Notes to Accounts of Manugraph India Ltd.

Mar 31, 2024

1.18 Provisions and Contingent Liabilities

Provisions are recognised 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 can be reliably estimated. These are reviewed at each year end and reflect the best current estimate. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provision for product-related warranty costs is based on the claims received up to the year end as well as the management estimates of further liability to be incurred in this regard during the warranty period, computed based on past trend of such claims.

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

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 nonoccurrence 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.

1.19 Employee benefits

1.19.1 Short term employee benefits

All Employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and they are recognized in the period in which employee renders the related service except leave encashment.

1.19.2 Other long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the defined benefit obligation at the Balance Sheet date, determined based on actuarial valuation using Projected Unit Credit Method. The discount rates used for determining the present value of the obligation under the defined benefit plan are based on the market yields on Government Securities as at the Balance Sheet date.

1.19.3 Defined contribution plans.

Defined contribution funds are government-administered provident fund scheme, employee state insurance scheme for all employees. The Company also contributes towards a Superannuation fund administered by the Employees Welfare trust. This scheme is funded by an insurance Company in the form of a qualifying insurance policy and other permissible securities. The Company''s contribution to defined contribution plans are recognized in the Statement of Profit and Loss in the financial year to which they relate.

1.19.4 Defined benefit gratuity plan.

The Company''s gratuity benefit scheme is a defined benefit retirement plan covering eligible employees. The Company''s net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value and the fair value of any plan assets is deducted.

The present value of the obligation under such a defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under the defined benefit plan are based on the market yields on Government Securities as at the Balance Sheet date.

Actuarial gains and losses are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur. Past service cost is recognised in the statement of profit and loss in the period of plan amendment.

1.20 Earnings per share (EPS)

Basic EPS 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. Diluted earnings per share are computed by dividing net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares unless the results would be anti-dilutive. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e., the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

1.21 Exceptional items

Certain occasions, the size, type, or incidence of an item of income or expense, pertaining to the ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the Company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements.

1.22 Fair value measurement

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.

1.23 Research and development expenditure

Research and Development expenditure is charged to revenue under the natural heads of account in the year in which it is incurred. Research and Development expenditure on property, plant and equipment is treated in the same way as expenditure on other property, plant, and equipment.

1.24 Events after the reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the Financial Statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

1.25 Non-current assets held for sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use of the assets and actions required to complete such sale indicate that it is unlikely that significant changes to the plan to sell will be made or that the decision to sell will be withdrawn. Also, such assets are classified as held for sale only if the management expects to complete the sale within one year from the date of classification. Noncurrent assets classified as held for sale are measured at the lower of their carrying amount and the fair value less cost to sell. Non-current assets are not depreciated or amortized.

1.26 Key accounting estimates and judgements

Preparation of the Financial Statements requires the use of accounting estimates, judgements, and assumptions, which, by definition, will seldom equal the actual results. Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in Financial Statements in the period in which changes are made and if material, their effects are disclosed in the notes to the Financial Statements. This note provides an overview of the areas that involved a higher degree of judgments or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation for each affected line item in the Financial Statements.

The areas involving key accounting estimates or judgments are:

• Estimation of useful life of tangible and intangible assets.

• Estimation of defined benefit obligations.

• Fair value measurement.

• Impairment

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

End of Significant Accounting Policies

Nature and purpose of other equity

a) Capital reserve

The capital reserve represents excess/short of net assets acquired in a business combination. It is not available for distribution to shareholders as a dividend. Rs. 20 lakhs taken over from Manuweb International Limited (Manuweb) during the year ended March 31, 1995. Rs. 50 lakhs is the Capital Subsidy received from the State Government and Rs. 2 lakhs on the amalgamation of Constrad Agencies (Bombay) Private Limited with the Company.

b) Capital reserve - on amalgamation.

Capital reserve represents the excess of net assets acquired in past amalgamation. It is not available for distribution to shareholders as a dividend. Taken over from erstwhile Manuweb on amalgamation: Pursuant to the Scheme of Amalgamation of Manuweb with the Company, sanctioned by the Bombay Hon''ble High Court vide order dated 30th March, 1995, the assets and liabilities of Manuweb were transferred to and vested in the Company with effect from 1st April, 1994. Accordingly, effect has been given to the scheme in the accounts.

c) Capital redemption reserve.

In accordance with Section 69 of the Companies Act, 2013, the Company has created the capital redemption reserve equal to the nominal value of the shares bought back as an appropriation from general reserve. Created by transfer from General Reserve during the year ended March 31, 2002, pursuant to the buyback of equity shares.

d) Securities premium

The securities premium account is used to record the premium on the issue of shares. The reserve will be utilised in accordance with the provision of the Companies Act, 2013 for issue of bonus shares, for writing of preliminary expenses, buy back of shares etc.

The issue expenses of securities which qualify as equity instruments and are written off against securities premium.

e) General reserve

The General reserve has been created in accordance with the requirements of the Companies (Transfer of Profit to Reserve) Rules, 1975. General reserve represents the amount appropriated out of retained earnings pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

f) Retained earnings

Retained earnings are the profits that the Company has earned till date, less, any transfers to general reserve, any transfers from or to other comprehensive income (loss), dividends or other distributions paid to shareholders.

Gratuity

The company provides gratuity to all employees. The benefit is in the form of lumpsum payments to vested employees on resignation, retirement, death while in employment or on termination of employment of an amount equivalent to 15 days basic salary and dearness allowance for each completed year of service. Vesting occurs upon completion of five years of service. The company makes annual contributions to fund administered by trustees and managed by Life Insurance Corporation of India, for amounts notified by it. The gratuity benefit is a defined benefit plan.

Compensated absences

The Compensated absences cover the liability for earned leave. Out of the total amount disclosed above, the amount of Rs. 64.37 lakhs (March 31, 2023: Rs. 70.65 lakhs) is presented as current since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

(i) Actuarial risk

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse salary growth experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption then the gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

(ii) Investment risk

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

(iii) Liquidity risk

Employees with high salaries and long durations or those higher in hierarchy accumulate significant level of benefits. If some of such employees resign/retire from the Company, there can be strain on the cashflows.

(iv) Market risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to a decrease in defined benefit obligation of the plan benefits and vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

(v) Legislative risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the defined benefit obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

b Disclosure on CSR activities

The Company is not required to spend money on CSR activities during the current financial year and the previous year. Amount spent by the company during the year is Rs. Nil (Previous year Rs. Nil)

28 Exceptional items

28.1 Gain on disposal of property

During the year ended 31st March 2023, the Company has disposed of office premises located at Mumbai resulting in gain on disposal of Rs. 698.52 lakhs.

28.2 Gain on disposal of subsidiary

The Company received full and final amount on 29th November 2022 from the Court appointed Attorney against closure of Chapter XI filing of the Company''s Wholly Owned Subsidiary viz. Manugraph Americas Inc., USA. The gain on disposal of investment in subsidiary is Rs. 1.43 lakhs.

29 Current and deferred tax

The major components of income tax expenses for the year ended March 31, 2024, and March 31, 2023 are:

a. No aggregate amounts of current and deferred tax have arisen in the reporting periods which have been recognised in equity.

The earning per share before exceptional item has been computed after considering the current and deferred tax effect on the exceptional item.

31 Disclosure as required by Ind AS 116 "Leases”.

a. As a Lessee

The Company has taken the residential and office premises under operating lease, having the lease term of less than 12 months and has no obligation for renewal. These leases are considered by the Company as short leases in accordance with Ind AS 116 “Leases”, consequently these lease payments are recognised in the statement of profit and loss under “Rent” in note 27.

b. As a Lessor Operating Lease

The Company has entered into operating leases of its office premises. Rents received are recognised in the statement of profit and loss as rent income in note 21 ''Other income”.

32 Disclosure as required by Ind AS 108 "Segment Reporting.”

Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company''s performance. In accordance with Ind AS “Operating Segment”, The Company has only one reportable operating segment i.e. Engineering.

There are two s major customers to whom more than 10% of the sales are affected and the total sales affected from such customers is Rs.1,961.53 lakhs, (previous year Rs. 1,991.00 lakhs).

33 Disclosure in accordance with Ind AS 24 "Related Party Disclosures”

A List of related parties

This section explains the judgement and estimate made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the Financial Statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments in to three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

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.

b 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 observable yield curves.

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

(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.

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

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.

37 Financial risk factors

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimize potential adverse effects of market risk or its financial performance. The Company''s risk management assessment, policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company’s risk assessment and management policies and processes.

The Company has exposure to the following risks arising from financial instruments:

(i) Credit risk

(ii) Liquidity risk

(iii) Market risk

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. This exposure is principally from the Company’s receivables from customers. Credit

risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has established norms for stage-wise payments to lower the exposure. International transactions are backed by letters of credit, confirmed by reputable banks, wherever found necessary. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

The Company takes a significant advance for its machine and has no history of any significant defaults from the customers end in payment of the sale consideration. And therefore, has no history of expected credit loss.

Trade receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Cash and cash equivalents

The Company held cash and cash equivalents and other bank balances with creditworthy banks and financial institutions of Rs. 43.63 lakhs (31 March 2023 Rs. 158.49 lakhs). The creditworthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good. In both the years these figures are net of unpaid dividend.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.

As of 31st March 2024, the Company has a working capital of Rs. 317.64 lakhs (31 March 2023: Rs. 2177.27 lakhs) which is calculated as current assets less current liabilities.

Investment Risk

The Company''s investment in its wholly owned US subsidiary viz. Manugraph Americas Inc. had been considerably impaired due to the business risk faced by the subsidiary resulting in the erosion of its value. During FY 2022-23, i.e. on 29th November, 2022, Manugraph Americas Inc had been liquidated. Presently, the Company do not have any subsidiary, associates or joint venture.

Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short-term and non-current.

The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

Currency Risk

The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss account, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity.

Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in the USD and EURO against the respective functional currency of the Company.

The Company does not use any derivative financial instruments to hedge foreign exchange and interest rate exposure. The company continuously monitors the foreign currency exposures and considering the natural hedge, selectively contracts for plain forward covers whenever found necessary.

38 Financial risk management

a) Management of liquidity risk

The Company''s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.

39 Capital management Risk management

The primary objective of the Company''s Capital Management is to maximise shareholder value. The Company monitors capital using debt-equity ratio, which is total debt divided by total capital plus total debt.

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 and subtracting cash and cash equivalents.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions. 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 total capital divided by net debt.

40 The financial statements were authorised for issue by the Board on May 21, 2024

41 EVENTS AFTER THE REPORTING PERIOD

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of financial statement to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of May 21, 2024, there were no material subsequent events to be recognised or reported that are not already disclosed.

42 Previous period figures have been re-grouped / re-arranged / reclassified wherever necessary to make them comparable with those of the current period. The standalone financial statements were drawn up in Rupees, amounts are rounded off to the nearest Lakhs. Adding the individual figures may therefore not always tally with the total figure.

43 ADDITIONAL REGULATORY INFORMATION

(i) Title deeds of all the immovable properties are in the name of the Company. (Refer sub-note 2.3)

(ii) The Company follows cost model for the subsequent measurement of Property, Plant and Equipment and consequently has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets during the current financial year or the previous financial year.

(iii) The Company has not made any Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

a. repayable on demand or

b. without specifying any terms or period of repayment

(iv) There is no Capital Work in Progress (''CWIP'') or Intangible Assets Under Development (''ITAUD''), hence no ageing schedule and other relevant details concerning completion or overdue.

(v) No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(vi) The Company has borrowed from banks or financial institutions on the basis of security of current assets, quarterly returns of inventory and trade receivables filed by the Company with banks are in agreement with books.

(vii) The Company has not been declared a willful defaulter.

(viii) The Company has no relationship with any struck-off Company\companies.

(ix) All the charges or the satisfaction of the charges have been registered with the registrar of companies within the stipulated time limit.

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

(xi) The Company has no subsidiary during the current financial year.

(xii) The Company has not made any application for Scheme of Arrangements.

(xiii) Utilisation of borrowed funds and share premium:

A. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity (ies), including foreign entities (Intermediaries).

B. The Company has not received any funds from any person(s) or entity (ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise).

(xiv) The Company has not entered into any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(xv) The Company is not covered under Section 135 of the Companies Act 2013.

(xvi) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

As per our report of even date attached.

For Desai Shah and Associates For and on behalf of the Board of

Directors Chartered Accountants Manugraph India Limited

ICAI Firm Registration No. 118174W CIN: L29290MH1972PLC015772

Anand Yagnesh Desai Sanjay S. Shah Pradeep S. Shah

Partner Chairman and Vice Chairman and

M. No. 145560 Managing Director Managing Director

^UDIN: (DIN: 00248592) (DIN: 00248692)

23145560BGTUFZ4444

Mumbai, Date: May 21, 2024

Mihir V. Mehta

Company Secretary and Chief Financial Officer Mumbai, Date: May 21, 2024

---

Mar 31, 2023

1.18 Provisions and contingent liabilities

Provisions are recognised 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 can be reliably estimated. These are reviewed at each year end and reflect the best current estimate. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provision for product-related warranty costs is based on the claims received up to the year end as well as the management estimates of further liability to be incurred in this regard during the warranty period, computed based on past trend of such claims.

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

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.

1.19 Employee benefits

1.19.1 Short term employee benefits

All Employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and they are recognized in the period in which employee renders the related service except leave encashment.

1.19.2 Other long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as a liability at the present value of the defined benefit obligation at the Balance Sheet date, determined based on actuarial valuation using Projected Unit Credit Method. The discount rates used for determining the present value of the obligation under the defined benefit plan are based on the market yields on Government Securities as at the Balance Sheet date.

1.19.3 Defined contribution plans.

Defined contribution funds are government administered provident fund scheme, employee state insurance scheme for all employees. The Company also contributes towards a Superannuation fund administered by the Employees Welfare trust. This scheme is funded by an insurance Company in the form of a qualifying insurance policy and other permissible securities. The Company’s contribution to defined contribution plans are recognized in the Statement of Profit and Loss in the financial year to which they relate.

1.19.4 Defined benefit gratuity plan.

The Company’s gratuity benefit scheme is a defined benefit retirement plan covering eligible employees. The Company’s net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value and the fair value of any plan assets is deducted.

The present value of the obligation under such a defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under the defined benefit plan are based on the market yields on Government Securities as at the Balance Sheet date.

Actuarial gains and losses are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur. Past service cost is recognised in the statement of profit and loss in the period of plan amendment.

1.20 Earnings per share (EPS)

Basic EPS 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. Diluted earnings per share are computed by dividing net profit net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares unless the results would be anti - dilutive. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e., the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

1.21 Exceptional items

Certain occasions, the size, type, or incidence of an item of income or expense, pertaining to the ordinary activities of the Company is such that its disclosure improves the understanding of the performance of the Company, such income or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial statements.

1.22 Fair value measurement

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized.

1.23 Research and development expenditure

Research and Development expenditure is charged to revenue under the natural heads of account in the year in which it is incurred. Research and Development expenditure on property, plant and equipment is treated in the same way as expenditure on other property, plant, and equipment.

1.24 Events after the reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the Financial Statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

1.25 Non-current assets held for sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use of the assets and actions required to complete such sale indicate that it is unlikely that significant changes to the plan to sell will be made or that the decision to sell will be withdrawn. Also, such assets are classified as held for sale only if the management expects to complete the sale within one year from the date of classification. Non-current assets classified as held for sale are measured at the lower of their carrying amount and the fair value less cost to sell. Non- current assets are not depreciated or amortized.

1.26 Key accounting estimates and judgements

Preparation of the Financial Statements requires the use of accounting estimates, judgements, and assumptions, which, by definition, will seldom equal the actual results. Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in Standalone Financial Statements in the period in which changes are made and if material, their effects are disclosed in the notes to the Standalone Financial Statements. This note provides an overview of the areas that involved a higher degree of judgements or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the Financial Statements.

The areas involving key accounting estimates or judgements are:

• Estimation of useful life of tangible and intangible assets.

• Estimation of defined benefit obligations.

• Fair value measurement.

• Impairment

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

End of Significant Accounting Policies

a) Capitalreserve

Capital reserve represents excess/short of net assets acquired in business combination. It is not available for the distribution to shareholders as dividend. Rs. 20 lakhs taken over from Manuweb International Limited (Manuweb) during the year ended March 31, 1995. Rs. 50 lakhs is the Capital Subsidy received from the State Government and Rs. 2 lakhs on amalgamation of Constrad Agencies (Bombay) Private Limited with the Company.

b) Capital reserve - on amalgamation

Capital reserve represents excess of net assets acquired in past amalgamation. It is not available for the distribution to shareholders as dividend. Taken over from erstwhile Manuweb on amalgamation: Pursuant to the Scheme of Amalgamation of Manuweb with the Company, sanctioned by the Bombay Hon''ble High Court vide order dated 30th March, 1995, the assets and liabilities of Manuweb were transferred to and vested in the Company with effect from 1st April, 1994. Accordingly, effect has been given to the scheme in the accounts.

c) Capital redemption reserve.

In accordance with Section 69 of the Companies Act, 2013, the Company has created the capital redemption reserve equal to the nominal value of the shares bought back as an appropriation from general reserve created by transfer from General Reserve during the year ended March 31, 2002, pursuant to the buyback of equity shares.

d) Securitiespremium

The securities premium account is used to record the premium on the issue of shares. The reserve will be utilised in accordance with the provision of the Companies Act, 2013.

e) Generalreserve

General reserve represents the amount appropriated out of retained earnings pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

f) Retainedearnings

Retained earnings are the profits that the Company has earned till date, less, any transfers to general reserve, any transfers from or to other comprehensive income (loss), dividends or other distributions paid to shareholders.

Gratuity

The company provides gratuity to all employees. The benefit is in the form of lumpsum payments to vested employees on resignation, retirement, death while in employment or on termination of employment of an amount equivalent to 15 days basic salary and dearness allowance for each completed year of service. Vesting occurs upon completion of five years of service. The company makes annual contributions to fund administered by trustees and managed by Life Insurance Corporation of India, for amounts notified by it. The gratuity benefit is a defined benefit plan.

Compensated absences

The Compensated absences cover the liability for earned leave. Out of the total amount disclosed above, the amount of Rs. 70.65 lakhs (March 31, 2022: Rs. 55.80 lakhs) is presented as current since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12months.

Risks associated with defined benefit plan

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

(i) Actuarial risk

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons: Adverse salary growth experience: Salary hikes that are higher than the assumed salary escalation will result in an increase in obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption then the gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

lecnnoiogy

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption then the gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

(ii) Investmentrisk

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

(iii) Liquidity risk

Employees with high salaries and long durations or those higher in hierarchy accumulate significant level of benefits. If some of such employees resign/retire from the Company, there can be strain on the cashflows.

(iv) Marketrisk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to a decrease in defined benefit obligation of the plan benefits and vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

(v) Legislativerisk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the defined benefit obligation and the same will have to be recognized immediately in the year when any such amendment iseffective.

28 Exceptionalitems manugrap

r Technology in Print

28.1 Gain on disposal of property

During the year ended 31st March 2023, the Company has disposed of office premises located at Mumbai resulting in gain on disposal of Rs. 698.52 lakhs.

28.2 Gain on disposal of subsidiary

The Company received full and final amount on 29th November 2022 from the Court appointed Attorney against closure of Chapter XI filing of the Company''s Wholly Owned Subsidiary viz. Manugraph Americas Inc., USA. The gain on disposal of investment in subsidiary is Rs. 1.43 lakhs.

28.3 Compensation to separated employees

As a part of reducing employee costs, the Company has formulated a plan for employee separation. During the year ended March 31, 2022, the Company had paid to such separated employees an amount of Rs. 112.83 lakhs.

29 Current and deferred tax

The major components of income tax expenses for the year ended March 31, 2023, and March 31, 2022 are:

a. No aggregate amounts of current and deferred tax have arisen in the reporting periods which have been recognised in equity.

31 Disclosure as required by Ind AS 116 "Leases”.

a. As a Lessee

The Company has taken the residential and office premises under operating lease, having the lease term of less than 12 months and have no obligation for renewal. These leases are considered by the Company as short leases in accordance with Ind AS 116 “Leases”, consequently these lease payments are recognised in the standalone statement of profit and loss under “Rent” in note 27. For other disclosures related to lease refer note 2B and note 13.

b. As a Lessor OperatingLease

The Company has entered into operating leases of its office premises. Rents received are recognised in the standalone statement of profit and loss as rent income in note 21 ''Other income’.

32 Disclosure as required by Ind AS 108 "Segment Reporting." manugf

I J O r O Technology in

Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company’s performance. In accordance with Ind AS “Operating Segment”, The Company has only one reportable operating segment i.e. Engineering. The additional disclosure is being made in the consolidated financial statements.

There are two s major customers to whom more than 10% of the sales are affected and the total sales affected from such customers is Rs.1,991.00 lakhs, (previous year Rs. 1,297.95 lakhs).

This section explains the judgement and estimate made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the Financial Statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments in to three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

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.

b 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 observable yield curves.

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

(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.

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

c 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. This team reports directly to the Chief Financial Officer (CFO).

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.

37 Financial risk factors

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of market risk or its financial performance. The Company’s risk management assessment, policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company’s risk assessment and management policies and processes.

The Company has exposure to the following risks arising from financial instruments:

(i) Credit risk

(ii) Liquidity risk

(iii) Market risk

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. This exposure is principally from the Company’s receivables from customers. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has established norms for stage-wise payments to lower the exposure. International transactions are backed by letters of credit, confirmed by reputable banks, wherever found necessary. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

The Company takes a significant advance for its machine and has no history of any significant defaults from the customers end in payment of the sale consideration. And therefore, has no history of expected credit loss.

The Company held cash and cash equivalents and other bank balances with creditworthy banks and financial institutions of Rs. 158.49 lakhs (31 March 2022 Rs. 834.84 lakhs). The creditworthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good. In both the years these figures are net of unpaid dividend.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

As of 31^st March 2023, the Company has working capital of Rs. 2,177.27 lakhs (31 March 2022: Rs. 2,960.17 lakhs) which is calculated as current assets less current liabilities.

Investment Risk

The investment of the Company in subsidiary companies is exposed to risks that the business of the subsidiary company is exposed to. Accordingly, the Company''s investment in its US subsidiary has been considerably impaired due to the business risk faced by the subsidiary resulting in the erosion of its value.

Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short-term and non-current. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

Currency Risk

The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss account, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity.

Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in the USD and EURO against the respective functional currency of the Company.

The Company does not use any derivative financial instruments to hedge foreign exchange and interest rate exposure. The company continuously monitors the foreign currency exposures and considering the natural hedge, selectively contracts for plain forward covers whenever found necessary.

38 Financial risk management

a) Management of liquidity risk

The Company''s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.

39 CapitalmanagementRiskmanagement manugra!

The primary objective of the Company’s Capital Management is to maximise shareholder value. The Company monitors capital using debt-equity ratio, which is total debt divided by total capital plus total debt.

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 and subtracting cash and cash equivalents.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions. 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 total capital divided by net debt.

40 The standalone financial statements were authorised for issue by the Board on May 25, 2023

41 EVENTS AFTERTHE REPORTING PERIOD

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of financial statement to determine the necessity for recognition and/ or reporting of any of these events and transactions in the financial statements. As of May 25, 2023, there were no material subsequent events to be recognised or reported that are not already disclosed.

42 Previous period figures have been re-grouped / re-arranged / reclassified wherever necessary to make them comparable with those of the current period. The standalone financial statements were drawn up in Rupees, amounts are rounded off to the nearest Lakhs. Adding the individual figures may therefore not always tally with the total figure.

43 ADDITIONAL REGULATORY INFORMATION

(i) Title deeds of all the immovable properties are in the name of the Company.

(ii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets during the current financial year or the previous financial year.

(iii) The Company has not made any Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

(iv) There is no Capital Work in Progress (''CWIP'') or Intangible Assets Under Development (''ITAUD''), hence no ageing schedule and other relevant details concerning completion or overdue.

MANUBh

(v) No proceedings have been initiated or pending against the company for holding any benami property u de r the '' Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(vi) The Company has borrowed from banks or financial institutions on the basis of security of current assets, quarterly returns of inventory and trade receivables filed by the Company with banks are in agreement with books.

(vii) The Company has not been declared a willful defaulter.

(viii) The Company has no relationship with any struck-off Company\companies.

(ix) All the charges or the satisfaction of the charges have been registered with the registrar of companies within the stipulated time limit.

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

(xi) The Company has not advanced any loan to its subsidiary.

(xii) The Company has not made any application for Scheme of Arrangements.

(xiii) Utilisation of borrowed funds and share premium:

a) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).

b) The Company has not received any funds from any person (s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise).

(xiv) The Company has not entered into any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(xv) The Company is not covered under Section 135 of the Companies Act 2013.

(xvi) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

As per our report of even date attached.

For Desai Shah and Associates For and on behalf of the Board of Directors

Chartered Accountants Manugraph IndiaLimited

ICAI Firm Registration No. 118174W CIN : L29290MH1972PLC015772

Anand Yagnesh Desai Sanjay S. Shah Pradeep S. Shah

Partner Chairman and Managing Vice Chairman and Managing

M. No. 145560 Director Director

UDIN: 23145560BGTUFZ4444 (DIN : 00248592) (DIN : 00248692)

Mumbai, Date: May 25, 2023

Mihir V. Mehta

Company Secretary and Chief Financial Officer Mumbai, Date: May 25, 2023

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Mar 31, 2018

1.Financial Risk Factors

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimize potential adverse effects of market risk or its financial performance. The Company''s risk management assessment, policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and

the Company''s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and processes.

The Company has exposure to the following risks arising from financial instruments:

(i) Credit risk

(ii) Liquidity risk

(iii) Market risk Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. This exposure is principally from the Company''s receivables from customers. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The company has established norms for stage wise payments to lower the exposure. International transactions are backed by Letters of credit, confirmed by reputed banks, wherever found necessary. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

The Company takes a significant advance for its machine and has no history of any significant defaults from the customers end in payment of the sale consideration. And therefore has no history of expected credit loss.

Trade & other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Cash and cash equivalents

The Company held cash and cash equivalents and other bank balances with credit worthy banks and financial institutions of Rs, 390.08 Lakhs (31 March 2017: Rs, 1,945.84 Lakhs, 01 April 2016: Rs, 2,188.34 Lakhs). The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.

As of 31st March 2018 the Company has working capital of Rs, 8,118.06 Lakhs (31 March 2017: Rs, 7,514.02 Lakhs, 01 April 2016: Rs, 6,939.89 Lakhs) including cash and cash equivalents and other bank balances of Rs, 390.08 (31 March 2017: Rs, 1,945.84 Lakhs, 01 April 2016: Rs, 2,188.34 Lakhs). Working capital is calculated as current assets less current liabilities.

Investment Risk

The investment of the Company in subsidiary companies is exposed to risks that the business of the subsidiary company is exposed. Accordingly the Company''s investment in its US subsidiary has been considerably impaired due to the business risk faced by the subsidiary resulting in the erosion of its value.

Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and non-current. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

Currency Risk

The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss account, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in USD and EURO against the respective functional currency of the Company. The Company does not use any derivative financial instruments to hedge foreign exchange and interest rate exposure. The company continuously monitors the foreign currency exposures and considering the natural hedge, selectively contracts for plain forward covers whenever found necessary.

2. Financial Risk Management

a) Management of liquidity risk

The Company''s principal sources of liquidity are cash and cash equivalents, borrowings and the cash flow that is generated from operations. The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.

The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows as at the Balance sheet date:

3. CAPITAL MANAGEMENT

Risk management

The primary objective of the Company''s Capital Management is to maximize shareholder value. The Company monitors capital using Debt-Equity ratio, which is total debt divided by total capital plus total debt.

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 and subtracting cash and cash equivalents.

39 Effective April 1, 2017, the Company adopted the amendment to Ind AS 7, which require the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non - cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance sheet for liabilities arising from financing activities, to meet the disclosure requirement. There is no non cash adjustment and the amendment is not likely to have any significant impact in the future.

4. Recent Accounting Pronouncement

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

The amendment will come into force from April 1, 2018. The Company has evaluated the effect of this on the financial statements and the impact is not material.

Ind AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.

The standard permits two possible methods of transition:

- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach) The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.

The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.

The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 is expected to be insignificant.

5. The balance sheet, statement of profit and loss, cash flow statement, statement of changes in equity, statement of significant accounting policies and the accompanying notes forms an integral part of the financial statements of the Company for the year ended March 31, 2018.

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Mar 31, 2017

A BACKGROUND

Manugraph India Ltd, was established in the year 1972. The company is the largest manufacturer of single width web-offset printing presses in India and has a significant share of the world market for its products. The manufacturing facilities are located at Kolhapur in India and through its wholly owned subsidiary in Millersburg - USA. The company has its in-house R&D facilities with a combined strength of over 50 engineers at both locations. The Indian R&D facilities are recognized by Department of Scientific and Industrial Research - Ministry of Science and Technology , Government of India.

1. Remittances in foreign currency for dividend:

The company has remitted during the year dividend in foreign currency to non-resident shareholders. The particulars of dividend paid during the year are as under :

2. Disclosure as required by Accounting Standard - AS 18 “Related Parties” of the Companies (Accounting Standards) Rules 2006.

I Relationships:

Subsidiaries

Constrad Agencies (Bombay) Private Limited Manugraph Americas, Inc. USA.

Key Management Personnel

Mr. Sanjay S. Shah - Vice Chairman and Managing Director

Mr. Pradeep S. Shah - Managing Director

Mr. Bhupal B. Nandgave - Whole Time Director (Works)

Relatives of key management personnel

Mr. Sanat M. Shah Mrs. Sudha S. Shah

Entities where Key Management Personnel exercise significant influence

Multigraph Machinery Company Limited Manubhai Sons and Company Mercongraphic FZC,

Multigraph Machinery Kenya Limited Manugraph Securities and Finance Private Limited

3. In the opinion of the Board of Directors, all the assets other than fixed assets and non current investments have value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

4. Previous year figures are regrouped and re-arranged wherever necessary with those of the current year to make them comparable.

5. Disclosure as required by Accounting Standard - AS 17 “Segment Reporting” of the Companies (Accounting Standards) Rules 2006.

In accordance with AS-17 “Segment Reporting”, the Company has only one reportable primary business segment i.e. Engineering. However, the Company has secondary geographical segment which is disclosed in Consolidated Financial Statements as per AS-17.

6. Explanatory notes 1 to 39 form an integral part of the Balance Sheet and Statement of Profit and Loss and are duly authenticated.

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Mar 31, 2016

1. In the opinion of the Board of Directors, all the assets other than fixed assets and noncurrent investments have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

2. Exceptional item represents the payments towards the Voluntary Retirement Scheme, 2015 introduced by the Company and opted by the employees during the year of Rs.308.00 lakhs. The deferred tax effect thereon of Rs.81.47 lakhs has been included as part of deferred tax under Tax Expense.

3. Previous year figures are regrouped and re-arranged wherever necessary with those of the current year to make them comparable.

4. Disclosure as required by Accounting Standard - AS 17 "Segment Reporting" of the Companies (Accounting Standards) Rules 2006.

In accordance with AS-17 "Segment Reporting", the Company has only one reportable primary business segment i.e. Engineering. However, the Company has secondary geographical segment which is disclosed in Consolidated Financial Statements as per AS-17.

5. Explanatory notes 1 to 39 form an integral part of the Balance Sheet and Statement of Profit and Loss and are duly authenticated.

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Mar 31, 2015

A. BACKGROUND

Manugraph India Ltd, was established in the year 1972. The company is the largest manufacturer of single width web-offset printing presses in India and has a significant share of the world market for its products. The manufacturing facilities are located at Kolhapur in India and through its wholly owned subsidiary in Millersburg - USA. The company has its in-house R&D facilities with a combined strength of over 50 engineers at both locations. The Indian R&D facilities are recognized by Department of Scientific and Industrial Research - Ministry of Science and Technology, Government of India.

b. The Company has only one class of shares issued and paid-up capital referred to as equity shares having a par value ofRs. 2 per share. Each holder of equity shares is entitled to one vote per share.

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

d. The General Reserve has been created in accordance with the requirements of the erstwhile Companies (Transfer of Profit to Reserve) Rules, 1975

Valuation methodology

i Raw Material, Components and Stores and spares :

Raw materials and components, stores are stated at and Spares lower of cost and net realisable value.

ii Consumable Tools :

Consumable tools are stated at cost or below cost.

iii Work-in-progress and manufactured components :

Work-in-progress and manufactured are valued at components lower of cost and net realisable value.

iv Finished Goods including stock-in-trade :

Finished products are valued at lower of cost and net realisable value

Excise duty is included in the value of finished products inventory.

a. The Company had introduced a Voluntary Retirement Scheme, 2013 in the previous year which was accepted by various employees. The cost in connection therewith of Rs. 1,079.12 lakhs has been shown as an exceptional item. (refer note 38 )

b. During the year Managerial Remuneration paid is Rs. 214.80 lakhs which is in excess of the limits of Section 198 of the Companies Act, 1956 by Rs. 98.39 lakhs as the appointment was under the said Act. The Company has made an application to the Central Government for approval of the excess remuneration which is pending as of the Balance Sheet date. No adjustments are made in these accounts pending approval for Rs. 98.39 lakhs of excess remuneration to directors. The Managerial Remuneration paid in the previous year Rs. 202.89 lakhs in accordance with the approval of the members in general meeting dated 1st August 2013 was in excess of the limits specified by Section 198 of the Companies Act, 1956 by an amount of Rs. 89.61 lakhs for which the Company has received approval from Central Government.

In accordance with the provisions of Schedule II to the Companies Act, 2013, effective from 1st April , 2014, the Company has revised the useful life of its fixed assets. As a consequence of such revision, the charge for depreciation is lower than the previously applied rates by Rs. 294.98 lakhs for the year ended March 2015. For assets that have completed the useful lives as a consequence of the aforesaid revision, the carrying value as on 1st April, 2014 of Rs. 168.01 lakhs has been charged to the opening balance of the Surplus in Profit and Loss Account. Deferred Tax effect thereon of Rs. 54.51 lakhs Is also adjusted in the opening balance of Surplus in Profit and Loss Account.

2. Remittances in foreign currency for dividend:

The company has remitted during the year dividend in foreign currency to non-resident shareholders. The particulars of dividend paid during the year are as under :

3. Disclosure as required by Accounting Standard - AS 18 "Related Parties" of Rule 7 of The Companies (Accounts) Rules 2014.

I Relationships:

Subsidiaries

Constrad Agencies (Bombay) Private Limited

Manugraph Americas, Inc. USA.

Key Management Personnel

Mr. Sanjay S. Shah - Vice Chairman and Managing Director

Mr. Pradeep S. Shah - Managing Director

Mr. B B Nandgave - Whole Time Director (Works)

Relatives of key management personnel

Mr. Sanat M. Shah

Mrs. Sudha S. Shah

Mr. Kushal Shah (upto 30.11.2013)

Entities where Key Management Personnel exercise significant influence

Multigraph Machinery Company Limited

Manubhai Sons and Company Mercongraphic FZC,

Multigraph Machinery Kenya Limited

4. Contingent liabilities and commitments

Particulars 2014-15 2013-14

i. Contingent liabilities

(a) Claims against the company not acknowledged as debt; 36.10 21.31

(b) Guarantees; On account of guarantees executed by the company's bankers: 6.79 8.29 On account of the guarantee given by the Company bankers for the value of USD 4.25 million (PY USD 4.25 million) in favour of subsidiary's banker for credit facilities availed by the subsidiary Manugraph Americas Inc. from them 2,660.11 2,554.24

(c) Other money for which the company is contingently liable Income-tax, sales tax, customs duty, excise duty and service tax demands against which the company has preferred appeals/ made representation 874.31 1,027.95

On account of undertakings given by the company in favour of Customs Authority: 870.00 870.00

Total 4,447.31 4,48179

ii. Commitments

(a) Unexpired letter of credit opened by Bank 141.08 -

(b) Estimated amount of contracts remaining to be executed on capital account and not provided for; 0.56 1.40

(c) Uncalled liability on shares and other investments partly paid - -

(d) Other commitments (specify nature). - -

Total 141.64 1.40

5. In the opinion of the Board of Directors, all the assets other than fixed assets and non current investments have value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

6. Exceptional item of previous year represents the payments towards the Voluntary Retirement Scheme, 2013 introduced by the Company and opted by the employees during the year of Rs. 1,079.12 lakhs. The deferred tax effect thereon of Rs. 280.10 lakhs has been included as part of deferred tax under Tax Expense.

7. Previous year figures are regrouped and re-arranged wherever necessary with those of the current year to make them comparable.

8. Disclosure as required by Accounting Standard - AS 17 "Segment Reporting" of the Companies (Accounting Standards) Rules 2006.

In accordance with AS-17 "Segment Reporting", the Company has only one reportable primary business segment i.e.Engineering. However, the Company has secondary geographical segment which is disclosed in Consolidated Financial Statements as per AS-17.

9. Explanatory notes 1 to 41 form an integral part of the Balance Sheet and Statement of Profit and Loss and are duly authenticated.

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Mar 31, 2014

BACKGROUND

Manugraph India Ltd, was established in the year 1972. The company is the largest manufacturer of single width web- offset printing presses in India and has a significant share of the world market for its products. The manufacturing facilities are located at Kolhapur in India and through its wholly owned subsidiary in Millersburg - USA. The company has its in-house R&D facilities with a combined strength of over 50 engineers at both locations. The Indian R&D facilities are recognized by Department of Scientific and Industrial Research - Ministry of Science and Technology, Government of India.

1. Contingent liabilities and commitments

2013-14 2012-13 Description (Rs. in lakhs) (Rs. in lakhs)

I. Contingent liabilities

(a) Claims against the company not acknowledged as debt; 21.31 37.12

(b) Guarantees;

On account of guarantees executed by the company''s bankers: 8.29 8.29

On account of the guarantee given by the Company bankers for the value of USD 4.25 million (PY USD 4.25 million) in favour of subsidiary''s banker for credit facilities availed by the subsidiary Manugraph Americas Inc. from them 2,554.24 2,31155

(c) Other money for which the company is contingently liable Income-tax, sales tax, customs duty, excise duty and service tax demands against which the company has preferred appeals / made representation 1,027.95 806.33

On account of undertakings given by the company in favour of Customs Authority: 870.00 1,005.00

Total 4,481.79 4,168.29

II. Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for; 1.40 25.87

(b) Uncalled liability on shares and other investments partly paid - -

(c) Other commitments (specify nature). - -

Total 1.40 25.87

2. In the opinion of the Board of Directors, all the assets other than fixed assets and non current investments have value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

3. Exceptional item represents the payments towards the Voluntary Retirement Scheme, 2013 introduced by the Company and opted by the employees during the year of Rs. 1,079.12 lacs. The deferred tax effect thereon of Rs. 280.10 lacs has been included as part of deferred tax under Tax Expense.

4. Previous year figures are regrouped and re-arranged wherever necessary with those of the current year to make them comparable.

5. Segment Reporting as required by AS - 17 The operation of the company represents one primary segment of activity relating to "Production of Printing Machines" and the entire production operations are located in India and therefore there are no separate reportable segments as per AS -17 ''Segment Reporting''.

6. Explanatory notes 1 to 42 form an integral part of the Balance Sheet and Statement of Profit and Loss and are duly authenticated.

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Mar 31, 2013

BACKGROUND

Manugraph India Ltd, was established in the year 1972. The company is the largest manufacturer of single width web- offset printing presses in India and has a significant share of the world market for its products. The manufacturing facilities are located at Kolhapur in India and through its wholly owned subsidiary in Millersburg - USA. The company has its in-house R&D facilities with a combined strength of over 50 engineers at both locations. The Indian R&D facilities are recognized by Department of Scientific and Industrial Research - Ministry of Science and Technology, Government of India.

1. Disclosure as required by Accounting Standard - AS 18 "Related Parties" of the Companies (Accounting Standards) Rules, 2006

I. Relationships: Subsidiaries

Constrad Agencies (Bombay) Private Limited

Manugraph Kenya Limited (upto 30.03.2012)

Manugraph Americas, Inc. USA. (formerly known as Manugraph DGM, Inc)

Entities where significant influence exists

Multigraph Machinery Company Limited Manubhai Sons and Company Mercongraphic FZC, Multigraph Machinery Kenya Ltd.

Key Management Personnel

Mr. Sanjay S. Shah — Vice Chairman and Managing Director

Mr. Pradeep S. Shah — Managing Director

Mr S.M Mordekar — Whole-time Director (Works) upto 08.01.2013

Mr. B B Nandgave — Whole-time Director (Works) w.e.f 10.12.2012

Relatives of Key Management Personnel

Mr. Sanat M. Shah Mrs. Sudha S. Shah Mr. Kushal Shah

2. In the opinion of the Board of Directors, all the assets other than fixed assets and non current investments have value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

3. Confirmations from some of the creditors were not received by the company and therefore their balances are as per books of account only.

4. Previous year figures are regrouped and re-arranged wherever necessary with those of the current year to make them comparable

5. Segment Reporting as requried by AS-17

The operation of the company represents one primary segment of activity relating to "Production of Printing Machines" and the entire production operations are located in India and therefore there are no separate reportable segments as per AS-17 ''Segment Reporting''.

6. Explanatory notes I to 41 form an integral part of the Balance Sheet and Statement of Profit and Loss and are duly authenticated.

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Mar 31, 2012

A) The Company has not issued any bonus shares during the last five years.

b) Details of Shareholding in excess of 5%

c) The Company has only one class of shares issued and paid-up capital referred to as equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share.

a) The General Reserve has been created in accordance with the requirements of the Companies (Transfer of Profits to Reserve) Rules, 1975.

b) The company had been transferring voluntarily from its profit and loss account to general reserve amounts in excess of the minimum amount required to be transferred under the provisions of Companies (Transfer of Profits to Reserves) Rules, 1975. As on 31st March, 2011 surplus amount voluntarily transferred to general reserves aggregate approximately Rs. 15,000 lakhs. In accordance with the opinion of a learned counsel who opined that the surplus amount voluntarily transferred to general reserves is not a compulsory reserve and would form part of the free reserves of the company and with a view to have sufficient balance in the profit and loss account, the company has transferred back from its general reserve to profit and loss account an amount of Rs. 10,000 lakhs.

a) Secured loan from Export-import Bank of India : Term loans under production equipment finance programme.

Secured by first charge by way of hypothecation of moveable fixed assets, present and future and mortgage of land and other immoveable properties, present and future of the company.

b) Unclaimed dividends : There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

The company provides gratuity to all employees. The benefit is in the form of lumpsum payments to vested employees on resignation, retirement, death while in employment or on termination of employment of an amount equivalent to 15 days basic salary and dearness allowance for each completed year of service. Vesting occurs upon completion of five years of service. The company makes annual contributions to fund administered by trustees and managed by Life Insurance Corporation of India, for amounts notified by it. The gratuity benefit is a defined benefit plan.

16 years National Savings Certificates - VIII Issue of the face value of Rs. 10,000 (previous year: Rs. 52,500) have been deposited with the sales-tax authorities and a customer.

ii The investment in Manugraph DGM Inc. includes 116,698 equity shares which have been pledged with the bankers for credit facilities availed by the subsidiary Manugraph DGM Inc.

iii The Company has assessed the impairment in the value of investment in its wholly owned subsidiary Manugraph DGM Inc. on account of the continuing slow down in US and other Western Economies. The impairment in the value of the equity investment was assessed by an independent valuer and based on the assessment carried out by the said valuer, the company has made a provision for impairment of its investment in Manugraph DGM Inc. being the diminution in its value other than temporary of Rs. 6,000 lakhs. The Company has disclosed the same as an exceptional item considering the incidence of the provision.

iv During the year the Company has sold its entire stake in Manugraph Kenya Limited, Nairobi

v The Company has converted its Long Term Loan aggregating to Rs. 3,869.23 lakhs to its wholly owned subsidiary company M/s Manugraph DGM Inc. into 100000 2% Preferred Stock with no par value during the year for an aggregate paid-up value of USD 7.85 million. The preferred stock are issued on non-cumulative basis and are redeemable at par at anytime after three years. The preferred stock are convertible to equity at anytime at the option of the holder.

The consumption in value has been ascertained on the basis of opening stock plus purchases less closing stock as adjusted on account of excesses and shortages as ascertained on physical count and write off of obsolete and unserviceable components.

1 Disclosure as required by Accounting Standard - AS 18 "Related Parties" issued by the Institute of Chartered Accountants of India

I Relationships:

Subsidiaries

Constrad Agencies (Bombay) Private Limited

Manugraph Kenya Limited (upto 30.03.2012)

Manugraph DGM Inc. USA.

Entities where significant influence exists

Multigraph Machinery Company Limited

Manubhai Sons and Company

Mercongraphic FZC, (w.e.f. 02.11.2010)

Key Management Personnel

Mr. Sanjay S. Shah - Vice Chairman and Managing Director

Mr. Pradeep S.Shah - Managing Director

Mr. S. M. Mordekar-Whole-time Director

Relatives of key management personnel

Mr. Sanat M. Shah - Father of Messers Sanjay Shah and Pradeep Shah

Mrs.Sudha S. Shah - Mother of Messers Sanjay Shah and Pradeep Shah

Mr.Kushal Shah - - Son of Mr. Sanjay Shah

II The Related party transactions are detailed as required by AS-18 in the attached statement 1

2 Contingent Liabilities and Commitments

Description 2011-12 2010-11

(Rs. In lakhs) (Rs. In lakhs)

i Contingent liabilities

(a) Claims against the company not acknowledged as debt; 102.76 102.40

(b) Guarantees;

On account of guarantees executed by the company's bankers: 1,084.99 1,152.19 On account of the guarantee given by the company in respect of credit facilities availed by its subsidiary Manugraph DGM, Inc. from their bankers. Undertaking in the form of Support Agreement in favour of subsidiary's bankers and Bank guarantee for the value of USD 4.25 million (PY USD 5 million ) 2,659.46 2,556.21

(c) Other money for which the company is contingently liable

Income-tax, sales tax, customs duty, excise duty and service tax demands against which the company has preferred appeals / made

representation 107.45 66.94

On account of undertakings given by the company in favour of Customs

Authority. 1,240.00 2.175.70

TOTAL 5,194.66 6,053.44

ii Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided

for; 21.94 8.48

(b) Uncalled liability on shares and

other investments partly paid - -

(c) Other commitments (specify nature). - -

TOTAL 21.94 8.48

3 In the opinion of the Board, the current assets, loans and advances are approximately at the value stated, if realized in the ordinary course of business. The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

4 Confirmations from some of the creditors were not received by the company and therefore their balances are as per books of account only.

5 Prior year Comparatives

Hitherto, up to the year ended March 31, 201 1, the Company was preparing the financial statements as per the pre-revised Schedule VI to the Companies Act, 1956. During the year ended March 31, 2012, the Revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. The Company has reclassified the published previous year figures to conform to the norms of the Revised Schedule VI. The adoption of the revised Schedule VI does not impact recognition and measurement principles followed for preparation of the financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of Balance Sheet.

6 Segment Reporting as required by AS - 17

The operation of the company represents wholly one segment of activity relating to production of printing machines and the entire production operations are located in India as per AS -17 'Segment Reporting'. Accordingly all earnings, assets and liabilities relate to this activity only.

7 Figures have been rounded off to the nearest thousand and shown in rupees lakhs

8 Explanatory notes 1 to 42 form an integral part of the Balance Sheet and Profit and Loss Account and are duly authenticated.

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Mar 31, 2011

2010-2011 2009-2010 (Rs. in lakhs) (Rs. in lakhs)

1. Contingent Liabilities

(i) Claims against the company not acknowledged as debts: 102.40 63.32

(ii) income-tax, sales tax, customs duty, excise duty and service tax demands 66.94 55.21 against which the company has preferred appeal/ made representation

Unexpired letters of credit opened by banks amount to: - 214.58

iv> On account of guarantees executed by the company's bankers: 1152.19 3398.55

ivi On account of undertakings given by the company in favour of Customs 2175.70 3504.20

Authority:

ii On account of the guarantee given by the company in respect of credit facilities availed by its subsidiary Manugraph DGM, Inc. from their bankers :

Undertaking in the form of Support Agreement in favour of subsidiary's bankers 2556.21 3266.67 and Bank guarantee for the value of USD 5 million.

2. In the opinion of the Board, the current assets, loans and advances are approximately at the value stated, if realised in the ordinary course of business. The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

3. Confirmations from some of the creditors were not received by the company and therefore their balances are as per books of account only.

4. The company has during the year obtained waiver from payment of deferred payment liability of Rs. 315.81 lakhs due towards balance consideration payable for purchase of shares of subsidiary Manugraph DGM Inc. The company has adjusted the said amount against the value,
5. The operation of the company represents wholly one segment of activity relating to production of printing machines and the entire production operations are located in India as per AS -17 Segment Reporting'. Accordingly all earnings, assets and liabilities relate to this activity only.

6. Related parties disclosure (as identified by the management) Related party relationships

(a) Subsidiary companies

Constrad Agencies (Bombay) Private Limited Manugraph Kenya Limited Manugraph DGM Inc. USA

(b) Entities where significant influence exists

Multigraph Machinery Company Limited Manubhai Sons and Company MercongraphicFZC, (w.ef. 02.11.2010)

(c) Key management personnel

Mr. Sanjay S. Shah. Vice-Chairman and Managing Director Mr. Pradeep S. Shah, Managing Director Mr. Mohan R Harshe (Upto 15.11.2010) Mr. Arun K Puri (01,08.2010 to 01.11.2010) Mr S. M. Mordekar (w.ef. 29.10.2010)

(d). Relatives of key management personnel

Mr. Sanat M. Shah (Father of Messrs. Sanjay and Pradeep Shah)

Mrs. Sudha S. Shah (Mother of Messrs Sanjay Shah & Pradeep Shah)

Mr. Kushal Shah (Son of Mr. Sanjay S. Shah)

7. Figures of the previous year have been re-grouped and re-arranged wherever necessary to make them comparable with the figures of the current year.

8. Figures in parenthesis are in respect of the previous year.

9. Figures have been rounded off to the nearest thousand and shown in rupees lakhs.

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Mar 31, 2010

1 Contingent liabilities

(i) Claims against the company not acknowledged as debts : 63.32 33.03

(ii) Income-tax, sales tax, customs duty, excise duty and service tax demands against 55.21 91.55

which the company has preferred appeals/made representations

(iii) Unexpired letters of credit opened by banks amount to : 214.58 12.51

(iv) On account of guarantees executed by the companys bankers 3398.55 8.34

(v) On account of undertakings given by the company in favour of Customs 3504.20 953.50

Authority

(vi) On account of the following guarantees given by the company in respect of credit facilities given to its subsidiary Manugraph DGM, Inc. by their bankers :

Undertaking in the form of support agreement in favour of subsidiarys 3266.67 3861.85 bankers and bank guarantee for the value of USD. 5 million

2 The current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business. The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

3 Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) The company has amounts due to suppliers under MSMED as at 31st March, 2010. The discloure pursuant to the said Act is as under :

4 Confirmations from some of the creditors were not received by the company and therefore their balances are per books of account only.

5 Revenue expenses on research and development activities amounting to Rs. 183.23 lakhs (previous year Rs. 431.28 lakhs) as certified by the management have been debited to the profit and loss account, per past practice of the company.

6 The company provides gratuity to all employees. The benefit is in the form of lumpsum payments to vested employees on resignation, retirement, death while in employment or on termination of employment of an amount equivalent to 15 days basic salary and allowance for each completed year of service. Vesting occurs upon completion of five years of service. The company makes annual contributions to fund administered by trustees and managed by Life Insurance Corporation of India, for amounts notified by it. The gratuity benefit is a defined benefit plan.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation

7 The operation of the company represents wholly one segment of activity relating to production of printing machines and the entire production operations are located in India. Accordingly all earnings, assets and liabilities relate to this activity only.

Note:

The consumption in value has been ascertained on the basis of opening stock plus purchases less closing stock as adjusted on account of excesses and shortages ascertained on physical count and write off of obsolete and unserviceable components.

Note:

The consumption in value has been ascertained on the basis of opening stock plus purchases less closing stock as adjusted on account of excesses and shortages ascertained on physical count and write off of obsolete and unserviceable components.

Note :

In giving the above information, the company has taken the view that spares and components as referred to in clause 4D(c) of part II of Schedule VI cover only such items as go directly into producti on.

8 Related parties disclosure (as identified by the management) Related party relationships

(a) Subsidiary companies Constrad Agencies (Bombay) Private Limited Manugraph Kenya Limited Manugraph DGM Inc. USA.

(b) Other related parties where control exists Multigraph Machinery Company Limited Manu Enterprises Limited Manubhai Sons and Company

(c) Key management personnel Mr. Sanjay S. Shah, Vice-Chairman and Managing Director Mr. Pradeep S. Shah, Managing Director

(d) Relatives of key management personnel Mr. Sanat M. Shah, (Father of Messrs. Sanjay and Pradeep Shah) Mrs. Ameeta S. Shah, (Spouse of Mr. Sanjay S. Shah) Mrs. Rupali P. Shah, (Spouse of Mr. Pradeep S. Shah)

9 Figures of the previous year have been regrouped to confirm with this years groupings wherever necessary.

10 Figures in parenthesis are in respect of the previous year.

11 Figures have been rounded off to the nearest thousand and shown in rupees lakhs.