(i) The amount due from Subsidiary i.e. Bemco Fliudtechnik LLP is K 15.05 lakhs (P.Y ^ 10.16 Lakhs) in which one of the director is also a partner in LLP. (Refer Note 5.41 - Related Party Transactions)

(ii) Other than above, no trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

The amount due from Subsidiary i.e. Bemco Fliudtechnik LLP is ^ 39.07 Lakhs (P.Y ^ 81.53 Lakhs) in which one of the director is also a partner in LLP. (Refer Note 5.40 - Related Party Transactions)

Note (ii)

A case_wgs filed for the recovery of the doubtful advance against B. H. Bhattiwala ("Respondent") in the court of the Hon"ble Prl. District Judge, Belgaum. The order was passed on 30^th August, 2011 in favour of Bemco Hydraulics Limited directing the respondent to pay a sum of K 5 Lakhs along with interest at 6% per annum amounting to ^ 2.73 Lakhs i.e. total of ^ 7.73 Lakhs by delivery of any property specifically decreed or by attachment or sale of Moveable or immovable properties.

However, when summons were issued to the respondent it was found that the respondent has passed away and his spouse and legal hiers have not responded to the summons yet.

Therefore, on basis of prudence the claim awarded has not been recognised as income niether the provision against the debt (las been reversed considering the uncertainity in relation to receipt of the claims.

Note (iii)

Included in above is amount of ^ 1.05 Lakhs deposited against the total demand of ^ 2.10 Lakhs for Entry Tax due under the Karnataka Tax on Entry of Goods Act, 1979 for financial years 2006-07, 2007-08, 2008-09 & 2009-10. An appeal has been preferred with the Hon' ble Joint Commissioner of Commercial Taxes (Appeals), the case is still pending in the forum. Also refer note no. 5.28(a).

The Company has Equity Shares having par value of ^ 10/- per share. Each holder of Equity Shares is entitled to one vote per share. Holders of Equity Shares are entitled to dividend, in proportion to the paid up amount, proposed by Board of Directors subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts, in proportion to their shareholding.

Nature and purpose of reserves:

1. Capital Redemption Reserve (CRR):

The Company is created Capital Redemption Reserve form it's Retained for redemption of Cumulative Redeemable Preference Shares. Capital Redemption Reserve can be utilised as per the provisions of the Companies Act, 2013.

2. Security Premium:

Security premium is created when shares are issued at premium. The reserve can be utilised in accordance with the provisions of the Act.

3. General Reserve

General reserve was created from time to time by way of transfer of profits from retained earnings for appropriation purposes. The reserve can be utilised as per the provisions of the Act.

4. Capital Reserve:

On the date of transition to Ind AS the balance outstanding in the Revaluation Reserve against Property, Plant & Equipment as per Previous GAAP has been transferred to the Capital Reserve.

5. Retained Earnings -

Retained earnings are the accumulated profits earned by the Company till date, less transfer to general reserves, dividend (including dividend distribution tax) and other distributions made to the shareholders. Retained Earnings can be utilised as per the provisions of the Act.

y

Rights, Preferences and Restrictions attached to Preference Shares of ^ 100/- each

The dividend on preference shares proposed by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. Each holder of Preference Share is entitled to one vote per share. In the event of liquidation of the Company before redemption of preference shares, the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital but shall not be entitled to any surplus arising thereto.

The rights of preference shares are further governed by Section 47 of the Companies Act, 2013.

Details of continuing defaults in respect of Deferred Payment Liabilities Terms of Repayment

The total outstanding with respect to Deferred Payment Liabilities are 2.85 Lakhs Euros ( Previous Year: 2.85 Lakhs).

The Company has a continuing default of ^ 254.79 Lakhs (Previous Year ^ 252.97 Lakhs) in respect of deferred payment liabilities as at the balance sheet date which is included in the amount 'Current portion of deferred liability for Intangible Assets' as disclosed under note no. 5.22.

General Description, details of security and other conditions attaching to:

BANK OF BARODA

Cash Credit (CC) availed from Bank of Baroda is secured by hypothecation of Goods/ Book Debts/ Current Assets/ Movable Machinery/ Vehicles (Other than those financed by Other Banks / NBFCs)/ other fixed assets. The CC is further secured by Eqitable mortgage of self-occupied Industrial Property located at S.No.691, New No.343 at Majagaon Udyambag, Belgaum,Karnataka-590008. The tenure of twelve months subject to payable on demand/ annual review. There is an unconditional and irrevocable personal gurantee of two directors of the company {Refer Note 5.40} and the loan is further secured by corporate guarantee given by two companies, Mohta Capital Pvt Ltd(MCPL) and Sri Ramachandra Enterprises Pvt Ltd (SRE). The faciliy amount is ^ 1250 Lakhs with a floaing interest rate of 9.25% (0.50% spread over and above Bank's BRLLR and SP Rate. The interest is payable monthly.

(2) Nature of Provisions

(a) Product warranties: The Company gives warranties on certain products and services in the nature of repairs / replacement, which fail to perform satisfactorily during the warranty period. Provisons made represents the amount of the expected cost of meeting such obligation on account of rectification/ replacement. The timing of outflows is expected to be within a period of 2 years.

(b) Provision for Leave Encashment includes annual leave and vested long service leave entitlement accrued and compensation claims made by employees.

(iii) Spl. C. S. No. 546/2016

One of the Parties of the company namely "Mahesh Enterprises" has filed a suit for recovery of K 69.20 Lakhs (Previous Year: ^ 69.20 lakhs) in the Hon'ble Civil Court of Nagpur. The case is still pending.

(iv) A Party of the company namely "D. Khandelwal Steel Corporation Limited" has filed a suit for recovery of ^ 146.36 Lakhs (Previous Year* ^ 146.36 Lakhs) in the Hon'ble Civil Court of Nagpur. The case is till pending.

Note: T fd Company has been advised that the above demands/ cases is likely to be either deleted or substantially reduced and shall not have any material adverse effect on its financial position. Hence, No provision has been created for the same.

b) COMMITMENTS

Capital commitment (net of advance) Rs. Nil. '

All plan assets are maintained in a trust fund managed by a public sector insurer viz; LIC of India (LIC). LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years.

(vii) The overall expected rate of return on assets is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

ix) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

x) Retirement age 60 years or 70 years if extension is given.

xi) Average Duration

Weighted average duration of the plan (based on discounted cash flows using mortality, withdrawal and interest rate) is 10.79

xii) Expected future benefit payments

Ýyie following benefits payments, for each of the next five years and the aggregate five years there after, are expected to be paid:

xiii) The above cash flows have been arrived at based on the demographic and financial assumptions as mentioned earlier.

xiv) Expected contributions for the next year

The company has contributed Rs. 27.72 Lakhs to its gratuity fund in 2024. The Company intends to contribute Rs. 30.00 Lakhs towards its gratuity fund in 2025.

xv) Sensitivity Analysis ,

Sensitivity analysis indicates the influence of a reasonable change in certain significant assumptions on the outcome of the Defined benefit obligaion (DBO) and aids in understanding the uncertainty of reported amounts. Sensitivity analysis is done by varying one parameter at a time and studying its impact,

Age of the members at the valuation date is taken as their nearest age at that date,

xvi) Risk exposure and asset liability matching

Provision of a defined benefit scheme poses certain risks, some of which are detailed here under, as companies take on uncertain long term obligations to make future benefit payments.

1) Liability risks

(i) Asset-Liability Mismatch Risk

Risk,which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the

• . defined benefit liabilities, the company is successfully able to neutralize valuation swings caused by interest rate movements.

- •*

Ý^J ' Hence companies are encouraged to adopt asset-liability management.

(ii) Discount Rate Risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise can have a significant impact on the defined benefit liabilities.

(iii) Future Salary Escalation and Inflation Risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management's discretion may lead to uncertainities in estimating this increasing risk.

2) Asset Risks

All plan assets are maintained in a trust fund managed by a public sector insurer viz; LIC of India. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years.

The company has opted for a traditional fund where in all assets are invested primarily in risk averse markets. The company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

C. Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions.

The amounts outstanding are unsecured and will be settled in cash. No expense has been recognised in the current or prior years for bad & doubtful debts in respect of the amounts owed by related parties.

No guarantees have been given during the year.

D. Details of any Guarantees Given or Received

Two Directors; of the Company including Shri Anirudh Mohta (Managing Director) have given Personal Gurantee for the following Financial Arrangernerits:

(i) Cash Credit facility availed from Bank of Baroda.

Note: The aforesaid credit facilities is also secured by corporate guarantee from Sri Ramachandra Enterprises Private Limited and Mohta Capital Private Limited. For details of terms and tenure of the above financial Arrangements kindly Refer Note 5.22.

Foreign Currency Sensitivity Analysis

The Company is mainly exposed to the currency : EURO

The following table details the Company's sensitivity to a 5% increase and decrease in the K against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the K strengthens 5% against the relevant currency. For a 5% weakening of the * against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

Equity Risk

There is no material equity risk relating to the Companys¹ equity investments which are detailed in note 5.04 "Investments". The Companys¹ equity investments majorly comprises of Long Term Investments rather than trading purpose.

Interest Risk

There is no material interest risk relating to the Company's financial liabilities which are detailed in Note 5.16, 5.21 and 5.23. Credit Risk ,

Credit Risk is ^e-risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit Risk arises from Companys' activities in investments and other receivables from customers. The Company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The Company generally has set a policy of receiving 80 percent of the sale proceeds as an advance after the orders get finalized and remaining 20 percent at the time of dispatch and commissioning.

Liquidity Risk

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company's short-term,and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

All current financial liabilities are repayable within one year. The contractual maturities of non current liabilities are disclosed in Note No. 5.17.

Liquidity Risk Table

The following table detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial laibilities based on the earliest date on which the company can be required to pay.

5.43 Capital Management

The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors, creditors and market confidence and to sustain future development and growth of its business. In order to maintain the capital structure, the Company monitors the return on capital, as well as the level of dividends to equity shareholders. The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to all its shareholders. For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves and debt includes non-current borrowings, current borrowings and certain components of other financial liabilities.

Level 1: Quoted Prices in active markets for identical assets;

Level 3: Inputs other than observable market data, are used for deriving fair value.

Disclosure as per PARA 91 of Ind As 113 "Fair Value Measurnments"

(a) The investments in quoted and unquoted equity shares are measured at fair value on recurring basis. The quoted shares are valued at the closing price available on the recognised stock exchange.

(b) Break up value (Level III inputs) is used to measure unquoted equity shares on a recurring basis . The difference between the last year fair value and current year is charged to Other Comprehensive Income. (Refer Note 5.37}

5.45 Segment Information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company operates only in one Business Segment i.e. manufacturing and sale of hydraulic press machine and related equipments' which primarily includes Hydraulic Presses, Equipments and Portable rerailing equipmets and the activities incidental thereto, hence does not have any reportable Segments as per Ind AS 108 "Operating Segments".

(ii) Information about Geographical Area as Required by PARA 33

(a) Reveunues From External Customers Amount of Revenue ( ^ in Lakhs)

(I) Attributed to the entity's country of domicile 6,730.69 (Previous Year: 4557.74)

(II) Attributed to all foreign countries in total from which the entity 404.43 (Previous Year; 47.51) derives revenues

Note 1: Revenues from external customers attributed to an individual foreign country were not material hence have not been separately disclosed.

Note 2: Revenues from external customers to individual countries are attributed based on the destination of export sales made.

(b) All Non-Current Assets held by the entity, required to be disclosed as per this para are located in the entity's country of domicile.

(iii) Information about Major Customers as Required by PARA 34

Revenue from One customers of the company's Rerailing equipment business represent ^ 1,117.56 Lakhs (Previous Year ^ 684.68Lakhs ) of the company's total revenue which is more than 10% of the company's total revenue.

5.46 A. Revenue Stream

The Company is principally engaged in the business of manufacture of wide range of Portable re-railing equipment, Light weight re-railing equipment, Hydraulic Re-railing equipment, Re-railing Systems, Hydraulic press, Wheel fitting press and Straightening press. Sale of Service includes installation charges. Other sources of revenue include Freight, Packing Charges, Annual Service Contracts etc.

5.47 Additional Regulatory Information as required by Schedule III to the Companies Act, 2013:

a) The title deeds of the Immovable Property (other than properties where the company is the lessee and the lease arrangements are duly executed in favour of the lessee) are held in the name of the Company.

b) The company does not have any investment property at the end of the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

c) The company has not revalued its Property, Plant and Equipment during the current year and previous year.

d) The company has not granted any loans or advances in the nature of loan to promoters, directors, KMP and the related parties (as define4>’under Companies Act, 2013), either severally or jointly with any other person, which are repayable on demand or without specifying any terms or period of repayment during the curent and the previous year. Accordingly, disclosures as required under this para is not applicable.

e) The company does not have any capital work-in-progress at the end of the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

f) The company does not have any intagible asset under development at the end of the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

g) There has been no proceeding initiated or pending against the company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and the rules made thereunder during the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

h) The company has not been declared as wilful defaulter by any bank or financial institution or other lender during the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

i) The company has not entered into any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the current and previous year. Accordingly, disclosures as required under this para is not applicable.

j) There are no charges or satisfaction pending for registration with the Registrar of Companies beyond the statutory period. Accordingly, disclosures as required under this para is not applicable.

k) The company only has one wholly owned subsidiary and accordingly compliance with number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on Number of Layers) Rules, 2017 is not applicable.

l) Analytical Ratios

m) No Scheme of Arrangements has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

n)

(A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) during the current year and previous year with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) during the current year and previous year with the understanding (whether recorded in writing or otherwise) that the company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

o) There are no transactions not recorded in the books of accounts that has been surrendered or disclosed as income in the books of account during the current year and previous year in the tax assessment under the Income Tax Act, 1961.

p) The Company is covered under Section 135 of Companies Act, 2013. Disclosures as required as follows:

q) The Company has not traded or invested in Crypto Currency or Virtual Currency during the current year and previous year and therefore, the disclosures as sought is not applicable.

5.48 Proposed Dividend for F.Y. 2023-24 is ^ 2.00 per equity share of face value of ^ 10 each amounting to ^ 43.734 lakhs (Previous Year -Nil), subject to approval at the insuring AGM of the Company and here is not recognised as liability.

5.49 The figures for the corresponding previous year have been regrouped/ reclassified wherever necessary, to make them comparable.

5.50 All amounts in the financial statement are in ^ Lakhs.