ix. Provisions

A provision is recorded when the Company has a present legal or constructive obligation as
a result of past events, an outflow of resources would probably be required to settle the
obligation and the amount can be reasonably estimated. The estimated liability for product
warranties is recorded when products are sold on technical evaluation.

Provisions are measured at the present value of management's best estimate of the
expenditure required to settle the present obligation at the end of the reporting period. The
discount rate used to determine the present value is the pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The
increase in the provision due to the passage of time is recognized as interest expense.

x. Borrowings

Borrowings are initially recognized at fair value, net of transaction cost incurred.
Borrowings are subsequently measured at amortized cost. Any difference between
proceeds (net of transaction cost) and the redemption amount is recognized in profit or
loss throughout the borrowings using the effective interest method. Fees paid on the
established loan facilities arc recognized as the transaction cost of the loan, to the extent
that some or all of the facilities will probably be drawn down.

Borrowings are discharged from the balance sheet when the obligation specified in the
contract is discharged, cancelled, or expired. The difference between the carrying amount
of a financial liability that has been extinguished or transferred to another party and the
consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognized in profit or loss as other gain/ (loss).

Borrowings are classified as current liabilities unless the Company has an unconditional
right to defer settlement of the liability for at least 12 months after the reporting period.

xi. Current and non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-
current classification.

Cash and Cash equivalent are treated as current unless restricted from being exchanged or
used to settle a liability for at least twelve months. In respect of other assets, it is treated as
current when it is expected to be realized or intended to be sold or consumed in the normal
operating cycle. It is held primarily for trading, expected to be realized within twelve
months after the reporting date. All other assets are classified as non-current.

A liability is treated as current when expected to be settled in the normal operating cycle, it
is held primarily for trading, it is due to be settled within twelve months after the reporting
period. There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their
realization in cash and cash equivalents. The Company has identified twelve months as its
operating cycle.

xii. Earnings per Share (EPS)

Basic earnings per share is computed by dividing the profit after tax by the weighted
average number of equity shares outstanding during the year. Diluted earnings per share is
computed by dividing the profit after tax as adjusted for dividend, interest, and other
charges to expense or income relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered for deriving basic earnings per share
and the weighted average number of equity shares which could have been issued on the
conversion of all dilutive potential equity shares.

As per our report attached hereto For and on behalf of the board

For KGS &ASSOSIATES IYKOT HITECH TOOLROOM LTD

Chartered Accountants
Firm Reg:01O8O6S

CA.A Arul Bright Ms.LIKHITTA DUGAR Velli Paramasivam

Partner Executive Director Director

Membership No.209013 DIN: 09768742 DIN: 09766538

UDIN:25209013BMIUBN6307

Date: 22.05.2025

Place: Chennai

Mr.B.Thinagaran Mr.Subramanian Sekhar

Chief Financial Officer Company Secretary

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