(n) Provisions

A provision is recognised if, as a result of a past
event, the Company has a present obligation
that can be estimated reliably, and it is probable
that an outflow of economic benefits will be
required to settle the obligation. Provisions
are recognised at the best estimate of the
expenditure required to settle the present
obligation at the balance sheet date.

(o) Revenue recognition

Revenue is recognised to the extent that it is
probable that the economic benefits will flow
to the Company and the revenue can be reliably
measured, regardless of when the payment
is being made..

However, Goods and Services Tax (GST) is not
received by the Company on its own account.
Rather, it is tax collected on value added to
the commodity or supplies made by the seller
on behalf of the government. Accordingly, it is
excluded from revenue.

Sale of goods

Revenue from sale of goods is recognised based
on a 5-Step Methodology which is as follows:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance

obligation in contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the
performance obligations in the contract

Step 5: Recognise revenue when (or as) the
entity satisfies a performance obligation

Revenue from sale of goods is recognised at
the point in time when control of the goods
is transferred to the customer, generally
on delivery of the goods and there are no
unfulfilled obligations. Revenue is measured
based on the transaction price, which is the
consideration, adjusted for volume discounts,
turnover discounts, scheme discounts and cash
discounts, if any, as specified in the contract
with the customer. Revenue also excludes
taxes collected from customers.

Sale of services

The Company recognises revenue from sales
of services over time, because the customer
simultaneously receives and consumes the
benefits provided by the Company. Revenue
from services provided is recognised upon
rendering of the services, in accordance
with the agreed terms with the customers
where ultimate collection of the revenue is
reasonably expected.

Other operating revenue

All export benefits and incentives under
various policies of Government of India
are recognised on accrual basis when no
significant uncertainties as to the amount of
consideration that would be derived and as to
its ultimate collection exist.

Other income

Interest income is recognised on accrual basis
using the effective interest method.

Contract assets

Contract assets is right to consideration in
exchange for goods or services transferred to the
customer and performance obligation satisfied.
If the Company performs by transferring goods
or services to a customer before the customer
pays consideration or before payment is due,
a contract asset is recognised for the earned
consideration that is conditional, in the nature
of unbilled receivables. Upon completion of
the attached condition and acceptance by the
customer, the amounts recognised as contract
assets is reclassified to trade receivables
upon invoicing. A receivables represents the
Company’s right to an amount of consideration
that is unconditional. Contract assets are
subject to impairment assessment.

Contract liabilities

A contract liability is the obligation to transfer
goods or services to a customer for which
the Company has received consideration (or
an amount of consideration is due) from the
customer or has raised the invoice in advance.
If a customer pays consideration before the
Company transfers goods or services to the
customer, a contract liability is recognised
when the payment is made or the payment
is due (whichever is earlier). Contract liabilities

are recognised as revenue when the Company
performs under the contract (i.e., transfers
control of the related goods or services
to the customer).

(p) Government grants

Government grants related to property, plant
and equipment under Export Promotion
Capital Goods (EPCG) are included in the non¬
current liabilities as deferred government grant
and are credited to Profit or loss on the basis of
fulfillment of export obligation and presented
within other income in accordance with the
primary conditions associated with purchase of
assets and related grants.

Government grants not related to assets are
recognised in the Standalone Statement
of Profit and Loss when the right to receive
benefits is established and the realisation is
reasonably certain.

(q) Leases

A lease is defined as ‘a contract, or part of a
contract, that conveys the right to use an asset
(the underlying asset) for a period of time in
exchange for consideration’.

Classification of leases

The Company enters into leasing arrangements
for various assets. The assessment of the lease
is based on several factors, including, but not
limited to, transfer of ownership of leased
asset at end of lease term, lessee’s option to
extend/purchase etc.

Recognition and initial measurement

At lease commencement date, the Company
recognises a right-of-use asset and a lease
liability on the balance sheet. The right-of-
use asset is measured at cost, which is made
up of the initial measurement of the lease
liability, any initial direct costs incurred by the
Company, an estimate of any costs to dismantle
and remove the asset at the end of the lease (if
any), and any lease payments made in advance
of the lease commencement date (net of any
incentives received).

Subsequent measurement

The Company depreciates the right-of-use
assets on a straight-line basis from the lease
commencement date to the earlier of the end
of the useful life of the right-of-use asset or

the end of the lease term. The Company also
assesses the right-of-use asset for impairment
when such indicators exist.

At lease commencement date, the Company
measures the lease liability at the present value
of the lease payments unpaid at that date,
discounted using the interest rate implicit
in the lease if that rate is readily available
or the Company’s incremental borrowing
rate (IBR). Lease payments included in the
measurement of the lease liability are made
up of fixed payments (including in substance
fixed payments) and variable payments based
on an index or rate. Subsequent to initial
measurement, the liability will be reduced for
payments made and increased for interest.
It is re-measured to reflect any reassessment
or modification, or if there are changes in in¬
substance fixed payments. When the lease
liability is re-measured, the corresponding
adjustment is reflected in the right-of-use asset.

The Company has elected to account for short¬
term leases using the practical expedients.
Instead of recognising a right-of-use asset and
lease liability, the payments in relation to these
are recognised as an expense in standalone
statement of profit and loss on a straight-line
basis over the lease term.

Estimating the incremental borrowing rate

The Company cannot readily determine the
interest rate implicit in the lease, therefore, it
uses its IBR to measure lease liabilities. The IBR
is the rate of interest that the Company would
have to pay for last long-term funds raised.

(r) Income-tax

Tax expense recognised in the standalone
statement of profit and loss comprises the
sum of deferred tax and current tax not
recognised in other comprehensive income or
directly in equity.

Current tax is determined as the tax payable
in respect of taxable income for the year and
is computed in accordance with relevant tax
regulations. Current tax are recognised as an
expense or income in the standalone statement
of profit and loss, except when they relate
to items credited or debited either in other
comprehensive income or directly in equity, in
which case the tax is also recognised in other
comprehensive income or directly in equity.

Deferred tax is recognised in respect of
temporary differences between carrying
amount of assets and liabilities for financial
reporting purposes and corresponding amount
used for taxation purposes. Deferred tax assets
on unrealised tax loss are recognised to the
extent that it is probable that the underlying
tax loss will be utilised against future taxable
income. This is assessed based on the
Company’s forecast of future operating results,
adjusted for significant non-taxable income
and expenses and specific limits on the use of
any unused tax loss. Unrecognised deferred tax
assets are re-assessed at each reporting date
and are recognised to the extent that it has
become probable that future taxable profits
will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply
in the year when the asset is realised or the
liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively
enacted at the reporting date. Deferred tax
are recognised as an expense or income in
the consolidated statement of profit and loss,
except when they relate to items credited or
debited either in other comprehensive income
or directly in equity, in which case the tax is also
recognised in other comprehensive income or
directly in equity.

(s) Earnings per share

Basic earnings per share are calculated by
dividing the standalone net profit for the year
attributable to equity shareholders by the
weighted average number of equity shares
outstanding during the year.

For the purpose of calculating diluted earnings
per share, the standalone net profit or loss for
the year attributable to equity shareholders
and the weighted average number of shares
outstanding during the year are adjusted for
the effects of all dilutive potential equity shares
except where the results will be anti-dilutive

(t) Contingent liabilities and contingent assets

A contingent liability exists when there is a
possible but not probable obligation, or a
present obligation that may, but probably will
not, require an outflow of resources, or a present
obligation whose amount cannot be estimated
reliably. Contingent liabilities do not warrant

provisions, but are disclosed. Contingent assets
are neither recognised nor disclosed in the
standalone financial statements. However,
contingent assets are assessed continually
and if it is virtually certain that an inflow of
economic benefits will arise, the asset and
related income are recognised in the period in
which the change occurs.

(u) Cash and cash equivalents

For the purpose ofpresentation in the statement
of cash flows, cash and cash equivalents
includes cash on hand, deposits held at call with
financial institutions, other short-term, highly
liquid investments 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 within borrowings in current liabilities in
the standalone balance sheet.

(v) Borrowing cost

Borrowing costs directly attributable to
acquisition, construction or erection of
qualifying assets are capitalised. Capitalisation
of borrowing costs ceases when substantially all
the activities necessary to prepare the qualifying
assets for their intended use are complete.

Other borrowing costs are recognised as an
expense in the standalone statement of profit
and loss in the year in which they are incurred.

(w) Recent Accounting Pronouncements

(i) The Ministry of Corporate Affairs (‘MCA’)
vide its notifications dated 12 August
2024 and 09 September 2024 has issued
Companies (India AccountingNew
Standards) Amendment Rules, 2024 and
Companies (India Accounting Standards)
Second Amendment Rules, 2024, which
introduced amendments in certain Indian
Accounting Standards that are effective
from 1 April 2024:

(a) Ind AS 117 - Insurance contracts -
MCA/Amendments notified Ind AS
117, a comprehensive standard that
prescribe, recognition, measurement
and disclosure requirements, to avoid
diversities in practice for accounting

insurance contracts and it applies to
all companies i.e., to all “insurance
contracts” regardless of the issuer.
However, Ind AS 117 is not applicable
to the entities which are insurance
companies registered with IRDAI.

(b) Ind AS 116- The amendments require
an entity to recognise lease liability
including variable lease payments
which are not linked to index or a rate
in a way it does not result into gain on
right-of-use asset it retains.

The Company has reviewed the new
pronouncements and based on its
evaluation has determined that these
amendments do not have a significant
impact on the financial statements.

(ii) Standards issued but not yet effective:

The Ministry of Corporate Affairs notifies
new standards or amendments to the
existing standards. There is amendment
to Ind AS 21 “Effects of Changes in Foreign
Exchange Rates” such amendments would
have been applicable from 01 April 2025.

The Effects of Changes in Foreign Exchange
Rates 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 the
period on or after 1 April 2025. When
applying the amendments, an entity
cannot restate comparative information.

The Company has reviewed the new
pronouncement and based on its
evaluation has determined that these
amendments do not have a significant
impact on the Company’s Standalone
Financial Statements.

4. Right of use assets, Goodwill & Other intangible assets (Contd..)

use. The value in use for Goodwill is determined based on discounted cash flow projections. These calculations uses
management assumptions and discounted pre tax cash flow projections based on financial budgets covering a 5
year period. Cash flow projection beyond 5 years time period are extrapolated using the estimated terminal growth
rate. Certain key assumptions considered by the management for impairment testing of CGU are stated below:

• Weighted average cost of capital: 31 March 2025: 16.92% (31 March 2024: 16.34%)

• Revenue growth rate: 31 March 2025: 10% (31 March 2024: 12%)

• Terminal growth rate: 31 March 2025: 4% (31 March 2024: 4%)

The management believes that no reasonably possible change in any of the key assumptions used in the value in
use calculation would cause the carrying value of the CGU to materially exceed its value in use.

5. Investments (Contd..)

5.1 Refer to note 35 for details of investments in subsidiary and joint ventures.

5.2 The Company has invested an amount of INR 10.71 crore (INR Ten crores seventy one lakhs) in AISIN ASK India
Private Limited, Joint Venture of the Company during the current financial year for subscription of its 1,07,10,000
(One Crore Seven Lakhs Ten Thousand ) equity shares of INR 10/- each.

5.3 The Company has performed an impairment assessment annually of its investment in ASK Fras-Le Friction
Private Limited at the balance sheet date to ascertain the recoverable amount and has not found any indicator
of impairment as at 31 March 2025 and 31 March 2024. The recoverable amount is determined based on value in
use calculation. These calculations uses management assumptions and discounted pre tax cash flow projections
based on financial budgets covering a 5 year period. Cash flow projection beyond 5 years time period are
extrapolated using the estimated terminal growth rate. Certain key assumptions considered by the management
for impairment testing are stated below:

• Weighted average cost of capital: 31 March 2025: 21.54% (31 March 2024: 20.09%)

• Terminal growth rate: 31 March 2025: 4% (31 March 2024: 4%)

The management believes that no reasonably possible change in any of the key assumptions used in the value in
use calculation would cause the carrying value of the investment to materially exceed its value in use.

17. Provisions (Contd..)

17.1 Defined benefit plan and long term employment benefits

A General description:

Gratuity (Defined benefit plan):

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on
projected unit credit method made at the end of each year. The gratuity plan is governed by the Payment
of Gratuity Act, 1972. Every employee who has completed five years or more of service gets a gratuity on
departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is unfunded.
Actuarial gains or losses are recognised in other comprehensive income.

Compensated absence (other long term employee benefits):

The employees of the Company are entitled to leave as per the leave policy of the Company. Since the Company
have an unconditional right to defer settlement for any of the leave obligations beyond 12 months, the Company
treats accumulated leave expected to be carried forward beyond twelve months as long term employee benefit
for measurement purposes. Such long term compensated absences are provided for based on actuarial
valuation using the projected unit credit method at the year end. The expense related to compensated
absences are recognised in standalone statement of profit and loss as employee benefits expense.

(ii) Others

(a) The Company has received a demand under Goods and Services Tax Act,2017 of INR 1.18 Crore on 9 August
2023 from Goods and Service Tax (GST) department out of which INR 0.04 Crore has been paid by the
Company. The Company has further deposited INR 0.06 Crore towards disputed tax liability and has filed
an appeal against the demand order on 31 October 2023. During the year, Company has submitted required
documents to the department on 18 September 2024. The Company believes that the case will be decided
in their favour and hence no provision has been considered.

(b) The Company has received an order dated 23 May 2023 from the Assistant Director, Directorate of
Enforcement, in connection with an investigation under the Foreign Exchange Management Act, 1999, as
amended, directing the Company to submit certain information, including, inter alia, details of the Directors,
the Company’s business, the bank accounts of Company, imports and exports made by Company till date
and certain information for financial year 2016-2017, such as, all foreign investments made by Company,
import/export advance payments for which import and export had not been made by Company and imports/
exports for which payments had not been made/realized by Company, during the aforementioned year. The
Company has submitted the required information pursuant to the aforementioned order and no further
communication has been recieved from the Directorate of Enforcement in this matter till the adoption of
this financial information. The Company believes that this was information seeking by the authorities and is
not likely to have any implication on the financial position of the Company.

38. Financial instruments - Fair values measurement and risk management (Conts..)

B Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk;

- Market risk - Foreign exchange;

- Market risk - Interest rate; and

- Commodity price risk

(I) Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the
Company’s risk management framework. The board of directors have authorised senior management to
establish the processes, who ensures that executive management controls risks through the mechanism of
properly defined framework.

The Company’s risk management policies are established to identify and analyse the risks faced by
the Company, to set appropriate risks limits and controls, to monitor risks and adherence to limits. Risk
management policies are reviewed regularly to reflect changes in market conditions and the Company’s
activities. The Company, through its training and management standards and procedures, aims to
maintain a disciplined and constructive control environment in which all employees understand their roles
and obligations.

(a) Credit risk

The maximum exposure to credit risks is represented by the total carrying amount of these financial
assets in the balance sheet are as follows:

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, loans.

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with
banks and other bank balances with high credit ratings assigned by domestic credit rating agencies.
While cash and cash equivalents are also subject to the impairment requirements of Ind AS 109, the
identified impairment loss was immaterial.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade
receivables are unsecured and are derived from revenue earned from customers primarily located in
India. The Company does monitor the economic environment in which it operates.

The Company considers the probability of default upon initial recognition of loan and whether there
has been a significant increase in credit risk on an ongoing basis throughout each reporting period.
To assess whether there is a significant increase in credit risk, the Company compares the risk of a
default occurring on the loan as at the reporting date with the risk of default as at the date of initial
recognition. It considers available reasonable and supportive forwarding-looking information. Especially
the following indicators are incorporated:

• Actual or expected significant adverse changes in business, financial or economic conditions that
are expected to cause a significant change to the borrower’s ability to meet its obligations

• Actual or expected significant changes in the operating results of the borrower

Credit risk has always been managed by the Company through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of customers to which the Company grants
credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company
uses expected credit loss (ECL) model to assess the impairment loss or gain. The Company uses a
provision matrix to compute the expected credit loss allowance for trade receivables. The provision
matrix takes into account available external and internal credit risk factors such as Company’s historical
experience for customers.

(b) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities
and the availability of funding through an adequate amount of committed credit facilities to meet
obligations when due. Due to the nature of the business, the Company maintains flexibility in funding
by maintaining availability under committed facilities. Management monitors rolling forecasts of
the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows.
The Company takes into account the liquidity of the market in which the entity operates. In addition,
the Company’s liquidity management policy involves projecting cash flows in major currencies and
considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios
against internal and external regulatory requirements and maintaining debt financing plans.

(i) Maturities of financial liabilities

The tables below analyses the Company’s financial liabilities into relevant maturity groupings based
on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in
the table are the contractual undiscounted cash flows. Balances due within 12 months equal their
carrying balances as the impact of discounting is not significant.

*Amortised amount of upfront fees/charges paid at the time of sanction/disbursement of loan in the above outstanding
is INR NIL (31 March 2024: INR 0.01 Crore). This amount further includes future undiscounted cash flows for interest on
term loans INR 2.69 Crore (31 March 2024: INR 9.80 Crore).

(c) Market risk

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.

(i) Currency risk

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Company is exposed to the effects of fluctuation in the
prevailing foreign currency exchange rates on its financial position and cash flows. Exposure arises
primarily due to exchange rate fluctuations between the functional currency and other currencies
from the Company’s operating, investing and financing activities.

(d) Commodity price risk

Fluctuation in commodity price in market affects directly or indirectly the price of raw material and
components used by the Company. The Company sells its products mainly to Original Equipment
Manufacturers for whom it is manufacturing auto components. The Company does regular negotiation
/ adjustment of prices on the basis of changes in commodity prices.

(II) Capital management

For the purpose of the Company’s capital management, capital includes issued equity share capital,
securities premium reserve and all other equity reserves attributable to the equity holders of the Company.
The primary objective of the management of the Company’s capital structure is to maintain an efficient
mix of debt and equity in order to achieve a low cost of capital, while taking into account the desirability of
retaining financial flexibility to pursue business opportunities and adequate access to liquidity to mitigate
the effect of unforeseen events on cash flows.

The Company manages its capital structure and makes adjustments to it in light of changes in economic
conditions. To maintain or adjust the capital structure, the Company may return capital to shareholders, raise
new debt or issue new shares.

45. Other disclosures required as per schedule III- (Contd..)

(b) The Company has not invested or traded in crypto currency & virtual currency.

(c) 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:

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

(d) 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:

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(e) The borrowings obtained by the company from banks and financial institutions have been applied for the
purposes for which such loans were taken.

(f) The Company has not been declared willful defaulter by any bank or financial Institution or other lender.

(g) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the period 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.

(h) There has not been any proceedings initiated or pending against the Company for holding any benami property
under the Benami transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(i) Relationship with struck off companies

The Company has no transaction/ balance with companies struck off under section 248 of the Act to the best of
the knowledge of the Company’s management.

(j) The Company does not have any charges or satisfactions, which is yet to be registered with Registrar of companies,
beyond the statutory year prescribed under the Companies Act, 2013 and the rules made thereunder.

(k) The title deeds 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 note 3 to the financial statements, are
held in the name of the company except the one disclosed in note 3.4.

(l) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with the Companies (Restriction on number of layers) Rules 2017.

(m) 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.

46. The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule
3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring
companies, which uses accounting software for maintaining its books of account, shall use only such accounting
software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change
made in the books of account along with the date when such changes were made and ensuring that the audit trail
cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of audit
trail (edit log) facility and the same was enabled at the application level. During the year ended 31 March 2025, the
Company has not enabled the feature of recording audit trail (edit log) at the database level for the said accounting
software to log any direct data changes on account of recommendation in the accounting software administration
guide which states that enabling the same all the time consume storage space on the disk and can impact database
performance significantly.

47. Certain amounts (currency value or percentages) shown in various tables and paragraphs included in these
standalone financial statements have been rounded off or truncated as deemed appropriate by the management
of the Company.

48. Previous year figure regrouped / reclassified wherever necessary to confirm to current period's classification
pursuant to amendment in Schedule III of the Act.

49. No significant subsequent events have occurred post the balance sheet date 31 March 2025 which may require an
adjustment to the standalone financial statements.

50. Authorisation of financial statements

The standalone financial statements for the year ended 31 March 2025 were approved by the board of directors
on 13 May 2025.

For Walker Chandiok & Co For and on behalf of the Board of Directors of
LLP

Chartered Accountants ASK Automotive Limited

Firm’s Registration No.:

001076N/N500013

Anamitra Das Kuldip Singh Rathee Aman Rathee Naresh Kumar Rajani Sharma

Partner Chairman and Managing Executive Director Chief Financial Officer Company

Membership No.: 062191 Director DIN: 00041130 Secretary

DIN: 00041032 M.No. A14391

Place: Gurugram Place: Gurugram

Date: 13 May 2025 Date: 13 May 2025