(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 of presentation 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) MCA has notified following amendments to
existing standards under Companies (Indian
Accounting Standards) Amendment Rules
which are effective from 1 April 2025:

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

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

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

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

The Company has reviewed these
amendments and based on its evaluation
has determined that these amendments
do not have a material impact on its
standalone financial statements.

(ii) New standards or amendments not yet
effective

Classification of Liabilities as Current or
Non-current and Non-current Liabilities
with Covenants - Amendments to Ind AS 1-
The amendments clarify that lender waivers
obtained after the reporting date cannot
be considered for the purpose of classifying
liabilities as current or non current
and require retrospective application
in accordance with Ind AS 8. These
amendments are effective for reporting
periods beginning on or after April 1, 2026.

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

The carrying value of goodwill amounting to INR 181.91 crore arose at the time of business purchase of erstwhile APK
Automotive and AK Auto Industries by the Company, which is tested for impairment annually at each balance sheet
date in accordance with the Company's procedure for determining the recoverable amounts of the after market
business which is considered as a cash generating unit (CGU). The recoverable amount of CGU is based on fair
value. The fair value 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 2026: 16.20% (31 March 2025: 16.92%)

• Revenue growth rate: 31 March 2026: 10% (31 March 2025: 10%)

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

5.2 The Company performs impairment assessment annually of its investment in ASK Fras-Le Friction Private Limited to
ascertain the recoverable amount. The carrying amount of investment in the joint venture is higher than the proportionate
share of net worth of the joint venture, which has been identified as an impairment indicator by the management in
accordance with the principles of Ind AS 36, Impairment of Assets (‘Ind AS 36'). Accordingly, the management has
performed detailed impairment testing for such investment in joint venture by carrying out a valuation with the help of
an independent valuation specialist as a management's expert using discounted cash flow (‘DCF') method in order to
determine the recoverable value of investment in such joint venture. The recoverable amount is determined based on
fair value. These calculations uses management assumptions and discounted 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 2026: 20.80% (31 March 2025: 21.54%)

• Terminal growth rate: 31 March 2026: 4% (31 March 2025: 4%)

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

5.3 The Company has invested an amount of INR 10.71 crore (INR Ten crore seventy one lakhs) in AISIN ASK India Private
Limited, joint venture of the Company during the previous financial year for subscription of its 10,710,000 (One
crore seven lakhs ten thousand ) equity shares of INR 10/- each.

5.4 The Company has invested an amount of INR 2.45 crore (INR Two crore forty five lakhs) in ASK GTD Control Cables
Private Limited, joint venture of the Company during the current financial year for subscription of its 2,450,000
(Twenty four lakhs fifty thousand ) equity shares of INR 10/- each.

5.5 The tenure of the compulsorily convertible debentures (‘CCD') shall be twenty five (25) years (“maturity period”)

The number of equity shares to be issued to the CCD holders upon conversion shall be subject to terms and
conditions as mentioned below:-

Each CCD shall carry a coupon of 0.001% per annum and calculated on the face value of the CCD (‘CCD Interest').
Coupon shall accrue from day to day and shall be computed on the basis of 365 (three hundred and sixty-five)
days and the actual number of days elapsed. All accrued coupon payments shall be payable by the Company at its

5 Investments (Contd..)

discretion at any time but in any case, on or prior to the expiry of the maturity period or the conversion of the CCD into
an equity share, whichever is earlier.

Conversion rights:

The CCDs shall be converted into equity shares as per the agreed conversion ratio i.e. 1:10 (a) at the option of the
Company or (b) upon expiry of maturity period.CCDs subscribed by the captive user and so converted into equity
shares shall also form part of the subscription securities under the transaction documents.

Conversion ratio:

Each CCD shall convert into ten (10) equity shares.

Loan given to ASK Fras-le Friction Private Limited (Joint Venture) is receivable in 4 equal yearly installments of INR
2.67 crore commencing from 20 January 2024 and carries an interest rate of 9% p.a receivable on quarterly intervals.

The Company has sanctioned an unsecured loan to ASK Automobiles Private Limited (subsidiary) for the purchase of
fixed assets, including land, construction of buildings, purchase of plant and machinery, and to meet working capital
requirements. The original loan was sanctioned for an amount not exceeding INR 100 crore dated 28 September
2021 and was later enhanced to INR 350 crore during an amendment to the loan agreement dated 30 March 2024
in the financial year 2023-24. The amended terms state that (1) the remaining loan amount can be disbursed in
one or more tranches until 31 March 2026 (2) interest rate from 1 April 2024 will be the Repo Rate plus 2.00%
per annum, applicable to all loans disbursed in various phases (3) loan will be repayable in sixty equal monthly
installments starting from 1 April 2026. (4) Interest accrued up to March 2026 will be payable in four equal quarterly
installments starting from 7 July 2026, with interest accrued after 1 April 2026 payable on the 7^th day after the
end of each quarter. During the current financial year, the Company further amended the loan agreement dated 1
February 2026, changing the repayment schedule to sixty equal monthly installments beginning 1 April 2027.

Additionally, during the current financial year, the Company sanctioned a new loan to ASK Automobiles Private
Limited pursuant to the agreement dated 30 July 2025 for an amount not exceeding INR 100 crore, to be disbursed
in one or more tranches up to March 2027. The interest rate on this loan will be the repo rate plus 2.50% per annum,
applicable on all amounts disbursed in phases. The loan will be repayable in sixty equal monthly installments starting
1 April 2027. Interest accrued up to March 2027 will be payable in four equal quarterly installments starting 7 July

2027, with interest accrued after 1 April 2027 payable quarterly on the 7^th day after each quarter's end. Furthermore,
the Company sanctioned another new loan during the current financial year dated 1 February 2026 for an amount
not exceeding INR 50 crore, to be disbursed in tranches up to March 2027. The terms of this loan are similar, with the
interest rate being Repo Rate plus 2.50% per annum, repayable in sixty equal monthly installments starting 1 April

2028. Interest accrued up to March 2028 will be payable in four equal quarterly installments starting 7 July 2028,
and interest accrued after 1 April 2028 will be payable quarterly on the 7^th day after each quarter end.

Trade receivables are non-interest bearing and are generally on terms of 30 to 60 days.

Refer note 38(B)(I)(a) for details of the Company's credit risk policy and exposure.

Refer note 39 for trade receivables outstanding from related party.

10.3 The Company has entered into arrangements with ICICI Bank Limited and The South Indian Bank Limited for the
factoring of trade receivables on a non-recourse basis. Pursuant to these arrangements, trade receivables amounting
to INR 60.51 crore (ICICI Bank Limited) and INR 39.96 crore (The South Indian Bank Limited), aggregating to INR
100.47 crore, have been derecognised during the current financial year in accordance with the principles of Ind AS
109 - Financial Instruments, as the Company has transferred substantially all the risks and rewards of ownership. In
the previous year ended 31 March 2025, trade receivables amounting to INR 73.86 crore pertained to arrangements
with ICICI Bank Limited were derecognised.

17 Provisions (Contd..)

17.1 Defined benefit plan and long term employment benefits

A General description:

Gratuity (Defined benefit plan):

The Company's gratuity obligation is a defined benefit plan. The liability is determined based on an independent
actuarial valuation using the Projected Unit Credit Method as at the reporting date. Effective November 21,
2025, the gratuity scheme is governed by the provisions of the Code on Social Security, 2020, which has
replaced the Payment of Gratuity Act, 1972. Under the said Code, employees who have completed five years of
continuous service (one year in the case of fixed-term employees) are eligible for gratuity benefits. Based on
the review of existing wage structure and an independent legal opinion obtained, the Company has estimated
that there is no material impact on the standalone financial statements due to these New Labour Codes.
The benefit is computed at 15 days' salary (based on last drawn salary) for each completed year of service.
Accordingly, the level of benefit provided depends on the employee's length of service and salary at the time
of exit. The gratuity plan is unfunded, and the Company recognises the entire liability in its standalone financial
statements. Remeasurements, comprising actuarial gains and losses arising from experience adjustments and
changes in actuarial assumptions, are recognised immediately in Other Comprehensive Income (OCI) and are
not reclassified to standalone profit or loss in subsequent periods.

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.

These assumptions were developed by management with the assistance of independent actuary. Discount
factors are determined close to each year-end by reference to market yields of high quality corporate bonds
that are denominated in the currency in which the benefits will be paid and that have terms to maturity
approximating to the terms of the related obligation. Other assumptions are based on current actuarial
benchmarks and management's historical experience.

J Sensitivity analysis: Significant actuarial assumptions for the determination of the defined benefit obligation
are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined
based on reasonably possible changes of the assumptions occurring at the end of the reporting year, while
holding all other assumptions constant. The results of sensitivity analysis is given below:

The change in defined benefit obligation due to 100 bps increase/decrease in mortality rate, if all other
assumptions remain constant is negligible

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of
the assumptions may be correlated.

There is no change in the method of valuation for the prior year.

33 Earning per share

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the average number of
equity shares and weighted average number of equity shares outstanding. The reconciliation of the number of shares
and weighted average number of shares for the purpose of basic and diluted earnings per share to the number of equity
shares and weighted average number of ordinary equity shares used in the calculation of basic and diluted earnings per
share is as follows:

34 Segment Reporting

The business activity of the Company falls within one operating segment viz. manufacturing of auto components
including advanced braking systems, aluminium lightweighting precision solutions and safety control cables primarily for
automobile industry and substantial sale of the products is within India. The Board of Directors, which has been identified
as being the Chief Operating Decision Maker (CODM), evaluates the Company's performance, allocate resources based
on the analysis of the various performance indicators of the Company as a single unit. Therefore, there is one reportable
segment for the Company.

For information about geographical areas and revenue from major customers, refer note 44(A) and 24 respectively.

(ii) During the year ended 31 March 2026, Surety bond amounting INR 0.21 crore (31 March 2025: INR 8.72 crore)
executed by the company in favor of the President of India, under Export Promotion Capital Goods Scheme (EPCG)
for importing capital goods at concessional rate of custom duty. The amount of duties and taxes saved during the
year were INR 0.90 crore (31 March 2025: INR 3.35 crore) against which there was an unfulfilled export obligation
of INR 0.55 crore (31 March 2025: INR NIL).

37 Contingent liabilities

(i) Corporate guarantees given to banks on account of facilities granted by banks to subsidiary company.

The following is a description of claims and assertions where a potential loss is possible, but not probable. The
Company believes that none of the contingencies described below would have a material adverse effect on the
Company's financial condition, results of operations or cash flows:

37 Contingent liabilities (Contd..)

(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 financial year 2023-24, Company has submitted required
documents to the department on 18 September 2024. Several hearings have been conducted during the
current financial year, however, the matter remains pending resolution. 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 received from the
Directorate of Enforcement in this matter till the adoption of these standalone financial statements. During
the year, the Company has not received any further communication in this matter. 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 (Contd..)

(ii) Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped
into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant
inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data rely as little as possible on entity
specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.

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.

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.

The credit risk for investment carried at amortised cost and other financial assets is considered
negligible. However, specific provision is made in case a particular receivable is considered to be
non -recoverable.

(ii) Expected credit loss for trade receivables under simplified approach

In accordance with Ind AS 109- Financial Instruments, the Company uses the expected credit loss
(“ECL”) model for measurement and recognition of impairment loss on its trade receivables or
any contractual right to receive cash or another financial asset that result from transactions that
are within the scope of Ind AS 115- Revenue from contracts with customers. For this purpose, the
Company uses a provision matrix to compute the expected credit loss amount for trade receivables.
The provision matrix takes into account external and internal credit risk factors and historical data of
credit losses from various customers. The default in collection as a percentage to total receivable is
low and overall expected credit loss is not material to these financial statements.

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.

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.

Exposure to currency risk

The summary of quantitative data about the Company's unhedged exposure to currency risk, as
expressed in INR :

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

Sensitivity analysis

A reasonably possible strengthening (weakening) of the Indian Rupee against below currencies at
31 March 2026 would have affected the measurement of financial instruments denominated in
functional currency and affected equity and profit or loss by the amounts shown below. This analysis
is performed on foreign currency denominated monetary financial assets and financial liabilities
outstanding as at the year end. This analysis assumes that all other variables, in particular interest
rates, remain constant and ignores any impact of forecast sales and purchases.

* Holding all other variables constant

#Percentage for sensitivity analysis are considered based on change in foreign currency rates of respective year.

(ii) Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company's main interest rate risk arises from long-term
borrowings and short term borrowings with variable rates.

Interest rate risk exposure

The Company's interest rate risk arises majorly from the term loans and short term borrowings
from banks and loans given by the Company carrying floating rate of interest. The exposure of the
Company's borrowing to interest rate changes as reported to the management at the end of the
reporting year are as follows:

(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.

The Company monitors capital on the basis of the debt to capital ratio, which is calculated as adjusted net
interest-bearing debts divided by total capital.

Remarks for variance (in case of variance more than 25%)

*During the current year, debt has been increased by INR 116.46 crore against increase in shareholders' equity by INR 200.34 crore.

$During the current year, there is an increase in earnings available for debt service of INR 19.53 crore and decrease in repayments of debt and
interest by INR 37.52 crore.

(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.

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

(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 period 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 2026, 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 2026 which may require an
adjustment to the standalone financial statements. Also refer note 14.

50 With effect from 21 November 2025, the Government of India has consolidated multiple existing labour legislations
into a unified framework comprising four Labour Codes collectively referred to as the 'New Labour Codes'. Based on the
review of existing wage structure and an independent legal opinion obtained, the Company has estimated that there is
no material impact on the standalone financial statements due to these New Labour Codes.

51 Authorisation of financial statements

The standalone financial statements for the year ended 31 March 2026 were approved by the board of directors
on 19 May 2026.