(n) PROVISIONS, CONTINGENT LIABILITIES, CONTINGENT ASSETS

Provisions are recognized when there is a present legal or statutory obligation or constructive obligation as a
result of past events and where it is probable that there will be outflow of resources to settle the obligation and
when a reliable estimate of the amount of the obligation can be made.

Contingent liabilities are recognized when there is a possible obligation arising from past events due to
occurance and non occurance of one or more uncertain future events not wholly within the control of the
company or where any present obligation cannot be measured in terms of future outflow of resources or where
a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only
those having a largely probable outflow of resources are provided for.

Contingent assets where it is probable that future economic benefits will flow to the company are not recognised
but disclosed in the financial statements. However, when the realisation of income is virtually certain, then the
related asset is no longer a contingent asset, but it is recognised as an asset.

(o) SEGMENT REPORTING

In accordance with Ind AS 108-"Operating Segment", the 0perating segments are reported in a manner
consistent with the internal reporting provided to the "Chief Operating Decision Maker"(CODM). The Board of
Directors is collectively the Comany's CODM.

2 RECENTLY ISSUED ACCOUNTING PRONOUCEMENT

Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standard) Rules, as issued from time to time. For the year ended March 31, 2025, MCA has
notified IND AS 117 Insurance Contracts and amendments to IND AS 116 - Leases, relating to sale and leaseback
transactions, applicable to the Company w.e.f April 1,2024. The Company has reviewed the new pronouncements and
based on its evaluations has determined that it does not have any significant impact in its financial statements.

2A USE OF ESTIMATES AND MANAGEMENT JUDGEMENTS

The preparation of financial statements in conformity with Ind AS requires management to make judgements,
assumptions and the use of accounting estimates which, by definition, will seldom equal the actual results.
Management also needs to exercise judgement in applying the company's accounting policies.

This note provides information about the areas that involved a higher degree of judgement or complexity, and of items
which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than
those originally assessed.

Estimates, underlying assumptions and judgements are reviewed on ongoing basis. Revisions to accounting
estimates are recognised in a period in which the estimates are revised. They are based on historical experience and
other factors, including expectations of future events that may have a financial impact on the company and that are
believed to be reasonable under the circumstances.

(ii) Rights and preferences attached to equity shares :

The Company has only one class of equity shares issued and subscribed of face value of INR 5 per share. Each holder of
equity share is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive assets of the Company
remaining after settlement of all liabilities. The distribution will be in proportion to the number of equity shares held by
the shareholders. In the event of declaration of dividend by the Company, approval of shareholders will be required in its
Annual General Meeting.

(a) Fair value

The fair value of the financial assets and liabilities approximates their carrying amounts as at the Balance Sheet date.

(b) Fair valuation Techniques

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset

or paid to transfer a liability in an orderly transactions between market participants at the measurement date.

The following method of assumption were used to estimate the fair values:

(i) The fair value of cash and cash equivalents, trade receivables, trade payables, current financial liabilities /
financial assets approximate their carrying amount largely due to the short term nature of these instruments. The
management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal
cost /amortised cost in the financial statements approximate their fair value.

(ii) A substaintial portion of the Company's long-term debts has been contracted at fixed rate of interest. Fair value of
variable interest borrowings approximates their carrying value subject to adjustments made for transaction cost.

31. FINANCIAL RISK MANAGEMENT

The Company's risk management is carried out by a treasury department under policies approved by the Board of
Directors, Company Treasury identifies, evaluates and hedges financial risks in close co-operation with the Company's
operating units. The board provides principles for overall risk management, as well as policies covering specific areas,
such as foreign exchange risk, interest rate risk, credit risk, liquidity risk and investment of excess liquidity.

(A) Market Risk

(i) Foreign currency risk

The Company does not operate internationally. The Company does not have significiant foreign currency
exposure.

(ii) Interest rate risk

The Company does not have borrowing as at 31st March 2025. As such there is no interest rate risk.

(iii) Price risk

The Company does not have a practice of investing in market equity securities with a view to earn fair value
changes gain. At the reporting date Company does not hold quoted securities. Accordingly, Company is not
exposed to significant market price risk.

(B) Credit Risk

The Company is exposed to credit risk from its activities and from its financing activities including deposits with
banks.

(C) Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unexpectable loses.

32. CAPITAL MANAGEMENT - RISK MANAGEMENT

The Company's objectives when managing capital are to safeguard their ability to continue as a going concern, so
that they can continue to provide returns for shareholders and benefits for other stakeholders. In order to maintain or
adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to
shareholders, issue new shares or sell assets to reduce debt.

The Management believes that the outcome of the above will not have any material adverse effect on the financial
position of the company. Against the above claims/demands, payments have been made under protest and/or
debts have been withheld by the respective parties, to the extent of INR 73.39 Lakhs (INR 73.39 Lakhs).

Included in the above are contingent liabilities to the extent of INR 875.65 Lakhs (INR 875.65 Lakhs) relating to
the pre transfer period of the erstwhile Power Unit Plant and Power Product Division of the Company, which were
transferred to AVTEC Limited in June 2005, INR 471.16 Lakhs (INR 471.16Lakhs) relating to the pre-transfer
period of the erstwhile Earthmoving Equipment division of the Company, which was transferred to Caterpillar
India Private Limited in February 2001 and INR 569.81 Lakhs (INR 569.82 Lakhs) relating to the pre transfer
period of the erstwhile Chennai Car Plant of the Company, which has been tranferred to Hindustan Motor Finance

Corporation Limited in March 2014. However, demands to the extent of INR 667.29 Lakhs (INR 667.29 Lakhs) in
case of erstwhile Power unit Plant are covered by counter guarantees by the customers.

b) Bonus for the years 1963-64 to 1967-68 at Uttarpara unit is under adjudication (amount undetermined). The
Company contends that no liability exists in this regard under the Payment of Bonus Act,1965, as amended.

37. DESCRIPTION OF PLANS
i) Description of Plans

A. Defined benefit plans

a) Provident Fund

The Company also has certain defined contribution plans. Contributions are made to provident fund in
India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to
registered provident fund administered by the government. The obligation of the Company is limited to the
amount contributed and neither it has further contractual nor any constructive obligation.

b) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972.

B. Other Employee Benefits
Leave Encashment

The amount of the provision of INR 11.23 Lakhs (March 31,2024 INR 19.22 Lakhs) is considered as current and
the accumulated leave expected to be carried forward beyond twelve months as long term employee benefit
for measurement purpose.

vi) Risk exposure :

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:

Description of Risk Exposers:

Valuations are based on certain assumption which are dynamic in nature and vary over time. As such Company is
exposed to various risk as follows:

Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. If
bond yields fall, the defined benefit obligation will tend to increase.

Salary Inflation risk : Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include
mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation
is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria.

Withdrawls : Actual withdrawls providing higher or lower than assumed withdrawls can impact plan's liability.

Discount Rate : Reduction in discount rate in subsequent valuations can increase the plans liability.

39. SEGMENT REPORTING

As the Company's business activity falls within a single primary business segment viz "Automobiles" and there is no
reportable secondary segment i.e. geographical segment, the disclosure requirement of IND AS 108 - "Operating
Segments " is not applicable.

40. The Company has been continuously rationalising the cost post "suspension of work” at Uttarpara plant. It has reduced
the fixed cost including employee cost considerably and continuously working on further reducing its fixed cost. It
has reduced the employee liability to a large extent. The accumulated losses of the Company was brought down to
Rs.10751.60 Lacs as on 31st March, 2025 as compared to Rs.25218.07 Lacs as on 31st March, 2017. The net worth of
the Company is Rs.2461.44 lacs as on 31st March, 2025 as compared to net worth of Rs.904.69 lakhs as on 31st March,
2024, which was negative of Rs. 1632.50 lakhs as on 31st March, 2023. The Company is presently debt free (Financial
debt) barring few liabilities which stand mainly on employee account, trade payables & other liabilities. At present,
the current asset of the Company exceeds the current liabilities resulting in favourable current ratio and reflects that
Company has sufficient liquidity to meet its liabilities. The Company is considering various measures.

The Company has alternate plans to facilitate new business interests and generate additional revenue and realize
adequate fund required, after the resumption issue is resolved.

Thus, the Company on the basis of realising further fund continues to prepare its accounts on a going concern basis.

41. D ue to low productivity, growing indiscipline, shortage of funds and lack of demand of products, the management
declared "Suspension of work” at Company's Uttarpara Plant with effect from 24th May 2014.

Based on legal opinion obtained, the employees and workmen, falling under the purview of "Suspension of work”
at Uttarpara plant, are not entitled to any salary & wages during that period and accordingly the Company has not
provided for such salary & wages.

42. The Government of West Bengal issued an order for resumption of HM Uttarpara land. Application filed before West
Bengal Land Reform and Tenancy Tribunal (WBLRTT) and after conclusion of final hearing, an appeal filed by the
Company before Hon'ble Calcutta High Court against the order passed by WBLRTT, for which hearing is in process.

43. The wholly owned immaterial foreign subsidiary of the Company namely Hindustan Motors Limited, USA was already
dissolved on 16th February, 2017 as per the laws appliacble in USA and as such not in existence since after dissolution.
Further, the application made by the Company to Reserve Bank of India seeking permission for writing off its entire
investment in Hindustan Motors Limited, USA (Capital, Loan and other receivables/payables) for which necessary
provision has been made in the accounts of the Company, is under consideration.

46. a) Figures in brakets represent figures for the previous year.

b) Previous year's figures have been regrouped / rearranged wherever necessary.

As per our report of even date.

For KAMG & Associates As Approved,

Chartered Accountants For and on behalf of the Board of Directors

ICAI Firm's Registration Number: 311027E

Anjan Sircar Vishakha Gupta A. Sankaranarayanan

Partner Company Secretary Director

Membership No. 050052 (M. No. - A54948) (DIN - 00385632)

Prakash Sahu Mahesh Kumar Kejriwal Uttam Bose

Place : Kolkata Chief Executive Officer Chief Financial Officer Director

Date : May 22, 2025 (DIN - 02340000)