Annual Report 22 23

1
Powering a
Corporate Overview Statutory Reports Financial Statements
Sustainable Future
MTAR Technologies Limited
Annual Report FY 2022 - 23

MTAR Technologies Limited Annual report FY 2022- 23
2
In this annual report we are we believe we have been prudent in our

presenting some forward-looking assumptions. The achievement of results
information to enable investors is subject to risks, uncertainties and even
to comprehend our prospects inaccurate assumptions.
and take informed investment
decisions. This report and other Should known or unknown risks or
statements - written and oral - that uncertainties materialise, or should
we periodically make contain underlying assumptions prove inaccurate,
forward-looking statements that actual results could vary materially from
set out anticipated results based those anticipated, estimated or projected.
on the management’s plans and
assumptions. Wherever possible, We undertake no obligation to publicly
we have tried to identify such update any forward-looking statements,
statements by using words such whether as a result of new information,
as ‘anticipates’, ‘estimates’, ‘expects’, future events or otherwise.
‘projects’, ‘intends’, ‘plans’, ‘believes’,
and words of similar substance in
connection with any discussion of
future performance. We cannot
guarantee that these forward-looking
statements will be realised, although
Corporate overview
Corporate overview
4 Managing Director's Overview

6 Corporate Snapshot
34 Financial Highlights
38 Operational Review
40 Management Discussion & Analysis
56 MTAR's ESG Review
62 Risk Management
Statutory section
70 AGM Notice
92 Director's Report
102 BRSR
138 Secretarial Audit Report
144 CSR Activity Report
149 Corporate Governance
Online Annual
Financial Section Report
177 Standalone Financial Statements www.mtar.in
238 Consolidated Financial Statements
3 Corporate Overview Statutory Reports Financial Statements
Powering a Sustainable
Future
The foundation of MTAR was laid in 1969 to
cater to prestigious Indian Civil Nuclear Power
program. The company has developed several
climate positive products for Clean Energy - Civil
Nuclear Sector since then.
MTAR has forayed into Clean Energy - Fuel cells

in 2009 by supplying power units for Solid Oxide
Fuel Cells. The company has increased its wallet
share in this sector by adding products such as
electrolysers, sheet metal assemblies,
enclosures etc.
In addition, MTAR has started catering to

customers in Hydro Power and Waste to Energy
sectors by supplying complex fabricated
structures. The company is also in discussion
with customers that are into Wind Energy,
Battery Storage Systems and Hydrogen Storage
Systems
MTAR strategises to expand its green product

portfolio further, powering a sustainable future
4
MTAR is poised to witness an accelerated growth

with healthy margins over the coming years.
Positive industry growth in the sectors of our
presence is expected to fuel our growth further.
I am glad to inform you that FY 2022-23 The best part is that we have added new days in FY 2021-22. As the global supply
proved to be another eventful year in the customers such as GE Power, Thales, chains have streamlined, there was a
growth story of MTAR. Collins Aerospace, GKN Aerospace etc and reduction in our receivable days due to
the company is in discussion with several shorter shipping times. However, there is
The company has clocked highest ever customers. Historically, MTAR is known for an increase in our inventory days as we
revenues of Rs 5,733.47 Mn FY 2022-23, maintaining long standing relationships have procured inventories ahead of time
maintaining the accelerated growth with its customers and the company for the development of new products to
momentum with 78% YoY increase. We intends to turn each of the new customer ensure a smooth qualification process;
have registered a EBITDA of Rs. 1,539.62 account into key strategic account going we are working on reducing our inventory
Cr with a margin of 26.85%, Net Profit of forward that could boost up our revenues days over the coming quarters
Rs. 1,040.75 Mn with a margin of 18.20%. significantly.
Our closing order book as 31 March 2023 The company has on boarded a new COO
is at Rs. 11,729.46 Mn in line with our In Clean Energy – Fuel Cells division, de- with immense experience in Clean Energy
guidance. There was a dip in EBITDA livered 4545 Yuma units and 138 units of – Fuel Cells & Automotive sectors and
margins compared to the given guidance Electrolyzers in FY 2022-23. We have MTAR is expected to reach new heights
due to salary corrections taken up in Q4, commenced sheet metal operations this under his leadership.
which is a one-of-a kind of scenario. fiscal year and dispatched around Rs.
311.30 Mn of sheet metal assemblies At MTAR, we strongly believe that
Operational Overview for Solid Oxide Fuel Cells. Overall, the effective systems and processes play a
company has registered a revenue of vital role in business decision making and
MTAR has always embraced innovation Rs. 4,245.60 Mn in Clean Energy - Fuel the company has worked on
that fostered the development of new Cells including the revenues from sheet strengthening our systems and processes
products and technologies. Continuing metal. The company We have executed further to cater to the significant growth
the legacy of innovation, we have Rs. 171.60 Mn of orders in Hydel sector the company is set to witness.
developed ASP assemblies, a specialised through our new specialised fabrication
product and dispatched around Rs. 75 Mn facility that shall be operational in a Industry Analysis
of orders in the year under review. full-fledged way from FY 2023-24.
Clean Energy – Fuel Cells vertical is
The company has entered into an MOU While Clean Energy - Civil Nuclear Power expected to grow at a CAGR of 30% - 35%
framework with ISRO for the accounted for Rs.438.01 Mn of revenues over the next decade. In the recent past,
development of Small Satellite Launch the company has delivered Rs. 494.05 Mn our customer Bloom Energy has built,
Vehicle project powered by Semi revenue in Space and MNC Aerospace installed and operationalized a 4-
Cryogenic Technology with 100-ton segment. Our revenues from Defence megawatt Bloom electrolyzer span of two
engine in the first stage and 10-ton stand at Rs. 151.13 Mn and revenues months is delivering the equivalent of
engine in the second stage. We shall be from products & others are pegged at Rs. over 2.4 metric tons per day of hydrogen
developing the engine systems and inter- 233.08 Mn. output, which is a great stride in the
stage structures in-house whereas the production of green hydrogen.
company has sought the support of ISRO In addition, the company has initiated the Electrolyser production is expected to be
through IN-SPACe for Avionics. MTAR has qualification process for cable harnessing ramped up over the next couple of years.
roped in some of the eminent scientists to assemblies by commissioning our new
work on this project. The developmental electronics lab. We are in discussion with other
activity shall take 4-5 years, the company customers in Fuel Cells, however, their
shall be taking up three developmental We have reduced our NWC to 230 days volumes have not be ramped up yet for a
flights before a commercial launch for the year under review as against 275 company like MTAR to come into play. As
the pace for decarbonisation picks up, FY 2023-24 Outlook by end of FY 2023-24 to increase
there is an immense potential available operational efficiencies. The company
for the solutions in storage systems. As informed to our shareholders in the aims to gradually reduce the NWC to 170
MTAR is currently in advanced stages of past earnings call, we are targeting a days over the next couple of years
discussions with Fluence Energy that is revenue growth of 45% to 50% in FY
into battery storage systems.Furthermore, 2023-24 backed by robust order book Augmentation of Capacities The
the company has also initiated discussions with an EBITDA of 28% +/- 100 bps. Based company has established capacities
with customers that are into Hydrogen on the visibility on various orders across ahead of time to cater to the current
Storage Systems. Even revenues from different sectors, we look forward to a growth. However, the capacities have
Hydel sector are projected to be ramped closing order book of at least to be augmented in bottle neck areas
up once our fabrication facility is Rs. 15,000 Mn by end FY 2023-24. to address the ramped up volumes. In
completely operational. Operating leverage has enabled to addition, there could be project specific
improve our returns; In FY 2022-23, our investments as and when we foray into
Clean Energy - Civil Nuclear Power - ROCE stands at 20% as against 14% in FY new verticals like battery storage systems,
There shall be a significant growth in this 2021-22. Ramping up the sheet metal and energy storage systems etc. We look
vertical due to the construction of civil specialized fabrication production is forward to grow organically over the
nuclear reactors on fleet mode. MTAR is expected to yield better return ratios by next 5 years and the company intends
anticipating Rs. 5,000 Mn tenders from end of FY 2023-24. to maintain healthy debt to equity ratio
Kaiga 5 & 6 reactors that shall be while funding its growth through internal
outsourced to a private player Strategic Roadmap accruals and debt.
Space: We are in the very exciting phase At MTAR, we strongly believe that Talent Management
of Indian Space Industry and ISRO holds revenue is outcome of the technological We believe that our Employees are the
an exceptional success rate. ISRO has developments we undertake and the backbone of our growth; the company
successfully completed two missions for products we develop. The company has grooms the manpower in the organisation
One-Web by launching a constellation of a clear roadmap to expand its customer by training them in cross-functional areas
36 satellites in each mission. Indian Space base and enhance the product portfolio and assigning challenging projects. We
sector that currently contributes to 2% - that could translate into potential top line have taken up salary correction in Q4 FY
3% of the global space industry is estimat- of Rs. 30,000 Mn with healthy margins 2022-23 to ensure our employees are
ed to capture 10% of the market share over the next 5 years. To realise such a compensated on par with the industry
of global space economy by 2030, which growth, the company shall be undertaking
entails a CAGR of at least 15%-20% over the following initiatives Sustainability
the coming years on a conservative basis. Even as we chart out our growth strategy,
In addition, the company has added a lot Development of new products: The we realise that embracing
of customers in Aerospace division and is company is focusing on expanding its sustainability is key to a healthy future for
in discussion with several MNC customers product base by adding new customers all our stakeholders. ESG has been
that entails a 45% - 50% YoY growth in and enhancing its wallet share with the integral part of our business decision
revenues from Aerospace vertical. existing customers that is expected to give making since our inception. We have a
us significant growth in revenues over the robust corporate governance framework
Defence: The Government of India coming years. where our strategic direction is being
opened the defence industry for private driven by an independent director
sector participation to provide impetus to Diversification of Customer Base: MTAR majority board. We look forward to
indigenous manufacturing and this em- intends to diversify its customer base increase our green product portfolio
phasis on the Make in India is set to gen- further across geographies and sectors. In further by expanding our presence in
erate immense opportunities in Defence. FY 2022-23 the company has added Clean Energy sector across geographies
MTAR is in final stages of getting Defence customers including GE Power,
license; once we obtain the license it Collins Aerospace, Thales etc. We have Acknowledgements
enables the company to be a preferred long-standing relationships with all our
manufacturing partner for global MNCs customers and we are a preferred Finally, I would like to thank all our
that are looking to capture the manufacturing partner for their stakeholders including our Board of
opportunity in Defence in India. requirements. Our new customers are Directors, employees, customers,
expected to turn into key strategic suppliers, and investors who extended
Products: Our products basket comprising accounts and generate recurring revenues their immense support to MTAR and
specialised products such as ball screws, 2-3 years down the line. inspired us to strive for greater heights. As
roller screws, water lubricated bearings, informed to our shareholders over the
ASP assemblies etc. is set to witness an Reduction of NWC days: The company last couple of years, the company is
exponential growth due to addition of has worked on reduction of the net working towards building a world class
new products consistently. The company working capital days from 275 at the end institution with a sustainable growth and
targets to execute around Rs. 1200 Mn – of FY 2021-22 to 230 days at the end of health margins over the next 15-20 years
Rs. 1300 Mn orders in products category FY 2022-23. We are working on reducing
in FY 2023-24. our NWC days to less than 200 days Srinivas Reddy
Managing Director
6
\
The company is engaged in the manufacturing of
precision engineered systems for customers in
Clean Energy - Civil Nuclear Power, Fuel Cells, Hydel
& others, Space & Defence sectors
In addition, the company also supplies specialised

products such as Ball Screws, Water Lubricated
Bearings, Roller Screws, Electro-Mechanical
Actuation Systems, ASP assemblies etc. that find
applications across diverse sectors
MTAR has invested in cutting edge and

futuristic manufacturing technologies to develop
reliable and world class precision engineered
products
Vision Extensive Experience Diverse Products
Graduate from precision Engineering MTAR Technologies Limited was established MTAR specialises in the design and
towards system integration in 1969 by three founders (P. Ravinder fabrication of complex precision
Reddy, K. Satyanarayana Reddy and engineered systems such as
Be a reliable manufacturer and offer P. Jayaprakash Reddy) with the objective to
innovative manufacturing solutions to address the growing post-embargo 1. Fuelling Machine Head, Bridge &
manufacture differentiated engineering engineering requirements of India. The Column, Fuel Transfer System, Coolant
products to clients across diversified Company now enjoys more than five Channel assemblies, Drive
segments and geographies decades of rich experience and a Mechanisms, Fuel Locator Assembly,
prominent position in India’s Clean Energy Sealing & Shielding doors etc. for the
Enhance our current capabilities to - Civil Nuclear Power, Space & Defence and core of nuclear reactors.
manufacture world class products to Clean Energy - Fuel Cells & Others sectors.
cater to domestic and global engineering 2. Liquid Propulsion Engines - Vikas
needs The Company is led by Parvat Srinivas Engines, Cryogenic Engine Sub
Reddy who possesses more than three Systems, Electro-Pneumatic Modules,
Be an ESG compliant firm and decades of vast experience in engineering Satellite Valves, Grid Fin Structures etc.
generate margins through sustainable and construction sectors. Under his for Space Launch Vehicles.
business practices, thereby creating value leadership the company has been
to all the stakeholders in the process witnessing accelerated growth. He was 3. Gear boxes, Aerostructures,
instrumental in establishing the Clean Actuation Systems, Ball Screws etc. for
Energy - Fuel Cells and Export Aerospace various applications in Defence.
verticals at MTAR.
4. SOFC & Hydrogen units for Fuel cells,
Sheet Metal assemblies, Enclosures,
Management Knowledge Capital
and Electrolysers in the Clean Energy
sector.
The company is managed by Parvat The Company is respected for its technical
Srinivas Reddy and a team of know-how gained over the past five decades. 5. Import substitutes such as Ball
experienced technical and management This has been derived from a foundation of Screws, Water Lubricated Bearings,
professionals. MTAR comprises 2565 around 2565 employees including contract Roller Screws that find various
employees as on March 31, 2023. employees; 50 were employed in the R&D applications in Clean Energy - Civil
department in FY 2022-23. The Nuclear Power, Space & Defence
Company comprises a healthy mix of sectors.
seasoned industry veterans and dynamic
young professionals;average employee age
stood at 37 years as on March 31, 2023.
Customers Cerfications Credit Rating
The Company addresses the growing All our revenue generating units have been ICRA has reaffirmed A Stable for
needs of marquee global MNCs such accredited with ISO 9001:2015 and AS9100D Long-term fund-based/ CC, Long-
as Bloom Energy, Andritz Hydro, Voith, (technically equivalent to EN 9100:2018 term fund-based TL/ Long-term-
Hitachi Zosen, Rafael Advanced Defense and JISQ 9100:2016) certifications Non-fund based, Long-term unallo-
Systems Ltd, Elbit Systems, Worldwide Oil cated and A1 for short-term - Non-
Machine etc; it caters to reputed Indian Our facilities at Adibatla, Unit 2, and EOU fund based
customers like Nuclear Power have been certified for ISO 14001:2015
Corporation of India Limited, Indian Environmental Management System, ISO
Space Research Organisation, Defence 45001:2018 Occupational Health & Safety
Research &Development Organisation and ISO 27001:2013 Information Security
and Hindustan Aeronautics Limited. Management System.
In FY 2022-23, the company has added We have received the NADCAP certification for
customers such as GE power, Collins our facilities at Unit 2 and Unit 5.
Aerospace, Thales, GKN Aerospace,
among others
8
Milestones
Commenced supplies
of components to
Indian Space Research
Organisation (ISRO)
Inception of MTAR
to supply coolant Rolled out first Vikas
channel assemblies Engine for Space Launch
to the Department of Vehicle
Atomic Energy
Awards
2021 2020 2018
Received National Level Champi- MTAR received an appreciation MTAR was awarded the
on Award from Society of Indian letter from RCI for the Best Quality Supplier Award
Defence Manufacturers (SIDM) contribution towards the by the helicopter division
under Import substitution for indigenisation of ball screws of Hindustan Aeronautics
Mission Critical Parts/Systems/ for actuation systems. Limited in 2018.
Sub-systems medium category for
Ball Screws.
Forayed into Clean Energy - Development of

Fuel sector by supplying proto units of Roller
SOFC units for fuel cells Screws
Development of Entered into MOU

Electro-pneumatic modules framework with
for Space Launch Vehicles IN-SPACe for the
development of
Small Satellite
Launch Vehicle
2005 2004 2002
MTAR was awarded the Defence MTAR was awarded the INS MTAR was bestowed the Award
Technology Absorption Award by Industrial Excellence Award by for Excellence in Aerospace
the Defence Research and the Indian Nuclear Society for Indigenisation by Society of
Development Organisation in contributions in the Civil Indian Aerospace Technologies
recognition of its technology Nuclear Power field through and Industries for its outstanding
absorption in the area of critical development contribution towards indigenisa-
Agni missiles. assignments. tion of the machining of critical
components for Kaveri engines.
10
Product Design Advanced Machining
Specialised
Specialised Fabrication
Fabrication Assembly & Testing
Heat Treatment Surface Treatment - Painting
Electronics Manufacturing Systems -

Cable Harnessing Assemblies Quality Control
Specialised fabrication vertical shall be

operational in a full fledged way from Q2
FY 2023-24
We have started catering to GE Power in

Hydel sector and the company is in
discussions with various other customers
Significant ramp up in revenues is expected

once the facility is fully operational
12
Delivered Rs. 311 Mn worth of Sheet metal

assemblies & enclosure orders to Bloom Energy.
We have a closing order book of Rs. 1100 Mn
for sheet metal in Clean Energy by end
FY 2022-23
The company aims to cater to Clean Energy &

Aerospace requirements through its sheet
metal facility
Qualification of cable
harnessing assemblies is under
process
Batch Production expected to

commence from H2 FY 2023-24
-
14
Specialised Fabricated Developmental Orders

Integrated Systems
Structures
CATERING TO DIVERSE
SECTORS WITH WIDE
PRODUCT PORTFOLIO
Mass Production Batch Production Import Substitutes
MTAR addresses diverse products ranging from highly complex integrated systems
to precision structures with close tolerances weighing from few gms to hundreds of
tonnes
Fuelling Machine Head
Grid Plate
Clean Energy - Civil

Nuclear Power
FM Bridge & Column Coolant Channel Assemblies
Calandria Vault Top Hatch Cover Beam Control Plug Water Lubricated Bearings
16
MTAR supplies SOFC and hydrogen units to Fuel Cells in Clean Energy.
Dispatched 4550 Yuma units in FY 2022-23
We supply electrolyser units that generate green hydrogen through electrolysis

of water. Dispatched 138 units of electrolysers in FY 2022-23
Structures - Waste to Energy Sector
Spiral Casing - Hydel Sector Structures - Hydel Sector
Dispatched around Rs. 171.60 Crs of orders for Clean Energy - Hydel, Waste to
Energy and other sectors in FY 2022-23
18
Our Product portfolio in Space
Stage 3: Ball Screws
Stage 2: Cryogenic Engine Sub

Systems (LOX Turbo Pump, LH2 Tur-
bo Pump, Injector Head
and Gas Generator)
Stage 1: Vikas Engine Stage 1: Electro-pneumatic modules

Products Under Development - Space
Grid Fin Structures for Gaganyaan, India's first Semi Cryo Engine - Enhances payload capacity of
Human flight mission GSLV from 4 tones to 6 tones
Two Stage to Low Earth Orbit Small Satellite

Launch Vehicle
• MTAR has entered into MoU (memorandum of understanding) framework with Indian
National Space Promotion and Authorization Centre (IN-SPACe) that shall remain in force for 3
years for design and development of a two-stage to low-earth orbit all-liquid small satellite
launch vehicle powered by semi cryogenic technology with a payload capacity of 500 kilogram
• As per the MOU framework the company has sought support from ISRO for various
requirements including avionics, sub systems testing, facilitation of launch etc. and any other
requirements that might emerge during the course of design, development and launch phase.
• Inducted 10 renowned Scientists who have started working on various sub systems of the
Launch Vehicles. MTAR targets to conduct the first sub system level tests of engine by end FY
2023-24
20
Products in Space - MNC Aerospace Vertical
Structures for MNC Aerospace customers
Precision Equipment for MNC Aerospace customers
MTAR supplies critical structures and precision equipment to MNC Aerospace firms. In FY 2022-23, the
company has added prestigious Aerospace customers like Collins Aerospace, Thales, GKN /Aerospace,
among others
Product Portfolio in Defence

22
Electro-Mechanical
Roller Screws
Actuators
The Company is working on the The company has executed

development of First Article Orders of Roller
Electro-mechanical actuators that Screws
find application in Space and
Defense sectors. Awaiting approval from the
customer to take up volume
Actuators orders worth Rs. 80 Mn orders
shall be executed in FY 2023-24
Valves Valves
ASP Assemblies
MTAR has developed ASP

MTAR is working on the
assemblies, specialised
development of valves that have
product for Clean Energy - Fuel
lucrative potential in Space &
Cells sector
Defence sectors
Delivered Rs. 75 Mn of orders in
Received orders from Navy for
Q4 FY 2022-23
FAIs
Cable Harnessing
Valves Heaters
Assemblies
MTAR is working on the
development of cable harnessing Initiated the development of Heaters
assemblies for Clean Energy - Fuel that are used in electrolysers
Cells sector
Currently, heaters are imported;
Qualification process is expected to Indigenisation of heaters enables us
be completed by H1 FY 2023-24 to save the costs incurred for
manufacture of electrolysers
The company intends to cater to
Aerospace vertical as well
MTAR has added global OEMs such Collins Aerospace, Thales, GKN Aerospace,
GE Power etc. in FY 2022-23.
24
Indian Space Research Organisation Nuclear Power Corporation of India Ltd DRDO
Incorporated in 1969, Indian Space Research A Public Sector Enterprise (under the R&D wing of Ministry of Defence
Organisation is the sixth largest space agency administrative control of the Department in India with a vision to empower
in the world. ISRO works on space exploration of Atomic Energy, Government of India. India with cutting-edge defence
programmes and application-specific satellite The Company drives the operations and technologies and achieve
products. ISRO has been involved in more than implementation of atomic power plants. self-reliance in critical defence
100 space craft missions including three nano NPCIL is responsible for design, technologies and systems. DRDO
satellites and one micro satellite and 72 launch construction, commissioning and operation comprises a network of more
missions. ISRO launched nearly 270 foreign of nuclear power reactors. NPCIL is than 50 laboratories engaged in
satellites of more than 30 countries. operating 22 commercial nuclear power developing defence technologies.
reactors with an installed capacity of 6780 DRDO’s indigenous develoment
MWe. NPCIL has eight reactors under and production of strategic
various stages of construction totaling 6200 systems and platforms comprised
MWe capacity. Agni and Prithvi series of missiles,
light combat aircraft Tejas, air
defence system Akash and a
range of radars and electronic
warfare systems.
Rafael Advanced Defense Systems Ltd Elbit Systems Collins Aerospace
One of Israel’s three largest defence Israel’s largest publicly traded Collins Aerospace is one of
companies, with 8,000 employees and arms and security Company. Has world's leading supplier of
numerous subcontractors and service military contracts with Aerospace products. It's engaged
providers. Synonymous with dynamic governments in the US, UK and in designing, manufacturing and
defence, daring innovation, and Europe, Africa, Asia and South servicing systems and
technological ingenuity. Pioneered advances America. Makes fighter jets components for commercial
in defence, cyber and security solutions for fiestier and soldiers’ eyes sharper aviation, business aviation,
air, land, sea, and space. Innovations based by supplying and upgrading military and defense,
on extensive operational experience and defence electronics for airborne, helicopters, space, airports,
understanding of evolving combat space, land and naval platforms, and other industries.
requirements. including fixed wing and
helicopter support. Collins Aerospace has six strategic
business units: Aerostructures,
Avionics, Interiors, Mechanical
Systems, Missions Systems, and
Power & Controls
GKN Aerospace Thales
GKN Aerospace is the world's Thales Group is a French systems, radio communications
leading multi-technology Multinational Company that designs, products, network and
Aerospace product supplier. With develops and manufactures electrical infrastructure systems, critical
38 manufacturing locations in 12 systems as well as devices and information systems and
countries, it serves over 90% of equipment for the aerospace, defence, cybersecurity solutions for the
the world's aircraft and engine transportation and security sectors. Its land, naval and air defense
manufacturers. It designs and solutions include air traffic management markets. Thales also offers
manufactures innovative smart systems, navigation solutions, flight maintenance, repair and training
aerospace systems and deck, avionics equipment, flight avionics, services. Head quartered in Paris,
components. electrical systems, and training solutions France, its business operations
for the aerospace industry. span across the Americas, Europe,
Asia-Pacific, the Middle East and
The Company also provides Africa.
weapon systems, protection
Bloom Energy Inc. Voith
Provides solid oxide fuel cell technology. The Voith Group is a global technology
Technology generates onsite power from Company. With its broad portfolio of systems,
multiple fuel sources. Offers services to the products, services and digital applications,
banking, financial services, cloud services, data Voith has set standards in the markets of
centers, technology, communications and media, energy, paper, raw materials and transport &
consumer packaged goods and consumables, automotive. Founded in 1867, Voith is one of
government, healthcare, hospitality, logistics, the larger family-owned companies in Europe
manufacturing, real estate and retail industries. with sales of € 4.3 billion and locations in over
Manufacturing facilities in California and 60 countries
Delaware.
GE Hydro Andritz Hydro
GE Hydro is one of the renowned players in Andritz Hydro is a global supplier of

Hydel sector that offers broadest range of hydro electromechanical systems and
solutions and services: from water to wire, services (“from water-to-wire“) for
from individual equipment to complete turnkey hydropower plants and one of the
solutions, for new plants and the installed base. leaders in the world market
GE’S Hydro Turbines and Generators represent for hydraulic power generation.
more than 25% of the total installed capacity
worldwide.
Worldwide Oilfield Machine
Worldwide Oilfield Machine

(WOM) is a vertically integrated, multinational oilfield
equipment manufacturer that specializes in custom
solutions for the drilling, testing, production and
intervention segments of the oil and gas industry.
Established in 1980 with headquarters based in
Houston, Texas, WOM group of companies’ employ have
12 strategically located facilities around the world.
26
MTAR is currently in discussions with reputed global OEMs specifically in

Clean Energy and Aerospace sectors
Fluence Energy Enercon
Fluence is a global leader in energy Enercon has been one of the world’s Globally, Enercon has a presence
storage systems. It offers energy leading companies in the wind with a global decentralised service
storage products that are optimized energy industry for more than 35 and sales network in more than
for common customer applications years. Enercon is driving forward 45 countries. Its product portfolio
but can be configured for specific use supply with renewable energies comprises wind turbines with
cases and requirements. All Fluence worldwide and is also involved in outputs from 800 to 5.500 kilowatts
products can be delivered as turnkey areas of future technology including
solutions to the customer energy storage, e-mobility, and smart
including all associated balance of grid solutions.
plant equipment.
Enervenue Regen Power
EnerVenue provides metal-hydrogen

Regen Power was established in 2003 and Regen Power was established
batteries for large-scale renewable and
is renowned for both innovation in the in 2003 and is renowned for
storage applications. It's challenging
field of renewable energy in Australia. both innovation in the field of
conventional energy storage design with
Regen provides a wide range of products renewable energy in Australia.
its differentiated technology. Based on
for solar energy systems including solar Regen provides a wide range of
proven technology used by NASA for
panels, inverters, charge controllers, and products for solar energy systems
more than three decades, EnerVenue
wind turbines for both urban electricity including solar panels, inverters,
Energy Storage Systems feature an
grids and remote area off grid PV market charge controllers, and wind
exceptionally long lifespan, eliminating
systems at very competitive rates.To date, turbines for both urban
the need for augmentation or oversizing.
Regen has installed and maintains over electricity grids and remote area
Its Energy Storage Systems can be easily
9000 residential rooftop Solar PV systems off grid PV market systems at
mounted in racks, containers or stacked in
in Australia. very competitive rates. To date,
custom warehousing.
Regen has installed and
maintains over 9000 residen-
tial rooftop Solar PV systems in
Australia.
Israeli Aerospace industries Bluebird Aero Systems Ltd
Israel Aerospace Industries or IAI is Israel’s major Bluebird Aero Systems Ltd provides tactical
aerospace and aviation manufacturer, producing unmanned aerial systems (UAS) and peripheral
aerial and astronautic systems for both military equipment. It delivers combat-tested solutions
and civilian usage. It a completely state-owned to meet the global challenges for the military,
by the government of Israel. IAI designs, homeland security, and civilian UAS markets. The
develops, produces and maintains civil aircraft, Company’s solutions are designed to deal with
drones, fighter aircraft, missile, avionics, and contemporary challenges related to real-time
space-based systems. intelligence generated by small and smart UAS,
a critical factor in modern combat and civilian
applications. With a wide spectrum of UAS
platforms, all operating from a unified ground
control station, Bluebird systems are equipped to
handle a variety of missions, even in challenging
weather and terrain conditions.
28
MTAR has invested in cutting edge and futuristic technologies to develop niche
precision engineered systems over the past five decades
End to End Manufacturing Expertise
MTAR has been a leading player in India's in collabotion with its customers has 9100:2016 certifications) for quality
niche precision engineering industry over led MTAR to develop state-of-the-art management systems.
the past few decades and the company has facilities including in-house product
contributed to some of the prestigious design, advanced machining, specialised Our facilities at Unit 2, EOU and
Indian & Global programs in Clean Energy, fabrication, system integration, surface Adibatla have been certified for ISO
Space & Defence sectors. treatment and heat treatment. These 14001:2015 Environmental
capabilities are further supported by an Management System, ISO 45001:2018
The company is known for supplying extensive and stringent testing and Occupational Health & Safety and ISO
reliable built to print precision engineered quality control mechanism undertaken 27001:2013 Information
systems that has enabled the company to at each stage of the production process Security Management System. We
develop long-standing relationships with its to ensure that our finished product have received the NADCAP
customers. MTAR has forayed into product conforms to the exact requirement of our certification for our facilities at Unit 2
design by initiating the development of customers and Unit 5.
Small Satellite Launch Vehicle project where
the company shall be working on concept Further, all our revenue generating units
design to complete system realisation. including our EOU have accreditations
such as the ISO 9001:2015 certification
Decades of expertise in manufacturing and and AS9100D certification (technically
development of innovative technologies equivalent to the EN 9100:2018 and JISQ
Wide product portfolio across diverse sectors
MTAR has developed wide product MTAR supplies SOFC & hydrogen units, engines) and electro-pneumatic
portfolio across diverse sectors. It provides sheet metal assemblies, enclosures, ASP modules to serve Space Launch
built to print products as per the customer assemblies to solid oxide fuel cells and Vehicles. MTAR also supplies
specifications. Reliability of the end product electrolyser units to solid oxide precision equipment for Defence
and timely execution of complex projects electrolysers in Clean Energy – Fuel and import substitutes that find
have enabled us to become a strategic Cells sector. The Company has also initiated applications across various sectors.
partner to ourcustomers and increased our the development of cable harnessing
customers’ dependence on us. assemblies. In addition, we have also The Company has delivered the
started addressing orders of critical first articles of roller screws that
Our association with entities of Department structures in Hydel and Waste to Energy are import substitutes and is
of Atomic Energy for the past five decades sectors geared up for volume production.
bears testimony to the Company’s ability to We have also initiated the concept
manufacture and supply specialized products Within the space sector, we have design and development of Small
such as fuelling machine head, bridge and established relationship with ISRO to whom Satellite Launch Vehicle.
column and coolant channel assemblies, we have been supplying a wide variety of
among others, not just for the new mission critical assemblies specifically,
pressurized heavy water nuclear reactors, but liquid propulsion engines, cryogenic
also for refurbishment and maintenance of engines (turbo pumps, booster pumps, gas
the existing reactors. generators and injector heads for such
State of the art facilities with cutting edge manufacturing technologies
We operate through our seven state-of-the- future demand at minimized cost of inhouse expertise, certain
art manufacturing facilities, including one expansion. MTAR has invested in sophisticated special purpose
EOU, each of which, is situated in Hyderabad, futuristic manufacturing technologies to machines instead of importing
Telangana. The company has established provide advanced machining, assembly & comparable machines that has
capacities ahead of time through internal integration, surface treatment and heat resulted in significant cost savings
accruals in the past with a view to cater to the treatment, quality control capabilities
increased volumes in future. under one roof
The additional capacity available enables us to With in house expertise, the

expand our operations with ease to meet company designed and built, with
30
Plant Products Manufactured Sectors Primarily catered to Facilities offered

Unit 1 Complex nuclear assemblies Clean Energy - Civil Nuclear Design, Advanced
manufacturing such as fuelling Power, Defence and Space computerized numerical
machine head, thimble control (“CNC”)
package, top hatch beam, machining and quality
bridge and column and defence control
equipment, among others
Unit 2 Liquid propulsion engines such Space Advanced CNC
as Vikas engine, Cryogenic machining, assembly,
engines, Semi Cryo engine, specialised fabrication,
electro pneumatic modules for quality control and testing
use in Polar Satellite Launch
vehicle (“PSLV”) and
Geosynchronous Satellite
Launch Vehicle (“GSLV”) and
satellite valves
Unit 3 High Volume nuclear assemblies Clean Energy - Civil Nuclear Advanced CNC machining
including coolant channel Power, Defence and Space and quality control
assemblies, products such as
Ball Screws, Water Lubricated
Bearings, Roller Screws and
other nuclear site orders
EOU SOFC & Hydrogen units, Clean Energy - Fuel Cells & MNC Advanced CNC machining,
electrolysers, ASP assemblies for Aerospace assembly, special
Clean Energy, high precision processes, and quality
equipment to Aerospace MNCs control
Unit 4 This is a supporting unit and - Rough machining
undertakes rough machining
Unit 5 This is a supporting unit and - Surface treatment, heat
undertakes surface and heat treatment and special
treatment processes
Unit 6 - Adibatla Sheet metal components and Clean Energy - Fuel Cells, Hydel Advanced Machining,
enclosures for Clean Energy - and others Fabrication, Integration,
Fuel cells; critical structures for Cable Harnessing
Clean Energy - Hydel & Waste to Assembly
Energy sectors
Electronics Manufacturing
Systems - Cable Harnessing
Assemblies
Our Company does not have dedicated production lines to manufacture identified products and our facilities are fungile across all the
sectors that gives us a greater flexibility in terms of utilization of our capacity.
Diversified vendor base
The Company sources wide variety of materials are directly procured and supplied materials within the prescribed timelines.
specialized raw materials including Inconel, by our customers. .
17-4 PH, SS 410, 13-8 MO from various Raw material prices vary from market
vendors depending upon the requirement of Given that raw material expenses constitute to market, and our supply chain team
a project that we undertake. Majority of the a significant portion of our overall cost, we accordingly analyses the arbitrage in
specialised raw materials are imported from benefit majorly from a strong, spread out and different markets to take possible
authorised vendors. Over the decades, the diversified supplier base. This enables us to advantages of such variations by
company has developed a diversified negotiate favourable terms and even avail purchasing larger quantities from the
vendor base thereby eliminating better discounts. Additionally, we believe that cheaper source. The Company has a
dependence on certain vendor our diversified supplier base helps us in stringent vendor qualification process
minimizing supplier risk on account of low which enables us to keep a periodic
In Clean Energy - Fuel Cells sector, majority supplier dependency. check on our suppliers with regard to the
of raw materials are procured from quality of materials supplied and the
customer directed sources and the company The Company doesn’t have any long-term corresponding prices. We use these
will entering into price contracts with contracts with any of our raw material details for negotiating purchases in the
vendor an year ahead; any subsequent suppliers, however, we have maintained long future and for quality claims, which we
increase in price is a pass through. In certain term relationships with our major suppliers believe is a very important aspect of our
instances, specifically in Space sector raw that enable us to obtain good quality raw business operations.
Experienced and well-qualified management team
MTAR is primarily led by Parvat Srinivas The Company’s stable growth momentum In addition, our mid-level management
Reddy who has over three decades years is also attributable to a strong is supported by our trained personnel
of extensive work experience in management culture fostered by an and skilled workers who benefit from our
manufacturing and construction sectors. entrepreneurial spirit, each business regular in-house training initiatives. The
In addition, the company's technical and vertical being managed by experienced Company emphasizes on execution with
corporate management team has and hands-on segment business heads utmost efficiency and with minimum
substantial experience in Clean Energy having in-depth technical and industry failures. Further, our personnel policies are
- Civil Nuclear Power, Fuel Cells, Hydel & knowledge of the segments that we cater aimed towards recruiting talented
others, Space and Defence sectors, which to. These business heads are instrumental individuals, facilitating their integration,
enables it to tap the potential market in establishing and maintaining and promoting the development of their
opportunities, manage client expectations relationships with our customers. skills. The company has a modest
as well as proactively respond to changes
in the market conditions.
Track record of healthy growth in financials
We increased our revenue at a CAGR of 29.14%

during the last five fiscal years, from Rs. 1595.97 Mn
in Fiscal 2017-18 to Rs. 5733.47 Mn in FY 2022 -23.
We posted an EBITDA of Rs. 1539.62 Mn in FY 2022-
23 from Rs. 318.75 Mn in FY 2017-18 at a CAGR of
37.02%. Our PAT was Rs. 1040.75 Mn in FY 2022-23
compared with Rs. 54.23 Mn in FY 2017-18, a CAGR
of 80.56 %
32
MTAR intends to enhance its green product portfolio further by expanding

its presence in Clean Energy Vertical
6,488 11,729
Rs. Mn, Order book as on Rs. Mn, Order book as on
March 31, 2022 March 31, 2023
Capitalise on industry trends
Clean Energy Civil Nuclear Power:

Government has announced construction
of 14 reactors on a fleet mode. Nearly
Expand Product Portfolio Rs. 500 Mn of orders are expected in FY Enhance the customer base
2023-24 from Kaiga 5 & 6 reactors as
MTAR is working on enhancing its NPCIL intends to ousource the Develop new relationships with
product portfolio by developing new construction of reactors to a private customers, both in India and abroad,
products player. In addition, there could be inflow in order to address lucrative
of orders from fleet reactors opportunities in the Clean Energy
In FY 2022-23, the company has - Civil Nuclear Power, Fuel Cells and
developed ASP assemblies; Clean Energy Fuel Cells: Clean Energy others, Space & Defence sectors
dispatched around Rs. 75 Mn worth fuel cells market is projected to witness a
of orders CAGR of 30% - 35% over the next decade. Accordingly, we have added many
Bloom Energy that is a pioneer in new customers in FY 2022-23; the
Initiated the development of Small stationary fuel cells space is expected to company is discussion with lot
Satellite Launch Vehicle project register a massive growth that provides more customers that are into new
powered by semicryogenic MTAR a lucrative growth potential. Also, technologies
technology as world is witnessing the transition into
Clean Energy, the energy storage systems The company continues to
market and other Clean Energy vertical participate in seminars &
such as Hydel, Wind shall witness a international expos to build &
significant growth develop network with leading
Expand Clean Energy &
foreign multinational companies
Aerospace Verticals
Space - ISRO has launched a constella-
MTAR aims to expand its Clean tion of 36 satellites for One web twice
Capacity Augmentation
Energy vertical, accordingly, the in FY 2022-23. Furthermore ISRO is also
company is in discussions with gearing up for prestigious missions such
various customers that are into as Chandrayaan 3, Gaganyaan etc. catering
battery storage systems, hydrogen to increased volumes driven by growth The company shall be taking up
storage systems, Wind Energy etc. in number of launches, MTAR aims to project specific investments to
increase our wallet share with ISRO by establish new facilities based on
In addition, the company strategises addressing opportunities including thrust the business case and augment the
to expand its presence in chambers, light alloy structures, motor capacities in bottle neck areas
Aerospace vertical. The company casings etc.MTAR seeks to expand its MNC
has added reputed customers such Aerospace vertical, accordingly, added Selectively look at technological
as GKN Aerospace, Collins various new customers in FY 2022-23 projects to enhance engineering
Aerospace, Thales, among others competence, increase market share,
and has initiated discussions with Defence – The company is expecting to achieve operating leverage in key
lot more customers obtain Defence license in FY 2023-24, markets and strengthen cost
which enables it to be a manufacturing competitiveness in the market
partner to foreign MNCs that are looking
to cater to Indian Defence industry
Optimise Operational efficiencies

Reduce costs through economies of scale with increase in volumes,
employment of earnings acquired in manufacturing end products, and a robust
supply chain for sourcing of raw materials
Adopting cutting edge technologies to reduce product cycle time , there by

augmenting the capacities
Embracing digital solutions for effective utilisation of the machinery
As on March 31, FY 2018 - 19 FY 2019- 20 FY 2020 - 21 FY 2021 - 22 FY 2022 - 23

Order book by
2,437 3,451 4,159 6,488 11,729
size (Rs. Mn)
Opening order book, New orders in Orders executed in Closing order book,
FY 2022-23 FY 2022-23 FY 2022-23 FY 2022-23
6,488 10,655 5,413 11,729
All figures are in Rs. Mn

34
Track record of sustainable growth in the

last few years
The Company has posted healthy margins, indicating a sustainable business
(Rs. Mn) (Rs. Mn) (Rs. Mn)

1836.71 2137.74 2464.32 3220.06 5733.47 537.16 579.66 830.92 944.33 1539.62 391.99 313.18 460.83 608.81 1040.75
FY 19 FY 20 FY 21 FY 22 FY 23 FY 19 FY 20 FY 21 FY 22 FY 23 FY 19 FY 20 FY 21 FY 22 FY 23
Definition Definition Definition
Growth in sales net of taxes (if any) Earnings before the deduction of Profit earned during the year after
interest, depreciation, extraordinary deducting all expenses, provisions and
Why is this measured? items, tax and other income taxes
It showcases the Company’s ability to Why is this measured? Why is this measured?
enhance sales, a number that can be
compared with sectorial peers It is an index that showcases the This measure highlights the strength
Company’s ability to generate a surplus of the business model in enhancing
What does it mean? following the expensing of operating shareholder value
costs
What does it mean?
The company has witnessed an What does it mean?
accelerated growth compared to industry It ensures that adequate surplus is
average as the sectors company is It helps create a robust growth engine, a available for reinvestmen in Company's
catering are witnessing significant growth large part of which could be available for operations
reinvestment
Value impact
Value impact Value impact
Aggregate sales increased by 78% to
Rs. 5,733.47 Mn in FY 2022-23 due to The Company clocked an EBITDA of The Company reported net profit of Rs
increase in wallet share with existing Rs. 1,539.62 Mn with an YoY growth of 1,040.75 Mn in FY 2022-23, a 70.95%
customers & addition of new customers 63.04% YoY increase, indicating healthy growth in
(detailed in the report) profits, following increased revenues and
WIP levels as part of business growth
(%) (%) (x)

29.24 27.11 33.72 29.33 26.85 21.75 19.60 19.33 15.13 19.96 4.58 10.58 10.26 13.37 10.72
Definition Definition Definition
EBITDA margin is a profitability measure It is a financial ratio that measures a This is derived through the division of
used to assess a Company’s ability to Company’s profitability and the efficiency EBIT by interest outflow
generate a surplus on a rupee of sales, with which its capital employed in the
expressed as a percentage business Why is this measured?
Why is this measured? Why is this measured? Interest cover indicates the Company’s
comfort in servicing interest – the higher
The EBITDA margin provides an insight RoCE is a useful metric for comparing the better.
into the Company’s earning capacity, profitability across companies based on
which can be compared across the amount of capital they use – What does it mean?
companies within the same sector especially in capital-intensive sectors.
A Company’s ability to meet its interest
What does it mean? What does it mean? obligations, an aspect of its solvency, is
Enhanced RoCE can influence valuation arguably one of the most important
This demonstrates Company's ability to and perception. factors in assuring sizeable returns to
absorb interest and tax outflow after shareholders.
depreciation Value impact
The Company's ROCE has improved due Value impact
Value impact to increased revenues from existing The Company's interest cover
The company has registered an EBITDA verticals and new verticals is maintained at healthy levels
margin of 26. 85% as against the guided
margin of 29% +/- 100 bps primarily due
increase in employee benefit expenses
because of salary correction exercise
taken up in Q4
Sectorial Revenue break up
Sector FY19 (Rs. Mn) FY20 (Rs. Mn) FY21 (Rs. Mn) FY22 (Rs. Mn) FY23 (Rs. Mn)
Rs. Mn %* Rs. Mn %* Rs. Mn %* Rs. Mn %* Rs. Mn %*

Clean Energy Civil
240 13.04 260 12.17 553 22.43 457 14.19 438 7.64
Nuclear
Clean Energy - Fuel Cells
& others 1,128 61.41 1,375 64.34 1,227 49.79 2,016 62.61 4417 77.04
Space 291 15.84 271 12.69 582 23.62 483 14.99 494 8.62
Defence 77 4.21 84 3.94 13 0.51 81 2.53 151 2.64
Products & Others
101 5.49 146 6.85 90 3.65 183 5.68 233 4.07
Total Revenue from

Operations 1,837 2,138 2,464 3,220 5733
%* represents revenue generated from a sector as a % of revenue from Operations

36
Order book Manufactured Capital
Our order book has posted a CAGR of Our assets, manufacturing equipment and technologies constitute
36.92 % over FY 2019-23 and is expected our manufactured capital.
to witness a significant growth over the
coming years.
(Rs. Mn) (Rs. Mn) Revenue less cost of good sold (Rs. Mn)
2437.44 3451.34 4159.39 6488.01 11729.15 625.62 721.67 801.53 1162.51 2,690.39 1211.10 1416.07 1662.79 2057.55 3043.08
Our robust order book ( revenue) The Company increased the The Company increased the extent of
provides ample visibility of continuous manufactured value of products year on value added to materials
revenue growth as well as sustainable year in-line with the increased revenue
profitability
Social Capital
Our relationships with communities and partners (vendors, suppliers and customers) influence our
role as a responsible organisation.
(Rs. Mn) Nos

1836.71 2137.74 2464.32 3220.06 5733.47 53 51 57 65 75
FY 19 FY 20 FY 21 FY 22 FY 23 FY 19 FY 20 FY 21 FY 22 FY 23
The Company increased revenues, an index of the value created for customers
Human Capital
Our management, employees form a

part of our workforce, the experience
and competence enhancing value.
(Rs. Mn) (Rs. Mn)

1456.49 1726.09 1828.98 2485.32 4521.58 435.08 516.26 530.40 707.77 923.63
FY 19 FY 20 FY 21 FY 22 FY 23 FY 19 FY 20 FY 21 FY 22 FY 23
Total expenses have increased in line The Company has invested a

with the revenue growth progressively larger amount in employee
remuneration, underlining its role as a
responsible employer
Procurement (Rs. Mn) CSR investment(Rs. Mn) Taxes paid(Rs. Mn)
617.01 1065.55 1072.38 1840.23 4846.90 NA NA 7.0 9.65 11.70 23.56 142.15 187.61 213.46 368.16
The Company procured a larger quantum The Company enriched communities in The Company addressed the timely
of resources through the years, the geographies of its presence payments of taxes and other statutory
strengthening procurement economies dues
38
We look forward to an accelerated growth in Clean Energy &

Space verticals over the coming years
The MTAR management explains operational performance in FY 2022-23 and various strategic initiatives the
company is working upon
The company has clocked highest ever 70.95% increase.
revenues of Rs 5,733.47 Mn in FY 23 as
1. How was the performance against Rs. 3220.06 Mn. in FY 22, 78.05% The company has a closing order
Q of the company in FY 2022-

23?
increase, maintaining the accelerated
growth momentum in line with our
guidance. We post an EBITDA of
book Rs. 11729.4 Mn for the year
ended March 31, 2023. The company
has also taken up various business
Rs. 1539.62 Mn. in FY23 as compared to strengthening initiatives including
Rs. 944.33 Mn. in FY22, 63.04% increase, development of new products,
representing a healthy growth in augmentation of capacities in bottle
absolute profits. Our Profit After Tax neck areas and enhancement of
stands at Rs. 1,040.75 Mn in FY23 as management bandwidth.
against Rs. 608.81 Mn in FY 22,
MTAR has consistently developed new Vehicle with a payload capacity of up

2. What are the new product products and technologies since its to 500 Kg powered by 100-ton engine
Q
development initiatives the inception. In FY 23, we have commenced in the first stage and 10-ton engine in
the supplies of sheet metal assemblies the second stage with Liquid Oxygen
company has taken up in FY and enclosures through our new sheet & Kerosene as propellants. The
2022-23? metal vertical and dispatched around Rs. 100-ton semi cryogenic engine once
331.30 Mn of orders in the year under developed could be a game changer
review. for the company in a technological
perspective as the engine can be
The company has developed ASP used in the launch vehicles with
assemblies and initiated the qualification higher payload carrying capacity
process for cable harnessing assemblies as well by varying the number of
for Solid Oxide Fuel Cells in Clean Energy engines
sector. MTAR has started working on the
development of Small Satellite Launch
MTAR has been adding lot of new MTAR strategizes to tap new markets
Q
3. How is the company customers over the past two years to and enhance its product portfolio in
progressing on customer provide the business with more current markets by adding
diversification? opportunities for growth. In FY 2022-23, customers across various verticals,
we have added customers such as GE thereby providing further impetus to
Power from Clean Energy – Hydel sector its growth. Historically, the company
and Collins Aerospace, Thales Aerospace, has a long standing relationships with
GKN Aerospace, among others in all its existing customers and we aim
Aerospace vertical. The company is also to become a strategic partner to its
in discussion with customers that are into new customers as well.
Energy Storage systems and Hydrogen
storage systems.
The company has reduced the Net in qualification process due to lack of
Q
4. Did the company take Working Capital days to 230 for the year raw material.
initiatives to reduce Net ended 31st March 2023 as against 275
Working Capital days? days for the year ended March 31, 2023. As we commence the batch and
There was a reduction in receivable days volume production of our new
due to shorter transit time for products, the company is working on
exports as the global supply chains reducing its inventory days by
started restoring normalcy after rocky streamlining the raw material
three years. There was increasing in our procurement. Increase in revenues
inventory days since the company has coupled with emphasis on reduction
procured material ahead of time of inventory days is expected to result
specifically for the development of new in lesser than 200 days of Net Working
products including sheet metal Capital by end of FY 2023-24.
assemblies, enclosures, ASP assemblies
and cable harnessing to avoid any delay
For FY 2023-24, we have guided for a In addition, Rs. 1,000 Mn of orders

closing order book of Rs. 15,000 Mn inflow is expected in Space division
Significant order inflows of Rs. 5,000 from ISRO & various other MNC
5. Where do we stand in terms
Q
Mn are projected in Civil Nuclear Power Aerospace customers. There could
of order book by end of FY sector as NPCIL is planning to outsource be Rs. 600 - 700 Mn order inflows
2023-24? the construction of Kaiga 5 & 6 reactors in Clean Energy - Hydel and other
to private player on a tender basis. The sectors.
private entity that wins the bid has to
procure the sub systems from pre-
qualified vendors as per the tender
conditions.
The company targets a revenue of Rs. Accordingly, the company is
Q
30,000 Mn over the next five years. targeting to improve its market
6. Does the company has a Positive industry growth in the sectors share with existing customers, tap
roadmap for growth over the of our presence is expected to transfer new opportunities such as storage
into accelerated inflow of orders from systems and expand its customer
next five years?
our customers. MTAR expects to derive base in existing verticals.
this revenue from the volume ramp up of
existing products, increase in wallet share
with existing customers and revenue
ramp from new customers.
In FY 2023-24, The company has guided Space is poised to register a YoY
Q
7. What is the business for 45%-50% increase in revenues growth of 40% where 15% - 20%
outlook for FY 2023-24? compared to FY 2022-23. Our EBITDA growth shall be derived from orders
levels are projected to be at 28% +/-100 by ISRO and 45%-50% growth shall
bps. While there shall be a healthy be registered from MNC Aerospace
growth in Clean Energy – Fuel Cells, sector. There shall be 20% increase
Hydel and others, Clean Energy - Civil in revenues of Defence vertical in FY
Nuclear Power shall witness a growth 2023-24 compared to FY 2022-23.
of 40% backed by a robust order book Nearly Rs. 1200 – 1300 Mn revenue
of around Rs. 1,930 Mn by end of FY shall be generated from products
2022-23. division due to addition of ASP
assemblies.
The company intends to grow The company has a healthy debt to
Q
8. How is the company
organically and it shall be funding its equity ratio and similar levels are
planning to fund its growth? growth organically through internal
expected over the next five years as
accruals and debts. MTAR has established our internal accruals and debt limits
capacities ahead of time to cater to the will be sufficient to fund the projects
current growth. We shall be we are currently in discussion with
carrying out project specific investments and to augment our capacity in bottle
to foray into new verticals like energy neck areas.
storage systems, hydrogen storage
systems etc. based on the business
potential of each project.
40
Global Economic Overview
Global uncertainties including As per IMF, the baseline forecast is for Inflation’s return to target is unlikely
inflationary pressures and supply chain growth to fall from 3.4 percent in 2022 before 2025 in most cases.
contraints are expected to impact profit to 2.8 percent in 2023, before settling at Public debt as a ratio to GDP soared
margins of the organisations across 3.0 percent in 2024. Advanced economies across the world during COVID-19
various sectors. International Monetary are expected to see a pronounced growth and is expected to remain elevated.
Fund projections forecast sluggish growth slowdown, from 2.7 percent in 2022 to 1.3 However, emerging and developing
for most of the major economies in 2023 percent in 2023. economies are expected to farewell
with a gradual recovery in 2024 compared to advanced economies
Source: IMF, Economic Times
Regional Growth % 2023 2022

World Output 2.8 3.4
Advanced economies 1.3 2.7
Emerging and Developing economies 4.0 3.9
Source: IMF, World Bank

Indian Economic Review
International Monetary Fund (IMF) had maintaining fiscal responsibility with showing momentum, from the Goods
projected that India would be the enhanced capital expenditure that pro- and Services Tax (GST) to the ease of
fastest-growing economy in the world with vides a strong foundation for long-term doing business and the Production Linked
a growth rate of 5.9% in FY 2023-24, despite growth and ensures sustainable develop- Incentive (PLI) schemes. Opportunities
confronting considerable challenges such as ment for India. are emerging in renewables, aerospace,
financial sector turmoil, inflationary pressures, and Defence as the world transitions to
effects of the Russia-Ukraine war, and the The budget has increased capital a green and connected future. Building
persistent impact of the Covid-19 pandemic expenditure on important infrastructure a futuristic competency in these sectors
over the past three years. The IMF's bi- projects that will create a strong will require focusing on R&D, investments
annual report stated that India's headline foundation for long-term growth and in technology transfers, global tie-ups,
retail inflation is expected to ease up, from help India achieve sustainable and incentivizing private investments
6.7 per cent in the previous year to 4.9 per development. India has also been rising along with collaboration across
cent in 2023-24, which is a clear indication of investment in the green economy, academia, industry, and the government.
India's economic prowess and its unwavering including clean and renewable energy, With the right reforms and disciplined
determination to overcome even the toughest looking forward to the conversion of this execution, India’s manufacturing sector
of obstacles. fiscal responsibility into a medium-term can reach $4.5 trillion, taking its GDP
framework anchoring India's public share to 22 percent by 2047 (against a
IMF acknowledged India's efforts in finance. base projection of $2.5 trillion with a 17
leveraging digitalization to overcome the percent share in GDP), which is both a
challenges posed by the Covid-19 pandemic, Indian manufacturing sector is set to necessity and an opportunity for India to
which has not only helped the country witness a significant growth as unfold golden age of manufacturing
weather the storm but also created new Government is placing for a wide- Source: Economic Times, IMF
opportunities for growth and employment. ranging push on manufacturing.
The recent Unionbudget balances between
addressing development needs and Broad government reforms have started
Y-o-Y growth of the Indian economy
FY18 FY 19 FY 20 FY 21 FY 2021-22 FY 2022-23

Real GDP
7.2 6.1 4.2 6.6 8.7 7.2
growth (%)
Source: Economic Times, IMF
Growth of the Indian economy, FY 2022-23
Q1 FY 2022-23 Q2 FY 2022-23 Q3 FY 2022-23 Q4 FY 2022-23

Real GDP
13.1 6.2 4.3 6.1
growth (%)
Source: Economic Times, IMF
IMF's growth outlook for FY 2024
India 5.9%
China 4.5%
Spain 2.0%
Euro Area 1.4%
1.3 %
France
US 1.1 %
Germany 1.1 %
Japan 1.0 %
Italy 0.8%
Source: IMF
42
Divisional Review
Clean Energy
Globally the shift to renewable energy is transformation of power systems If world has to achieve its carbon
gaining momentum. Economies depend globally. Renewables, including solar, neutrality targets, electricity has to be
on reliable and affordable delivery of wind, hydro, waste to energy, Hydel and generated from various sources of Clean
electricity for sustainable development. others, are at the centre of the transi- Energy.MTAR is focusing on enhancing its
At the same time, the need to address tion to a less carbon-intensive and more product portfolio in various verticals of
climate change is driving a sustainable energy system. Clean Energy to contribution to the
global transition to low carbon economy
Clean Energy - Civil Nuclear Power
Indian government is committed to emissions annually, compared to emissions Power Station and Rajasthan Atomic Power
growing nuclear capacity and has set that would have been generated by Project respectively, two 1,000 MW power
ambitious targets to increase the number equivalent electricity generation from plants at the Kudankulam Nuclear Power
of civil nuclear reactors. Civil nuclear conventional coal-based thermal power Project and one 500 MW Prototype Fast
power currently comprises three per cent plant. Breeder Reactor at Kalpakkam. In addition,
of India’s total electricity generation government wants to outsource
Currently, 22 reactors with a combined construction of Kaiga 5 & 6 reactors 700
One of the major growth drivers for capacity of 6.7 GWe are operational in the MWe eachto major private player on a mega
India’s nuclear programme is the country, 8 reactors with combined package mode with a target to finish the
consistently increasing demand for capacity of 6.0 GWe are under construction. construction of reactor in 4 years
electricity. The current capacity of the To strengthen the domestic nuclear supply
fossil fuel driven power plants is prone to chain in line with the government’s The Centre has accorded ‘in-principle’
supply chain interruption largely as India ‘Atmanirbhar Bharat’ initiative, the approval for the site at Jaitapur in Maha-
is a net importer of coal. Dependence government has devised a policy to increase rashtra for setting up six nuclear power
on imported energy resources and the the capacity by three-fold and announced to plants with a total capacity of 9.9 GWe in
inconsistent reform of the energy sector construct 14 reactors in fleet mode with a technical cooperation with France. The
are challenges to satisfying rising demand. single timeframe. The government plans nuclear equipment industry in India is set to
Additionally, the conventional power to increase nuclear capacity from 6.7 GWe grow rapidly with the government sharpen-
generation technologies are highly to 22.4 GWe by 2031 on the progressive ing its focus on the sector as it plans India’s
polluting in nature. With rising carbon completion of projects under construction transition into low carbon economy. NPCIL
neutrality goals and targets, India is and accorded sanction. is expected to roll out tenders for fleet reac-
focusing on clean power generation tors (planned expansion market) in the near
through renewables and nuclear In the next three years, capacity addition of to medium term in a phased
technology. India’s nuclear power sector is 5,300 MW is planned on completion of two manner. The total investment for building
saving 41 million tonnes of carbon dioxide 700 MW units each at Kakrapar Atomic these reactors would be Rs 1,760-1,800
billion. Of this, Rs 350-435 billion would be
equipment market. This growing market
opportunity in civil nuclear power is spans. As of 2019, nuclear power plants assemblies, among others, not just for
expected to increase opportunities for with 2.6 GWe capacity were in the the new pressurized heavy water nuclear
domestic suppliers present in this sector. refurbishment stage, which is expected to reactors, but also for refurbishment of the
With rising contract volume, while new rise to 3.5-4.0 GWe by 2025. existing reactors enables it to address the
entrants would plan to make in-roads into massive opportunity available in civil
the industry, high entry barriers especially Opportunity for MTAR nuclear power sector.
in technology, reliability, and manufacturing
capability will give an edge to the MTAR caters to 20-25% equipment portion Source: NPCIL, World Nuclear Association,
established players. of the overall order for a 700 MWe PHWR CRISIL Research
nuclear plant. The Company supplies 14
The combined after-market revenue, different equipment to the nuclear island,
including maintenance and which translates into an addressable market
refurbishment during FY 2015-19, which opportunity size of Rs. 7-8 Bn per reactor.
was valued at Rs. 5.5 Bn-6 Bn is estimated The total equipment addressable
to reach Rs. 9 Bn-10 Bn from FY 2020-25E. opportunity for MTAR stands at Rs. 70-80
Over the next five years, the maintenance Bn over the next decade from fleet reactor
and refurbishment market is anticipated orders.
to expand around 1.7x on account of
more reactors completing 18-year life MTAR has facilities to address orders from 4
New-build market (Rs billion) Overall capital cost (Rs. bn) Equipment cost (Rs. bn)
Operational reactors* 110-120 22-28
Under-construction reactors** 680-720 130-170
Planned expansion (medium to long term) 1,760-1,800 350-435
Source: NPCIL, World Nuclear Association,
CRISIL Research
Reactors under construction
Under-construction reactors Construction start State Type Gross capacity (Gwe)

PFBR 2004 Tamil Nadu FBR 0.5
Kakrapar 4 2010 Gujarat PHWR 0.7
Rajasthan 7 & 8 2011 Rajasthan PHWR 0.7*2
Kudankulam 3 & 4 2017 Tamil Nadu PHWR 1*2
Gorakhpur 1, & 2 2018 Haryana PHWR 0.7*2
Total 6.0
Source: NPCIL, World Nuclear Association,

CRISIL Research
New planned reactors

New reactors planned State Type Gross capacity (Gwe)
Gorakhpur 3 & 4 Tamil Nadu FBR 0.7 * 2
Chutka 1 & 2 Gujarat PHWR 0.7 * 2
Mahi Banswara - 1, 2, 3 & 4 Rajasthan PHWR 0.7 * 4
Kaiga 5&6 Tamil Nadu PHWR 0.7 * 2
Kudankulam - 5 & 6 Haryana PHWR 1.0 * 2
Total 9.1
Source: NPCIL, World Nuclear Association, CRISIL Research
44
Increase in India’s nuclear capacity,

Increase in nuclear capacity in India
for 2019-2030P
GWe GWe Maintenance
22.4 6.7 6.0 9.1 22.4
6.5-7.5
6.7 4.2-4.5
1.4-1.6 2.4-2.6
Current Under Planned Total

FY 2021 - 22 FY 2030 - 2031E Capacity Construction Capacity
Source: NPCIL, World Nuclear Association, CRISIL Research Source: NPCIL, World Nuclear Association, Source: NPCIL, World Nuclear Association,
CRISIL Research CRISIL Research
Rs. 500 Crs of orders expected from Kaiga 5 & 6 reactors that shall be outsourced to a major
private player
Key MTAR- Key MTAR

Projects projects in
Executed progress
FY 2022 - 23
• Fuelling Machine • Fuelling Machine Head

Head • Sealing and
• Coolant Channel Shielding Plug
Assemblies and other assemblies for Kaiga
products and GHPVR projects
• Ball Screws • Fuel Transfer System
• Water Lubricated • Fuel Locator Assembly
Bearings • Fuelling Bridge &
Column
Clean Energy - Fuel Cells
Fuel Cells Industry Potential
Energy generated from fuel cells is commercial Stationary fuel cell systems need for precious metal catalysts and
emerging is one of the reliable sources are utilised for backup power, powering gives Solid Oxide an electrical efficiency
of renewble energy as world is wit- remote locations, stand-alone power that exceeds that of conventional power
nessing transition into Clean Energy. At plants for off-grid towns and cities, source - 60% as compared to 40% - 50%
present, bulk of the electricity in the distributed generation for residential and
power grid is generated at centralised commercial buildings, and co-generation Data centres are key to the future cell
power plants, with natural gas, coal, and (in which excess thermal energy from fuel market growth, and Bloom Energy is well
nuclear power as the most common cell process is used for heat). These fuel positioned in this market. While data
fuels. However a much smaller, though cell applications find more reliance for centres are energy intensive, their
growing amount of electricity is being commercial applications such as data operators are both looking to reduce
produced through distributed generation centers and servers, hospitals, cellular their carbon footprint and get power
– technology that generates electricity towers. according to a timetable that local
at or near where it will be used. Energy electric utilities can't meet
storage is supporting this new grid As per Frost & Sullivan, global fuel cell
system, with high efficiencies and more market will grow at a Compounded From the cost perspective as well, the
distributed power source. annual growth rate (CAGR) of 15.4% cost of fuel cell systems has declined
between 2022 and 2030, with revenues by 20% over the past five years. As fuel
Fuel cells are deployed across stationary increasing from USD 1.06 bn to USD 3.33 cells find more commercial applications
applications, such as primary power bn. The United States, South Korea and and higher reception in the market,
source and power back-up, Japan will remain as leading markets for the demand for fuel cells will help to
transportation, including automobiles, stationary fuel cells. The stationary fuel bring economies of scale and aid in the
buses, utility vehicles, and scooters and cell market has approximately 50% active reduction of prices. For example, scaling
bicycles; and portable power options for competitors, but the top four account for fuel cell production from 10,000 to
applications, including laptops, cellular 85.2% of total installed capacity. With a 50,000 units can reduce unit costs by as
phones, power tools, military equipment, 44% global market share, Bloom leads much as 7-10%, without technological
battery chargers, unattended sensors, the top four companies, followed by breakthroughs. This cost reduction goes
and unmanned aerial and underwater Doosan-HyAxiom, FuelCell Energy and up to 40-45% with production volume of
vehicles. Panasonic. 200,000 units i.e., 20x times growth in
fuel cell production.Manufacturing costs
Stationary fuel cell systems are utilised There are mulitple kinds of stationary fuel largely drive the cost for fuel cells, which,
for backup power, powering remote cells, from phospheric acid and in turn, is largely determined by
locations, stand-alone power plants for molten carbonate to alkaline, however, production volume. Today, fuel cell
off-grid towns and cities, distributed as per Frost & Sullivan solid oxide is on manufacturing is manual and smaller in
generation for residential and track to dominate sales due to the number scale, with material cost forming a lower
commercial buildings, and co-generation and scale of the projects. Solid Oxide fuel share of 10-30% for an annual production
(in which excess thermal energy from cells as those made by Bloom operate at a of 100-1,000 units. By taking advantage
fuel cell process is used for heat). These higher temperatures than any other kinds of production volume increases,
applications find more relevance for of fuel cells, which eliminates the the companies can achieve significant cost
reductions for several reasons.
46
Economies of scale will enable the mainly due to the different type of that of conventional power source - 60%
operational efficiencies by reducing the electrolyte material involved and the ionic as compared to 40% - 50%. Data centres
fixed costs species it conducts EU has set a target are key to the future cell market growth,
of producing 10 Mt of green hydrogen and Bloom Energy is well positioned in
Electrolysers domestically and importing 10 Mt by 2030. this market. While data centres are energy
Europe’s new REPowerEU targets and IRA intensive, their operators are both looking
Hydrogen electrolysers are devices that incentives in the US will further increase to reduce their carbon footprint and get
use electricity to split water into hydrogen the demand for green hydrogen from the power according to a timetable that local
and oxygen.. When electricity input to the current projection of 14 Mt per annum electric utilities can't meet
electrolyser is obtained from renewable to 28 Mt per annum by 2030, equivalent
sources like Wind and solar, then the to more than 280 GW of electrolyzer Bloom Energy Fuel Cells - Market
hydrogen produced is called green demand. Potential
hydrogen.
Globally several players have ventured In the clean energy segment, MTAR caters
Electrolyzers can range in size from small, into the development of electrolysers. to Bloom Energy USA, a market leader in
appliance-size equipment that is well- Currently, there are only a few electrolyzer the stationary fuel cell segment. Bloom
suited for small-scale distributed hydrogen OEMs in India with extensive production Energy’s sales are larger than those of the
production to large-scale, central facilities. and advanced technologies, next six players combined in the fuel cell
production facilities that could be tied presenting a significant opportunity for space; the industry which posted a 40%
directly to renewable or other India to become a global electrolyzer CAGR in the past four years (annual
non-greenhouse-gas-emitting forms of manufacturing hub that caters to domestic installations of 1GW in 2019) is expected to
electricity production. Similar to fuel cells, as well as international demands. witness a 35% CAGR over the next 10 years
electrolyzers comprises of an anode and a Currently, the cost to produce and operate and Bloom Energy is targeting a revenue of
cathode separated by an electrolyte. electrolyzers is high as the technology is a USD 10 bn by end of CY 2030
Electrolyzers powered by different nascent phase, however, the need for
technologies function in different ways, precious metal catalysts and gives Solid Bloom Energy has signed a deal with South
Oxide an electrical efficiency that exceeds Korean conglomerate SK Group to provide
$4.5 billion of equipment and services,
Comparison of technology types of fuel cells

Electrical efficiency Major technology
Fuel cell type Operating temperature Typical stack size
(%) deployment players
Solid oxide fuel cell 500–1,000°C 1 kW – 2 MW 60% Bloom Energy
Polymer electrolyte membrane <120°C 1–100 kW 60% direct hydrogen Ballard
fuel, 40% reformed
fuel
Source: industry, CRISIL Research

accordingly, Bloom Energy shall be Key advantages of Solid Oxide fuel cells factor (of 95%) against 10-30% for solar/
deploying 500 MW of powerthrough 2024. supplied by Bloom Energy wind.
The ongoing partnership between Bloom cells: The key advantages of Bloom Lower production footprint and no
Energy and SK ecoplant was initiated three Energy’s fuel cells over traditional grid transmission lines: A 1 MW Bloom box
years ago and since then both the parties power comprise the following: takes only 170m2 of space as against
have transacted close to 200 MW of Competitively priced: Bloom Energy’s 22,257m2 by a solar PV (12,500% higher),
projects together, exceeding USD 1.8 penetration is increasing, with an annual while onsite generation eliminates T&D
billion of equipment and expected service reduction of 18% CAGR in product costs. infra requirements
revenue. The additional 500 MW to which The Company expects to be competitive
the SK Group unit has now committed, against traditional grid power in all 50 US Bloom Energy Electrolysers - Market
shall be delivered in the period 2022-2025. states by 2025 (penetration in 12 states Potential
South Korean government released a currently).
Hydrogen Economy Roadmap in 2019 While BE is still in the process of commer-
calling for 15,000 megawatts of stationary Uninterrupted power with high cializing its Solid Oxide (SO) electrolyzer,
fuel cells by 2040, which shows an efficiency: Bloom’s fuel cells are designed these are 20% more efficient than the PEM
immense potential available for fuel cells. to provide 24x7 power and enjoy a track electrolyzer (45kWh/kg vs. 55 kWh/kg).
Increasing public-private partnerships are record of no outages, compared with Higher efficiency might enable Bloom
also expected to result /in a faster grid power, while generating the highest Energy to gain market acceptance and
adoption of hydrogen-based applications. electrical efficiency of 65% among peers. price its Solid Oxide electrolyzer at a
premium to a PEM electrolyzer.
The total opportunity size from hydrogen Lower emissions: Fuel cells generate Electrolyzer business is project to generate
fuel cells is estimated at USD 300 Bn; 50% lower CO2 when compared with $500M in revenue for BE by 2026E. Higher
including other areas such as the US C&I the US base load power generation with rates of acceptance (+35% CAGR) and large
market and international no particulates (SOx and NOx). A recent orders for BE’s SO based electrolyzers shall
expansion, the total opportunity is study indicates that fuel cells are able to ramp up the production volumes
estimated at more than USD 2 Trn. Bloom reduce carbon reduction as effectively
Energy is targeting 30 - 35% CAGR over as renewables, given their high capacity Source: Industry, CRISIL Research, Economic
CY20-30E Times
Operating tem- Electrical efficiency Major technology

Fuel cell type Typical stack size
perature (%) deployment players
Alkaline fuel cell 90-120°C 1–100 kW 60% AFC Energy
Direct methanol fuel cell 30-130 °C 25-5 kW 40% SFC Energy
Phosphoric acid fuel cell 150–200°C 5–400 kW, 100 kW module 40% Doosan Corporation
(liquid PAFC) <10 kW (poly-
mer membrane)
Molten carbonate fuel cell 600–700°C 300 kW –3 MW, 50% Fuel Cell Energy
300 kW module
Solid acid fuel cell 220-280°C 10W - 10kW - SAFCell Inc
Source: industry, CRISIL Research
Parameter 2019 2030P Growth (x)

Fuel industry size Rs. 2.8 Bn Rs. 26.1 Bn 1.9
Fuel industry installations by 1.1 GW 5.0+ GW 4.5
MW
(Source: Industry data and publication, CRISIL Research)
Key
Opportunity for MTAR Products
being
MTAR is one of the key manufacturing Increased content per fuel cell: MTAR supplied by
partners to Bloom Energy and sole has been strategising to increase its MTAR
supplier from India market for SOFC & wallet share with Bloom Energy and • SOFC Units - Yuma &
hydrogen units and electrolysers. The developed lot of new products. In FY Keeylocko
Company has more that a decade of 2022-23, MTAR has commenced the • electrolyser Units
relationship with Bloom Energy. MTAR supply of sheet metal assemblies and • ASP assemblies
caters to 50% - 60% of of its typical enclosures • Sheet metal
hotbox requirement and has a 100% assemblies &
compliance record with it. enclosures
48
Clean Energy - Battery Storage Systems
Market Potential amplified the demand for longer duration The company is in final stages of
energy storage technologies. Addition- discussions with Fluence Energy that is
Energy storage is causing a significant ally, the utilization of both battery and into battery storage systems for supplying
disruption in the power industry, and the non-battery storage in various applications enclosures to their batteries. It has
year 2023 is poised to witness offers promising growth opportunities for potential to generate Rs. 150 - 200 Crs
unprecedented growth in storage players in this sector. The global momentum over the next couple of years, once the
solutions. towards efficient energy storage solutions is discussions are materialized.
continuing to build, marking a
As the electricity grid increasingly relies on transformative shift in the power industry. We have also initiated discussions with
variable load power generation, the ability Enervenue that is into Hydrogen Storage
to store this electricity becomes crucial to Opportunity for MTAR Systems. MTAR startegises to grow the
avoid supply disruptions and prevent the storage systems vertical in a significant
wastage of surplus energy through MTAR intends to foray into storage solutions way over the next five years.
curtailment. The widespread adoption of considering the exponential growth the
renewable energy sources worldwide has storage solutions sector is set to witness Source: industry, Frost & Sullivan
Clean Energy - Hydel, WInd Energy & Others
Market Potential - Hydro Power transition away from coal to help manage be on track with the Net Zero pathway
the fluctuations caused by intermittent solar
Hydropower currently generates more and wind supplies. Recently, government Opportunity for MTAR
electricity than all other renewable has approved the estimated investment of
technologies combined and is expected to USD 3.9 bnfor the 2,880-megawatt Dibang MTAR is catering to customers such as
remain the world’s largest source of project in Arunachal Pradesh Andritz, Voith, GE Power, among other by
renewable electricity generation into the supplying complex fabricated products
2030s. Henceforth, it will continue to play Market Potential - Wind Energy including draft tubes, spiral casings etc.
a critical role in decarbonising the power The company is also in discussion with
system. Wind is estimated to be one of the companies such as Enercon, Regen Power
predominant sources of power generation in Wind Energy for various products
India sees hydro power one of the renew- in the Net Zero Emissions by 2050 scenar- including rotar and stator assemblies
able sources of energy as key in its io, provided there are significant capacity
additions till 2030 in order to Source: industry, Economic Times
Divisional Review
Space
Indian Space Industry Market Potential Prestigious Missions in Pipeline enhance the reputation of ISRO in the
international Space community, and
India’s space program has earned world- ISRO has geared up to launch enables it to attract wider set of
wide recognition for launching lunar probes, Chandrayaan-3 in July 2023, a international customers for commercial
building satellites, ferrying foreign satellites follow-on mission to Chandrayaan-2 launches.
up and has even succeeded in reaching Mars to demonstrate end-to-end capability in
and stands out as one of the most safe landing and roving on the lunar Small Satellite Launch Vehicle Market
cost-effective in the world. surface. It consists of the Lander and
Rover configuration. While the orbiter is To capture the lucrative small satellite
Indian space sector, valued at $9.6 billion in devoid of all those payloads that are launching market, ISRO has developed
2020, contributes only about 2% of the global there in Chandrayaan-2, it will have a Small Satellite Launch Vehicle (SSLV)
space economy of about $470 billion. It only a little bit of payload. The primary with a view to transfer the technology to
targets to reach $13 billion by 2025 and, objective of Chandrayaan 3 is to take the industry and has successfully tested
further, aims by 2030 to capture about 10% the lander to the orbit of the moon and the technology in second developmental
of the global space economy i.e., a four to make it land flight. And the technology will be
five-fold growth in the next 5 to 6 years. transferred to the industry after
However, the growth could be much higher ISRO wants to Launch Aditya L1, India's successful qualification.
than the target set and experts opine that first solar mission, by the August 2023.
the global space economy could well be $1 Aditya L1 is very unique solar observation The rising demand for smaller satellites is
trillion in the next few years capability that ISRO is building for which expected to increase satellite
instruments have already been delivered, manufacturing in the nation and attract
In June 2022, PSLV-C53 launched three and ISRO is in the process of integrating international start-ups to the sector to
satellites DS-EO satellite, NeuSAR satellite, them in the satellite. The mission will be help incubate space tech enterprises
and SCOOB-I satellite, which was the second launched using PSLV rocket. Similar to here. Indian space launch eco system
dedicated commercial mission of NewSpace Chandrayaan missions, the spacecraft is expected to get a boost due to the
India Limited (NSIL). In October 2022, LVM3 shall be placed in a low earth orbit and, government's positive step towards the
in its first commercial launch placed 36 subsequently, the orbit shall be made inclusion of private players in the Indian
satellites of OneWeb in their intended more elliptical and launched towards L1 space ecosystem
orbits, one of the biggest commercial orders using on-board propulsion. The The launch services segment that was
executed by ISRO that has enhanced its spacecraft exit earth’s gravitational pegged at USD 600 million in 2020 is
reputation in global market. In March 2023, sphere of influence as it travels towards projected to grow at a CAGR of 13 per
ISRO has taken up the second launch for L1. From here, the cruise phase will start cent to reach USD 1 billion by 2025. The
One Web through LVM 3 to place another and the spacecraft will be injected into availability of low-cost satellite launch
constellation of 36 satellites in the orbit. With a large halo orbit around L1. The total vehicles coupled with mass production
two successful commercial launches of LVM3 travel time from launch to L1 would take will lead to demand from customers
for One Web, through the New Space India about four months. around the world. Indian private
Ltd, ISRO is confident of handling many more companies are working towards
such launches on demand for both LEO and Success of complex missions like capturing the space industry by using
GEO mission in the future. Chandrayaan 3, Aditya L1 will further innovative technologies
50
Indian space equipment market (Rs billion) by type, for FY17-FY25P
Segment CAGR (FY17-FY21) CAGR (FY21-FY25P)

Satellite -7.5% 6.0 – 7.0%
Launch systems -26.5% 10.0 – 11.0%
Source: ISRO, CRISIL Research
Total Number of Launches by ISRO

5 9 5 7 6 2 2 5
No of PSLV No of GSLV
Year
Launches Launches
2015 4 1
2016 6 1
2017 3 2
2018 4 3
2019 5 1
2021 1 1
2022 5 Nil
2015 2016 2017 2018 2019 2020 2021 2022
Privatisation of Space
6. Customization & Delivering of MTAR has been associated with ISRO
Government of India intends to enable sub-systems packages to NGEs from 1983. The company has
and promote Non-Governmental Entities 7. Space based services been a trusted partner to ISRO for the
and enable them to contribute to past four decades. It has proven capabili-
development of Indian Space eco sys- This has encouraged private players ties in manufacturing high-tech products
tem. Government policies are aimed at to involve in manufacturing of launch for PSLV, and GSLV like liquid propulsion
allowing Indian private players to become vehicles, satellites and provide launch rocket engines (Vikas Engine for PSLV),
independent actors in the space sector services. These developments might take cryogenic engine sub systems, electro
instead of being solely vendors or suppli- medium to long term in order to fully pneumatic modules etc.; these products
ers to the government programs. materialise. shall be used in the LVM 3 and PSLV for
the upcoming Chandrayaan 3 and Aditya
To facilitate private sector participation, Going forward, ISRO shall solely focus on L1 missions. The Company is also
the government has created the Indian development of new technologies, its manufacturing critical structure like grid
National Space Promotion and Authoriza- ambitious exploration and human fin for Gagaganyaan mission.
tion Centre (IN-SPACe), as a single spaceflight missions.
window, independent, nodal agency Increase in launches from ISRO due to
under Department of Space. The main Competitive landscape of space industry success of commercial launches over
mandate of IN-SPACe is to promote and the coming years is expected to provide
enhance the role of Non-Government Indian Space industry is marked with increased inflow of orders to MTAR.
Entities (NGEs) in the space sector high entry barriers as working with Space Furthermore, the company intends to
through hand holding, support, and by technologies entails advanced increase its wallet share.
providing them with a level playing field. technological capabilities, skilled talent o address opportunities including motor
It will also authorize the use of ISRO facil- pool,manufacturing prowess, quality casings, light alloy structures and thrust
ities by private companies, development assurance, reliability and state of the chambers through our new sheet metal
of Indian satellite systems, and launch art production facilities. As a result, the facility.
of rockets/ vehicles developed by the supplier
private sector. ecosystem of ISRO has very few MTAR is working on the design and
major players, with each development of Two Stage to Low Earth
Currently, the following Support is being operating in a niche monopolistic seg- Orbit Small Satellite Launch vehicle -
rendered from IN-SPACe to all the private ment of precision equipment manufac- Garuda 1. The Company shall be develop-
entities turing. However, ing 100 ton and 10 ton all liquid engines
recently many start ups have emerged in-house. It has forged an MOU with
1. Building Launch Vehicles and Satellites in Launch Vehicle space because of the IN-SPACe to take the support of ISROin
2. Sharing of ISRO facilities opportunities due to commercialization various areas including Avionics, Naviga-
3. Establishment of facilities in of Space tion Guidance & Control Systems,
Department of Space premises marketing etc.
4. Mentorship, Evaluation & consultancy Opportunity for MTAR
5. Launch campaign & launch Source: ISRO, Economic Times
Key
Products Key
being Products
supplied by under
MTAR development
• Vikas Engines
• Cyrogenic Upper Engine
assemblies including • Semi Cryo Engine
Turbo Pump, Booster • Small Satellite Launch
Pump and Gas Generator Vehicle
• Satellite Valve • Initiated discussions
• Structures for Gaganyaan
Divisional Review
Defence
The Indian Defence sector, the second largest fleet modernisation across all armed Medium Combat Aircraft (AMCA) Mk1
armed force is at the cusp of revolution services. Indian Defence industry gets INR projects. The deal between GE Aerospace
amidst the efforts by the Government to 5.94 lakh crore in Budget 2023-24, a jump and HAL, will aid in Government’s effort to
enable India achieve self-reliance. Defence of 13% over previous year. Government triple the exports and give India's defence
and Aerospace sector was identified as a of India aims to triple the value of India's ecosystem a much needed boost
focus area for the ‘Aatmanirbhar Bharat’ or annual defence exports to $5 billion over
Self-Reliant India initiative, with a formidable the next two years.To this end, the MTAR's Contribution to Defence
push on the establishment of indigenous government has been making diplomatic
manufacturing infrastructure supported efforts to export the Tejas. MTAR is present in the niche areas of
by a required research and development Defence. We have supplied 5 ton and
ecosystem Recently, General Electric Co's GE Aero- 10 ton actuators to LCA Tejas program.
space signed an MoU with Hindustan The Company has successfully delivered
India is positioned as the 3rd largest military Aeronautics Limited (HAL), the maker of the first articles of roller screws that are
spender in the world, with its defence budget LCA Tejas MK1, to jointly produce in India currently being imported from Rollviz
accounting for 2.15% of the country’s total the fighter jet engine, GE414. The GE414 Sweden. The company shall be executing
GDP. Over the next 5-7 years, the Govern- engines will be used for the LCA Tejas Mk2, Rs. 80 Mn worth of electro-mechanical
ment of India plans to spend $ 130 Bn for but also for the future Twin Engine Based actuators. However, the Company's
Fighter (TEDBF) and the Advanced presence is limited to niche areas and
Key over the past five years the revenues
Products from Defence are less than 5% of the total
revenue from operations
Magnesium Gear Boxes for Helicopters
Actuation Systems Source: Economic Times, CRISIL Research
Aerostructures
52
Opportunities and threats
Clean Energy Civil nuclear: Nearly Rs. energy sources; global fuel cell market is ex- could enhance order volumes for the
5000 Mn orders expected from Kaiga 5&6 pected to post a CAGR of 30% - 35% over the Company. Our sheet metal facility enables
reactors that shall be outsorced to a next 10 years that translates into healthy us to address new opportunities such as
private player. In addition, there will be growth for MTAR, strengthening the Com- motor casings, thrust chambers and light
order inflows from fleet reactors over the pany’s revenues. In addition, the market for alloy structures, including others. The
coming years. The orders from new electrolysers is expected witness a signifi- Company is also keep to tap the massive
reactors along with coupled reactor cant ramp up that shall further contribute opportunity available due to privatisation
refurbishment opportunities could result to the top line. MTAR has been adding new of Space, forged an MoU with IN-SPACe
in unprecedented growth of the domestic products in Clean Energy - Fuel Cells division for design and system realisation of Small
industry. Civil Nuclear power is marked to increase its wallet share with its clients; Satellite Launch Vehicle
with high entry barriers stringent supplied new products such as sheet metal
qualification criteria that could provide assemblies, enclosures, ASP assemblies in Defence: MTAR is catering to niche
incumbents an edge over others. The FY 2022-23. Increase in volumes for existing opportunities in Defence. Domestic
company has approximately 20- 25% products and addition of new products shall Defence eco system is witnessing an
equipment share in each nuclear reactor; enhance the topline in this vertical. accelerated growth due push by
the Company is expected to capitalise on Government of India on Atmanirbhar
increased orders (could be delayed The Company is supplying critical fabricated Bharat initiative.
by some quarters on account external structures for Hydel and Waste to Energy
uncertainities). MTAR has received sectors. In addition, MTAR has also initiated Any slow down in the industry growth in
Rs. 1350 Mn Cr of orders from fleet discussions with players in Battery Storage sectors of our presence might impact our
reactors systems, Energy Storage systems and Wind revenues due to reduced order inflows
Energy from our customers, which could be a
Clean Energy Fuel cells: Global major threat to us
governments are driving the transition Space: Increased launches from ISRO amidst
to a low carbon economy. Fuel cells are the success of recent commercial launches
efficient done for the companies lIke One Web
Company overview
Incorporated as a Company in 1999, MTAR a market leader due to its contribution to special process facilities. The Company’s
Technologies has emerged as a respected the Indian civilian nuclear power pro- clients comprise ISRO, NPCIL, DRDO,
player in India’s precision engineering gramme, Indian space programme, Indian Bloom Energy, Andritz, Voith, Hitachi
industry. The Company is engaged in the defence, global defence as well as global Zosen, Rafael and Elbit, among others.
manufacture of mission critical precision clean energy sectors. The Company is Owing to a wide product portfolio,
engineered systms for Clean Energy - Civil respected for having invested in state-of- MTAR is one of the top three suppliers
Nuclear Power. The Company emerged as the-art facilities comprising machining, that provide precision engineering
assembly, specialised fabrication, painting requirements to the Indian Civil Nuclear
and Power, Space and Defence sectors.
Segment wise or product wise performance
MTAR does not operate in the total revenue from operations in FY 2022- FY 2022-23 as against 39.0% of total
manner of different business segments. 23 as against 61% of total revenue from revenue from operations in FY 2021-22.
However, we do measure revenues operations in FY 2021-22. Revenue from Clean energy has witnessed a significant
based on various customer segments. domestic stands at 21% of total revenue growth in the year under review
Revenue from export stands at 79% of from operations in
Sector Revenue generated from customers Revenue generated from customers

in FY 2022 - 23 (Rs. Mn) in FY 2021 - 22(Rs. Mn)
Clean Energy - Civil Nuclear Power 438.01 457.00
Clean Energy - Fuel Cells & Others 4,417.20 2,016.00
Space 494.05 482.66
Defence 151.13 81.34
Products and Others 233..08 183.06
Total 5,733.47 3,220.06
Financial overview
Analysis of the profit and loss statement

Revenues: Revenues from operations (Including Current maturity of long-term owing to an increasing scale of operations
reported a 78.05 % growth from borrowings) due to Investment in New resulted in increased stock of raw
Rs. 3,220.06 Mn in FY 2021-22 to reach Capex. Return on capital employed, a materials and work in progress. The
Rs. 5,733.47 Mn in FY 2022-23. Other measurement of returns derived from inventory cycle increased from 193 days
income of the Company accounted for a every rupee invested in the business, of turnover equivalent in 2021-22 to
3.44% share of the revenues reflecting the increased by 44% from 13.88% in 246 days of turnover equivalent in FY
Company’s dependence on its core business 2021-22 to 19.96% in FY 2022-23 due to 2022-23. Growing business volumes
operations. increase in profit on account of increase resulted in an increase of 53.04 % in trade
in overall operations. receivables from Rs. 1,359.84 Mn as on
Expenses: Total expenses increased by March 31, 2022 to Rs. 2,081.16 Mn as
81.93% from Rs. 2,485.32 Mn in FY 2021-22 Applications of funds on March 31, 2023. All receivables were
to Rs. 4,521.58 Mn due to the increased Fixed assets (gross) of the Company secured and considered good and 90% of
scale of operations. Cost of materials primarily increased by 37.47% from Rs. receivables are not overdue. The
consumed, accounting for 54.89% share 2,669.88 Mn as on March 31, 2022 to Rs. Company contained its debtor’s turnover
of the Company’s revenues, increased 3,670.37 Mn as on March 31, 2023 cycle within 132 days of turnover
by 6.01% from Rs. 1,574.05 Mn in 2021-22 owing to an increase in Capex for our equivalent in FY 2022-23 compared to
to Rs. 3,147.23 Mn in FY 2022-23 owing sheet metal and specialised fabrication 154 days in 2021-22. Cash and bank
to an increase in the operational scale of facilities at Adibatla. Depreciation on balances of the Company decreased from
export revenues. Employees expenses, tangible assets increased by 27.91% from Rs. 669.24.00 Mn as on March 31, 2022
accounting for a 16.11 % share of the Rs. 137.96 Mn in 2021-22 to Rs. 176.47 Mn to Rs. 309.81 Mn as on March 31, 2023.
Company’s revenues, decreased by 5.87% in FY 2022-23 owing to an increase in fixed
from Rs. 707.77 Mn in 2021-22 to Rs. assets during the year under review. Invested Rs. 274.74 Mn in mutual funds
923.63 Mn in FY 2022-23. Finance costs of for immediate strategic initiatives. Other
the Company increased by 118.11% from Working capital management Current Assets increased by 82.33% from
Rs. 66.49 Mn in 2021-22 to Rs. 145.02 Mn Current liabilities of the Company Rs. 209.70 Mn as on March 31, 2022 to
in FY 2022-23. Increase in finance costs was increased by 84.98% from Rs. 1,653.51 Mn Rs. 382.35 Mn on account of increased
due to increase in term loans and working as on March 31, 2022 to Rs. 3,407.75 Mn as balances recoverable from government
capital loans. on March 31, 2023, due to increase in trade authorities and advances payable to
payables and advance received from suppliers.
Analysis of the Balance Sheet customers. The Current Ratio of the
Sources of funds Company stood at 2.04 at the close of FY Margins
The Equity capital employed by the 2022-23 compared to 2.80 at the close of The EBITDA margin of the Company
Company increased by 19.44% from Rs. 2021-22. Inventories including raw reduced from 29.33% in 2021-22 to
5,197.64 Mn as on March 31, 2022 to Rs. materials, work-in-progress and 26.85% iwhile net profit margin of the
6,208.12 Mn as on March 31, 2023. Long finished goods, among others, increased Company reduced by 75 basis points.
term borrowing increased by 115.66% from by 126.62% from Rs. 1,703.16 Mn as on
Rs.487.25 Mn as on March 31, 2022 to Rs. March 31, 2022 to Rs. 3,859.67 Mn as on
1,050.82 Mn as on March 31, 2023. March 31, 2023
Key Ratios
Particulars 2022-23 2021-22 Remarks

Debtor’s turnover ratio 3.27 3.02 Our debtors turnover ratio has
witnessed improvement due company
continuous effort in collecting
receivable before due date..
Inventory turnover ratio 1.13 0.85 Increase in ratio is due to
purchase of inventory for
ongoing projects.
54
Particulars 2022-23 2021-22 Remarks
Company is having healthy margins to

cover the interest expenses which is
approximately by 10 times the interest
Interest coverage ratio 10.72 13.37
cost. Interest coverage of company is
decreased compared with last year due to
Increase in term loan interest expenses.
The current ratio of company reduced due

Current ratio 2.04 2.80 to Increase in trade payables and Increase
in Advance from Cutomers.
Increase in ratio is due to new term loans

Debt-equity ratio 0.23 0.18 obtained for procurement of property,
plant and equipment.
Our operating margin has seen reduced

Operating profit
slightly in FY 2022-23 compared with last
margin (%) 27.10% 27.60%
year due to Increase in Employee benefit
expenses and Operational cost
Our net profit margin decreased slightly

Net profit margin (%) 18.49% 18.91% compared with last year due to Increase in
finance cost.
Our RoNW increased 49% compared with

Return on Net worth 18.25% 12.22%
last year.
Risks and concerns
At MTAR we believe that the risk, the Also, our increasing working capital We have constituted a board risk
manifestation of business uncertainty requirement could pose a threat to our management committee, apex risk
affecting corporate performance and liquidity, affecting our cash flows. In management committee and functional risk
prospects, is an integral part of business. addition, any delays in supply chain while management committee to manage risks at
Accordingly, the company identifies importing specialised raw material could various levels.
various risk through its enterprise risk disturb our production lines, thereby
management system, impacting our revenues This enables it to identify, categorize and
prioritize operational, financial and strategic
Majority of the company's revenue is However, the Company follows a business risks. The company is working on
derived from few customers, that could comprehensive enterprise risk adding lot of new customers, reducing
hinder our revenues in case we lose management systems, which is integrated working capital days and diversifying its
business from these customers with its operations. vendor base to address the above identified
risks; MTAR continues to spend significant
time, effort and human resources to manage
Internal control systems and their adequacy and mitigate such risks
MTAR’s internal audit system are addressed promptly. The audit actions, if necessary. It maintains constant
has Risks
been continuously
and concerns monitored committee reviews reports presented dialogue with statutory and internal
and updated to ensure that assets are by the internal auditors on a quarterly auditors to ensure that internal control
safeguarded, established regulations basis. The committee makes note of the systems are operating effectively
are complied with and pending issues audit observations and takes corrective
Information Technology
The Company undertook upgradation of Our facilities at Adibatla, Unit 2 and EOU operational efficiency, customer service,
technology in relation to customer order have been certified for ISO 27001:2013 decision-making and reduce manual
management and dispatches, production Information Security Management intervention and risks of system failures
planning and reporting, manufacturing System. and negative impacts these failures may
processes, financial accounting and have on the business, improving reliability
scheduling raw material purchase. We MTAR has further increased its of operations.
have carried out necessary upgrades investments in shop floor automation to
in our ERP system encompassing the reduce the cycle time and enhance
requirements from all business functions productivity by addressing product life
including production, finance, sales, cycle bottlenecks.
manufacturing processes, storage and
warehousing, inventory and human The company shall continue to focus on
resource management to have a investments in IT systems and processes,
greater control over the business. including backup systems, to improve
Human Resources
The Company has enhanced its man- The company with a modest attrition rate The Company’s industrial relations were
power to cater to future growth. We of 8.5% amicable. The Company had two
have taken up salary correction in Q4 FY recognised labour unions, with
2022-23 apart from regular increments to The Company’s personnel policies were registration numbers. There is no
ensure our employees who are backbone aimed at recruiting talent, facilitating labour unrest in the past eight years.
of our growth are fairly compensated as their integration into the Company,
per the industry standards. As on March encouraging the development of skillsets
31, 2023, the Company 603 staff and 952 and creating a mutually beneficial
workmen (including on and off rolls) and relationship to support performance and
1010 third party contractors. growth
Particulars FY 2022 - 23 FY 2021- 22

Staff, including on and off the rolls 603 476
Workmen including on and off the rolls 952 742
Third party contractors 1010 522
Total 2565 1740
Disclosure of Accounting Treatment
During the preparation of the financial has been followed by the Company. the last financial year as compared to the
statement of FY 2022 -23 the treatment, There is no discrepancy in Accounting previous financial year.
as prescribed in an Accounting Standard, Treatment as followed by the Company in
Cautionary statement
This statement made in this section projections, expectation and estimations statements’ within the meaning of
describes the Company’s objectives, which may be ‘forward-looking applicable securities laws and regulations
56
MTAR envisions to be 100% ESG complaint for a sustainable future; Nearly 85% of
the Company’s revenue is derived from manufacturing climate positive products in FY
2022-23
MTAR looks forward to expand our green product portfolio to manufacture

climate positive products
Our ESG Outlook
At MTAR, we believe companies have Progressive and proactive ESG policies A comprehensive ESG framework links to the
a key role to play in driving the global enable a sustainable business growth, cashflows in five
transition to a low-carbon economy, thereby enhancing value to all the important ways:
improving workplaces and gender stakeholders including investors,
representation, and improving customers, employees, suppliers and 1. Facilitating top-line growth
governance. Viewing our long-term wider communities. 2. Reducing costs
business model through a comprehen- 3. Minimising regulatory and legal
sive ESG lens is essential interventions
4. Increasing employee productivity
5. Optimising investment and capital
expenditure
Sl No Factor How a strong ESG proposition could help

1 Top-line growth • Helps to tap new markets and expand into existing ones
• Enhance the customer base with sustainable products
• Provides better access to resources through stronger
community and government relations
2 Cost Reductions • Low energy consumption helps in reducing the operational
costs
3 Minimising Regulatory & Legal interventions • Achieve greater strategic freedom through deregulation
• Provides access to subsidies and government support
4 Increasing employee productivity • Increases employee motivation
• Enables to attract talent through greater social credibility
5 Optimising investment and capital expenditure • Enhance investment returns through a better capital
allocation towards sustainable plant and equipment
helps in avoiding investments that may not pay off be
cause of longer-term environmental issues
Our Environment Commitment
In any business a decision that has product portfolio that contributes in a improve the sustainability of our
positive impact on environment leads to small way to global transition into low operational processes we have installed
better investment outcomes and carbon economy. Nearly 85% of our solar rooftops at Unit 2 and EOU, which is
increased wellbeing of our stakeholders revenues in FY 2022-23 are derived from expected to reduce our energy
and society at large. MTAR intends to clean energy segment including civil consumption significantly. The Company
continuously improve the environmental nuclear power and fuel cells. In addition, is the process of installing solar rooftops
impact of our business by we are in discussions with several other at Unit 3 and Adibatla
manufacturing climate positive products customers in Clean Energy. The Company
and by making our operational processes has a substantial potential to benefit Our facilities at Unit 2, EOU and Adibatla
more sustainable through the growth of low-carbon are certified for ISO 14001:2015,
products and services Enviromental Management System.
Over the years we have strategized to
grow our clean energy segment To reduce our energy consumption and
significantly to enhance our green
Revenue as % of total revenue

from operation FY 19 FY 20 FY 21 FY 2021-22 FY 2022-23
Clean Energy – Fuel Cells &
61.41% 64.34% 49.79% 62.61% 77.04%
Hydel, and others
Clean Energy – Civil nuclear
13.04% 12.17% 22.43% 14.19% 7.64%
Power
Total 74.46% 76.51% 72.22% 76.80% 84.68%
58
Our Social Commitment
MTAR believes that ability to maintain healthy, positive, fair, and ethical relationships with all the stakeholders including employees,
customers, suppliers, and communities promotes business growth and competitiveness
MTAR is working on
increasing the
number of women
in the organisation
to promote gender
diversity, equity and
inclusion
Diversity, Equity and inclusion Employee Welfare and Training
The Company policies are framed in such At MTAR, we have been recognised for Our facilities at Adibatla, Unit 2 and EOU
a way to promote diversity, equity and a culture of excellence, marked by high have been certified for ISO 45001:2018
inclusion among the employees. We people retention, knowledge-enhancing Occupational Health and Safety. The
believe in an inclusive growth and workplace, extension of one’s workplace Company also measures the employee
provide equal opportunities to everyone. to the large exercise of nation-building, satisfaction index with the most recent
However, due to inherent nature of and talent investments including annual measurement being 86.0% with
manufacturing sector, the gender gap is recruitment, retention and training) Our a net promoter score of 24. The result
wider inspite of conducive policies. The policy on Environment, Health and Safety of our best-in-class talent management
Company is placing additional efforts to emphasizes a safe and healthy work practices have been high people
increase the number of women in the environment for employees. retention with an average attrition rate of
organisation. 8.5% over the last few years
Vendor Development
Customers
The Company is known for prompt
MTAR is known for exceptional quality of
payments among its vendors. It believes in
products it, which enabled it to develop a
the empowerment of local vendors; nearly
long standing relationships with all its
30% of our raw material is procured from
primary customers. The Company acts as
local vendors. We also organise training
a strategic partner to its primary
sessions to our vendors to raise awareness
customers. We regularly obtain feedback
on various technical and sustainability
from our customers to improve the
issues
quality of our products further
Promoting cultural heritage by encouraging arts
Community Impact
MTAR has allocated Rs. 11.70 Mn funds in FY

2022-23 towards various CSR initiatives
including education & skill development,
health, eradication of poverty and promotion
of cultural heritage. The company has adopted
two schools near Adibatla and Nadargul to
enhance the infrastructural facilities
MTAR believes that equitable and inclusive

growth is essential for the growth of any
economy. Hence, the company strives to create
a positive impact on the society through its
various CSR initiatives. Specifically the company
looks forward to contribute to eductaion &
skill development to groom the young talent
for building tomorrow's India.
Supporting the underprivileged for a more equitable society`

60
Our Governance Commitment
Our governance component ensures ethical and anti-corruption practices, compliance, transparency, and commitment to shareholder
and voter rightsw
Board of directors
Board of Directors at MTAR, our

strategic direction is influenced by
our Board of Directors, who comprise
of professionals and technologists of
standing. Of our ten Directors, five
are independent including two
technologists from Civil Nuclear,
Space and Defence sectors.
We have passed a resolution to

reappoint our Independent directors
for a five year term. and rest of the
directors are appointed on rotation
basis. Appointment and removal of
directors is under board's purview as
per the Companies Act, 2013
Investors Code of conduct Cyber Security
The Company organises quarterly The Code of Conduct of the Company

earnings call and provides a broad annual enshrines policies relating to ethics, The Code of Conduct of the Company
revenue guidance. We regularly interact bribery and corrupwtion. The policy enshrines policies relating to ethics,
with analyst community and maintain covers our employees and all bribery and corruption. The policy
transparency with them about our stakeholders including board of directors, covers our employees and all
ongoing business our wholly owned subsidiary, suppliers, stakeholders including board of directors,
contractors and business partners. The our wholly owned subsidiary, suppliers,
company regularly organises code of contractors and business partners. The
conduct training to all the stakeholders company regularly trainin
Executive Compensation Dividend policy
As per our current approved dividend

Remuneration to directors, key policy not exceeding 35% of the annual
management personnel and senior standalone net profits of the Company
management including fixed and (Profit After Tax) can be given at any
incentive pay is determined by NRC point of time
committee, which ensures the level and
composition of remuneration is
reasonable and sufficient to attract,
retain and motivate senior executives of
the quality required to run the Company
successfully
ESG Rating
MTAR has been rated as 2 - "good" on a 5 rating scale by Dun & Bradstreet (D&B) for the company's practices on environmental, social
and governance aspects
1 - Very Good
5 - Very Poor
Overall ESG Environmental Social Governance
Industry Average MTAR Technologies Limited
ESG rankings compared to companies in similar industry according to Sustainable Industry Classification System R
Environmental Ranking Peer Percentile
91 to 100
Good 0 20 40 60 80 100
Environmental Ranking
91 to 100
0 20 40 60 80 100
Good
Social Ranking
71 to 90
Medium 0 20 40 60 80 100
Governance Ranking
31 to 50
Very Good 0 20 40 60 80 100
62
Overview Enterprise Risk Management System
Businesses operate in a volatile environment At MTAR, we have a Enterprise Risk The corporate policy (and in effect our
surrounded by constant uncertainties, one Management system to assess, ability to manage organisational risk)
needs to prepare for an uncertain and volatile and identify significant threats to is framed by our Board of Directors,
future that includes technological disruption, business and prioritize risk response comprising esteemed professionals
geopolitical risk, threats to the global supply strategies with decades of industry experience to
chain, climate change, data security etc. ensure a sustainable business growth.
The company has constituted a risk The Company’s governance principles,
Carrying out business operations in a management committee at the board level including overall risk tolerance, are
seamless way specifically in an increasingly to identify systematically about the multiple directed by the Board of Directors.
volatile and complex business environment categories of risks the Company could be Apart from risk management
calls for proactive, integrated enterprise risk exposed to so that we can institute committee, our Board is assisted by
management solutions encompassing people, appropriate risk mitigation processes for various committees with specific
data and infrastructure. Anticipating, each that could neutralise the managerial functions
prioritising and mitigating risk enables to build bias of envisioning a scenario as we would
a sustainable business in long-term. like it to be rather than as it actually is or
could possibly become.
MTAR has a three tier risk management committee structure to activate a response that is agile, improvisational, and iterative to
manage strategic, financial, operational and compliance risks
Committee Roles & Responsibilities

Board Risk Management Committee • Assessment of strategic risks
• Summary review of operational, financial and compliance risks
Apex Risk Management Committee • Assessment of Strategic risks
• Assessment of financial risks
• Summary review of operational and compliance risks
Functional Risk Management Committee • Review of operational and compliance risks of respective functions
Customer Concentration Risk
More than 75% of our revenue is

derived from Bloom Energy and in
case of any event of loss of business,
our revenues could be impacted
adversely, which may lead to a
significant impact on our financial
condition and cash flows.
MTAR acts as a strategic partner to

its customers. There has been no
instance of prominent customer
attrition though proportions in MTAR uses Enterprise Risk Management Framework to assess and address
revenues from a customer could financial, and governance risks
vary as per the market conditions. In
addition, Clean Energy - Solid Oxide Supply Chain risk
fuel Cells is witnessing growth rate We source majority of raw materials from the third party suppliers except for few
at 30% - 35%, CAGR that shields us materials that are issued by the customer. Raw material supply and pricing can be
from uncertainities.The Company also volatile due to a number of factors beyond our control, including global demand and
closely tracks the business growth supply, general economic and political conditions, transportation and labour costs,
and industry trends of its prominent labour unrest, natural disasters, restrictions on the import of raw material, competition,
customer and redirects its strategy to import duties, tariffs and currency exchange rates and there are inherent uncertainties
mitigate the risk. Also, all our assets in estimating such variables, regardless of the methodologies and assumptions that
are mostly fungible across various we may use. For instance, failure of our suppliers to adhere to the delivery schedule or
sectors and we can cater to other the required quality could hamper our production schedule and therefore affect our
customers as well. business and results of operations. However, the Company procures the raw material
well ahead of time and maintains a diversified supplier base spread across geographies
The company has added several new to navigate through supply chain disruptions. We have increased our inventory levels
customers that have potential to turn during COVID 19 pandemic and Russia Ukraine crisis to insulate our business operations
into key strategic accounts 3-4 years from supply chain disruptions
down the line.
Working Capital Management

Forex Volatility risk Labour Unrest Risk
As the company is witnessing an
Our manufacturing activities are
accelerated growth, our working
Nearly 79% of our revenue is derived labour intensive, require our manage-
capital requirements are increasing.
from cutomers outside India because ment to undertake significant labour
Our future working capital
of which the Company transacts in interface, and expose us to the risk of
requirements may differ from
foreign currencies industrial action. We are also subject
estimates as a result of, among other
primarily USD. Appreciation or to a number of stringent labour laws
factors, unforeseen delays or cost
depreciation of the Indian rupee that protect the interests of workers,
overruns, unanticipated expenses,
including legislation that sets forth
regulatory changes, economic against the U.S. Dollar and other
foreign currencies may affect our detailed procedures for dispute
conditions, engineering design
results of operations. Our exports are resolution and employee removal
changes, weather related delays,
greater than imports, moderating the and legislation that imposes financial
technological changes and additional
forex fluctuation risk. obligations on employers upon
market developments.
retrenchment.
Our working capital requirements Our treasury team has set up a hedg-
The Company has flexible human re-
may increase if there is an increase in ing policy in place to hedge an amount
to certain extent in FY 2023-24 source policies to adapt to the chang-
receivable days and inventory days.
ing requirements and has maintained
Our net working capital days as on
amicable relations with the workmen
31st March 2023 stands at 230 days
so far. MTAR believes that it's
as against 275 days as on 31st March
employees are primary reason for the
2023. There was a reduction in our
company's growth and has taken up
receivable days in FY 2022-23 as the
salary corrections in Q4 FY 2022-23
supply chains started to streamline.
However, our inventory days have
increased due to procurement of
material ahead of time for new
product development activities. How-
ever, the company target to reduce
NWC in FY 24 to lower than 200 days
64
Security System Risk Expansion Risk

MTAR has is working on the development of
Disruption or failure of our IT systems could have new products like Small Satellite Launch Vehi-
significant effect on our operations. A large-scale cle, cable harnessing assemblies, electro-
IT malfunction could disrupt our business or lead mechanical actuation systems etc.
to disclosure of sensitive Company information, Introduction of new products across different
particularly since our Company caters to sectors sectors, enhancing our current capabilities,
such as nuclear and space and defence, which pushing the existing products into new markets
are of national importance and involve dealing might have unanticipated results, affecting
in highly sensitive information). In addition, it is investments. The Company had moderated this
possible that a malfunction of our data system risk through the technical know-how gained by
security measures could enable unauthorized it over the past five decades. Since
persons to access sensitive business data, inception, we have developed a culture to train
including information relating to our intellectual our team on a regular basis in new technolo-
property or business strategy or those of our gies, and recruit seasoned professionals with
customers. The Company has systems in place for vast experience while extending our business in
continuous monitoring of preventive, detective, a new direction that enabled us to develop new
and corrective security controls to protect products consistently. As a result, each
information assets from compromise or to limit expansion has been marked by a low learning
the damage to the organization should a compro- curve and quicker revenues accretion, strength-
mise occur. ening the overall competitiveness.
Talent Management Risk
MTAR operates in a niche engineering space across diversified sectors that demands highly specialised knowledge,
which makes the Company dependent on its Promoters, Directors, senior management and other key managerial
personnel, including skilled project management personnel. The loss of any of its Promoters, Directors, senior
management and other key managerial personnel or an inability to manage the attrition levels in different employee
categories may significantly impact our business, growth prospects, results of operations and cash flows. We face
competition to recruit and retain skilled and professionally qualified staff. Due to the limited availability of skilled
personnel, competition for senior management and skilled engineers in our industry is intense. We may experience
difficulties in attracting, recruiting and retaining an appropriate number of managers and engineers for our business
needs, which might call for an increase in our pay structures to attract and retain such personnel. The Company has
policies in place for an effective talent management, provides fair compensation packages, and ample opportunities for
the professionals to grow up the ladder. Historically, the Company has witnessed a very low attrition rate.
Environment Health and Safety Break down of critical equipment
Environmental laws and regulations in India have

More than 60% of our revenue is derived the
been increasing in stringency and it is possible
mass production of the products. Breakdown
that they will become significantly more stringent
of critical equipment could impact the business
in the future. Stricter laws and regulations, or
significantly especially in mass production where
stricter interpretation of the existing laws and
failure to deliver the products on time could divert
regulations, may impose new liabilities on us or
the order to the competitors. In addition, many
result in the need for additional investment and
of these equipment demand international service
management’s time which could impact our
support, with long lead times, which could affect
business, financial condition or prospects.
our delivery schedule. The Company has enough
Furthermore, poor awareness and adherence to
spare capacity to address the breakdown issues
safety standards can impact people safety and
and undertakes preventive maintenance on a
production. The Company takes all the necessary
regular basis
measure to adhere to regulatory norms of
environments, monitor the safety standards across
all the units and imparts safety & environment
related trainings to its employees on a regular
basis
Subbu Venkata Rama Behara Parvat Srinivas Reddy Praveen Kumar Reddy Akepati
Mr. Subbu Venkata Rama Behara is the Mr. Parvat Srinivas Reddy is the Managing Mr. Praveen Kumar Reddy Akepati is
Chairman and Independent director on Director on the board of our Company. an Executive Director on the Board
our board. He has more than 20 years of Mr. Parvat Srinivas Reddy has nearly three of our Company. He holds a
manufacturing industry expertise and decades of industry experience in bachelor’s degree in electronics and
held senior leadership positions in various Manufacturing and Construction. He has communication engineering from
renowned firms including TATA, Hyundai, been associated with MTAR for the past the Faculty of Engineering, Andhra
among others. He has immense global 13 years. He holds a bachelor’s degree in University. Prior to becoming a
exposure with proven leadership abilities industrial production engineering, from Director of our Company, he was
in transforming the organisations by the University of Mysore and a Master’s associated with our Company for
formulating the growth strategies. He was degree in science, specialising in industrial over 19 years, and has previously
recognised as India’s 100 most powerful engineering from College of Engineering, served as our vice president of
CEOs by ET. Currently, he is acting as an Louisiana Tech University. Mr. Reddy is projects. Currently, he heads
independent director to firms including instrumental in setting up and growing business development function in
Sona BLW Precision Forgings Limited and exports vertical in the Company. the company
KPIT Technologies Limited.
Anushman Reddy Mitta Venkatasatishkumar Reddy G
Mr. Anushman Reddy Mitta is an Executive Mr. Venkatasathishkumar Reddy

Director on the board of our company. Gagapatnam is a Non-Executive
He is responsible for heading exports and Director on the Board of our Company.
supply chain divisions in MTAR; He holds a bachelor’s degree in
instrumental in growing exports vertical in mechanical engineering from
the Company. He has nearly nine years of Bangalore University, and a master’s
experience in manufacturing and worked degree in industrial engineering, from
in global organisations including Bradley University. Apart from his
AeroVironment. association with our Company, he is a
director on the board of Rasun Ace Infra
Private Limited and Acecorp Group
Private Limited.
66
Udaymitra Chandrakant Muktibodh Krishna Kumar Aravamudan Gnana Sekaran Venkatasamy
Mr. Udaymitra Chandrakant Muktibodh Mr. Krishna Kumar Aravamudan is an Dr. Gnana Sekaran Venkatasamy is an
is an independent director on our board. independent director on our board. independent director on our board. He
He has decades of experience in Civil He has a rich experience in Banking & is an eminent Missile Scientist and the
Nuclear Power Plant Technology in India. Financial sectors, and served SBI for more Chief Designer of the Long-Range Ballistic
During his tenure at NPCIL he acted as a than 39 years in various capacities where Missile System AGNI 5. He has held key
Technical Director of NPCIL and was also a he had also taken up the role of Managing roles in DRDO including Chief Controller
member on the board of NPCIL. After the Director. He was nominated by SEBI as R&D (Missiles & Strategic Systems),
completion of Master’s training with Public Interest Director on the Board of Programme Director to Agni Missiles.
distinction in Nuclear Science and Central Depository Services (India) During his tenure in DRDO he has carried
Engineering in Bhabha Atomic Research Limited from July 2016 to July 2019. out extensive research, developed many
Centre (BARC) in 1981, he joined Reactor Currently, he is also an Director on the critical technologies for Indian Defence
Processes Group of erstwhile Power Board of SBI Payment Services Private Industry and involved in framing several
Project Engineering Division, latter Ltd, a JV between State and of India and policies in the areas of joint collaborations
incorporated as Nuclear Power Hitachi, and various and technology acquisitions with in the
Corporation of India Ltd., of the other companies. country as well as abroad. He is honoured
Department of Atomic Energy. with various prestigious awards such as
Scientist of the year award, Path Breaking
Research/Outstanding Technology
Development Award, Technology
leadership awards, among others.
Ameeta Chatterjee
Ms. Ameeta Chatterjee is an
independent director on our board. She is
an IIM Bangalore Alumnus and has more
than two decades of corporate experience
in developing, managing and executing
large projects across infrastructure sectors
in India and UK. Ameeta, currently also
holds independent director board positions
in Nippon Life India Asset Management
Company, Jubilant Ingrevia Limited Listed
and JSW Infrastructure. In the last five
years, Ms. Ameeta has also founded Ekam
Foundation Mumbai, a non-government
organisation that provides subsidised
surgeries and drug support to
underprivileged children in Mumbai.
Parvat Srinivas Reddy,

Managing Director Gunneswara Rao Pusarla, CFO Raja Sekhar Bollempally, COO
Akepati Praveen Kumar Reddy, Anushman Reddy Mitta, Dr. Nagarajan Vedachalam,
Executive Director Executive Director Executive Project Director SSLV
Pusparaj Satpathy, VP HR Shubham Sunil Bagadia, Company

Secretary & Compliance officer
68
N. Mondaiah, SVP Operations - D. Sidda Reddy, VP Operations

K. Sreeramulu Reddy, SVP Quality Clean Energy - Fuel Cells
Civil Nuclear Power & Products
Ch. Ramesh Reddy, VP Operations A. V. Sudhakar Reddy, VP Operations A. Vara Prasad, VP Operations
Civil Nuclear Power & Defence Space Specialised Fabrication
Lakshmana Babu - GM Aerospace Niladri Banerjee - GM Quality Laxmi Sundari - GM Electronics
Sarvana Raj Guruswamy - GM Sheet

Metal
Statutory
Reports
MTAR Technologies Limited Annual report FY 2022-23
70
Notice
NOTICE IS HEREBY GIVEN THAT THE 24TH ANNUAL "RESOLVED FURTHER THAT Mr. P. Srinivas Reddy,
GENERAL MEETING OF THE SHAREHOLDERS OF MTAR Managing Director or Mr. Shubham Bagadia, Company
TECHNOLOGIES LIMITED WILL BE HELD ON FRIDAY, Secretary and Compliance Officer of the Company, be
11 TH DAY OF AUGUST, 2023 AT 03:00 P.M. THROUGH and are hereby severally authorised to do all such acts,
VIDEO CONFERENCING (“VC”) / OTHER AUDIO- deeds, matters and things as may be necessary to give
VISUAL MEANS (“OAVM”) TO TRANSACT THE FOLLOWING full effect to make the resolution effective.”
BUSINESS:
5. REVISION AND INCREASE OF REMUNERATION PAYABLE
TO MR. P. SRINIVAS REDDY AS MANAGING DIRECTOR OF
ORDINARY BUSINESS: THE COMPANY W.E.F., 01.04.2023
To consider and if thought fit, to pass with or without

1. To receive, consider, approve and adopt the modification(s), the following resolution, as a Special
Standalone and Consolidated Audited Balance Sheet as Resolution: -
at 31st March, 2023, the Statement of Profit and Loss
and Cash Flow Statement for the year ended on that “RESOLVED THAT pursuant to the provisions of Section
date together with the Notes attached thereto, along 178 and 197 read with Schedule V and other applicable
with the Reports of the Auditors and Directors thereon. provisions, of the Companies Act, 2013 (including any
statutory modification(s) or re-enactment thereof for the
2. To appoint a director in place of Mr. A. Praveen Kumar time being in force) and the Companies (Appointment
Reddy (DIN: 08987107) who retires by rotation and being and Remuneration of Managerial Personnel) Rules, 2016,
eligible, offered himself for re-appointment. as amended from time to time and Regulation 17 of SEBI
(Brief Profile: Annexure A to this Notice). (LODR) Regulations, 2015, the recommendation of the
Nomination and Remuneration Committee and approval
3. To appoint a director in place of Mr. G.V. Satish Kumar of Board of Directors, the consent of the members of the
Reddy (DIN: 06535717) who retires by rotation and being Company be and is hereby accorded for revision and
eligible, offers himself for re-appointment. increase in remuneration payable to Mr. P. Srinivas Reddy
(Brief Profile: Annexure A to this Notice). as Managing Director of the Company w.e.f. 01.04.2023
from Rs. 240 Lakhs to Rs. 400 Lakhs per annum which is
divided into 75% as fixed and 25% as Variable Pay with
SPECIAL BUSINESS: authority to the Nomination and Remuneration
Committee to determine the actual variable pay based
on the performance of the company, besides the following
4. RATIFICATION OF PAYMENT OF REMUNERATION TO THE perquisites and allowances which shall also be payable
COST AUDITOR FOR THE FINANCIAL YEAR 2023-2024: to Mr. P. Srinivas Reddy as Managing Director during his
tenure:
To consider and if, thought fit to pass with or without
modification(s), the following resolution as an Ordinary i) Vehicle facility: Innova Crysta with Driver.
Resolution:
ii) Medical Insurance: For the Managing Director and
“RESOLVED THAT pursuant to the provisions of Immediate Family members."
Section 148(3) and all other applicable provisions of the
Companies Act, 2013 and the Companies (Audit and "RESOLVED FURTHER THAT, in case of inadequacy of
Auditors) Rules, 2014 (including any statutory profits in any of the financial years, Mr. P Srinivas Reddy
modification(s) or re-enactments thereof, for the time be paid and allowed same remuneration, perquisites and
being in force), and on recommendations of the Audit allowances as minimum remuneration for a period not
Committee and as approved by the Board of Directors, exceeding three years."
consent of the Members be and is hereby accorded for
payment of remuneration to M/s. Sagar & Associates, "RESOLVED FURTHER THAT Mr. Shubham Bagadia,
(Registration No. 000118) Cost Accountants to conduct the Company Secretary & Compliance Officer of the
audit of the cost records of the Company for the Financial Company, be and is hereby authorized to take all such
Year ending 31st March 2024 on a remuneration of Rs. steps as may be deemed necessary, desirable proper or
3,50,000/- (Rupees Three Lakhs Fifty Thousand) per expedient and file necessary e-forms with the Registrar of
annum plus out of pocket expenses and applicable taxes." Companies, Telangana to give effect to this resolution and
for matters connected there with or incidental thereto.”
6. RE-APPOINTMENT AND REMUNARATION PAYABLE TO 7. RE-APPOINTMENT OF MR. B V R SUBBU (DIN: 00289721)

MR. P. SRINIVAS REDDY AS A MANAGING DIRECTOR OF AS AN INDEPENDENT DIRECTOR OF THE COMPANY
THE COMPANY W.E.F., 01.09.2023. (Brief Profile: Annexure A to this Notice).
(Brief Profile: Annexure A to this Notice)
To consider and, if thought fit, to pass with or without To consider and if thought fit, to pass with or without
modification(s), the following resolution as a Special modifications, the following resolution as a Special
Resolution: Resolution:
“RESOLVED THAT pursuant to the provisions of Sections “RESOLVED THAT pursuant to the provisions of Sections
178,196,197 and 203 read with Schedule V and other 149, 150 and 152 and other applicable provisions, if any,
applicable provisions, if any, of the Companies read along with Schedule IV to the Companies Act, 2013
Act, 2013 and the Companies (Appointment and (‘the Act’) [including any statutory modification(s) or
Remuneration of Managerial Personnel) Rules, 2014 and re-enactment(s) thereof for the time being in force],
Regulation 17 of SEBI (LODR) Regulations, 2015 (including the Companies (Appointment and Qualifications of
any statutory modification(s) or re-enactment thereof for Directors) Rules, 2014 and Regulation 17 and any other
the time being in force), approval of the members be and is applicable provisions of the Securities and Exchange Board
hereby accorded for the re-appointment of of India (Listing Obligations and Disclosure Requirements)
Mr. P. Srinivas Reddy (DIN: 00359139) as Managing Regulations, 2015 (‘SEBI Listing Regulations’), as
Director of the Company, for a period of 5 (Five) years amended from time to time, Nomination and Remuneration
with effect from September 01, 2023 (whose term of Policy of the Company, the performance evaluation
office expires on 31.08.2023) on the terms and conditions made by Board of Directors earlier and based on the
including remuneration as set out in the Explanatory recommendation of the Nomination & Remuneration
Statement annexed to the Notice convening this Committee and the Board of Directors of the Company,
Meeting, with liberty to the Board of Directors (herein Mr. B V R Subbu (DIN: 00289721), who was appointed as
referred as Board) to review or revise the terms and an Independent Director of the Company for a term of
condition as mentioned in the annexure.” 3 (Three) consecutive years commencing from December
5, 2020 up to December 04, 2023 (both days inclusive)
"RESOLVED FURTHER THAT Mr. P. Srinivas Reddy, and who being eligible for re-appointment as an
Managing Director, be allowed and paid during his Independent Director has given his consent along with
tenure, a remuneration of Rs. 400 Lakhs per annum which is a declaration that he meets the criteria for independence
divided into 75% as fixed and 25% as Variable Pay with under Section 149(6) of the Act and the rules framed
authority to the Nomination and Remuneration thereunder and Regulation 16(1)(b) of the SEBI Listing
Committee to determine the actual variable pay, based on Regulations, be and is hereby re-appointed as an
the performance of the Company, besides the following Independent Director of the Company, not liable to retire
perquisites and allowances which will also be payable to by rotation, to hold office for a second term of 5 (Five)
Mr. P. Srinivas Reddy as Managing Director during his consecutive years on the Board of the Company
tenure. commencing from December 5, 2023 up to December 04,
2028 (both days inclusive)."
i) Vehicle facility: Innova Crysta with Driver and
ii) Medical Insurance: For the Managing Director and "RESOLVED FURTHER THAT Mr. P Srinivas Reddy,
Immediate Family members." Managing Director and Mr. Shubham Bagadia,
Company Secretary & Compliance Officer of the
"RESOLVED FURTHER THAT, in case of inadequacy of Company be and are hereby severally authorized to do
profits in any of the financial years, Mr. P Srinivas Reddy all the acts, deeds and things which are necessary for
be paid and allowed same remuneration, perquisites and the re-appointment of Mr. B V R Subbu as an Independent
allowances as minimum remuneration for a period not Director of the Company, including filing of the
exceeding three years." necessary forms with the Registrar of Companies,
Telangana at Hyderabad.”
"RESOLVED FURTHER THAT Mr. Shubham Bagadia,
Company Secretary & Compliance Officer of the Company, 8. RE-APPOINTMENT OF MR. A. KRISHNAKUMAR (DIN:
be and is hereby authorized to file necessary e-forms with 00871792) AS AN INDEPENDENT DIRECTOR OF THE
the Registrar of Companies, Telangana and to do all such COMPANY (Brief Profile: Annexure A to this Notice).
acts, deeds, matters and things as may be deemed necessary,
desirable, proper or expedient for the purpose of giving To consider and, if thought fit, to pass with or without
effect to this resolution and for matters connected modifications, the following resolution as a Special
therewith or incidental thereto to give effect to this Resolution:
resolution.”
72
"RESOLVED THAT pursuant to the provisions of Sections Regulations, 2015 (‘SEBI Listing Regulations’), as amended
149, 150 and 152 and other applicable provisions, if any, from time to time, Nomination and Remuneration Policy
read along with Schedule IV to the Companies Act, 2013 of the Company, the performance evaluation made
(‘the Act’) [including any statutory modification(s) or by Board of Directors earlier and based on the
re-enactment(s) thereof for the time being in force], the recommendation of the Nomination & Remuneration
Companies (Appointment and Qualifications of Directors) Committee and the Board of Directors of the Company,
Rules, 2014 and Regulation 17 and any other applicable Mrs. Ameeta Chatterjee (DIN: 03010772), who was
provisions of the Securities and Exchange Board of India appointed as an Independent Director of the Company
(Listing Obligations and Disclosure Requirements) for a term of 3 (Three) consecutive years commencing from
Regulations, 2015 (‘SEBI Listing Regulations’), as amended December 5, 2020 up to December 04, 2023 (both days
from time to time, Nomination and Remuneration Policy inclusive) and who being eligible for re-appointment as an
of the Company , the performance evaluation made Independent Director has given her consent along with
by Board of Directors earlier and based on the a declaration that she meets the criteria for independence
recommendation of the Nomination & Remuneration under Section 149(6) of the Act and the rules framed
Committee and the Board of Directors of the Company, thereunder and Regulation 16(1)(b) of the SEBI Listing
Mr. A. Krishna Kumar (DIN: 00871792), who was Regulations, be and is hereby re-appointed as an
appointed as an Independent Director of the Company Independent Director of the Company, not liable to
for a term of 3 (Three) consecutive years commencing from retire by rotation, to hold office for a second term of
December 5, 2020 up to December 04, 2023 (both days 5 (Five) consecutive years on the Board of the Company
inclusive) and who being eligible for re-appointment as commencing from December 5, 2023 up to December 04,
an Independent Director has given his consent along with 2028 (both days inclusive)."
a declaration that he meets the criteria for independence
under Section 149(6) of the Act and the rules framed "RESOLVED FURTHER THAT Mr. P Srinivas Reddy,
thereunder and Regulation 16(1)(b) of the SEBI Listing Managing Director and Mr. Shubham Bagadia, Company
Regulations, be and is hereby re-appointed as an Secretary & Compliance Officer of the Company be and
Independent Director of the Company, not liable to are hereby severally authorized to do all the acts, deeds
retire by rotation, to hold office for a second term of and things which are necessary for the re-appointment
5 (Five) consecutive years on the Board of the Company of Mrs. Ameeta Chatterjee as an Independent Director of
commencing from December 5, 2023 up to December 04, the Company, including filing of the necessary forms with
2028 (both days inclusive)." the Registrar of Companies, Telangana at Hyderabad.”
"RESOLVED FURTHER THAT Mr. P Srinivas Reddy, 10. RE-APPOINTMENT OF MR. U C MUKTIBODH (DIN:
Managing Director and Mr. Shubham Bagadia, Company 06558392) AS AN INDEPENDENT DIRECTOR OF THE
Secretary & Compliance Officer of the Company be and COMPANY (Brief Profile: Annexure A to this Notice).
are hereby severally authorized to do all the acts, deeds
and things which are necessary for the re-appointment To consider and, if thought fit, to pass with or without
of Mr. A. Krishna Kumar as an Independent Director of modifications, the following resolution as a Special
the Company, including filing of the necessary forms with Resolution:
the Registrar of Companies, Telangana at Hyderabad.”
“RESOLVED THAT pursuant to the provisions of Sections
9. RE-APPOINTMENT OF MRS. AMEETA CHATTERJEE 149, 150 and 152 and other applicable provisions, if any,
(DIN: 03010772) AS AN INDEPENDENT DIRECTOR OF read along with Schedule IV to the Companies Act, 2013
THE COMPANY (Brief Profile: Annexure A to this Notice). (‘the Act’) [including any statutory modification(s) or
re-enactment(s) thereof for the time being in force], the
To consider and, if thought fit, to pass with or without Companies (Appointment and Qualifications of Directors)
modifications, the following resolution as a Special Rules, 2014 and Regulation 17 and any other applicable
Resolution: provisions of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements)
“RESOLVED THAT pursuant to the provisions of Sections Regulations, 2015 (‘SEBI Listing Regulations’), as amended
149, 150 and 152 and other applicable provisions, if any, from time to time, Nomination and Remuneration Policy
read along with Schedule IV to the Companies Act, 2013 of the Company, the performance evaluation made
(‘the Act’) [including any statutory modification(s) or by Board of Directors earlier and based on the
re-enactment(s) thereof for the time being in force], the recommendation of the Nomination & Remuneration
Companies (Appointment and Qualifications of Directors) Committee and the Board of Directors of the Company,
Rules, 2014 and Regulation 17 and any other applicable Mr. U C Muktibodh (DIN: 006558392), who was
provisions of the Securities and Exchange Board of appointed as an Independent Director of the Company
India (Listing Obligations and Disclosure Requirements) for a term of 3 (Three) consecutive years commencing from
December 5, 2020 up to December 04, 2023 (both days 5 (Five) consecutive years on the Board of the Company
inclusive) and who being eligible for re-appointment as commencing from December 5, 2023 up to December 04,
an Independent Director has given his consent along with 2028 (both days inclusive)."
under Section 149(6) of the Act and the rules framed "RESOLVED FURTHER THAT Mr. P Srinivas Reddy,
thereunder and Regulation 16(1)(b) of the SEBI Listing Managing Director and Mr. Shubham Bagadia, Company
Regulations, be and is hereby re-appointed as an Secretary & Compliance Officer of the Company be and
Independent Director of the Company, not liable to are hereby severally authorized to do all the acts, deeds
retire by rotation, to hold office for a second term of and things which are necessary for the re-appointment
5 (Five) consecutive years on the Board of the Company of Mr. V G Sekaran as an Independent Director of the
commencing from December 5, 2023 up to December 04, Company, including filing of the necessary forms with
2028 (both days inclusive)." the Registrar of Companies, Telangana at Hyderabad.”
"RESOLVED FURTHER THAT Mr. P Srinivas Reddy,

Managing Director and Mr. Shubham Bagadia, Company
Secretary & Compliance Officer of the Company be and By Order of the Board of Directors of
are hereby severally authorized to do all the acts, deeds MTAR Technologies Limited
and things which are necessary for the re-appointment
of Mr. U C Muktibodh as an Independent Director of the
Company, including filing of the necessary forms with
the Registrar of Companies, Telangana at Hyderabad.”
sd/-
11. RE-APPOINTMENT OF MR. V G SEKARAN (DIN: Place: Hyderabad Shubham Sunil Bagadia
02012032) AS AN INDEPENDENT DIRECTOR OF THE Date : 17-05-2023 Company Secretary &
COMPANY (Brief Profile: Annexure A to this Notice). Compliance Officer
To consider and, if thought fit, to pass with or without

modifications, the following resolution as a Special
Resolution:
“RESOLVED THAT pursuant to the provisions of Sections

149, 150 and 152 and other applicable provisions, if any,
read along with Schedule IV to the Companies Act, 2013
(‘the Act’) [including any statutory modification(s) or
re-enactment(s) thereof for the time being in force], the
Companies (Appointment and Qualifications of Directors)
Rules, 2014 and Regulation 17 and any other applicable
provisions of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (‘SEBI Listing Regulations’), as amended
from time to time, Nomination and Remuneration Policy
of the Company, the performance evaluation made
by Board of Directors earlier and based on the
recommendation of the Nomination &
Remuneration Committee and the Board of Directors of
the Company, Mr. V G Sekaran (DIN: 02012032), who was
appointed as an Independent Director of the Company
for a term of 3 (Three) consecutive years commencing from
December 5, 2020 up to December 04, 2023 (both days
inclusive) and who being eligible for re-appointment as
an Independent Director has given his consent along with
under Section 149(6) of the Act and the rules framed
thereunder and Regulation 16(1)(b) of the SEBI Listing
Regulations, be and is hereby re-appointed as an
Independent Director of the Company, not liable to
retire by rotation, to hold office for a second term of
74
Explanatory Statement
PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013
Item No. 4: Ratification Of Payment Of Remuneration i) Vehicle facility: Innova Crysta with Driver.
To The Cost Auditor For The Financial Year 2023-2024:
ii) Medical Insurance: For the Managing Director and
Based on the recommendation of the Audit Committee, Immediate Family members.
the Board of Directors in its meeting held on 17th May
2023 has approved the appointment of M/s. Sagar & The Board of Directors of the Company at their meeting
Associates, (Registration No.000118), Cost Accountants held on 17th May 2023, approved the re-appointment
as Cost Auditors of the Company for the year ended 31st of Mr. P. Srinivas Reddy as a Managing Director of the
March 2024 to conduct the audit of cost records and has Company for a term of Five years commencing from
fixed their remuneration at Rs. 3,50,000/- (Rupees Three 01.09.2023 to 31.08.2028 with the above-mentioned
Lakhs Fifty Thousand only) per annum plus out of pocket remuneration, perquisites and allowances during the
expenses and applicable taxes etc. aforesaid tenure of reappointment.
As per the provisions of Section 148 of the Act read with the The Board of Directors recommends the passing of the
Companies Act, 2013 and as per the Rule 14 of Companies above resolutions as a Special Resolution set out in the
(Audit and Auditors) Rules, 2014, the remuneration payable items.
to the Cost Auditors has to be subsequently approved by
the shareholders of the Company. None of the other Directors /Key Managerial Personnel and
their relatives except Mr. P. Srinivas Reddy himself, is in any
Accordingly, the Board of Directors recommends the way interested or concerned financially or otherwise, in the
passing of the above Resolution as an Ordinary Resolution Resolution as set out in the notice.
set out in the Item no. 4 of the notice.
Information in accordance with Schedule V of Companies
None of the Directors/ Key Managerial Personnel and Act, 2013
their relatives of the Company is in any way, concerned or
interested, financially or otherwise, in the Resolution. I. GENERAL INFORMATION
Item No. 5: Revision and increase of remuneration 1. Nature of Industry: Precision engineering
payable to Mr. P. Srinivas Reddy as Managing Director of
the Company w.e.f., 01.04.2023 2. Date or expected date of commencement of
and commercial: The Company started its commercial
Item No. 6: Re-appointment and remuneraion payable to operations in the year 11th November 1999.
Mr. P. Srinivas Reddy as Managing Director of the Company
w.e.f., 01.09.2023 3. In case of new companies, expected date of
commencement of business activities as per project
Pursuant to the recommendations of the Nomination and approved by financial institutions appearing in the
Remuneration Committee, and having considered the prospects: Not Applicable
contribution Mr. P. Srinivas Reddy in terms of leadership,
strategy formulation and execution, financial planning, 4. Financial performance based on given indications
maintaining relations both with the board and external
entities, improving the turnovers and profitability of the
2020-21 2021-22 2022-23
company, the Board in its meeting held on 09.02.2023 Particulars
(Rs. in Mn) (Rs. in Mn) (Rs. in Mn)
revised and increased the remuneration of the Managing
Director with effect from 01.04.2023, from Rs. 240 Lakhs to Turnover 2464.32 3220.06 5773.47
Rs. 400 Lakhs per annum which is divided into 75% as fixed Net profit
and 25% as Variable pay. 460.83 608.81 1040.75
after Tax
Profits as
The actual variable pay would be decided by the per Sec 198
577.29 789.44 1369.46
Nomination and Remuneration Committee based on the
performance of the company.
5. Foreign investments or collaborations, if any: Not
Applicable
The below perquisites as provided earlier which will
continue in the subsequent period i.e., during the tenure of
the reappointment.
II. INFORMATION ABOUT THE APPOINTEE 01.09.2023 of Rs. 400 lacs per annum which is divided into
75% as fixed and 25% as Variable pay.
MR. P. SRINIVAS REDDY
The Managing Director will also be entitled to the following
1. Background Details: perquisites and allowances from 01.04.2023 to 31.08.2023
which was approved earlier and also during the tenure of
Mr. P. Srinivas Reddy holds a bachelor’s degree in re- appointment for a period of 5 years w.e.f. 01.09.2023.
engineering, specializing in industrial production, from
the University of Mysore and a master’s degree in i) Vehicle facility: Innova Crysta with Driver and
science, specializing in industrial engineering from ii) Medical Insurance: For the Managing Director and
College of Engineering, Louisiana Tech University. He is Immediate Family members.
associated with the company for more than 17 years in
various capacities, and thus is well versed with the industry. 6. Comparative remuneration profile with respect to
industry, size of the Company profile of the position and
2. Past Remuneration: The remuneration drawn by person (in case of expatriates the relevant details would
Mr. P. Srinivas Reddy (DIN: 00359139) Managing be w.r.t. the country of his origin):
Director was Rs. 240 Lacs /- per annum with a fixed pay of
60% and variable pay of 40% up to 31.03.2023 apart from Taking into consideration of the size of the Company, the
the perquisites and allowances as stated above and the profile of Mr. P. Srinivas Reddy and the responsibilities
remuneration is increased to Rs. 400 lacs per annum as shouldered on him, the aforesaid remuneration package
stated above. is commensurate with the remuneration package paid to
managerial positions in other companies.
3. Recognition or awards: None
7. Pecuniary relationship directly or indirectly with the
4. Job Profile and his suitability: Company, or relationship with the managerial personnel,
if any:
The Industry in which MTAR operates demands from the
top management a great amount of experience in the field Besides the remuneration proposed, he is holding 13,92,903
of Aerospace, Nuclear Energy, Satellites and other Defense Equity Shares of the Company. (4.53% of paid up equity
related activities including Missiles Technology etc., capital of the Company)
involving various government and non- government
agencies both in India and Abroad like ISRO etc. III. OTHER INFORMATION:
Mr. P. Srinivas Reddy has been a director on the Board 1. Steps taken or proposed to be taken for
since March 11, 2015 and was appointed as the improvement: Necessary efforts are being made
Managing Director on September 1, 2020. He has been including securing new clients, diversification of
entrusted with the overall responsibility of the business etc., to increase the production and
management of the Company and its affairs. He holds a efficiency which in turn will add to the growth
bachelor’s degree in engineering, specializing in industrial of the business as well as the profitability.
production, from the University of Mysore and a master’s
degree in science, specializing in industrial engineering 2. Expected increase in productivity and profit in
from College of Engineering, Louisiana Tech University. He measurable terms: The company is committed to
has over 30 years of working experience in manufacturing build the business operations within budget and
and construction sectors, is most suitable for the top slot in considering that the business operates on a going
the Company. concern basis, it is believed that financial position of the
company will increase considerably in the coming years.
5. Remuneration proposed:
Item No. 7: Re-Appointment of Mr. B V R Subbu (DIN:
As set out in the resolutions for the Item No. 5 & 6, the 00289721) as an Independent Director of the Company.
remuneration to Mr. P. Srinivas Reddy, Managing Director
has the approval of the Nomination and Remuneration Mr. B V R Subbu (DIN: 00289721) is currently an
Committee and Board of Directors. Independent Director and Chairman of the
Company, Member of the Audit Committee,
Increase of Remuneration payable to the Managing Director Member of the Nomination and Remuneration
w.e.f. 01.04.2023 to Rs. 400 lacs per annum which is divided Committee and Chairman of the Risk Management
into 75% as fixed and 25% as Variable pay and payment of Committee.
remuneration during the tenure of re- appointment w.e.f.,
76
Mr. B V R Subbu was appointed as an Independent The Company has received a declaration from
Director of the Company by the Members at the Extra Mr. B V R Subbu confirming that he continues to meet
Ordinary General Meeting of the Company held on the criteria of independence as prescribed under Section
December 05, 2020 for a period of 3 (three) consecutive 149(6) of the Act, read with the rules framed thereunder
years commencing from December 5, 2020 up to December and Regulation 16(1)(b) of the Securities and Exchange
04, 2023 (both days inclusive) and is eligible for Board of India (Listing Obligations and Disclosure
re-appointment for a second term on the Board of the Requirements) Regulations, 2015 (‘SEBI Listing
Company. Regulations’). In terms of Regulation 25(8) of the SEBI
Listing Regulations, Mr. B V R Subbu has confirmed that
Based on the recommendation of the Nomination & he is not aware of any circumstance or situation which
Remuneration Committee (‘NRC’), the Board of Directors exists or may be reasonably anticipated that could impair
at its meeting held on May 17, 2023, proposed or impact his ability to discharge his duties. Mr. B V R Subbu
the re-appointment of Mr. B V R Subbu as an has also confirmed that he is not debarred from holding the
Independent Director of the Company for a second office of Director by virtue of any SEBI Order or any such
term of 5 (Five) consecutive years commencing from authority pursuant to circulars dated June 20, 2018 issued
December 5, 2023 up to December 04, 2028 (both by BSE Limited and the National Stock Exchange of India
days inclusive), not liable to retire by rotation, for the Limited pertaining to enforcement of SEBI Orders regarding
approval of the Members by way of a Special Resolution. appointment of Directors by the listed companies.
Mr. BVR Subbu holds a master’s degree in arts, with Further, Mr. B V R Subbu has confirmed that he is not
a specialisation in economics, from New Delhi’s disqualified from being appointed as Director in terms
Jawaharlal Nehru University and a Post Graduate of Section 164 of the Act and has given his consent
Diploma in International Trade from the Indian Institute to act as Director in terms of Section 152 of the Act,
of Foreign Trade, New Delhi. He has more than 20 years subject to re-appointment by the Members. Mr. B V R
of manufacturing Industry expertise and held senior Subbu has also confirmed that he is in compliance
leadership positions in various Companies including Tata with Rules 6(1) and 6(2) of the Companies
Motors Limited, Hyundai Motor India. (Appointment and Qualifications of Directors)
Rules, 2014, with respect to his registration with
He is well-known gloabally as the strategist responsible for the data bank of Independent Directors maintained
building Hyundai Motor from an unknown name to India’s by the Indian Institute of Corporate Affairs (‘IICA’).
second largest car company in 6 months; from first car to
millionth cars in a record breaking eight years. He In the opinion of the Board, Mr. B V R Subbu fulfils the
has immense global exposure with the proven conditions specified in the Act, rules there
leadership abilities in transforming the organisations by under and the SEBI Listing Regulations for
formulating the growth strategies. He was re-appointment as an Independent Director and that
recognised as India’s 100 most powerful CEOs by ET. he is independent of the Management. The terms and
conditions of the appointment of Independent Directors
Apart from his association with our Company, he is a is uploaded on the website of the Company at www.mtar.in
director on the boards of Ola Electric Mobility
Private Limited, KPIT Technologies Limited and Sona In compliance with the provisions of Section 149 read
BLW Precision Forgings Limited amongst others. with Schedule IV to the Act, Regulation 17 of the SEBI
Listing Regulations and other applicable provisions of the
The NRC taking into consideration the skills, expertise Act and SEBI Listing Regulations, the re-appointment of
and competencies required for the Board in the Mr. B V R Subbu as an Independent Director is now placed
context of the business and sectors of the for the approval of the Members by a Special Resolution.
Company and based on the performance evaluation,
concluded and recommended to the Board that As per performance evaluation report made by the
Mr. B V R Subbu qualifications and the rich Board earlier, Mr. BVR Subbu has been accredited with
experience in the above mentioned areas meets maximum points.
the skills and capabilities required for the role of
Independent Director of the Company. The Board Pursuant to Regulation 25 (2A) Securities and
is of the opinion that Mr. B V R Subbu continues to Exchange Board of India (Listing Obligations and Disclosure
possess the identified core skills, expertise and Requirements) Regulations, 2015 (‘SEBI Listing
competencies fundamental for effective functioning in Regulations’), the appointment, re-appointment or
his role as an Independent Director of the Company and removal of an independent director of a listed
his continued association would be of immense benefit entity, shall be subject to the approval of shareholders
to the Company. by way of a special resolution.
The Board commends the Special Resolution set out in He was as elected as an Independent Shareholder
Item No. 7 of the accompanying Notice for approval of the Director to the Board of Andhra Bank from March 2015
Members. to 31st March, 2020 and was also nominated by SEBI as
Public Interest Director on the Board of Central Deposi-
None of the Directors or Key Managerial tory Services (India) Limited from July 2016 to July 2019.
Personnel (‘KMP’) of the Company or their respective
relatives, except Mr. B V R Subbu and his relatives, He has also served as a director on the boards of
are concerned or interested, financially or otherwise, Central Depository Services (India) Limited, REC Limited.
in the resolution set out at Item No. 7 of the accompanying He is currently a Director of TVS Wealth Private Limited,
Notice. Zaggle Prepaid Ocean Services Limited, Suraksha Asset
Reconstruction Limited and SBI Payment Services Private
Disclosures as required under Regulation 36(3) of the SEBI Limited.
Listing Regulations and Secretarial Standard-2 on General
Meetings issued by the Institute of Company Secretaries of The NRC taking into consideration the skills,
India are annexed to this Notice. expertise and competencies required for the Board
in the context of the business and sectors of the
Item No. 8: Re-Appointment of Mr. A. Krishna Kumar Company and based on the performance evaluation,
(DIN: 00871792) as an Independent Director of the concluded and recommended to the Board that
Company: Mr. A. Krishna Kumar qualifications and the rich
experience in the above mentioned areas meets the skills
Mr. A. Krishna Kumar (DIN: 00871792) is currently and capabilities required for the role of Independent
an Independent Director and Chairman of the Audit Director of the Company. The Board is of the opinion that
Committee, Member of the Nomination and Mr. A. Krishna Kumar continues to possess the identified
Remuneration Committee, Member of Stake Holders core skills,expertise and competencies fundamental for
and Relationship Committee and Member of the Risk effective functioning in his role as an Independent Director
Management Committee. of the Company and his continued association would be of
immense benefit to the Company.
Mr. A. Krishna Kumar was appointed as an Independent
Director of the Company by the Members at the Extra The Company has received a declaration from
Ordinary General Meeting of the Company held on Mr. A. Krishna Kumar confirming that he continues
December 05, 2020 for a period of 3 (three) to meet the criteria of independence as prescribed
consecutive years commencing from December 5, 2020 under Section 149(6) of the Act, read with the rules
up to December 04, 2023 (both days inclusive) and framed thereunder and Regulation 16(1)(b) of the
is eligible for re-appointment for a second term on the Securities and Exchange Board of India (Listing Obligations
Board of the Company. and Disclosure Requirements) Regulations, 2015 (‘SEBI
Listing Regulations’). In terms of Regulation 25(8) of the
Based on the recommendation of the Nomination SEBI Listing Regulations, A. Krishna Kumar has confirmed
& Remuneration Committee (‘NRC’), the Board of that he is not aware of any circumstance or situation
Directors at its meeting held on May 17, 2023, which exists or may be reasonably anticipated that could
proposed the re-appointment of Mr. A. Krishna Kumar impair or impact his ability to discharge his duties.
as an Independent Director of the Company for a Mr. A. Krishna Kumar has also confirmed that he is not
second term of 5 (Five) consecutive years commencing debarred from holding the office of Director by virtue of
from December 5, 2023 up to December 04, 2028 (both any SEBI Order or any such authority pursuant to circulars
days inclusive), not liable to retire by rotation, for the dated June 20, 2018 issued by BSE Limited and
approval of the Members by way of a Special Resolution. the National Stock Exchange of India Limited
pertaining to enforcement of SEBI Orders regarding
Mr. A Krishna Kumar holds a Bachelor’s degree in arts, appointment of Directors by the listed companies.
with Honours and Specialising in Economics, from the
University of Delhi, and is a Certified Associate of the Further, Mr. A. Krishna Kumar has confirmed that he
Indian Institute of Bankers (CAIIB). He has a rich is not disqualified from being appointed as Director in
experience in Banking & Financial sectors, and served terms of Section 164 of the Act and has given his consent
State Bank of India for more than 39 years in various to act as Director in terms of Section 152 of the Act,
capacities where he has also taken up the role of subject to re-appointment by the Members.
Managing director and contributed for the growth of Mr. A. Krishna Kumar has also confirmed that he is in
the firm immensely. compliance with Rules 6(1) and 6(2) of the Companies
(Appointment and Qualifications of Directors) Rules,
2014, with respect to his registration with the data
bank of Independent Directors maintained by the Indian
Institute of Corporate Affairs (‘IICA’).
78
In the opinion of the Board, Mr. A. Krishna Kumar Based on the recommendation of the Nomination &
fulfils the conditions specified in the Act, rules thereunder Remuneration Committee (‘NRC’), the Board of Directors
and the SEBI Listing Regulations for re-appointment as an at its meeting held on May 17, 2023, proposed
Independent Director and that he is independent of the re-appointment of Mrs. Ameeta Chatterjee as an
the Management. The terms and conditions of the Independent Director of the Company for a second
appointment of Independent Directors is uploaded on the term of 5 (Five) consecutive years commencing from
website of the Company at www.mtar.in December 5, 2023 up to December 04, 2028 (both
days inclusive), not liable to retire by rotation, for the
In compliance with the provisions of Section 149 read with approval of the Members by way of a Special Resolution.
Schedule IV to the Act, Regulation 17 of the SEBI Listing
Regulations and other applicable provisions of the Act Mrs. Ameeta Chatterjee holds a bachelor’s degree in
and SEBI Listing Regulations, the re-appointment of commerce, with honours, from The University of Delhi,
Mr. A. Krishna Kumar as an Independent Director is where she was awarded the M. C. Shukla Prize in 1993 for
now placed for the approval of the Members by a securing the highest marks in aggregate in the business law
Special Resolution. and company law examinations.
As per performance evaluation report made by the Board She also holds a post graduate diploma in Management
earlier, Mr. A. Krishna kumar has been accredited with from the Indian Institute of Management (IIM), Bangalore.
maximum points. She has more than two decades of corporate experience in
developing, managing and executing large projects across
Pursuant to Regulation 25 (2A) Securities and infrastructure sectors in India and UK.
Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (‘SEBI Listing She has previously worked as the general manager of
Regulations’), the appointment, re-appointment or investments and acquisitions at Leighton Contractors
removal of an independent director of a listed entity, (India) Private Limited. She is currently a director on the
shall be subject to the approval of shareholders by boards of directors of Nippon Life Asset Management
way of a special resolution. The Board commends the Limited, Jubilant Ingrevia Limited and JSW Infrastructure
Special Resolution set out in Item No. 8 of the Limited.
accompanying Notice for approval of the Members.
The NRC taking into consideration the skills, expertise and
None of the Directors or Key Managerial competencies required for the Board in the context of the
Personnel (‘KMP’) of the Company or their respective business and sectors of the Company and based on the
relatives, except Mr. A. Krishna Kumar and his relatives, are performance evaluation, concluded and recommended
concerned or interested, financially or otherwise, in the to the Board that Mrs. Ameeta Chatterjee qualifications and
resolution set out at Item No. 8 of the accompanying rich experience in the above mentioned areas
Notice. meets the skills and capabilities required for the role of
Independent Director of the Company. The Board is of
Disclosures as required under Regulation 36(3) of the SEBI the opinion that Mrs. Ameeta Chatterjee continues to
Listing Regulations and Secretarial Standard-2 on General possess the identified core skills, expertise and
Meetings issued by the Institute of Company Secretaries of competencies fundamental for effective functioning in her
India are annexed to this Notice. role as an Independent Director of the Company and her
continued association would be of immense benefit to the
Item No. 9: Re-Appointment of Mrs. Ameeta Chatterjee Company.
(DIN: 03010772) as an Independent Director of the
Company: The Company has received a declaration from
Mrs. Ameeta Chatterjee confirming that she continues to
Mrs. Ameeta Chatterjee (DIN: 03010772) is currently an meet the criteria of independence as prescribed under
Independent Director and Chairperson of the Section 149(6) of the Act, read with the rules framed
Nomination and Remuneration Committee, Member of the thereunder and Regulation 16(1)(b) of the Securities
Audit Committee and Member of the Risk Management and Exchange Board of India (Listing Obligations and
Committee. Disclosure Requirements) Regulations, 2015 (‘SEBI
Listing Regulations’). In terms of Regulation 25(8) of the
Mrs. Ameeta Chatterjee was appointed as an Independent SEBI Listing Regulations, Mrs. Ameeta Chatterjee has
Director of the Company by the Members at the Extra confirmed that she is not aware of any circumstance or
Ordinary General Meeting of the Company held on situation which exists or may be reasonably anticipated
December 05, 2020 for a period of 3 (three) that could impair or impact her ability to discharge her
consecutive years commencing from December 5, 2020 duties. Mrs. Ameeta Chatterjee has also confirmed that she
up to December 04, 2023 (both days inclusive) and is is not debarred from holding the office of Director by virtue
eligible for re-appointment for a second term on the Board of any SEBI Order or any such authority pursuant to circulars
of the Company. dated June 20, 2018 issued by BSE Limited and the National
Stock Exchange of India Limited pertaining to enforcement
of SEBI Orders regarding appointment of Directors by the Item No. 10: Re-Appointment of Mr. U C Muktibodh
listed companies. (DIN: 06558392) as an Independent Director of the
Company:
Further, Mrs. Ameeta Chatterjee has confirmed that she is
not disqualified from being appointed as Director in terms Mr. U C Muktibodh (DIN: 06558392) is currently an
of Section 164 of the Act and has given her consent to act Independent Director and Member of the Corporate
as Director in terms of Section 152 of the Act, subject to Social Responsibility Committee, and Member of the Risk
re-appointment by the Members. Mrs. Ameeta Chatterjee Management Committee.
has also confirmed that she is in compliance with Rules 6(1)
and 6(2) of the Companies (Appointment and Qualifications Mr. U C Muktibodh was appointed as an Independent
of Directors) Rules, 2014, with respect to her registration Director of the Company by the Members at the Extra
with the data bank of Independent Directors maintained by Ordinary General Meeting of the Company held on
the Indian Institute of Corporate Affairs (‘IICA’). December 05, 2020 for a period of 3 (three)
consecutive years commencing from December 5, 2020
In the opinion of the Board, Mrs. Ameeta Chatterjee up to December 04, 2023 (both days inclusive) and is
fulfils the conditions specified in the Act, rules thereunder eligible for re-appointment for a second term on the
and the SEBI Listing Regulations for re-appointment as an Board of the Company.
Independent Director and that she is independent of
the Management. The terms and conditions of the Based on the recommendation of the Nomination
appointment of Independent Directors is uploaded on the & Remuneration Committee (‘NRC’), the Board of
website of the Company at www.mtar.in Directors at its meeting held on May 17, 2023,
proposed the re-appointment of Mr. U C Muktibodh
In compliance with the provisions of Section 149 read as an Independent Director of the Company for a
with Schedule IV to the Act, Regulation 17 of the SEBI second term of 5 (Five) consecutive years commencing
Listing Regulations and other applicable provisions of the from December 5, 2023 up to December 04, 2028 (both
Act and SEBI Listing Regulations, the re-appointment of days inclusive), not liable to retire by rotation, for the
Mrs. Ameeta Chatterjee as an Independent Director is approval of the Members by way of a Special Resolution.
now placed for the approval of the Members by a Special
Resolution. Mr. U.C. Muktibodh is an Expert in Nuclear Power
Plant Technology in India, who is the retired Technical
As per performance evaluation report made by the Board Director of NPCIL and was also a Member of the
earlier, Mrs. Ameeta Chatterjee has been accredited with Board of Directors of NPCIL. Having graduated as a
maximum points. Mechanical Engineer and completed the Master’s
training with distinction in Nuclear Science and
Pursuant to Regulation 25 (2A) Securities and Engineering in Bhabha Atomic Research Centre
Exchange Board of India (Listing Obligations and Disclosure (BARC) in 1981, he joined Reactor Processes Group
Requirements) Regulations, 2015 (‘SEBI Listing of erstwhile Power Project Engineering Division,
Regulations’), the appointment, re-appointment or latter incorporated as Nuclear Power Corporation of
removal of an independent director of a listed entity, shall India Ltd., of the Department of Atomic Energy where has
be subject to the approval of shareholders by contributed extensively for the development of Indian Civil
way of a special resolution. The Board commends the Nuclear Power programme
Special Resolution set out in Item No. 9 of the
accompanying Notice for approval of the Members. He has provided Technical Advisory Support to
Electric de France (EDF) in preparation of their
None of the Directors or Key Managerial Personnel (‘KMP’) Technical bid for Jaitapur Atomic Power Project
of the Company or their respective relatives, except (6×1650 MWe- PWR) to be set up in Maharashtra in
Mrs. Ameeta Chatterjee and her relatives, are concerned or collaboration with France. He is also a member
interested, financially or otherwise, in the resolution set out of Independent Oversight & Advisory Committee for all
at Item No. 9 of the accompanying Notice. Nuclear Power Projects in the country.
Disclosures as required under Regulation 36(3) of the SEBI The NRC taking into consideration the skills, expertise
Listing Regulations and Secretarial Standard-2 on General and competencies required for the Board in the context
Meetings issued by the Institute of Company Secretaries of of the business and sectors of the Company and
India are annexed to this Notice. based on the performance evaluation, concluded and
recommended to the Board that Mr. U C Muktibodh
80
qualifications and the rich experience in the above the appointment, re-appointment or removal of an
mentioned areas meets the skills and capabilities required independent director of a listed entity, shall be subject
for the role of Independent Director of the Company. to the approval of shareholders by way of a
The Board is of the opinion that Mr. U C Muktibodh as an special resolution. The Board commends the
Independent Director of the Company and his continued Special Resolution set out in Item No. 10 of the
association would be of immense benefit to the Company. accompanying Notice for approval of the Members.
The Company has received a declaration from None of the Directors or Key Managerial Personnel
Mr. U C Muktibodh confirming that he continues to (‘KMP’) of the Company or their respective relatives,
meet the criteria of independence as prescribed except Mr. U C Muktibodh and his relatives, are
under Section 149(6) of the Act, read with the rules concerned or interested, financially or otherwise, in the
framed thereunder and Regulation 16(1)(b) of the resolution set out at Item No. 10 of the accompanying
Securities and Exchange Board of India (Listing Notice.
Obligations and Disclosure Requirements) Regulations,
2015 (‘SEBI Listing Regulations’). In terms of Regulation Disclosures as required under Regulation 36(3) of the SEBI
25(8) of the SEBI Listing Regulations, Mr. U C Muktibodh Listing Regulations and Secretarial Standard-2 on General
has confirmed that he is not aware of any circumstance or Meetings issued by the Institute of Company Secretaries of
situation which exists or may be reasonably anticipated that India are annexed to this Notice.
could impair or impact his ability to discharge his duties.
Mr. U C Muktibodh has also confirmed that he is not Item No. 11: Re-Appointment of Mr. V G Sekaran
debarred from holding the office of Director by virtue of (DIN: 02012032) as an Independent Director of the
any SEBI Order or any such authority pursuant to circulars Company:
dated June 20, 2018 issued by BSE Limited and the National
Stock Exchange of India Limited pertaining to enforcement Mr. V G Sekaran (DIN: 02012032) is currently an
of SEBI Orders regarding appointment of Directors by the Independent Director and Member of the
listed companies. Corporate Social Responsibility Committee,
Member of Stake Holders and Relationship
Further, Mr. U C Muktibodh has confirmed that he is not Committee and Member of the Risk Management
disqualified from being appointed as Director in terms of Committee.
Section 164 of the Act and has given his consent to act
as Director in terms of Section 152 of the Act, subject Mr. V G Sekaran was appointed as an Independent
to re-appointment by the Members. Mr. U C Muktibodh has Director of the Company by the Members at the Extra
also confirmed that he is in compliance with Rules 6(1) and Ordinary General Meeting of the Company held on
6(2) of the Companies (Appointment and Qualifications of December 05, 2020 for a period of 3 (three)
Directors) Rules, 2014, with respect to his registration with consecutive years commencing from December 5,
the data bank of Independent Directors maintained by the 2020 up to December 04, 2023 (both days inclusive)
Indian Institute of Corporate Affairs (‘IICA’). and is eligible for re-appointment for a second term on the
Board of the Company.
In the opinion of the Board, Mr. U C Muktibodh fulfils
the conditions specified in the Act, rules thereunder and Based on the recommendation of the Nomination
the SEBI Listing Regulations for re-appointment as an & Remuneration Committee (‘NRC’), the Board of
Independent Director and that he is independent of Directors at its meeting held on May 17, 2023,
the Management. The terms and conditions of the proposed the re-appointment of Mr. V G Sekaran as
appointment of Independent Directors is uploaded on the an Independent Director of the Company for a second
website of the Company at www.mtar.in term of 5 (five) consecutive years commencing from
December 5, 2023 up to December 04, 2028 (both
In compliance with the provisions of Section 149 read with days inclusive), not liable to retire by rotation, for the
Schedule IV to the Act, Regulation 17 of the SEBI Listing approval of the Members by way of a Special Resolution.
Regulations and other applicable provisions of the Act and
SEBI Listing Regulations, the re-appointment of Mr. U C Mr. V G Sekaran holds a bachelor’s degree in engineering,
Muktibodh as an Independent Director is now placed for in the branch of Mechanical Engineering, from Madurai
the approval of the Members by a Special Resolution. University, a Master’s Degree in Engineering, with a
Specialisation in Aeronautical Engineering, from the
As per performance evaluation report made by the Board Indian Institute of Science, Bangalore and a doctorate in
earlier, Mr. U C Muktibodh has been accredited with philosophy from the Queen’s University of Belfast.
maximum points.
He is an eminent Missile Scientist and the Chief Designer
Pursuant to Regulation 25 (2A) Securities and of the Long-Range Ballistic Missile System AGNI 5. He
Exchange Board of India (Listing Obligations and Disclosure has held key roles in DRDO such as Chief Controller R&D
Requirements) Regulations, 2015 (‘SEBI Listing Regulations’), (Missiles & Strategic Systems) and Programme Director to
Agni Missiles and involved in development of programs of
national importance such as Missiles & Strategic regarding appointment of Directors by the listed companies.
Systems. He has Sound technical knowledge on missile Further, Mr. V G Sekaran has confirmed that he is not
systems, flight mechanics, propulsion systems and advanced disqualified from being appointed as Director in terms
technologies such as composites. He has carried out of Section 164 of the Act and has given his consent
extensive research and developed many critical to act as Director in terms of Section 152 of the Act,
technologies for Indian Defence Industry. subject to re-appointment by the Members. Mr. V G
Sekaran has also confirmed that he is in compliance with
He is honoured with various prestigious awards Rules 6(1) and 6(2) of the Companies (Appointment
such as “Scientist of the year award”, “Path Breaking and Qualifications of Directors) Rules, 2014, with respect
Research/Outstanding Technology Development to his registration with the data bank of Independent
Award”, “Technology leadership awards”, among others. Directors maintained by the Indian Institute of Corporate
He is involved in framing several policies in the areas of Affairs (‘IICA’).
joint collaborations and technology acquisitions both
within the country and abroad during my stint with DRDO. In the opinion of the Board, Mr. V G Sekaran fulfils
He has served as an advisory committee member for the conditions specified in the Act, rules
technological development programmes and published thereunder and the SEBI Listing Regulations for
several national and international research journals. re-appointment as an Independent Director and that
he is independent of the Management. The terms and
The Nomination and Remuneration Committee and Board conditions of the appointment of Independent Directors
noted that Mr. V. G. Sekaran, Independent Director will is uploaded on the website of the Company at www.mtar.in
attain the age of seventy-five years on 02nd June 2026
and his terms of re-appointment shall be up-to In compliance with the provisions of Section 149 read
04th December 2028. The Committee and the with Schedule IV to the Act, Regulation 17 of the SEBI
Board reviewed the same and decided that his Listing Regulations and other applicable provisions of the
continuation on attaining the age of seventy-five years Act and SEBI Listing Regulations, the re-appointment of
as an Independent Director is absolutely justified as he Mr. V G Sekaran as an Independent Director is now placed
is “Next to None” in contributing for the growth and for the approval of the Members by a Special Resolution.
development of the Company as a great technical
expert and scientist with an outstanding expertise in the As per performance evaluation report made by the Board
relevant field. earlier, Mr. V G Sekaran has been accredited with maximum
points.
The Nomination and Remuneration Committee taking
into consideration the skills, expertise and competencies Pursuant to Regulation 25 (2A) Securities and
required for the Board in the context of the Exchange Board of India (Listing Obligations and Disclosure
business and sectors of the Company and based on the Requirements) Regulations, 2015 (‘SEBI Listing
performance evaluation, concluded and recommended Regulations’), the appointment, re-appointment or
to the Board that Mr. V G Sekaran qualifications and the removal of an independent director of a listed entity, shall be
rich experience in the above mentioned areas meets subject to the approval of shareholders by way of a special
the skills and capabilities required for the role of resolution. The Board commends the Special Resolution set
Independent Director of the Company. The Board is of the out in Item No. 11 of the accompanying Notice for approval
opinion that Mr. V G Sekaran as an Independent Director of the Members.
of the Company and his continued association would be of
immense benefit to the Company. None of the Directors or Key Managerial
Personnel (‘KMP’) of the Company or their respective
The Company has received a declaration from Mr. V G relatives, except Mr. V G Sekaran and his relatives,
Sekaran confirming that he continues to meet the are concerned or interested, financially or otherwise, in the
criteria of independence as prescribed under resolution set out at Item No. 11 of the accompanying Notice.
Section 149(6) of the Act, read with the rules framed
thereunder and Regulation 16(1)(b) of the Securities and Disclosures as required under Regulation 36(3) of the SEBI
Exchange Board of India (Listing Obligations and Disclosure Listing Regulations and Secretarial Standard-2 on General
Requirements) Regulations, 2015 (‘SEBI Listing Meetings issued by the Institute of Company Secretaries of
Regulations’). In terms of Regulation 25(8) of the SEBI India are annexed to this Notice.
Listing Regulations,Mr. V G Sekaran has confirmed that
he is not aware of any circumstance or situation which By Order of the Board of Directors of
exists or may be reasonably anticipated that could impair MTAR Technologies Limited
or impact his ability to discharge his duties. Mr. V G Sekaran
has also confirmed that he is not debarred from holding Place: Hyderabad Sd/
the office of Director by virtue of any SEBI Order or any Date: 17.05.2023 Shubham Sunil Bagadia
such authority pursuant to circulars dated June 20, 2018 Company Secretary &
issued by BSE Limited and the National Stock Exchange of Compliance Officer
India Limited pertaining to enforcement of SEBI Orders
82
ANNEXURE-A: ITEM NO. 2,3,5,6,7,8,9,10 & 11 OF THE NOTICE
Details of Directors seeking appointment and re-appointment at the forthcoming Annual General Meeting
[Pursuant to Regulation 36(3) of the SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015 and
Secretarial Standard 2 on General Meetings]
Name of the
Mr. A Praveen Kumar Reddy Mr. G V Satish Kumar Reddy Mr. P. Srinivas Reddy
Director
Non- Executive Non Independent
Designation Whole Time Director Managing Director
Director
DIN 08987107 06535717 00359139
Date of Birth 01/07/1967 25/02/1966 20/08/1965
Age 56 Years 57 Years 57 Years
Date of First
Appointment on the 14/12/2020 21/09/2017 11/03/2015
Board
Mr. Praveen Kumar Reddy Mr. G V Satish Reddy is a Graduate in

Akepati, is an engineering specialised mechanical engineering,
graduate from Andhra University, from Bangalore University, and
with experience of over 25 years in master’s degree in science,
As mentioned under
Qualification and the Industry, has been associated specialising inindustrial engineering,
Item No. 5&6 of the
Experience with the company for 18+ years, also from Bradley University. He has been
worked at the position of Vice associated with the company since
President in the Company thus is 2017 as Nonexecutive Director, thus
well versed with the Operations, is well versed with the functions and
Strategies and Management of Management of the Company.
the Company.
As mentioned under
Expertise in specific Management & Business
Operations & Business Development Item No. 5&6 of the
functional area Development
Mr. A Praveen Kumar Reddy and
Relationships between
Mr. Anushman Reddy are related to Not related Not related
Directors inter se
each other
Mr. P. Srinivas Reddy is a
Name of the Listed
Non- Executive Non-
entities in which the
Independent Director in
person also holds the
M/s. Ravileela Granites
directorship and the
Limited (“RGL”).
membership of the
Nil Nil
committees of the Board
Mr. P. Srinivas Reddy has
along with the Listed
not resigned from any
entities from which the
listed Company in the
person has resigned in
past three years.
the past three years*
13,92,903 Equity Shares

Number of shares (4.53% of the paid-up
Nil Nil
held in the Company equity share capital)
Skills and capabilities

required for the role and
the manner in which
NA NA NA
the Director meet the
requirements
(Independent Directors)
*Excluding MTAR Technologies Limited

Name of the
Mr. B V R Subbu Mr. A. Krishna Kumar Mrs. Ameeta Chatterjee
Director
Designation Independent Director Independent Director Independent Director
DIN 00289721 00871792 03010772

Date of Birth 14/02/1954 18/11/1954 27/12/1972
Age 69 Years 68 Years 51 Years
Date of First
Appointment on the 05/12/2020 05/12/2020 05/12/2020
Board
Qualification and As mentioned under Item No. 7 of As mentioned under Item As mentioned under Item No. 9 of
Experience the Explanatory Statement No. 8 of the Explanatory the Explanatory Statement
Statement
As mentioned under Item

Expertise in specific As mentioned under Item No. 7 of As mentioned under Item No. 9 of the
No. 8 of the Explanatory
functional area the Explanatory Statement Explanatory Statement
Statement
Not related Not related Not related
Directors inter se
Mr. B V R Subbu is an Independent Ms. Ameeta Chatterjee is an
Director in Sona BLW Precision Independent Director in Jubilant
Forgings Limited and KPIT Ingrevia Limited and Nippon Life
Technologies Limited. In India Asset Management Limited. In
Sona BLW Precision Forgings Jubilant Ingrevia Limited she is
Limited he is a Chairperson of Audit a member of Audit Committee,
Name of the Listed
Committee and Member of Nomination and Remuneration
Nomination and Remuneration Committee, Risk Management
Committee. In KPIT Technologies Committee and Corporate Social
Limited he is a member of Audit Responsibility Committee. In
membership of the
Committee, Risk Management NIL Nippon Life India Asset Management
Committee and Chairperson Limited she is a member of Audit
of Stakeholders Relationship Committee, Nominatiwon and
Committee. Remuneration Committee, Corporate
Social Responsibility Committee and
Chairperson of Stakeholders
Relationship Committee.
Mr. B V R Subbu has resigned
from Greaves Cotton Limited on Ms. Ameeta Chatterjee has not
01.10.2021 during the past three resigned from any listed Company in
years. the past three years.
Number of shares held in

Nil Nil Nil
the Company

the manner in which the Refer Item No. 7 of the Notice and Refer Item No. 8 of the Refer Item No. 9 of the Notice and
Director meet the explanatory statement Notice and explanatory explanatory statement
requirements statement

84
Name of the
Mr. U C Muktibodh Mr. V G Sekaran
Director
Designation Independent Director Independent Director
DIN 06558392 06558392

Date of Birth 03/06/1958 03/06/1951
Age 65 Years 72 Years
Date of First
Appointment on the 05/12/2020 05/12/2020
Board
Qualification and As mentioned under Item No. 10 of the Explanatory As mentioned under Item No. 11 of the
Experience Statement Explanatory Statement
Expertise in specific As mentioned under Item No. 10 of the Explanatory As mentioned under Item No. 11 of the
functional area Statement Explanatory Statement
Not related Not related
Directors inter se
Name of the Listed

membership of the
NIL NIL
Number of shares
Nil Nil
held in the Company

the manner in which the Refer Item No. 10 of the Notice and Refer Item No. 11 of the Notice and
Director meet the explanatory statement explanatory statement
requirements

Notes
1. In view of the continuing COVID-19 pandemic, the 6. In case of joint holders, the Member whose name
Ministry of Corporate Affairs (“MCA”) has vide its appears as the first holder in the order of names as per the
General Circular nos. 14/2020 and 17/2020 dated April Register of Members of the Company will be entitled to vote
8, 2020 and April 13, 2020 respectively, in relation to at the AGM.
“Clarification on passing of ordinary and special
resolutions by companies under the Companies Act, 2013 7. To avoid fraudulent transaction(s), the identity /
and the rules made thereunder on account of the threat signature of the Members holding shares in electronic /
posed by Covid -19”, General Circular no. 20/2020 dated demat form is verified with the specimen signatures
May 05, 2020, General Circular nos. 02/2021 and 21/2021 furnished by NSDL/ CDSL and members holding shares in
dated January 13, 2021 and December 14, 2021 and physical form is verified as per the records of the R&T Agent
Circular No. 03/2022 dated May 05, 2022 and Circular No. of the Company. Members are requested to keep the same
10/2022 dated December 28, 2022 Circular SEBI/HO/CFD/ updated.
CMD2/CIR/P/2022/62 dated May 13, 2022 and circular no.
SEBI/ HO/ CFD/ PoD-2/P/ CIR/ 2023/ 4 dated January 5, 2023 8. Pursuant to the provisions of the Act and other
issued by SEBI (hereinafter collectively referred to as applicable Regulations, a member entitled to attend and
“the Circulars”), in relation to “Clarification on holding of vote at the AGM is entitled to appoint a proxy to attend and
annual general meeting (AGM) through video vote on their behalf and the proxy need not be a Member
conferencing (VC)/ other audio visual means (OAVM)”, of the Company. However, since this AGM is being held
(collectively referred to as “MCA Circulars”) permitted the pursuant to the MCA/SEBI Circulars through VC/OAVM,
holding of the Annual General Meeting (“AGM”) through physical attendance of Members has been dispensed with.
VC/OAVM, without the physical presence of the Members Accordingly, the facility for appointment of proxies by the
at a common venue. In compliance with the MCA Circulars, Members will also not be available for the AGM and hence
the AGM of the Company is being held through VC/OAVM. the Proxy Form and Attendance Slip are not annexed to the
Notice.
2. The Deemed Venue of the 24th AGM of the Company shall
be its Registered Office. 9. Corporate/institutional Members (i.e., other than
individuals, HUF, NRI, etc.) are required to send a scanned
3. Since the AGM will be held through VC/OAVM (e-AGM), copy (PDF/ JPG format) of the relevant Board Resolution/
the Route Map for venue of AGM is not annexed to the Authority Letter / Power of Attorney etc. together with
Notice. attested specimen signature of the duly authorised
signatory(ies) who is /are authorised to vote, to the
4. Members attending the AGM through VC/OAVM shall be Scrutinizer through e-mail at [email protected] and may
counted for the purpose of reckoning the quorum of the also upload the same in the e-voting module in their login.
AGM under Section 103 of the Act. The scanned image of the above documents should be in the
naming format ‘MTAR_EVENT No.’
5. In compliance with the MCA Circulars and SEBI Circular
dated January 15, 2021 as aforesaid, Notice of the AGM 10. The facility of joining the e-AGM through VC/OAVM will
along with the Annual Report (viz. Financial Statement) be opened 15 minutes before and will remain open up to
for Financial Year 2022-2023 is being sent only through 15 minutes after the scheduled start time of the e-AGM,
electronic mode to those Members whose email and will be available for 1000 members on a first-come
addresses are registered with the Company/ first-served basis. This rule would however not apply to
Depositories/R&T Agent. Members may note that the participation in respect of large Shareholders (Shareholders
Notice and Annual Report for Financial Year 2022-2023 will holding 2% or more shares of the Company), Promoters,
also be available on the Company’s website https://mtar.in/, Institutional Investors, Auditors, Key Managerial Personnel
websites of the Stock Exchanges at www.bseindia.com and and the Directors of the Company including Chairpersons
www.nseindia.com and on the website of R&T Agent of the of the Audit Committee, Nomination and Remuneration
Company viz. KFin at https://evoting.kfintech.com. Committee and Stakeholders Relationship Committee.
Alternatively, Member may send signed copy of the 11. Members are requested to notify change in their
request letter providing the e-mail address, mobile address, if any, immediately to the R&T Agent of the
number, self-attested PAN copy, DP ID (in case of Company.
electronic mode shares), folio No (in case of physical mode
shares) via e-mail at the Email Id – einward.ris@kfintech. 12. To receive faster communication by Company including
com for obtaining the Annual Report and Notice of e-AGM Annual Reports and Notices, the Members are requested to
of the Company electronically. register / update their e-mail address, Telephone Number/
Mobile Number with their respective Depository
86
Participants (DPs) where they hold their shares in shareholdings into dematerialized form. Members can
electronic form. However, if their shares are held in contact the Company or its R&T Agent KFIN Technologies
physical form, Members are advised to to go for ISR1 Limited for assistance in this regard.
to register the details with Kifn for physical cases and
following instructions thereof. Members are requested 18. In terms of circulars/regulations issued by SEBI, it is now
to support the green initiative efforts of the Company. mandatory to furnish a copy of PAN Card to the Company
or its R&T Agent in case of transactions related to transfer
13. For ease of conduct, Members who would like to of shares, deletion of name, transmission of shares and
ask questions/express their views on the items of the transposition of shares, hence members are requested to
businesses to be transacted at the AGM can send furnish copy of their PAN Card while proceeding for such
their questions / comments in advance by visiting transactions.
URL https://emeetings.kfintech.com and clicking on the
tab ‘Post your Queries’ during the period starting from 19. Members holding shares in the same name under
August 07, 2023 (9.00 a.m. IST) to August 09, 2023 (5.00 different Ledger Folios are requested to apply for
p.m. IST) mentioning their name, demat account no./ consolidation of such folios and send the relevant Share
Folio no., Email Id, mobile number etc. The queries so raised Certificates to the R&T Agent of the Company for enabling
must also be mailed at [email protected]. The queries should be them to consolidate the shares with due process.
precise and in brief to enable the Company to answer the
same suitably depending on the availability of time at the 20. Register of Members and Share Transfer Books
meeting. of the Company will remain closed from August 05,
2023 to August 11, 2023 (both days inclusive), for the
14. The Company has been maintaining, inter alia, the purpose of AGM.
following statutory registers at its Registered Office -
Hyderabad: 21. Shareholders who have not yet en-cashed their
dividend warrant(s) for any financial year from the date of
i. Register of contracts or arrangements in which directors listing i.e, March 15, 2021, are requested to submit their
are interested under Section 189 of the Act. claim to the R&T Agent of the Company immediately to avoid
transferring of their unpaid dividend amount to IEPF A/c
ii. Register of Directors and Key Managerial Personnel after 7 years under applicable provisions.
and their shareholding under Section 170 of the Act.
Members are further requested to note that pursuant to
In accordance with the MCA circulars, the said registers the provisions of Section 124 and 125 of Companies Act,
shall be made accessible during the AGM for inspection, 2013, the dividends if not en-cashed for a period of 7 years
through electronic mode and the Shareholders can view the from the date of transfer to Unpaid Dividend Account of
statutory registers of the Company after log in to the Company, are liable to be transferred to the Investor
https://emeetings.kfintech.com and clicking the button Education and Protection Fund (IEPF) and the shares in
next to Thumb symbol. respect of which dividends remain unclaimed for seven
consecutive years are also liable to be transferred to the
15. Pursuant to the requirement of Regulation 26(4) demat account of the IEPF Authority and no claim with
and 36(3) of the Securities and Exchange Board of India the Company shall lie in respect thereof. In view of this,
(Listing Obligations and Disclosure Requirements) Members are requested to claim their dividends from the
Regulations, 2015 and respective provisions of Secretarial Company, within the stipulated timeline. The Members,
Standard-2, the brief profile/particulars of the Directors of whose unclaimed dividends /shares have been transferred
the Company seeking their appointment or re-appointment to IEPF, may claim the same by making an application to the
at the Annual General Meeting (AGM) is annexed hereto. IEPF Authority in Form IEPF-5 available on www.iepf.gov.in.
16. The Explanatory Statement pursuant to Section 102 22. Information and Instructions for e-voting and joining the
of the Companies Act 2013 (‘Act’) setting out details/ e-AGM of Company are as follows:
material facts relating to the proposed special business(es)
under Item Nos. 4 to 11 of the Notice is annexed hereto. 1. Pursuant to the provisions of Section 108 and other
applicable provisions, if any, of the Companies Act, 2013
17. As per Regulation 40 of SEBI Listing Regulations, as read with Rule 20 of the Companies (Management and
amended, securities of listed companies can be transferred Administration) Rules, 2014, as amended and Regulation
only in dematerialized form with effect from April 1, 2019, 44 of the Securities and Exchange Board of India (Listing
except in case of request received for transmission or Obligations and Disclosure Requirements) Regulations, 2015
transposition of securities. In view of this and to eliminate (“Listing Regulations”), the Company is pleased to provide
all risks associated with physical shares and for ease of to its Members, facility to exercise their right to vote on
portfolio management, Members holding shares in physical resolutions proposed to be passed at the AGM by electronic
form are requested to consider converting their means. The Members may cast their votes using electronic
voting system from any place (viz. ‘remote e-voting’).
The Company has engaged the services of Kfin INSTRUCTION FOR REMOTE E-VOTING
Technologies Limited (“Kfin”) as the Agency to provide
e-voting facility to members. (I) IN CASE OF PHYSICAL SHAREHOLDERS & NON-
INDIVIDUAL SHAREHOLDERS (PHYSICAL/DEMAT):
2. The Board of Directors of the Company has
appointed M/s. S.S. Reddy & Associates, Practicing Company a) Initial password is provided in the body of the e-mail.
Secretaries as Scrutinizer to scrutinize the voting during the
AGM and remote e-voting process in a fair and transparent b) Launch internet browser and type the
manner and they have communicated their willingness to URL: https://evoting.kfintech.com in the address bar.
be appointed and will be available for the said purpose.
c) Enter the log in credentials i.e., User ID and
3. Voting right of the Members shall be reckoned in password mentioned in your e-mail. Your Folio No./
proportion to their shares held in the paid-up equity share DP ID Client ID will be your User ID. However, if you are
capital of the Company as on Friday, August 04, 2023 (the already registered with KFin for e-voting, you can use
“Cut- off date”). Person who is not a member as on the your existing User ID and password for casting your votes.
cut-off date should treat the Notice for information purpose
only. d) After entering the details appropriately, click on LOGIN.
4. A person, whose name is recorded in the Register of e) You will reach the password change menu wherein you
Members or in the register of beneficial owners maintained are required to mandatorily change your password. The
by the depositories (viz. CDSL/NSDL) as on the cut-off date new password shall comprise of minimum 8 characters
i.e., Friday, August 04, 2023 only shall be entitled to avail with at least one upper case (A-Z), one lower case (a-z), one
the facility of remote e-voting for the resolutions placed in numeric value (0-9) and a special character (@, #, $, etc.). It is
the AGM. Those Members, who will be present in the AGM strongly recommended not to share your password
through VC/OAVM facility and have not cast their vote on with any other person and take utmost care to keep your
the Resolutions through remote e-voting and are otherwise password confidential.
not barred from doing so, shall be eligible to vote through
e-voting system during the AGM. f) You need to login again with the new credentials.
5. The Members who have cast their vote by remote g) On successful login, the system will prompt you to select
e-voting prior to the AGM may also attend/participate in the EVENT. Select MTAR Technologies Limited.
the AGM through VC/OAVM but shall not be entitled to cast
their vote again. h) On the voting page, the number of shares (which
represents the number of votes) held by you as on the cut-off
6. The remote e-voting facility will be available during the date will appear. If you desire to cast all the votes assenting/
following period: dissenting to the resolution, enter all shares and click ‘FOR’/
‘AGAINST’ as the case may be or partially in ‘FOR’ and partially
Commencement of remote e-voting: From 9.00 a.m. (IST) in ‘AGAINST’, but the total number in ‘FOR’ and/or ‘AGAINST’
on Tuesday, August 08, 2023. taken together should not exceed your total shareholding as
on the cut-off date. You may also choose the option ‘ABSTAIN’
End of remote e-voting: At 5.00 p.m. (IST) on Thursday, and the shares held will not be counted under either head.
August 10, 2023.
i) Members holding multiple folios/demat accounts shall
The remote e-voting will not be allowed beyond the choose the voting process separately for each folio / demat
aforesaid date and time and the e-voting module shall account.
be disabled/blocked thereafter by the e-voting service
providers. Once the vote on a resolution is cast by the j) Cast your votes by selecting an appropriate option and
Member(s), they shall not be allowed to change it click on ‘SUBMIT’. A confirmation box will be displayed.
subsequently or cast the vote again. Click ‘OK’ to confirm else ‘CANCEL’ to modify. Once you
confirm, you will not be allowed to modify your vote
The remote E-Voting process, in relation to the subsequently. During the voting period, you can log in
resolutions proposed at 24th AGM of the Company has been multiple times till you are confirmed that you have voted on
segregated into 3 parts which is mentioned as hereunder: the resolution.
(i) E-Voting in case of Physical Shareholders & Non- k) In case of any queries/grievances, you may refer the
Individual Shareholders (Physical / Demat) Frequently Asked Questions (FAQs) for Members and
e-voting User Manual available at the ‘download’ section of
ii) E-Voting in case of Individual Shareholders having https://evoting.kfintech.com or call KFIN Technologies Ltd.
shares in electronic / demat mode on 1800 309 4001 (toll free).
(iii) E-Voting in case of attending AGM and voting thereat.

88
Sl NSDL CDSL
l) Any person who becomes a Member of the Company No
after sending the Notice of the meeting but on or
before the cut-off date viz. Friday, August 04, 2023 may 1 1. User already registered Existing user who
obtain the USER ID and Password for e-voting in the following for IDeAS facility:** have opted for Easi/
manner or may write an email on einward.ris@kfintech. Easiest **
com for obtaining support in this regard. I. URL: https://eservices.
nsdl.com I.URL: https://web.
a. If the mobile number of the Member is registered cdslindia.com/myeasi/
against Folio No./DP ID Client ID, the Member may send II. Click on the “Benefi- home/login or URL:
SMS: MYEPWD E-Voting Event number+ Folio No. (in case cial Owner” icon under www.cdslindia.com
of physical shareholders) or DP ID Client ID (in case of ‘IDeAS’ section.
Dematted shareholders) to 9212993399. II. Click on New System
III. On the new page, Myeasi
enter existing User ID and
1. Example for NSDL: ` MYEPWD <SPACE> Password. Post successful III. Login with user id
IN12345612345678 authentication, click on and password.
“Access to e-Voting”
2. Example for CDSL: MYEPWD <SPACE> IV. Option will be made
1402345612345678 IV. Click on Company available to reach
name or e-Voting service e-Voting page without
3. Example for Physical: MYEPWD <SPACE> provider and you will be any further
XXXX1234567890 re-directed to e-Voting authentication.
service provider website
for casting the vote during V. Click on e-Voting
b. If e-mail address or mobile number of the Member is the remote e-Voting service provider name
registered against Folio No./ DP ID Client ID, then on the period. to cast your vote.
home page of https://evoting.kfintech.com, the Member
may click “forgot password” and enter Folio No. or DP ID 2 User not registered for User not registered for
Client ID and PAN to generate a password. IDeAS e-Services Easi/Easiest
c. Member may call KFin toll free number 1-800- 3094-001 I. To register click on link : I. Option to register is
for all e-voting related matters. https://eservices.nsdl.com available at : https://
(Select “Register Online web.cdslindia.com/
d. Member may send an e-mail request to einward.ris@ for IDeAS”) myeasi/Registration/
kfintech.com for support related to e-voting matter. or https://eservices.nsdl. EasiRegistration
com/SecureWeb/IdeasDi-
(II) IN CASE OF INDIVIDUAL SHAREHOLDERS HAVING rectReg.jsp II. Proceed with
SHARES IN ELECTRONIC/DEMAT MODE: completing the
II. Proceed with required fields.
Such shareholder(s) may refer the e-voting process completing the required
mandated for them vide SEBI circular dated 9th December, fields. ** (Post ** (Post registration is
2020 and should follow following process for remote registration is completed, completed, follow the
e-voting: follow the process as stat- process as stated in
ed in point no. 1 above) point no. 1 above)
Login method for e-Voting:
3. First time users can First time users can
As per the SEBI circular dated December 9, 2020 on visit the e-Voting website visit the e-Voting
e-Voting facility provided by Listed Companies, Individual directly and follow the website directly and
shareholders holding securities in Demat mode are allowed process below: follow the process
to vote through their demat account maintained with below:
Depositories and Depository Participants. Shareholders are I. URL: https://www.evot-
advised to update their mobile number and email Id in their ing.nsdl.com I. URL: www.cdslindia.
demat accounts in order to access e-Voting facility. The com
remote e-voting process of the Depositories viz NSDL and II. Click on the icon
CDSL are different which are stated below to facilitate the “Login” which is available II. Provide demat
members. under ‘Shareholder/ Account Number and
Member’ section. PAN No.
Sl NSDL CDSL (III) E-VOTING IN CASE OF ATTENDING AGM AND VOTING

No THEREAT:
3. III. Enter User ID (i.e. III. System will Attending of E-AGM

16-digit demat account authenticate user by
number held with NSDL), sending OTP on a) Members will be able to attend the e-AGM
Password/OTP and a registered Mobile & through VC/OAVM facility provided by KFin at
Verification Code as Email as recorded in https://emeetings.kfintech.com by clicking on the tab 'video
shown on the screen. the demat Account. conference' and using their remote e-voting login
credentials as provided by Kfin technologies Limited.
IV. Post successful IV. After successful The link for e-AGM will be available in Member’s login
authentication, you will authentication, user where the EVENT and the name of the Company can be
be redirected to NSDL will be provided links selected. Members who do not have User ID and Password
Depository site wherein for the respective ESP for e-voting or have forgotten the User ID and Password may
you can see e-Voting where the e- Voting is retrieve the same by following the instructions mentioned
page. in progress. here in above.
V. Click on Company name V. Click on Company b) Members are encouraged to join the meeting through
or e-Voting service name and you will be Laptops with Google Chrome for better experience.
provider name and you redirected to
will be redirected to e-Voting service c) Further, members will be required to allow camera, if
e-Voting service provider provider website for any, and hence use internet with a good speed to avoid
website for casting your casting your vote any disturbance/glitch/garbling etc. during the meeting.
vote during the remote during the remote
e-Voting period. e-Voting period. d) While all efforts would be made to make the VC/
OAVM meeting smooth, participants connecting through
mobile devices, tablets, laptops etc. may at times
Individual Shareholders (holding securities in demat/ experience audio/video loss due to fluctuation in their
electronic mode) can also login through their Depository respective networks. Use of a stable Wi-Fi or LAN
Participants (DPs) as per following process. connection can mitigate some of the technical glitches.
You can also login using the login credentials of your e). Members, who would like to express their views or
demat account through your Depository Participant ask questions during the e-AGM will have to register
registered with NSDL/CDSL for e-Voting facility. Once themselves as a speaker by visiting the URL https://
login, you will be able to see e-Voting option. Click on emeetings.kfintech.com and clicking on the tab
e-Voting option and you will be redirected to NSDL/CDSL 'Speaker Registration' and mentioning their registered
Depository site after successful authentication. Click on e-mail id, mobile number and city, during the period
Company name or e-Voting service provider name and starting from August 07, 2023 (9.00 a.m. IST) up to
you will be redirected to e-Voting service provider website August 09, 2023 (5.00 p.m. IST) . Only those members who
for casting your vote during the remote e-Voting period. have registered themselves as a speaker will be allowed to
express their views/ask questions during the e-AGM and the
Important note: Members who are unable to retrieve User maximum time per speaker will be restricted to 3 minutes.
ID/Password are advised to use Forget User ID and Forget
Password option available at above mentioned website Members who want to get their pre-recorded video uploaded
for display during the AGM of the Company, can also upload
the same by visiting https://emeetings.kfintech.com and
NSDL CDSL
uploading their video in the 'Speaker Registration' tab,
Members facing any Members facing any during August 07, 2023 to August 09, 2023, subject to
technical issue in login can technical issue in login can the condition that size of such video should be less
contact NSDL helpdesk by contact CDSL helpdesk by than 50 MB.
sending a request at sending a request at
[email protected] or call helpdesk.evoting@cdslin- The Company reserves the right to restrict the
at dia.com or /number of speakers and display of videos uploaded by the
Members depending on the availability of time for the
toll free no.: contact at 022- 23058738 e-AGM. Please note that questions of only those Members
1800 1020 990 and or 22-23058542-43. will be entertained / considered who are holding shares of
1800 22 44 30 Company as on the cut-off date viz August 04, 2023.
90
f). Members who need technical or other ii. Process for registration of email id for obtaining
assistance before or during the e-AGM can contact KFin by Annual Report or other communications from Company and
sending email at [email protected] or Helpline: process for updation of bank account mandate for receipt
1800 309 4001 (toll free). For any other kind of support / of dividend are stated as hereunder:
assistance related to the AGM, members can also
contact Mr. Venkatesh at phone number 9346237124 or Physical Holding Submit a request to KFin providing
may write to [email protected] / [email protected]. Folio No, Name of shareholder,
(If any) scanned copy of the share
g) Due to limitations of transmission and coordination certificate (front and back), PAN
during the Q&A session, the Company may dispense with (self-attested scanned copy of
the speaker registration during the e-AGM conference. PAN card), AADHAR (self-attested
scanned copy of Aadhar Card) for
Voting at E-AGM (INSTAPOLL) registering email address, on or
before 04.08.2023 in relation to
a. Only those members/shareholders who hold shares 24th AGM. Alternatively, Annual
as on the cut-off date viz. August 04th, 2023 and who Report, consisted of AGM notice,
have not casted their vote earlier through remote can also be downloaded from
e-voting are eligible to vote through e-voting during Company website www.mtar.in.
the e-AGM.
For updation of dividend mandate,
b. Members who have voted through remote please send following details to
e-voting will be eligible to attend the e-AGM. [email protected] on or
before 04.08.2023.
c. Members attending the e-AGM shall be counted for the
purpose of reckoning the quorum of AGM under Section a) Name and Branch of the Bank
103 of the Companies Act, 2013. in which you wish to receive the
dividend,
d. Upon declaration by the Chairperson about the
commencement of e-voting at e-AGM, Members shall click b) the Bank Account type,
on the “Vote” sign on the left-hand bottom corner of their
video screen for voting at the e-AGM, which will take them c) Bank Account Number allotted
to the 'Instapoll' page. by their banks after
implementation of Core
e. Members to click on the “Instapoll” icon to reach the Banking Solutions,
resolution page and follow the instructions to vote on the
resolutions. d) 9-digit MICR Code Number,
f. The electronic voting system for e-voting at AGM, as e) 11-digit IFSC Code and
provided by KFIN Technologies Ltd, shall be available for
30 minutes from the time of commencement of voting f) a scanned copy of the cancelled
declared by the Chairman at the AGM. cheque bearing the name of the
first shareholder
General Information:
i. The Scrutiniser shall, immediately after the conclusion

of voting at the AGM, first count the votes cast at the
meeting, thereafter unlock the votes cast through remote Demat Holding Please contact your Depository
e-voting and make a consolidated Scrutiniser’s report of the Participant (DP) and register your
total votes cast in favour or against, if any, and submit the email address and bank account
report to the Chairperson of the Company or any person details in your demat account, as
authorized in that respect within 2 working days of the per the process advised by your DP.
conclusion of the AGM, who shall countersign the same and
thereafter results of the voting will be declared. The results
declared along with the scrutiniser’s report shall be placed
on the Company’s website at www.mtar.in and on the 23. Relevant documents referred to in the acCompanying
website of R&T Agent KFin viz. https://evoting.kfintech.com Notice, as well as Annual Reports and Annual Accounts
and shall also be communicated to the stock exchanges viz of the Subsidiaries Companies whose Annual Accounts
BSE Limited. where the shares of the Company are listed. have been consolidated with the Company are open for
The resolutions shall be deemed to have been passed at the inspection at the Registered Office of the Company,
AGM of the Company subject to obtaining requisite votes
thereto.
during the office hours, on all working days between in dematerialized form with their respective Depository
10.00 A.M. to 5.00 P.M. up to the date of Annual General Participant and in respect of shares held in physical form
Meeting. with the Company’s Registrar and Share Transfer Agents.
.
24. The Ministry of Corporate Affairs (vide circular nos. By and on behalf of
17/2011 and 18/2011 dated April 21 and April 29, 2011 The Board of Directors of
respectively), has undertaken a ‘Green Initiative in Corporate MTAR Technologies Limited
Governance’ and allowed companies to share documents
with its shareholders through an electronic mode. Members Sd/
are requested to support this green initiative by registering/ Shubham Sunil Bagadia
uploading their email addresses, in respect of shares held Place: Hyderabad Company Secretary &
Date: 17-05-2023 Compliance Officer
92
Dear Members,
DIRECTORS REPORT
Your Directors have pleasure in presenting the 24th Directors’ Report and the Audited Statement of Accounts of the
Company for the Financial Year ended 31st March 2023
1. FINANCIAL SUMMARY/HIGHLIGHTS:
The performance of the Company during the year has been provided as under:
(Amount in Rs. Mn)
Standalone Consolidated
Particulars
2022-23 2021-22 2022-23 2021-22
Revenue from Operations 5733.47 3,220.06 5,737.51 3,220.06
Other Income 197.02 87.53 194.77 87.53
Profit/loss before Depreciation, Finance Costs, Exceptional items and Tax
1539.62 944.33 1539.74 944.26
Expense
Less: Depreciation/ Amortisation/ Impairment 182.71 143.10 186.61 143.10
Profit /loss before Finance Costs, Exceptional items and Tax Expense 1356.91 801.23 1353.13 801.16
Less: Finance Costs 145.02 66.49 145.67 66.49
Profit /loss before Exceptional items and Tax Expense 1408.91 822.27 1402.23 822.20
Add/(less): Exceptional items 0 0 0 0
Profit /loss before Tax Expense 1408.91 822.27 1402.23 822.20
Less: Tax Expense (Current & Deferred) 368.16 213.46 368.04 213.46
Profit /loss for the year (1) 1040.75 608.81 1,034.19 608.74
Total Comprehensive Income/loss (2) (30.27) 5.82 (30.27) 5.82
Total (1+2) 1010.48 614.63 1003.92 614.56
Balance of profit /loss for earlier years 1,675.94 1,245.87 1,675.70 1,245.70
Less: Transfer to Debenture Redemption Reserve 0 0 0 0
Less: Transfer to Reserves 0 0 0 0
Less: Dividend paid on Equity Shares 0 184.56 0 184.56
Less: Dividend paid on Preference Shares 0 0 0 0
Less: Dividend Distribution Tax 0 0 0 0
Balance carried forward 2,686.42 1,675.94 2,679.62 1,675.70
2. REVIEW OF OPERATIONS:
Revenues – Standalone Revenues – Consolidated
During the year under review, the Company has During the year under review, the Company has
recorded a total income of Rs. 5,930.49 Mn and net recorded a total income of Rs. 5932.28 Mn and a net
profit of Rs 1040.75 Mn as compared to a profit of Rs 1,034.19 Mn as compared to
total income of Rs. 3,307.59 Mn and net profit of total income of Rs. 3,307.59 Mn and net profit of
Rs. 608.81 Mn achieved in the previous financial year. Rs. 608.74 Mn achieved in the previous financial year.
3.BUSINESS UPDATE AND STATE OF COMPANY’S 9. APPOINTMENT / RE-APPOINTMENT / RESIGNATION

AFFAIRS: / RETIREMENT OF DIRECTORS /CEO/ CFO AND KEY
MANAGERIAL PERSONNEL AND OTHER RELEVANT
The information on Company’s affairs and related INFORMATION:
aspects is provided under Management Discussion and
Analysis Report, which has been prepared, inter-alia, in a) Appointments:
compliance with Regulation 34 of SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and forms S. Name of the Designation Date
part of this Report. No Director/KMP/
Officer
4. CHANGE IN THE NATURE OF THE BUSINESS, IF ANY
Mr. Anushman
1. Whole Time Director 09.08.2022
During the period under review and the date of Board's Reddy
Report there was no change in the nature of Business. Mr. A. Praveen
2. Whole Time Director 09.08.2022
However, the Company has undetaken design and Kumar Reddy
development of Small Satellite Launch Vehicle (SSLV) during Mr. Raja Shekar Chief Operating
this year. 3. 03.05.2023
Bollampally Officer
5. RESERVES: b) Resignations:
The Closing balance of reserves, including retained

S. Name of the Designation Date
earnings, of the Company as at March 31st 2023 is
No Director/KMP/
Rs.5900.53 in Millions. Officer
6. DIVIDEND Nominee
1. Mr. Mathew Cyriac 10.05.2022
Director
The Company has not paid any dividend during the year. Mr. Devesh Dhar Chief Operating
2. 24.01.2023
Dwivedi Officer
In terms of Regulation 43A of the Securities and Exchange Mr. Nagarajan Independent
Board of India (“SEBI”) (Listing Obligations and Disclosure 3. 09.02.2023
Vedachalam Director
Requirements) Regulations, 2015 (“Listing Regulations),
the Dividend Distribution Policy was adopted to set out The Board places on record their appreciation for the
parameters and circumstances that will be taken into invaluable contribution made by the above director and
account by the Board while determining the distribution of officer(s) during their tenure.
dividend to the shareholders. The Policy is available on the
website of the Company under the weblink mtar.in/inves- c) Information u/r 36(3) of SEBI (LODR), Regulations, 2015:
tor-relations/corporate-governance/policies-related-docu-
ments/ As required under regulation 36 (3) of the SEBI (LODR),
Regulations, 2015, brief particulars of the Directors seeking
appointment/re-appointment are given as Annexure A to
7. MATERIAL CHANGES & COMMITMENT AFFECTING THE the notice of the AGM forming part of this Annual Report.
FINANCIAL POSITION OF THE COMPANY:
10. REVISION OF FINANCIAL STATEMENTS
There have been no material changes and commitments
affecting the financial position of the Company which have There was no revision of the financial statements for the
occurred between the end of the Financial Year of the year under review.
Company to which the financial statements relate and the
date of the report. 11. DECLARATION FROM INDEPENDENT DIRECTORS ON
ANNUAL BASIS
8.BOARD MEETINGS:
The Company has received declarations from
The Board of Directors duly met six (06) times during the all the Independent Directors of the Company
financial year from 1st April 2022 to 31st March 2023. confirming that they meet with both the criteria of
The dates on which the meetings were held are 10th May independence as prescribed under sub-section (6) of
2022, 24th May 2022, 09th August 2022, 02nd November Section 149 of the Companies Act, 2013 and under
2022, 21st December 2022 and 09th February 2023. All the Regulation 16(1)(b) read with Regulation 25 of the
meetings were conducted through Physical mode and SEBI (LODR), Regulations, 2015.
arrangement for Audio visual means was also made for
those directors who didn’t attend the meeting by physical In compliance with Rule 6 of Companies (Appointment
mode during the FY 2022-23. and Qualification of Directors) Rules, 2014, all the PIDs
of the Company have registered themselves with the
Indian Institute of Corporate Affairs (IICA), Manesar
94
and have included their names in the data-bank of stakeholders and independent judgement. All the
Independent Directors within the statutory timeline. Directors were subjected to evaluation.
The Independent Directors have also confirmed that The Board discussed the performance evaluation reports
they have complied with Schedule IV of the Act and the of the Board, Board Committees and Individual Directors.
Company’s Code of Conduct. The Board upon discussion noted the suggestions / inputs
of the Directors. Recommendations arising from this
In terms of Regulation 25(8) of the SEBI (LODR), entire process were deliberated upon by the Board to
Regulations, 2015, the Independent Directors have augment its effectiveness.
confirmed that they are not aware of any
circumstance or situation, which exists or may The detailed procedure followed for the
be reasonably anticipated, that could impair or performance evaluation of the Board, Committees and
impact their ability to discharge their duties with Individual Directors is enumerated in the Corporate
an objective independent judgement and without any Governance Report.
external influence.
15. POLICY ON DIRECTOR’S APPOINTMENT AND
During the year, Independent Directors of the REMUNERATION AND OTHER DETAILS:
Company had no pecuniary relationship or transactions
with the Company, other than sitting fee, commission The assessment and appointment of Members to
and reimbursement of expenses incurred by them for the the Board is based on a combination of criterion that
purpose of attending meetings of the Board of Directors and includes ethics, personal and professional stature,
Committee(s). domain expertise, gender diversity and specific
qualification required for the position. The potential Board
12. AUDIT COMMITTEE RECOMMENDATIONS: Member is also assessed on the basis of independence
criteria defined in Section 149(6) of the Companies Act,
During the year, all recommendations of Audit 2013 and Regulation 27 of SEBI (LODR) Regulations, 2015.
Committee were approved by the Board of Directors.
In accordance with Section 178(3) of the Companies Act,
13. FAMILIARIZATION PROGRAM FOR INDEPENDENT 2013 and Regulation 19(4) of SEBI (LODR) Regulations,
DIRECTORS 2015, on the recommendations of the Nomination and
Remuneration Committee, the Board adopted a
Independent Directors are familiarized about the remuneration policy for Directors, Key Management
Company’s operations and businesses. Interaction Personnel (KMPs) and Senior Management. The
with the Business heads and key executives of the Policy is attached as a part of Corporate Governance
Company is also facilitated. Detailed presentations on Report.
important policies of the Company is also made to the
directors. Direct meetings with the Chairman are further We affirm that the remuneration paid to the
facilitated to familiarize the incumbent Director about Directors is as per the terms laid down in the Nomination
the Company/its businesses and the group practices. The and Remuneration Policy of the Company.
details of the familiarization programme of the Independent
Directors are available on the website of the Company at 16. DIRECTORS’ RESPONSIBILITY STATEMENT
the link : https://mtar.in/
Pursuant to the requirement of Section 134(3)(c) and 134(5)
14. BOARD EVALUATION of the Companies Act, 2013 and on the basis of explanation
given by the executives of the Company and subject to
In line with Securities and Exchange Board of India disclosures in the Annual Accounts of the Company
Circular No. SEBI/HO/CFD/CMD/CIR/P/2017/004, dated from time to time, we state as under:
January 5, 2017 and the Companies Amendment Act, 2017
the Company adopted the recommended criteria for board a. That in the preparation of the annual accounts, the
evaluation by Securities and Exchange Board of India. applicable accounting standards have been followed
along with proper explanation relating to material
Performance of the Board and Board Committees departures;
was evaluated on various parameters such as structure,
composition, diversity, experience, corporate governance b. That the Directors have selected such
competencies, performance of specific duties and accounting policies and applied them consistently and
obligations, quality of decision-making and overall Board made judgment and estimates that are reasonable and
effectiveness. Performance of individual Directors was prudent so as to give a true and fair view of the state of
evaluated on parameters such as meeting attendance, affairs of the Company at the end of the financial
participation and contribution, engagement with year and of the profit or loss of the Company for that
colleagues on the Board, responsibility towards period;
c. That the Directors have taken proper and 19. ANNUAL RETURN:
sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of this Act As required pursuant to Section 92(3) of the
for safeguarding the assets of the Company and for Companies Act, 2013 and rule 12(1) of the
preventing and detecting fraud and other irregularities; Companies (Management and Administration) Rules,
2014, an extract of annual return is a part of this
d. That the Directors have prepared the annual Annual Report also disclosed on the website
accounts on a going concern basis: www.mtar.in.
e. That the Directors have laid down internal financial 20. BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
controls to be followed by the Company and that such
internal financial controls are adequate and are operating As per stipulated under Regulation 34 of the SEBI
effectively; and (LODR), Regulations, 2015, the Business Responsibility
& Sustainability Report describing the initiatives
f. That the Directors have devised proper systems to ensure taken by the Company from an environmental, social and
compliance with the provisions of all applicable laws and governance perspective forms part of this Annual Report
that such systems are adequate and operating effectively. and is annexed as Annexure I
17. INVESTOR EDUCATION AND PROTECTION FUND (IEPF) 21. AUDITORS
Pursuant to the provisions of Section 124 of the a. Statutory Auditors

Act, Investor Education and Protection Fund
Authority (Accounting, Audit, Transfer and Refund) The members of the Company in accordance with
Rules, 2016 (“IEPF Rules”) read with the relevant Section 139 of the Companies Act, 2013 have passed
circulars and amendments thereto, the amount of a resolution for appointment of M/s. S.R. Batliboi &
dividend remaining unpaid or unclaimed for a period of Associates., (Firm Registration No. 101049W/E300004)
seven years from the due date is required to be as Statutory Auditors of the Company for a period of 5
transferred to the Investor Education and Protection years in the AGM held on 30.09.2020 to hold office up
Fund (“IEPF”), constituted by the Central Government. to the conclusion of 26th Annual General Meeting of the
Company to be held in the year 2025-2026.
During the Year, no amount of dividend was
unpaid or unclaimed for a period of seven years Statutory Auditors Report
and therefore no amount is required to be
transferred to Investor Education and Provident Fund The Board has duly reviewed the Statutory
under the Section 125(1) and Section 125(2) of the Act. Auditor’s Report on the Accounts for the year
ended March 31, 2023 and has noted that the same
18. INFORMATION ABOUT THE FINANCIAL does not have any reservation, qualification or
PERFORMANCE / FINANCIAL POSITION OF THE adverse remarks. However, the Board decided to further
SUBSIDIARIES / ASSOCIATES/ JOINT VENTURES strengthen the existing system and procedures to meet
all kinds of challenges and growth in the coming years.
Magnatar Aero Systems Private Limited is the
wholly owned subsidiary Company of Company b. Secretarial Auditor
incorporated on 04.11.2019 and is non-operational.
Pursuant to the provisions of Section 134(3) (f) &
MTAR has acquired 100% stake in Gee Pee Aerospace Section 204 of the Companies Act, 2013, the Board
and Defence Private Limited on 02nd June 2022 by has appointed M/s. S.S Reddy & Associates, Practicing
entering into Share Purchase Agreement, making it a wholly Company Secretaries has undertaken Secretarial Audit
owned subsidiary which was incorporated on 20.06.1988. of the Company for financial year ending 31.03.2023.
The report of the Secretarial Auditor is enclosed
As per the provisions of Section 129 of the herewith vide Annexure-II of this Report.
Companies Act, 2013 read with Companies (Accounts)
Rules, 2014, a separate statement containing the Secretarial Audit Report
salient features of the financial statements of the
subsidiary companies is prepared in Form AOC-1 and is The Board has duly reviewed the Secretarial Audit
attached as Annexure -IX and forms part of this report. Report for the year ended March 31, 2023 on the
Compliances according to the provisions of Section 204
of the Companies Act, 2013 and has noted that during
the year, the Company does not have any reservation,
qualification or adverse remarks.
96
Annual Secretarial Compliance Report 24. PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS
The Company has filed the Annual Secretarial
Compliance Report for the year 2022-23 with The Company has not given loans, Guarantees or made any
the BSE Ltd and National Stock Exchange of India investments (except for parking excess funds in FDs with
Limited, The report was received from a Practicing Scheduled banks, as and when required) during the year
Company Secretary and filed within the stipulated time under review attracting the provisions under section 186 of
as specified under Regulation 24A of the SEBI (LODR) the Companies Act, 2013.
Regulations.
25. RELATED PARTY TRANSACTIONS:
�. Cost Auditor
Our Company has formulated a policy on related party
Your Company maintained the required cost records as transactions which is also available on Company’s website
specified by the Central Government under sub-section (1) at https://mtar.in/. This policy deals with the review and
of section 148 of the Act. approval of related party transactions.
On the recommendation of the Audit Committee, the All related party transactions that entered into
Board of Directors appointed M/s Sagar & Associates., during the financial year were on arm’s length
Cost Accountants (Registration No. 000118) as Cost basis and were in the ordinary course of business.
Auditors of the Company for financial year ending There were no material significant related party
31st March 2023. The relevant cost audit reports for transactions made by the Company with the
FY2021-22 were filed within the stipulated timeline Promoters, Directors, Key Managerial Personnel or the
and the cost audit report for FY2022-2023 will also be filed Senior Management which may have a potential conflict
within the timeline. with the interest of the Company at large.
The remuneration of Cost Auditors has been approved by Particulars of contracts or arrangements with related
the Board of Directors on the recommendation of Audit parties referred to in Section 188(1) of the Companies
Committee and in terms of the Companies Act, Act, 2013 in the prescribed Form AOC-2 is appended as
2013 and Rules thereunder requisite resolution for Annexure III which forms part of this Report.
ratification of remuneration of the Cost Auditors
by the members has been set out in the Notice of All related party transactions were placed
the 24th Annual General Meeting of your Company before the Audit Committee/Board for approval. Prior
approval of the Audit Committee was obtained for the
d. Internal Auditor transactions which are foreseen and are in
repetitive in nature.
The Company has appointed M/s. Seshachalam & Co.,
Chartered Accountants as Internal Auditors of the 26. CONSOLIDATED FINANCIAL STATEMENTS:
Company for the Financial Year 2022-23.
The Consolidated Financial Statements of your
22. NO FRAUDS REPORTED BY STATUTORY AUDITORS Company for the year ended March 31, 2023
have been prepared in accordance with the
During the Financial Year 2022-23, the Auditors have provisions of Section 129(3) of the Companies Act and
not reported any matter under section 143(12) of the applicable Accounting Standards and form part of
Companies Act, 2013, therefore no detail is required this report.
to be disclosed under section 134(3) (ca) of the
Companies Act, 2013. Pursuant to SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 read with first
provision of Section 129(3) of the Companies Act read
23. INTERNAL AUDIT AND FINANCIAL CONTROLS with Rule 5 of the Companies (Accounts) Rules, 2014,
a separate statement containing salient features of
The Company has adequate internal controls consistent the Financial Statements of each Subsidiary Companies
with the nature of business and size of the operations, in Form AOC-1 is appended to this report, which forms
to effectively provide for safety of its assets, reliability of part of the Financial Statements. The separate
financial transactions with adequate checks and balances, Audited Financial Statements in respect of the Subsidiary
adherence to applicable statues, accounting policies, are also available on the website of the Company at
approval procedures and to ensure optimum use of www.mtar.in.
available resources. These systems are reviewed and
improved on a regular basis.
27. NAMES OF THE COMPANIES WHICH HAVE BECOME C. Foreign Exchange Earnings and Out Go:
OR CEASED TO BE ITS SUBSIDIARIES, JOINT VENTURES OR
ASSOCIATE COMPANIES DURING THE YEAR Foreign Exchange Earnings: Rs. 4,506.28 Mn.
Foreign Exchange Outgo: Rs. 3,035.17 Mn.
During the year under review no Company has
become or ceased to be its subsidiaries, joint ventures or 29. COMMITTEES
associate Company.
(I). AUDIT COMMITTEE
However, the company has acquired 100% stake in Gee Pee
Aerospace and Defence Private Limited on 02nd June 2022 The Company has constituted an Audit Committee which
by entering into Share Purchase Agreement, making it a is in line with the provisions of Regulation 18(1) of SEBI
wholly owned subsidiary. (LODR) Regulations with the Stock Exchanges read with
Section 177 of the Companies Act, 2013 are included in
28. DISCLOSURE OF PARTICULARS WITH RESPECT TO the Corporate Governance report, which forms part of this
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION report.
AND FOREIGN EXCHANGE EARNINGS AND OUTGO
(II). NOMINATION AND REMUNERATION COMMITTEE
The particulars as prescribed under Section 134(3) (m) of
the Companies Act, 2013, is provided hereunder: The Company has constituted Nomination and
Remuneration Committee in line with the provisions
A. Conservation of Energy: of Regulation 19(1) of SEBI (LODR) Regulations with
the Stock Exchanges read with Section 178 of the
During the Financial Year 2022-23, your Company strived to Companies Act, 2013 are included in the Corporate
imbibe energy conservation principles and initiatives across Governance report, which forms part of this report.
all its facilities. The other key initiatives across multiple ar-
eas are highlighted below – (III). STAKEHOLDERS RELATIONSHIP COMMITTEE
HVAC – Your Company has undertaken initiatives The Company has constituted Stakeholders Relationship
such as Installation of VFD with solenoid valves for Committee of the Company in line with the provisions of
Compressor cooling water system, AC optimum Regulation 20 of SEBI (LODR) Regulations with the Stock
utilization through installation of timer control units, etc. Exchanges read with Section 178 of the Companies Act,
2013 are included in the Corporate Governance report,
Lighting – Similar to last year, your Company has which forms part of this report.
continued the initiative to replace old lighting
fittings with new-age energy efficient LED fittings (IV). RISK MANAGEMENT COMMITTEE
within and outside some of our facilities. The
installation of motion sensors at various locations has The Company had been undertaking the activity of
helped us to reduce the energy consumption at various identifying key business and sustainability risks and
sites. taking actions to mitigate such risks from time to time. The
matters related to risks and their management has been
Awareness Generation – This included improving shared with the Board of Directors from time to time.
awareness amongst employees to switch off major The Company has put in place a Risk management
energy consuming equipment or units when idle as well as Policy and has constituted a Risk Management
employing an energy review tool and energy balance tool to Committee of the Board. The details of constitution of the
identify projects. Committee and its terms of reference are set out in the Report on
Corporate Governance. The Company has formulated a Risk
Apart from the above initiates, the Company also has a Management Policy under which various risks associated
specific conservation of energy policy with SOPs to be with the business operations is identified and risk mitigation
followed. It is assured that the same are in place and plans have been put in place.
adequate measures are taken to follow the SOPs. Risk Management Committee of the Board of Directors of
your Company assists the Board in
B. Research & Development and Technology Absorption:
(a) overseeing and approving the Company’s enterprise
1. Research and Development (R&D): During the year the wide risk management framework; and
Company developed Bellows which is part of SOFC power
unit manufactured by the Company instead of procurement (b) overseeing that all the risks that the organization
from overseas. faces such as strategic, financial, credit, market, liquidity,
security, market, liquidity, security, property, IT, legal,
2. Technology absorption, adoption and innovation: NIL regulatory, reputational, other risks have been identified
and assessed, and there is an adequate risk management
infrastructure in place capable of addressing those risks.
98
(V) CORPORATE SOCIAL RESPONSIBILITY COMMITTEE 32. PUBLIC DEPOSITS:
The Company has constituted Corporate Social Your Company has not accepted any deposits falling
Responsibility Committee of the Company in within the meaning of Sec.73, 74 & 76 of the Companies
line with the provisions of Section 135 of the Act, 2013 read with the Rule 8(v) of
Companies Act, 2013 are included in the Corporate Companies (Accounts) Rules 2014, during the
Governance report, which forms part of this report. financial year under review and hence there has been
no non-compliance with the requirements of the Act.
(VI) OTHER COMMITTEES
DETAILS OF DEPOSITS NOT IN COMPLIANCE WITH THE
Other than the above committees, the Company has REQUIREMENTS OF THE ACT:
two other internal non-statutory committees namely
Management and Technology Committee. Since the Company has not accepted any
deposits during the Financial Year ended March 31,
30. VIGIL MECHANISM/WHISTLE BLOWER POLICY 2023, there has been no non-compliance with the
requirements of the Act.
The Company has formulated a Vigil Mechanism / Whistle
Blower Policy pursuant to Regulation 22 of the Listing Pursuant to the Ministry of Corporate Affairs (MCA)
Regulations and Section 177(10) of the Companies Act,2013, notification dated 22nd January 2019 amending the
enabling stakeholders to report any concern of unethical Companies (Acceptance of Deposits) Rules,
behavior, suspected fraud or violation. 2014, the Company shall file with the Registrar of
Companies (ROC) requisite returns within the
The said policy inter-alia provides safeguard against stipulated time in Form DPT-3 for outstanding receipt
victimization of the Whistle Blower. Stakeholders including of money/loan by the Company, which is not considered
directors and employees have access to the Managing as deposits.
Director and Chairman of the Audit Committee.
33. SIGNIFICANT & MATERIAL ORDERS PASSED BY COURTS
During the year under review, no stakeholder was / REGULATORS / TRIBUNALS:
denied access to the Chairman of the Audit Committee.
There are no significant and material orders passed
The policy is available on the website of the Company at by the regulators /courts that would impact the going
www.mtar.in concern status of the Company and its future operations
31. CORPORATE SOCIAL RESPONSIBILITY 34. DISCLOSURE OF ADEQUACY OF INTERNAL FINANCIAL

(CONTENTS OF CSR POLICY) CONTROLS
The Company has attracted the provisions of The Internal Financial Controls with reference to
Corporate Social Responsibility u/s 135 of Companies financial statements as designed and implemented by the
Act, and accordingly has formed the CSR committee to Company are adequate. The Company maintains
foresee the CSR activities, adopted the CSR policy and appropriate system of internal control, including
also created a separate bank account exclusively for CSR. monitoring procedures, to ensure that all assets
The Corporate Social Responsibility Report is enclosed as are safeguarded against loss from unauthorized use
Annexure IV. or disposition. Company policies, guidelines and
procedures provide for adequate checks and
In terms of Section 135 of the Companies Act, 2013 read balances, and are meant to ensure that all
with Companies (Corporate Social Responsibility Policy) transactions are authorized, recorded and reported
Rules, 2014 as amended (“CSR Rules”) and in accordance correctly.
with the CSR Policy, during the financial year 2022-23,
your Company has spent Rs. 1,17,00,000/- while the total During the period under review, there is no material or
obligation was Rs. 1,17,28,770/- (representing 2 % of the serious observations have been noticed for inefficiency or
average net profit for the past the three financial years, inadequacy of such controls.
being FY FY 19-20, FY 20-21 and FY 2021-22). The
Total obligation after set off of excess amount of Further, details of internal financial control and
Rs. 1,61,013/- from previous year is 1,15,67,757/-. Areas of its adequacy are included in the Management
Activities taken by the Company were Education, Child Discussion and Analysis Report which is
Care Centers, Art & Culture, Health Care Centers, appended as Annexure V and forms part of Report.
voluntary support.
35. INSURANCE
The excess amount of approximately Rs. 1,32,243/- will
be set off against the CSR amount to be spent in the The properties and assets of your Company are
subsequent Financial Years. adequately insured.
36. CREDIT & GUARANTEE FACILITIES 41. POLICIES:
The Company has availed Working Capital facilities, Bank The SEBI (Listing Obligations and Disclosure
Guarantees, LCs and Term Loan from HDFC Bank, Export- Requirements) Regulations, 2015 mandated the
Import Bank of India and State Bank of India. formulation of certain policies for all listed
companies. All the policies are available on our
37. RISK MANAGEMENT POLICY: website www.mtar.in
Business Risk Evaluation and Management is an 42. ENVIRONMENTS AND HUMAN RESOURCE
ongoing process within the Organization. The Company DEVELOPMENT:
has a robust risk management framework to identify,
monitor and minimize risks and also to identify Your Company always believes in keeping the
business opportunities. As a process, the risks associated environment pollution free and is fully
with the business are identified and prioritized based on committed to its social responsibility. The
severity, likelihood and effectiveness of current Company has been taking utmost care in
detection. Such risks are reviewed by the senior complying with all pollution control measures from time
management periodically. The development and to time strictly as per the directions of the Government.
implementation of risk management policy has been
covered in the Management Discussion and Analysis, We would like to place on record our appreciation for the
which forms part of this Report. efforts made by the management and the keen interest
shown by the Employees of your Company in this regard.
38. SHARE CAPITAL 43. SECRETARIAL STANDARDS:
The authorized share capital of the Company stands at The Company has devised proper systems to
Rs.66,00,00,000/- divided into 6,60,00,000 equity shares of ensure compliance with the provisions of all applicable
Rs.10/- each. Secretarial Standards issued by the Institute of
Company Secretaries of India and such
The paid-up share capital of the Company stands at systems are adequate and operating effectively.
Rs. 30,75,95,910/- divided into 3,07,59,591 equity During the year under review, the Company was in
shares of Rs.10/- each. compliance with the Secretarial Standards (SS) i.e.,
SS-1 and SS- 2, relating to “Meetings of the Board
of Directors” and “General Meetings”, respectively
39. CORPORATE GOVERNANCE AND SHAREHOLDERS
INFORMATION: 44. STATUTORY COMPLIANCE:
The Company has implemented all of its The Company has complied with the required
major stipulations as applicable to the Company. As provisions relating to statutory compliance with
stipulated under Regulation 34 read with schedule V of regard to the affairs of the Company in all respects.
SEBI (LODR) Regulations, 2015, a report on Corporate
Governance duly audited is appended as Annexure VI for 45. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF
information of the Members. A requisite certificate from WOMEN AT WORKPLACE (PREVENTION, PROHIBITION
the Secretarial Auditors of the Company confirming AND REDRESSAL) ACT, 2013
compliance with the conditions of Corporate Governance
is attached to the Report on Corporate Governance. The Company has in place an Anti-Sexual
Harassment Policy in line with the requirements of The
40. MANAGEMENT DISCUSSIONS AND ANALYSIS Sexual Harassment of Women at workplace
REPORT: (Prevention, Prohibition and Redressal) Act, 2013.
Internal Complaint Committee (IC) has been set up to
The Management Discussion and Analysis Report, redress complaints received regarding sexual
pursuant to the SEBI (LODR) Regulation provides harassment.
an overview of the affairs of the Company, its legal
status and autonomy, business environment, The Board in its meeting held on 09th August 2022 has
mission & objectives, sectoral and segment-wise reconstituted its Internal Complaints committee (ICC)
operational performance, strengths, opportunities, to provide protection against sexual harassment of
constraints, strategy and risks and concerns, as well women at workplace and for the prevention and redressal
as human resource and internal control systems is of complaints of sexual harassment and for matters
appended as Annexure V for information of the connected therewith or incidental thereto.
Members.
100
Constitution of Committee: The Code of Practices and Procedures for fair disclosure of
UPSI is available on the website of the Company at
Name Designation https:// www.mtar.in
J. Srilekha Presiding Officer 49. DECLARATION BY THE COMPANY

Pusparaj Satpathy Member
Nidhi Priya* Member The Company has issued a certificate to its
Directors, confirming that it has not made any default
D Nirmala Rani** External Member
under Section 164(2) of the Act, as on March 31, 2023.
**Appointed w.e.f 09.08.2022
*Resigned w.e.f. 05.11.2022 50. SECRETARIAL COMPLIANCE
All employees are covered under this policy. During the The Company is in compliance with the applicable
year 2022-2023, there were no complaints received by the secretarial compliances.
Committee.
51. EVENT BASED DISCLOSURES
46. STATEMENT SHOWING THE NAMES OF THE TOP TEN
EMPLOYEES IN TERMS OF REMUNERATION DRAWN AND During the year under review, the Company has not
THE NAME OF EVERY EMPLOYEE AS PER RULE 5(2) & (3) taken up any of the following activities except as
OF THE COMPANIES (APPOINTMENT & REMUNERATION) mentioned:
RULES, 2014: 1. Issue of sweat equity share: NA
2. Issue of shares with differential rights: NA
A table containing the particulars in accordance with 3. Issue of shares under employee’s stock option schem:NA
the provisions of Section 197(12) of the Act, read 4. Disclosure on purchase by Company or giving of loans by
with Rule 5(2) of the Companies (Appointment and it for purchase of its shares: NA
Remuneration of Managerial Personnel) Rules, 2014 5. Buy back shares: NA
is appended as Annexure VII (a) to this Report. 6. Disclosure about revision: NA
7. Preferential Allotment of Shares: NA
A statement showing the names of the top ten employees
in terms of remuneration drawn and the name of every 52. CORPORATE INSOLVENCY RESOLUTION PROCESS
employee is annexed to this Annual report as INITIATED UNDER THE INSOLVENCY AND BANKRUPTCY
Annexure VII (b). CODE, 2016 (IBC):
During the year, NONE of the employees is No corporate insolvency resolution processes were
drawing a remuneration of Rs. 1,02,00,000/- and initiated against the Company under the Insolvency and
above per annum or Rs. 8,50,000/- and above in Bankruptcy Code, 2016, during the year under review.
aggregate per month, the limits specified under the
Section 197(12) of the Companies Act,2013 read with 53. DETAILS OF DIFFERENCE BETWEEN VALUATION
Rules 5(2) and 5(3) of the Companies (Appointment and AMOUNT ON ONE TIME SETTLEMENT AND VALUATION
Remuneration of Managerial Personnel) Rules, 2014 WHILE AVAILING LOAN FROM BANKS AND FINANCIAL
2014 other than those mentioned in Annexure VII (b). INSTITUTIONS, IF ANY:
47. RATIO OF REMUNERATION TO EACH DIRECTOR: During the year under review, there has been no one
time settlement of loans taken from banks and financial
Under section 197(12) of the Companies Act, institutions.
2013, and Rule 5(1) (2) & (3) of the Companies
(Appointment & Remuneration) Rules, 2014 read with 54. MD & CFO CERTIFICATION:
Schedule V of the Companies Act, 2013 the ratio of
remuneration to each director is mentioned in As required Regulation 17(8) read with Schedule II of the
Annexure VII (a) SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, the MD & CFO certification is
48. CODE OF CONDUCT FOR THE PREVENTION OF attached with the annual report as Annexure VIII.
INSIDER TRADING:
55. NON-EXECUTIVE DIRECTORS’ COMPENSATION AND
Pursuant to the provisions of SEBI (Prohibition of DISCLOSURES:
Insider Trading) Regulations, 2015 as amended from time
to time, the Company has formulated a Code of Conduct None of the Independent / Non-Executive Directors
for Prevention of Insider Trading (“Insider Trading Code”) has any pecuniary relationship or transactions with the
and a Code of Practices and Procedures for fair disclosure of Company which in the Judgment of the Board may affect the
Unpublished Price Sensitive Information (“UPSI”). independence of the Directors other than sitting fee,
commission and reimbursement of expenses.
56. INDUSTRY BASED DISCLOSURES AS MANDATED BY 2. Memorandum of Understanding (MOU) with

THE RESPECTIVE LAWS GOVERNING THE COMPANY: Indian National Space Promotion and Authorization
Centre (IN- SPACe) to design and develop two Stage to
The Company is not a NBFC, Housing Companies etc., and low Earth orbit all liquid small satellite launch Vehicle
hence Industry based disclosures is not required.
MTAR has signed an MoU with Indian National Space
57. FAILURE TO IMPLEMENT CORPORATE ACTIONS: Promotion and Authorization Centre (IN-SPACe) for design
and development of a Two Stage to Low Earth Orbit All
During the year under review, no corporate actions Liquid Small Satellite Launch Vehicle powered by semi
were done by the Company, which have failed to be cryogenic technology with a payload capacity of 500 kg.
implemented. Both the parties have entered into framework MoU for
various requirements including avionics, sub systems
58. CREDIT RATING: testing, facilitation of launch etc. and any other
requirements that might emerge during the course of
The Company has been awarded A (Stable) credit design, development and launch phase.
rating for its long-term fund based/CC/TL and A1
for short term fund based/CC/TL by ICRA. The rating The MoU shall remain in force for three years.
reflects ICRA’s expectations that the Company’s
operational and financial profile will continue to improve MTAR has consistently embraced innovation to indigenize
backed by its expanding order book position and scale, new technologies for India. Now the company is taking a
and it will maintain healthy profit margins as it is the key leap forward to graduate from precision engineering to
supplier for many of the products manufactured by it. complete system integration by initiating the development
of a Two Stage to Low Earth Orbit All Liquid Small Satellite
The Company also assigned by CRISIL A-/Stable long-term Launch Vehicle project to address a payload of 500 kg in the
rating and A2+ for short term rating. The rated instrument Low Earth Orbit.
reflects strong degree of safety and lowest credit risk.
59. AGREEMENTS/MOU ENTERED BY THE COMPANY: 60. ACKNOWLEDGEMENTS:
1. Share Purchase Agreement with Gee Pee Aerospace Your Directors wish to place on record their
and Defence Private Limited appreciation of the contribution made by the
employees at all levels, to the continued growth
M/s. MTAR Technologies Limited has entered and prosperity of your Company. Your Directors
into Share Purchase Agreement with sellers and also wish to place on record their appreciation of
M/s. GEE PEE Aerospace & Defence Private Limited business constituents, banks and other financial
dated 02-June-2022 for acquisition of 100% stake in institutions and shareholders of the Company for their
M/s. GEE PEE Aerospace & Defence Private Limited. continued support for the growth of the Company.
For and on behalf of the Board of

Subbu Venkata Rama Behara P. Srinivas Reddy

Place: Hyderabad Chairman Managing Director
Date: 17.05.2023 (DIN: 00289721) (DIN: 00359139)
102
ANNEXURE 1
BUSINESS RESPONSIBILITY
&
SUSTAINABILITY REPORT (BRSR)
FY 2022-23
In FY 2022-23, the company has derived nearly

85% of revenue from manufacturing climate
positive products as against 77% in FY 2021-22.
At MTAR, ESG has been an integral part of our
business decision making to power a sustainable
future
I am delighted to inform our shareholders In the past, the company has developed Furthermore, we also believe that a
that we have made significant strides in several import substitutes such as ball diverse workforce drives innovation and
integrating environmental, social, and screws, roller screws, water lubricated leads to better decision-making. Our
governance (ESG) considerations into bearing, fins, fork lift bases, bellows etc. hiring practices have always been aimed
our operations. Sustainability has been to reduce emissions by avoiding imports. at gender and racial diversity at all levels
an integral part of our business strategy, In FY 2022-23, the company has of the company, however, historically
and we have been manufacturing climate developed products such as bellows female work force in our overall strength
positive products since our inception. etc. that were previously imported to is lower due to the nature of the industry
We have always believed that infusing integrate with power units for Solid Oxide in spite of inclusive human resource
company with purpose can help attract fuel cells, which enables us to reduce policies. In the recent past the company
a motivated skilled workforce that drives emissions by avoiding sea shipments/ has taken up special initiatives to enhance
financial success. airfreight. MTAR is committed to gender diversity by increasing the number
sustainable procurement and responsible of women in the organisation at all levels
MTAR was established to supply climate sourcing and always procured majority and is working on improving it further.
positive products for Civil Nuclear of imported raw materials through sea The company’s believes that a diverse
Programme to Clean Energy – Civil shipments to contribute to the reduction workforce drives innovation and leads to
Nuclear Power and later forayed into of emissions. The company has better decision-making goal. We target
Clean Energy Fuel Cells division in 2009. strengthened partnerships with the to create an environment where every
The company has started fabricating vendor throughout the value chain in the employee feels valued, respected, and
critical structures for Clean Energy – year under review to create awareness empowered to reach their full potential;
Hydel & Waste to Energy sectors. In FY about ESG. MTAR has taken up training the company promotes training programs
2022-23, the company has derived nearly session to its vendors about the need and takes up activities to promote a
85% of revenue from manufacturing for adhering to ethical labour practices, culture of belonging. The company
climate positive products as against 77% minimizing environmental impacts, and believes that up-lifting of communities is
in FY 2021-22. To contribute further to promoting biodiversity conservation. By essential for an inclusive and equitable
sustainability by manufacturing products promoting awareness about sustainability growth. We have contributed to Rs. 11.7
that have positive impact on throughout the value chain, the company Mn towards various initiatives related to
environment, the company has also aims to create a positive ripple effect that education, skill development, healthcare,
initiated discussions with customers that extends beyond its own operations. eradication of poverty and preservation of
are into Wind Energy, Battery Storage cultural heritage through CSR funds in the
Systems and Hydrogen Storage systems. The company has always focused on year under review. Furthermore, the
fostering a cultural of excellence marked company has adopted two schools to
Apart from expanding our green product by high people retention. We have a enhance the quality of education by
portfolio, the company has focused on modest attrition of 8.5% as on year ended improving the infrastructural facilities.
several key areas to drive sustainability March 31, 2023. The company firmly
and create positive impact. One of our believes that the growth of the The company firmly believes that robust
major initiative is installation of solar organisation is dependent on the growth corporate governance is essential for
rooftops across EOU and Unit2 that and welfare of our employees. the long-term success of a business and
contribute to the majority of our Accordingly, the company places a lot of we ensure 100% compliance with all the
revenues to reduce our carbon footprint. emphasis on the training our employeers regulatory requirments. At MTAR, our
We are working towards installing solar and various welfare activities taken up strategic direction is guided by our board,
rooftops at our Adibatla unit. In addition, for our employee wellbeing. We have which comprises majority of
the company has also implemented taken up salary correction activity in Q4 independent directors. The company has
other energy-efficient practices including FY 2022-23 to ensure the compensation always maintained transparency in
replacement of conventional lighting with of our employees in on par with or better providing disclosures to all the
LED lighting. As a result, the company has than the industry average. stakeholders. It also organises regular
started reducing its carbon foot print.
104
MTAR has been rated good by Dun & Bradstreet for the companies practices on Environmental,
Social & Governance aspects
trainings sessions on corporate driving collective action. board, our employees, customers,
governance and business code of conduct suppliers and partners who have
to all the stakeholders including the The company envisions to be 100% extended their immense support in the
directors on the board, KMPs and complaint with ESG and charted out a company’s sustainability journey thus far.
employees. clear road map for sustainability over the Our stakeholders have a key role to play
coming years. The company shall continue in our emergence of MTAR as a Clean
The company has always taken measures to integrate sustainability into its business Energy player that constitutes 85% of
to integrate sustainability into our strategies and operations, focusing on revenues of the firm and their
business model with an aim to impact expansion of Clean Energy verticals, commitment and passion have been
different aspects of it, however, we implementation of circular economy instrumental in driving positive change.
understand that the ever-changing principles, renewable energy adoption, Together, the company looks forward
landscape of sustainability requires us to and community engagement. to power a sustainable future over the
continually adapt and find coming decades.
innovative solutions. MTAR understands MTAR is in discussion with various
the imperative need to address various customers in Clean Energy to increase
issues such as reduction of carbon its green product portfolio and shall be Srinivas Reddy
emissions, water management, waste carrying out project specific investments Managing Director
management, work place diversity, and to develop sustainable products.
biodiversity. The company believes that Furthermore, the company is exploring
addressing these challenges requires business models to prioritize resource
collaborative efforts from all the efficiency, and aims to leverage
stakeholders, and hence, MTAR has been technology to enhance our environmental
engaging with all the stakeholders monitoring and reporting capabilities.
including vendors, industry partners,
NGOs etc.to accelerate progress by I would like to express my gratitude to our
SECTION A: GENERAL DISCLOSURES
I. DETAILS OF THE LISTED ENTITY
1 Corporate Identity Number (CIN) of the Company L72200TG1999PLC032836

2 Name of the Company MTAR TECHNOLOGIES LIMITED
3 Year of Incorporation 1999
4 18, Technocrats Industrial Estate, Balanagar , Hyderabad,
Registered Office Address
Telangana-500037
5 18, Technocrats Industrial Estate, Balanagar , Hyderabad,
Corporate Office Address
Telangana-500037
6 E-Mail [email protected]
7 Telephone 040 4455 3333
8 Website www.mtar.in
9 Financial Year for which Reporting is being done 2022-2023
10 a. National Stock Exchange of India Limited (NSE)
Name of the Stock Exchange(s) where shares are listed b. BSE Limited (BSE)
11 Paid-up Capital Rs. 30.759 Cr

12 Mr. Shubham Sunil Bagadia
Name and contact details (telephone, email address)
email address: [email protected]
of the person who may be contacted in case of any
Contact No: 040-44553333/23078312
queries on the BRSR report
13 Reporting boundary - Are the disclosures under

this report made on a standalone basis (i.e. only
Disclosures made in this report are on a standalone basis
for the entity) or on a consolidated basis (i.e. for the
and pertain only to the Company
entity and all the entities which form a part of its
consolidated financial statements, taken together).
II. PRODUCTS/SERVICES
14. Details of business activities (accounting for 90% of the turnover):
S. No. Description of Main Activity Description of Business Activity % of Turnover of the entity
1 Manufacturing and precision The Company offers products and 100
Engineering customized precision engineering solutions
and caters to customers in strategic sectors
including Civil Nuclear Power, Space &
Defence and Clean energy. The company is
a one stop solution for all manufacturing
processes such as advanced machining,
specialized fabrication, assembly and testing,
surface treatment and special processes
106
15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):
S. No. Product/Service NIC Code % of total Turnover

contributed
1 Manufacture and Machining of high precision for 30305 21.5%
aerospace, aircraft, spacecraft components.
2 Manufacture of generators/generating sets for clean 31101 78.5%
energy using hydrogen fuel cell technology
III. OPERATIONS
16. Number of locations where plants and/or operations/offices of the entity are situated:
Location Number of Plants Number of offices Total

National 7 0 7
International 0 0 0
17. Markets served by the entity:
a. Number of Locations
Locations Number
National (No. of States) 12
International (No. of Countries) 2
b. What is the contribution of exports as a percentage of the total turnover of the entity?
78.50%
c. A brief on types of customers
The Company’s business is manufacturing of mission critical precision components for aerospace, space,
defence, clean energy and civil nuclear sectors. Some of its major clients include Indian Civilian Nuclear
Power Program, Indian Space Program, Indian and Global Defence industry as well as Global Clean Energy sectors.
IV. EMPLOYEES
18. Details as at the end of Financial Year:
a. Employees and workers (including differently abled):
S. Particulars Total Male Female

No. (A) No. (B) %(B/A) No. (C) %(C/A)
EMPLOYEES
1 Permanent (D) 555 532 95.8% 23 4%
2 Other than 51 50 98% 1 2%

Permanent (E)
3 Total employees 606 582 96% 24 4%
(D + E)

No. (A) No. (B) %(B/A) No. (C) %(C/A)
WORKERS
4 Permanent (F) 515 515 100% 0 0%
5 Other than 432 432 100% 0 0%

Permanent (G)
6 Total employees 947 947 100% 0 0%
(F+G)
b. Differently abled Employees and Workers:

No. (A) No. (B) %(B/A) No. (C) %(C/A)
DIFFERENTLY ABLED EMPLOYEES
1 Permanent (D) Nil Nil Nil Nil Nil
2 Other than Nil Nil Nil Nil Nil

Permanent (E)
3 Total employees Nil Nil Nil Nil Nil
(D+E)
DIFFERENTLY ABLED WORKERS
4 Permanent (F) Nil Nil Nil Nil Nil
5 Other than Nil Nil Nil Nil Nil

Permanent (G)
6 Total employees Nil Nil Nil Nil Nil
(F+G)
19. Participation/Inclusion/Representation of women
Total No. and percentage of Females

(A) No. (B) %(B/A)
Board of Directors 9 1 11%
Key Management Personnel 3 0 0%
20. Turnover rate for permanent employees and workers

(Disclose trends for the past 3 years)
FY 22-23 FY 21-22 FY 20-21

(Turnover rate in (Turnover rate in (Turnover rate in the
current FY) previous FY) year prior to the
previous FY)
Male Female Total Male Female Total Male Female Total

Permanent 8.3% 0.6% 8.9% 7% 0.2% 7.2% 6% 0% 6%
Employees
Permanent 0% 0% 0% 0% 0% 0% 0% 0% 0%
Workers
108
V. HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES (INCLUDING JOINT VENTURES)
21. (a) Names of holding / subsidiary / associate companies / joint ventures
S. No. Name of the holding / Indicating whether % of shares held Does the entity indicated at
subsidiary / associate holding/Subsidiary/ by listed entity column A, participate in the
companies / joint ventures Associate/ Joint Business Responsibility
(A) Venture initiatives of the listed
entity? (Yes/No)
1 Gee Pee Aerospace and Subsidiary 100% No
Defence Private Limited
2 Magnatar Aero System Subsidiary 100% No
Private Limited
VI. CSR DETAILS
22. CSR Details
Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No) Yes
Turnover (in Rs.) 573,34,70,000
Net worth (in Rs.) 620,81,20,000
VII. TRANSPARENCY AND DISCLOSURES COMPLIANCES
23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible
Business Conduct:
Stakeholder Grievance FY 2022-23 FY 2021-22

group from Redressal Number of Number of Remarks Number of Number of Remarks
whom Mechanism complaints complaints complaints complaints
complaint is Place (Yes/No). filed pending filed pending
received (If Yes, then during the resolution during the resolution at
provide web-link year at close of year close of the
for grievance the year year
redress policy)
Communities Yes Nil Nil Nil Nil Nil Nil
Investors Yes Nil Nil Nil Nil Nil Nil

(other than
shareholers)
Shareholders Yes Nil Nil Nil Nil Nil Nil
Employees Yes Nil Nil Nil Nil Nil Nil
and workers
Customers Yes Nil Nil Nil Nil Nil Nil
Value Chain Yes Nil Nil Nil Nil Nil Nil
Partners
Other Nil Nil Nil Nil Nil Nil Nil
(please
specify)
24. Overview of the entity’s material responsible business conduct issues
Material responsible business conduct and sustainability issues pertaining to environmental and social matters that
present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate
the risk along-with its financial implications
S. Material Indicate Rationale for identifying the In case of risk, Financial

No. issue whether risk / opportunity approach to adapt or implications of the
identified risk or mitigate risk or opportunity
opportunity (Indicate positive or
(R/O) negative
implications)
1 Energy Opportunity Processes and Systems are in The company has Positive Implication
Management place to ensure installed solar panels
maximum energy for power generation The company believes
efficiency and extensively uses that the cost incurred
LED lighting for efficient during this process
energy management will help us in the
future to reduce the
day to day energy
costs
2 Majority Opportunity With increasing focus on global This being an emerging Positive Implication
business is in climate challenges resulting in a field on a global scale,
Clean Energy shift towards cleaner /renewable no risk to the business is Apart from very
Sector sources of energy, this provides anticipated. Further, the healthycontributions
us an opportunity to contribute company continues to to the company’s
towards the global climate effort be a strategic partner to revenues on an
while securing an early mover its other existing as well increasing trend, this
advantage in the domain. as new customers in has established us as
the fields of aerospace, one of the very few
civil nuclear power players in this field.
and heavy fabrication. Our clean energy
business also
contributes towards
our ESG goals in
terms of positively
impacting global
climate change.
3 Workplace Opportunity Prevention of work-related Provision of safety shoes, Positive Implication

health and Injuries, Health of the employees goggles and PPE kits to
Safety has a great deal of importance applicable employees. Employee safety
Availability of medical helps in improving
assistance at all times. performance of
employees Providing
a safe environment to
minimize any
accidents and
compensation pays.
110
SECTION B: MANAGEMENT AND PROCESS DISCLOSURES
This section is aimed at helping businesses demonstrate the structures,policies and processes put in place towards
adopting the NGRBC Principles and Core Elements.
P1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and
Accountable.
P2 Businesses should provide goods and services in a manner that is sustainable and safe.
P3 Businesses should respect and promote the well-being of all employees, including those in their value chains.
P4 Businesses should respect the interests of and be responsive to all its stakeholders.
P5 Businesses should respect and promote human rights.
P6 Businesses should respect and make efforts to protect and restore the environment.
P7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is
responsible and transparent.
P8 Businesses should promote inclusive growth and equitable development.
P9 Businesses should engage with and provide value to their consumers in a responsible manner
Disclosure P P P P P P P P P
Questions 1 2 3 4 5 6 7 8 9
Policy and management processes
1 a. Whether your Yes, it is EOHS policy EOHS, EOHS, Yes Yes NA Yes EOHS, Code
entity’s policy/ covered addresses Code of Community of Conduct,
policies cover each under product Conduct, Grievance, Quality, and
principle and its The code life cycle Human and Code Energy
core elements of the of conduct sustainability Rights of Conduct Conservation
NGRBCs. Policies address
(Yes/No) address stakeholder
Employee engagement
wellbeing
b. Has the policy

been approved by the
Board? (Yes/No) Yes
c. Web Link of the https://mtar.in/investor-relations/corporate-governance/policies-related-documents/

Policies, if available
2 Whether the entity
has translated the
policy into Yes
procedures.
(Yes / No)
3 Do the enlisted
policies extend to Yes
your value chain
partners? (Yes/No)
4 Name of the national The company has qualified for various management and quality standards such as
and international •AS9100D
codes/certifications/ •ISO 9001:2015
labels/ standards •ISO 45001:2018
(e.g. Forest •ISO/IEC 27001 : 2013
Stewardship Council, •ISO 14001:2015
Fairtrade, Rainforest •NADCAP
Alliance, Trustee)
standards (e.g. SA
8000, OHSAS, ISO,
BIS)
adopted by your
entity and mapped to
each principle.
Disclosure P P P P P P P P P
Questions 1 2 3 4 5 6 7 8 9
5 Specific The company has taken up targets internally across all the cross-functional teams to reduce
commitments, goals energy consumption, use of raw materials, have zero accidents, increase diversity and inclusion, taking
and targets set by up more community development activities and embedding ESG values into all the business segments.
the entity with
defined timelines,
if any
6 Performance of the The company has installed solar power capacity for reducing energy consumption. As an
entity against the ongoing practice there is constant endeavour to reduce the consumption of raw materials which is
specific advantageous economically and sometimes a technical requirement as well. The company is an
commitments, goals equal opportunity employer and does not discriminate based on gender, religion, region, caste or
and targets sexual orientation in its recruitment or internal evaluations. We seek to enhance diversity by
along-with reasons encouraging a cosmopolitan all-inclusive workforce and have increased the number of female employees.
in case the same are
not met.
Governance, leadership and oversight
7 Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and
achievements
Please refer "Message from Managing Director"

8 Details of the Mr. Pusparaj Satpathy / [email protected]/040-44553333/23078312
highest authority
responsible for
implementation
and oversight of the
Business
Responsibility policy
(ies).
9 Does the entity have Yes. The Company’s BR policies are implemented by the Managing Director of the company. The CSR
a specified Committee and the Risk Management Committee evaluate sustainability related issues, from time to
Committee of the time.
Board/ Director
responsible for
decision making
on sustainability
related issues? (Yes
/ No). If yes, provide
details.
10. Details of Review of NGRBCs by the Company:
Subject for Review Indicate whether review was undertaken by Frequency

Director / Committee of the Board/Any other (Annually/ Half yearly/ Quarterly/ Any other
Committee please specify)
P P P P P P P P P P P P P P P P P P
1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
Performance against All the policies of the company are approved and reviewed periodically by the board on
above policies and follow need basis. During the review process effectiveness is evaluated and the new trends in
up action markets are considered based on which amendments are made as may be necessary.
Compliance with The Company complies with the extant regulations and principles as are applicable from time to time.
statutory requirements
of relevance to the
principles, and,
rectification of any
non-compliances
112
Subject for Review Indicate whether review was undertaken by Frequency
Director / Committee of the Board/Any other (Annually/ Half yearly/ Quarterly/ Any other
Committee please specify)
P P P P P P P P P P P P P P P P P P
1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9
11. Has the entity carried Yes

out independent Assessed by Dun & Bradstreet
assessment/ evaluation of
the working of its policies
by an external agency?
(Yes/No). If yes, provide
name of the agency.
12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:
Questions
P P P P P P P P P
1 2 3 4 5 6 7 8 9
The entity does not

consider the
Principles material to its
NA NA NA NA NA NA NA NA NA
business
(Yes/No)
The entity is not at a
stage where it is in a
position to formulate
NA NA NA NA NA NA NA NA NA
and implement the
policies on specified
principles (Yes/No)
The entity does not have
the financial or/human
and technical resources NA NA NA NA NA NA NA NA NA
available for the task
(Yes/No)
It is planned to be done
in the next financial year NA NA NA NA NA NA NA NA NA
(Yes/No)
Any other reason

(please specify) NA NA NA NA NA NA NA NA NA
SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core
Elements with key processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While
the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership
indicators may be voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially,
environmentally and ethically responsible.
PRINCIPLE 1
BUSINESS SHOULD CONDUCT AND GOVERN THEMSELVES WITH INTEGRITY AND IN A MANNER THAT
IS ETHICAL, TRANSPARENT AND ACCOUNTABLE
ESSENTIAL INDICATORS
1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year:
Total number
Topics/Principles % age of persons in
of training and
Segment covered under the respective category
awareness
training and its impact covered by the awareness
programmes held
Code of Conduct, Whistle-blower Policy of
Board of Directors 1 the Company, Human Rights Policies of the 100 %
Company, Safety and sustainability training
Key Managerial
2 the Company, Human Rights Policies of the 100 %
Personnel
Employees other Code of Conduct, Whistle-blower Policy of
than BoD and 4 the Company, Human Rights Policies of the 75%
KMPs Company, Safety and sustainability training
Workers 4 the Company, Human Rights Policies of the 75 %
2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in
proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the
financial year, in the following format (Note: the entity shall make disclosures on the basis of materiality as specified in
Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the
entity’swebsite):
Monetary
Name of the regulatory/ Has an appeal
NGRBC Brief of the
enforcement agencies/ Amount (In INR) been preferred?
Principle Case
judicial institutions (Yes/No)
Penalty/ Fine Nil
Settlement Nil
Compounding Fee Nil
Non-Monetary
Name of the regulatory/

NGRBC Has an appeal been preferred?
enforcement agencies/ Brief of the Case
Principle (Yes/No)
judicial institutions
Imprisonment Nil
Punishment Nil
3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary
or non-monetary action has been appealed
Name of the regulatory/ enforcement agencies/

Case Details
judicial institutions
Nil Nil
114
4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide
a web-link to the policy.
Although MTAR does not have a detailed anti-corruption or anti-bribery policy, the code of conduct and ethics policy
compels the employees to be ethical transparent and accountable, the whistle-blower policy enables the employees and
external Stakeholders to eliminate malpractices such as bribery and Corruption these policies are applicable to all Directors,
KMPs, employees, workers.
5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement
agency for the charges of bribery/ corruption:
FY-23 (Current Financial Year) FY-22 (Previous Financial Year)

Directors Nil Nil
KMPs Nil Nil
Employees Nil Nil
Workers Nil Nil
6. Details of complaints with regard to conflict of interest:

Number Remarks Number Remarks
Number of complaints received
in relation to issues of Conflict Nil Nil Nil Nil
of Interest of the Directors
Number of complaints received
in relation to issues of Conflict Nil Nil Nil Nil
of Interest of the KMPs
7.Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by
regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest
Not Applicable
LEADERSHIP INDICATORS
1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:
% age of value chain partners

Total number of
Topics / principles covered under the covered (by value of business done
awareness programmes
training with such partners) under the awareness
held
programmes
1.Compliance & Ethics 2.Human rights
3 70%
3.Safety & Sustainability
2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board?
(Yes/No) If Yes, provide details of the same.
Yes, the Company’s Code of Conduct requires the members of board, and employees to avoid
circumstances where their personal interests could conflict with the interests of the Company. The
Directors of the Company are required to disclose to the Board, on an annual basis, whether they, directly or
indirectly or on behalf of third parties, have material interest in any transaction or matter directly affecting the Company.
PRINCIPLE 2
BUSINESSES SHOULD PROVIDE GOODS AND SERVICES IN A MANNER THAT IS SUSTAINABLE AND
SAFE
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the
environmental and social impacts of product and processes to total R&D and capex investments made by the entity,
respectively.:
Current Financial Previous Financial

Details of improvements in environmental and social impacts
Year Year
R&D - - -
The investment has been towards various sustainability
projects such as installation of solar plant , occupational
health & safety improvement programmes, in-house machine
Capex 1.40% 11.24%
manufacturing to reduce import of machinery, in-house
development of erstwhile imported components for import
substitution etc
2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)
Yes
b. If yes, what percentage of inputs were sourced sustainably?
The company has consistently focussed on feasible sustainable sourcing and ensured that more than
95% of the raw materials, unrefined components and finished goods are shipped through sea, limiting air
shipments to reduce emissions. Our supply chain team practices volume consolidation by assessinglead
times, minimum order quantities and import multiple raw material in a solitary shipment ideally by sea. We
attempt to reuse transportation containers for up to 5 to 10 shipments to limit the consumption of resources.
3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at
the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
We dispose most of our waste which comes in the form of metal shavings and machining scrap to
vendors who then re-melt the same for re-use, thereby leading to conservation of natural
resources. Also, our products are transported in biodegradable plywood containers that are re-usable
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes,
whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution
Control Boards? If not, provide steps taken to address the same.
EPR isn’t applicable to the company as we do not manufacture any consumer products, there is no specific plastic,
electrical and electronic item produced where EPR is pertinent under E-waste Management.
1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for
manufacturing industry) or for its services (for service industry)? If yes, provide details in the following format?
Results
Boundary for
communicated in
Name of % of total which the Life Whether conducted
public domain
NIC Code Product/ Turnover Cycle Perspective by independent exter-
(Yes/No).
Service contributed / Assessment nal agency (Yes/No)
If yes, provide the
was conducted
web-link.
No. The company has not led any sort of Life Cycle Assessments for products.
116
2. If there are any significant social or environmental concerns and/or risks arising from production
or disposal of your products / services, as identified in the Life Cycle Perspective / Assessments (LCA)
or through any other means, briefly describe the same along-with action taken to mitigate the same.
Name of Product / Service Description of the risk /Concern Action taken

Not Applicable
3. Percentage of recycled or reused input material to total material (by value) used in production (for
manufacturing industry) or providing services (for service industry).
Indicate input material Recycled or re-used input material to total material

FY-23 Current Financial Year FY-22 Previous Financial Year
Company’s manufacturing processes generates some amount of metal scrap for which
engineering measures are taken on a continual basis to minimize waste generation. The scrap is
disposed to agencies who subsequently recycle the same for further use as may be applicable.
4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and
safely disposed, as per the following format:

Safely Safely
Re-Used Recycled Re-Used Recycled
Disposed Disposed
Plastic Not applicable as the organization’s business is B2B in nature and the products fall under
(including packaging) capital goods category with long lifecycle, the company has no specific consumer product
E-waste aside from aerospace and defence products, there is no product reclamation at the end of the
product life. However, shipping containers are reused and waste material generated at the
Hazardous waste plant and project sites are reused, recycled and disposed as per the applicable regulatory
Other waste requirements.
5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
Indicate product category Reclaimed products and their packaging materials as % of total
products sold in respective category
NA NA
PRINCIPLE 3
BUSINESS SHOULD RESPECT AND PROMOTE THE WELL-BEING OF ALL EMPLOYEES, INCLUDING THOSE
IN THEIR VALUE CHAIN
1. a. Details of measures for the well-being of employees:
% of employees covered by
Health Accident Maternity Paternal Day Care
Total Insurance Insurance benefits benefits Facilities
Category
(A) Number Number Number Number Number
% B/A) % (C/A) % (D/A) % (E/A) % (F/A)
(B) (C) (D) (E) (F)
Permanent employees
Male 532 - - - - - - - - - -
Female 23 - - - - - - - - - -
Total 555 - - - - - - - - - -
Category
% B/A) % (C/A) % (D/A) % (E/A) % (F/A)
(B) (C) (D) (E) (F)
Other than Permanent employees
Male 50 - - - - - - - - - -
Female 1 - - - - - - - - - -
Total 51 - - - - - - - - - -
b. Details of measures for the well-being of workers:
Category
% B/A) % (C/A) % (D/A) % (E/A) % (F/A)
(B) (C) (D) (E) (F)
Permanent workers
Male 515 515 100 515 100 - - - - - -
Female 0 0 0 0 0 - - - - - -
Total 515 515 100 515 100 - - - - - -
Other than Permanent workers
Male 432 - - - - - - - - - -
Female 0 - - - - - - - - - -
Total 432 - - - - - - - - - -
2. Details of retirement benefits, for Current Financial Year and Previous Financial Year.
FY 2022-23 Current Financial Year FY 2021-22 Previous Financial Year

No. of No. of
Deducted and No. of workers Deducted and
Benefits employees No. of workers employees
deposited with covered as deposited with
covered as covered as a % covered as
the authority a % of total the authority
a % of total of total workers a % of total
(Y/N/N.A) workers (Y/N/N.A)
employees employees
PF 100% 100% Y 100% 100% Y
Gratuity 84% 46% Y 90% 64.5% Y
ESI 32% 38% Y 10.75% 23.0% Y
Others
please - - - - - -
specify
118
3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the
requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the
entity in this regard
Yes, most of the Company’s permanent office buildings and manufacturing locations are accessible to differently
abled employees and workers. Such arrangements include easily accessible offices, entrances, doors and
availability of ramps and elevators etc.
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016?
If so, provide a web-link to the policy.
The code of conduct provides guidelines for ensuring fairness and acting against discrimination on the basis of
disability, race, gender, religion, region, age, or any other factors.
5. Return to work and Retention rates of permanent employees and workers that took parental leave.
Permanent employees Permanent employees

Gender Return to work rate Retention Rate Return to work rate Retention Rate
Male 100% 100% 100% 100%
None availed during None availed during
Female NA NA
the period. the period.
Total 100% 100% 100% 100%
6. Is there a mechanism available to receive and redress grievances for the following categories of employees and
worker? If yes, give details of the mechanism in brief.
Yes/No
(If Yes, then give details of the
mechanism in brief)
Permanent Workers Yes Grievance redressal mechanism is available to all
Other than Permanent Workers employees as well as stakeholders with procedure
for raising of grievances /complaints as well as their
Permanent Employees escalation and redressal. The same is detailed in the
Other than Permanent Employees Code of Conduct of the Company.
7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:
FY-23(Current Financial Year) FY-22(Previous Financial Year)

No. of employees /
Total employees/ Total employees / No. of employees /workers
Category workers in respective
workers in % workers in in respective category, who %
category, who are part
respective (B /A) respective are part of association(s) or (D/C)
of association(s) or
category (A) category (C) Union (D)
Union (B)
Total
Permanent 555 0 0% 448 0 0%
Employees
Male 532 0 0% 435 0 0%
Female 23 0 0% 13 0 0%
Total
Permanent 515 515 100% 536 536 100%
Workers
Male 515 515 100% 536 536 100%
Female 0 0 0% 0 0 0%
8. Details of training given to employees and workers:

On Health and On Skill On Health and safety On Skill
Category Total safety measures upgradation Total measures upgradation
(A) (D)
No. (B) % B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D)
Employees
Male 532 404 76 % 345 65 % 435 391 90 % 174 40%
Female 23 23 100 % 15 67 % 13 13 100 % 7 54%
Total 555 427 77 % 360 65 % 448 404 90 % 181 40%
Workers
Male 947 852 90% 492 52 % 831 748 90% 208 25%
Female 0 0 0% 0 0% 0 0 0% 0 0%
Total 947 852 90% 492 52% 831 748 90% 208 25%
9. Details of performance and career development reviews of employees and worker:

Category % %
Total (A) No. (B) Total (C) No. (D)
(B /A) (D/C)
Employees
Male 582 384 66 % 435 274 63%
Female 24 12 50 % 13 6 46%
Total 606 396 65 % 448 280 62.5%
Workers
Male 947 947 100% 831 831 100%
Female 0 0 0 0 0 0
Total 947 947 100% 831 831 100%
10. Health and safety management system:
a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No).
If yes, the coverage such system?
Yes, occupational health and safety management system has been implemented and the company is certified for
ISO 45001:2018
b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis
by the entity?
The Company has risk management process in place which has five steps-Identification, Assessment, Mitigation,
Monitoring and Reporting All the stakeholders involved participate in the risk assessment, after the analysis plans
are drawn, documented and implemented along the timelines.
120
c. Whether you have processes for workers to report the work related hazards and to remove themselves from such
risks. (Y/N)
Yes, the Company has processes for workers to report work related hazards for mitigating such risks
d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services? (Yes/ No)
Yes, The Workers of the company have access to non-occupational medical and healthcare services and are also
covered under Group Medical as well as Accident Insurance Policies by the Company.
11. Details of safety related incidents, in the following format:
FY-23 FY-22
Safety Incident/Number Category
(Current Financial Year) (Previous Financial Year)
Lost Time Injury Frequency
Employees 0 0
Rate (LTIFR)
(per one million-person
Workers 3.28 5.21
hours worked)
Employees 0 0
Total recordable work
related injuries Workers 11 15
Employees 0 0
No. of fatalities
Workers 0 0
High consequence work-related Employees 0 0

injury or ill-health
(excluding fatalities) Workers 0 0
12. Describe the measures taken by the entity to ensure a safe and healthy work place.
The Management is strongly committed towards EHS by having risk management process in place to identify hazards
and act towards minimising risk. The risk management process has five steps-Identification, Assessment, Mitigation,
Monitoring and Reporting. All the stakeholders involved participate in the risk assessment as well as implementation of
mitigation measures.
13. Number of Complaints on the following made by employees and workers:
FY 2022-23 Current Financial Year FY 2021-22 Previous Financial Year

Pending Pending
Filed during resolution at Filed during resolution
Remarks Remarks
the year the end of the year at the end of
year year
Working
Nil
Conditions
Health & Safety Nil
14. Assessments for the year:

% of your plants and offices that were as-
sessed (by entity or statutory authorities or
third parties)
Health and safety practices 100%
Working Conditions 100%
15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and
on significant risks / concerns arising from assessments of health & safety practices and working conditions.
All the safety related incidents are investigated properly as per the defined process. Appropriate corrective as well as
preventive actions in line with our EHS standards are designed and implemented after Root Cause analysis is done.
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees
(Y/N) (B) Workers (Y/N)
Employees No
Workers Yes
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited
by the value chain partners.
The Company ensures that all relevant clauses relating to statutory compliance are met. These are a standard feature in
our contracts / orders and bills are processed subject to compliance requirements being met.
3. Provide the number of employees / workers having suffered high consequence work- related injury / ill-health /
fatalities (as reported in Q11 of Essential Indicators above), who have been are rehabilitated and placed in
suitable employment or whose family members have been placed in suitable employment:
No. of employees/workers that are

rehabilitated and placed in suitable
Total no. of affected employees/ workers
employment or whose family members have
been placed in suitable
FY-23 FY-22 FY-22
FY-23
(Current Financial (Previous Financial (Previous Financial
(Current Financial Year)
Year) Year) Year)
Employees Nil Nil Nil Nil

Workers Nil Nil Nil Nil
4. Does the entity provide transition assistance programs to facilitate continued employability and the management
of career endings resulting from retirement or termination of employment? (Yes/ No)
The Company provides transition assistance programmes to facilitate continued employability and the management of
careers till retirement.
5. Details on assessment of value chain partners:
% of value chain partners (by value of business done with such partners)
that were assessed
Health and Safety Practices Assessment of value chain partners on the aspects of health and safety and
Working Conditions workplace conditions is currently not in practice.
122
6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from
assessments of health and safety practices and working conditions of value chain partners.
All the safety related incidents are investigated properly as per the defined process. Appropriate corrective and preventive
action plans are designed and implemented.
Health & Safety
• Adequate provision of First aid boxes, fire prevention & control equipment and engineering control are put in place to
maintain a safe working atmosphere.
• Providing appropriate PPE to all the employees and ensuring proper usage along with requisite training and awareness
campaigns.
Working Conditions
• Employees getting paid with legal minimum wages
• Providing benefits like PF, ESI, Gratuity and Bonus etc to eligible employees
PRINCIPLE 4
BUSINESSES SHOULD RESPECT THE INTERESTS OF AND BE RESPONSIVE TO ALL ITS STAKEHOLDERS
1. Describe the processes for identifying key stakeholder groups of the entity.
Any individual or group of individuals that enhance the value of the company, influence operations and activities
in the company, regulate the market, directly or indirectly while being committed to ESG regulations and aiding in
local area advancements are considered as stakeholders. To accomplish compelling stakeholder engagement,
we conduct tenacious evaluations and connect with them on calls one on one to gauge their perspectives and
limit risks, develop validity and gain their trust.
2. List stakeholder groups identified as key for your entity and the frequency of engagement with each
stakeholder group.
Whether identified as
Purpose and scope of engagement
Stakeholder Vulnerable & Channels of Frequency of
including key topics and concerns raised
Group Marginalized Group communication engagement
during such engagement
(Yes/No)
MD/CEO communications, Communication and
Email, Notice Training Sessions with Unit Heads
Employees N Regularly
boards, Intranet Training Programs, employee centric
initiatives.
We contribute on an on-going basis to
community initiatives like child-
care, health and education through our
partners like St Jude India Child care centres,
Interviews, Sri Satya Sai Annapoorna Trust, Parampara
Answering Foundation, Learning space foundation,
queries. Grace Foundation, Abhayajyothi Society for
Community N Need based
E-Mails Empowerment of People, distributing
Website sanitary napkins for under privileged
women. In addition, we recruit
apprentices from college and train
them on various manufacturing
technologies and we carry out relationship
building programs through colleges.
Queries and grievance redressal and supply chain
Suppliers N Email Regularly
management meetings with Head SCM.
Monthly board MIS prior to listing, E-mail
Investors or
Email, Website, Communications, Annual reports, Analyst
external N Regularly
Newspaper meets post listing, official news releases and
channels
presentations.
Email, Website, Dividend Updates and performance progress of

Shareholders N Quarterly
Newspaper the entity
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental,
and social topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
Quarterly performance updates and reviews are conducted by the respective committees on these topics and
consolidated performance report and outcome are presented in the board meeting on quarterly basis. The
company is conducts regular stakeholder engagement exercises from time to time. As per the respective concern,
the various committees of the Board meet periodically to review the progress of the company in respective areas.
2. Whether stakeholder consultation is used to support the identification and management of environmental,
and social topics (Yes / No). If so, provide details of instances as to how the inputs received frostakeholders on these
topics were incorporated into policies and activities of the entity.
Yes. Materiality assessment and stakeholder inputs are taken forward to identify material topics of concern on ESG topics.
Based on the significance of these concerns, strategy development, policy formulation and monitoring mechanisms are
developed and implemented.
3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/
marginalized stakeholder groups.
We contribute on an on-going basis to community initiatives like childcare, health and education through
our partners like St Jude India Child care centres, Sri Satya Sai Annapoorna Trust, Parampara Foundation,
Learning space foundation ,Grace Foundation, Abhayajyothi Society for Empowerment of People,
distributing satinary napkins for under privileged women. In addition, we recruit apprentices from college and train
them on various manufacturing technologies and we carry out relationship building programs through colleges.
PRINCIPLE 5
BUSINESSES SHOULD RESPECT AND PROMOTE HUMAN RIGHTS
1. Employees and workers who have been provided training on human rights issues and policy (ies) of the entity, in
the following format:

Category No. of employees No. of employees
% %
Total (A) /workers covered Total (C) /workers covered
(B /A) (D/C)
(B) (D)
Employees
Permanent 555 416 75% 448 336 75%
Other than
51 36 72% 45 32 72%
permanent
Total Employees 606 452 75% 493 368 75%
Workers
Permanent 515 443 86% 536 428 80%
Other than
432 341 79% 295 221 75%
permanent
Total Workers 947 784 82% 831 649 78%
124
2. Details of minimum wages paid to employees and workers, in the following format:

Equal to More than Equal to More than
Category Total Minimum Wage Minimum Wage Total Minimum Wage Minimum Wage
(A) (D)
No. (B) % B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D)
Employees
Permanent
Male 532 532 100% 532 100% 435 435 100% 435 100%
Female 23 23 100% 23 100% 13 13 100% 13 100%
Other than Permanent
Male 51 51 100% 51 100% 45 45 100% 45 100%
Female 1 1 100% 1 100% 0 0 100% 0 100%
Workers
Permanent
Male 515 515 100% 515 100% 536 536 100% 536 100%
Female 0 0 - 0 - 0 0 - 0 -
Other than Permanent
Male 432 432 100% 432 100% 295 295 100% 295 100%
Female - - - - - - - - - -
3. Details of remuneration/salary/wages, in the following format:
Male Female
Median remuneration/ Median remuneration/
Number salary/ wages of Number salary/ wages of
respective category respective category
Board of Directors
8# 26,10,000.00 1* 24,70,000.00
(BoD)
Key Managerial
2## 89,80,000.00 0 0
Personnel
Employees other
578 36,800.00 24 32,350.00
than BoD and KMP
Workers 947 24,794 0 0

# Includes Managing Director and Executive director and Independent directors
## Includes Chief Financial Officer and Company Secretary
* Only one Female Director - Total remuneration paid is considered
4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues
caused or contributed to by the business? (Yes/No)
The Managing Director of the Company addresses all human rights impacts of the business.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
All grievances received are recorded, duly analysed, investigated and suitable actions as appropriate are taken to
resolve them.
6. Number of Complaints on the following made by employees and workers:
FY-23 Current Financial Year FY-22 Current Financial Year

Pending Pending
Filed during resolution at Filed during resolution at
Remarks Remarks
the year the end of the year the end of
the year the year
Sexual Harassment Nil Nil Nil Nil Nil Nil
Discrimination at
Nil Nil Nil Nil Nil Nil
workplace
Child Labour Nil Nil Nil Nil Nil Nil
Forced Labour/
Involuntary Labour
Wages Nil Nil Nil Nil Nil Nil
Other human rights

related issues
7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
The Company has policies in place such as Prevention of Sexual Harassment Policy, Code of Conduct which
require employees to behave responsibly in their action and conduct. The Whistle Blower policy allows the
employees to report incidents which are unethical or discriminatory. The Company also has an Internal Complaints
Committee for the protection of women at workplace.
8. Do human rights requirements form part of your business agreements and contracts? (Yes/No)
Adherence to required compliance including child labour, forced labour and human rights form a part of the Company’s
business agreements and contracts.
9. Assessments of the year
% of your plants and offices that were assessed (by entity or statutory
authorities or third parties)
Child labour
Forced/involuntary labour 100 %.
Sexual harassment The Company has Policies in place to address these issues and their
Discrimination at workplace implementation is directed towards adherence to applicable laws and
upholding the spirit of a fair, safe and equitable workplace.
Wages
Others – please specify
10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising
from the assessments at Question 9 above.
No significant risks / concerns.

126
1. Details of a business process being modified / introduced as a result of addressing human rights grievances
/complaints.
No complaints have been received for human rights violation.
2. Details of the scope and coverage of any Human rights due-diligence conducted.
The organization adheres to the standards and approaches laid out for the employees, workers and associates,
which are extended across the value chain partners representatives. All the concerned entities adhere to the
ethical conduct of business.
3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements
of the Rights of Persons with Disabilities Act, 2016?
Most of the Company’s permanent office buildings and manufacturing locations are accessible to
differently abled employees and workers. Such arrangements include easily accessible offices, entrances,
doors and availability of ramps and elevators etc.
4. Details on assessment of value chain partners:
% of your plants and offices that were assessed (by entity or statutory
authorities or third parties)
Sexual harassment
Discrimination at workplace
Child labour
Currently this is not under assessment.
Forced/involuntary labour
Wages
Others – please specify
5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 4 above
Not Applicable
PRINCIPLE 6
BUSINESSES SHOULD RESPECT AND MAKE EFFORTS TO PROTECT AND RESTORE THE ENVIRONMENT
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:
FY-23 FY-22
Parameter
Total electricity consumption (A) 42,696.24 Gigajoules 35,732.40 Gigajoules
Total fuel consumption (B) 897.17 Gigajoules 985.34 Gigajoules
Energy consumption through other sources (C ) 3529.99 Gigajoules 3558.78 Gigajoules
Total energy consumption (A+B+C) 47,123.40 Gigajoules 40,276.52 Gigajoules
Energy intensity per rupee of turnover
82.13 (Gigajoules/INR crores) 125.07 (Gigajoules/INR crores)
(Total energy consumption/turnover in rupees)
Energy intensity (optional) – the relevant metric - -
may be selected by the entity
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency. (N)
2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance,
Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the
PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
No. The Company is not identified as designated consumer under the Performance Achieve and Trade (PAT)
Scheme of the Government of India.
3. Provide details of the following disclosures related to water, in the following format:
FY-23 FY-22
Parameter
Water withdrawal by source (in kilolitres)
(I) Surface water 12,960 8,546
(ii) Groundwater 41,786 40,636
(iii) Third party water 0 0
(iv) Seawater / desalinated water 0 0
(v) Others 0 0
Total volume of water withdrawal
54,745.60 50,182
(in kilolitres) (i + ii + iii + iv + v)
Total volume of water consumption
54,745.60 50,182
(in kilolitres)
Water intensity per rupee of turnover
0.01019 L per rupee of turnover 0.01558 L per rupee of turnover
(Water consumed / turnover)
Water intensity (optional) – the relevant
metric may be selected by the entity
- -
4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage
and implementation.
The company implements water conservation through reduce, reuse, recharge and recycle approach, enabling
the Company to implement ZLD at its locations.
5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:
FY-23 FY-22
Parameter Please specify unit
NOx MT
SOx MT
Particulate matter (PM) MT The air emission sources are mainly from generators and
Persistent organic manufacturing machines which are monitored by the
MT
pollutants (POP) entity and submitted for validation to the
Volatile organic compounds Telangana State Pollution Control Board annually in Form-5.
(VOC)
MT All emissions are well within the limits as prescribed by
the TSPCB.
Hazardous air pollutants
MT
(HAP)
Others-Please specify MT
128
(Y/N) If yes, name of the external agency.
Yes. Assessed by Telangana State Pollution Control Board.
6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following
format:
FY-23 FY-22
Parameter Unit
Total Scope 1 emissions (Break-up of
Tonnes of CO2
the GHG into CO2, CH4, N2O, HFCs, 454 362
equivalent
PFCs,SF6, NF3, if available)
Total Scope 2 emissions (Break-up of
Tonnes of CO2
the GHG into CO2, CH4, N2O, HFCs, 5656 4733
equivalent
Total Scope 1 and Scope 2 emissions per Tonnes of

10.64 15.82
rupee of turnover CO2/Crore INR
Total Scope 1 and Scope 2 emission

intensity (optional)-the relevant metric - - -
may be selected by the entity
7. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details
Some of our products and their development are our major contribution towards clean technology thereby
contributing to reduction in global carbon footprint and greenhouse emissions. As part of our green initiative
as well as thrust towards renewable energy, we have set up solar rooftop panels across the units for captive
power generation and switched over to LED lights.
8. Provide details related to waste management by the entity, in the following format:
FY-23 FY-22
Parameter
Total Waste generated (in metric tonnes)
Plastic waste (A) 0 0
E-waste (B) 0 0
Bio-medical waste (C) 0 0
Construction and demolition waste (D) 0 0
Battery waste (E) 0 0
Radioactive waste (F) 0 0
Other Hazardous waste. Please specify,
Chemical Liquid waste-638Tonnes Chemical Liquid waste-579 Tonnes
if any. (G)
Other Non-hazardous waste generated (H).
Please specify, if any. (Break-up by composition Scrap Waste- 833 Tonnes Scrap Waste-528 Tonnes
i.e. By materials relevant to the sector)
Total (A+B + C + D + E + F + G+H) 1472 Tonnes 1107 Tonnes
FY-23 FY-22
Parameter
For each category of waste generated, total waste recovered through recycling, re-using or other recovery
operations (in metric tonnes)
Category of waste
(i) Recycled 833 Tonnes 528 Tonnes
(ii) Re-used - -
(iii) Other recovery operations - -
Total 833 Tonnes 528 Tonnes
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
(i) Incineration - -
(ii) Landfilling - -
(iii) Other disposal operations - -
Total - -
9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted
by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices
adopted to manage such wastes.
We dispose most of our waste which comes in the form of metal shavings and machining scrap to vendors who then
re-melt the same for re-use, thereby leading to conservation of natural resources. Also, our products are transported in
biodegradable plywood cartons that are re-usable.
10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife
sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.)
where environmental approvals / clearances are required, please specify details in the following format:
Location of
Type of Whether the conditions of environmental approval/ clearance are being
S. No. Operations/
Operations complied with? If no, the reasons thereofnd coreective action taken, if any.
Offices
Not Applicable
11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the
current financial year:
Name and EIA Date Whether conducted Results communicated Relevant Web link
brief details Notification by independent in public domain
of project No. external agency (Yes/No)
(Yes/No)
No environmental impact assessments were required based on applicable law.
12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water
(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, and Environment protection act
and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format:
Specify the law / regulation/ Provide details Any fines / penalties / action taken by
S. Corrective action
guidelines which was not of the non- regulatory agencies such as pollution
No. taken, if any
complied with compliance control boards or by courts
All the units under the entity are in compliance with the applicable environmental laws/regulations and
1
guidelines as per the national and state level mandates.
130
1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable
sources, in the following format:
FY-23 FY-22
Parameter
From renewable sources
Total electricity consumption (A) 5696.83 Gigajoules 0
Total fuel consumption (B) 0 0
Energy consumption through other sources (C ) 0 0
Total energy consumed from renewable sources
5696.83 Gigajoules 0
(A+B+C)
From non-renewable sources
Total electricity consumption (D) 42,696.24 Gigajoules 35,732.40 Gigajoules
Total fuel consumption (E) 897.17 Gigajoules 985.34 Gigajoules
Energy consumption through other sources (F) 3529.99 Gigajoules 3558.78 Gigajoules
Total energy consumed from non-renewable
47,123.40 Gigajoules 40276.52 Gigajoules
sources(D+E+F)
2. Provide the following details related to water discharged:
FY-23 FY-22
Parameter
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
No treatment 0 0
With treatment – please specify level of treatment
(ii) To Groundwater
No Treatment 0 0
(iii) To Seawater
No treatment 0 0
(iv) Sent to third-parties
No treatment 0 0
(v) Others
No treatment 0 0
Total water discharged (in kilolitres) 0 0
3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):
For each facility / plant located in areas of water stress, provide the following information : NA
(i) Name of the area
(ii) Nature of operations
(iii) Water withdrawal, consumption and discharge in the following format:
FY-23 FY-22
Parameter
Water withdrawal by source (in kilolitres)
(i) Surface water
(ii) Groundwater
(iii) Third party water NA NA
(iv) Seawater / desalinated water
(v) Others
Total volume of water withdrawal (in kilolitres) NA NA
Total volume of water consumption (in kilolitres) NA NA
Water intensity per rupee of turnover

NA NA
(Water consumed / turnover)
Water intensity (optional) – the relevant metric may be
NA NA
selected by the entity
Water discharge by destination and level of treatment (in kilolitres)
(i) Into Surface water
- No treatment NA NA
- With treatment-please specify level of treatment
(ii) Into Groundwater
(iii) Into Seawater
(iv) Sent to third-parties
(v) Others
Total water discharged (in kilolitres) NA NA
132
4. Please provide details of total Scope 3 emissions & its intensity, in the following format:
FY-23 FY-22
Parameter Unit
Total Scope 3 emissions
(Break-up of the GHG into
Metric Tonnes of CO2 1614.39 710
CO2, CH4, N2O, HFCs,
Total Scope 3 emissions per Metric tonnes of CO2

2.81 2.20
rupee of turnover Equivalent/ Crores INR
Total Scope 3 emission

intensity (optional) – the
relevant metric may be
- - -
selected by the entity
5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide
details of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and
remediation activities.
Not Applicable
6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve
resource efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please
provide details of the same as well as outcome of such initiatives, as per the following format:
Initiative Details of the initiative

Sr. No. Outcome of the initiative
Undertaken (Web link, if any, may be provided along-with summary)
Please refer to Question 7 of Essentail Indicators under Principle 6
7. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
The Company has emergency preparedness plans in place to deal with any sort of emergency situations,
hazards & risks, including the provision for first aid. Relevant information and Basic training related to emergency
preparedness and response is provided to the employees where the duties and responsibilities of various entities
are communicated. In case of occurrence of any unfortunate incident in the plant, proper analysis is carried out
and appropriate preventive measures are initiated to avoid recurrence in future.
8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What
mitigation or adaptation measures have been taken by the entity in this regard.
No significant adverse impact reported from any value chain partners.
9. Percentage of value chain partners (by value of business done with such partners) that were assessed for
environmental impacts.
As of now, the Company does not have any formal assessment mechanism to monitor the environmental impact
of value chain partners’ activities. However The code of conduct and ethics policy is applicable to all the
business partners which urges one to align their goals with that of the socio-environment regulations.
PRINCIPLE 7
BUSINESSES, WHEN ENGAGING IN INFLUENCING PUBLIC AND REGULATORY POLICY, SHOULD DO SO

IN A MANNER THAT IS RESPONSIBLE AND TRANSPARENT
1. a. Number of affiliations with trade and industry chambers/ associations.
b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body)
the entity is a member of/ affiliated to.
Name of the trade and industry chambers/ Reach of trade and industry chambers/ associations
S .No
associations (State/National)
1 Confederation of Indian Industry National
2 Society of Indian Defence Manufacturer National
The Federation of Telangana Chambers of
3 State
Commerce and Industry
4 Export Promotion Council National
2. Provide details of corrective action taken or underway on any issues related to anti- competitive conduct by
the entity, based on adverse orders from regulatory authorities.
Name of the authority Brief of the case Corrective action taken

The company has not engaged in any anti-competitive conduct
1. Details of public policy positions advocated by the entity:
Frequency of Review by
Method
Whether information Board
Public policy resorted Web Link,
S. No available in public (Annually/ Half yearly/
advocated for such if available
domain? (Yes/No) Quarterly/Others– please
advocacy
specify)
1 Nil Nil Nil Nil Nil
PRINCIPLE 8
BUSINESS SHOULD PROMOTE INCLUSIVE GROWTH AND EQUITABLE DEVELOPMENT
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws,
in the current financial year.
Whether conducted by
Name and
S/A Notification Date of independent external Results communicated in Relevant
brief details of
No. Notification agency public domain (Yes/No) web link
project
(Yes/ No)
None of the projects undertaken by the Company in FY 2022-23 required Social Impact Assessments (SIA).
134
2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by
your entity, in the following format:
Name of
No. of Project % of PAFs Amounts paid
Project for
S. No. State District Affected covered by to PAFs in the
which R&R is
Families (PAFs) R&R FY (In INR)
ongoing
NA NA NA NA NA NA NA
3. Describe the mechanisms to receive and redress grievances of the community.
A Grievance redressal policy for the community is in place, including mechanisms and procedure for raising of grievances
/complaints as well as their escalation and redressal in line with the Code of Conduct of the Company.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
FY -23 FY-22
Current Financial Year Previous Financial Year
Directly sourced from MSMEs/ small producer Nil Nil

Sourced directly from within the district and
Nil Nil
neighbouring districts
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
(Reference: Question 1 of Essential Indicators above):
Date of negative social impact identified Corrective action taken
Not Applicable
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational
districts as identified by government bodies:
S. No. State Aspirational District Amount spent (In INR)
1 Telangana Hyderabad 1.17 Cr
3. (a) Do you have a preferential procurement policy where you give preference to purchase from
suppliers comprising marginalized /vulnerable groups? (Yes/No)
No. Ours being a highly technical domain dealing with a niche clientele, the suppliers are often limited to those who are
qualified by the customer.
(b) From which marginalized /vulnerable groups do you procure?
Not Applicable
(c) What percentage of total procurement (by value) does it constitute?
Not Applicable
4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity
(in the current financial year), based on traditional knowledge:
Intellectual Property based Owned/ Acquired Benefit shared Basis of calculating benefit
S. No.
on traditional knowledge (Yes/No) (Yes / No) share
The Company does not derive any benefits from intellectual properties owned or acquired based on
1
traditional knowledge
5. Details of corrective actions taken or underway, based on any adverse order in intellectual property
related disputes wherein usage of traditional knowledge is involved
S. No. Name of authority Brief of the Case Corrective action taken
1 Not Applicable
6. Details of beneficiaries of CSR Projects:
No. of persons benefitted from CSR % of beneficiaries from vulnerable

S. No. CSR Project
Projects and marginalized groups
100 % of the projects undertaken serve
Donation to Local beneficiaries who are from the under
1 5000
Orphanages/NGO’s privileged, backward, vulnerable and
marginalised sections of society.
PRINCIPLE 9
BUSINESS SHOULD ENGAGE WITH AND PROVIDE VALUE TO THEIR CONSUMERS IN A RESPONSIBLE
MANNER
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Consumers/Public are furnished with various choices to interface with the Organization through email, phone,
and site. The Company has a committed personnel to respond to their queries and receive feedback in order
to improve its services
2. Turnover of products and/ services as a percentage of turnover from all products/service that carry
information about:
As a percentage to total turnover
Environmental and social parameters relevant to the product

Not applicable as the Company
Safe and responsible usage has a wide range of product across
different segments
Recycling and/or safe disposal
136
3. Number of consumer complaints in respect of the following:
FY 2022-23 (Current Financial Year) FY 2021-22 (Previous Financial Year)

Received Pending Remarks Filed during Pending Remarks
during the resolution at the year resolution
year the end of at the end of
year year
Data privacy
Advertising
Cyber-security
Delivery of
essential
services
Restrictive Trade
Practices
Unfair Trade
Practices
Other
4. Details of instances of product recalls on account of safety issues:
Number Reasons for recall
Voluntary recalls Nil Nil
Forced recalls Nil Nil
5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available,
provide a web-link of the policy.
The Company is certified for ISO/IEC 27001 : 2013 for Information Security and has a policy in place to provide the
framework for cyber security.
6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of
essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls;
penalty / action taken by regulatory authorities on safety of products / services.
None
1. Channels / platforms where information on products and services of the entity can be accessed
(provide web link, if available)
The Company’s business offerings can be found on the website- https://mtar.in/business-segments/

2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
All Business segments of the Company comply with the regulations and relevant voluntary codes concerning
the communications and pitch designed for the consumers. The Company’s communications are aimed to
enable the customers to make informed purchase decisions.
3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.
The company works on make to order system, however the Company has necessary mechanisms in place to inform
consumers if any major discontinuation happens
4. Does the entity display product information on the product over and above what is mandated as per
local laws? (Yes/No/Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard
to consumer satisfaction relating to the major products / services of the entity, significant locations of
operation of the entity or the entity as a whole? (Yes/No)
Not applicable, as the Company operates in B2B model.
5. Provide the following information relating to data breaches:
a. Number of instances of data breaches along-with impact
There were no data breaches during the year
b. Percentage of data breaches involving personally identifiable information of customers
NIL
138
ANNEXURE II
FORM MR-3
Secretarial Audit Report

(Pursuant to section 204(1) of the Companies Act, 2013 and
Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2023
To, extent of Foreign Direct Investment (FDI), Overseas

The Members Direct Investment and External Commercial Borrowings;
2. Compliance status in respect of the provisions of the
We have conducted the secretarial audit of the following Regulations and Guidelines prescribed
compliance of applicable statutory provisions and under the Securities and Exchange Board of India
the adherence to good corporate practices by Act, 1992 (‘SEBI ACT’) is furnished hereunder for the
MTAR Technologies Limited (hereinafter called “the financial year 2022-23:-
Company”). Audit was conducted in a manner that
provided us a reasonable basis for evaluating the i. The Securities and Exchange Board of India
corporate conducts/statutory compliances and (Substantial Acquisition of Shares and Takeovers)
expressing our opinion thereon. Regulations, 2011; Complied with yearly and
event-based disclosures, wherever applicable.
Based on our verification of the Company’s Books,
Papers, Minutes Books, Forms and Returns filed and ii. The Securities and Exchange Board of India
other Records maintained by the Company and (Prohibition of Insider Trading) Regulations, 2015 and
also the information provided by the Company, its Amended Regulations 2018; The Company has framed
officers, agents and authorized representatives during the code of conduct for regulating & reporting trading by
conduct of secretarial audit, we hereby report that in insiders and for fair disclosure and displayed the same
our opinion, the Company has, during the Financial Year on the Company’s website i.e., https://www.mtar.in
commencing from 1st April, 2022 and ended 31st March,
2023 complied with the statutory provisions listed iii.The Securities and Exchange Board of India
hereunder and also that the Company has proper Board- (Issue of Capital and Disclosure Requirements)
processes and compliance-mechanism in place to the Regulations, 2018; Not Applicable as the Company has
extent, in the manner and subject to the reporting made not issued any Capital during the year under review.
hereinafter:
iv. Securities and Exchange Board of India (Share Based
1. We have examined the books, papers, minutes Employee Benefits and Sweat Equity) Regulations, 2021;
books, forms and returns filed and other records Not Applicable as the Company has not issued any
maintained by the Company for the financial year
Employee Stock Options during the year under review.
ended on 31st of March, 2023 according to the
provisions of:
v. The Securities and Exchange Board of India (Issue and
(i) The Companies Act, 2013 (the Act) and the rules made Listing of Non-Convertible Securities) Regulations, 2021;
there under: Not Applicable as the Company has not issued
any non-convertible securities during the year
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) under review.
and the Rules made there under;
(iii) The Depositories Act, 1996 and the Regulations and

Bye-laws framed there under;
(iv) Foreign Exchange Management Act, 1999 and

the rules and regulations made there under to the
vi. The Securities and Exchange Board of India During the period under review the
(Registrars to an issue and Share Transfer Agents) Company has complied with the provisions of the
Regulations, 1993, regarding the Companies Act and Act, Rules, Regulations, Guidelines, Standards,
dealing with client; Not Applicable as the Company is not etc. mentioned above including the following:
registered as Registrar to an Issue and Share Transfer
Agent during the year under review. However, a) During the year the Company has conducted 6
the Company has KFin Technologies Limited as its Share meetings of the Board of Directors, 6 Meetings of
Transfer Agent. Audit Committee meeting, 4 Meetings of Nomination
and Remuneration Committee, 2 Meetings of Risk
vii. Securities and Exchange Board of India Management Committee, 1 Meeting of Stakeholder
(Delisting of Equity Shares) Regulations, 2021; Not relationship Committee, 1 Meeting of Corporate
Applicable as the Company has not delisted/ proposed Social Responsibility Committee and 1 Meeting of
to delist its equity shares during the year under review. Independent Directors.
viii. The Securities and Exchange Board of India b)As per the information and explanations
(Buyback of Securities) Regulations, 2018; Not provided by the Company, its officers, agents and authorized
Applicable as the Company has not bought back/ representatives during the conduct of secretarial audit, we
proposed to buy-back any of its securities during the year report that:
under review.
(i) the provisions of the Foreign Exchange Management
ix. Other applicable laws include the following Act, 1999 and the Rules and Regulations made there under
to the extent of:
1. Factories Act, 1948
2. Industrial Disputes Act, 1947
3. The Payment of Wages Act, 1936 • External Commercial Borrowings were not attracted
4. The Minimum Wages Act, 1948 to the Company under the financial year under report;
5. Employees’ State Insurance Act, 1948
6. The Employees’ Provident Funds and Miscellaneous • Foreign Direct Investment (FDI) was not attracted to
Provisions Act, 1952 the Company under the financial year under report;
7. The Payment of Bonus Act, 1965
8. The Payment of Gratuity Act, 1972 • Overseas Direct Investment by Residents in Joint
9. The Contract Labour (Regulation & Abolition) Act, 1970 Venture/Wholly Owned Subsidiary abroad was not
10. The Maternity Benefit Act, 1961 attracted to the Company under the financial year under
11. The Child Labour (Prohibition & Regulation) Act, 1986 report.
12. The Industrial Employment (Standing Order) Act, 1946
13. The Employees’ Compensation Act, 1923 (ii) As per the information and explanations
14. The Apprentices Act, 1961 provided by the Company, its officers, agents
15. Equal Remuneration Act, 1976 and authorized representatives during the
16. The Employment Exchange (Compulsory Notification of conduct of Secretarial Audit, we report that the
Vacancies) Act, 1959 Company has not made any GDRs/ADRs or any Commercial
Instrument under the financial year under report.
Environmental Laws
We further report that:
1.Water (Prevention and Control of Pollution) Cess Act,
1977; •Mr. Gunneswara Rao Pusarla is the Chief Financial
2.Air (Prevention and Control of Pollution) Act, 1981; Officer of the Company. Further, Mr. Shubham Bagadia is the
3.Environment (Protection) Act, 1986; Company Secretary and Compliance Officer of the Company.
We have also examined compliance with the applicable •The Company has Internal Auditors namely
clauses of the following: M/s. Seshachalam & Co., Chartered Accountants,
Hyderabad and Cost Auditors namely M/s Sagar &
(i) Secretarial Standards issued by The Institute of Associates
Company Secretaries of India.
•The website of the Company contains policies as
(ii) The Securities and Exchange Board of India specified by SEBI (Listing Obligation and Disclosure
(Listing Obligations and Disclosure Requirements) Requirements) Regulations, 2015 and the provisions of
Regulations, 2015 were complied with to the extent Companies Act, 2013.
applicable.
140
• The Board of Directors of the Company is duly • We, further report that there are adequate systems
constituted with proper balance of Executive Directors, and processes in the Company commensurate with the
Non-Executive Directors and Independent Directors. The size and operations of the Company to monitor and
changes in the composition of the Board of Directors ensure compliance with applicable laws, rules,
that took place during the period under review were regulations and guidelines.
carried out in compliance with the provisions of the Act
• The compliance by the Company of applicable
• Adequate notice of board meeting is given to all the financial laws like Direct and Indirect tax laws
directors along with agenda at least seven days in has not been reviewed in this audit since the
advance, and a system exists for seeking and obtaining same have been subject to review by statutory
further information and clarifications on the agenda items financial audit and other designated professionals.
before the meeting and meaningful participation at the
meeting.
• As per the minutes of the meeting duly recorded and

signed by the Chairman, the decisions of the Board were
For S.S. Reddy & Associates
unanimous and no dissenting views have been recorded.
• We further report that during the year under

report, the Company has not undertaken event/ S. Sarveswar Reddy
action having a major bearing on the Company’s Practicing Company Secretary
affairs in pursuance of the above referred laws, rules, M. No. A12611, C.P. No: 7478
regulations, guidelines, standards etc. other than those Place: Hyderabad UDIN: A012611E000317621
already disclosed to Stock Exchanges i.e, BSE and NSE. Date: 16.05.2023 Peer Review Cer. No.: 1450/2021
Annexure A
Annexure to the Secretarial Audit Report
To
The Members of
Our report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about
the correctness of the secretarial records. The verification was done on test basis to ensure that correct facts are
reflected in secretarial records. We believe that the processes and practices, we provide a reasonable basis
for our opinion.
3. We have relied on the reports given by the concerned professionals in verifying the correctness and
appropriateness of financial records and books of accounts of the Company.
4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and
regulations and happening of events etc.
5. The compliance of provisions of Corporate and other applicable laws, rules, regulations, standards is the
responsibility of management. Our examination was limited to the verification of procedures on test basis.
6. The secretarial Audit report is neither an assurance as to future viability of the Company nor of
the efficacy or effectiveness with which the management has conducted the affairs of the Company
For S.S. Reddy & Associates
S. Sarveswar Reddy
Practicing Company Secretary
M. No. A12611, C.P. No: 7478
UDIN: A012611E000317621
Peer Review Cer. No.: 1450/2021
Place: Hyderabad
Date: 16.05.2023
142
ANNEXURE III
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies
(Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to
in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third
proviso thereto
1. Details of contracts or arrangements or transactions not at arm’s length basis : Not Applicable as all the Related Party
Transactions have been entered into at an arm’s length basis.
2. Details of material contracts or arrangement or transactions at arms length basis:

Sl. No. Name(s) of the Nature of Duration of the Salient terms of Date(s) of
related party and contracts/ contracts / the contracts or approval by the
nature of arrangements/ arrangements/ arrangements or Board, if any:
relationship transactions: transactions transactions Approved by Audit
including the Committee and
value, if any: Board Meeting
in last Financial
Year:
3 yrs from
Parvat Srinivas As approved by the
1 Remuneration 01-09-2020 to 14.08.2020
Reddy Board of Directors
01-09-2023
3 years from
A. Praveen Kumar Sitting Fees and As approved by the
2 09-08-2022 to 09.08.2022
Reddy Remuneration Board of Directors
08-08-2025
3 years from
As approved by the
3 Anushman Reddy Remuneration 09-08-2022 to 09.08.2022
Board of Directors
08-08-2025
Gunneswara Rao As approved by the
4 Remuneration Not Defined 08.11.2021
Pusarla Board of Directors
Shubham Sunil
As approved by the
5 Bagadia Remuneration Not Defined 20.10.2020
Board of Directors
Venkatasatish
As approved by the
6 kumar Reddy Sitting fees Not Defined 05.12.2020
Board of Directors
Gangapatnam
3 yrs from
Nagarajan Sitting fees and As approved by the
7 05-12-2020 to 05.12.2020
Vedachalam Commission Board of Directors
04-12-2023
3 yrs from
Sitting fees and As approved by the
8 B V R Subbu 05-12-2020 to 05.12.2020
Commission Board of Directors
04-12-2023
3 yrs from
9 A. Krishna Kumar 05-12-2020 to 05.12.2020
04-12-2023
3 yrs from
10 Ameeta Chatterjee 05-12-2020 to 05.12.2020
04-12-2023
3 yrs from
11 U C Muktibodh 05-12-2020 to 05.12.2020
04-12-2023
3 yrs from
12 V.G. Sekaran 05-12-2020 to 05.12.2020
04-12-2023
Sl. No. Name(s) of the Nature of Duration of the Salient terms of Date(s) of
related party and contracts/ contracts / the contracts or approval by the
nature of arrangements/ arrangements/ arrangements or Board, if any:
relationship transactions: transactions transactions Approved by Audit
including the Committee and
value, if any: Board Meeting
in last Financial
Year:
A. Pranay Kumar As per Contracts
13 Remuneration Not Defined NA
Reddy and agreements
Reimbursable
Magnatar Aero
Expenditure As per Contracts
14 Systems Private NA NA
incurred on behalf and agreements
Limited
of Magnatar
Gee Pee Aerospace As per share
Acquisition of 100% With effect from
15 & Defence Private purchase NA
shares 2nd June 2022
Limited agreement

Subbu Venkata Rama Behara P. Srinivas Reddy

Place: Hyderabad Chairman Managing Director
Date: 17.05.2023 (DIN: 00289721) (DIN: 00359139)
144
ANNEXURE IV
Report on CSR Activities
[Pursuant to section 135 of the Companies Act, 2013 and Rule 9 of the Companies
(Corporate Social Responsibility) Rules, 2014]
1. A brief Outline of Company’s CSR Policy, including overview of projects or programmes undertaken/ proposed to
be undertaken:
The CSR Policy adopted by the Board consists of activities as specified in Schedule VII of Companies Act, 2013.
2. Composition of CSR Committee:

The details of the composition of the committee are given below
Number of Number of meetings

Designation /
Sl. meetings of CSR of CSR Committee
Name of Director Nature of
No. Committee held attended during the
Directorship
during the year year
1. Mr. G.V. Satish Kumar Reddy Chairman, Non-Executive Director 1 1
2. Mr. U.C. Muktibodh Member, Independent Director 1 1
3. Mr. V.G. Sekaran Member, Independent Director 1 1
3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are
disclosed on the website of the company: www.mtar.in.
4. Provide the executive summary along with the web-link of Impact Assessment of CSR Projects carried out in pur-
suance of sub-rule (3) of rule 8, if applicable: Not Applicable since the Company’s average CSR obligation is less than
Rupees Ten Crores in the three immediately preceding financial years.
5.
Sl. Amount in
Particulars
No. Rs.
(a) Average Net Profit of the Company as per sub-section (5) of section 135 58,64,38,486
(b) Two percent of average net profit of the company as per sub-section (5) of section 135 1,17,28,770
Surplus arising out of the CSR projects or programmes or activities of the previous financial
(c) 0
years.
(d) Amount required to be set off for the financial year, if any 1,61,013
(e) Total CSR obligation for the financial year [(b)+(c)-(d)]. 1,15,67,757
6. (a) Amount Spent on CSR Projects (both ongoing Project and other than ongoing project).
Ongoing Project:
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Amount
Amount
transferred to
Amount spent Mode of
Local Unspent CSR Mode of
allocated in the Implementation
Item from area Location of the Project Account for Implementation
for the current - Through
the list of (Yes/ project. duration. the project as - Direct (Yes/
project financial Implementing
Name activities No). per Section No).
Sl. (in Rs.). Year (in Agency
of the in 135(6) (in
No. Rs.).
Project. Schedule Rs.).
VII to the
Act. CSR
State District Name Reg.
No.
- - - - - - - - - - - - -
Total - - - - - - - - - - -
OTHER THAN ONGOING PROJECT:
(1) (2) (3) (4) (5) (6) (7) (8)

Amount
Mode of
Local spent in the Mode of
Implementa-
area Location of the current Implementation
Item from the list tion Through
(Yes/ project. financial - Direct
Sl. Name of the of activities in Implementing
No). Year (Yes/No).
No. Project. Schedule VII to Agency
(in Rs.).
the Act.
CSR
State District Name Reg.
No.
Protection of
Parampara national Hyderabad,
1 Yes 5,00,000 Yes NA NA
Foundation heritage, art and Telangana
culture etc
Promoting Edu-
Abhayajyothi
cation among dif-
Society for
ferently abled and Hyderabad,
2 Empow- Yes 9,24,000 Yes NA NA
other livelihood Telangana
erment of
enhancement
people
projects
Promoting heath
Grace care including Hyderabad,
3 Yes 35,000 Yes NA NA
Foundation preventive health Telangana
care
Sri Satya Sai Eradicating hunger,
Hyderabad,
4 Annapoorna poverty and Yes 5,00,000 Yes NA NA
Telangana
Trust malnutrition
Promoting health
St. Jude India
care including Hyderabad,
5 ChildCare Yes 10,00,000 Yes NA NA
preventive health Telangana
Centres
care
Government
Promoting edu-
School at Hyderabad,
6 cation, including Yes 43,02,584 Yes NA NA
Adibatla and Telangana
special education
Nadargul
Eradicating
hunger, poverty
MTAR and malnutrition,
Hyderabad,
7 Voluntary Promoting educa- Yes 15,41,587 Yes NA NA
Telangana
Week tion, empowering
women and such
other facilities
Skill
Development Hyderabad,
8 Enhancing Skills Yes 28,96,829 Yes NA NA
(Training to Telangana
Apprentices)
Total 1,17,00,000
146
(b) Amount spent in Administrative Overheads: Nil
(c) Amount spent on Impact Assessment, if applicable: NA
(d) Total amount spent for the Financial Year [(a+b+c)] : Rs. 1,17,00,000/-
(e) CSR amount spent or unspent for the Financial Year:
Amount Unspent (In Rs.)

Total Amount Total Amount transferred to Unspent Amount transferred to any fund specified under
Spent for the CSR Account as per section 135(6). Schedule VII as per second proviso to section 135(5)
Financial Year.
(in Rs.) Amount Date of transfer Name of the Fund Amount Date of transfer.
1,17,00,000 NIL NA NA NA NA
(f) Excess amount for set off, if any:
Sl.
Particular Amount (in Rs)
No.
(i) Two percent of average net profit of the Company as per sub-section (5) of secion135) 1,17,28,770
(ii) Total amount spent for the Financial Year 1,17,00,000
(iii) Excess amount spent for the financial year 1,32,243
Surplus arising out of the CSR projects or programmes or activities of the previous
(iv) 1,61,013
financial years, if any
(v) Amount available for set off in succeeding financial years 1,32,243
7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial years:
Amount Balance Amount

transferred to Amount in Amount Spent Amount transferred remaining to
Preceding Unspent CSR Unspent CSR in the Financial to any fund specified be spent in
Sl.
Financial Account under Account under Year under Schedule VII succeeding Defeciency
No.
Year. sub-section (6) sub-section (6) (in Rs.) as per section 135(6), financial
of section 135 of section 135 if any. years.
(in Rs.) (in Rs.) (in Rs.)
Date of
Amount
transfer.
(in Rs).
1. NA 0 0 0 0 NA 0 0
Total 0 0 0 0 NA 0 0
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in
the Financial Year
If Yes, enter the number of Capital assets created/acquired: Not Applicable
Furnish the details relating to such assets so created or acquired through Corporate Social Responsibility amount spent in
the Financial Year:
Short Particulars Details of the entity/ Authority/ beneficiary of

of the property the registered owner
or asset Pin code Amount
[including of the Date of of CSR
S. No.
complete property Creation amount CSR Registration Registered
address and or asset spent Name
Number, if applicable address
location of the
property]
NA NA NA NA NA NA NA NA
(All the fields should be captured as appearing in the revenue record, flat no, house no, Municipal office/ Municipal
Corporation/ Gram Panchayat are to be specified and also the area of the immovable property as well as boundaries)
9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per sub- section
(5) of section 135.- NA
Sd/- Sd/-
P. Srinivas Reddy G.V. Satishkumar Reddy
Managing Director Chairman CSR Committee
DIN: 00359139 DIN: 06535717
148
ANNEXURE V
Management Discussion and Analysis

The Management Discussion and Analysis Report, pursuant to the SEBI (LODR) Regulation that provides an
overview of the affairs of the Company, its legal status and autonomy, business environment, mission & objectives, sectoral
and segment-wise operational performance, strengths, opportunities, constraints, strategy and risks and concerns, as well
as human resource and internal control systems is covered in corporate overview section (Refer page no. 40 to 55)
ANNEXURE VI
Corporate Governance
In accordance with Regulation 34 (3) read with 2. BOARD OF DIRECTORS:
Schedule V of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 the report containing the (a) COMPOSITION AND CATEGORY OF DIRECTORS
details of Corporate Governance systems and processes at
MTAR Technologies Limited as follows: The composition of the Board of Directors of the
company is an appropriate combination of executive and
1. COMPANY'S PHILOSOPHY ON CORPORATE non-executive Directors with right element of
GOVERNANCE: independence. As on date, the Company's Board comprised
of 9 (nine) Directors, one Managing Director and 2 (Two)
The Company’s philosophy on Corporate Governance Executive Directors. In addition, there are 5 (Five)
is backed by Principles of Concern, Commitment, Independent Directors including one-woman director
Ethics, Excellence and Learning in all its acts and and 1 (one) Non Executive Director on the Board. In
relationships with Stakeholders, Clients, Associates and terms of clause 17(1) (b) of SEBI (LODR) Regulations,
Community at large. This philosophy revolves around fair 2015, the company is required to have one third of
and transparent governance and disclosure practices in line total Directors as independent Directors. The non
with the principles of Good Corporate Governance. executive Directors are appointed or re-appointed
based on the recommendation of the Nomination and
The Corporate Governance Structure in the Company Remuneration Committee which considers their overall
assigns responsibilities and entrusts authority among experience,expertise and industry knowledge. One third
different participants in the organization viz. the Board of of the Directors other than independent Directors, are
Directors, the Senior Management, Employees, etc. The liable to retire by rotation every year and are eligible for
Company believes that good Corporate Governance is a reappointment, subject to approval by the shareholders.
continuous process and strives to improve the Corporate
Governance practices to meet shareholder’s expectations. (b) ATTENDANCE AND DIRECTORSHIPS HELD:
(a) BOARD DIVERSITY: As mandated by the SEBI (LODR) Regulations, 2015,

none of the Directors are members of more than ten
The Company recognizes and embraces the Board-level committees nor are they chairman of more
importance of a diverse board in its success. We than five committees in which they are members.
believe that a truly diverse board will leverage Further all the Directors have confirmed that they do
differences in thought, perspective, knowledge, skill, not serve as an independent director in more than
regional and industry experience, cultural and seven listed companies or where they are Whole-Time
geographical background, age, ethnicity, race and directors in any listed Company, they do not serve as
gender, which will help us, retain our competitive independent director in more than three listed companies.
advantage. The Board has adopted the Board Diversity
Policy which sets out the approach to diversity of the Board The names and categories of the Directors on the Board,
of Directors. The Board Diversity Policy is available on our their attendance at Board meeting during the year and
website, https://mtar.in/. at last Annual General Meeting, as also the number of
Directorships and Committee memberships held by them in
(b) DATE OF REPORT: other companies are shown in Table 1.
The information provided in the Report on Corporate (c) NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS
Governance for the purpose of unanimity is as on 31st HELD AND DATES ON WHICH HELD:
March, 2023. The Report is updated as on the date of the
report wherever applicable. Date of the Board Meetings: The Board of Directors
duly met Six (06) times during the financial year from 1st
April 2022 to 31st March 2023. The dates on which the
meetings were held are as follows: 10th May 2022,
24th May 2022, 09th August 2022, 02nd November 2022,
21st December 2022 and 09th February 2023. All the
meetings were conducted through Physical mode and
arrangement for Audio visual means was also made for
those directors who were unable to attend the meeting by
physical mode during the FY 2022-23.
150
Table 1
No. of No. of
�o. of
Whether Director Committee
Relationship No of No of other
Attended ships held Membership
Name of Director with another Category Meetings Meetings �ommittee
Last AGM in Public in
Director Held Attended Chairman-
(30.07.2021) Companies# Companies@
ships
Mr. B.V.R Subbu NIL NED & ID 06 06 Yes 03 02 02
Mr. A. Krishna Kumar NIL NED &ID 06 06 Yes 04 04 01
Mr. V.G. Sekaran NIL NED & ID 06 06 Yes 01 01 Nil
Mrs. Ameeta Chatterjee NIL NED & ID 06 05 No 07 04 04
Mr. U.C Muktibodh NIL NED & ID 06 05 Yes 01 Nil Nil

*Mr. Vedachalam
NIL NED & ID 06 06 Yes 01 Nil Nil
Nagarajan
Promoter
Mr. P. Srinivas Reddy NIL 06 06 Yes 02 Nil Nil
& ED
NED &
**Mr. Mathew Cyriac NIL Nominee 06 01 NA 06 NA NA
Director
Mr. G.V Satish Kumar NED &
NIL 06 05 Yes 01 Nil 01
Reddy Non – ID
Related
^Mr. A. Praveen Kumar to Mr.
WTD 06 04 Yes 01 Nil Nil
Reddy Anushman
Reddy
Related
to Mr. A
^Mr. Anushman Reddy WTD 06 03 Yes 01 Nil Nil
Praveen
Kumar Reddy
**Resigned w.e.f. 10.05.2022

*Resigned w.e.f. 09.02.2023
^ Appointed w.e.f. 09.08.2022
#including directorship in MTAR Technologies Limited.
@ includes only Audit Committee & Stakeholders Relationship Committee in all public limited companies including MTAR Technologies Limited.
Non -ID - Non Indepedent Director

NED – Non-Executive Director
ED - Executive Director
ID – Independent Non-Executive Director
WTD - Whole Time Director
(d) THE NAME OF OTHER LISTED ENTITIES WHERE DIRECTORS OF THE COMPANY ARE DIRECTORS AND THE
CATEGORY OF DIRECTORSHIP ARE SHOWN IN TABLE 2.
Name of listed entities in which the concerned Director is a

Name of Director Category of Directorship
Director
KPIT Technologies Limited Independent Director
Mr. B.V.R Subbu
Sona BLW Precision Forgings Limited Independent Director
Mr. A. Krishna Kumar - -
Mr. V.G. Sekaran - -
Nippon Life India Asset Management Limited Independent Director
Mrs. Ameeta Chatterjee
Jubilant Ingrevia Limited Independent Director
Mr. U.C Muktibodh - -
*Mr. V. Nagarajan - -
Mr. P. Srinivas Reddy Ravileela Granites Limited Non-Executive & Non- Independent Director
Name of listed entities in which the concerned Director is a

Name of Director Category of Directorship
Director
Mr. G.V Satish Kumar Reddy -- -
Mr. A. Praveen Kumar Reddy -- -
Mr. Anushman Reddy -- -

*Resigned w.e.f. 09.02.2023
(e) NUMBER OF SHARES AND CONVERTIBLE INSTRUMENTS HELD BY NON- EXECUTIVE DIRECTORS:
None of the non - executive directors of the Company are holding any shares in the Company
(f) DETAILS OF SKILLS/EXPERTISE/COMPETENCE MATRIX OF THE BOARD OF DIRECTORS:
S. No Name of the Director Skills/Expertise/Competence in specific functional areas
1 Mr. B V R Subbu Specialisation in Economics, International Trade, Automobile Technology
2 Mr. A. Krishna Kumar Specialisation in Economics, Banking and Finance
Mechanical Engineering, Specialisation in Aeronautical Engineering, Design and Technology

3 Mr. V.G. Sekaran
Development of Indigenous long range Strategic Missile System.
4 Ms. Ameeta Chatterjee Commerce, Investments and Acquisitions, Finance and Accounting and Finance
Specialisation in Mechanical Engineering, Nuclear Scientist, Design, Development and Engineer-

5 Mr. U.C Muktibodh
ing of various Nuclear and Conventional Systems
Engineering, Specialisation in Industrial Production and Engineering, General

6 Mr. P. Srinivas Reddy
Management, Operations and Corporate Strategy
7 Mr. G.V Satish Kumar Reddy Specialisation in Mechanical and Industrial Engineering, Management, Technology, Operations
8 Mr. A. Praveen Kumar Reddy Engineering, Specialisation in Electronics and Communication, Manufacturing and Production.
9 Mr. Anushman Reddy Mechanical Engineering, Global Supply chain management including AeroVironment
(g). INFORMATION SUPPLIED TO THE BOARD: (h). FAMILIARIZATION PROGRAM FOR

INDEPENDENT DIRECTORS:
The Board has complete access to all The Board members are provided with necessary
information of the Company and is regularly provided documents, reports, internal policies and site visits to
advanced detailed information as a part of the agenda enable them to familiarize with the Company’s
papers or is tabled therein. In addition, detailed operations, its procedures and practices. Periodic
quarterly performance report by the Managing presentations are made at the Board and Board
Director is presented in the quarterly Board Committee Meetings, on business and performance
meeting, encompassing all facets of the Company’s updates of the Company business, strategy and risks
operations during the quarter, including update of key involved. Detailed presentations on the Company’s business
projects, outlook and matters relating to environment, segments were made at the meetings of the Directors
health & safety, corporate social responsibility etc. held during the year. During the financial year 2022-23,
except Resignation of Mr. Nagarajan Vedachalam as an
Independent director on 09th February 2023, there has
been no change in the Independent directors of the
Company. The details of familiarisation programmes
imparted to independent directors is available on our
company website at www.mtar.in
152
(i). DECLARATION BY INDEPENDENT DIRECTORS: B. Evaluation of the Board of Directors, its Committees
and individual Directors, including the role of the Board
All the Independent Directors have confirmed that Chairman. An IDs’ meeting, in accordance with the
they meet the criteria of independence as mentioned provisions of Section 149(8) read with Schedule IV of the
under Regulation 16(1)(b) of the SEBI (Listing Obligations Act and Regulation 25(3) and 25(4) of the SEBI Listing
and Disclosure Requirements), 2015 read with Section Regulations, was convened on February 09th, 2023, mainly
149(6) of the Act. to review the performance of Independent Directors and the
Chairman & Managing Director as also the Board as a whole .
(j). DECLARATION BY BOARD:
i) Board: Composition, responsibilities, stakeholder
The Board has confirmed that in its opinion, the value and responsibility, Board development, diversity,
independent directors fulfill the conditions specified in governance, leadership, directions, strategic input, etc.
these regulations and are independent of the management.
ii) Executive Directors: Skill, knowledge, performance,
(k). RESIGNATION OF INDEPENDENT DIRECTOR: compliances, ethical standards, risk mitigation,
sustainability, strategy formulation and execution,
During the year under review, Mr. Nagarajan financial planning & performance, managing human relations,
Vedachalam Resigned as an Independent director appropriate succession plan, external relations including
on 09th February 2023 before expiry of his tenure. CSR, community involvement and image building, etc.
Detailed Reason: Resigned w.e.f. 09.02.2023 due to iii) Independent Directors: Participation, managing
expanding range of professional commitments relationship, ethics and integrity, Objectivity, brining
namely to undertake design and development of independent judgement, time devotion, protecting
Small Satellite launch vehicle project of MTAR. interest of minority shareholders, domain knowledge
contribution, etc.
3. COMMITTEES OF THE BOARD:
iv) Chairman: Managing relationships, commitment,
The Company has the following seven Board-level leadership effectiveness, promotion of training and
Committees - development of directors etc.
1. Audit Committee v) Committees: Terms of reference, participation of

2. Stakeholder Relationship Committee, members, responsibility delegated, functions and duties,
3. Nomination & Remuneration Committee, objectives alignment with Company strategy, composition
4. Risk Management Committee of committee, committee meetings and procedures and
5. Corporate Social Responsibility Committee management relations.
6. Management Committee
7. Technology Committee Disclosures as prescribed under SEBI circular dated May 10,
2018 are given below:
All decisions pertaining to the constitution of
Committees, appointment of members and
Observations of Board No observations.
fixing of terms of service for Committee members are
evaluation carried out for
taken by the Board of Directors. Details on the role and
the year
composition of these Committees, including the
number of meetings held during the financial year and Previous year’s observations Since no observations
the related attendance are provided in this report below. and actions taken were received, no actions
were taken.
4. PERFORMANCE EVALUATION OF BOARD, Proposed actions based on Since no observations
COMMITTEES AND DIRECTORS current year observations were received, no actions
were taken.
Pursuant to provisions of Regulation 17(10) of the SEBI
Listing Regulations and the provisions of the Act, an
annual Board effectiveness evaluation was
conducted for FY 2022-23 on February 09, 2023,
involving the following:
A. Evaluation of IDs, in their absence, by the entire

Board was undertaken, based on their performance and
fulfillment of the independence criteria prescribed
under the Act and SEBI Listing Regulations; and
5. AUDIT COMMITTEE:
Terms of reference of Audit committee covers all vi. Reviewing, with the management, the statement
the matters prescribed under Regulation 18 of the of uses / application of funds raised through an issue
Listing Regulations and Section 177 of the Act, 2013. (public issue, rights issue, preferential issue, etc.), the
statement of funds utilized for purposes other than
A. Brief Description of Terms of Reference: those stated in the offer document / prospectus /
notice and the report submitted by the monitoring
The terms of reference of the Audit Committee agency monitoring the utilization of proceeds of
encompasses the requirements of Section 177 of [public issue or rights issue or preferential issue or
Companies Act, 2013 and as per Regulation 18 of SEBI qualifed institutional placement], and making appropriate
(LODR) Regulations, 2015 and, inter alia, includes: recommendations to the board to take up steps in this
matter;
i. Oversight of the listed entity’s financial reporting process
and the disclosure of its financial information to ensure that vii. Review and monitoring the auditor’s independence
the financial statement is correct, sufficient and credible; and performance and effectiveness of audit process;
ii. Recommending the appointment, remuneration and viii. Approval or any subsequent modification of
terms of appointment of auditors of the listed entity; transactions of the listed entity with related parties;
iii. Approval of payment to statutory auditors ix. Scrutiny of inter-corporate loans and investments;
for any other services rendered by the statutory
auditors; x. Valuation of undertakings or assets of the
listed entity wherever it is necessary;
iv. Reviewing, with the management, the annual financial
statements and Auditor’s Report before submission to the xi. Evaluation of internal financial controls and risk
Board for approval with particular reference to; management systems;
(a) Matters required to be included in the xii. Reviewing, with the management, performance of
directors’ responsibility statement to be included in the statutory and internal auditors, adequacy of internal
board’s report in terms of clause (c) of sub-section (3) of control systems;
Section 134 of the Act;
xiii. Reviewing the adequacy of internal audit function, if
(b) Changes, if any, in accounting policies and practices and any, including the structure of the internal audit
reasons for the same; department, staffing and seniority of the official
heading the department, reporting structure, coverage and
(c) Major accounting entries involving estimates based on frequency of internal audit;
the exercise of judgment by management;
xiv. Discussion with internal auditors of any significant
(d) Significant adjustments made in the financial findings and follow up there on;
statements arising out of audit findings;
xv. Reviewing the findings of any internal investigations by
(e) Compliance with listing and other legal requirements the internal auditors into matters where there is suspected
relating to financial statements; fraud or irregularity or a failure of internal control systems
of a material nature and reporting the matter to the board;
(f) Disclosure of any related party transactions;
xvi. Discussion with statutory auditors before the
(g) Modified opinion(s) in the draft audit report; audit commences, about the nature and scope of audit
as well as post-audit discussion to ascertain any area of
v. Reviewing, with the management, the quarterly financial concern;
statements before submission to the board for approval;
154
xvii. To look into the reasons for substantial defaults C. COMPOSITION, MEETINGS & ATTENDANCE:
in the payment to the depositors, debenture-holders,
shareholders (in case of non-payment of declared There were Six (6) Audit Committee Meetings held
dividend) and creditors, during the year i.e. on 10th May 2022, 24th May 2022,
09th August 2022, 28th September 2022, 02nd November
xviii. To review the functioning of the whistle blower 2022 and 09th February 2023.
mechanism;
Name Designation Category No of No of
Meetings Meetings
xix. Approval of appointment of Chief Financial held attended
Officer after assessing the qualifications, experience and
Non-
background, etc. of the candidate Mr. A. Krishna
Executive
Kumar Chairperson 06 06
Independent
xx. Carrying out any other function as is mentioned in the Director
terms of reference of the audit committee. Non-
Mrs. Ameeta Executive
Member 06 05
xxi. Reviewing the utilization of loans and/ or Chatterjee Independent
Director
advances from/investment by the holding company
in the subsidiary exceeding rupees 100 crore or 10% Non-
Mr. B.V.R Executive
of the asset size of the subsidiary, whichever is lower Subbu
Member
Independent
06 05
including existing loans / advances / investments Director
existing as on the date of coming into force of this provision.
6. NOMINATION AND REMUNERATION COMMITTEE:
xxii. Consider and comment on rationale, the cost-benefits
and the impact of schemes involving merger, demerger, A. BRIEF DESCRIPTION OF TERMS OF REFERENCE:
amalgamation etc., on the listed entity and its shareholders.
i. Formulation of the criteria for determining
xxiii. Carrying out any other function as may be referred to qualifications, positive attributes and independence of a
the Committee by the Board. director and recommend to the board of directors a
policy relating to, the remuneration of the directors, key
xxiv. Authority to review / investigate into any matter managerial personnel and other employees;
covered by Section 177 of the Companies Act, 2013 and
matters specified in Part C of Schedule II of the Listing ii. For every appointment of an independent director,
Regulations. the Nomination and Remuneration Committee shall
evalute the balance of skills, knowledge and experience on
B. THE AUDIT COMMITTEE SHALL MANDATORILY REVIEW the Board and on the basis of such evaluation, prepare a
THE FOLLOWING INFORMATION: description of the role and capabilities required of an
independent director. The person recommended to the
(i) Management discussion and analysis of financial Board for appointment as an independent director shall
condition and results of operations; have the capabilities identified in such description. For the
purpose of identifying suitable candidates, the Committee
(ii) Management letters / letters of internal control may:
weaknesses issued by the statutory auditors;
a. use the services of an external agencies, if required;
(iii) Internal audit reports relating to internal control b. consider candidates from a wide range of backgrounds,
weaknesses; and having due regard to diversity; and
c. consider the time commitments of the candidates.
(iv) The appointment, removal and terms of remuneration
of the Chief Internal Auditor shall be subject to review by iii. Formulation of criteria for evaluation of performance of
the audit committee. Independent Directors and the Board of Directors.
(v) Statement of deviations: iv. Devising a policy on diversity of board of directors;.
• Quarterly statement of deviation(s) including report v. Identifying persons who are qualified to become
of monitoring agency, if applicable, submitted to stock directors and who may be appointed in senior management
exchange(s) in terms of Regulation 32(1). in accordance with the criteria laid down, and recommend
to the board of directors their appointment and removal.
• Annual statement of funds utilized for purposes other
than those stated in the offer document/prospectus/notice vi. Whether to extend or continue the term of
in terms of Regulation 32(7). appointment of the independent director, on the basis
of the report of performance evaluation of independent
directors.
vii. Recommend to the board, all remuneration, 3. Policy:

in whatever form, payable to senior management.
3.1 Qualification and Criteria
B. COMPOSITION OF THE COMMITTEE, MEETINGS
AND ATTENDANCE DURING THE YEAR: 3.1.1.The Nomination and Remuneration Committee, and
the Board, shall review on annual basis, appropriate skills,
There were Three (4) Nomination and Remuneration knowledge and experience required of the Board as a whole
Committee Meetings held during the year i.e. on 24th May and its individual members. The objective is to have a board
2022, 08th June 2022, 09th August 2022 and 09th February with diverse background and experience that are relevant
2023. for the Company’s operations.
Name Designation Category No of No of 3.1.2. In evaluating the suitability of individual Board

Meetings Meetings member, the NR Committee may take into account factors,
held attended such as:
Non-
Mrs. Ameeta Executive • General understanding of the Company’s business
Chairperson 04 03
Chatterjee Independent
Director
dynamics, global business and social perspective;
• Educational and professional background
Non-
Mr. B.V.R Executive
• Standing in the profession;
Member 04 03 • Personal and professional ethics, integrity and values;
Subbu Independent
Director • Willingness to devote sufficient time and energy in
Non- carrying out their duties and responsibilities effectively.
Mr. Krishna
Executive
Kumar Member 04 04
Aravamudan
Independent 3.1.3 The proposed appointee shall also fulfill the
Director
following requirements:
• Shall possess a Director Identification Number;

C. PERFORMANCE EVALUATION CRITERIA FOR
• Shall not be disqualified under the companies Act,
INDEPENDENT DIRECTORS:
2013
• Shall endeavour to attend all Board Meeting and
The performance evaluation criteria for Independent
Wherever he is appointed as a Committee Member, the
Directors are already mentioned under the head “Board
Committee Meeting;
Evaluation” in Directors’ Report. • Shall abide by the code of Conduct established by the
Company for Directors and senior Management personnel;
D. POLICY FOR SELECTION OF DIRECTORS AND •Shall disclose his concern or interest in any
DETERMINING DIRECTORS’ INDEPENDENCE: Company or companies or bodies corporate, firms, or other
association of individuals including his shareholding at the
1. Scope: first meeting of the Board in every financial year and
thereafter whenever there is a change in the disclosures
This policy sets out the guiding principles for the already made;
Nomination & Remuneration Committee for identifying •Such other requirements as may be prescribed,
persons who are qualified to become Directors and to from time to time, under the companies Act,
determine the independence of Directors, in case of their 2013, SEBI (Listing Obligations and Disclosure
appointment as independent Directors of the Company. Requirements) Regulations 2015 and other relevant laws.
2. Terms and References: 3.1.4 The Nomination & Remuneration Committee shall
evaluate each individual with the objective of having a group
2.1 “Director” means a director appointed to the Board of that best enables the success of the Company’s business.
a Company.
3.2 Criteria of Independence
2.2 “Nomination and Remuneration Committee means
the committee constituted in accordance with the 3.2.1 The Nomination & Remuneration Committee shall
provisions of Section 178 of the Companies Act, 2013 and assess the independence of Directors at time of
Regulation 19 of SEBI (Listing Obligations and Disclosure appointment/ re-appointment and the Board shall
Requirements) Regulations, 2015. assess the same annually. The Board shall
re-assess determinations of independence when any
2.3 “Independent Director” means a director referred to new interest or relationships are disclosed by a Director
in sub-section (6) of Section 149 of the Companies Act,
2013 and Regulation 16(b) of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
156
3.2.2 The criteria of independence shall be in vi. who, neither himself [“/herself], nor whose relative(s) —
accordance with guidelines as laid down in Companies Act,
2013 and Regulation 16(b) of SEBI (Listing Obligations and a. Holds or has held the position of a key managerial
Disclosure Requirements) Regulations, 2015. personnel or is or has been an employee of the listed
entity or its holding, subsidiary or associate company [or any
An independent Director in relation to a Company, means company belonging to the promoter group of the listed
a director other than a managing Director or a whole-time entity,] in any of the three financial years immediately
Director or a Nominee Director. preceding the financial year in which he is proposed to be
appointed:
i. Who, in the opinion of the board of directors, is a [Provided that in case of a relative, who is an employee
person of integrity and possesses relevant expertise and other than key managerial personnel, the restriction under
experience; this clause shall not apply for his / her employment.]
ii. Who is or was not a promoter of the listed entity or its b. Is or has been an employee or proprietor or a partner, in
holding, subsidiary or associate company [or member of the any of the three financial years immediately preceding the
promoter group of the listed entity]; financial year in which he is proposed to be appointed, of —
(i) A firm of auditors or company secretaries in practice or
iii. Who is not related to promoters or directors in the listed cost auditors of the listed entity or its holding, subsidiary or
entity, its holding, subsidiary or associate company; associate company; or
(ii) Any legal or a consulting firm that has or had any
iv. Who, apart from receiving director's remuneration, has transaction with the listed entity, its holding, subsidiary or
or had no material pecuniary relationship with the listed associate company amounting to ten per cent or more of
entity, its holding, subsidiary or associate company, or their the gross turnover of such firm;
promoters, or directors, during the [three] immediately
preceding financial years or during the current financial c. Holds together with his relatives two per cent or more of
year; the total voting power of the listed entity; or
v. None of whose relatives— d. Is a chief executive or director, by whatever name called,

of any non-profit organisation that receives twenty-five
a. Is holding securities of or interest in the listed entity, its per cent or more of its receipts or corpus from the listed
holding, subsidiary or associate company during the three entity, any of its promoters, directors or its holding,
immediately preceding financial years or during the current subsidiary or associate company or that holds two per cent
financial year of face value in excess of fifty lakh rupees or or more of the total voting power of the listed entity;
two percent of the paid-up capital of the listed entity, its
holding, subsidiary or associate company, respectively, or e. Is a material supplier, service provider or customer or a
such higher sum as may be specified; lessor or lessee of the listed entity;
b. Is indebted to the listed entity, its holding, subsidiary vii. who is not less than 21 years of age.
or associate company or their promoters or directors, in
excess of such amount as may be specified during the three viii. who is not a non-independent director of another
immediately preceding financial years or during the current company on the board of which any non-independent
financial year; director of the listed entity is an independent director:
c. Has given a guarantee or provided any security in 3.2.3 The independent Director shall abide by the “code for
connection with the indebtedness of any third person independent Directors “as specified in Schedule IV to the
to the listed entity, its holding, subsidiary or associate companies Act, 2013.
company or their promoters or directors, for such amount
as may be specified during the three immediately preceding 3.3. Other directorships/ committee memberships
financial years or during the current financial year; or
3.3.1 The Board members are expected to have
d. Has any other pecuniary transaction or relationship adequate time and expertise and experience to contribute to
with the listed entity, its holding, subsidiary or associate effective Board performance. Accordingly, members
company amounting to two percent or more of its gross should voluntarily limit their directorships in other listed
turnover or total income: public limited companies in such a way that it does not
[Provided that the pecuniary relationship or transaction interfere with their role as director of the Company. The
with the listed entity, its holding, subsidiary or associate NR Committee shall take into account the nature of and
company or their promoters, or directors in relation to the time involved in a director’s service on other Boards, in
points (a) to (d) above shall not exceed two percent of its evaluating the suitability of the individual Director and
gross turnover or total income or fifty lakh rupees or such making its recommendations to the Board.
higher amount as may be specified from time to time,
whichever is lower.]
3.3.2 A Director shall not serve as director in more than 7. STAKEHOLDER’S RELATIONSHIP COMMITTEE:
20 companies of which not more than 10 shall be public
limited companies. A. BRIEF DESCRIPTION OF TERMS OF REFERENCE:
3.3.3 A Director shall not serve as an independent The Committee’s role includes:
Director in more than 7 listed companies and
not more than 3 listed companies in case he is i. Resolving the grievances of the security holders of
serving as a whole-time Director in any listed Company. the Company including complaints related to transfer/
transmission of shares, non-receipt of annual report,
3.3.4 A Director shall not be a member in more than non-receipt of declared dividends, issue of new/
10 committees or act as chairman of more than 5 duplicate certificates, general meetings etc;
committee across all companies in which he holds
directorships. ii. Review of measures taken for effective exercise of
voting rights by shareholders;
For the purpose of considering the limit of the
committee, Audit committee and stakeholder’s iii. Review of adherence to the service standards
relationship committee of all public limited adopted by the Company in respect of various services
companies, whether listed or not, shall be included and being rendered by the Registrar & Share Transfer Agent;
all other companies including private limited companies,
foreign companies and companies under section 8 of the iv. Review of the various measures and initiatives taken
companies Act, 2013 shall be excluded. by the Company for reducing the quantum of unclaimed
dividends and ensuring timely receipt of dividend warrants/
E. MECHANISM FOR EVALUATION OF THE BOARD: annual reports/statutory notices by the shareholders of the
Company;
Evaluation of all Board members is performed on an
v. Such other matter as may be specified by the Board from
annual basis. The evaluation is performed by the Board and
time to time.
Independent Directors with specific focus on the
performance and effective functioning of the Board and
vi. Authority to review / investigate into any matter covered
Individual Directors.
by Section 178 of the Companies Act, 2013 and matters
specified in Part D of Schedule II of the Listing Regulations.
In line with Securities and Exchange Board of India
Circular No. SEBI/ HO/ CFD/ CMD/ CIR/ P/ 2017/ 004, dated
B. COMPOSITION OF THE COMMITTEE, MEETINGS AND
January 5, 2017 and the Companies Amendment Act,
ATTENDANCE DURING THE YEAR:
2017 the Company adopted the recommended criteria by
Securities and Exchange Board of India.
One (1) Stakeholders Relationship Committee Meeting held
during the year on 17th March 2023.
The Directors were given following Forms for evaluation:
(i) Evaluation of Board; Name Designation Category No of No of

Meetings Meetings
held attended
(ii) Evaluation of Committees of the Board;
Non-
Mr. G.V Satish
Chairperson Executive 01 01
(iii) Evaluation of Independent Directors; Kumar Reddy
Director
Non-
(iv) Evaluation of Chairperson; and *Mr. V.edachalam Executive
Member 01 00
Nagarajan Independent
Director
(v) Evaluation of Managing Director and Whole-time
Director. Non-
Mr. A. Krishna Executive
Member 01 01
Kumar Independent
The Directors were requested to give following ratings for Director
each criteria: Non-
**Mr. V. G. Executive
Member 01 01
• Could do more to meet expectations; Sekaran Independent
• Meets expectations; and Director
• Exceeds expectations.
*Resigned on 09th February 2023
The Directors have sent the duly filled forms to the Board. ** Appointed as member on 09th February 2023
Based on the evaluation done by the Directors, the report
on Evaluation was submitted to the Board. And based on
the report, the Board of Directors has informed that the
performance of Directors is satisfactory.
158
C. DETAILS OF COMPLAINTS/REQUESTS RECEIVED, The role of the committee shall, inter alia, include the
RESOLVED AND PENDING DURING THE YEAR 2022-23: following:
Received (1) To formulate a detailed risk management policy which

Resolved Closing
Opening balance during the
during the year balance
shall include:
year
00 56 56 00 (a) A framework for identification of internal and
external risks specifically faced by the listed entity,
D. NAME AND DESIGNATION OF COMPLIANCE in particular including financial, operational, sectoral,
OFFICER: sustainability, information, cyber security risks or any
other risk as may be determined by the Committee.
Mr. Shubham Sunil Bagadia, Company Secretary is the
Compliance Officer of the Company. (b) Measures for risk mitigation including systems and
processes for internal control of identified risks.
8. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE:
(c) Business continuity plan
The Committee comprising of Non-Executive
Directors including two Independent Directors is (2) To ensure that appropriate methodology, processes and
constituted by the Board in accordance with the Act to: systems are in place to monitor and evaluate risks
associated with the business of the Company;
a. Formulate and recommend to the Board, a
Corporate Social Responsibility Policy which shall (3) To monitor and oversee implementation of the risk
indicate the activities to be undertaken by the management policy, including evaluating the adequacy of
Company as specified in Schedule VII of the Act; risk management systems;
b Recommend the amount of expenditure to be (4) To periodically review the risk management policy,
incurred on the activities referred to in clause (a); and at least once in two years, including by considering the
changing industry dynamics and evolving complexity;
c. Monitor the Corporate Social Responsibility Policy of the
Company from time to time. (5) To keep the board of directors informed about the
nature and content of its discussions, recommendations
The CSR Policy is uploaded on the Company’s and actions to be taken;
website as required under the provisions of
Section 135 of the Act and Rule 9 of the Companies (6) The appointment, removal and terms of remuneration
(Corporate Social Responsibility Policy) Rules, 2014. of the Chief Risk Officer (if any) shall be subject to review by
the Risk Management Committee.
COMPOSITION OF THE COMMITTEE, MEETINGS AND
ATTENDANCE DURING THE YEAR: B. COMPOSITION OF THE COMMITTEE, MEETINGS AND
ATTENDANCE DURING THE YEAR:
One Corporate Social Responsibility Committee Meetings
held during the year on 28th September 2022 There were Two (2) Risk Management Committee
Meetings held during the year on 28th September 2022 and
No of No of 17th March 2023
Name Designation Category Meetings Meetings
held attended
No of No of
Non- Name Designation Category Meetings Meetings
Executive held attended
Mr. G.V Satish
Chairperson Non 01 01
Kumar Reddy Mr. B.V. R Subbu Chairman Independent 02 02
Independent
Director Mr. Vedachalam
Member Independent 02 01
Nagarajan*
Non-
Mr. U C Executive Dr. V.G. Sekaran Member Independent 02 02
Member 01 01
Muktibodh Independent Mr. U.C.
Director Member Independent 02 02
Muktibodh
Non-
Mr. V G Executive Mr. A. Krishna
Member 01 01 Member Independent 02 02
Sekaran Independent Kumar
Director
Ms. Ameeta
Member Independent 02 02
Chatterjee
9. RISK MANAGEMENT COMMITTEE: * Resigned w.e.f., 09th February 2023
A. BRIEF DESCRIPTION OF TERMS OF REFERENCE:

The Committee’s role includes:
10. REMUNERATION OF DIRECTORS

1.4 The Annual plan and Objectives for Executive
A. PECUNIARY RELATIONSHIP OR TRANSACTIONS OF committee shall be reviewed by the NR committee
THE NON-EXECUTIVE DIRECTORS VIS-À-VIS THE LISTED and Annual performance Bonus will be approved by
Company: the committee based on the achievement against the
Annual plan and Objectives.
None of the Non-Executive Directors except Mr. G.V Satish
Kumar Reddy had any pecuniary relationship or transaction 2. Remuneration to Non – Executive Directors
with the Company other than the Directors sitting fees and
commission. 2.1 The Board, on the recommendation of the NR
Committee, shall review and approve the
B. CRITERIA FOR MAKING PAYMENTS TO NON-EXECUTIVE remuneration payable to the Non – Executive Directors of
DIRECTORS: the Company within the overall limits approved by the
shareholders.
Policy:
2.2 Non – Executive Directors shall be entitled to sitting fees
1. Remuneration to Executive Director and key attending the meetings of the Board and the Committees
managerial personnel thereof. The Non- Executive Directors shall also be entitled
to profit related commission in addition to the sitting fees.
1.1 The Board on the recommendation of the
Nomination and Remuneration (NR) committee shall 3. Remuneration to other employees
review and approve the remuneration payable to the
Executive Director of the Company within the overall limit 3.1. Employees shall be assigned grades according to
approved by the shareholders. their qualifications and work experience, competencies as
well as their roles and responsibilities in the organization.
1.2 The Board on the recommendation of the NR Individual remuneration shall be determined within the
committee shall also review and approve the appropriate grade and shall be based on various factors
remuneration payable to the key managerial personnel of such as job profile skill sets, seniority, experience and
the Company. prevailing remuneration levels for equivalent jobs.
1.3 The remuneration structure to the Executive The objectives of the remuneration policy are to
Director and key managerial personnel shall include the motivate Directors to excel in their performance,
following components: recognize their contribution and retain talent in the
(i) Basic pay organization and reward merit.
(ii) Perquisites and Allowances
(iii) Stock Options The remuneration levels are governed by industry
(iv) Commission (Applicable in case of Executive pattern, qualifications and experience of the Directors,
Directors) responsibilities should and individual performance.
(v) Retrial benefits
C. REMUNERATION PAID TO DIRECTORS DURING FY 2022-23 AND OTHER DISCLOSURES (Amount in Rs. Mn)
Name of the Director Salary Sitting Fees Number Commission Service Stock Fixed Performance
(Rs) (Rs) of Equity (Rs) Contracts Option Component Based
shares held Details Incentive
Mr. B.V.R Subbu - 1.04 - 1.5 - - - -
Mr. A. Krishna Kumar - 1.17 - 1.5 - - - -
Mr. V.G. Sekaran - 0.76 - 1.5 - - - -
Mrs. Ameeta Chatterjee - 0.97 - 1.5 - - - -
Mr. U.C Muktibodh - 0.62 - 1.5 - - - -
*Mr. V. Nagarajan - 0.56 - 1.29 - - - -
Mr. P. Srinivas Reddy 14.40 13,92,903 - - - - 19.20
**Mr. Mathew Cyriac - 0.075 - - - - - -
Mr. G.V Satish Kumar
Reddy
- 0.52 - - - - - -
Mr. A. Praveen Kumar

Reddy
3.51 0.09 - - - - - -
Mr. Anushman Reddy 5.57 - 2,68,128 - - - - -

* Resigned w.e.f. 09.02.2023
** Resigned w.e.f 10.05.2022
160
11. INDEPENDENT DIRECTORS’ MEETING: 13. MEANS OF COMMUNICATION
As per clause 7 of the schedule IV of the The Company regularly intimates its financial results,
Companies Act (Code for Independent Directors), a audited/limited reviewed, to the Stock Exchanges, as
separate meeting of the Independent Directors soon as the same are taken on record/approved. The
of the Company (without the attendance of Non- Company also communicates regularly its quarterly
Independent directors) was held on 17.03.2023, and financial Results by publishing in newspaper as per
to discuss: SEBI (Listing Obligations & Disclosures Requirements).
1. Evaluation of the performance of Non-Independent In terms of the requirements of SEBI (Listing Obligations &
Directors and the Board of Directors as whole; Disclosures Requirements), the un-audited financial results
as well as audited financial results, shareholding pattern
2. Evaluation of the quality, content and timelines of flow of the Company and Corporate Governance Report are
of information between the management and the Board electronically submitted, unless there are technical
that is necessary for the Board to effectively and reasonably difficulties and are displayed through Corporate Filing and
perform its duties. Dissemination System viz., on www.bseindia.com and www.
nseindia.com. The un-audited financial results as well as
All the Independent Directors of the Company were present audited financial results, shareholding pattern of the
at the meeting. Company and Report on Corporate Governance are
displayed on www.bseindia.com and www.nseindia.com.
As required under Regulation 34(3) read with
Schedule V of SEBI (Listing Obligations and Disclosure All important information, Investors Presentations
Requirements) Regulations 2015, the Company made to Institutional Investors and official press
regularly familiarizes Independent Directors with releases are displayed on the website for the benefit of the
the Company, their roles, rights, responsibilities in public at large. Analysts ‘Reports/ Research Report, if
the Company, nature of the industry in which the any, are also uploaded on the website of the Company.
Company operates, business model of the Company The Company’s website can be accessed at www.mtar.in
etc. The details of the familiarization program is given at
Company’s website (www.mtar.in) 14. GENERAL SHAREHOLDER INFORMATION:
12. ANNUAL GENERAL MEETINGS: A. ANNUAL GENERAL MEETING:
A. LOCATION, DATE AND TIME OF LAST THREE AGMS The 24th Annual General Meeting of the Company will be
AND SPECIAL/ORDINARY RESOLUTIONS THERE AT AS held as per the following schedule:
UNDER:
Day Friday
Financial Year Date Time Location Special Date August 11, 2023
Resolution Time 03.00 P.M
Passed Venue Through Video Conferencing / other audio
Video video means
03:00 Conferencing
2021-22 23.09.2022 No
PM and Audio-
B. FINANCIAL YEAR AND FINANCIAL YEAR CALENDAR
Visual Means
2023-24 (TENTATIVE SCHEDULE)
Video
03:00 Conferencing
2020-21 30.07.2021
PM and Audio-
Yes The financial calendar (tentative) shall be as under:
Visual Means
Video Financial Year 2023-24
Conferencing
02:00
2019-20 30.09.2020 and No First Quarterly Results On or before 14.08.2023
PM
Audio-Visual
Means
Second Quarterly Results On or before 14.11.2023
Third Quarterly Results On or before 14.02.2024
B. PASSING OF RESOLUTIONS BY POSTAL BALLOT Fourth Quarterly Results On or before 30.05.2024
Annual General Meeting for
There were no resolutions passed by the Company through On or before 30.09.2024
year ending March 31, 2024
Postal Ballot during the financial year 2022-23
C. SUSPENSION FROM TRADING C. DIVIDEND PAYMENT DATE
There was no suspension from trading in equity shares of The Company has not paid any dividend during the
the Company during the year 2022-23. year.
D. NAME AND ADDRESS OF STOCK EXCHANGE WHERE THE COMPANIES SECURITIES ARE LISTED:
BSE Limited, National Stock Exchange of India Limited,

P. J. Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex,
Mumbai-400001. Bandra (E), Mumbai- 400051.
(BSE Scrip Code: 543270) (NSE Symbol: MTARTECH)
E. LISTING FEES:
The Company has paid the listing fees for the year 2023-24 to BSE Limited and National Stock Exchange of India
Limited.
F. STOCK MARKET PRICE DATA:
BSE Limited(Scrip code: 543270)
Month Open Price(in Rs.) High Price (in Rs.) Low Price (in Rs.) Close Price(in Rs.) No. of Shares
Traded
Apr-22 1,775.05 1,818.75 1,655.00 1,680.65 1,84,288
May-22 1,652.00 1,673.55 1,335.00 1,426.05 2,92,628
Jun-22 1,442.00 1,526.20 1,223.35 1,269.75 12,04,538
Jul-22 1,276.00 1,306.70 1,211.85 1,266.00 2,94,477
Aug-22 1,290.50 1,727.50 1,273.25 1,644.90 5,96,719
Sep-22 1,643.00 1,729.20 1,506.15 1,585.00 3,85,925
Oct-22 1,556.75 1,665.25 1,524.90 1,604.20 1,47,859
Nov-22 1,611.10 1,696.55 1,521.00 1,587.85 1,65,878
Dec-22 1,604.00 1,824.60 1,499.80 1,614.55 3,09,744
Jan-23 1,649.85 1,748.70 1,584.75 1,737.75 2,64,311
Feb-23 1,778.95 1,796.00 1,643.35 1,689.85 3,24,539
Mar-23 1,710.00 1,759.45 1,472.45 1,581.25 1,75,424
Perfomance compared to BSE Sensex
MTAR vs BSE Sensex

120
100
80
60
40
20
0
Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23
BSE Sensex MTAR-BSE

162
National Stock Exchange of India Limited(Symbol: MTARTECH)
Month Open Price(in Rs.) High Price (in Rs.) Low Price (in Rs.) Close Price(in Rs.) No. of Shares
Traded
(in Lacs)
Apr-22 1,594.65 1,822.90 1,586.35 1,812.80 17.87
May-22 1,672.60 1,672.60 1,335.00 1,426.70 28.65
Jun-22 1,470.00 1,526.20 1,215.05 1,271.25 26.57
Jul-22 1,279.00 1,307.35 1,205.00 1,265.95 22.41
Aug-22 1,285.00 1,729.25 1,270.00 1,645.45 56.80
Sep-22 1,642.00 1,729.00 1,516.25 1,583.70 34.78
Oct-22 1,589.95 1,663.55 1,530.05 1,604.80 12.76
Nov-22 1,611.90 1,697.45 1,520.00 1,586.65 19.23
Dec-22 1,604.45 1,823.90 1,499.75 1,617.50 38.65
Jan-23 1,628.00 1,749.00 1,586.40 1,737.55 39.74
Feb-23 1,770.00 1,797.60 1,641.00 1,696.85 30.83
Mar-23 1,712.65 1,759.00 1,473.00 1,581.55 19.87
Performance compared to NIFTY 50
MTAR vs NSE Nifty

120
100
80
60
40
20
0
Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23
NSE-Nifty MTAR-NSE
G. REGISTRAR AND SHARE TRANSFER AGENTS:
Kfintech Technologies Limited,

Slenium Tower B, Plot 31 & 32,
Financial District, Nanakramguda,
Serilingampally Mandal,
Hyderabad – 500032, Telangana
Email: [email protected]
Website: https://www.kfintech.com/ or https://ris.kfintech.com/
H. SHARE TRANSFER SYSTEM:
In terms of Regulation 40(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
as amended, securities can be transferred only in dematerialized form with effect from April 01, 2019.
However, 100 percent of the shares of the Company are held in Demat Form.
I. DISTRIBUTION OF SHAREHOLDING AS ON 31ST MARCH, 2023:
Number of
Category % Number of shares Amount %
shareholders
1 - 5000 2,07,464 99.41 50,06,577 5,00,65,770 16.28
5001 - 10000 693 0.33 5,15,792 51,57,920 1.68
10001 - 20000 288 0.14 4,11,920 41,19,200 1.34
20001 - 30000 62 0.03 1,56,734 15,67,340 0.51
30001 - 40000 37 0.02 1,28,307 12,83,070 0.41
40001 - 50000 21 0.01 97,160 9,71,600 0.31
50001 - 100000 39 0.02 2,73,123 27,31,230 0.89
100001 & Above 95 0.04 2,41,69,978 24,16,99,780 78.58
Total: 2,08,699 100.00 3,07,59,591 30,75,95,910 100.00
J. DEMATERIALISATION & LIQUIDITY OF SHARES:
Trading in Company’s shares is permitted only in dematerialized form for all investors. The ISIN allotted to the
Company’s scrip is INE864I01014. Investors are therefore advised to open a demat account with a Depository
participant of their choice to trade in dematerialized form. Shares held in demat mode as on March 31, 2023
is as follows:
Particulars No. of Shares % Share Capital
NSDL 2,61,44,867 85.00

CDSL 46,14,724 15.00
Total 3,07,59,591 100.00
164
K. PLANT LOCATIONS:
S. Name of
Address
No the Unit
1 Unit - 1 18, Technocrats Industrial Estate, Balanagar,Hyderabad - 500037 Telangana
2 Unit - 2 Survey No. 149/P, IDA, Jagadgirigutta Road,Gandhinagar, Hyderabad–500037, Telangana
Plot No. 97 & 100A, Co-operative Industrial Estate, (E.P), Gandhinagar, Hyderabad – 500037,
3 Unit – 3
Telangana.
4 Unit - 4 B-34, EEIE, Balanagar Township, Hyderabad – 500037, Telangana
5 Unit - 5 58/C, PHASE-1, IDA JEEDMETLA, Hyderabad – 500055, Telangana.
6 EOU Jagadgiri Gutta Road, Gandhinagar, Balanagar, Hyderabad 500 037, Telangana, India.
Plot No.1B in Sy No. 656/A, situated at Adibatla (Aditya Nagar) Village, Gram Panchayat Adibatla,
7 Unit - 6
Ibrahimpatnam Mandal, Ranga Reddy District, T.S.- 501510
L. REGISTERED OFFICE AND ADDRESS FOR CORRESPONDANCE:
Mr. Shubham Sunil Bagadia, (Company Secretary and Compliance Officer)
Address:
18, Technocrats Industrial
Estate, Balanagar,
Hyderabad – 500037
Telangana
M. LIST OF ALL CREDIT RATINGS OBTAINED BY THE ENTITY ALONG WITH ANY REVISIONS THERETO DURING THE
RELEVANT FINANCIAL YEAR, FOR ALL DEBT INSTRUMENTS OF SUCH ENTITY OR ANY FIXED DEPOSIT PROGRAMME
Not Applicable since the Company does not have any debt instruments.
N. OUTSTANDING GLOBAL DEPOSITORY RECEIPTS OR AMERICAN DEPOSITORY RECEIPTS OR WARRANTS OR ANY

CONVERTIBLE INSTRUMENTS, CONVERSION DATE AND LIKELY IMPACT ON EQUITY:
The Company has not issued these types of securities.
O. COMMODITY PRICE RISK OR FOREIGN EXCHANGE RISK AND HEDGING ACTIVITIES:
NIL Charges for Monitoring Foreign Investment Limit
P. BOOK CLOSURE DATE:
The date of Book Closure for the purpose of Annual General Meeting shall be from August 05, 2023 to August 11, 2023
(both days inclusive).
Q. ELECTRONIC CONNECTIVITY: Demat ISIN Number: INE864I01014
R. NATIONAL SECURITIES DEPOSITORY LIMITED
Trade World, Kamala Mills Compound

Senapati Bapat Marg, Lower Parel
Mumbai – 400 013.
S. CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED
Marathon Futurex, A-Wing,

25th floor, NM Joshi Marg,
Lower Parel, Mumbai 400013
T. SHAREHOLDING PATTERN AS ON 31ST MARCH,2023:
S. No Category No. Shares held % of shareholding
Shareholding of Promoter and Promoter

A
group
1 Indian
Individual 1,43,08,907 46.52
Body Corporate 35,000 0.11
2 Foreign
Individual
Sub-Total A 1,43,43,907 46.63
B. Public Shareholding
1. Institutions 84,82,996 27.58
2. Non-Institutions
a. Bodies Corporate 4,07,409 1.32
b. Indian Public and Others 75,60,279 24.47
Sub Total B 1,64,15,684 53.37
Grand Total (A+B) 3,07,59,591 100.00
15. OTHER DISCLOSURES:
A. DISCLOSURES ON MATERIALLY SIGNIFICANT RELATED PARTY TRANSACTIONS THAT MAY HAVE POTENTIAL CONFLICT
WITH THE INTERESTS OF LISTED ENTITY AT LARGE:
There were no material significant related party transactions made by the Company with the Promoters, Directors, Key
Managerial Personnel or the Senior Management which may have a potential conflict with the interest of the Company at
large.
B. DETAILS OF NON-COMPLIANCE BY THE LISTED ENTITY, PENALTIES, STRICTURES IMPOSED ON THE LISTED ENTITY
BY STOCK EXCHANGE(S) OR THE BOARD OR ANY STATUTORY AUTHORITY, ON ANY MATTER RELATED TO CAPITAL
MARKETS, DURING THE LAST THREE YEARS;
There was no penalty imposed on Company by Stock Exchanges during the year 2022-23.
C. WHISTLE BLOWER POLICY:
The Company has adopted a Whistle Blower Policy and has established the necessary vigil mechanism as defined in
Regulation 22 of SEBI (LODR) Regulations 2015 and in terms of Section 177 of the Companies Act, 2013.
166
With a view to adopt the highest ethical standards in the course of business, the Company has a whistle
blower policy in place for reporting the instances of conduct which are not in conformity with the policy. Directors,
employees, vendors or any person having dealings with the Company may report non-compliance to the Chairman of
the Audit Committee, who reviews the report. Confidentiality is maintained of such reporting and it is ensured that the
whistle blowers are not subjected to any discrimination. No person has been denied access to the Audit Committee.
D.DETAILS OF COMPLIANCE WITH THE MANDATORY REQUIREMENTS AND ADOPTION OF THE

NON-MANDATORY REQUIREMENTS OF SEBI (LISTING OBLIGATIONS AND DISLOSURE REQUIREMENTS) REGULATIONS,
2015
The Company has complied with the mandatory requirements of SEBI (LODR) Regulations, 2015 and is in the process of
implementation of non– mandatory requirements
E. WEB LINK WHERE POLICY FOR DETERMINING ‘MATERIAL’ SUBSIDIARIES IS DISCLOSED;
The Company does not have any material subsidiary as defined under Listing Regulations, however, the
policy for determining its ‘Material’ Subsidiaries was formulated and the same is available on the website of the Company
www.mtar.in.
F. WEB LINK WHERE POLICY ON DEALING WITH RELATED PARTY TRANSACTIONS:
In line with the requirements of the Companies Act, 2013 and Listing Regulations, your Company has formulated a Policy
on Related Party Transactions which is also available on Company’s Website www.mtar.in. The Policy intends to ensure that
proper reporting, approval and disclosure processes are in place for all transactions between the Company and Related
Parties.
All Related Party Transactions are placed before the Audit Committee for review and approval. Prior omnibus
approval is obtained for Related Party Transactions on a quarterly basis for transactions which are of
repetitive nature and / or entered in the Ordinary Course of Business and are at Arm’s Length. All Related
Party Transactions are subjected to independent review by the statutory auditor to establish compliance
with the requirements of Related Party Transactions under the Companies Act, 2013 and Listing Regulations.
All Related Party Transactions entered during the year were in Ordinary Course of the Business and on Arm’s Length basis.
No Material Related Party Transactions, Accordingly, the disclosure of Related Party Transactions as required under Section
134(3) (h) of the Companies Act, 2013 in Form AOC-1 annexed as Annexure III
G. DISCLOSURE OF COMMODITY PRICE RISKS AND COMMODITY HEDGING ACTIVITIES:
The Company is not materially exposed to commodity price risks nor does the company do any commodity hedging.
H. DETAILS OF UTILIZATION OF FUNDS RAISED THROUGH PREFERENTIAL ALLOTMENT OR QUALIFIED

INSTITUTIONS PLACEMENT AS SPECIFIED UNDER REGULATION 32 (7A).
The Company has not raised any fund through preferential allotment or Qualified Institutional Placement during the
financial year 2022-23.
I. CERTIFICATE FROM PRACTICING COMPANY SECRETARY
The Company has obtained certificate from Practicing Company Secretary that none of the Directors on the Board of
the Company are debarred or disqualified from being appointed or continuing as Directors of Companies by the Board/
Ministry of Corporate Affairs or any such authority and the Certificate to this effect, duly signed by the Practicing Company
Secretary is annexed to this Report.
J. RECOMMENDATIONS OF COMMITTEES
The Board has accepted and acted upon all the recommendations by the Audit & Nomination and Remuneration
Committees.
K. TOTAL FEES FOR ALL SERVICES PAID BY THE LISTED ENTITY AND ITS SUBSIDIARIES, ON A CONSOLIDATED
BASIS, TO THE STATUTORY AUDITOR
The Total Audit Fee for all services paid by the Company and its subsidiaries on a consolidated basis to the statutory
auditor (s) is Rs. 5.08 Mn
L. DISCLOSURE IN RELATION TO THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION

AND REDRESSAL) ACT, 2013:
Sr.
Particulars Number
No.
a. No. of Complaints filed during the financial year Nil
b. No. of Complaints disposed of during the financial year Nil
c. No. of Complaints pending as on end of the financial year Nil
M. DISCLOSURE BY LISTED ENTITY AND ITS SUBSIDIARIES OF ‘LOANS AND ADVANCES IN THE
NATURE OF LOANS TO FIRMS/COMPANIES IN WHICH DIRECTORS ARE INTERESTED BY NAME AND AMOUNT:
Neither the listed company nor the subsidiary company has advanced any loan to firm/ companies in which
directors are interested.
N. DETAILS OF MATERIAL SUBSIDIARIES OF THE LISTED ENTITY; INCLUDING THE DATE AND PLACE OF
INCORPORATION AND THE NAME AND DATE OF APPOINTMENT OF THE STATUTORY AUDITORSOF SUCH
SUBSIDIARIES: NIL
16. NON-COMPLIANCE OF ANY REQUIREMENT OF CORPORATE GOVERNANCE REPORT:
The company has complied with the requirement of Corporate Governance Report of sub-paras (2) to (10) of Schedule-V
of the SEBI (LODR) Regulations, 2015
17. ADOPTION OF DISCRETIONARY REQUIREMENTS AS SPECIFIED IN PART E OF SCHEDULE II of SEBI (LODR)

REGULATIONS, 2015:
The company has adopted discretionary requirements to the extent of Internal Auditors reporting to the Audit
Committee.
18. DISCLOSURE OF COMPLIANCE WITH CORPORATE GOVERNANCE REQUIREMENTS SPECIFIED IN REGULATIONS 17 TO

27 AND CLAUSES (b) TO (i) OF SUB-REGULATION (2) OF REGULATION 46 ARE AS FOLLOWS:
Regulation Particulars Compliance Status

17 Board of Directors Yes
18 Audit Committee Yes
19 Nomination and Remuneration Committee Yes
20 Stakeholders Relationship Committee Yes
21 Risk Management Committee Yes
22 Vigil Mechanism Yes
23 Related Party Transactions Yes
168
Regulation Particulars Compliance Status

Corporate Governance requirements with
24 NA
respect to subsidiary of Listed company
Obligations with respect to Independent
25 Yes
Directors
Obligations with respect to Directors and Senior
26 Yes
Management
27 Other Corporate Governance Requirements Yes
46 (2) (b) to (i) Website Yes
19. CODE OF CONDUCT
The Company has formulated and implemented a Code of Conduct for Board Members and Senior Management of the
Company. Requisite annual affirmations of compliance with the respective Codes have been made by the Directors and
Senior Management of the Company.
20. DECLARATION ON CODE OF CONDUCT FOR THE YEAR 2022-23
This is to confirm that the Board has laid down a code of conduct for all Board members and senior
management personnel of the Company. The code of Conduct has also been posted on the website of the
Company. It is further confirmed that all Directors and senior management personnel of the Company have
affirmed compliance with the Code of Conduct of the Company for the Financial Year ended on March 31, 2023 as
envisaged in Regulation 26(3) of the SEBI (Listing obligations and disclosure requirements) Regulations, 2015.
21. MD / CFO Certification
The Managing Director and CFO certification of the financial statements as specified in Regulation 17(8) read with Part B
of Schedule II of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 for the Financial Year 2022-23 is
provided elsewhere in this Annual Report.
22. RECONCILIATION OF SHARE CAPITAL
A qualified Practicing Company Secretary carry out audit to reconcile the total admitted capital with the National
Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL) and the total issued and
listed capital. Reconciliation of Share Capital Audit Report confirms that the total paid up capital was in agreement with
the total number of shares in physical firm and the total number of dematerialized shares held with NSDL and CDSL.
23. DISCLOSURE OF PENDING CASES / INSTANCES OF NON-COMPLIANCE
There were no non-compliances by the Company and no instances of penalties and strictures imposed on the
Company by the Stock Exchanges or SEBI or any other statutory authority on any matter related to the capital
market during the last three years except one penalty due to the delay in intimation for declaration of dividend. The penalty
was paid and the management assured the Board that due care would be taken in order to avoid any further
non-compliances.
24. COMPLIANCE WITH THE DISCRETIONARY REQUIREMENTS UNDER LISTING REGULATIONS
The Board of Directors periodically reviewed the compliance of all applicable laws and steps taken by the Company
to rectify instances of non-compliance, if any. The Company is in compliance with all mandatory requirements of
Listing Regulations. In addition, the Company has also adopted the following non-mandatory requirements to the extent
mentioned below:
• Audit qualifications: Company’s financial statements have no qualifications.
• Reporting of Internal Auditor: The Internal Auditor of the Company directly reports to the Audit Committee on
functional matters.
The Company has submitted quarterly compliance report on Corporate Governance with the Stock Exchanges, in
accordance with the requirements of Regulation 27(2) (a) of the Listing Regulations.
25. DISCLOSURE OF ACCOUNTING TREATMENT
The Company has complied with the appropriate accounting policies and has ensured that they have been applied
consistently. There have been no deviations from the treatment prescribed in the Accounting Standards notified under
Section 133 of the Companies Act, 2013.
26. GREEN INITIATIVE IN THE COPORATE GOVERNANCE
As part of the green initiative process, the Company has taken an initiative of sending documents like notice
calling Annual General Meeting, Corporate Governance Report, Directors Report, Audited financial Statements,
Auditors Report, Dividend intimations etc., by email are sent only to those shareholders whose email addresses are
not registered with the Company and for bounced mail cases. Shareholders are requested to register their email id
with Registrar and Share Transfer Agent/concerned depository to enable the Company to send the documents in
electronic from or inform the Company, in writing, in case they wish to receive the above documents in paper mode.

Sd/- Sd/-
Place: Hyderabad B.V.R. Subbu P. Srinivas Reddy
Date: 17.05.2023 Chairman Managing Director
(DIN: 00289721) (DIN: 00359139)
Declaration on Code of Conduct as required by Schedule V of Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015
I, P. Srinivas Reddy, Managing Director of the Company hereby declare that all the members of Board of
Directors and Senior Management Personnel have affirmed compliance with Code of Conduct, as applicable to
them, in respect of the financial year 2022-23.
For MTAR Technologies Limited
Sd/-
Place: Hyderabad P. Srinivas Reddy
Date: 17.05.2023 Managing Director
(DIN: 00359139)
170
Certificate of Non-disqualification of Directors
(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015)
To,
The Members of
Hyderabad
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of MTAR
Technologies Limited having CIN L72200TG1999PLC032836 and having registered office at 18, Technocrats Industrial
Estate, Balanagar, Hyderabad 500037 (hereinafter referred to as ‘the Company’), produced before us by the Company
for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause
10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors
Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and
explanations furnished to us by the Company & its officers, We hereby certify that none of the
Directors on the Board of the Company as stated below for the Financial Year ending on 31st March, 2023
have been debarred or disqualified from being appointed or continuing as Directors of companies by the
Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.
Date of Appointment in
Sr. No. Name of Director DIN
Company
1. Mr. Subbu Venkata Rama Behara 00289721 05/12/2020
2. Mr.Parvat Srinivas Reddy 00359139 11/03/2015
3. Mr.Aravamudan Krishna Kumar 00871792 05/12/2020
4. Mr. Gnana Sekaran Venkatasamy 02012032 05/12/2020
5. Mrs. Ameeta Chatterjee 03010772 05/12/2020
6. Mr. Venkata Satish Kumar Reddy Gangapatnam 06535717 21/09/2017
7. Mr.Udaymitra Chandrakant Muktibodh 06558392 05/12/2020
8. Mr. Anushman Reddy 08104131 09/08/2022
9. Mr. Praveen Kumar Reddy Akepati 08987107 14/12/2020
Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of
the management of the Company. Our responsibility is to express an opinion on these based on our verification. This
certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with
which the management has conducted the affairs of the Company.
For S.S. Reddy& Associates

Place: Hyderabad Practicing Company Secretaries
Date: 16.05.2023
S. Sarveswar Reddy
M. No.: 12611; CP No. 7478
UDIN: A012611E000317575
ANNEXURE – VII(a)
STATEMENT SHOWING THE NAMES OF TOP TEN EMPLOYEES
PURSUANT TO SEC. 197 READ WITH RULE 5 (1) (2) and (3) OF THE COMPANIES
(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014
1. The ratio of remuneration to each director to the median remuneration of the employees of the Company for the
financial year.
-
Director Total Remuneration (Rs. Mn) Ratio to Median Remuneration
Parvat Srinivas Reddy 33.60 1:0.02
Praveen Kumar Reddy 3.51 1:0.15
Anushman Reddy 5.57 1:0.09
2. The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer,
Company Secretary or Manager, if any, in the financial year.
Remuneration (Rs. Mn) Increase/

Name Designation (Decrease)
FY 2022-23 FY 2021-22 %
Parvat Srinivas Reddy Managing Director 33.60 24.00 40%
Praveen Kumar Reddy Executive Director 3.51 NA NA
Anushman Reddy Executive Director 5.57 NA NA
Gunneswara Rao Pusarla* Chief Financial Officer 16.80 3.17 NA
Shubham Sunil Bagadia Company Secretary & Compliance Oficer 1.16 0.64 81%
* In FY 21-22 remuneration paid only for five months
3. The percentage increase in the median remuneration of employees in the financial year (Amount in INR)
Remuneration (Rs.)
Particulars Increase/(Decrease) %
FY 2022-23 FY 2021-22
Median Remuneration of all the employees per annum* 5,22,504 3,84,324 36%
4. No. of Employees on the Roll of Company

Particulars Number
The number of employees on the rolls of the Company as on March 31, 2023 1871
5. Average percentile increase already made in the salaries of employees other than the managerial
personnel in the last financial year and its comparison with the percentile increase in the managerial
remuneration and justification thereof and details if there are any exceptional circumstances for increase in the
managerial remuneration.
Particulars Increase/(Decrease) %
Average percentage increase in the remuneration of all Employees*
14%
(Other than Key Managerial Personnel)
Average Percentage increase in the Remuneration of Key Managerial Person-
19%
nel
*Employees who have served for whole of the respective financial years have been considered.
6. Affirmation that the remuneration is as per the remuneration policy of the Company.
The Company is in compliance with its remuneration policy.
ANNEXURE – VII (b)
Statement showing the names of the Top ten Employees in terms of Remuneration drawn as per Rule 5 (3) Of The Companies (Appointment And Remuneration
Of Managerial Personnel) Rules, 2014
The percentage of
equity shares held by
the employee in the
Whether any such
Company within the
The last employee is a rela-
Nature of meaning of clause (iii)
Qualification and Date of commence- employment held tive of any director
Remuneration employment The age of the of sub rule (2) of Rule
No Name Designation experience of the ment of employ- by such employee or manager of the
received (Rs.) whether contractual employee 5 of the
employee ment before joining the Company and if so,
or otherwise Companies (
Company name of such
Appointment and
director or manager
Remuneration of
Managerial
Personnel) Rules,2014.
Gunneswara Rao Chief Financial

1 11800000 Permanent CA 08-11-2021 53 Tata Sikrosky 0.00 NA
Pusarla Officer
2 Tata Madhusudan Head SCM 8466668 Permanent BE & MBA 01-09-2021 56 Moon Iron & Steel 0.00 NA
Chief Operating Smart Auto Systems

3 Devesh Dhar Dwivedi 8228076 Permanent B.Tech & MBA 16-09-2019 42 0.00 NA
Officer Private Limited
Resident Director-
4 Rohit Khera Business 7376600 Permanent Economic Honours 15-09-2021 69 GOI 0.00 NA
Development
Century Enka
5 Pusparaj Satpathy VP- HR 6692032 Permanent MA & MBA 11-12-2019 48 0.00 NA
Limited
6 Doggala Siddareddy VP 5457768 Permanent M.Tech & EPBM-IIM 25-07-2010 61 ITC 0.00 NA
7 M Anushman Reddy Executive Director 5380000 Permanent MS+MBA 04-12-2016 31 Aerovironment 0.00 NA
Associated from
8 A V Sudhakar VP 5162324 Permanent B. Tech 18-01-1987 60 0.00 NA
past three decades
Charabuddi Ramesh Associated from

9 VP 4500631 Permanent DME 12-04-1984 61 0.00 NA
Reddy past three decades
Annual report FY 2022-23
AYYALASOMAYAJULA
10 VP 4270677 Permanent B. Tech 05-03-2020 55 Thermal System 0.00 NA
VARA PRASAD
172
ANNEXURE VIII
MD AND CFO Certification in respect of Financial Statements and

Cash Flow Statement
(Pursuant to Regulation 17 (8) of SEBI (Listing Obligations & Disclosure Requirements), Regulations, 2015 For
the Financial Year ended March 31, 2023
We have reviewed the Financial Statements and the Cash Flow Statement for the year ended 31st March 2023 and we
hereby certify and confirm to the best of our knowledge and belief the following:
a. The Financial Statements and Cash Flow statement do not contain any materially untrue statement or omit any material
fact or contain statements that might be misleading.
b. The Financial Statements and the Cash Flow Statement together present a true and fair view of the affairs of the
Company and are in compliance with existing accounting standards, applicable laws and regulations.
c. There are no transactions entered in to by the Company during the year ended 31st March 2023 which are
fraudulent, illegal or violative of Company’s Code of Conduct.
d. We accept responsibility for establishing and maintaining internal controls for Financial Reporting and we have
evaluated the effectiveness of these internal control systems of the Company pertaining to financial reporting.
Deficiencies noted, if any, are discussed with the Auditors and Audit Committee, as appropriate, and suitable
actions are taken to rectify the same.
e. There have been no significant changes in the above-mentioned internal controls over financial reporting during the
relevant period.
f. That there have been no significant changes in the accounting policies during the relevant period.
g. We have not noticed any significant fraud particularly those involving the, management or an employee having a
significant role in the Company’s internal control system over Financial Reporting.
Sd/- Sd/-
Place: Hyderabad P Srinivas Reddy Gunneswara Rao Pusarla
Date: 17-05-2023 Managing Director Chief Financial Officer (CFO)
(DIN: 00359139)
174
Certificate on Corporate Governance
To
The Members Of
We have examined the compliance of the conditions of Corporate Governance by MTAR Technologies
Limited ('the Company’) for the year ended on March 31, 2023, as stipulated under Regulations 17 to 27,
clauses (b) to (i) of sub-regulation (2) of Regulation 46 and Paras - C, D & E of Schedule V of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('SEBI Listing Regulations').
The compliance of the conditions of Corporate Governance is the responsibility of the Management. Our
examination was limited to the review of procedures and implementation thereof, as adopted by the Company for ensuring
compliance with conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, and
the representations made by the Directors and the Management and considering the relaxations
granted by the Ministry of Corporate Affairs and Securities and Exchange Board of India warranted due to
the spread of the COVID-19 pandemic, we certify that the Company has complied with the conditions of
Corporate Governance as stipulated in the SEBI Listing Regulations for the year ended on March 31, 2023.
We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency
or effectiveness with which the Management has conducted the affairs of the Company.
Sd/-
S. Sarveswar Reddy
M.No. A12611
Place: Hyderabad CP No. 7478
Date: 16.05.2023 UDIN: A012611E000317597
ANNEXURE IX
Form AOC - 1
Statement containing salient features of the financial statements of Subsidiaries (Pursuant to provision to
sub-section (3) of section 129 read with Rule 5 of the Companies (Accounts) Rules, 2014)
1. Name of the Subsidiaries: i. Magnatar Aero Systems Private Limited

ii. Gee Pee Aerospace & Defence Private Limited
2. Reporting Period: 01.04.2022 to 31.03.2023
3. Reporting Currency: Indian Rupee
(Amount in Rs.)
S. Particulars Magnatar Aero System Private Limited Gee Pee Aerospace & Defence
No. Private Limited
1. Share Capital 1,00,000 30,83,500
2. Reserves and surplus (3,16,920) 51,46,065
3. Total Assets 1,37,486 7,09,60,369
4. Total Liabilities 1,37,486 7,09,60,369
5. Investments 0 0
6. Turnover 0 2,63,95,531
7. Profit / loss before Taxation (71,869) (60,57,407)
8. Provision for Taxation 0 (1,18,612)
9. Profit / loss after Taxation (71,869) (59,38,796)
10. Proposed Dividend 0 0
11. % of Shareholding 100% 100%
1. Names of Subsidiaries which are yet to commence operation: Magnatar Aero System Private Limited
2. Names of subsidiaries which have been liquidated or sold during the year: None
MTAR Technologies Limited Annual Report FY 2022 - 23 176
FINANCIAL
STATEMENTS
INDEPENDENT AUDITOR’S REPORT

To the Members of MTAR Technologies Limited
Report on the Audit of the Standalone Financial

Statements
Opinion
We have audited the accompanying standalone statements under the provisions of the Act and the Rules
financial statements of MTAR Technologies Limited (“the thereunder, and we have fulfilled our other ethical
Company”), which comprise the Balance sheet as at March responsibilities in accordance with these requirements and
31 2023, the Statement of Profit and Loss, including the the Code of Ethics. We believe that the audit evidence we
statement of Other Comprehensive Income, the Cash Flow have obtained is sufficient and appropriate to provide a
Statement and the Statement of Changes in Equity for the basis for our audit opinion on the standalone financial
year then ended, and notes to the standalone financial statements.
statements, including a summary of significant
accounting policies and other explanatory information. Key Audit Matters
In our opinion and to the best of our information and Key audit matters are those matters that, in our
according to the explanations given to us, the aforesaid professional judgment, were of most significance in
standalone financial statements give the information our audit of the standalone financial statements for the
required by the Companies Act, 2013, as amended (“the financial year ended March 31, 2023. These matters were
Act”) in the manner so required and give a true and fair addressed in the context of our audit of the standalone
view in conformity with the accounting principles generally financial statements as a whole, and in forming our opinion
accepted in India, of the state of affairs of the Company as thereon, and we do not provide a separate opinion on these
at March 31, 2023, its profit including other matters. For each matter below, our description of how
comprehensive income, its cash flows and the changes in our audit addressed the matter is provided in that context.
equity for the year ended on that date.
We have determined the matters described below to be
Basis for Opinion the key audit matters to be communicated in our report.
We have fulfilled the responsibilities described in the
We conducted our audit of the standalone financial Auditor’s responsibilities for the audit of the standalone
statements in accordance with the Standards on Auditing financial statements section of our report, including in
(SAs), as specified under section 143(10) of the Act. Our relation to these matters. Accordingly, our audit included the
responsibilities under those Standards are further performance of procedures designed to respond to our
described in the ‘Auditor’s Responsibilities for the Audit of assessment of the risks of material misstatement of the
the Standalone Financial Statements’ section of our report. standalone financial statements. The results of our
We are independent of the Company in accordance with audit procedures, including the procedures performed to
the ‘Code of Ethics’ issued by the Institute of Chartered address the matters below, provide the basis for our
Accountants of India together with the ethical audit opinion on the accompanying standalone financial
requirements that are relevant to our audit of the financial statements.
Key audit matters How our audit addressed the key audit matter
Revenue recognition for long term projects (as described in Note 2.2(f) and 20 of the standalone financial
statements)
Revenue from contracts with customer is recognised when Our audit procedures, among others included the
control of the goods is transferred to the customer at an following:
amount that reflects the consideration to which the • Assessed the Company’s revenue recognition policy
Company expects to be entitled in exchange for those in terms of Ind AS 115 (“Revenue from Contracts with
goods. During the year ended March 31, 2023, the Customers”).
Company has recognised revenue amounting to Rs. • Obtained an understanding, assessed the design and
1,123.25 millions and Rs. 4,506.28 millions from domestic tested the operating effectiveness of internal controls
and export sales respectively. related to revenue recognition.
Revenue recognition for long term projects (as described in Note 2.2(f) and 20 of the standalone financial
statements)
The point at which control passes is determined based on Performed the following tests for a sample of transactions
the terms and conditions by each customer arrangement
i.e., delivery specifications including incoterms in case of o tested supporting documentation for sales transactions
exports. The risk is, therefore, that revenue may not get recorded during the year which included sales invoices,
recognised in the correct period. customer contracts / sales orders, shipping documents and
other related documents.
Accordingly, due to the significant risk associated with
revenue recognition in accordance with terms of Ind AS o verified whether the recognition of revenue is in
115 ‘Revenue from contracts with customers’, it has been accordance with the incoterms / when the conditions for
determined to be a key audit matter in our audit of the revenue recognitions are satisfied.
standalone financial statements.
• Tested the supporting documentation for sample of sales
transactions recorded during the period closer to the year
end and subsequent to the year end to agree the period of
revenue recognition to underlying documents as referred
above.
• Assessed the relevant disclosures made in the standalone

financial statements.
We have determined that there are no other key audit matters to communicate in our report.
Other Information
The Company’s Board of Directors is responsible for the other comprehensive loss, cash flows and
other information. The other information comprises the changes in equity of the Company in accordance with the
information included in the Annual report, but does not accounting principles generally accepted in India,
include the standalone financial statements and our including the Indian Accounting Standards (Ind AS)
auditor’s report thereon. specified under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended.
Our opinion on the standalone financial statements does
not cover the other information and we do not express any This responsibility also includes maintenance of
form of assurance conclusion thereon. adequate accounting records in accordance with
the provisions of the Act for safeguarding of the
In connection with our audit of the standalone assets of the Company and for preventing and
financial statements, our responsibility is to read detecting frauds and other irregularities; selection
the other information and, in doing so, consider and application of appropriate accounting policies;
whether such other information is materially making judgments and estimates that are reasonable and
inconsistent with the financial statements or our knowledge prudent; and the design, implementation and maintenance of
obtained in the audit or otherwise appears to be materially adequate internal financial controls, that were
misstated. If, based on the work we have performed, operating effectively for ensuring the accuracy and
we conclude that there is a material misstatement completeness of the accounting records, relevant to
of this other information, we are required to report the preparation and presentation of the standalone
that fact. We have nothing to report in this regard. financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or
Responsibilities of Management for the Standalone error.
Financial Statements
The Company’s Board of Directors is responsible for

the matters stated in section 134(5) of the Act with
respect to the preparation of these standalone
financial statements that give a true and fair view of the
financial position, financial performance including
In preparing the standalone financial statements, • Conclude on the appropriateness of management’s use
management is responsible for assessing the of the going concern basis of accounting and, based on the
Company’s ability to continue as a going concern, audit evidence obtained, whether a material uncertainty
disclosing, as applicable, matters related to going exists related to events or conditions that may cast signifi-
concern and using the going concern basis of cant doubt on the Company’s ability to continue as a going
accounting unless management either intends to concern. If we conclude that a material uncertainty exists,
liquidate the Company or to cease operations, or has no we are required to draw attention in our auditor’s report
realistic alternative but to do so. to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our
Those Board of Directors are also responsible conclusions are based on the audit evidence obtained up to
for overseeing the Company’s financial reporting the date of our auditor’s report. However, future events or
process. conditions may cause the Company to cease to continue as
a going concern.
Auditor’s Responsibilities for the Audit of the
Standalone Financial Statements • Evaluate the overall presentation, structure and
content of the standalone financial statements, including the
Our objectives are to obtain reasonable assurance disclosures, and whether the standalone financial
about whether the standalone financial statements statements represent the underlying transactions and
as a whole are free from material misstatement, events in a manner that achieves fair presentation.
whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance We communicate with those charged with governance
is a high level of assurance, but is not a guarantee that regarding, among other matters, the planned scope and
an audit conducted in accordance with SAs will always timing of the audit and significant audit findings, including
detect a material misstatement when it exists. any significant deficiencies in internal control that we
Misstatements can arise from fraud or error and identify during our audit.
are considered material if, individually or in the
aggregate, they could reasonably be expected to influence We also provide those charged with governance with
the economic decisions of users taken on the basis of these a statement that we have complied with relevant
standalone financial statements. ethical requirements regarding independence, and to
communicate with them all relationships and other
As part of an audit in accordance with SAs, we matters that may reasonably be thought to bear on our
exercise professional judgment and maintain professional independence, and where applicable, related safeguards.
skepticism throughout the audit. We also:
From the matters communicated with those charged with
•Identify and assess the risks of material misstatement of governance, we determine those matters that were of
the standalone financial statements, whether due to fraud most significance in the audit of the standalone financial
or error, design and perform audit procedures responsive statements for the financial year ended March 31, 2023
to those risks, and obtain audit evidence that is sufficient and are therefore the key audit matters. We describe these
and appropriate to provide a basis for our opinion. The risk matters in our auditor’s report unless law or regulation
of not detecting a material misstatement resulting from precludes public disclosure about the matter or when, in
fraud is higher than for one resulting from error, as fraud extremely rare circumstances, we determine that a matter
may involve collusion, forgery, intentional omissions, should not be communicated in our report because the
misrepresentations, or the override of internal control. adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
•Obtain an understanding of internal control relevant communication.
to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of Report on Other Legal and Regulatory Requirements
the Act, we are also responsible for expressing our opinion
on whether the Company has adequate internal financial 1. As required by the Companies (Auditor’s Report) Order,
controls with reference to financial statements in place and 2020 (“the Order”), issued by the Central Government of India
the operating effectiveness of such controls. in terms of sub-section (11) of section 143 of the Act, based on
our audit paragraph we give in the “Annexure 1” a statement
• Evaluate the appropriateness of accounting policies used on the matters specified in paragraphs 3 and 4 of the Order.
and the reasonableness of accounting estimates and related
disclosures made by management. 2. 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 it
appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other Comprehensive
Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the
books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of the written representations received from the directors as on March 31, 2023 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 adequacy of the internal financial controls with reference to these standalone financial statements
and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid / provided by the
Company to its directors in accordance with the provisions of section 197 read with Schedule V to the Act;
(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, 2014, as amended in our opinion and to the best of our information and according to the
explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements
– Refer Note 32 to the standalone financial statements;
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 Investor Education and Protection Fund by the
Company.
iv. a) The management has represented that, to the best of its knowledge and belief, 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 persons or entity(ies), including foreign entities (“Intermediaries”), with the understand-
ing, 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) The management has represented that, to the best of its knowledge and belief, 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) Based on such audit procedures performed that have been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a)
and (b) contain any material misstatement.
v. No dividend has been declared or paid during the year by the Company.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only
w.e.f. April 1, 2023, reporting under this clause is not applicable.
For S.R. Batliboi & Associates LLP

Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
______________________________
per Atin Bhargava
Partner
Membership Number: 504777
UDIN: 23504777BGXMFF9270
Place of Signature: Hyderabad

Date: May 17, 2023
Annexure 1 referred to in paragraph under the heading “Report on Other legal and
Regulatory Requirements” of our report of even date
Re: MTAR Technologies Limited (“the Company”)
In terms of the information and explanations sought by us and given by the Company and the books of account and
records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that:
(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and
situation of Property, Plant and Equipment.
(B) The Company has maintained proper records showing full particulars of intangibles assets.
(b) All Property, Plant and Equipment have not been physically verified by the management during the year, but there
is regular programme of verification which in our opinion is reasonable having regard to the size of the Company and
the nature of its assets. No material discrepancies were noted on such verification.
(c) The title deeds of all the immovable properties (other than properties where the Company is the lessee and
the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.
(d) The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or
intangible assets during the year ended March 31, 2023.
(e) There are no proceedings initiated or are pending against the Company for holding any benami property under the
Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the
year. In our opinion the coverage and the procedure of such verification by the management is appropriate.
(b) As disclosed in note 17 to the standalone financial statements, the Company has been sanctioned working capital
limits in excess of Rs. five crores in aggregate from banks during the year on the basis of security of current assets of the
Company. The quarterly returns/statements filed by the Company with such banks are in agreement with the
books of accounts of the Company.
(iii) (a) During the year the Company has provided loans as follows
(Amount in Rs. million)
Guarantees Security Loans Advances in
nature of loans
Aggregate amount granted /
provided during the year
- Subsidiaries
Nil Nil 41.67 Nil
Balance outstanding as at balance
sheet date in respect of above
cases
- Subsidiaries
Nil Nil 41.67 Nil
During the year the Company has not provided loans, advances in the nature of loans, stood guarantee or
provided security to companies, firms, Limited Liability Partnerships or any other parties.
(b) During the year the investments made and the terms and conditions of the grant of a loan, investments and
guarantees to a company are not prejudicial to the Company’s interest. During the year the Company has not made
investments, provided guarantees, provided security and granted loans and advances in the nature of loans to any
company, firms, Limited Liability Partnerships or any other parties other than mentioned above
(c) The Company has granted loan during the year to a company where the schedule of repayment of principal
and payment of interest has been stipulated; however, the repayment of principal or payment of interest is not due. The
Company has not granted loans and advances in the nature of loans to firms, Limited Liability Partnerships or any other
parties.
(d) There are no amounts of loans and advances in the nature of loans granted to companies, firms,
limited liability partnerships or any other parties which are overdue for more than ninety days.
(e) There were no loans or advance in the nature of loan granted to companies, firms,
Limited Liability Partnerships or any other parties which had fallen due during the year.
(f) The Company has not granted any loans or advances in the nature of loans, either repayable on
demand or without specifying any terms or period of repayment to companies, firms,
Limited Liability Partnerships or any other parties. Accordingly, the requirement to report on
clause 3(iii)(f) of the Order is not applicable to the Company.
(iv) Loans, investments, guarantees and security in respect of which provisions of sections 185 and 186
of the Companies Act, 2013 are applicable have been complied with by the Company.
(v) The Company has neither accepted any deposits from the public nor accepted any amounts which are
deemed to be deposits within the meaning of sections 73 to 76 of the Companies Act and the
rules made thereunder, to the extent applicable. Accordingly, the requirement to report on clause 3(v)
of the Order is not applicable to the Company.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules
made by the Central Government for the maintenance of cost records under section 148(1) of the
Companies Act, 2013, related to the manufacture of high precision machinery and are of the opinion
that prima facie, the specified accounts and records have been made and maintained. We have not,
however, made a detailed examination of the same.
(vii) (a) The Company is generally regular in depositing with appropriate authorities undisputed
statutory dues including goods and services tax, provident fund, employees’ state insurance,
income-tax, duty of customs, cess and other statutory dues applicable to it. According to the
information and explanations given to us and based on audit procedures performed by us, no
undisputed amounts payable in respect of these statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable. The provision of sales-tax,
servicduty of excise and value added tax are not applicable to the Company.
(b) There are no dues of goods and services tax, provident fund, employees’ state insurance,
income tax, duty of customs, cess, and other statutory dues which have not been deposited on account
of any dispute.
(viii) The Company has not surrendered or disclosed any transaction, previously unre-corded in the books of
account, in the tax assessments under the Income Tax Act, 1961 as income during the year. Accordingly,
the requirement toreport on clause 3(viii) of the Order is not applicable to the Company.
(ix) (a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of
interest thereon to any lender.
(b) The Company has not been declared wilful defaulter by any bank or financial institution or
government or any government authority.
(c) Term loans were applied for the purpose for which the loans were obtained.
(d) On an overall examination of the standalone financial statements of the Company, no funds raised on
short-term basis have been used for long-term purposes by the Company.
(e) On an overall examination of the standalone financial statements of the Company, the Company has
not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries.
(f) The Company has not raised loans during the year on the pledge of securities held in its subsidiaries
Company. Hence, the requirement to report on clause (ix)(f) of the Order is not applicable to the
Company.
(x) (a) Monies raised during the financial year 2020-21 by the Company by way of initial public offer were
applied for the purpose for which they were raised, though idle/surplus funds which were not required
for immediate utilization have been invested in fixed deposits with original maturity period of less than
three months. The maximum amount of idle/surplus funds invested during the year was Rs. 427.79
million, of which Rs. Nil was outstanding at the end of the year.
(b) The Company has not made any preferential allotment or private placement of shares / fully or partially
or optionally convertible debentures during the year under audit and hence, the requirement to report
on clause 3(x)(b) of the Order is not applicable to the Company.
(xi) (a) No fraud by the Company or no fraud on the Company has been noticed or reported during the year.
(b) During the year, no report under sub-section (12) of section 143 of the Companies Act, 2013 has been
filed by cost auditor or secretarial auditor or by us in Form ADT – 4 as prescribed under Rule 13 of
Companies (Audit and Auditors) Rules, 2014 with the Central Government.
(c) As represented to us by the management, there are no whistle blower complaints received by the
Company during the year.
(xii) The Company is not a nidhi Company as per the provisions of the Companies Act, 2013. Therefore, the
requirement to report on clause 3(xii) of the Order is not applicable to the Company.
(xiii) Transactions with the related parties are in compliance with sections 177 and 188 of Companies Act,
2013 where applicable and the details have been disclosed in the notes to the standalone financial
statements, as required by the applicable accounting standards.
(xiv) (a) The Company has an internal audit system commensurate with the size and nature of its business.
(b) The internal audit reports of the Company issued till the date of the audit report, for the period under
audit have been considered by us.
(xv) The Company has not entered into any non-cash transactions with its directors or persons connected
with its directors and hence requirement to report on clause 3(xv) of the Order is not applicable to the
Company.
(xvi) (a) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) are not applicable to
the Company. Accordingly, the requirement to report on clause (xvi)(a) of the Order is not applicable to
the Company.
(b) The Company is not engaged in any Non-Banking Financial or Housing Finance activities. Accordingly,
the requirement to report on clause (xvi)(b) of the Order is not applicable to the Company.
(c) The Company is not a Core Investment Company as defined in the regulations made by Reserve Bank
of India. Accordingly, the requirement to report on clause 3(xvi) of the Order is not applicable to the
Company.
(d) There is no Core Investment Company as a part of the Group, hence, the requirement to report on
clause 3(xvi)(d) of the Order is not applicable to the Company.
(xvii) The Company has not incurred cash losses in the current financial year and in the immediately
preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year and accordingly requirement to
report on Clause 3(xviii) of the Order is not applicable to the Company.
(xix) On the basis of the financial ratios disclosed in Note 39 to the standalone financial statements,
ageing and expected dates of realization of financial assets and payment of financial liabilities,
other information accompanying the standalone 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) (a) In respect of other than ongoing projects, there are no unspent amounts that are required to be
transferred to a fund specified in Schedule VII of the Companies Act (the Act), in compliance with
second proviso to sub section 5 of section 135 of the Act. This matter has been disclosed in Note 31 to
the financial statements.
(b) There are no unspent amounts in respect of ongoing projects, that are required to be transferred to a
special account in compliance of provision of sub section (6) of section 135 of Companies Act.
This matter has been disclosed in Note 31 to the financial statements.

ICAI Firm Registration Number:101049W/E300004
______________________________
per Atin Bhargava
Partner

Date: May 17, 2023
ANNEXURE 2 TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE
STANDALONE FINANCIAL STATEMENTS OF MTAR TECHNOLOGIES LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies
Act, 2013 (“the Act”)
We have audited the internal financial controls with material weakness exists, and testing and evaluating the
reference to standalone financial statements of MTAR design and operating effectiveness of internal control based
Technologies Limited (“the Company”) as of March 31, 2023 on the assessed risk. The procedures selected depend on
in conjunction with our audit of the standalone financial the auditor’s judgement, including the assessment of the
statements of the Company for the year ended on that date. risks of material misstatement of the financial statements,
whether due to fraud or error.
Management’s Responsibility for Internal Financial
Controls We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
The Company’s Management is responsible for audit opinion on the Company’s internal financial controls
establishing and maintaining internal financial controls with reference to these standalone financial statements.
based on the internal control over financial reporting
criteria established by the Company considering the
essential components of internal control stated in the Meaning of Internal Financial Controls With Reference to
Guidance Note on Audit of Internal Financial Controls Over these Standalone Financial Statements
Financial Reporting issued by the Institute of Chartered
Accountants of India (“ICAI”). These responsibilities A Company's internal financial controls with reference to
include the design, implementation and maintenance of standalone financial statements is a process designed to
adequate internal financial controls that were operating provide reasonable assurance regarding the reliability of
effectively for ensuring the orderly and efficient conduct of its financial reporting and the preparation of financial
business, including adherence to the Company’s policies, the statements for external purposes in accordance with
safeguarding of its assets, the prevention and detection of generally accepted accounting principles. A Company's
frauds and errors, the accuracy and completeness of the internal financial controls with reference to standalone
accounting records, and the timely preparation of reliable financial statements includes those policies and procedures
financial information, as required under the Companies Act, that (1) pertain to the maintenance of records that, in
2013. reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Company; (2)
Auditor’s Responsibility provide reasonable assurance that transactions are
recorded as necessary to permit preparation of
Our responsibility is to express an opinion on the financial statements in accordance with generally accepted
Company's internal financial controls with reference accounting principles, and that receipts and expenditures
to these standalone financial statements based on our of the Company are being made only in accordance with
audit. We conducted our audit in accordance with the authorisations of management and directors of the
Guidance Note on Audit of Internal Financial Controls Over Company; and (3) provide reasonable assurance regarding
Financial Reporting (the “Guidance Note”) and the prevention or timely detection of unauthorised acquisition,
Standards on Auditing, as specified under section use, or disposition of the Company's assets that could have
143(10) of the Act, to the extent applicable to an audit a material effect on the financial statements.
of internal financial controls, both issued by ICAI. Those
Standards and the Guidance Note require that we comply with Inherent Limitations of Internal Financial Controls With
ethical requirements and plan and perform the audit to Reference to Standalone Financial Statements
obtain reasonable assurance about whether adequate
internal financial controls with reference to these standalone Because of the inherent limitations of internal financial
financial statements was established and maintained and if controls with reference to standalone financial statements,
such controls operated effectively in all material respects. including the possibility of collusion or improper
management override of controls, material
Our audit involves performing procedures to obtain misstatements due to error or fraud may occur and not
audit evidence about the adequacy of the internal financial be detected. Also, projections of any evaluation of the
controls with reference to these standalone financial internal financial controls with reference to standalone
statements and their operating effectiveness. Our audit of financial statements to future periods are subject to the
internal financial controls with reference to standalone risk that the internal financial control with reference to
financial statements included obtaining an understanding of standalone financial statements may become inadequate
internal financial controls with reference to these because of changes in conditions, or that the degree of
standalone financial statements, assessing the risk that a compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to
standalone financial statements and such internal financial controls with reference to standalone financial statements
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 the Guidance Note issued
by the ICAI.

______________________________
per Atin Bhargava
Partner

Date: May 17, 2023
Standalone Balance Sheet as at March 31, 2023
(All amounts are in Indian rupees in millions, except share data and unless otherwise stated)
Particulars Notes As at March 31, 2023 As at March 31, 2022
Assets
Non-current assets
Property, plant and equipment 3 2,815.16 1,953.86
Capital work in progress 3.1 631.61 438.00
Intangible assets 3 7.94 10.09
Investment in subsidiaries 4 (a) 66.94 0.10
Financial assets
Investments 4 (b) 0.10 0.10
Loans 5 (a) 41.67 -
Other financial assets 5 (b) 21.33 21.62
Non-current tax assets (net) 6 5.00 5.17
Other non-current assets 7 81.84 216.18
3,671.59 2,645.12
Current Assets
Inventories 9 3,859.67 1,703.16
Financial assets
Investment in mutual funds 4(c) 274.74 623.30
Trade receivables 10 2,081.16 1,359.84
Cash and cash equivalents 11 122.29 595.47
Bank balances other than cash and cash equivalents 12 187.52 73.77
Other financial assets 5 (b) 50.13 67.33
Other current assets 8 382.35 209.70
6,957.86 4,632.57
Total assets 10,629.45 7,277.69
Equity and liabilities
Equity
Equity share capital 13 307.59 307.59
Other equity 14 5,900.53 4,890.05
Total equity 6,208.12 5,197.64
Liabilities
Non-current liabilities
Financial Liabilities
Borrowings 17 777.23 259.47
Provisions 15 56.25 4.24
Deferred tax liabilities (net) 16 180.10 162.83
1,013.58 426.54
Current liabilities
Financial liabilities
Borrowings 17 650.70 699.46
Trade payables 18
- dues of micro, small and medium enterprises 119.13 7.20
- dues of creditors other than micro, small and medium enterprises 2,061.56 563.20
Other financial liabilities 17A 70.18 24.27
Current tax liabilities (net) 6 22.06 2.87
Other current liabilities 19 465.58 326.14
3,407.75 1,653.51
Total equity and liabilities 10,629.45 7,277.69
Summary of significant accounting policies 2.2
The acCompanying notes are an integral part of the standalone financial statements.
As per our report of even date
For S.R. BATLIBOI & ASSOCIATES LLP For and on behalf of the Board of Directors of
Chartered accountants MTAR Technologies Limited
ICAI Firm registration number: 101049W/E300004
Parvat Srinivas Reddy Venkatasatishkumar Reddy Gangapatnam
Managing Director Director
DIN: 00359139 DIN: 06535717
per Atin Bhargava
Partner Gunneswara Rao Pusarla Shubham Sunil Bagadia
Membership no: 504777 Chief Financial Officer Company Secretary
Membership no: ACS-55748
Hyderabad Hyderabad
Date: May 17, 2023 Date: May 17, 2023
Standalone statement of profit and loss for the year ended March 31, 2023
Particulars Notes For the year ended For the year ended
March 31, 2023 March 31, 2022
Income
Revenue from operations 20 5,733.47 3,220.06
Other income 21 197.02 87.53
Total income 5,930.49 3,307.59
Expenses
Cost of materials consumed 22 3,147.23 1,574.05
Changes in inventories of work-in-progress 23 (456.84) (411.54)
Employee benefit expense 24 923.63 707.77
Finance costs 25 145.02 66.49
Depreciation and amortisation expense 26 182.71 143.10
Other expenses 27 579.83 405.45
Total expenses 4,521.58 2,485.32
Profit before tax 1,408.91 822.27
Tax expense 28
Current tax 340.71 179.95
Deferred tax 27.45 33.51
Total tax expense 368.16 213.46
Profit for the year 1,040.75 608.81
Other comprehensive income (OCI)
OCI not to be reclassified to profit or loss in subsequent periods:
Re-measurement gains/ (losses) on defined benefit plans (40.45) 8.21
Income tax effect 10.18 (2.39)
OCI for the period, net of tax (30.27) 5.82
Total comprehensive income for the year 1,010.48 614.63
Earnings per equity share of Rs. 10 each fully paid 29
Basic and diluted, computed on the basis of profit attributable to equity holders 33.83 19.79
The accompanying notes are an integral part of the standalone financial statements.
DIN: 00359139 DIN: 06535717
per Atin Bhargava
Hyderabad Hyderabad
Date: May 17, 2023 Date: May 17, 2023
Standalone statement of cash flows for the year ended March 31, 2023
Particulars For the year ended For the year ended

March 31, 2023 March 31, 2022
A Cash flow from operating activities

Adjustments to reconcile profit before tax to net cash flows
Depreciation and amortisation expense 182.71 143.10
Finance costs 145.02 66.49
Liabilities no longer required written back - (2.72)
Gain on sale / revaluation of mututal fund (27.94) (19.64)
Unrealised exchange gain (6.55) (14.00)
Loss on sale of PPE 1.81 -
Interest income (16.49) (34.23)
Operating profit before working capital changes 1,687.47 961.27
Movements in working capital:
Increase in trade receivables (714.77) (573.06)
Increase in inventories (2,156.51) (677.72)
Decrease in current and non current financial assets 13.88 57.55
Increase in other current and non current assets (169.46) (58.39)
Increase in trade payables 1,610.29 225.68
Increase / (decrease) in other current liabilities 139.44 (67.37)
Increase / (decrease) in provisions (0.27) 14.00
Cash generated (used in) / from operations 410.07 (118.03)
Income tax paid (net of refunds) (321.34) (179.99)
Net cash flows (used in) / from operating activities (A) 88.73 (298.02)
B Cash flow used in investing activities

Purchase of property, plant and equipment, including intangible assets, capital work in progress, (1,065.09) (910.96)
capital creditors and capital advances
Proceeds from Sale of Property Plant and Equipment 6.10 -
Investment in units of mutual fund (323.50) (779.67)
Investment in Subsidary (66.84) -
Loans to Subsidary (41.67) -
Receipt from redemption in units of mutual fund 700.00 176.00
(Investment in) / redemption from bank deposits (net) (108.75) 29.02
Interest received 15.10 35.63
Net cash flows used in investing activities (B) (884.65) (1,449.98)
C Cash flow from financing activities

Dividend paid - (184.56)
Proceeds from long term borrowings 738.46 415.99
Repayment of long term borrowings (174.89) (50.00)
Proceeds from / (repayment of) short term borrowings (net) (94.58) 423.17
Finance costs paid (146.25) (64.00)
Net cash flows from financing activities (C) 322.74 540.60
Net increase / (decrease) in cash and cash equivalents (A+B+C) (473.18) (1,207.40)
Cash and cash equivalents at the beginning of the year 595.47 1,802.87
Cash and cash equivalents at the end of the year 122.29 595.47
Standalone statement of cash flows for the year ended March 31, 2023
Particulars As at As at
March 31, 2023 March 31, 2022
Components of cash and cash equivalents
Cash on hand 0.18 0.13
Balance with banks:
Current accounts 122.11 4.44
On Monitoring account - 8.04
Deposits with monitoring agency for amount received for IPO and Pre-IPO with original maturity of
- 432.31
less than 3 months
Deposits with original maturity of less than three months - 150.55
Total cash and cash equivalents 122.29 595.47
The reconciliation between the opening and the closing balances for liabilities arising from financing activities (long-
term borrowings, including current maturities and short-term borrowings) is as follows:
Particulars Opening balance Proceeds / Forex loss / Closing balance

(repayment) (net) (gain)
For the year ended March 31, 2023
Long-term including current maturities 487.25 563.57 - 1,050.82
Short-term 471.68 (94.57) - 377.11

Long-term including current maturities 121.26 365.99 - 487.25
Short-term 48.51 419.66 3.51 471.68
The accompanying notes are an integral part of the standalone financial statements.
DIN: 00359139 DIN: 06535717
per Atin Bhargava
Hyderabad Hyderabad
Date: May 17, 2023 Date: May 17, 2023
Standalone statement of changes in equity for the year ended March 31, 2023
a) Equity share capital

Equity shares of Rs. 10 each, issued, subscribed and fully paid up No. of shares Amount
As at April 01, 2021 30,759,591 307.59
Add: Issued during the year - -
As at March 31, 2022 30,759,591 307.59
As at March 31, 2023 30,759,591 307.59
Other Equity
Particulars Securities Capital redemption Retained Earnings Total

premium reserve
As at April 01, 2021 3,199.56 14.55 1,245.87 4,459.98
Profit for the year - - 608.81 608.81
Equity dividend - - (184.56) (184.56)
Other comprehensive income for the year - - 5.82 5.82
As at March 31, 2022 3,199.56 14.55 1,675.94 4,890.05
Profit for the year - - 1,040.75 1,040.75
Other comprehensive income for the year - - (30.27) (30.27)
As at March 31, 2023 3,199.56 14.55 2,686.42 5,900.53
The acCompanying notes are an integral part of the standalone financial statements.
DIN: 00359139 DIN: 06535717
per Atin Bhargava
Hyderabad Hyderabad
Date: May 17, 2023 Date: May 17, 2023
Notes to the standalone financial statements for the year ended March 31, 2023
(All amounts are in Indian rupees in millions except share data and unless otherwise stated)
1 Corporate Information
MTAR Technologies Limited ("MTAR" or "the Company") was a private limited Company domiciled in India, and
incorporated on November 11,1999 under the provisions of the erstwhile Companies Act, 1956
replaced with Companies Act 2013 (“Act”) w.e.f. April 1, 2014 with its registered office at 18,
Technocrats Industrial Estate, Balanagar, Hyderabad, Telangana, India 500037. The Company is engaged in the
business of manufacturing high precision and heavy equipment, components, machines for sectors
including nuclear, aerospace, defence, etc. The Company has become a Public Limited Company w.e.f.
November 2, 2020 and consequently the name of the Company has changed from MTAR Technologies Private
Limited to MTAR Technologies Limited. The Company listed its shares in both BSE and NSE on March 15, 2021.
2 Significant accounting policies
These notes provide a list of the significant accounting policies adopted in the preparation of these financial statements.
These policies have been consistently applied to all the periods presented, unless otherwise stated.
2.1 Basis of preparation
The Standalone financial statements for the year ended March 31, 2023 comprising of
Standalone balance sheet as at March 31, 2023, Standalone statement of profit and loss, including the
Standalone statement of other comprehensive income, Standalone cash flow statement and Standalone
statement of changes in equity for the year ended, and a summary of explanatory notes (together
hereinafter referred to as "financial statements") have been prepared in accordance with Indian
Accounting Standards ("Ind AS") notified under Companies Act, 2013 read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended including presentation requirements of
Division II of Schedule III to the Companies Act, 2013 (Ind AS Compliant Schedule III), as applicable to the
standalone financial statements (to the extent notified) and other accounting principles generally
accepted in India.
The financial statements has been prepared on a historical cost basis, except for the following assets and
liabilities which have been measured at fair value:
- Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments), and
- Defined benefits plan - plan assets measured at fair value
The financial statements are presented in Indian Rupees "INR" or “Rs.” and all values are stated as Indian Rupees in millions,
except when otherwise indicated.
2.2 Summary of significant accounting policies
a) Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is
treated as current when it is:
• Expected to be realised or intended to be sold or consumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realised within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period
All other assets are classified as non-current.
A liability is current when:

+91 93953 87386
• It is expected to be settled in normal operating cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period
The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.
b) Property, plant and equipment
Freehold land is carried at cost, net of tax / duty credit availed, net of accumulated impairment, if any. All
other items of property, plant and equipment are stated at cost, net of tax / duty credit availed, less
accumulated depreciation and accumulated impairment losses, if any. Cost of an item of property, plant and
equipment comprises its purchase price, including import duties and non-refundable taxes, after deducting trade
discounts and rebates, any directly attributable cost of bringing the item to its working condition for its
intended use and estimated costs of dismantling and removing the item and restoring the site on which it
located. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for
long-term construction projects if the recognition criteria are met. When significant parts of plant and equipment
are required to be replaced at intervals, the Company depreciates them separately based on their specific
useful lives. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred.
Capital work-in-progress (CWIP) includes cost of property, plant and equipment under installation/ under development,
net of accumulated impairment loss, if any, as at the balance sheet date.
Directly attributable expenditure incurred on project under implementation are shown under CWIP. At the point when an
asset is capable of operating in the manner intended by management, the capital work in progress is transferred to the
appropriate category of property, plant and equipment.
Cost of assets not ready for use at the balance sheet date are disclosed under capital work-in-progress.
Capital work in progress is stated at cost, net of accumulated impairment loss, if any. Amounts paid towards the
acquisition of property, plant and equipment outstanding as of each reporting date are recognised as capital advance.
Depreciation is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the
management, which is equal to the life prescribed under the Schedule II to the Companies Act, 2013.
The useful lives estimated by the management are given below:

Category of Asset Estimated useful life (years)
Property, plant and equipment
Buildings 30
Plant and machinery 15
Electrical equipment 5
Furniture and fixtures 10
Office equipment 5
Computers 3/ 6 years
Vehicles 8
The residual value, useful life and methods of depreciation of property, plant and equipment are reviewed at each
financial period end and adjusted prospectively, if appropriate.
An item of property, plant and equipment and any significant part initially recognised is derecognised
upon disposal or when no future economic benefits are expected from its use or disposal. Gains and
losses upon disposal of an item of property, plant and equipment are determined by comparing the proceeds from
disposal with the carrying amount of property, plant and equipment and are recognized net within “other
(income)/expense, net” in the statement of profit and loss.
C) Intangible assets
Costs relating to computer software, which is acquired, are capitalised and amortised on a straight-line basis over their
estimated useful lives of three years.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the
asset is derecognised.
d) Inventories
Inventories are valued at the lower of cost and net realizable value after providing for obsolescence and other losses, where
considered necessary. Cost of inventories comprises all cost of purchase, cost of conversion and other costs incurred in
bringing the inventories to their present location and condition. Net realizable value is the estimated selling price in the
ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.
Costs incurred in bringing each product to its present location and condition are accounted for as follows:
i. Raw materials: Cost includes cost of purchase and other costs incurred in bringing the inventories to their present
location and condition. Cost is determined on weighted average basis.
ii. Finished goods and work-in-progress: Cost includes cost of direct materials and labour and a proportion of
manufacturing overheads based on the normal operating capacity but excluding borrowing costs. Cost is determined on
weighted average basis.
e. Impairment of non financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s
recoverable amount.
An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal
and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable
amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining
fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified,
an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for
publicly traded companies or other available fair value indicators.
The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared
separately for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast
calculations generally cover a period of five years. For longer periods, a long-term growth rate is calculated and applied to
project future cash flows after the fifth year. To estimate cash flow projections beyond periods covered by the most recent
budgets/forecasts, the Company extrapolates cash flow projections in the budget using a steady or declining growth rate
for subsequent years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term
average growth rate for the products, industries, or country or countries in which the Company operates, or for the market
in which the asset is used.
Impairment losses of continuing operations, including impairment on inventories, are recognised in the
statement of profit and loss, except for properties previously revalued with the revaluation surplus taken to
OCI. For such properties, the impairment is recognised in OCI up to the amount of any previous revaluation
surplus. An assessment is made at each reporting date to determine whether there is an indication that previously
recognised impairment losses no longer exist or have decreased. If such indication exists, the Company
estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only
if there has been a change in the assumptions used to determine the asset’s recoverable amount since the
last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not
exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior periods. Such reversal is recognised in the
statement of profit and loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a
revaluation increase.
f) Revenue
(i) Revenue from contract with customers
Revenue from contracts with customer is recognised when control of the goods or services are transferred to the
customer. The Company has concluded that it is the principal in its revenue arrangements because it typically controls the
goods or services before transferring them to the customer.
Revenue is measured at the fair value of the consideration received or receivable. Amount disclosed as revenue are net of
returns, trade allowances, rebates. Amounts collected on behalf of third parties such as Goods and service Tax (GST) are
excluded from revenue.
The specific recognition criteria described below must also be met before revenue is recognised.
Sale of goods
Revenue is recognized at the point in time when control of the goods is passed to the customer. The point
at which control passes is determined based on the terms and conditions by each customer arrangement,
but generally occurs on delivery to the customer. The contracts that Company enters into relate to sales
order containing single performance obligations for the delivery of goods as per Ind AS 115. Transaction price is the
amount of consideration to which the Company expects to be entitled in exchange for transferring goods to a
customer. Variable consideration is estimated using the expected value method or most likely amount as
appropriate in a given circumstance. Payment terms agreed with a customer are as per business practice and there is
no financing component involved in the transaction price. The Company considers whether there are other
promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be
allocated.
Contract Balances
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company
performs by transferring goods or services to a customer before the customer pays consideration or before payment is due,
a contract asset is recognised for the earned consideration that is conditional.
Trade receivable
A receivable is recognised if an amount of consideration that is unconditional (i.e., only the passage of time is required
before payment of the consideration is due). Refer to accounting policies of financial assets in section (j) Financial
instruments – initial recognition and subsequent measurement.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has
received consideration (or an amount of consideration is due) from the customer. If a
customer pays consideration before the Company transfers goods or services to the customer, a
contract liability is recognised when the payment is made or the payment is due (whichever is
earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.
(ii) Export benefits
Export benefits are recognised where there is reasonable assurance that the benefit will be received and all
attached conditions will be complied with. Export benefits on account of export promotion schemes are
accrued and accounted in the period of export and are included in other operating revenue.
(iii) Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to
the principal outstanding and at the effective interest rate applicable.
(iv) Dividend income
Dividend income from investments is recognised in the year in which the right to receive the payment is established
g) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an
entity incurs in connection with the borrowing of funds.
h) Foreign currency transactions
Items included in the financial statements of Company are measured using currency of the primary
economic environment in which the Company operates (“the functional currency”). The financial statements are
presented in Indian rupees (INR), which is the functional currency of the Company.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Company in INR at spot rates at the date
the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign
currencies are translated at INR spot rates of exchange at the reporting date. Exchange differences
arising on settlement or translation of monetary items are recognised in the statement of profit and loss.
Net loss relating to translation orsettlement of borrowings denominated in foreign currency are reported within finance costs
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value is determined. The
gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose
fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).
In determining the spot exchange rate to use on initial recognition of the related asset, expense or
income (or part of it) on the derecognition of a nonmonetary asset or non-monetary liability relating to advance
consideration, the date of the transaction is the date on which the Company initially recognises the non-
monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or
receipts in advance, the Company determines the transaction date for each payment or receipt of advance consideration.
i) 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.
Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other
comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s
contractual cash flow characteristics and the Company’s business model for managing them. With the exception of trade
receivables that do not contain a significant financing component or for which the Company has applied the
practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant
financing component or for which the Company has applied the practical expedient are measured at the transaction price
determined under Ind AS 115. Refer to the accounting policies in section (f) Revenue from contracts with customers.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.
Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss,
irrespective of the business model.
The Company’s business model for managing financial assets refers to how it manages its financial
assets in order to generate cash flows. The business model determines whether cash flows will result from
collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and
measured at amortised cost are held within a business model with the objective to hold financial assets in
order to collect contractual cash flows while financial assets classified and measured at fair value through OCI
are held within a business model with the objective of both holding to collect contractual cash flows and selling.
Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the
Company commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
Debt instruments at amortised cost

Debt instruments at fair value through other comprehensive income (FVTOCI)
Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)
Equity instruments measured at fair value through other comprehensive income (FVTOCI)
A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) 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.
This category is the most relevant to the Company. 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 other income in the statement of profit and loss. The losses arising
from impairment are recognised in the profit or loss.
Debt instruments at FVTOCI
A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets,
and
b) The asset’s contractual cash flows represent SPPI
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date
at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the
Company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the
statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognised in
OCI is reclassified from the equity to statement of profit and loss. Interest earned whilst holding FVTOCI debt
instrument is reported as interest income using the EIR method.
Debts Instrument at FVTPL
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization
as at amortized cost or as FVTOCI, is classified as at FVTPL.
In addition, the Company may elect to designate a debt instrument, which otherwise meets amortized cost
or FVTOCI criteria, as at FVTPL.However, such election is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to as ‘accounting mismatch’). The Company has not
designated any debt instrument as at FVTPL. Debt instruments included within the FVTPL category are
measured at fair value with all changes recognized in the statement of profit and loss
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of profit and loss. This category includes listed equity
investments which the Company had not irrevocably elected to classify at fair value through OCI. Dividends on
listed equity investments are recognised in the statement of profit and loss when the right of payment has been
established.
Equity instruments designated at fair value through OCI
Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under
Ind AS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an
instrument-by-instrument basis. Equity instruments which are held for trading are classified as at FVTPL.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in
the statement of profit and loss when the right of payment has been established, except when the Company benefits from
such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI.
Equity instruments designated at fair value through OCI are not subject to impairment assessment.
Investment in Subsidiaries:
The Company has elected to recognize its investments in subsidiaries at cost less accumulated impairment loss, if any in
accordance with the option available in Ind AS 27, ‘Separate Financial Statements’. Cost represents amount paid for
acquisition of the said investments.
On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is charged
or credited to profit or loss. The details of such investment are given in Note 4. Refer to the accounting policies in (g)
Impairment of non-financial assets.
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 when:
• The rights to receive cash flows from the asset have expired, or
• The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or
(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has
neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of
the asset, the Company continues to recognise the transferred asset to the extent of the Company’s continuing
involvement. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company
could be required to repay. In that case, the Company also recognises an associated liability. The transferred asset and
the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.
Impairment of financial assets

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at
fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Company expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash flows
from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk
since initial recognition.
ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month
ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss
allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the
default (a lifetime ECL).
The Company considers a financial asset in default when contractual payments are 90 days past due.
However, in certain cases, the Company may also consider a financial asset to be in default when internal or external
information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking
into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows.
For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs.
Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime
ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss
experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, or as payables, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of
loans and borrowings and payables, net of directly attributable transaction costs.
The measurement of financial liabilities is as described below:
Loans and borrowings
This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
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 as finance costs in the statement of profit and loss.
De-recognition
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 and loss.
Reclassification of financial instruments
The Company determines classification of financial assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the
business model for managing those assets. Changes to the business model are expected to be infrequent. The
Company’s senior management determines change in the business model as a result of external or
internal changes which are significant to the Company’s operations. Such changes are evident to external
parties. A change in the business model occurs when the Company either begins or ceases to perform an
activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification
prospectively from the reclassification date which is the first day of the immediately next reporting period
following the change in business model. The Company does not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.
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.
j) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating officer/ chief executive officer. The chief operating officer/ chief executive officer is responsible for allocating
resources and assessing performance of the operating segments and accordingly is identified as the chief operating
decision maker.
k) Fair value measurement
The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
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. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a
liability is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:
- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
- Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable
- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.
- Disclosures for valuation methods, significant estimates and assumptions (notes 32)
- Investment in unquoted equity shares (note 4)
- Financial instruments (including those carried at amortised cost) (notes 5, 9, 10, 11, 16, 17, 17A, 33, 36)
l) Taxes
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted,
at the reporting date in India.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
- When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any
unused tax losses.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:
- When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset
or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.
The carrying amount of deferred tax ass is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised, or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in
other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.
The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable
right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same taxation authority on either the same taxable entity or different
taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and
settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are
expected to be settled or recovered.
Sales/ value added taxes paid on acquisition of assets or on incurring expenses
Expenses and assets are recognised net of the amount of sales/ value added taxes paid, except:
- When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the
tax paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable
- When receivables and payables are stated with the amount of tax included
The net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables
in the balance sheet.
m) Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined contribution scheme. The
Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes
contribution payable to the provident fund scheme as an expense, when an employee renders the related
service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the scheme is recognized as a liability after
deducting the contribution already paid. If the contribution already paid exceeds the
contribution due for services received before the balance sheet date, then excess is recognized as an asset to the
extent that the prepayment will lead to, for example, a reduction in future payment or a cash refund.
The cost of providing benefits under the defined benefit plan is determined based on actuarial valuation using the
projected unit credit method.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet
with a corresponding debit or credit to retained earnings through OCI in the period in which they occur.
Remeasurements are not reclassified to statement of profit and loss in subsequent periods.
Past service costs are recognised in statement of profit and loss on the earlier of:
- The date of the plan amendment or curtailment, and

- The date that the Company recognises related restructuring costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognises
the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:
- Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
settlements; and
- Net interest expense or income
Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employ-
ee benefit. The Company measures the expected cost of such absences as the additional amount that it expects
to pay as a result of the unused entitlement that has accumulated at the reporting date. The Company recogniz-
es expected cost of short-term employee benefit as an expense, when an employee renders the related service.
The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such compensated absences are provided for based on the
actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immediately taken to
the statement of profit and loss and are not deferred. The Company presents the leave as a current liability in the balance
sheet, as it does not have an unconditional right to defer its settlement for 12 months after the reporting date.
n) Provisions and contingent liabilities
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company
expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is
presented in the statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
A contingent liability is possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of Company or a present
obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation.A
contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be
measured reliably. The Company does not recognise the contingent liability but discloses its existence in the financial statements.
Contingent assets are neither recognized nor disclosed in the financial statements.
o) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable
to equity shareholders of the Company and the weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential equity shares.
p) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above are considered an integral part of the Company’s cash management.
q) Cash dividend to equity holders of the Company
The Company recognises a liability to make cash distributions to equity holders of the Company when the
distribution is authorised and the distribution is no longer at the discretion of the Company. Final dividends
on shares are recorded as a liability on the date of approval by the shareholders and Interim dividends are
recorded as a liability on the date of declaration by the Company's Board of Directors. A corresponding amount is
recognised directly in equity.
r) Recent accounting pronouncements:

Standards issued but not yet effective and not early adopted by the Company
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) Amendment Rules,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 standalone financial statements. The Company does not expect
this amendment to have any significant impact in its standalone financial statements.
- Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of
a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition,
accounting estimates are “monetary amounts in standalone financial statements that are subject to measurement
uncertainty”. Entities develop accounting estimates if accounting policies require items in standalone 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 standalone 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 amendmentsnarrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12
(recognition exemption) so that it no longer applies totransactions that, on initial recognition, give rise to equal taxable
and deductible temporary differences. The Company is evaluating the impact, if any,in its standalone financial statements.
207
Note 3 : Property, plant and equipment and intangible assets
Total property,
Freehold Plant and Electrical Furniture and Office Intangible
Buildings Computers Vehicles plant and Total
land machinery equipment fixtures equipment assets - software
equipment
As at April 01, 2021 467.14 417.79 1,276.12 19.07 18.49 7.46 26.36 6.79 2,239.22 33.89 2,273.11
Additions during the year - 30.71 381.11 0.09 3.34 2.24 8.37 4.80 430.66 5.74 436.40
Disposals during the year - - - - - - - - - - -

As at March 31, 2022 467.14 448.50 1,657.23 19.16 21.83 9.70 34.73 11.59 2,669.88 39.63 2,709.51
Additions during the year - 275.39 714.28 11.73 17.13 10.35 8.68 8.12 1,045.68 4.09 1,049.77
Disposals during the year - - 45.19 - - - - - 45.19 - 45.19
As at March 31, 2023 467.14 723.89 2,326.32 30.89 38.96 20.05 43.41 19.71 3,670.37 43.72 3,714.09
-
Accumulated depreciation and amortisation
As at April 01, 2021 - 59.18 460.95 16.67 14.72 5.71 17.27 3.56 578.06 24.41 602.47
Charge for the year - 16.30 113.53 0.31 1.86 0.74 4.18 1.04 137.96 5.13 143.09
Disposals for the year - - - - - - - - - - -
As at March 31, 2022 - 75.48 574.48 16.98 16.58 6.45 21.45 4.60 716.02 29.54 745.56
Corporate Overview
Disposals for the year - - 37.28 - - - - - 37.28 - 37.28
As at March 31, 2023 - 98.46 678.42 18.60 17.64 8.14 27.80 6.15 855.21 35.78 890.99
Net block -
Statutory Reports
As at March 31, 2023 467.14 625.43 1,647.90 12.29 21.32 11.91 15.61 13.56 2,815.16 7.94 2,823.10
As at March 31, 2022 467.14 373.02 1,082.75 2.18 5.25 3.25 13.28 6.99 1,953.86 10.09 1,963.95
Certain land and buildings are subject to a first charge to secure the Company’s bank loans. (refer note 17)
Financial Statements
Note 3.1: Capital work in progress

Particulars Amount
As at March 31, 2021 105.20
Add: Additions 733.89
Less: Capitalised during the year (401.09)
As at March 31, 2022 438.00
Additions (subsequent expenditure) 1,243.38
Capitalised during the year (1,049.77)
As at March 31, 2023 631.61
Capital work in progress (CWIP)
(a) Ageing schedule

March 31, 2023 March 31, 2022
Less 1-2 2-3 More Total Less 1-2 2-3 More Total
than 1 years years than 3 than 1 years years than 3
year years year years
Projects in progress 593.69 34.4 - 3.55 631.61 434.45 - - 3.55 438.00
Projects temporarily
- - - - - - - - - -
suspended
Total 593.69 34.37 - 3.55 631.61 434.45 - - 3.55 438.00
(b) There are no project for whose the completion is overdue or has exceeded its cost as compared to its original plan.
4 Investments
As at As at
March 31, 2023 March, 31 2022
Non-current investments
Unquoted equity shares
(a) In wholly owned subsidiaries (at cost)
Magnatar Aero Systems Private Limited
[99,800 (March 31, 2021: 99,800) equity shares of par value Rs. 1 each fully paid] 0.10 0.10
Gee Pee Aerospace and Defence Private Limited
[30,835 (March 31, 2022: Nil) equity shares of par value Rs. 100 each fully paid] 66.84 -
66.94 0.10
(b) Others (at fair value through profit or loss)
Samuha Engineering Industries Limited
[10,000 (March 31, 2021: 10,000) equity shares of par value Rs. 10 each fully paid] 0.10 0.10
0.10 0.10
Current investments
Quoted
(c) Mutual fund units (at fair value through profit or loss)
5,981,637.72 units (March 31, 2022: 17,527,497.45 units) of SBI savings fund - 224.74 623.30
direct plan - growth
4,999,750.01 units (March 31, 2022: Nil) of SBI fixed maturity plan - regular growth 50.00 -
274.74 -
Aggregate amount of unquoted investments - in wholly owned subsidiaries 66.94 0.10
Aggregate amount of unquoted investments - in others 0.10 0.10
5 Financial assets
(a) Loans
As at As at
March 31, 2023 March, 31 2022
Loans to subsidiaries (refer note 36) 41.67 -
41.67 -
Disclosure under section 186 (4) of the Companies Act 2013
Purpose of Rate of Secured / Maximum As at As at
Name of party
loan Interest unsecured amount March 31, 2023 March, 31 2022
Gee Pee Aerospace and Business 10% p.a Unsecured 41.67 41.67 -
Defence Private
(b) Financial assets - others

Unsecured, considered good unless stated otherwise
As at March 31, 2023 As at March, 31 2022
Non-current
Security deposits 21.33 16.16
Non-current bank balances (refer note 12) - 5.00
Interest accrued on bank deposits - 0.46
21.33 21.62
Current
Contract asset - unbilled revenue - 2.36
Security deposit - 29.82
Retention money 44.94 31.53
Interest accrued on bank deposits 4.55 2.70
Loans and advances to employees 0.64 0.92
50.13 67.33
6 Non current tax assets (net) / current tax liabilities (net)
Non-current tax asset (net)
Advance income tax (net) 5.00 5.17
Liability for current tax
Tax liability (22.06) (2.87)
(17.06) 2.30
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax
assets and current tax liabilities and related to income tax levied by same tax authority.
7 Other non-current assets

Non-current
Unsecured, considered good
Prepaid expenses 10.80 12.76
Advance for capital goods 45.51 177.89
Balances recoverable from government authorities 25.53 25.53
81.84 216.18
Unsecured, considered doubtful
Less: Provision for doubtful receivable (12.97) (12.97)
Balance at the end of the year - -
Movement in provision for doubtful receivable

Balance at the beginning of the year 12.97 12.97
Provision made during the year - -
Balance at the end of the year 12.97 12.97
8 Other current assets

Current
Advance to related parties (refer note 36) 0.27 0.24
Advance to suppliers 43.20 63.86
Export benefits receivable 0.74 27.49
382.35 209.70
9 Inventories (at lower of cost and net realisable value)

Raw materials 2,418.06 718.39
[Includes in transit: Rs. 748.04 (March 31, 2022: Rs.
252.79)]
Work-in-progress 1,441.61 984.77
3,859.67 1,703.16
Write down of inventories to net realisable value amounted to Rs. 15.84 (March 31, 2021: Rs. 15.84). These were
recognised as an expense during the year and included in ‘cost of materials consumed and changes in inventories of
work-in-progress’
10 Trade receivables

Current
Unsecured considered good 2,081.16 1,359.84
2,081.16 1,359.84
No trade or other receivable are due from directors or other officers of the Company either severally or jointly with
any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any
director is a partner, a director or a member.
The Company considers that there has been a significant increase in credit risk when contractual payments are more
than 30 days past due.
Trade receivables ageing schedule

As at March 31, 2023
Outstanding for following periods from due date of payment

Less than More
6 months
Not due 6 1-2 years 2-3 years than 3 Total
– 1 year
months years
Unsecured considered good 1,936.92 108.17 25.80 9.14 1.13 - 2,081.16
Trade receivables - credit - - - - - - -
impaired
Total 1,936.92 108.17 25.80 9.14 1.13 - 2,081.16

Less than More
6 months
– 1 year
months years
Unsecured considered good 1,177.51 175.72 3.08 3.53 - - 1,359.84
impaired
Total 1,177.51 175.72 3.08 3.53 - - 1,359.84
11 Cash and cash equivalents

Balances with banks
On current accounts 122.11 4.44
On Monitoring agency account - 8.04
Deposits with monitoring agency for amount received - 432.31
for IPO and Pre-IPO with original maturity of less than 3
months
Deposits with original maturity less than 3 months - 150.55
122.29 595.47
12 Balances at bank other than cash and cash equivalents

Margin money deposits*
Deposits with original maturity for more than three 187.52 73.77
months but remaining maturity of less than twelve
months
Deposits with remaining maturity of more than twelve - 5.00
months
Less: Amount clubbed under 'non-current financial as- - (5.00)
sets - others' (refer note 5)
187.52 73.77
* Margin money deposits represent security held by bank for the bank guarantees of Rs. 1,128.47 (March 31, 2022:
Rs. 810.17) issued by the bankers on behalf of the Company.
Breakup of financial assets carried at fair value through profit or loss:

Carrying Fair value Carrying Fair value
value value
Investment in units of mutual funds (quoted) 274.74 274.74 623.30 623.30
Investments in unquoted equity shares (others) 0.10 0.10 0.10 0.10
Total financial assets carried at fair value through profit 274.84 274.84 623.40 623.40
or loss
Breakup of financial assets carried at amortised cost:

value value
Trade receivables 2,081.16 2,081.16 1,359.84 1,359.84
Cash and cash equivalent 122.29 122.29 595.47 595.47
Balances at bank other than cash and cash equivalents 187.52 187.52 73.77 73.77
Retention money 44.94 44.94 31.53 31.53
Loan to related parties 41.67 41.67 - -
Security deposits 21.33 21.33 45.98 45.98
Non-current bank balances - - 5.00 5.00
Contract asset - unbilled revenue - - 2.36 2.36
Interest accrued 4.55 4.55 3.16 3.16
Loans and advances to employees 0.64 0.64 0.92 0.92
Total financial assets carried at amortised cost 2,504.10 2,504.10 2,118.03 2,118.03
The management assessed that cash and cash equivalents and trade receivables approximate their carrying amounts largely
due to the short-term maturities of these instruments. The fair value of the financial assets is included at the amount at which
the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
For financial assets that are measured at fair value, the carrying amounts are equal to the fair values. The fair values
of the financial assets included above have been determined in accordance with generally accepted pricing models.
13. Equity share capital

Number of Amount Number of Amount
shares shares
Authorised share capital
Equity shares of Rs. 10 each 66,000,000 660.00 66,000,000 660.00
Issued, subscribed and fully paid up shares
(a) Reconciliation of equity shares outstanding at beginning and at end of the year:

shares shares
At the beginning of the year 30,759,591 307.59 30,759,591 307.59
Issued during the year - - - -
At the end of the year 30,759,591 307.59 30,759,591 307.59
(b) Rights, preferences and restrictions attached to shares
The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote
per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
(c) Details of shareholders holding more than 5% equity shares in the Company

Name of the shareholder Number of % Number of %
shares shares
(ii) Vamshidhar Reddy Kallem 2,091,559 6.80% 2,091,559 6.80%
(iii) K. Shalini 2,091,483 6.80% 2,091,483 6.80%
(iv) Leelavathi Parvatha Reddy 1,618,712 5.26% 1,618,712 5.26%
As per records of the Company, including its register of shareholders/members, the above shareholding represents both
legal and beneficial ownership of shares.
(d) Aggregate number of equity shares issued as bonus, shares issued for consideration other than cash and shares
bought back during the period of five years immediately preceding the reporting date:
(i) There are no equity shares issued as bonus and shares issued for consideration other than cash during the period of
five years immediately preceding the reporting date
(ii) During the year ended March 31, 2020, the Company has bought back 1,454,541 equity shares of Rs. 10 each.
(e) Details of shares held by promoters

Equity shares of Rs. 10 each fully paid
No. of shares No. of shares
% change
at the Change during at % of total
Promoter name during
beginning of the year the end of the shares
the year
the year year
K Vamshidhar Reddy 2,091,559 - 2,091,559 6.80% 0.00%
K Shalini 2,091,483 - 2,091,483 6.80% 0.00%
Leelavathi Parvatha Reddy 1,618,712 - 1,618,712 5.26% 0.00%
P Srinivas Reddy 1,392,903 - 1,392,903 4.53% 0.00%
D Anitha Reddy 1,480,431 (200,000) 1,280,431 4.16% -0.65%
Usha Reddy Chigarapalli 1,405,445 (200,000) 1,205,445 3.92% -0.65%
P Kalpana Reddy 1,025,000 - 1,025,000 3.33% 0.00%
Kavitha Reddy Gangapatnam 1,305,446 (3,10,000) 9,95,446 3.24% -1.01%
Saranya Loka Reddy 1,034,265 (1,09,599) 9,24,666 3.01% -0.36%
Mitta Madhavi 7,76,321 (5,000) 7,71,321 2.51% -0.02%
A Manogna 7,43,813 (1,00,000) 6,43,813 2.09% -0.33%
Anushman Reddy 2,68,128 - 2,68,128 0.87% 0.00%
Northeast Broking Services Limited 2,25,000 (190,000) 35,000 0.11% -0.62%
Total 1,54,58,506 (11,14,599) 1,43,43,907 46.63% -3.62%

No. of shares at No. of shares at % change

Change during % of total
Promoter name the beginning the end of the during
the year shares
of the year year the year

K Shalini 2,091,483 - 2,091,483 6.80% 0.00%
Leelavathi Parvatha Reddy 1,718,712 (100,000) 1,618,712 5.26% -0.33%
D Anitha Reddy 1,079,047 4,01,384 1,480,431 4.81% 1.30%
Usha Reddy Chigarapalli 1,004,062 4,01,383 1,405,445 4.57% 1.30%
P Srinivas Reddy 1,392,903 - 1,392,903 4.53% 0.00%
Kavitha Reddy Gangapatnam 9,04,063 4,01,383 1,305,446 4.24% 1.30%
Saranya Loka Reddy 9,34,265 1,00,000 1,034,265 3.36% 0.33%
P Kalpana Reddy 1,025,000 - 1,025,000 3.33% 0.00%
Mitta Madhavi 7,76,321 - 7,76,321 2.52% 0.00%
A Manogna 7,43,813 - 7,43,813 2.42% 0.00%
Anushman Reddy 2,67,598 530 2,68,128 0.87% 0.00%
Northeast Broking Services Limited 2,25,000 - 2,25,000 0.73% 0.00%
P Jayaprakash Reddy 70 (70) - 0.00% 0.00%
Girija Reddy Parvatha 1,204,080 (1,204,080) - 0.00% -3.91%
Total 1,54,57,976 530 1,54,58,506 50.26% 0.00%
14. Other Equity
Securities premium
Balance at the beginning of the year 3,199.56 3,199.56
Balance at the end of the year 3,199.56 3,199.56
Capital redemption reserve

Retained earnings
Add: Other comprehensive income / (loss) for the year (30.27) 5.82
Add: Profit for the year 1,040.75 608.81
Less: Appropriations
Final dividend - Nil (March 31, 2022: Rs. 3 per share) - (92.28)
Interim dividend - Nil (March 31, 2022: Rs. 3 per share) - (92.28)
5,900.53 4,890.05
Nature and purpose of reserves

Security premium represents the amount received in excess of par value of equity shares. Section 52 of
Companies Act, 2013 specifies regulation around application of premiums received on issue of shares. Accordingly, the
Company has applied securities premium to write off Company’s share of expenses incurred on fresh issue of equity
shares.
Capital redemption reserve represents the amount of profits transferred from securities premium for the buy back of
equity shares. The reserve can be utilised only for limited purposes in accordance with the provisions of the
Companies Act, 2013
Retained earnings are the profits that the Company has earned till date, less dividends or other distributions paid to
shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans, net of taxes that will not
be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available to the Company and eligible for
distribution to shareholders.
15. Provisions
Non-current
Provision for employee benefits
- Gratuity (refer note 30) 13.95 4.24
- Compensated absences 11.98 -
Other provisions 30,32 -
56.25 4.24
Current
- Compensated absences 3.65 11.58
18.54 30.37
16. Deferred tax liabilities (net)

Deferred tax liability arising on account of timing
differences relating to:
Written down value difference of property, plant and 187.87 176.76
equipment and intangible assets between tax and
financial books
187.87 176.76
Deferred tax asset arising on account of timing
Expenses allowed on payment basis 7.77 13.93
7.77 13.93
Deferred tax liability (net) 180.10 162.83
The Company offsets deferred tax assets and liabilities if and only if it has a legally enforceable right to set off
current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to
income taxes levied by the same taxation authority.
Break up of deferred tax (asset) / liabilities
Recognised in the Recognised

Opening Closing
statement of profit in
balance balance
and loss OCI
For the year ended March 31, 2023:
Written down value difference of property, 176.76 11.11 - 187.87
plant and equipment and intangible assets
between tax and financial books
Expenses allowed on payment basis (13.93) 16.34 (10.18) (7.77)
162.83 27.45 (10.18) 180.10
Written down value difference of property, 199.56 (22.80) - 176.76
plant and equipment and intangible assets
between tax and financial books
Expenses allowed on payment basis (14.30) (2.02) 2.39 (13.93)
MAT credit entitlement (58.33) 58.33 - -
126.93 33.51 2.39 162.83
17. Borrowings

Non-current
Secured bank borrowings
Long-term borrowings 777.23 259.47
Current maturity of long-term borrowings 273.59 227.78
1,050.82 487.25
Less: Amount disclosed under “short-term borrowings” (273.59) (227.78)
777.23 259.47
Current
Cash credit 377.08 235.92
Export packing credit (USD) 0.03 235.76
650.70 699.46
Aggregate secured borrowings 1,427.93 958.93
Aggregate unsecured borrowings - -
1. The long-term borrowings including current maturities of Rs. 1,050.82 (March 31, 2022: Rs. 487.25) from banks is
secured by collateral security against inventories, trade receivables and all other charges on current assets of the
present and future current assets of the Company. The Company has not fully drawn the loan facility as at March 31, 2023.
(i) State Bank of India

- Exclusive charge on the entire property, plant and equipment purchased out of the loan facility.
(ii) HDFC Bank Limited

(iii) EXIM Bank

Balance number of
Outstanding balance as at Interest Repayments
installments as Frequency of
(` in mn) range commencing
Particulars at installments
% per from - to
annum March 31, March 31,
March 31, 2023 March 31, 2022
2023 2022
State Bank of India 106.76 159.60 7.95 to 12 16 Quarterly March 31, 2021 to
9.40 March 31, 2026
HDFC Bank 619.78 327.65 7.50 to 42 54 Monthly April 01, 2022 to
Limited 9.20 October 31, 2026
EXIM Bank 324.28 - 7.50 16 - Quarterly September 01, 2023
to August 31, 2027
2. Cash credit and export packing credit facility (USD) aggregating to Rs. 377.11 (March 31, 2022 : Rs. 471.68) is secured
against inventories, trade receivables, and all other charges on current assets of the present and future current assets of
the Company. Further the borrowing is secured by collateral security on the certain land and building of the Company.
The cash credit facility is repayable on demand and carries interest @ 5.50% to 8.40% p.a. (March 31, 2022 : 7.90% to 8.85% p.a.).
The export packing credit in USD carries interest @ 2.53% to 5.50% p.a. (March 31, 2022: 1.59% to 2.34% p.a.).
17A Other Financial Liabilities

Payable for capital goods 70.18 24.27
70.18 24.27
18 Trade Payable

- dues of micro and small enterprises 119.13 7.20
- dues of creditors other than micro and small enterprises 563.20 563.20
2,180.69 570.40
Trade payables ageing schedule

Less than More than
Unbilled 1-2 years 2-3 years Total
1 year 3 years
Total outstanding dues of MSME - 119.13 - - - 119.13
Total outstanding dues of 913.38 1,143.40 4.43 0.35 - 2,061.56
creditors other than MSME
Disputed dues of MSME - - - - - -
Disputed dues of creditors other - - - - - -
than MSME
913.38 1,262.53 4.43 0.35 - 2,180.69

Less than More than
1 year 3 years
Total outstanding dues of 338.13 220.60 4.47 - - 563.20
Disputed dues of MSME - - - - -
Disputed dues of creditors other than - - - - -
MSME
338.13 227.80 4.47 - - 570.40
Disclosure pertaining to Micro, Small And Medium Enterprises Act (as per information available with the Company)

The principal amount and the interest due thereon remaining
unpaid to any supplier as at the end of each accounting year
Principal amount remaining unpaid 119.13 7.20
Interest due thereon - -
119.13 7.20
The amount of interest paid by the buyer in terms of section 16
of the MSMED Act 2006 along with the amounts of the payment
- -
made to the supplier beyond the appointed day during each
accounting year
The amount of interest due and payable for the period of delay
in making payment (which have been paid but beyond the
- -
appointed day during the year) but without adding the interest
specified under the MSMED Act 2006
The amount of interest accrued and remaining unpaid at the
end of each accounting year - -
The amount of further interest remaining due and payable even

in the succeeding years, until such date when the interest dues
as above are actually paid to the small enterprise for the - -
purpose of disallowance as a deductible expenditure under
section 23 of the MSMED Act 2006
Breakup of financial liabilities carried at amortised cost:

value value
Borrowings - long-term including current maturities 1,050.82 1,050.82 487.25 487.25
Borrowings - short-term 377.11 377.11 471.68 471.68
Payable for capital goods 70.18 70.18 24.27 24.27
Trade payables 2,180.69 2,180.69 570.40 570.40
3,678.80 3,678.80 1553.60 1553.60
The management assessed that trade payables, short-term borrowings and other financial liabilities approximate their
carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial liabilities
included above is at the amount at which the instrument could be exchanged in a current transaction between willing
parties, other than in a forced or liquidation sale.
19. Other Liabilities
As at March, 31 2023 As at March, 31 2022

Current
Statutory remittances 17.39 13.54
Contract liability - advance from customers 446.61 311.02
Others 1.58 1.58
465.58 326.14
20. Revenue from Operations
For the year ended For the year ended

March 31, 2023 March 31, 2022
(A) Revenue from contracts with customers
Sale of products 5,629.53 3,159.28
5,629.53 3,159.28
(B) Other operating revenue
- Others 103.94 60.78
103.94 60.78
Total (A+B) 5,733.47 3,220.06
(i) Disaggregated revenue information
Set out below is the disaggregation of the Company's revenue from contracts with customers:

March 31, 2023 March 31, 2022
India 1,123.25 1,177.44
Outside India 4,506.28 1,981.84
5,629.53 3,159.28
Timing of revenue recognition
Goods transferred at a point of time 5,629.53 3,159.28
Total 5,629.53 3,159.28
(ii) Contract balances

Trade receivable 2,081.16 1359.84
Contract asset
Unbilled revenue - 2.36
Advance from customer 446.61 311.02
The performance obligation is satisfied when control of the goods are transferred to the customers based on the
contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.
Trade receivables and retention money are non-interest bearing. Refer note 10 for details on expected credit loss.
Unbilled revenue are initially recognised for revenue earned from transfer of goods and services but not billed to customer
because the work completed has to meet requirements of various milestones as set out in the contract with customers.
Upon fulfilling the milestones and acceptance by the customer, the amounts recognised as contract assets are reclassified
to trade receivables.
Advance from customers pertain to balance received as advance from various parties as certain percentage of the order
value. The same will be adjusted against the order on the basis of delivery and collection of receivables.
There is no difference in the contract price negotiated and the revenue recognised in the statement of profit and loss. There
is no significant revenue recognised in the current year from performance obligations satisfied in previous years.
(iii) Amounts included in contract liabilities at the beginning of the period recognised as revenue in the current period of
Rs. 185.59 (March 31, 2022: Rs. 347.76). Generally the advance from customers are settled over a period of 1 to 3 years.
21. Other Income

March 31, 2023 March 31, 2022
Foreign exchange gain (net) 144.96 28.57
Interest on bank deposits 16.49 34.23
Liabilities no longer required written back - 2.72
Unrealised MTM gain from mutual funds 27.94 19.64
Miscellaneous income 7.63 2.37
197.02 87.53
* Includes unrealised gain/(loss) Rs. (10.35) [March 31, 2022: Rs. 14.89]
22. Cost of materials consumed

March 31, 2023 March 31, 2022
Inventory at the beginning of the year 718.39 452.21
Add: Purchases 4,846.90 1840.23
Less: Inventory at the end of the year (2,418.06) (718.39)
3,147.23 1574.05
23. Changes in inventories of work-in-progress

March 31, 2023 March 31, 2022
(456.84) (411.54)
24. Employee Benefit Expenses

March 31, 2023 March 31, 2022
Salaries, wages and bonus 858.33 657.39
Contribution to provident and other funds [refer note 30 (II)] 31.43 27.13
Gratuity expense [refer note 30 (I)] 12.74 9.50
Staff welfare expenses 21.13 13.75
923.63 707.77
25. Finance costs

March 31, 2023 March 31, 2022
Interest expenses
- Short term borrowings 46.45 9.65
- Long term borrowings 66.78 22.44
- Others 2.04 0.46
Bank charges 29.75 33.94
145.02 66.49
26. Depreciation and amortisation expenses
For the year For the year

ended ended
March 31, 2023 March 31, 2022
Depreciation on property, plant and equipment 176.47 137.97
Amortisation on intangible assets 6.24 5.13
182.71 143.10
27. Other Expenses

March 31, 2023 March 31, 2022
Sub-contractor charges 85.93 80.14
Production expenses 125.18 67.85
Power and fuel 130.25 89.48
Material testing charges 5.37 4.11
Repairs and maintenance
- Buildings 25.55 17.82
- Plant and machinery 36.02 23.37
- Others 4.41 5.20
Insurance 8.40 7.79
Rates and taxes 14.47 11.09
Communication 2.50 1.99
Travelling and conveyance 21.52 14.55
Printing and stationary 1.77 1.20
Freight and forwarding 19.05 2.90
Business Promotion 4.40 2.73
Legal and professional charges 36.93 34.24
Security Charges 8.52 9.37
Payment to auditors (refer below) 5.08 3.50
Loss on sale of property plant and equipment 1.81 -
CSR expenses (refer note 31) 11.70 9.65
Miscellaneous expenses 30.97 18.47
579.83 405.45
Payment to auditors

March 31, 2023 March 31, 2022
Statutory audit 4.75 3.50
Other services 0.33 -
5.08 3.50
28. Tax expense
a) Income tax expense:
The major components of income tax expense
(i) Profit or loss section

March 31, 2023 March 31, 2022
A. Current tax 340.71 179.95
B. Deferred tax
Tax expense on origination and reversal of temporary difference 27.45 (24.82)
MAT credit utilisation - 58.33
Income tax expense recognised in the statement of profit and loss 368.16 213.46
(ii) OCI Section

March 31, 2023 March 31, 2022
Income tax expense to OCI 10.18 (2.39)
b) Reconciliation of effective tax rate:

March 31, 2023 March 31, 2022
Profit before tax (A) 1,408.91 822.27
Enacted tax rate in India (B) 25.17% 29.12%
Expected tax expenses (C = A*B) 354.59 239.45
Tax effect of
Adjustments for taxes with respect of earlier period 10.11 -
Expenses disallowed under Income Tax Act, 1961 3.21 1.78
Impact of change in tax rate for future period - (25.57)
Others 0.25 (2.20)
Total (D) 13.57 (25.99)
Expected tax expenses (C+D) 368.16 213.46
Income tax expenses 368.16 213.46
Effective tax rate 26.13% 25.96%
29. Earnings per share (EPS)
The following reflects the income and share data used in the basic and diluted EPS computations:

March 31, 2023 March 31, 2022
Profit attributable to equity share holders 1,040.75 608.81
Weighted average number of equity shares in calculating
3,07,59,591 3,07,59,591
basic and diluted EPS
Face value of each equity share (Rs.) 10.00 10.00
Basic and diluted earnings per share 33.83 19.79
30. Employment benefit plans
I. Defined benefits plan
The Employees’ Gratuity Fund Scheme managed by a trust is a defined benefit gratuity plan which is administered through
gratuity scheme with Life Insurance Corporation of India. Every employee who has completed five years or more of
service gets gratuity, on retirement/termination, at 15 days last drawn salary for each completed year of service
subject to a maximum of Rs. 2.00. The following tables summarise the components of net benefit expense recognised in
the statement of profit and loss and the funded status and amounts recognised in the balance sheet for gratuity benefit.
A) Net employee benefit expense (recognised in employee benefits expense)

March 31, 2023 March 31, 2022
Current service cost 12.67 8.42
Interest cost on defined benefit obligation 10.73 9.80
Interest (income) on plan assets (10.66) (8.73)
Net employee benefit expenses 12.74 9.49
B) Amount recognised in the statement of other comprehensive income (OCI)

March 31, 2023 March 31, 2022
Remeasurements - due to experience adjustments 11.40 1.68
Return on plan assets (0.77) (0.42)
Remeasurements - due to financial assumptions 24.52 (4.39)
36.69 (2.29)
C) Amount recognised in the balance sheet

March 31, 2023 March 31, 2022
Defined benefit obligation 198.03 153.30
Fair value of plan assets 169.19 130.71
Net defined benefit liability 28.84 22.59
D) Changes in the present value of the defined benefit obligation

March 31, 2023 March 31, 2022
Opening defined benefit obligation 153.30 146.84
Interest cost 10.73 9.80
Net actuarial (losses) / gains on obligations recognised under OCI 35.92 (2.71)
Benefit payments from plan assets (14.59) (9.05)
198.03 153.30
E) Changes in the fair value of plan assets

March 31, 2023 March 31, 2022
Opening fair value of plan assets 130.65 131.02
Interest income 10.66 8.73
Remeasurements - return on assets (0.77) (0.42)
Contributions by employer 43.24 0.43
Closing fair value of plan assets 169.19 130.71
Expected contribution to the gratuity fund during the next year would be Rs. 28.85 (March 31, 2022: Rs. 22.64)
Investment details of plan assets

Investment with insurer - Assets under Schemes of Insurance 100.00% 100.00%
(i) The principal assumptions used in determining gratuity obligation

March 31, 2023 March 31, 2022
Discount rate 7.52% 7.35%
Rate of increase in compensation 7.00% 5.00%
Employee attrition rate 5.00% 5.00%
Mortality rate Indian assured life mor- Indian assured life
tality (2012-14) mortality (2012-14)
(ii) Disclosure related to indication of effect of the defined benefit plan on the Company's future cash flow

March 31, 2023 March 31, 2022
1 year 15.03 18.30
2-5 years 91.41 70.49
6-10 years 99.83 78.91
(iii) Sensitivity analysis:
A quantitative sensitivity analysis for significant assumption is as shown below:

March 31, 2023 March 31, 2022
(a) Effect of 1% change in assumed discount rate
- 1% increase (12.81) (8.24)
- 1% decrease 14.56 10.44
(b) Effect of 1% change in rate of increase in compensation

- 1% increase 15.47 11.65
- 1% decrease (13.87) (9.18)
(c) Effect of 1% change in assumed attrition rate

- 1 % increase 0.29 1.24
- 1 % decrease (0.34) (1.37)
II. Defined contribution plans
The Company made provident fund and other funds contributions to defined contribution plans for qualifying
employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the
benefits. The Company recognised Rs. 31.43 (March 31, 2022: Rs. 27.32) for provident fund contributions in the statement
of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
31. Detail of CSR expenditure

March 31, 2023 March 31, 2022
(a) Gross amount required to be spent by the Company
11.70 9.65
during the year
(b) Amount approved by the Board to be spent during the
11.70 9.65
year
(c) Amount spent during the year (in cash)
i) Construction /acquisition of any asset - -
ii) On purposes other than (i) above 11.70 9.65
- -
(d) Details of ongoing project and other than ongoing project
Opening balance Amount Amount spent during the Closing balance

required to year
With In separate be spent With In separate With In sepa-
Company CSR during the Company CSR Company rate CSR
unspent A/c year unspent A/c unspent
A/c
March 31, 2023
Ongoing project - - - - - - -
Other than - - 11.70 11.70 - - -
ongoing project
March 31, 2022
Other than - - 9.65 9.65 - - -
ongoing project
32. Commitments and contingencies
a. Commitments
Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for:
Rs. 549.16 (March 31, 2022: Rs. 659.16).
b. Contingent liabilities
Claims against the Company not acknowledged as debts (excluding interest arrears) is amounting to Rs. 22.67 for March
31, 2022 (March 31, 2022: Rs. 22.67)
33. Significant accounting judgements, estimates and assumptions
The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires
management to make judgements, estimates and assumptions that affect the reported balances of revenues, expenses, as-
sets and liabilities and the acCompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets
or liabilities affected in future periods. There are no significant areas involving a high degree of judgement or complexity.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next period, are described below. The Group based its assumptions and estimates on
parameters available when the financial statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising that are beyond the control of the
Company. Such changes are reflected in the assumptions when they occur.
i. Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments
in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the
discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the
interest rates of government bonds.
The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval
in response to demographic changes. Rate of increase in compensation are based on expected future inflation. Further
details about gratuity obligations are given in note 30.
ii. Depreciation of property, plant and equipment and amortization of Intangible assets
Depreciation of property, plant and equipment and amortization of intangible assets is calculated on a straight-line basis
using the rates arrived at based on the useful lives and residual values as estimated by the management. The management
believes that depreciation and amortization rates currently used fairly reflect its estimate of the useful lives and residual
values of property, plant and equipment and intangible assets.
34. Financial risk management objectives and policies
The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose
of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade
receivables, other financial assets, cash and cash equivalent and balance at bank other than cash and cash equivalent.
The Company is exposed to credit risk, market risk and liquidity risk. The Company has a risk management policy and its
management is supported by a risk management committee that advices on risk and appropriate financial risk governance
framework for the Company. The risk management committee provides assurance to the Company’s management that the
risk activities are governed by appropriate policies and procedures and that risks are identified, measured and managed in
accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for
managing each of these risks.
A. Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities
(primarily trade receivables), cash and cash equivalent, balance at bank other than cash and cash equivalent
and other financial assets. The Company deals with parties which has good credit rating /worthiness given by
external rating agencies or based on Company's internal assessment. The major customers are usually the Government
parties and export customers with high credit worthiness.
Exposure to credit risk
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer
and the carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk was (i) Rs. 2,126.10 (March 31, 2022: Rs. 1,393.73) being the total of the carrying amount of
balances with trade receivables (including retention money and unbilled revenue) (ii) cash and cash equivalent (exclud-
ing cash on hand), balance at bank other than cash and cash equivalent, non-current bank balances and interest ac-
crued of Rs. 314.18 (March 31, 2022: Rs. 677.27) and (iii) other financial assets of Rs. 21.97 (March 31, 2022: Rs. 46.90).
The measurement of impaired credit for carrying amount of the above financial assets is ascertained using the
expected credit loss model (ECL) approach. Credit risk is managed through continuously monitoring the creditworthiness of
customers. The Company is considerate of the fact the majority of the collection is receivable from export customers with
high credit worthiness or the government companies where there are no significant risk of bad debts. The customers of the
Company have a defined period for payment of receivables, hence the Company evaluates the concentration of risk with
respect to trade receivables as low. The total amount receivable from top 2 customers is Rs. 1,829.43 for March 31, 2022
(March 31, 2022: Rs. 999.57).
The cash and cash equivalent (excluding cash on hand), balance at bank other than cash and cash equivalent, non-current
bank balances and interest accrued of Rs. 314.18 (March 31, 2022: Rs. 677.27) are held with banks having good credit rating
B. Liquidity risk
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use
of bank deposits and loans.
The table below summarises the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments (including interest payments):
Within 1 year 1 to 5 years After 5 years Total

March 31, 2023
Borrowings 650.70 777.23 - 1,427.93
Trade payables 2,180.69 - - 2,180.69
Other financial liability 70.18 - - 70.18
2,901.57 777.23 - 3,678.80
March 31, 2022
Borrowings 699.46 259.47 - 958.93
Trade payables 570.40 - - 570.40
1,294.13 259.47 - 1,553.60
The cash credit facility amounting to Rs. 377.11 (March 31, 2022: Rs. 471.68), repayable on demand, has been disclosed as
within 1 year for the purpose of disclosure of liquidity risk of the Company.
C. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. The sensitivity analysis
has been included in the below disclosures.
Foreign currency exchange rate risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss.
The risks primarily relate to fluctuations in US Dollar (USD) as against the functional currency of the Company. The
Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
a. The year end unhedged foreign currency exposures is as under:

Amount in
Currency Exchange rate Amount in Rs.
foreign currency
Trade receivables
March 31, 2023 USD 21.52 82.22 1,769.32
March 31, 2022 USD 13.30 75.81 1,007.89
Cash and cash equivalents

March 31, 2023 USD 0.00 82.22 0.03
March 31, 2022 USD 0.03 75.81 2.59
Export packing credit

March 31, 2023 USD 0.00 82.22 0.03
March 31, 2022 USD 3.11 75.81 235.76
Trade payables
March 31, 2023 USD 20.23 82.22 1,663.27
March 31, 2023 GBP 0.06 101.87 5.92
March 31, 2023 EURO 0.19 89.61 17.21
March 31, 2022 USD 4.92 75.81 372.83
March 31, 2022 GBP 0.15 99.55 14.67
March 31, 2022 EURO 0.06 84.66 5.08
b. Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates with all other
variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary
assets and liabilities.
Change in USD exchange rate Effect on profit before tax
Increase Decrease Increase Decrease
March 31, 2023 1% 1% 0.83 (0.83)
March 31, 2022 1% 1% 3.82 (3.82)
Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company is exposed to interest rate risk because certain funds are borrowed at floating interest
rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings
of the Company are principally denominated in rupees and US dollars with a mix of fixed and floating rates of interest. The
Company has exposure to interest rate risk, arising principally on changes in base lending rate and LIBOR rates. The risk is
managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.
If interest rates had been 100 basis points (1%) higher / lower and all other variables were held constant, the Company’s
profit for the year end ended March 31, 2023 would decrease / increase by Rs. 14.28 (March 31, 2022: Rs. 9.59).
35. Capital management
For the purpose of the Company’s capital management, capital includes issued equity capital and other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to
maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a
gearing ratio, which is net debt divided by total capital plus net debt. The Company’s policy is to keep the gearing ratio to an
acceptable level. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents
excluding balance with monitoring agency account. In order to achieve this overall objective, the Company’s capital
management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing
borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit
the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any
interest-bearing borrowing in the current year.

March 31, 2023 March 31, 2022
Borrowings 1,427.93 958.93
Less: Cash and cash equivalents excluding balance with
(122.29) (155.12)
monitoring agency account
Net debt (A) 1,305.64 803.81
Equity (B) 6,208.12 5,197.64

Equity and net debt (C) = (A) + (B) 7,513.76 6,001.45
Gearing ratio (A) / (C) 17.38% 13.39%
36. Related party disclosures
Names of related parties and description of relationship
(a) Subsidiaries Company
Magnatar Aero Systems Private Limited

Gee Pee Aerospace & Defence Private Limited (w.e.f. June 02, 2022)
(b) Key managerial personnel
Parvat Srinivas Reddy, Managing Director

Mathew Cyriac, Director (Director upto May 10, 2022)
Venkatasatishkumar Reddy Gangapatnam, Director
A. Praveen Kumar Reddy, Director
Sudipto Bhattacharya, Chief financial officer (From September 01, 2020 to November 01, 2021)
M. Anushman Reddy, Director (appointed w.e.f. August 9, 2022)
Gunneswara Rao Pusarla, Chief financial officer (w.e.f. November 08, 2021)
Shubham Sunil Bagadia, Company secretary
(c) Relatives of key management personnel

• A. Pranay Kumar Reddy
• K. Shalini
(d) Independent / Non-Executive Directors appointed on December 05, 2020

• Padmashri Nagarajan Vedachalam (Up to February 02, 2023)
• B V R Subbu
• A. Krishna Kumar
• Ameeta Chatterjee
• U C Muktibodh
• V.G. Sekaran
Transactions and balances with related parties

Particulars
ended March 31, 2023 ended March 31, 2022
A. Transactions with related parties
Remuneration*
M. Anushman Reddy 5.57 -
Parvat Srinivas Reddy 33.60 24.00
A. Praveen Kumar Reddy 3.51 -
A. Pranay Kumar Reddy 0.60 0.64
Shubham Sunil Bagadia 1.16 0.79
Sudipto Bhattacharya - 4.43
Gunneshwara Rao Pusarla 16.80 -
Sitting fees/Commission
Venkatasatishkumar Reddy Gangapatnam 0.52 0.54
A. Praveen Kumar Reddy 0.09 0.38
Mathew Cyriac 0.08 0.70
Padmashri Nagarajan Vedachalam 2.06 0.58
B V R Subbu 2.54 0.62
A. Krishna Kumar 2.67 0.74
Ameeta Chatterjee 2.47 0.74
U C Muktibodh 2.12 0.46
V.G. Sekaran 2.26 0.58
Rent expense
K. Shalini 0.73 -
Reimbursable expenditure incurred
Magnatar Aero Systems Private Limited 0.08 0.08
Purchase Transaction- Job work
Gee Pee Aerospace and Defence Private Limited 19.98 -

Particulars
Balances receivable
Magnatar Aero Systems Private Limited (reimbursable advance) 0.27 0.24
Balances payable
Long term loan
*As the future liability for gratuity and leave encashment is provided on actuarial basis for the Company as a whole, the
amount pertaining to the individuals is not ascertainable, therefore not included above.
37. Fair values
There are no significant financial assets and liabilities measured at fair value through profit or loss except for Investment
in units of mutual fund [refer note 4(c)] which has been valued using Level 1 valuation method as described in note 2(i).
The fair value of the financial assets and liabilities measured at amortised cost approximates their carrying amounts as
at the balance sheet date. (refer breakup of financial assets carried at fair value through profit or loss and breakup of
financial liabilities carried at amortised cost).
38. Segment Reporting
The chief operating officer / chief executive officer of the Company takes decision in respect of allocation of resources
and assesses the performance basis the report / information provided by functional heads and are thus considered to be
Chief Operating Decision Maker.
Based on the Company's business model, manufacturing high precision and heavy equipment, components,
machines have been considered as a single business segment for the purpose of making decision on allocation of
resources and assessing its performance. Accordingly, there are no separate reportable segments in accordance
with the requirements of Ind AS 108 ‘Operating segment’ and hence, there are no additional disclosures to be
provided other than those already provided in the financial statements. The information relating to revenue from
external customers and location of non-current assets of its single reportable segment has been disclosed as below.
The geographic information analyses the Company's revenues and non-current assets by the country of domicile and other
countries. In presenting geographic information, segment revenue has been based on the location of the customer and
segment assets are based on geographical location of the assets.
(a) Revenue from contracts with customers

India 1,123.25 1,177.44
Outside India 4,506.28 1,981.84
Total 5,629.53 3,159.28
(b) The Company has entire non-current assets within India. Hence, separate figures have not been furnished.
(c) Customer contributing more than 10% of revenue
No of customers Amount
For the year ended March 31, 2023 1 4,387.17
39. Issue of shares
Issue of shares via Initial Public Offering (IPO)
The Company, in the year 2021-22 has completed the Initial Public Offering (IPO) of 10,372,419 Equity Shares
of Face Value of Rs. 10 each for cash at a price of Rs. 575 per Equity Share aggregating to Rs. 5,964.14 million
comprising a Fresh Issue of 2,148,149 Equity Shares aggregating to Rs. 1,235.19 million and on Offer for sale of 8,224,270
Equity Shares aggregating to Rs. 4,728.95 million. Pursuant to the IPO, the Equity Shares of the Company got listed on
National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on March 15, 2021. Further, the Company has made
allotment through preferential basis by making a pre-IPO placement of 1,851,851 Equity Shares Face Value of Rs. 10 each
for cash at a price of Rs. 540 per Equity Share aggregating to Rs. 999.99. The amount received from IPO and Pre-IPO was
kept in a separate account with the monitoring agency. The details of utilisation of IPO and Pre-IPO placement are as follows:
March 31, 2023

Un-utilised
Utilised upto the
Amount upto the end
end of the year
of the year
Repayment / prepayment in full or in part of borrowings availed by
the 630.00 630.00 -
Company
Funding for working capital requirements 950.00 950.00 -
General corporate purposes 549.23 549.23 -
Total utilised / un-utilised funds 2,129.23 2,129.23 -
40. Ratio analysis and its elements
Reason for variance (above

Ratio Numerator Denominator March 31, 2023 March 31, 2022 % Change
25%)
(i) Current Ratio Decrease in current ratio is due
6,958 3,408 2.04 2.80 -27%
to increase in trade payables.
(ii) Debt- Equity Ratio Increase in ratio is due to
new term loans obtained for
1,428 6,208 0.23 0.18 25%
procurement of property, plant
and equipment.
(iii) Debt Service Cover- The improvement in debt
age ratio 1,339 269 4.97 15.68 -68% service coverage ratio is due to
increase in net profit.
(iv) Return on Equity The improvement in return on
Ratio 1,041 5,703 18% 12% 49% equity ratio is due to increase
in Net profit.
(v) Inventory Turnover The increase in ratio is due to
3,147 2,781 1.13 0.85 33%
Ratio increase in inventory levels.
(vi) Trade Receivable
5,630 1,721 3.27 3.02 8%
Turnover Ratio
(vii) Trade Payable
4,847 1,376 3.52 4.01 -12%
Turnover Ratio
(viii) Net Capital Turn- The improvement in net
over Ratio 5,630 3,550 1.59 1.08 47% capital turnover ratio is due to
increase in overall operations.
(ix) Net Profit Ratio
1,041 5,630 18.49% 18.91% -2%
(x) Return on Capital The improvement is due to

Employed 1,524 7,636 19.96% 13.88% 44% increase in profit on account of
increase in overall operations.
(xi) Return on Invest- The increase is due to higher
ment 28 449 6.22% 3% 100% gain on mutual funds sold in
current year.
Basis for calculating above ratios as below:

Current ratio = Current assets/Current Liabilities
Debt equity ratio = {Total debt=Borrowings (current + Non current)} /{Shareholders funds= (Equity share capital + Other
equity)}
Debt service coverage ratio = (Net profit after tax + Depreciation and amortisation + Interest expense)/(Long term loans
repayment+ Short term loans repayment)
Return on equity ratio= Net profit after taxes/ Average share holders funds
Inventory turnover ratio= Cost of goods sold/ Average inventory
Trade receivable turnover ratio= Revenue from operations/ Average trade receivable
Trade payable turnover ratio= Net credit purchases/ Average trade payables
Net capital turnover ratio= Revenue from operations/( Current assets- Current liabilities)
Net profit ratio= Net profit after tax/ Revenue from operations
Return on capital employed= Earning before interest and taxes/ (Share holders funds+Borrowings (Current + Non current))
Return on investment= Gain on investment/ Average investment
41. Other statutory information

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
ii) The title deeds of all the immovable properties disclosed in the financial statements are held in the name of the
Company
iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iv) The Company does not have any transactions with the companies struck off.
v) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
vi) During the current year, the borrowed funds were utilised for the purpose which they were obtained and as per the
terms specified in the sanction letter.
vii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company (Ultimate Beneficiaries) or
viii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:
the Funding Party (Ultimate Beneficiaries) or
ix) The Company has borrowings from banks on the basis of security of current assets and the quarterly returns and
statements of current assets filed by the Company with banks are in agreement with the books of accounts.
x) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority
xi) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961
42. Subsequent event

No significant subsequent events have been observed till May 17, 2023 which may require any additional disclosure or
an adjustment to the standalone financial statements.
per Atin Bhargava

Partner
Membership no: 504777 Parvat Srinivas Reddy Venkatasatishkumar Reddy
Gangapatnam
DIN: 00359139 DIN: 06535717
Gunneswara Rao Pusarla Shubham Sunil Bagadia

Chief Financial Officer Company Secretary
Hyderabad Hyderabad
Date: May 17, 2023 Date: May 17, 2023
INDEPENDENT AUDITOR’S REPORT

To
The Members of
Report on the Audit of the Consolidated Financial Statements
Opinion Key Audit Matters
We have audited the accompanying consolidated Key audit matters are those matters that, in our
financial statements of MTAR Technologies Limited professional judgment, were of most significance in our
(hereinafter referred to as “the Holding Company”), its audit of the consolidated financial statements for the
subsidiaries (the Holding Company and its subsidiaries financial year ended March 31, 2023. These matters were
together referred to as “the Group”) comprising of the addressed in the context of our audit of the consolidated
consolidated Balance sheet as at March 31 2023, the financial statements as a whole, and in forming our opinion
consolidated Statement of Profit and Loss, including thereon, and we do not provide a separate opinion on these
other comprehensive income, the consolidated Cash matters. For each matter below, our description of how
Flow Statement and the consolidated Statement of our audit addressed the matter is provided in that context.
Changes in Equity for the year then ended, and notes to the
consolidated financial statements, including a summary We have determined the matters described below to be
of significant accounting policies and other explanatory the key audit matters to be communicated in our report.
information (hereinafter referred to as “the consolidated We have fulfilled the responsibilities described in the
financial statements”). Auditor’s responsibilities for the audit of the
consolidated financial statements section of our report,
In our opinion and to the best of our information and including in relation to these matters. Accordingly, our
according to the explanations given to us and based audit included the performance of procedures designed
on the consideration of reports of other auditor on to respond to our assessment of the risks of material
separate financial statements and on the other misstatement of the consolidated financial statements.
financial information of the subsidiaries, the aforesaid The results of audit procedures performed by us and
consolidated financial statements give the information by other auditors of components not audited by us, as
required by the Companies Act, 2013, as amended (“the reported by them in their audit reports furnished to us by
Act”) in the manner so required and give a true and the management, including those procedures performed
fair view in conformity with the accounting principles to address the matters below, provide the basis for our
generally accepted in India, of the consolidated state audit opinion on the accompanying consolidated financial
of affairs of the Group as at March 31, 2023, their statements.
consolidated profit including other comprehensive
income, their consolidated cash flows and the consolidated
statement of changes in equity for the year ended on that
date.
Basis for Opinion
We conducted our audit of the consolidated financial

statements in accordance with the Standards on
Auditing (SAs), as 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 Group 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 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 audit opinion on the consolidated financial statements.
Revenue recognition (as described in Note 2.2(f) and note 20 of the consolidated financial statements)
Revenue from contracts with customer is recognised when Our audit procedures, among others included the
control of the goods is transferred to the customer at following:
an amount that reflects the consideration to which the • Assessed the Holding Company’s revenue recognition
Holding Company expects to be entitled in exchange policy in terms of Ind AS 115 (“Revenue from Contracts
for those goods. During the year ended March 31, with Customers”).
2023, the Holding Company has recognised revenue • Obtained an understanding, assessed the design and
amounting to Rs. 1,123.55 millions and Rs. 4.506.28 tested the operating effectiveness of internal controls
millions from domestic and export sales respectively . related to revenue recognition.
•Performed the following tests for a sample of
The point at which control passes is determined transactions
based on the terms and conditions by each customer o tested supporting documentation for sales transactions
arrangement i.e. delivery specifications including recorded during the year which included sales invoices,
incoterms in case of exports. The risk is, therefore, that customer contracts/sales orders, shipping documents
revenue may not get recognised in the correct period. and other related documents.
o verified whether the recognition of revenue is in
Accordingly, due to the significant risk associated with accordance with the incoterms / when the conditions for
revenue recognition in accordance with terms of Ind AS 115 revenue recognitions are satisfied.
‘Revenue from contracts with customers’, it has been •Tested the supporting documentation for
determined to be a key audit matter in our audit of the sample of sales transactions recorded during the period
consolidated financial statements. closer to the year end and subsequent to the year end
to agree the period of revenue recognition to underlying
documents as referred above.
•Assessed the relevant disclosures made in the
consolidated financial statements.
Other Information
financial position, consolidated financial performance
The Holding Company’s Board of Directors is responsible for including other comprehensive income, consolidated
the other information. The other information comprises the cash flows and consolidated statement of changes in
information included in the Annual report, but does not equity of the Group in accordance with the
include the consolidated financial statements and our accounting principles generally accepted in India,
auditor’s report thereon. including the Indian Accounting Standards (Ind AS)
specified under section 133 of the Act read with the
Our opinion on the consolidated financial statements does Companies (Indian Accounting Standards) Rules, 2015,
not cover the other information and we do not express any as amended. The respective Board of Directors of
form of assurance conclusion thereon. the companies included in the Group are responsible
for maintenance of adequate accounting records in
In connection with our audit of the consolidated accordance with the provisions of the Act for
financial statements, our responsibility is to read the other safeguarding of the assets of the Group and for preventing and
information and, in doing so, consider whether such other detecting frauds and other irregularities; selection and
information is materially inconsistent with the consolidated application of appropriate accounting policies; mak-
financial statements or our knowledge obtained in the audit ing judgments and estimates that are reasonable and
or otherwise appears to be materially misstated. If, based prudent; and the design, implementation and
on the work we have performed, we conclude that there is a maintenance of adequate internal financial controls, that
material misstatement of this other information, we are were operating effectively for ensuring the accuracy and
required to report that fact. We have nothing to report in completeness of the accounting records, relevant to the
this regard. preparation and presentation of the consolidated financial
statements that give a true and fair view and are free from
Responsibilities of Management for the Consolidated material misstatement, whether due to fraud or
Financial Statements error, which have been used for the purpose of
preparation of the consolidated financial statements
The Holding Company’s Board of Directors is responsible by the Directors of the Holding Company, as aforesaid.
for the preparation and presentation of these consolidated
financial statements in terms of the requirements of the Act In preparing the consolidated financial statements, the
that give a true and fair view of the consolidated respective Board of Directors of the companies included
in the Group are responsible for assessing the ability of • Conclude on the appropriateness of management’s
the Group to continue as a going concern, disclosing, as use of the going concern basis of accounting and,
applicable, matters related to going concern and using the based on the audit evidence obtained, whether a
going concern basis of accounting unless management material uncertainty exists related to events or
either intends to liquidate the Group or to cease conditions that may cast significant doubt on the
operations, or has no realistic alternative but to do so. ability of the Group to continue as a going concern. If we
conclude that a material uncertainty exists, we are
Those respective Board of Directors of the required to draw attention in our auditor’s report to the
companies included in the Group are also responsible related disclosures in the consolidated financial
for overseeing the financial reporting process of the Group. statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit
Auditor’s Responsibilities for the Audit of the Consolidat- evidence obtained up to the date of our auditor’s report.
ed Financial Statements However, future events or conditions may cause the Group
to cease to continue as a going concern.
Our objectives are to obtain reasonable assurance
about whether the consolidated financial statements • Evaluate the overall presentation, structure and
as a whole are free from material misstatement, content of the consolidated financial statements,
whether due to fraud or error, and to issue an auditor’s including the disclosures, and whether the consolidated
report that includes our opinion. Reasonable assurance financial statements represent the underlying
is a high level of assurance, but is not a guarantee that transactions and events in a manner that achieves fair
an audit conducted in accordance with SAs will always presentation.
detect a material misstatement when it exists. • Obtain sufficient appropriate audit evidence
Misstatements can arise from fraud or error and are regarding the financial information of the entities or
considered material if, individually or in the aggregate, they business activities within the Group of which we are the
could reasonably be expected to influence the economic independent auditors, to express an opinion on
decisions of users taken on the basis of these consolidated the consolidated financial statements. We are
financial statements. responsible for the direction, supervision and
performance of the audit of the financial statements
As part of an audit in accordance with SAs, we of such entities included in the consolidated financial
exercise professional judgment and maintain professional statements of which we are the independent
skepticism throughout the audit. We also: auditors. For the other entities included in the consolidated
financial statements, which have been
• Identify and assess the risks of material audited by other auditors, such other auditors remain
misstatement of the consolidated financial statements, responsible for the direction, supervision and
whether due to fraud or error, design and perform performance of the audits carried out by them. We
audit procedures responsive to those risks, and obtain remain solely responsible for our audit opinion.
audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material We communicate with those charged with
misstatement resulting from fraud is higher than for governance of the Holding Company and such other entities
one resulting from error, as fraud may involve collusion, included in the consolidated financial statements of
forgery, intentional omissions, misrepresentations, or the which we are the independent auditors
override of internal control. regarding, among other matters, the planned scope and
timing of the audit and significant audit findings,
• Obtain an understanding of internal control relevant including any significant deficiencies in
to the audit in order to design audit procedures that are internal control that we identify during our audit.
appropriate in the circumstances. Under section 143(3)(i) of
the Act, we are also responsible for expressing our opinion We also provide those charged with governance with a
on whether the Holding Company has adequate internal statement that we have complied with relevant ethical
financial controls with reference to financial statements in requirements regarding independence, and to
place and the operating effectiveness of such controls. communicate with them all relationships and other matters
that may reasonably be thought to bear on our
• Evaluate the appropriateness of accounting policies used independence, and where applicable, related safeguards.
and the reasonableness of accounting estimates and related
disclosures made by management.
From the matters communicated with those charged 2. As required by Section 143(3) of the Act, based on
with governance, we determine those matters our audit and on the consideration of report of the other
that were of most significance in the audit of the auditor on separate financial statements and the other
consolidated financial statements for the financial financial information of subsidiaries, as noted in the ‘other
year ended March 31, 2023 and are therefore the key matter’ paragraph we report, to the extent applicable, that:
audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public (a) We/the other auditor whose report we have
disclosure about the matter or when, in extremely rare relied upon have sought and obtained all the
circumstances, we determine that a matter should information and explanations which to the best of our
not be communicated in our report because the knowledge and belief were necessary for the purposes of
adverse consequences of doing so would reasonably be our audit of the aforesaid consolidated financial statements;
expected to outweigh the public interest benefits of such
communication. (b) In our opinion, proper books of account as required by
law relating to preparation of the aforesaid consolidation
Other Matter of the financial statements have been kept so far as it
appears from our examination of those books and reports
We did not audit the financial statements and other of the other auditor;
financial information, in respect of 2 subsidiaries whose
financial statements include total assets of Rs. 70.68 (c) The Consolidated Balance Sheet, the Consolidated
Million as at March 31, 2023, and total revenues of Rs. 26.40 Statement of Profit and Loss including the Statement of
and net cash outflows of Rs. 0.13 million for the year ended Other Comprehensive Income, the Consolidated Cash
on that date. These financial statement and other financial Flow Statement and Consolidated Statement of Changes in
information have been audited by other auditor, which Equity dealt with by this Report are in agreement with the
financial statements, other financial information and books of account maintained for the purpose of
auditor’s reports have been furnished to us by the preparation of the consolidated financial statements;
management. Our opinion on the consolidated
financial statements, in so far as it relates to the amounts (d) In our opinion, the aforesaid consolidated financial
and disclosures included in respect of the subsidiar- statements comply with the Accounting Standards
ies, and our report in terms of sub-sections (3) of Sec- specified under Section 133 of the Act, read with
tion 143 of the Act, in so far as it relates to the aforesaid Companies (Indian Accounting Standards) Rules, 2015, as
subsidiaries, is based solely on the report of such other amended;
auditor.
(e) On the basis of the written representations
Our opinion above on the consolidated financial received from the directors of the Holding Company
statements, and our report on Other Legal and as on March 31, 2023 taken on record by the Board of
Regulatory Requirements below, is not modified in Directors of the Holding Company and the reports of the
respect of the above matters with respect to our statutory auditors who are appointed under Section 139
reliance on the work done and the reports of the of the Act, of its subsidiaries Companies, none of the
other auditors. and the financial statements and directors of the Group’s companies, incorporated in
other financial information certified by the Management. India, is disqualified as on March 31, 2023 from being
appointed as a director in terms of Section 164 (2)
Report on Other Legal and Regulatory Requirements of the Act;
1. As required by the Companies (Auditor’s Report) (f) With respect to the adequacy of the internal
Order, 2020 (“the Order”), issued by the Central financial controls with reference to consolidated financial
Government of India in terms of sub- statements of the Holding Company and its subsidiaries
section (11) of section 143 of the Act, based on our Company, incorporated in India, and the operating
audit and on the consideration of report of the other effectiveness of such controls, refer to our separate Report
auditor on separate financial statements and the other in “Annexure 2” to this report
financial information of the subsidiaries Company,
incorporated in India, as noted in the ‘Other Matter’
paragraph we give in the “Annexure 1” a statement on
the matters specified in paragraph 3(xxi) of the Order.
(g) In our opinion and based on the consideration of b) The respective managements of the Holding Company
reports of other statutory auditor of the subsidiaries, the and its subsidiaries which are companies incorporated in
managerial remuneration for the year ended March 31, India whose financial statements have been audited
2023 has been paid / provided by the Holding Company, its under the Act have represented to us and the other
subsidiaries incorporated in India to their directors in auditor of such subsidiaries respectively that, to the best of its
accordance with the provisions of section 197 read with knowledge and belief, no funds have been received by the
Schedule V to the Act; respective Holding Company or any of such subsidiaries
from any person(s) or entity(ies), including foreign entities
(h) With respect to the other matters to be included in (“Funding Parties”), with the understanding, whether
the Auditor’s Report in accordance with Rule 11 of the recorded in writing or otherwise, that the Holding Company
Companies (Audit and Auditors) Rules, 2014, as or any of such subsidiaries shall, whether, directly or
amended, in our opinion and to the best of our information and indirectly, lend or invest in other persons or entities
according to the explanations given to us and based on the identified in any manner whatsoever by or on behalf of
consideration of the report of the other auditor on separate the Funding Party (“Ultimate Beneficiaries”) or provide any
financial statements as also the other financial information guarantee, security or the like on behalf of the Ultimate
of the subsidiaries, as noted in the ‘Other matter’ paragraph: Beneficiaries; and
i. The consolidated financial statements disclose the c) Based on the audit procedures that have been
impact of pending litigations on its consolidated financial considered reasonable and appropriate in the
position of the Group in its consolidated financial statements circumstances performed by us and that performed by the
– Refer note 32 to the consolidated financial statements; auditor of the subsidiaries which is Company incorporated
in India whose financial statements have been audited un-
ii. The Group did not have any material foreseeable losses der the Act, nothing has come to our or other auditor’s no-
in long-term contracts including derivative contracts during tice that has caused us or the other auditor to believe that
the year ended March 31, 2023; the representations under sub-clause (a) and (b) contain
any material mis-statement.
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education and v) No dividend has been declared or paid during the year
Protection Fund by the Holding Company and its by the Company.
subsidiaries, incorporated in India during the year ended
March 31, 2023. vi) As proviso to Rule 3(1) of the Companies (Accounts)
Rules, 2014 is applicable only w.e.f. April 01, 2023 for
iv. a) The respective managements of the Holding the Holding Company and its subsidiaries companies
Company and its subsidiaries which are companies incorporated in India, hence reporting under this clause is
incorporated in India whose financial statements have been not applicable.
audited under the Act have represented to us and the other
auditor of such subsidiaries respectively that, to the best of
its knowledge and belief, no funds have been advanced or For S.R. Batliboi & Associates LLP
loaned or invested (either from borrowed funds or share Chartered Accountants
premium or any other sources or kind of funds) by the ICAI Firm Registration Number: 101049W/E300004
Holding Company or any of such subsidiaries to or in any
other person(s) or entity(ies), including foreign entities ______________________________
(“Intermediaries”), with the understanding, whether
recorded in writing or otherwise, that the per Atin Bhargava
Intermediary shall, whether, directly or indirectly lend or Partner
invest in other persons or entities identified in any manner Membership Number: 504777
whatsoever by or on behalf of the respective Holding UDIN: 23504777BGXMFE5883
Company or any of such subsidiaries (“Ultimate
Beneficiaries”) or provide any guarantee, security or the Place of Signature: Hyderabad
like on behalf of the Ultimate Beneficiaries; Date: May 17, 2023
Annexure 1 referred to the Independent Auditor’s Report
Re: MTAR Technologies Limited (“the Holding Company”)
(xxi) There are no qualifications or adverse remarks by the respective auditors in the
Companies (Auditors Report) Order (CARO) reports of the companies included in the consolidated financial
statements. Accordingly, the requirement to report on clause 3(xxi) of the Order is not applicable to the Holding
Company.

______________________________
per Atin Bhargava
Partner
UDIN: 23504777BGXMFE5883

Date: May 17, 2023
ANNEXURE 2 TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE CONSOLIDATED FINANCIAL
STATEMENTS OF MTAR TECHNOLOGIES LIMTED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies
Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated Our audit involves performing procedures to obtain
financial statements of MTAR Technologies Limited audit evidence about the adequacy of the internal financial
(hereinafter referred to as the “Holding Company”) as controls with reference to consolidated financial statements
of and for the year ended March 31, 2023, we have and their operating effectiveness. Our audit of internal
audited the internal financial controls with reference to financial controls with reference to consolidated
consolidated financial statements of the Holding financial statements included obtaining an understanding
Company and its subsidiaries the Holding Company and its of internal financial controls with reference to consolidated
subsidiaries together referred to as “the Group”), which financial statements, assessing the risk that a material
are companies incorporated in India, as of that date. weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the
Management’s Responsibility for Internal Financial assessed risk. The procedures selected depend on the
Controls auditor’s judgement, including the assessment of the
risks of material misstatement of the financial statements,
The respective Board of Directors of the companies whether due to fraud or error.
included in the Group, which are companies incorporated
in India, are responsible for establishing and maintaining We believe that the audit evidence we have
internal financial controls based on the internal control obtained and the audit evidence obtained by the other
over financial reporting criteria established by the Holding auditors in terms of their reports referred to in the Other
Company considering the essential components of internal Matters paragraph below, is sufficient and appropriate to
control stated in the Guidance Note on Audit of Internal provide a basis for our audit opinion on the internal financial
Financial Controls Over Financial Reporting issued by the controls with reference to consolidated financial statements.
Institute of Chartered Accountants of India (ICAI). These
responsibilities include the design, implementation and Meaning of Internal Financial Controls With Reference to
maintenance of adequate internal financial controls that Consolidated Financial Statements
were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to A Company's internal financial control with reference to
the respective company’s policies, the safeguarding of consolidated financial statements is a process designed to
its assets, the prevention and detection of frauds and provide reasonable assurance regarding the reliability of
errors, the accuracy and completeness of the accounting financial reporting and the preparation of financial
records, and the timely preparation of reliable financial statements for external purposes in accordance with
information, as required under the Companies Act, 2013. generally accepted accounting principles. A Company's
internal financial control with reference to consolidated
Auditor’s Responsibility financial statements includes those policies and
procedures that (1) pertain to the maintenance of
Our responsibility is to express an opinion on the Holding records that, in reasonable detail, accurately and fairly
Company's internal financial controls with reference to reflect the transactions and dispositions of the assets of the
consolidated financial statements based on our Company; (2) provide reasonable assurance that
audit. We conducted our audit in accordance with the transactions are recorded as necessary to permit
Guidance Note on Audit of Internal Financial preparation of financial statements in accordance with
Controls Over Financial Reporting (the “Guidance Note”) generally accepted accounting principles, and that receipts
and the Standards on Auditing, specified under section and expenditures of the Company are being made only
143(10) of the Act, to the extent applicable to an audit in accordance with authorisations of management and
of internal financial controls, both, issued by ICAI. Those directors of the Company; and (3) provide reasonable
Standards and the Guidance Note require that we comply assurance regarding prevention or timely detection of
with ethical requirements and plan and perform the audit unauthorised acquisition, use, or disposition of the
to obtain reasonable assurance about whether adequate Company's assets that could have a material effect on the
internal financial controls with reference to consolidated financial statements.
financial statements was established and maintained and if
such controls operated effectively in all material respects.
Inherent Limitations of Internal Financial Controls With Other Matters

Reference to Consolidated Financial Statements
Our report under Section 143(3)(i) of the Act on the
Because of the inherent limitations of internal adequacy and operating effectiveness of the internal
financial controls with reference to consolidated financial financial controls with reference to consolidated
statements, including the possibility of collusion or financial statements of the Holding Company, in so
improper management override of controls, material far as it relates to two subsidiary, which is company
misstatements due to error or fraud may occur and not incorporated in India, is based on the corresponding
be detected. Also, projections of any evaluation of the report of the auditors of such subsidiary incorporated in India.
internal financial controls with reference to consolidated
financial statements to future periods are subject to the
risk that the internal financial controls with reference to For S.R. Batliboi & Associates LLP
consolidated financial statements may become inadequate Chartered Accountants
because of changes in conditions, or that the degree of ICAI Firm Registration Number: 101049W/E300004
compliance with the policies or procedures may deteriorate.
Opinion
______________________________
In our opinion, the Group, which are companies
per Atin Bhargava
incorporated in India, have, maintained in all
Partner
material respects, adequate internal financial controls with
reference to consolidated financial statements and
UDIN: 23504777BGXMFE5883
such internal financial controls with reference to
consolidated financial statements were operating
effectively as at March 31, 2023, based on the internal
Date: May 17, 2023
control over financial reporting criteria established by the
Holding Company considering the essential components
of internal control stated in the Guidance Note issued by
the ICAI.
Consolidated Balance Sheet as at March 31, 2023
Particulars Notes As at March 31, 2023 As at March 31, 2022
Assets
Non-current assets
Property, plant and equipment 3 2,902.06 1,953.86
Capital work in progress 3.1 643.77 438.00
Intangible assets 3 7.94 10.09
Financial assets
-Investments 4 (a) 0.10 0.10
-Other financial assets 5 21.67 21.62
Non-current tax assets (net) 6 5.22 5.17
Other non-current assets 7 85.56 216.18
3,666.32 2,645.02
Current assets
Inventories 9 3,865.62 1,703.16
Financial assets
Investment in mutual funds 4(b) 274.74 623.30
Trade receivables 10 2,083.95 1,359.84
Cash and cash equivalents 11 122.40 595.57
Bank balances other than cash and cash equivalents 12 189.84 73.77
Other financial assets 5(b) 47.98 67.33
Other current assets 8 382.25 209.49
6,966.78 4,632.46
Total assets 10,633.10 7,277.48
Equity and liabilities
Equity
Equity share capital 13 307.59 307.59
Other equity 14 5,893.73 4,889.80
Total Equity 6,201.32 5,197.39
Liabilities
Non-current liabilities
Financial Liabilities
Borrowings 17 777.23 259.47
Deferred tax liabilities (net) 16 182.37 162.83
1,015.85 426.54
Current liabilities
Borrowings 17 656.31 699.46
Trade payables 18
- total outstanding dues of micro, small and medium enterprises 119.13 7.20
- total outstanding dues of creditors other than micro, small and medium enterprises 2,063.36 563.21
Other financial liabilities 17A 70.18 24.27
Current tax liabilities (net) 6 22.06 2.87
Other current liabilities 19 466.35 326.17
3,415.93 1,653.55
Total equity and liabilities 10,633.10 7,277.48

The acCompanying notes are an integral part of the consolidated financial statements.
DIN: 00359139 DIN: 06535717
per Atin Bhargava
Hyderabad Hyderabad
Date: May 17, 2023 Date: May 17, 2023
Consolidated statement of profit and loss for the year ended March 31, 2023
Particulars Notes For the year ended For the year ended
March 31, 2023 March 31, 2022
Income
Revenue from operations 20 5,737.51 3,220.06
Other income 21 194.77 87.53
Total income 5,932.28 3,307.59
Expenses
Cost of materials consumed 22 3,156.19 1,574.05
Changes in inventories of work-in-progress 23 (461.09) (411.54)
Employee benefit expense 24 935.09 707.77
Finance costs 25 145.67 66.49
Depreciation and amortisation expense 26 186.61 143.10
Other expenses 27 567.58 405.52
Total expenses 4,530.05 2,485.39
Tax expense 28
Current tax 340.75 179.95
Deferred tax 27.29 33.51
Total tax expense 368.04 213.46
Profit for the year 1,034.19 608.74
Other comprehensive income (OCI)
OCI not to be reclassified to profit or loss:
Re-measurement gains/ (losses) on defined benefit plans (40.45) 8.21
Income tax on above 10.18 (2.39)
OCI for the period, net of tax (30.27) 5.82
Total comprehensive income for the year 1,003.92 614.56
Earnings per equity share of Rs. 10 each fully paid 29
Basic and diluted, computed on the basis of profit attributable to equity holders 33.62 19.79
The accompanying notes are an integral part of the consolidated financial statements.
DIN: 00359139 DIN: 06535717
per Atin Bhargava
Hyderabad Hyderabad
Date: May 17, 2023 Date: May 17, 2023
Consolidated statement of cash flows for the year ended March 31, 2023

March 31, 2023 March 31, 2022
A Cash flow from operating activities

Adjustments to reconcile profit before tax to net cash flows
Depreciation and amortisation expense 186.61 143.10
Finance costs 145.67 66.49
Liabilities no longer required written back - (2.72)
Gain on sale / revaluation of mututal fund (27.94) (19.64)
Unrealised exchange gain (6.55) (14.00)
Loss on sale of property, plant and equipment 1.81 -
Interest income (14.23) (34.23)
Operating profit before working capital changes 1,687.60 961.20
Movements in working capital:
Increase in trade receivables (711.61) (573.06)
Increase in inventories (2,162.46) (677.72)
Decrease in current and non current financial assets 21.10 57.55
Increase in other current and non current assets (172.60) (58.22)
Increase in trade payables 1,603.87 225.56
Increase / (decrease) in other current liabilities 131.97 (67.34)
Increase / (decrease) in provisions (1.24) 14.00
Cash generated (used in) / from operations 396.63 (118.03)
Income tax paid (net of refunds) (322.56) (179.99)
Net cash flows (used in) / from operating activities (A) 74.07 (298.02)
B Cash flow used in investing activities

Purchase of property, plant and equipment, including intangible assets, capital work in progress, (1,083.71) (910.96)
capital creditors and capital advances
Proceeds from sale of property, plant and equipment 6.10 -
Investment in units of mutual fund (323.50) (779.67)
Amount paid for acquisition of subsidiaries (64.50) -
Receipt from redemption in units of mutual fund 700.00 176.00
(Investment in) / redemption from bank deposits (net) (116.07) 29.02
Interest received 14.53 35.63
Net cash flows used in investing activities (B) (867.15) (1,449.98)
C Cash flow from financing activities

Dividend paid - (184.56)
Proceeds from long term borrowings 730.67 415.99
Repayment of long term borrowings (174.89) (50.00)
Proceeds from / (repayment of) short term borrowings (net) (98.79) 423.17
Finance costs paid (137.08) (64.00)
Net cash flows from financing activities (C) 319.91 540.60
Net increase / (decrease) in cash and cash equivalents (A+B+C) (473.17) (1,207.40)
Cash and cash equivalents at the beginning of the year 595.57 1,802.97
Cash and cash equivalents at the end of the year 122.40 595.57
Consolidated statement of cash flows for the year ended March 31, 2023

March 31, 2023 March 31, 2022
Components of cash and cash equivalents
Balance with banks:
Current accounts 122.22 4.54
On Monitoring account - 8.04
Deposits with monitoring agency for amount received for IPO and 432.31
-
Pre-IPO with original maturity of less than three months
Deposits with original maturity of less than three months 0.00 150.55
Total cash and cash equivalents 122.40 595.57
The reconciliation between the opening and the closing balances for liabilities arising from financing activities (long-
term borrowings, including current maturities and short-term borrowings) is as follows:
Particulars Opening balance Proceeds / Forex loss / Closing balance

(repayment) (net) (gain)
Long-term including current maturities 487.25 563.57 - 1,050.82
Short-term 471.68 (88.96) - 382.72

Long-term including current maturities 121.26 365.99 - 487.25
Short-term 48.51 419.66 3.51 471.68
DIN: 00359139 DIN: 06535717
per Atin Bhargava
Hyderabad Hyderabad
Date: May 17, 2023 Date: May 17, 2023
Consolidated statement of changes in equity for the year ended March 31, 2023
a) Equity share capital
Equity shares of Rs. 10 each, issued, subscribed and fully paid up No. of shares Amount
As at April 01, 2021 30,759,591 307.59
As at March 31, 2022 30,759,591 307.59
As at March 31, 2023 30,759,591 307.59
b) Other Equity
Attributable to equity holders of the Parent
Reserves and surplus
Particulars Securities Capital Retained Total Non Total

premium redemption earnings controlling
reserve interest
As at April 01, 2021 3,199.56 14.55 1,245.70 4,459.81 - 4,459.81
Profit for the year - - 608.74 608.74 - 608.74
Equity dividend - - (184.56) (184.56) - (184.56)
Other comprehensive income for the year - - 5.82 5.82 - 5.82
As at March 31, 2022 3,199.56 14.55 1,675.70 4,889.81 - 4,889.81
Profit for the year - - 1,034.19 1,034.19 - 1,034.19
Other comprehensive income for the year - - (30.27) (30.27) - (30.27)
As at March 31, 2023 3,199.56 14.55 2,679.62 5,893.73 - 5,893.73
DIN: 00359139 DIN: 06535717
per Atin Bhargava
Hyderabad Hyderabad
Date: May 17, 2023 Date: May 17, 2023
Notes to the consolidated financial statements for the year ended March 31, 2023
1 Corporate Information
The consolidated financial statements comprise financial statements of MTAR Technologies Limited, ("MTAR"
or "the Holding Company" or “the Company” or “the parent”) and its subsidiaries (collectively, "the Group")
for the year ended March 31, 2023. The Company was a private limited Company domiciled in India, and
incorporated on November 11, 1999 under the provisions of the erstwhile Companies Act, 1956 replaced with
Companies Act, 2013 (“Act”) w.e.f. April 1, 2014 with its registered office at 18, Technocrats Industrial Estate, Balanagar,
Hyderabad, Telangana, India 500037. The Company has become a Public Limited Company w.e.f. November 2, 2020 and
consequently the name of the Company has changed from MTAR Technologies Private Limited to MTAR Technologies
Limited. The Holding Company listed its shares in both BSE and NSE on March 15, 2021.
The Group is engaged in the business of manufacturing high precision and heavy equipment, components, machines for
sectors including nuclear, aerospace, defence, etc.
2 Significant accounting policies
These notes provide a list of the significant accounting policies adopted in the preparation of these financial statements.
These policies have been consistently applied to all the periods presented, unless otherwise stated.
2.1 Basis of preparation
The Consolidated financial statements for the year ended March 31, 2023 comprising of
Consolidated balance sheet as at March 31, 2023, Consolidated statement of profit and loss, including the
Consolidated statement of other comprehensive income, Consolidated cash flow statement and
Consolidated statement of changes in equity for the year end, and a summary of explanatory notes
(together hereinafter referred to as "financial statements") have been prepared in accordance
with Indian Accounting Standards ("Ind AS") notified under Companies Act, 2013 read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended including presentation
requirements of Division II of Schedule III to the Companies Act, 2013 (Ind AS Compliant
Schedule III), as applicable to the standalone financial statements (to the extent notified) and other accounting
principles generally accepted in India.
The financial statements has been prepared on a historical cost basis, except for the following assets and
liabilities which have been measured at fair value:
- Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments), and
- Defined benefits plan - plan assets measured at fair value
The financial statements are presented in Indian Rupees "INR" or “Rs.” and all values are stated as INR Mn, except when
otherwise indicated.
2.2 Basis of consolidation
The Consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at March
31, 2023. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an
investee if and only if the Group has:
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
• Exposure, or rights, to variable returns from its involvement with the investee, and
• The ability to use its power over the investee to affect its returns
Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when
the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and
circumstances in assessing whether it has power over an investee, including:
• The contractual arrangement with the other vote holders of the investee
• Rights arising from other contractual arrangements
• The Group’s voting rights and potential voting rights
• The size of the group’s holding of voting rights relative to the size and dispersion of the holdings of the other voting
rights holders
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control. Consolidation of a subsidiaries begins when the Group obtains control over
the subsidiaries and ceases when the Group loses control of the subsidiaries. Assets, liabilities, income and expenses of a
subsidiaries acquired or disposed of during the year are included in the Consolidated financial statements from the date
the Group gains control until the date the Group ceases to control the subsidiaries.
Consolidated financial statements are prepared using uniform accounting policies for like transactions and other events
in similar circumstances. If a member of the group uses accounting policies other than those adopted in the consolidated
financial statements for like transactions and events in similar circumstances, appropriate adjustments are made to that
group member’s financial statements in preparing the Consolidated financial statements to ensure conformity with the
group’s accounting policies.
The financial statements of subsidiaries used for the purpose of consolidation are drawn up to same reporting date as
that of the parent Company, i.e., year ended on March 31. When the end of the reporting period of the parent is different
from that of a subsidiaries, the subsidiaries prepares, for consolidation purposes, additional financial information as of the
same date as the financial statements of the parent to enable the parent to consolidate the financial information of the
subsidiaries, unless it is impracticable to do so.
Consolidation procedure
1. Combine like items of assets, liabilities, equity, income, expenses and cash flows of the Holding Company with those of
its subsidiaries.
2. Eliminate the carrying amount of the Holding Company’s investment in subsidiaries and the Holding Company’s portion
of equity of subsidiaries till date of incorporation of subsidiaries.
3. Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions
between entities of the group (profits or losses resulting from intragroup transactions that are recognised in assets, such
as inventory and property, plant and equipment, are eliminated in full). Intragroup losses may indicate an impairment that
requires recognition in the Consolidated financial statements. Ind AS 12 Income Taxes applies to temporary differences
that arise from the elimination of profits and losses resulting from intragroup transactions.
4. Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the
Holding Company of the Group and to the non-controlling interests. When necessary, adjustments are made to the
financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies.
2.2 Summary of significant accounting policies
a) Current versus non-current classification
The Group presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is
treated as current when it is:
• Expected to be realised or intended to be sold or consumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realised within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period
The terms of the liability that could, at the option of the counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
The Group classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equiv-
alents. The Group has identified twelve months as its operating cycle.
b) Property, plant and equipment
Freehold land is carried at cost, net of tax / duty credit availed, net of accumulated impairment, if any. All
other items of property, plant and equipment are stated at cost, net of tax / duty credit availed, less
accumulated depreciation and accumulated impairment losses, if any. Cost of an item of property, plant and
equipment comprises its purchase price, including import duties and non-refundable taxes, after deducting trade
discounts and rebates, any directly attributable cost of bringing the item to its working condition for its
intended use and estimated costs of dismantling and removing the item and restoring the site on which it
located. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for
long-term construction projects if the recognition criteria are met. When significant parts of plant and equipment
are required to be replaced at intervals, the Group depreciates them separately based on their specific
useful lives. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred.
Capital work-in-progress (CWIP) includes cost of property, plant and equipment under installation/ under development,
net of accumulated impairment loss, if any, as at the balance sheet date.
Directly attributable expenditure incurred on project under implementation are shown under CWIP. At the point when an
asset is capable of operating in the manner intended by management, the capital work in progress is transferred to the
appropriate category of property, plant and equipment.
Cost of assets not ready for use at the balance sheet date are disclosed under capital work-in-progress.
Capital work in progress is stated at cost, net of accumulated impairment loss, if any. Amounts paid towards the
acquisition of property, plant and equipment outstanding as of each reporting date are recognised as capital advance.
Depreciation is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the
management, which is equal to the life prescribed under the Schedule II to the Companies Act, 2013.
The useful lives estimated by the management are given below:
Category of Asset Estimated useful life (years)

Property, plant and equipment
Buildings 30
Plant and machinery 15
Electrical equipment 5
Furniture and fixtures 10
Office equipment 5
Computers 3/ 6 years
Vehicles 8
The residual value, useful life and methods of depreciation of property, plant and equipment are reviewed at each
financial period end and adjusted prospectively, if appropriate.
An item of property, plant and equipment and any significant part initially recognised is derecognised
upon disposal or when no future economic benefits are expected from its use or disposal. Gains and
losses upon disposal of an item of property, plant and equipment are determined by comparing the proceeds from
disposal with the carrying amount of property, plant and equipment and are recognized net within “other
(income)/expense, net” in the statement of profit and loss.
c) Intangible assets
Costs relating to computer software, which is acquired, are capitalised and amortised on a straight-line basis over their
estimated useful lives of three years.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the
asset is derecognised.
d) Inventories
Inventories are valued at the lower of cost and net realizable value after providing for obsolescence and
other losses, where considered necessary. Cost of inventories comprises all cost of purchase, cost of
conversion and other costs incurred in bringing the inventories to their present location and condition. Net realizable
value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the
estimated costs necessary to make the sale.
Costs incurred in bringing each product to its present location and condition are accounted for as follows:
i. Raw materials: Cost includes cost of purchase and other costs incurred in bringing the inventories to their present
location and condition. Cost is determined on weighted average basis.
ii. Finished goods and work-in-progress: Cost includes cost of direct materials and labour and a proportion of
manufacturing overheads based on the normal operating capacity but excluding borrowing costs. Cost is determined on
weighted average basis.
e. Impairment of non financial assets
The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An
asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and
its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows
that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair
value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an
appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for
publicly traded companies or other available fair value indicators.
The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately
for each of the Group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally
cover a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash
flows after the fifth year. To estimate cash flow projections beyond periods covered by the most recent budgets/forecasts,
the Group extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent years,
unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate
for the products, industries, or country or countries in which the Group operates, or for the market in which the asset is
used
Impairment losses of continuing operations, including impairment on inventories, are recognised in the
statement of profit and loss, except for properties previously revalued with the revaluation surplus taken to
OCI. For such properties, the impairment is recognised in OCI up to the amount of any previous revaluation
surplus. An assessment is made at each reporting date to determine whether there is an indication that previously
recognised impairment losses no longer exist or have decreased. If such indication exists, the group
estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only
if there has been a change in the assumptions used to determine the asset’s recoverable amount since the
last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not
exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior periods. Such reversal is recognised in the
statement of profit and loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a
revaluation increase.
f) Revenue
(i) Revenue from contract with customers
Revenue from contracts with customer is recognised when control of the goods or services are transferred
to the customer at an amount that reflects the consideration to which the Group expects to be entitled in
exchange for those goods or services. The Group has concluded that it is the principal in its revenue
arrangements because it typically controls the goods or services before transferring them to the customer.
Revenue is measured at the fair value of the consideration received or receivable. Amount disclosed as revenue are net of
returns, trade allowances, rebates. Amounts collected on behalf of third parties such as Goods and service Tax (GST) are
excluded from revenue.
The specific recognition criteria described below must also be met before revenue is recognised.
Sale of goods
Revenue is recognized at the point in time when control of the goods is passed to the customer. The point
at which control passes is determined based on the terms and conditions by each customer arrangement,
but generally occurs on delivery to the customer. The contracts that Group enters into relate to sales order
containing single performance obligations for the delivery of goods as per Ind AS 115. Transaction price is the
amount of consideration to which the Group expects to be entitled in exchange for transferring goods to a
customer. Variable consideration is estimated using the expected value method or most likely amount as
appropriate in a given circumstance. Payment terms agreed with a customer are as per business practice and there is
no financing component involved in the transaction price. The Group considers whether there are other
promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be
allocated.
Contract Balances
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Group
performs by transferring goods or services to a customer before the customer pays consideration or before payment is due,
a contract asset is recognised for the earned consideration that is conditional.
Trade receivable
A receivable is recognised if an amount of consideration that is unconditional (i.e., only the passage of time is required
before payment of the consideration is due). Refer to accounting policies of financial assets in section (j) Financial
instruments – initial recognition and subsequent measurement.
A contract liability is the obligation to transfer goods or services to a customer for which the Group has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group
transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment
is due (whichever is earlier). Contract liabilities are recognised as revenue when the Group performs under the contract.
(ii) Export benefits
Export benefits are recognised where there is reasonable assurance that the benefit will be received and all
attached conditions will be complied with. Export benefits on account of export promotion schemes are
accrued and accounted in the period of export and are included in other operating revenue.
(iii) Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group
and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable.
g) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an
entity incurs in connection with the borrowing of funds.
h) Foreign currency transactions
Items included in the financial statements of Group are measured using currency of the primary
economic environment in which the group operates (“the functional currency”). The financial statements are
presented in Indian rupees (INR), which is the functional currency of the Group.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Group in INR at spot rates at the date
the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign
currencies are translated at INR spot rates of exchange at the reporting date. Exchange differences
arising on settlement or translation of monetary items are recognised in the statement of profit and loss. Net loss
relating to translation or settlement of borrowings denominated in foreign currency are reported within finance costs.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value is determined. The
gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose
fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).
In determining the spot exchange rate to use on initial recognition of the related asset, expense or
income (or part of it) on the derecognition of a nonmonetary asset or non-monetary liability relating to advance
consideration, the date of the transaction is the date on which the Group initially recognises the non-monetary
asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts
in advance, the Group determines the transaction date for each payment or receipt of advance consideration.
i) 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.
Financial assets
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other
comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s
contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade
receivables that do not contain a significant financing component or for which the Group has applied the
practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant
financing component or for which the Group has applied the practical expedient are measured at the transaction price
determined under Ind AS 115. Refer to the accounting policies in section (f) Revenue from contracts with customers.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.
Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss,
irrespective of the business model.
The Group’s business model for managing financial assets refers to how it manages its financial
assets in order to generate cash flows. The business model determines whether cash flows will result from
collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and
measured at amortised cost are held within a business model with the objective to hold financial assets in
order to collect contractual cash flows while financial assets classified and measured at fair value through OCI
are held within a business model with the objective of both holding to collect contractual cash flows and selling.
Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the
Group commits to purchase or sell the asset.
For purposes of subsequent measurement, financial assets are classified in four categories:

Debt instruments at fair value through other comprehensive income (FVTOCI)
Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)
Equity instruments measured at fair value through other comprehensive income (FVTOCI)
A ‘debt instrument’ is measured at the amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) 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.
This category is the most relevant to the Group. 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 other income in the statement of profit and loss. The losses arising
from impairment are recognised in the profit or loss.
Debt instruments at FVTOCI
A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are met:
a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets,
and
b) The asset’s contractual cash flows represent SPPI
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date
at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the
Group recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the
statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognised in
OCI is reclassified from the equity to statement of profit and loss. Interest earned whilst holding FVTOCI debt
instrument is reported as interest income using the EIR method.
Debts Instrument at FVTPL
FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization
as at amortized cost or as FVTOCI, is classified as at FVTPL.
In addition, the Group may elect to designate a debt instrument, which otherwise meets amortized cost
or FVTOCI criteria, as at FVTPL.However, such election is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to as ‘accounting mismatch’). The Group has not
designated any debt instrument as at FVTPL. Debt instruments included within the FVTPL category are
measured at fair value with all changes recognized in the statement of profit and loss
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of profit and loss.
This category includes listed equity investments which the Group had not irrevocably elected to classify at fair value through
OCI. Dividends on listed equity investments are recognised in the statement of profit and loss when the right of payment
has been established.
Equity instruments designated at fair value through OCI
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under Ind AS
32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an
instrument-by-instrument basis. Equity instruments which are held for trading are classified as at FVTPL.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income
in the statement of profit and loss when the right of payment has been established, except when the Group benefits from
such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI are not subject to impairment assessment.
Investment in Subsidiaries:
The Group has elected to recognize its investments in subsidiaries at cost less accumulated impairment loss, if any in
accordance with the option available in Ind AS 27, ‘Separate Financial Statements’. Cost represents amount paid for
acquisition of the said investments.
On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is charged
or credited to profit or loss. The details of such investment are given in Note 4. Refer to the accounting policies in
(g) Impairment of non-financial assets.
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 when:
• The rights to receive cash flows from the asset have expired, or
• The Group has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or
(b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has
neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred
control of the asset, the Group continues to recognise the transferred asset to the extent of the Group’s continuing
involvement. Continuing involvement that takes the form of a guarantee over the transferred asset is measured
at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group
could be required to repay. In that case, the Group also recognises an associated liability. The transferred asset and
the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.
Impairment of financial assets

The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair
value through profit or loss. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash flows
from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk
since initial recognition.
ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month
ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss
allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the
default (a lifetime ECL).
The Group considers a financial asset in default when contractual payments are 90 days past due.
However, in certain cases, the Group may also consider a financial asset to be in default when internal or external
information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking
into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable
expectation of recovering the contractual cash flows.
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs.
Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs
at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience,
adjusted for forward-looking factors specific to the debtors and the economic environment.
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, or as payables, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of
loans and borrowings and payables, net of directly attributable transaction costs.
The measurement of financial liabilities is as described below:

Loans and borrowings
This is the category most relevant to the Group. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
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 as finance costs in the statement of profit and loss.
De-recognition
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 and loss.
Reclassification of financial instruments
The Group determines classification of financial assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for financial assets which are equity instruments and financial
liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the
business model for managing those assets. Changes to the business model are expected to be infrequent. The
Group’s senior management determines change in the business model as a result of external or
internal changes which are significant to the Group’s operations. Such changes are evident to external
parties. A change in the business model occurs when the Group either begins or ceases to perform an
activity that is significant to its operations. If the Group reclassifies financial assets, it applies the reclassification
prospectively from the reclassification date which is the first day of the immediately next reporting period
following the change in business model. The Group does not restate any previously recognised gains, losses (including
impairment gains or losses) or interest.
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.
j) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating officer/ chief executive officer. The chief operating officer/ chief executive officer is responsible for allocating
resources and assessing performance of operating segments and accordingly is identified as the chief operating decision
maker
k) Fair value measurement
The Group measures financial instruments, such as, derivatives at fair value at each balance sheet date.
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. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:
- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
-Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
-Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
This note summarises accounting policy for fair value. Other fair value related disclosures are given in the
relevant notes.
- Disclosures for valuation methods, significant estimates and assumptions (notes 32)
- Investment in unquoted equity shares (note 4)
- Financial instruments (including those carried at amortised cost) (notes 5, 9, 10, 11, 16, 17, 17A, 33, 36)
l) Taxes
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted,
at the reporting date in India.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in other comprehensive income or in equity). Current tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
- When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any
unused tax losses.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:
- When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised, or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in
other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity.
The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right
to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same taxation authority on either the same taxable entity or different
taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and
settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are
expected to be settled or recovered.
Sales/ value added taxes paid on acquisition of assets or on incurring expenses
Expenses and assets are recognised net of the amount of sales/ value added taxes paid, except:
- When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the
tax paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable
- When receivables and payables are stated with the amount of tax included
The net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables
in the balance sheet.
m) Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined contribution scheme.

The Group has no obligation, other than the contribution payable to the provident fund. The Group recognizes
contribution payable to the provident fund scheme as an expense, when an employee renders the related
service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet
date, then excess is recognized as an asset to the extent that the prepayment will lead to, for example, a reduction in future
payment or a cash refund.
The cost of providing benefits under the defined benefit plan is determined based on actuarial valuation using the
projected unit credit method.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts
included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet
with a corresponding debit or credit to retained earnings through OCI in the period in which they occur.
Remeasurements are not reclassified to statement of profit and loss in subsequent periods.
Past service costs are recognised in statement of profit and loss on the earlier of:
- The date of the plan amendment or curtailment, and

- The date that the Group recognises related restructuring costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognises the
following changes in the net defined benefit obligation as an expense in the statement of profit and loss:
- Service costs comprising current service costs, past-service costs, gains and losses on curtailments and
non-routine settlements; and
- Net interest expense or income
Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit.
The Group measures the expected cost of such absences as the additional amount that it expects to pay as a result of the
unused entitlement that has accumulated at the reporting date. The Group recognizes expected cost of short-term
employee benefit as an expense, when an employee renders the related service.
The Group treats accumulated leave expected to be carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such compensated absences are provided for based on the
actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immediately taken
to the statement of profit and loss and are not deferred. The Group presents the leave as a current liability in the balance
sheet, as it does not have an unconditional right to defer its settlement for 12 months after the reporting date.
n) Provisions and contingent liabilities
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Group
expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is
presented in the statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost.
A contingent liability is possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of Group or a present obligation that is not
recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be
measured reliably. The Group does not recognise the contingent liability but discloses its existence in the financial
statements.
o) Business combination
The Group accounts for its business combinations under acquisition method of accounting. The consideration transferred
in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair value of
the assets transferred and liabilities incurred by the Group to the former owners of the acquiree and the equity interest
issued by the Group in exchange of control of the acquiree. Acquisition related costs are generally recognised in standalone
statement of profit and loss as incurred.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests
in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquire, if any over the net of the
acquisition–date amounts of the identifiable assets acquired and the liabilities assumed. Such goodwill is tested annually
for impairment.
If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is
recognised in other comprehensive income and accumulated in equity as capital reserve provided there is clear evidence of
the underlying reasons for classifying the business combination as a bargain purchase. In other cases, the bargain purchase
gain is recognised directly in equity as capital reserve.
If the business combination is achieved in stages, any previously held equity interest is re-measured at its acquisition date
fair value and any resulting gain or loss is recognised in profit or loss or OCI, as appropriate
Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date and is
classified either as equity or financial liability. Amount classified as financial liability are subsequently re-measured to fair
value with changes in fair value recognised in statement of profit and loss.
Business combinations arising from entities that are under the common control are accounted at historical cost.
The difference between any consideration given and the aggregate historical carrying amounts of assets and liabilities of
the entity are recorded in other equity.
p) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders of the Group and the weighted average number of shares outstanding during the
period are adjusted for the effects of all dilutive potential equity shares.
q) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above are considered an integral part of the Group’s cash management.
r) Cash dividend to equity holders of the Group
The Group recognises a liability to make cash distributions to equity holders of the Group when the distribution is
authorised and the distribution is no longer at the discretion of the Group. Final dividends on shares are recorded as a
liability on the date of approval by the shareholders and Interim dividends are recorded as a liability on the date of
declaration by the Group's Board of Directors. A corresponding amount is recognised directly in equity.
s) Onerous contracts
If the Group has a contract that is onerous, the present obligation under the contract is recognised and measured as a
provision. However, before a separate provision for an onerous contract is established, the Group recognises any
impairment loss that has occurred on assets dedicated to that contract.
An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Group cannot avoid because
it has the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received
under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower
of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it. The cost of fulfilling a contract
comprises the costs that relate directly to the contract (i.e., both incremental costs and an allocation of costs directly
related to contract activities).
t) Recent accounting pronouncements:

Standards issued but not yet effective and not early adopted by the Group
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) Amendment Rules,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 standalone financial statements. The Company does not expect
this amendment to have any significant impact in its standalone financial statements.
- Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of
a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition,
accounting estimates are “monetary amounts in standalone financial statements that are subject to measurement
uncertainty”. Entities develop accounting estimates if accounting policies require items in standalone 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 standalone 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 amendmentsnarrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12
(recognition exemption) so that it no longer applies totransactions that, on initial recognition, give rise to equal taxable
and deductible temporary differences. The Company is evaluating the impact, if any,in its standalone financial statements.
Note 3 : Property, plant and equipment and intangible assets
Total property,
Plant and Electrical Furniture and Office Intangible
Freehold land Buildings Computers Vehicles plant and Total
machinery equipment fixtures equipment assets - software
equipment
As at April 01, 2021 467.14 417.79 1,276.12 19.07 18.49 7.46 26.36 6.79 2,239.22 33.89 2,273.11
Additions during the year - 30.71 381.11 0.09 3.34 2.24 8.37 4.80 430.66 5.74 436.40
Disposals during the year - - - - - - - - - - -

As at March 31, 2022 467.14 448.50 1,657.23 19.16 21.83 9.70 34.73 11.59 2,669.88 39.63 2,709.51
Additions during the year - 275.39 715.16 12.00 17.13 10.50 10.33 8.12 1,048.63 4.09 1,052.72
Acquired on acquisition 44.18 8.96 33.88 0.39 0.04 0.15 0.19 0.23 88.02 0.03 88.05
(refer note 39A)
Disposals during the year 0.17 - 45.19 - - - - - 45.36 0.03 45.39
As at March 31, 2023 511.15 732.85 2,361.08 31.55 39.00 20.35 45.25 19.94 3,761.17 43.72 3,804.89
-
Accumulated depreciation and amortisation
As at April 01, 2021 - 59.18 460.95 16.67 14.72 5.71 17.27 3.56 578.06 24.41 602.47
Disposals for the year - - - - - - - - - - -
As at March 31, 2022 - 75.48 574.48 16.98 16.58 6.45 21.45 4.60 716.02 29.54 745.56
Disposals for the year - - 37.28 - - - - - 37.28 - 37.28
As at March 31, 2023 - 98.87 681.38 18.69 17.65 8.20 28.14 6.19 859.11 35.78 894.89
Net block -
As at March 31, 2023 511.15 633.98 1,679.70 12.87 21.34 12.15 17.12 13.75 2,902.06 7.94 2,910.00
As at March 31, 2022 467.14 373.02 1,082.75 2.18 5.25 3.25 13.28 6.99 1,953.86 10.09 1,963.95
Annual Report FY 2022 - 23
Certain land and buildings are subject to a first charge to secure the Holding Company’s bank loans. (refer note 17)
266
Note 3.1 : Capital work in progress
Particulars Amount
As at March 31, 2021 105.20
Additions (subsequent expenditure) 733.89
Capitalised during the year (401.09)
As at March 31, 2022 438.00
Additions (subsequent expenditure) 1,255.54
Capitalised during the year (1,049.77)
As at March 31, 2023 643.77
Capital work in progress (CWIP)
(a) Ageing schedule

March 31, 2023 March 31, 2022
Less 1-2 2-3 More Total Less 1-2 2-3 More Total
than 1 years years than 3 than 1 years years than 3
year years year years
Projects in progress 605.85 34.4 - 3.55 643.77 434.45 - - 3.55 438.00
Projects temporarily
- - - - - - - - - -
suspended
Total 605.85 34.37 - 3.55 643.77 434.45 - - 3.55 438.00
(b) There are no project for whose the completion is overdue or has exceeded its cost as compared to its original plan.
4 Investments
As at As at
March 31, 2023 March, 31 2022
Non-current investments
(a) Others (at fair value through profit or loss)
Samuha Engineering Industries Limited
[10,000 (March 31, 2021: 10,000) equity shares of par value Rs. 10 each 0.10 0.10
fully paid]
0.10 0.10
Current investments
Quoted
(b) Mutual fund units (at fair value through profit or loss)
5,981,637.72 units (March 31, 2022: 17,527,497.45 units) of SBI savings 224.74 623.30
fund - direct plan - growth
4,999,750.01 units (March 31, 2022: Nil) of SBI fixed maturity plan - 50.00 -
regular growth
274.74 623.30
Aggregate amount of unquoted investments - in wholly owned 0.10 0.10
subsidiaries
5 Financial assets
Unsecured, considered good unless stated otherwise
Non-current
Security deposits 21.67 16.16
Non-current bank balances (refer note 12) - 5.00
Interest accrued on bank deposits - 0.46
21.67 21.62
Current
Contract asset - unbilled revenue - 2.36
Security deposit - 29.82
Interest accrued on bank deposits 2.40 2.70
Loans and advances to employees 0.64 0.92
47.98 67.33
6 Non current tax assets (net) / current tax liabilities (net)

Non-current tax asset (net)
Advance income tax (net) 5.22 5.17
Liability for current tax
Tax liability (22.06) (2.87)
(16.84) 2.30
The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and
current tax liabilities and related to income tax levied by same tax authority.
7 Other non-current assets

Non-current
Advance for capital goods 49.23 177.89
85.56 216.18
Unsecured, considered doubtful

Less: Provision for doubtful receivable (12.97) (12.97)
- -
Movement in provision for doubtful receivable

Provision made during the year - -
8 Other current assets

Current
Advance to suppliers 43.33 63.86
Export benefits receivable 0.74 27.49
382.25 209.49
9 Inventories (at lower of cost and net realisable value)

Raw materials 2,419.76 718.39
[Includes in transit: Rs. 748.04 (March 31, 2022: Rs.
252.79)]
Work-in-progress 1,445.86 984.77
3,865.62 1,703.16
Write down of inventories to net realisable value amounted to Rs. 15.84 (March 31, 2022: Rs. 15.84). These were
recognised as an expense during the year and included in ‘cost of materials consumed and changes in inventories of
work-in-progress'.
10 Trade receivables
Current
Unsecured considered good 2,083.95 1,359.84
2,083.95 1,359.84
No trade or other receivable are due from directors or other officers of the Group either severally or jointly with any
other person. Nor any trade or other receivable are due from firms or private companies respectively in which any
director is a partner, a director or a member.
The Group considers that there has been a significant increase in credit risk when contractual payments are more than 30
days past due.
Trade receivables ageing schedule


Less than More
6 months
– 1 year
months years
Unsecured considered good 1,939.71 108.17 25.80 9.14 1.13 - 2,083.95
impaired
Total 1,939.71 108.17 25.80 9.14 1.13 - 2,083.95

Less than More
6 months
– 1 year
months years
Unsecured considered good 1,177.51 175.72 3.08 3.53 - - 1,359.84
impaired
Total 1,177.51 175.72 3.08 3.53 - - 1,359.84
11 Cash and cash equivalents

Balances with banks
On current accounts 122.22 4.54
On Monitoring agency account - 8.04
Deposits with monitoring agency for amount received - 432.31
for IPO and Pre-IPO with original maturity of less than 3
months
Deposits with original maturity less than 3 months 0.00 150.55
122.40 595.57
12 Balances at bank other than cash and cash equivalents

Margin money deposits*
Deposits with original maturity for more than three 189.84 73.77
months but remaining maturity of less than twelve
months
Deposits with remaining maturity of more than twelve - 5.00
months
Less: Amount clubbed under 'non-current financial as- - (5.00)
sets - others' (refer note 5)
189.84 73.77
*Margin money deposits represent security held by bank for the bank guarantees and letter of credits of Rs. 1,128.47
(March 31, 2022: Rs. 810.17) issued by the bankers on behalf of the Holding Company.
Breakup of financial assets carried at fair value through profit or loss:

value value
Investment in units of mutual funds (quoted) 274.74 274.74 623.30 623.30
Investments in unquoted equity shares (others) 0.10 0.10 0.10 0.10
Total financial assets carried at fair value through profit 274.84 274.84 623.40 623.40
or loss
Breakup of financial assets carried at amortised cost:

value value
Trade receivables 2,083.95 2,083.95 1,359.84 1,359.84
Cash and cash equivalent 122.40 122.40 595.57 595.57
Balances at bank other than cash and cash equivalents 189.84 189.84 73.77 73.77
Retention money 44.94 44.94 31.53 31.53
Security deposits 21.67 21.67 45.98 45.98
Non-current bank balances - - 5.00 5.00
Contract asset - unbilled revenue - - 2.36 2.36
Interest accrued 2.40 2.40 3.16 3.16
Loans and advances to employees 0.64 0.64 0.92 0.92
Total financial assets carried at amortised cost 2,465.84 2,465.84 2,118.13 2,118.13
The management assessed that cash and cash equivalents and trade receivables approximate their carrying amounts largely
due to the short-term maturities of these instruments. The fair value of the financial assets is included at the amount at which
the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
For financial assets that are measured at fair value, the carrying amounts are equal to the fair values. The fair values
of the financial assets included above have been determined in accordance with generally accepted pricing models.
13. Equity share capital

shares shares
Authorised share capital
Issued, subscribed and fully paid up shares
(a) Reconciliation of equity shares outstanding at beginning and at end of the year:

shares shares
At the beginning of the year 30,759,591 307.59 30,759,591 307.59
Issued during the year - - - -
At the end of the year 30,759,591 307.59 30,759,591 307.59
(b) Rights, preferences and restrictions attached to shares
The Holding Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for
one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are
eligible to receive the remaining assets of the Holding Company after distribution of all preferential amounts, in
proportion to their shareholding.
(c) Details of shareholders holding more than 5% equity shares in the Holding Company

Name of the shareholder Number of % Number of %
shares shares
(i) Vamshidhar Reddy Kallem 20,91,559 6.80% 20,91,559 6.80%
(ii) K. Shalini 20,91,483 6.80% 20,91,483 6.80%
(iii) Leelavathi Parvatha Reddy 16,18,712 5.26% 16,18,712 5.26%
As per records of the Holding Company, including its register of shareholders/members, the above shareholding represents
both legal and beneficial ownership of shares.
(d) Aggregate number of equity shares issued as bonus, shares issued for consideration other than cash and shares
bought back during the period of five years immediately preceding the reporting date:
(i) There are no equity shares issued as bonus and shares issued for consideration other than cash during the period of
five years immediately preceding the reporting date
(ii) During the year ended March 31, 2020, the Holding Company has bought back 1,454,541 equity shares of Rs. 10 each.
(e) Details of shares held by promoters

No. of shares No. of shares
Change % change
at the at % of total
Promoter name during during
beginning of the end of shares
the year the year
the year the year
K Shalini 2,091,483 - 2,091,483 6.80% 0.00%
Leelavathi Parvatha Reddy 1,618,712 - 1,618,712 5.26% 0.00%
P Srinivas Reddy 1,392,903 - 1,392,903 4.53% 0.00%
D Anitha Reddy 1,480,431 (200,000) 1,280,431 4.16% -0.65%
Usha Reddy Chigarapalli 1,405,445 (200,000) 1,205,445 3.92% -0.65%
P Kalpana Reddy 1,025,000 - 1,025,000 3.33% 0.00%
Kavitha Reddy Gangapatnam 1,305,446 (3,10,000) 9,95,446 3.24% -1.01%
Saranya Loka Reddy 1,034,265 (1,09,599) 9,24,666 3.01% -0.36%
Mitta Madhavi 7,76,321 (5,000) 7,71,321 2.51% -0.02%
A Manogna 7,43,813 (1,00,000) 6,43,813 2.09% -0.33%
Anushman Reddy 2,68,128 - 2,68,128 0.87% 0.00%
Northeast Broking Services Limited 2,25,000 (190,000) 35,000 0.11% -0.62%
Total 1,54,58,506 (11,14,599) 1,43,43,907 46.63% -3.62%

No. of shares
No. of shares % change
at the Change during % of total
Promoter name at the end of during
beginning of the year shares
the year the year
the year
K Shalini 2,091,483 - 2,091,483 6.80% 0.00%
Leelavathi Parvatha Reddy 1,718,712 (100,000) 1,618,712 5.26% -0.33%
D Anitha Reddy 1,079,047 4,01,384 1,480,431 4.81% 1.30%
Usha Reddy Chigarapalli 1,004,062 4,01,383 1,405,445 4.57% 1.30%
P Srinivas Reddy 1,392,903 - 1,392,903 4.53% 0.00%
Kavitha Reddy Gangapatnam 9,04,063 4,01,383 1,305,446 4.24% 1.30%
Saranya Loka Reddy 9,34,265 1,00,000 1,034,265 3.36% 0.33%
P Kalpana Reddy 1,025,000 - 1,025,000 3.33% 0.00%
Mitta Madhavi 7,76,321 - 7,76,321 2.52% 0.00%
A Manogna 7,43,813 - 7,43,813 2.42% 0.00%
Anushman Reddy 2,67,598 530 2,68,128 0.87% 0.00%
Northeast Broking Services Limited 2,25,000 - 2,25,000 0.73% 0.00%
P Jayaprakash Reddy 70 (70) - 0.00% 0.00%
Girija Reddy Parvatha 1,204,080 (1,204,080) - 0.00% -3.91%
Total 1,54,57,976 530 1,54,58,506 50.26% 0.00%
14. Other Equity

Securities premium
Capital redemption reserve

Retained earnings
Add: Other comprehensive income / (loss) for the year (30.27) 5.82
Add: Profit for the year 1,034.19 608.74
Less: Appropriations
Final dividend - Rs. Nil (March 31, 2022: Rs. 3 per share) - (92.28)
Interim dividend - Rs. Nil (March 31, 2022: Rs. 3 per share) - (92.28)
5,893.73 4,889.80
Nature and purpose of reserves
Security premium represents the amount received in excess of par value of equity shares. Section 52 of
Companies Act, 2013 specifies regulation around application of premiums received on issue of shares. Accordingly, the
Group has applied securities premium to write off Group’s share of expenses incurred on fresh issue of equity
shares.
Capital redemption reserve represents the amount of profits transferred from securities premium for the buy back of
equity shares. The reserve can be utilised only for limited purposes in accordance with the provisions of the
Companies Act, 2013
Retained earnings are the profits that the Group has earned till date, less dividends or other distributions paid to
shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans, net of taxes that will not
be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available to the Group and eligible for
distribution to shareholders.
15. Provisions
Non-current
- Compensated absences 11.98 -
Other provisions 30.32 -
56.25 4.24
Current
- Compensated absences 3.65 11.58
18.54 30.37
16. Deferred tax liabilities (net)

Deferred tax liability arising on account of timing
Written down value difference of property, plant and 190.14 176.76
equipment and intangible assets between tax and
financial books
190.14 176.76
Deferred tax asset arising on account of timing
Expenses allowed on payment basis 7.77 13.93
7.77 13.93
Deferred tax liability (net) 182.37 162.83
The Group offsets deferred tax assets and liabilities if and only if it has a legally enforceable right to set off
current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to
income taxes levied by the same taxation authority.
Break up of deferred tax (asset) / liabilities
Recognised in On account
Opening Recognised Closing
the statement of of
balance in OCI balance
profit and loss acquisition
Written down value difference of 176.76 13.38 - 190.14
property, plant and equipment and
intangible assets between tax and
financial books
Expenses allowed on payment basis (13.93) 13.91 2.43 (10.18) (7.77)
162.83 27.29 2.43 (10.18) 182.37
Written down value difference of 199.56 (22.80) - 176.76
property, plant and equipment and
intangible assets between tax and
financial books
Expenses allowed on payment basis (14.30) (2.02) 2.39 (13.93)
MAT credit entitlement (58.33) 58.33 - -
126.93 33.51 2.39 162.83
17. Borrowings
Non-current
Long-term borrowings 777.23 259.47
1,050.82 487.25
Less: Amount disclosed under “short-term borrowings” (273.59) (227.78)
777.23 259.47
Current
Cash credit 382.69 235.92
Export packing credit (USD) 0.03 235.76
656.31 699.46
Aggregate secured borrowings 1,433.54 958.93
Aggregate unsecured borrowings - -
1. The long-term borrowings including current maturities of Rs. 1,050.82 (March 31, 2022: Rs. 487..25) from banks is
secured by collateral security against inventories, trade receivables and all other charges on current assets of the
present and future current assets of the Holding Company. The Holding Company has not fully drawn the loan facility as at
March 31, 2023.
(i) State Bank of India

(ii) HDFC Bank Limited

(iii) EXIM Bank

Interest Balance number of Repayments
Outstanding balance as at Frequency of
range installments as commencing
Particulars (` in mn) installments
% per at from - to
March 31, 2023 March 31, 2022 annum March 31, 2023 March 31, 2022
State Bank 106.76 159.60 7.95 to 12 16 Quarterly March 31, 2021
of India 10.70 to
March 31, 2026
HDFC Bank 619.78 327.65 7.5 42 54 Monthly April 01, 2022 to
Limited October 31,
2026
EXIM Bank 324.28 - 7.50 16 - Quarterly September 01,
2023 to August
31, 2027
2. Cash credit and export packing credit facility (USD) aggregating to Rs. 377.11 (March 31, 2022: Rs. 471.68) is secured
against inventories, trade receivables, and all other charges on current assets of the present and future current assets
of the Holding Company. Further the borrowing is secured by collateral security on the certain land and building of the
Holding Company.
The cash credit facility is repayable on demand and carries interest @ 5.50% to 8.40% p.a. (March 31, 2022: 7.90% to
8.95% p.a.).
The export packing credit in USD carries interest @ 2.53% to 5.50% p.a. (March 31, 2022: 1.59% to 2.34% p.a.).
17A Other Financial Liabilities

Payable for capital goods 70.18 24.27
70.18 24.27
18 Trade Payable

- dues of micro and small enterprises 119.13 7.20
- dues of creditors other than micro and small enterprises 2,063.36 563.21
2,182.49 570.41


Less than More than
1 year 3 years
Total outstanding dues of 913.38 1,145.20 4.43 0.35 - 2,063.36
Disputed dues of MSME - - - - - -
Disputed dues of creditors other - - - - - -
than MSME
913.38 1,264.33 4.43 0.35 - 2,182.49


Less than More than
1 year 3 years
Total outstanding dues of 338.13 220.61 4.47 - - 563.21
Disputed dues of MSME - - - - -
Disputed dues of creditors other than - - - - -
MSME
338.13 227.81 4.47 - - 570.41
Disclosure pertaining to Micro, Small And Medium Enterprises Act (as per information available with the Group)

The principal amount and the interest due thereon
remaining unpaid to any supplier as at the end of each
accounting year
Principal amount remaining unpaid 119.13 7.20
Interest due thereon - -
119.13 7.20
The amount of interest paid by the buyer in terms of
section 16 of the MSMED Act 2006 along with the
- -
amounts of the payment made to the supplier beyond
the appointed day during each accounting year
The amount of interest due and payable for the period
of delay in making payment (which have been paid but
- -
beyond the appointed day during the year) but without
adding the interest specified under the MSMED Act 2006
The amount of interest accrued and remaining unpaid at
- -
the end of each accounting year
The amount of further interest remaining due and
payable even in the succeeding years, until such date
when the interest dues as above are actually paid to the
- -
small enterprise for the purpose of disallowance as a
deductible expenditure under section 23 of the MSMED
Act 2006
Breakup of financial liabilities carried at amortised cost:

value value
Borrowings - long-term including current maturities 1,050.82 1,050.82 487.25 487.25
Borrowings - short-term 382.72 382.72 471.68 471.68
Payable for capital goods 70.18 70.18 24.27 24.27
Trade payables 2,182.49 2,182.49 570.41 570.41
3,686.21 3,686.21 1,553.61 1,553.61
The management assessed that trade payables, short-term borrowings and other financial liabilities approximate their
carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial liabilities
included above is at the amount at which the instrument could be exchanged in a current transaction between willing
parties, other than in a forced or liquidation sale.
19. Other Liabilities

Current
Statutory remittances 17.91 13.54
Contract liability - advance from customers 446.61 311.02
Others 1.83 1.61
466.35 326.17
20. Revenue from Operations

March 31, 2023 March 31, 2022
(A) Revenue from contracts with customers
Sale of products 5,630.24 3,159.28
5,630.24 3,159.28
(B) Other operating revenue
- Others 107.27 60.78
107.27 60.78
Total (A+B) 5,737.51 3,220.06
(i) Disaggregated revenue information

Set out below is the disaggregation of the Group's revenue from contracts with customers:
March 31, 2023 March 31, 2022
India 1,123.96 1,177.44
Outside India 4,506.28 1,981.84
5,630.24 3,159.28
Timing of revenue recognition
Goods transferred at a point of time 5,630.24 3,159.28
Total 5,630.24 3,159.28
(ii) Contract balances

Trade receivable 2,083.95 1,359.84
Contract asset
Unbilled revenue - 2.36
Advance from customer 446.61 311.02
The performance obligation is satisfied when control of the goods are transferred to the customers based on the
contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.
Trade receivables and retention money are non-interest bearing. Refer note 10 for details on expected credit loss.
Unbilled revenue are initially recognised for revenue earned from transfer of goods and services but not billed to customer
because the work completed has to meet requirements of various milestones as set out in the contract with customers.
Upon fulfilling the milestones and acceptance by the customer, the amounts recognised as contract assets are reclassified
to trade receivables.
Advance from customers pertain to balance received as advance from various parties as certain percentage of the order
value. The same will be adjusted against the order on the basis of delivery and collection of receivables.
There is no difference in the contract price negotiated and the revenue recognised in the statement of profit and loss. There
is no significant revenue recognised in the current year from performance obligations satisfied in previous years.
(iii) Amounts included in contract liabilities at the beginning of the period recognised as revenue in the current period of
Rs. 185.59 (March 31, 2022: Rs. 347.76). Generally the advance from customers are settled over a period of 1 to 3 years.
21. Other Income

March 31, 2023 March 31, 2022
Foreign exchange gain (net) 144.96 28.57
Interest on bank deposits 14.23 34.23
Interest on income tax refund 0.01 -
Liabilities no longer required written back - 2.72
Profit from sale of mutual funds* 27.94 19.64
Miscellaneous income 7.63 2.37
194.77 87.53
* Includes unrealised gain/(loss) Rs. (10.35) [March 31, 2022: Rs. 14.89]
22. Cost of materials consumed

March 31, 2023 March 31, 2022
Add: Purchases 4,857.56 1,840.23
3,156.19 1,574.05
23. Changes in inventories of work-in-progress

March 31, 2023 March 31, 2022
(461.09) (411.54)
24. Employee Benefit Expenses

March 31, 2023 March 31, 2022
Salaries, wages and bonus 868.69 657.39
Contribution to provident and other funds [refer note 30 (II)] 32.22 27.13
Gratuity expense [refer note 30 (I)] 12.74 9.50
Staff welfare expenses 21.44 13.75
935.09 707.77
25. Finance costs

March 31, 2023 March 31, 2022
Interest expenses
- Short term borrowings 46.75 9.65
- Long term borrowings 66.81 22.44
- Others 2.04 0.46
Bank charges 30.07 33.94
145.67 66.49
26. Depreciation and amortisation expenses

March 31, 2023 March 31, 2022
Depreciation on property, plant and equipment 180.37 137.97
Amortisation on intangible assets 6.24 5.13
186.61 143.10
27. Other Expenses

March 31, 2023 March 31, 2022
Sub-contractor charges 66.68 80.14
Production expenses 125.18 67.85
Power and fuel 132.96 89.48
Material testing charges 5.38 4.11
Repairs and maintenance
- Buildings 26.21 17.82
- Plant and machinery 36.78 23.37
- Others 4.44 5.20
Insurance 8.44 7.79
Rates and taxes 14.70 11.09
Communication 2.54 1.99
Travelling and conveyance 21.67 14.55
Printing and stationary 1.84 1.20
Freight and forwarding 19.05 2.90
Business Promotion 4.40 2.73
Legal and professional charges 37.25 34.31
Security Charges 9.00 9.37
Payment to auditors (refer below) 5.33 3.50
‘Loss on sale of property, plant and equipment 1.81
CSR expenses (refer note 31) 11.70 9.65
Miscellaneous expenses 31.22 18.47
567.58 405.52
Payment to auditors

March 31, 2023 March 31, 2022
Statutory audit 5.00 3.50
Other services 0.33 -
5.33 3.50
28. Tax expense
a) Income tax expense:
The major components of income tax expense
(i) Profit or loss section

March 31, 2023 March 31, 2022
A. Current tax 340.75 179.95
B. Deferred tax
Tax expense on origination and reversal of
27.29 (24.82)
temporary difference
MAT credit utilisation - 58.33
Income tax expense recognised in the statement
368.04 213.46
of profit and loss
(ii) OCI Section

March 31, 2023 March 31, 2022
Income tax expense to OCI 10.18 (2.39)
b) Reconciliation of effective tax rate:

March 31, 2023 March 31, 2022
Profit before tax (A) 1,402.23 822.20
Enacted tax rate in India (B) 25.17% 29.12%
Expected tax expenses (C = A*B) 352.91 239.42
Tax effect of
Adjustments for taxes with respect of earlier period 10.11 -
Expenses disallowed under Income Tax Act, 1961 3.21 1.78
Impact of change in tax rate for future period - (25.57)
Others 1.81 (3.00)
Total (D) 15.13 (26.79)
Expected tax expenses (C+D) 368.04 212.63
Income tax expenses 368.04 213.46
Effective tax rate 26.25% 25.96%
29. Earnings per share (EPS)
The following reflects the income and share data used in the basic and diluted EPS computations:

March 31, 2023 March 31, 2022
Profit attributable to equity share holders 1,034.19 608.74
Weighted average number of equity shares in calculating
3,07,59,591 3,07,59,591
basic and diluted EPS
Face value of each equity share (Rs.) 10.00 10.00
Basic and diluted earnings per share 33.62 19.79
30. Employment benefit plans
I. Defined benefits plan
The Employees’ Gratuity Fund Scheme managed by a trust is a defined benefit gratuity plan which is administered through
gratuity scheme with Life Insurance Corporation of India. Every employee who has completed five years or more of
service gets gratuity, on retirement / termination, at 15 days last drawn salary for each completed year of service
subject to a maximum of Rs. 2.00. The following tables summarise the components of net benefit expense recognised in
the statement of profit and loss and the funded status and amounts recognised in the balance sheet for gratuity benefit.
A) Net employee benefit expense (recognised in employee benefits expense)

March 31, 2023 March 31, 2022
Interest cost on defined benefit obligation 10.73 9.80
Interest (income) on plan assets (10.66) (8.73)
Net employee benefit expenses 12.74 9.49
B) Amount recognised in the statement of other comprehensive income (OCI)

March 31, 2023 March 31, 2022
Remeasurements - due to experience adjustments 11.40 1.68
Return on plan assets (0.77) (0.42)
Remeasurements - due to financial assumptions 24.52 (4.39)
36.69 (2.29)
C) Amount recognised in the balance sheet
As at March 31, 2023 As at March 31, 2022

Defined benefit obligation 198.03 153.30
Fair value of plan assets 169.19 130.65
Net defined benefit liability 28.84 22.65
D) Changes in the present value of the defined benefit obligation

Opening defined benefit obligation 153.30 146.84
Interest cost 10.73 9.80
Net actuarial (losses) / gains on obligations recognised under OCI 35.92 (2.71)
Closing defined benefit obligation 198.03 153.30
E) Changes in the fair value of plan assets

Opening fair value of plan assets 130.65 130.96
Interest income 10.66 8.73
Remeasurements - return on assets (0.77) (0.42)
Contributions by employer 43.24 0.43
Closing fair value of plan assets 169.19 130.65
Expected contribution to the gratuity fund during the next year would be Rs. 28.85 (March 31, 2022: Rs. 22.64)
Investment details of plan assets
Investment with insurer - Assets under Schemes of Insurance 100.00% 100.00%
(i) The principal assumptions used in determining gratuity obligation

Discount rate 7.52% 7.35%
Rate of increase in compensation 7.00% 5.00%
Employee attrition rate 5.00% 5.00%
Mortality rate Indian assured life mortali- Indian assured life
ty (2012-14) mortality (2012-14)
(ii) Disclosure related to indication of effect of the defined benefit plan on the Group's future cash flow
1 year 15.03 18.30
2-5 years 91.41 70.49
6-10 years 99.83 78.91
The weighted average duration of the defined benefit obligation is 7.97 years (March 31, 2022: 7.09 years).
(iii) Sensitivity analysis:
A quantitative sensitivity analysis for significant assumption is as shown below:

(a) Effect of 1% change in assumed discount rate
- 1% increase (12.81) (8.24)
- 1% decrease 14.56 10.44
(b) Effect of 1% change in rate of increase in compensation

- 1% increase 15.47 11.65
- 1% decrease (13.87) (9.18)
(c) Effect of 1% change in assumed attrition rate

- 1 % increase 0.29 1.24
- 1 % decrease (0.34) (1.37)
II. Defined contribution plans
The Group made provident fund and other funds contributions to defined contribution plans for qualifying
employees. Under the Schemes, the Group is required to contribute a specified percentage of the payroll costs to fund the
benefits. The Group recognised Rs. 32.22 (March 31, 2022: Rs. 27.32) for provident fund contributions in the statement
of profit and loss. The contributions payable to these plans by the Group are at rates specified in the rules of the schemes
31. Detail of CSR expenditure

March 31, 2023 March 31, 2022
(a) Gross amount required to be spent by the Group during
11.70 9.65
the year
(b) Amount approved by the Board to be spent during the
11.70 9.65
year
(c) Amount spent during the year (in cash)
i) Construction /acquisition of any asset - -
ii) On purposes other than (i) above 11.70 9.65
- -
d) Details of ongoing project and other than ongoing project
Opening balance Amount Amount spent during Closing balance

required to the year
With In separate be spent With In separate With In separate
Group CSR during the Group CSR Group CSR
unspent A/c year unspent unspent A/c
A/c
March 31, 2023
Other than - - 11.70 11.70 - - -
ongoing project
March 31, 2022
Other than - - 9.65 9.65 - - -
ongoing project
32. Commitments and contingencies
a. Commitments
Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for: Rs.
549.16 (March 31, 2022: Rs. 659.16).
b. Contingent liabilities
Claims against the Group not acknowledged as debts (excluding interest arrears) is amounting to Rs. 22.67 for March 31,
2023 (March 31, 2022: Rs. 22.67).
33. Significant accounting judgements, estimates and assumptions
The preparation of financial statements in conformity with the recognition and measurement principles of Ind
AS requires management to make judgements, estimates and assumptions that affect the reported balances of
revenues, expenses, assets and liabilities and the acCompanying disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods. There are no significant areas involving a high degree of
judgement or complexity.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next period, are described below. The Group based its assumptions and estimates on
parameters available when the financial statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising that are beyond the control of the
Group. Such changes are reflected in the assumptions when they occur.
i. Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments
in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the
discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the
interest rates of government bonds.
The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval
in response to demographic changes. Rate of increase in compensation are based on expected future inflation. Further
details about gratuity obligations are given in note 30.
ii. Depreciation of property, plant and equipment and amortization of Intangible assets
Depreciation of property, plant and equipment and amortization of intangible assets is calculated on a straight-line basis
using the rates arrived at based on the useful lives and residual values as estimated by the management. The management
believes that depreciation and amortization rates currently used fairly reflect its estimate of the useful lives and residual
values of property, plant and equipment and intangible assets.
34. Financial risk management objectives and policies
The Group’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose
of these financial liabilities is to finance the Group’s operations. The Group’s principal financial assets include trade
receivables, other financial assets, cash and cash equivalent and balance at bank other than cash and cash
equivalent. The Group is exposed to credit risk, market risk and liquidity risk. The Group has a risk management policy and its
management is supported by a risk management committee that advices on risk and appropriate financial risk governance
framework for the Group. The risk management committee provides assurance to the Group’s management that the risk
activities are governed by appropriate policies and procedures and that risks are identified, measured and managed in
accordance with the Group’s policies and risk objectives. The Board of Directors reviews and agrees policies for
managing each of these risks.
A. Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities
(primarily trade receivables), cash and cash equivalent, balance at bank other than cash and cash equiva-
lent and other financial assets. The Group deals with parties which has good credit rating /worthiness given by
external rating agencies or based on Group's internal assessment. The major customers are usually the Government
parties and export customers with high credit worthiness.
Exposure to credit risk
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer and
the carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk was (i) Rs. 2,126.10 (March 31, 2022: Rs. 1,393.73) being the total of the carrying amount of
balances with trade receivables (including retention money and unbilled revenue) (ii) cash and cash equivalent
(excluding cash on hand), balance at bank other than cash and cash equivalent, non-current bank balances and interest
accrued of Rs. 314.46 (March 31, 2022: Rs. 677.37) and (iii) other financial assets of Rs. 22.31 (March 31, 2022: Rs. 46.90).
The measurement of impaired credit for carrying amount of the above financial assets is ascertained using the
expected credit loss model (ECL) approach. Credit risk is managed through continuously monitoring the creditworthiness of
customers. The Group is considerate of the fact the majority of the collection is receivable from export customers with high
credit worthiness or the government companies where there are no significant risk of bad debts. The customers of the
Group have a defined period for payment of receivables, hence the Group evaluates the concentration of risk with respect
to trade receivables as low. The total amount receivable from top 2 customers is Rs.1,829.43 for March 31, 2023
(March 31, 2022: Rs. 999.57).
The cash and cash equivalent (excluding cash on hand), balance at bank other than cash and cash equivalent, non-current
bank balances and interest accrued of Rs. 314.46 (March 31, 2022: Rs. 677.37) are held with banks having good credit
rating.
B. Liquidity risk
The Group's objective is to maintain a balance between continuity of funding and flexibility through the use of bank
deposits and loans.
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual
undiscounted payments (including interest payments):
Within 1 year 1 to 5 years After 5 years Total

March 31, 2023
Borrowings 656.31 777.23 - 1,433.54
Trade payables 2,182.49 - - 2,182.49
2,908.98 777.23 - 3,686.21
March 31, 2022
Borrowings 699.46 259.47 - 958.93
Trade payables 570.41 - - 570.41
1,294.14 259.47 - 1,553.61
The cash credit facility amounting to Rs. 382.72 (March 31, 2022: Rs. 471.68), repayable on demand, has been disclosed as
within 1 year for the purpose of disclosure of liquidity risk of the Group.
C. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. The sensitivity analysis
has been included in the below disclosures.
Foreign currency exchange rate risk
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss.
The risks primarily relate to fluctuations in US Dollar (USD) as against the functional currency of the Group. The
Group evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
a. The year end unhedged foreign currency exposures is as under:
Amount in
Particulars Currency Exchange rate Amount in Rs.
foreign currency
Trade receivables
March 31, 2023 USD 21.52 82.22 1,769.32
March 31, 2022 USD 13.30 75.81 1,007.89
Cash and cash equivalents

March 31, 2023 USD 0.00 82.22 0.03
March 31, 2022 USD 0.03 75.81 2.59
Export packing credit

March 31, 2023 USD 0.00 82.22 0.03
March 31, 2022 USD 3.11 75.81 235.76
Trade payables
March 31, 2023 USD 20.23 82.22 1,663.27
March 31, 2023 GBP 0.06 101.87 5.92
March 31, 2023 EURO 0.19 89.61 17.21
March 31, 2022 USD 4.92 75.81 372.83
March 31, 2022 GBP 0.15 99.55 14.67
March 31, 2022 EURO 0.06 84.66 5.08
b. Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates with all other
variables held constant. The impact on the Group’s profit before tax is due to changes in the fair value of monetary assets
and liabilities.
Change in USD exchange rate Effect on profit before tax
Increase Decrease Increase Decrease
March 31, 2023 1% 1% 0.83 (0.83)
March 31, 2022 1% 1% 3.82 (3.82)
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Group is exposed to interest rate risk because certain funds are borrowed at floating interest
rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings
of the Group are principally denominated in rupees and US dollars with a mix of fixed and floating rates of interest. The
Group has exposure to interest rate risk, arising principally on changes in base lending rate and LIBOR rates. The risk is
managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings.
If interest rates had been 100 basis points (1%) higher / lower and all other variables were held constant, the Group’s
profit for the year end ended March 31, 2023 would decrease / increase by Rs. 14.28 (March 31, 2022: Rs. 9.59).
35. Capital management
For the purpose of the Group’s capital management, capital includes issued equity capital and other equity reserves
attributable to the equity holders of the Group. The primary objective of the Group’s capital management is to
maximise the shareholder value.
The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Group may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Group monitors capital using a
gearing ratio, which is net debt divided by total capital plus net debt. The Group’s policy is to keep the gearing ratio to an
acceptable level. The Group includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents
excluding balance with monitoring agency account.
In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to ensure that
it meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit he bank to immediately call loans and borrowings. There
have been no breaches in the financial covenants of any interest-bearing borrowing in the current year.
Borrowings 1,433.54 958.93

Less: Cash and cash equivalents excluding balance with
(122.40) (155.22)
monitoring agency account
Net debt (A) 1,311.14 803.71
Equity (B) 6,201.32 5,197.39

Equity and net debt (C) = (A) + (B) 7,512.46 6,001.10
Gearing ratio (A) / (C) 17.45% 13.39%
36. Related party disclosures
Names of related parties and description of relationship
(a) Key managerial personnel
Parvat Srinivas Reddy, Managing Director.

Mathew Cyriac, Director (Director upto May 10, 2022)
Venkatasatishkumar Reddy Gangapatnam, Director
A. Praveen Kumar Reddy (appointed w.e.f. March 14, 2020)
Sudipto Bhattacharya, Chief financial officer (From September 01, 2020 to November 01, 2021)
M. Anushman Reddy, Director (appointed w.e.f. August 9, 2022)
Gunneswara Rao Pusarla, Chief financial officer (w.e.f. November 08, 2021)
Shubham Sunil Bagadia, Company secretary.
(b) Relatives of key management personnel

• A. Pranay Kumar Reddy
• K. Shalini
(c) Independent / Non-Executive Directors appointed on December 05, 2020

• Padmashri Nagarajan Vedachalam (Up to February 02, 2023)
• B V R Subbu
• A. Krishna Kumar
• Ameeta Chatterjee
• U C Muktibodh
• V.G. Sekaran
Transactions and balances with related parties

Particulars
A. Transactions with related parties
Remuneration*
M. Anushman Reddy 5.57 -
Parvat Srinivas Reddy 33.60 24.00
A. Praveen Kumar Reddy 3.51 -
A. Pranay Kumar Reddy 0.60 0.64
Shubham Sunil Bagadia 1.16 0.79
Sudipto Bhattacharya - 4.43
Gunneshwara Rao Pusarla 16.80 -
Sitting fees/Commission
Venkatasatishkumar Reddy Gangapatnam 0.52 0.54
A. Praveen Kumar Reddy 0.09 0.38
Mathew Cyriac 0.08 0.70
Padmashri Nagarajan Vedachalam 2.06 0.58
B V R Subbu 2.54 0.62
A. Krishna Kumar 2.67 0.74
Ameeta Chatterjee 2.47 0.74
U C Muktibodh 2.12 0.46
V.G. Sekaran 2.26 0.58
Rent Expense
K. Shalini 0.73 -
*As the future liability for gratuity and leave encashment is provided on actuarial basis for the Group as a whole, the
amount pertaining to the individuals is not ascertainable, therefore not included above.
37. Fair values
There are no significant financial assets and liabilities measured at fair value through profit or loss except for Investment
in units of mutual fund [refer note 4(b)] which has been valued using Level 1 valuation method as described in note 2(i).
The fair value of the financial assets and liabilities measured at amortised cost approximates their carrying amounts as
at the balance sheet date. (refer breakup of financial assets carried at fair value through profit or loss and breakup of
financial liabilities carried at amortised cost).
38. Segment Reporting
The chief operating officer / chief executive officer of the Group takes decision in respect of allocation of resources and
assesses the performance basis the report / information provided by functional heads and are thus considered to be
Chief Operating Decision Maker.
Based on the Group's business model, manufacturing high precision and heavy equipment, components,
machines have been considered as a single business segment for the purpose of making decision on allocation of
resources and assessing its performance. Accordingly, there are no separate reportable segments in accordance
with the requirements of Ind AS 108 ‘Operating segment’ and hence, there are no additional disclosures to be
provided other than those already provided in the financial statements. The information relating to revenue from
external customers and location of non-current assets of its single reportable segment has been disclosed as below.
The geographic information analyses the Group's revenues and non-current assets by the country of domicile and other
countries. In presenting geographic information, segment revenue has been based on the location of the customer and
segment assets are based on geographical location of the assets.
(a) Revenue from contracts with customers

India 1,123.96 1,177.44
Outside India 4,506.28 1,981.84
Total 5,630.24 3,159.28
(b) The Group has entire non-current assets within India. Hence, separate figures have not been furnished.
(c) Customer contributing more than 10% of revenue
No of customers Amount
Interest in other entities
a) Subsidiary
The Group's subsidiary is set out below. Unless otherwise stated, they have share capital consisting solely of equity shares
that are held directly by the Group and proportion of ownership interests held equals the voting rights held by the Group.
The country of incorporation or registration is also their principal place of business:
Name of entity Principle activity Country of Ownership interest held by the

incorporation group %
March 31, 2023 March 31, 2022
Magnatar Aero Systems Private Specialising in the India 100% 100%
Limited manufacture of domestic
appliance
Gee Pee Aerospace and Defence Manufacturing of High India 100% -
Private Limited precision components with
advanced CNC Machining
b) Additional information, as required under schedule III of the Companies Act, 2013, as required enterprises
considered as subsidiaries.
Summary of net assets and profits
Net Assets
Name the entity As at March 31, 2023 As at March 31, 2022
% age Amount % age Amount
A. Holding 100.11% 6,208.12 100.00% 5,197.64
Company
B. Subsidiaries
Magnatar Aero 0.00% (0.22) 0.00% (0.15)
Systems Private Limited
Gee Pee Aerospace and 0.13% 8.23 0.00% -
Total 100.24% 6,216.13 100.00% 5,197.49

Consolidation adjustments -0.24% (14.81) 0.00% (0.10)
Net Amount 100.00% 6,201.32 100.00% 5,197.39
Share of profit / (loss)

A. Holding Company 100.63% 1,040.75 100.01% 608.81
B. Subsidiaries
Magnatar Aero -0.01% (0.07) -0.01% (0.07)
Gee Pee Aerospace and -0.53% (5.49) - -
Total 100.10% 1,035.19 100.00% 608.74
Consolidation adjustments -0.10% (1.00) 0.00% -
Net Amount 100.00% 1,034.19 100.00% 608.74
Share in other comprehensive income / (loss)

A. Holding Company 100.00% (30.27) 100.00% 5.82
B. Subsidiaries
Magnatar Aero 0.00% - 0.00% -
Gee Pee Aerospace and 0.00% - - -
Total 100.00% (30.27) 100.00% 5.82
Consolidation adjustments 0.00% - 0.00% -
Net Amount 100.00% (30.27) 100.00% 5.82
Share in total comprehensive income / (loss)

A. Holding Company 100.65% 1,010.48 100.01% 614.63
B. Subsidiaries
Magnatar Aero -0.01% (0.07) -0.01% (0.07)
Gee Pee Aerospace and -0.55% (5.49) - -
Total 100.10% 1,004.92 100.00% 614.56
Consolidation adjustments -0.10% (1.00) 0.00% -
Net Amount 100.00% 1,003.92 100.00% 614.56
The disclosure above represents separate information for the consolidated entity before elimination of
inter-Company transactions. The net impact on elimination of inter-Company transactions/ profits or (loss) /
consolidation adjustments have been disclosed separately. Based on the Group's structure, the management is of the
view that the above disclosure is appropriate under requirements of the Companies Act, 2013.
40. On June 2, 2022, the Company had acquired 100% stake in Gee Pee Aerospace & Defence Private
Limited for a purchase consideration of Rs. 66.84. Gee Pee Aerospace & Defence Private Limited is engaged in
manufacturing of high precision components for the Aerospace & Defence industry. The acquisition is
determined to be an asset acquisition and not a business combination. Refer below for the fair values of identifiable
assets and liabilities as at the date of acquisition.
The fair values of the identifiable assets and liabilities as at the date of acquisition were:
Particulars Rs.
Assets
Property, plant and equipment 88.02
Intangible assets 0.03
Other assets 2.10
Trade receivables 5.95
Cash and bank balances 2.34
Total assets 98.44
Liabilities
Borrowings-long term 7.79
Borrowings-short term 9.83
Trade payables 1.40
Other current liabilities 12.58
Total liabilities 31.60
Total identifiable net assets at fair value 66.84
41 Issue of shares
(i) Issue of shares via Initial Public Offering (IPO)
The Holding Company, in the year 2021-22, has completed the Initial Public Offering (IPO) of 10,372,419 Equity Shares
of Face Value of Rs. 10 each for cash at a price of Rs. 575 per Equity Share aggregating to Rs. 5,964.14 comprising a Fresh
Issue of 2,148,149 Equity Shares aggregating to Rs. 1,235.19 and on Offer for sale of 8,224,270 Equity Shares
aggregating to Rs. 4,728.95. Pursuant to the IPO, the Equity Shares of the Holding Company got listed on National Stock
Exchange (NSE) and Bombay Stock Exchange (BSE) on March 15, 2021. Further, the Company has made allotment
through preferential basis by making a pre-IPO placement of 1,851,851 Equity Shares Face Value of Rs. 10 each for cash
at a price of Rs. 540 per Equity Share aggregating to Rs. 999.99. The amount received from IPO and Pre-IPO was kept in
a separate account with the monitoring agency. The details of utilisation of IPO and Pre-IPO placement are as follows:
Particulars March 31, 2023

Amount Utilised up to the Un-utilised up
end of the year to the end of
the year
Repayment / prepayment in full or in part of borrowings
630.00 630.00 -
availed by the Holding Company
Funding for working capital requirements 950.00 950.00 -
General corporate purposes 549.23 549.23 -
Total utilised / un-utilised funds 2,129.23 2,129.23 -

42. Other statutory information
i) The Group does not have any Benami property, where any proceeding has been initiated or pending against the
Group for holding any Benami property.
ii) The title deeds of all the immovable properties disclosed in the financial statements are held in the name of the
Group
iii) The Group does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
iv) The Group does not have any transactions with the companies struck off.
v) The Group has not traded or invested in crypto currency or virtual currency during the financial year.
vi) During the current year, the borrowed funds were utilised for the purpose which they were obtained and as per the
terms specified in the sanction letter.
vii) The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
the Group (Ultimate Beneficiaries)
viii) The Group has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Group shall:
the Funding Party (Ultimate Beneficiaries)
ix) The Group has borrowings from banks on the basis of security of current assets and the quarterly returns and
statements of current assets filed by the Group with banks are in agreement with the books of accounts.
x) The Group has not been declared wilful defaulter by any bank or financial institution or government or any
government authority
xi)The Group has not any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961
43 Subsequent event
No significant subsequent events have been observed till May 17, 2023 which may require any additional disclosure or an ad-
justment to the consolidated financial statements.
per Atin Bhargava

Partner
Membership no: 504777 Parvat Srinivas Reddy Venkatasatishkumar Reddy
Gangapatnam
DIN: 00359139 DIN: 06535717
Gunneswara Rao Pusarla Shubham Sunil Bagadia

Chief Financial Officer Company Secretary
Hyderabad Hyderabad
Date: May 17, 2023 Date: May 17, 2023
Notes
Notes
Notes

Annual Report 22 23

Uploaded by

Copyright:

Available Formats

Annual Report 22 23

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Annual Report 22 23

Uploaded by

Copyright:

Available Formats

1

MTAR Technologies Limited

Annual Report FY 2022 - 23

In this annual report we are we believe we have been prudent in our

4 Managing Director's Overview

MTAR has forayed into Clean Energy - Fuel cells

In addition, MTAR has started catering to

MTAR strategises to expand its green product

MTAR is poised to witness an accelerated growth

In addition, the company also supplies specialised

MTAR has invested in cutting edge and

Vision Extensive Experience Diverse Products

Customers Cerfications Credit Rating

Forayed into Clean Energy - Development of

Development of Entered into MOU

2005 2004 2002

Product Design Advanced Machining

Heat Treatment Surface Treatment - Painting

Electronics Manufacturing Systems -

Specialised fabrication vertical shall be

We have started catering to GE Power in

Significant ramp up in revenues is expected

Delivered Rs. 311 Mn worth of Sheet metal

The company aims to cater to Clean Energy &

Batch Production expected to

Specialised Fabricated Developmental Orders

Mass Production Batch Production Import Substitutes

Fuelling Machine Head

Clean Energy - Civil

We supply electrolyser units that generate green hydrogen through electrolysis

Structures - Waste to Energy Sector

Spiral Casing - Hydel Sector Structures - Hydel Sector

Our Product portfolio in Space

Stage 3: Ball Screws

Stage 2: Cryogenic Engine Sub

Stage 1: Vikas Engine Stage 1: Electro-pneumatic modules

Products Under Development - Space

Two Stage to Low Earth Orbit Small Satellite

Products in Space - MNC Aerospace Vertical

Structures for MNC Aerospace customers

Precision Equipment for MNC Aerospace customers

Product Portfolio in Defence

The Company is working on the The company has executed

MTAR has developed ASP

Rafael Advanced Defense Systems Ltd Elbit Systems Collins Aerospace

GKN Aerospace Thales

Bloom Energy Inc. Voith

GE Hydro Andritz Hydro

GE Hydro is one of the renowned players in Andritz Hydro is a global supplier of

Worldwide Oilfield Machine

Worldwide Oilfield Machine

MTAR is currently in discussions with reputed global OEMs specifically in

Fluence Energy Enercon

Enervenue Regen Power

EnerVenue provides metal-hydrogen

Israeli Aerospace industries Bluebird Aero Systems Ltd

End to End Manufacturing Expertise

Wide product portfolio across diverse sectors