Notes to Accounts of Shree Pacetronix Ltd.

Mar 31, 2025

The Company holds an investment in its subsidiary, Shree Coratomic Ltd., which is undertaking a specialized medical technology project - the Cochlear Implant Project. As disclosed in the consolidated financial statements, the project has been under suspension for the last two financial years, and no impairment assessment has been carried out by the subsidiary as at the reporting date, despite the existence of impairment indicators.

The Company continues to monitor the financial and operational position of the subsidiary and is evaluating whether any impact on the carrying value of its investment exists. Based on the available information, no impairment of the investment in the subsidiary has been recognized in these standalone financial statements as of the reporting date.

(a) Rights, preferences and restrictions attached to shares

The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2 Loan under STAR GECL from Bank of India is secured by Hypothecation of Stock,Book Debts and Plant and Machineries as primary security and Equitable mortgage of factory land [leasehold) and buildings situated at Plot no. 15, Industrial Area No. 2, Pithampur, Dist Dhar as collateral security, personal guaranteee of Shri Atul Kumar Sethi, Smt Amita Sethi and Shri Akash Sethi.and guaranteed by National Credit Gurantee Trustee Company (NCGTC). Rate of interest is 9.25% [RBLR 1.75%) repayable in 36 months after 2years moratorium period with monthly instalment of Rs. 71545/-.

*Working Capital Limit from Bank of India repayable on demand is secured by Hypothecation of Stock,Book Debts and Plant and Machineries as primary security and Equitable mortgage of factory land (leasehold) and buildings situated at Plot no. 15, Industrial Area No. 2, Pithampur, Dist Dhar as collateral security, pledge of 128965 shares of the Company M/s Shree Pacetronix Limited in the name of Mr. Atul Sethi, personal guaranteee of Shri Atul Kumar Sethi, Smt Amita Sethi and Shri Akash Sethi. Rate of interest is 10.65% (RBLR 1.30%)

** It includes loan from Bank of India (GECL), ICICI Bank, Chola Mandalam Investment and Finance Company Limited and HDFC Bank Ltd to be repayable within a period of one year. Disclosures relating to nature of security and terms of repayment are same as provided in long term borrowings.

The company has received information from some of the "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the company has made separate list of such suppliers & disclosed the list in the attached financial Statements. However, payments to some of the suppliers outstanding beyond due dates have not been made as per the mutual terms of payments agreed by them. Hence no provision of interest on those overdue outstanding as per MSMED Act, 2006 has been made in the accounts.

35 Contingent liabilities (i) Bank Guarantee 42004.65 49831.36 The company has filed appeal against demand of Rs. 20.00 Lakhs under Goods & Service Tax Act. This demand is covered by Bank Guarantee.

37 FINANCIAL RISK MANAGEMENT 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. Credit risk primarily relates to trade and other receivables, long-term loans, cash and cash equivalents.

The Company''s exposure to credit risk with regards to trade and other receivables is influenced mainly by the individual characteristics of each customer and there is no significant concentration of risk related to industry segments. The granting of credit is controlled by well-established criteria that are reviewed on a regular basis. The maximum exposure to credit risk at the reporting date is the carrying amount of each trade receivable.

The credit policy requires each new customer to be analyzed individually for credit worthiness before delivery and payment terms are offered.

Other receivables consist primarily of security deposits, loans to employees and other receivables. The risk of default is assessed as low.

The credit risk surrounding loans receivable is assessed as low risk.

Credit risk on cash and cash equivalents is assessed as low risk as the Company deposits cash surpluses with financial institutions of high quality and standing.

Liquidity Risk

The Company actively monitors its cash flows to ensure there is sufficient cash available to meet its working capital requirements. Due to the dynamic nature of the underlying businesses, the Company maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s cash and cash equivalents on the basis of expected cash flow.

Most of the Company’s current trade and other payables are due within one year.

Interest Rate Risk

The Company is exposed to interest rate risk on its cash and cash equivalents, long-term loans and borrowings, which can have an impact on the cash flows of these instruments. The exposure to interest rate risk is managed through the Company''s Board by using counterparties that offers the best rates which enables the Company to maximize returns whilst minimizing risk.

38 Additional Regulatory Information

II The company is not Banking Company or a Non-Banking Finance Company or a Nidhi Company or Chit Fund Company or a Financial Institution or a company on which any of the directives issued by the Reserve Bank of India are applicable.

III Regrouping of previous year figures

Previous year figures have been regrouped or reclassified where ever required.

IV Title deeds of immovable Property not held in name of the Company

All title deeds of immovable property are in name of the company.

Since the relevant documents have been lodged with Bank of India for availinng loans, we have cerified the same with photocopies of the same.

V Where the Company has revalued its Property, Plant and Equipment, the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017

The Company has not revalued its Property, Plant and Equipment during the year.

VI Where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

The company has not granted loans or advances in the nature of loan to promoters, directors, KMPs or the related parties.

VII Capital Work In Progress (CWIP)

There is no capital work in progess (CWIP).

VIII Intangible assets under development

There are no intangible assets under development.

IX Details of Benami Property held

The company does not held any benami property and no procedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made there under.

X Where the Company has borrowings from banks or financial institutions on the basis of current assets.

The quartely returns of current assets filed by the company with the bank are in agreement with figures as appearing in books of accounts and no

XI Wilful Defaulter

The company is neither wilful defaulter nor declared wilful defaulter by any bank or financial institution or other lender.

XII Relationship with Struck off Companies

The company has no relationship with struck off Companies.

XIII Registration of charges or satisfaction with Registrar of Companies

There is no pending registration or satisfaction of charge with Registrar of Companies.

XIV Compliance with number of layers of companies

The company has complied with prescribed layers of companies as per Companies Act, 2013.

XV Compliance with approved Scheme(s) of Arrangements

There is no scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

XVI Utilisation of Borrowed funds and share premium

The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any ot

- Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Benefic

- Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

XVII Corporate Social Responsibility (CSR)

Particular Current Year Previous Year

Not Applicable

XVIII Details of Crypto Currency or Virtual Currency

Particular Current Year Previous Year

No Such transactions of Crypto currency/ virtual currency during the current year and previous year

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Mar 31, 2024

(a) Rights, preferences and restrictions attached to shares

The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature of security:

Secured loans

1 Term loans from HDFC Bank Ltd, ICICI Bank and Chola Mandalam Investment and Finance Company Limited are secured by hypothecation of vehicles.

2 Loan under STAR GECL from Bank of India is secured by Hypothecation of Stock,Book Debts and Plant and Machineries as primary security and Equitable mortgage of factory land (leasehold) and buildings situated at Plot no. 15, Industrial Area No. 2, Pithampur, Dist. Dhar as collateral security, personal guaranteee of Shri Atul Kumar Sethi, Smt. Amita Sethi and Shri Akash Sethi.and guaranteed by National Credit Gurantee Trustee Company (NCGTC).

*Working Capital Limit from Bank of India repayable on demand is secured by Hypothecation of Stock,Book Debts and Plant and Machineries as primary security and Equitable mortgage of factory land (leasehold) and buildings situated at Plot no. 15, Industrial Area No. 2, Pithampur, Dist. Dhar as collateral security, pledge of 128965 shares of the Company M/s Shree Pacetronix Limited in the name of Mr. Atul Sethi, personal guaranteee of Shri Atul Kumar Sethi, Smt. Amita Sethi and Shri Akash Sethi.

** It includes loan from Bank of India (GECL), ICICI Bank, Chola Mandalam Investment and Finance Company Limited and HDFC Bank Ltd to be repayable within a period of one year. Disclosures relating to nature of security and terms of repayment are same as provided in long term borrowings.

MSME Clasification is done as per memorandum received (as required to be filed by the supplier with notified authority under the Micro, Small and Medium Enterprises development Act, 2006) claiming their status as on 31st March, 2024 as micro, small or medium enterprises. Consequently the amount payable to these parties is mentioned as above.

32 Contingent liabilities
(i) Bank Guarantee	49831.36	49831.36
The company has filed appeal against demand of Rs. by Bank Guarantee.	20.00 Lakhs under Goods & Service Tax Act.	This demand is covered
33 Payment to auditors
For Statutory Audit	2,200.00	2,000.00
For Tax Audit	300.00	300.00

34 Segment reporting A. Primary segment

As the company''s business activity falls with in a single primary business segment i.e. “Life Saving Devices'' hence there is no primary segments wise information to report as per Ind -108 " Segment Reporting".

35 FINANCIAL RISK MANAGEMENT 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. Credit risk primarily relates to trade and other receivables, long-term loans, cash and cash equivalents.

The Company''s exposure to credit risk with regards to trade and other receivables is influenced mainly by the individual characteristics of each customer and there is no significant concentration of risk related to industry segments. The granting of credit is controlled by well-established criteria that are reviewed on a regular basis. The maximum exposure to credit risk at the reporting date is the carrying amount of each trade receivable.

The credit policy requires each new customer to be analyzed individually for credit worthiness before delivery and payment terms are offered.

Other receivables consist primarily of security deposits, loans to employees and other receivables. The risk of default is assessed as low.

The credit risk surrounding loans receivable is assessed as low risk.

Credit risk on cash and cash equivalents is assessed as low risk as the Company deposits cash surpluses with financial institutions of high quality and standing.

Liquidity Risk

The Company actively monitors its cash flows to ensure there is sufficient cash available to meet its working capital requirements. Due to the dynamic nature of the underlying businesses, the Company maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s cash and cash equivalents on the basis of expected cash flow.

Most of the Company''s current trade and other payables are due within one year.

Interest Rate Risk

The Company is exposed to interest rate risk on its cash and cash equivalents, long-term loans and borrowings, which can have an impact on the cash flows of these instruments. The exposure to interest rate risk is managed through the Company''s Board by using counterparties that offers the best rates which enables the Company to maximize returns whilst minimizing risk.

36 Additional Regulatory Information

II The company is not Banking Company or a Non-Banking Finance Company or a Nidhi Company or Chit Fund Company or a Financial Institution or a company on which any of the directives issued by the Reserve Bank of India are applicable.

III Regrouping of previous year figures

Previous year figures have been regrouped or reclassified where ever required.

IV Title deeds of immovable Property not held in name of the Company

All title deeds of immovable property are in name of the company.

V Where the Company has revalued its Property, Plant and Equipment, the company shall disclose as to whether the revaluation is based on the valuation by a registered valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017

The Company has not revalued its Property, Plant and Equipment during the year.

VI Where Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

The company has not granted loans or advances in the nature of loan to promoters, directors, KMPs or the related parties.

VII Capital Work In Progress (CWIP)

There is no capital work in progess (CWIP).

VIII Intangible assets under development

There are no intangible assets under development.

IX Details of Benami Property held

The company does not held any benami property and no procedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made there under.

X Where the Company has borrowings from banks or financial institutions on the basis of current assets.

The quartely returns of current assets filed by the company with the bank are in agreement with figures as appearing in books of accounts and no material descrepancies were noticed.

36 Additional Regulatory Information

XI Wilful Defaulter

The company is neither wilful defaulter nor declared wilful defaulter by any bank or financial institution or other lender.

XII Relationship with Struck off Companies

The company has no relationship with struck off Companies.

XIII Registration of charges or satisfaction with Registrar of Companies

There is not pending any registration of charge or satisfaction with Registrar of Companies.

XIV Compliance with number of layers of companies

The company has complied with prescribed layers of companies as per Companies Act, 2013.

XV Compliance with approved Scheme(s) of Arrangements

There is no scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

XVI Utilisation of Borrowed funds and share premium

The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall :

- 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;

- Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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Mar 31, 2015

(a) Rights, preferences and restrictions attached to shares

The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

The cash credit facilities availed from Bank of India are secured by hypothecation of the Company's current assets consisting of stock of Finished Goods, Stock in Process, Raw Materials. and book debts both present and future. Further secured by First Charge over fixed assets of the company and personal guarantee of Managing Director Shri Atul Kumar Sethi and Whole Time Director, Mrs Amita Sethi.

Nature of security:

* It includes Car loan and vehicle loan from ICICI Bank Ltd. and Reliance Capital Ltd to be repayable within a period of year. Disclosures relating to nature of security and terms of repayment are same as provided in long term borrowings.

1.1 Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II, except in respect of certain assets as disclosed in accounting policy on depreciation, amortization and depletion. Accordingly the unamortized carrying value in being depreciated/amortized over the revised, remaining useful lives. The written down value of fixed assets whose lives have expired as at 1st April, 2014 have been adjusted net of tax, in the opening balance of profit and loss account amounting to Rs. 340684/-.

2 Segment reporting

A. Primary segment

As the company's business activity falls within a single primary business segment i.e. "Life Saving Devices' hence there is no primary segments wise information to report as per Accounting Standard -17 " Segment Reporting".

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Mar 31, 2014

1 Contingent liabilities

Guarantees given to banks - 3,760,000

The disputed demand of income tax 280.000 2,80,0000

280.000 4,040,000

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Mar 31, 2013

1. Previous year figures have been regrouped/rearranged wherever necessary to make them comparable with current year.

2. The figures have been rounded off to the nearest rupee.

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Mar 31, 2012

1. In the opinion of the Board, the current assets have a value on realization in the ordinary course of business at least equal to the amount at which these are stated above and the provisions for known liabilities is adequate and not in excess of the amount considered reasonable and necessary.

2. Security of Loans

(i) Term loan from ICICI bank is secured by hypothecation of car.

(ii) Term loans from HDFC bank is secured by hypothecation of car and vehicle.

(iii) Term loan from Bank of India is secured by hypothecation of Plant and Machinery. It is further secured by First Charge over fixed assets of the company and personal guarantee of Managing Director, Shri Atul Kumar Sethi and Whole Time Director, Mrs Amita Sethi.

(iv) Cash Credit.

The cash credit facilities availed from Bank of India are secured by hypothecation of the Company's current assets consisting of stock of Finished Goods, Stock in Process, Raw Materials etc. and book debts both present and future. Further secured by extension of First Charge over fixed assets of the company and personal guarantee of Managing Director Shri Atul Kumar Sethi and Whole Time Director, Mrs Amita Sethi.

3. The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. There are no over dues to parties on account of principal amount and/or interest and accordingly no additional disclosures have been made.

4. Sundry Debtors includes Rs.21.84 lacs (Previous Year Rs.25.62 lacs) due from the subsidiary company Shree Coratomic Limited.

5. Segment Reporting :

A. PRIMARY SEGMENTS

As the company's business activity falls with in a single primary business segment i.e. "Life saving devices' hence there is no primary segments wise information to report as per Accounting Standard -17 "Segment Reporting"

6. Previous year figures have been regrouped/rearranged wherever necessary to make them comparable with current year.

7. The figures have been rounded off to the nearest rupee.

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Mar 31, 2010

1. Significant accounting policies and notes to these Consolidated Financial Statements are intended to serve as a means of informative disclosure and a guide to better understanding the consolidated position of the company. Recognizing this purpose, the company has disclosed only such policies and notes from the individual financial statements, which fairly present the needed disclosures. Practical considerations and lack of homogeneity made it desirable to exclude some of them which, in the opinion of the management, could be better viewed, when referred from the individual financial statements.

2. Consolidated financial statement have been prepared substantially in the same format as adopted by the parent to the extent possible and in accordance with Accounting Standard (AS) –21 "Consolidated Financial Statements" .

3. Segment Reporting :

A. PRIMARY SEGMENTS

As the companys business activity falls with in a single primary business segment i.e. "Life saving devices", hence there is no primary segments wise information to report as per Accounting standard - 17 " Segment Reporting".

4. Related Party disclosures :

Disclosures as required by the Accounting Standard – 18 ‘Related Party Disclosures’ are given below:

I. Relationship

a. Holding /Subsidiary Company

Since Consolidated financial statements present information about holding and its subsidiary as a single reporting enterprise. It is unnecessary to disclose intra-group transactions.

b. Key Management Personnel

Shri Atul Kumar Sethi : Managing Director Smt. Amita Sethi : Whole time Director Shri Sushil Patni : Director

C. Other related parties where control exist;

NIL

d. Relatives of Key Management personnel and their enterprises where transactions have taken place : Smt. Heera Sethi, Shri Ashish Sethi, Shri Akash Sethi

NOTE : Related party relationship is as indentified by the company and relied upon by the Auditors.

5. Contingent liabilities not provided for :-

I. Guarantees given by bank - Rs. 65.60 Lacs (Previous Year Rs. 65.60 Lacs)

II. The disputed demand on Income Tax - Rs. 19.19 Lacs. (Previous Year Rs. 19.19 Lacs)

6. Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) NIL (Previous Year Rs. 122.67 Lacs)

7. Figure pertaining to the subsidiary company have been reclassified wherever necessary to bring them in line with the parent company’s financial statements.

8. Previous year figures have been regrouped / rearranged wherever necessary to make them comparable with current year.

9. The figures have been rounded off to the nearest rupee.