Nitiraj Engineers Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2025

(o) Provisions
General

Provisions are recognised 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. When the
Company expects some or all of a provision to be reimbursed, for example, under an insurance contract,
the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the statement of profit and loss net of any
reimbursement.

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

(p) Employee Benefits

(i) Short-term Obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are
recognised in respect of employees'' services up to the end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

(ii) Other Long-Term Employee Benefit Obligations

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after
the end of the period in which the employees render the related service. They are therefore measured as
the present value of expected future payments to be made in respect of services provided by employees
up to the end of the reporting period using the projected unit credit method. The benefits are discounted
using the market yields at the end of the reporting period that have terms approximating to the terms of
the related obligation.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting period, regardless of
when the actual settlement is expected to occur.

(iii) Post-Employment Obligations

The company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity, pension, post-employment medical plans; and

(b) defined contribution plans such as provident fund.

Gratuity Obligations

The liability or asset recognised in the balance sheet in respect of defined benefit pension and gratuity
plans is the present value of the defined benefit obligation at the end of the reporting period less the fair
value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected
unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the
estimated future cash outflows by reference to market yields at the end of the reporting period on
government bonds that have terms approximating to the terms of the related obligation. The benefits
which are denominated in currency other than INR, the cash flows are discounted using market yields
determined by reference to high-quality corporate bonds that are denominated in the currency in which
the benefits will be paid, and that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the
statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive income.
They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognised immediately in profit or loss as past service cost.

Post-Employment Medical Obligations

Company provide post-retirement healthcare benefits to their retirees. The entitlement to these benefits is
usually conditional on the employee remaining in service up to retirement age and the completion of a
minimum service period. The expected costs of these benefits are accrued over the period of employment
using the same accounting methodology as used for defined benefit plans. Remeasurement gains and
losses arising from experience adjustments and changes in actuarial assumptions are charged or credited in
other comprehensive income in the period in which they arise.

Defined Contribution Plans

The company pays provident fund contributions to publicly administered provident funds as per local
regulations. The company has no further payment obligations once the contributions have been paid. The
contributions are accounted for as defined contribution plans and the contributions are recognised as
employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the
extent that a cash refund or a reduction in the future payments is available.

(vi) Termination Benefits

Termination benefits are payable when employment is terminated by the company before the normal
retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The
company recognises termination benefits at the earlier of the following dates: (a) when the company can
no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a restructuring
that is within the scope of Ind AS 37 and involves the payment of terminations benefits. In the case of an
offer made to encourage voluntary redundancy, the termination benefits are measured based on the
number of employees expected to accept the offer. Benefits falling due more than 12 months after the end
of the reporting period are discounted to present value.

(q) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of
the reporting period.

(r) Earnings per share
Basic Earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the company

- by the weighted average number of equity shares outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the year and excluding treasury shares

Dilluted Earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity

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

(s) Current/non Current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current
classification. An asset is treated as current when it is:

- Expected to be realised or intended to be sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period

The company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash
and cash equivalents. The company has identified twelve months as its operating cycle.

(t) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker.

The board of directors of Nitiraj Engineers Limited has appointed a strategic steering committee which
assesses the financial performance and position of the company, and makes strategic decisions. The
steering committee, which has been identified as being the chief operating decision maker, consists of the
chief executive officer, the chief financial officer and the manager for corporate planning.

(u) Rounding of Amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh as
per the requirement of Schedule III, unless otherwise stated.

3 Significant Accounting Judgements, Estimates and Assumptions

In the application of the Company''s accounting policies, which are described in Note 2, the management of
the Company are required to make judgements, estimates and assumptions about the carrying amounts of
assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual
results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future
periods.

Critical Judgements in Applying Accounting Policies

The following are the critical judgements, apart from those involving estimations, that the directors have
made in the process of applying the Company''s accounting policies and that have the most significant
effect on the amounts recognised in the financial statements.

(i) Useful lives of Property, Plant and Equipment

Management reviews the useful lives of property, plant and equipment at least once a year. Such lives are
dependent upon an assessment of both the technical lives of the assets and also their likely economic lives
based on various internal and external factors including relative efficiency and operating costs. Accordingly,
depreciable lives are reviewed annually using the best information available to the Management.

(ii) Impairment of non Financial Assets

Determining whether the asset is impaired requires an estimation of the value in use of the cash¬
generating units to which asset/goodwill has been allocated. The value in use calculation requires the
Company to estimate the future cash flows expected to arise from the cash-generating unit and a suitable
discount rate in order to calculate present value. Where the actual future cash flows are less than
expected, a material impairment loss may arise.

(iii) Provisions and Contingent Liabilities

A provision is recognised when the Company has a present obligation as a result of past event and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable
estimate can be made. These are reviewed at each Balance sheet date and adjusted to reflect the current
best estimates.

The Company has not obtained independent valuations for its investment properties during the year. The
best evidence of fair value is current prices in an active market for similar properties.

The main inputs used are the rental growth rates, expected vacancy rates, terminal yields and discount rates
based on comparable transactions and industry data.

Generally, a change in the assumption made for the estimated rental value is accompanied by:

- A directionally similar change in the rent growth per annum and discount rate (and exit yield)

- An opposite change in the long term vacancy rate

(i) Leave Obligations

The leave obligations cover the company''s liability for sick and earned leave.

(ii) Post Employement obligations
a) Gratuity

The company provides for gratuity for employees in india as per the Payment of Gratuity Act, 1972. Employees who are in continuous
service for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last
drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service.

The gratuity plan is an unfunded plan and the company makes contributions to recognised funds in India. The company does not fully fund
the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity
payments.

An operating segment is one whose operating results are regularly reviewed by the entity''s chief operating decision maker
to make decisions about resources to be allocated to the segment and assess its performance. The Company is engaged in
manufacturing and selling of electronic equipments which constitute a single reportable segment in the context of Ind AS
108 on “Segment reporting".

A. Information about geographical areas
Revenue from external customers

The company is domiciled in India. The amount of its revenue from external customers broken down by location of the
customers is shown in the table below:

There have been no transfers among Level 1, Level 2 and Level 3 during the period

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have quoted price. The mutual funds are valued
using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using
valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair
value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities
included in level 3.

iii. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include: 0

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

The Company has a well-defined risk management framework. The Board of Directors of the Company has
adopted a Risk Management Policy. 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 a customer or counterparty to a financial instrument will fail to perform or fail to pay
amounts due causing financial loss to the company. The potential activities where credit risks may arise include
from cash and cash equivalents, derivative financial instruments and security deposits or other deposits and
principally from credit exposures to customers relating to outstanding receivables. The maximum credit exposure
associated with financial assets is equal to the carrying amount. Details of the credit risk specific to the company
along with relevant mitigation procedures adopted have been enumerated below:

Trade and other receivables

The Company''s exposure to credit Risk is the exposure that Company has on account of services rendered to a
contractual counterparty or counterparties, whether with collateral or otherwise for which the contracted
consideration is yet to be received. The Company''s customer base are Industrial and Commercial.

Services are generally subject to security deposit and/or bank guarantee clauses to ensure that in the event of non
payment the company''s receivables are not affected. The Company provides for allowance for impairment that
represents its estimate of expected losses in respect of trade and other receivables.

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix.

Refer note 9 for ageing of trade receivables.

The above receivables which are past due but not impaired are assessed on case-to-case basis. The instances
pertain to third party customers which have a proven creditworthiness record. Management is of the view that
these financial assets are not impaired as there has not been any adverse change in credit quality and are
envisaged as recoverable based on the historical payment behavior and extensive analysis of customer credit risk,
including underlying customers'' credit ratings, if they are available. Consequently, no additional provision has been
created on account of expected credit loss on the receivables. There are no other classes of financial assets that
are past due but not impaired. The provision for impairment of trade receivables, movement of which has been
provided below, is not significant / material. The concentration of credit risk is limited due to fact that the
customer base is large and unrelated.

Other financial assets

Other financial assets includes loan to employees, security deposits, investments, cash and cash equivalents, other
bank balance, derivative asset, advances to employees etc.

• Cash and cash equivalents and Bank deposits are placed with banks having good reputation and past track record
with adequate credit rating.

• Investments are made in credit worthy companies.

• Company has given security deposit to various purposes and management believes that the Company does not
have exposure to any credit risk.

• Loan and advances to employees are majorly secured against the salary and hence the Company does not have
exposure to any credit risk.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are proposed to be settled by delivering cash or other financial asset. The Company''s
financial planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities whenever
due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Company''s reputation. The Company has practiced financial diligence and syndicated adequate liquidity in all
business scenarios.

Further, the Company has also tied-up additional sources of liquidity to meet the liabilities during the respective
annual years which has ensured that the Company has a clean track record with no adverse events pertaining to
liquidity risk.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts
are gross and undiscounted, and include estimated interest payments and exclude the impact of netting
agreements.

(iv) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity
prices - will affect the Company''s income or the value of its holdings of financial instruments.

Currency risk

The functional currency of the Company is Indian Rupees. The Company do not have derivative financial
instruments. The Company is not exposed to foreign currency risk.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk
is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest
rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will
fluctuate because of fluctuations in the interest rates. The company is not materially exposed to interest rate risk.

The Company defines capital as total equity including issued equity capital, share premium and all other equity
reserves attributable to equity holders of the Company (which is the Company''s net asset value). The primary
objective of the Company''s financial framework is to support the pursuit of value growth for shareholders, while
ensuring a secure financial base.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''adjusted equity''. For this purpose, adjusted net
debt is defined as total interest-bearing loans and borrowings less cash and bank balances. Total equity comprises all
components of equity.

Refer Note No. 46 for information on ratios

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which
recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the
Entrepreneurs Memorandum Number/ Udyog Aadhar/ Udyam as allocated after filing of the Memorandum.
Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31, 2025 has been made
in the financial statements based on information received and available with the Company. Further in view of the
management, the impact of interest, if any, that may be payable in accordance with the provisions of the Micro, Small
and Medium Enterprises Development Act,2006 (''The MSMED Act'') is not expected to be material. The Company has
not received any claim for interest from any supplier.

41. OTHER REGULATORY DISCLOSURES ~

- The Company do not have any Benami property, where any proceeding has been initiated or pending against the
company for holding any Benami property.

- The Company do not have any transactions with companies struck off.

- The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period

- The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

- 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 company 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,

- The Company have not any such 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

- The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act,
2013 read with Companies (Restriction on number of Layers) Rules, 2017

- The Company does not have any Scheme of Arrangements approved by the Competent Authority in terms of sections
230 to 237 of the Companies Act, 2013

42 . As at the balance sheet date, the Company has reviewed the carrying amounts of its assets and found that there is
no indication that those assets have suffered any impairment loss. Hence, no such impairment loss has been provided.

43. Amount due for credit to Investor Education and Protection Fund is NIL (Previous year NIL).

44. In the opinion of management, any of the assets other than property, plant and equipment and non-current
investments have a value on realisation in the ordinary course of business at least equal to the amount at which they
are stated.

47. RECENT ACCOUNTING PRONOUNCEMENT__

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. For the year ended March 31, 2025, MCA has notified Ind AS - 117
Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company
w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its evaluation has determined that it does
not have any significant impact in its financial statements.

48. Previous year figures have been regrouped/ rearranged, wherever considered necessary to confirm to current year''s
classification

As per our report of even date

For SHARP AARTH & CO. LLP For and on behalf of the board of directors of Nitiraj Engineers Limited

Chartered Accountants
F.R.No. 132748W / W100823

Harshal Jethale Rajesh R. Bhatwal Shakuntala R. Bhatwal

Partner Managing Director Director

Membership No.: 141162 Din No.00547575 Din No.01953906

UDIN : 25141162BMICTS2175

Ashishkumar G. Sharma Deepika A. Dalmiya

Mumbai Chief Financial Officer Company Secretary

Date: May 29, 2025 Membership No. A58029

---

Mar 31, 2024

The Company has not obtained independent valuations for its investment properties during the year. The best evidence of fair value is current prices in an active market for similar properties.

The main inputs used are the rental growth rates, expected vacancy rates, terminal yields and discount rates based on comparable transactions and industry data.

Generally, a change in the assumption made for the estimated rental value is accompanied by:

- A directionally similar change in the rent growth per annum and discount rate (and exit yield)

- An opposite change in the long term vacancy rate

Trade or Other Receivable due from directors or other officers of the company either severally or jointly with any other person amounted to INR Nil (Previous year INR Nil)

Trade or Other Receivable due from firms or private companies respectively in which any director is a partner, a director or a member amounted to INR Nil (Previous year INR Nil)

Bank deposits earns interest at fixed rates. Short term deposits are generally made for varying periods between seven days to twelve months, depending on the cash requirements of the Company, and earn interest at the respective deposit rates

Terms/rights attached to equity shares

The Company has one class of Equity shares having a par value of INR 10 each. Each holder of Equity shares is entitled to one vote per share and are subject to the preferential rights as prescribed under law or those of preference shareholders,if any. The Equity share holders are also subject to restrictions as presribed under the Companies Act, 2013. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares

B. Disaggregated revenue information

The table below presents disaggregated revenue from contact with customers for the year ended March 2024 and March 2023. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors.

(i) Leave Obligations

The leave obligations cover the company''s liability for sick and earned leave.

The amount of the provision of INR 0.07 Lakhs (March 31, 2023: 0.37 lakhs) is presented as current, since the company does not have an unconditional right to defer settlement for any of these obligations.

(ii) Post Employement obligations a) Gratuity

The company provides for gratuity for employees in india as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service.

The gratuity plan is an unfunded plan and the company makes contributions to recognised funds in India. The company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

Nature of the lease transaction:

The Company has taken various office buildings on lease with lease term ranging from 11 Months to 6 years Some lease contract can be renewed with mutual consent and some lease contract also contains the termination options. Such options are appropriately considered in determination of the lease term based on the management''s judgement.

(v) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables and payables. For the year ended March 21, 2023, the group has not recorded any impairment of receivables relating to amount owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and market in which the related party operates.

An operating segment is one whose operating results are regularly reviewed by the entity''s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. The Company is engaged in manufacturing and selling of electronic equipments which constitute a single reportable segment in the context of Ind AS 108 on “Segment reporting".

For the financial year 2023-24, revenue from Linkwell Telesystems Pvt Ltd amounted to INR 3,041.04 lakhs, and from Integra Micro Systems (P) Ltd to INR 1,893.68 lakhs, with both contributing over 10% of the total revenue for the period.

The management assessed that the fair value of cash and cash equivalent, trade receivables, trade payables, security deposit and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

There have been no transfers among Level 1, Level 2 and Level 3 during the period

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3.

iii. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

The Company has a well-defined risk management framework. The Board of Directors of the Company has adopted a Risk Management Policy. 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 a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing financial loss to the company. The potential activities where credit risks may arise include from cash and cash equivalents, derivative financial instruments and security deposits or other deposits and principally from credit exposures to customers relating to outstanding receivables. The maximum credit exposure associated with financial assets is equal to the carrying amount. Details of the credit risk specific to the company along with relevant mitigation procedures adopted have been enumerated below:

Trade and other receivables

The Company''s exposure to credit Risk is the exposure that Company has on account of services rendered to a contractual counterparty or counterparties, whether with collateral or otherwise for which the contracted consideration is yet to be received. The Company''s customer base are Industrial and Commercial.

Services are generally subject to security deposit and/or bank guarantee clauses to ensure that in the event of nonpayment the company''s receivables are not affected. The Company provides for allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables.

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix.

Refer note 9 for ageing of trade receivables.

The above receivables which are past due but not impaired are assessed on case-to-case basis. The instances pertain to third party customers which have a proven creditworthiness record. Management is of the view that these financial assets are not impaired as there has not been any adverse change in credit quality and are envisaged as recoverable based on the historical payment behavior and extensive analysis of customer credit risk, including underlying customers'' credit ratings, if they are available. Consequently, no additional provision has been created on account of expected credit loss on the receivables. There are no other classes of financial assets that are past due but not impaired. The provision for impairment of trade receivables, movement of which has been provided below, is not significant / material. The concentration of credit risk is limited due to fact that the customer base is large and unrelated.

Other financial assets

Other financial assets includes loan to employees, security deposits, investments, cash and cash equivalents, other bank balance, derivative asset, advances to employees etc.

• Cash and cash equivalents and Bank deposits are placed with banks having good reputation and past track record with adequate credit rating.

• Investments are made in credit worthy companies.

• Company has given security deposit to various purposes and management believes that the Company does not have exposure to any credit risk.

• Loan and advances to employees are majorly secured against the salary and hence the Company does not have exposure to any credit risk.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are proposed to be settled by delivering cash or other financial asset. The Company''s financial planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities whenever due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. The Company has practiced financial diligence and syndicated adequate liquidity in all business scenarios.

Further, the Company has also tied-up additional sources of liquidity to meet the liabilities during the respective annual years which has ensured that the Company has a clean track record with no adverse events pertaining to liquidity risk.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

(iv) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments.

Currency risk

The functional currency of the Company is Indian Rupees. The Company do not have derivative financial instruments. The Company is not exposed to foreign currency risk.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates. The company is not materially exposed to interest rate risk.

The Company defines capital as total equity including issued equity capital, share premium and all other equity reserves attributable to equity holders of the Company (which is the Company''s net asset value). The primary objective of the Company''s financial framework is to support the pursuit of value growth for shareholders, while ensuring a secure financial base.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''adjusted equity''. For this purpose, adjusted net debt is defined as total interest-bearing loans and borrowings less cash and bank balances. Total equity comprises all components of equity.

Refer Note No. 46 for information on ratios

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number/ Udyog Aadhar/ Udyam as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31, 2024 has been made in the financial statements based on information received and available with the Company. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act,2006 (''The MSMED Act'') is not expected to be material. The Company has not received any claim for interest from any supplier.

41. OTHER REGULATORY DISCLOSURES_

- The Company do not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

- The Company do not have any transactions with companies struck off.

- The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period

- The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

- 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 company 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,

40. DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED ACT, 2006)_

- The Company have not any such 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

- The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017

- The Company does not have any Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013

42 . As at the balance sheet date, the Company has reviewed the carrying amounts of its assets and found that there is no indication that those assets have suffered any impairment loss. Hence, no such impairment loss has been provided.

43. Amount due for credit to Investor Education and Protection Fund is NIL (Previous year NIL).

44. In the opinion of management, any of the assets other than property, plant and equipment and non-current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

47. RECENT ACCOUNTING PRONOUNCEMENT_

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 standards applicable to the company.

48. Previous year figures have been regrouped/ rearranged, wherever considered necessary to confirm to current year''s classification

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Mar 31, 2023

The Company has not obtained independent valuations for its investment properties during the year. The best evidence of fair value is current prices in an active market for similar properties.

The main inputs used are the rental growth rates, expected vacancy rates, terminal yields and discount rates based on comparable transactions and industry data.

Generally, a change in the assumption made for the estimated rental value is accompanied by:

- A directionally similar change in the rent growth per annum and discount rate (and exit yield)

- An opposite change in the long term vacancy rate

Trade or Other Receivable due from directors or other officers of the company either severally or jointly with any other person amounted to INR Nil (Previous year INR Nil)

Trade or Other Receivable due from firms or private companies respectively in which any director is a partner, a director or a member amounted to INR Nil (Previous year INR Nil)

Bank deposits earns interest at fixed rates. Short term deposits are generally made for varying periods between seven days to twelve months, depending on the cash requirements of the Company, and earn interest at the respective deposit rates

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liablities relate to income taxes levied by the same tax authority

Terms/rights attached to equity shares

The Company has one class of Equity shares having a par value of INR 10 each. Each holder of Equity shares is entitled to one vote per share and are subject to the preferential rights as prescribed under law or those of preference shareholders,if any. The Equity share holders are also subject to restrictions as presribed under the Companies Act, 2013. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of

B. Disaggregated revenue information

The table below presents disaggregated revenue from contact with customers for the year ended March 2023 and March 2022. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors.

During the year company sold a portion of it''s stake in Hyper Drive Information Technologies Private Limited which has resulted in exceptional loss of Rs.18.89 lacs.

During the F.Y. 2021-22 company has closed down one of its Manufacturing Unit at Parwanoo, which has resulted in exceptional loss of Rs. 123.15 lacs on Disposal of Property, Plant and Equipment.

Also, the company had been developing its "Electronic Cash Register (Billing Machine)" and had re assessed its strategy in response to the change in market conditions that the intangible cannot be developed as intended initially and has hence shelved the project resulting in write off of Rs 196.27 lacs. as a exceptional item.

(i) Leave Obligations

The leave obligations cover the company''s liability for sick and earned leave.

The amount of the provision of INR 0.37 Lakhs (March 31, 2022: 0.79 lakhs) is presented as current, since the company does not have an unconditional right to defer settlement for any of these obligations.

(ii) Post Employement obligations a) Gratuity

The company provides for gratuity for employees in india as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service.

The gratuity plan is an unfunded plan and the company makes contributions to recognised funds in India. The company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

34. Leases

Nature of the lease transaction:

The Company has taken various office buildings on lease with lease term ranging from 11 Months to 6 years Some lease contract can be renewed with mutual consent and some lease contract also contains the termination options. Such options are appropriately considered in determination of the lease term based on the management''s judgement.

Refer Note 4 for details relating to Right of Use Assets.

(v) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables and payables. For the year ended March 21, 2023, the group has not recorded any impairment of receivables relating to amount owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and market in which the related party operates.

An operating segment is one whose operating results are regularly reviewed by the entity''s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. The Company is engaged in manufacturing and selling of electronic equipments which constitute a single reportable segment in the context of Ind AS 108 on “Segment reporting".

For F.Y. 2021-22, Revenue from Director Social Welfare Jharkhand amounted to INR 468.71 which exceeded 10% of total revenue for F.Y. 2021-22.

The management assessed that the fair value of cash and cash equivalent, trade receivables, trade payables, security deposit and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

There have been no transfers among Level 1, Level 2 and Level 3 during the period

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities included in level 3.

iii. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

The Company has a well-defined risk management framework. The Board of Directors of the Company has adopted a Risk Management Policy. 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 a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing financial loss to the company. The potential activities where credit risks may arise include from cash and cash equivalents, derivative financial instruments and security deposits or other deposits and principally from credit exposures to customers relating to outstanding receivables. The maximum credit exposure associated with financial assets is equal to the carrying amount. Details of the credit risk specific to the company along with relevant mitigation procedures adopted have been enumerated below:

Trade and other receivables

The Company''s exposure to credit Risk is the exposure that Company has on account of services rendered to a contractual counterparty or counterparties, whether with collateral or otherwise for which the contracted consideration is yet to be received. The Company''s customer base are Industrial and Commercial.

Services are generally subject to security deposit and/or bank guarantee clauses to ensure that in the event of non-payment the company''s receivables are not affected. The Company provides for allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables.

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix.

Refer note 9 for ageing of trade receivables.

The above receivables which are past due but not impaired are assessed on case-to-case basis. The instances pertain to third party customers which have a proven creditworthiness record. Management is of the view that these financial assets are not impaired as there has not been any adverse change in credit quality and are envisaged as recoverable based on the historical payment behavior and extensive analysis of customer credit risk, including underlying customers'' credit ratings, if they are available. Consequently, no additional provision has been created on account of expected credit loss on the receivables. There are no other classes of financial assets that are past due but not impaired. The provision for impairment of trade receivables, movement of which has been provided below, is not significant / material. The concentration of credit risk is limited due to fact that the customer base is large and unrelated.

Other financial assets

Other financial assets includes loan to employees, security deposits, investments, cash and cash equivalents, other bank balance, derivative asset, advances to employees etc.

• Cash and cash equivalents and Bank deposits are placed with banks having good reputation and past track record with adequate credit rating.

• Investments are made in credit worthy companies.

• Company has given security deposit to various purposes and management believes that the Company does not have exposure to any credit risk.

• Loan and advances to employees are majorly secured against the salary and hence the Company does not have exposure to any credit risk.

(iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are proposed to be settled by delivering cash or other financial asset. The Company''s financial planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities whenever due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. The Company has practiced financial diligence and syndicated adequate liquidity in all business scenarios.

Further, the Company has also tied-up additional sources of liquidity to meet the liabilities during the respective annual years which has ensured that the Company has a clean track record with no adverse events pertaining to liquidity risk.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

(iv) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments.

Currency risk

The functional currency of the Company is Indian Rupees. The Company do not have derivative financial instruments. The Company is not exposed to foreign currency risk.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates. The company is not materially exposed to interest rate risk.

The Company defines capital as total equity including issued equity capital, share premium and all other equity reserves attributable to equity holders of the Company (which is the Company''s net asset value). The primary objective of the Company''s financial framework is to support the pursuit of value growth for shareholders, while ensuring a secure financial base.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''adjusted equity''. For this purpose, adjusted net debt is defined as total interest-bearing loans and borrowings less cash and bank balances. Total equity comprises all components of equity.

The information has been given in respect of such vendors to the extent they could be identified as "Mico and Small" enterprises on the basis of information available with the Company.

41. OTHER REGULATORY DISCLOSURES_

- The Company do not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

- The Company do not have any transactions with companies struck off.

- The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period

- The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

- 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 company 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,

- The Company have not any such 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

- The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017

- The Company does not have any Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013

42 . As at the balance sheet date, the Company has reviewed the carrying amounts of its assets and found that there is no indication that those assets have suffered any impairment loss. Hence, no such impairment loss has been provided.

43. Amount due for credit to Investor Education and Protection Fund is NIL (Previous year NIL).

44. In the opinion of management, any of the assets other than property, plant and equipment and non-current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

47. RECENT ACCOUNTING PRONOUNCEMENT_

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting

Estimates and Errors The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements

48. Previous year figures have been regrouped/ rearranged, wherever considered necessary to confirm to current year''s

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Mar 31, 2018

1. Corporate Information :

Nitiraj Engineers was incorporated in April 1999 as a private limited company. The company is engaged in the manufacturing and selling of a variety of Electronic Weighing Scales, Currency Counting Machines, Taxi Fare Meters etc.

The company was converted into a Limited Company on 22^nd June, 2015 and the new name of the company is Nitiraj Engineers Limited. The company launched its Initial Public Offer of equity shares during the F.Y. 2016 - 2017 and got listed on the NSE Emerge [SME] Exchange.

A. Segment Reporting

The company is operating one manufacturing unit in Himachal Pradesh producing electronic weighing scales and other products. Hence there are no reportable segments under Accounting Standard -17. The conditions prevailing in India being uniform no separate geographical disclosures are considered necessary.

B. In the opinion of the Board, subject to the debts considered doubtful, Current Assets and Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

C) Miscellaneous Expenditure

During the year the company has capitalized the expenditure incurred on its Initial Public offer and also the expenditure incurred for long term marketing. It is writing off this expenditure over a period of five years.

D) Previous Years Figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

* The above unutilised proceeds from the Issue have been deployed in Mutual Funds and partly are in the Bank Account.

E) The Company is in the process of identifying SSI units amongst its creditors, hence the information regarding dues to SSI units is not disclosed presently

F) Creditors, Debtors (Including Credit Balances) Advances etc, are subject to confirmation and reconciliation

G) Valuation of stock is taken as certified by the management.