Notes to Accounts of Miven Machine Tools Ltd.

Mar 31, 2025

j) Contingent Liabilities And Provisions:

Financial effect of contingent liabilities is disclosed based on information available upto the dates on which
financial statements are approved. However, where a reasonable estimate of financial effect cannot be
made, suitable disclosures are made with regard to this fact and the existence and nature of the contingent
liability.

Provisions involving substantial degree of estimation in measurement are recognised when there is a
present obligation as a result of past events and it is probable that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither
recoqnised nor disclosed in the financial statements.

k) Impairment Of Assets:

At each balance sheet date, the Company assesses whether there is any indication that an asset may be
impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying
amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the statement of
profit & loss to the extent the carryinq amount exceeds the recoverable amount.

l) Financial Assets:

(a) Recognition and Measurement

All Financial assets are recognised initially at fair value. Subsequent measurements are done at fair value
or amortised cost depending on their classification.

(b) Derecognition

A financial asset or part of a financial asset is derecognised when the rights to receive cash flows from the
asset have expired.

(c) Trade and other receivables

Receivables are initially recognised at fair value which approximates to nominal value in almost all cases.
These receivables are reviewed for impairment at subsequent dates and suitable adjustments are
accordingly made.

(d) Cash and cash equivalents

These comprise cash on hand and deposits with Bank which are convertible to cash and are subject to
insiginficant risk of change in value.

(e) Impairment of financial assets

In accordance with Ind AS 109, the company applies Expected Credit Loss (ECL) model for measurement
and recognition of impairment loss on financial assets with credit risk exposure.

m) Financial Liabilities:

(a) Recognition and Measurement

Financial Liabilities are classified, at initial recognition, at fair value through statement of Profit and Loss as
Loans, Borrowings, Payables or derivaties as appropriate.

Financial Liabilities are measured based on their classification at fair value through Statement of Profit and
Loss, amortised cost or fair value through Other Comprehensive Income.

(b) Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires.

(c) Trade and Other payables

Liabilities are recognised for amounts to be paid in future for goods or services received, whether or not
billed by the supplier.

n) Reclassification of financial assets and liabilities:

(i) After initial recognition no reclassification is made for financial assets which are equity instruments and
financial liabilities. For other financial assets, a reclassification is made prospectively only if there is a
change in the business model for managing those assets.

(ii) Offsetting Financial Assets and Liabilities

is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on

o) Earnings Per Share:

The company presents basic and diluted Earnings Per Share data for its ordinary shares. Basic earnings per
share is calculated by dividing the Profit or Loss attributable to ordinary shareholders of the Company by
weighted average number of ordinary Shares outstanding during the year, adjusted for own shares held.

p) Cash Dividend and Non-cash Distribution to Shareholders:

The company recognises a liability to make Cash or Non Cash Distribution to Equity Share Holders when
the distribution is authorised and the distribution is no longer at the discretion of the company.

q) Events after reporting period:

(i) Adjusting events are events that provide further evidence of conditions that existed at the end of the
reporting period. The financial statements are adjusted for such events before authorisation for issue.

(ii) Non Adjusting events are events that are indicative of condition that arose after the end of the
reporting period. Non Adjusting events after the reporting date are not accounted, but disclosed.

r) Ind AS 116 - Leases

Ind AS 116 which replaces Ind AS 17 has become operational from 1st April 2019. The Company has
adopted Ind AS 116 with effect from April 1, 2019 and applied the standard to all lease contracts existing
on that date using the modified retrospective method, recognizing the cumulative effect of initially applying
this standard as an adjustment to ''riaht-of-use asset'' as on ADril 1. 2019.

(1) whether the contract involves the use of a distinct identified asset,

(2) whether the Company obtains the right to substantially all the economic benefit from the use of the
asset throughout the period, and

(3) whether the Company has the right to direct the use of the asset.

Term Lease). The company has no other leases.

In respect of Short Term Leases, lease rent paid is expensed to Statement of Profit and Loss Account

s) Going Concern

The Net Liabilities of the Company exceed its assets by INR. 551.75 Lakhs. Considering the business
plans made by the Company, orders or hand, reorganization of product mix and with continued support
from the bankers and the Holding Company, the Company expects to recover from the losses. According to
the Company, considering all the facts, including renewal of bank working capital limits, sale/disposal of
the inventories on hand and the company''s decision to take back on lease a part of the land and factory
building thereon for continuing business activities, the assumption of Going concern is not vitated even
thouah the net worth is eroded.

t) Recent Pronouncements of Government of India

There are no recent pronouncements made by Governent of India, having impact on the financial
statements.

Note:

1 The company has adequate brought forward losses eligible for set off against current year''s income under Income Tax Act, 1961 and therefore there is no liability
towards Income Tax for the year.

2 The company has decided to opt for Sec 115BAA of the Income Tax Act, 1961 from the year ending 31st March 2020 onwards. Therefore liability to tax u/s 115JB
(Minimum Alternate Tax) does not arise.

3 Due to absence of certainity in utilisation, deferred tax asset has not been recognised in respect of the following items because it is not probable to expect that future
taxable profits will be available in the time limit prescribed under the Income Tax Act, 1961 against which the deductible temporary difference can be utilised.

NOTE 25: OTHER NOTES

(A) The Net Liabilities of the Company exceed its assets by INR 551.75 Lakhs. Considering the change in management of the company, business plans and support
from the new promoters, the Company expects to recover from the losses. According to the Company, considering all these facts, the assumption of Going concern is
not vitiated even though the net worth is eroded.

(B) The Company did not enter into any long term contracts and there are no material forseable losses to be recognised under applicable laws or accounting standards in
the financial statements

(C) Figures have been regrouped/ reclassified/ recast wherever required as allowed by Schedule III of The companies Act, 2013. Provision for Gratuity payable was shown
in sub head other current liabilities under major head Current Liabilities in the previous reporting period which was regrouped and now shown in sub head Provisions
under major head Current Liabilites for the current reporting period. Loan from director was shown in sub head Borrowings under major head Current Liabilities in the
previous reporting period which was reclasisified and now shown in sub head Borrowings under major head Non-Current Liabilites for the current reporting period.

CD) Regarding Non Provision of Interest on Inter Corporate Loans

Interest has not been provided for INR 11.26 Lakhs on Inter-Corporate Borrowing from Miven Mayfran Conveyors Pvt Ltd for the year ended 31st March 2025 as
the management is in discussion with the lender for waiver of loan and accumulated interest thereon.

(E) During the quarter ended 31st March 2024, the company recieved an email notice from the Stock Exchange BSE Limited [BSE India] seeking clarifications on audited
financial statements of the company for the past year(s). In this regard, the company has provided necessary details on 17th March 2024 and further communications
have been received from BSE India on 18th Nov, 2024 for which clarifications was submitted on 24th December, 2024. No Furthure communications have been
received from BSE Inida till now.

(F) The financial statements were reviewed and recommended by the Audit Committee on 26th May, 2025 and subsequently approved by the Board of Directors at
their meeting held on the same date.

(G) Vendor and customer balances, including advances and security deposits, are subject to third-party confirmation and reconciliation.

(H) Earnings in Foreign Currency - NIL (PY - NIL)

(I) Expenditure in Foreign Currency - NIL (PY - NIL)

0) DISCLOSURE UNDER IND AS
i) Operating Segments - Ind AS 108

The company has only one business segment viz., Metal Cutting including grinding machines. All sales are in India. Hence disclosures required under IND AS 108-
Operating Segment is not applicable

(iv) Municipal Tax in respect of Land

The company''s erstwhile manufacturing plant was situated in Tarihal Industrial Area, Tarihal, Hubli which was originally under Rainal Mandal Panchayat. Although the
company has sold the entire land parcel during the earlier year(s), the company continues to be liable for any past demands. Provision has been made in the books
towards tax due to them for the period 1992 to 2003 aggregating to INR 3.18 Lakhs. This panchayat subsequently merged with Hubli Dharwad Municipal Corporation
(HDMC), Hubli. As the Industrial estate is yet to be fully developed by KIADB, the same has not been handed over to HDMC. However maintenance charges is being
collected by KIADB which was remitted by the company till FY 2007-08. Subsequently KIADB made claims for annual maintenance charges and Interest for delayed
payment totalling to INR 2.94 Lakhs which is disputed by the company. HDMC has claimed municipal tax, including interest thereon, aggregating to INR 569.91 Lakhs
for the period from 1995 till 2016 which is disputed by the company through Greater Hubli Dharwad Industries Association. The company is confident that the claim
relating to past periods will be withdrawn by the authorities and will not be payable in view of existing favourable court orders in respect of similar cases.Consequently
no provision has been made in the books for these demands.

D. Financial risk management

The Company is broadly exposed to credit risk, liquidity risk and market risk as a result of financial instruments. The Company is exposed to
financial risk, such as market risk (fluctuations in exchange rates, interest rates and price risk), credit risk and liquidity risk. The general risk
management program of the Company focuses on the unpredictability of the market factors, and attempts to minimize their potential negative
influence on the financial performance of the Company.

The Company''s Board of Directors has the overall responsibility for the establishment, monitoring and supervision of the Company''s risk
management framework. Treasury Management Team in the company take appropriate steps to mitigate financial risks within the framework set by
the top management. Company does not trade in derivatives for speculation.

(i) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises
from credit exposures from customers, cash and cash equivalents held with banks and current and non-current debt investments.

The Company regularly follows-up the receivable to minimise losses arising from credit exposure from credit customers. Credit control assesses the
credit quality of the customers, their financial position, past experience in payments and other relevant factors. Deposits and cash balances are
placed with reputable scheduled banks.

The carrying amount of financial assets represents the Company''s maximum exposure to credit risk. No other financial assets carry a significant
exposure to credit risk.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, the management also
considers the factors that may influence the credit risk of its customer base.

The management has established a system under which each new customer is analysed individually for creditworthiness before the Company''s
standard payment and delivery terms and conditions are offered. The Company''s review includes external ratings, if they are available, and in some
cases bank references.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables
based on factual information as on the Balance sheet date.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty In meeting the obligations associated with its financial liabilities that are settled by
delivering cash or another financial asset, or the risk that the Company will face difficulty in raising financial resources required to fulfil its
commitments. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s
reputation.

Liquidity risk is maintained at low levels through effective cash flow management, low borrowings and availability of adequate cash. Cash flow
forecasting is performed internally by forecasts of the Company''s liquidity requirements to ensure that it has sufficient cash to meet operational
needs, to fund scheduled investments and to comply with loan covenants.

To ensure continuity of funding, the Company primarily uses short-term bank facilities in the nature of bank overdraft facility, cash credit facility and
short-term borrowings to fund its ongoing working capital requirements needs.

Exposure to liquidity risk

The table below details the Company''s remaining contractual maturity for its financial liabilities and derivative financial liabilities. The contractual
cash flows reflect the undiscounted cash flows of financial liabilities and derivative financial liabilities based on the earliest date on which the
Company can be required to oav.

(iii) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity / commodity prices - will affect the
Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market
risk exposures within acceptable parameters, while optimising the return. The Company uses derivatives to manage market risks. All such
transactions are carried out within the guidelines set by the managment.

The Company''s activities expose it primarily to the financial risks of changes in foreign exchange rates and interest rate movements (refer to notes
below on currency risk and interest risk). Currently there are no foreign exchange exposures. During the year ended 31 March 2018, there was no
change to the manner in which the Company managed or measured market risk.

(iv) Currency risk- NIL

Foreign currency risk is the risk arising from exposure to foreign currency movement that will impact the Company''s future cash flows and
profitability in the ordinary course of business.

The Company operates domestically and is not exposed to currency risk on account of its borrowings, other payables and receivables being in
functional currency i.e. Indian Rupees.

(v) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair
values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash
flows of floating interest bearing instruments will fluctuate because of fluctuations in market interest rates.

Exposure to interest rate risk

The Company''s interest rate risk arises from borrowings and loans and advances made. Borrowings availed at fixed rates expose the Company to
fair value interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the
Company is as follows.

(vi) Equity and commodity price risk

Price risk is the risk of fluctuations in the value of assets and liabilities as a result of changes in market prices of investments. The Company has not
invested in equity securities and hence it is not exposed to equity price risk. The Company does not invest in commodities and is not exposed to
commodity price risk.

(K) Additional Regulatory Information

(i) Title Deeds of Immovable Property held in the name of the Company

The Company did not hold any immovabe properties in its name during the financial year.

(ii) The Company shall disclose as to whether the fair value of investment property (as measured for disclosure purposes in the
financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers
and Valuation) Rules, 2017.

There are no investment properties held by the Company.

(iii) Where the Company has revalued its Property, Plant and Equipment (including Right-of-Use Assets), the company shall
disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017.

There has been no revaluation of assets during the year.

(iv) Where the company has revalued its intangible assets, the company shall disclose as to whether the revaluation is based on
the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

There has been no revaluation of intangible assets during the year.

(v) Disclosures to be made where 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

There are no loans advanced by the Company to related parties including promoters,directors, KMPs either jointly or severally with any other
persons.

(vi) Capital Work in Progress - Aging Schedule

There are no capital work in progress as on current & previous reporting date.

(vii) Intangibles under development- Aging Schedule

There are no intangibles under development as on current & previous reporting date.

(viii) Details of Benami Property held by the company

There are no benami properties held in the name of the company and no proceedings has been initiated upon the same.

(ix) Where the Company has borrowings from banks or financial institutions on the basis of security of current assets, it shall
disclose the following

The company does not have any borrowings on the basis of security of current assets for current or previous reporting period.

(x) Wilful Defaulter

The company has not been declared as wilful defaulter by any bank or financial institution for the current or previous reporting period.

(xi) Relationship with Struck off Companies

The Company is on no way related to any of the companies struck-off by the Registrar of Companines during the year.

(xii) Registration of charges or satisfaction with Registrar of Companies

There are no charges pending satisfaction with the Registrar of Companies, Bangalore.

(xiii) Compliance with number of layers of companies as per Companies Act,2013

The Companies has complied with the provisions guiding layering of companies as per Companies Act, 2013.

(xiv) Compliance with approved scheme(s) of arrangements

There are no schemes of arrangement impending in relation or applicable to the Company.

(xv) Utilization of borrowed funds and share premium

(a) In case of loans/funds received by the Company, there are no amounts received, where the Company is obliged to advance monies to
intermediaries in order to be ultimately lent to or invested in other entities (ultimate beneficiaries).

(b) In case of funds given or advanced by the Company, there are no amounts given where, the Company requires the borrowers/receiving
entities (intermediaries) to ultimately lend to or invest in other entities (ultimate beneficiaries).

As per our. report of even date For and on behalf of the Board of Directors of

For V.RAO & GOPI Miven Machine Tools Limited J

Chartered Accountants /l

Firm Regn No: 003153S fp^/A"A V"\\ '' » ^---v/J /I.___

\JvK )*|] Katta Sundeep Reddy ^--°^Sahil Amivr ^

UQ URN-003153s/2?// Managing Director Director

^P. Hanumantha Rao yW (DIiy064B8901) (DIN: 07143414)

Memb. No: 026990 j

UDIN: 25026990BMISLD8024 y Kirah Kumar Bolaram__^__^-^7 Khushboo Jain

Chief Financial Officer Company Secretary

(M. No. 65899)

Place: Hyderabad Place: Hyderabad

Date: 26th May, 2025 Date: 26th May, 2025

---

Mar 31, 2024

Note:

1 The company has adequate brought forward losses eligible for set off against current year''s income under Income Tax Act, 1961 and therefore there is no liability towards Income Tax for the year.

2 The company has dedded to opt for Sec 115BAA of the Income Tax Act, 1961 from the year ending 31st March 2020 onwards. Therefore liability to tax u/s 1153B (Minimum Alternate Tax) does not arise.

3 Due to absence of certainlty In utilisation, deferred tax asset has not been recognised In respect of the following items because it is not probable to expect that future taxable profits will be available in the time limit prescribed under the Income Tax Ad, 1961 against which the deductible temporary difference can be utilised.

(i; Kignts and restrictions attached to equity shares

^P^m^^ny *** ^0niy ^ ^0,355 of share''^i-e'''' shares having the face value of INR 10 per share. Each holder of equity share Is entitled to one vote per share. Dividend is paid n Indian Rupees. The dividend, rf any, recommended by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting. In the event of liquidation of the Company, equity shareholders will be entitled to receive remaining assets of the Company after distribution of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

(A) The Net Liabilities of the Company exceed its assets by INR 490.44 Lakhs. Considering the change in management of the company , business plans and support from the new promoters, the Company expects to recover from the losses. According to the Company, considering all these facts, the assumption of Going concern is not vitiated even though the net worth is eroded.

(B) Confirmation of balance from suppliers and customers have been called for and is awaited. The company does not expect any material variation in respect of these accounts.

(C) The Company did not enter into any long term contracts and there are no material forseable losses to be recognised under applicable laws or accounting standards in the financial statements

(D) Figures of Previous reporting period have been regrouped/ reclassified/ recast wherever required to conform to current reporting period''s presentation

(F) Regarding Wnte-back of Liabilities

During the quarter ended 31st March 2024, the vendor / customer balances outstanding for more than 3 years amounting in aggregate to INR 7.1 Lakhs has been written back as no longer payable and dlsdosed the same under "Other Income" of the financial statements. The company sought confirmations of balances from these parties and in the absence of response therefrom, the company has written back these liabilities as no longer payable.

(G) Bfigardjqq .NQnPffiyisiQn of Interest on Inter Corporate Loans

Interest has not been provided for INR 5.63 Lakhs on Inter-Corporate Borrowing from Miven Mayfran Conveyors Pvt Ltd for the year ended 31st March 2024 as the management is in discussion with the lender for waiver of loan and accumulated interest thereon.

(H) During the quarter ended 31st March 2024, the company reoeved an email notice from the Stock Exchange BSE Limited [BSE India] seeking clarifications on audited financial statements of the company for the past year(s). In this regard, the company has provided necessary details on 17th March 2024 and no further communications have been received from BSE India till the date of this Board Meeting.

(I) The financial statements were reviewed and recommended by the Audit Committee on 29th May, 2024 and subsequently approved by the Board of Directors at their meeting held on the same date.

(J) 1. The company is currently reconciling its GST balances and liabilities between the figures recorded in its books and those reported in its returns. Any liability identified will be discharged either at the time of filing annual returns or through Form DRC-03.

2. TDS credits as per books of accounts and Form 26 AS are pending recondlation

(K) Vendor and customer balances, including advances and security deposits, are subject to third-party confirmation and reconciliation.

(L) Earnings in Foreign Currency - NIL (PY - NIL)

(M) Expenditure in Foreign Currency - NIL (PY - NIL)

(iv) Municipal Tax in respect of Land

The company’s erstwhile manufacturing plant was situated In Tarihal Industrial Area, Tarihal, Hubii which was originally under Rainal Mandal Panchayat. Although the company has sold the entire land parcel during the earlier year(s), the company continues to be liable for any past demands. Provision has been made in the books towards tax due to them for the period 1992 to 2003 aggregating to INR 3.18 Lakhs. This panchayat subsequently merged with Hubii Dharwad Municipal Corporation (HDMC), Hubii. As the Industrial estate is yet to be fully developed by KIADB, the same has not been handed over to HDMC. However maintenance charges is being collected by KIADB which was remitted by the company till FY 2007 08. Subsequently KIADB made daims for annual maintenance charges and Interest for delayed payment totalling to INR 2.94 Lakhs which is disputed by the company. HDMC has daimed municipal tax, induding interest thereon, aggregating to INR 569.91 Lakhs for the period from 1995 till 2016 which is disputed by the company through Greater Hubii Dharwad Industries Association. The company is confident that the daim relating to past periods will be withdrawn by the authorities and will not be payable in view of existing favourable court orders in respect of similar cases.Consequently no nmvision has heen made in the honks for these demands

hi Transfer* tetwMw the fair value hierarchy

There were no transfers in either direction m the fair value hierarchy Ouma the vtar ercied 3lst March 2024 B- Capital Manaoement

The Company strives to maintain a strong capita; oase so as to maintain investor, creditor and market confidence and to suaam future devetopment of B« Duuness. Management monaors the retxen on cap«al as v*e« •» the level of dividends to ordinary sharehoWery The hoard of directors seeks to maintain a balance between the rubier iearns and levels of twroninQs and the atfranQQes and secuity afforded by a sound capital position AHtxxxjh the Net woith of the con^any is negative, due to accumtiated losses, the new management has taken effective steps to improve the financial posoorVperformance by way of disposal of Ian). Infusion of fresh loans

D. Financial risk management

The Company is broadly exposed to credit risk, liquidity risk and market risk as a result of financial instruments. The Company rs exposed to financial risk, such as market risk (fluctuations m exchange rates, interest rates and price risk), credit risk and liquidity risk. The general risk management program of the Company focuses on the unpredictability of the market factors, and attempts to minimize their potential negative influence on the financial performance of the Tnmnanw

The Company''s Board of Directors has the overall responsibility for the establishment, monitoring and supervision of the Company''s risk management framework. Treasury Management Team In the company take appropriate steps to mitigate financial risks within the framework set by the top management Company does not trade in derivatives for speculation.

(i) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting m financial loss to the Company. Credit risk arises from credit exposures from customers, cash and cash equivalents held with banks and current and non-current debt investments.

The Company regularly follows-up the receivable to minimise losses arising from credit exposure from credit customers. Credit control assises the credit quality of the customers, their financial position, past experience in payments and other relevant factors. Deposits and cash balances are placed with reputable

crhortnlivl Kaol’c

The carrying amount of financial assets represents the Company''s maximum exposure to credit risk. No other financial assets carry a significant exposure to credit risk.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, the management also considers the factors that may Influence the credit risk of its customer base.

The management has established a system under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s review indudes external ratings. If they are available, and m some cases bank references.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables based on factual information as on the Balance sheet date.

Any past due from Government Customers and those fully covered by guarantees or collaterals received are not tested for impairment. The credit quality of the financial assets is satisfactory, taking into account the allowance for doubtful trade receivables-The Company has not received any collaterals for receivables as at reporting date.

The company has tested for impairment loss allowance at 31 March 2024 in respect of Trade Receivables and is of the firm opinion that the amounts stated as receivable will be fully realised and no allowance is called for.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset, or the risk that the Company will face difficulty In raising financial resources required to fulfil its commitments. The Company''s approach to managing liquidity is to ensure, as far as possible, that It will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without Incurring unacceptable losses or risking damage to the Company''s reputation.

Liquidity risk is maintained at low levels through effective cash flow management, low borrowings and availability of adequate cash. Cash flow forecasting rs performed internally by forecasts of the Company''s liquidity requirements to ensure that it has sufficient cash to meet operational needs, to fund scheduled investments and to comply with loan covenants.

To ensure continuity of funding, the Company primarily uses short-term bank facilities in the nature of bank overdraft facility, cash credit facility and short-term borrowings to fund Its ongoing workJng capital requirements needs.

Exposure to liquidity risk

The table below details the Company’s remaining contractual maturity for its financial liabilities and derivative financial liabilities. The contractual cash flows reflect the undiscounted cash flows of financial liabilities and derivative financial liabilities based on the earliest date on which the Company can be required to pay.

(iii) Market risk

Market risk is tire risk Oral changes in market prices - such as foreign exchange rates, interest rates and equity / commodity prices - wiH affect the Company''s The Company''s activities expose It primarily to the financial risks of changes in foreign exchange rates and interest rate movements (refer to notes below on

(iv) Currency risk- NIL

Foreign currency risk is the risk arising from exposure to foreign currency movement that wiH impact the Company''s future cash flows and profitability in the ordinary course of business.

The Company operates domestically and is not exposed to currency risk on account of its borrowings, other payables and receivables being m functional

(v) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate nsk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate nsk Is the risk that the future cash flows of floating interest bearing Instruments will fluctuate because of fluctuations in market interest rates.

Exposure to interest rate risk

The Company''s interest rate risk arises from borrowings and loans and advances made. Borrowings availed at fixed rates expose the Company to fair value interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows.

(vi) Equity and commodity price risk

Price risk is the risk of fluctuations in the value of assets and liabilities as a result of changes in market prices of investments. The Company has not invested in equity securities and hence it is not exposed to equity price risk. The Company does not invest in commodities and Is not exposed to commodity price risk.

(R) Additional Regulatory Information

(I) Title Deeds of Immovable Property not held in the name of the Company

The Company did not hold any immovabe properties m its name during the financial year.

(ii) The Company shall disclose as to whether the fair value of investment property (as measured for disclosure purposes in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.D

There are no investment properties held by the Company.

(Ill) Where the Company has revalued its Property, Plant and Equipment (including Right-of-Use Assets), the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules. 2017.

There has been no revaluation of assets dunng the year.

(iv) Where the company has revalued its intangible assets, the company shall disclose as to whether the revaluation Is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

There has been no revaluation of intangible assets dunng the year

(v) Disclosures to be made where 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 severalty or Jointly with any other person, that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

There are no loans advanced by the Company to related parties mdudmg promoters,directors, KMPs either jointly or severally with any other persons.

(vi) Capital Work in Progress - Aging Schedule

There are no capital work in progress as on current & previous reporting date.

(vii) Intangibles under development- Aging Schedule

There are no intangibles under development as on ament & previous reporting date.

(viii) Details of Benami Property hek! by the company

There are no benami properties held ri the name of the company and no proceedings has been initiated upon the same.

(ix) Where the Company has borrowings from banks or financial institutions on the basis of security of current assets, it shall disclose the

f.M. i . -

The company does not have any borrowings on the basis of security of cunent assets for ament or previous reporting period.

(x) Wilful Defaulter

The company has not been declared as wilful defaulter by any bank or financial institution for the ament or previous reporting period.

(xi) Relationship with Struck off Companies

The Company s on no way related to any of the companies struck-off by the Registrar of Cnmpantnes during the year

(xii) Registration of charges or satisfaction with Registrar of Companies

TTiere are no charges pending satisfaction with the Registrar of Companies, Bangalore.

(xiii) Compliance with number of layers of companies as per Companies Act,2013

The Companies has complied with the provisions guiding layering of companies as per Companies Act, 2013.

(xiv) Compliance with approved schemefs) of arrangements

There are no schemes of arrangement impending m relation or applicable to the Company

(xv) Utilization of borrowed funds and share premium

(a) In case of bans/funds received by the Company, there are no amounts received, where the Company is obliged to advance monies to intermediaries m order to be ultimately lent to or invested «i other entities (ultimate beneficiaries).

(b) In case of funds given or advanced by the Company, there are no amounts given where, the Company requres the borrowers/receiving entities (intermediaries) to ultimately tend to or invest in other entities (ultimate beneficiaries).

---

Mar 31, 2014

As at As at Particulars March 31,2014 March 31,2013

1 Contingent liabilities and Commitments: (to the extent not provided for) Contingent Liabilities:

i) Counter guarantees given to 16,374,190 20,349,625 the bankers for guarantees given by them on behalf of the Company.

ii) Claim by former employees/casual 84,311 84,311 workers pending before courts.

iii) The Company has considered 7,348,629 7,348,629 an amount of Rs.1,457,586 due from a customer as good of recovery in respect of which the customer has made a claim for which no provision is made since the matter is pending in court. The Company is confident of recovering the dues and that the claim of the customer will not stand.

iv) a) Liability in respect of Not Not pending sales tax and entry ascertainable ascertainable tax assessments

b) Disputed Sales Tax liability 179,157 179,157 penalty and interest in respect of financial year 2005-06

v) The Company''s premises is located at Tarihal Industrial Area, Tarihal, Hubli, which was earlier covered under the jurisdiction of Rainal Mandal Panchayat. Subsequently, Rainal Mandal Panchayat was merged with Hubli Dharwad Municipal Corporation (HDMC), Hubli. Since KIADB had not fully developed this Industrial Estate, it has not handed over the same to H D M C. As such, they were collecting annual maintenance charges. The Company has been regular in making the payment of annual maintenance charges to KIADB till 2007-08. Subsequently, KIADB has also made claims for maintenance charges and interest totally amounting to Rs.2,94,420/- including for prior years which has been disputed by the Company. Further HDM C has claimed Rs.2,51,28,186/- (Rs.2,36,79,570/-) towards tax including penalty of Rs. 1,71,09,519/- (Rs. 1,56,71,703/-) for the period from 1995 to 2008. However, for the year under report property tax of Rs. 1,25,504/- (Rs. 1,04,438) has been provided as payable to H D M C. The matter relating to the payment of property tax for the years prior to 2008-09 is disputed through the Greater Hubli - Dharwad Industries Association and the matter was pending before Government of Karnataka. Further the Company is in the process of filing petition before the jurisdictional court through Greater Hubli Dharwad Association. The Company is confident that the claim relating to prior years will be withdrawn and will not be payable. Consequently, no provision has been made for the said demand. However and as a matter of abundant precaution, tax amount based on past demands of the Mandal Panchayat which has been provided in prior years to an extent of Rs.3,17,972/- (Rs.3,17,972/-) though not paid is retained in the books of account.

The management believes, based on internal assessment and/or legal advice, that the probability of an ultimate adverse decision and outflow of resources of the Company is not probable and accordingly, no provision for the same is considered necessary.

2. Considering the business plans made by the Company, improvement in turnover, Orders on hand, reorganisation of product mix and with continued support from the Bankers and the Holding Company, the Company expects to recover from the losses. According to the Company considering all the facts and not withstanding the erosion of net worth the assumption of ''Going Concern'' is not vitiated.

3. Confirmation of balances from certain Sundry Debtors and Sundry Creditors have been called for and awaited. The company does not expect any material variation in respect of these accounts.

Defined Benefit Plan :

The employees'' gratuity fund scheme managed by a trust is a defined benefit plan. The Present value of obligation is determined based on actuarial valuation using the projected unit credit method.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the actuary.

4. The Company has only one business segment viz., Metal Cutting including grinding machines. All sales are in India. Hence the disclosures required under Accounting Standard - 17 (Segment Reporting) is not applicable.

5. Previous year''s figures have been regrouped wherever required in conformity with the presentation for the current year.

---

Mar 31, 2013

PARTICULARS As at March 31'' 2013 As at March 31, 2012 Rs. Rs.

1. CONTINGENT LIABILITIES AND COMMITMENTS

(to the extent not provided for)

Contingent Liabilities:

i) Counter guarantees given to the bankers for guarantees given by them on behalf of the company 20,349,625 14,412,104

ii) Claim by former employees / casual workers pending before courts 84,311 84,311

iii) The Company has considered an amount of Rs.1,457,586 due from a customer as good of recovery in respect of which the customer has made a claim for which no provision is made since the matter is pending in court. The Company is confident of recovering the dues and that the claim of the customer will not stand. 7,348,629 7,348,629

iv) a) Liability in respect of pending Fringe Benefit Tax, sales tax and entry tax assessments Not ascertainable Not ascertainable

b) Disputed Sales Tax liability, penalty and interest in respect of financial year 2005-06 179,157 NIL

v) The Company''s premise is located at Tarihal Industrial Area, Tarihal, Hubli, which was earlier covered under the jurisdiction of Rainal Mandal Panchayat. Subsequently, Rainal Mandal Panchayat was merged with Hubli-Dharwad Municipal Corporation (HDMC), Hubli. Since KIADB had not fully developed this Industrial Estate, it has not handed over the same to HDMC. As such, they were collecting annual maintenance charges. The company has been regular in making the payment of annual maintenance charges to KIADB till 2007-08. Subsequently KIADB has also made claims for maintenance charges and interest totally amounting to Rs.2,94,420/- including for prior years. The company is disputing the said claim and is in the process of filing a petition for waiver, further HD.MC has claimed Rs.2,35,75,132 (Rs.1,91,53,046) towards tax including penalty of Rs.1,56,71,703 (Rs.1,11,51,251) for the period from 1995 to 2008. However, for the year under report property tax of Rs.1,04,438/- (Rs.87,494) has been paid to HDMC as per the terms of HDMC for the relevant year. The matter relating to the payment of property tax for the years prior to 2008-09 is disputed through the Greater Hubli-Dharwad Industries Association and the matter is pending before the Government of Karnataka. The company is confident that the claim relating to prior years will be withdrawn and will not be payable. Consequently no provision has been made for the said demand. However, and as a matter of abundant precaution, tax amount based on past demands of the Mandal Panchayat which has been provided in prior years to an extent of Rs.3,17,972/- (Rs.3,17,972/-) though not paid, is retained in the books of account.

The management believes, based on internal assessment and/or legal advice, that the probability of an ultimate adverse decision and outflow of resources of the Company is not probable and accordingly, no provision for the same is considered necessary.

2. Considering the business plans made by the Company, orders on hand, re-organisation of product mix and with continued support from the Bankers and the Holding Company, the Company expects to recover from the losses. According to the Company considering all the facts and notwithstanding the erosion of net worth the assumption of "Going Concern" is not vitiated.

3. Confirmation of balances from certain Sundry Debtors and Sundry Creditors have been called for and awaited. The company does not expect any material variation in respect of these accounts.

Defined Benefit Plan:

The employees'' gratuity fund scheme managed by a trust is a defined benefit plan. The Present value of obligation is determined based on actuarial valuation using the projected unit credit method.

* Recast the estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the actuary. 34. The Company has only one business segment viz., Metal Cutting including grinding machines. All sales are in India. Hence the disclosures required under Accounting Standard-17 (Segment Reporting) is not applicable.

4. a) The Company has made purchass from a Private Company in which a director is interested for the year under report to an extent of Rs.24,44,782/- (Rs. 12,63,217/-) and sales to an extent of Rs.1,82,023/- (Rs.9,30,751/-) after the expiry period of the approval u/s 297 of the Companies Act, 1956. The Company has made an application before the expiry date to the Central Government for extension and enhancement of the limits. The approval is awaited.

b) During the year the Company has sold goods amounting to Rs.21,92,986/- to a private limited company covered under Section 297 of the Companies Act, 1956 in respect of which no prior approval of the Central Government as required under Section 297 of the Companies Act, 1956 has been obtained. However, the Company has filed an application with Company Law Board subsequent to the transaction and awaiting their reply. However, no adjustments have been made to the financial statements for the year ended March 31, 2013.

5. Previous year''s figures have been regrouped wherever required in conformity with the presentation for the current year. Figures in brackets represent previous year figures.

---

Mar 31, 2012

1. SHORT TERM BORROWINGS

ADDITIONAL INFORMATION :

Details of security for secured loans

i) Working capital loan is secured against Hypothecation of stocks and book debts and guaranteed by the Chairman of the Company and holding Company.

ii) Demand loan was secured against land and building and plant & machinery of the Company.

PARTICULARS As at March As at March 31, 2012 Rs. 31, 2011 Rs.

2. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

Contingent Liabilities:

i) Counter guarantees given to the bankers for guarantees given by them on behalf of the company 14,412,104 15,473,069

ii) Claim by former employees/casual workers pending before courts 84,311 84,311

iii) 'The Company has considered an amount of Rs. 1,457,586 due from a customer as good of recovery in respect of which the customer has made a claim for which no provision is made since the matter is pending in court. The Company is confident of recovering the dues and that the claim of the customer will not stand. 7,348,629 7,348,629

iv) Liability in respect of pending Fringe Benefit Tax, sales tax and entry tax assessments Not Not ascertainable ascertainable

v) The Company's premise is located at Tarihal Industrial Area, Tarihal, Hubli, which was earlier covered under the jurisdiction of Rainal Mandal Panchayat. Subsequently, Rainal Mandal Panchayat was merged with Hubli-Dharwad Municipal Corporation (HDMC), Hubli. Since KIADB had not fully developed this Industrial Estate, it has not handed over the same to HDMC. As such, they were collecting annual maintenance charges. The company has been regular in making the payment of annual maintenance charges to KIADB till 2007-08. Subsequent to the balance sheet date the KIADB has also made claims for maintenance charges and interest totally amounting to Rs. 294,420/- including for prior years. The company is disputing the claim and is in the process of filing a petition for waiver, further HDMC has claimed Rs. 2,11,79,774 (Rs. 19,153,046) towards tax including penalty of Rs. 1,30,97,509 (Rs. 11,151,251) for the period from 1995 to 2008. However, for the year under report property tax of Rs. 87,494 (Rs. 87,494) has been paid to HDMC as per the terms of HDMC for the relevant year. The matter relating to the payment of property tax for the years prior to 2008-09 is disputed through the Greater Hubli-Dharwad Industries Association and the matter is pending before the Government of Karnataka. The company is confident that the claim relating to prior years will be withdrawn and will not be payable. Consequently no provision has been made for the said demand. However, and as a matter of abundant precaution, tax amount based on past demands of the Mandal Panchayat which has been provided in prior years to an extent of Rs. 3,17,972 (Rs. 3,17,972) though not paid, is retained in the books of account.

The management believes, based on internal assessment and/or legal advice, that the probability of an ultimate adverse decision and outflow of resources of the Company is not probable and accordingly, no provision for the same is considered necessary.

3. Considering the business plans made by the Company, improvement in turnover, orders on hand, re-organisation of product mix and with continued support from the Bankers and the Holding Company, the Company expects to recover from the losses. According to the Company considering all the facts and notwithstanding the erosion of net worth the assumption of "Going Concern" is not vitiated.

4. Confirmation of balances from certain Sundry Debtors and Sundry Creditors have been called for and awaited. The company does not expect any material variation in respect of these accounts.

5. The Company has only one business segment viz., Metal Cutting including grinding machines. All sales are in India. Hence the disclosures required under Accounting Standard-17 (Segment Reporting) is not applicable.

---

Mar 31, 2010

1. Contingent Liabilities:

a) Counter guarantees given to the bankers for guarantees given by them on behalf of the company Rs.21,28,775 (Rs.45,22,693).

b) Claim by former employees/casual workers pending before Courts - Estimated Rs.84,331 (Rs.1,973,418).

c) The Company has considered an amount of Rs.1,457,586 (Rs.1,457,586) due from a customer as good of recovery in respect of which the customer has made claim of Rs.7,348,629 for which no provision is made since the matter is pending in court. The company is confident of recovering the dues and that the claim of the customer will not stand.

d) Liability in respect of pending fringe benefit tax, sales tax and entry tax assessments - not ascertainable.

e) The companys premise is located at Tarihal Industrial Area, Tarihal, Hubli, which was earlier covered under the jurisidication of Rainal Mandal Panchayat. Subsequently, Rainal Mandal panchayat was merged with Hubli Dharwad Municipal Corporation (H D M C), Hubli. Since KIADB had not fully developed this Industrial Estate, it has not handed over the same to H D M C. As such, they were collecting annual maintenance charges. The company has been regular in making the payment of annual maintenance charges to KIADB till 2007-08. H D M C has claimed Rs. 1,69,87,774/ - (Rs. 1,56,18,695/-) towards tax including penalty of Rs. 89,04,804/- (Rs. 69,71,236/ -) for the period from 1995 to 2008. However, for the year under report property tax of Rs. 87,498/- (Rs.59,885/-) has been paid to H D M C as per the terms of H DM C for the relevant year. The matter relating to the payment of property tax for the years prior to 2008-09 is disputed through the Greater Hubli-Dharwad Industrial Association and the matter is pending before the Government of Karnataka. The company is confident that the claim relating, to prior years will be withdrawn and will not be payable. Consequently no provision has been made for the said demand. However and as a matter of abundant precaution, tax amount based on past demands of the Mandal Panchayat which has been provided in prior years to an extant of Rs. 317,972 (Rs.317,972) though not paid is retained in the books of account.

Outflow of resources on the above can be determined at the time of settlement of disputes/claim.

2. Loan from The Shamrao Vithal Co-op Bank Ltd., Koppikar Road, Hubli is secured by hypothecation of all present and future goods, book debts, receivables and all other moveable assets. The loan is also guaranteed by corporate guarantee of M/s. N A Sirur (Hubli) Pvt. Ltd. Hubli and personal guarantee of a director. The loan is also secured by charge on immovable properties of the company i.e., Land and Building by deposit of title deeds with the bank dnd existing unencumbered plant and machineries.

3. Considering the business plans made by the Company, orders on hand, recognisation of product mix and with continued support from the Bankers and the holding company, including proposal for reduction of interest rate, the Company expects to recover from the losses. According to the Company and considering all the facts and not withstanding the erosion of net worth the assumption of Going Concern is not vitiated.

NOTES:

a. remuneration as above is as per the limits specified under Schedule XIII to the Companies Act, 1956. In view of the loss, computation of profits under Section 198 read with Section 349 of the Companies Act, 1956 is not applicable.

5. Confirmation of balances from certain sundry debtors and sundry creditors have been called for and awaited. The company does not expect any material variation in respect of these accounts.

6. The company has made purchases from a private company in which a director is interested, for the year under report to an extent of Rs. 477,108/- (150,665/-) and cumulatively Rs.627,773/- and sales to the extent of Rs. 3,215,553/- (1,471,674/-) and cumulatively Rs. 4,687,227/- after the expiry period of the approval u/s 297 of the Companies Act, 1956. The company has made an application before the expiry date to the Central Government for extension and enhancement of the limits. The approval is awaited.

Notes :

The above information has been determined to the extent such parties and other relevant data have been identified by the Company, which has been relied upon by the auditors.

16. Employee Benefits

(a) Defined Contribution Plan :

(b) Defined benefit Plans :

i) The employees gratuity fund scheme and enchashment of earned leave is managed by a trust is a defined benefit plan. The Present value of obligation is determined in terms of their entitlement based on the actual completed service at the end of the year. The details are as under:

Note: Fair value of plan assets above comprises of insurer managed assets of Rs. 7,18,563/- (Rs. 7,84,276) and bank balance of Rs. 20,497/- (Rs. Nil).

ii. The effect of changes in interest cost and acturial gains/losses etc., in respect of Leave Encashment were not separately identifiable in respect of the previous year. The company has obtained the actuarial valuation report with all relevant details for the years under report.

17. The company has only one business segment viz., Metal Cutting including grinding machines. All sales are in India. Hence the disclosures required under Accounting Standard 17 dealing with segment reporting are not applicable.

20. a) Key Management Personnel and their Relatives :

SI No. Name of the Related Party Nature of Relationship

1 Mr. Vikram Sirur Executive Chairman

2 Mrs.Alka Sirur Related to Executive Chairman

3 Mr.Sandeep Sirur Related to Executive Chairman

4 Ms.Neelima Parthiv Hejmadi Related to Executive Chairman

5 Ms.Sheetal Amarnath Savur Related to Executive Chairman

6 Mr. A.R. Menon Executive Director

7 Mr. V.N. Hasalkar Company Secretary

b) Particulars of Holding Company :

Name of the Related Party Relationship

N.A. Sirur (Hubli) Pvt: Ltd. Holding Company

c) Particulars of Companies :

SI. No. Name of the Related Party Relationship

1 Miven Mayf ran Conveyors Pvt. Ltd.,

2 Cotmac Pvt. Ltd., Enterprises over.which key

3 Cotmac Electronics Pvt. Ltd., management personnel and their reatives are able to

4 Cotmac Electronics (Surat) Pvt.Ltd.. exercise significant

5 Cotmac Infotech Pvt. Ltd.,

6 Cotmac Telecom Pvt. Ltd.,

7 Cotmac Electronics (Bangalore) Pvt Ltd.,

8 Cotmac Gastech Pvt. Ltd.,

9 Sirsi Weldaids Pvt. Ltd.,

10 Softech Pvt. Ltd.,

11 Ruris Tecnal Extraction Systems Pvt. Ltd.,

12 Mipro International Pvt. Ltd.,

13 Finearc Systems Pvt. Ltd.,

21. Figures of the previous year have been re-grouped wherever necessary to be in conformity with that of current year and. are shown in brackets.