(R) Provisions, contingent liabilities and contingent assets

(i) Provisions:

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. The expense relating to a provision is presented in the
statement of profit and loss.

(ii) Contingent liabilities:

A contingent liability is a 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 the 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 a contingent liability but discloses its
existence in the financial statements.

(iii) Contingent Assets: Contingent Assets are disclosed, where an inflow of economic benefits is probable.

(S) Investments

On transition to Ind AS, equity investments are measured at fair value, with value changes recognised in Other
Comprehensive Income, except for those mutual fund for which the Company has elected to present the fair value
changes in the Statement of Profit and Loss.

(T) Trade receivables

Trade receivables are recognised initially at their fair value and subsequently measured at amortised cost using the
effective interest method, less provision for impairment.

(U) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year
which are unpaid. Trade and other payables are recognised, initially at fair value, and subsequently measured at
amortised cost using effective interest rate method.

(V) Operating Cycle

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their
realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose
of classification of its assets and liabilities as current and non current.

(W) Foreign Exchange Risk Management Policy

Foreign exchange risk refers to the losses that an international financial transaction may incur due to currency fluctuations.
Exchange rate volatility is unpredictable since there are many factors that affect the movement of the exchange rates
i.e. economic fundamentals, monetary policy, fiscal policy, global economy, speculation, domestic and foreign political
issues, market psychology, being some of them. The exchange rate volatility poses a risk, called foreign exchange
risk or currency risk, to business sector, in particular, the importers and exporters or those ones who associate with
international businesses. Although businesses cannot control the fluctuation of the exchange rates but they can manage
the risk by using proper hedging tools e.g. Forward, Futures, and Options, in order to manage their revenues and
costs, assets and liabilities, more efficiently.

The company exports Automotive Components to known customers in the overseas marlet and take forward booking
keeping in view the forward markets. In certain position exports are kept in open position, however, the position is
reviewed at regular intervals and decision with regard to the hedge is taken based on situation and factors prevalent at
the time. For long term commitments, e.g., forex commitments in the nature of term loans, the company has a policy
to completely hedge the total exposure.

(X) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest rupees lakhs , unless
otherwise stated as per the requirement of Schedule III (Division II).

"16.1 During the current financial year, the Company has issued 16,39,200 convertible warrants, each convertible into one
equity share of Rs. 2/- each at Rs. 175/- per share (including share premium of Rs. 173/- per share) of the Company. As at the
close of the financial year ended 31st March 2025, 8,59,600 convertible warrants remain outstanding. Out of these, 8,00,000
convertible warrants are held by the Promoter Group and 59,600 convertible warrants are held by non-promoter shareholders.
The conversion of these outstanding convertible warrants into equity shares is subject to the terms and conditions as approved by the
shareholders and applicable regulatory provisions."

* For movement, refer statement of change in equity.

# Capital Reserve

The Company recognise gain on account of merger/amalgamation to capital reserve.

## Securities Premium Reserve

The amount received in excess of the par value of Equity shares issued have been classified as securities premium. In accordance with the
provision of Section 52 of Indian Companies Act, 2013, the securities premium account can only be utilisedfor the pueposes of issue bonus
shares,repurchasing the Company's shares, redemption of preference shares and debentures, and offsetting direct issue costs and discount
allowed for the issue of shares or debentures.

### Capital Investment Subsidy

The Company recognise subsidy received from Government to Capital Investment Subsidy.

#### General Reserve

General reserve forms part of the reatined earning and is permitted to be distributed to shareholders as part of dividend and is created out
of transfer from retained earnings.

##### Retained earnings

Retained earnings includes the Company's cumulative earning and losses respectively.

37 CONTINGENT LIABILITIES

i. In respect of Bank Guarantee : Rs.145.13 lakhs (Previous year Rs.115.92 lakhs)

ii. Bills Discounted with Banks Rs. 1381.73 lakhs (Previous year Rs. 1484.47 lakhs)

(These represents Bills discounted against confirmed Letters of Credit issued by the customers and no liability is likely to arise against the
same)

iii. In respect of Capital commitments Net of Advances : Rs. 865.24 lakhs (Previous year Rs. 317.05 lakhs)

iv. Sales tax liability in respect of matters in appeal - Rs. 152.80 lakhs (Previous year Rs. 152.80 lakhs) against which Rs. 21.84 Lakhs
(Previous year Rs. 11.24 Lakhs) have been deposited.

v. VAT/Sales Tax Liability in respect of matters in appeals - Rs.0.21 lakhs (Previous year Rs.0.21 lakhs) against which Rs. Nil have been deposited.

(vi) Income Tax for AY 2020-21 Rs. 35.84 Lakhs (Previous year Rs. 35.84 Lakhs) : Matter under appeal with CIT (Appeals), the liability, if any,
arises will be adjusted against the MAT Credit Entitlement available.

vii. Goods & Service Tax (GST)- As per the Order of Additional Commissioner, Central Goods & Service Tax Commissionerate, Shimla a
Demand of Rs. 42.62 Lakhs (Previous Year 42.62 Lakhs) including interest & penalty of Rs. 24.86 Lakhs pertaining to Goods & Service
Tax matters for the period July, 2017 to March, 2020 relating to wrong/ excess availment of ITC, Interest on delayed payment of GST,
etc. is raised. The Company disputes the alleged demand of Rs. 42.62 Lakhs and is in the process of filing Appeal against the Order
with the Appellate Authority under the Goods & Service Tax Act.

viii. Goods & Service Tax Liability in respect of matters in appeal for FY 2018-19 - Rs. 101.67 Lakhs (Previous year Nil) against which Rs. 4.98
Lakhs have been deposited Goods & Service Tax Liability in respect of matters in appeal for FY 2019-20 - Rs. 8.04 Lakhs (Previous
year Nil) against which Rs. 0.40 Lakhs have been deposited

ix. Disputed liability of power expenses demanded by H.P.S.E.B Rs. 7.10 Lakhs (Previous year Rs. 7.10 Lakhs)

* Rs. 7.10 lakhs pertains to late payment surcharge erroneously levied by HPSEB in the Power Bill, the company has made the
payment under protest. The amount has been shown under the head "Other Current Assets" in the balance sheet.

x. Claims against the company not acknowledged as debt- Rs. 8.79 lakhs (Previous year Rs. 6.29 lakhs) against which Rs. 2.50 lakhs have
been deposited with Court as per its directions.

xi. Export Obligations against EPCG Licences :The Company has obtained licenses/authorization under the Export Promotion Capital
Goods (EPCG) scheme for importing capital goods at a concessional rate of custom duty against submission of bonds. Under the term
of the respective license authorization, the Company is required to export goods of FOB value equivalent to six times duty saved in
respective licenses/authorization where export obligation has been fixed by the office of DGFT, Ministry of Commerce and Industry, as
applicable. Balance obligation as on 31.03.2025 is Rs. 922.53 Lakhs (Previous year 922.53 Lakhs). The Company has made exports towards
the stipulated export obligation and the requisite documents to the office of DGFT in this regard will be submitted in due course of
time.

(ii) Defined Benefit Plan

(a) Gratuity:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days salary last drawn for each
completed year of service depending on the date of joining. The same is payable on termination of service, retirement or death, whichever is
earlier. The benefit vests after 5 years of continuous service.

(b) Leave encashment:

The Company has a policy on compensated absences which is applicable to its executives joined upto a specified period and all workers.
The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each
Balance Sheet date using projected unit credit method on the additional amount expected to be paid as a result of the unused entitlement that
has accumulated at the Balance Sheet date.

The plans of the Company exposes to acturial risks such as Investement Risk, Interest rate risk,salary risk and longitivity risk. Theses risks
may impact the obligation of the Company

(c) The following tables set out the funded status of the gratuity and leave encashment plans and the amounts recognised in the Company's
financial statements as at 31 March 2025 and 31 March 2024.

(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. Credit risk encompasses the direct risk of default, risk of deterioration of creditworthiness as well as concentration risks. The Company
is exposed to credit risk from its operating activities (primarily trade receivables), deposits with banks and loans given.

Credit Risk Management

For financial assets the Company has an investment policy which allows the Company to invest only with counterparties having credit
rating equal to or above AAA and AA. The Company reviews the creditworthiness of these counterparties on an ongoing basis. Another
source of credit risk at the reporting date is from trade receivables as these are typically unsecured. This credit risk has always been
managed through credit approvals, establishing credit limits and continuous monitoring the creditworthiness of customers to whom credit
is extended in the normal course of business. The Company estimates the expected credit loss based on past data, available information on
public domain and experience. Expected credit losses of financial assets receivable are estimated based on historical data of the Company.
The company has provisioning policy for expected credit losses. There is no credit risk in bank deposits which are demand deposits. The
creditors risk is minimum in case of entity to whom loan has been given.

(B) Liquidity Risk

The Company's principal sources of liquidity are "cash and cash equivalents" and cash flows that are generated from operations. The
Company has outstanding term borrowings. The Company believes that its working capital is sufficient to meet its current as well as long
term borrowing repayment requirements. The company has significant high receivables & liquid inventory compared to payable, hence
significantly low liquidity risk.

(C) Market risk
Foreign currency risk

The Company significantly operates in domestic market. Though part of the sales is from Exports, however foreign currency risk towards
export is insignificant considering the timely realisation thereof.

The Company also imports certain materials the value of which is also not material as compared to value of total raw materials. Currently,
Company does not hedge this exposure. Nevertheless, Company may wish to hedge such exposures.

46.1 During the financial year 2024-25 the Company has issued 8,25,800 equity shares of Rs. 2/- each at Rs. 175/- per share (including share premium
Rs. 173/- per share) on preferential basis to Non-promoter shareholders and 16,39,200 Convertible Warrants at a price of Rs. 175/- per Warrant,
convertible into equity shares of Rs.2/- each at Rs. 175/- per share (including share premium Rs. 173/- per share), on preferential basis to both
Promoters/promoter group of the Company and Non-Promoter shareholders.

46.2 During the financial year 2024-25, the Company has received 25% amount towards issue of 16,39,200 Convertible Warrants ("Warrants") and on
receipt of balance 75% amount from the Warrant holders, exercising their rights, the company has allotted 80,000, 40,000 and 6,59,600 Equity Shares
of Rs. 2/- each at Rs. 175/- per share (including share premium Rs. 173/- per share) on 7/11/2024, 14/11/2024 and 27/03/2025 respectively."

46.3 As at the end of financial year 2024-25, Smt. Anju Aggarwal and Smt. Urmil Aggarwal of Promoter group hold 5,00,000 and 3,00,000 Convertible

Warrants in addition to the above promoter shareholding

46.4 The Promoters and Promoter group have been issued new shares as per above however they have not sold any of the shares held by them during

the financial year 2024-25 and the % age change in the Promoters Shareholding is owing to increase in paid-up share capital during the year.

Note for change in ratio by more than 25% as compared to the ratio of preceding year :

(*) Net Profit Ratio : Due to increase in sales the net profit has improved, thus improvement in net profit ratio.

49 SEGMENT REPORTING

49.1 The Board of Directors of the Company, who have been identified as being the Chief Operating Decision Maker (CODM) evaluate the
Company's performance and allocate resources based on the analysis of various performance indicators of the Company as a single unit since
the company is primarily engaged in the business of Automotive Parts and the basic nature of these activities are governed by the same set of
risk and returns. Accordingly, these constitute and have been grouped as a single segment as per Ind-AS 108 dealing with Segment Report.

55 Additional regulatory information required by Schedule III to the Companies Act, 2013 :

(i) The Company does not have any Benami Property held in its name. No proceedings have been initiated on or pending against the
Company for holding Benami Property under the Banami Transactions (Prohibition) Act,1988 and rules made thereunder.

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

m The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government
authority.

(iv) Utilisation of Borrowed Funds and share premium

No funds (which are material either individually or in the aggregate) 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 entities, including foreign
entities ("intermediaries"), with the understanding, whether recorded in writing or otherwise, that the intermediary shall whether
directly or indirectly lend or invest in any other persons or entities identified in any manner whatsoever by or on behalf of the Company
("Ultimate Beneficiary") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

No funds (which are material either individually or in the aggregate) have been received by the Company from any persons or entities,
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 any other persons or entities identified in any manner whatsoever by or on behalf
of the funding party ("Ultimate Beneficiary") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(v) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as
search or survey), that has not been recorded in the books of accounts.

56 The company has used accounting software for maintaining its books of accounts for the financial year ended March 31, 2025 which has a
feature of recording audit trail (edit log) facility and the same has operated throuhout the year for all relevant transactions recorded in the
software

57 During the year the Himforge Rings LLP is incorporated as subsidiary of the company and the company has agreed to contribute 75%
contribution of Himforge Rings LLP by entering into an LLP agreement. The LLP was incorporated on 26.11.2024. However, the company
has neither made any capital contribution to the LLP nor the LLP has commenced any activity or operations during the year. There are no
financial transactions in LLP during the year and as such no consolidated accounts have been prepared as there are nil transactions.

58 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule
III of Companies Act, 2013.

As per our report of even date

For PRA ASSOCIATES On behalf of the Board

Chartered Accountants

Firm Registration Number: 2355N Sd/- Sd/-

Harsh Khurana Vijay Aggarwal

Chief Financial Officer Managing Director

Sd/- DIN: 00094141

Praveen Kumar Aggarwal

Partner Sd/- Sd/-

Himanshu Kalra Rajiv Aggarwal

Membership No. 81526 Company Secretary Jt. Managing Director

Place: Chandigarh DIN: 00094198

Date: 24.05.2025 Date: 24.05.2025

UDIN: 25081526BOEOGH9719