litigations and proceedings
and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its
standalone financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse
effect on its financial position.

(ii) The Company is contesting disallowances made by the tax authorities for CST/VAT matters for the FY 2012-13 where the demand is
for non-filing of C forms. During the year ended March 31, 2025, the Management as a practice of abundance caution has created a
provision against the demand.

The Management assessed that the fair value of cash and cash equivalents, other bank balances, trade receivables, loans, other
financial assets, trade payables and other financial liabilities approximate the carrying amount largely due to short-term maturity of
these instruments.

The fair value of the 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.

(ii) Fair value hierarchy:

Fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly
or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

As on March 31, 2025 and March 31, 2024, the Company does not hold any financial instruments which are measured at fair value.
Therefore, disclosure under fair value is not applicable to the Company.

(iii) Financial risk management

The Company''s principal financial liabilities comprise of trade payables. The main purpose of these financial liabilities is to finance the
Company''s operations. The Company''s principal financial assets include loans, trade receivables, and cash and cash equivalents that
derive directly from its operations.

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s senior
management oversees the management of these risks. The Company''s focus is to foresee the unpredictability of financial markets and
seek to minimize potential adverse effects on it''s financial performance. The market risk to the Group is mainly due to foreign exchange
exposure risk, Interest rate risk and other price risk. The Company''s exposure to credit risk is influenced mainly by the individual
characteristic of each customer. The Company''s risk management activity focuses on actively securing the Company''s short to medium-
term cash flows by minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate
lasting returns. The Group does not actively engage in the trading of financial assets for speculative purposes. The most significant
financial risks to which the Group is exposed are described below.

(A) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity
risk. Financial instruments affected by market risk includes trade payable, trade receivable, bank deposits, loans.

a) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Group has interest bearing bank deposits which are carrying fixed rate of interest. However, the exposure to risk of
changes in market interest rates is minimal. The Group has not used any interest rate derivatives to hedge the interest rate risk.

b) Foreign Currency 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 Group''s exposure to the risk of changes in foreign exchange rates relates primarily to the Group''s operating
activities (when revenue or expense is denominated in a foreign currency). The Group does not enter into any derivative instruments for
trading or speculative purposes.

Foreign Currency sensitivity analysis

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to Euro and US Dollar.

The following table details the Company''s sensitivity to a 5% increase and decrease in the Rupees against the relevant foreign
currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents
management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes receivables
and payable in currency other than the functional currency of the Company.

A 5% strengthening of the Rupee against key currencies to which the Company is exposed (net of hedge) would have led to additional
gain in the Statement of Profit and Loss. A 5% weakening of the Rupee against these currencies would have led to an equal but opposite
effect.

c) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing manufacturing of
OEM products, and therefore require a continuous supply of steel.

(B) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The
Company only deals with parties which has good credit rating/ worthiness given by external rating agencies or based on Companys
internal assessment.

(a) Trade receivables management

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivable based on a provision
matrix. The Provision matrix takes into account historical credit loss experience and adjusted for forward -looking information.

The reversal/allowance for life time expected credit loss on customer balances for the year ended is disclosed in Note 12.

(b) Financial instrument and bank deposits

Credit risk from balances with banks is managed by the Company in accordance with its policy. Investments of surplus funds are made
only with approved counterparties and within credit limits assigned to each counterparty.

(c) Liquidity Risk

Liquidity risk refers to 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 objective of liquidity risk management, is to maintain
sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations
to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents.

The table below summarises the maturity profile of the Company''s financial liabilities based on contractual payments:

1. The above information has been determined to the extent such parties have been identified on the basis of information provided by
the Company, which has been relied upon by the auditors.

2. The above transactions are compiled from the date these parties became related.

3 No amounts in respect of related parties have been written off/ back or provided for during the year.

4. As the future liability for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to individual is
not ascertainable and therefore not included above.

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions.
Amounts owed to and by related party are unsecured and interest free and settlement occurs in cash. There have been no guarantees
provided or received for any related party receivables or payables. For the year ended March 31, 2025 and March 31, 2024, the Company
has not recorded any impairment towards receivables from related parties. This assessment is undertaken each financial year through
examining the financial position of the related party and the market in which the related party operates.

40 SEGMENT REPORTING

The Managing Director of the Company has been identified as the Chief Operating Decision Maker ("CODM") as defined by Ind AS 108,
Operating Segments. The CODM evaluates the Company''s performance as a whole. Accordingly, the entire Company has been
identified as one segment. Hence, no separate segment information has been presented.

The Company is engaged in equipment manufacturer with foundry and surface preparation process technology business which forms
the Company''s only primary segment. Secondary segment reporting is based on the location of the Company''s customer, which is
provided in the table below. The Company operates mainly in two geographical areas, India and Rest of the world.

Each segment item reported is measured based on the measure used to report to the Chief Operating Decision Maker for the purposes
of making decisions about allocating resources to the segment and assessing its performance. Also, all other assets and liabilities are
used interchangeably and domiciled in India.

The accounting policies adopted in the preparation of the financial statements are also consistently applied to record revenue and
expenditure and assets and liabilities in individual segments. The material accounting policies are set out in note 2 & 3 of financial
statements.

The above is determined to the extent such parties have been identified on the basis of information collected by the Management and
this has been relied upon by the auditors.

⁴² The Company has established a comprehensive system of maintenance of information and documents as required by the transfer
pricing legislation under Sections 92-92F of the Income-tax Act, 1961. Since the law requires existence of such information and
documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international
transactions entered into with the associated enterprises during the financial year and expects such records to be in existence latest by
within due date of filing the Return of Income as required under law. The Management is of the opinion that its international
transactions are at arm''s length so the aforesaid legislation will not have any impact on the financial statements, particularly on the
amount of tax expense and that of provision for taxation.

43 LEASES
Company as a lessee

The Company has entered into property lease for office space. This lease is for a period of five years.The Company''s obligations under
the lease is secured by the lessor''s title to the leased assets.

The Company had total cash outflows for leases of Rs 13.3 Million in March 31, 2025 (Rs. 12.3 Million in March 31, 2024).The Company
also had no non-cash additions to right-of-use assets and lease liabilities for the year ended March 31, 2025 and March 31, 2024. There
are no future cash outflows relating to leases that have not yet commenced.

The Company has no lease contracts that contains variable payments

The Company has a lease contract that include extension and termination options. These options are negotiated by management to
provide flexibility in managing the leased-asset portfolio and align with the Company''s business needs. Management exercises
significant judgement in determining whether these extension and termination options are reasonably certain to be exercised

Company as a lessor

The Company has entered into operating leases on its investment property portfolio consisting of office buildings (see Note 5). These
leases have terms up to five years. All leases include a clause to enable upward revision of the rental charge on an annual basis according
to prevailing market conditions. The lessee is also required to provide a residual value guarantee on the properties. Rental income
recognised by the Company during the year is Rs 2.7 Million (March 31, 2024: Rs 2.5 Million) (refer note 24).

45 EVENTS AFTER THE REPORTING PERIOD

The board of directors have proposed dividend after the balance sheet date which are subject to approval by the shareholders at the

annual general meeting. Refer note 18c for details.

46 OTHER STATUTORY INFORMATION

(i) There are no proceedings which have been initiated during the year or are pending against the Company as at March 31, 2025 for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988.

(ii) As per section 248 of the Companies Act, 2013, there are no balances outstanding or transactions with struck off companies.

(iii) The Company has not traded / invested in Crypto currency or virtual currency.

(iv) The Company has no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(v) 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

(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 on behalf of the Ultimate Beneficiaries.

(vii) The Company has no 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).

(viii) The Company is not a declared willful defaulter by any bank or financial institution or other lender.

(ix) The Company does not have a server physically located in India for the daily backup of the books of account and other books and
papers maintained in electronic mode.

(x) The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit
log) facility and the same has operated with respect to only for sale and purchase transactions during the period from February 26,
2025 to March 31, 2025, except that, audit trail feature is not enabled for any direct changes to data when using certain access
rights. Further no instance of audit trail feature being tampered with was noted in respect of accounting software to the extent
where the audit trail has been enabled. Additionally, the audit trail in respect of the prior year has not been preserved by the
Company as per the statutory requirements for record retention.

⁴⁷ ''''0'''' represents the figures below the rounding off norms adopted by the Company.

For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors

Chartered Accountants DISA India Limited

Firm''s Registration No. 101049W/E300004 CIN: L85110KA1984PLC006116

per Sunil Gaggar Lokesh Saxena Deepa Hingorani

Partner Managing Director Director

Membership No. 104315 DIN_: 078^7^ DIN: 00206310

Place: Bangalore

^{Date: May 21}, ²⁰²⁵ Vidya Jayant Shrithee MS

Chief Financial Officer Company Secretary , ACS : 56563

Place :Bangalore Place :Bangalore

Date: May 21, 2025 Date: May 21, 2025

---

Mar 31, 2024

3-13- Provisions and contingent liability

Provisions are recognized when the Company has a present obligation as a result of a past event that it is probable will result in an outflow of economic benefits that can be reasonably estimated.

The amount recognized 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).

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future

events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

Provisions, contingent liabilities are reviewed at each Balance Sheet date.

3.14. Investment in subsidiaries

A subsidiary is an entity that is controlled by another entity. Investment in its subsidiary are carried at cost less impairment, if any.

The Company reviews its carrying value of investments carried at cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is recorded in the Statement of Profit and Loss.

When an impairment loss subsequently reverses, the carrying amount of the Investment is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the cost of the Investment. A reversal of an impairment loss is recognised immediately in Statement of Profit or Loss.

3.15. Financial instruments

Financial instruments are recognised when the Company becomes a party to the contract that gives rise to financial assets and financial liabilities. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement Financial Assets

Financial assets at amortised cost

A ''financial asset'' is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss. The Company''s financial assets at amortised cost includes loans, trade receivables, cash and cash equivalents, bank balance other than cash and cash equivalent and security deposits included under other financial assets.

Financial assets at fair value through OCI (FVTOCI)

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the 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 profit or loss

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value recognised in the statement of profit and loss.

Impairment of financial assets

For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date.

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

The amount of ECLs (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recorded is recognized as an impairment loss or gain in statement of profit and loss.

Financial liabilities

Financial liabilities at amortised cost

This is the category most relevant to the Company. After initial recognition, such financial liabilities are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. The Company''s financial liabilities at amortised cost includes lease liabilities, trade payables and employee payables included under other financial liabilities.

Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

3.16. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Cash for the purpose of cash flow statement comprises cash on hand and demand deposits with banks. Cash equivalents are short term (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

3.17. Dividend

The Company recognises a liability to make cash distributions to equity holders of the Company when the distribution is authorised, and the distribution is no longer at the discretion of the Company. Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors.

3.18. Segment reporting

Operating segments are components of the Company whose operating results are regularly reviewed by the Chief Operating Decision Maker (CODM) to make decisions about resources to

be allocated to the segment and assess its performance and for which discrete financial information is available.

Manufacturing and selling of foundry machinery and machinery parts is identified as single operating segment for the purpose of making decision on allocation of resources and assessing its performance (refer note 40).

3.19. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit /(loss ) after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit/(loss) per share.

3.20. Changes in accounting policies and disclosures New and amended standards.

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 1 April 2023. The Company applied for the first-time these amendments.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates. The amendments had no impact on the Company''s standalone financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The Company previously recognised for deferred tax on leases on a net basis. As a result of these amendments, the Company has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify for offset as per the requirements of paragraph 74 of Ind AS 12, there is no impact in the balance sheet. There was also no impact on the opening retained earnings as at 1 April 2022. Apart from these, consequential amendments and editorials have been made to other Ind AS like Ind AS 101, Ind AS 102, Ind AS 103, Ind AS 107, Ind AS 109, Ind AS 115 and Ind AS 34.

3.21. Climate-related matters

The Company considers climate-related matters in estimates and assumptions, where appropriate. This assessment includes a wide range of possible impacts on the Company due to both

physical and transition risks. Even though the Company believes its business model and products will still be viable after the transition to a low-carbon economy, climate-related matters increase the uncertainty in estimates and assumptions underpinning several items in the financial statements. Even though climate-related risks might not currently have a significant impact on measurement, the Company is closely monitoring relevant changes and developments, such as new climate-related legislation. The items and considerations that are most directly impacted by climate-related matters are:

• Useful life of property, plant and equipment. When reviewing the residual values and expected useful lives of assets, the Company considers climate-related matters, such as climate-related legislation and regulations that may restrict the use of assets or require significant capital expenditures.

• Impairment of non-financial assets. The value-in-use may be impacted in several different ways by transition risk in particular, such as climate-related legislation and regulations and changes in demand for the Company''s products.

3.22. Standards notified but not yet effective.

There are no standards that are notified and not yet effective as on the date.

(vi) Performance obligation

Information about the Company''s performance obligations are summarised below:

Sale of manufactured machinery

The performance obligation is satisfied upon dispatch of the machines or sub-machines (part of larger machineries) and payment is generally collected in advance.

In some contracts, supervision services for erection and commissioning are agreed to be provided to customers as a part of sale of manufactured machinery. The supervision services are accounted for as a separate performance obligation and a portion of the transaction price is allocated. The performance obligation for the supervision services is satisfied over one year based on time elapsed.

Sale of traded and manufactured parts of machinery

The performance obligation is satisfied upon delivery of the spare parts and payment is generally due within 30 to 60 days from delivery.

Customers are entitled to loyalty discounts which results in allocation of a portion of the transaction price to the loyalty discounts. Revenue is recognised when the loyalty discount is redeemed.

In addition, the Company updates its estimates of the loyalty discount that will be redeemed on a quarterly basis and any adjustments to the contract liability balance are charged against revenue.

34 EMPLOYEE BENEFIT OBLIGATIONS

As per Ind AS 19 “Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

The Company has one post-employment funded plans, namely Gratuity.

The gratuity plan is governed by the Payment of Gratuity Act, 1972 (Act). Under the Act, an employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at retirement age. Gratuity being administered by a Trust is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The Gratuity plan for the Company is a defined benefit scheme where annual contributions as demanded by the insurer are deposited to a Gratuity Fund established to provide gratuity benefits. The Fund has taken a Scheme of Insurance, whereby these contributions are transferred to the insurer. The Company makes provision of such gratuity asset/liability in the books of accounts on the basis of actuarial valuation as per the projected unit credit method.

VII. Asset Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The Insurance Company, as part of the policy rules, makes all of the gratuity payments happening during the year (subject to sufficiency of funds under the policy). The policy thus mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).

VIII. Effect of Plan on Entity''s Future Cash Flows

(i) Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

(ii) Expected contribution during the next annual reporting period

The Company''s best estimate of Contribution during the next year is Rs. 9.1 Million.

(ii) Fair value hierarchy

Fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

As on March 31, 2024 and March 31, 2023, the Company does not hold any financial instruments which are measured at fair value. Therefore, disclosure under fair value is not applicable to the Company.

(iii) Financial risk management

The Company''s principal financial liabilities comprise of trade payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade receivables, and cash and cash equivalents that derive directly from its operations.

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on it''s financial performance. The market risk to the Group is mainly due to foreign exchange exposure risk, Interest rate risk and other price risk. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer. The Company''s risk management activity focuses on actively securing the Company''s short to medium-term cash flows by minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns. The Group does not actively engage in the trading of financial assets for speculative purposes. The most significant financial risks to which the Group is exposed are described below.

(A) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk includes trade payable, trade receivable, bank deposits, loans.

a) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group has interest bearing bank deposits which are carrying fixed rate of interest. However, the exposure to risk of changes in market interest rates is minimal. The Group has not used any interest rate derivatives to hedge the interest rate risk.

b) Foreign Currency 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 Group''s exposure to the risk of changes in foreign exchange rates relates primarily to the Group''s operating activities (when revenue or expense is denominated in a foreign currency). The Group does not enter into any derivative instruments for trading or speculative purposes.

Foreign Currency sensitivity analysis

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to Euro and US Dollar.

The following table details the Company''s sensitivity to a 10% increase and decrease in the Rupees against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes receivables and payable in currency other than the functional currency of the Company.

A 10% strengthening of the Rupee against key currencies to which the Company is exposed (net of hedge) would have led to additional gain in the Statement of Profit and Loss. A 10% weakening of the Rupee against these currencies would have led to an equal but opposite effect.

c) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing manufacturing of OEM products, and therefore require a continuous supply of steel.

(B) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The Company only deals with parties which has good credit rating/ worthiness given by external rating agencies or based on Companys internal assessment.

40 SEGMENT REPORTING

The Managing Director of the Company has been identified as the Chief Operating Decision Maker ("CODM") as defined by Ind AS 108, Operating Segments. The CODM evaluates the Company''s performance as a whole. Accordingly, the entire Company has been identified as one segment. Hence, no separate segment information has been presented.

The Company is engaged in equipment manufacturer with foundry and surface preparation process technology business which forms the Company''s only primary segment. Secondary segment reporting is based on the location of the Company''s customer, which is provided in the table below. The Company operates mainly in two geographical areas, India and Rest of the world.

Each segment item reported is measured based on the measure used to report to the Chief Operating Decision Maker for the purposes of making decisions about allocating resources to the segment and assessing its performance. Also, all other assets and liabilities are used interchangeably and domiciled in India.

The accounting policies adopted in the preparation of the financial statements are also consistently applied to record revenue and expenditure and assets and liabilities in individual segments. The material accounting policies are set out in note 2 & 3 of financial statements.

45 EVENTS AFTER THE REPORTING PERIOD

The board of directors have proposed dividend after the balance sheet date which are subject to approval by the shareholders at the annual general meeting. Refer note 18c for details.

46 OTHER STATUTORY INFORMATION

( i ) There are no proceedings which have been initiated during the year or are pending against the Company as at March 31, 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.

(ii) As per section 248 of the Companies Act, 2013, there are no balances outstanding or transactions with struck off companies.

(iii) The Company has not traded / invested in Crypto currency or virtual currency.

(iv) The Company has no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(v) 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

(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 on behalf of the Ultimate Beneficiaries.

(vii) The Company has no 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).

(viii) The Company is not a declared willful defaulter by any bank or financial institution or other lender.

(ix) The Company does not have server physically located in India for the daily backup of the books of account and other books and papers maintained in electronic mode.

(x) The Company has migrated from legacy accounting software Microsoft dynamics AX to upgraded version of accounting software Microsoft dynamics 365FO during the year. The audit trail feature in respect of the legacy accounting software is not enabled. The Company is in the process of establishing necessary controls and documentations regarding audit trail in respect of new/ upgraded version of the accounting software.

⁴⁷ The financial statements of the Company for the year ended March 31, 2023, included in these standalone financial statements, have been audited by the predecessor auditor who expressed an unmodified opinion on those statements on May 25, 2023.

For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors

Chartered Accountants DISA India Limited

Firm''s Registration No. 101049W/E300004 CIN: l85110ka1984plc006n6

per Sunil Gaggar Lokesh Saxena Deepa Hingorani

Partner Managing Director Director

Membership No. 104315 DIN: 078^7^ DIN: 00206310

Place: Bangalore

^{Date: May 23}, ²⁰²⁴ Vidya Jayant Shrithee MS

Chief Financial Officer Company Secretary , ACS : 56563

Place :Bangalore Place :Bangalore

Date: May 23, 2024 Date: May 23, 2024

---

Mar 31, 2023

3.11. Provisions

Provisions are recognized when the Company has a present obligation as a result of a past event that it is probable will result in an outflow of economic benefits that can be reasonably estimated.

The amount recognized 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).

3.11.1. Warranties

Provisions for the expected cost of warranty obligations are recognized at the date of sale of the relevant products, based on the best estimate established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures. The timing of outflows will vary as and when warranty claim will arise.

3.12. Investment in subsidiaries

Investment in subsidiaries are carried at cost less impairment if any.

3.13. Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments and are recognized initially at fair value, and subsequently measured at either amortized cost or fair value through profit and loss or other comprehensive income. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (Other than financial assets recorded 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 cost directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

3.14. Financial Assets

Recognition: Financial assets include investments, trade receivables, advances, security deposits, cash & cash equivalents.

Measurement: At initial recognition, the Company measures a financial asset at its fair value plus costs that are directly attributable to the acquisition of the financial asset, except for trade receivables that do not contain a significant financing component, which are measured at transaction price. In the case of financial assets which are recognized at

fair value through profit or loss(FVTPL), its transaction costs are recognized in the statement of profit & loss. In other cases, the transaction costs are attributed to the acquisition value of the financial assets.

All recognized financial assets are subsequently measured in their entirety at either amortized cost or at fair value depending on the classification of the financial assets. Effective interest method: The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Classification: The Company determines the classification of assets at initial recognition depending on the purpose for which the assets were acquired. The subsequent measurement of financial assets depends on such classification. Financial assets are classified as those measured at:

a. Amortized cost, where the financial assets are held solely for collection of cash flows arising from payments of principal and or interest.

b. Fair value through other comprehensive income(FVTOCI) where the financial assets are held not only for collection of cash flow arising from payment of principal and interest but also from sale of such assets. Such assets are subsequently measured at fair value with unrealized gains or losses arising from changes in the fair value being recognized in other comprehensive income.

c. Fair value through profit and loss(FVTPL)where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value with unrealized gains and losses arising from changes in the fair value being recognized in the statement of profit and loss in the period in which they arise.

Trade receivables, advances, security deposits, cash & cash equivalents etc are classified for measurement at amortized cost while investment may fall under any one of the aforesaid classes.

Impairment: The Company assesses at each reporting date whether a financial asset such as investment, trade receivables, advances and security deposits held at amortized cost and financial assets that are measured at fair value through other comprehensive income are tested for impairment based on evidence or information that is available without undue cost or efforts. Expected credit losses are assessed and loss allowances recognized if the credit quality of the financial asset has deteriorated significantly since initial recognition.

Derecognition: A financial asset is derecognized only when the contractual rights to the cash flows from the asset expire or when the Company transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

3.15. Financial liabilities

Borrowings, trade payables and other financial liabilities are initially recognized at the value of the respective contractual obligations.

Classification: Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definition of a financial liability and an equity instrument. All financial liabilities are subsequently measured at amortized cost using the effective interest method or FVTPL.

Financial liabilities at FVTPL: Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising in measurement recognized in profit or loss. Net gain or loss recognized in the profit or loss on the financial liability is included in the Other income or Finance cost line item. Derecognition: A financial liability is derecognized only when the Company''s obligations are discharged, cancelled or have expired.

Derivative financial instruments

Derivative financial instruments such as foreign exchange forward contracts, if any, are held to mitigate the risk of changes in foreign exchange rates on foreign currency assets or liabilities. Derivatives are recognized and measured at fair value. Attributable transaction costs are recognized in the statement of Profit & Loss.

3.16. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Cash for the purpose of cash flow statement comprises cash on hand and demand deposits with banks. Cash equivalents are short term (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

3.17. Segment reporting

Operating segments are components of the Company whose operating results are regularly reviewed by the Chief Operating Decision Maker [CODM] to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available.

Manufacturing and selling of foundry machinery and machinery parts is identified as single operating segment for the purpose of making decision on allocation of resources and assessing its performance (refer note 45).

3.18. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit /(loss ) after tax as adjusted for dividend, interest and other charges to expense

or income relating to the dilutive potential equity shares, by the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit/(loss) per share.

3.19. Standards Issued but Not Effective

On March 31, 2023, the Ministry of Corporate Affairs (MCA) has notified Companies (Indian Accounting Standards) Amendment Rules, 2023. This notification has resulted into amendments in the following existing accounting standards from April 1, 2023.

i. Ind AS 101 - First time adoption of Ind AS

ii. Ind AS 102 - Share-based payment

iii. Ind AS 103 - Business Combinations

iv. Ind AS 107 - Financial Instruments: Disclosures

v. Ind AS 109 - Financial Instruments

vi. Ind AS 115 - Revenue from Contracts with Customers

vii. Ind AS 1 - Presentation of Financial Statements

viii. Ind AS 8 - Accounting Policies, Changes in Accounting

Estimates and Errors

ix. Ind AS 12 - Income Taxes

x. Ind AS 34 - Interim Financial Reporting

The Company is in the process of evaluating the impact of the above amendments on the Company''s financial statements.

Fair value of the Company''s investment property :

Fair valuation of Investment Properties as at March 31, 2023 has been arrived at on the basis of valuation carried out by an independent valuers not related to the Company. The valuers are registered with the authority which governs the valuers in India, and in the opinion of the management he has appropriate qualifications and relevant experience in valuation of properties. For all Investment properties, fair value was determined based on the capitalisation of net income method where the market rentals of all lettable units of the properties are assessed by reference to the rentals achieved in the lettable units as well as other lettings of similar properties in the neighbourhood. The capitalisation rate adopted is with reference to the yield rates observed by the valuers for similar properties in the locality and adjusted based on the valuer''s knowledge of the factors specific to the respective properties. Thus, the significant unobservable inputs are as follows:

1. Monthly market rent, taking into account the difference in location, and individual factors, such as frontage and size, between the comparable and the property; and

2. Capitalisation rate, taking into account the capitalisation of rental income potential, nature of the property, and prevailing market condition. The fair value hierarchy for all investment properties is Level 2 and the fair values are as under:

Fair value as at March 31, 2023 is Rs. 52.3 Million and as at March 31, 2022 was Rs. 50.4 Million.

Expenses and income in respect of investment properties : Expenses (excluding depreciation) amounting to Rs. 0.1 Million (Year ended March 31, 2022:Rs. 0.2 Million) in respect of repairs, electricity charges, security expenses etc. are included in Note 35 ''Other Expenses'' and income amounting to Rs.2.6 Million (Year ended March 31, 2022: Rs.2.5 Million) is included in Note 28 ''Other income''

Note:

2022-23:

The Board of Directors at its meeting on May 25, 2022 had recommended a final dividend of 100% (Rs 10.0 per equity share of par value Rs 10 each) amounting to Rs. 14.5 Million for the financial year ended March 31, 2022, which was approved by the shareholders at the Thirty

Seventh Annual General Meeting of the Company held on August 12, 2022. This has been paid on September 05, 2022.

The Board of Directors at its meeting held on February 09, 2023 declared an interim dividend of Rs. 100 per share (1000%) amounting to Rs 145.4 Million for the financial year 2022-23. This has been paid on March 10, 2023.

The Board of Directors at its meeting on May 25, 2023 has recommended a final dividend of 100% (Rs 10.0 per equity share of par value Rs 10 each) for the financial year ended March 31, 2023, subject to the approval of the shareholders at the next Annual General meeting of the Company. The aggregate amount of final equity dividend proposed to be distributed is Rs 14.5 Million.

2021-22:

The Board of Directors at its meeting on May 20, 2021 had recommended a final dividend of 100% (Rs 10.0 per equity share of par value Rs 10 each) for the financial year ended March 31, 2021, which was approved by the shareholders at the Thirty Sixth Annual General Meeting of the Company held on August 12, 2021.

The Board of Directors at its meeting held on March 28, 2022 declared an interim dividend of Rs. 150 per share (1500%) amounting to Rs 218.1

Million for the financial year 2021-22. This has been paid on April 25, 2022.

VII. Asset Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The Insurance Company, as part of the policy rules, makes payment of all gratuity out goes happening during the year (subject to sufficiency of funds under the policy). The policy thus mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).

VIII. Effect of Plan on Entity''s Future Cash Flows

(i) Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance Company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

(ii) Expected contribution during the next annual reporting period

The Company''s best estimate of Contribution during the next year is Rs. 8.5 Million.

(iv) Financial risk management objectives

The Company''s financial liabilities comprise mainly of trade payables and other payables. The Company''s financial assets comprise mainly of cash and cash equivalent, other balance with banks, loans, trade receivable and other receivable. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

(v) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, currency risk and other risk. Financial instruments affected by market risk includes trade payable, trade receivable, bank deposits, loans and advances.

a) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the Company has interest bearing bank deposits which are carrying fixed rate of interest, the exposure to risk of changes in market interest rates is minimal. The Company has not used any interest rate derivatives.

b) Foreign Currency Risk

Foreign Currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company does not enter into any derivative instruments for trading or speculative purposes.

(vi) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, derivative financial instruments, other balances with banks, loans and other receivables.

(a) Trade receivables management

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivable based on a provision matrix. The Provision matrix takes into account historical credit loss experience and adjusted for forward -looking information.

The reversal/allowance for life time expected credit loss on customer balances for the year ended is disclosed in Note 14.

(b) Other financial assets

Credit risk arising from derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are nationalised and private banks.

(vii) Liquidity Risk

Liquidity risk refers to 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 objective of liquidity risk management, is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents.

The following table detail the analysis of derivative as well as non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

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

(iv) 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 on behalf of the Ultimate Beneficiaries.

(v) The Company has no 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).

(vi) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, except as disclosed in the financial statements.

(vii) The backup of the books of account maintained by the Company in electronic mode has been kept on monthly basis, in a server physically located in India

(viii) The Company is not a declared willful defaulter by any bank or financial institution or other lender.

For and on behalf of the Board of Directors

Lokesh Saxena Deepa Hingorani

Managing Director, DIN: 07823712 Director, DIN: 00206310

Bhagya Chandra Rao

Director, DIN: 00211127

Amar Nath Mohanty Shrithee.MS

Chief Financial Officer Company Secretary, ACS: 56563

Place: Bangalore Place: Bangalore

Date : May 25, 2023 Date : May 25, 2023

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Mar 31, 2022

Fair value of the company''s investment property :

Fair valuation of Investment Properties as at March 31, 2022 has been arrived at on the basis of valuation carried out by an independent valuer not related to the Company. The valuer is registered with the authority which governs the valuers in India, and in the opinion of the management he has appropriate qualifications and relevant experience in valuation of properties. For all Investment properties, fair value was determined based on the capitalisation of net income method where the market rentals of all lettable units of the properties are assessed by reference to the rentals achieved in the lettable units as well as other lettings of similar properties in the neighbourhood. The capitalisation rate adopted is with reference to the yield rates observed by the valuers for similar properties in the locality and adjusted based on the valuer''s knowledge of the factors specific to the respective properties. Thus, the significant unobservable inputs are as follows:

1. Monthly market rent, taking into account the difference in location, and individual factors, such as frontage and size, between the comparable and the property; and

2. Capitalisation rate, taking into account the capitalisation of rental income potential, nature of the property, and prevailing market condition. The fair value hierarchy for all investment properties is Level 2 and the fair values are as under: Fair value as at March 31, 2022 is Rs. 50.4 Million and as at March 31, 2021 was Rs. 35 Million. Expenses and income in respect of investment properties : Expenses (excluding depreciation) amounting to Rs. 0.2 Million (Year ended March 31, 2021:Rs. 0.2 Million). Expenses in respect of repairs, electricity charges, security expenses etc. are included in Note 35 ''Other Expenses'' and income amounting to Rs.2.5 Million (Year ended March 31, 2021: Rs.1.8 Million) is included in Note 28 ''Other income''

iv) Details of rights, preferences and restrictions in respect of equity shares:

The Company has one class of Shares referred to as Equity Shares with par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the share holders.

The Equity shareholders are entitled to receive dividend proposed (if any) by the Board of Directors which is subject to the approval of the shareholders in the Annual General meeting, except in case of Interim Dividend.

v) During the year ended March 31, 2017, the Company has concluded the buyback of 56,000 fully paid equity shares.

Note:

2021-22:

The Board of Directors at its meeting on May 20, 2021 had recommended a final dividend of 100% (Rs 10.0 per equity share of par value Rs 10 each) for the financial year ended March 31, 2021, which was approved by the shareholders at the Thirty Sixth Annual General Meeting of the Company held on August 12, 2021.

The Board of Directors at its meeting held on March 28, 2022 declared an interim dividend of Rs. 150 per share (1500%) amounting to Rs 218.1 Million for the financial year 2021-22. This has been paid on April 25, 2022.

The Board of Directors at its meeting on May 25, 2022 has recommended a final dividend of 100% (Rs 10.0 per equity share of par value Rs 10 each) for the financial year ended March 31, 2022, subject to the approval of the shareholders at the next Annual General meeting of the Company. The aggregate amount of final equity dividend proposed to be distributed is Rs 14.5 Million.

2020-21:

The Board of Directors at its meeting on June 3, 2020 had recommended a final dividend of 25% (Rs 2.5 per equity share of par value Rs 10 each) for the financial year ended March 31, 2020 which was approved by the shareholders at the Thirty Fifth Annual General meeting of the Company held on August 12, 2020.

Buyback of equity shares

During the year ended March 31, 2017, the Company had concluded the buyback of 56,000 fully paid equity shares as approved by the board of directors on August 12, 2016 at a price of Rs. 4,800/- per share amounting to Rs. 268.8 Million. Further Capital Redemption reserve of Rs 0.6 Million has been created as an apportionment from retained earnings. Consequent to the buyback, share capital has reduced by Rs. 0.6 Million Capital reserve

Any profit or loss on purchase, sale, issue or cancellation of the Company''s own equity instruments is transferred to capital reserve.

Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk.

a) Interest risk: a decrease in the bond interest rate will increase the plan liability.

b) Salary risk: the present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, a variation in the expected rate of salary increase of the plan participants will change the plan liability.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

VII. Asset Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The Insurance Company, as part of the policy rules, makes payment of all gratuity out goes happening during the year (subject to sufficiency of funds under the policy). The policy thus mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).

VIII. Effect of Plan on Entity''s Future Cash Flows

(i) Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

(ii) Expected contribution during the next annual reporting period

The Company''s best estimate of Contribution during the next year is Rs. 7.4 Million.

The Carrying amount reflected above represents the Company''s maximum exposure to credit risk for such financial assets.

iii. Fair value hierarchy:

Fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

iv. Financial risk management objectives

The Company''s financial liabilities comprise mainly of trade payables and other payables. The Company''s financial assets comprise mainly of cash and cash equivalent, other balance with banks, loans, trade receivable and other receivable. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

v. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, currency risk and other risk. Financial instruments affected by market risk includes trade payable, trade receivable, bank deposits, loans and advances.

a. Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the Company has interest bearing bank deposits which are carrying fixed rate of interest, the exposure to risk of changes in market interest rates is minimal. The Company has not used any interest rate derivatives.

b. Foreign Currency Risk

Foreign Currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company does not enter into any derivative instruments for trading or speculative purposes.

Foreign Currency sensitivity analysis

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to Euro and US Dollar.

The following table details the Company''s sensitivity to a 10% increase and decrease in the Rupees against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes receivables and payable in currency other than the functional currency of the Company.

A 10% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to additional gain in the Statement of Profit and Loss. A 10% weakening of the INR against these currencies would have led to an equal but opposite effect.

vi. Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, derivative financial instruments, other balances with banks, loans and other receivables.

a. Trade receivables management

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivable based on a provision matrix. The Provision matrix takes into account historical credit loss experience and adjusted for forward -looking information.

The reversal/allowance for life time expected credit loss on customer balances for the year ended is disclosed in Note 14. b. Other financial assets

Credit risk arising from derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are nationalised and private banks.

vii. Liquidity Risk

Liquidity risk refers to 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 objective of liquidity risk management, is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents.

The following table detail the analysis of derivative as well as non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

viii. Capital management

The Company manages its capital structure with a view to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The Company''s management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers the cost of Capital and the risks associated with each class of capital. The company does not have any borrowings and its entire capital is funded through equity.

47 Additional regulatory information not disclosed elsewhere in the financial statements

i. As per section 248 of the Companies Act, 2013, there are no balances outstanding or transactions with struck off companies.

ii. The Company has not traded / invested in Crypto currency or virtual currency.

iii. 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

iv. 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 on behalf of the Ultimate Beneficiaries.

v. The Company has no 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).

vi. The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, except as disclosed in the financial statements.

vii. The Company is not a declared willful defaulter by any bank or financial institution or other lender.

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Mar 31, 2018

NOTE 1

1. General information

1.1 DISA India Limited (‘the Company’) is a public limited company incorporated in India in 1984 under the Companies Act 1956.It is listed on Bombay Stock Exchange and headquartered in Bangalore. Its Promoters are DISA Holding AG of Switzerland and DISA Holding A/S of Denmark which hold 54.10% and 20.72% of share capital of the Company respectively. The Company’s ultimate holding company is Norican Global A/S, Denmark.

The Company is a leading equipment manufacturer with advanced foundry and surface preparation process technology. It supplies complete foundry systems with DISA range of moulding machines, sand mixers with combination of sand plant equipment, surface preparation machines and environmental control systems to customers across the country with its network of sales offices in New Delhi, Pune, Kolkata and Bangalore with its two manufacturing plants located in Tumkur and Hosakote in Bangalore, Karnataka.

1.2. The Company’s standalone financial statements were approved by the Company’s Board of Directors on May 24, 2018.

2. Significant accounting policies

2.1. The financial statements of Disa India Limited have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015. Up to the year ended March 31, 2017 the Company prepared its financial statements in accordance with Standards notified under the Companies (Accounting Standards) Rules, 2006. Financial Statements for the current financial year 2017-18 are the Company’s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Refer Note 3.20 for the details of first-time adoption exemptions availed by the Company.

2.2. Basis of Preparation and Presentation

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

2.3. Functional currency

Financial statements are presented in Indian Rupees, which is the functional currency of the Company, and the currency of primary economic environment in which the Company operates. All the financial information presented in Indian Rupees has been rounded to the nearest million except shares and earning per share data which are presented in absolute terms.

2.4. Use of estimates and judgements

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities & disclosures of contingent assets and liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognized in the period in which the estimate is revised, and future periods affected.

Critical estimates and judgments:

Areas involving critical judgments are

i) Note 35 - Estimation of defined benefit obligations

ii) Note 21 - Estimation for provisions of warranty claims

Fair value of the company’s investment property :

Fair valuation of Investment Properties as at March 31, 2018, March 31, 2017 and April 1, 2016 has been arrived at on the basis of valuation carried out as on respective dates by an independent valuer not related to company. The valuer is registered with the authority which governs the valuers in India, and in the opinion of management he has appropriate qualifications and recent experience in the valuation of properties. For all Investment properties, fair value was determined based on the capitalisation of net income methods where the market rentals of all lettable units of the properties are assessed by reference to the rentals achieved in the lettable units as well as other lettings of similar properties in the neighbourhood. The capitalisation rate adopted is made by reference to the yield rates observed by the valuers for similar properties in the locality and adjusted based on the valuer’s knowledge of the factors specific to the respective properties. Thus, the significant unobservable inputs are as follows:

1. Monthly market rent, taking into account the difference in location, and individual factors, such as frontage and size, between the comparable and the property; and

2. Capitalisation rate, taking into account the capitalisation of rental income potential, nature of the property, and prevailing market condition. The fair value hierarchy for all investment properties is Level 2 and the fair values are as under:

Fair value as at March 31, 2018 is Rs. 39.5 Million, as at March 31, 2017 was Rs. 37.7 Million and as at April 1, 2016, 36.9 Million.

Expenses and income in respect of investment properties Expenses (excluding depreciation) amounting to 0.1 Million (FY 2017-2018: 0.1 Million) in respect of repairs,electricity charges, security expenses etc. are included in Note 36 ‘Other Expenses’ and income amounting to 1.6 Million (FY 2016-2017: 1.7 Million) is included in Note 29 ‘Other income.

The cost of inventory recognised as an expense/(income) includes Rs. (2.1) Million (during 2016-17: Rs. 4.0 Million) in respect of obsolete raw material, Rs 0.4 Million (during 2016-17 Rs. (1.3) Million), Work in progress Rs (2.5) Million (during 2016-17 Rs.5.3 Million).

iv) Details of rights, preferences and restrictions in respect of equity shares :

The Company has one class of Shares referred to as Equity Shares with par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the share holders.

The Equity shareholders are entitled to receive dividend proposed (if any) by the Board of Directors which is subject to the approval of the shareholders in the ensuing Annual General meeting, except in case of Interim Dividend.

v) During the year ended March 31, 2017, the Company had concluded the buyback of 56,000 fully paid equity shares as approved by the board of directors on August 12, 2016 at a price of Rs. 4,800/- per share amounting to Rs. 268.8 Million. In line with the Companies Act 2013, an amount of Rs. 109.1 Million, Rs. 142.6 Million and Rs 17.1 Million have been utilised from Security premium account, General reserve and Surplus in profit and loss account respectively. Further Capital Redemption reserve of Rs 0.6 Million has been created as an apportionment from retained earnings. Consequent to the buyback, share capital has reduced by Rs. 0.6 Million.

Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

These plans typically expose the Company to actuarial risks such as interest rate risk and salary risk.

a) Interest risk: a decrease in the bond interest rate will increase the plan liability.

b) Salary risk: the present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, a variation in the expected rate of salary increase of the plan participants will change the plan liability.

VI. Sensitivity Analysis

Significant actuarial assumptions for the determination of defined obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

VII. Asset Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The Insurance Company, as part of the policy rules, makes payment of all gratuity out goes happening during the year (subject to sufficiency of funds under the policy). The policy thus mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).

VIII.Effect of Plan on Entity’s Future Cash Flows

(i) Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

(ii) Expected contribution during the next annual reporting period

The Company’s best estimate of Contribution during the next year is Rs. 13.2 Million.

IX. Expected outflow in future years (as provided in actuarial report)

Other than above, the company has not given any loans or advances in the nature of loan to subsidiary and in which directors are interested. There are no loans where either no interest is charged or interest is below the rate specified in section 186 of the Companies Act, 2013, wherever applicable.

3 Financial instruments

(i) Financial assets and liabilities

The carrying value and fair value of financial instrument by category is as follows

(ii) Categories of Financial Instruments

The Carrying amount reflected above represents the Company’s maximum exposure to credit risk for such financial assets.

(ii) Fair value hierarchy:

Fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

- Level 3 inputs are unobservable inputs for the asset or liability.

(iii) Financial risk management objectives

The Company’s financial liabilities comprise mainly of trade payables and other payables. The Company’s financial assets comprise mainly of cash and cash equivalent, other balance with banks, loans, trade receivable and other receivable. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

(iv) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, currency risk and other risk. Financial instruments affected by market risk includes trade payable, trade receivable, bank deposits, loans and advances.

a) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the Company has interest bearing bank deposits which are carrying fixed rate of interest, the exposure to risk of changes in market interest rates is minimal. The Company has not used any interest rate derivatives.

b) Foreign Currency Risk

Foreign Currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company does not enter into any derivative instruments for trading or speculative purposes.

The carrying amount of the Company’s Foreign Currency denominated monetary items are as follows;

Foreign Currency sensitivity analysis

The Company is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to Euro and US Dollar.

The following table details the Company’s sensitivity to a 10% increase and decrease in the Rupees against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes receivables and payable in currency other than the functional currency of the Company.

A 10% strengthening of the INR against key currencies to which the Company is exposed (net of hedge) would have led to additional gain in the Statement of Profit and Loss. A 10% weakening of the INR against these currencies would have led to an equal but opposite effect.

(v) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, derivative financial instruments, other balances with banks, loans and other receivables.

(a) Trade receivables management

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivable based on a provision matrix. The Provision matrix takes into account historical credit loss experience and adjusted for forward -looking information.

(b) Other financial assets

Credit risk arising from derivative financial instruments and other balances with banks is limited and there is no collateral held against these because the counterparties are nationalised and private banks.

(vi) Liquidity Risk

Liquidity risk refers to 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 objective of liquidity risk management, is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents.

The following table detail the analysis of derivative as well as non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

(vii) Capital management

The Company manages its capital structure with a view to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The Company’s management reviews the capital structure of the Company on an annual basis. As part of this review, the management considers the cost of Capital and the risks associated with each class of capital. The company does not have any borrowings and its entire capital is funded through equity

Non-current assets include property, plant and equipment, intangible assets, insvestment property, capital advances and pre-paid expenses. It is allocated based on the geographic location of the respective assets.

(iii) Major customers :

The Company has no external customer which accounts for more than 10% of the Group’s total revenue for the year ended March 31, 2018 and March 31, 2017

4 Proposed dividend

The Board of Directors in their meeting held on May 24, 2018, proposed a final equity dividend of Rs. 2.5 per equity share of Rs 10.00 each fully paid up for the year 2017-18. The aggregate amount of final equity dividend proposed to be distributed is Rs 4.4 Million including dividend distribution tax of Rs 0.7 Million.

5 A Notes for the reconciliation

(i) Under the previous GAAP, there was no requirement to present investment property separately and the same was included under property, plant and equipment and measured at cost. Under Ind AS, investment property is required to be presented separately in the balance sheet and depreciation is charged on it. Accordingly, the carrying value of investment property as at April 1, 2016 of Rs. 3 Million and as at March 31, 2017 of Rs. 2.9 (after considering depreciation) Million under previous GAAP has been reclassified to a separate line item on the face of the balance sheet and depreciation provided based on the estimated useful life.

(ii) Under Ind AS, security deposit given against operating lease are presented at fair value by discounting it taking lease contract period and the differential amount has been treated as advance rentals to be amortised as rent over lease period. Accordingly, security deposit amount has been reduced by Rs. 2.2 Million as at March 31, 2017 (Rs. 1.0 Million as at April 1, 2016) and advance rental has been recognised at 2.2 Million at March 31, 2017 (Rs. 1.0 Million as at April 1, 2016). Consequently, rent expense and interest income for the year ended March 31, 2017 are higher by Rs.0.2. Million and Rs. 0.2 Million respectively.

(iii) Under Ind AS, liability for dividend is recognized in the period in which the obligation to pay is established. Under previous GAAP, a liability is recognized in the period to which the dividend relates, even though the dividend may be approved by the shareholders subsequent to the reporting date. Consequently, dividend payable under Ind AS is lower and retained earning is higher.

(iv) Under previous GAAP, revenue from sale of products was recognized and the provision for Supervision of Installation and commissioning which were pending on the reporting date were accrued. Under In AS, revenue from Supervision of Installation and commissioning being separately identifiable components of a sale of Product, is recognized after the completion of the Supervision of Installation and commissioning.

(v) Under previous GAAP, revenue from sale of products was presented net of excise duty under revenue from operations. Whereas, under Ind AS, revenue from sale of products includes excise duty. The corresponding excise duty expense is presented separately on the face statement of profit and loss. The change does not affect total equity as at April 01, 2016 and March 31, 2017, profit before tax or total profit for the year ended March 31, 2017.

(vi) Under previous GAAP, actuarial gains and losses were recognised in the statement of profit and loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability/ asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of the statement of profit and loss.

(vii) Under previous GAAP, there was no concept of other comprehensive Income. Under Ind AS, specified items of income, expense, gains, or losses are required to be presented in other comprehensive income.

(viii) Under previous GAAP, the Company had created provision for impairment of receivables only in respect of specific amount for doubtful receivables. Under Ind AS, additional impairment allowance has been determined based on Expected Credit Loss (ECL) model. Consequent to this change, on the date of transition to Ind AS, an allowance/(reversal) for ECL of Rs. 0.5 Million and for the year ended on March 31. 2017 an amount of Rs. (0.1 Million) on trade receivables.

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Mar 31, 2017

Note 1. Disclosures under Accounting Standards

2.Disclosure Pursuant to AS-15 (Revised) a) Defined Contribution Plans

The Company makes Provident Fund , Employees state Insurance and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes , the company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.12.9 Million (March 31, 2016:Rs.10.6 Million) for Provident Fund contributions and Rs. 6 Million (March 31, 2016: Rs.5.6 Million ) for Superannuation Fund contributions and Rs. 0.1 Million (March 31, 2016: Rs.0.2 Million) for Employees State insurance scheme contribution in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3 Business segment is identified as the primary segment and after considering all relevant factors. The company is engaged in manufacture of machinery and machinery parts and is considered to constitute a single segment in the context of AS-17 on "Segment Reporting" referred to in the Companies Act, 2013.

The geographic segments individually contributing 10 percent or more of the Company''s revenues and segment assets are shown separately:

Note: Future cash outflow in respect of the above is determinable only on occurrence of uncertain future events

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Mar 31, 2016

iv) Details of rights, preferences and restrictions in respect of equity shares :

The Company has one class of Shares referred to as Equity Shares with par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the share holders.

The Equity Shareholders are entitled to receive dividend proposed by the Board of Directors which is subject to the approval of the shareholders in the ensuing Annual General meeting, except in case of Interim Dividend.

Notes forming part of the financial statements for year ended March 31, 2016

1. During the previous year , pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1, 2014 , the Company has revised the estimated useful life of some of its assets to align the useful life with those specified in Schedule II. Further, assets individually costing Rs 10,000 or less that were depreciated fully in the year of purchase are now depreciated based on the useful life considered by the Company for the respective category of assets. The details of previously applied useful life and current useful life are as follows:

2. Previous financial year is for a period of 15 months commencing from 1st Jan 2014 and ended 31st March 2015 and are not directly comparable with the current year number. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2015

1. Notes :

i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the year :

There is no change in the number of shares and amount of share capital at the beginning and at the end of the year.

ii) Details of rights, preferences and restrictions in respect of equity shares :

The Company has one class of Shares referred to as Equity Shares with par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the share holders.

The Equity Shareholders are entitled to receive dividend proposed by the Board of Directors which is subject to the approval of the shareholders in the ensuing Annual General meeting, except in case of Interim Dividend.

iii) Details of shares held by holding company, the ultimate holding company, their subsidiaries and associates 818,902 (PY-818,902) Equity Shares are held by Disa Holding AG, Switzerland (54.22%) (PY-54.22%) 313,751 (PY-313,751) Equity Shares are held by Disa Holding AS, Denmark (20.78%) (PY-20.78%) . Disa Holding AG is a fully owned subsidiary of Disa Holding AS.

iv) Shareholders other than the companies mentioned in Note (iii) above holding more than 5% of total share capital 90,000 (PY - 94,476) Equity Shares are held by IDFC Premier Equity Fund (5.96%) (PY- 6.26%)

As at As at Particulars 31st March, 31st December, 2015 2013 Rs. Lakhs Rs. Lakhs

2. Contingent Liabilities and Commitments

(i) Claims against company not acknowledged as debt - Service Tax 14 11

* CST /VAT 123 47

* Excise Duty 5 1

(ii) In addition to the above, the Company received a demand notice for Rs. 1,084 Lakhs towards non submission of Form C from customers for the year 2013-14 including interest and penalty. The Company have submitted subsiquent to year end C Forms except for Rs. 155 Lakhs, which would be done in due course. The Company does not except any liabilities on this amount.

Note : a) Outflow, if any, arising out of the said claim including interest would depend on the outcome of the decision of the appelette authority and the company's reight for future appeal before the judiciary.

(iii) Estimated amount of contracts remaining to be executed on capital 35 3 account and not provided for tangible assets

Note 3. Disclosures under Accounting Standards

3.1 Disclosure Pursuant to AS-15 (Revised)

a) Defined Contribution Plans

The Company makes Provident Fund , Employees state Insurance and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes , the company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 126 Lakhs ( December 31, 2013: Rs.105 Lakhs) for Provident Fund contributions and Rs. 66 Lakhs (December 31, 2013: Rs.46 Lakhs ) for Superannuation Fund contributions and Rs. 3 Lakhs ( December 31, 2013: Rs. 4 Lakhs) for Employees State insurance scheme contibution in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

4. Note :

i) The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.

ii) The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

iii) LIC with whom the scheme has been funded has advised that the portfolio of the scheme as at 31st March 2014, the latest date for which such information has been compiled by them.

iv) Estimate of amount of contribution in the immediate next year is Rs 40.00 Lakhs (December 31, 2013: Rs 40 Lakhs)

5. The financial year of the company has been changed from 31st December to 31st March, consequently the current financial year is for a period of 15 months commencing January 1, 2014 and ended March 31, 2015 and accordingly not directly comparable with previous year number. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Dec 31, 2013

1. Disclosure Pursuant to AS-15 (Revised)

a) Defined Contribution Plans

The Company makes Provident Fund, Employees State Insurance and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.i05 Lakhs ( PY-Rs.87 Lakhs ) for provident fund contributions and Rs.46 Lakhs ( PY-Rs.39 Lakhs ) for superannuation fund contributions and Rs. 4 Lakhs ( PY- Rs.5 Lakhs) for employees state insurance scheme contribution in the statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

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Dec 31, 2012

Rights, preferences and restrictions in respect of equity shares :

The Company has one class of Shares referred to as Equity Shares with par value of Rs 10/- , each holder of Equity shares has one vote per share.

The Equity Shareholders are entitled to receive dividend proposed by the Board of Directors which is subject to the approval of the shareholders in the enusing Annual General meeting , except in case of Interim Dividend.

I Disclosure Pursuant to AS-15 (Revised)

1. Defined Contribution Plans

An Amount of Rs. 130.77 lakhs (previous year Rs.113.45 lakhs) is recognised as an expense and included in "Employee benefit expense " (Note 19 in the Profit and Loss Account)

II (a) During the year ended 31 December 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its Financial Statements. Accordingly, the Company has reclassified / regrouped/ amended the previous year figures in accordance with the requirements applicable in the current year.

(b) Prior to 1st January 2012, the cost of inventories was determined on weighted average basis. Consequent to the shift to a new ERP platform , the Company has changed the determination of inventory to the first-in first-out method . The impact of, and the adjustments resulting from, such change has no material effect on the financial statements for the current period.

(c) Figures in brackets indicate previous year''s figures.

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Dec 31, 2011

Not Available

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Dec 31, 2009

SI. Description For the year Previous Year No. Rs.000 Rs.000

I CONTINGENT LIABILITIES:

a) i) Guarantees given by Bank 40,419 83,290

ii) LC issued by Bank - 739

iii) Corporate Guarantees given 272 -

b) Estimated amount of contracts remaining to be executed on capital account and not provided for - 5,600

c) Claims against company not acknowledged as debt— Income tax 1,910 -

— Service tax 196 -

— Others 492 -

I Disclosure Pursuant to AS-15 (Revised)

1. Defined Contribution Plans

An amount of Rs.82.80 lakhs (previous year Rs.87.58 lakhs) is recognised as an expense and included in "Manufacturing and Other Expenses" (Schedule 12 (f)) in the Profit and Loss Account.

II Amount of borrowing costs capitalised during the year - Nil ( 2008- Nil)

III Previous years figures have been re-grouped/reclassified wherever necessary. Figures in brackets indicate previous years figures.