Notes to Accounts of Mamata Machinery Ltd.

Mar 31, 2026

Note on Borrowings

i) Car loan- I from HDFC Bank Ltd

Secured car loan of '' 25.93 Lakh sanctioned on 08^th August, 2022 at fixed rate of interest of 7.89% p.a. The Loan is repayable in 60 monthly instalments commencing from the month following the month of purchase of said vehicle/car. The car loan is taken in the name of Mamata Machinery Private Limited and secured against hypothecation of car.

ii) Car loan- II from HDFC Bank Ltd

Secured car loan of '' 45.57 Lakh sanctioned on 28^th November, 2023 at fixed rate of interest of 8.82% p.a. The Loan is repayable in 48 monthly instalments commencing from the month following the month of purchase of said vehicle/car. The car loan is taken in the name of Mamata Machinery Private Limited and secured against hypothecation of car.

iii) Car loan- III from HDFC Bank Ltd

Secured car loan of '' 65 Lakh sanctioned on 30^th May, 2025 at fixed rate of interest of 8.68% p.a. The Loan is repayable in 60 monthly instalments commencing from the month following the month of purchase of said vehicle/car. The car loan is taken in the name of Mamata Machinery Limited and secured against hypothecation of car.

iv) Car loan- IV from HDFC Bank Ltd

Secured car loan of '' 14.94 Lakh sanctioned on 14^th June, 2025 at fixed rate of interest of 8.69% p.a. The Loan is repayable in 60 monthly instalments commencing from the month following the month of purchase of said vehicle/car. The car loan is taken in the name of Mamata Machinery Limited and secured against hypothecation of car.

v) Car loan- V from HDFC Bank Ltd

Secured car loan of '' 16.72 Lakh sanctioned on 17^th June, 2025 at fixed rate of interest of 8.67% p.a. The Loan is repayable in 60 monthly instalments commencing from the month following the month of purchase of said vehicle/car. The car loan is taken in the name of Mamata Machinery Limited and secured against hypothecation of car.

vi) Car loan- VI from HDFC Bank Ltd

Secured car loan of '' 154.44 Lakh sanctioned on 6^th June, 2025 at fixed rate of interest of 8.46% p.a. The Loan is repayable in 60 monthly instalments commencing from the month following the month of purchase of said vehicle/car. The car loan is taken in the name of Mamata Machinery Limited and secured against hypothecation of car.

vii) Car loan- VII from HDFC Bank Ltd

Secured car loan of '' 23.99 Lakh sanctioned on 22^nd August, 2025 at fixed rate of interest of 8.35% p.a. The Loan is repayable in 60 monthly instalments commencing from the month following the month of purchase of said vehicle/car. The car loan is taken in the name of Mamata Machinery Limited and secured against hypothecation of car.

viii) Car loan- VIII from HDFC Bank Ltd

Secured car loan of '' 190.00 Lakh sanctioned on 26^th September, 2025 at fixed rate of interest of 7.74% p.a. The Loan is repayable in 60 monthly instalments commencing from the month following the month of purchase of said vehicle/car. The car loan is taken in the name of Mamata Machinery Limited and secured against hypothecation of car.

ix) Car loan- IX from HDFC Bank Ltd

Secured car loan of '' 14.75 Lakh sanctioned on 12^th December, 2025 at fixed rate of interest of 8.40% p.a. The Loan is repayable in 60 monthly instalments commencing from the month following the month of purchase of said vehicle/car. The car loan is taken in the name of Mamata Machinery Limited and secured against hypothecation of car.

x) Car loan- X from HDFC Bank Ltd

Secured car loan of '' 91.30 Lakhs sanctioned on 11^th November, 2020 at fixed rate of interest of 7.51% p.a. The Loan is repayable in 60 monthly instalments commencing from the month following the month of purchase of said vehicle/car. The car loan is taken in the name of Mamata Machinery Private Limited and secured against hypothecation of car.

xi) There are no defaults in respect of any loans during the current year and previous financials years reported.

44. Financial Risk Management

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

- Credit risk;

- Liquidity risk; and

- Market risk.

i) Credit risk:

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) including deposits with banks and other financial assets.

Trade receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer, demographics of the customers, default risk of the country in which the customer operates. Credit risk is managed through credit approvals, establishing credit limits and continously monitoring the creditworthiness of the customer to which the Company grants credit terms in the normal course of business.

Cash and Cash Equivalents

Credit risk from balances with banks is managed by the Company''s Finance department team in accordance with the Company''s policy. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter party''s potential failure to make payments. Credit limits of all authorities are reviewed by the management on regular basis. All balances with banks is subject to low credit risk due to good credit ratings assigned to the Company. The Company''s maximum exposure to credit risk for the Cash & Cash Equivalents components of the balance sheet at March 31,2025 and March 31,2026 is the carrying amounts as illustrated in the Balance Sheet.

Other Financial Assets

Other Financial Assets are neither past over due nor impaired

ii) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company applied prudent liquidity risk management practices which inter alia means maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities. Given the nature of the underlying businesses, the corporate finance maintains flexibility in funding by maintaining availability under committed credit lines and this way liquidity risk is mitigated by the availability of funds to cover future commitments. Cash flow forecasts are prepared and the utilized borrowing facilities are monitored on a daily basis and there is adequate focus on good management practices whereby the collections are managed efficiently. The Company while borrowing funds for large capital project, negotiates the repayment schedule in such a manner that these match with the generation of cash on such investment. Longer term cash flow forecasts are updated from time to time and reviewed by the Senior management of the Company.

iii) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits, and foreign currency receivables and payables.

Interest rate risk and Exposure to interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term and short term debt obligations with fixed interest rates.

Presently the borrowings of the company are subject to a fixed interest regime at MCLR specified in the respective financing agreements.

Foreign Currency Risk Management

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue, expense or capital expenditure is denominated in foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

Commodity rate risk

The Company''s operating activities involve purchase and sale of machinery related items, whose prices are exposed to the risk of fluctuation over short periods of time. Commodity price risk exposure is evaluated and managed through procurement and other related operating policies.

Contract liabilities are on account of the upfront revenue received from customer (advance from customer) for which performance obligation has not yet been completed.

The performance obligation is satisfied when control of the goods or services are transferred to the customers based on the contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.

46. Government Grant

The Company is entitled to government assistance on its Export incentives on fulfilment of the conditions stated in the respective schemes. Duty credit allowed under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and Duty Drawback scheme are subject to realization of sale proceeds within the period prescribed by RBI. These are of revenue in nature and the same is accounted as stated in accounting policy on Government Grant.

47. Contingent Liability and Commitments:
Particulars	As at 31st March, 2026	As at 31st March, 2025
a) Contingent Liabilities
Claim against company not acknowledged as debt Tax matters in	31.64	29.95
dispute under appeal
Bank guarantees for performance, Earnest Money & Security Deposits	-	-
b) Commitments
Intangible assets under development	12.00	30.00
48. Investment Property
Particulars	As at 31st March, 2026	As at 31st March, 2025
Amount recognised in Statement of Profit or Loss for investment	-	-
properties Rental Income
Direct operating expenses from property that generated rental income	-	-
Depreciation	(2.21)	(2.21)
Profit from Investment Property	(2.21)	(2.21)
Particulars	As at 31st March, 2026	As at 31st March, 2025
Fair Value	101.06	101.06

Estimation of fair value: Method of Estimation

In the absence of valuation reports of Registered Valuer as defined under rule 2 of Companies (Registered Valuer and valuation) Rules, 2017, the Company has used the government registration rates for the purpose of determining the fair value of Land and Buildings.

51. Corporate Social Responsibility

As per section 135 of the Companies Act, 2013, the Company is required to spend at least 2% of its average net profits for the immediately preceding three financial years on corporate social responsibility activities. The CSR Committee of the Company monitors the CSR activities and the projects are undertaken in pursuance of the Company''s CSR Policy. The amount has to be expended on the activities which are specified in Schedule VII of the Comapanies Act,2013.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the Defined Benefit Obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

53. Particulars

I. List of related parties where control exists and also related parties with whom transactions have taken place and relationships:

a) Subsidiary Company,

Mamata Enterprises Inc.

55. Capital Management

The Company''s Capital Management objectives are:

- to ensure the Company''s ability to continue as a going concern; and

- to provide an adequate return to shareholders through optimisation of debts and equity balance.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents. The Company''s objective for capital management is to maintain an optimum overall financial structure.

56. Exceptional Item:

The Government of India has consolidated 29 existing labour legislations into a united framework comprising four Labour Code viz Code on wages 2019, Code on Social Security 2020, Industrial Relation Code 2020, and Occupational Safety, Health and Working Condition Code 2020 (collectively referred to as the New Labour Codes). These Codes were notified as effective from 21⁵¹ November 2025; however, management implemented them with effect from 1^st April 2025, with the differential impact duly recognized in the financial results for the quarter ended 31^st March 2026. The corresponding all supporting rules under these codes are yet to be notified. The incremental impact of these changes on the employee benefit expenses, estimated by the Company, on the basis of the information available, consistent with the guidance provided by the Institute of Chartered Accountants of India, is ? 305.81 Lakhs and has been recognised as Exceptional items in the standalone financial results of the Company for the quarter ended 31^st March, 2026.

57. Additional regulatory information

i) The Company do not hold any benami property and no proceedings have been initiated or pending against the Company and its Indian subsidiaries for holding any benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and Rules made thereunder.

ii) The Company do not have any transactions with struck-off companies under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

iii) The Company does not have any charge which is yet to be registered/satisfied with ROC beyond the statutory period.

iv) The Company have 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:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Group (Ultimate Beneficiaries); or

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

v) The Company have 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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vi) The Company has not undertaken any transaction which is not recorded in the books of accounts 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).

vii) The Company have not traded or invested in Crypto currency or Virtual Currency during the current or previous year.

viii) The Company has not been declared as a ''Wilful Defaulter'' by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

ix) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

58. Audit Trail

The Ministry of Corporate Affairs (MCA) has issued a notification Companies (Accounts) Amendment Rules, 2021 which is effective from 1^st April, 2023. The amendment requires that every company which uses an accounting software for maintaining its books of account shall use an accounting software where there is feature of recording audit trail of each and every transaction and further creating an edit log of each change made to the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses an accounting software, a payroll application and inventory management software for maintaining its books of account. Accounting software and payroll application has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software/application. Further, inventory management have no feature of recording audit trail (edit log) facility.

59. The figures for corresponding previous years have been restated/regrouped, rearranged and reclassified wherever necessary to make them comparable.

60. Approval of Standalone Financial Statements

The above Standalone Financial Statements for the year ended 31^st March 2026, have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 27^th May 2026 and 29^th May 2026. The Statutory Auditors of the Company have audited the annual financial statements.

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Mar 31, 2025

50. Provision - Warranty

In respect of any present obligation as a result of past event that could lead to a probable outflow of resources,
provisions has been made, which would be required to settle the obligation. The said provisions are made as per
the best estimate of the management and disclosure as per Ind AS 37 - “Provisions, Contingent Liabilities and
Contingent Assets” has been given below:

52. Corporate Social Responsibility

As per section 135 of the Companies Act, 2013, the Company is required to spend at least 2% of its average net
profits for the immediately preceding three financial years on corporate social responsibility activities. The CSR
Committee of the Company monitors the CSR activities and the projects are undertaken in pursuance of the
Company''s CSR Policy. The amount has to be expended on the activities which are specified in Schedule VII of
the Comapanies Act, 2013.

The sensitivity analysis have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit
Obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same
method as applied in calculating the Defined Benefit Obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

II. Other long term benefits (Privilege Leave benefits)

The following table sets out the non funded status of the Privilege Leave benefits and the amounts recognized
in the Company''s financial statements.

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.
Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may
vary if two or more variables are changed simultaneously. The method used does not indicate anything about
the likelihood of change in any parameter and the extent of the change if any.

56. Capital Management

The Company''s Capital Management objectives are:

- to ensure the Company''s ability to continue as a going concern; and

- to provide an adequate return to shareholders through optimisation of debts and equity balance.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes,
interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash
equivalents. The Company''s objective for capital management is to maintain an optimum overall financial
structure.(Refer Note 60 for Debt Equity Ratio).

57. Additional Regulatory Information

i) The Company do not hold any benami property and no proceedings have been initiated or pending against
the Company and its Indian subsidiaries for holding any benami property under the Benami Transactions
(Prohibitions) Act, 1988 (45 of 1988) and Rules made thereunder.

ii) Transactions with struck-off companies

The Company do not have any transactions with struck-off companies under Section 248 of the Companies
Act, 2013 or Section 560 of the Companies Act, 1956 other than except as mentioned below.

iii) The Company does not have any charge which
is yet to be registered/satisfied with ROC beyond
the statutory period.

iv) The Company have 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:

(a) directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Group
(Ultimate Beneficiaries); or

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

v) The Company have 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:

(a) 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

(b) provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

vi) The Company has not undertaken any
transaction which is not recorded in the
books of accounts 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).

vii) The Company have not traded or invested in
Crypto currency or Virtual Currency during the
current or previous year.

viii) The Company has not been declared as a ''Wilful
Defaulter'' by any bank or financial institution
(as defined under the Companies Act, 2013)
or consortium thereof, in accordance with the
guidelines on wilful defaulters issued by the
Reserve Bank of India.

ix) The company has complied with the number of
layers prescribed under clause (87) of section 2
of the Act read with Companies (Restriction on
number of Layers) Rules, 2017.

58. Audit Trail

The Ministry of Corporate Affairs (MCA) has issued a notification Companies (Accounts) Amendment Rules, 2021
which is effective from 1^st April, 2023. The amendment requires that every company which uses an accounting
software for maintaining its books of account shall use an accounting software where there is feature of recording
audit trail of each and every transaction and further creating an edit log of each change made to the books of
account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company uses an accounting software, a payroll application and inventory management software for
maintaining its books of account. Accounting software has a feature of recording audit trail (edit log) facility
and the same has been operated throughout the year for all relevant transactions recorded in the software/
application. Further, payroll application and inventory management have no feature of recording audit trail (edit
log) facility.

As per our report of even date

For S H B A & CO LLP By order of the Board of Directors

(Formerly known as Bathiya & Associates LLP) Mamata Machinery Limited

Chartered Accountants (Formerly known as Mamata Machinery Private Limited)

Firm Registration Number: 101046W/W100063

Mahendra N. Patel Chandrakant B. Patel

Managing Director Joint Managing Director
DIN: 00104997 DIN: 00380810

Jimesh P. Shah Dipak Modi Madhuri Sharma

Partner Chief Financial Officer Company Secretary

Membership No.: 169252 M No.: A44889

Place: Ahmedabad Place: Ahmedabad Place: Ahmedabad

Date: 28^th May, 2025 Date: 28^th May, 2025 Date: 28^th May, 2025

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Mar 31, 2024

l) Provisions:

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable 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.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

m) Segment reporting

As per Ind AS 108 -Operating Segments, the Chief Operating Decision Maker evaluates the Company''s performance and allocates the resources based on an analysis of various performance indicators by business segments. Inter segment sales and transfers are reflected at market prices. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments based on their relationship to the operating activities of the segment. Inter segment revenue is accounted based on transactions which are primarily determined based on market / fair value factors. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on a reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

n) Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation.

o) Contingent Assets

Contingent assets are not disclosed in the Financial Statements unless an inflow of economic benefits is probable.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

p) Earnings per share:

Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period adjusted for treasury shares held. Diluted earnings, per share is computed using the weighted-average number of equity and dilutive equivalent shares outstanding during the period, using the treasury stock method for options, except where the results would be anti-dilutive. The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any splits and bonus shares issues including for change effected prior to the approval of the Financial Statements by the Board of Directors.

(i) Leases

The Company evaluates each contract or arrangement, whether it qualifies as lease as defined under Ind AS 116. ^___^

The Company as a lessee

The Company enters into an arrangement for lease of land, buildings, plant and machinery including computer equipment and vehicles. Such arrangements are generally for a fixed period but may have extension or termination options. The Company assesses, whether the contract is, or contains, a lease, at its inception. A contract is, or contains, a lease if the contract conveys the right to -

a) control the use of an identified asset,

b) obtain substantially all the economic benefits from use of the identified asset, and

c) direct the use of the identified asset

The Company determines the lease term as the non-cancellable period of a lease, together with periods covered by an option to extend the lease, where the Company is reasonably certain to exercise that option.

The Company at the commencement of the lease contract recognizes a Right-of-Use (Roll) asset at cost and corresponding lease liability, except for leases with term of less than twelve months (short term leases) and low-value assets. For these short term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the lease term.

The cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, any lease payments made at or before the inception date of the lease, plus any initial direct costs, less any lease incentives received, plus estimated cost of dismantling of assets. Subsequently, the right-of-use assets are measured at cost less any accumulated depreciation and accumulated impairment losses, if any. The right-of-use assets are depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful life of right-of-use assets are determined on the same basis as those of property, plant and equipment.

The Company applies Ind AS 36 to determine whether an RoU asset is impaired and accounts for any identified impairment loss as described in the impairment of non-financial assets below-.

For lease liabilities at the commencement of the lease, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, if that rate is not readily determined, the lease payments are discounted using the incremental borrowing rate that the Company would have to pay to borrow funds, including the consideration of factors such as the nature of the asset and location, collateral, market terms and conditions, as applicable in a similar economic environment.

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made.

The Company recognizes the amount of the re-measurement of lease liability as an adjustment to the right-of-use assets. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognizes any remaining amount of the re-measurement in statement of profit and loss.

Lease liability payments are classified as cash used in financing activities in the statement of cash flows.

The Company os a lessor

Leases under which the Company is a lessor are classified as finance or operating leases. Lease contracts where all the risks and rewards are substantially transferred to the lessee, the lease contracts are classified as finance leases. All other leases are classified as operating leases. For leases under which the Company is an intermediate lessor, the Company accounts for the head-lease and

the sub-lease as two separate contracts. The sub-lease is further classified either as a finance lease or an operating lease by reference to the RoU asset arising from the head-lease.

q) Cash flow statement:

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or 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 from operating, investing and financing activities of the Company are segregated.

r) IMon-current assets and disposal groups held for sale

Assets and liabilities of disposal groups that are available for immediate sale and where the sale is highly probable of being completed within one year from the date of classification are considered and classified as assets held for sale and liabilities associated with assets held for sale. Noncurrent assets and disposal groups held for sale are measured at the lower of carrying amount and fair value less costs to sell.

i. Disposal of assets: The gain or loss arising on disposal or retirement of assets is-recognized in the statement of profit and loss.

ii. De-Recognition: An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

s) Government grants:

The Company recognises government grants only when there is reasonable assurance that the conditions attached to them will be complied with, and the grants will be received. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, the Company deducts such grant amount from the carrying amount of the asset.

t) Exceptional items:

Exceptional items refer to items of income or expense, including tax items, within the statement of profit and loss from ordinary activities which are non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the performance of the Company.

u) Recent Accounting Pronouncements

(i) New and Amended Standards Adopted by the Company:

The Company has applied the following amendments for the first time for their annual reporting period commencing April 1, 2023:

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments to Ind AS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques^ndTriptit;^ to develop accounting estimates.

l .ff '' \ • jfh ¦

Ind AS 1 - Presentation of Financial Statements

The amendments to Ind AS 1 provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. This amendment does not have any material impact on the Company''s financial statements and disclosures.

Ind AS 12 - Income Taxes

The amendments to Ind AS 12 Income Tax narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases-and decommissioning liabilities. The above amendments did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

ii) New Standards/Amendments notified but not yet effective:

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, 2024, MCA has not notified any new standards or amendments to the existing stajjdafd&^p^licable to the Company.

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ii) Car loan from HDFC Bank Ltd (XUV-700) f_0rott 7 n a The Loan is repayable in monthly

sr * -* - ^

Machinery Limited and secured against hypothecation of car.

iii) Car loan from HDFC Bank Ltd (Toyota) _{f 7} c_{1% D a} jhe Loan is repayable in monthly

- * - *~

Machinery Limited and secured against hypothecation of car.

iv) Car loan from HDFC Bank Ltd (BMW-7401) „f i„i-or-oct-nf K 40% d a The Loan is repayable in monthly

Machinery Limited and secured against hypothecation of car.

v) Car loan from HDFC Bank Ltd (Honda Citi) f mtoroci- nf Pin⁰/ oa The Loan is repayable in monthly

- -»- ~ —

Machinery Limited and secured against hypothecation of car.

vi) Car loan from HDFC Bank Ltd (Mini- Cooper) _f . _{t f} R o<-o/_{D D a} The Loan is repayable in monthly

secured car loan of Rs. 4.44 Million sanctioned on 21,1, November,2018 a, fixed rate o nte es of 8.8S* ™ ^L“" ^{S P ¥}

instalments commencine from the month following the month of purchase of sa,d veh,de/car. The car loan ,s

Machinery Limited and secured against hypothecation of car.

Machinery Limited and secured against hypothecation of car.

viii) Car loan from HDFC Bank Ltd (Honda-8020) , _{Q Thp Loan is} repayable in monthly

- - ^ in¦: l. -—

Machinery Limited and secured against hypothecation of car.

Machinery Limited and secured against hypothecation of car.

x) There are no defaults in respect of any loans during the current year and previous financials years reporte .

58 Additional regulatory information

i) The Company do not hold any benami property and no proceedings have been initiated or pending against the Company and its Indian subsidiaries for holding any benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and Rules made thereunder.

ii) The Company do not have any transactions with struck-off companies under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

iii) The Company does not have any charge which is yet to be registered/satisfied with ROC beyond the statutory period.

iv) The Company have 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:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Group (Ultimate Beneficiaries)

or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

v) The Company have 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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

vi) The Company has not undertaken any transaction which is not recorded in the books of accounts 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).

vii) The Company have not traded or invested in Crypto currency or Virtual Currency during the current or previous year.

viii) The Company has not been declared as a ''Wilful Defaulter'' by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

ix) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act reajd wtthj-Gp^panies (Restriction on number of Layers) Rules,

_ (if rfMu

59 Working Capital Facilities:-

Details of credit facilities from banks:

The Group has sanctioned credit facilities from State bank of India Bank of ''162.10 Million/- (i.e cash credit facility - 129.00 Million, GECL Loan Credit facility-''3.1 Million, letter of credit and Bank Gurantee- ’30 Million).

Terms of loan

a) The credit facility carries interest at mutually agreed rates,(interest payable on monthly rests).

b) The credit facility is secured by : Hypothecation of stocks and bookdebts, Factory land & building.

Utilisation of borrowings :

(a) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

(b) The quarterly returns/statements of current assets filed by the Company with banks or financial institutions in relation to secured borrowings wherever applicable, are in agreement with the books of accounts.

60 Audit Trail

"The Ministry of Corporate Affairs (MCA) has issued a notification Companies (Accounts) Amendment Rules, 2021 which is effective from 1st April,

2023. The amendment requires that every company which uses an accounting software for maintaining its books of account shall use an accounting software where there is feature of recording audit trail of each and every transaction and further creating an edit log of each change made to the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company uses an accounting software, a payroll application and inventory management software for maintaining its books of account. Accounting software has a feature of recording audit trail (edit log) facility and the same has not been operated throughout the year for all relevant transactions recorded in the software / application. Further, payroll application and inventory management have no feature of recording audit trail (edit log) facility.

61 Events occurring After Balance sheet date

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the necessity for recognition and / or reporting of any of these events and the transactions in the financial statements. As on 14 September,

2024, there are subsequent events to be recognised or reported as mention below :-

1 Closure of loans account with State Bank of India as per No Dues Certificate of State bank of India dated 24th April,2024 & HDFC Bank Ltd dated 19th June,2024,

2 The Board of Directors in their meeting held on May 31, 2024 approved resolution for issue of Bonus equity shares in the ratio of 1:8, 8 (Eight) new equity share of ^ 10/- each for every 1 (One) existing fully paid-up shares of ^ 10/- each to existing shareholders of the company which was subsequently approved by Members of Company in the Extraordinary General Meeting held on May 31, 2024.

3 The Company was converted from a Private Limited Company to Public Limited company vide Special resolution passed in the Extra-Ordinary General Meeting of the company dated June 05, 2024 and consequently, the name of the Company was changed to "Mamata Machinery Limited" and a fresh certificate of incorporation dated June 21, 2024 was issued to the Company by the Registrar of Companies, Central Processing Centre having Corporate Identification Number U29259GJ1979PLC003363.

4 Authorised Capital increased from 80,00,000 (Eighty Lakhs) No. of Equity Shares of Rs. 10/- to No. of 30,000,000 (Three Crores) Equity Shares of Rs. 10/-each by creation of additional 22,000,000 (Two Crores Twenty Lakhs) No. of Equity Shares of Rs. 10/- each ranking pari passu in all respect with the existing Equity Shares of the Company with effect.from 22nd April,2024 vide Members resolution and approval on 22nd April,2024.

5 Fund raising plans:

Company has passed board resolution for Intial Public offering (IPO) on 21st June,2024. Company has filed DRHP (Draft Red Hearing Prospectus) with SEBI, BSE, NSE on 28th June, 2024 and received In-principle approval for IPO from BSE and NSE on 05th of September, 2024. As on the date of the approval of this financial statements, SEBI approval is awaited.

// x / x •/, \\ . ____

¦ IV) Notes on reconciliations between previous GAAP and Ind AS a Fair valuation as deemed cost for Property, Plant and Equipment:

The Company have considered fair value for property, viz land admeasuring 21,534 Sq.m., situated in Moraiya Gam, Changodar, Ahmedabad, with impact of Rs''.387.60 Millions in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in the reserves.

b Revenue Recognition

The revenue is recognised as per Ind AS 115, Sales are recognised when control of the products has transferred, being when the products are delivered to the customers. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer. Hence the goods which were exported but did not reach to the customers has been reversed and booked in the next financial year when it is received by the customers.

Financing transaction being embedded into a sale transaction is evaluated and separated.

c Expected credit allowance on trade receivables

Under Ind AS, impairment allowance has been determined based on forward-looking expected credit loss (ECl) model which has led to an increase in the amount of provision as on the date of transition. The Company chose to calculate impairment allowance under simplified approach for trade receivables where the Company does not separately track changes in credit risk.

d Warranty Provisions

Under Ind A5, Warranty provisions are provided on the basis of past years trend, e Investment other than Investment in Subsidiaries

Under previous GAAP, Investments were valued Cost. Under Ind AS the investment in Equity Shares & Mutual Funds are classified as financial asset measured at fair value through profit & loss. Accordingly, the impact of difference in carrying amount as per previous GAAP and fair value as on reporting date has been taken in the respective periods.

f Loan at Effective Interest

Under Ind AS, Interest on Debt Instrument is calculated using effective interest method as described in IND AS 109 hence the difference between the actual rate applied under IGAAP and the Effective Interest rate has been taken in the respective periods.

- g Actuarial gains and losses

The impact is on account of measurement of employee benefits obligations as per Ind AS 19. Under previous GAAP, actuarial gains arid losses were recognised in profit and loss. Under Ind AS, the actuarial gains and losses forming part of remeasurement of the net defined benefit liability / asset, are recognised in the Other Comprehensive Income (OCI) under Ind AS instead of profit or loss.

h Deferred Tax

The previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using balance shefet approach which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. Various transitional adjustments has resulted in recognition of temporary differences.

There were certain difference in respect of calculation of depreciation/amortisation in earlier years which have been adjusted in opening balance of retained earning i.e. 1st ‘ April,2022.

j Effect of transition to Ind AS on Standalone Cash Flow Statement

Net increase in cash and cash equivalents represents movement in cash credit facilities considered as a component of cash and cash equivalents under Ind AS which as per previous GAAP, was considered as financing activity. Other Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities and has no impact on the net cash flow for the year ended 01st April, 2022 as compared with the previous GAAP.

G4 Figures for previous year have been regrouped / reclassified wherever considered necessary.

For Bathiya & Associates LLP For and on behalf of board of directors of S''

Chartered Accountants Mamata Machinery Limited /

Firm Registration Number: 10104jsW^WJ00063^^ / S''

fy Jfmesh P.Shah f I j p, . . \ __ Mahendra N. P5T5T* ... - rr XflSndrakant B. Patel

Partner f j . ¹ Managing Director . p^CHj/djnyyianaging Director

Membership No: 169252''. I ACCOUntCP’.j / "D j DIN: 00104997 /K&s"DfN.^S0810

Place: Ahmedabad Place: Ahmedabad jjsr/ - l^a^e: Ah''qjpiJabad

Date : 14th September,2024 Date : 14th ^ Dat^^^^^^^ember^OM^ ^

^^D^ AWf^huriSharma

S'' Chfef Fjndncial Officer ^— Company Secretary

^ As . M No.: A44889

^^Xplace : Ahmedabad Place : Ahmedabad

Date : 14th September,2024 Date : 14th September,2024