n) Provisions, contingent liabilities and contingent assets

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.

A contingent liability is 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 Company or a present obligation that is
not recognised because it is not probable that an outflow of resources will be required to settle the obligation.A contingent
liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured
reliably. The Company does not recognise the contingent liability but discloses its existence in the financial statements.

Contingent assets are neither recognized nor disclosed in the financial statements.

o) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable
to equity shareholders of the Company and the weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential equity shares.

p) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above are considered an integral part of the Company's cash management.

q) Cash dividend to equity holders of the Company

The Company recognises a liability to make cash distributions to equity holders of the Company when the distribution
is authorised and the distribution is no longer at the discretion of the Company. Final dividends on shares are recorded
as a liability on the date of approval by the shareholders and Interim dividends are recorded as a liability on the date of
declaration by the Company's Board of Directors. A corresponding amount is recognised directly in equity.

r) Supplier finance arrangements

The Company has established supplier finance arrangements (Refer Note 17A). The Company evaluates whether financial
liabilities covered such arrangements continue to be classified within trade payables, or they need to be classified as a
borrowing or as part of other financial liabilities/ as a separate line item on the face of the balance sheet. Such evaluation
requires exercise of judgment basis specific terms of the arrangement.

The Company classifies financial liabilities covered under supplier finance arrangement within trade payables in the balance
sheet only if (i) the obligation represents a liability to pay for goods and services, (ii) is invoiced and formally agreed with the
supplier, (iii) is part of the working capital used in its normal operating cycle, (iv) the Company is not legally released from
its original obligation to the supplier, and has not assumed a new obligation toward the bank, and another party (iv) there
is no substantial modification to the terms of the liability.

If one or more of the above criteria are met, the Company derecognises its original liability toward the supplier and
recognise a new liability toward the bank which is classified as bank borrowing or other financial liability, depending on
factors such as whether the Company (i) has obligation toward bank, (ii) is getting extended credit period such that
obligation is no longer part of its working capital cycle, (iii) is paying interest directly or indirectly, (iv) has provided
guarantee or security, and/ or (v) is recognized as borrower in the bank books.

Cash flows related to liabilities arising from supplier finance arrangements that continue to be classified in trade payables
in the consolidated balance sheet are included in operating activities in the consolidated statement of cash flows, when the
Company finally settles the liability.

In cases, where the Company has derecognised its original liability toward the supplier and recognise a new liability toward
the bank, the Company has assessed that the bank is acting as its agent in making payment to the supplier. Accordingly,
the Company presents operating cash outflow and financing cash inflow, when bank made payment to the supplier. The
payment made by the Company to the bank toward interest, if any, as well as on settlement is presented as financing cash
outflow.

s) New and amended standards:

The Company applied for the first-time certain standards and amendments, which are effective for annual periods begin¬
ning on or after 1 April 2024. The Company has not early adopted any standard, interpretation or amendment that has
been issued but is not yet effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts, vide notification dated 12 August
2024, under the Companies (Indian Accounting Standards) Amendment Rules, 2024, which is effective from annual
reporting periods beginning on or after 1 April 2024.

Ind AS 117 Insurance Contracts is a comprehensive new accounting standard for insurance contracts covering recognition
and measurement, presentation and disclosure. Ind AS 117 replaces Ind AS 104 Insurance Contracts. Ind AS 117 applies
to all types of insurance contracts, regardless of the type of entities that issue them as well as to certain guarantees and
financial instruments with discretionary participation features; a few scope exceptions will apply. Ind AS 117 is based on a
general model, supplemented by:

• A specific adaptation for contracts with direct participation features (the variable fee approach)

• A simplified approach (the premium allocation approach) mainly for short-duration contracts

The application of Ind AS 117 does not have material impact on the Company's separate financial statements as the
Company has not entered any contracts in the nature of insurance contracts covered under Ind AS 117.

(ii) Amendment to Ind AS 116 Leases - Lease Liability in a Sale and Leaseback

The MCA notified the Companies (Indian Accounting Standards) Second Amendment Rules, 2024, which amend Ind AS 116,
Leases, with respect to Lease Liability in a Sale and Leaseback.

The amendment specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and
leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right
of use it retains.

The amendment is effective for annual reporting periods beginning on or after 1 April 2024 and must be applied
retrospectively to sale and leaseback transactions entered into after the date of initial application of Ind AS 116.

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

Nature and purpose of reserves

Security premium represents the amount received in excess of par value of equity shares. Section 52 of Companies Act,
2013 specifies regulation around application of premiums received on issue of shares. Accordingly, the Company has
applied securities premium to write off Company's share of expenses incurred on fresh issue of equity shares.

Capital redemption reserve represents the amount of profits transferred from securities premium for the buy back of
equity shares. The reserve can be utilised only for limited purposes in accordance with the provisions of the Companies
Act, 2013.

Retained earnings are the profits that the Company has earned till date, less dividends or other distributions paid to
shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans, net of taxes that will not
be reclassified to statement of profit and loss. Retained earnings is a free reserve available to the Company and eligible for
distribution to shareholders.

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

Trade receivables and retention money are non-interest bearing. Refer note 10 for details on expected credit loss.

Unbilled revenue are initially recognised for revenue earned from transfer of goods and services but not billed to customer
because the work completed has to meet requirements of various milestones as set out in the contract with customers.
Upon fulfilling the milestones and acceptance by the customer, the amounts recognised as contract assets are reclassified
to trade receivables.

Advance from customers pertain to balance received as advance from various parties as certain percentage of the order
value. The same will be adjusted against the order on the basis of delivery and collection of receivables.

There is no difference in the contract price negotiated and the revenue recognised in the statement of profit and loss. There
is no significant revenue recognised in the current year from performance obligations satisfied in previous years.

Amounts included in contract liabilities at the beginning of the period recognised as revenue in the current period of Rs.
65.16 (March 31, 2024: Rs. 220.03). Generally the advance from customers are settled over a period of 1 to 3 years.

32. Commitments and contingencies

a. Commitments

Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for: Rs.
121.20 (March 31, 2024: Rs. 466.62).

b. Contingent liabilities

Claims against the Company not acknowledged as debts is amounting to Rs. 22.67 for March 31, 2025 (March 31, 2024:
Rs. 22.67).

Corporate guarantee of Rs. 195 (March 31, 2024: 195) has been extended during the previous year to wholly owned
subsidiary(GeePeeAerospace&DefensePrivateLimited)foravailingloanfromthebanktomeettheworkingcapitalrequirements.

33. Significant accounting judgements, estimates and assumptions

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires
management to make judgements, estimates and assumptions that affect the reported balances of revenues, expenses,
assets and liabilities and the acCompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods. There are no significant areas involving a high degree of judgement or complexity.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
period, are described below. The Company based its assumptions and estimates on parameters available when the financial
statements were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances arising that are beyond the control of the Company.
Such changes are reflected in the assumptions when they occur.

i. Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments
in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to
the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to
change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management
considers the interest rates of government bonds.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval
in response to demographic changes. Rate of increase in compensation are based on expected future inflation. Further
details about gratuity obligations are given in note 30.

ii. Depreciation of property, plant and equipment and amortization of Intangible assets

Depreciation of property, plant and equipment and amortization of intangible assets is calculated on a straight-line basis
using the rates arrived at based on the useful lives and residual values as estimated by the management. The management
believes that depreciation and amortization rates currently used fairly reflect its estimate of the useful lives and residual
values of property, plant and equipment and intangible assets.

34. Financial risk management objectives and policies

The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose
of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade
receivables, other financial assets, cash and cash equivalent and balance at bank other than cash and cash equivalent.
The Company is exposed to credit risk, market risk and liquidity risk. The Company has a risk management policy and its
management is supported by a risk management committee that advices on risk and appropriate financial risk governance
framework for the Company. The risk management committee provides assurance to the Company's management that the
risk activities are governed by appropriate policies and procedures and that risks are identified, measured and managed in
accordance with the Company's policies and risk objectives. The Board of Directors reviews and agrees policies for
managing each of these risks.

A. Credit risk

Credit risk is the risk that counterparty will not meet its obligations 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),
cash and cash equivalent, balance at bank other than cash and cash equivalent and other financial assets. The Company
deals with parties which has good credit rating /worthiness given by external rating agencies or based on Company's internal
assessment. The major customers are usually the Government parties and export customers with high credit worthiness.

Exposure to credit risk

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer and the
carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was (i) Rs.
2,156.03 (March 31, 2024: Rs. 1,545.16) being the total of the carrying amount of balances with trade receivables (including
retentionmoney) (ii) cash andcash equivalent (excluding cashonhand), balance atbankother thancashand cashequivalentand
interestaccruedof Rs.180.52 (March 31, 2024: Rs. 514.77) and (iii) otherfinancialassets of Rs. 49.37(March31, 2024: Rs. 27.69).

The measurement of impaired credit for carrying amount of the above financial assets is ascertained using the expected credit
loss model (ECL) approach. Credit risk is managed through continuously monitoring the creditworthiness of customers. The
Company is considerate of the fact the majority of the collection is receivable from export customers with high credit worthiness
or the government companies where there are no significant risk of bad debts. The customers of the Company have a defined
period for payment of receivables, hence the Company evaluates the concentration of risk with respect to trade receivables
as low. The total amount receivable from top 2 customers is Rs. 1,590.33 for March 31, 2025 (March 31, 2024: Rs. 1,008.67).

The cash and cash equivalent (excluding cash on hand), balance at bank other than cash and cash equivalent
and interest accrued of Rs. 180.52 (March 31, 2024: Rs. 514.77) are held with banks having good credit rating.

The cash credit facility amounting to Rs. 502.30 (March 31, 2024: Rs. 477.58), repayable on demand, has been disclosed as
within 1 year for the purpose of disclosure of liquidity risk of the Company.

C. 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 risk comprises two types of risk: interest rate risk and foreign currency risk. The sensitivity analysis
has been included in the below disclosures.

Foreign currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss.
The risks primarily relate to fluctuations in US Dollar (USD) as against the functional currency of the Company. The
Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

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 is exposed to interest rate risk because certain funds are borrowed at
floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate.
The borrowings of the Company are principally denominated in rupees and US dollars with a mix of fixed and floating rates
of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate and LIBOR
rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

If interest rates had been 100 basis points (1%) higher / lower and all other variables were held con¬
stant, the Company's profit before tax for the year end ended March 31, 2025 would decrease / in¬
crease by Rs. 17.72 (March 31, 2024: Rs. 19.02).

35. Capital management

For the purpose of the Company's capital management, capital includes issued equity capital and other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company's capital management is to
maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The Company's policy is to keep the gearing ratio to an
acceptable level. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash
equivalents excluding balance with monitoring agency account.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have
been no breaches in the financial covenants of any interest-bearing borrowing in the current year. The Group has
established a supplier finance arrangement to manage its working capital.

37. Fair values

There are no significant financial assets and liabilities measured at fair value through profit or loss except for Investment
in units of mutual fund [refer note 4(c)] which has been valued using Level 1 valuation method as described in note 2.2(i).

The fair value of the financial assets and liabilities measured at amortised cost approximates their carrying amounts as at
the balance sheet date. (refer breakup of financial assets carried at fair value through profit or loss and breakup of financial
assets and financial liabilities carried at amortised cost).

38. Segment Reporting

The Managing director / chief executive officer of the Company takes decision in respect of allocation of resources and
assesses the performance basis the report / information provided by functional heads and are thus considered to be Chief
Operating Decision Maker.

Based on the Company's business model, manufacturing high precision and heavy equipment, components, machines have
been considered as a single business segment for the purpose of making decision on allocation of resources and assessing
its performance. Accordingly, there are no separate reportable segments in accordance with the requirements of Ind AS
108 'Operating segment' and hence, there are no additional disclosures to be provided other than those already provided
in the financial statements. The information relating to revenue from external customers and location of non-current assets
of its single reportable segment has been disclosed as below.

The geographic information analyses the Company's revenues and non-current assets by the country of domicile and other
countries. In presenting geographic information, segment revenue has been based on the location of the customer and seg¬
ment assets are based on geographical location of the assets.

40. Other statutory information

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

ii) The title deeds of all the immovable properties disclosed in the standalone financial statements are held in the name of
the Company.

iii) There are no charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv) The Company does not have any transactions with the companies struck off.

v) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

vi) During the current year, the borrowed funds were utilised for the purpose which they were obtained and as per the
terms specified in the sanction letter.

vii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(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)

viii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the 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).

ix) The Company has borrowings from banks on the basis of security of current assets and the quarterly returns and state¬
ments of current assets filed by the Company with banks are in agreement with the books of accounts.

x) The Company has not been declared wilful defaulter by any bank or financial institution or government or any govern¬
ment authority.

xi) The Company has 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.

41. The Company has used accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the
software. Further, there are no instance of audit trail feature being tampered with. Additionally, the audit trail of prior
year has been preserved as per the statutory requirements for record retention.

42. Subsequent event

No significant subsequent events have been observed till May 22, 2025 which may require any additional disclosure or an
adjustment to the standalone financial statements.

As per our report of even date

For S.R. BATLIBOI & ASSOCIATES LLP For and on behalf of the Board of Directors of

Chartered accountants MTAR Technologies Limited

ICAI Firm registration number: 101049W/E300004

Parvat Srinivas Reddy Subbu Venkata Rama Behara

Managing Director Chairman

DIN: 00359139 DIN: 00289721

per Atin Bhargava

Partner Gunneswara Rao Pusarla Naina Singh

Membership no: 504777 Chief Financial Officer Company Secretary

Membership no: ACS-68201

Hyderabad Hyderabad

Date: May 22, 2025 Date: May 22, 2025