q. Provisions, Contingent Liabilities and
Contingent Assets:

Provisions are recognised when there is a present
legal or constructive obligation as a result of a past
event and it is probable (i.e. more likely than not)
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. Such provisions are determined
based on management estimate of the amount
required to settle the obligation at the balance
sheet date. When the Company expects some or all
of a provision to be reimbursed, the reimbursement
is recognised as a standalone asset only when the
reimbursement is virtually certain.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects, the risks specific to the liability.
When discounting is used, the increase in the
provision due to the passage of time is recognised
as a finance costs.

Present obligations arising under onerous contracts
are recognised and measured as provisions. An
onerous contract is considered to exist when a
contract under which the unavoidable costs of
meeting the obligations exceed the economic
benefits expected to be received from it.

Contingent liabilities are disclosed on the basis of
judgment of management/independent experts.
These are reviewed at each balance sheet date and
are adjusted to reflect the current management
estimate.

Contingent Assets are not recognized, however,
disclosed in financial statement when inflow of
economic benefits is probable.

r. Revenue Recognition and Other Income:

Revenue is recognized to the extent that it is
probable that the economic benefits will flow
to the Company and the revenue can be reliably
measured, regardless of when the payment is being
made. Revenue is measured at the fair value of the
consideration received or receivable, taking into
account contractually defined terms of payment
and excluding taxes or duties collected on behalf of
the government.

Revenue from sale of goods is recognized, when the
control is transferred to the buyer, as per the terms
of the contracts and no significant uncertainty
exists regarding the amount of the consideration
that will be derived from the sale of goods.

Export incentives under various schemes notified by
the government are recognised when no significant
uncertainties as to the amount of consideration
that would be derived and that the Company will
comply with the conditions associated with the
grant and ultimate collection exist.

Interest income or expense is recognised using

the effective interest rate method. The "effective
interest rate" is the rate that exactly discounts
estimated future cash receipts or payments through
the expected life of the financial instrument to:

'- the gross carrying amount of the financial
asset; or

'- the amortised cost of the financial liability,

s. Leases:

At inception of a contract, the Company assesses
whether a contract is, or contains, a lease. A contract
is, or contains, a lease if the contract conveys the
right to control the use of an identified asset for
a period of time in exchange for consideration.
To assess whether a contract conveys the right to
control the use of an identified asset, the Company
assesses whether:

'- the contract involves the use of an identified
asset - this may be specified explicitly or
implicitly and should be physically distinct or
represent substantially all of the capacity of a
physically distinct asset. If the supplier has a
substantive substitution right, then the asset
is not identified.

'- the Company has the right to obtain
substantially all of the economic benefits from
use of the asset throughout the period of use;
and

'- the Company has the right to direct the use
of the asset. The Company has this right
when it has the decision-making rights that
are most relevant to changing how and for
what purpose the asset is used. In rare cases
where the decision about how and for what
purpose the asset is used is predetermined,
the Company has the right to direct the use of
the asset if either:

# the Company has the right to operate the asset;
or

# the Company designed the asset in a way that
predetermines how and for what purpose it will be
used.

'At inception or on reassessment of a contract
that contains a lease component, the Company
allocates the consideration in the contract to each
lease component on the basis of their relative
stand-alone prices.

Company as a lessee:

The Company recognises a right-of-use asset and
a lease liability at the lease commencement date.

The right-of-use asset is initially measured at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made at
or before the commencement date, plus any initial
direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to
restore the underlying asset or the site on which it
is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end
of the lease term. The estimated useful lives of
right-of-use assets re determined on the same basis
as those of property and equipment. In addition,
the right-of-use asset is periodically reduced by
impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be
readily determined, the Company's incremental
borrowing rate. Generally, the Company uses its
incremental borrowing rates as the discount rate.

Lease payments included in the measurement of
the lease liability comprise the following:

- fixed payments, including in-substance fixed
payments.

- variable lease payments that depend on an
index or a rate, initially measured using the
index or rate as at the commencement date.

- amounts expected to be payable under a
residual value guarantee; and

- the exercise price under a purchase option
that the Company is reasonably certain
to exercise, lease payments in an optional
renewal period if the Company is reasonably
certain to exercise an extension option, and
penalties for early termination of a lease
unless the Company is reasonably certain not
to terminate early.

The lease liability is measured at amortised
cost using the effective interest method. It is
remeasured when there is change in future lease
payments arising from a change in an index or rate,
if there is change in the Company's estimate of the
amount expected to be payable under a residual
value guarantee, or if the Company changes its
assessment of whether it will exercise a purchase,
extension or termination option.

When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in
statement of profit and loss if the carrying amount
of the right-of-use asset has been reduced to zero.

Leasehold land is amortised over the period of
lease being 99 years remaining as on the date of
purchase.

Short-term leases and leases of low-value
assets:

The Company has elected not to recognise right-
of-use assets and lease liability for the short-term
leases that have lease term of 12 months or less
and leases of low-value assets. The Company
recognises the lease payments associated with such
leases as an expense on a straight-line basis over
the lease term.

t. Income Taxes:

Income tax expense represents the sum of tax
currently payable and deferred tax. Tax is recognized
in the Statement of Profit and Loss, except to the
extent that it relates to items recognized directly in
equity or in other comprehensive income.

Current Tax:

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable
in respect of previous years. The amount of current
tax reflects the best estimate of the tax amount
expected to be paid or received after considering
the uncertainty, if any, related to income taxes.
Current tax assets and liabilities are measured at
the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and the
tax laws used to compute the amount are those
that are enacted or substantively enacted, at the
reporting date in the country where the Company
operates and generates taxable income. Current
tax assets and liabilities are offset only if there is a
legally enforceable right to set it off the recognised
amounts and it is intended to realise the asset and
settle the liability on a net basis or simultaneously.

Deferred Tax:

Deferred tax is provided using the balance sheet
method on temporary differences arising between
the tax base of assets and liabilities and their
carrying amounts for financial reporting purposes
at the reporting date.

Deferred tax liabilities are recognised for all taxable
temporary differences, except:

- When the deferred tax liability arises from
the initial recognition of goodwill or an
asset or liability in a transaction that is not a
business combination and, at the time of the
transaction, affects neither the accounting
profit nor taxable profit or loss,

Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred
tax assets are recognised to the extent that it is
probable that taxable profit will be available against
which the deductible temporary differences, and
the carry forward of unused tax credits and unused
tax losses (including unabsorbed depreciation) can
be utilised, except:

- When the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination
and, at the time of the transaction, affects
neither the accounting profit nor taxable
profit or loss.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each reporting
date and are recognised to the extent that it has
become probable that future taxable profits will
allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at
the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting
date.

Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and
the deferred taxes relate to the same taxable entity
and the same taxation authority.

Current and deferred tax is recognized in profit or
loss, except to the extent that it relates to items
recognized in Other comprehensive income r directly
in equity. In this case, the tax is also recognized in
other comprehensive income or directly or directly
in equity respectively.

Minimum Alternate Tax (MAT):

Minimum Alternate Tax (MAT) credit is recognised
as an asset only when and to the extent there is

convincing evidence that the company will pay
normal income tax during the specified period.
Such asset is reviewed at each Balance Sheet date
and the carrying amount of the MAT credit asset
is written down to the extent there is no longer a
convincing evidence to the effect that the company
will pay normal income tax during the specified
period.

u. Employee Benefits:

(a) Short term employee benefits:

All employee benefits payable wholly within
twelve months of rendering the service are
classified as short-term employee benefits.
Undiscounted value of benefits such as
salaries, incentives, allowances and bonus
are recognized in the period in which the
employee renders the related service.

(b) Long term benefits:

Defined Contribution Plans:

The Company contributes to the employee's
approved provident fund scheme. The
Company's contribution paid/payable under
the scheme is recognized as an expense in the
statement of profit and loss during the period
in which the employee renders the related
services.

Defined Benefit Plans:

Gratuity Liability is a defined benefit obligation
and is provided on the basis of an actuarial
valuation model made at the end of the
Financial Year. At present the company is not
maintaining fund with any Asset Management
Company towards gratuity.

Earned Leave:

The liabilities for earned leave are not expected
to be settled wholly within 12 months after
the end of the period in which the employees
render the related service. The liability toward
leave encashment is provided on the basis of
an actuarial valuation model made at the end
of the financial year.

v. Trade Receivables:

Trade Receivables are the amount due from the
customers for the sale of goods and services
rendered in the ordinary course of business. Trade
receivables are initially recognized at the amount
of consideration that is unconditional unless
they contain significant financing component,
when they are recognized that the fair value. The

company holds trade receivables for the receipt
of contractual cashflows and therefore measures
them subsequently at the amortized cost using
effective interest rate method. In respect of
advances received from the customers, contract
liability is recognized when the payment is made.
Contract liabilities are recognized as revenue where
the company performs under the contract ( transfer
control of the related goods or services to the
customers).

w. Trade Payables:-

These amounts represents liabilities for goods and
services provided to the company prior to the end
of financial year which are unpaid. The amounts are
unsecured and are usually paid as per the terms of
contract with suppliers.

x. Inventories:

a. Raw Materials, Work in Progress, Finished
Goods, Packing Materials, Stores, Spares and
Consumables are carried at the lower of cost
and net realisable value after providing cost of
obsolescence.

b. In determining the cost of Raw Materials,
Packing Materials, Stores, Spares and
Consumables, FIFO Method is used. Cost of
Inventory comprises of all costs of purchase,
duties, taxes (other than those subsequently
recoverable from tax authorities) and all other
costs incurred in bringing the inventory to
their present location and condition.

c. Cost of Finished Goods includes the cost
of Raw Materials, Packing Materials, an
appropriate share of fixed and variable
production overheads and other costs incurred
in bringing the inventories to their present
location and condition.

d. Cost of Stock in Trade procured for specific
projects is assigned by specific identification
of individual costs of each item.

y. Borrowing Costs:

Borrowing costs directly attributable to the
acquisition, construction or production of an asset,
that necessarily takes substantial period of time to
get ready for its intended use or sale, are capitalized
as part of the cost of the respective asset. All other
borrowing costs are expensed in the period in
which they are incurred. Borrowing costs consist
of interest, exchange differences arising from
foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost that

an entity incurs in connection with the borrowings
of the funds.

z. Earnings Per Share:

Basic EPS is calculated by dividing the profit for the
year attributable to equity holders of the Company
by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements and stock split in equity shares
issued during the year and excluding treasury
shares. The weighted average number of equity
shares outstanding during the period and for
all periods presented is adjusted for events, such
as bonus shares and stock split, other than the
conversion of potential equity shares that have
changed the number of equity shares outstanding,
without a corresponding change in resources.

Diluted EPS adjust the figures used in the
determination of basic EPS to consider.

'- The after-income tax effect of interest and
other financing costs associated with dilutive
potential equity shares, and

'- The weighted average number of additional
equity shares that would have been
outstanding assuming the conversion of all
dilutive potential equity shares.

aa. Segment Reporting:

Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision maker. The
Company has identified Managing Director as
Chief Operating Decision Maker.

bb. Foreign Currency Transactions:

a. Functional and presentation currency:

Items included in the Standalone
Financial statements of the Company
are measured using the currency of the
primary economic environment in which
the entity operates ('the functional
currency'). The Standalone Financial
Statements are presented in Indian
rupee (INR ' which is also the Company
functional and presentation currency of
holding Company.

b. Transactions and balances:

Foreign currency transactions are
translated into the functional currency
using the exchange rate prevailing at
the date of the transactions. Foreign
exchange gains and losses resulting from

a foreign operation, the component of
OCI relating to that particular foreign
operation is reclassified to the statement
of profit or loss.

Any goodwill arising in the acquisition/
business combination of a foreign
operation and any fair value adjustments
to the carrying amounts of assets and
liabilities arising on acquisition are
treated as assets and liabilities of foreign
operation and translated at the spot rate
of exchange the reporting date.

cc. Forward Contracts in Foreign
Currencies:

The company uses foreign exchange
forward contracts to hedge its exposure
to movements in foreign exchange
rates. The use of these foreign exchange
forward contracts reduces the risk or cost
to the company and the company does
not use the foreign exchange forward
contracts for trading or speculation
purposes. The company records the
gain or loss on effective hedges in the
foreign currency fluctuation reserve
until the transactions are complete. On
completion, the gain or loss is transferred
to the profit and loss account of that
period. To designate a forward contract
as an effective hedge, Management
objectively evaluates and evidences with
appropriate supporting documents at
the inception of each contract whether
the contract is effective in achieving
offsetting cash flows attributable to
the hedged risk. In the absence of a
designation as effective hedge, a gain or
loss is recognized in the profit and loss
account.

dd. Government Grants and Subsidies:

Grants / subsidies that compensate the
Company for expenses incurred are
recognised in the Statement of Profit
and Loss as other operating income on
a systematic basis in the periods in which
such expenses are recognised.

39 Financial risk management

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk
management framework. The board of directors is responsible for developing and monitoring the Company's risk
management policies. The board regularly meets to decide its risk management activities.

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 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, through its training
and management standards and procedures, aims to maintain a disciplined and constructive control environment in which
all employees understand their roles and obligations.

The Company's management monitors compliance with the Company's risk management policies and procedures, and
reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Board is also
assisted by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and
procedures, the results of which are reported to the Board of directors.

The Company has exposure to the following risks arising from financial instruments:

- credit risk - see note (a) below

- liquidity risk - see note (b) below

- market risk - see note (c) below

(a) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company's receivables from customers.

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers the factors that may influence the credit risk of its customer base, including the default risk
associated with the industry and country in which customers operate.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness
of customers to which the Company grants credit terms in the normal course of business. On account of adoption of
Ind AS 109, the Company uses expected credit loss model to assess impairment loss or gain. The Company uses a matrix
to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available
external and internal credit risk factors and Company's historical experience for customers.

(i) The company has not made any provision on expected credit loss on trade receivables and other financials assets,
based on the management estimates.

(ii) Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and
financial institutions with high credit ratings assigned by domestic credit rating agencies.

(b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is
to ensure, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company's treasury department is responsible for liquidity and funding. In addition policies and procedures relating
to such risks are overseen by the management.

The company's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from the
operations.

(c) Market risk

Market risk is the risk that changes with market prices - such as foreign exchange rates and interest rates, will affect the
Company's income or the value of its holdings of financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimising the return.

(1) 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 rate. Company transacts business in its functional currency (INR) and in other foreign
currencies. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's
operating activities, where revenue or expense is denominated in a foreign currency.

45 The company has entered joint venture agreement with Elta Systems Ltd an Israeli company with an office and principal
place of business at Yitzhak hanassi Boulevard, Ashdod Israel on August 30^th 2023 and incorporated a company named
as NIART Systems Limited on 15-10-2023 in Israel.

45A The company had raised ' 5,000 Mn on 19-01-2024, through Qualified Institutional Placement Successfully for its growth
plan out of which the proceeds amounting to ' 3,617.78 Mn is pending for utilization.

46 Previous year's figures have been regrouped/reclassified wherever necessary to conform current year's presentation.The
Company does not have any Exceptional Item to report for the current period.

47 The financial statements has been reviewed by the Audit Committee and approved by the Board of Directors at their
respective meetings held on May 27, 2025.

For For and on behalf of the Board of Directors of

NBS & Co. DCX Systems Limited

Chartered Accountants
FRN : 110100W

Sd/-

Dr. H S Raghavendra Rao

Chairman & Managing Director
DIN : 00379249
Sd/-

CA. Pradeep Shetty

Partner Sd/- Sd/-

M No: 046940 Diwakaraiah N J Gurumurthy Hegde

Place: Bangalore Executive Director and Chief Financial Officer Company Secretary

Date: 27-05-2025 DIN:00427317 Membership No:A24285

UDIN:25046940BMLNA01437 Place : Bangalore

Date:27-05-2025