1.18. Provisions:

Provisions are recognized when, as a result of past event, the Company has a legal or constructive obligation; it is probable that an
outflow of resources will be required to in respect of which a reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are
reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

1.19. Contingent Liabilities:

Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a
present obligation that arises from past events where it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it
cannot be measured reliably.

1.20. Claims:

Claims against the Company not acknowledged as debts are disclosed after a careful evaluation of the facts and legal aspects of the
matter involved.

1.21. Offsetting:

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the
Company currently has a legally enforceable right to set off the amounts and intends either to settle them on a net basis or to realise
the asset and settle the liability simultaneously.

1.22. Earnings per share:

The Company presents basic and diluted earnings per share (‘EPS”) data for its ordinary shares. Basic EPS is calculated by dividing
the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares
outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the
weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.

1.23. Cash flow statement:

Cash flows are reported using the Indirect method. Whereby profit for the period is adjusted for effects of transactions of a non-cash
nature. Any deferrals are accruals of past or future operating cash receipts or payments and item of Income or expenses associated
with investing or financing cash flows. The cash flows from operating investing and financing activities of the company are
segregated.

1.24. Segment Reporting:

The operations ofthe company are related to one segment i.e Hydraulic equipment.

1.25. Events after Reporting date:

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period.,
the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size
or nature are only disclosed.

1.26. Recent Accounting Pronouncements:a) Application of New and amended standards

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under companies (Indian
Accounting Standards) Rules as issued from time to time. During the year ended March 31,2026, MCA has notified the Companies
(Indian Accounting Standards) Amendment Rules, 2025 applicable to the Company w.e.f. 1st April, 2025

i) Amendments to Ind AS 21 - Lack of exchangeability

The amendment requires the Effects of Changes in Foreign Exchange Rates to specify how an entity should assess whether a
currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also
require disclosure of information that enables users of its financial statements to understand how the currency not being
exchangeable into the other currency affects, or is expected to affect, the entity’s financial performance, financial position and cash
flows.

The amendments do not have a material impact on the Company’s financial statements.

ii) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Noncurrent Liabilities with
Covenants

Amendments to paragraphs 69 to 76 of Ind AS 1 to specify the requirements for classifying liabilities as current or non-current. The
amendments are effective for annual reporting periods beginning on or after 1 April 2025 retrospectively in accordance with Ind AS
8. The amendments have not resulted in additional disclosures and have not had an impact on the classification of Company’s
liabilities.

iii) Amendments to Ind AS 12 - International Tax Reform Pillar Two Model Rules.

Amendments to Ind AS 12 Income Taxes in response to the OECD’s BEPS Pillar Two rules and include:

• A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional
implementation ofthe Pillar Two model rules; and

• Disclosure requirements for affected entities to help users of the financial statements better understand an entity’s exposure to
Pillar Two income taxes arising from that legislation, particularly before its effective date

The mandatory temporary exception - the use of which is required to be disclosed applies immediately. The remaining disclosure
requirements apply for annual reporting periods beginning on or after 1 April 2025, but not for any interim periods ending on or
before 31 March 2026.

The amendments had no impact on the Company’s financial statements as the Company is not in scope of the Pillar Two model
rules.

iv) Amendments to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangements

In August 2025, the MCA notified amendments to Ind AS 7 Statement of Cash Flows and Ind AS 107 Financial Instruments:
Disclosures to clarify the characteristics of supplier finance arrangements and require additional disclosure of such arrangements.
The disclosure requirements in the amendments are intended to assist users of financial statements in understanding the effects of
supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk.

The amendments do not have a material impact on the Company’s financial statements.

There are no new standards that are notified, but not yet effective, up to the date of issuance ofthe financial statements.

1.27. The areas involving critical estimates or judgments are:

Estimates ofuseful life ofproperty, plant and equipment and intangibles

Measurement of defined benefit obligation

Recognition of deferred taxes

Estimation of impairment

Estimation ofprovision and contingent liabilities

The contract liabilities primarily related to the advance consideration received from the customers.

c) Performance obligation:

All sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon
dispatch/ delivery. The Company does not have any remaining performance obligation for sale of goods or rendering of services which
remains unsatisfied as at March 31,2026 and March 31,2025.

d) Disaggregation of revenue:

Refer Note 54 for disaggregated revenue information. The management determines that the segment information reported is sufficient to
meet the disclosure objective with respect to disaggregation of revenue under Ind AS 115 "Revenue from contract with customers".

Financial Risk Management:

The Company's activities expose it to market risk, credit risk and liquidity risk. Company's overall risk management focus on the
unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance.

I. Market Risk

Market risk is the risk of loss of the future earnings, fair values or future cash flows that may result from a change in the price of
financial instruments. The value of a financial instrument may change as a result of changes in the interest rates. Foreign currency
exchange rates, commodity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable
to all market risk sensitive financial instruments including instruments and deposits, foreign currency receivables, payable and
borrowings.

Commodity Risk

Commodity price risk arises due to fluctuation in raw material prices linked to various external factors, which can affect the
production cost of the Company. The Company actively manages inventory and in many cases sale prices are linked to major raw
material prices. These risks are reviewed and managed by senior management on continuous basis.

II. Credit Risk:

Credit risk arises when a customer or counter party does not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk its operating activities (primarily trade receivables) and from its
financing / investing activities including deposits with banks. The company has a prudent and conservative process for managing
its credit risk arising in the course ofits business activities. The company is receiving payments regularly from its customers and
hence the Company has no significant credit risk.

III. Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet obligations on time or at reasonable price.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of credit facilities to meet obligations when due. The Company 's treasury team is responsible for
liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior
management. Management monitors the Company's liquidity position through rolling forecasts based on expected cash flows.

V. Technology Risk

The Company operates in a highly technical field with constant innovation and continuous evolution in technologies used. The
company mitigates this risk through regular contact with customers, regular reviews of new technological trends, continuous
improvement and investment in its manufacturing practices, along with investments in research, design, and development.

NOTE NO. 32
Capital Management:The Company's objectives when managing capital are to:

1. Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and the
benefits for other stakeholders.

2. Maintain an optimal capital structure to reduce the cost of Capital Consistent with others in industry. The company monitors
capital on the basis of the following gearing ratio:

a) Defined contribution plans

Refer Note No. 24 for the Company’s contribution to the defined contribution plans with respect to employee benefit
funds i.e Provident Fund and Employees’ State Insurance Scheme.

b) Defined benefit plan

The Company has a defined benefit gratuity plan (funded). The gratuity plan is governed by the Payment of Gratuity
Act, 1972. Under the Gratuity Act, an employee who has completed five years of service is entitled to specific
benefits. The level of benefits provided depends on the member’s length of service, managerial grade and salary at
retirement age.

Title deeds of immovable properties:

The title deeds of all the immovable properties, as disclosed in note no.2 to the financial statements, are held in the name of the
Company.

NOTE NO. 39Valuation of Property Plant & Equipment, intangible asset:

The Company has not revalued its property, plant and equipment or intangible assets or both during the current year.

NOTE NO. 40Loans or advances to specified persons:

No loans or advances in the nature of loans are granted to Promoters, Directors, Key Management Personnels and the related
parties(as defined under Companies Act,1913) either severally or jointly with any other person, that are repayable on demand or
without specifying any terms or period of repayment.

NOTE NO. 41Details of benami property held:

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act,1988 (45 of 1988) and rules made thereunder.

NOTE NO. 42Borrowing secured against current assets:

The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current
assets filed by the Company with banks are in agreement with the books of accounts.

NOTE NO. 43Wilful defaulter:

The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

NOTE NO. 44Relationship with struck off Companies:

The Company has no transactions with the Companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of
the Companies Act, 1956

Registration of charges or satisfaction with Registrar of Companies (ROC):

The Company does not have any charges to be registered/satisfied as at March 31,2026 with Registrar of Company(ROC).
However, as per records available with the ROC, the following charges appears to be registered in respect of the Company as on
March 31,2026:

NOTE NO. 46Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the Section 2 (87) of the Companies Act, 2013 read with
Companies (Restriction on number oflayers) Rules, 2017.

NOTE NO. 47Compliance with approved scheme(s) of arrangements:

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial
year.

NOTE NO. 48Utilisation of borrowed funds and share premium:

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other person or entity including foreign entities ("Intermediaries") with the understanding,
whether 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 not received any fund from any party (Funding Party) with the
understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

NOTE NO. 49Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income
Tax Act, 1961, that has not been recorded previously in the books of account.

NOTE NO. 50Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

NOTE NO. 54
Segment information

The Company deals in only one business segment of manufacturing and sale of Hydraulics products and the Chief Operating
Decision Maker (CODM) reviews the operations of the Company as a whole, hence there is no reportable segments as per Ind AS
108 “Operating Segments”. The management considers that the various goods provided by the Company constitutes single
business segment, since the risk and rewards from these products are not different from one another. However the Company has
disclosed the following geographical information as follows:

c) Information about major customers

There is 1 customer who individually contribute more than 10 percent ofthe entity’s revenue.

NOTE NO. 55
Subsequent Events

The Board of Directors in their meeting held on 30th May 2026 have proposed a final dividend of Rs. 8.50 per equity share for the
year ended 31st March 2026 which is subject to the approval of shareholders at the ensuing Annual General Meeting and if
approved, would result in a cash outflow of approximately Rs. 382.50 lakhs.

NOTE NO. 56

Pursuant to the notification/implementation of the Labour Codes, namely 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”), the Company has assessed the potential impact of the changes on employee benefit obligations,
including gratuity and leave-related benefits, based on the information currently available and applicable guidance.

Based on the assessment carried out by the management, the impact of the Labour Codes on the Company’s financial statements is
not material. Accordingly, the impact, if any, has been considered and recognised as part of employee benefits expense in the
financial results for the year ended March 31, 2026.

The Company continues to monitor further developments, clarifications and the finalisation of related rules/implementation
aspects and will evaluate and account for any consequential impact, if required, in future periods

NOTE NO. 57

Previous Year's figures have been regrouped wherever necessary to correspond with the current year's figures, except when
otherwise stated, the figures are presented in Rs. lakhs.