2.20 Provisions and Contingent Liabilities

Provisions are recognized when, as a result of a past
event, the Company has a legal or constructive obligation;
it is probable that an outflow of resources will be required
to settle the obligation; and the amount can be reliably
estimated. The amount so recognized is a best estimate
of the consideration required to settle the obligation
at the reporting date, taking into account the risks and
uncertainties surrounding the obligation.

In an event when the time value of money is material, the
provision is carried at the present value of the cash flows
estimated to settle the obligation.

A disclosure of a contingent liability is made when there is
a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. When
there is a possible obligation or a present obligation
and the likelihood of outflow of resources, is remote, no
provision or disclosure of contingent liability is made.

2.21 Operating Segments

Operating segments are reported in a manner
consistent with the internal reporting provided to the
Chief Operating Decision Maker (CODM). The CODM
is responsible for allocating resources and assessing
performance of the operating segments. Based on such
the Company operates in one operating segment, viz.
Materials Handling Solutions (MHS).

2.22 Earnings per Share

Basic earnings per share is calculated by dividing the profit
and loss for the year attributable to shareholders by the
weighted average number of shares outstanding during
the year. For the purpose of calculating diluted earnings
per share, the profit and loss for the year attributable to
Shareholders and weighted average number of shares
outstanding during the year is adjusted for the effects of
all dilutive potential shares.

2.23 Cash and cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise
cash at banks and on hand and short term deposits with
an original maturity of three months or less, which are
subject to an insignificant risk of change in value.

For the purpose of the statement of cash flows, cash and
cash equivalents include cash on hand, term deposits
and other short-term highly liquid investments, net of
bank overdrafts as they are considered an integral part
of the Company's cash management. Bank overdrafts
are shown within short term borrowings in the Balance
Sheet.

2.24 The Company has adopted a norm to round-off
any amount below ' 0.5 Lakh.

3. USE OF ESTIMATES AND JUDGEMENTS

The preparation of Financial Statements in conformity
with Generally Accepted Accounting Principles requires
management to make estimates and assumptions that
affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities at the date of the
Financial Statements and the results of operations during
the reporting period end. Although these estimates are
based upon management's best knowledge of current
events and actions, actual results could differ from these
estimates. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the
estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the
revision affects both current and future periods.

Judgements in Applying Accounting Policies

The preparation of the Company's Standalone 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
assets or liabilities affected in future periods.

Key Sources of Estimation of Uncertainty

The following are the key assumptions concerning
the future, and other key sources of estimation of
uncertainty at the end of the reporting period that may
have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the
next financial year.

3.1 Useful Lives of Property, Plant and
Equipments and Intangible Assets

As described in the material accounting policies, the
Company reviews the estimated useful lives of property,
plant and equipment and intangible assets at the end of
each reporting period.

3.2 Fair Value Measurements and Valuation
Processes

Some of the Company's assets and liabilities are
measured at Fair Value for financial reporting purposes.
Fair value measurements are categorised into Level 1, 2,
or 3 based on the degree to which the inputs to the Fair
Value measurements are observable and the significance
of the inputs to the Fair Value measurement in its entirety,
which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in
active markets for identical assets or liabilities that
the entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices
included within Level 1, that are observable for the
asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the
asset or liability. The Company engages third party
valuers, where required, to perform the valuation.

Information about the valuation techniques and inputs
used in determining the Fair Value of various assets
and liabilities are disclosed in the notes to the Financial
Statements.

3.3 Actuarial Valuation

The determination of Company's liability towards
defined benefit obligation to employees is made through
independent actuarial valuation including determination
of amounts to be recognized in the Statement of Profit
and Loss and in other comprehensive income. Such
valuation depend upon assumptions determined after
taking into account inflation, seniority, promotion and
other relevant factors such as supply and demand
factors in the employment market. Information about
such valuation is provided in notes to the Financial
Statements.

3.4 Claims, Provisions and Contingent
Liabilities

The Company has ongoing litigations with various
regulatory authorities. Where an outflow of funds
is believed to be probable and a reliable estimate of
the outcome of the dispute can be made based on
management's assessment of specific circumstances of
each dispute and relevant external advice, management
provides for its best estimate of the liability. Such accruals
are by nature complex and can take number of years to
resolve and can involve estimation uncertainty.

3.5 Inventory Obsolescence

The Company reviews the condition of its inventories
and makes provision against obsolete and slow-moving
inventory items which are identified as no longer suitable
for sale or use. The Company estimates the net realizable

value for such inventories based primarily on the latest
invoice prices and current market conditions. The
Company carries out an inventory review at each balance
sheet date and makes provision against obsolete and
slow-moving items. The Company reassesses the
estimation on each Balance Sheet date.

3.6 Impairment of Financial Assets

The Company assesses impairment based on Expected
Credit Losses (ECL) model on trade receivables.
The Company uses a provision matrix to determine
impairment loss allowance on the portfolio of trade
receivables. The provision matrix is based on its
historically observed default rates over the expected
life of the trade receivable and is adjusted for forward
looking estimates. At every reporting date, the historically
observed default rates are updated and changes in the
forward-looking estimates are analysed.

3.7 Impairment of Investment in Subsidiary

Determining whether the investments in subsidiaries
are impaired requires an estimate in the value in use. In
considering the value in use, the Management anticipates
the future cash flows, discount rates and other factors of
the underlying businesses/companies.

In case, where the operations have stopped, the value
in use is derived from the net asset value. Investment
over and above the net book value is recognized as
impairment.

3.8 Lease Liability

The period of lease in case of expired lease contract
pending renewal, the best available data based
on negotiations with the lessor and period of prior
agreement is considered.

3.9 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. During the year ended 31^st
March 2025, MCA has notified Ind AS 117 - Insurance
Contracts and amendments to Ind As 116 - Leases,
relating to sale and lease back transactions, applicable
from 1^st April 2024. The Company has assessed that
there is no significant impact on its financial statements.
On 9^th May 2025, McA notifies the amendments to
Ind AS 21 - Effects of Changes in Foreign Exchange
Rates. These amendments aim to provide clearer
guidance on assessing currency exchangeability and
estimating exchange rates when currencies are not
readily exchangeable. The amendments are effective for
annual periods beginning on or after 1^st April 2025. The
Company is currently assessing the probable impact of
these amendments on its financial statements.

12.2 Value of inventories of Raw Materials above is stated after provisions of ' 375 Lakhs (Previous year ' 563 Lakhs)
on slow moving stock.

12.3 Value of inventories of Work-In-Progress is stated after provisions of ' 78 Lakhs (Previous year ' 12 Lakhs)
for write down to net realizable value. Also there is a provision of ' 210 Lakhs (Previous year ' 532 Lakhs) as per the
valuation done in earlier year.

12.4 Raw Materials/Stores and Spares includes materials valuing ' 1,418 Lakhs lying in Bonded Warehouse/at
Port as on 31^st March 2025 which are imported in the earlier years. These inventories could not be released from the
authorities due non payment of customs duties and other charges etc. Further ' 15 Lakhs (Previous year ' 183 Lakhs)
have been written off during the year on account of auction by Customs Authority.

12.5 Value of inventories of Stock-in-Trade is stated after provision of:

a) ' 177 Lakhs (Previous year ' 177 Lakhs) on slow moving stock; and

b) ' 45 Lakhs (Previous year ' Nil) on stock other than mentioned in (a) above.

12.6 For details of Inventories given as security against borrowing (Refer Note 17.1)

28.1 Employee Benefits

The Company has recognized, in the Standalone
Statement of Profit and Loss for the year ended
31.03.2025 an amount of ' 205 Lakhs (Previous
year ' 164 Lakhs) as expenses under defined
contribution plans.

Defined Benefit Plans

(A) Gratuity Fund

The Company makes periodic contributions to the
Tractors India Limited Staff Gratuity Fund, a funded
defined benefit-plan for qualifying employees
administrated under a common Trust by the trustees
of the said fund for the benefit of the employees of the
Company.

Under the Gratuity plan, every employee is entitled to
gratuity, being higher of the amount, calculated under
the Company's plan (based on average salary of last 36
months and number of years of service, restricted to a
maximum of ' 20 Lakhs celling limit as per Gratuity Act,
1972). Effective from 1^st April 2025, the scheme rules
has been changed to align with the rule of payment of
Gratuity Act, 1972 and the impact of such changes are
reflected through past service cost. Further there has
been a change in normal retirement age from 58 years
for employees (76 years for Director)to 60 years for all
employees including Directors. Gratuity is payable on
death/retirement/termination and the benefit vests after
5 year of continuous service.

The most recent actuarial valuation of plan assets and
the present value of the defined benefit obligation was
carried out as at 31^st March 2025.

(B) Superannuation Fund

(i) Certain eligible employees of the Company who had
attained at least 45 years of age as on 01.04.2009
are entitled to Superannuation benefit under
the Superannuation scheme (a funded Defined
Benefit Plan under a common Trust- 'Tractors India
Limited Superannuation Fund Scheme', being
administered by the trustees of the said fund for
the benefit of employees of the Company). Under
the aforesaid benefit scheme the Company makes
periodic contribution to the Superannuation
Fund Scheme and a predetermined percentage
of salary is paid as pension on retirement. The
quantum of pension depends on the average
basic salary of eligible employee during the
last 36 months before retirement. The benefit
vests to employees with 5 years of continuous
service in Company in case of Retirement or
death; 20 years of service and attainment of 48
years of age in case of withdrawals. The normal
retirement age has been changed from 58 years
to 60 years and the impact has been reflected
through past Service Cost. (Refer note 28.2)
The most recent actuarial valuation of plan assets
and present value of the Defined Benefit Obligation
of Superannuation Fund was carried out as on 31^st
March 2025.

(ii) Employees who did not attain 45 years of age as on 01.04.2009 are under the purview of 'Defined Contribution
Scheme' in respect of service rendered from 01.04.2009. The benefit of services rendered by these employees up
to 31.03.2009 come under the purview of 'Defined Benefit Scheme' as indicated which is frozen as on 31.03.2009.
Hence for this category of employees, the benefit of cessation of service will be:

a) amount accumulated by annual contribution of 15% of Basic Salary; and

b) amount frozen as on 31.03.2009

(C) Provident Fund

The Company has two separate Trusts for the administration of the Provident Fund. The Company has an obligation
to fund any shortfall on the yield of the trust's investments over the administered interest rates on annual basis. These
administered rates are determined annually predominantly considering the social rather than economic factors.

Risk Management

The Defined Benefit Plans expose the Company to risk of actuarial deficit arising out of investment risk, interest rate

risk and salary cost inflation risk.

(a) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate
determined by reference to government/high quality bond yields; if the return on plan asset is below this rate, it
will create a plan deficit.

(b) Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset
by an increase in the return on the plan's debt investments.

(c) Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries
of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

(d) Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate
of the mortality of plan participants both during and after their employment. An increase in the life expectancy of
the plan participants will increase the plan's liability.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation was carried

out as at 31^st March 2025.

28.3 The basis used to determine overall expected rate of return on assets and the effect on major categories of Plan
Assets is as follows:

The major portions of the assets are invested in PSU Bonds and Special Deposit Scheme. Based on the asset allocation
and prevailing yield rates on these asset classes, the long term estimate of the expected rate of return on the fund
assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the
returns on matching Government Bonds.

28.4 The estimate of future salary increases takes into account inflation, seniority, promotion and other relevant
reasons.

28.5 Sensitivity Analysis

The Sensitivity Analysis below has been determined based on reasonably possible change of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant. These
sensitivities show the hypothetical impact of a change in each of the listed assumptions in isolation. While each of
these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in isolation and
the asset value changes may offset the impact to some extent. For presenting the sensitivities, the present value of
the Defined Benefit Obligation has been calculated using the Projected Unit Credit Method at the end of the reporting
period, which is the same as that applied in calculating the Defined Benefit Obligation presented above. There was no
change in the methods and assumptions used in the preparation of the Sensitivity Analysis from previous year.

C. Fair value of outstanding interest free loan of ' 9,682
Lakhs from a promoter group Company namely
Indocrest Transportation Private Limited which was
assigned in their favour by the previous promoters/
promoter's group of companies, has been carried
out as required in terms of Ind AS-109 and gain
on fair value of ' 7,916 Lakhs has been disclosed
as Exceptional Item in these Standalone Financial
Statements.

33 . Honourable adjudicating officer of the Securities and
Exchange Board of India (SEBI) has imposed a fine and
penalty of ' 100 Lakhs vide its order dated 30^th May 2024
in respect of matter relating to earlier years under section
15HA and 15HB of the SEBI Act, 1992. Subsequent to the
Company's appeal on the premise of complete change
in Management, The Securities Appellate Tribunal,
Mumbai has stayed the operation of the impugned order
till the next date of hearing subject to deposit of 50% of
the penalty amount, which has been deposited during
the financial year 2024-2025. The Company is hopeful
of the resolution of the matter in Company's favour and
hence no provision has been made for the above in these
Standalone Financial Statements. The next hearing date
is 3^rd July 2025.

36. CAPITAL MANAGEMENT

The Company aims at maintaining a strong capital base maximizing Shareholders' wealth, safeguarding business
continuity and augments its internal generations with a judicious use of borrowing facilities to fund spikes in working
capital that arise from time to time as well as requirements to finance business growth.

The Company determines the amount of capital required on the basis of annual business plan coupled with long
term and short term strategic investment and expansion plans. The funding needs are met through cash generated
from operations, long term and short term borrowings from banks and financial institutions (Including non convertible
debentures). On requirement, the Company also borrows from related and other parties to meet its financial needs.

The capital structure of the Company consists of net debt (borrowings as detailed in Note 17 offset by cash and cash
equivalents in Note 14-A, other bank balances in Note 14-B and deposits with banks including earmarked balances in
Note 9A) and total equity of the Company.

Net debt includes interest bearing borrowings less cash and cash equivalents, other bank balances (including non¬
current earmarked balances).

The table below summarises the capital, net debt and net debt to equity ratio of the Company.

Fair Value Hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at
fair value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by
reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of
investment in quoted equity shares and includes derivative contracts.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities,
measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets
and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values
are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices
from observable current market transactions in the same instrument nor are they based on available market data.

B) Financial Risk Management Objectives

The Company's activities expose it to a variety of financial
risks, including market risk, credit risk and liquidity risk.
The Company continues to focus on a system-based
approach to business risk management. The Company's
financial risk management process seeks to enable the
early identification, evaluation and effective management
of key risks facing the business. Backed by strong internal
control systems, the current Risk Management System
rests on policies and procedures issued by appropriate
authorities; process of regular reviews/audits to set
appropriate risk limits and controls; monitoring of such
risks and compliance confirmation for the same.

a) Market Risk

The Company's Financial Instruments are exposed
to market changes. The Company is exposed to the
following significant market risks:

• Foreign Currency Risk

• Interest Rate Risk

• Other Price Risk

Market Risk Exposures are measured using sensitivity
analysis. There has been no change to the Company's
exposure to market risks or the manner in which these
risks are being managed and measured.

Interest Rate Risk

Interest rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The objectives of the Company's interest rate risk management
processes are to lessen the impact of adverse interest rate movements on its earnings and cash flows and to
minimise counter party risks.

Exposure to Interest Rate Risk

The Company's interest rate risk arises from the term loans from banks carrying floating rate of interest. These
obligations expose the Company to cash flow interest rate risk. The exposure of the Company's borrowing to interest
rate changes as reported to the management at the end of the reporting period are as follows:

Price Risk

Equity price risk is related to change in market reference price of investments in equity securities held by the Company.
The fair value of quoted investments held by the Company exposes the Company to equity price risks. In general,
these investments are not held for trading purposes. The fair value of quoted investments in equity, classified as fair
value through Profit & Loss as at 31^st March 2025 is ' 12 Lakhs (31.03.2024: ' 15 Lakhs).

b) Liquidity Risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company mitigates
its liquidity risks by ensuring timely collections of its trade receivables, close monitoring of its credit cycle and ensuring
optimal movements of its inventories. The table below provides details regarding the remaining contractual maturities
of significant financial liabilities at the reporting date.

The 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.

The maturity analysis of undiscounted lease liabilities and secured borrowings are disclosed under Note 5.3 and 17.2
respectively.

c) Credit Risk

Credit risk is the risk that counter party will not meet its obligations leading to a financial loss. The Company has
its policies to limit its exposure to credit risk arising from outstanding receivables. Management regularly assess the
credit quality of its customers, on the basis which the terms of payment are decided. Credit limits are set for each
customer which are reviewed at periodic intervals.

For trade receivables, as a practical expedient, the Company computes credit loss allowance based on a provision
matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade
receivables and is adjusted for forward-looking estimates. The provision matrix at the end of the reporting period is
given below:

III) Terms and Conditions of Transactions
with Related Parties

a) The transactions with related parties are in
compliance with Section 177 and 188 of the
Companies Act, 2013, where applicable, except
certain transactions aggregating to ' 2,664 Lakhs
till 6^th February 2025 for which approval of the Audit
Committee under Section 177 of the Companies
Act, 2013 was taken subsequently in the meeting
held on 7^th February 2025.

b) Corporate Guarantee has been received from
Indocrest Defence Solutions Private Limited and
Stellar Advisory Services Private Limited towards
Term Loan and Working Capital Facility availed
from Axis Bank Limited and Bandhan Bank Limited
The outstanding amount towards Term Loan
and Working Capital Facility is ' 3,999 Lakhs and
' 2,844 Lakhs for Axis Bank Limited and ' 7,500

Lakhs and ' 1,136 Lakhs for Bandhan Bank Limited
respectively as at 31^st March 2025.

c) The amounts outstanding are unsecured and will be
settled in cash and cash equivalent.

d) The remuneration of Directors is determined by the
Nomination & Remuneration Committee having
regard to the performance of individuals and market
trends.

IV) In respect of the above parties, there is no provision
for impairment/doubtful debts as on 31^st March 2025
and no amount has been written off or written back
during the year in respect of debt due from/to them
except as disclosed above.

V) The above related party information is as identified by
the management.

40. ADDITIONAL DISCLOSURES RELATING TO THE
REQUIREMENT OF REVISED SCHEDULE III

40.1 Loans or Advances (repayable on
demand or without specifying any terms or
period of repayment) to Specified Persons

During the year ended 31^st March 2025 the Company
did not provide any loans or advances which remain
outstanding (repayable on demand or without specifying
any terms or period of repayment) to specified persons
(Nil as on 31^st March 2024).

40.2 Relationship with Struck off Companies

The Company did not have any transaction with
companies struck off during the year ended 31^st March
2025 and 31^st March 2024.

40.3 Details of Crypto Currency or Virtual
Currency

The Company has not traded or invested in Crypto
Currency or Virtual Currency during the year ended 31^st
March 2025 and 31^st March 2024.

40.4 Utilization of Borrowed Fund & Share
Premium

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.

The Company has not advanced or lent 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.

41.1 Pursuant to Indian Accounting Standards 33
(IndAS 33 'Earning Per Share') basic and diluted earning
per share for the year ended 31^st March 2024 have been
restated for the bonus element in respect of Right Issue
made during the year ended 31^st March 2025.

42. The Central Government has published The Code
on Social Security, 2020 and Industrial Relations Code,
2020 ("the Codes") in the Gazette of India, inter alia,
subsuming various existing labour and industrial laws
which deals with employee related benefits including
post - employment. The effective date of the code and the
rules are yet to be notified. The impact of the legislative
changes, if any, will be assessed and recognized post
notification of the relevant provisions.

43 . The Standalone Financial Statements were approved
by the Board of Directors on 26^th May 2025.

44 . The Company has used two accounting software(s)
for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has

operated throughout the year for all relevant transactions
recorded in the software(s) except:

i) for software capturing payroll records where audit
trail feature was not enabled; and

ii) the feature of recording audit trail (edit log) facility
was not enabled at the database level to log any
direct changes to data when using certain access
rights for software other than that mentioned in (i)
above.

Further, during the year there were no instances of the
audit trail feature being tampered with wherein such
audit trail feature was enabled.

Furthermore, other than the consequential impact of the
exceptions given above, the audit trail has been preserved
by the Company as per the statutory requirements for
record retention where such feature was enabled.

45. The previous year figures have been regrouped/
reclassified wherever necessary, to conform the current
year's classification.

Notes forming part of the Standalone Financial Statements 1- 45

In terms of our report of even date attached

For Singhi & Co. For and on behalf of Board of Directors of

Chartered Accountants TIL Limited

Firm's Registration No. 302049E

Giridhari Lal Choudhary Sunil Kumar Chaturvedi Ayan Banerjee

Partner Chairman & Managing Director Whole-Time Director

Membership No. 052112 (DIN: 02183147) (DIN: 07563764)

Place: Kolkata Kanhaiya Gupta Chandrani Chatterjee

Date: 26^th May, 2025 Chief Financial Officer Company Secretary