A. Nature and purpose of reserves:
1. Capital Redemption Reserve (CRR):
The Company is created Capital Redemption Reserve form it's Retained for redemption of Cumulative Redeemable Preference Shares. Capital Redemption Reserve can be utilised as per the provisions of the Companies Act, 2013.
2. Security Premium:
Security premium is created when shares are issued at premium. The reserve can be utilised in accordance with the provisions of the Act.
3. General Reserve
General reserve was created from time to time by way of transfer of profits from retained earnings for appropriation purposes. The reserve can be utilised as per the provisions of the Act.
4. Capital Reserve:
On the date of transition to Ind AS the balance outstanding in the Revaluation Reserve against Property, Plant & Equipment as per Previous GAAP has been transferred to the Capital Reserve.
5. Retained Earnings
Retained earnings are the accumulated profits earned by the Company till date, less transfer to general reserves, dividend (including dividend distribution tax) and other distributions made to the shareholders. Retained Earnings can be utilised as per the provisions of the Act.
5. Other Comprehensive income
The company has elected to recognise changes in the fair value of investments in equity instruments and changes in remeasurement of gratuity obligation- actuarial gains in other comprehensive income.
General Description, details of security and other conditions attaching to:
BANK OF BARODA
Cash Credit (CC) availed from Bank of Baroda is secured by hypothecation of Goods/ Book Debts/ Current Assets/ Movable Machinery/ Vehicles (Other than those financed by Other Banks / NBFCs)/ other fixed assets. The CC is further secured by Eqitable mortgage of selfoccupied Industrial Property located at S.No.691, New No.343 at Majagaon Udyambag, Belgaum,Karnataka-590008. The tenure of twelve months subject to payable on demand/ annual review. There is an unconditional and irrevocable personal guarantee of a Managing director of the company {Refer Note 5.42} and the loan is further secured by corporate guarantee given by Mohta Capital Pvt Ltd (MCPL). The faciliy amount is ^ 750 Lakhs with a floaing interest rate of 7.35% (0.50% spread over and above Bank's BRLLR and SP Rate. The interest is payable monthly.
The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts . There were no material discrepancies
(iii) Spl. C. S. No. 546/2016
One of the Parties of the company namely "Mahesh Enterprises" has filed a suit for recovery of ^ 69.20 Lakhs (Previous Year: ^ 69.20 lakhs) in the Hon'ble Civil Court of Nagpur. The case has been withdrawn by party.
(iv) A Party of the company namely "D. Khandelwal Steel Corporation Limited" has filed a suit for recovery of ^ 146.36 Lakhs (Previous Year: ^ 146.36 Lakhs) in the Hon'ble Civil Court of Nagpur. The case is till pending.
Note: The Company has been advised that the above demands/ cases is likely to be either deleted or substantially reduced and shall not have any material adverse effect on its financial position. Hence, No provision has been created for the same.
b) COMMITMENTS
Capital commitment (net of advance) Rs. 33.79 Lakhs (Refer note 5.07)
xiv) Expected contributions for the next year
The company has contributed Rs. 49.24 Lakhs to its gratuity fund in 2026. The Company has informed me that it intends to contribute Rs. 44 Lakhs towards its gratuity fund in 2027.
xv) Sensitivity Analysis
Sensitivity analysis indicates the influence of a reasonable change in certain significant assumptions on the outcome of the Defined benefit obligaion (DBO) and aids in understanding the uncertainty of reported amounts. Sensitivity analysis is done by varying one parameter at a time and studying its impact.
xvi) Risk exposure and asset liability matching
Provision of a defined benefit scheme poses certain risks, some of which are detailed here under, as companies take on uncertain long term obligations to make future benefit payments.
1) Liability risks
(i) Asset-Liability Mismatch Risk
Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the company is successfully able to neutralize valuation swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability management.
(ii) Discount Rate Risk
Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise can have a significant impact on the defined benefit liabilities.
(iii) Future Salary Escalation and Inflation Risk
Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management's discretion may lead to uncertainities in estimating this increasing risk.
2) Asset Risks
All plan assets are maintained in a trust fund managed by a public sector insurer viz; LIC of India. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years.
The company has opted for a traditional fund where in all assets are invested primarily in risk averse markets. The company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.
Foreign Cu rrencv Sensitivity Analysis
The Company is mainly exposed to the currency : EURO
The following table details the Company's sensitivity to a 5% increase and decrease in the R against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the R strengthens 5% against the relevant currency. For a 5% weakening of the R against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.
Equity Risk
There is no material equity risk relating to the Companys' equity investments which are detailed in note 5.05 "Investments". The Companys' equity investments majorly comprises of Long Term Investments rather than trading purpose.
Interest Risk
There is no material interest risk relating to the Company's financial liabilities which are detailed in Note 5.18, 5.22 and 5.25. Credit Risk
Credit Risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit Risk arises from Companys' activities in investments and other receivables from customers. The Company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The Company generally has set a policy of receiving 80 percent of the sale proceeds as an advance after the orders get finalized and remaining 20 percent at the time of dispatch and commissioning.
Liquidity Risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company's short-term,and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
All current financial liabilities are repayable within one year. The contractual maturities of non current liabilities are disclosed in Note No. 5.18.
Liquidity Risk Table
The following table detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial laibilities based on the earliest date on which the company can be required to pay.
5.44 Capital Management
The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors, creditors and market confidence and to sustain future development and growth of its business. In order to maintain the capital structure, the Company monitors the return on capital, as well as the level of dividends to equity shareholders. The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to all its shareholders. For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves and debt includes non-current borrowings, current borrowings and certain components of other financial liabilities.
FAIR VALUE HIERARCHY
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimates using a valuation technique.
The Company determines fair values of its financial instruments according to the following hierarchy:
Level 1 - valuation based on quoted market price: financial instruments with quoted prices for identical instruments in active markets that the Company can access at the measurement date. Level 2 - valuation using observable inputs: financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable.
Level 3 - valuation technique with significant unobservable inputs: financial instruments valued using valuation techniques where one or more significant inputs are unobservable.
There were no transfers between level 1, level 2 and level 3.
Disclosure as per PARA 91 of Ind As 113 "Fair Value Measurnments11
(a) The investments in quoted and unquoted equity shares are measured at fair value on recurring basis. The quoted shares are valued at the closing price available on the recognised stock exchange.
(b) Break up value (Level III inputs) is used to measure unquoted equity shares on a recurring basis . The difference between the last year fair value and current year is charged to Other Comprehensive Income. {Refer Note 5.38}
5.46 Segment Information
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company operates only in one Business Segment i.e. manufacturing and sale of hydraulic press machine and related equipments' which primarily includes Hydraulic Presses, Equipments and Portable rerailing equipmets and the activities incidental thereto, hence does not have any reportable Segments as per Ind AS 108 “Operating Segments".
5.48 Additional Regulatory Information as required by Schedule III to the Companies Act, 2013:
a) The title deeds of the Immovable Property (other than properties where the company is the lessee and the lease arrangements are duly executed in favour of the lessee) are held in the name of the Company.
b) The company does not have any investment property at the end of the current year and previous year. Accordingly, disclosures as required under this para is not applicable.
c) The company has not revalued its Property, Plant and Equipment during the current year and previous year.
d) The company has not granted any loans or advances in the nature of loan to promoters, directors, KMP and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, which are repayable on demand or without specifying any terms or period of repayment during the curent and the previous year. Accordingly, disclosures as required under this para is not applicable.
m) No Scheme of Arrangements has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the current year and previous year. Accordingly, disclosures as required under this para is not applicable.
n)
(A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) during the current year and previous year with the understanding (whether recorded in writing or otherwise) 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.
(B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) during the current year and previous year 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.
q) The Company has not traded or invested in Crypto Currency or Virtual Currency during the current year and previous year and therefore, the disclosures as sought is not applicable.
5.49 The Government of India, vide notification dated November 21, 2025, has notified 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 (collectively referred to as "the Labour Codes"), which consolidate and replace existing multiple labour legislations. In accordance with the requirements of Ind AS 19, "Employee Benefits," changes to employee benefit plans resulting from legislative amendments constitute a plan amendment, necessitating the immediate recognition of any variation in the cost upon such notification. Consequently, the Company has evaluated the Labour Codes and there is no impact of the same. As the underlying Rules to the Labour Codes are yet to be notified, the Company will continue to monitor further developments and will evaluate and give effect to any consequential adjustments arising subsequently in this respect.
5.50 Proposed Final Dividend for F.Y. 2025-26 is ^ 2.00 per equity share of face value of ^ 10 each amounting to ^ 43.734 lakhs (Previous Year -^. 43.734 Lakhs).
5.51 The figures for the corresponding previous year have been regrouped/ reclassified wherever necessary, to make them comparable.
5.52 All amounts in the financial statement are in ^ Lakhs.
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