CIN NO: L27300MH1983PLC029360 Regd. Office: 407, Kalbadevi Road, Daulat Bhawan, 3" Floor, Mumbai — 400 002 Tel.: 2200 0630, Email : nilkanthengineeringitd @ gmail.com Website : www.nilkanthengineering.co.in

September 1, 2023

BSE Limited PJ. Tower, Dalal Street, Fort, Mumbai 400 001

Ref: Scrip Code ~ 512004 Sub: Annual Report for the Financial year 2022-23 oh

Dear Sir,

Pursuant to the requirements of Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, please find enclosed herewith the Annual Report of the Company for the financial year 2022-23 ("Annual Report) along with the Notice of 35° Annual General Meeting ("Notice") of the Company.

The 40! Annual General Meeting of the Company will be held on Wednesday, 27° September, 2023 at 04.30 pm at the Registered Office of the Company at 407, Kalbadevi Road, 3'° Floor, Daulat Bhavan, Mumbai 400002

Further the aforesaid Annual Report along with the Notice has also been uploaded on the website of the Company at www.nilkanthengineering.co.in

Kindly take the same on record and oblige.

Thanking you.

Yours faithfully, For NILKANTH ENGINEERING LIMITED

C.- — X wR \

Director (DIN-00299416)

NILKANTH ENGINEERING LIMITED 40th Annual Report 2022-23

Board of Directors DIN

Shri. Nitin Agrawal Managing Director	08186528
Shri. G. M. Loyalka	00299416
Shri. Manish Newar	00469539
Smt. Rajshree Tapuriah	01655859

Company Secretary

Ms. Shruti Didwani Company Secretary & Compliance Officer

Auditor

M/s PKJ & Co. Office No. 002, Gulmohar Complex, Opp. Anupam Cinema, Station Road, Goregaon (East), Mumbai 400 063

Registered Office :

407, Kalbadevi Road, 3 rd Floor, Daulat Bhavan Mumbai 400 002 CIN – L27300MH1983PLC029360 Website – www.nilkanthengineering.co.in Email id – [email protected]

Registrar & Share Transfer Agent

Adroit Corporate Services Private Limited 19, Jaferbhoy Industrial Estate, 1st Floor Makwana Road, Marol Naka, Andheri (East), Mumbai 400 059

CIN NO: L27300MH1983PLC029360

Regd. Office: 407, Kalbadevi Road, Daulat Bhawan, 3rd Floor, Mumbai — 400 002,

Email : [email protected]

Website : www.nilkanthengineering.co.in

NOTICE

NOTICE is hereby given that the Fortieth Annual General Meeting (AGM) of the members of Nilkanth Engineering Limited (the Company) will be held on Wednesday, the 27th day of September, 2023 at 4.30 pm at the registered office of the Company at 407, Kalbadevi Road, 3rd Floor, Daulat Bhavan, Mumbai 400 002 to transact the following business :

Ordinary Business:

1. To consider and adopt the Audited Financial Statements including audited consolidated financial statements of the Company for the financial year ended March 31, 2023, together with the reports of the Board of Directors and the Auditors thereon.
1. To re-appoint a director in place of Mr. Nitin Agrawal (DIN-08186528) who retires by rotation and, being eligible, offers himself for re-appointment.

Special Business :

To consider and if thought fit to pass, with or without modification, the following resolution as Ordinary Resolution

RESOLVED THAT pursuant to provision of sections 196, 197, 198 and 203 and any other applicable provisions of the Companies Act, 2013 ("the Act") read with Companies (Appointment and Remuneration of Managerial Personnel) Rules,2014 and Schedule V to the Act (including any statutory modification(s), amendment(s), clarification(s) or re-enactment(s) or substitution(s) thereof for the time being in force), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any modification thereof or supplements therein ("SEBI Listing Regulations') subject to Articles of Association of the Company and subject to approval of Central Government, if any and such other approvals, permissions and sanctions, as may be required and subject to such conditions and modifications as may be imposed or prescribed by any of the authorities while grating such approvals, permissions and sanctions and as recommended by Nomination and Remuneration Committee and approved by the Board of Directors of the Company, the consent of the Members of the Company be and is hereby accorded for re-appointment of Mr. Nitin Agrawal (DIN-08186528) as Managing Director of the Company, for a period of 5 (Five) years with effect from 1 st August, 2023 on payment of Remuneration of Rs. 12.42 Lakh with yearly increment below 20% each year, as may be decided by the Board of Director

RESOLVED FURTHER THAT pursuant to the provisions of Section 197 of the Act read with Schedule V of the Act, where in any financial year during the currency of tenure of Managing Director, the Company has no profits or if its profits are inadequate, the Company shall pay the above remuneration to the Managing Director.

FURTHER RESOLVED THAT the Board be and is hereby authorized to vary, amend, modify or revise the terms of Remuneration payable from time to time, to the extent the Board may deem appropriate provided that such variation or increase, as the case may be, is within the overall limits specified under the relevant provisions of the Act.

RESOLVED FURTHER THAT the Board be and is hereby authorized to do all such acts, matters, deeds and things as may be necessary to give effect to the above resolution including filing of necessary forms with the Registrar of Companies, Mumbai in connection with such appointment and payment of remuneration and to seek approvals and settle any questions, difficulties or doubts that may arise in this regards without further referring to the Members of the Company.

By order of the Board of Directors of Directors of Nilkanth Engineering Limited

G. M. Loyalka Director (DIN-00299416)

Place: Mumbai Date: 30th August, 2023

NOTES:

Pursuant to the provisions of the Act, a member entitled to attend and vote at the AGM is entitled to appoint proxy to attend and vote on his / her behalf and the proxy need not be the members of the Company.

A person can act as a proxy on behalf of members not exceeding fifty and holding in the aggregate not more than ten percent of the total share capital of the Company carrying voting rights. A Member holding more than ten percent of the total share capital of the Company carrying voting rights may appoint a single person as proxy and such person shall not act as a proxy for any other person or shareholder.

1. The Annual Report including Notice of AGM has been uploaded on the website of the Company www.nilkanthengineering.co.in and the same is attached to the email sent to you for the AGM. The same can be accessed and download from the website of Stock Exchange – The BSE Limited at www.bseindia.com and from the website of National Securities Depository Limited at [email protected].
1. The proxy form duly completed and signed should be deposited at the Registered office of the Company not less than 48 hours before the time fixed for the Meeting.
1. The Register of Members of the Company will remain closed from Thursday, 21st September, 2023 to Wednesday, 27th September, 2023, (both days inclusive) for the purpose of AGM.

5. EVOTING:

i) Pursuant to Section 108 of the Companies Act, 2013 and in compliance with the provisions of Rule 20 of the Companies (Management and Administration) Rules, 2014 and Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is pleased to announce that all the business mentioned in the notice may be transacted through electronic voting system and the Company is providing facility by electronic means.
ii) For this purpose, the Company has entered into an agreement with National Securities Depository Limited (NSDL) for facilitating e-voting to enable the Shareholders of the Company to cast their votes electronically.
iii) The Board of Directors of the Company has appointed Mr. Girish Murarka, Proprietor of GIRISH MURARKA & CO. practicing Company Secretaries, Mumbai to conduct and scrutinize the e-voting process in a fair and transparent manner.
1. The instruction for shareholder for remote e-voting are as under The way to vote electronically on NSDL e-voting system consist of Two Steps which are mentioned below:

Step 1 : Login to NSDL e-voting system at http://www.evoting.nsdl.com

a) Visit the e-voting website of NSDL. Open web browser by typing the following URL : http://www.evoting.nsdl.com either on your Personal Computer or on a mobile
b) Once the home page of e-voting system is launched, click on the icon "Login" which is available under 'Shareholder section
c) A new screen will be open. You will have to enter your User ID, your Password and verification code as shown on the screen

Step 2 : Casting your vote electronally

	d) User ID details are given below:

Manner of holding shares ie Demat (NDSL or CDSL) Or Physical	Your User ID is :
a)For Members holds the share in Demate Account with NDSL	8 character DP ID followed by 8 digit client ID for example your DP ID is IN300 and your Client ID is 12 then your User ID is IN30012**
b) For Members holds the share in Demate Account with CDSL	16 digit Beneficiary ID. For example if your Beneficiary ID is 12* then your User ID is 12

e) Your Password details are given below:
i) If you are already registered for e-voting, then you can use your existing password to login and cast your vote
ii) If you are using NSDL e-voting system for the first time, your will need to retrieve the 'initial password', your need enter the initial password and the system will force you to change your password
iii) How to retrieve initial password?
a) If your email id is registered in your Demat Account or with the Company, the initial password is communication to you on your email id. Trace the email sent to you from NSDL from your email box. Open the email and open the attachment which is in PDF. Open the pdf file. The password to open the pdf file is your 8 digit Client ID for NSDL Account, last 8 digit of your Client ID for CDSL Account
b) If your email id is not registered, your initial password will be communicated to you on your postal address
f) If you are unable to retrieve or have not received your initial password or have forgotten the password - Click on 'Forgot user detail / password' (if you are holding the share in demat account with NSDL / CDSL) option available on www.evoting.nsdl.com .
g) After entering your password, Tick on Agree to " Terms and conditions" by selecting on the check box.
h) Now you have to click on "Login" button
i) After you click on Login button, home page of e-voting will open

Step 2: Cast your vote electronically on NSDL e-voting system

a) After successful login at Step 1, you will be able to see Home Page of e-voting. Then click on Active voting cycle.
b) After click on Active voting cycle, you will be able to see all the Companies "EVEN" in which you are holding shares and whose voting cycle is in active status
c) Select "EVEN" of the Company for which you wish to caste your vote
d) Now you are ready for e-voting as the voting page opens
e) Cast your vote by selecting appropriate option ie. Assent or Dissent, verify / modify Number of shares for which you cast your vote and click on submit and confirm when prompted
f) After confirmation, Vote caste successfully will be displayed
g) You can also take the print out of your votes caste by you, by clicking on the print out option on the confirmation page
h) Once you confirm your vote on the resolution

7. GENERAL INFORMATION FOR THE SHAREHOLDERS

a) The Voting rights of the members shall be in proportion to their shares fully paid equity capital as on the cut off date September 23, 2023
b) The e-voting period commences on Sunday, 24th September, 2023 commences at 9.00 am and ends on Tuesday, 26 September, 2023 at 5.00 pm. At the end of the voting period, the portal where votes are cast shall forthwith be blocked. The cut off date for Remote e-voting is 23rd September, 2023
c) The Board of Directors has appointed M/s Girish Murarka & Co., Practicing Company Secretary, having Certificate of Practice No. 4576 as Scrutinizer to scrutinize the remote e-voting (including the Ballot Form received from the Members who do not have access to e-voting process) in fair and transparent manner.
d) The Scrutinizer shall, immediately after the conclusion of voting at 39th AGM, count the vote cast at the meeting and thereafter, unblock the vote cast through e-voting in presence of at least two witness not in the employment of the Company and submit, not later than three days of the conclusion of the meeting, a consolidated Scrutinizer's Report of the total vote caste favour or against the resolution to the Chairman or any person authorized by him in writing.
e) The Chairman or the Authorized Representative will declare the result of the voting (E-voting and voting through Ballot Paper). The Said Results and Scrutinizer's Report will be placed on the website of the Company
Name, designation, address, email id and phone no. of the person responsible to address the grievances connected with facility for voting by electronic means. Name:- Ms. Shruti Didwania Designation:- Company Secretary and Compliance Officer Address: 407, Kalbadevi Road, 3rd Floor, Daulat Bhavan, Mumbai 400 002 Email : [email protected]

EXPLANATORY STATEMENT UNDER SECTION 102 OF THE COMPANIES ACT, 2013 ANNEXURE TO THE NOTICE

Item No. 3

Shri Nitin Agrawal (DIN-08186528) was re-appointed as the Managing Director of the Company for the period of three year with effect from 1st August, 2020 after obtaining the due approval of the members of the Company in the 37th Annual General Meeting held on 30.09.2020. Accordingly, the present terms of Mr. Nitin Agrawal come to an end on 31st July, 2023.

The Board, in its meeting held on 30th August, 2023 on the recommendation of Nomination and Remuneration Committee, proposed the re-appointment of Shri Nitin Agrawal (DIN-08186528) as Managing Director of the Company for further period of Five-year up to 31st July, 2028 at the ensuing General Meeting.

Shri Nitin Agrawal (DIN-08186528) is not disqualified from being re-appointed as Director or Managing Director in terms of section 164 of the Companies Act, 2013. He has communicated his willingness and has given his consent to act as Managing Director of the Company. He satisfies all the conditions as set out in section 196(3) of the said Act and Part-I of schedule V thereof and hence eligible for re-appointment.

Shri Nitin Agrawal and his relatives may be deemed to be interest in the resolution at item no. 3 of the Notice. Save as aforesaid, None of the Directors of the Company, Key Managerial Personnel of the Company and their relative is concerned or interested, financially or otherwise, in any way, in the said resolution set out at item no. 3 of the notice.

By order of the Board of Directors of Directors of Nilkanth Engineering Limited

G. M. Loyalka Director (DIN-00299416)

Place: Mumbai Date: 30th August, 2023 Information on Director being re-appointed as required under regulation 36 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and relevant provision of Secretarial Standard on General Meeting (SS-2)

Name of Director	Nitin Agarwal
DIN	08186528
Date of Birth	23.12.1984
Relationship with other	Nil
Directors inter-se
Date of Appointment	01.08.2018
Expert in Specialized Area	Marketing
Qualification	MBA (HR and Mktg)
No. of Equity Shares held in	Nil
the Company
Directorship in other Public	Nil
Limited Company
Chairman / Membership of the	Nil
Committee of other Company

UDIN :

INDEPENDENT AUDITORS' REPORT

TO MEMBERS OF NILKANTH ENGINEERING LIMITED

Report on the Audit of Standalone Financial Statements

Opinion

We have audited the financial statements of NILKANTH ENGINEERING LIMITED (hereinafter referred to as "the Company"), which comprise the Standalone Balance Sheet as at March 31, 2023, and the Standalone Statement of Profit and Loss including Other Comprehensive Income, the Standalone Cash Flow Statement and the Standalone Statement of Changes in Equity for the year then ended, and notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information (collectively referred to as 'Standalone Financial Statements').

In our opinion and to the best of our information and according to the explanations given to us, the Financial Statements give the information required by the Companies Act, 2013 (hereinafter referred to as "the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, and amended and other accounting principles generally accepted in India, of the state of affairs (financial position) of the Company as at March 31, 2023, and its loss including other comprehensive loss, the changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key Audit Matters are those matters that in our professional judgment were of most significance in our audit of the Standalone Financial Statements for the year ended March 31, 2023. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the Key Audit Matters to be communicated in our report:

(Cont..2)

	2 *	*


Sr. No.	Key Audit Matter	Our Response
1	Defined benefit obligation The valuation the of benefit schemes in the Company is of assumptions determined reference to with various actuarial discount including future for rate, salary increases, rate of inflation, and mortality rates and attrition rates. senior Due to the size of these schemes, controls changes small in assumptions have can a defined these estimated impact the on benefit obligation.	We have examined the key controls over the retirement process involving member data, formulation and reporting financial the process provision arriving the for at in assumptions retirement benefits. We tested the controls assumptions determining actuarial the assumptions approval of those the by management. We found these key implemented were designed, and these operated therefore and effectively, material determined that we could place reliance on purposes of our key controls for the audit.

Other Information

The Company's Board of Directors is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and our auditor's report thereon.

Our opinion on the Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report the fact. We have nothing to report in this regard.

(Cont..3)

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to preparation of these Financial Statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with provisions of the Act for safeguarding assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

* Identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

* Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
¢« Evaluate appropriateness of the accounting policies used and reasonableness of accounting estimates and related disclosures made by management.
* Conclude on appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
¢- Evaluate the overall presentation, structure and content of the financial statements including disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

* 4 *

Other Matters

The comparative financial information of the Company for the year ended March 31, 2022 prepared in accordance with Ind AS included in these Standalone Financial Statements have been audited by the predecessor auditor who had audited the financial statements for the relevant period. The report of the predecessor auditor on the comparative financial information dated May 26, 2022 expressed an unqualified opinion.

Our report on the Standalone Financial Results is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued by the Central Government in terms of Section 143 (11) of the Act, we give in "Annexure A" - a statement on the matters specified in paragraphs 3 and 4 of the Order. 1.
As required by section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company, so far as appears from our examination of those books;
Cc) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Statement of Changes in Equity and the Cash Flow Statement dealt with by this report are in agreement with the books of account;
qd) In our opinion the Financial Statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors as on March 31, 2023, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023, from being appointed as a director in terms of Section 164 (2) of the Act;
f) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanations given to us, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by provisions of Section 197 read with Schedule V of the Act;

9g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure B"
h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2021, in our opinion and to the best of our information and according to the explanations given to us, we report that:

* 6 *

i) The Company does not have any pending litigations which would impact its financial position other than those mentioned in the notes to the accounts;
ii) The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses;
iii) There were no amounts which were required to be transferred to the Investors Education and Protection Fund by the Company;
iv) (a) As per the information and explanation given to us by the management, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person or entity, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 on behalf of the Ultimate Beneficiaries;
(b) As per the information and explanation given to us by the management, no funds have been received by the company from any person or entity, including foreign entities (Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
(c) On the basis of above representations, nothing has come to our notice that has caused us to believe that the above representations contained any material mis-statement.
v) The Company has not declared or paid any dividend during the year.
vi)Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.

For and on behalf of PKJ&CO. Chartered Accountants Firm Regn No. 124115W

S. D. /- (Padam Jain) Dated : 25 May 2023 Membership No. 071026

Place : Mumbai Partner

NILKANTH ENGINEERING LIMITED ANNEXURE-A TO INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in paragraph 1 under the 'Report on Other Legal and Regulatory Requirements' our report to the members of NILKANTH ENGINEERING LIMITED, ('the Company') for the year ended on March 31, 2023. We report that:

i. In respect of its Property, Plant & Equipment:
(a) (A) The Company is maintaining proper records showing full particulars including quantitative details and situation of Property, Plant & Equipment;
- (B) The Company is maintaining proper records showing full particulars of intangible assets;
(b) The Company has a regular programme of physical verification of fixed assets which is, in our opinion, reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, certain fixed assets have been physically verified by the management during the year and no material discrepancies have been noticed on such verification;
(c) As per the information and explanation given to us by the management, the title deeds of the immovable properties as disclosed in Property, Plant & Equipments (Note No. 3 to the Standalone Financial Statements) are held in the name of the Company;
(d) As per the information and explanation given to us by the management, the Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the year and hence provisions of Clause 3(i)(d) of the Order are not applicable to the Company;
(e) As per the information and explanation given to us by the management, no proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder and hence provisions of Clause 3(i)(e) of the Order are not applicable to the Company.
ii. In respect of its inventories:
(a) As per the information and explanation given to us by the management, the Company does not hold any inventories and hence provisions of Clause 3(ii)(a) of the Order are not applicable to the Company;
(b) As per the information and explanation given to us by the management, the Company has not availed any working capital facility from any banks or financial institutions on the basis of security of current assets and hence provisions of Clause 3(ii)(b) of the Order are not applicable to the Company.
iii. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to any company, firm, Limited Liability Partnership or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of Clause 3 (iii) of the Order are not applicable to the Company.

(Cont...2)

According to the information and explanations given to us, the Company has not given any loan or guarantee or provided any security nor made any investments as specified in Section 185 and 186 of the Act. Clause 3(iv) of the Order is, therefore, not applicable to the Company for the year under audit.
In our opinion and according to the information and explanations given to us, the Company has not accepted deposits or amounts which are deemed to be deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed thereunder to the extent notified.
vi. According to the information and explanations given to us, the Company does not require maintaining cost records as prescribed by the Central Government under sub-section (1) of Section 148 of the Act.
Vii. (a) According to the records of the Company, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees' state insurance, income-tax, GST, sales tax, wealth tax, duty of customs, duty of excise, value added tax or cess and other statutory dues applicable to it;

Further, according to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees' state insurance, income-tax, GST, sales tax, wealth tax, duty of customs, duty of excise, value added tax or cess and other statutory dues were outstanding, as at March 31, 2023, for a period of more than six months from the date they became payable;

(b) According to the information and explanations given to us, there are no dues of income tax, GST, sales tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any dispute.
viii. According to the information and explanations given to us, there are no transactions that are not recorded in the books of accounts and have been surrendered of disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
(a) Based on our audit procedures and according to the information and explanations given to us by the management, we are of the opinion that the Company has not defaulted in repayment of dues to financial institutions and bank;
- (b) According to the information and explanations given to us, the company has not been declared wilful defaulter by any bank or financial institution or government or any government authority;
- (c) According to the information and explanations given to us, the Company has not availed any term loan facility and hence provisions of Clause 3{ix)(c) of the aforesaid Order are not applicable to the Company;

(Cont...3)

(d) According to the information and explanations given to us, and the procedures performed by us, and on an overall examination of the financial statements of the Company, we report that no funds raised on short-term basis have been used for long-term purposes by the company;
(e) The Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures;
(f) The Company has not raised any loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies,
(a) Based on our audit procedures and according to the information and explanations given to us by the management, the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) and hence provisions of Clause 3(x)(a) of the Order are not applicable to the Company;
(b) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under audit and hence provisions of Clause 3(x)(b) of the Order are not applicable to the Company
Xi. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company noticed or reported during the year, nor have we been informed of any such case by the management. Clause 3(xi)(a) to (c) of the Order is, therefore, not applicable to the Company for the year under audit.
xii. The Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to the Company and hence provisions of Clause 3(xii) (a) to (c) of the Order are not applicable to the Company.
xiii. The Company has entered into the transaction with the related parties in compliance with the provisions of the Section 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Ind AS 24, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
xiv. (a) In our opinion and based on our examination, the company has an internal audit system commensurate with the size and nature of its business;
(b) We have considered the internal audit reports of the company issued till date, for the year under audit.
XV. The Company has not entered into any non-cash transactions with its directors or the persons connected with him and hence provisions of Clause 3(xv) of the Order are not applicable to the Company.

(Cont...4)

Xvi. (a) The Company is not required to be registered Section 45-IA of the Reserve Bank of India Act, 1934 and hence provisions of Clause 3(xvi)(a) of the Order are not applicable to the Company;
(b) The company has not conducted any Non-Banking Financial or Housing Finance activities which requires the Company to obtain Certificate of Registration (CoR) from the Reserve Bank of India as per the Reserve Bank of India Act 1934 and hence provisions of Clause 3(xvi)(b) of the Order are not applicable to the Company;
(c) The company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India and hence provisions of Clause 3(xvi)(b) of the Order are not applicable to the Company;
(d) The Group does not have any CIC as part of the Group, and hence provisions of Clause 3(xvi)(d) of the Order are not applicable to the Company.
XVii. According to the information and explanations given to us, the company has incurred cash losses during the year under audit amounting to Rs.11.38 Lakhs. Further, it has also incurred cash loss in the immediately preceding financial year amounting to Rs.10.47 Lakhs.
xviii. There has been no resignation of the statutory auditors during the year resulting in any casual vacancies, and hence provisions of Clause 3(xviii) of the Order are not applicable to the Company.
xix. According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the company as and when they fall due.
XX, According to the information and explanations given to us, the Company need not spend any amount as required in the Section 135 of the said Act. Accordingly, provisions of Clause 3(xx) (a) and (b) of the Order are not applicable to the Company.

Xxi. According to the information and explanations given to us, there were no qualifications or adverse remarks by the respective auditors in the Companies (Auditor's Report) Order (CARO) reports of the companies included in the consolidated financial statements.

For and on behalf of PKJ&CO. Chartered Accountants Firm Regn No. 124115W

S. D. /- (Padam Jain) Dated : 25 May 2023 Membership No. 071026

Place : Mumbai Partner

* 5 *

NILKANTH ENGINEERING LIMITED ANNEXURE-B TO INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in paragraph 2(g) under the 'Report on Other Legal and Regulatory Requirements' our report to the members of NILKANTH ENGINEERING LIMITED, (the Company') for the year ended on March 31, 2023.

Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section 143 of the Act

Opinion

We have audited internal financial controls over financial reporting of NILKANTH ENGINEERING LIMITED ("the Company") as of March 31, 2023 in conjunction with our audit of the Standalone Financial Statements of the Company for the year then ended on that date.

In our opinion, the Company has, in all material aspects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2023, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

Management's Responsibility for the Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities includes design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of business, including adherence to Company's policies, the safeguarding of the assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance Note') and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and Guidance note require that we comply with ethical requirements and plan and perform audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedure to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal controls based on the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designed to provide a reasonable assurance regarding the reliability of financial reporting and preparation of Standalone Financial Statements for external purpose in accordance with generally accepted accounting principles. A Company's internal financial control over financial reporting includes those policies and procedures that:

1. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
1. Provide reasonable assurance that the transactions are recorded as necessary to permit preparation of Standalone Financial Statements in accordance with the generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of management and directors of the Company; and
1. Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Company's assets that could have a material effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial control over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

For and on behalf of PKJ&CO. Chartered Accountants Firm Regn No. 124115W

S. D. /- (Padam Jain) Dated : 25 May 2023 Membership No. 071026

Place : Mumbai Partner

Standalone Balance Sheet as at 31st March, 2023

Standalone Balance Sheet as at 31st March, 2023

Particulars	Notes	As at March 31, 2023	As at March 31, 2022
ASSETS		# in Lakhs	# in Lakhs
1, Non-Current Assets
(a) Property, plant and equipment		605.49	653.60
(b) Financial Assets
investments i}		634.88	644,78
ii) Other Financial Assets		8.67	9.83
Total Non-Current Assets		1,249.04	1,308.21
2. Current Assets
{a) Financial Assets
i) Cash and Cash Equivalents		9.68	718.81
(b) Other Current Assets	~d	0.59	0.83
(c) Current Tax Assets (Net)		23.27	23.07
Total Current Assets		33.55	42.72
Total Assets		1,282.59	4,350.92
EQUITY AND LIABILITIES
1. Equity
(a) Equity Share Capital		124.50	124.50
(b) Other equity		(349.98)	(280.33)
		(225.48)	(155.83)
2, Liabilities
Non-Current Liabilities
(a) Provisions	44	5 62	4.75
3. Current Liabilities
(a) Financial Liabilities
i) Other Financial Liabilities	12	1,500.00	4,500.00
(b) Other Current Liabilities	13	2.53	1.99
(c) Provisions	14	0.02 1,508.07	0.02 1,506.75

Total Equity and Liabilities		1,282.59	1,350.92
Summary of significant accounting policies	1&2

The accompanying notes are an integral part of the financial statements.

As per our report of even date attached PKJ & CO. Chartered Accountants Firm Regn. No. 124715W

(Padam Jain} Partner Membership No: 071026

Place : Mumbai Date. May 25, 2023

For and on behalf of the Board of Directors

D./- (G.M. Loyalka) Director DIN: 00299446

S.D. + (Nitin Agarwal) Managing Director DIN: 08186528

D. i {Shruti Didwania) Company Secretary

\$.D.-b (Anil Londhe)

Chief Financial Officer

NILKANTH ENGINEERING LIMITED CIN: L27300MH1983PLC028360 Standalone Statement of Profit and Loss for the year ended 31st March, 2023

NILKANTH ENGINEERING LIMITED CIN: L27300MH1983PLC028360 Standalone Statement of Profit and Loss for the year ended 31st March, 2023
Particulars	Notes	For the Year ended March 341, 2023 z? in Lakhs	For the Year ended March 31, 2022 % in Lakhs
Income
Other Income	15	16.55	15.59
Total Income		16.55	15.59

Expenses I.
Employee Benefit Expenses	16 17	16.22 48.10	14.74 56.55
Depreciation and Amortization Expenses Other Expenses	18	12.16	11.33
Total Expenses		76.49	82.62
Profit(Loss) BeforeTax(IIl-IV} ti.		(59.94)	(67.02)
lV. Tax Expenses
Current Tax
Deferred Tax Excess/{Short) Provision of Earlier Years		(0.04)	0.04
Net Profit After Tax Vv.		(69.90)	(67.06)
Other Comprehensive Income (OCI) VI. Other Comprehensive Income not to be reclassified
to profit and loss in subsequent periods Actuarial Gain{Loss)		0.14	0,36
Net GainkLoss) on FVTOCI Investments		(9.90) (9.76)	19.26 19.61
Totat Other Comprehensive Income		(69.65}	(47.44)
Vi. Total Comprehensive Income for the year
Vii, Basic and Diluted Earnings per share (Face value ¥ 10 each)	25	(4.81)	(5.39)
Summary of significant accounting policies The accompanying notes are an integral part of the financial statements.	1&2
As per our report of even date attached PKJ & CO. Chartered Accountants Firm Regn. No. 124115W		For and on behalf of the Board of Directors
{Padam Jain) Partner Membership No: 071026	S\$. Dt (G.M. Loyalka) Director DIN: 00299416		\$.D. 4 (Nitin Agarwal) Managing Director DIN: 08186528
Place : Mumbai Date: May 25, 2023	S. D. I- (Shruti Didwania)		S.D/ (Ani) Londhe) Chief Financial Officer

Q Company Secretary

CIN : L27300MH1983PLC029360 Standalone Cash Flow Statement for the year ended 31st March, 2023

NILKANTH ENGINEERING LIMITED
CIN : L27300MH1983PLC029360 Standalone Cash Flow Statement for the year ended 31st March, 2023

		Year Ended
Particulars		March 31, 2023	March 31, 2022
		? in Lakhs	Zin Lakhs
A. CASH FLOW FROM OPERATING ACTIVITIES:		(59.94)	(67.02)
Net profit before taxation and extraordinary items Adjustments for:
Depreciation and amortisation expense		48.10 2.53	46.55 1.99
Provision for Expenses Prepaid Expenses		0.59	0.83
(Profit)/Loss on Sale of Investments		(0.47) (9.18)	(0.57) (8.22)
Operating Profit before working capital changes Increase{Decrease) in Sundry Payables & Other Liabilities		(1.03)	(1.25)
(increase/Decrease in Trade & Other Receivables		(1.08) -	(4.36) -
{Increase)/Decrease in Inventories Gash generated from operations		{11.29}	(13.83)
Less: Direct Taxes paid		(1.69)	(1.53) (12.29)
Net Cash Flow from operating activities before extraordinary Items Adjustments for Prior Pericd Items		(9.60) -	:
Net Cash Flow from operating activities	(A}	(9.60)	(12.29)

B. CASH FLOW FROM INVESTING ACTIVITIES: Sale of Investments (net)		1547	24.57 (24.00)
Purchase of Investments	(B)	(45.00) 0.47	0.57
Net Cash from/(used) in Investing activities
C. CASH FLOW FROM FINANCING ACTIVITIES:		-	* :
Net Cash from/(used) in financing activities	{¢}	: (9.13)	(11.72)
Net Increase/(Decrease) in Cash & Cash Equivalents {AtB+C) Cash & Cash Equivalents as at beginning of period		48.81	30.53
Cash & Cash Equivalents as at end of period		9.68	18.81
4. Cash and cash equivalents included in the Statement of cash flaws comprise the following :
Gash on hand		? in Lakhs 6.01	¥ in Lakhs 0.02

4. Cash and cash equivalents included in the Statement of cash flaws comprise the following :	? in Lakhs	¥ in Lakhs
	6.01	0.02
Gash on hand	9.67	18.80
Balance in current account	9.68	48.81
Cash and cash equivalents as restated

Direct Tax paid are treated as arising from operating activity and not bifurcated in investment and financing activities.
Figures of the previous year have been re-grouped and re-classified wherever necessary to correspond with the figures of the current year.
Figures in brackets represent outflows.

As per our report of even date attached	For and on behalf of the Board of Directors
PKJ& CO.
Chartered Accountants
Firm Regn. No. 124115W

(Padam Jain) Panner Membership No: 071026	S.B- (G.M. Loyalka) Director DIN; 00299416	S\$. Dt (Nitin Agarwal) Managing Director DIN: 08186526
Place : Mumbai Date: May 25, 2023	8.D.# (Shruti Didwania) Company Secretary	S.D- (Anil Londhe) Chief Financial Officer

NILKANTH ENGINEERING LIMITED CIN: U84200MH2000PTC129356

Equity Share Capital:

NILKANTH ENGINEERING LIMITED CIN: U84200MH2000PTC129356 Standalone Statement of Change in Equity for the year ended 31st March, 2023
Equity Share Capital:
Equity shares of Rs. 10 each issued, subscribed	and fully paid up
	Number	¥ in Lakhs
At 01 April, 2021	1,245,000	124.50
issue of share capital	"	-
At 31 March, 2022	1,245,000	124.50
At 01 April, 2022	1,245,000	124.50
Issue of share capital	>	-
At 34 March, 2023	1,245,000	124.50
Other Equity
		¥ in Lakhs
		Items of OC)
		Investments

Other Equity

NILKANTH ENGINEERING LIMITED
CIN: U84200MH2000PTC129356 Standalone Statement of Change in Equity for the year ended 31st March, 2023

Equity Share Capital:
Equity shares of Rs. 10 each issued, subscribed	and fully paid up
	Number	¥ in Lakhs
At 01 April, 2021	1,245,000	124.50
issue of share capital	"	-
At 31 March, 2022	1,245,000	124.50

At 01 April, 2022 Issue of share capital	1,245,000	124.50
	>	-
At 34 March, 2023	1,245,000	124.50

Other Equity
		¥ in Lakhs
		Items of OC)
Particulars	Retained Earnings	Net Gain/(Loss) on FYTOCI	Total Equi Equity otal
		Investments
Balance as at 04 April, 2024	(263.64)	20,76	(232.88)
Profit/(Loss) for the year	(87.06)	-	(67.06)
NetGain/(Loss) on FVTOCI Investments	~	19.26	19.26
Actuarial Gain/(Loss)	"	0.36	0.36
	(320.70)	40.37	(280.33)
Transfer from Reserve Fund under RBI Act	-	-	-
Balance as at 31 March, 2022	(320.70)	40.37	(280.33)


		% in Lakhs
		Items of OCI
Particulars	Retained Earnings	Net Gain/(Loss) on FVTOCI	T otal Equity
		Investments
Balance as at 01 April, 2022	(320.70)	40.37	(280.33)
Profit/{Loss) for the year	{59.90}	-	(59.90)
NetGain(Loss} on FVTOCI Investments	-	(9.90)	(9.90)
Actuarial Gain/(Loss)	-	0.14	0.14
	(380.60)	30.62	(349.98)
Transfer from Reserve Fund under RBI Act	-	-
Balance as at 31 March, 2023	(330.60)	30.62	(349.93)

		% in Lakhs
		Items of OCI
Particulars	Retained Earnings	Net Gain/(Loss) on FVTOCI Investments	T otal Equity
Balance as at 01 April, 2022	(320.70)	40.37	(280.33)
Profit/{Loss) for the year	{59.90}	-	(59.90)
NetGain(Loss} on FVTOCI Investments	-	(9.90)	(9.90)
Actuarial Gain/(Loss)	-	0.14	0.14
	(380.60)	30.62	(349.98)
Transfer from Reserve Fund under RBI Act	-	-	-
Balance as at 31 March, 2023	(330.60)	30.62	(349.93)

As per our report of even date attached For and on behalf of the Board of Directors PKJ & CO. Chartered Accountants Firm Regn. No. 124175W

{Padam Jain} (G.M. Loyalka) (Nitin Agarwal) Partner Director Managing Director Membership No: 071026

Place : Mumbai Date: May 25, 2023

DIN: 00299416

0 §.D. (SHRUTI DIDWANIA) Company Secretary

S. D. /- S.D./- BIN:08186528

\$.D./- (Anil Londhe) Chief Financial Officer

NILKANTH ENGINEERING LIMITED Notes to the Standalone Financial Statements (Continued) fer the year ended 31ist March, 2023

3. Property, Plant & Equipments

Particulars		Gross Block			Depreciation and Amortisation			Net Block
	As at April 01, Actor	Additions Deductions	As at March! 31, 2023)	As at April $\frac{01}{12022}$	For the Year	Deductions	As at March 31, 2023,	As at March! 31, 2023	As at Marci 31,2022
Buildings	780.25		780.26	2ts	27.56		240.37	339.90	567.46
Plant & Machmery	17.0E		LV DE	ŀ.	S		23.33	7.37	0.9
Furniture & Fittings	438.92		438.82	ă	18.86		384.71	54.11	72.96
Computers	1.82		281		90.06		1.72	0.16	0.16
Office Equipments	81.27		81.27		o S		$\frac{77.25}{25}$	4.01	4.01
Total	1,332.89		1,332.89	62'649	48.10		$\frac{227.40}{2}$	605.49	09.53.60
Previous Year	1.332.89		1, 332.89	622.74	PS PS		629.29	09'E59

Zin

Lakhs

Notes to the Standalone Financial Statements (Continued)

NILKANTH ENGINEERING LIMITED Notes to the Standalone Financial Statements (Continued) for the year ended 31st March, 2023
	As at March 31, 2023 ? in Lakhs	As at March 31, 2022 ?% in Lakhs
Note § : OTHER FINANCIAL ASSETS
Deposits Advances recoverable in cash or kind	5.15 3.52	4.99 4.84
Total	8.67	9.83
Note 6 : CASH AND CASH EQUIVALENTS
Cash in hand	0.01	0.02
Balances with a Bank in
- Current Account	9.67	18.80
Total	9.66	18.81
Note 7 : OTHER CURRENT ASSETS
Prepaid Expenses	0.59	0.83
Totai	0.59	0.83
Note 8 : CURRENT TAX ASSETS (NET)
Advance Income Taxes (Net of Provision for taxation as on 31 March, 2024 - Rs.Nil, 34 March, 2022- Rs. 2.00 Lacs)	23.27	23.07
Total	23.27	23.07
Note 11: NON CURRENT PROVISIONS
Provision far Gratuity	5.52	4.75
Total	5.52	4.75
Note 12: OTHER FINANCIAL LIABILITIES
Security Deposit	4,500.00	4,500.00
Total	1,500.00	1,500.00
Note 13 : OTHER CURRENT LIABILITIES
Expenses Payable	2.16	1.74
Other Payable Total	0.37 2.53	0.25 1.99
Note 14: CURRENT PROVISIONS
Provision for Gratuity	0.02	0.02
Total	0.02	0.02

Notes to the Standalone Financia! Statements (Continued)

for the year ended 31st March, 2023

Note 9: SHARE CAPITAL Particulars			As at March 34, 2023 Zin Lakhs	As at March 31, 2022 ? in Lakhs
Authorised:
12,50,000 (March 34, 2022: 12,50,000) Equity Shares of 7 10 par value			125.00	125.00
			425.00	125.00
Issued, Subscribed and Fully Paid up Shares
42,45,000 (March 31, 2022: 12,45,000) Equity Shares of @ 10 par value			124.50	124,50
Total			124.50	124.50

A} Reconciliation of the number of equity shares outstanding at the beginning and at the end of the year
Equity Share		As at 34st March, 2023		As at 34st March, 2022
Description	Number	= in Lakhs	Number	Zin Lakhs
Number of Shares outstanding at the beginning of the year	1,245,000	124.50	1,245,000	124.50
Number of Shares issued during the year	-	-	-	-

Equity Share		As at 34st March, 2023		As at 34st March, 2022
Description	Number	= in Lakhs	Number	Zin Lakhs
Number of Shares outstanding at the beginning of the year Number of Shares issued during the year	1,245,000 -	124.50 -	1,245,000 -	124.50 -
Number of Shares outstanding at the end of the year	1,245,000	124.50	1,245,000	124.50

B) Termiright attached to equity shares

C) List of shareholder holding more than 5 % of the paid up Equity Share Capital

D) Shareholding of Promoters

Name of Promoter		31st March, 2023			3st March, 2022
	Number	of total shares	4 fs Change during the year	Number	% of total shares	* fe Change during the year
Sushree Trading Limited	622,000	49.96%	-	622,000	49.96%

Note : Name of Promotors are disclosed by the management and relied upon by the auditor.

Notes to the Standalone Financial Statements (Continued)

NILKANTH ENGINEERING LIMITED
Notes to the Standalone Financial Statements (Continued)
for the year ended 31st March, 2023	As at	As at
	March 31, 2023	March 31, 2022
	# in Lakhs	? in Lakhs
NOTE 10: OTHER EQUITY
Particulars
{i) Retained Earnings
Balance as per last Financial Statements	(320,70)	(253.64)
Profit/(Loss) for the year	(59.90)	(67.06)
Add: Transfer from Special Reserve	= (380.60)	: (320.70)
Total
(ii) FVTOCI Reserves
Balance as per last Financial Statements	40.37	20.76 19.26
Net Gain/(Loss) on FVTOCI Investments	(9.90)	0.36
Actuarial GainLoss)	0.14	-
Tax effect on above	- 30.62	40.37
Total	(349.98)	(280.33)

Notes:

FVTOCI Reserve : The Company has elected to recognise changes in the fair value of certain instruments in equity securities and debt instruments in Other Comprehensive Income. These changes are accumulated with the FVOCI reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are de-recognised.

NILKANTH ENGINEERING LIMITED Notes to the Standalone Financial Statements (Continued)

NILKANTH ENGINEERING LIMITED Notes to the Standalone Financial Statements (Continued) for the year ended 31st March, 2023
Particulars	For the Year ended March 31, 2023 7 in Lakhs	For the Year ended March 31, 2022 @ in Lakhs
Note 15 : OTHER INCOME
Rent Received Interest on Income Tax Refund Interest on Others Net Gain on Fair Value Changes	15.84 0.06 0.18 0.47	14.76 0.06 0.20 0.57
Total	16.55	15.59
Note 16 : EMPLOYEE BENEFIT EXPENSES
Salaries, Bonus and Allowances Gratuity Total	15.30 0.92 16.22	13.85 0.89 14.74
Note 17 : DEPRECIATION AND AMORTIZATION EXPENSES
Depreciation on Property, Plant & Equipments	48.10	56.55
Total	48.10	56.55
Note 18 : OTHER EXPENSES
Advertisement expenses	0.31	0,32
Bank charges	0.01	0.02
Conveyance	0.28	0.07
Custodian / ISIN activation charges Demat Account Charges	0.24 0.04	0.21 0.01
Electricity Charges	0.06	0.23
Filing Fees	0.05	0.04
General Expenses	9.03	0.02
Insurance Charges	1.11	1.16
Legal and Professional Charges	1.22	0.99
Listing Fees	3.54	3.54
Property Tax	1.21	1.17
Profession Tax	0.04	-
Rent Paid	0.23	0.22
Repairs & Maintenance on Office Equipments	0.04	0.07
Repairs & Maintenance on Building	0.69	0.67
Telephone Expenses	0.08	0.11
Travelling Expenses Payment to Auditor	0.48	0.39
Audit Fees	4.75	4.50
Limited Review	0.40	0.20
Certification		0.06
Reimbursement of Tax	- 0.39	0.32
Total	12.16	11.33

19. Financial instrument and fair value measurement

This section explains the judgements and estimates made in determining the fair valves of the financial amortised cost and for which fair values are disclosed in the financial statements, Te provide an indicat classified its financial instruments into the three levels prescribed under the accounting standard. An exp! instruments that are (a) recognised and measured at fair value and (b) measured at ion about the reliability of the inputs used in determining fair value, the Company has lanation of each level follows underneath the table

NILKANTH ENGINEERING LIMITED Notes to the Standalone Financial Statements (Continued)
for the year ended 31st March, 2023
19. Financial instrument and fair value measurement
This section explains the judgements and estimates made in determining the fair valves of the financial amortised cost and for which fair values are disclosed in the financial statements, Te provide an indicat					lanation of each level follows underneath the table		instruments that are (a) recognised and measured at fair value and (b) measured at ion about the reliability of the inputs used in determining fair value, the Company has
classified its financial instruments into the three levels prescribed under the accounting standard. An exp!							Fair Value	€ in Lakhs
at Jist March, As 202 2023 s at March, Stst	At Fair value , through Profit a! Loss	Carrying Amount At Fair value rough Other a nontise Cost Comprehensive		Total	Level 1	Level 2	Level 3	Total
		Income
Financial Assets Cash and Cash Equivalents invesetments	- -	- 296.465	9.68 338.42	9.68 634.88	- 62.85	- -	\$9.68 572.03	9.68 634.88
Other Financial Assets	- 7	- 296.46	8.67 356,77	8.67 653.23	- 62.85	: -	8.67 690.38	8.67 653.23
Financial Liabilities						-	»	-
Borrowings Other Financial Liabliies		- * -	- 1,500.00 1,500.00	1,560.06 1,500.00	-	> :	1,600,00 1,500.00	1,800.00 1,500.00
	:
			Carrying Amount				Fair Value
March, 2622 As at 31st st Mare \$	At Fair value through Profit & Loss	At Fair value through Other Comprehensive Income	Amortise Cost	Total	Level	Level 2	Level 3	Total
Financial Assets					-	-	18.61	18.84
Cash and Cash Equivalents invesetments	-	306.36 -	18.81 338.42 9.83	18.81 644.78 9.83	72.75 -	~ -	§72.03 9.83	644,78 9.85
Other Financial Assets	- :	306.36	367,06	673.43	72,75	-	600.68	673.43
Financial Liabilities Borrowings	-	-	= 1,500.00	- 1,500.00	-	-	- 1,500,00	- 1,500.00

		Carrying Amount					Fair Value
March, 2622 As at 31st st Mare \$	At Fair value through Profit & Loss	At Fair value through Other Comprehensive Income	Amortise Cost	Total	Level	Level 2	Level 3	Total
Financial Assets Cash and Cash Equivalents invesetments Other Financial Assets	- - :	306.36 - 306.36	18.81 338.42 9.83 367,06	18.81 644.78 9.83 673.43	- 72.75 - 72,75	- ~ - -	18.61 §72.03 9.83 600.68	18.84 644,78 9.85 673.43
Financial Liabilities Borrowings Other Financial Liabilities	- :	- :	= 1,500.00	- 1,500.00	- -	- "	- 1,500,00	- 1,500.00

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instrument fair value of all equity instruments and bends which are traded in the stock exchanges is valued using the closing price as ^a closing NAV. s, (raded bonds and mutual funds that have quoted price. The ⁱthe reporting period. The mutual funds are valued using the

Level 2: The fair value of financiai instruments that ave not traded in an active market (for example. traded bonds, overmaximise the use of observable market data and rely as little as possible on entity-specific estimates. if ^a is included in level 2 thecounter derivatives) is determined using valuation techniques which {I significant inputs required to fair value an instrument are observable, the instrument

Level 3: ff one or more of the significant inputs is not based on observable market data, the instrument is included in level ³

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as th eir fair values, due to their short-term nature,

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Notes to the Standalone Financial Statements (Continued} for the year ended 31st March, 2023

19. Financial instrument and fair value measurement

This section explains the judgements and estimates made in determining the amortised cost and for which fair values are disclosed in the financial statements. To provide an indic classified #s financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table. fair values of the financial instruments that are (a) recognised and measured at fair value and (6) measured at ation about the reliability of the inputs used in determining fair value, the Company has

NILKANTH ENGINEERING LIMITED Notes to the Standalone Financial Statements (Continued)
for the year ended 31st March, 2023
19. Financial instrument and fair value measurement
This section explains the judgements and estimates made in determining the fak values of the financial instruments that are (a) recognised and measured at fair value and (b) measured (b) amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified as financial instruments into the three levers prescribed under the accounting standard. An explanation of each level follows underneath the table.
		Carrying Amount					Fair Value	₹ in Lakhs
As at 31st March, 2023	At Fair value through Profit & Loss	At Hair value through Other Comprehensive	Amortise Cost	Total	Level 1	Level 2	Level 3	Total
Financial Assets		income
Cash and Cash Equivalents Invesetments		296.48	9.58 338.42	9.68 634.88	$\tilde{\phantom{a}}$ 62.85	$\blacksquare$ $\blacksquare$	9.6B 572.03	9.63 634.68
Other Financial Assets		296.46	8.67 356.77	5.67 653.23	62.85	$\blacksquare$	8.67 590.38	8.67 653.23
Financial Llabilities		$\tilde{\phantom{a}}$			٠	$\overline{\phantom{0}}$
Borrowings Other Hinancial Liabilities	$\tilde{\phantom{a}}$ ٠	$\epsilon$ ×.	1,500.00 1,500.00	1,500.00 1,500.00	$\blacksquare$	$\sim$	1,500.00 1,500.00	1,500.00 1,500.00

		Carrying Amount At Fair value					Fair Value
As at 31st March, 2022	At Fair value through Profit & Loss	through Other Comprehensive income	Amortise Cost	Total	Level 1	Lovel 2	Level 3	Total
Financial Assets
Cash and Cash Equivalents invesatments.	$\overline{\phantom{a}}$ ä,	306.36	18.51 338.42	18.81 644.78	72.75		18.61 572.03	18.81 644.78
Other Financial Assets		306.36	9.83 367.06	9.83 673.43	72.75	٠	9.83 600.68	9.83 673.43
Financial Liabilities					$\hat{\phantom{a}}$
Borrowings Other Financial Liabilities		k.	1,500.00 \$ 1,500.00	1.500.00 1,500.00	$\blacksquare$ $\sim$	$\bullet$	1,500.00 1,500.00	1,500.00 1,500.00

		Carrying Amount					Fair Value
As at 31st March, 2022	At Fair value ˈthrough Profit & Loss.	At Fair value through Other Comprehensive income.	Amortise Cost	Total	Level 1	Lovel 2	Level 3	Total
Financial Assets Cash and Cash Equivalents invesetments. Other Financial Assets		306.36 306.36	18.51 338.42 9.83 367.06	18.61 644.78 9.83 673.43	72.75 72.75		18.61 572.03 9.83 600.68	18.81 644.78 9.83 673.43
Financial Liabilities Borrowings Other Financial Liabilities			1.500.00 \$ 1,500.00	1.500.00 1,500.00			1.500.00 1.500.00	500.00 1,500.00

Level 1; Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, tra: fair value of ail equity instruments and bonds which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV. ded bonds and mutual funds that have quoted price. The

Level 2; The fair value of financial instruments that are not traded in an active market (for example, traded bon maximise the use of observable market data and rely as little as possible on entity-specific estimates, If all signi is. included in tevel 2. ds, over-thecounter derivatives) is determined using valuation techniques which ficant inputs required to fair value an instrument are observable, the instrument

Level 3: H one or more of the significant inputs is not based on observable market data, the instrument is included in level ³

The carrying amounts of trade receivabies, trade payables, capital creditors and cash and cash equivalents are considered to be the same age their fair values, due to their short-term nature

For financial assets and abilities that are measured at fair value, the carrying amounts are equal to the fair values.

Notes to the Standalone Financial Statements (Continued)

for the year ended 31st March, 2023

22 Income Taxes & Deferred Taxes (Ind AS - 12)

There are no Income Tax recognised during the financial year. Further, in absence of near probability of taxable profits in future periods, the Company has not recognised Deferred Taxes.

23 Gratuity and other post employment benefit plans (Ind AS - 19)

Befined Benefit Plans

Gratuity:

The gratuity payable to employees is based on the employee's service and jast drawn salary at the time of leaving the services of the Company and is in accordance with the rules of the Company for payment of gratuity.

inherent Risk:

Statement of Assets and Liabilities for Defined Benefit Obligation : Gratuity and other post employment benefit plans (i) Change in present value of obligation PVO al the beginning of period Interest cost Current Service cost Past Service Cost - (Non-Vested Benefits) Past Service Cost - (Vested Benefits) Benefit settled Contribution by participants Business Combinations Curtailments Settlements Actuarial (gain)/ ioss on obligation PVO at the end of period	For the year ended For the year ended March 314, 2023	% in Lakhs
		March 31, 2022


	4.76	4.23
	0.34	0.29
	0.59	0.60
	- -	-
	-	~
	-	-
	-	-
	-
	-	~
	0.44	-0.36
	5.54	4.76
(i) Changes in the fair value of plan assots
Fair value of plan assets at beginning of period	-	-
Adjustment to Opening Balance	-	-
Expected return on plan assets excl. interest income	-	-
Interest Income	-	-
Contributions by Empioyer	-	-
Contributions by Employee	-	-
Benefits Paid	-	-
Fair vaiue of plan assets at end of period	-	-
(iii) Amount to be recognised in Balance Sheet	5.54	4.76
PYO at the end of period Fair value of plan assets at end of year	-	-
Funded Status	-5.54	-4.76
Net Asset/(Liability) recognised in the Balance Sheet	-5,.54	-4.76
(iv) Expenses recognised in Statement of Profit and Loss	-	-
Current Service cost	0.59	0.60
Net Interest cost	0.34	0.29
Past Service Cost - (Non-Vested Benefits)	-	-
Past Service Cost - (Vested Benefits)	-	-
Curtailment Effect	-	-
Settlement Effect	-	- -
Unrecognised Past Service Cost (Non-Vested Benefits)	- -	-
Actuarial (gain loss recognised for ihe period
Return on pian assets excl. net interest Expenses recognised in the Statement of Profit & Loss	-	-

(v) Other Comprehensive income (OCI)
Actuarial (Gain)/Loss recognized for the period	-0.14	-0.36
Asset limit effect	-
Return on Plan Assets excl. net interest	~	-
Unrecognized Actuarial (Gain\/Loss from previous period	-	"
Total Actuarial (Gain)/Loss recognized in (OCB	-O.14	~0.36
(vi} Movement in the lability recognised in Balance Sheet
Liability at the beginning of the period	4.76	4.23
Adjustment to Opening Balance	-	-
Expenses	0.92	0.89
Contribution paid	-	-
Other Camprehensive Income (OCI)	-0.14	-0.36
Net amount recognised in Balance Sheet	5.54	4.76
(vii) Expected Payout
Projected Benefits Payable in Future Years From the Date of Reporting
1st Following Year	0.02	0.02
2nd Following Year	0.02	0.02
3rd Following Year	0.03	0.02
4th Following Year	0.03	0.03
Sth Following Year	0.04	0.03
Sum of Years 6 To 10	0.28	0.22
{viii} Assumptions
Mortality	IALM (2012-14) Ut.	JALM (2012-714) Ut
Interest / Discount Rate	7.29%	7.10%
Rate of Increase in Compensation	12.00%	12.00%
Expected Average Remaining Age Employee Attrition rate	17.29 PS 0to60:0.80%	18.14 PSO to 60:0.80%

(ix) Sensitivity analysis for significant assumptions
Projected Benefit Obligation on Current Assumptions	5.54	4.76
Delta Effect of +1% Change in Rate of Discounting Delta Effect of -1% Change in Rate of Discounting	4.60	3.92
Delta Effect of +1% Change in Rate of Salary Increase	6.70	5.81
Delta Effect of -1% Change in Rate of Salary Increase	6.63 4.63	5.75 3.95

Narrations

Expected rate of return basis

Scheme is not funded EORA is not applicable

z. Description of Plan Assets and Reimbursement Conditions

100% of the Plan Asset is entrusted to 0 under their Group Gratuity Scheme. The reimbursement is subject to insurer's Surrender Policy.

3. Investment / Interest Risk

The Company is exposed to Investment / Interest risk if the return on the invested fund falls below the discount rate used to arrive at present value of the benefit.

4, Longevity Risk

The Gompany is net exposed to risk of the employees living longer as the benefit under the scheme ceases on the employee separating from the empioyer for any reason.

5. Risk of Salary Increase

The Company is exposed to higher liability if the future salaries rise more than assumption of salary escaiation.

6. Discount Rate

The discount rate has remain unchanged and hence there is no change in liability resulting in no actuarial gain or loss due to change in discount rate.

24 Related Party Disclosures (Ind AS - 24)

A. Name of related parties and related party relationship: Key Management Personnel

G. M. Loyalka	Director
Manish Newar	Director
Rajshree Tapuriah	Director
Nitin Agarwal	Managing Director
Anil Londhe	Chief Financiai Officer
Shruti Didwania	Compary Secretary

Associate Companies Jatayu Textiles & Industries Limited Osiris Online Private Limited Sushree Trading Limited

	Associate Companies
	Jatayu Textiles & Industries Limited Osiris Online Private Limited
	Sushree Trading Limited
B	Following transactions were carried out in the ordinary course of business wilh the parties referred to in (A) above:
			% in Lakhs
	Particulars	For the year ended March 34, 2023	For the year ended March 341, 2022

	Key Management Personnel
	Salaries, Bonus and Allowances i.	16.22	14.74
	Associate Company
	[Recovery of Expenses i.	1.39	1.59
	The remuneration of key management personnel are determined by the nomination and remuneration committee having regard to the performance of individuals and market trends.
C	Disclosures as per Regulation 53(f) of Securities and Exchange Board of India (Listing Obligations and Disclosure
	Requirements Regulations, 2015). Loans and advances in the nature of loans to companies in which directors are interested as under:

	Period	Balance of Loans as at	Maximum balance outstanding durin the year
	31st March, 2023 3ist March, 2022	- -	- -
	Note : Related Parties are disclosed by the management and relied upon by the auditors.
	25 Earnings Per Share (Ind AS - 33)
	Particulars	For the year ended For the year ended March 34, 2023	March 31, 2022
	Net Profit/(Loss} After Tax as per Statement of Profit and Loss (% in Lacs)	(59.90)	(67.06)
	Weighted Average Number of Equity Shares	1,245,000	1,245,000
	Basic and Diluted earnings per Share (in Rs.) Nominal Value Per Share (In Rs.)	(4.81} 10.00	(5.39) 10.00

Period	Balance of Loans as at	Maximum balance outstanding durin the year
31st March, 2023	-	-
3ist March, 2022	-	-

25 Earnings Per Share (Ind AS - 33)

Particulars	March 34, 2023	For the year ended For the year ended March 31, 2022
Net Profit/(Loss} After Tax as per Statement of Profit and Loss (% in Lacs)	(59.90)	(67.06)
Weighted Average Number of Equity Shares	1,245,000	1,245,000
Basic and Diluted earnings per Share (in Rs.)	(4.81}	(5.39)
Nominal Value Per Share (In Rs.)	10.00	10.00

Note : The Company does not have any dilutive potential equity shares. Consequently the basic and diluted earnings per share of the Company remain the same.

26 Contingent Liabilities not provided (Ind AS - 37)

a. Estimated amount of contracts remaining to be executed on capital account and not provided for 2 Nil (PY % Nil).
b. Other Contingent Liabilities not provided for % Nil (PY % Nil).

27 Segment Reporting (Ind AS - 108)

The Company operates mainly in the business segment of fund based leasing & financing activity. All other activities revolve around the main business. Further, all activities are carried out within India. As such, there are no separate reportable segments as per the provisions of IND AS 108 on 'Operating Segments'.

28 Leases (Ind AS - 116)

Ind AS 146 did not have any material impact on the financial position of the Company for the year ended March 31, 2023.

29 Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

Based on the intimation received by the Company, none of the suppliers have confirmed to be registered under "The Micro, Small and Medium Enterprises Development ((MSMED') Act, 2006". Accordingly, no disclosures relating to amounts unpaid as at the year end together with interest paid 'payable are required to be furnished.

30 Disclosure required under Section 186 (4) of the Companies Act, 2013 has been made under Note No. 4. Further, during the year, the Company has not provided any guarantee (Refer Note No. 26).
34 There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2023.
32 While determining diminution, other than temporary, in the value of he jong term quoted / unquoled investments, the strategic objective of such investments and the asset base of the investee companies have been considered. In view thereof, the decline in the market value af such investments is considered to be of a temporary nature.
33 Expenditure, Eaming and remittance in foreign currency - = Nil (March 31, 2022:% Nil).
34 The Company has not traded or invested in crypto currency or virtual currency during the current period.
35 The Company is not required to spent any amount in terms of provisions of section 135 of the Companies, Act 2013 on Corporate Social Responsibility.
36 The Company has not been declared as wilful defaulter by any bank or financial institution or other lenders.
37 The are no transactions with the Struck off Curnpanies under Section 248 or 560 of the Companies, Act 2073.
38 No proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.
39 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
40 The Company have not advariced or loaned or invested funds to any other person(s) or entity{ies), including foreign entities (intermediaries) with the understanding that the Intermediary shail:

42 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 reievant provisions of the Income Tax Act, 1961.

43 Ratios

		While determining diminution, other than temporary, in the value of he jong term quoted / unquoled investments, the strategic objective of such investments and the asset base of the investee companies have been considered. In view thereof, the decline in the market value af such investments is considered to be of a temporary nature.
	Expenditure, Eaming and remittance in foreign currency - = Nil (March 31, 2022:% Nil).
		The Company has not traded or invested in crypto currency or virtual currency during the current period.
	Corporate Social Responsibility.	The Company is not required to spent any amount in terms of provisions of section 135 of the Companies, Act 2013 on
		The Company has not been declared as wilful defaulter by any bank or financial institution or other lenders.
		The are no transactions with the Struck off Curnpanies under Section 248 or 560 of the Companies, Act 2073.
	(Prohibition) Act, 1988.	No proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions
		The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
	(intermediaries) with the understanding that the Intermediary shail:	The Company have not advariced or loaned or invested funds to any other person(s) or entity{ies), including foreign entities
a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (UKimate 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 atherwise) that the Company shall:
a. directly of indirectly lend or invest in other persons or entities identified in any manner whatsoever by of on behalf of the Funding Party (Uitimate 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
	any other reievant provisions of the Income Tax Act, 1961.	disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
Ratios
		Pursuant to the amendments to Schedule {ll vide MCA circular dated March 23, 2021, the following ratios are presented:
Ne	Particulars	Numerator / Denominator Current Assets/ Current Liabilities	riiarch'3t, oe d 9.02	Fone ee d Variance	6.03 -21.54%	Remarks Due to reduction
t	(Current ratio					in Bank Balance
ii	jDebt equity ratio	Total Debi/ Shareholders Equity	Not Applicable			- No Borrowings - No Barrewings
ii	Debt service coverage ratio	(net profit+ depreciationtinterest) / total amount of interest & principal of longterm & short term Ioan payable during the year	Not Applicable
iv	[Return on equity ratio	PAT/ Avg. Shareholder's Equity	31.42%	63.08%)		-50.19% Due to increase in negative avg. equily
v_	[inventory turnover ratio	Operating Sales/ Avg. Stock	Not Applicable Nut Applicable			- No inventory Ho Trade
	vi trade receivables turnover ratio in months (annualised)	Operaung Sues Avg. Gebers				Receivable
vii	Trade payables turnover ratio	Total Purchases/ Avg Accounts Payable	Not Applicable		-	"0 Trade ayable
vill	Net capital turnover ratio	Operating Sales/ Avg. Working Capital	Not Applicable			- No Operating Sales
ix	Net profit ratio	PAT/ Operating Sales	Not Applicable			- No Operating Sales
x	(Return on capital employed ratio	EBI A' Cap. Employed (Shareholders equity + total debt - deferred tax asset)	26.58%	43.0454]		-38.19% Due to increase in negative capital
xi	Return on invesiment ratio	Investing Income (incl. Change in Mkt Value} Investments	-1.49%		3.08%! .148.31%	employed Reduction irs inacket value of AWESUTEMS __

⁴⁴In the opinion of the Board, the Current assets, and Loans and Advances have a value on realisation in the ordinary course of the business at least equal to the amount ai which they are stated in the books of account and adequate provision has been made of founds all known liabilities.
45 Figures of the previous year have been re-grouped and re-classified wherever necessary lo correspond with the figure of the current period.

AS per our report of even date attached For and on behalf of the Board of Directors PKJ & CO, Chartered Accountants Firm Regn. No. 124115W

(Padam Jain) (G.M. Loyalka) Partner Director Membership No: 071026 DIN: 00299416

Date: May 25, 2023 Company Secretary 0

\$. D. f-

\$.D-Place | Mumbai {Shruti Didwania) §.D.- (Nitin Agarwal) Managing Director DIN: 08186528

\$.D. i (Anil Londhe) Chief Financial Officer

Notes to Standalone Financial Statements for the year ended March 31, 2023

These notes form an integral part of and should be read in conjunction with the accompanying standalone financial statements.

1. Background

Nilkanth Engineering Limited ('the Company') is domiciled in India and is incorporated under the provisions of the Companies Act, 1956 having Corporate Identity Number L27300MH1983PLC029360. Its shares are listed on Bombay Stock Exchange in India. The Company is engaged in the activity of fund-based leasing & financing activity. The principal place of business of the company is at Kalbadevi, Mumbai, Maharashtra.

2. Significant Accounting Policies

i) Overall consideration

The standalone financial statements have been prepared using the significant accounting policies and measurement basis summarised below.

ii) Statement of Compliance

These standalone financial statements have been prepared in accordance with the Indian Accounting Standards ('Ind AS') prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended).

iii) Basis of preparation

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or are vision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The standalone financial statements are presented in Indian National Rupees (INR) and all values are rounded to the nearest rupees, except when otherwise indicated.

iv) Use of Estimates

The preparation of the standalone financial statements in conformity with IndAS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the standalone financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the standalone financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the standalone financial statements.

UDIN :

INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF NILKANTH ENGINEERING LIMITED

Report on the Audit of Consolidated Financial Statements

Opinion

We have audited the accompanying Consolidated Financial Statements of NILKANTH ENGINEERING LIMITED (hereinafter referred to as the 'Parent Company") and its three Associate Companies (together referred to as "Group"), which comprise the Consolidated Balance Sheet as at March 31, 2023, and the Consolidated Statement of Profit and Loss including Other Comprehensive Income, the Consolidated Cash Flow Statement and the Consolidated Statement of Changes in Equity for the year then ended, and notes to the Consolidated Financial Statements, including a summary of significant accounting policies and other explanatory information (collectively referred to as 'Consolidated Financial Statements').

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Consolidated Financial Statements give the information required by the Companies Act, 2013 (hereinafter referred to as "the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023 and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Consolidated Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key Audit Matters are those matters that in our professional judgment were of most significance in our audit of the Consolidated Financial Statements for the year ended March 31, 2023. These matters were addressed in the context of our audit of the Consolidated Financial Statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these matters. We have determined the matters described below to be the Key Audit Matters to be communicated in our report:

|--|

	oK 2	*
Sr. No.	Key Audit Matter
1	Defined benefit obligation retirement The valuation the of benefit schemes in the Company is determined reference' with to assumptions various actuarial discount including future rate, salary increases, rate of inflation, mortality rates and attrition rates. Due to the size of these schemes, changes these small in assumptions have material can a estimated impact defined the on benefit obligation.	Our Response We have examined the key controls over the process involving member data, formulation of assumptions and reporting financial the process provision arriving the for at in We tested the controls retirement benefits. assumptions determining actuarial the for assumptions approval and of those the by management. We found these senior key implemented were designed, controls and operated therefore and effectively, determined that we could place reliance on purposes these key controls for the of our audit.

Other Information

The Parent Company's Board of Directors are responsible for the other information. The other information comprises the information included in the annual report, but does not include the Consolidated Financial Statements and our auditor's report thereon.

Our opinion on the Consolidated Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Consolidated Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Consolidated Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report the fact. We have nothing to report in this regard.

(Cont..3)

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

The Parent Company's Board of Directors is responsible for the preparation and presentation of these Consolidated Financial Statements in term of the requirements of the Companies Act, 2013 that give a true and fair view of the consolidated financial position, consolidated financial performance including Other Comprehensive Income, consolidated cash flows and consolidated Changes in Equity of the Group in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act. The respective Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Consolidated Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Consolidated Financial Statements by the Directors of the Parent Company, as aforesaid.

In preparing the Consolidated Financial Statements, the respective Board of Directors of the companies included in the Group are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group are responsible for overseeing the financial reporting process of the Group.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Consolidated Financial Statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

e Identify and assess the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion, The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

e Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Group has adequate internal financial controls system in place and the operating effectiveness of such controls.
e Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
e Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Consolidated Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained upto the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
e Evaluate the overall presentation, structure and content of the Consolidated Financial Statements, including the disclosures, and whether the Consolidated Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the Consolidated Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Consolidated Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Consolidated Financial Statements.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Consolidated Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

* 4 *

(Cont..5)

Other Matters

The Consolidated Financial Statements/information comprised in the Group's Consolidated Financial Statements are inclusive of Rs.322.96 Lacs being the Parent Company's share in the net Loss of its three associate companies for the year ended March 31, 2023, which Consolidated Financial Statements/financial information have not been audited by us. It also includes an amount of Rs.57.94 Lacs being the Parent Company's share in the Other Comprehensive Loss of its three associate companies for the year ended March 31, 2023.

These financial statements have been audited by other auditors, whose reports have been furnished to us by the management of the Parent Company and our opinion on the consolidated financial statements, in so far as it relates to the said amounts and disclosures is based solely on the report of such other auditors.

Further, the comparative financial information of the Company for the year ended March 31, 2022 prepared in accordance with Ind AS included in these Consolidated Financial Statements have been audited by the predecessor auditor who had audited the financial statements for the relevant period. The report of the predecessor auditor on the comparative financial information dated May 26, 2022 expressed an unqualified opinion.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the financial statements audited by other auditors.

Report on Other Legal and Regulatory Requirements

As required by Section 143(3) of the Act, we report, to the extent applicable, that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid Consolidated Financial Statements;
b) In our opinion, proper books of account as required by law to be maintained by the Group including relevant records relating to preparation of the aforesaid Consolidated Financial Statements, have been kept so far as it appears from our examination of those books and records of the Parent Company;
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Other Comprehensive Income, the Consolidated Cash Flow Statement and the Consolidated Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account and records maintained by the Group for the purpose of preparation of the Consolidated Financial Statements;
d) In our opinion, the aforesaid Consolidated Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors of the Group Companies as on March 31, 2023, and taken on record by the respective Board of Directors, none of the directors of the Group Companies is disqualified as on March 31, 2023, from being appointed as a director in terms of Section 164 (2) of the Act;

f) With respect to the other matters to be included in the Auditor's Report in accordance with the requirements of section 197(16) of the Act, as amended;

In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Parent Company to its directors during the year is in accordance with the provisions of Section 197 of the Act.

9) With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such controls relevant to the Parent Company's preparation of the Consolidated Financial Statements, we refer to Annexure-B of our report of even date on the Standalone Financial Statements of the Parent Company; and
1) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us, we report that:
i) There were no pending litigations which would impact the consolidated financial position of the Group.
ii) The Group did not have any material foreseeable losses on long-term contracts including derivative contracts.
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Parent Company and its Associate Companies.
iv) (a) As per the information and explanation given to us by the management, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Parent Company to or in any other person or entity, including foreign entities (Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Parent Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
- (b) As per the information and explanation given to us by the management, no funds have been received by the Parent Company from any person or entity, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

* 6 *

(Cont..7)

* 7 *

(c) On the basis of above representations, nothing has come to our notice that has caused us to believe that the above representations contained any material mis-statement.
v) The Parent Company has not declared or paid any dividend during the year.
vi)Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable with effect from April 1, 2023 to the Company and its associates, which are companies incorporated in India, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023.

For and on behalf of PKJ&CO. Chartered Accountants Firm Regn No. 124115W

Place : Mumbai Partner

S. D. /- (Padam Jain) Dated : 25 May 2023 Membership No. 071026

NILKANTH ENGINEERING LIMITED CIN: L27300MH1983PLC029360 Consolidated Balance Sheet as at 31st March, ²⁰²³

NILKANTH ENGINEERING LIMITED CIN: L27300MH1983PLC029360
Consolidated Balance Sheet as at 31st March, 2023
Particuiars	Notes	As at	As at
ASSETS		March 31, 2023	March 31, 2022
1. Non-Current Assets		% in Lakhs	® in Lakhs
(a) Property. plant and equipment (b) Financial Assets	3	605.49	653.60
i} Investments	4	10,923.80
ii) Other Financial Assets	5	8.67	11,314.59 9.63
Total Non-Current Assets		11,537.96
2. Current Assets (a) Financial Assets			11,978.02
i) Cash and Cash Equivalents (b) Other Current Assets	6	9.68	18.81
(c) Current Tax Assets (Ne t)	7	0.59	0.83
	8	23.27	23.07
Total Current Assets		33.55	42.74
Total Assets		11,571.51
EQUITY AND LIABILITIES 1. Equity			12,020.73
(a) Equity Share Capital	9
{5} Other equity	10	124.50 9,938.94	124.56
		10,063.44	10,389.49 10,513.99
2. Liabilities
Non-Current Liabilities
(a) Provisions	11	5 52	4.75
3. Current Liabilities
(a) Financial Liabilities
i) Other Financial Liabilities (b) Other Current Liabilities	12	1,500.00	1,500.00
(c) Provisions	13	2.53	1.99
	14	0.02	0.02
		1,508.07	1,506.75
Total Equity and Liabilities		11,571.51	12,020.73
Summary of significant accounting policies The accompanying notes are an integral part of the financial statements.	1&2
As per our report of even date attached PKJ & CO.		For and on behalf of the Board of Directors
Chartered Accountants Firm Regn. No. 1241715W

\$.D./- (Padam Jain) 8.04 Partner {G.M. Loyalka) (Nitin Agarwal) Director Membership No: 071026 Managing Director

Place : Mumbai Date: 25 May 2023

DIN: 00299416 DIN: 08186528

D, /- S.Dh

(Shruti Didwania) (Anil Londhe) Gompany Secretary Chief Financial Officer

NILKANTH ENGINEERING LIMITED CIN: L27300MH1983PL.C029360 Consolidated Statement of Profit and Loss for the year ended 31st March, ²⁰²³

NILKANTH ENGINEERING LIMITED CIN: L27300MH1983PL.C029360
Consolidated Statement of Profit and Loss for the year ended 31st March, 2023
Particulars	Notes	For the Year ended March 31, 2023	For the Year ended March 31, 2022
Income Il.		@ in Lakhs	® in Lakhs
Other Income	15	16.55	15.59
Total Income		16.55	15.59
Expenses ll.
Employee Benefit Expenses Depreciation and Amortization Expenses	18	16.22	14.74
Other Expenses	17 18	48.10 12.16	56.55 14.33
Total Expenses		76.49	82.62
iii. Profit/(L.oss) Before Share of Profit from Associates (I-II}		(59.94)	(67.02)
IV. Share of Profit from Associates		(322.96)	226.30
V. Profit/(Loss) Before Tax CH-IV)		(382.90)	159.28
VI. Tax Expenses
Current Tax Deferred Tax
Excess/(Short) Provision of Earlier Years		(0.04)	0.04
Not Profit After Tax (V-VI) Vil.		(382.85)	159.24
VIL Other Comprehensive income {Och Other Comprehensive Income not to be reclassified to profit and loss in subsequent periods Actuariat Gain/(Logs)
Net Gain(Loss) on FVTOCI Investments		0.14 (67.84)	0.36 (1,002.16)
Total Other Comprehensive Income		(67.69)	(1,001.80)
Vill. Total Comprehensive Income for the year		(450.55)	(842.56)
IX. Basic and Diluted Earnings per share (Face value ¥ 10 each)	25	(30.75)	12.79
Summary of significant accounting policies The accompanying notes are an integral part of the financial statements.	1&2
As per our report of even date attached PKJ & CO. Chartered Accountants Firm Regn. No, 124115W		For and on behaif of the Board of Directors
	\$.0.-		8. DB. /-
(Padam Jain) Partner	(G.M. Loyalka) Director		(Nitin Agarwal)
Membership No: 071026	DIN: 00299416		Managing Director DIN: 08186528
Place : Mumbai Date: 25 May 2023	\$.D.- (Shruti Didwania)		8.0.

0 Company Secretary

(Anil Londhe) Chief Financial Officer

NILKANTH ENGINEERING LIMITED CIN : L27300MH1983PLC029360 Consolidated Cash Flow Statement for the year ended 34st March, ²⁰²²

Particulars Year Ended March 31, 2023 March 31, 2022 # in Lakhs Fin Lakhs A. CASH FLOW FROM OPERATING ACTIVITIES: Net profit before taxation and extraordinary items (59.94) Adjustments for- (67.02) Depreciation and amortisation expense 48.10 Provision for Expenses 56.55 2.53 Prepaid Expenses 1.99 0.59 (Profit)/Loss on Sale 0.83 of Investments (0.47) (0.57) Operating Profit before working capital changes (9.18) increase/(Decrease) in Sundry Payables (8.22) & Other Liabilities (1.03) (Increase)/Decrease (1.25) in Trade & Other Receivables (1.08) (Increase)/Decrease in Inventories (4.36) - Cash ~ generated from operations (11.25} Less: Direct {13.83) Taxes paid (1.69) (1.53) Net Cash Flow from operating activities before extraordinary Items (9.60) Adjustments (12.29) for Prior Period items : " Net Cash Flow from operating activities (A) (§.60) (12.29) B. CASH FLOW FROM INVESTING ACTIVITIES: Sale of Investments (net} 15.47 24.57 Purchase of Investments (15.00) (24.00) Net Cash from/(used) in Investing activities {B) 0.47 0.57 C. CASH FLOW FROM FINANCING ACTIVITIES: : Z Net Cash fram/(used} in financing activities (C} . : Net Increase/(Decrease) in Cash & Cash Equivalents (A+B+C} (9.13) (11.72) Gash & Cash Equivalents as at beginning of period 18.81 Cash & Cash 30.53 Equivalents as at end of period 9.68 18.81

Gash and cash equivalents included in the Statement of cash flows comprise the following :

Cash on hand	March 31, 2023 tin Lakhs	March 31, 2022 * in Lakhs
Balance in current account	0.01	0.02
Cash and cash equivalents as restated	9.67	18.80
	9.68	18.81

Direct Tax paid are treated as arising from operating activity and not bifurcated in investment and financing activities.

current 3. Figur year. es of the previous year have been re-grouped and re-classified wherever necessary to correspond with the figures of the

Figures in brackets represent outflows.

As per our report of even date attached PKJ & CO. For and on behalf of the Board of Directors Chartered Accountants Firm Regn. No. 124415Ww

({Padam Jain) Partner Membership No: 071026

Place : Mumbai Date: 25 May 2023

S.Dot (G.M, Loyalka) Director DIN: 006299416

§. D. /- (Nitin Agarwal} Managing Director DIN: 68186528

S.D. (Shruti Didwania) Company Secretary

§.D.¢- (Anil Londhe) Chief Financial Officer

NILKANTH ENGINEERING LIMITED CIN: U64200MH2000PTC129356 Consolidated Statement of Change in Equity for the year ended Jist March, ²⁰²³

NILKANTH ENGINEERING LIMITED CIN: U64200MH2000PTC129356
Consolidated Statement of Change in Equity for the year ended Jist March, 2023

Equity Share Capital: Equity shares of Rs. 10 each issued, subscri	bed and fully paid up
	Number	% in Lakhs
At 01 April, 2021 Issue of share capital	1,245,000 -	124.50 -
At 31 March, 2022	1,245,000	124.50
At O14 April, 2022
Issue of share capital	1,245,000 -	124.50 -
At 31 March, 2023	1,245,000	124.50
Other Equity
		f in Lakhs
		items of OCI
Particulars	;	Net Gaini(Loss) on
Balance as at 04 April, 2024		Investments

Other Equity

NILKANTH ENGINEERING LIMITED
CIN: U64200MH2000PTC129356
Consolidated Statement of Change in Equity for the year ended Jist March, 2023
Equity Share Capital: Equity shares of Rs. 10 each issued, subscri	bed and fully paid up
	Number	% in Lakhs
At 01 April, 2021 Issue of share capital	1,245,000	124.50
	-	-
At 31 March, 2022	1,245,000	124.50
At O14 April, 2022	1,245,000	124.50
Issue of share capital	-	-
At 31 March, 2023	1,245,000	124.50
Other Equity

		f in Lakhs items of OCI
Particulars	; Retained Earnings t	Net Gaini(Loss) on FVTOCI	:
		Investments	otal Equity Total E
Balance as at 04 April, 2024 Profit(Loss) for	(294.00)	11,526.04	11,232.04
the year NetGain/ (Loss) on FVTOCI Investments	159.24	-	169.24
Net Gain /{Loss) on FVTOC! Investments of	-	19.26	19.26
Associates Actuarial Gai n/{Loss)	"	(1,021.42)	(1,021.42)
	-	0.36	0.36
Transfer from Reserve Fund under RBI Act	(134.75)	10,524.24	10,389.49
	-	-	-
Balance as at 31 March, 2022	(134.75)	10,524.24	10,389.49

		@ in Lakhs
		Itams of OCI
Particulars	Retained d Earnings	Net Gain/(Loss) on FVTOCI	5 Total Equit quity
Balance as at 01 April, 2022		Investments
Profit/(L oss) for the year	(134.75)	10,524 24	10,389.49
NetGain(Loss) on FVTOCI lnvestments	(382.85) >	-	(382.85)
Net Gain/(Loss) on FVTOCI Investments of Associates		(9.90)	{9.90}
A ctuarial Gain/(Loss)	-	(57.94)	(57.94)
	- (517.61)	0.44	0.14
Tr ansfer from Reserve Fund under RBI Act	-	10,456.55 -	9,938.94 -
Balance as at 31 March, 2023	(517.61)	10,456.55	9,933.94

Balance as at 31 March, 2022	(134.75)	10,524.24	10,389.49
		@ in Lakhs
		Itams of OCI
Particulars	Retained d Earnings	Net Gain/(Loss) on FVTOCI Investments	5 Total Equit quity
Balance as at 01 April, 2022 Profit/(L oss) for the year NetGain(Loss) on FVTOCI lnvestments Net Gain/(Loss) on FVTOCI Investments of Associates	(134.75) (382.85) > -	10,524 24 - (9.90)	10,389.49 (382.85) {9.90}
A ctuarial Gain/(Loss)	-	(57.94) 0.44	(57.94) 0.14
Tr ansfer from Reserve Fund under RBI Act	(517.61) -	10,456.55 -	9,938.94 -
Balance as at 31 March, 2023	(517.61)	10,456.55	9,933.94

AS per our report of even date attached For and on behalf of the Board of Directors PKJ & CO. Chartered Accountants. Fism Rean. No, 1241 15W

Partner Director Managing Director Membership No: 071026 DIN: 00299416 DIN:08 ¹⁸⁶⁵²⁸

Place : Mumbai Date: 25 May 2023

S. D4

(Padam S. D. /- Jain) (G.M, Loyatka) {Nitin Agarwal)

⁰\$.D.-+ 5. D. /- (SHRUTI DIDWANIA) Company Secretary

(Anil Londhe)} Chief Financial Officer

Notes to Consolidated Financial Statements for the year ended March 31, 2023

These notes form an integral part of and should be read in conjunction with the accompanying consolidated financial statements.

1. Background

2. Significant Accounting Policies

i) Overall consideration

The consolidated financial statements have been prepared using the significant accounting policies and measurement basis summarised below.

ii) Statement of Compliance

These consolidated financial statements have been prepared in accordance with the Indian Accounting Standards ('Ind AS') prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended).

iii) Principals of Consolidation

i. |The Consolidated Financial Statements of the Parent Company and its associates have been prepared in accordance with the Ind AS 110 'Consolidated Financial Statements' and Ind AS - 28 "Investment in Associates" notified under section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended).
ii. | The consolidated financial statements have been prepared on the following basis:

Investments in associates are accounted under equity method as per Ind AS — 28 "Investment in Associates". Under the equity method, the investment is initially recorded at cost, identifying goodwill/capital reserve arising at the time of acquisition and the carrying amount is increased/ decreased to recognize Parent Company's share of profits/losses of the associates after the date of acquisition. Goodwill/Capital reserve arising on acquisition of the associates is included in the carrying amount of the respective investments. Unrealized profits resulting from transactions between the Parent Company and the associates are eliminated to the extent of Parent Company's interest in the associates. Unrealized losses resulting from intra-group transactions have also been eliminated except to the extent that recoverable value of related assets is lower than their cost to the Parent Company.

Notes to Consolidated Financial Statements for the year ended March 31, 2023

iii. | The Consolidated Financial Statements are presented, to the extent possible, in the same format as that adopted by the Parent Company for its separate financial statements.
iv. |The Consolidated Financial Statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances to the extent possible.
v. | The companies considered in the Consolidated Financial Statements are listed below:

	NILKANTH ENGINEERING LIMITED CIN: L27300MH1983PLC029360 Notes to Consolidated Financial Statements for the year ended March 31, 2023
	The Consolidated Financial Statements are presented, to the extent possible, in the same format as that adopted by the Parent Company for its separate financial statements.
The Consolidated Financial Statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances to the extent possible.
companies considered in the Consolidated Financial Statements are listed below:
Sr	Name of the Company	ay P	Date of Becoming Associate	% Holding as on 31.03.2023
1	Jatayu Textiles & Industries Limited	India	31.10.2012	28.81%
2	Osiris Online Private Limited	India	26.02.2010	30.00%
3	Sushree Trading Limited	India	31.12.2011	42.43%

iv) Basis of preparation

The consolidated financial statements are presented in Indian National Rupees (INR) and all values are rounded to the rupees, except when otherwise indicated.

v) Use of Estimates

The preparation of the consolidated financial statements in conformity with IndAS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the consolidated financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the consolidated financial statements.

vi) Current / non-current classification

Assets and liabilities in the balance sheet are classified into current/ non-current. An asset is classified as current when it is:

« Expected to be realised or intended to sold or consumed in normal operating cycle.
e Held primarily for the purpose of trading
e Expected to be realised within twelve months after the reporting period, or
e Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

Notes to Consolidated Financial Statements for the year ended March 31, 2023

All other assets are classified as non-current.

A liability is classified as current when:

e It is expected to be settled in normal operating cycle
e tis held primarily for the purpose of trading
e tis due to be settled within twelve months after the reporting period, or
e There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

All other liabilities are classified as non-current.

As the Parent Company's normal operating cycle is not clearly identifiable due to the varying nature of each project, the normal operating cycle has been assumed to be twelve months.

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

vii) Revenue

Revenue is recognised to the extent that it is probable that economic benefits will flow to the Parent Company and that revenue can be reliably measured, regardless of when the payments is being made. Revenue is measured at the transaction price which is adjusted for variable consideration on account of various discounts and schemes offered, if any, by the Company as part of the contract with the customer and excluding duties and taxes collected on behalf of the Government.

The Parent Company follows the prudential norms for income recognition and provides for /writes off Non-Performing Assets as per the prudential norms prescribed by the Reserve Bank of India or earlier as ascertained by the management.

a. Dividend Income

Income is recognized as and when the Parent Company's rights to receive the payment is established, it is probable that the economic benefits associated with the dividend will flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably.

In case of interim dividend, the right to receive the payment is established, when the dividend gets approved by the Board of Directors.

In case of final dividend, the right to receive the payment is established, when the dividend gets approved by the shareholder's in the annual general meeting.

b. Interest Income

For all the debt instruments measured at amortized cost, interest income is recorded using effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter

Notes to Consolidated Financial Statements for the year ended March 31, 2023

period, where appropriate, to the gross carrying amount of the financial asset or to amortised cost of financial liability. When calculating EIR, the Parent Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider expected credit losses.

c. Other Operational Revenue

Other operational revenue represents income earned from the activities incidental to the business and is recognised when the right to receive the income is established as per the terms of the contract.

viii) Property, plant and equipment

PPE is recognised when it is probable that future economic benefits associated with the item will flow to the Parent Company and the cost of the item can be measured reliably. PPE is stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation and cumulative impairment, if any. The total cost of assets comprises its purchase price, freight, duties, taxes and any other incidental expenses directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the management. Changes in the expected useful life are accounted for by changing the amortisation period or methodology, as appropriate, and treated as changes in accounting estimates. Costs also include borrowing costs for qualifying assets capitalised in accordance with the Parent Company's accounting policy.

Subsequent expenditure related to an item of tangible asset are added to its gross value only if it increases the future benefits of the existing asset, beyond its previously assessed standards of performance and cost can be measured reliably. Other repairs and maintenance costs are expensed off as and when incurred.

Depreciation is recognised using Written Down Value method so as to write off the cost of the assets (other than freehold land)) less their residual values over their useful lives specified in Schedule II to the Companies Act, 2013, or in case of assets where the useful life was determined by technical evaluation, over the useful life so determined. Depreciation method is reviewed at each financial year end to reflect expected pattern of consumption of the future economic benefits embodied in the asset.

Depreciation for additions to/deductions from, owned assets is calculated pro rata to the period of use. Depreciation charge for impaired assets is adjusted in future periods in such a manner that the revised carrying amount of the asset is allocated over its remaining useful life.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted, if appropriate.

ix) Leased assets

A right-of-use asset representing the right to use the underlying asset and a lease liability representing the obligation to make lease payments is recognized for all leases over 1 year on initial recognition basis. Discounted committed & expected future cash flows recognised as right-of-use asset and lease liability and depreciation on the asset portion

Notes to Consolidated Financial Statements for the year ended March 31, 2023

on straight-line basis & interest on liability portion (net of lease payments) on EIR basis is recognized over the expected lease term. No right-of-use asset is created for short term leases (i.e. lease term less than 1 year) and leases of low value items (i.e. lease of asset with original cost of less than Rs.1 lakh).

x) Impairment testing of assets

The Parent Company reviews the carrying values of assets for any possible impairment at each balance sheet date. An impairment loss is recognized in the statement of profit and loss when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the assets net of selling price or value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value based on appropriate discount rate. If at the balance sheet date there is any indication that a previously assessed impaired loss no longer exists then such loss is reversed and the asset is restated to that extent.

For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level.

Cash-generating units (determined by the Parent Company's management as equivalent to its operating segments) are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

xi) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

a. Classification of Financial Instruments

At initial measurement, the Parent Company classifies its financial assets into the following measurement categories:

1. Financial assets to be measured at amortised cost;
1. Financial assets to be measured at fair value through other comprehensive income;
1. Financial assets to be measured at fair value through profit or loss account.

The classification depends on the contractual terms of the financial assets' cash flows and the Parent Company's business model for managing financial assets which are explained below:

Business Model Assessment

The Parent Company determines its business model at the level that best reflects how it manages groups of financial assets to achieve its business objective. The Parent Company's business model is not assessed on an instrument-by-instrument basis, but at a higher level of aggregated portfolios and is based on observable factors.

The business model assessment is based on reasonably expected scenarios without taking 'worst case' or 'stress case' scenarios into account. If cash flows after initial recognition are realised in a way that is different from the Parent Company's original

Notes to Consolidated Financial Statements for the year ended March 31, 2023

expectations, the Parent Company does not change the classification of the remaining financial assets held in that business model, but incorporates such information when assessing newly originated or newly purchased financial assets going forward.

The Solely Payments of Principal and Interest (SPPI) test

As a second step of its classification process the Parent Company assesses the contractual terms of financial assets to identify whether they meet the SPPI test. 'Principal' for the purpose of this test is defined as the fair value of the financial asset at initial recognition and may change over the life of the financial asset.

In making this assessment, the Parent Company considers whether the contractual cash flows are consistent with a basic lending arrangement i.e. interest includes only consideration for the time value of money, credit risk, other basic lending risks and a profit margin that is consistent with a basic lending arrangement. Where the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic lending arrangement, the related financial asset is classified and measured at fair value through profit or loss.

The Parent Company classifies its financial liabilities at amortised costs unless it has designated liabilities at fair value through the statement of Profit and Loss account or is required to measure liabilities at fair value through profit or loss such as derivative liabilities.

. Financial Assets

i. Initial recognition and measurement

All financial assets are recognised initially at fair value except for trade receivables which are initially measured at transaction price. In the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset are also considered.

ii. Investments in associates

The Parent Company measures investments in Equity instruments of associates at cost.

iii. Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in three categories:

(a) Debt instruments at amortised cost.
(b) Debt instruments and investment in Preference Shares at fair value through profit or loss (FVTPL).
(c) Equity instruments measured at fair value through other comprehensive income (FVTOC

(a) Debt instruments at amortised cost

A 'debt instrument' is measured at the amortised cost if both the following conditions are met:

Notes to Consolidated Financial Statements for the year ended March 31, 2023

i) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

ii) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in interest income in the profit or loss.

(b) Debt instruments and investment in Preference Shares at fair value through profit or loss (FVTPL)

A debt instrument shall be measured at fair value through profit and loss (FVTPL) unless it is measured at amortised cost or at fair value through other comprehensive income, which generally occurs when the SPPI criterion is not met by the debt instrument.

(c) Equity instruments measured at fair value through other comprehensive income (FVTOCI)

For all equity instruments other than the ones classified as at FVTPL, the Parent Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Parent Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Parent Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Parent Company transfers the cumulative gain or loss within equity.

iv. Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the balance sheet) when the rights to receive cash flows from the asset have expired.

V. Impairment

In accordance with Ind-AS 109, the Parent Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind-AS 115. ECL is the difference between all contractual cash flows that are due to the Parent Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR.

Notes to Consolidated Financial Statements for the year ended March 31, 2023

The Parent Company measures the loss allowance for a financial asset at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial asset has not increased significantly since initial recognition, the Parent Company measures the loss allowance for that financial asset at an amount equal to 12-month expected credit losses.

No Expected credit losses are recognised on equity investments.

c. Financial Liabilities

i. Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, financial guarantee, contract payables, or derivative instruments.

ii. Subsequent measurement

(a) Financial liabilities at fair value through profit and loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains / losses attributable to changes in own credit risk are recognized in OCI. These gains / losses are not subsequently transferred to P&L. However, the Parent Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Parent Company has not designated any financial liability as at fair value through profit and loss.

(b) Financial liabilities measured at amortised cost

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the EIR method.

Amortized cost is calculated by taking into account any discount or premium and fee or costs that are an integral part of the EIR. The EIR amortization is included in finance costs in the Statement of Profit and Loss. Any difference between the proceeds (net of transactions costs) and the redemption amount is recognized in profit or loss over the period of the

Notes to Consolidated Financial Statements for the year ended March 31, 2023

borrowings using the EIR method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.

iii. Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

d. Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

xii) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a_ liability in an orderly transaction between market participants at the measurement date under current market conditions.

The Parent Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed in their measurement which are described as follows:

(a) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
(b) Level 2 inputs are inputs that are observable, either directly or indirectly, other than quoted prices included within level 1 for the asset or liability.
(c) Level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or Parent Company's assumptions about pricing by market participants.

xiii) Segment reporting

An operating segment is a component of the Parent Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Parent Company's chief operating decision maker to make decisions for which discrete financial information is available. Based on the management approach as defined in Ind AS 108, the chief operating decision maker evaluates the Parent Company's performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

Notes to Consolidated Financial Statements for the year ended March 31, 2023

xiv) Income taxes

Tax expense for the year, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the year. Provision for current income tax is made on the basis of the assessable income under the Income tax Act, 1961.

Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in other comprehensive income or directly in equity.

Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets and liabilities are recognised for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements.

Deferred tax assets are recognised to the extent that it is probable that the underlying tax loss or deductible temporary difference will be utilised against future taxable income. This is assessed based on the Parent Company's forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any unused tax loss or credit.

xv) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

xvi) Equity, reserves and dividend payments

Share capital represents the nominal (par) value of shares that have been issued. Share premium includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium, net of any related income tax benefits. Other components of equity include the following:

e Re-measurement of net defined benefit liability -comprises the actuarial losses from changes in demographic and financial assumptions and the return on plan assets.
e Reserves for financial instruments measured at FVOCI.
e Retained earnings includes all current and prior period retained profits.

xvii) Post-employment benefits and long/short-term employee benefits

Defined benefit plans

For defined benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan assets (excluding interest), is reflected immediately

Notes to Consolidated Financial Statements for the year ended March 31, 2023

in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Past service cost, both vested and unvested, is recognised as an expense at the earlier of:

(a)when the plan amendment or curtailment occurs; and

(b)when the entity recognises related restructuring costs or termination benefits.

The retirement benefit obligations recognised in the balance sheet represents the present value of the defined benefit obligations reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to the present value of available refunds and deductions in future contributions to the scheme.

The Parent Company provides benefits such as gratuity to its employees which are treated as defined benefit plans.

Defined contribution plans

Contributions to defined contribution plans are recognised as expense when employees have rendered services entitling them to such benefits.

The Parent Company provides benefits such as superannuation, provident fund to its employees which are treated as defined contribution plans.

Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages etc. and the expected cost of ex-gratia are recognised in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid when there is a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

xviii) Provisions

Provisions are recognised when the Parent Company has a present obligation (legal or constructive) as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a realisable estimate can be made of the amount of the obligation. 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 passage of time is recognised as a finance cost.

xix) Borrowing costs

Borrowing costs include interest, amortization of ancillary costs incurred. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss, over the tenure of the loan. Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of activities relating to construction/development of the

Notes to Consolidated Financial Statements for the year ended March 31, 2023

qualifying asset upto the date of capitalization of such asset is added to the cost of the assets.

A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.

xx) Contingent liabilities and Contingent assets

Contingent Liabilities are not recognised but are disclosed in notes in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Parent Company.

Contingent assets are disclosed in the consolidated financial statements by way of notes to accounts, when an inflow of economic benefits is probable.

xxi) Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the Year attributable to equity shareholders by the weighted average number of equity shares outstanding during the Year. For the purpose of calculating diluted earnings per share, the net profit or loss for the Year attributable to equity shareholders and the weighted average number of shares outstanding during the Year is adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

xxii) Significant accounting judgements, estimates and assumptions

When preparing the consolidated financial statements, management makes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.

The following are significant management judgements in applying the accounting policies of the Parent Company that have the most significant effect on the consolidated financial statements.

Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of certain software and IT equipment.

Lease term of right-of-use assets

Management reviews its estimate of the lease term of right-of-use assets at each reporting date, based on the expected utility of the leased property. Uncertainties in this estimate relate to business obsolescence/discontinuance that may change the lease term for certain right-of-use assets.

Notes to Consolidated Financial Statements for the year ended March 31, 2023

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm's length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Parent Company is not yet committed to or significant future investments that will ennance the asset's performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

Defined benefit obligation (DBO)

Management's estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

xxiii) Recent pronouncements

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 does not expect this amendment to have any significant impact in its financial statements.

Notes to Consolidated Financial Statements for the year ended March 31, 2023

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.

NILKANTH ENGINEERING LIMITED Notes to the Consolidated Financial Statements (Continued) tor the year ended 31st March, 2023

Property, Plant & Equipments

										2 in Lakhs
Particulars		Gross Biock				Depreciation and Amortisation			Net Block
	2022 As at April 01,	sar	Additions Deductions	As at March 31, 2023	As at April 01, 2022	For the Year	Deductions	As at March 31, 2023	As at March 31, 2023	As at March 31, 2022
Buiidings	780,26	-	=	780.26	213	27.56	-	240.37	539.90	567.46
Plant & Machinery	30.71	-	-	30.74	22	1.63	-	23.33	7.37	9.00
Furniture & Fittings	438.82	-	-	438.82	366	18.86	-	384.71	54.11	72,96
Computers	1.82	-	-	1.82	2	0.06	-	L72	0.10	0.16
Office Equipments	81.27	-	:	81.27	V7	0.00	*	77.26	4.01	4.01
Total	1,332.89	-	-	1,332.89	679.29	48.10	-	727.40	605.49	653.60
Previous Year	1,332.89	*	-	1,332.89	622.74	56.55	-	679.29	653.60

NILKANTH ENGINEERING LIMITED Notes to the Consolidated Financial Statements (Continued) for the year ended 31st March, 2023

Note 4 : INVESTMENTS

Particulars	Face Value	Number	As at March 34, 2023 in Lakhs	As at March 31, 2022 ® in Lakhs
investments at Fair Value through OCI (FYTOCH
) Quoted Equity Shares not held for trade Jay Shree Tea & Industries Limited (31st March, 2022 : 73,500)	5	73,500	38.01	67.91
Mansoon Trading Company Limited (3tst March, 2022 : 1,22,200)	410	122,200	2.81	2.61
Meenakshi Steei Industries Limited (31st March, 2022 : 90,000)	10	90,000	2.03	2.03
Hl) Unquoted Equity Shares not held for trade			62.85	72.75
In Associate Companies
Jatayu Textiles & Industries Limited {31st March, 2022 : 5,73,900)	10	573,900	210.74	210.74
Add: Post Acquisition Profit/(Loss)			4,502.23	5,034.06
Add: Goodwill/(Capital Reserve) on investment in Associates			(27.00)	(27.00)
Osiris Online Private Limited (31st March, 2022 : 3,000)	10	3,000	(9.16)	(G. 16}
Add: Post Acquisition Profit/(Loss)			593.44	604.00
Add: Goodwill(Capital Reserve} on Investment in Associates			0.46	0.46
Sushree Trading Limited (31st March, 2022 : 5.28,250) Aad: Post Acquisition Profit/(Loss)	10	528,250	361.44	361.44
Add: Goodwill/(Capital Reserve) on Investment in Associates			5,193.25 (207.02)	5,031.76 (207.02)
In Other Companies
Aakarshak Synthetics Limited (31st March, 2022 : 17,414,000)	10	1,771,000	161,51	161.51
Manav Investment & Trading Company Limited (31st March, 2022 : 2,67,300)	100	267,300
Rutgers Investment & Trading Company Private Limited (31st March. 2099 - 72.000)	100	72,000	¥2,10	72,40
			10,860.95	14,241.84
Total			18,923.80	11,314.59
Aggregate value of quoted investments Aggregate value of unquoted investments			62.85 10,860.95	72.75 11,241.84

NILKANTH ENGINEERING LIMITED Notes to the Consolidated Financial Statements (Continued) for the year ended 31st March, 2023
	As at	As at
	March 31, 2023 ¥ in Lakhs	March 31, 2022 % in Lakhs
Note 5: OTHER FINANCIAL ASSETS
Deposits Advances recoverable in cash or kind	6.15 3.52	4.99 4.84
Total	8.67	\$.83
Note 6: CASH AND CASH EQUIVALENTS

Cash in hand Balances with a Bank in	0.01	0.02
- Current Account		18.80
	9.87
Total	9.68	18.81
Note 7; OTHER CURRENT ASSETS
Prepaid Expenses	0.59	0.83
Total	0.59	0.83
Note 8: CURRENT TAX ASSETS (NET)
Advance income Taxes (Net of Provision for taxation as on 31 March 2023 - Rs.Nil, 31 March, 2022- Rs. 2.00 Lacs}	23.27	23.07
Total	23.27	23,07
Note 11: NON CURRENT PROVISIONS
Provision for Gratuity	5.52	4.75
Total	5.52	4.75
Note 12 : OTHER FINANCIAL LIABILITIES
Security Deposit	1,500.00	1,500.00
Total	1,500.00	1,500.00
Note 13 : OTHER CURRENT LIABILITIES
Expenses Payable	2.16	1.74
Other Payable Total	0.37 2.53	0.25 1.99
Note 14 : CURRENT PROVISIONS
Provision for Gratuity	0.02	0.02

Total	0.02	0.02

Notes to the Consolidated Financial Statements (Continued)

for the year ended 31st March, 2023

Note 9 : SHARE CAPITAL Particulars			As at March 341, 2023 @ in Lakhs	As at March 31, 2022 tin Lakhs
Authorised:
12,5¢.000 (March 31, 2022: 12,50,000) Equity Shares of 2 10 par value			125.00	125.00 ©
			125.00	125.00
Issued, Subscribed and Fully Paid up Shares
12,45,000 (March 31, 2022: 12,45,000) Equity Shares of 2 10 par value			124.50	124.50
Total			124.50	124.50
A) Reconciliation of the number of equity shares outstanding at the beginning and at the end of the year
Equity Share		As at 34st March, 2023		As at 31st March, 2022
Description	Number	¥ in Lakhs	Number	7 in Lakhs
Number of Shares outstanding at the beginning of the year	4,245,000	124.50	1,245,000	124.50
Number of Shares issued during the year	-	-	«	-

Equity Share	As at 34st March, 2023	As at 31st March, 2022
Description	Number	¥ in Lakhs	Number	7 in Lakhs
Number of Shares outstanding at the beginning of the year Number of Shares issued during the year	4,245,000 -	124.50 -	1,245,000 «	124.50 -
Number of Shares outstanding at the end of the year	4,245,000	424.50	4,245,000	124.50

B) Term/right attached to equity shares

C} List of shareholder holding more than 5 % of the paid up Equity Share Capital

DB) Shareholding of Promoters

Name of Promoter		31st March, 2023		31st March, 2022
	Number _ tota}	% of shares	% Change 6 during the year	Number	'% of total shares	% Change t during the year
Sushree Trading Limited	622,000	49.96%		622,000	49.96%	-

Note : Name of Promotors are disclosed by the management and relied upon by the auditors.

Notes to the Consolidated Financial Statements (Continued)

NILKANTH ENGINEERING LIMITED Notes to the Consolidated Financial Statements (Continued)
for the year ended 31st March, 2023
	As at	As at
	March 34, 2023	March 31, 2022
NOTE 10; OTHER EQUITY	% in Lakhs	@ in Lakhs

Particulars
{i) Retained Earnings
Baiance as per last Financial Statements	(134.75)	(294.00)
Profit/(Loss) for the year	(382.85)	159.24
Add: Transfer from Special Reserve Total	-	-
	(517.61)	(134.75)
(ii) FVTOCI Reserves
Balance as per last Financial Statements	10,524.24	11,526.04
Net Gain/(Loss) on FVTOCI investments Actuarial Gain/(Loss)	(9.90)	19.26
Net Gain/(Loss) on FVTOCI investments of Associates	0.14	0.36
Osiris Online Private Limited	(10.53)
Sushree Trading Limited	170.99	60.29 (1,081.01)
Jatayu Textiles & Industries Limited	(218.40)	(0.70)
Tax effect an above	-	:
	10,456.55	10,524.24
Total Notes:	9,938.94	10,389.49

CIN NO: L27300MH1983PLC029360

Regd. Office: 407, Kalbadevi Road, Daulat Bhawan, 3rd Floor, Mumbai — 400 002,

Email : [email protected]

Website : www.nilkanthengineering.co.in

PROXY FORM

Name of the member(s):
Registered address:



E- mail Id:
Folio No.
		I/We being a member(s) of ___ shares of the above named company, hereby appoint

		1. Name : _____ of __________

E-mail Id:		or failing him
		2. Name : _____ of __________
E-mail Id:		or failing him
		3. Name : _____ of __________

E-mail Id:

below:	*I wish my above proxy to vote in the manner as indicated below:	September, 2023 at 4.30 pm and at any adjournment thereof in respect of such resolutions as are indicated

Resolutions			For	Against
		1.To consider and adopt the Audited Financial Statements including audited
		consolidated financial statements of the Company for the financial year ended March
	31, 2023, together with the reports of the Board of Directors and the Auditors thereon
		2.To appoint a Director in place of Mr. G. M. Loyalka (DIN No: 00299416) who retires by
	rotation and, being eligible, offers himself for re-appointment
		3.Re-appointment of Mr. Nitin Agrawal (DIN-08186528) as Managing Director for further
period of Five Year up to 31st July, 2028




Signed this ___ day of ______2023.		Signature of shareholder
				Affix
Signatures of proxy holders				Rupee 1/-
				Revenue Stamp
1. _________		2.________

3. _________

Notes:
1.
		The proxy form duly signed across the Revenue Stamp must be deposited at the Registered Office of the
	Company not less than 48 hours before the time of the meeting.
2. 3.	A proxy need not be a member of the Company.	Please put a 'X' in the appropriate column against the resolutions indicated in the Box.

Appointing a proxy does not prevent a member from attending the meeting in person if he so wishes.

CIN NO: L27300MH1983PLC029360

Regd. Office: 407, Kalbadevi Road, Daulat Bhawan, 3rd Floor, Mumbai — 400 002,

Email : [email protected]

Website – www.tpiindia.in

FORM NO. MGT.12

Polling Paper

[Pursuant to section 109(5) of the Companies Act, 2013 and rule 21(1)(c) of the Companies (Management and Administration) Rules, 2014]

Name(s) of Member(s)
(in Block / Capital Letters)
Registered Address

DP ID/Client ID or Folio
No. of Equity Shares held

I/We hereby exercise my / our vote in respect of the following resolution as set out in the Notice convening 41st Annual General Meeting of the Members of the Company held on Saturday, 23rd September, 2023 at 11.30 am through video conferencing / other visual Audio-visual mean (VC / OAVM) facility., 27th September, 2022 at 4.30 pm at 407, Kalbadevi Road, 3rd Floor, Mumbai 400 002 which is proposed to be placed before members at the aforesaid AGM, by according my / our assent and / or dissent to the Said Resolution in the following manner :

Resolutions	No. of Equity Shares Held	I/We assent To the Resolution (for)	I/We assent To the Resolution (Against)
1.To consider and adopt the Audited Financial Statements including audited consolidated financial statements of the Company for the financial year ended March 31, 2023, together with the reports of the Board of Directors and the Auditors thereon
2.To appoint a Director in place of Mr. Nitin Agrawal (DIN No: 08186528) who retires by rotation and, being eligible, offers himself for re-appointment
3.Re-appointment of Mr. Nitin Agrawal (DIN-08186528) as Managing Director for further period of Five Year up to 31st July, 2028

*Please put tick mark ( ) in appropriate column against the resolution indicated above. In case the Shareholder / Proxy, wish his / her vote to be used differently, he / she should indicate the number of shares under the columns "For" and / or "Against"

Place : Mumbai ---------------------------------------------

Date : 27th September, 2023 Signature of Shareholder / Proxy

AI assistant

Nilkanth Engineering Ltd. — Annual Report 2023

63708_rns_2023-09-05_aa1db203-1247-4e6a-98ca-0836212c4d25.pdf

Ref: Scrip Code ~ 512004 Sub: Annual Report for the Financial year 2022-23 oh

NILKANTH ENGINEERING LIMITED 40th Annual Report 2022-23

Board of Directors DIN

Company Secretary

Auditor

Registered Office :

Registrar & Share Transfer Agent

NOTICE

Ordinary Business:

Special Business :

By order of the Board of Directors of Directors of Nilkanth Engineering Limited

NOTES:

5. EVOTING:

Step 1 : Login to NSDL e-voting system at http://www.evoting.nsdl.com

Step 2: Cast your vote electronically on NSDL e-voting system

7. GENERAL INFORMATION FOR THE SHAREHOLDERS

EXPLANATORY STATEMENT UNDER SECTION 102 OF THE COMPANIES ACT, 2013 ANNEXURE TO THE NOTICE

Item No. 3

By order of the Board of Directors of Directors of Nilkanth Engineering Limited

INDEPENDENT AUDITORS' REPORT

TO MEMBERS OF NILKANTH ENGINEERING LIMITED

Report on the Audit of Standalone Financial Statements

Opinion

Basis for Opinion

Key Audit Matters

Other Information

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

Auditor's Responsibilities for Audit of the Standalone Financial Statements

Other Matters

Report on Other Legal and Regulatory Requirements

NILKANTH ENGINEERING LIMITED ANNEXURE-A TO INDEPENDENT AUDITOR'S REPORT

NILKANTH ENGINEERING LIMITED ANNEXURE-B TO INDEPENDENT AUDITOR'S REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section 143 of the Act

Opinion

Management's Responsibility for the Internal Financial Controls

Auditor's Responsibility

Meaning of Internal Financial Controls over Financial Reporting

Inherent Limitations of Internal Financial Controls over Financial Reporting

For and on behalf of the Board of Directors

NILKANTH ENGINEERING LIMITED CIN: L27300MH1983PLC028360 Standalone Statement of Profit and Loss for the year ended 31st March, 2023

CIN : L27300MH1983PLC029360 Standalone Cash Flow Statement for the year ended 31st March, 2023

NILKANTH ENGINEERING LIMITED CIN: U84200MH2000PTC129356

Equity Share Capital:

Other Equity

NILKANTH ENGINEERING LIMITED Notes to the Standalone Financial Statements (Continued) fer the year ended 31ist March, 2023

3. Property, Plant & Equipments

Notes to the Standalone Financial Statements (Continued)

Notes to the Standalone Financia! Statements (Continued)

B) Termiright attached to equity shares

C) List of shareholder holding more than 5 % of the paid up Equity Share Capital

D) Shareholding of Promoters

Notes to the Standalone Financial Statements (Continued)

Notes:

NILKANTH ENGINEERING LIMITED Notes to the Standalone Financial Statements (Continued)

19. Financial instrument and fair value measurement

Notes to the Standalone Financial Statements (Continued} for the year ended 31st March, 2023

19. Financial instrument and fair value measurement

22 Income Taxes & Deferred Taxes (Ind AS - 12)

23 Gratuity and other post employment benefit plans (Ind AS - 19)

Befined Benefit Plans

inherent Risk:

Narrations

z. Description of Plan Assets and Reimbursement Conditions

3. Investment / Interest Risk

4, Longevity Risk

5. Risk of Salary Increase

6. Discount Rate

24 Related Party Disclosures (Ind AS - 24)

Associate Companies Jatayu Textiles & Industries Limited Osiris Online Private Limited Sushree Trading Limited

25 Earnings Per Share (Ind AS - 33)

26 Contingent Liabilities not provided (Ind AS - 37)

27 Segment Reporting (Ind AS - 108)

28 Leases (Ind AS - 116)

29 Details of dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

43 Ratios

Notes to Standalone Financial Statements for the year ended March 31, 2023

1. Background

Nilkanth Engineering Ltd. Annual Report 2023

NILKANTH ENGINEERING LIMITED CIN: L27300MH1983PLC029360 Consolidated Balance Sheet as at 31st March, ²⁰²³

NILKANTH ENGINEERING LIMITED CIN: L27300MH1983PL.C029360 Consolidated Statement of Profit and Loss for the year ended 31st March, ²⁰²³

NILKANTH ENGINEERING LIMITED CIN : L27300MH1983PLC029360 Consolidated Cash Flow Statement for the year ended 34st March, ²⁰²²

NILKANTH ENGINEERING LIMITED CIN: U64200MH2000PTC129356 Consolidated Statement of Change in Equity for the year ended Jist March, ²⁰²³