(v) Provisions , contingent liabilities and contingent assets (IND AS 37)

a) Provisions

The provisions are recognised and measured by using a substantial degree of estimation.

Provisions are recognized in the balance sheet when the Company has a present obligation (legal or constructive) as a result of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

Constructive obligation is an obligation that derives from an entity’s actions where:

0) by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities and;

(ii) as a result, the entity has created a valid expectation on the part of those other parties that it will discharge such responsibilities.

b) Contingent liabilities

Contingent liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved in the issue.

c) Contingent assets

Contingent assets are disclosed after a careful evaluation of the facts and legal aspects of the matter involved in the issue.

(vi) Fair value measurements of financial instruments (IND AS 32) The company has no financial instruments / investments hence fair value measurement is not applicable.

(vii) Employee Benefits and Retirement obligations (IND AS 19)

a) Defined Contribution Plan

The state governed Provident Fund Scheme, Employees State Insurance Scheme and Employee Pension Scheme are defined contribution plans. The contribution paid / payable under the schemes are recognised during the year in which the employee renders the related services.

b) Defined Benefit Plan / Long Term Compensated Absences.

The company's Employees Gratuity Fund Scheme managed by the LIC of India is a defined plan. The present value of obligations based on past experience and actual valuation done by LIC read with the compliance of applicable IND AS in this regard has been considered and provided in the financial statements. Since the valuation by LIC is based on their vast experience at actuals, no acturial valuation is done by the management.

c) Compensated Absences

The company has provided for the actual leave encashment liability at the balance sheet date based on permissible accumulated leave balance of the employees at the last salary drawn as per company rules. Since leave encashment liability at actual is fully provided, no actuarial valuation is done by the management.

2.02 Property, plant and equipment (IND AS 16)

Tangible and intangible property, plant and equipment are stated at cost less accumulated depreciation and impairment. Cost includes all direct costs and expenditure incurred to bring the asset to its working condition and location for its intended use. Related trial run expenses (net of revenue), borrowing cost during constuction/irrection period and commisioning are capitalised where

ever and whenever applicable. The gain or loss arising on disposal of an item of property, plant and equipment is determined as the difference between sale proceeds and carrying value of such item, and is recognized in the statement of profit and loss.

2.03 Depreciation and amortization of property, plant and equipment and intangible assets

a) Depreciation is provided under straight line method (SLM) to the extent depreciable based on the usefull life of most of the assets as prescribed in Schedule II of the Companies Act, 2013

b) Depreciation on additions is provided on pro-rata basis from the date of intended use. Depreciation on deletions is provided on pro-rata basis till the date of its effective use.

c) No depreciation has been provided on fixed assets where written down value has reached to 5% of the original cost and also on fixed assets not put to use.

2.04 Leases (IND AS 17)

a) The company's '95 years Leasehold Land at MIDC Aurangabad was aquired on annual economic rent of Rupee One in 1974.

b) The company has taken a CNC hob re sharpning ( Luren Taiwan make)

machine from Marathwada Auto Cluster, Waluj, Aurangabad on annual fixed rent of Rs. 12 lakhs for a period of 10 years on interest free refundable deposit vide agreement dated 09/07/2022 with minimum lockin period of 3 years with an option to extend the agreement or buy the said machine at mutually agreed terms.

2.05 a) Financial assets

(i) Cash and bank balances

Cash and bank balances consist of

(i) Cash and cash equivalents includes cash in hand, balances held with banks which are readily convertible into known amounts of cash, are subject to an insignificant risk of change in value . These balances with banks are unrestricted for withdrawal and usage.

(ii) Other bank balances which includes balances and deposits with banks that are restricted for withdrawal and usage.

(ii) Other financial assets are taken at cost or net realisable value as the case may be.

2.05 b) Financial Liabilities

Trade and other payables / liabilities

(i) Trade and other payables/liabilites are initially measured atfair value/

(ii) Interest bearing bank loans, overdrafts .term liabilites and other debts are initially measured at fair value / cost as recorded in the books using the effective interest rate method. Any difference between the proceeds {net of transaction costs) and the settlement or redemption of borrowings is recognized over the term of the borrowings in the statement of profit and loss.

(iii) The company de-recognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or they expire.

2.06 Inventories - (IND AS 02)

(i) "Inventories of finished goods and scrap are stated at the lower of cost and net realizable value. Cost is ascertained on a weighted average basis in respect of raw materials. Costs comprise direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition in respect of work in progress. Net realizable value is the price at which the inventories can be realized in the normal course of business.

(ii) Stores and spare parts are carried at lower of cost and net realizable value.

(iii) Provisions are made to cover slow moving and obsolete items based on historical experience of utilization on a product category basis, which involves individual businesses considering their product lines and market conditions.

(iv) However, based on above, the inventories are valued as under

a) Raw materials are valued at cost.

b) Work in Progress is valued at raw material cost overheads.

c) Finished Goods are carried at lower of cost or market value which ever is less.

d) Stores are valued at cost.

e) Tools and Spares are valued at cost.

f) Scraps are valued at realisable value

2.07 Non-current assets held for sale and discontinued operations

The company had classified as non current fixed assets held for sale as mentioned in note to financial statements under the head Property, Plant and Equipments in year FY 19 and FY 23 and has written off as impairment under the head depreciation, amortisation, impairment in FY 20 and FY 23 due to obsolescence and thus impaired value of such assets have been considered at

net realisable scrap value as other current assets.

The company has not discontinued any operations during the year.

2.08 Revenue from operations.

(i) Sales and other operational income

Revenue from sale of goods is recognised when the company has ownership recognized over the term of the borrowings in the statement of profit and no longer retains control over the goods sold. The amount of revenue can be measured reliably. It is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Depending on the contractual terms, risks and rewards of ownership is transfered when the delivery is completed. In case of exports, sale delivery is completed on issuance of bill of lading / air way bill.

(ii) Other income

(a) Interest income is accrued on time proportion basis by reference to the principal outstanding and effective interest rate applicable.

(b) Other income viz exchange gain / loss, misc. receipts, bad debts recovery etc. are accounted on generally accrual basis except recovery of bad debts, misc receipts which are accounted on receipt basis

2.09 Foreign currency transactions and translations

Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities are re-translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses arising on settlement and restatement are recognised in the statement of profit and loss. Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not re-translated.

Assets and liabilities with functional currency other than the functional currency of the Company have been translated using exchange rates prevailing on the balance sheet date and such profit or loss arising on translation of such items has been charged to profit and loss account and no translation reserve has| been created as there no such assets or liabilities having impact during the year.

2.10 Borrowing costs (IND AS 23)

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of such assets till such time as the assets are ready for their intended use. Qualifying assets are assets that necessarily require a substantial period of time to get ready for their intended use. All the other borrowing cost is recognized as an expense on accrual basis.

2.11 Earnings per share (IND AS 33)

'Basic / Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the number of equity shares outstanding during the year.

2.12 Segment reporting (IND AS 108)

The company's main product lines are in gear cutting tools viz. gear hobs and miling cutters which contributes over 92% of its revenue. The contribution from the balance operation viz. spline guage is mostly involving common processes and use of the same machineries of main product lines and thus the company's operations is considered as a single segment.

2.13 Change in Accounting Policy (IND AS 8)

There is generally no change in accounting policy.

13 Additional regulatory information

a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b) The Company has utilised the funds towards the purposes for which the said loans were raised.

c) Statements and reports as and when required at timely intervals have been submitted to the bank and are in agreement with the books of accounts.

d) The Company has not been declared a wilful defaulter by any bank or financial institution or government or any government authority.

e) The Company has not entered into any type of transactions with companies struck off.

f) The Company does not have any pending charges or satisfaction which are yet to be registered with Registrar of Companies beyond the statutory period.

g) The Company is in compliance with number of layers of companies as prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on Number of Layers) Rules, 2017.

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

i) 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 Group 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.

j) 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) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

k) Title deeds of immovable property are held in the name of the Company.

l) The Company has not revalued its Property, Plant and Equipment for the current year.

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

n) The Company has not any such transaction which is not recorded in the books of account that has 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.

o) The Company is not covered under section 135 of the Companies Act regarding CSR activities.

p) There has been no capital work in progress for the current year of the company.

q) There are no Intangible assets under development in the current year.

14 Company Secretary

The company had a qualified Company Secretary as required under Section 203(1 )(ii) of Companies Act, 2013.

15 Confirmation of Balances

Request confirmations of balances trade receivables were sent to customers but responses have not come before the conclusion of audit hence no impact of differences has been considered. Similarly, confirmation of sundry creditors were not sent as external evidence and balances as per books has been relied upon. Confirmation in respect fo unsecured loans have been obtained, checked, verified and found correct.

16 Figures for previous year have been rearranged/regrouped wherever

necessary.

Notes to the Financial Statements - Note Nos. 1 to 30

The accompanying notes form an integral part of the Standalone financial

statements.

As per our report of even date attached

For R. K. JAGETIYA (M. Z. Kothari)

CHARTERED ACCOUNTANTS Managing Director

(DIN : 01486305)

(Kunal Bafna) Chief Financial Officer

(R.K.JAGETIYA) & Whole-time Director

PROPRIETOR (DIN : 00902536)

Membership No.: 014098 Firm Regn. No.: 110271 W

UDIN : F008276f000939681 _

(Rahul Dugar) Director (DIN : 00013704)

(Sonam Dubey)

Place Mumbai Company Secretary

Dated 30th May, 2023 (ACS 57121)