Merritronix Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

J. Provisions, contingent liabilities and contingent assets

A provision is recognized when the Company has a present obligation as a result of past event i.e., it is probable
that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be
made. Provisions are not discounted to its present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to
reflect the current best estimates.

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may,
but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated
reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of
resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. However,
contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise,
the asset and related income are recognised in the period in which the change occurs.

K. Earnings per Share

Basic earnings per equity share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number
of equity shares outstanding during the period.

Diluted earnings per share is computed by dividing the net profit or loss for the period attributable to the equity
shareholders of the Company and weighted average number of equity shares considered for deriving basic
earnings per equity share and also the weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares. In computing dilutive earnings per share, only potential equity
shares that are dilutive and that decrease profit per share are included.

L. Cash Flow Statement

Cash flows are reported using Indirect method, whereby profit before tax reported under statement of profit/(loss)
is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash
receipts. The cash flows from operating, investing and financing activities of the company are segregated based on
available information or payments.

M. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part
of the cost of such assets to the extent that they relate to the period till such assets are ready to be put to use. A
qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other
borrowing costs are charged to Statement of profit and loss.

N. Use of Estimates

The preparation of the financial statements in conformity with applicable Accounting Standards require the
Management to make estimates and assumptions considered in the reported amounts of assets and liabilities
(including contingent liabilities) and the reported income and expenses during the year. The Management believes
that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could
differ due to these estimates and the differences between the actual results and the estimates are recognized in
the periods in which the results are known/materialize.

II. Related Party Transaction: as per annexure attached

iii. The company has carried out impairment exercise during the year and it has not resulted in and adjustment in the books
of accounts since there was no indication of impairment loss.

iv. There are no amounts due to be transferred to Investor Education and Protection Fund as on 31.03.2026.

v. a) The company has had no transactions with companies struck off under section 248 of the Companies Act, 2013 or

section 560 of Companies Act, 1956.

b) There are no transactions which are not recorded in the books of accounts that have been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961

c) The Provisions of Corporate Social Responsibility under Section 135 of the Companies Act, 2013 are not applicable
to the Company for the year

d) The Company does not hold any Benami property and there are no proceedings against the company under the
benami transaction (prohibition) Act 1988 (as amended from time to time.)

e) Creation or satisfaction of charges are not pending for registration with Registrar of companies beyond the statutory
period.

f) The Company has not been declared as a wilful defaulter (as per RBI circular) by any bank or financial institution or
any other lender at any time during the financial year or after the end of the reporting period.

vi. Previous year’s figures have been regrouped / recasted wherever deemed necessary to conform with current period’s
classification.

vii. In the opinion of the Directors, trade receivables loans and advances are approximately of the value stated, if realised
in the ordinary course of business. The balance of loans and trade payables, trade receivables, loans and advances are
subject to confirmation from the respective parties.

viii. The company has not entered in to any transaction in crypto currency or virtual currency.

ix. a) Contingent liabilities provided for - Rs. 71.85 lakhs (P.Y. Rs. 75.73 Lakhs)

xvi. Ratio as per requirements of Division I of Schedule III to the Companies Act, 2013 is disclosed in ‘Annexure-A’ enclosed.

xvii. Confirmation of Balances in respect of debtors, loans and advances and creditors have not been obtained.

xviii. In the opinion of the Board, and to the best of their knowledge and belief, the reasonable amount of Current Assets and
Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in
the Balance Sheet. The provision for all known and determined liabilities is adequate and not in excess of the amount
reasonably required.

xix The Micro, Small and Medium Enterprises has been identified by the company from the available information and the
same has been relied by the auditors of the company. According to such identification, the disclosure as per section 22
of “The Micro, Small and Medium Enterprises Development Act,2006 is as under:

xx. COMPLIANCE WITH ACCOUNTING STANDARDS:

(a) The company was a small and medium sized company (SMC) until 31.03.2026. Since, the company is in the
process of listing during the current reporting period, the company shall be categorized as Non-SMC as defined in
the Companies (Accounting Standards) Rules, 2021.

(b) There are no reportable material exceptional items debited to Profit and Loss Account for the period.

(c) Accounting Standard 5:Net Profit or Loss for the period, prior period items and changes in accounting policies:

There is a prior period item amounting to Rs. 68.99 Lakhs debited to the Profit & Loss Account for the period ending
31.03.2026.

Note 1:

During the year, the Company contributed an amount of ^12.00 Lakhs on 23rd February 2026 to “Sree Lakshmi Jabbireddy
Charitable Trust”, an organisation engaged in providing affordable healthcare facilities to the needy through mobile
healthcare units and community health models. Further, the Company contributed an amount of ^21.00 Lakhs on 20th
March 2026 to “Satya Sadhana Foundation”, an organisation engaged in setting up old age homes, day care centres and
other facilities for senior citizens, and undertaking measures for reducing inequalities faced by socially and economically
backward groups.

(4) Un-disclosed Income:

There are no such reportable items for the reporting period.

(5) Intangible assets under Development:

There are no such items as at the end of the year requiring further disclosures.

(6) Registration of Charges / Satisfaction with the Registrar of Companies:

There are no pending registration / satisfaction of charges with the Registrar of Companies.

(7) Compliance with number of layer of Companies:

The Company does not have any subsidiary company beyond the specified number of layers requiring further
disclosure of information.

(8) Accounting Ratios:

As detailed in the annexure to the report.

(9) Compliance with approved Scheme(s) of Arrangements:

The company has not made any proposal for sanction / approval of Scheme(s) of Arrangements in terms of Section
230 to 237 of the Companies Act, 2013.

(a ) Increase in authorised capital:

Pursuant to the approval of members in the Extra-Ordinary General Meeting held on 22 May 2025, the Authorised
Share Capital of the Company was increased from ^15,00,00,000 (Rupees Fifteen Crores only) to ^16,00,00,000
(Rupees Sixteen Crores only) by creation of additional equity shares ranking pari passu with the existing equity shares.
Further, pursuant to the approval of members in the Extra-Ordinary General Meeting held on 30 August 2025, the
Authorised Share Capital was further increased from ^16,00,00,000 (Rupees Sixteen Crores only) to ^18,00,00,000
(Rupees Eighteen Crores only) by creation of additional equity shares ranking pari passu with the existing equity shares.

(b) Preferential allotment details:

During the financial year ended 31st March, 2026, the Company allotted 8,61,748 equity shares of ^10 each at a price
of ^108 per share (including a premium of ^98 per share) on a preferential basis. The allotment was approved by the
shareholders at the Extra Ordinary Meeting held on 31st July 2025 and the Board of Directors approved the allotment
at its meeting held on 02nd September 2025, again, the Company allotted 4,55,763 equity shares of ^10 each at a
price of ^108 per share (including a premium of ^98 per share) on a preferential basis. The allotment was approved
by the shareholders at the Extra Ordinary Meeting held on 21st November 2025 and the Board of Directors approved
the allotment at its meeting held on 01st December 2025, further, the Company allotted 5,77,118 equity shares of ^10
each at a price of ^108.40 per share (including a premium of ^98.40 per share) on a preferential basis. The allotment
was approved by the shareholders at the Extra Ordinary Meeting held on 12th March 2026 and the Board of Directors
approved the allotment at its meeting held on 16th March 2026

(c) Bonus allotment details:

During the financial year ended, pursuant to the approval of the board in the board meeting held on 23rd May 2025, the
Company issued 94,38,195 fully paid-up equity shares of Rs. 10 each as bonus shares in the ratio of 13:2 for every equity
share held as on 22nd May 2025.