2.2 Rights, preferences and restrictions attached to shares Equity Shares :

The Companyhas one class ofequity shares having a face value of Rs.10/- per share. Each shareholder is eligiblefor one vote per share held. In the event of dividend proposed bythe Board ofDirectors the same is subject to the approval of the shareholders in the ensuing Annual General Meeting except in caseof Interim dividend.In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their respective shareholding.

2.3 Allotment of Bonus Shares during preceding five years:

The Company has allotted 70,00,000 Equity Shares as fully paid up shares by way of bonus shares during financial year 2022-23.

The Unutilised funds of Rs.662.81 Lakhs from IPO proceed have been kept with Schedule Bank in the form of Fixed Deposits.

2.7 Events after the reporting date:

The Board of Directors of the Company have recommended final dividend for the financial year 2024-25 @11% at Rs.1.10 per share aggregating to Rs.99.55 lakhs on 90,50,000 equity shares of Rs.10/-each fully paid. This will be paid after approval by shareholders at the ensuing Annual General Meeting.

4.2 Secured Loans:

From Small Industrial Development Bank of India (SIDBI):

a) SPEED Scheme

Term Loan sanctioned amount was of Rs.100.00 Lakhs under SIDBI - loans for Purchase of Equipment's for Enterprise's Development (SPEED) Scheme : Interest Rate- 9.35% p.a.Secured against composite hypothecation of all equipment, plant & machinery and other assets of Company which have been acquired under the (SPEED) Scheme. Payable in 54 monthly instalment, First 53 Instalments of Rs.1.85 Lakhs each ( Now Reduced to Rs.1.43 Lakhs on account of receipt of Government Subsidy of Rs. 15.00 Lakhs ) and last 54th instalment of Rs.1.95 Lakhs beginning from January 2020.This Loan has been fully settled during the year.

b) PRATHAM Scheme

Term Loan sanctioned amount was of Rs.41.50 Lakhs under SIDBI Scheme for Priority Assistance to MSME's based on Hybrid or Alternate Security Model (PRATHAM) Scheme Interest Rate- 9.45% p.a.

Secured against composite hypothecation of all equipment's, plant & machinery and other assets of the Company which have been or proposed to be acquired under the PRATHAM scheme. Payable in 54 monthly installment, First 53 Installments of Rs.0.77 lakhs each and last 54th installment of Rs.0.77 lakhs beginning from June 2020.This Loan has been fully settled during the year.

c) TWARTI Scheme

Term Loan sanction amount was of Rs.27.50 Lakhs under SIDBI Scheme for EMERGENCY CREDIT LINE GUARANTEE SCHEME (ECLGS) TWARIT Scheme Interest Rate- 8.5 % p.a. Secured against composite hypothecation of all equipments, plant & machinery and other assets of the Company which have been or proposed to be acquired under the TWARIT scheme. Payable in 48 monthly installment, First 47 Installments of Rs.0.57 lakhs each and last 48th installment of Rs.0.59 lakhs beginning from August, 2020.This Loan has been fully settled during the year.

d) ARISE Scheme-1

Term Loan sanctioned amount of Rs.161.30 Lakhs under SIDBI Scheme - ARISE Scheme. Interest Rate-6.75 % p.a. Secured against composite hypothecation of all equipments, plant & machinery and other assets of the Company which have been or proposed to be acquired under the ARISE scheme. Payable in 60 monthly installment, First 59 Installments of Rs.2.73 lakh each and last 60th installment of Rs.2.74 lakh beginning from August, 2022.

e) ARISE Scheme-2

Term Loan sanctioned amount of Rs.265.00 lakhs under SIDBI Scheme -ARISE. Interest Rate-8.00% p.a. Secured against composite hypothecation of all equipments, plant & machinery and other assets of the Company which have been or proposed to be acquired under the ARISE scheme as well as all movable assets charged by way of extension of hypothecation charge created by the Company in favour of SIDBI for securing there earlier term loans of Rs.100.00 lakhs, Rs.41.50 lakhs, Rs.27.50 lakhs and Rs.163.81 lakhs vide Deed of Hypothecation dated 12th July 2019, 18th November, 2019, 13th August, 2020 and 05th August, 2022. Payable in 60 monthly installment, First 59 Installments of Rs.4.42 lakhs each and last 60th installment of Rs.4.22 lakhs beginning from February, 2023.

f) Platinum Scheme

Term Loan sanctioned amount of Rs.265.00 lakhs under SIDBI Scheme - Privilege Customer Scheme (PCS) Platinum. Interest Rate-8.60% p.a. Secured against composite hypothecation of all equipments, plant & machinery and other assets along with extension of lien on FDR Issued by SIDBI against earlier financial Assistance under SPEED, PRATHAM, TWARTI and ARISE Schemes . Payable in 60 monthly installment of Rs.4.42 lakhs each beginning from September,2024.

g) Canara Bank Car Loan

Term Loan Sanctioned amount Rs.9.35 lakhs against purchased of Vehicle. Rate of Interest 10% p.a. Secured against Motor Car purchased from the said proceed. Repayable in 84 equated monthly installment beginning from November 2022.

24.1 The Company is having defined benefit plans for gratuity. The cost of providing such defined

benefits is determined by using the projected unit credit method of actuarial valuation made at the end of the year. Further the Company has created a Trust with respect to establishment of Funded Group Gratuity (cash accumulation) Scheme through Life Insurance Corporation of India. Contribution is made to such fund based on the actuarial valuation.

33 JOINT VENTURE

During the year, the Company has entered into a Joint Venture Agreement with High Technology FZ LLC (HiTech) to establish a Joint Venture entity namely- Sealtech Seals Repairs and Maintenance- LLC (Sealtech LLC) in UAE to carry the business of Seals Repairs and Maintenance in UAE. According to the Shareholders' Agreement dated December 18, 2024, the shareholding in the said Joint Venture will be 50% of the Sealamtic India Limited and 50% High Technology FZ LLC. The Sealtech LLC has been incorporated on December 18, 2024.

As per the Commercial Registration Certificate dated December 18, 2024 issued by Abu Dhabi Registration Authority , the paid up capital of Sealtech LLC will be 200000 (Two Lakhs) Emirati Dirhams. However, no amount was subscribed or remitted during the year, and no transactions were carried out by the Sealtech LLC during the financial year 2024-25.

34 NO CONSOLIDATED FINANCIAL STATEMENTS ARE PREPARED

As stated in para 33 in the notes to the financial statements above, during the year the Company did not remit or subscribe any amount to the newly incorporated Joint Venture Sealtech LLC. Since no transactions occurred during the financial year 2024-25 nor any amount invested, there are no figures for consolidation, hence no consolidated financial statements are prepared.

35 SEGMENT REPORTING:

35.1 The Company is exclusively engaged in the business of Mechnical Seals and allied activities, which constitutes a single reportable business segment. Accordingly, no separate segment information is disclosed in the financial statements.

36 In the opinion of the Board, the Current Assets, Loans and Advances have a value on realisable in the ordinary course of business at least equal to the amount at which they are stated and all known liabilities provided for.

37 Expenditure incurred on Corporate Social Responsibility (CSR) activities:

Gross amount required to be spent during the year is Rs.26.41 Lakhs (Previous year Rs.23.18 Lakhs)

Amount Spent (Donation Given) till 31st March 2025 is Rs.26.41 Lakhs (Previous year Rs.23.19 Lakhs)

38 On developemnent of assets, which were shown under intangible assets underdevelopemnt, the Company have now reclassified it as tangible assets for its own manufacturing and production processes. Accordingly, the cost incurred in the internal development of these assets have been capitalised under Property Plant and Equipment.

Note:

a. Debt coverage ratio has significantly improved due to improved in the revenue and earnings and also due to net capital turnover ratio.

b. Profit after tax has increased during the current year FY 24-25 due to increase in revenue and improvement in profitability and operating efficiency resulting into increase in return on equity ratio.

^c- Due to growth in Revenue along with increase in production and due to improve operating efficiencies in the business cash balance, receivables and inventory balance is increased which has resulted in working capital turnover ratio.

^d- Increase in earnings due to better operating margins in line with Revenue growth and also internal accruals. All these factors have contributed to a better return on capital employed ratio.

40. OTHER STATUTORY INFORMATION:

i) Loans or Advances in the nature of Loans to promoter, directors, KMPs and the related parties

The Company had not granted loans or advances in the nature of loans to promoters, directors, KMPs and other related parties.

ii) Details of Benami Property held

The Company does not have any Benami property, as such no proceeding under the Benami Transactions (Prohibition) Act, 1988 and the Rules made thereunder has been initiated or pending against the Company for holding any Benami property.

iii) Borrowings from banks or financial institutions on the security of current assets

The Company has not availed cash credit facility from bank/financial institution hence is not required to file any periodical statement to bank or financial institution against borrowing.

iv) Wilful Defaulter

The Company has not been declared as Wilful Defaulter by any bank or financial institution or other lender.

v) Relationship with Struck off Companies

There were no transactions with the companies struck off under Sec. 248 of the Companies Act, 2013 or Sec. 560 of the Companies Act, 1956 during the year as such there is nothing to disclose.

vi) Registration or satisfaction of charges with Registrar of Companies

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the stipulated period.

vii) Utilisation of Borrowed funds and share premium:

^a. 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) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

b. 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) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

viii) Crypto Currency

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

ix) Undisclosed Income

The Company does not have any transaction which is 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

Figures of the financial year have been regrouped/reclassified wherever necessary to make them comparable with that of the year.