B11 PROVISIONS

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result
of a past event, the Company will probably be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When the provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows (when the effect of the
time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will
be received and the amount of the receivable can be measured reliably.

B12 WARRANTIES

The estimated liability for product warranties is recorded when products are sold. These estimates are
established using historical information on the nature, frequency, and average cost of warranty claims
and management estimates regarding possible future incidence based on corrective actions on product
failures. The timing of outflows will vary as and when warranty claims will arise- typically six months to
one year.

B13 CURRENT AND NON-CURRENT CLASSIFICATION
Current Assets

An asset shall be classified as current when it satisfies any of the following criteria:

(a) It is expected to be realized in, or is intended for sale or consumption in, the company’s normal
operating cycle;

(b) It is held primarily to be traded.

(c) It is expected to be realized within twelve months after the reporting date, or

(d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting date.

All other assets shall be classified as non-current.

Current Liabilities:

A liability shall be classified as current when it satisfies any of the following criteria:

(a) It is expected to be settled in the company’s normal operating cycle;

(b) It is held primarily to be traded;

(c) It is due to be settled within twelve months after the reporting date: or

(d) The company does not have an unconditional right to defer settlement of the liability for at least
twelve months after the reporting date. Terms of a liability that could at the option of the counterparty,
result in its settlement by the issue of equity instruments do not affect its classification. All other
liabilities shall be classified as non-current.

B14 DEFERRED TAX & CURRENT TAX

a. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences.
Deferred tax assets are generally recognized for all deductible temporary differences to the extent
that taxable profits will probably be available against which those deductible temporary differences
can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference
arises from the initial recognition (other than in a business combination) of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax
liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the
tax rates that are expected to apply in the period in which the liability is settled or the asset realized,
based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the
reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from how the Company expects, at the end of the reporting period, to recover or settle the
carrying amount of its assets and liabilities.

b. Current and deferred tax for the year

The income tax expense or credit for the year is the tax payable on the current year’s taxable
income based on the applicable income tax rate adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences and to unused tax losses.

Current and deferred tax are recognized in statements of profit or loss, except when they relate to
items that are recognized in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognized in other comprehensive income or directly in equity
respectively

B15 EARNING PER SHARE (EPS)

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the year. To
calculate Diluted Earnings per Share, the net profit or loss for the year attributable to equity shareholders
and the weighted average number of shares outstanding during the year are adjusted for the effects of
all dilutive potential Equity Shares.

B16 LEASE

The Company’s lease asset classes primarily consist of leases for land and buildings. The Company
assesses whether a contract contains a lease, at the inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a while in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the
Company assesses whether:

• The contract involves the use of an identified asset

• The Company has substantially all of the economic benefits from use of the asset through the period
of the lease and

• The Company has the right to direct the use of the asset

At the date of commencement of the lease, the Company recognizes a right-of-use (ROU) asset and a
corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a
term of 12 months or less (short-term leases) and low-value leases. For these short-term and low-value
leases, the Company recognizes the lease payments as an operating expense on a straight-line basis
over the term of the lease.

Certain lease arrangements include the option to extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities include these options when it is reasonably certain that they
will be exercised.

The ROU assets are initially recognized at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the commencement date of the lease plus any
initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated
depreciation and impairment losses.

ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of
the lease term and the useful life of the underlying asset. ROU assets are evaluated for recoverability
whenever events or changes in circumstances indicate that their carrying amounts may not be
recoverable. For impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to
sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate
cash flows that are largely independent of those from other assets. In such cases, the recoverable amount
is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease
payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily
determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease
liabilities are remeasured with a corresponding adjustment to the related ROU asset if the Company
changes its assessment of whether it will exercise an extension or a termination option.

Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments
have been classified as financing cash flows.

C. Cash Flow Statement

A cash flow statement is prepared segregating the cash flows from operating, investing, and financing
activities. Cash flow from operating activities is reported using an indirect method. Under the indirec
method, the net profit/ (loss) is adjusted for the effects of:

• Transactions of a non-cash nature;

• Any deferrals or accruals of past or future operating cash receipts or payments and,

• All other items of income or expense associated with investing or financing cash flows.

The cash flows from operating, investing, and financing activities of the Company are segregated based
on the available information. Cash and cash equivalents (including bank balances) are reflected as such
in the Cash Flow Statement. Those cash and cash equivalents that are not available for general use as o
the date of the Balance Sheet are also included under this category with a specific disclosure.

D. Borrowing Cost

General and specific borrowing costs that are directly attributable to the acquisition, construction
or production of a qualifying asset are capitalized during the period that is required to complete
and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a
substantial period to get ready for their intended use or sale. Investment income earned on the temporary
investment of specific borrowings pending their expenditure on qualifying assets is deducted from the
borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which
they are incurred.

As per our report of even date attached

For Gianender & Associates By Order of the Board for RACL Geartech Ltd

Chartered Accountants
FRN 004661N

SHASHANK RAMESH

G.K. Agrawal GURSHARAN SINGH JAGDISH KESWANI ANlKHINDl

(Partner) (Chairman & M.D.) (Director) m' tt¹

M.No : 081603 DIN: 00057602 DIN: 02146267

DIN: 07787889

MALINI BANSAL ANIL SHARMA

JITENDER JAIN

_(CFO) ^{(Director) (Director)}

^Place : ^Delhi (C ) DIN: 00167993 DIN: 00157911

Date : 7^th May 2025

UDIN: 25081603BMJJYT1513 NARINDER PAUL KAUR HPS BEDI NEHA BAHAL

(Director) (Director) (Company Secretary)

DIN: 02435942 DIN: 05217488 ICSI MEM. NO. 40272

Place: Noida
Date: 7^th May 2025