Notes to Accounts of Maestros Electronics & Telecommunications Systems Ltd.

Mar 31, 2025

1.13. Provisions, contingent liabilities and contingent assets
Provision

Provisions are recognized when the Company has a present legal or constructive obligation as a result
of past events; it is probable that an outflow of resources will be required to settle the obligation; and
the amount has been reliably estimated.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is recognized as a finance cost

Contingent liabilities

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. A present obligation that
arises from past events where it is either not probable that an outflow of resources will be required
to settle or reliable estimate of the amount cannot be made, is termed as contingent liability.

Contingent Assets

Contingent assets are disclosed where an inflow of economic benefit is probable.

1.14. Earning per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable

to equity shareholders (after deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding during
the period are adjusted for the effects of all dilutive potential equity shares.

1.15. Cash Flow statement

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

1.16. Foreign Currency Transactions
Functional Currency

Financial statements of the Company''s are presented in Indian Rupees (''), which is also the functional
currency.

Transactions and Translations

Foreign currency denominated monetary assets and liabilities are translated into the relevant
functional currency at exchange rates in effect at the balance sheet date. The gains or losses resulting
from such translations are included in net profit in the Statement of Profit and Loss. Non-monetary
assets and non-monetary liabilities denominated in a foreign currency and measured at fair value
are translated at the exchange rate prevalent at the date when the fair value was determined.
Non- monetary assets and non-monetary liabilities denominated in a foreign currency and measured
at historical cost are translated at the exchange rate prevalent at the date of the transaction.
Transaction gains or losses realized upon settlement of foreign currency transactions are included in
determining net profit for the period in which the transaction is settled.

The carrying amount of financial assets and financial liabilities measured at amortised cost in the
financial statements are a reasonable approximation of their fair values since the Company does
not anticipate that the carrying amounts would be significantly different from the values that would
eventually be received or settled.

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

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

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

iii. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes or similar instruments

- the fair value of interest rate swaps is calculated as the present value of the estimated future cash
flows based on observable yield curves

- the fair value of forward foreign exchange contracts and principal swap is determined using forward
exchange rates at the balance sheet date

- the fair value of foreign currency option contracts is determined using discounted cash flow analysis

- the fair value of the remaining financial instruments is determined using discounted cash flow
analysis

iv. Valuation processes

The accounts and finance department of the company includes a team that performs the valuations
of financial assets and liabilities required for financial reporting purposes, including level 3 fair values.
This team reports directly to the chief financial officer (CFO) and the audit committee. Discussions of
valuation processes and results are held between the CFO, AC and the valuation team regularly in line
with the company''s reporting requirements.

35. Financial Risk Management

35.1 Risk Management Framework

The Company''s financial risk management is an integral part of how to plan and execute its business
strategies. The Company''s financial risk management policy is set by the managing board.

35.2 Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from
a change in the price of a financial instrument. The value of a financial instrument may change as a
result of changes in the interest rates, foreign currency exchange rates and other market changes
that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive
financial instruments including loans and borrowings, foreign currency receivables and payables.

The Company manages market risk through treasury department, which evaluates and exercises
independent control over the entire process of market risk management. The treasury department
recommends risk management objectives and policies, which are approved by Senior Management
and the Audit Committee. The activities of this department include management of cash resources,
implementing hedging strategies for foreign currency exposures and borrowing strategies.

35.3 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 is not exposed to significant
interest rate risk as at the respective reporting dates.

35.4 Foreign Currency Risk

The Company''s exposure to exchange fluctuation risk is very limited for its purchase from overseas
suppliers in various foreign currencies. Foreign Currency Risk is risk that fair value or future cash flows
of an exposure will fluctuate due to changes in foreign exchanges rates. The Company entered into
forward exchanges contract average maturity of 90-180 days to hedge against its foreign currency
exposures relating to underlying liabilities firm commitments. The Company has not entered into
any Derivatives instruments for trading and speculative purposes.

35.5 Credit Risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial
loss. The maximum exposure to the credit risk at the reporting date is primarily from trade
receivables amounting to '' 351.47 lakhs and '' 1571.68 lakhs as of March 31, 2025 and March 31,
2024 respectively. Trade receivables are typically unsecured and are derived from revenue earned
from customers. Credit risk has always been managed by the Company through credit approvals,
establishing credit limits and continuously monitoring the credit worthiness of customers to which
the Company grants credit terms in the normal course of business. On account of adoption of
Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.
The Company uses a provision matrix to compute the expected credit loss allowance for trade
receivables. The provision matrix takes into account available external and internal credit risk factors
and the Company''s historical experience for customers.

35.6 Liquidity Risk

The Company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is
generated from operations. The Company believes that the working capital is sufficient to meet its
current requirements. Accordingly, no liquidity risk is perceived.

As of 31st March 2025, The Company had a working capital of Rs. 2716.45 Lakhs including cash and
cash equivalent of Rs. 1.50 Lakhs.

As of 31st March 2024, The Company had a working capital of Rs. 1974.66 Lakhs including cash and
cash equivalent of Rs. 1.64 Lakhs.

35.8 Capital Management

The Company manages its capital to ensure that Company will be able to continue as going concern
while maximizing the return to shareholders by striking a balance between debt and equity. The
capital structure of the Company consists of net debts (offset by cash and bank balances) and equity
of the Company (Comprising issued capital, reserves, retained earnings). The Company is not subject
to any externally imposed capital requirements except financial covenants agreed with lenders.

In order to optimize capital allocation, the review of capital employed is done considering the
amount of capital required to fund capacity expansion, increased working capital commensurate
with increase in size of business and also fund investments in new ventures which will drive future
growth. The Chief Financial Officer ("CFO") reviews the capital structure of the Company on a regular
basis. As part of this review, the CFO considers the cost of capital and the risks associated with each
class of capital.

39. Segment Reporting

Ind AS 108 establishes standards for the way that public business enterprises report information about
operating segments and related disclosures about products and services, geographic areas, and major
customers. The Company''s operations predominantly relate to manufacturing, trading and leasing of
assets. Based on the "management approach" as defined in Ind AS 108, the Chief Operating Decision Maker
(CODM) evaluates the Company''s performance and allocates resources based on an analysis of various
performance indicators by business segments and geographic segments. Accordingly, information has
been presented both along business segments and geographic segments. The accounting principles used in
the preparation of the financial statements are consistently applied to record revenue and expenditure in
individual segments, and are as set out in the significant accounting policies.

40. The company''s litigation comprise of a dispute with a supplier of Rs.41,41,680/- The company has reviewed
it and it does not reasonably expect the outcome of these proceedings to have a material impact on its
financial statements.

41. Previous year''s figures have been Regrouped and Rearranged , wherever necessary..

42. The Company does not have any benami property, where any proceeding have been initiated or pending
against the company for holding any benami property.

43. The title in respect of selfconstructed buildings and title deeds of all other immovable properties (other
than properties where the Company is the lessee and the lease agreements are duly executed in favour of
the lessee), disclosed in the financial statements included under Property, Plant and Equipment are held in
the name of the Company as at the Balance Sheet date.

44. There were borrowings by the company from Banks or Financial Institution against the current assets.
The quarterly statements submitted have been in line with financial statement.

45. The Company is not declared as willful defaulter by any bank or financial institution (as defined under the
Companies Act, 2013) or other lender in accordance with the guidelines on willful defaulters issued by the
Reserve Bank of India.

47. The Company does not have any transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.)

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

49. No funds (which are material either individually or in the aggregate) have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

50. No funds (which are material either individually or in the aggregate) have been received by the Company
from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether
recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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Mar 31, 2024

1.13. Provisions, contingent liabilities and contingent assets Provision

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost

Contingent liabilities

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. A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or reliable estimate of the amount cannot be made, is termed as contingent liability.

Contingent Assets

Contingent assets are disclosed where an inflow of economic benefit is probable.

1.14. Earning per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable

to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.15. Cash Flow statement

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

1.16. Foreign Currency Transactions Functional Currency

Financial statements of the Company''s are presented in Indian Rupees (''), which is also the functional currency.

Transactions and Translations

Foreign currency denominated monetary assets and liabilities are translated into the relevant functional currency at exchange rates in effect at the balance sheet date. The gains or losses resulting from such translations are included in net profit in the Statement of Profit and Loss. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Nonmonetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of the transaction. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.

The management assessed that the fair value of cash and cash equivalent, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

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

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

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

iii. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves

- the fair value of forward foreign exchange contracts and principal swap is determined using forward exchange rates at the balance sheet date

- the fair value of foreign currency option contracts is determined using discounted cash flow analysis

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

iv. Valuation processes

The accounts and finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the chief financial officer (CFO) and the audit committee. Discussions of valuation processes and results are held between the CFO, AC and the valuation team regularly in line with the company''s reporting requirements.

33. Financial Risk Management

33.1 Risk Management Framework

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the managing board.

33.2 Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including loans and borrowings, foreign currency receivables and payables.

The Company manages market risk through treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures and borrowing strategies.

33.3 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 is not exposed to significant interest rate risk as at the respective reporting dates.

33.4 Foreign Currency Risk

The Company''s exposure to exchange fluctuation risk is very limited for its purchase from overseas suppliers in various foreign currencies. Foreign Currency Risk is risk that fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchanges rates. The Company entered into forward exchanges contract average maturity of 90-180 days to hedge against its foreign currency exposures relating to underlying liabilities firm commitments. The Company has not entered into any Derivatives instruments for trading and speculative purposes.

There is no foreign currency exposure during the year (P.Y. NIL).

33.5 Credit Risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 1,571.68 lakhs and Rs1,005.46 lakhs as of March 31, 2024 and March 31, 2023 respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Company''s historical experience for customers.

33.6 Liquidity Risk

The Company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As of 31st March 2024, The Company had a working capital of Rs. 1974.66 Lakhs including cash and cash equivalent of Rs. 1.64 Lakhs.

As of 31st March 2023, The Company had a working capital of Rs. 1834.39 Lakhs including cash and cash equivalent of Rs. 2.23 Lakhs.

33.7 Maturities of Financial Liabilities

The table below analyse the Company''s financial liabilities into relevant maturity grouping based on their contractual maturities. The amount disclosed in the tables are contractual undisclosed cash flow.

33.8 Capital Management

The Company manages its capital to ensure that Company will be able to continue as going concern while maximizing the return to shareholders by striking a balance between debt and equity. The capital structure of the Company consists of net debts (offset by cash and bank balances) and equity of the Company (Comprising issued capital, reserves, retained earnings). The Company is not subject to any externally imposed capital requirements except financial covenants agreed with lenders.

In order to optimize capital allocation, the review of capital employed is done considering the amount of capital required to fund capacity expansion, increased working capital commensurate with increase in size of business and also fund investments in new ventures which will drive future growth. The Chief Financial Officer ("CFO") reviews the capital structure of the Company on a regular basis. As part of this review, the CFO considers the cost of capital and the risks associated with each class of capital.

37. Segment Reporting

Ind AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Company''s operations predominantly relate to manufacturing, trading and leasing of assets. Based on the "management approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments. Accordingly, information has been presented both along business segments and geographic segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.

38. The company''s litigation comprise of a dispute with a supplier of Rs.41.41 lakhs The company has reviewed it and it does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

39. Previous year''s figures have been Regrouped and Rearranged , wherever necessary.

40. The Company does not have any benami property, where any proceeding have been initiated or pending against the company for holding any benami property.

41. The title in respect of selfconstructed buildings and title deeds of all other immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), disclosed in the financial statements included under Property, Plant and Equipment are held in the name of the Company as at the Balance Sheet date.

42. There were borrowings by the company from Banks or Financial Institution against the current assets. The quarterly statements submitted have been in line with financial statement.

43. The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

44. CSR Expenditure

The Company does not fall under the eligiblity Criteria of Section -135 of Companies Act, 2013(CSR)

45. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.)

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

47. No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Benefi ciaries.

48. No funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

49. There were no transaction during a year with struck off Company.

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Mar 31, 2018

1. Company Overview

Maestros Electronics & Telecommunications Systems Limited ("the Company") is a public limited company domiciled in India and incorporated under the provisions of the Companies Act 1956. The registered office of the Company is located at Plot No. EL/66, TTC Industrial Area, Electronic Zone, Mahape Navi Mumbai Thane- 400710 Maharashtra. The Company is listed on the Bombay Stock Exchange (BSE).

The financial statements are approved for issue by the Company''s board of directors on May 29, 2018.

Property, plant and equipment, and Intangible assets

The Company has elected to measure all items of property, plant and equipment and intangible assets at its carrying value at the transition date.

Leasehold land

In terms of Ind AS, the Company has identified, classified and presented transaction of leasehold land as finance lease upon the terms and conditions in existence as on date of transition to Ind AS.

Investments in debt instruments - interest free loans

Loans given is a financial asset, which needs to be measured at amortised cost. As per Previous GAAP interest free loans was measured at transaction amount. In accordance with Ind AS 109 Financial Instruments, the Company has measured the loan given restrospectively at amortised cost on the date of transition. Accordingly, the difference between the transaction amount and its fair value at the date of transaction has been recorded as deferred interest expense with a corresponding impact to the loans.

Deferred tax

Under Previous GAAP, deferred tax were accounted for using the income statement approach which focuses on differences between taxable profit and accounting profit for the period. Ind AS requires entities to account for deferred taxes using the Balance Sheet approach which focuses on temporary differences between the carrying amount of an asset or liability in the Balance Sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred taxes on temporary differences which were not required to be recorded under Previous GAAP. In addition, the various transitional adjustments have led to deferred tax implications which the Company has accounted for. Deferred tax adjustments are recognised in correlation to the underlying transaction either in Retained earnings or Other Comprehensive Income on the date of transition.

Excise duty

Under Previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive excise duty. Excise duty paid is presented on the face of the Statement of Profit and Loss as separate line item as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2017 by Rs. 93,23,566. There is no impact on the total equity and profit.

Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements that is actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in Other Comprehensive Income instead of profit or loss. Under the Previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2017 increased by Rs. 3,72,389 Lakhs. There is no impact on the total equity as at April 1, 2016.

Retained earnings

Retained earnings as at April 1, 2016 have been adjusted consequent to the above Ind AS transition adjustments.

Other Comprehensive Income

Under Ind AS, all items of income and expense recognised in a period are to be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss, but are shown in the Statement of Profit and Loss as Other Comprehensive Income which includes remeasurement of defined benefit plans, effective portion of gain | (loss) on cash flow hedging instruments and fair value gain | (loss) on FVOCI equity instruments. The concept of Other Comprehensive Income did not exist under Previous GAAP.

2. Terms/Rights attached to equity shares

The Company has only one class of equity shares having face 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. During the year ended March 31, 2018, the amount of dividend proposed for distribution to equity shareholders is INR Nil per share (March 31, 2017 - INR Nil per share ). In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts.

Hypothication

Overdraft facility has secured by way of, exclusive hypothecation charge on Fixed Deposit, it carries interest rate of 7.51% p.a. repayable monthly.

Cash Credit Facility has secured by way of, exclusive hypothecation charge on entire book debts & Stock, it carries interest rate of 10.80% p.a. repayable on demand.

3. FINANCIAL RISK

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The company''s financial risk management policy is set by the managing board.

Market risk is the risk of loss of future earnings fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates foreign currency exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including loans and borrowings foreign currency receivables and payables.

3.1 Management of liquidity risk

The company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at a reasonable price. Typically the company ensures that it has sufficient cash on demand to meet expected operational expenses and servicing of financial obligations.

3.2 Management of market risk

The Company''s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

i) Interest rate risk; and

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 is not exposed to significant interest rate risk as at the respective reporting dates.

ii) Foreign exchange risk

The Company is exposed to exchange fluctuation risk for its purchase from overseas suppliers in various foreign currencies. The following table analyzes foreign currency risk from financial instruments as of:

The above risks may affect the Company''s income and expenses, or the value of its financial instruments. The objective of the Company''s Management of market risk is to maintain this risk within acceptable parameters, while optimising returns.

3.3 Management of credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.

Trade receivables

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 2.3 Crore and Rs.3.4 Crore as of March 31 2018 and March 31 2017 respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has always been managed by the company through credit approvals establishing credit limits and continuously monitoring the credit worthiness of customers to which the company grants credit terms in the normal course of business Our historical experience of collecting receivables is supported by low level of past default and hence the credit risk is perceived to be low.

3.4 CAPITAL MANAGEMENT

Risk management

The primary objective of the Company''s Capital Management is to maximise shareholder value. The Company monitors capital using Net Debt-Equity ratio. For the purposes of the Company''s capital management, the Company considers the following components of its Balance Sheet to be managed capital. Total equity as shown in the Balance Sheet includes General reserve, Retained earnings, Share capital, Security premium. Total debt includes current debt plus non-current debt.

3.5 Financial Instruments Valuation

All financial instruments are initially recognized and subsequently re-measured at fair value as described below: The fair value of quoted investment is measured at quoted price or NAV.

The fair value of the remaining financial instruments is determined using discounted cash flow analysis.

All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

The financial instruments are categorized into two levels based on the inputs used to arrive at fair value measurements as:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have a quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing net assets value (NAV).

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

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

There were no transfers between any levels during the year.

ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

i) the use of quoted market prices or dealer quotes for similar instruments

ii) the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on

iii) the fair value of forward foreign exchange contracts are determined using forward exchange rates at the Balance Sheet

iv) the fair value of foreign currency option contracts is determined using the Black Scholes valuation model.

v) the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

All of the resulting fair value estimates are included in level 1 and 2.

iii) Valuation processes

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values.

The carrying amounts of trade receivables, trade payables, other receivables, short-term security deposits, bank deposits with more than 12 months maturity, capital creditors and cash and cash equivalents including bank balances other than cash and cash equivalents are considered to be the same as their fair values due to the current and short-term nature of such balances.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

4.1 Unrecognsied temporary differences

The Company has not recognised deferred tax liability associated with fair value gains on equity share measured at OCI as based on Management projection of future taxable income and existing plan it is not probable that such difference will reverse in the foreseeable future.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the prior year.

Ind AS 108 establishes standards for the way that pu blic business enterprise s report information about operating segments and related disclosures about products an d services, geographic areas, and major customers. The Company''s operations predominantly relate to manufacturing, trading and leasing of assets. Based on the "management approach” as defined in Ind /AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company''s performance and allocates resources based on an analysis of various perfocmance indicators by business segments and geographic segments. Accordingly, information as been presented both along business segments and geographic segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.

5. The company being listed company required to follow section 203 & 134 (1), However, the view of absence of appropriate candidate for filing vacancy of Company Secretary have not appointed. The said Key Managerial Personnel as per section 203 and to the extent 134(1) Signing of financial statement have been considered only by director. However, the management has considered the matter in the process of appointing company Secretary.

6. The company has not appointed internal auditor required as per section 138 of Companies Act, 2013.

7. Previous year''s figures have been Rearranged , Wherever Necessary.

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Mar 31, 2015

1. Balances of Loans and Advances, Secured Loans, Trade Payables & Others are subject to confirmation and reconciliation and consequential adjustments, if any.

2. In the opinion of the Board & to the best of their knowledge & belief the value of realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet & the provisions for all the loans & determined liabilities is adequate and not in excess of the amount.

3. Provision for retirement benefits to employees was provided on accrual basis, which is in conformity with Accounting Standard-15 issued by ICAI and the amount has not been quantified because actuarial valuation report is not available. However, in the opinion of the management the amount involved is negligible and has no material impact on the Statement of Profit & Loss.

4. According to a technical assessment carried out by the Company, there is no impairment in the carrying cost of cash generating units of the Company in terms of accounting standards-28 issued by the Institute of Chartered Accountants of India.

5. The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been made.

6. According to a technical assessment carried out by the Company, there is no impairment in the carrying cost of cash generating units of the Company in terms of accounting standards-28 issued by the Institute of Chartered Accountants of India.

7. Related Party Transaction :

Related Parties and Nature of Relationship:

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Mar 31, 2014

Previous year''s figures have been regrouped / rearranged wherever necessa ry to conform to current year ''s classification.

Rights and preferences attached to (e) Equity Shares

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

In the event of liquidation of the Company the holders of Equity shares are 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.

ii Amounts due to small scale industrial undertaking

Amounts due to small scale industrial undertaking if any could not be disclosed as such parties could not be identified from the records of the company

iii The information as required by Accounting Standard 18 relating to ''Related Party

Disclosures'' is given below:

a List of related parties:

(As identified by the management)

Individuals Controlling the Company

Dr. K. K. Menon Mr. B.T. Tendulkar

Key Management Personnel

Mr. B.T. Tendulkar

Entity in which controlling shareholder has significant influence

Maestros Mediline Systems Ltd. Maestros Equipment Services Pvt. Ltd.

iv Leases

Leasehold Land includes land taken on lease from Maharashtra Industrial Development Corporation for a period of 95 years.

v

Balances in certain accounts of Trade receivables, Advances given, Trade Payables and advance received against products are subject to reconciliation / confirmation. In the opinion of the management, the difference as may be noticed on such reconciliation will not be material.

vi Segment Information for the period ended

The Company''s financial reporting is organized into two major operating divisions'' viz Electronics & Instrumentation and Information Technology activities. These divisions are the basis on which the Company reports its primary segment. The composition of these segments is given below.

Segment Capital Employed :

Fixed assets used in Company''s business or liabilities have not been identified to any reportable segment, as the fixed assets are used interchangeably between segments. It is currently not possible to furnish segmental disclosure relating to total assets and liabilities.

vii Prior Year Comparatives

Figures for the previous year have been regrouped and rearranged wherever necessary.