Omnitech Engineering Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

3.10 Provisions and Contingent Liabilities

a) Provision

Provisions are recognized when the company has
a present obligation as a result of past events, for
which it is probable that an outflow of resources
will be required to settle the obligation and a
reliable estimate of the amount can be made.
Provisions required to settle are reviewed regularly
and are adjusted where necessary to reflect the
current best estimates of the obligation. Provisions
are discounted to their present values, where the
time value of money is material.

Warranties

A provision for warranties is recognized when the
underlying products are sold. The provision is based
on technical evaluation, historical warranty data
and a weighting of all possible outcomes by their
associated probabilities. A liability is recognized
at the time the product is sold. The Company
does not provide any extended warranties to its
customers.

b) Contingent Liabilities:

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 in extremely rare cases 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 standalone financial statements.

c) Contingent Assets:

A contingent asset is a possible asset that arises
from past events and whose existence will be
confirmed only by- the occurrence or non¬
occurrence of one or more uncertain future events
not wholly within the control of the entity. The
Company does not recognize the contingent asset
in its standalone financial statements since this
may result in the recognition of income that may
never be realized. Where an inflow of economic
benefits is probable, the Company disclose a brief
description of the nature of contingent assets at
the end of the reporting period. However, when
the realization of income is virtually certain, then
the related asset is not a contingent asset and
the Company recognize such assets. Provisions,

contingent liabilities and contingent assets are
reviewed at each Balance Sheet date.

2.11 Cash and cash equivalents

The Company considers all highly liquid investments,
which are readily convertible into known amounts
of cash that are subject to an insignificant risk of
change in value, to be cash equivalents. Cash and cash
equivalents consist of balances with banks and which
are unrestricted for withdrawal and usage

2.12 Foreign currency transactions

Transactions in foreign currencies are translated into the
functional currency of the Company at the exchange
rates at the dates of the transactions or an average rate
if the average rate approximates the actual rate at the
date of the transaction.

Monetary assets and liabilities denominated in foreign
currencies are translated into the functional currency at
the exchange rate at the reporting date. Non-monetary
assets and liabilities that are measured at fair value in
a foreign currency are translated into the functional
currency at the exchange rate when the fair value was
determined. Non-monetary assets and liabilities that are
measured based on historical cost in a foreign currency
are translated at the exchange rate at the date of the
transaction. Exchange differences arising on settlement
of transactions and translation of monetary items are
recognized in statement of profit and loss.

2.13 Inventories

Inventories are measured at the lower of cost and net
realizable value. The cost includes expenditure incurred
in acquiring the inventories, production or conversion
costs and other costs incurred in bringing them to
their present location and condition. Costs incurred
in bringing each product to its present location and
condition are accounted for as follows:

Raw materials and stores and spares (valued at cost):

cost includes cost of purchase and other costs incurred
in bringing the inventories to their present location and
condition. Cost is determined on first in, first out basis.

Finished goods and work in progress: cost includes
cost of direct materials and labor and a proportion of
manufacturing overheads absorbed based on the normal
operating capacity, but excludes borrowing costs. Cost
is determined on first in, first out (FIFO) basis.

Packing Materials and other products (valued at cost)

are determined on FIFO basis.

Net realizable value is the estimated selling price in the
ordinary course of business, less the estimated costs
of completion and selling expenses. The net realizable

value of work-in-progress is determined with reference
to the selling prices of related finished products.

2.14 Segment Reporting

An operating segment is a component of the Company
that engages in business activities from which it may
earn revenues and incur expenses, including revenues
and expenses that relate to transactions with any of
the Company''s other components, and for which
discrete financial information is available. Operating
segments are reported in a manner consistent with
the internal reporting provided to the chief operating
decision maker. The Managing Director of the
Company is responsible for allocating resources and
assessing performance of the operating segments
and accordingly is identified as the Chief Operating
Decision Maker (CODM). All operating segments''
operating results are reviewed regularly by the CODM
to make decisions about resources to be allocated
and assess their performance.

2.15 Borrowing cost

Borrowing costs are interest and other costs incurred
in connection with the borrowing of funds. Borrowing
costs directly attributable to acquisition or construction
of an asset which necessarily take a substantial period of
time to get ready for their intended use are capitalized
as part of the cost of that asset. Other borrowing costs
are recognized as an expense in the period in which
they are incurred.

2.16 Investment in subsidiaries

Investment in subsidiaries are measured at cost less
impairment loss, if any.

2.17 Events after reporting date

Where events occurring after the balance sheet date
provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is
adjusted within the financial information. Otherwise,
events after the balance sheet date of material size or
nature are only disclosed.

2.18 Recent accounting pronouncement

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.

In May 2025, MCA notified amendments to Ind AS
21-The Effects of Changes in Foreign Exchange
Rates, applicable w.e.f. April 1, 2025. The Company has
reviewed the amendment and based on its evaluation
has determined that it does not have any significant
impact in its financial statements.

In August 2025, MCA notified the following
amendments to:

1. Ind AS 1, Presentation of Financial Statements,
applicable w.e.f. April 1, 2025 - The amendment
relates to classification of liabilities as current
or noncurrent and non-current liabilities with
covenants. In the context of classifying a liability
as current, it removes the requirement of existence
of a right to defer settlement for at least 12 months
after the reporting date and instead requires
that the said right should exist on the reporting
date and have substance. The amendment also
introduces guidance on classification of liabilities
with covenants. The Company has no impact of
these amendments in its classification criteria of
current and non-current liabilities.

2. Ind AS 7, Statement of Cash Flows and Ind AS
107, Financial Instruments: Disclosures, applicable
w.e.f. April 1, 2025 - The amendment in Ind AS 7
requires to inform users of financial statements
of the existence of supplier finance arrangements
and explain the nature of the arrangements, the
carrying amount of liabilities and the range of
payment due dates. Ind AS 107 has been amended
to add supplier finance arrangements as a factor
that may cause concentration of liquidity risk.
The Company has reviewed the amendment and
based on its evaluation has determined that it
does not have any significant impact in its financial
statements.

(B) i) Terms and rights attached to equity shares

The Company has a one class of equity shares having a par value of '' 5 each. Each shareholder is eligible for one
vote per share held and carry a right to dividend. Accordingly, all equity shares rank equally with regard to dividends
and share in the Company''s residual assets. Equity shareholders are entitled to receive dividends as declared from
time to time.Voting rights are proportional to paid-up equity capital, with each holder entitled to one vote per share.

Upon winding-up or liquidation of the Company, equity shareholders shall be entitled to receive the residual assets,
subsequent to the satisfaction of all preferential claims, in proportion to their shareholding.

ii) Terms/ rights attached to preference shares

The Company''s preference shares have a nominal value of '' 10 per share. In the event of winding up or liquidation,
preference shareholders shall have priority over equity shareholders. As of the date of this report, the Company has
not issued any preference share capital.)

For the period of five years immediately preceding the date of the Balance Sheet, the Company has neither bought back
any class of equity shares nor issued shares pursuant to contract(s) without payment being received in cash except the
Board of Directors at its meeting held on 11 March 2024, had approved the bonus issue of nine new equity share for
every one share held on record date which was approved by the shareholders by means of a special resolution dated
6 March 2024. Through a Board resolution dated, the Company has allotted 4,50,00,000 equity shares of ''10 each as
bonus shares to the existing equity shareholders of the Company.The Company has issue fully paid up bonus shares by
capitalisation of profits transferred from utilizing the Company''s free reserves.

Nature and purpose of reserves :

Retained earnings

Retained earnings represents the Company''s undistributed earnings after tax and can be utilised in accordance with the
provisions of the Act.

Securities premium

Securities premium is used to record the premium received on issue of shares and such balance can be utilised only for
limited purposes in accordance with the provisions of the Companies Act, 2013.

Details of security - All loans from the below three banks are secured through pari-passu charge against assets

Loans taken from : Axis Bank Ltd / Union Bank of India / HDFC Bank

The above term loans have been secured through exclusive charge by way of hypothecation on plant & machineries

of the company (Present & future) [excluding plant and machinery exclusively charged to Siemens Financial Services

Private Limited]. The above loans are also secured by collateral security on the following properties-

a. Industrial property located at plot No. G 1823, GIDC, Lodhika, at Metoda, Rajkot-360021, standing in the name of
the company;

b. Industrial property located at plot No. 2500 , GIDC, Lodhika, at Metoda, Rajkot-360021, standing in the name of
company;

c. Industrial property located at Chhapra, Lodhika, Rajkot, standing in the name of the company;

d. Personal properties of the directors and a relative of a director of the Company, namely Udaykumar Arunkumar
Parekh and Indumati Arunbhai Parekh.

e. The above secured borrowings are covered by personal guarantees provided by the directors and a relative of a
director of the Company, namely Udaykumar Arunkumar Parekh and Indumati Arunbhai Parekh.

Details of security

Loan taken from Tata Capital Limited

The loan is secured by a 20% Cash Collateral in the form of FD/SD/Debt Mutual Funds of the facility amount. Further, the
borrowings are covered by personal guarantees provided by the directors and a relative of a director of the Company,
namely Udaykumar Arunkumar Parekh and Indumati Arunbhai Parekh.

Loans taken from Seimens Financial Services Pvt Ltd

The above term loans have been secured through exclusive charge by way of hypothecation on the machinery against
which the loans are taken. Further, the borrowings are covered by personal guarantees provided by the directors and a
relative of a director of the Company, namely Udaykumar Arunkumar Parekh.

iv Current borrowings

(i) Cash credit facility is availed from Axis Bank with limit of '' 700.00 million, Axis Bank (ad hoc limit) of '' 150 million,
HDFC Bank with limit of '' 200 million, and Union Bank of India with limit of '' 550 million,, Bank Of India with limit of
''100 million. The cash credit facilities from Axis Bank, Union Bank of India and Bank Of India are secured by a pari
passu charge over present and future current assets of the company. Cash credit facility from HDFC Bank is overall
secured with their combined facilities as stated in above para related to security given for term loans. The said cash
credit facilities have interest rate ranging from 7.20% to 12.50% (floating rate).

(ii) Export Packing Credit from banks is secured against current assets of the Company, both present and future. The
said cash credit facilities have interest rate ranging from 7.20% to 10.70% (floating rate).

(iii) Working capital term loan Cash credit facility is availed from HDFC Bank, Axis Bank, Bank of india Capsave Finance
Private Limited and Rataafin Capital Private Limited. Facilities availed from Axis Bank are secured by a pari passu
charge over present and future current assets of the company. Working capital facility from HDFC Bank is overall
secured with their combined facilities as stated in above para related to security given for term loans. Working
capital facility from Capsave Finance Private Limited and Rataafin Capital Private Limited are secured by personal
guarantees of directors and a relative of a director of the Holding Company, namely Udaykumar Arunkumar Parekh
and Indumati Arunbhai Parekh. The said facilities have interest rate ranging from 7.20% to 11.50%.

(iv) Loan from directors and relatives of directors are repayable on demand and carries interest rate of 8.5% to 10.00%.

(v) The Company has entered into an arrangement with Receivables Exchange of India Limited (RXIL) and the Trade
Receivables Discounting System (TReDS) platform with an aggregate sanctioned limit of ''320 million. Under this
arrangement, the company, may discount their invoices with participating financial institutions for early realisation
of dues.The arrangement facilitates extension of credit period beyond the original supplier credit terms Interest/
discounting charges and platform service charges in respect of such arrangements are borne by the Company and
recognised as finance costs and other expenses, respectively, in the Statement of Profit and Loss.

(vI) The Company has availed an unsecured loan facility from JSW One Finance Limited (JOFL) with a credit limit of ?30
million. The loan is unsecured and does not carry any collateral security.

The Ministry of Labour & Employment (MoLE), Government of India, has announced the implementation of four Labour
Codes viz. the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and
the Occupational Safety, Health and Working Conditions Code, 2020, effective November 21, 2025. On the basis of
information available, the Company has assessed and accrued the incremental impact for these changes at current
estimate of '' 1.00 million. The Company continues to monitor the finalisation of Central / State Rules and clarifications
from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on the
basis of such developments as needed.

#The above matters are subject to legal proceedings in the ordinary course of business. On the basis of the current status
of the individual case along with the opinion of Management, when ultimately concluded will not have material effect on
the results of the operations or financial position of the Company.

30 Segment information

The primary reporting of the Company has been performed on the basis of business segment. Based on the Company''s
business model, manufacturing of high precision and OEM components has been considered as a single business
segment for the purpose of making decision on allocation of resources and assessing its performance. Accordingly,
there are no separate reportable segments in accordance with the requirements of Ind AS 108 ''Operating segment''.

The information relating to revenue from external customers and location of segment assets of its single reportable
segment has been disclosed as below. The geographic information analyses the Company''s revenues and segment
assets by the country of domicile and other countries. In presenting geographic information, segment revenue has been
based on the location of the customer and segment assets are based on geographical location of the assets.

b. Revenue from Major Customers:

For the year ended March 31,2026, two customer accounted for 10% or more of the company''s total revenue, amounting
to '' 1324.89 million. For the year ended March 31, 2025, one customer accounted for 10% or more of the company''s total
revenue, amounting to '' 431.31 million.

31 Employee Benefits

(A) Defined Contribution Plan
Provident Fund

The Company''s contribution to provident fund aggregating to '' 34.78 million (March 31, 2025: '' 26.29 Million) has been
recognised in the statement of profit and loss under the head employee benefits expense.

(B) Defined Benefit Plan

In accordance with Indian law, the Company is required to pay gratuity which is a defined benefit plan (''the Gratuity
Plan'') covering eligible employees. The plan provides a lump sum payment to vested employees at retirement, death
and incapacitation while in employment, termination of employment. The level of benefits provided depends on the
respective employees'' tenure of employment and last drawn salary. The defined benefit plan exposes the company to
actuarial risks such as interest rate risk, investment risk and salary risk.

32 Financial Instruments

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy
are presented below. It does not include the fair value information for financial assets and financial liabilities not measured
at fair value if the carrying amount is a reasonable approximation of fair value.

Note:-

The management assessed that fair value of investments, loans, derivative instruments, trade receivables, cash and cash
equivalents, other financial assets, borrowings, trade payables, lease liabilities and other financial liabilities approximate
their carrying amounts largely due to the short-term maturities of these instruments.

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

For investments in mutual funds measured at Fair Value through Profit and Loss (FVTPL), the fair value represents net
asset value as stated by the issuers of the mutual funds units in the published statements. Net Asset value represents
the price at which the issuer will issue further units in the mutual fund and the price at which such units are redeemed.

33 Financial risk management objectives and policies

The key objective of the company''s capital management is to ensure that it maintains a stable capital structure with
the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of
its business. The Company is focused on maintaining a strong equity base to ensure independence, security, as well as
financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.

Company''s principal financial liabilities comprises of unsecured loans from Directors and their relatives, borrowings from
banks and financial institutions, trade payables and other financial liabilities. The main purpose of these financial liabilities
is to finance Company''s operations and to overall foster growth. Company''s principal financial assets include security
deposits, trade and other receivables, balances with banks, cash and cash equivalents and other financial assets that the
Company derives directly from its operations.

(A) Market risk

Market risk refers to the possibility that changes in the market rates may have impact on the Company''s profits or the
value of its holding of financial instruments. The Company is exposed to market risks on account of change in foreign
exchange rates and interest rates.

The sensitivity analysis in the following sections relate to the position as at March 31, 2026 March 31, 2025. The sensitivity
of the relevant income statement item is the effect of the assumed changes in respective market risks. The following
assumption have been made in calculating the sensitivity analysis:

(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''s exposure to the risk of changes in market interest rates relates
primarily to the Company''s long term debt obligations with floating interest rates. The Company manages its interest
rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

Exposure to Interest rate risk

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion
of loans and borrowings. With all other variables held constant, the Company''s profit before tax is affected through
the impact on floating rate borrowings, as follows:

(ii) Foreign Currency risk

The Company''s foreign currency risk arises from its foreign operations, investments in foreign subsidiary, foreign
currency transactions and foreign currency loans given. The fluctuation in foreign currency exchange rates may have
potential impact on the income statement and equity, where any transaction references more than one currency or
where assets/liabilities are denominated in a currency other than the functional currency of the Company.

Since a major part of the Company''s revenue is in foreign currency and major part of the costs are in Indian Rupees,
any movement in currency rates would have impact on the Company''s performance. Consequently, the overall
objective of the foreign currency risk management is to minimise the short term currency impact on its revenue and
cash-flow in order to improve the predictability of the financial performance.

The company uses forward contracts to manage foreign currency risk and minimize the impact of exchange rate
fluctuations on its cash flows. However, this contract does not qualify for hedge accounting treatment under the
relevant accounting standards.

The major foreign currency exposures for the Company are denominated in GBP, USD & EURO. Additionally, there
are transactions which are entered into in other currencies and are not significant in relation to the total volume of
the foreign currency exposures.

The following table sets forth information relating to material foreign currency exposure from non-derivative
financial instruments

(B) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities including investments, trade
receivables and deposits with banks.

Trade receivables

All trade receivables are subject to credit risk exposure. The Company''s exposure to credit risk is influenced mainly by
the individual characteristics of each customer. The demographics of the customer, including the default risk of the
industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is
managed through established policies, controls relating to credit approvals and procedures for continuously monitoring
the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the
Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account
external and internal risk factors and historical data of credit losses.

Investments & Deposits with banks

With respect to investments, the Company limits its exposure to credit risk by investing in liquid securities with counter
parties depending on their Composite Performance Rankings (CPR) published by Credit rating agencies. Bank deposits
are placed with banks with high credit rating. The Company''s investment policy lays down guidelines with respect
to exposure per counterparty, credit rating, processes in terms of control and continuous monitoring. The Company
therefore considers credit risks on such investments to be negligible.

(C) Liquidity risk

Liquidity risk refers to the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates
cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash
equivalents and has undrawn short term line of credits from banks to ensure necessary liquidity.

(D) Capital Management

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

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

37 Other statutory information

a The Company has not carried out any revaluation of property, plant and equipment in any of the period reported in
this Standalone financial statements hence reporting is not applicable.

b There have been no proceedings initiated or pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

c As per sanctioned letter issued by Banks, the Company is required to submit stock statement to banks on quarterly
basis. As per comparison made of the stock statement vis-a-vis books of account, there are no material difference
noted.

d The Company does not have any transactions with companies struck off.

e There no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory
period.

f The Company does not have 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).

g 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:

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

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

h 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:

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

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

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

j The Company is not declared as wilful defaulter by any bank or financial institution.

k The title deeds of immovable properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) are held in the name of the Company.

l There are no scheme of arrangements which have been approved by the Competent Authority in terms of sections
230 to 237 of the Companies Act, 2013 during the reporting period.

m The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

n The Company has neither declared nor paid any dividend during the reporting period.

38 The Company has maintained its stock records in a third party software. In absence of an independent auditor''s system
and organization controls report covering the requirement of audit trail (at database level), there is no conclusive evidence
that whether audit trail feature at the database level was enabled and operated throughout the year for all relevant
transactions recorded in the software or whether there were any instances of the audit trail feature been tampered with.

39 '' 3,917.41 Millions have been received in the Escrow account (net off estimated offer expenses '' 262.59 Millions)

from proceeds of fresh issue of equity shares. Further, the fund raised from Offer for sale were remitted to the selling
shareholders (net off estimated offer expenses borne / to be borne by the selling shareholders). The utilisation of the net
proceeds is summarised as below:

Note:

The net unutilised offer proceeds were temporarily invested in deposits with commercial banks. Interest earned on such
deposits are in the fixed deposits.

During the quarter ended March 31, 2026, the Company has received reimbursement amounting to ?92.81 million from
the Public Account for the issue expenses already incurred and paid. Further, the Company has paid total of ?93.97
million (34.56 million and ?59.41 million) directly from the Monitoring Account and Public Account respectively during
the reporting period.

40 No significant subsequent events have been observed which may require an adjustment / disclosure to the standalone
financial statements