n) Provisions and Contingent Liabilities:

I. Provision

Provision is recognized when the company has a
present legal or constructive obligation as a result
of past events, it is probable that an outflow of
resources will be required to settle the obligation
and the amount can be reliably estimated.

Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period.

These provisions are reviewed at the end of each
reporting period and are adjusted to reflect the
current best estimates.

II. Contingent Liabilities:

The Company uses significant judgements to
assess contingent liabilities. Contingent liabilities
are recognized when there is a possible obligation
that arises from past events and whose existence
will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events
not wholly within the control of the entity or a
present obligation that arises from past events but
is not recognized because

(a) it is not probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation; or

(b) the amount of the obligation cannot be
measured with sufficient reliability a disclosure
is made by way of contingent liability.

Contingent assets are neither recognised nor
disclosed in the standalone financial statements.

o) Segment Reporting:

As the Company is operating in only one segment (i.e)
in the business of manufacturing and sale of automotive
components, there is no disclosure to be provided
under IND AS 108 "Operating Segments." The Company
primarily operates in India and there are no other
significant geographical segments.

p) Cash and Cash Equivalents:

For the purpose of presentation in the statement of
cash flows, cash comprises cash on hand and cash
equivalents are short- term, highly liquid investments
that are readily convertible to known amounts of cash
which include, deposits held with financial institutions
with original maturities of three months or less that are
readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value,
and bank overdrafts. Bank overdrafts are shown under
borrowings in current liabilities in the balance sheet.

q) Financial Instruments:

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity. Financial assets and
financial liabilities are recognized when the company
becomes a party to the contractual provisions of the
relevant instrument and are initially measured at fair value
except for trade receivables which are initially measured
at transaction price. Transaction costs that are directly
attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value measured on
initial recognition of financial asset or financial liability.

I. Financial Assets:

Classification:

The company classifies its financial assets in the following
categories:

• Those to be measured subsequently at fair value
(either through other comprehensive income, or
through profit or loss), and

• Those measured at amortized cost

The classification depends on the entity's business model
for managing the financial assets and the contractual
term of the cash flow.

Measurement:

All financial assets are initially recognized at fair value
and are subsequently measured at amortized cost or fair
value based on their classification.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised
cost if these financial assets are held within a business
whose objective is to hold these assets in order to collect
contractual cash flows and the contractual terms of the
financial assets give rise on specified dates to cash flows
that are solely payments of principal and interest on the
principal amount outstanding.

Financial assets at fair value through other
comprehensive income

Financial assets are measured at fair value through other
comprehensive income if these financial assets are held
within a business whose objective is achieved by both
collecting contractual cash flows on specified dates
that are solely payments of principal and interest on
the principal amount outstanding and selling financial
assets. The Company has made an irrevocable election
to present subsequent changes in the fair value of equity
investments not held for trading in other comprehensive
income.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit
or loss unless they are measured at amortised cost or at
fair value through other comprehensive income on initial
recognition. The transaction costs directly attributable
to the acquisition of financial assets and liabilities at fair
value through profit or loss are immediately recognised
in statement of profit and loss.

Transaction costs arising on acquisition of a financial
asset are accounted as below:

Debt Instruments:

Subsequent measurement of debt instruments
depends on the company's business model for
managing the asset and the cash flow characteristics
of the asset. The following are the measurement
categories into which the company classifies its
debt instruments.

Amortized cost:

Assets that are held for collection of contractual
cash flows where those cash flows represent solely
payments of principal and interest are measured at
amortized cost. A gain or loss on debt instrument
that is subsequently measured at amortized
cost and is not a part of a hedging relationship is
recognized in profit or loss when the asset is de¬
recognized or impaired. Interest income on these
financial assets is included in finance income using
effective interest rate method.

Fair Value through Other Comprehensive Income
and Fair Value through profit/loss:

Assets that do not meet the criteria for measurement
at amortized cost are measured at Fair value
through other comprehensive income unless the
company elects the option to measure the same
at fair value through profit or loss to eliminate an
accounting mismatch.

Equity Instruments:

The company subsequently measures all
investments in equity instruments other than
investments in subsidiary companies at fair value.
Gain/Loss arising on fair value is recognized in the
statement of profit and loss. Dividend from such
investments are recognized in profit or loss as
other income when the company's right to receive
payments is established.

Investment in Subsidiary Companies:

Investments in subsidiary companies are measured
at cost less provision for impairment, if any.

Trade receivables:

Trade receivables are measured at amortized cost
and are carried at values arrived after deducting
allowances for expected credit losses and
impairment, if any.

Impairment:

The company accounts for impairment of financial
assets based on the expected credit loss model. The
company measures expected credit losses on a case
to case basis.

Derecognition and write-off:

A financial asset is derecognized only when:

a) The contractual right to receive the cash flows
of the financial asset expires or

b) The company has transferred the rights to
receive cash flows from the financial asset or

c) The company retains the contractual rights to
receive the cash flows of the financial asset but
assumes a contractual obligation to pay the
cash flows to one or more recipients.

Further a financial asset is derecognized only
when the company transfers all risks and rewards
associated with the ownership of the assets.

The gross carrying amount of a financial asset
is directly reduced and an equal expenditure is
recognized when the entity has no reasonable
expectations of recovering a financial asset in its
entirety or a portion thereof. A write-off constitutes
a derecognition event.

II. Financial Liabilities:

Financial Liabilities are initially recognised at fair value,
net of transaction cost incurred. Financial Liabilities are
subsequently measured at amortised cost (unless the
entity elects to measure it at Fair Value through Profit and
Loss Statement to eliminate any accounting mismatch).
Any difference between the proceeds (net of transaction
cost) and the redemption amount is recognised in profit
or loss over the period of the liability, using the effective
interest method. Financial Liabilities are removed from
the balance sheet when the obligation specified in
the contract is discharged, cancelled, or expired. The
difference between the carrying amount of a financial
liability that has been extinguished or transferred to
another party and the consideration paid, including any
non-cash assets transferred or liabilities assumed, is
recognised in profit or loss as other gain / (loss). Financial
Liabilities are classified as current liabilities unless the
company has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting
period.

r) Borrowing costs consist of interest and other costs
that an entity incurs in connection with the borrowing
of funds. Borrowing costs (net of interest earned on
temporary investments) directly attributable to the
acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready
for its intended use or sale are capitalized as part of the
cost of the asset. Interest is computed using respective
rates of interest of loans taken for acquisition of specific
assets (i.e. qualifying assets) for which the loans have
been granted. All other borrowing costs are expensed in
the year in which they occur

31. Investment in Equity:

The company has equity investment aggregating to ' 20,877.28 lakhs in UCAL Holdings Inc., USA (previously Amtec
Precision Products Inc.,) a wholly owned subsidiary. The management carried out an impairment test of this investment
and concluded that a provision for impairment was necessary. Accordingly, a provision of ' 10,509 lakhs has been created
towards impairment of this investment during the year 2019-20.

32. Windmill Power Generation:

Electricity charges debited to Profit & Loss account for the year ended 31^st March, 2025 is net of ' 127.15 Lakhs (Previous
year ' 128.17 lakhs) being the electricity generated through company owned Wind Turbine Generators.

33. Managerial Remuneration:

Managerial Remuneration provided/ paid for the year ended 31^st March 2025 based on the approval of the shareholders
stands at ' 454.66 lakhs.

34. Deferred Tax

During the year ended 31^st March 2025, the company has created a deferred tax liability of ' 754.60 lakhs.

Significant component of Deferred Tax asset is the set off benefits likely to accrue on account of unabsorbed depreciation /
business loss under the Income Tax Act, 1961 towards trade receivables & loan due from wholly owned foreign subsidiary
written off in FY 2017-18, and provision for impairment of investment in the said subsidiary created in the FY 2019-20.

Other components of deferred tax Asset and deferred tax liability are furnished under Note No.5. Based on the orders on
hand and expected improvements in the performance of the company as a whole, in the view of the Management, the
company will have adequate taxable income in future to utilize the carried forward tax losses.

The Company has elected to exercise the option given under section 115BAA of the Income Tax Act,1961 as introduced by
the Taxation Laws (Amendment) Ordinance, 2019 (since replaced by the Taxation Laws (Amendment) Act, 2019) to avail a
tax rate of 22% plus surcharge of 10% and cess of 4%. Consequently, the Company has become ineligible to carry forward
MAT Credit which has resulted in write-off of MAT Credit amounting to ' 1,563.80 Lakhs. Further, Deferred Tax Asset (DTA)
has been reduced by '707.07 Lakhs as a result of the combined effect of not being eligible to utilise the tax credits relating
to carried forward additional depreciation and change in tax rates. Thus, the tax charge for the year has increased by
'2,270.88 Lakhs. On account of the Company exercising the said option, no tax needs to be paid on book profit under
section 115JB (MAT Tax) of the Income Tax Act, 1961 and based on the tax workings, no provision for tax is considered
necessary for the year under audit. Accordingly, the provision for MAT Tax created during the year until December 31, 2023
has been written back

Fair Value Hierarchies as per Indian Accounting Standard 113 - Fair Value measurement:

Level 1: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date. The assets included in this hierarchy are listed equity shares that are carried at fair value
using the closing prices of such instruments as at the close of the reporting period.

Level 2: Level 2 hierarchy uses inputs that are inputs other than quoted prices included within level 1 that are observable
for the asset or liability, either directly or indirectly. As on the balance sheet date there were no assets or liabilities for which
the fair values were determined using Level 2 hierarchy.

Level 3: Level 3 hierarchy uses inputs that are not based on observable market data (unobservable inputs). Fair values are
determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from
observable current market transactions in the same instrument nor are they based on available market data.

There were no transfers between fair value hierarchies during the reported years. The company's policy is to recognize
transfers in and transfers out of fair value hierarchy levels as at the end of the reporting period.

38. Financial Risk Management:

The company is exposed primarily to risks in the form of Market Risk, Foreign Currency Risk, Liquidity Risk, Interest Rate Risk,
Equity Price Risk and Credit Risk. The risk management policies of the company are monitored by the board of directors. The
focus of the management is to assess the unpredictability of the financial environment and to mitigate potential adverse
effects on the financial performance of the Company.

The nature and extent of risks have been disclosed in this note.

a) Market Risk

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. . Such changes in the values of financial instruments may result from changes in the foreign currency exchange
rates, interest rates, credit, liquidity and other market changes. The Company's Market risk is primarily on account of:
currency risk, interest rate risk and other price risk.

i. Currency Risk:

The company has foreign currency receivable and payables denominated in currency other than INR exposing the
company to currency risk. The company's significant foreign currency exposures at the end of the reporting period
expressed in INR is as below:

a) Liquidity Risk:

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The company
has obtained fund and non-fund based working capital limits from various bankers which is used to manage the
liquidity position and meet obligations on time.

b) Credit Risk:

Credit Risk is the risk that one party to a financial instrument will cause a financial loss for the other party by
failing to discharge an obligation. The management evaluates the Credit Risk of individual financial assets at
each reporting date. An expected credit loss is recognized if the Credit Risk has increased significantly since the
initial recognition of the financial instrument. In general, the Company assumes that there has been a significant
increase in Credit Risk since initial recognition if the amounts are 30 days past due from the initial or extended due
date. However, in specific cases the Credit Risk is not assessed to be significant even if the asset is due beyond a
period of 30 days depending on the credit history of the customer with the Company and business relation with
the customer. A default on a financial asset is when the counter party fails to make contractual payments within
1 year from the date they fall due from the initial or extended due date. The definition of default is adopted given
the industry in which the entity operates.

Write off of Financial Assets:

To the extent a financial asset is irrecoverable, it is written off by recognizing an expense in the statement of profit and
loss. Such assets are written off after obtaining necessary approvals from appropriate levels of management when it is
estimated that there is no realistic probability of recovery and the amount of loss has been determined. Subsequent
recoveries, if any of amounts previously written off are recognized as an income in the statement of profit and loss in
the period of recovery.

The company considers the following to be indicators of remote possibility of recovery:

a) The counterparty is in continuous default of principal or interest payments

b) The counterparty has filed for bankruptcy

c) The counterparty has been incurring continuous loss during its considerable number its past accounting periods

The company assesses changes in the credit risk of a financial instrument taking into consideration ageing of bills
outstanding on the reporting date, responsiveness of the counterparty towards requests for payment, forward looking
information including macroeconomic information and other party specific information that might come to the notice
of the company. In general, it is assumed that the counterparty continues his credit habits in future.

During the year 2017-18, the company wrote off ' 2,854.06 Lakhs of Trade Receivables and '12,337.79 Lakhs of loan
receivable from Ucal Holding Inc., (Previously Amtec Precision Products Inc), wholly owned subsidiary. The company is
awaiting approval from RBI for the said write off.

The company does not hold any security/collateral against its trade receivables, lease receivables, loans, and deposits.
Overview of Expected Credit Loss (ECL) principles:

In accordance with Ind AS 109, the Company uses ECL model, for evaluating impairment of financial assets other than
those measured at fair value through profit and loss (FVTPL).

An expected credit loss is recognized if the Credit Risk has increased significantly since the initial recognition of the
financial instrument. In general, the Company assumes that there has been a significant increase in Credit Risk since
initial recognition if the amounts are 30 days past due from the initial or extended due date. However, in specific cases
the Credit Risk is not assessed to be significant even if the asset is due beyond a period of 30 days depending on the
credit history of the customer with the Company and business relation with the customer. A default on a financial asset
is when the counter party fails to make contractual payments within 1 year from the date they fall due from the initial
or extended due date. The definition of default is adopted given the industry in which the entity operates.

Trade receivables:

Trade receivables are measured at amortized cost and are carried at values arrived after deducting allowances for
expected credit losses and impairment, if any. Purchase orders are released by customers after due verification from
companies end in line with the discussion and development undertaken with individual customers. The Invoices are
raised after PO is received from individual customers.

The company has no instances of credit loss or receivable becoming non-recoverable based on the practices followed
by the company. There are certain deductions in the invoices raised from the customers which are in respect of (i)
Shortage of quantity received, (ii) Price differentials, (iii) Warranty debits, and (iv) line rejections as and when reported.

All the above reported instances except for the warranty deduction are related to certain procedural laps at and in
some cases customer end and it can be addressed only after occurrence of loss and company cannot forecast the
same. Internal controls have been strengthened to avoid such recurrences and also the extent of such recoveries have
reduced during the current financial year.

In respect of warranty deduction, company has already documented guidelines for accounting expected credit loss.

As the company follows the practice of raising purchase orders based on the customer requirements and producing
the desired quantities based on customers' orders in hand the customer deduction and rejections are properly been
accounted in the books of account as and when the same arises and the same are adjusted against future receipts and
invoices with customer. The risk of expected credit loss on this front is NIL except for warranty recoveries.

Investments:

Investments of surplus funds are made only with approval of Board of Directors. Investments primarily include
investments in equity instruments of various listed entities and power generation companies. The Company does not
expect significant credit risks arising from these investments.

53. Other statutory information :

a) The title deeds (including those that have been deposited with banks whose duplicate deeds are held by the Company)
of all the immovable properties (other than properties where the company is the lessee and the lease agreements are
duly executed in favour of the lessee) as disclosed in the Standalone Financial Statements are held in the name of the
Company as at the Balance Sheet date.

b) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

c) The company has not revalued any of its property plant and equipment,intangible assets during the year

d) The Company has not traded or invested in Crypto currency or virtual currency during the financial year.

e) The Company has not advanced or loaned or invested funds to any persons or entities, including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

• Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or,

• Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

f) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

• Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or,

• Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

g) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961) There are no previously unrecorded income and
related assets in the books of accounts during the year.

h) The Company does not have any transactions with companies struck off under Section 248 of the Companies Act, 2013
or Section 560 of Companies Act, 1956.

i) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.

54. The Company is operating in only one segment (i.e) in the business of manufacturing and sale of automotive components.
The Company primarily operates in India and there are no other significant geographical segments. Hence, there is no
disclosure to be provided under IND AS 108 "Operating Segments.

55. In the absence of confirmation of balances pertaining to Trade Receivables and Trade Payables, the book balances of the
same have been adopted.

56. The Company is not declared as a willful defaulter by any bank or financial institution or other lender.

57. There are no charge or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

58. Cash flows are reported using the indirect method, whereby profit before tax 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 item of income or
expenses associated with investing or financing cash flows. Cash flows from operating, investing and financing activities are
disclosed separately.

59. Previous year's figures have been regrouped wherever necessary to conform to current year's grouping.

The accompanying notes are an integral part of these financial statements

As per our Report Attached of even date For and on behalf of the Board of Directors

For M/s R. Subramanian and Company LLP RAM RAMAMURTHY JAYAKAR KRISHNAMURTHY

Chartered Accountants Whole-Time Director Chairman and Managing Director

ICAI Regd. No. 004137S/S200041 DIN: 06955444 DIN: 00018987

KUMARASUBRAMANIAN R S. NARAYAN M. MANIKANDAN

Partner Company Secretary Chief Financial Officer

Membership No.021888 Membership No. A15425 Membership No. 231640

Place: Chennai

Date: 30^th May 2025

UDIN : 25021888BMMBJA3002