2.17 Provisions and Contingent Liabilities
Provisions

A provision is recognised when the Company has a present obligation (legal or constructive) as a result of 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 net of any reimbursement. These estimates are reviewed at each
reporting date and adjusted to reflect the current best estimates.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.

Onerous Contracts

If the Company has a contract that is onerous, the present obligation under the contract is recognised and
measured as a provision. However, before a separate provision for an onerous contract is established, the
Company recognises any impairment loss that has occurred on assets dedicated to that contract.

An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot
avoid because it has the contract) of meeting the obligations under the contract exceed the economic benefits
expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from
the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to
fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the contract (i.e., both incremental
costs and an allocation of costs directly related to contract activities).

Contingent liabilities

Contingent liability is:

(a) a possible obligation arising 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

(b) a present obligation that arises from past events but is not recognized because;

- it is not probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, or

- the amount of the obligation cannot be measured with sufficient reliability.

- the Company does not recognize a contingent liability but discloses its existence and other required
disclosures in notes to the financial statements, unless the possibility of any outflow in settlement is remote

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

2.18 Dividend distributions

The Company recognizes a liability to make payment of dividend to owners of equity when the distribution is
authorized and is no longer at the discretion of the Company and is declared by the shareholders. A corresponding
amount is recognised directly in equity.

2.19 Current versus non - current classification

The Company segregates assets and liabilities into current and non-current categories for presentation in the
balance sheet after considering its normal operating cycle and other criteria set out in Ind AS 1, “Presentation of
Financial Statements”. For this purpose, current assets and liabilities include the current portion of non-current
assets and liabilities respectively. Deferred tax assets and liabilities are always classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and
cash equivalents. The Company has identified period up to twelve months as its operating cycle. The terms of the
liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do
not affect its classification.

Deferred tax assets and deferred tax liabilities are classified as non- current assets and liabilities.

3. Significant accounting judgements, estimates and assumptions:

The preparation of the Company's financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in
future periods.

Judgements

In the process of applying the Company's accounting policies, management has made the following judgements,
which have the most significant effect on the amounts recognised in the financial statements.

a) Operating lease commitments - Company as lessor

The Company has entered into commercial property leases on its investment property portfolio. The Company
has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease
term not constituting a substantial portion of the economic life of the commercial property, and that it retains
all the significant risks and rewards of ownership of these properties and accounts for the contracts as
operating leases.

b) Assessment of lease term:

In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option or not exercise a termination option.

Extension options (or periods after termination options) are only included in the lease term if the lease is
reasonably certain to be extended (or not terminated). The assessment is reviewed if a significant event or
a significant change in circumstances occurs which affects this assessment and that is within the control of
the lessee.

c) Revenue from contracts with customers

The Company applied the following judgments that significantly affect the determination of the amount and
timing of revenue from contracts with customers:

• Determining method to estimate variable consideration and assessing the constraint.

Certain contracts for the sale of products include a right of price revision on account of change of commodity
prices/purchase price that give rise to variable consideration. In estimating the variable consideration, the
Company is required to use either the expected value method or the most likely amount method based on
which method better predicts the amount of consideration to which it will be entitled.

The Company determined that the most likely method is the appropriate method to use in estimating the
variable consideration for the sale of products. The selected method that better predicts the amount of
variable consideration was primarily driven by the number of volume thresholds contained in the contract.
The most likely amount method is used for those contracts with a single volume threshold, while the expected
value method is used for contracts with more than one volume threshold.

Before including any amount of variable consideration in the transaction price, the Company considers
whether the amount of variable consideration is constrained. The Company determined that the estimates
of variable consideration are not constrained based on its historical experience, business forecast and the
current economic conditions. In addition, the uncertainty on the variable consideration will be resolved within
a short time frame.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below. The Company based its assumptions and
estimates on parameters available when the financial statements were prepared. Existing circumstances and
assumptions about future developments, however, may change due to market changes or circumstances
arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

a) Property, plant and equipment

The useful lives and residual values of property, plant and equipment are determined by the management
based on technical assessment by the management. The Company believes that the derived useful life best
represents the period over which the Company expects to use these assets.

b) Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the
amount and timing of future taxable income. Given the wide range of business relationships and the long¬
term nature and complexity of existing contractual agreements, differences arising between the actual results
and the assumptions made, or future changes to such assumptions, could necessitate future adjustments
to tax income and expense already recorded. The Company establishes provisions based on reasonable
estimates. The amount of such provisions is based on various factors, such as experience of previous tax
audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.

Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing
in the respective domicile of the companies.

c) Gratuity benefit

The cost of defined benefit plans (i.e., Gratuity benefit) is determined using actuarial valuations. An actuarial
valuation involves making various assumptions which may differ from actual developments in the future.
These include the determination of the discount rate, future salary increases, mortality rates and future
pension increases. Due to the complexity of the valuation, the underlying assumptions and its long-term
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions
are reviewed at each reporting date. In determining the appropriate discount rate, management considers
the interest rates of long term government bonds with extrapolated maturity corresponding to the expected
duration of the defined benefit obligation. The mortality rate is based on publicly available mortality tables
for the specific countries. Future salary increases and pension increases are based on expected future
inflation rates for the respective countries. Further details about the assumptions used, including a sensitivity
analysis, are given in Note 38 (a).

d) Fair value measurement of financial instrument

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques
including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable
markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair
values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes
in assumptions about these factors could affect the reported fair value of financial instruments.

e) Impairment of financial assets

The impairment provisions of financial assets are based on assumptions about risk of default and expected
loss rates. the Company uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on Company's past history, existing market conditions as well as forward
looking estimates at the end of each reporting period.

f) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its value in use.

The fair value less costs of disposal calculation is based on available data from binding sales transactions,
conducted at arm's length, for similar assets or observable market prices less incremental costs for disposing
of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the
budget for the next five years and do not include restructuring activities that the Company is not yet committed
to or significant future investments that will enhance the asset's performance of the CGU being tested. The
recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future
cash-inflows and the growth rate used for extrapolation purposes. These estimates are also relevant to other
intangibles.

g) Lease incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore its incremental
borrowing rate (IBR) to measure lease liability. The IBR is the rate of interest that the Company would have
to pay to borrow over similar terms, and with a similar security, the fund necessary to obtain an asset of a
similar value to the right of use assets in similar economic environments. The IBR therefore affects what the
Company "would have to pay" which requires estimates when no observable rates are available or when they
need to be adjusted to reflect the term and conditions of the lease. The Company estimates the IBR using
observable inputs such as market interest rates when available.

4. New and amended standards

The Company applied for the first-time certain standards and amendments, which are effective for annual periods
beginning on or after 1 April 2025. The Company has not early adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

(i) Amendments to Ind AS 21 - Lack of exchangeability

The Ministry of Corporate Affairs (MCA) notified the Companies (Indian Accounting Standards) Amendment
Rules, 2025, which amend Ind AS 21, The Effects of Changes in Foreign Exchange Rates to specify how an
entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate
when exchangeability is lacking. The amendments also require disclosure of information that enables users of its
financial statements to understand how the currency not being exchangeable into the other currency affects, or is
expected to affect, the entity's financial performance, financial position and cash flows.

The amendments are effective for annual reporting periods beginning on or after 1 April 2025. When applying the
amendments, an entity cannot restate comparative information.

The amendments do not have a material impact on the Company's financial statements.

(ii) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current
Liabilities with Covenants

In August 2025, the MCA notified amendments to paragraphs 69 to 76 of Ind AS 1 to specify the requirements
for classifying liabilities as current or non-current. The amendments clarify:

• What is meant by a right to defer settlement

• That a right to defer must exist at the end of the reporting period

• That classification is unaffected by the likelihood that an entity will exercise its deferral right

• That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms
of a liability does not impact its classification

In addition, a requirement has been introduced to require disclosure when a liability arising from a loan
agreement is classified as non-current and the entity's right to defer settlement is contingent on compliance
with future covenants within twelve months.

If there is a breach of a material covenant of a long term loan arrangement on or before the end of the
reporting period, resulting in the liability becoming payable on demand as at the reporting date, and the
lender agrees—after the reporting period but before the financial statements are approved for issue—not
to demand repayment for at least 12 months as a consequence of the breach, this shall be treated as an
adjusting event. Accordingly, the entity is not required to classify the liability as current.

The amendments are effective for annual reporting periods beginning on or after 1 April 2025 retrospectively
in accordance with Ind AS 8.

The amendments have not had an impact on the classification of Company's liabilities.

(iii) Amendments to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangements

In August 2025, the MCA notified amendments to Ind AS 7 Statement of Cash Flows and Ind AS 107 Financial
Instruments: Disclosures to clarify the characteristics of supplier finance arrangements and require additional
disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist
users of financial statements in understanding the effects of supplier finance arrangements on an entity's
liabilities, cash flows and exposure to liquidity risk.

The amendments do not have a material impact on the Company's financial statements.

(iv) International Tax Reform—Pillar Two Model Rules - Amendments to Ind AS 12

In August 2025, the MCA notified amendments to Ind AS 12 Income Taxes in response to the OECD's BEPS Pillar
Two rules and include:

• A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the

jurisdictional implementation of the Pillar Two model rules; and

• Disclosure requirements for affected entities to help users of the financial statements better understand an

entity's exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date.

The mandatory temporary exception - the use of which is required to be disclosed - applies immediately. The
remaining disclosure requirements apply for annual reporting periods beginning on or after 1 April 2025, but not
for any interim periods ending on or before 31 March 2026.

The amendments had no impact on the Company's financial statements as the Company is not in scope of the
Pillar Two model rules.

Nature and purpose of reserves

(i) General reserve - Under the erstwhile Companies Act 1956, general reserve was created through an annual
transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these
transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the
Company for that year, then the total dividend distribution is less than the total distributable results for that year.
Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage
of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general
reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

(ii) Retained Earnings - Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less
any transfers to general reserve, debenture redemption or other reserve as well as dividends or other distributions
paid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit plans, net of
taxes that will not be reclassified to Statement of Profit and Loss. The amount is available for distribution to the
shareholders.

(i) During the previous year, there was an ongoing dispute involving excise demands pertaining to various years
ranging from 1996 to 1999. The company was contesting this matter which was pending with appellate authorities.
During the current year, the Tribunal set aside the impugned order and allowed the appeals filed by the Company.

(ii) An industry-wide dispute arose regarding the appropriate classification and GST rate applicable to the supply
of two-wheeler seats. To prevent immediate contention, the Company proactively deposited the differential tax
liability. During the prior years, the GST authority, issued an order due to the misclassification of two-wheeler
seats under an incorrect HSN code. This order confirmed a demand and appropriated an amount of Rs. 3382.42
lakhs for the period from November 15, 2017 to March 31,2024. The Company has already deposited this amount
under protest. Additionally, the order imposed a penalty of Rs. 3382.42 lakhs along with applicable interest.
The Company has filed an appeal against these orders with the CGST Appellate Authority in Gurugram. On the
issue of classification, the Commissioner (Appeals) upheld the Department's view. Currently, the Company is in
the process of filing a further appeal against the said Order-in-Appeal before the appropriate appellate forum,
as prescribed under the CGST Act, 2017. As per Company's own assessment and also based on legal advice,
management is confident of favourable outcome for such appeals. No adjustment has been made to the financial
statements.

(iii) The Company has suspended few workmen in the year 2002 for misconduct and instigating other workmen to
give less production. The Company has adhered to all the stipulated process as is desired by statute, mainly
the Industrial Dispute Act and The Payment of Wages Act. The workmen have raised a demand notice and state
government has raised the dispute to Industrial Tribunal cum Labour court. The tribunal has passed order in favour
of workmen with reinstatement with back wages. On 17 July 2025 bench of single judge of honourable High court
give decision in the favour of workers, the company challenge decision in dual bench of High court and same
is admitted. The Company has filed a Special leave petition in Supreme Court and Writ petition in High court
and court has granted the stay in case pending before them. The Company is contesting the demands and the
management, including its legal advisors, believe that its position will likely to be upheld in the honourable Courts
and accordingly no provision has been accrued in the financial statements for the demand raised.

(iv) In the financial year 2023-24, the Income Tax Department ('the department') conducted a search under section 132
of the Income Tax Act, 1961 at certain premises of the Company including manufacturing locations and residence
of few of its employees/key managerial personnel. Subsequently the Company received demand orders amounting
to Rs. 2,243.72 lakhs (excluding penalties) for the Assessment Years 2014-15 to 2024-25, along with a penalty
demand order of Rs. 524.28 lakhs for the Assessment Year 2022-23. The Company filed appeals against the tax and
penalty demand orders received from department with the Commissioner of Income Tax (Appeals). Subsequently,
the Company has filed rectification application of Rs. 1,187.66 lakhs concerning the outstanding demand.
The Company has now received orders from the Commissioner of Income Tax (Appeals) reducing the
demand to Rs. 245.25 lakhs for the Assessment Years 2013-14 to 2024-25, except for Assessment
Year 2022-23, for which the order (including the penalty order) is still awaited. The total demand
orders against assessment year 2022-23 amounts to Rs. 756.75 lakhs (including penalties).
As per Company's own assessment and also based on legal advice, management is confident of favourable
outcome for such appeals. Pending outcome of appeal proceedings, no adjustment has been made to these
financial statements.

28.4 Performance obligation

The performance obligation is satisfied upon delivery of the product to the customer and payment is generally due
within 30 to 60 days from delivery

Revenue from contracts with customers is measured by the Company at the transaction price i.e. amount of
consideration received/ receivable in exchange of transferring goods or services to the customers. In determining
the transaction price for the sale of goods, the Company considers the effect of price adjustments, to be claimed/
passed on to the customers, based on various cost parameters like raw material and other costs. Adequate
Provisions have been made for such price differences with a corresponding impact on the revenue. Accordingly,
revenue for the current year is net of such price differences.

On 21 November 2025, the Central Government issued four separate notifications in the Official Gazette announcing
implementation of four Labour Codes, viz., the Code on Wages, 2019, the Industrial Relations Code, 2020, the
Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020. These four
codes replace and consolidate 29 existing labour laws. Following the implementation of the four labour codes, the
Central Government has pre-published the draft rules on 31 December 2025 under the respective Labour Codes,
for public comment and the final rules are expected to be notified in due course. To ensure smooth implementation,
the Ministry of Labour and Employment has also issued the Frequently Asked Questions (FAQs) on the four codes.
The four codes prescribe an inclusive definition of the term 'wages', which among other matters is relevant for
determination of post-employment benefits including gratuity to all employees. In accordance with the definition, certain
specified items forming part of remuneration are not included in the wages and these excluded items cannot exceed
50% of total remuneration. If there is an excess, then it is presumed that excess amount also forms part of wages. The
four codes also introduce changes related to leave entitlement and encashment for workers. Going forward, workers'
leave balance in excess of 30 days will be encashed at the end of each calendar year and workers will have a right to
demand encashment for entire accumulated leave.

The Company has assessed the impact of these changes on the basis of legal view obtained by the management and
best information available till authorisation of the financial statements for issue. The Company has determined that
these changes result in an increase in gratuity obligation and leave obligation of Rs. 69.61 lakhs and Rs. 67.76 lakhs,
respectively. Considering the materiality and regulatory-driven, non-recurring nature of this change, the Company has
presented increase in obligation as an expense under the head “Exceptional Items” in the statement of profit and loss
for the year ended 31 March 2026. Also, pursuant to the change, the entire obligation toward accumulated leave of
workers has been classified as current liability in the balance sheet as at 31 March 2026. Considering that it is emerging
topic and the finalisation of Central/ State Rules is still pending, the Company will continue monitoring changes and
provide appropriate accounting effect as required based on future developments.

38 Other Notes to Accounts
a. Defined Benefit Plan

The Company has a defined benefit gratuity plan (funded). The Company's defined benefit gratuity plan is a
final salary plan for employees, which requires contributions to be made to a separately administered fund.
The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed
five years of service is entitled to specific benefit. The level of benefits provided depends on the member's length
of service and salary at retirement age. The Scheme is funded with the Life Insurance Corporation of India in the
form of a qualifying insurance policy. This defined benefit plan exposes the Company to actuarial risks. The most
recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were
carried out as at March 31, 2026. 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.

The Company has also provided for leave encashment which is unfunded.

The following tables summarize the components of net benefit expense recognised in the statement of the profit
and loss and the funded status and amounts recognised in the balance sheet for the respective plans:

xii) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market. The
above information is as certified by the Actuary.

xiii) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet
date for the estimated term of the obligations.

xiv) The plan assets are maintained with Life Insurance Corporation of India (LIC).

Terms and Conditions of transactions with related parties

1) Sales are made to related parties on the same terms as applicable to third parties in an arm's length transaction
and in the ordinary course of business. The Company mutually negotiates and agrees sales price, discount and
payment terms with the related parties by benchmarking the same to transactions with non-related parties, who
purchase goods and services of the Company in similar quantities. Such sales generally include payment terms
requiring related party to make payment within 30 to 60 days from the date of invoice.

2) Trade receivables outstanding balances are unsecured, interest free and require settlement in cash. No guarantee
or other security has been received against these receivables. The amounts are recoverable within 30 to 60 days
from the reporting date (31 March 2025: 30 to 60 days from the reporting date). For the year ended 31 March 2026,
the Company has not recorded any impairment on receivables due from related parties (31 March 2025: Nil)

3) Purchases are made from related parties on the same terms as applicable to third parties in an arm's length
transaction and in the ordinary course of business. The Company mutually negotiates and agrees purchase price

and payment terms with the related parties by benchmarking the same to sale transactions with non-related parties
entered into by the counter-party and similar purchase transactions entered into by the Company with the other
non-related parties. Such purchases generally include payment terms requiring the Company to make payment
within 30 to 60 days from the date of invoice.

4) Trade payables outstanding balances are unsecured, interest free and require settlement in cash. No guarantee
or other security has been given against these payables. The amounts are payable within 30 to 60 days from the
reporting date (31 March 2025: 30 to 60 days from the reporting date).

5) The Company has taken a loan from its director. The loan has been utilized by the Company for the purpose it
was obtained. The loan is unsecured, repayable by March 2028 and carries interest rates at the rate of 8.3% per
annum.

6) The amounts disclosed in the table are the amounts recognised as an expense during the financial year related to
KMP The amounts do not include expense, if any, recognised toward post-employment benefits and other long¬
term benefits of key managerial personnel. Such expenses are measured based on an actuarial valuation done
by the Company. Hence, amounts attributable to KMPs are not separately determinable. Generally, non-executive
directors do not receive any gratuity or post-employment benefits from the Company.

e. Expenditure on corporate social responsibility

As per provisions of section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average
net profits of the preceding three financial years towards Corporate Social Responsibility (“CSR”). Accordingly, a
CSR committee has been formed for carrying out CSR activities as per the Schedule VII of the Companies Act,
2013. The Company has contributed a sum of Rs.74.00 lakhs (31st March, 2025 : Rs.54.00 lakhs) towards relief
activities, education, healthcare and Skil Development purpose. The same is debited to the Statement of Profit
and Loss.

The fair value of the financial assets and liabilities is included at the amount at which the instruments could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale. The following method and
assumption were used to estimate the fair value.

i) The fair value of unquoted instruments, loans from banks and other financial liabilities, as well as other non¬
current financial liabilities is estimated by discounting future cash flow using rates currently available for debt
on similar terms, credit risk and remaining maturities. In additional to being sensitive to a reasonably possible
change in the forecast cash flow or the discount rate, the fair value of the equity instruments is also sensitive
to a reasonably possible change in the growth rates. The valuation requires management to use unobservable
inputs in the model, of which the significant unobservable inputs are disclosed in the tables below. Management
regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and
determines their impact on the total fair value.

ii) Receivables/Payables are evaluated by the Company based on parameters such as interest rate, risk factors,
and individual credit worthiness of the counterparty and the risk characteristics of the financed project. Based on
this evaluation, allowances are taken into account for the expected credit losses of these receivables.

iii) The significant unobservable inputs used in the fair value measurement categorized within level 3 of the fair value
hierarchy together with a quantitative sensitivity analysis as at 31st March, 2026 are as shown below :-

Fair Value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable,
either directly or indirectly.

Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on
observable market data.

Note: The Company has measured its all financial assets and liabilities at amortized cost accordingly, Quantitative

disclosures fair value measurement hierarchy in not applicable on the Company.
g. Financial risk management

The Company has instituted an overall risk management program which also focuses on the unpredictability of
financial markets and seeks to minimize potential adverse effects on the Company's financial performance. The
Corporate Finance department evaluates financial risks in close co-operation with the various stakeholders.

The Company is exposed to market risk, credit risk and liquidity risk. These risks are managed pro-actively by the
Senior Management of the Company.
i) 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 prices comprises three types of risk: currency rate risk, interest rate risk and
other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market
risks include loans and borrowings, deposits, investments and foreign currency receivables and payables. The
sensitivity analysis in the following sections relate to the position as at 31st March, 2026 and 31st March, 2025.
The analyses exclude the impact of movements in market variables on; the carrying values of gratuity and other
post-retirement obligations; provisions; and the non-financial assets and liabilities. The sensitivity of the relevant
Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the
financial assets and financial liabilities held as at 31st March, 2026 and 31st March, 2025.

A) Currency Risk:-

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign
exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated
in foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the
respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions
and follows established risk management policies.

Foreign currency risk sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD, Euro and JPY exchange
rates, with all other variables held constant. The impact on the Company profit before tax is due to changes in the
fair value of monetary assets and liabilities.

The Company is not exposed to any price risk as there is no investment in securities and the Company does not
deal in commodities.
ii) 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 employs' prudent liquidity risk management practices which inter alia means maintaining sufficient
cash and the availability of funding through an adequate amount of committed credit facilities. Given the nature
of the underlying businesses, the corporate finance maintains flexibility in funding by maintaining availability
under committed credit lines and this way liquidity risk is mitigated by the availability of funds to cover future
commitments. Cash flow forecasts are prepared and the utilized borrowing facilities are monitored on a daily basis
and there is adequate focus on good management practices whereby the collections are managed efficiently. The
Company while borrowing funds for large capital project, negotiates the repayment schedule in such a manner
that these matches with the generation of cash on such investment. Longer term cash flow forecasts are updated
from time to time and reviewed by the senior management of the Company.

The table below represents the maturity profile of Company's financial liabilities at the end of 31st March, 2026
and 31st March, 2025 based on contractual undiscounted payments:

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

Balances with banks is subject to low credit risk due to good credit ratings assigned to these banks.

Credit risk relating to trade receivable, securities given is considered negligible as counterparties are having good
credit quality.

h. Capital Management

For the purposes of Company's capital management, Capital includes equity attributable to the equity holders of
the Company and all other equity reserves. The primary objective of the Company's capital management is to
ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its
capital structure and makes adjustments in light of changes in economic conditions and the requirements of the
financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to
shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements.

The Company monitors capital using gearing ratio, which is net debt divided by total capital plus net debt. The
Company's policy is to keep the gearing ratio of less than 50%.

The Company net debt includes interest bearing loan and borrowing, lease liabilities less cash and cash
equivalents.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call
loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and
borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the year ended March
31, 2026 and March 31, 2025.

LeaseContractual maturities of lease liabilities

The Company has entered into leases for its commercial premises, duration of such leases is 20 to 33 years.
These lease agreements are normally renewed on expiry. At the date of commencement of the lease, the
Company recognize lease liability for all lease arrangements in which it is a lessee, except for leases with a term
of twelve 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. The rental expense charged to statement of profit and loss is Rs. 20.39 lakhs.

Company as lessor

The Company has entered into a cancellable operating lease with Toyo Sharda India Private Limited for a further
period of three years starting from 01 April 2025 at such terms and conditions mutually agreed upon. Lessee
shall not assign / sublet property to any other person. The total rent recognised as income during the year is Rs.
116.92 lakhs (31st March 2025: Rs. 114.61 lakhs).

The Company has entered into a cancellable operating lease with NDR Auto Components Limited for a period of
3- years extendable every three years up to a period of 9 years, starting from 16th August 2022, at such terms
and conditions mutually agreed upon. The rent shall increase by 15% after every three years, Lessee shall not
assign/ sublet property to any other person. The total rent recognised as income during the year is Rs. 126.00
lakhs (31st March 2025: Rs. 115.20 lakhs).

Events after the reporting period

The board of directors have proposed dividend after the balance sheet date which are subject to approval by the
shareholders at the annual general meeting.

k. The Company has used accounting software (SAP) for maintaining its books of account which has a feature of
recording audit trail facility and the same has operated throughout the year for all relevant transactions recorded
in the software except the audit trail is not enabled for direct changes to database using certain access rights.
Further no instance of audit trail feature being tampered with was noted in respect of accounting software where
the audit trail has been enabled. Additionally, the audit trail of relevant prior years has been preserved by the
company as per the statutory requirements for record retention, to the extent it was enabled and recorded in those
respective years.

l. During the previous year, the Company has reassessed presentation of outstanding employee salaries and wages,
which were previously presented under 'Trade Payables' within 'Current Financial Liabilities'. In line the recent
opinion issued by the Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (ICAI) on
the “Classification and Presentation of Accrued Wages and Salaries to Employees”, the Company has concluded
that presenting such amounts under 'Other Financial Liabilities', within 'Current Financial Liabilities', results in
improved presentation and better reflects the nature of these obligations. Accordingly, amounts aggregating to
(Rs. 643.16 lakhs as at March 31,2025), previously classified under 'Trade Payables', were reclassified under the
head 'Other Financial Liabilities'. Both line items form part of the main heading 'Financial Liabilities'.

m. The amendments to the standards that are notified by the Ministry of Corporate Affairs (MCA), but not yet effective,
up to the date of issuance of the Company's financial statements are disclosed below. The Company will adopt
these amendments to the standards, when they become effective.

(i) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities
with Covenants and Ind AS 10 Events after the Reporting Period Ind AS 10 has been amended to remove
the previous treatment under which a lender's post reporting date waiver - granted before the financial
statements were approved for issue - of a breach of a material covenant in a long term loan arrangement that
occurred on or before the end of the reporting period, resulting in the liability becoming payable on demand
at the reporting date, was regarded as an adjusting event.

For annual reporting periods beginning on or after 1 April 2026, any breach of a covenant - whether material
or immaterial - occurring on or before the reporting date will, in accordance with Ind AS 1, require the related
liability to be classified as current, unless the lender has granted a waiver of the breach on or before the
reporting date and has agreed not to demand repayment for at least 12 months after the reporting date as a
consequence of the breach. Such a waiver shall be treated as an adjusting event.

The amendments are effective for annual reporting periods beginning on or after 1 April 2026 retrospectively
in accordance with Ind AS 8.

n As at 31 March 2026, the Company has net current liabilities amounting to Rs. 4,998.98 lakhs (31 March 2025:
Rs. 6,599.51 lakhs). However, considering the Company's consistent track record of generating positive cash
flows from operations, its profit after tax of Rs. 4,223.12 lakhs (31 March 2025: Rs. 3,270.03 lakhs) and the
availability of undrawn credit facilities, the management is confident that the Company will be able to meet its
obligations as and when they fall due. Accordingly, these financial statements have been prepared on a going
concern basis.

o Other Statutory Information

1. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and Rules made thereunder.

2. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

3. The Company has no transactions with the companies struck off under section 248 of Companies Act, 2013.

4. The Company has complied with the number of layers prescribed under the Companies Act, 2013.

5. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

6. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. 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

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

7. The Company do not have any transaction which are 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)

8. The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.

9. The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

10. The Company do not have any charge or satisfaction which is yet to be registered with the Registrar of
Companies beyond the statutory period.

11. The borrowings obtained by the Company from banks and financial institutions have been applied for the
purposes for which such loans were was taken.

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