credit loss experience with forward-looking information. At every reporting date, the historical observed default rates are
updated and changes in the forwardlooking estimates are analyzed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is
a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
The Company’s historical credit loss experience and forecast of economic conditions may also not be representative of
customer’s actual default in the future. The information about the ECLs on the Company’s trade receivables and contract
assets is disclosed in Notes.

i) Property, Plant and Equipment, investment properties and intangible assets

Property, Plant and Equipment, investment property, and intangible assets represent significant portion of the asset base
of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of assets expected
useful life and expected value at the end of its useful life. The useful life and residual value of Company’s assets are
determined by Management at the time asset is acquired and reviewed periodically including at the end of each year. The
useful life is based on historical experience with similar assets in anticipation of future events, which may have impact on
their life such as change in technology.

j) Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing
rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over
a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use
asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay’, which requires
estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions)
or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using
observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.

k) Revenue from contracts with customers

The Company applies the judgements in respect to transactions relating to tooling development, Principal versus agent
consideration that significant financing component in a contract that significantly affect the determination of the amount
and timing of revenue from contracts with customers For more details, refer accounting policy on revenue from contract
with customers.

AUDITORS’ REPORT

Certified in terms of our separate report of even date annexed.

For AKR & Associates Sanjay Garg Dheeraj Garg

Chartered Accountants Virander Kumar Arya Managing Director

ICAI Firm Registration Number: 021179N Sukhvinder Khanna

Shashi Bhushan Gupta

p^{er Kai|ash Kumar} Sanjay Surajprakash Sahni ^{Mohan Joshi}

Partner Deva Bharathi Reddy Deputy Managing Director

Membership Number : 505972 Di_rect_ors

Manohar Lal Jain
Executive Director

Date: 15th May 2025 Kanika Sapra Naveen Sorot

Place: Chandigarh Company Secretary Chief Financial Officer