2.15 Pro vision, Contingent Liabilities and Contingent Assets:

a Provision is recognised in the accounts when there is a present obliga tion as a result of
past event(s) and it is probable that an outflow of resources will be required to settle the
obligation and reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on the best estimate required to settle the
obligation at the reporting date. These estimates reviewed at each reporting date and
adjusted to reflect the current best estimate.

b Contingent liabilities are disclosed un less the possibility of outflow of resources is remote.
Contingent assets are not recognised in the financial statements.

2.16 Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing
and financing activities. Cash flow from operating activities is reported using indirect
method, adjusting the profit before tax excluding exceptional items for the effects of:

(i) changes during the period in inventories and operating receivables and payables,
transactions of a non-cash nature;

(ii) n on-cash ite ms such as de pre ciation, pro visions, unrealised foreign cu rrenc y gains and
losses; and

(iii) all other items for which the cash effects are investing or financing cash flows.

Disclosure regarding Cash Credit Limit with Axis Bank Limited

Axis Bank Ltd. CC A/c. 914030041250678, is primarily secured by hypothecation of current assets both present
and future of the company.

Further mortgage of industrial property situated at plot no. 2234, GIDC lodhika Industrial Estate, Kalawad road,
Village : Metoda Taluka: Lodhia, Rajkot

The facility is futher guaranteed by the personal gurantee of Mr. Rupeshbhai Mehta
Repayment Terms: Repayable on Demand.

34 EMPLOYEE BENEFITS
A. Gratuity

The Company has a defined benefit gratuity plan (funded) and is governed by the Payment of
Gratuity Act, 1972. Under the Act, which provides a lump sum payment to vested employees at
retirement, death, incapacitation or termination of employment, of an amount based on the
respective employee's salary and the tenure of employment. Vesting occurs on completion of 5
continuous year of services as per Indian Law. However, no vesting condition applies in case of
death. The scheme is funded with Life Insurance Corporation of India (LIC) in form of a qualifying
insurance policy for future payment of gratuity to the employees.

The sensitivity analysis have been determined based on reasonably possible changes of the
respective assumptions occurring at the end of the reporting period, while holding all other
assumptions constant.

The sensitivity analysis presented below may not be representative of the actual change in the
projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation
of one another as some of the assumptions may be correla te d.

Significant actuarial assumptions for the determination of the defined benefit obligation are
discount rate , expected salary increase and withdrawal rate.

Liabilities are very less sensitive due to change in mortality assumptions. Hence,sensitivities due to
change in mortality are ignored.

Furthermore, in presenting the below sensitivity analysis, the present value of the projected benefit
obligation has been c alculated using the projected unit credit method at the end of the reporting
period, which is the same method as applied in calculating the projected benefit obligation as
recognised in the balance sheet. There was no change in the methods and assumptions used in
preparing the sensitivity analysis from prior years.

B. Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The company
has no obligation, other than the contribution payable to the provident fund. The company
recognizes contribution payable to the provident fund scheme as an expenditure, when an
employee renders the related service. If the contribution payable to the scheme for service
received before the balance sheet date exceeds the contribution already paid, the deficit
payable to the scheme is recognized as a liability after deducting the contribution already paid. If
the contribution already paid exceeds the contribution due for services received before the
balance sheet date, then excess is recognized as an asset to the extent that the pre payment will
lead to, for example, a reduction in future payment or a cash refund.

35 DISCLOSURE OF TRANSACTION WITH RELATED PARTIES AS REQUIRED BY THE INDIAN ACCOUNTING STANDARD-
24 (Cont.)

All Related Party Transactions entered during the year were in ordinary course of the business and on arm's
length basis and amount showing inclusive of ta x. Outstandi ng balances at the year-end are unsecured
and settlement occurs in cash.

There have been no guarantees provided or received for any related party receivables or payables. For the
year ended 31st M arch, 2025, the Company has not record ed any impairment of rec eivables relating to
amounts owed by related parties. This assessment is undertaken each financial year through examining the
financial position of the related party and the market in which the related party operates.

36 FINANCIAL RISK MANAGEMENT
A Financial Risk Factors

The Company's principal financial liabilities comprise borrowings, leases, trade and other payables. The
main purpose of these financial liabilities is to manage finances for the Company's operations. The
Company has trade and other receivables, cash and short-term deposits that arise directly from its
operations. The C ompany's activities expose it to a variety of financial risks detaile d below:-

a Market Risk

Market risk is th e ris k that the fair value or future cash flows of a financial instrument will fluctua te because of
changes in m arket p rices. Market prices comprise three types of risk: currenc y rat e ris k, interest ra te risk and
other pri ce ris ks, such a s c ommodity risk. Foreign currency risk is the risk that the fair value or futu re cash flows
of a fin ancial in strument will fluctuate because of changes in foreign exchang e rates. Interest ra te risk is the
risk that the fair value orfuture cash flows of a financial instrument will fluctuate because of changes in
market interest rates. This is based on the financial assets and financial liabilities held as at March 31, 2025
and March 31,2024.

The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post¬
employment benefit obli gations provisions and on the non-fin ancial as sets and liabilities. The se nsitivity of
the relevant Statement of Profit and Loss item is the effect ofthe assumed changes in the respective market
risks. The Company's activities expose it to a variety of financial risks, including the effects of changes in
foreign currency exchange rates and interest rates.

Foreign Exchange Risk and Sensitivity

The Company transacts business primarily in USD and Euro. The Company has foreign currency trade
payables and receivables and is therefore, exposed to foreign exchange risk.

b Commodity Price Risk and Sensitivity

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.

c Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss.

Credit risk arises from cash and cash equivalents, credit exposures from custome rs including outstanding
receivables and other financial instruments.

Trade receivables a nd contract assets

The Company extends credit to customers in normal course of business. The Company considers factors
such as credit track record in the market and past dealings for extension of credit to customers. The
Company monitors the payment track record of the customers. Outstanding customer receivables are
regularly monitored. The Company evaluates the concentration o f risk with respect to trade receivab les as
low, as its customers are located in several jurisdictions and industries and operate in largely independent
markets. The Company has obtained advances and security deposits from its customers & distributors, which
mitigate the credit risk to an extent.

Provision for Expected Credit Loss

The Company extends credit to customers as per the internal credit policy. Any deviation are approved by
appropriate officials, 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 defau l t indicate t hat c re dit risk is low and gen erally unif orm across
markets; consequentl y, trade receivables are considered to be a sing l e class of financial assets. All overdue
customer balances are evaluated taking in to account the age of the dues, specific c redi t circumstances,
the track record of the customers etc. Loss allowances and impairment is recognised as per the Company
policy.

The Company uses Lifetime expected credit losses (simplified approach) for doubtful trade receivables

36 FINANCIAL RISK MANAGEMENT (Cont.)

Others

All of the entity's debt investments (securities, loan to related parties and others and security deposits) at
amortised cost are considered to have low credit risk, when they have a low risk of default and the
issuer/holder has a strong capacity to meet its contractual cash flow obligations in the near term. For cash
and cash equivale nts, the Company consid ers factors such as trac k record, size of the institution, market
reputation and service standards to select the banks with which balances and deposits are maintained. The
Company does not maintain sig nificant cas h balances oth er than those required for its day to day
operations. The company invests in liquid schemes of mutual fund which have a very short maturity. These
schemes are readily convertible and have insignifcant changes in value and are he ld as means for settling
liabilities or for working capital limits from banks. The loss allowance recognised during the period was
therefore limited upto 12 months expected losses.

d Liq uidity Risk

Liquidity risk is th e risk that the Company may not be able to meet its present an d future ca sh and collateral
obligations without incurring unacceptable losses. The Company's overall risk management programme
focuses on the unpredictability of f inancial markets and seeks to minimise potential adverse effects on the
Company's financial p erformance. The Company does not acquire o r issue derivativ e financ i al instruments
for trading or speculative purposes. Risk management is carried ou t under policies approved by the board
of directors. It identifies, evaluates and hedges financial risks in close co-operation with the Company's
operating units. The board provides principles for overall risk management, as well as policies covering
specific areas, such as foreign exchange risk, interest rate risk, credit risk and liquidity risk.

The Company's objective is to maintain optimum levels of liquidity to meet its cash requirements at all times.
The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The
Company monitors rolling forecasts of its liquidity requirem en ts to ens ure it has sufficient cash to meet
operational need s while maintaining suf ficient headroom on its u ndrawn committed borrowing faciliti es at
all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of
its borrowing facilities.

The table be low provides undiscounted cash flows towards non-derivative financial liabi l ities and net-settled
derivative financial liabilities into relevant maturity based on the remaining period at the balance sheet to
the contractual maturity date.

e Competition Risk

Th e Company faces competition from local and foreign competitors. Nevertheless, it believes that it has
competitive advantage in terms of high quality products and by continuously upgrading its expertise and
range of products to meet the needs of its customers.

f Capital Risk Management

The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the
Company m ay adjust the dividend payment to shareholders, return c apital to shareholders or issue new
shares. The primary objective of the Company's capital management is to maximize the shareholder value.
The Company's primary objective when managing capital is to ensure that it maintains an efficient capital
structure and healthy capital ratio and safeguard the Company's ability to continue as a going concern in
order to support its business and provide maximum returns for shareholders. The Company also proposes to
maintain an optimal capital structure to reduce the cost of capital. No changes were made in the
objectives, policies or p rocesses during t he year ended March 31,2025 and year ended March 31,2024. The
Company m onitors capital u sing gearing ratio, which is net debt divided by sum of capital and net de bt.

B Fair Value Heirarchy

Th e table below analysis financial instruments at fair value, by valuation method. The different levels have
been i dentified as follows:

Level 1: - Quoted prices in active markets for identified assets or liabilities.

Level 2: - Inputs other than quoted prices included with level 1 that are observable for the assets or liability,
other directly (i.e.as prices) or indirectly (i.e. derived from prices).

Level 3: - Inputs for the assets or lliabilities that are not based on observable market data (underrated
inputs).

Fair Value Measurement of Financial Liabilities

When the fa ir values of financial assets and financial liabiliti es recorded in the ba l ance sheet cannot be
measured based on quoted prices in active markets, t heir fair value is measured using valuati on techniques.
The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the
reported fair value of financial instruments.

38 Others (Cont.)

(iv No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any
other sourc es or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign
entities (“Intermediaries") with the understanding, whethe r recorded in writing or otherwise, that the
Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
The Company has n ot re ceived any fund from any party(s) (Fundi ng Party) with the understanding that the
Comp any shall whether, directly or indirectly lend or inves t in other perso ns o r entities identified by or on
behalf of the Company (“Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of
the Ultimate Be neficiaries.

(v) There were no material changes and commitments affecting the financial position of the Company which
occurred between the end of the financial year to which this financial statement relates on the date of this
Integrated Annual Report.

(vi Ratios ha ve been annexed separately in the report

39 Exceptional Items

On 2n d Fe bruary 2025, a fire incident occurred due to short circuit in the Unit-2 godown premises located at
Metoda Gl DC near registered office of t he company. The fire was controlled within time and there were no
human injuries or casualties reported except some of company's finished stock have been
affected/damaged due to this fire incident.

There is adequate in surance c overage under I ndustry All Risk Policy for stock of the company. Th e company
has lodged intimation of the incident t o the insurance company and the survey is currentl y undergoing.

The primary assessment of loss on book value of inventories is Rs.4,39,08,851 and has recognized insurance
claim receivable of Rs.3,62,38,654 to the extent of aforesaid losses. The aforesaid mentioned losses and
corresponding credit arising from the insurance claim receivable has been presented on a net basis
Rs.76,70,197 under exceptional items in the above result for the quarter and year ended March 31,2025.

40 Segment Information

The Company primarily operates in the CNC Turning Centers, Vertical Machine Centers(VMC), Horizontal
Machine Centers(H MC), Cylindrica l Grinder, Verticle Turrent Lathe(VTL), Turn Mill Ce nters, Drill Tap
Cente r(DTC), Twin Spindle T urning & VMC along with robotic automation solutio ns. The board of directors of
the Company, which has been identified as being the chief operating decision maker (CODM), evaluates
the Compa ny 's performan ce, allocate resources based o n the analysis of the va rio us performance
indicators of the company as a single unit. Therefore, Segment Reporting is not applicable to the Company.

The geographical segment has been considered for disclosure as secondary segment.

Two secondary segments have been identified based on the geographical locations of customers i.e.
domestic and export. Information about geographical segments are as below.

Information about Major Customers are as below

Any of the company's customer do not account for 10% or more revenue during the financial year ending
on 31.03.2025 and 31.03.2024

41 Goods and Service Tax

Expenses and assets a re recognised net of the amount of sales/ value added taxes/ goods and services tax
paid, except:

• When the tax in curred o n a purchase of assets or services is not recoverable from the taxation authority, in
which case, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the
expense item, as applicable; and

• When receivables and payables are stated with the amount of tax included. The net amount of tax
recoverable from, or p ayable to, t he t axation authority is included a s part of receivables or payab les in the
balance sheet.

42 Benami Transactions

There is no proceedings in itiated or pending agains t the co mpany for holdi ng any Ben ami Property under
the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and Rules made there under during the year.

43 Undisclosed Income

There is no tax assessment under The Income Tax Act, 1961 for non-disclosure or surrender of undisclosed
income during the year.

44 Crypto Currency

The company has not traded nor invested in the Virtual Currency - Crypto Currency during the year.

45 Events after the balance sheet date

Events after the Balance Sheet Date - The Board of directors have recommended dividend of Rs.1,50,06,240
i.e. Rs.1.5 Per S hare for the financial ye ar 2024-25, which is subjec t to the approv al of the sh areholders in the
ensuing annual gene ral meeting. These fi nancial stateme nts were app roved an d ado pted by the board of
directors o f the Company in their meetin g held on May 29, 2025 a nd are subject to shareholder approval at
the forthcoming Annual General Meeting of shareholders.

46 Au dit Trail

As per the proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account
using accounting software which has a feature of recording audi t tra il ( Ed it Log) facili ty is complied by the
company.