Notes to Accounts of Kilburn Engineering Ltd.

Mar 31, 2025

Provisions, Contingent Liabilities and Assets

Provisions are recognised when the Company has a
binding present obligation. This may be either legal
because it derives from a contract, legislation or other
operation of law, or constructive because the Company
created valid expectations on the part of third parties
by accepting certain responsibilities. To record such
an obligation it must be probable that an outflow of
resources will be required to settle the obligation and
a reliable estimate can be made for the amount of the
obligation. The amount recognised as a provision and the
indicated time range of the outflow of economic benefits
are the best estimate (most probable outcome) of the
expenditure required to settle the present obligation at
the balance sheet date, taking into account the risks and
uncertainties surrounding the obligation. Non-Current
provisions are discounted for giving the effect of time
value of money.

Contingent liabilities are disclosed when there is a
possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not
wholly within the control of the Company or a present
obligation that arises from past events where it is either
not probable that an outflow of resources will be required
to settle the obligation or a reliable estimate of the
amount cannot be made

A contingent asset is not recognised but disclosed in the
financial statements where an inflow of economic benefit
is probable.

Provisions, contingent assets and contingent liabilities
are reviewed at each balance sheet date.

Employee Benefit Plans

The cost of defined benefit gratuity plan and other post¬
employment benefits are determined using actuarial
valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments
in the future. These include the determination of the
discount rate, future salary increases and mortality
rates. Due to the complexities involved in the valuation
and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

The parameter most subject to change in the discount
rate. In determining the appropriate discount rate for plans

operated in India, the management considers the interest
rates of government bonds in currencies consistent with
the currencies of the post employment benefit obligation.

The mortality rate is based on publicly available mortality
tables for India. Those mortality tables tend to change
only at interval in response to demographic changes.
Future salary increases are based on expected future
inflation rates for the respective countries.

Further details about gratuity obligations are given in
Note 36.

Property Plant & Equipment

An item of property, plant and equipment (PPE) that
qualifies as an asset is measured on initial recognition
at cost. Following initial recognition, items of PPE are
carried at their cost less accumulated depreciation and
accumulated impairment losses, if any. Item of PPE which
reflects significant cost and has different useful life from
the remaining part of PPE is recognised as a separate
component.

Capital work in progress and Capital advances

Cost of assets not ready for intended use, as on the
Balance Sheet date, is shown as capital work in progress.
Advances given towards acquisition of fixed assets
outstanding at each Balance Sheet date are disclosed
as Other Non-Current Assets.

Depreciation

Assets are depreciated to the residual values on the
straight-line basis over the estimated useful lives.
Estimated useful lives of the assets are as follows:

The Company, based on technical assessment made by
technical expert and management estimate, depreciates
certain items of building, plant and equipment over
estimated useful lives which are different from the useful
life prescribed in Schedule II to the Companies Act, 2013.
The management believes that these estimated useful
lives are realistic and reflect fair approximation of the
period over which the assets are likely to be used.

An item of property, plant and equipment and any
significant part initially recognised is derecognised
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the
carrying amount of the asset) is included in the statement
of profit and loss when the asset is derecognised.

The residual values, useful lives and methods of
depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted
prospectively, if appropriate.

Right of Use of Assets

At the date of commencement of the lease, the
Company recognizes a right-of-use asset (“ROU”) and a
corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of twelve
months or less (short-term leases) and low value leases.
For these short-term and low value leases, the Company
recognizes the lease payments as an operating expense
on a straight-line basis over the term of the lease.

As a lessee, the Company determines the lease term as
the non-cancellable period of a lease adjusted with any
option to extend or terminate the lease, if the use of such
option is reasonably certain. The Company makes an
assessment on the expected lease term on a lease-by¬
lease basis and thereby assesses whether it is reasonably
certain that any options to extend or terminate the
contract will be exercised. In evaluating the lease term,
the Company considers factors, such as any significant
leasehold improvements undertaken over the lease
term, costs relating to the termination of the lease and
the importance of the underlying asset to the operations
taking into account the location of the underlying asset
and the availability of suitable alternatives. The lease
term in future periods is reassessed to ensure that the
lease term reflects the current economic circumstances.

Certain lease arrangements include the options to extend
or terminate the lease before the end of the lease term.
ROU assets and lease liabilities include these options
when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying
asset. Right-of-use assets are evaluated for recoverability
whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable.
For impairment testing, the recoverable amount (i.e. the
higher of the fair value less cost to sell and the value-in¬
use) is determined on an individual asset basis unless
the asset does not generate cash flows that are largely
independent of those from other assets. In such cases,
the recoverable amount is determined for the Cash
Generating Unit (CGU) to which the asset belongs.

Intangible Asset

Intangible assets acquired separately are measured on
initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value
at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any accumulated
amortisation and accumulated impairment losses.

Amortisation

Software is amortized over management estimate of its
useful life of 5 years on straight line basis.

Financial Instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

a) Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair
value, plus in the case of financial assets not recorded
at fair value through profit or loss, transaction costs
that are attributable to the acquisition of the financial
asset.

Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in four categories:

• Financial assets at amortised cost

• Financial assets at fair value through other
comprehensive income (FVTOCI)

• Financial assets at fair value through profit or
loss (FVTPL)

• Equity instruments measured at fair value
through other comprehensive income (FVTOCI)

Financial assets at amortised cost

A ‘Financial asset’ is measured at the amortised cost
if both the following conditions are met:

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

• 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. This category generally applies to trade
receivables. For more information on receivables,
refer to note 7 of the financial statements.

Financial assets at fair value through Other
Comprehensive Income

Financial assets are measured at FVTOCI if these
financial assets are held within a business model
whose objective is achieved both by collecting
contractual cash flows and selling the financial
assets and the asset’s contractual cash flow
represents SPPI.

Financial instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognized in the other comprehensive income
(OCI). However, the Company recognizes dividend
income in the Statement of Profit and Loss. On
derecognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified from the
equity to Statement of Profit and Loss.

Financial assets at fair value through profit or
loss

FVTPL is a residual category for financial assets. Any
financial assets, which does not meet the criteria for
categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL.

In addition, the company may elect to designate a
financial asset, which otherwise meets amortized
cost or FVTOCI criteria, as at FVTPL. However,
such election is allowed only if doing so reduces
or eliminates a measurement or recognition
inconsistency (referred to as ‘accounting mismatch’).

Financial assets included within the FVTPL
category are measured at fair value with all changes
recognized in the P&L.

Equity Investments

All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading and contingent consideration
recognised by an acquirer in a business combination
to which Ind AS 103 applies are classified as at
FVTPL. For all other equity instruments, the company
may make an irrevocable election to present in other
comprehensive income subsequent changes in the
fair value. The company makes such election on an
instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends,
are recognized in the OCI. There is no recycling
of the amounts from OCI to P&L, even on sale of
investment. However, the Company may transfer the
cumulative gain or loss within equity.

Equity instruments included within the FVTPL
category are measured at fair value with all changes
recognized in the P&L.

Investment in Subsidiaries

The Company has elected to recognise its
investments in subsidiary at cost in accordance with
the option available in Ind AS 27, ‘Separate Financial
Statements’. Cost includes cash consideration paid
on initial recognition and fair value of non-cash
considerations, adjusted for embedded derivative
and estimated contingent consideration (earn out),
if any. The details of such investments are given
in Note 6(a). Impairment policy applicable on such
investments is explained in note below.

Derecognition

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from
the Company’s balance sheet) when:

• The rights to receive cash flows from the asset
have expired, or

• The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay
to a third party under a ‘pass-through’
arrangement; and either (a) the Company
has transferred substantially all the risks and
rewards of the asset, or (b) the Company has
neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates if and
to what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the
Company continues to recognise the transferred
asset to the extent of the Company’s continuing
involvement. In that case, the company also
recognises an associated liability. The transferred
asset and the associated liability are measured on
a basis that reflects the rights and obligations that
the Company has retained.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured
at the lower of the original carrying amount of the

asset and the maximum amount of consideration
that the Company could be required to repay.

Impairment

Assessment for impairment is done at each Balance
Sheet date as to whether there is any indication
that a non-financial asset may be impaired. Assets
that have an indefinite useful life are not subject
to amortisation and are tested for impairment
annually and whenever there is an indication that
the asset may be impaired. For the purpose of
impairment testing, goodwill acquired in a business
combination is allocated to each of the Company’s
cash generating units (CGUs) that are expected to
benefit from the combination.

Assets that are subject to depreciation and
amortisation and assets representing investments
in subsidiary and associate companies are reviewed
for impairment, whenever events or changes in
circumstances indicate that carrying amount may not
be recoverable. Such circumstances include, though
are not limited to, significant or sustained decline in
revenues or earnings and material adverse changes
in the economic environment.

An impairment loss is recognised whenever the
carrying amount of an asset or its CGU exceeds
its recoverable amount. The recoverable amount
of an asset is the greater of its fair value less cost
to sell and value in use. To calculate value in use,
the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that
reflects current market rates and the risk specific
to the asset. For an asset that does not generate
largely independent cash inflows, the recoverable
amount is determined for the CGU to which the
asset belongs. Fair value less cost to sell is the best
estimate of the amount obtainable from the sale of
an asset in an arm’s length transaction between
knowledgeable, willing parties, less the cost of
disposal.

Impairment losses, if any, are recognised in the
Statement of Profit and Loss and included in
depreciation and amortisation expense. Impairment
losses, on assets other than goodwill are reversed
in the Statement of Profit and Loss only to the
extent that the asset’s carrying amount does not
exceed the carrying amount that would have been
determined if no impairment loss had previously
been recognised.

b) Financial Liabilities

(i) Initial recognition and measurement of
Financial Liabilities

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables, or as derivatives designated as
hedging instruments in an effective hedge, as
appropriate.

All financial liabilities are recognised initially at
fair value minus, in the case of financial liabilities
not recorded at fair value through profit or loss,
transaction costs that are attributable to the
issue of the financial liabilities.

The Company’s financial liabilities include trade
and other payables, loans and borrowings and
derivative financial instruments.

(ii) Subsequent measurement of financial
liabilities

The measurement of financial liabilities
depends on their classification, as described
below:

• Financial liabilities at fair value through

profit or loss

Financial liabilities at fair value through
profit or loss include financial liabilities
held for trading and financial liabilities
designated upon initial recognition as at
fair value through profit or loss. Financial
liabilities are classified as held for trading
if they are incurred for the purpose
of repurchasing in the near term. This
category also includes derivative financial
instruments entered into by the Company
that are not designated as hedging
instruments in hedge relationships as
defined by Ind-AS 109.

Gains or losses on liabilities held for
trading are recognised in the profit or
loss.

Financial liabilities designated upon initial
recognition at fair value through profit
or loss are designated at the initial date
of recognition, and only if the criteria in
Ind-AS 109 are satisfied. For liabilities
designated as FVTPL, fair value gains/
losses attributable to changes in own credit
risks are recognized in OCI. These gains/
loss are not subsequently transferred to
P&L. However, the Company may transfer
the cumulative gain or loss within equity.
All other changes in fair value of such
liability are recognised in the statement
of profit or loss. The Company has not
designated any financial liability as at fair
value through profit and loss.

• Loans and Borrowings

This is the category most relevant to
the Company. After initial recognition,
interest-bearing borrowings 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.

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 as finance costs
in the statement of profit and loss.

This category generally applies to
borrowings.

• Trade and other payables

Trade payables are initially measured
at fair value, and are subsequently
measured at amortised cost, using the
effective interest rate method. If payment
is expected in one year or less, they are
classified as current liabilities. If not, they
are presented as non-current liabilities.

Derecognition

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 or loss.

Fair value measurement of Financial Instruments

When the fair values of financial assets and financial
liabilities recorded in the Balance Sheet cannot
be measured based on quoted prices in active
markets, their fair value is measured using valuation
techniques. The inputs to these models are taken
from observable markets where possible, but where
this is not feasible, a degree ofjudgement is required
in establishing fair values. Judgements include
considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about
these factors could affect the reported fair value of
financial instruments.

Offsetting of financial asset and liabilities

Financial assets and liabilities are offset and the
net amount reported in the balance sheet where
Company currently has a legally enforceable right
to offset the recognized amounts, and there is an
intention to settle on a net basis or realize the asset
and settle the liability simultaneously.

Inventory

Inventories are valued at the lower of cost and net
realisable value.

Costs incurred in bringing each product to its
present location and condition are accounted for
as follows:

• Raw materials: cost includes cost of purchase
and other costs incurred in bringing the
inventories to their present location and
condition. Cost is determined on weighted
average basis.

• Stores & spare parts: Cost is determined on
First In First Out (FIFO) basis

• Finished goods and work in progress: cost
includes cost of direct materials and labour
and a proportion of manufacturing overheads
based on the actual operating capacity, but
excluding borrowing costs. Cost is determined
on weighted average basis.

Net realisable value is the estimated selling price
in the ordinary course of business, less estimated
costs of completion and the estimated costs
necessary to make the sale.

Cash & Cash Equivalent

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of
the Company’s cash management.

Earnings per Share

Basic earnings per equity share is computed by
dividing the net profit attributable to the equity
holders of the Company by the weighted average
number of equity shares outstanding during the
period. The Company has no potentially dilutive
equity shares.

Dividend

The final dividend on shares is 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. Income tax consequences of dividends
on financial instruments classified as equity will be
recognized according to where the entity originally
recognized those past transactions or events that
generated distributable profits.

The Company declares and pays dividends in Indian
rupees. Companies are required to pay / distribute
dividend after deducting applicable taxes. The
remittance of dividends outside India is governed by
Indian law on foreign exchange and is also subject
to withholding tax at applicable rates. Refer note
35 for details for dividend declared during the year.

Note 6a. Investments (contd.)

1. During the year ended 31^st March, 2025, the Company has acquired 41,74,209 Equity Shares of '' 10 each, representing
100% fully paid up Equity Share Capital of Monga Strayfield Private Limited from its existing shareholders for an aggregate
consideration of '' 12,300 Lakhs. The consideration for such acquisition has been discharged partly by way of cash
amounting to '' 10,302.50 lakhs and partly by way of fresh issue of 4,70,000 Equity Shares of the Company having face value
of '' 10 each at a premium of '' 415. Accordingly, Monga Strayfield Private Limited has become a wholly-owned Subsidiary
of the Company w.e.f. 27^th January, 2025.

2. During the year ended 31^st March, 2024, the Company had acquired 15,84,320 Equity Shares of '' 10 each, representing
100% fully paid up Equity Share Capital of M. E Energy Private Limited from its existing shareholders for an aggregate
consideration of '' 9,869.96 Lakhs. The consideration for such acquisition has been discharged partly by way of cash
amounting to '' 7,545.96 lakhs and partly by way of fresh issue of 14,00,000 Equity Shares of the Company having face
value of '' 10 each at a premium of '' 156. Accordingly, M. E Energy Private Limited became a wholly-owned subsidiary of
the Company w.e.f 20^th February 2024.

3. Consequent to the initiation of Corporate Insolvency Resolution Process (CIRP) and appointment of Insolvency Professional
in case of McNally Bharat Engineering Company Limited, the Company has fair valued its investment to nominal value of
'' 0.01 per share pending execution of approved resolution plan of McNally Bharat Engineering Company Limited.

Note 15: Other Equity

Capital Redemption Reserve - The Company had made an offer of buyback of its own fully paid up Equity Shares through the
methodology of "Open Market Purchase through Stock Exchange” pursuant to the approval of Board of Directors at their meeting
held on 29^th January, 2009. The Company bought back 2,40,032 Equity Shares for an aggregate amount of '' 63.54 lacs by
utilising Securties Premium Account to the extent of '' 39.53 lacs. Capital Redemption Reserve of '' 24.00 lacs has been created
being the nominal value of the shares bought back.

Securities Premium - Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the
aggregate amount of the premium received on those shares shall be transferred to “Securities Premium”. The Company may
issue fully paid-up bonus shares to its members out of the Securities Premium and the Company can use this reserve for buy¬
back of shares.

Capital Reserve - Capital Reserve contains profit on re-issue of forfeited shares.

General Reserve - General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the
Statement of Profit and Loss. The Company can use this reserve for payment of dividend and issue of fully paid-up bonus shares.

Retained Earnings- Retained Earnings represents surplus at the Balance Sheet date i.e Cumultaive balance of statement of Profit
& Loss at the balance sheet date.

FVOCI - Net gain/(loss) on FVOCI equity investments - As per Ind AS 109, Investment in Equity Shares are to be initially measured
at fair value and subsequently at fair value through profit and loss or other comprehensive income. At initial recognition, an
entity may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of an
investment in an equity instrument within the scope of this Standard that is neither held for trading nor contingent consideration
recognised by an acquirer in a business combination to which Ind AS 103 applies.

The Company represents that its investments are long term strategic investments and the Company intends to hold the same
for an indefinite period. Thus, the Company has decided to subsequently measure Investments at fair value through other
comprehensive income.

Item of other Comprehensive Income (Re-Measurement of defined benefit plans): Re-measurement, comprising actuarial gains
and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is
reflected immediately in the Balance Sheet with a charge or credit recognised in Other Comprehensive Income (OCI) in the period
in which they occur. Re-measurement recognised in OCI will not be reclassified to Statement of Profit and Loss.

(Also Refer Standalone Statement of Changes in Equity)

A. Term Loan

1) Rate of Interest - 11.10% -11.40% (linked to Bank''s 6 months MCLR)

2) Subservient charge over current assets and moveable fixed assets

B. Cash Credit from Banks

1) First Pari-Passu Charge by way of equitable mortgage on the Company''s immovable property situated at Plot No. 6,
Kalyan Bhiwandi Industrial Area, Thane.

2) First Pari-Passu Charge by way of hypothecation on the entire Movable Fixed Assets of the Company both present
and future.

3) Hypothecation of present and future stocks of raw materials, semi-finished goods, finished goods, consumable stores,
book debts and other current assets by way of first charge.

C. Loan from a Subsidiary Company

Rate of Interest - 8.00% p.a.

Notes

1) The Company has used the borrowings from banks for the specific purposes for which it was taken.

2) The Company has not been declared as a wilful defaulter by any bank or other lenders, as at the reporting date .

3) The Company has been sanctioned working capital limits in excess of Rupees Five Crore in aggregate during the year, from
banks on the basis of security of current assets. The quarterly return/statements filed by the Company with such banks are
in agreement with the books of account of the Company.

B. Defined Benefit Plans:

The Company has following post employment benefits which are in the nature of defined benefit plans:

Gratuity

The Company has a defined benefit gratuity plan in India (funded). The Company’s defined benefit gratuity plan is a final salary
plan for employees, which requires contributions to be made to a separately administered fund. The gratuity plan is a funded
plan and the company makes contributions to the recognised funds in India. The company does not fully fund the liability and
maintains a target level of funding to be maintained over a period of time based on the estimations of expected gratuity payments.

Gratuity is a defined benefit plan and Company is exposed to the following risks:

Interest rate risk : A fall in the discount rate which is linked to the Government Securities Rate will increase the present value
of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets
depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members.
As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined
by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this
rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government
securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule
101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan
does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default
will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

During the year, there were no plan amendments, curtailments and settlements in the Defined Benefit Plan.

The management assessed that cash and cash equivalents, bank balances other than cash and cash equivalents, trade
receivables, other current financial assets, contract assets, trade payables, short term borrowings and other current financial
liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

Note 41 : Fair Value Hierarchy

The fair values of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.

The Company has established the following fair value hierarchy that categories the values into 3 heads. The inputs to valuation
technique used to measure the fair value of the financial instruments are:

Level 1: Quoted prices (unadjusted ) in the active markets for identical assets or liabilities that the entity can access at the
measurement date.

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or
indirectly i.e. fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximises the use of observable market data and rely as little as possible on Company specific estimates. If all the
significant inputs required to fair value an instrument are observable, the instruments is included in level 2.

Level 3: Unobservable inputs for the assets or liability i.e. if one or more of the significant inputs is not based on observable
market data, the instruments is included in level 3.

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.

Note 42: Financial risk management objectives and policies

The Company’s business activities expose it to market risk, liquidity risk and credit risk. The management develops and monitors
the Company''s risk management policies. The key risks and mitigating actions are also placed before the Board of directors of
the Company. The Company''s risk management policies are established to identify and analyse the risks faced by the Company,
to set appropriate risk limits and to control and monitor risks and adherence to limits.

Finance team and experts of respective business divisions provides assurance that the Company''s financial risk activities are
governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance
with the Company''s policies and risk objectives. The activities are designed to:

- Protect the Company''s financial results and position from financial risks

- Maintain market risks within acceptable parameters, while optimising returns; and

- Protect the Company’s financial investments, while maximising returns.

This note explains the sources of risk which the Company is exposed to and how the Company manages the risk.

A. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market prices comprise currency rate risk and interest rate risk. Financial instruments affected by market risk include loans
and borrowings, financial investments, trade receivables, trade payables and derivative financial instruments.

The Company’s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange
rates and interest rate movement. The Company uses derivative financial instruments such as foreign exchange forward contracts
to manage its exposures to foreign exchange fluctuations.

Note 42: Financial risk management objectives and policies (contd)
a. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
debt obligations.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The
Company also enters into cross currency interest rate swaps, in which it agrees to exchange, at specified intervals, the difference
between fixed and variable rate interest amounts calculated by reference to an agreed-upon principal amount.

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 Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s
operating activities (when revenue or expense is denominated in a foreign currency).

The Company manages its foreign currency risk by taking foreign exchange forward contracts.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to
match the terms of the hedged exposure.

The Company hedges its exposure to fluctuations on the translation into '' of its foreign operations by using foreign exchange
forward contracts.

B. Equity Price Risk

The Company''s investment consists of investments in publicly traded companies held for the purpose other than trading. The
investee company McNally Bharat Engineering Company Limited have been admitted under Corporate Insolvency Resolution
Process under the provisions of Insolvency and Bankruptcy Code, as at the Balance Sheet date. Accordingly, the Company has
fair valued its investment to nominal value of '' 0.01 per share pending execution of approved resolution plan of McNally Bharat
Engineering Company Limited. The other quoted investments have been reported as per prevailing market prices in the stock
market, as at the balance sheet date. As at 31 March 2025, the exposure to listed equity securities at fair value was '' 844.24 lacs
(31 March 2024: '' 923.60 lacs). A decrease / increase of 10% on the BSE market index could have an impact of approximately
'' 84.42 lacs (31 March 2024: '' 92.36 lacs) respectively on the OCI and equity. These changes would not have an effect on profit
or loss.

C. 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), from its
investing activities (primarily inter-corporate deposits) and from its financing activities, including deposits with banks and financial
institutions, foreign exchange transactions and other financial instruments.

a. Trade Receivables

Customer credit risk is managed as per the Company’s established policy, procedures and controls relating to customer credit
risk management. Trade receivables are non-interest bearing and are generally on credit term in line with respective industry
norms. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the
customer base is widely distributed both economically and geographically.

The requirement for impairment is analysed at each reporting date. Refer Note 7 for details on the impairment of trade receivables.

D. Liquidity Risk

Liquidity risk is the risk that the Company may not be able to make its present and future collateral obligations without incurring
unacceptable losses. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral
requirements. The Company closely monitors its liquidity position and maintains adequate sources for financing including debts,
cash credits and overdrafts at an optimised cost.

Contract assets are recognised when there is excess of revenue earned over billings on contracts. Unbilled receivables where
further subsequent performance obligation is pending are classified as contract assets when the company does not have
unconditional right to receive cash as per contractual terms. Contract Assets are transferred to trade receivables when the
Company raises invoices on the customers based on the terms as agreed in the contacts.

Contract Liability is recognised when there are billings in excess of revenues and it also includes consideration received from
customers for whom the company has pending obligation to transfer goods or services. The billing schedules agreed with
customers include periodic performance based payments and / or milestone based progress payments. Invoices are payable
within contractually agreed credit period.

Trade receivables are generally non-interest bearing and are on terms of 30 to 90 days.

Performance Obligations:

The Company enters into different types of contracts with its customers which have different performance obligations as follows:
Designing, Engineering and Manufacturing Equpiments and Systems:

These manufacturing contracts are for designing, engineering and manufacturing critically customised process solutions ranging
for a period of 3 to 12 months. Since, these equipments are highly customised and do not have any alternative use and as per
the terms as agreed in the contracts, in case the contracts get terminated during the design or construction phase, the Company
will be entitled to the costs incurred till that date, plus reasonable profit margin. Thus, the Company recognises revenue for these
contracts over the time in accordance with the provisions of para 35 (c) of Ind AS 115.

These contracts usually have a liquidated damages clause for delay in delivery of these equipments beyond the scheduled
dates as agreed in the contracts.

Note 45: IND AS 115 - Revenue from Contracts with Customers (contd.)

Supply of other drying equipments and spares:

These contracts are for supply of other drying equipments and spares. These are standard equipments and spares which were
manufactured and sold by the Company with a little modification as per the requirements of the customer. Revenue from these
contracts are recognised when the significant risks and rewards of ownership of goods have passed to the buyer, usually on
delivery of the goods to the customer as per the inco-terms as agreed in the contracts. Revenue is measured at the fair value of
consideration received or receivable net of return, trade allowances and rebates.

Service Income:

The Company recognises service income over the time based on the terms as agreed in the contracts entered into with the
customers.

The payment terms for all the above contracts depend upon the milestones as agreed in the contracts and are independent of
the performance obligations to be satisfied.

The Company has not disclosed information regarding transaction price allocated to the remaining performance obligations as
all the contracts of the Company have an original expected duration of one year or less.

Note 48(A): Disclosure in relation to undisclosed income

The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year ended 31^st March, 2025 and 31^st March, 2024 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).

Note 48(B): Details of Benami Property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company,
during the year ended 31^st March, 2025 and 31^st March, 2024 for holding any Benami property under the Prohibition of Benami
Property Transactions Act, 1988 and the rules made thereunder.

Note 48(C) : Registration of Charge

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
Note 48(D): Corporate Social Responsibility

As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The proposed areas of
CSR activities are eradication of hunger and poverty, promoting of education and rural development, disaster management
including disaster relief, rehabilitation and reconstruction and promoting health care including preventing health care. The
expenditure incurred during the year on these activities are approved by the CSR Committee and as specified in schedule VII
to the Companies Act, 2013.

Note 48(E): Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31^st March, 2025 and
31^st March, 2024.

Note 48(F) : Relationship with Struck off Companies

The Company did not have any transactions with companies struck off u/s 248 of the Companies Act, 2013 or section 560 of
the Companies Act, 1956, during the year ended 31^st March, 2025 and 31^st March, 2024.

Note 48(G) : Utilisation of Borrowed Funds and Share Premium

During the year ended 31^st March 2025, the Company has not advanced or loaned or invested funds (either borrowed funds or
share premium or any other sources or kinds of funds) to any other person (s) or entity(ies).

During the year ended 31^st March, 2025, the Company has not received any fund from any person(s) or entity(ies), Including
foreign entities with the understanding (whether recorded in writing or otherwise) that the company shall directly or indirectly
lend or invest or provide any guarantee or security.

Note 48(H)

The Company has complied with the requirements with respect to number of layers as prescribed under section 2(87) of the
Companies Act, 2013 read with the Companies (Restriction on the number of layers) Rules, 2017

Note 51 : Subsequent Events

5,50,000 Convertible Warrants of face value of '' 10 each were issued at a premium of '' 156 during the Financial Year 2023-24
upon receipt of 25% application money amounting to '' 228.25 Lakhs. Subsequent to the year ended 31^st March, 2025, upon
receipt of balance 75% thereof aggregating to '' 684.75 Lakhs, the warrants were converted by issue of equivalent number of
fully paid-up Equity Shares.

Note 52 :

Previous year figures have been regrouped/ reclassified wherever neccesary, to make them comparable with the current year
figures.

As per our Report of even date

For V. Singhi & Associates For and on behalf of the Board of Directors of

Chartered Accountants Kilburn Engineering Limited

Firm Registration No.: 311017E

(Sampat Lal Singhvi) (Anil Karnad) (Ranjit Pamo Lala)

Partner Whole Time Director-Operations Managing Director

Membership No.: 083300 DIN : 07551892 DIN : 07266678

Place : Kolkata (Sachin Vijayakar) (Arvind Kumar Bajoria)

Date : 21^st May, 2025 Chief Financial Officer Company Secretary

Membership No.: 15390

---

Mar 31, 2024

1. Right of use Asset related to leasehold Land and buildings with a carrying amount of '' 3674.70 lacs (31 March 2023: '' 3,475.99 lacs) are subject to a first charge to secure Company’s credit facilities.

The Company has obtained land on leasehold basis from Maharashtra Industrial Development Corporation for a period of 52 years commencing from 17 November 2009. The lease can be further renewed for 95 years on mutually agreed terms. As per the terms of the agreement, the Company is required to use the leasehold land for the purpose of setting up and operating an engineering factory only and for no other purpose.

2. Plant and equipments, Vehicles, Furniture and Fixtures and Office Equipments with a carrying amount of '' 1,387.06 lacs (31 March 2023: '' 814.72 lacs) have been hypothecated for Company''s credit facilities & working capital term loans.

3. In accordance with the Ind AS 36 on ''Impairment of Assets'' , the Company has reassessed the carrying amounts of its Property, plant & equipment and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realisable value at the balance sheet reporting date .

4. The Company has not revalued its Property, Plant and Equipment ( including Right of Use Assets ) during the year ended 31^st March,2024 and 31^st March, 2023.

5. The Company does not have any immovable property , whose title deeds are not held in the name of the Company during the year ended 31^st March, 2024 and 31^st March, 2023.

6. Capital Work-in-Progress consists primarily of expenditure towards Plant and Machinery and Furniture and Fixtures.

1. I n accordance with the Ind AS 36 on ''Impairment of Assets'', the Company has reassessed the carrying amount of its Intangible assets and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realisable value at the balance sheet reporting date.

2. The Company has not revalued its Intangible Assets during the year ended 31^st March, 2024 and 31^st March, 2023.

1. During the year, the Company has completed the acquisition of 100% stake in M. E Energy Private Limited. The consideration for such acquisition has been discharged partly by cash amounting to '' 7,545.96 lakhs and partly by way of fresh allotment of 14,00,000 Equity Shares of the Company. Accordingly, M. E Energy Private Limited became a wholly owned subsidiary of the Company with effect from 20^th February 2024.

2. Consequent to the initiation of Corporate Insolvency Resolution Process (CIRP) and appointment of Insolvency Professional in case of McNally Bharat Engineering Company Limited, the Company has fair valued its investment to nominal value of '' 0.01 per share pending execution of approved resolution plan of McNally Bharat Engineering Company Limited.

1. No trade receivables are due from directors or other persons in whom directors or promoters are interested.

2. Trade receivables are generally non-interest bearing and are on terms of 30 to 90 days.

3. The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment losses on trade receivables. The Company follows the simplified approach for recognition of impairment allowance on trade receivables. The application of the simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment allowance based on lifetime ECLs at each reporting date. ECL impairment loss allowance (or reversal) and lifetime expected credit loss is recognized during the period is recognized in the Standalone Statement of Profit and Loss.

1) Margin money with banks represents margin money held as lien against bank guarantees and LCs issued by the bank on behalf of the Company.

2) Fixed deposit with bank represents fixed deposits held as lien against credit facilities sanctioned by the bank.

3) With respect to Earmarked bank balance towards unclaimed dividend, the Company has complied with the applicable regulations for maintenance of unpaid dividend account as per Sec 125 of the Act.

Note 13: Equity Share Capital (contd)

Terms/ Rights attached to Equity Shares

The Company has only one class of Equity Shares having par value of '' 10 each. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of shares held by the shareholders.

B. Issue of Convertible Equity Share Warrants for Cash Consideration

During the year ended 31^st March 2024, the Company alloted Convertible Warrants, details as follows. Holders of the warrants have paid 25% of the consideration and shall exercise the option to subscribe to the Equity Shares on payment of 75% consideration, within 18 months from date of allotment.

C. Issue of Equity Shares for consideration other than Cash

During the year ended 31^st March, 2024, the Company allotted 14,00,000 Equity Shares of face value '' 10 each at a premium of '' 156 per share, for consideration other than cash to Mr. Kalathil Vijaysanker Kartha. This allotment was made towards the discharge of part consideration for acquisition of 100% paid-up capital of M. E Energy Private Limited.

Note 14: Other Equity

Capital Redemption Reserve - The Company had made an offer of buyback of its own fully paid up Equity Shares through the methodology of "Open Market Purchase through Stock Exchange” pursuant to the approval of Board of Directors at their meeting held on 29^th January, 2009. The Company bought back 2,40,032 Equity Shares for an aggregate amount of '' 63.54 lacs by utilising Securties Premium Account to the extent of '' 39.53 lacs. Capital Redemption Reserve of '' 24.00 lacs has been created being the nominal value of the shares bought back.

Securities Premium - Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to “Securities Premium”. The Company may issue fully paid-up bonus shares to its members out of the Securities Premium and the Company can use this reserve for buy-back of shares.

Capital Reserve - Capital Reserve contains profit on re-issue of forfeited shares.

General Reserve - General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the Statement of Profit and Loss. The Company can use this reserve for payment of dividend and issue of fully paid-up bonus shares.

Retained Earnings- Retained Earnings represents surplus at the Balance Sheet date i.e Cumultaive balance of statement of Profit & Loss at the balance sheet date.

FVOCI - Net gain/(loss) on FVOCI equity investments - As per Ind AS 109, Investment in Equity Shares are to be initially measured at fair value and subsequently at fair value through profit and loss or other comprehensive income. At initial recognition, an entity may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument within the scope of this Standard that is neither held for trading nor contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies.

The Company represents that its investments are long term strategic investments and the Company intends to hold the same for an indefinite period. Thus, the Company has decided to subsequently measure Investments at fair value through other comprehensive income.

Item of other Comprehensive Income (Re-Measurement of defined benefit plans): Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the Balance Sheet with a charge or credit recognised in Other Comprehensive Income (OCI) in the period in which they occur. Re-measurement recognised in OCI will not be reclassified to Statement of Profit and Loss.

(Also Refer Standalone Statement of Changes in Equity)

a. Term Loan

1) Rate of Interest - 11.10% (linked to Bank''s 6 months MCLR)

2) Mortgage/Hypothecation - Subservient charge by way of hypothecation over entire Current Assets and Movable Fixed Assets of the Company (both present & future) located anywhere.

b. Cash Credit from Banks

1) First Pari-Passu Charge on the Company''s immovable property situated at Plot No.6, Kalyan Bhiwandi Industrial Area, Thane.

2) First Pari-Passu Charge by way of hypothecation on the entire Movable Fixed Assets of the Company both present and future.

3) Hypothecation of present and future stocks of raw materials, semi-finished goods, finished goods and book debts by way of first charge and also by hypothecation of movable fixed assets by way of first charge.

Notes

1) The Company has used the borrowings from banks for the specific purposes for which it was taken.

2) The Company has not been declared as a wilful defaulter by any bank or other lenders, as at the reporting date .

3) The Company has been sanctioned working capital limits in excess of '' 5 Crore in aggregate during the year, from banks on the basis of security of current assets. The quarterly return/statements filed by the Company with such banks are in agreement with the books of account of the Company.

Cumulative Redeemable Preference Shares - RBL Bank Limited

The Company had redeemed the entire 0.01% 1,55,00,0000 CRPS at a fair value of '' 535.31 Lacs during the Financial Year 2022-23. Accordingly the liability for CRPS had been derecognised as at 31^st March, 2023. The resultant gain on early redemption of CRPS amounting to '' 1,014.69 Lacs had been considered in Other Income- Note 23.

Note 33: Employee Benefit Disclosure (contd)

Gratuity

The Company has a defined benefit gratuity plan in India (funded). The Company’s defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund. The gratuity plan is a funded plan and the company makes contributions to the recognised funds in India. The company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on the estimations of expected gratuity payments.

Gratuity is a defined benefit plan and Company is exposed to the following risks:

Interest rate risk : A fall in the discount rate which is linked to the Government Securities Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

During the year, there were no plan amendments, curtailments and settlements in the Defined Benefit Plan.

Note 34: Contingencies and Commitments a. Contingent Liabilities ( to the extent not provided for)		'' in lacs
Particulars	31 March 2024	31 March 2023
Contingent Liabilities (to the extent not provided for)
a) Service Tax - On account of disallowance of CENVAT Credit .	49.06	49.06
b) 1 ncome Tax - On account of various demands issued / raised which in the opinion of management are as a result of mistakes apparent from records and are pending for rectifications before the Assessing Officer .	179.82	190.87

b. Commitments

Estimated amounts of contracts remaining to be executed on capital account and not provided:

At 31^st March, 2024, the Company had commitments of '' 313.83 lacs (31 March 2023: '' 125.76 lacs)

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm ’s length transactions, and were undertaken in ordinary course of business.

Note 36: Segment information A. Primary Operating Segment

I n line with the provision of Ind AS-108 - Operating Segments, Chief Operating Decision Maker (CODM) reviews the operations of the Company as manufacturer of Engineering Products, which is considered to be the only reportable segment by the management. Accordingly, no separate disclosure of primary operating segment information has been made.

The management assessed that cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, other current financial assets, contract assets, trade payables, short term borrowings and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

Note 38 : Fair Value Hierarchy

The fair values of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The Company has established the following fair value hierarchy that categories the values into 3 heads. The inputs to valuation technique used to measure the fair value of the financial instruments are:

Level 1: Quoted prices (unadjusted ) in the active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly i.e. fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximises the use of observable market data and rely as little as possible on Company specific estimates. If all the significant inputs required to fair value an instrument are observable, the instruments is included in level 2.

Level 3: Unobservable inputs for the assets or liability i.e. if one or more of the significant inputs is not based on observable market data, the instruments is included in level 3.

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.

There have been no transfers between Level 1 and Level 2 during any of the above periods reported.

Note 39: Financial risk management objectives and policies

The Company’s principal financial liabilities, comprise loans and borrowings, trade payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include trade receivables, contract assets, cash and cash equivalents, bank balances other than that included in cash and cash equivalents and other financial assets that arise directly from its operations. The Company also holds investments measured at FVTOCI and at cost, and enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Board of Directors have adopted risk management policy to identify the risks involved in all activities of the Company. Further, the Company has a policy to hedge all foreign currency loans carrying a floating rate of interest with the help of foreign exchange forward contracts to cover foreign exchange rate and interest rate risk. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise currency rate risk and interest rate risk. Financial instruments affected by market risk include loans and borrowings, financial investments, trade receivables, trade payables and derivative financial instruments.

The Company’s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rate movement. The Company uses derivative financial instruments such as foreign exchange forward contracts to manage its exposures to foreign exchange fluctuations.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company also enters into cross currency interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon principal amount.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

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 Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency).

The Company manages its foreign currency risk by taking foreign exchange forward contracts.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure.

The Company hedges its exposure to fluctuations on the translation into '' of its foreign operations by using foreign exchange forward contracts.

Foreign Currency Sensitivity

The following table demonstrates the sensitivity in the USD, Euro and Yen to the functional currency of the Company, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities including foreign currency derivatives.

Equity Price Risk

The Company''s investment consists of investments in publicly traded companies held for the purpose other than trading. The investee company McNally Bharat Engineering Company Limited have been admitted under Corporate Insolvency Resolution Process under the provisions of Insolvency and Bankruptcy Code, as at the Balance Sheet date. Accordingly, the Company has fair valued its investment to nominal value of '' 0.01 per share pending execution of approved resolution plan of McNally Bharat Engineering Company Limited. The other quoted investments have been reported as per prevailing market prices in the stock market, as at the balance sheet date. As at 31 March 2024, the exposure to listed equity securities at fair value was '' 923.60 lacs (31 March 2023: '' 823.06 lacs). A decrease / increase of 10% on the BSE market index could have an impact of approximately '' 92.36 lacs (31 March 2023: '' 82.31 lacs) respectively on the OCI and equity. These changes would not have an effect on profit or loss.

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), from its investing activities (primarily inter-corporate deposits) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade Receivables

Customer credit risk is managed as per the Company’s established policy, procedures and controls relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on credit term in line with respective industry norms. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

The requirement for impairment is analysed at each reporting date. Refer Note 6 for details on the impairment of trade receivables. Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only on the basis of decision taken by the Company''s senior management.

The Company’s maximum exposure to credit risk for the components of the balance sheet at 31 March 2024 and 31 March 2023 is the carrying amounts as illustrated in Note 15,16 & 17

Liquidity Risk

Liquidity risk is the risk that the Company may not be able to make its present and future collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and maintains adequate sources for financing including debts, cash credits and overdrafts at an optimised cost.

Note 40: Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and cash equivalents (including other bank balances).

Note 41: Leases Operating Leases :

With effect April 1, 2019, the Company has adopted Ind AS 116 “Leases” and applied the standard to all lease contracts existing on April 1, 2019 using the modified retrospective method.

The leasehold land of the Company has been presented as Right of Use asset under Note 3 ‘Property, plant and equipment’ and depreciated over the lease term of the asset.

Right of use Asset related to leasehold Land and buildings with a carrying amount of '' 3674.70 lacs (31 March 2023: '' 3,475.99 lacs) are subject to a first charge to secure Company’s credit facilities.

The other lease arrangements of the Company are for a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straightline basis over the term of the lease.

Note 41a: Research and development costs

The Company has an inhouse research and development department which concentrates on product development and developing new products. Research and development costs that are not eligible for capitalisation have been expensed out in the respective years. The total amount of research and development cost expensed out in the year ended 31 March 2024 was '' 8.72 lacs (31 March 2023: '' 12.86 lacs).

The Contract Assets primarily relates to the Company’s rights to consideration for work completed on design, construction and commissioning contracts but not billed at the reporting date. Contract assets are transferred to trade receivables when the Company raises invoices on the customers based on the terms as agreed in the contracts.

The Contract Liabilities primarily relate to the advance consideration received on contracts entered with customers. The advances are adjusted against subsequent billings based on the terms as agreed in the contracts.

Trade receivables are generally non-interest bearing and are on terms of 30 to 90 days.

Performance Obligations:

The Company enters into different types of contracts with its customers which have different performance obligations as follows: Design, construction and commissioning contracts with the customers:

These contracts are for design and construction of highly customised drying equipments and range for a period of 3 to 12 months. Since, these equipments are highly customised and do not have any alternative use and as per the terms as agreed in the contracts, in case the contracts get terminated during the design or construction phase, the Company will be entitled to the costs incurred till that date, plus reasonable profit margin. Thus, the Company recognises revenue for these contracts over the time in accordance with the provisions of para 35 (c) of Ind AS 115.

Variable Consideration: These contracts usually have a liquidated damages clause for delay in delivery of these equipments beyond the scheduled dates as agreed in the contracts. The Company estimates the amount to be recognised towards liquidated damages based on an analysis of accumulated historical experience. The Company includes estimated amount in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is resolved.

Supply of other drying equipments and spares:

These contracts are for supply of other drying equipments and spares. These are standard equipments and spares which were manufactured and sold by the Company with a little modification as per the requirements of the customer. Revenue from these contracts are recognised when the significant risks and rewards of ownership of goods have passed to the buyer, usually on delivery of the goods to the customer as per the inco-terms as agreed in the contracts. Revenue is measured at the fair value of consideration received or receivable net of return, trade allowances and rebates.

Service Income:

The Company recognises service income over the time based on the terms as agreed in the contracts entered into with the customers.

The payment terms for all the above contracts depend upon the milestones as agreed in the contracts and are independent of the performance obligations to be satisfied.

The Company has not disclosed information regarding transaction price allocated to the remaining performance obligations as all the contracts of the Company have an original expected duration of one year or less.

Determination of transaction price and allocation of amounts to performance obligations:

In case of design, construction and commissioning contracts, the Company may have different performance obligations as follows:

1. Design, construction and supply of equipments;

2. Supply of commissioning and operational spares; and

3. Supervision services for erection and commissioning of equipments.

For these contracts, the total transaction price is agreed in the contracts entered into with the customers. The Company allocates the transaction price to these performance obligations based on the standalone selling price of these goods or services.

The amount of variable consideration is determined based on the terms of the contract.

The Company recognises revenue for the above performance obligations and variable consideration based on the revenue recognition criteria as specified above.

The Company does not have any incremental costs of obtaining a contract and costs incurred in fulfilling a contract which are expected to be recovered from the customer and hence, the Company has not recognised any asset towards the same.

The Company''s contracts have a maximum duration of 1 year and hence, the Company has not adjusted the amount of consideration received or receivable as per the contracts for the effects of a significant financing component.

Note 45(A): Disclosure in relation to undisclosed income

The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year ended 31st March, 2024 and 31st March, 2023 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).

Note 45(B): Details of Benami Property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company, during the year ended 31st March, 2024 and 31st March, 2023 for holding any Benami property under the benami transactions ( Prohibition) Act , 1988 ( 45 of 1988) and the rules made thereunder.

Note 45(C) : Registration of Charge

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. Note 45(D): Corporate Social Responsibility

As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The proposed areas of CSR activities are eradication of hunger and poverty, promoting of education and rural development, disaster management including disaster relief, rehabilitation and reconstruction and promoting health care including preventing health care. The expenditure incurred (Refer Note 30) during the year on these activities are approved by the CSR Committee and as specified in schedule VII to the Companies Act, 2013.

Note 45(E): Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31^st March, 2024 and 31^st March, 2023.

Note 45(F) : Relationship with Struck off Companies

During the year,the Company did not have any transactions with companies struck off u/s 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

Note 45(G) : Utilisation of Borrowed Funds and Share Premium

During the year ended 31^st March 2024, the Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kinds of funds) to any other person (s) or entity(ies).

During the year ended 31^st March, 2024, the Company has not received any fund from any person(s) or entity(ies), Including foreign entities with the understanding (whether recorded in writing or otherwise) that the company shall directly or indirectly lend or invest or provide any guarantee or security.

Note 45(H)

The Company has complied with the requirements with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on the number of layers) Rules, 2017

Note 46 : Previous year figures have been regrouped/ reclassified wherever neccesary, to make them comparable with the current year figures.

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Mar 31, 2023

Notes:

1. Right of use Asset related to leasehold Land and buildings with a carrying amount of '' 3,475.99 lacs (31 March 2022: '' 3,615.37 lacs) are subject to a first charge to secure Company’s credit facilities.

The Company has obtained land on leasehold basis from Maharashtra Industrial Development Corporation for a period of 52 years commencing from 17 November 2009. The lease can be further renewed for 95 years on mutually agreed terms. As per the terms of the agreement, the Company is reguired to use the leasehold land for the purpose of setting up and operating an engineering factory only and for no other purpose.

2. Plant and eguipments, Vehicles, Furniture and Fixtures and Office Eguipments with a carrying amount of '' 814.72 lacs (31 March 2022: '' 539.22 lacs) have been hypothecated for Company''s cash credit facilities & working capital term loans.

3. In accordance with the Ind AS 36 on ''Impairment of Assets'' , the Company has reassessed the carrying amounts of its Property, plant & eguipment and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realisable value at the balance sheet reporting date .

4. The Company has not revalued its Property, Plant and Eguipment ( including Right of Use Assets ) during the year ended 31^st March,2023 and 31^st March, 2022.

5. The Company does not have any immovable property , whose title deeds are not held In the name of the Company during the year ended 31^st March, 2023 and 31^st March, 2022.

6. Capital Work-In-Progress consists primarily of expenditure towards Office Buildings.

investments at fair value through OCI (fully paid) reflect investments in quoted equity securities. These Equity Shares are designated as FVTOCI as they are not held for trading purpose, thus disclosing their fair value fluctuation in the Statement of Profit and Loss will not reflect the purpose of holding.

in earlier years, the Company had advanced Inter-Corporate Deposits (‘ICDs’) to certain Promoter and Promoter Group companies. Basis the financial position of these recipient companies, the management had recognised provision against outstanding ICDs amounting to '' 9,950.18 Lacs and written off the entire accrued interest of '' 2,738.72 lacs on such ICDs during the financial year ended 31^st March, 2021, without prejudice to any of the legal rights and remedies available to recover the outstanding amounts. The aggregate effect of '' 12,688.90 lacs had been presented as an exceptional loss in the Statement of Profit and Loss for the year ended 31^st March, 2021. During the year ended 31^st March, 2023, the Company has decided to classify loan outstanding amount of '' 9,534.38 Lacs granted to Babcock Borsig Limited and Williamson Financial Services Limited from "having significant increase in credit risk" to " credit impaired and written down" as per the requirements of IND AS 109 "Financial Instruments".

1. No trade receivables are due from directors or other persons in whom directors or promoters are interested,

2. Trade receivables are generally non-interest bearing and are on terms of 30 to 90 days.

3. The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment losses on trade receivables. The Company follows the simplified approach for recognition of impairment allowance on trade receivables. The application of the simplified approach does not reguire the Company to track changes in credit risk. Rather, it recognizes impairment allowance based on lifetime ECLs at each reporting date. ECL impairment loss allowance (or reversal) and lifetime expected credit loss is recognized during the period is recognized in the Statement of Profit and Loss.

Terms/ Rights attached to Equity Shares

The Company has only one class of Equity Shares having par value of '' 10 each. Each holder of Equity Shares Is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of shares held by the shareholders.

Terms/ Rights attached to Cumulative Redeemable Preference Shares

The Company has only one class of Cumulative Redeemable Preference Share (CRPS) having par value of '' 10 each. Each holder of CRPS is entitled to 0.01% coupon rate, payable at the end of every quarter from the date of subscription. The CRPS holders are entitled to have the proceeds of dissolution or winding up applied to pay off their CRPS investment in the Company, prior and in preference to any other payments by the Company to the Equity Share Holders. The CRPS shall not have voting rights on any matter of the Company. (Refer Note 15 and 17)

During the year ended 31^st March, 2022 the Company had issued 44,11,764 Convertible Equity Share Warrants of face value of '' 10/- each at a premium of '' 24/- on preferential basis to the allottees under Promoter Category out of which holder of 17,00,000 Warrants who had paid 100% subscription money were issued equivalent number of Equity Shares. Holders of the balance warrants had paid 25% of the consideration and to excercise the option to subscribe to the Equity shares had to pay the balance 75% of the consideration of the warrants before expiry of 18 months from the date of allotment i.e 7^th March, 2022. During the quarter ended, 31^st December, 2022 holders of 15,00,000 warrants paid the balance 75% of the consideration amounting to '' 383 lakhs and were allotted equivalent number of Equity Shares.

Note 14: Other Equity

Capital Redemption Reserve - The Company had made an offer of buyback of its own fully paid up Equity Shares through the methodology of "Open Market Purchase through Stock Exchange” pursuant to the approval of Board of Directors at their meeting held on 29^th January, 2009. The Company bought back 2,40,032 Equity Shares for an aggregate amount of '' 63.54 lacs by utilising Securties Premium Account to the extent of '' 39.53 lacs. Capital Redemption Reserve of '' 24.01 lacs has been created being the nominal value of the shares bought back.

Securities Premium - Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to “Securities Premium”. The Company may

issue fully paid-up bonus shares to Its members out of the Securities Premium and the Company can use this reserve for buyback of shares.

Capital Reserve - Capital Reserve contains profit on re-issue of forfeited shares.

General Reserve - General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the Statement of Profit and Loss. The Company can use this reserve for payment of dividend and issue of fully paid-up bonus shares.

Retained Earnings- Retained Earnings represents surplus at the Balance Sheet date i.e Cumultaive balance of statement of Profit & Loss at the balance sheet date.

FVOCI - Net gain/(loss) on FVOCI eguity investments - As per Ind AS 109, Investment in Eguity Shares are to be initially measured at fair value and subseguently at fair value through profit and loss or other comprehensive income. At initial recognition, an entity may make an irrevocable election to present in other comprehensive income subseguent changes in the fair value of an investment in an eguity instrument within the scope of this Standard that is neither held for trading nor contingent consideration recognised by an acguirer in a business combination to which Ind AS 103 applies.

The Company represents that its investments are long term strategic investments and the Company intends to hold the same for an indefinite period. Thus, the Company has decided to subseguently measure Investments at fair value through other comprehensive income.

a. Term Loan - RBL Bank Limited

The Board of Directors of the Company in its meeting held on 4^th March, 2021 had considered and approved sanction letter dated 23^rd February, 2021 for restructuring of debt (“the Resolution Plan”) from RBL Bank Limited under the Guidelines of the Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019 dated 7^th June, 2019. In terms of the Resolution Plan implemented during the year ended 31^st March, 2021, the outstanding principal loan

and interest due to RBL Bank Limited of '' 9,500 lacs and '' 900 lacs respectively aggregating to '' 10,400 lacs have been restructured by way of a) allotment of 67,50,000 Eguity Shares of '' 10 each at a premium of '' 10 per share amounting to '' 1,350 lacs, b) allotment of 2,55,00,000 0.01% Cumulative Redeemable Preference Shares (“CRPS”) of '' 10 each issued at par amounting to '' 2,550 lacs c) converting balance amount into term loan of '' 6,500 lacs (Outstanding balance: '' 5,370 lakhs as on 31^st March, 2023).The restructured term loan of '' 6,500 lacs is repayable over a period of 12.5 years in 46 stepped up Quarterly instalments. During the Financial Year 2022-23, the Company has repaid the principal balances in advance and next principal repayment is due in September 2025.

Details of Security :

1. Subservient charge by way of hypothecation over entire Current Assets and Movable Fixed Assets of the Company (both present & future) located anywhere.

Rate of Interest : 10.45% p.a. (Linked to Bank''s 6 months MCLR)

b. Cumulative Redeemable Preference Shares - RBL Bank Limited

The 0.01%, 1,55,00,000 CRPS allotted during the financial year 2020-21 was repayable in 2 egual annual instalments at the end of the 14^th year and 15^th year (i.e. March, 2035 and March, 2036 respectively) and was recognised as Financial Liabilities in accordance with the reguirements of Ind AS 109 “Financial Instruments”. With the improvement in liguidity position of the Company and with the support of promoters including investors, the Company has been able to redeem the entire 0.01% 1,55,00,0000 CRPS at a fair value of '' 535.31 Lacs during the Financial Year 2022-23. Accordingly the liability for CRPS has been derecognised as at 31^st March, 2023. The resultant gain on early redemption of CRPS amounting to '' 1,014.69 Lacs has been considered in "Note- 23 Other Income”.

c. Cash Credit from Banks

1. First Pari-Passu Charge on the Company''s immovable property situated at Plot No.6, Kalyan Bhiwandi Industrial Area, Thane.

2. First Pari-Passu Charge by way of hypothecation on the entire Movable Fixed Assets of the Company both present and future.

3. Hypothecation of present and future stocks of raw materials, semi-finished goods, finished goods and book debts by way of first charge and also by hypothecation of movable fixed assets by way of first charge.

4. Outstanding loans carry an average interest rate of 10.95% to 12.50% p.a. (31 March 2022 : 10.70% to 12.50% p.a)

d. Overdraft under Channel Finance Scheme is backed by Letter of Comfort from Steel Authority of India Limited. This loan carries an interest rate of 7.35% p.a. (31 March 2022 : 7.35%)

Notes

The Company has used the borrowings from banks and financial institutions for the specific purposes for which it was taken. The Company has not been declared wilful defaulter by any bank or financial institution or other lenders, as at the reporting date . The Quarterly statements filed by the Company with banks are in agreement with books of accounts maintained by the Company.

*The 0.01% CRPS allotted during the financial year 2020-21 was repayable In 2 equal annual Instalments at the end of the 14^th year and 15^th year (i.e. March, 2035 and March, 2036 respectively) and recognised as Financial Liabilities In accordance with the requirements of Ind AS 109 “Financial Instruments”. During the Financial Year 2022-23, the Company has been able to redeem the entire 0.01% 1,55,00,000 CRPS at a fair value of '' 536.01 lakhs. Accordingly, the deferred liability for CRPS has been derecognised as at 31^st March, 2023. The resultant gain on early redemption of CRPS amounting to '' 1,014.69 lakhs has been considered as "Note- 23 Other Income”.

Proposed dividend on Equity Shares is subject to the approval of the Shareholders of the Company at the ensuing Annual General Meeting and has not been recognised as liability as at the Balance Sheet date.

Note 32: Significant Accounting Estimates and Assumptions

The preparation of the Company’s financial statements requires management to make estimates and assumptions that affect the reported values of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Estimates and Assumptions

The key assumptions concerning future and other key sources of estimating uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the periods when they occur.

Project Revenue and Costs

The percentage-of-completion method places considerable importance on accurate estimates of the extent of progress towards completion and may involve estimates on the scope of deliveries and services required for fulfilling the contractually defined obligations. These significant estimates include total contract costs, total contract revenues, contract risks, including technical, political and regulatory risks, and other judgments. The Company re-assesses these estimates on periodic basis and makes appropriate revisions accordingly.

Taxes

Significant management judgement is required to determine the amount of deferred tax assets (including MAT credit) that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Employee Benefit Plans

The cost of defined benefit gratuity plan and other post-employment benefits are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change in the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post employment benefit obligation.

The mortality rate is based on publicly available mortality tables for India, Those mortality tables tend to change only at Interval In response to demographic changes, Future salary increases are based on expected future inflation rates for the respective countries,

Further details about gratuity obligations are given in Note 33,

Fair value measurement of Financial Instruments

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values, Judgements include considerations of inputs such as liquidity risk, credit risk and volatility, Changes in assumptions about these factors could affect the reported fair value of financial instruments,

Impairment of Financial Assets

The impairment provision for financial assets such as loans, inter-corporate deposits, trade receivables, contract assets and others are based on assumptions about risk of default and expected loss rates, The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period,

Allowance for Uncollectible Trade Receivables

Trade receivables do not carry interest and are stated at their nominal values as reduced by appropriate allowances for estimated irrecoverable amounts, Estimated irrecoverable amounts are based on the ageing of the receivable balances and historical experiences, Individual trade receivables are written off when management deems them to be uncollectible,

The Company follows ‘simplified approach’ for recognition of impairment allowance on trade receivables or contract assets (including revenue in excess of billing),

The application of simplified approach does not require the Company to track changes in credit risk, Rather, it recognises impairment loss based on lifetime ECLs at each reporting date, right from its initial recognition,

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition, If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss, However, if credit risk has increased significantly, lifetime ECL is used, If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL,

Going Concern Assumption

The financial statements have been prepared on going concern basis,

B. Defined Benefit Plans:

The Company has following post employment benefits which are In the nature of defined benefit plans:

Gratuity

The Company has a defined benefit gratuity plan In India (funded). The Company’s defined benefit gratuity plan Is a final salary plan for employees, which requires contributions to be made to a separately administered fund. The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy.

Gratuity is a defined benefit plan and Company is exposed to the following risks:

Interest rate risk : A fall in the discount rate which is linked to the Government Securities Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

"Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk."

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

During the year, there were no plan amendments, curtailments and settlements in the Defined Benefit Plan.

A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by Rule 103 of Income Tax Rules, 1962.

Note 39: Financial risk management objectives and policies

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include loans, trade receivables, contract assets, cash and cash equivalents, bank balances other than that included in cash and cash equivalents and other financial assets that arise directly from its operations. The Company also holds FVTOCI investments and enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Board of Directors have adopted risk management policy to identify the risks involved in all activities of the Company. Further, the Company has a policy to hedge all foreign currency loans carrying a floating rate of interest with the help of foreign exchange forward contracts to cover foreign exchange rate and interest rate risk. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise currency rate risk and interest rate risk. Financial instruments affected by market risk include loans and borrowings, FVTOCI financial investments, trade receivables, trade payables and derivative financial instruments.

The Company’s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rate movement. The Company uses derivative financial instruments such as foreign exchange forward contracts to manage its exposures to foreign exchange fluctuations.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company also enters into cross currency interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon principal amount.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

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 Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency),

The Company manages its foreign currency risk by taking foreign exchange forward contracts,

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure,

The Company hedges its exposure to fluctuations on the translation into '' of its foreign operations by holding net borrowings in foreign currencies and by using foreign exchange forward contracts,

Foreign Currency Sensitivity

The following table demonstrates the sensitivity in the USD, Euro and Yen to the functional currency of the Company, with all other variables held constant, The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities including foreign currency derivatives,

Equity Price Risk

The Company''s investment consists of investments in publicly traded companies held for the purpose other than trading, The investee companies namely McLeod Russel India Limited and McNally Bharat Engineering Company Limited have been admitted under Corporate Insolvency Resolution Process under the provisions of Insolvency and Bankruptcy Code, as at the Balance Sheet date, The investments have been reported as per prevailing market prices in the stock market, as at the balance sheet date, As at 31 March 2023, the exposure to listed eguity securities at fair value was '' 823,05 lacs (31 March 2022: '' 967,44 lacs), A decrease / increase of 10% on the BSE market index could have an impact of approximately '' 82,31 lacs (31 March 2022: '' 96,74 lacs) respectively on the OCI and eguity, These changes would not have an effect on profit or loss,

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), from its investing activities (primarily inter-corporate deposits) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments,

In earlier years, the Company had advanced Inter-Corporate Deposits (‘ICDs’) to certain Promoter and Promoter Group companies, Basis the financial position of these recipient companies, the management had recognised provision against outstanding ICDs amounting to '' 9,950,18 Lacs and written off the entire accrued interest of '' 2,738,72 lacs on such ICDs during the financial year ended 31^st March, 2021, without prejudice to any of the legal rights and remedies available to recover the outstanding amounts, The aggregate effect of '' 12,688.90 lacs had been presented as an exceptional loss in the Statement of Profit and Loss for the

year ended 31^st March, 2021. During the year ended 31^st March, 2023, the Company has decided to classify loan outstanding amount of '' 9,534.38 Lacs granted to Babcock Borsig Limited and Williamson Financial Services Limited from "having significant increase in credit risk" to " credit impaired and written down" as per the reguirements of IND AS 109 "Financial Instruments".

Trade Receivables

Customer credit risk is managed as per the Company’s established policy, procedures and controls relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on credit term in line with respective industry norms. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

The reguirement for impairment is analysed at each reporting date. Refer Note 6 for details on the impairment of trade receivables. Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only on the basis of decision taken by the Company''s senior management.

The Company’s maximum exposure to credit risk for the components of the balance sheet at 31 March 2023 and 31 March 2022 is the carrying amounts as illustrated in Note 15,16 & 17

Liquidity Risk

Liguidity risk is the risk that the Company may not be able to make its present and future collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum levels of liguidity to meet its cash and collateral reguirements. The Company closely monitors its liguidity position and maintains adeguate sources for financing including debts, cash credits and overdrafts at an optimised cost.

During the year, the Company has redeemed 0.01% 1,55,00,000 Cumulative Redeemable Preference Shares (CRPS) amounting to '' 1550.00 Lacs, allotted to RBL Bank Limited at a Fair Value of '' 535.31 Lacs.

Note 40: Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and cash equivalents (including other bank balances).

Note 41: Leases Operating Leases :

With effect April 1, 2019, the Company has adopted Ind AS 116 “Leases” and applied the standard to all lease contracts existing on April 1, 2019 using the modified retrospective method.

The leasehold land of the Company has been presented as Right of Use asset under Note 3 ‘Property, plant and equipment’ and depreciated over the lease term of the asset.

The other lease arrangements of the Company are for a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straightline basis over the term of the lease.

Note 41a: Research and development costs

The Company has an inhouse research and development department which concentrates on product development and developing new products. Research and development costs that are not eligible for capitalisation have been expensed out in the respective years. The total amount of research and development cost expensed out in the year ended 31 March 2023 was '' 12.86 lacs (31 March 2022: '' 18.46 lacs).

The Contract Assets primarily relates to the Company’s rights to consideration for work completed on design, construction and commissioning contracts but not billed at the reporting date. Contract assets are transferred to trade receivables when the Company raises invoices on the customers based on the terms as agreed in the contracts.

The Contract Liabilities primarily relate to the advance consideration received on contracts entered with customers. The advances are adjusted against subseguent billings based on the terms as agreed in the contracts.

Trade receivables are generally non-interest bearing and are on terms of 30 to 90 days.

Performance Obligations:

The Company enters into different types of contracts with its customers which have different performance obligations as follows: Design, construction and commissioning contracts with the customers:

These contracts are for design and construction of highly customised drying eguipments and range for a period of 3 to 12 months. Since, these eguipments are highly customised and do not have any alternative use and as per the terms as agreed in the contracts, in case the contracts get terminated during the design or construction phase, the Company will be entitled to the costs incurred till that date, plus reasonable profit margin. Thus, the Company recognises revenue for these contracts over the time in accordance with the provisions of para 35 (c) of Ind AS 115.

Variable Consideration: These contracts usually have a liguidated damages clause for delay in delivery of these eguipments beyond the scheduled dates as agreed in the contracts. The Company estimates the amount to be recognised towards liguidated damages based on an analysis of accumulated historical experience. The Company includes estimated amount in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is resolved.

Supply of other drying equipments and spares:

These contracts are for supply of other drying eguipments and spares. These are standard eguipments and spares which were manufactured and sold by the Company with a little modification as per the reguirements of the customer. Revenue from these contracts are recognised when the significant risks and rewards of ownership of goods have passed to the buyer, usually on delivery of the goods to the customer as per the inco-terms as agreed in the contracts. Revenue is measured at the fair value of consideration received or receivable net of return, trade allowances and rebates.

Service Income:

The Company recognises service income over the time based on the terms as agreed in the contracts entered into with the customers.

The payment terms for all the above contracts depend upon the milestones as agreed in the contracts and are independent of the performance obligations to be satisfied.

The Company has not disclosed information regarding transaction price allocated to the remaining performance obligations as all the contracts of the Company have an original expected duration of one year or less.

Determination of transaction price and allocation of amounts to performance obligations:

In case of design, construction and commissioning contracts, the Company may have different performance obligations as follows:

1. Design, construction and supply of eguipments;

2. Supply of commissioning and operational spares; and

3. Supervision services for erection and commissioning of eguipments.

For these contracts, the total transaction price is agreed in the contracts entered into with the customers. The Company allocates the transaction price to these performance obligations based on the standalone selling price of these goods or services.

The amount of variable consideration is determined based on the terms of the contract.

The Company recognises revenue for the above performance obligations and variable consideration based on the revenue recognition criteria as specified above.

The Company does not have any incremental costs of obtaining a contract and costs incurred in fulfilling a contract which are expected to be recovered from the customer and hence, the Company has not recognised any asset towards the same.

The Company''s contracts have a maximum duration of 1 year and hence, the Company has not adjusted the amount of consideration received or receivable as per the contracts for the effects of a significant financing component.

Note 45(A): Disclosure in relation to undisclosed income

The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year ended 31^st March, 2023 and 31^st March, 2022 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).

Note 45(B): Details of Benami Property held

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company, during the year ended 31^st March, 2023 and 31^st March, 2022 for holding any Benami property under the benami transactions (Prohibition) Act , 1988 ( 45 of 1988) and the rules made thereunder.

Note 45(C) : Registration of Charge

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period except non-satisfaction of charge created in favour of RBL Bank Limited amounting to '' 7,000 Lakhs. As a result of non-receipt of No-Dues Certificate from the lender bank, the same is pending from earlier years.

Note 45 (D): Corporate Social Responsibility

As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The proposed areas of CSR activities are eradication of hunger and poverty, promoting of education and rural development, disaster management including disaster relief, rehabilitation and reconstruction and promoting health care including preventing health care. The expenditure

Note 45(E): Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31^st March, 2023 and 31^st March, 2022

Note 45 (F) : Relationship with Struck off Companies

During the year,the Company did not have any transactions with companies struck off u/s 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

Note 45 (G) : Utilisation of Borrowed Funds and Share Premium

During the year ended 31^st March 2023, the Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kinds of funds) to any other person (s) or entity(ies).

During the year ended 31^st March, 2023, the Company has not received any fund from any person(s) or entity(ies), Including foreign entities with the understanding (whether recorded in writing or otherwise) that the company shall directly or indirectly lend or invest or provide any guarantee or security.

Note 46 : Previous year figures have been regrouped/ reclassified wherever necesaary, to make them comparable with the current year figures.

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Mar 31, 2018

Notes:1

1. In accordance with the Ind AS 36 on ''Impairment of Assets'', the Company has reassessed the carrying amount of its Intangible assets and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realisable value.

2. For Intangible Assets existing as on 1 April 2016 i.e., the date of transition to Ind AS, the Company has used Indian GAAP carrying value as deemed cost.

Investments at fair value through OCI (fully paid) reflect investment in quoted equity securities. These equity shares are designated as FVTOCI as they are not held for trading purpose. Thus disclosing their fair value fluctuation in profit and loss will not reflect the purpose of holding.

** The Company has availed working capital loan from bank aggregating to Rs. 10,300 lacs as at 31 March 2018 (31 March 2017: Rs. 11,000 lacs, 1 April 2016: INR NIL). However, pending utilisation of the monies for the aforesaid, the Company has placed Rs. 9,930 lacs (31 March 2017: Rs.10,480lacs, 1 April 2016: Rs. NIL) with group companies as Inter-Corporate Deposit (included in Inter-corporate deposits given to Others shown above).

***Bank deposits with maturity more than 12 months includes balances with banks held as margin money of Rs. 30.68 lacs (31 March 2017: Rs.24.90 lacs, 1 April 2016 :Rs. 11.70 lacs) having residual maturity of more than 12 months.

Derivative instruments at fair value through profit or loss includes foreign exchange forward contracts entered into by the Company with the intention of reducing the foreign exchange risk of trade receivables. These contracts are not designated in hedge relationships and are measured at fair value through profit or loss.

1. No trade receivables are due from directors or other persons in whom directors are interested.

2. Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.

Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

There are no shares issued as bonus, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date.

Other equity

Capital Redemption Reserve - The Company had made an offer of buyback of its own fully paid up equity shares through the methodology of "Open Market Purchase through Stock Exchange" pursuant to the approval of Board of Directors at their meeting held on 29 January 2009. The Company bought back 2,40,032 equity shares for an aggregate amount of Rs.63.54 lacs by utilising Securties Premium Account to the extent of Rs.39.53 lacs. Capital Redemption Reserve of Rs. 24.01 lacs has been created being the nominal value of the shares bought back.

Securities Premium Reserve - Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to "Securities Premium Reserve". The Company may issue fully paid-up bonus shares to its members out of the securities premium reserve and the Company can use this reserve for buy-back of shares.

Capital Reserve - Capital Reserve contains profit on re-issue of forfeited shares.

General Reserve - General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up bonus shares.

FVOCI - Net gain/(loss) on hedging instruments in a cash flow hedge - The Company has taken foreign exchange forward contracts and cross currency interest rate swaps to hedge foreign currency term loans taken from banks to meet the working capital requirements. The forward contracts and cross currency interest rate swaps have been taken to offset the effect of changes in interest rates and foreign exchange rates. The net gain / (loss) on these foreign exchange forward contracts and cross currency interest rate swaps have been recognised in other comprehensive income in accordance with the requirements of Ind AS.

FVOCI - Net gain/(loss) on FVOCI equity investments - As per Ind AS 109, investment in equity shares are to be initially measured at fair value and subsequently at fair value through profit and loss or other comprehensive income. At initial recognition, an entity may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument within the scope of this Standard that is neither held for trading nor contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies.

The Company represents that its investments are long term strategic investments and the Company intends to hold the same for an indefinite period. Thus, the Company has decided to subsequently measure investments at fair value through other comprehensive income.

Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised as a liability (including dividend distribution tax thereon) as at 31 March.

Notes:2

a. Secured by hypothecation of cars. Two loans - One loan having effective interest rate of 8.25% and payable on EMI basis up to 05 March 2021 and other loan having effective interest rate of 9.70% and payable on EMI basis up to 07 July 2020.

b. Details of security :

1. Equitable Mortgage created by way of Deposit of Title Deed on the Company''s immovable property situated at Plot No.6, KalyanBhiwandi Industrial Area, Thane.

2. Hypothecation of present and future stocks of raw materials, semi-finished goods, finished goods and book debts by way of first charge and also by hypothecation of movable plant and machinery by way of first charge.

Outstanding loans carry an average interest rate of 11.60% to 14.50% p.a.(31 March 2017 : 13.00% to 14.50% p.a., 1 April 2016 : 13.50% to 15.80% p.a.)

c. Secured by Letter of Comfort from Steel Authority of India Ltd. This loan carries an interest rate of 10.25% p.a. (31 March 2017 : 10.25%, 1 April 2016 : 10.25% p.a.)

d. i) Payable on demand on 6 October 2018 – Rs. 4000 lacs, Rate of interest - 1 year LIBOR plus 321 basis points. The effective rate of interest on this loan is 15.40%. However, since there has been a breach in the condition of the covenant as per the loan agreement, the term loan has become repayable on demand. The breach has not been remediated upto the date of issue of financial statements.

Details of security :

1. Subservient charge on the current assets and movable fixed assets of the Company.

2. Board resolution backed Letter of Comfort from McleodRussel India Limited

3. Unconditional and irrevocable corporate guarantee of Williamson Financial Services Ltd to remain valid during the currency of loan.

4. Unconditional and irrevocable personal guarantee of Mr.AdityaKhaitan to remain valid during the currency of the loan.

ii) Payable on demand on 22 September 2018 – Rs. 4000 lacs, Rate of interest - 1 year LIBOR plus 350 basis points. The effective rate of interest on this loan is 15.93%. However, since there has been a breach in the condition of the covenant as per the loan agreement, the term loan has become repayable on demand. The breach has not been remediated upto the date of issue of financial statements.

Details of security :

1. Subservient charge on the current assets and movable fixed assets of the Company.

2. Board resolution backed Letter of Comfort from McleodRussel India Limited

3. Unconditional and irrevocable corporate guarantee of Williamson Financial Services Ltd to remain valid during the currency of loan.

4. Unconditional and irrevocable personal guarantee of Mr.AdityaKhaitan (Chairman) to remain valid during the currency of the loan.

iii) Payable on demand on 30 September 2017 - Rs. 4000 lacs, Rate of interest - 6 months LIBOR 300 basis points. The effective rate of interest on this loan is 15.40%. However, since there has been a breach in the condition of the covenant as per the loan agreement, the term loan has become repayable on demand. The breach has not been remediated upto the date of issue of financial statements.

Details of security :

1. Subservient charge on the current assets and movable fixed assets of the Company.

2. Board resolution backed Letter of Comfort from McleodRussel India Limited

3. Unconditional and irrevocable corporate guarantee of Williamson Financial Services Ltd to remain valid during the currency of loan.

iv) Payable on demand on 6 August 2017 - Rs.INR 4000 lacs, Rate of interest - 10.50%. The effective rate of interest on this loan is 15.75%. However, since there has been a breach in the condition of the covenant as per the loan agreement, the term loan has become repayable on demand. The breach has not been remediated upto the date of issue of financial statements.

Details of security :

1. Subservient charge on the current assets and movable fixed assets of the Company.

2. Board resolution backed Letter of Comfort from McleodRussel India Limited.

3. Unconditional and irrevocable corporate guarantee of Williamson Financial Services Ltd to remain valid during the currency of loan.

4. Unconditional and irrevocable corporate guarantee of Bishnauth Investments Limited (of Rs. 2000 lacs).

5. Unconditional and irrevocable personal guarantee of Mr.AdityaKhaitan (Chairman).

1. Trade payables are non-interest bearing and are normally settled on 60-90 day terms.

2. For explanations on the Company''s credit risk management processes, refer to Note 40.

** Disclosure as required under Section 22 of Micro, Small & Medium Enterprises Development Act, 2006 ("the Act"):

The information has been given in respect of such vendors to the extent they could be identified as ''Micro & Small Enterprises'' on the basis of information available with the Company.

** Includes term loan repayable to RBL Bank by way of three annual installments starting from 30 September 2017: Rs. 700 lacs, 30 September 2018: Rs. 800 lacs& 30 September 2019: Rs. 1500 lacs as per the loan agreement carrying an interest rate of 6 months LIBOR plus 300 basis points. The effective interest rate on this loan is 15.40%. However, since there has been a breach in the condition of the covenant as per the loan agreement, the term loan has become repayable on demand. The breach has not been remediated upto the date of issue of financial statements.

Details of security :

1. Subservient charge on the current assets and movable fixed assets of the Company.

2. Board resolution backed Letter of Comfort from group company McleodRussel India Limited.

3. Unconditional and irrevocable corporate guarantee of Williamson Financial Services Ltd to remain valid during the currency of loan.

Financial Liabilities at fair value through other comprehensive income

Financial Liabilities at fair value through other comprehensive income reflect the change in fair value of foreign exchange forward contracts and cross currency interest rate swaps designated as cash flow hedges to hedge foreign currency term loans taken from banks to meet the working capital requirements. The Company is exposed to changes in the rates of interest and foreign exchange rates on its foreign currency loans. The forward contracts and cross currency interest rate swaps have been taken to offset the effect of changes in interest rates and foreign exchange rates. The Company has a policy to hedge all its foreign currency loans.

Provision for liquidated damages

The Company creates provision for liquidated damages on those construction contracts for which delivery has been delayed and no formal communication regarding extension of time has been received from the customers. The provision has been created on the basis of purchase order raised by the customers.

**The Government of India introduced the Goods and Service Tax (GST) with effect from 1 July 2017, GST is collected on behalf of the Government and no economic benefit flows to the Company and hence gross revenue under GST regime is presented excluding GST as per Ind AS. However, gross revenue under pre-GST regime included Excise Duty which is now subsumed in GST. Consequently, the figures for the year ended 31 March 2018 are not comparable with the year ended 31 March 2017.

Fair value gain on financial instruments at fair value through profit or loss relates to foreign exchange forward contracts that did not qualify for hedge accounting and embedded derivatives, which have been separated. No ineffectiveness has been recognised on foreign exchange and interest rate hedges.

Note 3: Employee benefit disclosure

A. Defined contribution plans:

Amount of Rs. 118.97 lacs (31 March 2017: Rs.116.08 lacs) is recognised as expenses and included in Note No. 28 "Employee benefit expense" in the Statement of Profit and Loss.

B. Defined benefit plans:

The Company has following post employment benefits which are in the nature of defined benefit plans:

(a) Gratuity

The Company has a defined benefit gratuity plan in India (funded). The Company''s defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund. The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy.

Gratuity is a defined benefit plan and company is exposed to the following risks:

Interest rate risk : A fall in the discount rate which is linked to the Government Securities Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

During the year, there were no plan amendments, curtailments and settlements.

A separate trust fund is created to manage the Gratuity plan and the contributions towards the trust fund is done as guided by rule 103 of Income Tax Rules, 1962.

Terms and conditions of transactions with related parties

1. The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm ''s length transactions. Outstanding balances at the year-end 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.

2. ICD''s given to related party carries interest rate of NIL (31 March 2017: 14.00% & 1 April 2016 : 14.00%)

Commitments with related parties

The company has not provided any commitments to the related party as at 31 March 2018 (31 March 2017 : Nil & 1 April 2016: Nil)

NOTE 4: Segment information:

A. Primary operating segment

In line with the provision of Ind AS-108 - Operating Segments, Chief Operating Decision Maker (CODM) reviews the operations of the Company as manufacturer of Engineering Products, which is considered to be the only reportable segment by the management. Accordingly, no separate disclosure of primary operating segment information has been made.

The management assessed that cash and cash equivalents, trade receivables, current loans given, other current financial assets, trade payables, short term borrowings and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

Note 5: Financial risk management objectives and policies

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include loans, trade receivables, cash and cash equivalents, bank balances other than that included in cash and cash equivalents and other financial assets that arise directly from its operations. The Company also holds FVTOCI investments and enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Board of Directors have adopted risk management policy to identify the risks involved in all activities of the Company. Further, the Company has a policy to hedge all foreign currency loans carrying a floating rate of interest with the help of foreign exchange forward contracts and cross currency interest rate swaps to cover foreign exchange rate and interest rate risk. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise currency rate risk and interest rate risk. Financial instruments affected by market risk include loans and borrowings, FVTOCI financial investments, trade receivables, trade payables and derivative financial instruments.

The Company''s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rate movement. The Company uses derivative financial instruments such as foreign exchange forward contracts and cross currency interest rate swaps to manage its exposures to foreign exchange fluctuations.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company also enters into cross currency interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon principal amount.

Interest rate sensitivity

With all other variables held constant, the following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting on profit before tax and equity as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

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 Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency).

The Company manages its foreign currency risk by taking foreign exchange forward contracts and cross currency interest rate swaps.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure.

The Company hedges its exposure to fluctuations on the translation into INR of its foreign operations by holding net borrowings in foreign currencies and by using cross currency interest rate swaps and forwards.

Foreign currency sensitivity

The following table demonstrates the sensitivity in the USD and Euro to the functional currency of the Company, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities including foreign currency derivatives.

Equity price risk

The Company''s investment consists of investments in publicly traded companies held for the purpose other than trading. Such investments represents a low exposure risk for the Company and are not hedged. As at 31 March 2018, the exposure to listed equity securities at fair value was Rs. 1,608.52 lacs (31 March 2017: Rs. 1,264.46 lacs, 1 April 2016 :Rs. 1,400.87 lacs). A decrease / increase of 10% on the BSE market index could have an impact of approximatelyRs.160.85 lacs (31 March 2017: Rs.126.45 lacs, 1 April 2016:Rs.140.09 lacs) respectively on the OCI and equity. These changes would not have an affect on profit or loss.

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.

Trade receivables

Customer credit risk is managed as per the Company''s established policy, procedures and controls relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on credit term in line with respective industry norms. Outstanding customer receivables are regularly monitored. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.

The requirement for impairment is analysed at each reporting date. Refer Note 6 for details on the impairment of trade receivables.

Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only on the basis of decision taken by the Company''s senior management.

The Company''s maximum exposure to credit risk for the components of the balance sheet at 31 March 2018 and 31 March 2017 is the carrying amounts as illustrated in Note 16, 17 & 18 except for derivative financial instruments. The Company''s maximum exposure relating to financial derivative instruments is noted in note 18 and the liquidity table below.

Liquidity risk

Liquidity risk is the risk that the Company may not be able to make its present and future collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and maintains adequate sources for financing including debts, cash credits and overdrafts at an optimised cost.

Note 41: Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and cash equivalents.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2018, 31 March 2017 and 1 April 2016.

Note 6: First-time adoption of Ind AS

These financial statements, for the year ended 31 March 2018, are the first Ind AS financial statements the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (previous Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian previous GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

Deemed cost

Ind AS 101 permits a first time adopter to elect to measure an item of property, plant and equipment including capital work in progress at the transition to Ind AS at its carrying value and use that carrying value as its deemed cost at that date. This exemption can also be used for intangible assets covered by Ind AS 38. Accordingly, the Company has elected to measure all of its property, plant and equipment & intangible assets including capital work in progress at previous indian GAAP carrying value on the date of transition to Ind AS and used those carrying value as deemed cost of Property, plant and equipment & Intangible assets.

Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of facts and circumstances at the date of transition to IndAS . The Company has elected to apply this exemption.

Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous indian GAAP, unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 and 31 March 2017 are consistent with the estimates as at the same date made in the conformity with previous indianGAAP . The Company made estimates for the following in accordance with Ind AS at the date of transition as these were not required under previous indian GAAP:

1. Investment in equity instruments carried at FVOCI

2. Impairment of financial assets based on Expected Credit Loss model

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1 April 2016, the date of transition to Ind AS and as of 31 March 2017.

Footnotes to the reconciliation of equity as at 1 April 2016 and 31 March 2017 and profit or loss for the year ended 31 March 2017:

1. FVTOCI financial assets

Under previous Indian GAAP, the Company accounted for long term investments in quoted equity shares as investment measured at cost less provision for other than temporary diminution in the value of investments. Under Ind AS, the Company has designated such investments as FVTOCI investments. Ind AS requires FVTOCI investments to be measured at fair value. At the date of transition to Ind AS, difference between the instruments fair value and previous Indian GAAP carrying amount of Rs. 108.76 lacs has been recognised in retained earnings. Further the difference between the change in instruments fair value during the year ended 31 March 2017 and provision for other than temporary dimunition in the value of investment as per previous indian GAAP of Rs. 63.59 lacs has been recognised in the statement of profit and loss.

2. Expected credit loss

Under previous Indian GAAP, the Company has created provision for impairment of trade receivables and unbilled revenue on project accounts on specific identification basis. Under Ind AS, impairment allowance has been determined based on Expected Credit Loss model (ECL) as per Ind AS 109. Due to ECL model, the Company impaired its trade receivables and unbilled revenue on project accounts byRs.210.98 lacs andRs.252.95 lacs respectively on 1 April 2016 which has been eliminated against retained earnings. The impact of reversal of provision of Rs. 0.35 lacs for trade receivables and provision of Rs.16.92 lacs for unbilled revenue on project accounts for year ended 31 March 2017 has been recognized in the statement of profit and loss.

3. Derivative instruments

The Company uses derivative financial instruments, such as foreign exchange forward contracts and cross currency interest rate swaps, to hedge its foreign currency risks and interest rate risks. Under previous Indian GAAP, there is no mandatory standard that deals comprehensively with hedge accounting, which has resulted in the adoption of varying practices. The Company has designated various cash flow hedges and applied the cash flow hedge accounting principles to avoid profit or loss mismatch. All the hedges designated under previous Indian GAAP are of types which qualify for hedge accounting in accordance with Ind AS 109 also. Accordingly the Company has recognised cash flow hedge reserve of Rs.185.23 lacs in the statement of profit and loss which is equivalent to the impact of exchange difference recognised on restatement of foreign currency borrowings at closing rate and Rs. 180.89 lacs has been recognised in other comprehensive income for the year ended 31 March 2017.

4. Proposed Dividend

Under previous Indian GAAP, proposed dividend including dividend distribution tax, are recognised as liability in the period to which they relate, irrespective of when they are recommended by the Board of Directors and approved by the shareholders in a general meeting. Under Ind AS, proposed dividend is recognised as a liability in the period in which it is declared by the Company, usually when approved by shareholders in a general meeting, or paid. Therefore, the proposed dividend including dividend distribution tax amounting to Rs.319.09 lacs has been derecognised and adjusted against the retained earnings as on the date of transition.

5. Deferred Tax

The various transitional adjustments lead to temporary differences, which the Company has to account for. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity. On the date of transition, the net impact on deferred tax assets aggregating Rs.160.56 lacs has been adjusted to retained earnings as on 1 April 2016. Further, Rs.68.34 lacs has been recognised in the statement of profit and loss for the year ended 31 March 2017.

6. Revenue from Operations

Under the previous Indian GAAP, sale of goods was presented net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise Duty on sale of goods is presented separately on the face of statement of profit and loss. Thus, revenue from operations under Ind AS has increased by Rs.1,239.78 lacs with excise duty on sales shown separately.

7. Defined benefit obligation

Under previous Indian GAAP, the entire cost, including actuarial gains and losses on post-employment defined benefit plan is charged to the statement of profit or loss. Under Ind-AS, remeasurements comprising of actuarial gains and losses are recognised through Other Comprehensive Income. Thus, employee benefits expense is reduced by Rs.17.30 lacs (tax impact of Rs.5.99 lacs has been reclassified from statement of profit and loss to other comprehensive income) and is recognised in Other Comprehensive Income during the year ended 31 March 2017.

8. Utilization of MAT Credit Entitlement

The Company has recorded entry for utilization of MAT Credit Entitlement of Rs.164.04 lacs. Under previous indian GAAP, the Company had provision for tax liability of Rs.108.87 lacs which was shown under short term provisions. Due to utilization of MAT Credit Entitlement of Rs.164.04 lacs, the Company will now be entitled to a refund of Rs.55.17 lacs which has been shown under income tax assets (net).

9. Reclassification of assets and liabilities in accordance with Ind AS

The Company has reclassified its assets and liabilities shown as per previous indian GAAP to confirm with the disclosure requirement of Ind AS and schedule III of the Companies Act 2013.

Note 7: Leases

Operating Leases :

The Company has entered into leasing arrangements for lease of premises with lease terms ranging between 2 to 3 years. The Company has the option to renew the leases upon expiry based on mutually agreed terms to be decided upon at the time of renewal of leases. Lease payments recognized in the Statement of Profit and Loss : 31 March 2018 : Rs.27.46 lacs (31 March 2017 : Rs.28.78 lacs)

Note 8: Research and development costs

The Company has an inhouse research and development department which concentrates on product development and developing new products. Research and development costs that are not eligible for capitalisation have been expensed out in the respective years. The total amount of research and development cost expensed out in the year ended 31 March 2018 was Rs.70.23 lacs (31 March 2017: Rs.63.95 lacs).

Note 9: Disclosure in terms of Indian Accounting Standard 11 on the Accounting of Construction Contracts is as under:

The Company has recognized unbilled revenue during the year in respect of high value, long delivery orders which are delivered in parts over the execution period. The Unbilled revenue is calculated based on percentage of completion of individual contracts.

Note 10: New standards / amendments to existing standards issued but not yet adopted:

Following are the new standards / amendments to existing standards which have been issued by The Ministry of Corporate Affairs (''MCA'') that are not effective for the reporting period and have not been early adopted by the Company:

a. Issue of Ind AS 115 - Revenue from Contracts with Customers:

On March 28, 2018, the Ministry of Corporate Affairs (MCA) notified the new revenue recognition standard, viz., Ind AS 115 Revenue from Contracts with Customers. Ind AS 115 is applicable to the Company for the financial years beginning on or after April 1, 2018 for all the companies who have migrated to Ind AS. The new standard establishes a five step model related to revenue recognition from contracts with customers. It permits either ''full retrospective'' adoption in which the standard is applied to all of the periods presented or a ''modified retrospective'' adoption.

The Company is evaluating its various contractual arrangement and the available transition methods. The Company has established a team for evaluation of the contracts with customers to implement Ind-AS 115. Reliable estimates of the quantitative impact of Ind-AS 115 on the financial statements will be possible after a detailed evaluation.

b. Amendment to existing standards:

The MCA has also carried out amendments of the following accounting standards, applicable to the Company:

i. Ind AS 21 - The Effects of Changes in Foreign Exchange Rates;

ii. Ind AS 12 - Income Taxes

Application of above amendments are not expected to have any significant impact on the Company''s financial statements.

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Mar 31, 2016

Details of security for (a)(i)

1. Equitable Mortgage created by way of Deposit of Title Deed on the Company''s immovable property situated at Plot No.6, Kalyan Bhiwandi Industrial Area, Thane.

2. Hypothecation of present and future stocks of raw materials, semi-finished goods, finished goods and book debts by way of first charge and also by hypothecation of movable plant and machinery by way of first charge.

Details of Security for (a)(ii)

3. Secured by Letter of Comfort from Steel Authority of India Ltd.

Notes:

Balances with banks held as margin money include Rs. 11.70 lacs (previous year Rs. 24.80 lacs) having residual maturity of more than 12 months.

4. The Company holds investment in equity shares of Mcnally Bharat Engineering Company Limited (Book Value Rs. 1,993.45 lacs) as strategic investment on a long term basis. The Company is of the view that the diminution in value of Rs. 1344.17 lacs (Previous Year Rs. 1280.10 lacs) in these investments is temporary. Notwithstanding this, out of abundant caution, a total provision of Rs. 800 lacs (Previous Year Rs. 600 lacs) including Rs. 200 lacs (Previous Year Rs. 200 lacs) during the year is made in the books.

5. The Board of Directors of the Company at its meeting held on March 22, 2016, gave their approval in respect of the scheme of amalgamation of McNally Bharat Engineering Company Limited, McNally Sayaji Limited and EMC Limited with the Company under Section 391 and Section 394 and other applicable provisions of the Companies Act, 1956, with effect from January 1, 2015. The Company is in the process of obtaining all requisite statutory and regulatory approvals.

6. Disclosures under Accounting Standards Note 27.1

In accordance with requirements of Accounting Standard 7, Company has recognized unbilled revenue during the year in respect of high value, long delivery orders which are delivered in parts over the execution period. The Unbilled revenue is calculated based on percentage of completion of individual contracts.

7.Employee benefit plans

Defined contribution plans

The Company makes Provident Fund 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. 82.61 lacs (Year ended 31 March, 2015 Rs. 79.29 Lacs) for Provident Fund contributions and Rs. 34.52 lacs (Year ended 31 March, 2015 Rs. 33.43 lacs) for Superannuation Fund contributions 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.

The following table sets out the funded status of the Gratuity benefit and the amount recognized in the financial statements:

8. Based on the guiding principles given in the Accounting Standard on ''Segment Reporting'' (AS-17) issued by the Institute of Chartered Accountants of India, the primary segment of the Company is business segment which comprises of Engineering Segment. As the Company operates in a single primary business segment, no segment information thereof is given.

Segment information for secondary segment reporting (by geographical segments).

The company has a customer base within and outside India.

9. Disclosure of provisions as required by Accounting Standard 29

*(i) Consequent to closure of Baroda factory in 2003, provision was made for additional retrenchment compensation in respect of 97 employees amounting to Rs. 45.80 lacs. Consequent to a settlement with the workers before the labour court an amount of Rs. 30 lacs was paid as full and final settlement during previous two years. The balance amount has been written back.

*(ii) The Company was party to a litigation by certain ex-employees of the Company who were members of the WM Super Annuation Fund (SAF) who had filed a petition in the High Court of Mumbai to direct the Company to buy annuities enabling them to receive their pension. The Company had provided Rs. 220 lacs in total in the accounts towards this liability in addition to the amount already contributed by the erstwhile group company fund to a Super Annuation fund held with Life Insurance Corporation of India. During the year the Company has arrived at a settlement with petitioners. It is agreed in the memorandum of understanding that total amount available in Super Annuation fund held with Life Insurance Corporation of India will be equitably distributed among ex-employees and the writ petition will be withdrawn. Consequent to an understanding arrived at with the ex-employees and the withdrawal of the petition by them, the trust has settled their claim at the negotiated amount out of the accumulated corpus. Such settlement has been completed and the trust is likely to be wound up shortly. Balance provision no longer required has been written back.

10. a) Operating Leases :

Lease payments recognized in the Statement of Profit and Loss : Rs. 29.94 lacs (Previous Year Rs. 25.94 lacs).

b) Finance Lease

The Company has entered into finance lease arrangements for vehicle, which provide the Company an option to purchase the assets at the end of the lease period.

Note 11.

The total amount incurred on Research and Development activities during the year amount to Rs. 65.44 lacs (Previous Year Rs. 59.57 lacs).

Note 12.

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. Corporate Information

Kilburn Engineering Limited is in the business of process design, engineering, manufacturing, project management, installation and commissioning of equipment and systems for various process plants across the world.

2. Additional information to the financial statements

Rs. In Lacs

Particulars As at As at 31st March, 31st March, 2015 2014

Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Letters of Credit and Bank Guarantees outstanding 3,712.57 2,441.17 as at the year end. FDR of Rs. 629.08 lacs (previous year Rs. 439.43 lacs) pledged with banks against the LC's and Bank Guarantees.

(b) Demand Notice from DGFT for non-fulfilling of eport 137.00 137.00 obligations. The Company expects no liability on this account.

(c) The Company is a party to litigation - - by certain ex-employees in respect of claim for Superannuation fund dues/ retrenchment compensation arising around the year 2000-01. The Company has provided for the probable obligation. This is expected to materialize on resolution of the dispute.

(d) The Company had received an order 30.75 30.75 from Deputy Commissioner of Sales Tax, Mumbai for the year 2008-09. The Company has filed an appeal with the Joint Commissioner of Sales Tax after payment of Rs. 1.50 lacs.

(e) The Company had received a Demand Notice 111.98 111.98 from the Maharashtra State VAT Authority for the assessment year 2005-06. The Company has filed an appeal against the said order.

(f) The Company had received a Demand Notice 639.73 730.73 from the Central Sales Tax Authorities for the assessment year 2005-06. The Company has filed an appeal against the said order & has paid an amount of Rs. 242.30 lacs during current year & made a provision of Rs. 91 lacs in books. In respect of (e) & (f) above, the total demand of Rs. 842 lacs is on account of non-production of "C" Forms which were lost and certain errors in assessment.

(g) Last year the Company had received Demand 35.39 35.39 Notice from the Income Tax Authorities disallowing certain expenses and selling commission expense for the assessment year 2011-12.

(h) Other claims not acknowledged as debts. 0.80 0.80

3. Disclosures under Accounting Standards Note 26.1

In accordance with requirements of Accounting Standard 7, Company has recognized unbilled revenue during the year in respect of high value, long delivery orders which are delivered in parts over the execution period. The Unbilled revenue is calculated based on percentage of completion of individual contracts.

4. Employee benefit plans

Defined contribution plans

The Company makes Provident Fund 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. 79.29 lacs (Year ended 31 March, 2014 Rs. 70.49 Lacs) for Provident Fund contributions and Rs. 33.43 lacs (Year ended 31 March, 2014 Rs. 34.51 lacs) for Superannuation Fund contributions 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.

5. Based on the guiding principles given in the Accounting Standard on 'Segment Reporting' (AS-17) issued by the Institute of Chartered Accountants of India, the primary segment of the Company is business segment which comprises of Engineering Segment. As the Company operates in a single primary business segment, no segment information thereof is given.

6. Operating Leases :

Lease payments recognized in the Statement of Profit and Loss : Rs. 25.94 lacs (Previous Year Rs. 28.10 lacs).

7. The total amount incurred on Research and Development activities during the year amount to Rs. 59.57 lacs (Previous Year Rs. 65.99 lacs)

8. 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, 2014

Rs'' In Lacs

Note Particulars As at As at 31st March 31st March 2014 2013

1.1 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Letters of Credit outstanding as at 2,441.17 377.55 the year end FDR of Rs.439.43 lacs (previous year Rs.356.88 lacs) pledged with banks against the LCs and Bank Guarantees.

(b) Demand Notice from DGFT for non-fulfilling of 137.00 137.00 export obligations. The Company expects no liability on this account

(c) The Company is a party to litigation by certain - - ex employees in respect of claim for Superannuation fund dues/ retrenchment compensation arising around the year 2000-01. The Company has provided for the probable obligation. This is expected to materialize on resolution of the dispute.

(d) During the year, the Company has received an 30.75 30.75 order from Deputy Commissioner of Sales Tax, Mumbai for the year 2008-09. The Company has filed an appeal with the Joint Commissioner of Sales Tax after payment of Rs.1.5 lacs.

(e) During the year, the Company has received a 111.98 - Demand Notice from the Maharashtra State VAT Authority for the Assessment Year 2005-06. The Company has filed an appeal against the said order.

(f) During the year, the Company has received 730.73 - a Demand Notice from the Central Sales Tax Authorities for the Assessment Year 2005-06. The Company has filed an appeal against the said order.

In respect of (e) & (f) above, the total demand of Rs. 842 lacs is on account of non-production of "C" Forms which were lost and certain errors in assessment.

(g) During the year, the Company has received Demand 35.39 - Notice from the Income Tax Authorities disallowing certain expenses and Selling Commission expense for the Assessment Year 2011-12. The Company has preferred an appeal against the said order.

(h) Other claims not acknowledged as debts 0.80 0.80

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

2.1 The Company holds investment in equity shares of Mcnally Bharat Engineering Company Limited (Book Value Rs.1,993.45 lacs) as strategic investment on a long term basis. The Company is of the view that the diminution in value of Rs.1,409.95 lacs (Previous Year Rs.1,409.11 lacs) in these investments is temporary. Notwithstanding this, out of abundant caution, a provision of Rs.400 lacs (Previous Year Rs.200 lacs) including Rs.200 lacs (Previous Year Rs.200 lacs) during the year is made in the books.

Note 3 Disclosures under Accounting Standards

Note 3.1

In accordance with requirements of Accounting Standard 7 notified by the Companies Accounting Standard Rules, 2006, the Company has recognized unbilled revenue during the year in respect of high value, long delivery orders which are delivered in parts over the execution period. The Unbilled revenue is calculated based on percentage of completion of individual contracts.

Note 3.2

Employee benefit plans

Defined contribution plans

The Company makes Provident Fund 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. 70.49 lacs (Year ended 31st March, 2013 Rs.8.37 Lacs) for Provident Fund contributions and Rs.34.51 lacs (Year ended 31st March, 2013 Rs.34.88 lacs) for Superannuation Fund contributions 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.

The following table sets out the funded status of the Gratuity benefit and the amount recognized in the financial statements:

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.

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

100% of Plan Assets are invested in Group Gratuity Scheme offered by LIC of India, an insurance Company.

3.3 Based on the guiding principles given in the Accounting Standard on ''Segment Reporting'' (AS-17) issued by the Institute of Chartered Accountants of India, the primary segment of the Company is business segment which comprises of Engineering Segment. As the Company operates in a single primary business segment, no segment information thereof is given.

Segment information for secondary segment reporting (by geographical segments).

The Company has a customer base within and outside India.

The Company has recognised deferred tax asset on unabsorbed depreciation to the extent of the corresponding deferred tax liability on the difference between the book balance and the written down value of fixed assets under Income Tax.

Consequent to closure of Baroda Factory in year 2003, provision was made for additional retrenchment compensation in respect of 97employees amounting to Rs.45.80 lacs. Out of 97 employees, 50 had preferred an appeal before the labour court in Baroda. A settlement was arrived with the above workers before the labour court during the year and an amount of Rs.18.50 lacs was paid.

3.4 Operating Leases :

Lease payments recognized in the Statement of Profit and Loss : Rs 28.10 lacs (Previous Year Rs.33.31 lacs)

Note 4

The total amount incurred on Research and Development activities during the year amount to Rs.65.99 lacs (Previous Year Rs.72,79 lacs).

Note 5

There has been a undue delay in getting allotment of the land in Asansol. In the interim period the Company has developed several reliable subcontractors in Eastern India to handle the Company''s manufacturing and site works. In view of this the Company is not at present pursuing the allotment of land by Asansol Durgapur Development Authority.

Note 6

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, 2013

1 Corporate Information

Kilburn Engineering Limited is in the business of process design, engineering, manufacturing, project management, installation and commissioning of equipment and systems for various process plants across the world.

As at As at 31st March, 31st March, 2013 2012

2.1 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Letters of Credit outstanding as at the year end 377.55 380.07 FDR of Rs. 356.88 lacs (previous year Rs. 448.12 lacs) pledged with banks against the LCs and Bank Guarantees.

(b) Demand Notice from DGFT for non-fulflling of export obligations. The Company 137.00 137.00 expects no liability on this account

(c) The Company is a party to litigation by - - certain ex- employees in respect of claim for Superannuation fund dues/ retrenchment compensation arising around the year 2000-01. The Company has provided for the probable obligation. This is expected to materialize on resolution of the dispute.

(d) During the year, the Company has received an order from Deputy Commissioner 30.75 - of Sales Tax, Mumbai for the year 2008-09 raising demand for Rs. 30.75 lacs. The Company is in the process of fling appeal against the said order.

(e) The Company had received demand notice u/s - 148.65 143(3) for the Assessment year 2009-10 from Income Tax Authorities. The Company has filed appeal before CIT (A) after depositing Rs. 30 lacs under protest and expects the outcome of the appeal to be in its favour. CIT appeals order was received subsequently

(f) Other claims not acknowledged as debts 0.80 0.80

2.2 The Company holds investment in equity shares of Mcnally Bharat Engineering Company Limited (Book Value Rs. 1,993.45 lacs) as strategic investment on a long term basis. The Company is of the view that the diminution in value of Rs. 1,409.11 lacs (Previous Year Rs. 1,248.91 lacs) in these investments is temporary. Notwithstanding this, out of abundant caution, a provision of Rs. 200 lacs is made in the books during the year.

2.3 Exceptional Item:

Exceptional Items represent relocation related expenses, including rent, incurred by the Company in view of its shifting of manufacturing operations to Saravali which has been completed in the previous year.

Note 3 Disclosures under Accounting Standards

Note 3.1

In accordance with requirements of Accounting Standard 7 notifed by the Companies Accounting Standard Rules, 2006, the Company has recognized unbilled revenue during the year in respect of high value, long delivery orders which are delivered in parts over the execution period. The Unbilled revenue is calculated based on percentage of completion of individual contracts.

Note 3.2

Employee beneft plans

Defned contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defned contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specifed percentage of the payroll costs to fund the benefts. The Company recognised Rs. 68.37 lacs (Year ended 31st March, 2012 Rs. 62.88 Lacs) for Provident Fund contributions and Rs. 34.88 lacs (Year ended 31st March, 2012 Rs. 36.54 lacs) for Superannuation Fund contributions in the Statement of Proft and Loss. The contributions payable to these plans by the Company are at rates specifed in the rules of the schemes.

3.3 Based on the guiding principles given in the Accounting Standard on ''Segment Reporting'' (AS-17) issued by the Institute of Chartered Accountants of India, the primary segment of the Company is business segment which comprises of Engineering Segment. As the Company operates in a single primary business segment, no segment information thereof is given.

3.4 Operating Leases :

Lease payments recognized in the Statement of Proft and Loss : Rs. 33.31 lacs (Previous Year Rs. 68.74 lacs)

Note 4

The total amount incurred on Research and Development activities during the year amount to Rs. 72.79 lacs (Previous Year Rs. 46.60 lacs).

Note 5

Pursuant to an application dated 18th February 2008, the Company had received an allotment letter dated 21st May 2008 for 20 acres of land from Asansol Durgapur Development Authority (ADDA). The Company was informed that ADDA is in the process of acquiring the land.

Note 6

Previous year''s fgures have been regrouped / reclassifed wherever necessary to correspond with the current year''s classifcation / disclosure.

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Mar 31, 2012

1. Corporate Information

Kilburn Engineering Limited is in the business of process design, engineering, manufacturing, project management and installation of equipment and systems for various process plants across the world.

Note 2 Reserves and Surplus

Details of terms of repayment and security provided :

Secured during the year by pledge of 850,000 shares of Mcnally Bharat Engineering Company Limited and further secured by cross default arrangement on securities offered by Group Companies; in the previous year, the loan was unsecured.

Terms of Repayment: Payable in eight equal installments of Rs. 125 Lacs on quarterly basis, commencing from June, 2012 to March, 2014.

Rate of Interest : 475 basis points below the Long Term Borrowing Monthly Rate (LTBMR)of IL&FS . During the year, the rate varied from 14% p.a. to 15.25% p.a. (Previous year 14% p.a.)

Note 3 Short-term borrowings

Notes:

Details of security:

1. Equitable Mortgage created by way of Deposit of Title Deed on the Company's immovable property situated at Plot No.6, MIDC Industrial Area, Kalyan Bhiwandi Road, Saravali, Thane 421 311.

2. Hypothecation of present and future stocks of raw materials, semi-fi nished goods, finished goods and book debts by way of first charge and also by hypothecation of movable plant and machinery by way of first charge.

Note 4 Other non-Current Assets

Notes:

Balances with banks held as margin money include Rs. 20.25 lacs (previous year Rs. 154.87 lacs) having original maturity of more than 12 months and Rs. 20.25 lacs (previous year Rs. 154.87 lacs) having residual maturity of more than 12 months.

Note 5 Additional information to the financial statements

(Rs. In Lacs)

Note Particulars As at As at 31st March, 31st March, 2012 2011

5.1 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Guarantees and Letters of Credit issued by Banks against which 2,121.94 2,986.05 FDR of Rs. 448.12 lacs (previous year Rs. 428.71 lacs) pledged with banks

(b) Demand Notice from DGFT for non- 137.00 137.00 fulfilling of export obligations. The Company expects no liability on this account

(c) The Company is a party to litigation by certain ex-employees in respect of claim for Superannuation fund dues/ retrenchment compensation arising around the year 2000- 01. The Company has provided for the probable obligation. This is expected to materialize on resolution of the dispute.

(d) Other claims not acknowledged as debts 0.80 0.80

(e) During the year the Company has received 148.65 - demand notice u/s 143(3) for the Assessment year 2009-10 from Income Tax Authorities.The Company has filed appeal before CIT (A) after depositing Rs. 30 lacs under protest and expects the outcome of the appeal to be in its favour. (ii) Commitments Estimated amount of contracts remaining to be executed on capital - 951.17 account and not provided for Tangible Assets.

5.2 No provision for diminution of Rs. 1248.91 lacs has been made for Investment in equity shares of Mcnally Bharat Engineering Company Limited (Book value Rs. 1,993.45 lacs), as the company is holding this as a strategic Investment on a long term basis and is of the view that the diminution is temporary.

Note 6 Disclosures under Accounting Standards

Note 6.1

Employee benefit plans

Defined contribution plans

The Company makes Provident Fund 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. 62.88 lacs (Year ended 31st March, 2011 Rs. 42.83 Lacs) for Provident Fund contributions and Rs. 36.54 lacs (Year ended 31st March, 2011 Rs. 55.44 lacs) for Superannuation Fund contributions 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.

6.2 Based on the guiding principles given in the Accounting Standard on 'Segment Reporting' (AS-17) issued by the Institute of Chartered Accountants of India, the primary segment of the Company is business segment which comprises of Engineering Segment. As the Company operates in a single primary business segment, no segment information thereof is given.

Segment information for secondary segment reporting (by geographical segments).

6.3 Operating Leases :

(i) Significant Leasing Agreements :

a) The Company had taken a factory shed and appurtenant land on Leave and License basis for the purpose of manufacturing, fabrication, storage of plants and machinery and other allied and permissible commercial activities.

b) The tenure of the agreement was for a period of 3 years commencing from 7th May, 2008

c) The agreement was non-cancellable for a period of 2 years.

(ii) Lease payments recognized in the Statement of Profit and Loss : Rs. 68.74 lacs (Previous Year Rs. 206.06 lacs)

(iii) Total of future minimum lease payments under the non-cancellable period of the lease : Not later than 1 year : Nil (Previous Year Rs. 11 lacs)

Note 7

The total amount incurred on Research and Development activities during the year amount to Rs. 46.60 lacs (Previous Year 39.43 lacs).

Note 8

Pursuant to an application dated 18th February 2008, the company had received an allotment letter dated 21st May 2008 for 20 acres of land from Asansol Durgapur Development Authority (ADDA). The company was informed that ADDA is in the process of acquiring the land.

Note 9

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classifi cation/disclosure.

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Mar 31, 2010

1. Estimated amount of Contracts remaining to be executed on capital account Rs. 1,620 Lac (Previous Year Rs. 1,117 Lac).

2. Contingent liabilities:

a) Guarantees and Letters of Credit issued by Banks Rs. 2,821.29 Lac (Previous Year Rs. 1,885.97 Lac) against which FDR of Rs. 392.77 Lac (Previous Year Rs. 356.38 Lac) pledged with Banks.

b) Demand notice from DGFT for non-fulfilling of export obligations Rs. 137 Lac (Previous Year Rs. 137 Lac). The Company expects no liability on this account.

c) The Company is a party to litigation by certain ex-employees in respect of claim for superannuation fund dues / retrenchment compensation arising around the year 2000-2001. The Company has

in prior years provided for the probable obligation (included under Provision for Contingencies). Based on legal opinions obtained, no additional liability is expected and the matters are subjudice.

d) Other claims not acknowledged as debts Rs. 0.80 Lac (Previous Year Rs. 0.80 Lac)

3. The Company entered in to an MOU in November 2007, for sale of property at Bhandup for an aggregate consideration of Rs. 11,500 Lac. During the year 2008 - 09, the Company executed the conveyance deed and accounted for the balance profit of Rs. 7,391.72 Lac (net of tax of Rs. 830 Lac and after adjustment of Minimum Alternate Tax of Rs. 190 Lac). Rs. 5,650 Lac was received till 31st March 2009 and the balance of Rs. 5,850 Lac was received in the current year.

4. Pursuant to the termination of the agreement entered into with Conwood Pre-fab Ltd. for the purchase of 8 acres of land, the Company has received back the advance of Rs. 800 Lac paid to them. Further, the Company has on November 17, 2009 entered into a Deed of Assignment with Chemetall - Rai India Ltd. for transfer of lease hold rights in the land located at Plot No.6, MIDC Saravali, Bhiwandi - Kalyan Road, Dist. Thane, admeasuring 30,960 sq. mtrs. at a total consideration of Rs. 867 Lac exclusive of stamp duty, registration fees, site development expenses, MIDC charges, etc. The Company has commenced the implementation of a state-of-the-art manufacturing facility at this location which is expected to be completed by the end of 2010 - 2011.

5. The Company had received an allotment letter dated 21st May 2008 for 20 acres of land from Asansol - Durgapur Development Authority. No further development has taken place in this regard as yet.

6. Secured Loans: Banks

The credit facilities are secured by:

I. Hypothecation of present and future stocks of raw materials, semi finished goods, finished goods and book debts by way of first charge and also by hypothecation of movable plant and machinery by way of first charge.

II. English mortgage of all the Companys immovable properties both present and future on pari- passu second charge basis. The immovable property of the Company situated at Bhandup which was mortgaged to the Banks has been disposed off. The Company is in the process of securing the facilities by way of equilable mortgage of the Companys immovable property acquired at Plot No.6, MIDC Saravali, Bhiwandi - Kalyan Road, Dist. Thane.

7. Unsecured Loans:

The amount of Rs. 30.85 Lac (Previous Year Rs. 30.85 Lac) represents liability on account of Purchase of machinery from NBFCs on lease / Hire Purchase basis. The amount is payable over a period of six years in accordance with the BIFR Scheme, without interest.

Note :

The remuneration for the FY 2009-10 has been paid as per the revised Basic Salary of Rs. 3,50,000/- p.m which was approved by the Board of Directors of the Company at their meeting held on January 8, 2010 and which is within the Basic Salary Grade of Rs. 2,50,000 to Rs. 4,50,000 p.m. as approved by the Central Government vide letter no. SRN/A 40311862-CL.VII dated December 12, 2008 and amendment dated May 6, 2009.

8. In accordance with the Accounting Standard on Accounting for Taxes on Income, Deferred Tax Asset / Liability has been recognized in the Accounts as of the year end as under:

9. Research & Development:

The total amount incurred on Research & Development activities during the year amount to Rs. 36.45 Lac (Previous Year Rs. 29.40 Lac).

10. Employee Benefits:

a) Defined Contribution Plan:

The Company has recognised, in the profit and loss account for the year ended 31st March, 2010, following amounts as expenses under defined contribution plan under the head Contribution to Provident and Other Funds in Schedule 15 - Operating Expenses.

b) Defined Benefit Plans:

As per Actuarial valuations as on 31st March, 2010 and in accordance with the revised Accounting Standard 15 on Employee Benefits issued by The Institute of Chartered Accountants of India; Particulars of Gratuity benefit are provided below.

Since the balance in the fund is higher than the Defined benefit obligation as at 31st March 2010, no provision has been made in the books.

Notes

1 Discount rate / return on plan assets taken at 8% p.a considering the benchmark rate available on Government Securities for the tenure of payment.

2 The estimate of future salary increases considered at 5% p.a taking into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

3 100% of Plan Assets are invested in group gratuity scheme offered by LIC of India.

11. The amount of Net Exchange Loss / (Gain) of (Rs. 37.51 Lac) (Previous Year Rs. 172.66 Lac) is included in Sales.

12. Segment information for primary segment reporting (by business segments):

Based on the guiding principles given in the Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India, the primary segment of the Company is business segment which comprises of Engineering Segment. As the Company operates in a single primary business segment, no segment information thereof is given.

13. Micro Enterprises and Small Enterprises:

The information as required to be disclosed under the Act and provided in Schedule 11 has been determined to the extent such parties have been identified on the basis of information available with the Company. No interest has been paid or accrued in the books. Considering the volume and payment cycle such amount is not considered to be significant.

14. Disclosures under AS-19 in respect of operating leases:

i) Significant Leasing Agreements :

a) The Company has taken a factory shed and appurtanent land on Leave and Licence basis for the purpose of manufacturing, fabrication, storage of plants and machinery and other allied and permissible commercial activities.

b) The tenure of the agreement is for a period of 3 years commencing from 7th May 200,8.

c) The agreement is non cancellable for a period of 2 years.

ii) Lease payments recognised in the Profit and Loss Account : Rs. 179.55 Lac (Previous year 171.48 Lac)

iii) Total of future minimum lease payments under the non-cancellable period of the lease :

a) Not later than 1 year : Rs. 132.00 Lac (Previous year Rs. 132.00 Lac)

b) Later than 1 year and not later than 5 years: Rs. 11.00 Lac (Previous year NIL)

15. Pursuant to the Buyback offer made by the Company during the previous year, 2,40,032 equity shares were bought back for an aggregate amount of Rs. 63.54 Lac by utilizing Share premium account to the extent of Rs. 39.53 Lac. Capital Redemption Reserve of Rs. 24.01 Lac has been created being the nominal value of shares bought back. All the Bought back shares have been extinguished and the Buyback has closed on January 29, 2010.

16. Comparative financial information is presented in accordance with the Corresponding Figure financial reporting framework set out in Auditing and Assurance Standard on Comparatives. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements, and are to be read in relation to the amounts and other disclosures relating to the current year. Figures of the previous year have been regrouped / reclassified wherever necessary to correspond with the figures of the current financial year. Figures have been rounded off to the nearest Rs. In Lac as per approval from Department of Company Affairs obtained u/s 211 of the Companies Act, 1956.