l) Provisions and contingencies

A provision is recognised when the company has
a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation.

When the company expects some or all of a
provision to be reimbursed, the reimbursement is
recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense
relating to a provision is presented in the statement
of profit and loss net of any reimbursement.

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

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of
one or more uncertain future events beyond the
control of the Company or a present obligation that
is not recognized because it is not probable that an
outflow of resources will be required to settle the
obligation. A contingent liability also arises where
there is a liability that cannot be recognized because
it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its
existence in the financial statements.

Contingent assets are not recognised in financial
statements, unless they are virtually certain.
However, contingent assets are disclosed where
inflow of economic benefits are probable.

Provisions, contingent liabilities and contingent
assets are reviewed at each balance sheet date.

m) Fair value measurement

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement
is based on the presumption that the transaction
to sell the asset or transfer the liability takes place
either:

¦ In the principal market for the asset or liability,
or

¦ In the absence of a principal market, in the
most advantageous market for the asset or
liability

The company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.

¦ Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

¦ Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable

¦ Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable

For assets and liabilities that are recognised in
the financial statements on a recurring basis, the
company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the
company has determined classes of assets and
liabilities based on the nature, characteristics and
risks of the asset or liability and the level of the fair
value hierarchy.

n) Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Initial recognition and measurement

Financial instruments are initially recognised when
the entity becomes party to the contract.

Financial instruments are measured initially at
fair value adjusted for transaction costs that
are directly attributable to the origination of the
financial instrument where financial instruments
not classified at fair value through profit or loss.
Transaction costs of financial instruments which
are classified as fair value through profit or loss are
expensed in the statement of profit and loss.

Subsequent measurement of financial assets

For the purposes of subsequent measurement,
the financial assets are classified in the following

categories based on the company''s business
model for managing the financial assets and the
contractual terms of cash flows:

¦ those to be measured subsequently at fair
value; either through OCI or through profit or
loss

¦ those measured at amortised cost

For assets measured at fair value, changes in
fair value will either be recorded in the statement
of profit and loss or OCI. For investments in debt
instruments, this will depend on the business
model in which investment is held. For investments
in equity instruments, this will depend on whether
the company has made an irrevocable election at
the time of initial recognition to account for equity
investment at fair value through OCI.

The company reclassifies debt investments when
and only when its business model for managing
those assets changes.

Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised
cost if both the following conditions are satisfied:

¦ The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

¦ The contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

A gain or loss on a debt investment that is
subsequently measured at amortised cost and is
not part of hedging relationship is recognised in
the statement of profit and loss when the asset
is derecognised or impaired. Interest income from
these financial assets is included in finance income
using effective interest rate (EIR) method.

Debt instruments at fair value through other
comprehensive income (FVTOCI)

Assets that are held for collection of contractual
cash flows and for selling the financial assets,
where the assets'' cash flows represent SPPI,
are measured at FVTOCI. The movements in the
carrying amount are recognised through OCI,
except for the recognition of impairment gains and
losses, interest revenue and foreign exchange gain
or losses which are recognised in the statement
of profit and loss. When the financial asset is
derecognised, the cumulative gain or loss previously
recognised in OCI is reclassified from equity to

the statement of profit and loss and recognised
in other gains/ losses. Interest income from these
financial assets is included in other income using
EIR method.

Debt instruments at fair value through profit or
loss (FVTPL)

Assets that do not meet the criteria for amortised
cost or FVTOCI are measured at FVTPL. A gain
or loss on debt instrument that is subsequently
measured at FVTPL and is not a part of hedging
relationship is recognised in the statement of profit
and loss within other gains/ losses in the period in
which it arises. Interest income from these financial
assets is included in other income.

Equity investments

All equity investments in the scope of Ind AS 109
Financial Instruments are measured at fair value.
Equity instruments which are held for trading
are classified as at FVTPL. For all other equity
instruments, the company may make an irrevocable
election to recognise subsequent changes in
the fair value in OCI. The company makes such
election on an instrument-by-instrument basis. The
classification is made on initial recognition and is
irrevocable.

If the company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends,
are recognized in OCI. There is no recycling of the
amounts from OCI to the statement of profit and
loss, even on sale of equity instrument.

Equity instruments included within the FVTPL
category are measured at fair value with all
changes recognised in the statement of profit and
loss.

Subsequent measurement of financial liabilities

For the purposes of subsequent measurement, the
financial liabilities are classified in the following
categories:

¦ those to be measured subsequently at fair
value through profit or loss (FVTPL)

¦ those measured at amortised cost

Following financial liabilities will be classified under
FVTPL:

¦ Financial liabilities held for trading

¦ Derivative financial liabilities

¦ Liability designated to be measured under
FVTPL All other financial liabilities are classified
at amortised cost.

For financial liabilities measured at fair value,
changes in fair value will recorded in the statement
of profit and loss except for the fair value changes
on account of own credit risk are recognised in
Other Comprehensive Income (OCI).

Interest expense on financial liabilities classified
under amortised cost category are measured
using effective interest rate (EIR) method and are
recognised in statement of profit or loss.

Derecognition of financial instruments

The company derecognises a financial asset when
the contractual rights to the cash flows from the
financial asset expire, or it transfers the rights to
receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards
of ownership of the financial asset are transferred
or in which the company neither transfers nor
retain substantially all of the risks and rewards
of ownership and it does not retain control of the
financial asset.

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the terms
of an existing liability are substantially modified,
such an exchange or modification is treated as
the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
statement of profit or loss.

Impairment of financial assets

The company applies Expected Credit Loss
(ECL) model for measurement and recognition of
impairment loss on the financial assets mentioned
below:

¦ Financial assets that are debt instrument and
are measured at amortised cost

¦ Financial assets that are debt instruments and
are measured as at FVOCI

¦ Trade receivables under Ind AS 18

The impairment methodology applied depends on
whether there has been a significant increase in
credit risk. Details how the company determines
whether there has been a significant increase in
credit risk is explained in the respective notes.

For impairment of trade receivables, the company
chooses to apply practical expedient of providing
expected credit loss based on provision matrix and

does not require the Company to track changes
in credit risk. Percentage of ECL under provision
matrix is determined based on historical data as
well as futuristic information.

m) Dividend Distribution

The company recognises a liability to make cash
distributions to equity holders when the distribution
is authorised and approved by the shareholders.
Any interim dividend paid is recognised on
approval by Board of Directors. Dividend payable
and corresponding tax on dividend distribution is
recognised directly in equity.

n) Earnings per share (EPS)

Basic EPS is calculated by dividing the profit for the
year attributable to equity holders of the company
by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the
year and excluding treasury shares.

Diluted EPS adjust the figures used in the
determination of basic EPS to consider

¦ The after-income tax effect of interest and
other financing costs associated with dilutive
potential equity shares, and

¦ The weighted average number of additional
equity shares that would have been
outstanding assuming the conversion of all
dilutive potential equity shares

o) Operating Segment

Ind AS 108 Operating Segments requires
Management to determine thereportablesegments
for the purpose of disclosure in financial statements
based on the internal reporting reviewed by Chief
Operating Decision Maker (CODM) to assess
performance and allocate resources. The standard
also requires Management to make judgments
with respect to aggregation of certain operating
segments into one or more reportable segment.

The Company has determined that the Chief
Operating Decision Maker (CODM) is the Board
of Directors (BoD). Operating segments used to
present segment information are identified based
on the internal reports used and reviewed by the
BoD to assess performance and allocate resources.

1.1) Significant accounting judgments, estimates and
assumptions

The preparation of the financial statements in
conformity with Ind AS, requires the management to

make judgments, estimates and assumptions that
affect the amounts of revenue, expenses, current
assets, non-current assets, current liabilities, non¬
current liabilities, disclosure of the contingent liabilities
and notes to accounts at the end of each reporting
period. Actuals may differ from these estimates.

Judgements

In the process of applying the Company''s accounting
policies, management have made the following
judgements, which have the most significant effect on
the amounts recognised in the financial statements:

Useful life, method and residual value of property,
plant and equipments

Plant and machineries and factory buildings contribute
significant portion of the Company''s Property, plant
and equipment. The Company estimates the useful
life and residual value of assets. However the actual
useful life and residual value may be shorter / less or
longer / more depending on technical innovations and
competitive actions. Further, Company is depreciating
its plant and machineries and factory buildings by
using straight line method based on the management
estimate that repairs / wear and tear to plant and
machineries and factory buildings are consistent over
useful life of assets.

Estimates and assumptions

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Company based its estimates and
assumptionsonparametersavailablewhenthefinancial
statements are prepared. Existing circumstances and
assumptions about future developments, however,
may change due to market conditions or circumstances
arising that are beyond the control of the Company.
Such changes are reflected in the assumptions when
they occur.

Defined benefit obligation

The cost of the defined benefit plans and other post¬
employment benefits and the present value of the
obligations are determined using actuarial valuation.
An actuarial valuation involves making various
assumptions that may differ from actual developments
in the future. These include the determination of the
discount rate, future salary increases, mortality rates
and future post-retirement medical benefit increase.
Due to the complexities involved in the valuation and
its long-term nature, a defined benefit obligation is

highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount
rate. In determining the appropriate discount rate,
management considersthe interest ratesof government
bonds in currencies consistent with the currencies of the
post-employment benefit obligations and extrapolated
as needed along the yield curve to correspond with the
expected term of the defined benefit obligation.

The mortality rate is based on publicly available
mortality tables. Those mortality tables tend to change
only at intervals in response to demographic changes.
Future salary increases are based on the expected
future inflation rates for the country.

Further details about defined benefit obligations are
provided in the respective note prepared elsewhere in
the financial statement.

Deferred Tax

Deferred tax assets are recognised for all deductible
temporary differences including the carry forward of
unused tax credits. Deferred tax assets are recognised
to the extent that it is probable that taxable profit will
be available against which the deductible temporary
differences, and the carry forward of unused tax credits
can be utilized.

Estimation and underlying assumptions are reviewed
on ongoing basis. Revisions to estimates are recognised
prospectively.

Share Issue Expenses: Issue expenses are adjusted
against the Share Premium.

1.2) Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended 31st
March, 2026, MCA has notified following Amendment
to Ind AS, applicable to the Company w.e.f. 1st April,
2025.

- Ind AS - 21 The Effects of Changes in Foreign
Exchange

- Ind AS 12 - Income Taxes relating to International
Tax Reform - Pillar Two Model Rules - Exception to
recognition and disclosure of deferred tax.

- Amendments to Ind AS 7 - Cash flow statement
and

Ind AS 107 - Financial Instrument Disclosures relating
to supplier finance arrangements

Ind AS 1-Presentation of Financial Statements,
Classification of Liabilities as current or non- current
and non- current liabilities with covenants.

The Company has reviewed the new pronouncements
and based on its evaluation has determined that it
does not have any significant impact in its Standalone
financial statements.

Note 30 EARNINGS PER SHARE (EPS):

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit attributable to equity shareholders and the weighted
average number of shares outstanding are adjusted for the effect of all dilutive potential equity shares which includes all
stock options granted to employees. The number of equity shares is the aggregate of the weighted average number of
equity shares and the weighted average number of equity shares which are to be issued in the conversion of all dilutive
potential equity shares into equity shares.

Dilutive potential equity shares are deemed to have been converted at the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined independently for each period presented.

The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables, short term
borrowings and other financial liabilities approximate the carrying amounts because of the short term nature of these
financial instruments.

The amortised cost using effective interest rate (EIR) of non current financial assets consisting of security and term deposits
are not significantly different from the carrying amount.

Financial assets that are neither past due nor impaired includes cash and cash equivalents, security deposits, term deposits
and other financial assets.

The impact of fair value on non current borrowings, non current security deposits and non current term deposits are not
significant and therefore the impact of fair value is not considered for above disclosure.

Note 37. FAIR VALUE HIERARCHY:

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
*Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

*Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

*Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 fair value measurements.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk.
The Company''s risk management is coordinated by the Board of Directors and focuses on securing long term and short
term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk:

Market risk is the risk that the fair value of future cash "flows of a financial instrument will "fluctuate because of changes
in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as
equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative
financial instruments.

(i) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates
primarily to the Company''s long-term debt obligations with floating interest rates.

(ii) Foreign currency risk:

The Company is exposed to foreign currency risk arising mainly on borrowing, export of finished goods and
import of raw material. Foreign currency exposures are managed within approved policy parameters utilising
forward contracts.

(B) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations. Credit risk arises principally from the statutory deposits with regulatory agencies
and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal
to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses
in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial
position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and
institutions and retaining sufficient balances in bank accounts required to meet a month''s operational costs. The
Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is
minimal surplus cash in bank accounts. The Company does not foresee any credit risks on deposits with regulatory
authorities.

(C) Liquidity risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet
its liabilities when due.

Note 39. CAPITAL MANAGEMENT:

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
maximize the shareholder value and to ensure the Company''s ability to continue as a going concern.

The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total
debt mainly comprises of borrowings from banks, financial institutions and Unsecured Loans. The Company manages the
capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of
the underlying assets.

Note 42. ADDITIONAL REGULATORY INFORMATION PURSUANT TO THE REQUIREMENT IN DIVISION II OF SCHEDULE
III TO THE COMPANIES ACT 2013

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Comapny for holding any Benami Property.

(ii) The Comapny does not have any transactions with Companies struck off.

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

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

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

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

(viii) The Company has borrowings from banks and financial institutions on the basis of security of current assets. The
quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in
agreement with the books of accounts.

(ix) The Company have not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

(x) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(xi) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.

(xii) The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of
Companies beyond the statutory period.

(Q) Provisions, Contingent Liabilities and Contingent
Assets:

Provisions involving a 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 recognised nor
disclosed in the financial statements.

Security and Salient Terms:

(a) Rupee loans of INR 3868.02 Lakhs (Previous Year INR 2687.74 Lakhs) exclusive charge by way of hypothecation on
entire stock of Finished goods, Raw material, Stock in trade and Book debts of the Company, present and future. Exclusive
charge by way of Hypothecation of Plant & Machinery of the Company. Corporate Guarantee of Asian Distributors Private
Limited to the extent of market value of collateral proposed to mortgage.

(b) Rupee loans of INR 637.50 Lakhs (Previous Year INR 675.00 Lakhs) fresh additional working capital term loan under
BGECL 1.0 extension scheme 100% guaranteed by NCGTC. Principal to be repaid in 36 monthly installment of INR18.75
Lakhs each plus interest commencing after 24 months from the date of first disbursement.

(c) Rupee loans of INR 314.00 Lakhs (Previous Year INR 700.00 Lakhs) fresh additional packing credit loan

(d) The rates of interest for rupee loan ranges from 9.70% p.a. to 12% p.a.

(B) Defined Benefit Plans :

I. (a) Contribution to Gratuity:

Provision for Gratuity has been made in the accounts based on an actuarial valuation carried out at the close of the
year. The Company has funding arrangement with Birla Sun Life and Life Insurance Corporation of India, except for
Tools Division, in which case it is held under Indian Tool Employee Gratuity Fund, and the liability is discharged to the
employees in the year of retirement / cessation of employment.

Details under Ind AS-19, to the extent applicable is furnished below:

36 fair VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES:

The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables, short term
borrowings and other financial liabilities approximate the carrying amounts because of the short term nature of these financial
instruments.

The amortised cost using effective interest rate (EIR) of non current financial assets consisting of security and term deposits
are not significantly different from the carrying amount.

Financial assets that are neither past due nor impaired includes cash and cash equivalents, security deposits, term deposits
and other financial assets.

The impact of fair value on non current borrowings, non current security deposits and non current term deposits are not
significant and therefore the impact of fair value is not considered for above disclosure.

37 fair VALUE HIERARCHY:

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
*Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

*Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices).

*Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 fair value measurements.

The carrying amounts of borrowings, trade payables, other financial liabilities and other current liabilities are considered to
approximate their fair values due to their short term nature. They are classified as level 3 fair values in the fair value hierarchy
due to the inclusion of unobservable inputs including own and counterparty credit risk.

~| FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES:

The Company is exposed to various financial risks. These risks are categorised into market risk, credit risk and liquidity risk. The
Company’s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash
flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity
price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial
instruments.

(i) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates
primarily to the Company’s long-term debt obligations with floating interest rates.

(ii) Foreign currency risk:

The Company is exposed to foreign currency risk arising mainly on borrowing, export of finished goods and import
of raw material. Foreign currency exposures are managed within approved policy parameters utilising forward
contracts.

(B) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations. Credit risk arises principally from the statutory deposits with regulatory agencies and
also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the
carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial
assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past
experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions
and retaining sufficient balances in bank accounts required to meet a month’s operational costs. The Management
reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash
in bank accounts. The Company does not foresee any credit risks on deposits with regulatory authorities.

(C'') Liquidity risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due.

39 CAPITAL MANAGEMENT:

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 and to ensure the Company’s ability to continue as a going concern.

The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total
debt mainly comprises of borrowings from banks, financial institutions and Unsecured Loans. The Company manages the
capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the
underlying assets.

~| ADDITIONAL REGULATORY INFORMATION PURSUANT TO THE REQUIREMENT IN DIVISION II OF SCHEDULE III TO THE
COMPANIES ACT 2013

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Comapny for holding any Benami Property.

(ii) The Comapny does not have any transactions with Companies struck off.

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

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

(a) 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

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

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

(viii) The Company has borrowings from banks and financial institutions on the basis of security of current assets. The quarterly
returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with
the books of accounts.

(ix) The Company have not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

(x) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(xi) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.

43 the financial statements are standalone financial statements hence disclosure requirement for

CHARGES NOT YET REGISTERED AND RATIO ANALYSIS IS NOT REQUIRED.

~| PREVIOUS YEAR FIGURES HAVE BEEN REGROUPED/ RECLASSIFIED TO CONFIRM PRESENTATION AS PER IND AS AS
REQUIRED BY SCHEDULE III OF THE ACT.

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

For M/s. Valawat & Associates

Chartered Accountants

Firm Registration No. 003623C

Ravinder Chander Prem

Jinendra Jain Managing Director

Partner DIN: 07771465

Membership No. 072995

Pankaj Kumar Santhosh Kumar

Place: Mumbai Chief Financial Officer Executive Director

Date : May 23, 2025 DIN:08686131

The Group has only one class of equity shares having a par value of INR 2/- Each holder of equity shares is entitled to one vote per share. The Group declares and pays dividend if any, in Indian rupees. The dividend proposed if any, 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 of Group, the holders of equity shares will be entitled to receive any of the 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.

During the year the Company has made allotment of 7,16,500 equity shares for cash at an issue price of INR 64/- each and at a premium of INR 62/- on preferential and private placement basis to Promotor Group of the Company.

During the year the Company has made allotment of 34,50,000 Fully Convertible Warrants for cash at an issue price of INR 64/-having face value of INR 2/- and at premium of INR 62/- on preferential and private placement basis to Promotor Group of the Company and Identified Non - Promotor(s).

(a) Rupee loans of INR 2687.74 Lakhs (Previous Year INR 2222.38 Lakhs) exclusive charge by way of hypothecation on entire stock of Finished goods, Raw material, Stock in trade and Book debts of the Company, present and future. Exclusive charge by way of Hypothecation of Plant & Machinery of the Company. Corporate Guarantee of Asian Distributors Private Limited to the extent of market value of collateral proposed to mortgage. Ruppee loans taken from Bank of Baroda.

(b) Rupee loans of INR 675.00 Lakhs (Previous Year INR 675 Lakhs) fresh additional working capital term loan under BGECL 1.0 extension scheme 100% guaranteed by NCGTC. Principal to be repaid in 36 monthly installment of INR 18.75 Lakhs each plus interest commencing after 24 months from the date of first disbursement.

(c) Rupee loans of INR 700.00 Lakhs (Previous Year INR Nil Lakhs) fresh additional packing credit loan.

(d) The rates of interest for rupee loan ranges from 9.70% p.a. to 12% p.a.

(B) Defined Benefit Plans :

I. (a) Contribution to Gratuity:

Provision for Gratuity has been made in the accounts based on an actuarial valuation carried out at the close of the year. The Company has funding arrangement with Birla Sun Life and Life Insurance Corporation of India, except for Tools Division, in which case it is held under Indian Tool Employee Gratuity Fund, and the liability is discharged to the employees in the year of retirement / cessation of employment.

II. Leave Encashment:

The leave encashment provision for the year ended March 31, 2024, based on actuarial valuation carried out using projected unit credit method amounting to INR 85.30 Lakhs (Previous Year INR 53.30 Lakhs) has been recognised in statement of profit and loss.

Note 36 Fair values of financial assets and financial liabilities:

The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables, short term borrowings and other financial liabilities approximate the carrying amounts because of the short term nature of these financial instruments.

The amortised cost using effective interest rate (EIR) of non current financial assets consisting of security and term deposits are not significantly different from the carrying amount.

Financial assets that are neither past due nor impaired includes cash and cash equivalents, security deposits, term deposits and other financial assets.

The impact of fair value on non current borrowings, non current security deposits and non current term deposits are not significant and therefore the impact of fair value is not considered for above disclosure.

Note 37 Fair value hierarchy:

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: *Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

*Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

*Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 fair value measurements.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:

The carrying amounts of borrowings, trade payables, other financial liabilities and other current liabilities are considered to approximate their fair values due to their short term nature. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own and counterparty credit risk.

Note 38. Financial risk management objectives and policies:

The Company is exposed to various financial risks. These risks are categorised into market risk, credit risk and liquidity risk. The Company''s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(i) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

(ii) Foreign currency risk:

The Company is exposed to foreign currency risk arising mainly on borrowing, export of finished goods and import of raw material. Foreign currency exposures are managed within approved policy parameters utilising forward contracts.

(B) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a month''s operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts. The Company does not foresee any credit risks on deposits with regulatory authorities.

(C) Liquidity risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

Note 39 Capital management:

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 and to ensure the Company''s ability to continue as a going concern.

The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt mainly comprises of borrowings from banks, financial institutions and Unsecured Loans. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

Note 42 Additional regulatory information pursuant to the requirement in Division II of Schedule III to the Companies Act 2013

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Comapny for holding any Benami Property.

(ii) The Comapny does not have any transactions with Companies struck off.

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

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

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

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

(viii) The Company has borrowings from banks and fiinancial institutions on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.

(ix) The Company have not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(x) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(xi) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

Note 43 The financial statements are standalone financial statements hence disclosure requirement for charges not yet registered and ratio analysis is not required.Note 44 Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS as required by Schedule III of the Act.

The Group has only one class of equity shares having a par value of? U- Each holder of equity shares is entitled to one vote per share. The Group declares and pays dividend if any, in Indian rupees.The dividend proposed if any, by the Board of Directors is subject to the approval of the shareholders in the ensuingAnnual General Meeting.

In the event of liquidation of the company of Group, the holders of equity shares will be entitled to receive any of the 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.

Security and Salient Terms:

(a) The Car Loan of? 244.09 lakhs (Previous Year ? Nil lakhs) is secured by hypothecation of the car.

Interest is payable @ 8.00% p.a. and is repayable in eighty four monthly instalments starting from February, 2023 and ending in January, 2030.

The Car Loan of? 25.00 lakhs (Previous Year ? Nil lakhs) is secured by hypothecation of the car.

Interest is payable @ 8.95% p.a. and is repayable in Sixty monthly instalments starting from April, 2023 and ending in March, 2028.

(b) Sales Tax deferred payment loan of? 74.58 lakhs (Previous Year ? 76.01 lakhs) is interest free and payable in instalments starting from April 2017.

Security and SalientTerms:

(a) Rupee loans of ?2222.38 lakhs (Previous Year ? Nil lakhs) exclusive charge by way of hypothecation on entire stock of Finished goods, Raw material, Stock in trade and Book debts of the Company, present and future. Exclusive charge by way of Hypothecation of Plant & Machinery of the Company. Corporate Guarantee of Asian Distributors Private Limited to the extent of market value of collateral proposed to mortgage.

(b) Rupee loans of ? 675.00 Lakhs (Previous Year ? Nil Lakhs) fresh additional working capital term loan under BGECL 1.0 extension scheme 100% guaranteed by NCGTC. Principal to be repaid in 36 monthly installment of? 18.75 Lakhs each plus interest commencing after 24 months from the date of first disbursement.

(c) Rupee loans of ? Nil lakhs (Previous Year ? 1390.37 lakhs) first charge by way of hypothecation of company’s entire paid up stock and trade receivables, present and future on pari pasu basis with other working capital bankers and second pari pasu charge over the land along with construcion thereon and all machineries situated at B-l 5/4, Ml DC, Aurangabad - 431 133 of the Group Company to be shared with other working capital bankers.

(d) Rupee loans of ? Nil lakhs (Previous Year ? 752.78 lakhs) first charge by way of hypothecation of company’s entire current assets on pari pasu basis with other working capital bankers and second pari pasu charge over the entire fixed assets of the Group Company to be shared with other working capital bankers.

(e) The rates of interest for rupee loan ranges from 9.70% p.a. to I 2% p.a.

Note 32: Balances of Sundry Creditors, Debtors, Loans and Advances and Other current assets are subject to confirmation.

Note 33: Employee Benefits:

(A) Defined Contribution Plans:

(B) Defined Benefit Plans :

I. (a) Contribution to Gratuity:

Provision for Gratuity has been made in the accounts based on an actuarial valuation carried out at the close of the year.The Company has funding arrangement with Birla Sun Life and Life Insurance Corporation of India, except forTools Division, in which case it is held under Indian Tool Employee Gratuity Fund, and the liability is discharged to the employees in the year of retirement / cessation of employment.

II. Leave Encashment:

The leave encashment provision for the year ended 31st March, 2023, based on actuarial valuation carried out using projected unit credit method amounting to ? 53.30 Lakhs (PreviousYear ? 7.98 Lakhs) has been recognized in statement of profit and loss.

The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables, shortterm borrowings and other financial liabilities approximate the carrying amounts because of the short term nature of these financial instruments.

The amortised cost using effective interest rate (ElR) of non current financial assets consisting of security and term deposits are not significantly different from the carrying amount.

Financial assets that are neither past due nor impaired includes cash and cash equivalents, security deposits, term deposits and other financial assets.

The impact of fair value on non current borrowings, non current security deposits and non current term deposits are not significant and therefore the impact of fair value is not considered for above disclosure.

Note 37: Fair value hierarchy:

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

*Level I - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

'' Level 2 - Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

*Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level I fair value measurements.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:

The carrying amounts of borrowings, trade payables, other financial liabilities and other current liabilities are considered to approximate their fair values due to their short term nature.They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own and counterparty credit risk.

The Company is exposed to various financial risks.These risks are categorized into market risk, credit risk and liquidity risk. The Company’s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(i) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.The Company exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.

(ii) Foreign currency risk:

The Company is exposed to foreign currency risk arising mainly on borrowing, export of finished goods and import of raw material. Foreign currency exposures are managed within approved policy parameters utilising forward contracts.

(B) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions.The maximum exposure to credit risk is equal to the carrying value of the financial assets.The objective of managing counterparty credit risk is to prevent losses in financial assets.The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a month’s operational costs.The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.The Company does not foresee any credit risks on deposits with regulatory authorities.

(C) Liquidity risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

Note 39: Capital management:

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 maximize the shareholder value and to ensure the Company’s ability to continue as a going concern.

The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt mainly comprises of borrowings from banks, financial institutions and Unsecured Loans.The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

Note 40: Corporate social responsibility:

(A) Gross amount spend by the Company towards Corporate Social Responsibility is ? Nil Lakhs (PreviousYear ? Nil Lakhs).

(B) No expenditure has been paid to a related party, in relation to CSR expenditure as per Ind-AS 24, Related Party Disclosures.

Note 41: Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS as required by Schedule III of theAct.

30. Contingent liabilities:

(a) Estimated amount of contracts remaining to be executed (net of advances), not provided for:

(` in Lakhs)

(b) Contingent liabilities not provided for in respect of: (` in Lakhs)

(c) The Company is a party to various legal proceedings in the normal course of business and does not expect the outcome of the proceedings to have any adverse effect on its financial conditions, results of operations or cash flows.

31.(a) Utilization of proceeds of public/ right issue as on 31st March, 2018 is as under: (` in Lakhs)

As per the Prospectus, the funds which were proposed to be deployed in the Aurangabad Project up to the period ended 30th September, 2008 was envisaged at ` 2129.86 Lakhs. However, the actual amount spent towards the above is ` 1417.67 Lakhs.

The above mentioned status of utilisation of funds raised by BMTL (formerly Dagger Frost Tools Limited) in its Right cum Follow on Issue in 2007 has been revised

/ adjusted due to the Scheme approved by Honourable High Court of Bombay for amalgamation of Birla Machining & Toolings Limited and Birla Accucast Limited

(Transferor companies) with Birla Precision Technologies Limited (Transferee Company).

As per approved scheme the pending project for of castings will be undertaken by the merged entity namely Birla Precision Technologies Limited.

In view of delay in implementation of the Aurangabad project, the amounts being utilised out of working capital and other advances, is considered being towards the designated project expenses and accounted for accordingly.

31. (b) The Company has incurred capital expenditure aggregating to ` 1417.67 Lakhs for the acquisition and construction of Plant and Machinery, Electrical Equipment and Building structure for installation of machining facilities. As there has been delay in the implementation of the machining project, the advances, made to the suppliers, accordingly have not been entirely appropriated towards the suppliers, but to the extent of the supplies. No provision for impairment is considered necessary by the management at this stage.

32. The Company has given a corporate guarantee of ` 25030 Lakhs to banks for a loan taken by a Group Company. In the legal case filed by Bank in DRT, Banks

has not claimed any relief against the Company.

33. Balances of Sundry Creditors, Debtors, Loans and Advances and Other current assets are subject to confirmation.

34. Employee Benefits:

(A) Defined Contribution Plans:

The Company has recognized the following amounts in statement of profit and loss for the year:

(` in Lakhs)

(B) Defined Benefit Plans :

I. (a) Contribution to Gratuity:

Provision for Gratuity has been made in the accounts based on an actuarial valuation carried out at the close of the year. The Company has funding arrangement with Birla Sun Life and Life Insurance Corporation of India, except for Tools Division, in which case it is held under Indian Tool Employee Gratuity Fund, and the liability is discharged to the employees in the year of retirement / cessation of employment.

36. Related party disclosures:

(A) Name of related parties and nature of relationships (as per Ind AS 24): (a) Key Management Personnel

1. Shri Vedant Birla - Chairman & Managing Director. Appointed w.e.f. 18th May, 2016.

2. Shri R. K. Sharma - Chief Financial Officer. Appointed w.e.f. 13th April, 2017.

3. Ms. Rupa Khanna - Company Secretary & Compliance Officer. Resigned w.e.f. 18th May, 2017.

4. Ms.Vandana Patil - Company Secretary & Compliance Officer. Appointed w.e.f. 29th May, 2017.

(b) Enterprises owned or significantly influenced by Key Management personnel or their relatives:

1. Birla Infrastructure & Developers Private Limited 4. Eduserve International Education LLP

2. Birla Infrastructure & Constructions Private Limited 5. Hair Station LLP

3. Edufocus International Education LLP

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

37. Fair values of financial assets and financial liabilities:

The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables, short term borrowings and other financial liabilities approximate the carrying amounts because of the short term nature of these financial instruments.

The amortised cost using effective interest rate (EIR) of non current financial assets consisting of security and term deposits are not significantly different from

the carrying amount.

Financial assets that are neither past due nor impaired includes cash and cash equivalents, security deposits, term deposits and other financial assets.

The impact of fair value on non current borrowings, non current security deposits and non current term deposits are not significant and therefore the impact of

fair value is not considered for above disclosure.

38. Fair value hierarchy:

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

*Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

*Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

*Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 fair value measurements.

39. Financial risk management objectives and policies:

The Company is exposed to various financial risks.These risks are categorized into market risk, credit risk and liquidity risk.The Company's risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(i) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. (ii) Foreign currency risk:

The Company is exposed to foreign currency risk arising mainly on borrowing, export of finished goods and import of raw material. Foreign currency exposures

are managed within approved policy parameters.

(B) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a month’s operational costs.The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.The Company does not foresee any credit risks on deposits with regulatory authorities.

(C) Liquidity risk:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

40. Capital management:

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 maximize the shareholder value and to ensure the Company's ability to continue as a going concern.

The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt.Total debt mainly comprises of borrowings from banks, financial institutions and Unsecured Loans. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

(` in Lakhs)

No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March 2018, 31st March 2017 and 1st April 2016.

41. Corporate social responsibility:

(A) Gross amount spend by the Company towards Corporate Social Responsibility is ` 25.05 Lakhs (Previous year ` Nil).

(B) No expenditure has been paid to a related party, in relation to CSR expenditure as per Ind-AS 24, Related Party Disclosures.

42. Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS as required by Schedule III of the Act.

1. 3,66,5I,756 Equity Shares issued, subscribed and fully paid up share capital were allotted in the last five years pursuant to the scheme of merger and amalgamation without payment being received in cash (3,66,5I,756).

The Company has only one class of equity shares having a par value of Rs. 2/- Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend if any, in Indian rupees. The dividend proposed if any, 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 holders of equity shares will be entitled to receive any of the 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.

Security and Salient Terms:

2. Rupee Term Loan of Rs. Nil (Previous Year Rs. 40.05 lakhs) first charge by way of hypothecation of company’s entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, ranking pari-passu with existing bankers. Exclusive First charge by way of hypothecation of all Plant and Machinery and other movable fixed assets of the company to be funded out of the term loan from the bank.

Interest rate is linked to Banks’ Prime Lending Rate / Base Rate plus margin is repayable in twenty quarterly installments starting from June, 2010 and ending in March, 2015.

3. The Car Loan of Rs. 70.74 lakhs (Previous Year Rs. 87.10 lakhs) is secured by hypothecation of the car.

Interest is payable @ 10.51% p.a. and is repayable in sixty monthly installments starting from August, 2014 and ending in July, 2019.

4. The Car Loan of Rs. 22.93 lakhs (Previous Year Rs. 33.34 lakhs) is secured by hypothecation of the car.

Interest is payable @ 10.50% & 11.58% p.a. and is repayable in sixty and twenty four monthly installments respectively starting from July, 2012 and July, 2015 and ending in June, 2017.

5. The Car Loan of Rs. Nil (Previous Year Rs. 1.18 lakhs) is secured by hypothecation of the car.

Interest is payable @ 11.58% p.a. and is repayable in thirty six monthly installments starting from September, 2012 and ending in August, 2015.

6. Sales Tax deferred payment loan of Rs. 44.90 lakhs (Previous Year Rs. 63.95 lakhs) is interest free and payable in installments starting from May,2003 and ending in April, 2018.

Sales Tax deferred payment loan of Rs. 446.87 lakhs (Previous Year Rs. 456.23 lakhs) is interest free and installments schedule is not yet received from the department.

Security and Salient Terms:

7. Foreign currency loan of Rs. 1355.71 lakhs (Previous Year Rs. 1514.31 lakhs) first charge by way of hypothecation of company’s entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, ranking pari-passu with existing bankers. Exclusive First charge by way of hypothecation of all Plant and Machinery and other movable fixed assets of the company to be funded from the term loan from the Bank.

8. Rupee loan of Rs. 285.89 lakhs (Previous Year Rs. 113.11 lakhs) first charge by way of hypothecation of company’s entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, ranking pari-passu with existing bankers. Exclusive First charge by way of hypothecation of all Plant and Machinery and other movable fixed assets of the company to be funded from the term loan from the Bank.

9. Rupee loans of Rs. 912.03 lakhs (Previous Ysar Rs. 868.76 lakhs) first charge by way of hypothecation of company’s entire current assets on pari pasu basis with other working capital bankers and second pari pasu charge over the entire fixed assets of the Company to be shared with other working capital bankers.

10. The rates of interest for foreign currency loan ranges from 4% p.a. to 5% p.a. and 12% p.a. to 19% p.a. for rupee loans.

11. The Company is a party to various legal proceedings in the normal course of business and does not expect the outcome of the proceedings to have any adverse effect on its financial conditions, results of operations or cash flows.

As per the Prospectus, the funds which were proposed to be deployed in the Aurangabad Project up to the period ended 30^th September, 2008 was envisaged at Rs. 2I29.86 Lakhs. However, the actual amount spent towards the above is Rs. 523.20 Lakhs.

The above mentioned status of utilization of funds raised by BMTL in its Right cum Follow on Issue in 2007 has been revised / adjusted by Rs. 427.20 Lakhs paid to BAL due to the SoA approved by Honourable High Court of Bombay for amalgamation of BAL and BMTL (Transferor companies) with the Company.

As per SOA the pending project and related obligations of the transferor companies shall be implemented by the Company.

In view of delay in implementation of the Aurangabad project, the balance amount of Rs. I595.20 Lakhs has been utilized for funding the company’s Working Capital requirements and for Inter Corporate Deposits given to group companies and others. The utilization of the said funds is not in line with the Prospectus.

12. (b) The Company has incurred capital expenditure aggregating to Rs.523.20 Lakhs for the acquisition and construction of Plant and Machinery,

Electrical Equipment and Building structure for installation of machining facilities. There has been delay in the implementation of the machining project, accordingly the advances, made to the suppliers, have not been entirely appropriated towards the supplies. No provision for impairment is considered necessary by the management at this stage.

13. The remuneration as approved by the Remuneration Committee / Board / Shareholders amounting to Rs. Nil (Previous year Rs. 71.77 Lakhs) paid / provided to the Managing Director is the remuneration within the limits of Schedule V Part II, Section II of the Companies Act, 2013, based on the effective Capital of the Company and in line with the amount allowable based on the resolution passed by the shareholders being Special Resolution.

14. The Cutting Tool Divisions of the Company situated at Plot No. 62-63, M.I.D.C., Satpur, Nashik and Plot No. B-15/3/1, M.I.D.C., Waluj, Aurangabad has received symbolic possession notice under the SARFAESI Act (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002) on 26^th June, 2014 and 27^th June, 2014 respectively along with the claim for repayment of Rs. 193.18 Crores. The Aurangabad Division of the Company has also received physical possession notice under SARFAESI Act on 9th May, 2015 from the Sub-Divisional Magistrate, Taluka Vaijapur, District Aurangabad.

The Company is in the process of joining with the principal defaulter in filing a consolidated application at Debt Recovery Tribunal (DRT) Court, Pune.

15. Balances of Sundry Creditors and Debtors are subject to confirmation.

16. Defined Benefit Plans :

17. Contribution to Gratuity:

Provision for Gratuity has been made in the accounts based on an actuarial valuation carried out at the close of the year. The Company has funding arrangement with Birla Sun Life and Life Insurance Corporation of India, except for Tools Division, in which case it is held under Indian Tool Employee Gratuity Fund, and the liability is discharged to the employees in the year of retirement / cessation of employment.

18. Leave Encashment:

The leave encashment provision for the year ended 3Ist March, 20I6, based on actuarial valuation carried out using projected unit credit method amounting to Rs. 39.88 Lakhs (Previous Year Rs. 84.34 Lakhs) has been recognized in statement of profit and loss.

Based on technical review, the Company has identified two reporting segments namely:

19. Tools and Precision Components

20. Casting and Machining, as reporting segments under AS-17.

21. Related party disclosures:

22. Name of related parties and nature of relationships:

23. Key Management Personnel

24. Shri M. S. Arora (Managing Director) till 15th December, 2014.

25. Shri Vedant Birla - Chairman & Managing Director, appointed w.e.f. 18th May, 2016.

26. Shri Shamraj Gilbile - Whole Time Director, appointed w.e.f. 4th December, 2015 and resigned w.e.f. 28th June, 2016.

27. Shri Mukunda Mankar - Chief Financial Officer.

28. Ms. Rupa Khanna - Company Secretary & Compliance Officer.

29. Corresponding previous year figures have been regrouped / recast and reclassified wherever necessary to make them comparable.

As per the Prospectus, the funds which were proposed to be deployed in the Aurangabad Project upto the period ended 30th September, 2008 was envisaged at Rs. 2129.86 lakhs. However, the actual amount spent towards the above is Rs. 523.20 lakhs.

The above mentioned status of utilisation of funds raised by BMTL in its Right cum Follow on Issue in 2007 has been revised/adjusted by Rs. 427.20 lakhs paid to BAL due to the SoA approved by Honourable High Court of Bombay for amalgamation of BAL and BMTL (Transferor companies) with the Company.

As per SoA the pending project and related obligations of the transferor companies shall be implemented by the Company.

In view of delay in implementation of the Aurangabad project, the balance amount of Rs. 1595.20 Lakhs has been utilized for funding the company's Working Capital requirements and for Inter Corporate Deposits given to group companies and others. The utilization of the said funds is not in line with the Prospectus.

1. (a) The Company has incurred capital expenditure aggregating to Rs. 523.20 lakhs for the acquisition and construction of Plant and Machinery, Electrical Equipment and Building structure for installation of machining facilities. There has been delay in the implementation of the machining project, accordingly the advances, made to the suppliers, have not been entirely appropriated towards the supplies. No provision for impairment is considered necessary by the management at this stage.

2. The remuneration as approved by the Remuneration Committee / Board / Shareholders amounting to Rs. 71.77 lakhs paid / provided to the Managing Director is the remuneration within the limits of Schedule V, Part II, Section II of the Companies Act, 2013, based on the Effective Capital of the Company and in line with the amount allowable based on the resolution passed by the Shareholders being a Special Resolution.

3. The Cutting Tool Division of the Company situated on Plot No. B-15/3/1, M.I.D.C., Waluj, Aurangabad - 431 133 has received physical possession notice under the SARFAESI Act (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002) on 9th May 2015, from the Sub-Divisional Magistrate, Tq. Vaijapur, Dist. Aurangabad, being a guarantor to a Group Company.

The Company has filed a stay application under SARFAESI Act before the Debts Recovery Tribunal (DRT) Court, Aurangabad on 18th May 2015. The Court has admitted the application which is pending for hearing.

4. Balances of Sundry Creditors and Debtors are subject to confirmation.

II. Leave Encashment:

The leave encashment provision for the year ended 31st March, 2015, based on actuarial valuation carried out using projected unit credit method amounting to Rs. 84.34 lakhs (Previous Year Rs. 28.72 lakhs) has been recognized in statement of profit and loss.

5. Corresponding previous year figures have been regrouped / recast and reclassified wherever necessary to make them comparable.

1. Valuation of Finished Goods and Semi finished Goods at Tool Division:

Till the previous year the cost of finished goods and goods under process at the Tool Division of the Company was being determined using the retail method, whereby the cost is computed by reducing from the sales value of inventory the global gross margins.

As this method is not in accordance with Accounting standard -2 (AS-2) the Company has during the current year reworked the value of finished goods and goods under process at the Tool Division in accordance with the AS-2.

Consequently due to reworking the impact on closing inventory of finished goods is Rs. I,67,52,525/- (Opening stock of finished goods is Rs. -I,28,57,536/-) and goods under process is Rs. I,66,65,346/- (Opening goods under process is Rs. I,27,64,I76/-). The net impact on statement of profit and loss of the year is Rs. 87,I79/-loss.

The inventory valuation is now in compliance with the requirement of AS-2.

2. Contingent liabilities:

(a) Estimated amount of contracts remaining to be executed (net of advances), not provided for:

(Rs. In Lakh)

Particulars 31st March, 2013 31st March, 2012

Capital Commitments:

Tangible Assets 405.06 575.67

Intangible Assets 0.00 9.49

(b) Contingent liabilities not provided for in respect of:

(Rs. In Lakh)

Particulars 31st March, 2013 31st March, 2012

(i) Amount of duty saved under EPCG Scheme against export obligations 48I.I4 634.04

(ii) Sales Tax Demands in Appeals 76.94 76.94

(iii) Entry Tax Demands in Appeals II0.54 II0.54

(iv) Income Tax Demands in Appeals 99.76 99.76

(v) Excise and Service Tax Demands in Appeals 45.80 I5.70

(vi) Claim on account of PF not acknowledged as debts 4.0I 4.0I

(vii) Bank Guarantees / Letters of Credit 698.62 632.66

(viii) Claims against Company not acknowledged as debts 30.6I 20.88

(c) The Company is a party to various legal proceedings in the normal course of business and does not expect the outcome of the proceedings to have any adverse effect on its financial conditions, results of operations or cash flows.

3. The Scheme of Amalgamation (SoA) of Birla Accucast Limited (BAL) and Birla Machining and Toolings Limited (BMTL) with Birla Precision Technologies Limited ( the Company).

All assets and properties, both movable and immovable, industrial and other licenses, all other interests, rights and powers of every kind, etc. and all debts, liabilities, duties and obligations of BAL and BMTL has been transferred to and vested in the Company retrospectively with effect from Ist April, 20I0 (the appointed date). The SoA has accordingly been given effect to in these accounts.

The amalgamation of BAL and BMTL with the Company has been accounted as per SoA approved by the Honorable High Court of judicature at Bombay, vide its order dated, 30th March, 20I2. Accordingly the assets, liabilities, debts and obligations of the BAL and BMTL have been taken over at their book values as on Ist April, 20I0 as stipulated in the SoA. The amalgamation has resulted in transfer of assets, liabilities, debts and obligations in accordance with the terms of the SoA at the following summarized values:

As per the approved Scheme of Amalgamation total of 2,06,23,760 equity shares of Rs. 2/- each were allotted on 20th July, 20I2 to the share holders of Birla Accucast Limited and Birla Machining & Toolings Limited in the following ratios respectively:

(a) 7 Equity shares of Rs. 2/- each of the company were issued for every I6 Equity shares of Rs. I0/- each held in Birla Accucast Limited.

(b) 2 Equity shares of Rs. 2/- each of the company were issued for every 3 Equity shares of Rs. I0/- each held in Birla Machining & Tooling Limited.

As per SoA the debit balance of Profit and Loss account is first adjusted against the "Amalgamation Reserve Account" and the balance of Rs. I325.II Lakhs has been adjusted against the general reserve created post merger of Tools Division of Zenith Birla (India) Limited.

In terms of the SoA, the Equity Shares allotted as above rank for dividend, voting rights and in all other respects pari-passu with the existing Equity Shares of the Company. The Income accruing and the expenses incurred by BAL and BMTL during the period Ist April, 20I0 to 3Ist March, 20II being net surplus of Rs. 58.78 Lakhs of BAL and Net deficit of Rs. 36.37 Lakhs of BMTL, resulting in Net Surplus of Rs. 22.4I Lakhs has been adjusted in the statement of profit and loss. During the period between the appointed date and the effective date (i.e. 28th May, 20I2) BAL and BMTL carried on the existing business in "trust" on behalf of the Company.

The title deeds for leasehold land, building, licenses, agreements, loan documents, etc. are in the process of being transferred in the name of the Company. Stamp duty and other levies out of the SoA, if any, shall be accounted on determination and completion of transfer formalities.

4. Merger scheme of Tools Division of Zenith Birla (India) Limited with the Company in the Financial Year 2009-10.

The title deeds for leasehold land, building, residential flats, licenses, agreements, loan documents, and some of the bank accounts and facilities are in the process of being transferred in the name of the Company. Stamp duty and other levies out of the Scheme of Arrangement, if any, shall be accounted on determination and completion of transfer formalities.

As per the Prospectus, the funds which were proposed to be deployed in the Aurangabad Project upto the period ended 30th September, 2008 was envisaged at Rs. 2129.86 Lakhs. However, the actual amount spent towards the above is Rs. 523.20 Lakhs.

The above mentioned status of utilization of funds raised by BMTL in its Right cum Follow on Issue in 2007 has been revised / adjusted by Rs. 427.20 Lakhs paid to BAL due to the SoA approved by Honorable High Court of Bombay for amalgamation of BAL and BMTL (Transferor companies) with the Company.

As per SoA the pending project and related obligations of the transferor companies shall be implemented by the Company.

In view of delay in implementation of the Aurangabad project, the balance amount of Rs. 1595.20 Lakhs has been utilized for funding the company''s Working Capital requirements and for Inter Corporate Deposits given to group companies and others. The utilization of the said funds is not in line with the Prospectus.

5 (b). The Company has incurred capital expenditure aggregating to Rs. 523.20 Lakhs for the acquisition and construction of Plant and Machinery,

Electrical Equipment and Building structure for installation of machining facilities. There has been delay in the implementation of the machining project, accordingly the advances, made to the suppliers, have not been entirely appropriated towards the supplies. No provision for impairment is considered necessary by the management at this stage.

6 . The remuneration as approved by the Remuneration Committee / Board/ Shareholders paid/ provided to the Managing Director during the year has been considered as the minimum remuneration, resulting in excess of such remuneration over maximum remuneration stipulated under Schedule XIII of the Companies Act, 1956 mounting to Rs. 55.23 lacs due to inadequacy of profits during the year. The Company has filed an application with the Central Government in this regards.

* The details of the Experience adjustments arising on account of plan assets and liabilities as required by paragraph 120(n)(ii) of AS 15 (revised) on "Employee Benefits" of previous financial years are not available in the valuation report for the financial year 2008-09, 2009-10 2010-11 and 2011-12 hence not furnished.

II. Leave Encashment:

The leave encashment provision for the year ended 31st March, 2013, based on actuarial valuation carried out using projected unit credit method amounting to Rs. 41.85 Lakhs (Previous Year Rs. 43.34 Lakhs) has been recognized in statement of profit and loss.

During the year, based on technical review, the Company has identified two reporting segments namely:

1. Tools and Precision Components

2. Casting and Machining, as reporting segments under AS-17, instead of earlier three segments.

(Figures in brackets indicates 31st March, 2012 figures) 36. Related party disclosures:

(A) Name of related parties and nature of relationships: a) Key Management personnel

1. Shri Yashovardhan Birla (Non-executive Chairman)

2. Shri M.S. Arora (Managing Director)

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

7. The figures of previous year have been regrouped / reclassified wherever necessary to correspond to figures of current year.

The Company has only one class of equity shares having a par value of Rs. 2/- each holder of equity shares is entitled to one vote per share. The Company declares and pay dividend if any, in Indian rupees. The dividend proposed if any, 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 holders of equity shares will be entitled to receive any of the 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.

As per records of the company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

1.1 2,06,23,810 Equity Shares of Rs. 2/- each fully paid up pending allotment to the existing member of amalgamated company on the record date to be fixed by the Board of Directors of the Company in view of the scheme of amalgamation of Birla AccuCast Limited and Birla Machining and Toolings Limited with the Company (Refer Note No. 29)

Security and Silent Terms:

(a) Rupee Term Loan of Rs. 474.86 Lakh (Previous Year Rs. 632.97 Lakh) first charge by way of hypothecation of company's entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, ranking pari-passu with existing bankers. Exclusive First charge by way of hypothecation of all Plant and Machinery and other movable fixed assets of the company to be funded of the term loan from the bank.

Interest rate is linked to Banks' Prime Lending Rate / Base Rate plus margin is repayable in twenty quarterly installments starting from June 20I0 and ending in March, 20I5.

(b) Foreign Currency Term Loan of Rs. 326.66 Lakh (Previous Year Rs. 5I3.36 Lakh) first charge created by mortgage of entire movable fixed assets both present and future and the immovable properties situated at Plot No. B - I5/4 , MIDC , Waluj Industrial Area , within village limit of Kamlapur , Taluka Gangapur District, Aurangabad , Maharashtra shall rank pari-passu charge.

Interest rate is linked to LIBOR plus margin and is repayable in sixteen quarterly installments starting from September 2009 and ending in June 20I3.

(c) The Car Loan of Rs. 43.69 Lakh (Previous Year Rs. 62.62 Lakh) is secured by hypothecation of the car.

Interest is payable @ I2.I5% p.a. and is repayable in sixty monthly installments starting from March, 2009 and ending in February 20I4.

(d) The Car Loan of Rs. 54.43 Lakh (Previous Year Rs. Nil) is secured by hypothecation of the car.

Interest is payable @ 8.74% p.a. and is repayable in thirty six monthly installments starting from March, 20II and ending in February 20I4.

(e) Sales Tax deferred payment loan of Rs. 19.48 Lakh (Previous Year Rs. 30.04 Lakh) is interest free and payable in thirteen yearly installments starting from May 2003 and ending in May 20I5.

Sales Tax deferred payment loan of Rs. 590.45 Lakh (Previous Year Rs. 24.92 Lakh) is interest free and installments schedule is not yet received from the department.

Security and Silent Terms:

(a) Foreign currency loan of Rs. 1537.30 Lakh (Previous Year Rs. Nil) first charge by way of hypothecation of company's entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, ranking pari-passu with existing bankers. Exclusive First charge by way of hypothecation of all Plant and Machinery and other movable fixed assets of the company to be funded of the term loan from the Bank.

(b) Rupee loan of Rs. 75.94 Lakh (Previous Year Rs. 317.32 Lakh) first charge by way of hypothecation of company's entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, ranking pari-passu with existing bankers. Exclusive First charge by way of hypothecation of all Plant and Machinery and other movable fixed assets of the company to be funded from the term loan from the Bank.

(c) Rupee loan of Rs. 838.18 Lakh (Previous Year Rs. 869.63 Lakh), bank facilities are in the process of being transferred in the name of the company. At present it is in the name of Zenith Birla (India) Limited, from which the Tool division got demerged. On transfer necessary security will be created .

(d) The rates of interest for foreign currency loan ranges from 7.04% p.a. to 7.90% p.a. and 12% p.a. to 19% p.a. for rupee loans.

Disclosures relating to amounts payable as at the year end together with interest paid/payable to Micro and Small Enterprises have been made in the accounts, as required under the Micro, Small and Medium Enterprises Development Act, 2006 to the extent of information available with the Company determined on the basis of intimation received from suppliers regarding their status and the required disclosure are given below:

2. Contingent liabilities:

(a) Estimated amount of contracts remaining to be executed (net of advances), not provided for: (Rs. In Lakh)

Particulars 31st March, 2012 31st March, 2011

Capital Commitments:

Tangible Assets 575.67 3I7.75

Intangible Assets 9.49 -

(b) Contingent liabilities not provided for in respect of: (Rs. In Lakh)

Particulars 31st March, 2012 31st March, 2011

(i) Amount of duty saved under EPCG Scheme against export obligations 634.04 597.77

(ii) Sales Tax Demands in Appeals 76.94 1.28

(iii) Entry Tax Demands in Appeals II0.54 I0I.03

(iv) Income Tax Demands in Appeals 99.76 -

(v) Excise and Service Tax Demands in Appeals I5.70 -

(vi) Claim on account of PF not acknowledged as debts 4.0I 4.0I

(vii) Bank Guarantees / Letters of Credit 632.66 89.04

(viii) Claims against Company not acknowledged as debts 20.88 I2.00

(c) The Company is a party to various legal proceedings in the normal course of business and does not expect the outcome of the proceedings to have any adverse effect on his financial conditions, results of operations or cash flows.

3. The Scheme of Amalgamation (SoA) of Birla Accucast Limited (BAL) and Birla Machining and Toolings Limited (BMTL) with Birla Precision Technologies Limited ( the Company).

All assets and properties, both movable and immovable, industrial and other licenses, all other interests, rights and powers of every kind, etc. and all debts, liabilities, duties and obligations of BAL and BMTL has been transferred to and vested in the Company retrospectively with effect from Ist April, 20I0 (the appointed date). The SoA has accordingly been given effect to in these accounts.

The amalgamation of BAL and BMTL with the Company has been accounted as per SoA approved by the Honorable High Court of judicature at Bombay, vide its order dated, 30th March, 20I2. Accordingly the assets, liabilities, debts and obligations of the BAL and BMTL have been taken over at their book values as on Ist April, 20I0 as stipulated in the SoA. The amalgamation has resulted in transfer of assets, liabilities, debts and obligations in accordance with the terms of the SoA at the following summarized values:

"As per SoA total of 2,06,23,8I0 equity shares of Rs. 2/- each will be issued by Birla Precision Technologies Limited to the shareholders of BAL and BMTL respectively in the following ratios:

(a) 7 Equity shares of Rs. 2/- each of Birla Precision Technologies Limited will be issued for every I6 Equity shares of Rs.I0/- each held in BAL.

(b) 2 Equity shares of Rs. 2/- each of Birla Precision Technologies Limited will be issued for every 3 Equity shares of Rs I0/- each held in BMTL.

As per SoA the debit balance of Profit and Loss account is first adjusted against the "Amalgamation Reserve Account" and the balance of Rs.I325.II Lakh has been adjusted against the general reserve created post merger of Tools Division of Zenith Birla (India) Limited.

In terms of the SoA, the Equity Shares allotted as above rank for dividend, voting rights and in all other respects pari-passu with the existing Equity Shares of the Company. The Income accruing and the expenses incurred by BAL and BMTL during the period Ist April, 20I0 to 3Ist March, 20II being net surplus of Rs.58.78 lakh of BAL and Net deficit of Rs.36.37 lakh of BMTL, resulting in Net Surplus of Rs. 22.4I Lakh has been adjusted in the statement of profit and loss. During the period between the appointed date and the effective date (i.e. 28th May, 20I2) BAL and BMTL carried on the existing business in "trust" on behalf of the Company.

The title deeds for leasehold land, building, licenses, agreements, loan documents, etc. are in the process of being transferred in the name of the Company. Stamp duty and other levies out of the SoA, if any, shall be accounted on determination and completion of transfer formalities.

4. Merger scheme of Tool Division of Zenith Birla (India) Limited with the Company in the Financial Year 2009-10.

The title deeds for leasehold land, building, residential flats, licenses, agreements, loan documents, and some of the bank accounts and facilities are in the process of being transferred in the name of the Company. Stamp duty and other levies out of the Scheme of Arrangement, if any, shall be accounted on determination and completion of transfer formalities.

As per the Prospectus, the funds which were proposed to be deployed in the Aurangabad Project upto the period ended 30th September, 2008 was envisaged at Rs. 2129.86 Lakh. However, the actual amount spent towards the above is Rs. 523.20 Lakh.

The above mentioned status of utilisation of funds raised by BMTL in its Right cum Follow on Issue in 2007 has been revised / adjusted by Rs. 427.20 Lakh paid to BAL due to the SoA approved by Honorable High Court of Bombay for amalgamation of BAL and BMTL (Transferor companies) with the Company.

As per SoA the pending project and related obligations of the transferor companies shall be implemented by the Company.

In view of delay in implementation of the Aurangabad project, the balance amount of Rs. 1595.20 Lakh has been utilized for funding the company's Working Capital requirements and for Inter Corporate Deposits given to group companies and others. The utilization of the said funds is not in line with the Prospectus.

The figures of the previous year is not given as it is related to BMTL (Transferor Company) which is amalgamated with the Company as per SoA.

5. The Company has incurred capital expenditure aggregating to Rs. 523.20 Lakh for the acquisition and construction of Plant and Machinery, Electrical Equipment and Building structure for installation of machining facilities. There has been delay in the implementation of the machining project, accordingly the advances, made to the suppliers, have not been entirely appropriated towards the supplies. No provision for impairment is considered necessary by the management at this stage.

(B) Defined Benefit Plans :

I. (a) Contribution to Gratuity:

Provision for Gratuity has been made in the accounts based on an actuarial valuation carried out at the close of the year. The Company has funding arrangement with Birla Sun Life and Life Insurance Corporation of India, except for Tools Division, in which case it is held under Indian Tool Employee Gratuity Fund, and the liability is discharged to the employees in the year of retirement / cessation of employment.

* The details of the Experience adjustments arising on account of plan assets and liabilities as required by paragraph I20(n)(ii) of AS I5 (revised) on "Employee Benefits" of previous financial years are not available in the valuation report for the financial year 2007-08, 2008-09, 2009-I0 and 20I0-II hence not furnished.

II. Leave Encashment:

The leave encashment provision for the year ended 3Ist March, 20I2, based on actuarial valuation carried out using projected unit credit method amounting to Rs. 43.34 Lakh (Previous Year Rs. 4.43 Lakh) has been recognized in statement of profit and loss.

6. Related party disclosures:

(A) Name of related parties and nature of relationships:

a) Key Management personnel

1. Shri Yashovardhan Birla (Non-executive Chairman)

2. Shri M.S. Arora (Managing Director)

7. The figures of previous year have been regrouped / reclassified wherever necessary to correspond to figures of current year.

8. The previous year figures are not comparable, due to the amalgamation of Birla Accucast Limited and Birla Machining and Toolings Limited with the Company.

(A) Contingent Liabilities not provided for in respect of:

2010-11 2009-10

(i) Export obligation for the amount of duty saved under EPCG Scheme - DTA Unit 441 80

(ii) Export obligation for the amount of duty saved under EPCG Scheme - EOU Unit (subsumed) 153 153

(iii) Disputed Sales Tax and Entry Tax Demands 102 109

(iv) Claim on account of PF not acknowledged as debts 4 4

(v) Bank Guarantee / Letter of Credit 89 -

(vi) Claims against Company not acknowledged as debts 12 12

(B) The Company is a party to various legal proceedings in the normal course of business and does not expect the outcome of the proceedings to have any adverse effect on his financial conditions, results of operations or cash flows.

2 The Tool Division of Zenith Birla (India) Ltd. (ZBIL) being all its assets and properties, both movable and immovable, industrial and other licenses, trademarks, all other interests, rights and powers of every kind, etc. and all its debts, liabilities, duties and obligations, has been transferred to and vested in the Company retrospectively with effect from April 1, 2008 (the appointed date). The Scheme has accordingly been given effect to in these accounts. The Tool Division of ZBIL is in operation of manufacturing of HSS Cutting Tools.

The merger of the Tool Division of ZBIL with the Company has been accounted as per Scheme of Arrangement approved by the Honorable High Court of judicature at Mumbai, vide its order dated, January 8, 2010. Accordingly the assets, liabilities, debts and obligations of the Tool Division have been taken over at their book values as on April 1, 2008 as stipulated in the Scheme. The merger has resulted in transfer of assets, liabilities, debts & obligation in accordance with the terms of the Scheme at the following summarized values:

In terms of the Scheme, the Equity Shares allotted as above rank for dividend, voting rights and in all other respects pari-passu with the existing Equity Shares of the Company. The Income accruing and the expenses incurred by Tool Division of ZBIL during the period 1st April, 2008 to 31st March, 2009 resulting in Net Surplus of Rs. 426 Lakh has also been incorporated in these accounts which include difference arising on account of variation in accounting policies aggregating Rs. 51 Lakh. During the period between the appointed date and the effective date (i.e. February 11, 2010) ZBIL carried on the existing business in "trust" on behalf of the Company. Vouchers, documents etc. for the period are in the name of ZBIL. The title deeds for leasehold land, building, residential flats, licenses, agreements, loan documents, etc. are in the process of being transferred in the name of the Company. Stamp duty and other levies out of the Scheme of Arrangement, if any, shall be accounted on determination and completion of transfer formalities.

3 The Board of Directors of the Company in their meeting held on 29th April, 2011, approved the Scheme of Amalgamation of the Birla Machining & Toolings Limited ( formerly Dagger Forst Tools Limited) and Birla Accucast Limited (the Transferor Companies) with the Company ( the Transferee Company ) subject to the approval of shareholders of the Company and other regulatory authorities. The Company has received ‘No Objection’ letter dated 13th July, 2011 from Bombay Stock Exchange Limited to Scheme of Amalgamation of the Birla Machining & Toolings Limited and Birla Accucast Limited with the Company. The Company is in the process of filing the Scheme of Amalgamation with the High Court of Bombay. The appointed date of the Scheme of Amalgamation is 1st April, 2010 subject to approval of High Court of Bombay.

4 Employee Benefits:

(B) Defined Benefit Plans :

I (a) Contribution to Gratuity:

Provision for Gratuity has been made in the accounts based on an actuarial valuation carried out at the close of the year. The Company has funding arrangement with Birla Sun Life, except for Tools Division, in which case it is held under Indian Tool Employee Gratuity Fund, and the liability is discharged to the employees in the year of retirement / cessation of employment.

Details under AS-15, to the extent applicable is furnished below:

II Leave Encashment:

The leave encashment provision for the year ended 31st March, 2011, based on actuarial valuation carried out using projected accrued benefit method amounting to Rs. 4 Lakh (Previous year Rs. 0.32 Lakh) has been recognized in Profit and Loss Account.

Notes:

(i) Segments have been identified in line with Accounting Standard on Segment Reporting (AS-17) taking into account the organization structure as well as the differential risks and returns of these segments.

(ii) The Company has disclosed Business segment as the primary segment and type of products in each segment:

a) Toolholder Division:- Machine Tool Accessories & Precision Components.

b) Tool Division: - Cutting Tools.

(iii) The revenue and result figures given above are directly identifiable to respective segments and expenditure on common services incurred at the corporate level are not directly identifiable to respective segments have been shown as "Other Un-allocable Expenditure".

5 RELATED PARTY TRANSACTIONS :

(A) Name of Related Parties and nature of relationships:

a) Key Management personnel

1. Shri Yashovardhan Birla (Non-executive Chairman)

2. Shri M.S. Arora (Managing Director)

b) Enterprises owned or significantly influenced by Key Management personnel or their relatives

1. Ashok Birla Apollo Hospital Pvt. Ltd.

2. Asian Distributors Pvt. Ltd.

3. Birla AccuCast Limited

4. Birla Bombay Pvt. Ltd.

5. Birla Capital & Financial Services Limited

6. Birla Edutech Limited

7. Birla Electricals Limited

8. Birla Energy Infra Limited

9. Birla Global Corporate Pvt. Ltd.

10. Birla Infrastructure Ltd.

11. Birla Integrated Textile Park Limited

12. Birla International Pvt. Ltd.

13. Birla Kerala Vaidyashala Pvt. Ltd.

14. Birla Lifestyle Private Limited

15. Birla Machining & Toolings Limited

16. Birla Pacific Medspa Limited

17. Birla Power Solutions Limited

18. Birla Research and Lifesciences Limited

19. Birla Shloka Edutech Limited

20. Birla Surya Limited

21. Birla Transasia Carpets Limited

22. Birla Urja Limited

23. Birla Viking Travels Pvt. Ltd.

24. Birla Wellness and Healthcare Private Limited

25. Godavari Corporation Pvt. Ltd.

26. Melstar Information Technologies Limited

27. Nirved Traders Pvt. Ltd.

28. Shearson Investments & Trading Co. Pvt. Ltd.

29. Zenith Birla (India) Limited

30. Birla Industries Group Charity Trust

Note: Above mentioned related parties are identified by the Management and relied upon by the auditors.

6 In the opinion of the Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet, unless stated otherwise. The provision for all known liabilities is adequate and not in excess of the amount reasonably stated.

7 Sundry Creditors in Schedule 10 include;

(a) (i) Rs.5 Lakh (Previous Year Rs. 2 Lakh) due to Micro, Small and Medium Enterprises.

(ii) Rs. 824 Lakh (Previous Year Rs. 1,290 Lakh) due to others.

(b) Enterprises to whom the Company owes a sum, which is outstanding for more than 45 days is Rs. Nil (Previous Year Rs. Nil) and the interest on the same is Rs. Nil (Previous Year Rs. Nil).

(c) The disclosure in (a) and (b) above is based on the information available with the Company regarding the status of supplier under the Micro, Small and Medium Enterprises Development Act, 2006.

(Rs. In Thousands)

1 (a) Contingent Liabilities not provided for in respect of: Current Yr. Previous Yr.

(i) Export obligation for the amount of duty saved under

EPCG Scheme - DTA Unit 8,048 8,048

(ii) Export obligation for the amount of duty saved under

EPCG Scheme - EOU Unit (subsumed) 15,290 15,290

(iii) Disputed Sales Tax Demands 10,920 -

(iv) Claim on account of PF not acknowledged as debts. 401 -

(b) Estimated amount of contracts remaining to be executed on capital account (net of advance) - 8,608

(c) Claims against company which are prima facie untenable are not considered for contingent liability.

(d) Various demands of workmen pending with the court and industrial tribunal is not ascertainable.

2 The Tool Division of Zenith Birla (India) Ltd. (ZBIL) being all its assets and properties, both movable and immovable, industrial and other licenses, trademarks, all other interests, rights and powers of every kind, etc. and all its debts, liabilities, duties and obligations, has been transferred to and vested in the Company retrospectively with effect from April 1, 2008 (the appointed date). The Scheme has accordingly been given effect to in these accounts. The Tool Division of ZBIL is in operation of manufacturing of HSS Cutting Tools.

The merger of the Tool Division of ZBIL with the Company has been accounted as per Scheme of Arrangement approved by the Honorable High Court of judicature at Mumbai, vide its order dated, January 8, 2010. Accordingly the assets, liabilities, debts and obligations of the Tool Division have been taken over at their book values as on April 1, 2008 as stipulated in the Scheme. The merger has resulted in transfer of assets, liabilities, debts & obligation in accordance with the terms of the Scheme at the following summarized values:

In terms of the Scheme, the Equity Shares allotted as above rank for dividend, voting rights and in all other respects pari-passu with the existing Equity Shares of the Company. The Income accruing and the expenses incurred by Tool Division of ZBIL during the period 1st April, 2008 to 31st March 2009 resulting in Net Surplus of Rs. 42609 Thousands has also been incorporated in these accounts which include difference arising on account of variation in accounting policies aggregating Rs. 5052 Thousand. During the period between the appointed date and the effective date (i.e. February 11, 2010) ZBIL carried on the existing business in "trust" on behalf of the Company. Vouchers, documents etc. for the period are in the name of ZBIL. The title deeds for leasehold land, building, residential flats, licenses, agreements, loan documents, etc. are in the process of being transferred in the name of the Company. Stamp duty and other levies out of the Scheme of Arrangement, if any, shall be accounted on determination and completion of transfer formalities.

B. Name of Related Parties and nature of relationships:

a) Key Management personnel

1. Shri Yashovardhan Birla (Non-Executive Chairman)

2. Shri M.S. Arora (Managing Director)

b) Enterprises owned or significantly influenced by Key Management personnel or their relatives

1. Ashok Birla Apollo Hospital Pvt. Ltd.

2. Asian Distributors Pvt. Ltd.

3. Birla AccuCast Limited

4. Birla Bombay Pvt. Ltd.

5. Birla Capital & Financial Services Limited

6. Birla Cotsyn (India) Limited

7. Birla Edutech Limited

8. Birla Electricals Limited

9. Birla Global Corporate Pvt. Ltd.

10. Birla Infrastructure Ltd.

11. Birla International Pvt. Ltd.

12. Birla Kerala Vaidyashala Pvt. Ltd.

13. Birla Pacific Medspa Pvt. Ltd.

14. Birla Power Solutions Limited

15. Birla Shloka Edutech Limited

16. Birla Surya Limited

17. Birla Transasia Carpets Limited

18. Birla Viking Travels Pvt. Ltd.

19. Dagger Forst Tools Limited

20. Godavari Corporation Pvt. Ltd.

21. Khopoli Investments Limited

22. Nirved Traders Pvt. Ltd.

23. Shearson Investments & Trading Co. Pvt. Ltd.

24. Zenith Birla (India) Limited

3 Advances recoverable in cash or in kind or for value to be received includes Rs. 15705 thousands (Previous year Rs. Nil) being Inter Corporate Loans.

4 Sundry Creditors in Schedule 10 include;

(a) (i) Rs. 210.52 Thousands (Previous Year Nil) due to Micro, Small and Medium Enterprises. (ii) Rs. 129065.48 Thousands (Previous Year Rs. 62333 Thousands) due to others.

(b) Enterprises to whom the Company owes a sum, which is outstanding for more than 45 days is Rs. Nil (Previous Year Rs. Nil) and the interest on the same is Rs. Nil (Previous Year Rs. Nil).

(c) The disclosure in (a) and (b) above is based on the information available with the Company regarding the status of supplier under the Micro, Small and Medium Enterprises Development Act, 2006.

5 Employee Benefits:

A. Defined Benefit Plans:

I Contribution to Gratuity:

Provision for Gratuity has been made in the accounts based on an actuarial valuation carried out at the close of the year. The Company has funding arrangement with Birja Sun Life, except for Tools Division, in which case it is held under Indian Tool Employee Gratuity Fund, and the liability is discharged to the employees in the year of retirement cessation of employment.