2.17 Provisions, contingent liabilities and contingent assets

(a) 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.

(b) Contingent liabilities

Contingent liabilities are disclosed for

(i) Possible obligations which will be confirmed only by the future events not wholly within the control of the
company or

(ii) Present obligations arising from past events where it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

(c) Contingent assets

Contingent assets are not recognised in the financial statements. Contingent assets if any, are disclosed in the
notes to the financial statements.

2.18 Taxes

Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current
tax and deferred tax.

Current tax

Current tax is the amount of income taxes payable in respect of taxable profit for a period. Taxable profit differs from
‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are
taxable or deductible in other years and items that are never taxable or deductible under the Income Tax Act, 1961.

Current tax is measured using tax rates that have been enacted by the end of reporting period for the amounts
expected to be recovered from or paid to the taxation authorities.

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 under Income Tax Act,
1961.

Deferred tax liabilities are generally recognized for all taxable temporary differences. However, in case of temporary
differences that arise from initial recognition of assets or liabilities in a transaction (other than business combination)
that affect neither the taxable profit nor the accounting profit, deferred tax liabilities are not recognized. Deferred tax
assets are generally recognized for all deductible temporary differences to the extent it is probable that taxable profits
will be available against which those deductible temporary difference can be utilized. In case of temporary differences
that arise from initial recognition of assets or liabilities in a transaction (other than business combination) that affect
neither the taxable profit nor the accounting profit, deferred tax assets are not recognized.

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 the benefits of part or all of such
deferred tax assets to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by
the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled.

Minimum alternate tax (MAT)

Deferred tax assets include Minimum alternate tax (MAT) paid in accordance with the tax laws in India, which is likely
to give future economic benefits in the form of availability of set off against future income tax liability. Accordingly,
MAT is recognised as deferred tax asset in the balance sheet when the asset can be measured reliably, and it is
probable that the future economic benefit associated with asset will be realised.

Presentation of current and deferred tax

Current and deferred tax are recognized as income or an expense in the statement of profit and loss, except when
they relate to items that are recognized in other comprehensive income, in which case, the current and deferred tax
income/expense are recognized in other comprehensive income.

The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the
recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability
simultaneously. In case of deferred tax assets and deferred tax liabilities, the same are offset if the Company has a
legally enforceable right to set off corresponding current tax assets against current tax liabilities and the deferred tax
assets and deferred tax liabilities relate to income taxes levied by the same tax authority on the Company.

2.19 Research and development

(i) All revenue expenses related to research and development including expenses in relation to development of
product/processes which does not meet the criteria for recognition as an intangible Assets, are charged to the
statement of profit and loss in the year in which it is incurred.

(ii) Items of property, plant and equipment and acquired intangible assets utilized for research and development
are capitalized and depreciated in accordance with the policies stated for property, plant and equipment and
intangible assets.

2.20 Employees benefits

(i) Provident fund is a defined contribution scheme and the contribution as required by the statute paid to
government provident fund and it is charged to the statement of profit and loss.

(ii) Gratuity liability is a defined benefit obligation and is funded through a gratuity fund administered by trustees
and managed by the Life Insurance Corporation of India. The Company accounts for liability for future gratuity
benefits based on actuarial valuation carried out as at the end of each financial year, using the projected unit
credit method. Actuarial gain and/or losses are recognised in the statement of other comprehensive income.

(iii) The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees
are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based
on the number of days of unutilized leave at each balance sheet date on the basis of an independent actuarial
valuation carried out as at the end of each financial year, using the projected unit credit method. Actuarial gain
and/or losses are recognised in the statement of profit and loss.

2.21 Cash and cash equivalents

Cash and cash equivalents for the purpose of cash flow statement comprise cash and cheques in hand, bank
balances, demand deposits with banks and other short term highly liquid investments where the original maturity is
three months or less.

2.22 Earnings per share

Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the
company by the weighted average number of equity shares outstanding during the period. For the purpose of
calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential
equity shares.

2.23 Government grants

Government grants (including export incentives, incentives on specified goods manufactured in the eligible unit) are
recognized only when there is reasonable assurance that the Company will comply with the conditions attached to
them and the grants will be received.

Government grants relating to income are recognized in profit or loss on a systematic basis over the periods in which
the Company recognizes as expenses, the related costs for which the grants are intended to compensate.

2.24 Exceptional item

When items of income and expense within statement of profit and loss from ordinary activities are of such size, nature
or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the nature and
amount of such material items are disclosed separately as exceptional items.

2.25 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating
Decision Maker (CODM) of the Company. The Chief Operating Decision Maker (CODM) is responsible for allocating
resources and assessing performance of the operating segments of the Company.

The company has opted to provide segment information in its consolidated Ind AS financial statements in accordance
with para 4 of Ind AS 108 - operating segments.

1. Securities premium

Securities premium reserve represents premium received on equity share issued, which can be utilised only in
accordance with the provisions of the Companies Act, 2013 (the Act) for specified purposes.

2. Capital reserve

Capital reserve represent reserve created pursuant to the business combinations upto year end.

3. Revaluation reserve

Revaluation reserve represents reserve created on revaluation of some of Property, Plant and Equipment (PPE) of
the Company which can be transfer to general reserve only on disposal of those assets.

4. General reserve

General reserve is created from time to time by transferring profits from retain earning and can be utilised for purposes
such as dividend pay out, bonus issued etc. and it is not an item of other comprehensive income.

5. Other Comprehensive Income (OCI)

OCI presents the cumulative gain and losses arising due to remeasurement of retirement benefit obligations measured
at Fair Value Through Other Comprehensive Income (FVTOCI).

34. EMPLOYEE BENEFITS

(a) Defined contribution plan

The Company makes contribution towards recognized provident fund to defined contribution retirement benefit
plan for qualifying employee. Under the plan, the Company is required to contribute a specified percentage of
payroll cost to the retirement benefit plan to fund the benefit.

The Company has recognized an amount of ' 326.11 lakhs (P.Y. ' 287.56 lakhs) as expense under the defined
contribution plan in the statement of profit and loss for the year.

(b) Defined benefit plan

The Company makes annual contributions to Employees Group Gratuity with LIC, a funded defined benefit plan
for employees of the Company.

Actuarial value of plan assets and the present value of the defined benefit obligations for gratuity were carried out
as on 31^st March every year. The present value of the defined benefit obligations and the related current service
cost and past service cost were measured using the projected unit credit method, which recognizes each period
of service as giving rise to additional unit of benefit entitlement and measures each unit separately to built up the
final obligation.

Disclosure in case of non-provision of interest due to contractual terms with MSME vendors can be as under

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprises Development Act, 2006"
is based on the information available with the Company regarding the status of registration of such vendors under the
said act, As per the intimation received from them on request made by the Company. There are no overdue principle
amount/interest payable amounts for delayed payments to such vendors at the balance sheet date. The payment is
made to vendors according to terms & conditions mutually agreed to both parties and accordingly there is no delay
in payment to these vendors & no interest liability therefore.

37. SEGMENT INFORMATION

The Company is engaged in manufacturing of automobile components. For the purpose of disclosure of segment
information, the Company considers this activity as a single business segment.

38. INFORMATION ON RELATED PARTY TRANSACTIONS AS REQUIRED BY IND AS-24 - RELATED PARTY
DISCLOSURES (AS IDENTIFIED BY MANAGEMENT)

List of related parties with whom the Company has entered into transactions during the year
(a) Subsidiaries

Direct subsidiaries

Banco Gaskets (India) Limited

NRF Holding B.V. (Formerly known as Nederlands Radiateuren Fabriek B.V.)

Banco New Energy Cooling Systems Limited
Indirect subsidiaries & group companies

Subsidiary & group companies of the wholly owned subsidiary, NRF Holding B.V. (Formerly known as
Nederlands Radiateuren Fabriek B.V.), Netherlands

NRF Thermal Engineering BV
NRF France SARL
NRF Deutschland GmbH
NRF Espana S.A.U.

NRF Poland sp.z.o.o.

(B) FAIR VALUE MEASUREMENTS

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements
are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts
would be significantly different from the values that would eventually be received or settled.

The Company's financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company's
financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, trade
receivables and other receivables.

Fair value hierarchy

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity
securities) is based on quoted market prices at the end of the reporting period for identical assets or liabilities. The
mutual funds are valued using the net assets value (NAV) available in open market. The quoted market price used
for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds,
over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market
data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument
are observable, the instrument is included in level 2.

(C) CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves
attributable to the equity shareholders of the Company. The primary objective of the Company when managing
capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to
maximize shareholder value.As at 31^st March, 2025, the Company has only one class of equity shares and has low
debt. Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain
or achieve an optimal capital structure, the Company allocates its capital for distribution as dividend or re-investment
into business based on its long term financial plans.

(D) FINANCIAL RISK MANAGEMENT - OBJECTIVES AND POLICIES

The Company's activities expose it to a variety of financial risks are market risk, credit risk, liquidity risk. The
Company has a risk management policy which covers risks associated with the financial assets and liabilities. The
risk management policy is approved by the Board of Directors. The focus of the policy is to assess the unpredictability
of the financial environment and to mitigate potential adverse effects on the financial performance of the Company.

(1) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risks are interest rate risk, currency risk and other
price risk.

(a) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Since the Company has insignificant interest bearing
borrowings, the exposure to risk of changes in market interest rates is minimal. The Company has not used
any interest rate derivatives.

(b) Foreign currency risk

The Company operates internationally and portion of the business is transacted in several currencies and
consequently the Company is exposed to foreign exchange risk through its sales and services in overseas
markets and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange
rate exposure is partly balanced by purchasing of goods, commodities and services in the respective
currencies.

Particulars of unhedged foreign currency exposures as at the reporting date are given as part of note 35.
The below table demonstrates the sensitivity to a 5% increase or decrease in the foreign currency against
INR, with all other variables held constant. The sensitivity analysis is prepared on the net unhedged
exposure of the Company as at the reporting date. 5% represents management's assessment of reasonably
possible change in foreign exchange rate.

(2) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company's receivables from customers and
investment securities. Credit risk arises from cash held with banks and financial institutions, as well as credit
exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to
the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses
in financial assets. The Company assesses the credit quality of the counterparties, taking into account their
financial position, past experience and other factors.

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The demographics of the customer, including the default risk of the industry and country in which the customer
operates, also has an influence on credit risk assessment. The Company's exposure are continuously monitored.

(3) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due.

The Company consistently generates sufficient cash flow from operations to meet its financial obligations as and
when they fall due.

The tables below provides detail regarding the contractual maturities of significant financial liabilities As at
31^st March, 2025 and 31^st March, 2024.

46. GOVERNMENT GRANTS

The Company has a unit in Telangana. The Company is eligible for government grants in accordance with the T-IDEA
(Telangana State Industrial Development and Entrepreneur Advancement) Incentive Scheme 2014, the Company is
eligible for following grants with reference to the unit established in Telangana.

(a) 100% of reimbursement of stamp duty and transfer duty paid on purchase of land, 25% rebate in land cost
in Industrial Parks and 15% investment subsidy subject to a maximum capital of ' 20 lakhs. Accordingly, the
Company has recognized deferred grant of ' 29.30 lakhs, which is recognized as income on a straight line basis
over the period of scheme of 30 years. An amount of ' 0.98 lakhs is recognized as income under Other Income
in note 26. An amount of ' 20.51 lakhs remains unamortized As at 31^st March 2025, which is reflected under
note 19 non-current liabilities and note 23 other current liabilities.

(b) Reimbursement of 100% of net VAT/CST/SGST for a period of 5 years from the date of commencement of
commercial production. Accordingly, the Company has recognized an income of NIL (P.Y. ' NIL), being the
amount of refund of net SGST paid by the Company to the Government of Telangana.

47. Business Combination

On February 15, 2025, Banco Products (India) Limited acquire the busineess of Padra Coating Works LLP on a slump
sale basis as going concern at one time lumpsum consideration of ' 25,25,000.

This transaction is a strategic move driven by the critical nature of our operations and sensitive requirements of our
supplies to Original Equipment Manufacturers (OEMs).

The said transaction will enable the Company to gain direct control and oversight over the quality of powder-coated
parts, ensuring seamless delivery and adherence to the highest standards.