r. Provisions, Contingent Liabilities and Contingent
Assets

Provisions involving substantial degree of estimation
in measurement are recognized when the Company
has a present obligation (legal or constructive) as
a result of a past event and 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.
These estimates are reviewed at each reporting date.

I f 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 recognized
as a finance cost.

A possible obligation that arises from past events
and the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or; present obligation that arises from
past events where it is not probable that an outflow
of resources embodying economic benefits will be
required to settle the obligation; or the amount of
the obligation cannot be measured with sufficient
reliability are disclosed as contingent liability in the
notes and not provided for.

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 Company. Contingent assets are not
recognized and disclosed only when an inflow of
economic benefits is probable.

s. Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker, who is responsible for
allocating resources and assessing performance of the
operating segments of the Company.

Business Segment: The Company's operating
business is engineering goods only and accordingly
there is only one business segment.

Currency Segment: The analysis of currency segment
is based on the basis of currency. The currency
segments considered for disclosure are as follows:

(a) Sales in Indian Currency

(b) Sales in foreign currency

Segment Assets denotes for assets in Local Currency
and in foreign currency.

t. Earning Per Share

Basic earning 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 period.

For the purpose of calculating diluted earning per
share, the net profit or loss for the period attributable
to Equity Shareholders and the weighted average
number of Shares outstanding during the period
are adjusted for the effects of all dilutive potential
Equity Shares.

u. Financial Instruments

Financial assets and financial liabilities are recognized
when an entity becomes a party to the contractual
provisions of the instruments.

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

Financial assets

All recognized financial assets are subsequently
measured in their entirety at either amortized cost
or fair value, depending on the classification of the
financial assets.

Classification of financial assets

Financial assets that meet the following conditions
are subsequently measured at amortized cost (except
for financial assets that are designated as at fair value
through profit or loss on initial recognition):

• the asset is held within a business model whose
objective is to hold assets in order to collect
contractual cash flows; and

• the contractual terms of the instrument give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.

Financial assets that meet the following conditions are
subsequently measured at fair value through other
comprehensive income (except for financial assets
that are designated as at fair value through profit or
loss on initial recognition):

• the asset is held within a business model
whose objective is achieved both by collecting
contractual cash flows and selling financial
assets; and

• the contractual terms of the instrument give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.

All other financial assets are subsequently measured
at fair value.

Effective interest method

The effective interest method is a method of
calculating the amortized cost of a financial asset and
of allocating interest income over the relevant period.
The effective interest rate is the rate that exactly
discounts estimated future cash receipts through
the expected life of the financial asset, or, where
appropriate, a shorter period, to the net carrying
amount on initial recognition.

I ncome is recognized on an effective interest basis
for financial assets other than those financial assets
classified as at fair value through profit or loss. Interest
income is recognized in the Statement of profit
and Loss.

De-recognition of financial assets

The Company derecognizes a financial asset when
the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership of
the asset to another party.

On de-recognition of a financial asset in its entirety,
the difference between the asset's carrying amount
and the sum of the consideration received and
receivable is recognized in the statement of profit
and loss.

Impairment of financial assets

The Company assesses at each Balance sheet date
whether a financial asset or a group of financial assets
is impaired. Ind AS 109 requires expected credit losses
to be measured through a loss allowance. Credit losses
are measured as the present value of all cash shortfalls
(i.e. the difference between the cash flows due to the
Company in accordance with the contract and the
cash flows that the Company expects to receive). The

Company recognizes credit loss allowance at lifetime
expected credit loss model for trade receivables that
do not constitute a financing transaction.

Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by the Company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.

Equity instruments

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

Financial liabilities

All financial liabilities are subsequently measured at
amortized cost using the effective interest method or
at fair value through profit or loss. Financial liabilities
are classified as at fair value through profit or loss
when the financial liability is held for trading or it is
designated as at fair value through profit or loss.

A financial liability is classified as held for trading if:

• it has been incurred principally for the purpose
of repurchasing it in the near term; or

• on initial recognition, it is part of a portfolio
of identified financial instruments that the
Company manages together and has a recent
actual pattern of short-term profit-taking; or

• it is a derivative that is not designated and
effective as a hedging instrument.

Financial liabilities subsequently measured at
amortized cost

Financial liabilities that are not held-for-trading and
are not designated as at fair value through profit
or loss are measured at amortized cost at the end
of subsequent accounting periods. The carrying
amounts of financial liabilities that are subsequently
measured at amortized cost are determined based on
the effective interest method. Interest expense that is
not capitalized as part of costs of an asset is included
in the 'Finance costs' line item.

Defined benefit obligation

The cost of the defined benefit plan and other post¬
employment benefits and the present value of such
obligation are determined using actuarial valuations. 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 pension increases. In
view of 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.

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized
is based on an assessment of the probability that future
taxable income will be available against which the
deductible temporary differences and tax loss carry¬
forward can be utilized. In addition, significant judgement
is required in assessing the impact of any legal or economic
limits or uncertainties in various tax jurisdictions.

Recoverability of trade receivable and advances

Judgments are required in assessing the recoverability of
overdue trade receivables and advances and determining
whether a provision against those receivables is required.
Factors considered include the credit rating of the
counterparty, the amount and timing of anticipated future
payments and any possible actions that can be taken to
mitigate the risk of non-payment.

Provisions and Contingencies

Provisions and liabilities are recognized in the period when
it becomes probable that there will be a future outflow
of funds resulting from past operations or events and the
amount of cash outflow can be reliably estimated. The
timing of recognition and quantification of the liability
requires the application of judgement to existing facts
and circumstances, which can be subject to change. The
carrying amounts of provisions and liabilities are reviewed

44. DISCLOSURE ON LEASE TRANSACTIONS PURSUANT TO IND AS 116 - LEASES

The Company's lease asset class primarily consists of leases for land. With the exception of short-term leases, leases of low-value
and cancellable long-term leases underlying assets, each lease is reflected on the balance sheet as a right of use asset and a lease
liability.

Lease liabilities are measured at the present value of the remaining lease payments, discounted using the weighted average
borrowing rate ranging 10.20% p.a. Each lease generally imposes a restriction that, unless there is a contractual right for the
Company to sublet the asset to another party, the right of use asset can only be used by the Company. Leases are either non¬
cancellable or may only be cancelled by incurring a substantive termination fee. Some leases contain an option to extend the
lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets other than leasehold
lands as security against the Company's other debts and liabilities.

45. The business activities of the Company predominantly fall within a single reportable business segment. There are no separately
reportable business or geographical segments that meet the criteria prescribed in Ind AS 108 on Operating Segments. The
aforesaid is in line with review of operating results by the chief operating decision maker.

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant
available data. The fair values of the financial assets and liabilities represents the amount 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 following methods/ assumptions were used to estimate the fair values:

a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying
amount due to the short term maturities of these instruments.

b) Fair valuation of non-current financial assets has been disclosed to be same as carrying value as there is no significant
difference between carrying value and fair value.

There are no transfers between Level 1, Level 2 and Level 3 during the year ended March 31,2025 and March 31,2024.

53. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's business activities expose it to a variety of financial risks, namely credit risk, liquidity risk, market risk and commodity
risk. The Company's senior management has overall responsibility for the establishment and oversight of the Company's risk
management framework. The Company has constituted a Risk Management Committee which is responsible for developing
and monitoring the Company's risk management policies. The key risks and mitigating actions are also placed before the Audit
Committee of the Company. The Company's risk management policies are established to identify and analyse the risks faced by
the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management
of these risks. The Company's senior management is responsible for formulating an appropriate financial risk governance
framework for the Company and periodically reviewing the same. The company's senior management ensures that financial risks
are identified, measured and managed in accordance with the Company's policies and risk objectives. The company's senior
management review and agree to policies for managing each of these risks, which are summarised below:

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 prices comprise three types of risk: interest rate risk, foreign currency risk and price risk.

(i) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because
of changes in market interest rates. In order to optimize the Company's position with regards to interest income and
interest expenses and to manage the interest rate risk. The Company's exposure to the risk of changes in market interest
rates relates primarily to long term debt. The Company don't have any long term borrowings except vehicle loans on
fixed interest rate basis, therefore sensitivity analysis is not given. As regards working capital borrowing, the Company
has floating rate of interest. The impact of interest rate on working capital not determinable, therefore sensitivity
analysis is not given.

(ii) Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes
in foreign exchange rates. Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The functional currency of the Company is Indian Rupees (T). Most of the
Company's transactions are carried out in Indian Rupees. Exposures to currency exchange rates mainly arise from the
Company's overseas sales and purchases which are primarily denominated in US Dollars ('USD') and Euro ('EURO').

The Company has limited exposure to foreign currency risk as certain transactions of the Company act as a natural
hedge as a portion of both assets and liabilities are denominated in similar foreign currencies.

The carrying amounts of the Company's foreign currency denominated monetary items are restated at the end of each
reporting period. Foreign currency denominated financial assets and liabilities which expose the Company to currency
risk are as follows:

(iii) Price risk

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The
Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in
operations. The company uses prevailing market price method to buy the material, as inventory of raw material and
sometimes for procurement of material, majority of transactions have short term fixed price contract.

B) Credit Risk

Credit Risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage
this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the
financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual
risk limits are set and periodically reviewed on the basis of such information.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend,
industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss
experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional
provision considered.

The Company extends credit to customers as per the contractual obligation and internal credit policy. Any deviation are
approved by appropriate authorities, after due consideration of the customers credentials and financial capacity, trade
practices and prevailing business and economic conditions. The Company's historical experience of collecting receivables
and the level of default indicate that credit risk is low and generally uniform across markets; consequently, trade receivables
and contract assets are considered to be a single class of financial assets. All overdue customer balances are evaluated taking
into account the age of the dues, specific credit circumstances, the track record of the customers etc. Loss allowances and
impairment is recognized as per the Company policy.

The credit risk for cash and cash equivalents and bank deposits including interest accrued thereon is considered negligible,
since the counterparties are reputable banks with high quality external credit ratings. The credit risk for loans o subsidiary
company including interest accrued thereon is also considered negligible since operations of these entities are regularly
monitored by the Company and these companies have shown considerable growth.

C) Liquidity Risk

Liquidity risk is the risk that the company will encounter difficulty in meeting financial obligations due to shortage of funds.
The company exposure to liquidity risk arises primarily from mismatch of the maturities of financial assets and liabilities.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market
positions. Due to the dynamic nature of the underlying businesses, Company maintains flexibility in funding by maintaining
availability under committed credit lines. Management monitors rolling forecasts of the Company's liquidity position
(comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

56. ADDITIONAL REGULATORY INFORMATION

a) All the immovable property (other than properties where the Company is the lessee and the lease agreements are duly
executed in favour of the lessee) whose title deeds are held in the name of the company.

b) There are no Loans or Advances in the nature of loans which has been granted to promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are: (i) repayable on
demand; or (ii) without specifying any terms or period of repayment.

c) The Company has not entered into any scheme of arrangement in terms of sections 230 to 237 of the Companies Act, 2013
during the year or in the previous year.

d) The Company does not have any Benami property and no proceedings have been initiated or pending against the Company for
holding any Benami property, under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the rules made thereunder.

e) The Company does not have any transactions with struck off companies under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956.

There are no charges or satisfaction yet to be registered with Registrar of Companies (ROC) beyond the statutory period.
The Company has not traded or invested in Crypto currency or Virtual Currency during the current and previous financial year.

f) The Company has not advanced or provided loan to or invested funds in any entity(ies) including foreign entities
(Intermediaries) or to any other person(s), 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.

g) 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.

h) The Company has not undertaken any 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.

i) The Company has not been declared a 'Wilful Defaulter' by any bank (as defined under the Companies Act, 2013) or
consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

j) 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.

k) The borrowings obtained by the Company from banks have been applied for the purposes for which such loans were taken.

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

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

57. The company is doing further research in enhanced recovery of oil from low performing oil well globally, the expenditure incurred
is debited to intangible assets under development.

58. The Standalone Financial Statements were authorised for issue by the directors on May 29, 2025.

59. The figures for the previous year have been regrouped and rearranged wherever found necessary to make them comparable with
those of current year.

The accompanying notes are an integral part of the standalone financial statements.

As per our report of even date attached For and on behalf of Board of United Drilling Tools Limited

For Sarupria Somani & Associates Sd/- Sd/-

Chartered Accountants Pramod Kumar Gupta Inderpal Sharma

F R No. 010674C Managing Director Whole-time Director

DIN - 00619482 DIN - 07649251

Sd/-

CA Miral Bipinbhai Mehta Sd/- Sd/-

Partner Preet Verma Pandian Kalyanasundaram

M. No. FCA - 145361 Independent Director Independent Director

UDIN - 25145361BMLKCA7291 DIN - 09124335 DIN - 02568099

Sd/- Sd/-

Date : 29/05/2025 Manoj Kumar Arora Anand Kumar Mishra

Plcae : Noida Chief Financial Officer Company Secretary