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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Mold-Tek Technologies Ltd.

Mar 31, 2025

l) Provisions, contingent liabilities & contingent
assets:

The Company recognises provisions when there is
present obligation as a result of past event and it is
probable that there will be an outflow of resources
and reliable estimate can be made of the amount
of the obligation. If the effect of the time value
of money is material, provisions are determined by
discounting the expected future cash flows to net
present value using an appropriate pre-tax discount
rate that reflects current market assessments of
the time value of money and, where appropriate,
the risks specific to the liability. Unwinding of the
discount is recognised in the Statement of Profit
and Loss as a finance cost. Provisions are reviewed
at each reporting date and are adjusted to reflect
the current best estimate.

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

Contingent assets are not recognized in financial
statements since this may result in the recognition
of income that may never be realised.

m) Investments in subsidiary company:

Investments in subsidiary companies are measured
at cost less impairment, if any.

n) Financial instruments:

Financial assets and financial liabilities are
recognised when the Company becomes a party
to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are

directly attributable to the acquisition or issue
of financial assets and financial liabilities (other
than financial assets and financial liabilities at
fair value through profit or loss) are added to or
deducted from the fair value of the financial assets
or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable
to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are
recognised immediately in profit or loss.

Financial assets

(i) Financial assets carried at amortised
cost

A financial asset is subsequently measured at
amortised cost if it is held within a business
model whose objective is to hold the asset in
order to collect contractual cash flows and the
contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on
the principal amount outstanding.

(ii) Financial assets at fair value through other
comprehensive income

A financial asset is subsequently measured
at fair value through other comprehensive
income if it is held within a business model
whose objective is achieved by both collecting
contractual cash flows and selling financial
assets and the contractual terms of the financial
asset give rise on specified dates to cash flows
that are solely payments of principal and
interest on the principal amount outstanding.
Further, in case where the company has made
an irrevocable selection based on its business
model, for its investments which are classified
as equity instruments, the subsequent
changes in fair value are recognized in other
comprehensive income.

(iii) Financial assets at fair value through profit
or loss

A financial asset which is not classified in any
of the above categories are subsequently fair
valued through profit or loss.

(iv) The Company recognizes loss allowances using
the expected credit loss (ECL) model for the
financial assets which are not fair valued
through profit or loss. Loss allowance for
trade receivables with no significant financing
component is measured at an amount equal
to lifetime ECL. For all other financial assets,

expected credit losses are measured at an
amount equal to the 12-month ECL, unless
there has been a significant increase in
credit risk from initial recognition in which
case those are measured at lifetime ECL. The
amount of expected credit losses (or reversal)
that is required to adjust the loss allowance
at the reporting date to the amount that is
required to be recognised is recognized as an
impairment gain or loss in statement of profit
or loss.

Financial liabilities and equity instruments
Classification as debt or equity

Financial liabilities and equity instruments issued
by the Company are classified according to the
substance of the contractual arrangements entered
into and the definitions of a financial liability and
an equity instrument.

Equity instruments

An equity instrument is any contract that evidences
a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments
are recorded at the proceeds received, net of direct
issue costs.

Financial liabilities

Trade and other payables are initially measured
at fair value, net of transaction costs, and are
subsequently measured at amortised cost, using the
effective interest rate method where the time value
of money is significant.

Interest bearing bank loans, overdrafts and unsecured
loans are initially measured at fair value and are
subsequently measured at amortised cost using
the effective interest rate method. Any difference
between the proceeds (net of transaction costs)
and the settlement or redemption of borrowings is
recognised over the term of the borrowings in the
statement of profit and loss.

Derecognition of financial instruments

The Company derecognizes a financial asset when
the contractual rights to the cash flows from the
financial asset expire or it transfers the financial
asset and the transfer qualifies for derecognition
under Ind AS 109. A financial liability (or a part
of a financial liability) is derecognized from the
Company''s balance sheet when the obligation
specified in the contract is discharged or cancelled
or expires.

Fair value of financial instruments

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 general approximation
of value, and such value may or may not be realized.

Offsetting financial instruments

Financial assets and liabilities are offset and the
net amount is reported in the balance sheet where
there is a legally enforceable right to offset the
recognized amounts and there is an intention to
settle on a net basis or realize the asset and settle
the liability simultaneously. The legally enforceable
right must not be contingent on future events
and must be enforceable in the normal course of
business and in the event of default, insolvency or
bankruptcy of the Company or the counterparty.

o) Earnings per share :

The basic earnings per share is computed by
dividing the profit/(loss) for the year attributable
to the equity shareholders by the weighted average
number of equity shares outstanding during the
year. For the purpose of calculating diluted earnings
per share, profit/(loss) for the year attributable to
the equity shareholders and the weighted average
number of the equity shares outstanding during
the year are adjusted for the effects of all dilutive
potential equity shares.

p) Cash and cash equivalents:

Cash and cash equivalents include cash on hand
and demand deposits with banks. Cash equivalents
are short-term balances (with an original maturity
of three months or less), highly liquid investments
that are readily convertible into known amounts of
cash and which are subject to insignificant risk of
changes in value.

q) Transactions in foreign currencies:

The financial statements of the Company are
presented in Indian rupees (''), which is the
functional currency of the Company and the
presentation currency for the financial statements.

Transactions denominated in foreign currencies are
recorded at the exchange rate prevailing on the
date of the transaction.

Foreign currency monetary assets and liabilities such
as cash, receivables, payables, etc., are translated

at year end exchange rates.

Exchange differences arising on settlement of
transactions and translation of monetary items
are recognised as income or expense in the year in
which they arise.

r) Segment reporting - Identification of segments:

An operating segment is a component of the
Company that engages in business activities from
which it may earn revenues and incur expenses,
whose operating results are regularly reviewed by the
company''s chief operating decision maker to make
decisions for which discrete financial information is
available. Based on the management approach as
defined in Ind AS 108, the chief operating decision
maker evaluates the Company''s performance and
allocates resources based on an analysis of various
performance indicators by business segments and
geographic segments.

s) Derivatives:

The Company enters into certain derivative contracts
to hedge risks which are not designated as hedges.
Such contracts are accounted at fair value through
profit or loss and are included in profit and loss
account.

t) Leases:

The Company determines whether an arrangement
contains a lease by assessing whether the fulfilment
of a transaction is dependent on the use of a
specific asset and whether the transaction conveys
the right to use that asset to the Company in return
for payment. Where this occurs, the arrangement
is deemed to include a lease and is accounted for
either as finance or operating lease.

The Company as lessee

Operating lease - Rentals payable under operating
leases are charged to the statement of profit and
loss on a straight line basis over the term of the
relevant lease unless another systematic basis is
more representative of the time pattern in which
economic benefits from the leased asset are
consumed.

The Company as lessor

Operating lease - Rental income from operating
leases is recognised in the statement of profit
and loss on a straight line basis over the term
of the relevant lease unless another systematic
basis is more representative of the time pattern
in which economic benefits from the leased asset

is diminished. Initial direct costs incurred in
negotiating and arranging an operating lease are
added to the carrying value of the leased asset and
recognised on a straight line basis over the lease
term.

u) Dividend distribution:

Dividends paid (including income tax thereon)
is recognised in the period in which the interim
dividends are approved by the Board of Directors,
or in respect of the final dividend when approved by
shareholders.

v) Rounding off amounts:

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
Lakhs as per the requirement of Schedule III, unless
otherwise stated.

w) Standards issued but not yet effective:

There is no such notification which would have been
applicable from April 1, 2024.

3. Use of estimates and critical accounting judgements:

In preparation of the financial statements, the Company
makes judgements, estimates and assumptions about
the carrying values of assets and liabilities that are
not readily apparent from other sources. The estimates
and the associated assumptions are based on historical
experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.

The estimates and the underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimate is revised and future periods affected.

Significant judgements and estimates relating to the
carrying values of assets and liabilities include useful
lives of property, plant and equipment and intangible
assets, impairment of property, plant and equipment,
intangible assets and investments, provision for employee
benefits and other provisions, recoverability of deferred
tax assets, commitments and contingencies.

Nature and purpose of reserves

(i) Capital reserve

This reserve represents the difference between the value of net assets transferred to the company in the course of Business
Combinations and the considerations paid for such combinations.

(ii) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions
of the Companies Act, 2013.

(iii) Share option outstanding account

This reserves relates to stock options granted by the company to employees under the MTTL Employee Stock Option
Scheme.

This reserve is transferred to securities premium or retained earnings on exercise or cancellation of vested options
respectively.

v) Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed
below:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined
benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability
and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon
the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because
in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long
service employee.

30. Financial instruments and risk management
Fair values

1. The carrying amounts of trade payables, other financial liabilities (current), borrowings (current), trade receivables,
cash and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their short
term nature.

2. Borrowings (non-current) consists of loans from banks and other financial assets (non-current) consists of rent
deposits where the fair value is considered based on the discounted cash flow.

3. The fair value of forward foreign exchange contracts is calculated as the present value determined using forward
exchange rates, currency basis spreads between the respective currencies and interest rate curves.

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

Set out below, is a comparision by class of the carrying amounts and fair value of the Company''s financial instruments, other
than those with carrying amounts that are reasonable approximation of fair values:

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

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

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

Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent
limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates
presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale
transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may
be different from the amounts reported at each reporting date. In respect of investments as at the transaction date, the
Company has assessed the fair value to be the carrying value of the investments as these companies are in their initial years
of operations obtaining necessary regulatory approvals to commence their business.

31. Financial risk management

The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity
risk and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the
unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance
of the Company.

(A) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected
by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure.
The sensitivity analyses in the following sections relate to the position as at March 31, 2025 and March 31, 2024. The
analysis exclude the impact of movements in market variables on the carrying values of financial assets and liabilties.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This
is based on the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates
relates primarily to the trade/ other payables, trade/other receivables and derivative assets/liabilities. The
risks primarily relate to fluctuations in US Dollar, EURO, CAD and AUD against the functional currencies of the
Company. The Company''s exposure to foreign currency changes for all other currencies is not material. The
Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate
risks.

The following tables demonstrate the sensitivity to a reasonably possible change in US Dollar, EURO and AUD
exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to
changes in the fair value of monetary assets and liabilities.

The movement in the pre-tax effect is a result of a change in the fair value of monetary assets and liabilities
denominated in US Dollar, EURO, GBP, AUD where the functional currency of the entity is a currency other than
US Dollar, EURO, GBP, AUD
(ill) Interest rate risk

As the Company has no significant interest bearing assets, the income and operating cash flows are substantially
independent of changes in market interest rates.

(B) Credit Risk

Financial assets of the Company include trade receivables, employee advances and bank deposits which represents
Company''s maximum exposure to the credit risk.

With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection
losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in
payments and other relevant factors. The Company''s exposure to credit risk is influenced mainly by the individual
characteristics of each customer. However, management also considers the factors that may influence the credit risk
of its customer base, including default risk associate with the industry and country in which customers operate. Credit
quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined
in accordance with this assessment. With respect to other financial assets viz., loans & advances, deposits with

(ill) Significant estimates and judgements
Impairment of financial assets:

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default
and expected loss rates. The company uses judgement in making these assumptions and selecting the inputs to
the impairment calculation, based on the company''s past history, existing market conditions as well as forward
looking estimates at the end of each reporting period.

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet
obligations when due and to close out market positions. Company''s treasury maintains flexibility in funding by
maintaining availability under deposits in banks.

Management monitors cash and cash equivalents on the basis of expected cash flows.

32. Capital management

A. Capital management and Gearing Ratio

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is debt divided by
total capital. The Company includes within debt, interest bearing loans and borrowings.

40. Note on "Code on Social Security, 2020":

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company
towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social
Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration
by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give
appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to
determine the financial impact are published.

41. Previous year figures have been regrouped/reclassified, wherever necessary, to conform to current year presentation.

As per our report of even date

For Praturi & Sriram, On behalf of the Board of Directors of

Chartered Accountants Mold-Tek Technologies Limited; CIN: L25200TG1985PLC005631

(FRN: 002739S)

Sd/- Sd/- Sd/-

Sri Raghuram PraturiJ.Lakshmana Rao J.Sudha Rani

Partner Chairman & Managing Director Wholetime Director

M.No. 221770 DIN: 00649702 DIN: 02348322

Sd/- Sd/-

Place: Hyderabad D.Sarvesh Thakur Vikram Singh

Date : 29.05.2025 Chief Financial Officer Company Secretary

Mar 31, 2024

As per the Scheme of Arrangement approved by the Honourable High court of Andhra Pradesh vide its order dated 25th July, 2008, share capital of the company was restructured into 30,90,024 equity share of ''10 each consequent to the demerger of the plastics division of the company into a separate company, viz., Mold-Tek Plastics Limited (since renamed as, Mold-Tek Packaging Limited). Pursuant to the Shareholders approval dated 3 Feb 2016, Company''s Equity shares of ''10/- each were split into five Equity shares of ''2/- each fully paid up, resulting in increase in no of shares from 53,11,056 equity shares of ''10/- each to 2,65,55,280 equity shares of ''2/- each.

2,27,795 equity shares of ''2 each issued at a premium of ''10.20 per share on 20th April 2016 by way of Employees Stock Option Scheme.

2,86,232 equity shares of ''2 each issued at a premium of ''12.60 per share on 23rd Feb 2017 by way of Employees Stock Option Scheme.

20,000 equity shares of ''2 each issued at a premium of ''12.60 per share on 12th May 2017 by way of Employees Stock Option Scheme.

1,11,490 equity shares of ''2 each issued at a premium of ''10.20 per share on 20th August 2017 by way of Employees Stock Option Scheme.

2,20,690 equity shares of ''2 each issued at a premium of ''12.6 per share on 16th November 2017 by way of Employees Stock Option Scheme.

22,825 equity shares of ''2 each issued at a premium of ''12.60 per share on 2nd December 2017 by way of Employees Stock Option Scheme.

1,18,295 equity shares of ''2 each issued at a premium of ''10.20 per share on 30th May 2018 by way of Employees Stock Option Scheme.

2,83,721 equity shares of ''2 each issued at a premium of ''12.60 per share on 09th November 2018 by way of Employees Stock Option Scheme.

1,07,950 equity shares of ''2 each issued at a premium of ''33.00 per share on 10th October 2019 by way of Employees Stock Option Scheme.

37,200 equity shares and 49,680 equity shares of ''2 each issued at a premium of ''33.00 per share, on 23rd October 2020 and 12th February 2021 respectively by way of Employees Stock Option Scheme.

2,01,405 equity shares of ''2 each issued at a premium of ''33.00 per share, on 2nd September 2021 by way of Employees Stock Option Scheme.

1,48,499 equity shares of ''2 each issued at a premium of ''68.00 per share, on 23rd April, 2023 by way of Employees Stock Option Scheme.

(D) MTTL Employee Stock Option Scheme

1,50,000 Options have been granted to employees on 21st April 2010 under the Employees Stock Option scheme, in accordance with the guidelines issued by Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, at the rate of ''28/- per option.

1,13,925 Options have been granted to employees on 2nd March 2015 under the Employees Stock Option scheme, in accordance with the guidelines issued by Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, at the rate of ''61/- per option.

2.00. 000 Options have been granted to employees on 3rd August 2015 under the Employees Stock Option scheme, in accordance with the guidelines issued by Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, at the rate of ''73/- per option.

6.00. 495 Options have been granted to employees on 23rd February 2022 under the Employees Stock Option scheme, in accordance with the guidelines issued by Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999. at the rate of ''68/- per option.

(E) Terms/Rights attached to equity shares

The Company has only one class of equity shares having a face value of ''2/- each. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserves

(i) Capital reserve

This reserve represents the difference between the value of net assets transferred to the company in the course of Business Combinations and the considerations paid for such combinations.

(ii) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

(ill) Share option outstanding account

This reserves relates to stock options granted by the company to employees under the MTTL Employee Stock Option Scheme.

This reserve is transferred to securities premium or retained earnings on exercise or cancellation of vested options respectively.

(iv) General reserve

General reserve is used for strengthening the financial position and meeting future contingencies and losses.

(v) Retained earnings

This reserve represents the cumulative profits of the company and effects of remeasurment of defined benefit obligations. This reserve is utilised in accordance with the provisions of Companies Act 2013.

(vi) Equity instruments through Other Comprehensive Income

This reserve represents the cumulative gains/loss (net) arising on fair valuation of Equity Instruments, net of amounts reclassified, if any, to retained earnings when those instruments are disposed off.

(vii) Share Application Money Pending Allotment:

This represents money received towards ESOP''s exercised during March, 2024 and allotted in April 2024.

29. Employee benefits

(i) Leave obligations

The leave obligation covers the Company''s liability for earned leave which is funded by Life Insurance Corporation of India.

(ii) Defined contribution plans

The Company has defined contribution plans, i.e. Provident fund. Contributions are made to provident fund at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contributions plans is as follows:

(ii) Post- employment obligations a) Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Company operates post retirement gratuity plan with Life Insurance Corporation of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Fair value of plan assets â 100% with LIC of India

Expected contributions to post- employment benefit plans of gratuity for the year ending 31 March 2025 are Rs. 279.27 Lakhs (Approx).

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

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

30. Financial instruments and risk management Fair values

1. The carrying amounts of trade payables, other financial liabilities (current), borrowings (current), trade receivables, cash and cash equivalents, other bank balances and loans are considered to be the same as fair value due to their short term nature.

2. Borrowings (non-current) consists of loans from banks and other financial assets (non-current) consists of rent deposits where the fair value is considered based on the discounted cash flow.

3. The fair value of forward foreign exchange contracts is calculated as the present value determined using forward exchange rates, currency basis spreads between the respective currencies and interest rate curves.

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

Set out below, is a comparision by class of the carrying amounts and fair value of the Company''s financial instruments, other than those with carrying amounts that are reasonable approximation of fair values:

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

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

Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date. In respect of investments as at the transaction date, the Company has assessed the fair value to be the carrying value of the investments as these companies are in their initial years of operations obtaining necessary regulatory approvals to commence their business.

31. Financial risk management

The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity risk and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

(A) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure. The sensitivity analyses in the following sections relate to the position as at March 31, 2024 and March 31, 2023.

The analysis exclude the impact of movements in market variables on the carrying values of financial assets and liabilties .

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2024 and 31 March 2023.

(i) Foreign currency exchange rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the trade/ other payables, trade/other receivables and derivative assets/liabilities. The risks primarily relate to fluctuations in US Dollar, EURO, GBP, CAD and AUD against the functional currencies of the Company. The Company''s exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

The following tables demonstrate the sensitivity to a reasonably possible change in US Dollar, EURO, AUD and GBP exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities.

The movement in the pre-tax effect is a result of a change in the fair value of monetary assets and liabilities denominated in US Dollar, EURO, GBP, AUD where the functional currency of the entity is a currency other than US Dollar, EURO, GBP, AUD (ill) Interest rate risk

As the Company has no significant interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates.

(B) Credit Risk

Financial assets of the Company include trade receivables, employee advances and bank deposits which represents Company''s maximum exposure to the credit risk.

With respect to credit exposure from customers, the Company has a procedure in place aiming to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. With respect to other financial assets viz., loans & advances, deposits with

government, the credit risk is insignificant since the loans & advances are given to its employees only and deposits are held with reputable banks. The credit quality of the financial assets is satisfactory, taking into account the allowance for credit losses.

(ill) Significant estimates and judgements Impairment of financial assets:

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when due and to close out market positions. Company''s treasury maintains flexibility in funding by maintaining availability under deposits in banks.

32. Capital management

A. Capital management and Gearing Ratio

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is debt divided by total capital. The Company includes within debt, interest bearing loans and borrowings.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2024 and 31 March 2023.

38. Segment Information

a) The Company''s Executive Chairman, Managing Director and Chief Financial officer examine the Company''s performance from a service perspective and have identified one operating segment viz Engineering Services. Hence segment reporting is not given.

b) Information about products:

Revenue from external customers - Sale of Services '' 14617.23 Lakhs

The Group has made external sales to the following customers meeting the criteria of 10% or more of the entity revenue Customer 1 - '' 12437.42 Lakhs.

40. Note on "Code on Social Security, 2020":

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

41. Previous year figures have been regrouped/reclassified, wherever necessary, to conform to current year presentation.

Mar 31, 2023

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Rental expense recorded for short-term leases was '' 14.38 lakhs for the year ended March 31,2023 and '' 26.94 lakhs for the year ended March 31,2022.

Pursuant to the Shareholders approval dated 3 Feb 2016, Company''s Equity shares of '' 10/- each were split into five Equity shares of '' 2/- each fully paid up, resulting in increase in no of shares from 53,11,056 equity shares of '' 10/- each to 2,65,55,280 equity shares of '' 2/- each.

2,27,795 equity shares of '' 2 each issued at a premium of '' 10.20 per share on 20th April 2016 by way of Employees Stock Option Scheme.

2,86,232 equity shares of '' 2 each issued at a premium of '' 12.60 per share on 23rd Feb 2017 by way of Employees Stock Option Scheme.

20,000 equity shares of '' 2 each issued at a premium of '' 12.60 per share on 12th May 2017 by way of Employees Stock Option Scheme.

1,11,490 equity shares of '' 2 each issued at a premium of '' 10.20 per share on 20th August 2017 by way of Employees Stock Option Scheme.

2,20,690 equity shares of '' 2 each issued at a premium of '' 12.6 per share on 16th November 2017 by way of Employees Stock Option Scheme.

22,825 equity shares of '' 2 each issued at a premium of '' 12.60 per share on 2nd December 2017 by way of Employees Stock Option Scheme.

1,18,295 equity shares of '' 2 each issued at a premium of '' 10.20 per share on 30th May 2018 by way of Employees Stock Option Scheme.

2,83,721 equity shares of '' 2 each issued at a premium of '' 12.60 per share on 09th November 2018 by way of Employees Stock Option Scheme.

1,07,950 equity shares of '' 2 each issued at a premium of '' 33.00 per share on 10th October 2019 by way of Employees Stock Option Scheme.

37,200 equity shares and 49,680 equity shares of '' 2 each issued at a premium of '' 33.00 per share, on 23rd October 2020 and 12th February 2021 respectively by way of Employees Stock Option Scheme.

2,01,405 equity shares of '' 2 each issued at a premium of '' 33.00 per share, on 2nd September 2021 by way of Employees Stock Option Scheme.

(D) MTTL Employee Stock Option Scheme

(E) Terms/Rights attached to equity shares

The Company has only one class of equity shares having a face value of '' 2/- each. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserves

(i) Capital reserve

This reserve represents the difference between the value of net assets transferred to the company in the course of Business Combinations and the considerations paid for such combinations.

(ii) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

(iii) Share option outstanding account

This reserves relates to stock options granted by the company to employees under the MTTL Employee Stock Option Scheme.

This reserve is transferred to securities premium or retained earnings on exercise or cancellation of vested options respectively.

(iv) General reserve

General reserve is used for strengthening the financial position and meeting future contingencies and losses.

(v) Retained earnings

(vi) Equity instruments through Other Comprehensive Income

18.1 a) Working capital loans represent loans from ICICI Bank Ltd and CITI Bank N.A. The loans are repayable on demand and are secured by

(i) Pari-passu charge on present and future stocks, book debts and property, plant and equipment of the Company and first charge on immovable property belonging to the Company located at Municipal No. 8-2-293/82/A/700 and 8-2-293/82/A/700/1 in S.No. 403/1/OLD, 120(NEW) of Shaikpet Village and 102/1 of Hakeempet Village Road No.36, Jubilee Hills, Hyderabad.

(ii) Personal guarantees of Directors namely Mr J Lakshman Rao, Mr A Subramanyam and Mr P.Venkateswara Rao. b) The above loans carry floating rate of interest ranging from 8% p.a to 9% p.a.

31. Employee benefits

(i) Leave obligations

The leave obligation covers the Company''s liability for earned leave which is funded by Life Insurance Corporation of India.

(ii) Post- employment obligations a) Gratuity

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

32. Financial instruments and risk management Fair values