Technofab Engineering Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

1. The above results were placed before and reviewed by the Audit Committee at its meeting held on 11th February, 2021 and subsequently approved by the Board of Directors at its meeting held on the same date.

2. The statement has been prepared in accordance with Companies (Indian Accounting Standard) Rules, 2015 (Ind AS) prescribed under Section 133 of Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.

3. The Company has only one Primary Segment i.e.Engineering, Procurement and Construction. Hence, there is no other reportable segment.

4. Effective April 1, 2019, the Company has adopted Ind AS 116 "leases" using the modified retrospective method The adoption of this standard increased depreciation expenses and interest expenses by Rs. 223.50 Lakhs and Rs. 108.49 Lakhs and decreased rent expenses by Rs.394.30 Lakhs.

5. The Company was unable to complete various projects in time, performance bank guarantees of the Company were also invoked by other parties, and non-recovery of its funds due to various reasons and hence defaulted on repayment of dues to lenders, consequently the lenders have classified the loan balances of the Company as non-performing assets

6. The Company has incurred significant losses during the year. The networth of the company has largely been eroded.

7. The Company has delayed/defaulted in payment of loans and Interest and loan accounts have been classified as nonperforming assets by banks. Due to fund constraints and othor reasons the company has not been able to complete projects as expected, resulting to Invocation of bank guaranteos/performance guarantees Notwithstanding the above, the Standalone financial statements of Ihe Company have been prepared on going concern basis as management believes that the Company would be able to ultimately establish profitable operations, meet its commitments and reduce debt.

8. The financial results of Ihe Company has boen audited by the statutory auditor of the company The figures of the previous porlod have been regrouped / rearranged wherever necessary.