2.16 Provisions:

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that the Company will be
required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.

The amount recognised as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation.

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is
virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably.

2.17 Warranties:

Provisions for the expected cost of warranty obligations
are recognised at the date of sale of the relevant
products as per management's best estimate of the
expenditure required to settle the Company's obligation.

Provision is made for estimated warranty claims in
respect of products sold which are still under warranty at
the end of the reporting period. Management estimates
the provision based on historical warranty claim
information and any recent trends that might suggest
future claims could differ from historical amounts.

2.18 Financial instrument:

Financial assets and financial liabilities are recognised
when the Company becomes a party to the contractual
provisions of the instruments. Financial assets and
liabilities are offset and the net amount is reported in
the Standalone Balance Sheet where there is a legally
enforceable right to offset the recognised amounts and
there is an intention to settle on a net basis or realise the
assets and settle the liabilities simultaneously.

2.19 Financial assets:

Purchases or sales of financial assets in ordinary
course of business are recognised and derecognised
on a trade date basis. Regular purchases or sales
are purchases or sales of financial assets that require
delivery of assets within the time frame established by
regulation or convention in the market place.

All financial assets are recognized initially at fair value
plus in the case of financial assets not recorded at fair
value through profit or loss (FVTPL), transaction costs
that are attributable to the acquisition of the financial
asset. However, trade receivables that do not contain
a significant financing component are measured at
transaction price.

All recognised financial assets are subsequently
measured in their entirety at either amortised cost
or fair value, depending on the classification of the
financial assets.

Disputed Dues are those receivables against which
legal cases has been filed with the corresponding legal
authorities. The company writes off a financial asset
when there is information indicating that the debtor is
in severe financial difficulty and there is no realistic
prospect of recovery. Financial assets written off may
still be subject to enforcement activities under the
company's recovery procedure, taking into account
legal advice where appropriate. Any recoveries made
are recognized in Profit or loss.

2.19.1 Financial assets at fair value through profit and
loss (FVTPL):

Financial assets at FVTPL are measured at fair value
at the end of each reporting period, with any gains
or losses arising on re-measurement recognised
in the Statement of profit and loss. The net gain or
loss recognised in the Statement of profit and loss
incorporates any dividend or interest earned on the
financial asset and is included in the 'Other income /
Other Expenses' line item. Dividend on financial assets
at FVTPL is recognised when the Company's right to
receive the dividends is established, it is probable that
the economic benefits associated with the dividend will
flow to the entity and the amount of dividend can be
measured reliably.

2.19.2 Impairment of financial assets:

The Company applies the expected credit loss model
for recognising impairment loss on financial assets
measured at amortised cost, lease receivables, trade
receivables, other contractual rights to receive cash
or other financial asset, and financial guarantees not
designated as at FVTPL.

For trade receivables or any contractual rights to
receive cash or another financial asset that results
from transactions that are within the scope of Ind AS
115 “Revenue from Contracts with Customers”, the
Company always measures their allowances at an
amount equal to lifetime expected credit losses.

Further, for the purpose of measuring lifetime expected
credit loss allowance for trade receivable, the Company
has used a practical expedient as permitted under Ind
AS 109 “Financial Instruments”. This expected credit
loss allowance is computed based on a provision matrix
which takes into account historical credit loss experience
and adjusted for forward-looking information.

2.19.3 Derecognition of financial assets:

The Company derecognises a financial asset when
the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership
of the asset to another party. If the Company neither
transfers nor retains substantially all the risks and
rewards of ownership and continues to control the
transferred asset, the Company recognises its retained

interest in the asset and an associated liability for
amounts it may have to pay. If the Company retains
substantially all the risks and rewards of ownership of
a transferred financial asset, the Company continues
to recognise the financial asset and also recognises a
collateralised borrowing for the proceeds received.

2.19.4 Foreign exchange gains and losses:

The fair value of financial assets denominated in a
foreign currency is determined in that foreign currency
and translated at the spot rate at the end of each
reporting period.

For foreign currency denominated financial assets
measured at amortised cost and FVTPL, exchange
differences are recognised in the Statement of profit
and loss, except for those which are designated as
hedging instruments in a hedging relationship.

2.20 Financial liabilities:

Financial liabilities are subsequently measured at
amortised cost or at FVTPL.

2.20.1 Financial liabilities at FVTPL:

Financial liabilities such as derivative that is not
designated and effective as a hedging instrument are
classified as at FVTPL.

Financial liabilities at FVTPL are stated at fair value,
with any gains or losses arising on remeasurement
recognised in the Statement of profit and loss. The net
gain or loss recognised in the Statement of profit and
loss is included in the ‘other income / expense' line item.

2.20.2 Financial liabilities subsequently measured at
amortised cost:

Financial liabilities that are not held for trading and
are not designated as at FVTPL are measured at
amortised cost.

2.20.3 Foreign exchange gains and losses:

For financial liabilities that are denominated in a foreign
currency and are measured at amortised cost at the
end of each reporting period, the foreign exchange
gains or losses are determined based on the amortised
cost of the instruments and are recognised in ‘Other
income / Other Expenses'.

The fair value of financial liabilities denominated in
foreign currency is determined in that foreign currency

and translated at the spot rate at the end of the reporting
period. For financial liabilities that are measured at
FVTPL, the foreign exchange component forms part of
the fair value gains or losses and is recognised in the
Statement of profit and loss.

2.20.4 Derecognition of financial liabilities:

The Company de-recognises financial liabilities when
the Company's obligations are discharged, cancelled
or have expired.

2.21 Derivative financial instruments:

The Company enters into foreign exchange forward
contracts to manage its exposure to foreign
exchange rate risks.

Derivatives are initially recognised at fair value at the
date the derivative contracts are entered into and
are subsequently remeasured to their fair value at
the end of each reporting period. The resulting gain
or loss is recognised in the Statement of profit and
loss immediately.

2.22 Contingent liabilities and contingent assets:

Contingent liability is disclosed in the case of:

i) a present obligation arising from a past event,
when it is not probable that an outflow of resources
will be required to settle the obligation

ii) a present obligation when no reliable estimate
is possible, and

iii) a possible obligation, arising from past
events where the probability of outflow of
resources is not remote.

Contingent assets are neither recognised nor disclosed.

Contingent liabilities are reviewed at each balance
sheet date and updated / recognised as appropriate.

2.23 Trade payables:

These amounts represent liabilities for goods and
services provided to the group prior to the end of
the financial year which are unpaid. Trade and other
payables are presented as current liabilities unless
payment is not due within 12 months after the reporting
period. They are recognised initially at their fair value
and subsequently measured at amortised cost using
the effective interest method.

Other Accounting Policies:

2.24 Non-current assets held for sale:

Non-current assets are classified as held for sale if their
carrying amount will be recovered principally through
a sale transaction rather than through continuing use.
This condition is regarded as met only when the asset
is available for immediate sale in its present condition
subject only to terms that are usual and customary for
sales of such asset and its sale is highly probable.

Non-current assets classified as held for sale are
measured at the lower of their carrying amount and fair
value less costs to sell.

2.25 Borrowing cost:

Borrowing costs that are attributable to the acquisition,
construction or production of qualifying assets are
capitalised as part of the cost of such assets till such
time the asset is ready for its intended use or sale.
A qualifying asset is an asset that necessarily requires
a substantial period of time to get ready for its intended
use or sale. All other borrowing costs are recognised as
an expense in the year in which they are incurred.

2.26 Dividends:

Final dividends on shares are recorded as liability on
the date of approval by the shareholders and interim
dividends are recorded as liability on the date of
approval by the Company's Board of Directors.

2.27 Investment Property:

Investment properties are properties held to earn rentals
and/or for capital appreciation. Investment properties
are measured initially at cost including transaction costs.
Subsequent to initial recognition investment properties
are measured in accordance with Ind AS 16 “Property
Plant and Equipment”, requirements for cost model.

An investment property is de-recognised upon disposal
or when the investment property is permanently
withdrawn from use and no future economic benefits
are expected from the disposal. Any gain or loss
arising on derecognition of the property (calculated
as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in
the Statement of profit and loss in the year in which the
property is de-recognised.

Investment property owned by the Company is
depreciated under the straight-line method over its
estimated useful life of 30 years.

3. CRITICAL ACCOUNTING JUDGEMENTS
AND KEY SOURCES OF ESTIMATION
UNCERTAINTY:

I n the application of the Company's accounting policies,
which are described in Note 2, the management of the
Company are required to make judgements, estimates
and assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions
are based on historical experience and other factors
that are considered to be relevant. Actual results may
differ from these estimates.

The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised 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.

In the following areas the management of the Company
has made critical judgements and estimates:

a. Employee Benefits:

The present value of the defined benefit
obligations depends on a number of factors that
are determined on an actuarial basis using a
number of assumptions. The assumptions used
in determining the net cost (income) for post
employments plans include the discount rate.
Any changes in these assumptions will impact the
carrying amount of such obligations.

The Company determines the appropriate discount
rate at the end of each year. This is the interest rate
that should be used to determine the present value

of estimated future cash outflows expected to be
required to settle the defined benefit obligations.
In determining the appropriate discount rate,
the Company considers the interest rates of
government bonds of maturity approximating the
terms of the related plan liability.

b. Useful lives of property, plant and
equipment & intangible assets (Including
Intangible Asset under development):

The Company reviews the useful life of property,
plant and equipment & intangible assets at the
end of each reporting period. This reassessment
may result in change in depreciation expense in
future periods.

The Company's assessment of carrying value
of intangible under development have inherent
challenge with accurately predicting the future
economic benefits which includes estimate
of volume projection, margin, regulatory changes,
expected capital expenditure for production
phase and judgement around the probability
of acceptance of technology/new product.
Estimate and judgement around these inputs are
critical to assess the carrying value of assets.
The Company undertakes significant levels of
research and development activities for engine
development and its various uses. A periodic
review is undertaken during the life cycle of the
engine. The Company applies judgement to
determine the point at which the recognition
criteria under accounting standard is satisfied.

c. Provision for warranty:

The Company gives warranties for its products,
undertaking to repair or replace the items that
fail to perform satisfactorily during the warranty
period. Provision made at the year-end represents
the amount of expected cost of meeting such
obligations of rectification / replacement.
The timing of the outflows is expected to be within
a period of nine to sixty six months.

d. Provisions and Contingent Liabilities:

A provision is recognised when the Company
has a present obligation as a result of past event
and it is probable that an outflow of resources
will be required to settle the obligation, in respect
of which a reliable estimate can be made.
Provisions (excluding retirement benefits and
compensated absences) are not discounted to its
present value and are determined based on best
estimate required to settle the obligation at the
Balance sheet date. These are reviewed at each
Balance sheet date and adjusted to reflect the
current best estimates. Contingent liabilities are not
recognised in the standalone financial statements.
A contingent asset is neither recognised nor
disclosed in the standalone financial statements.

e. Impairment of Investment in Subsidiaries:

The investments in subsidiaries are carried at cost
and tested for impairment in accordance with
provisions applicable to impairment of non-financial
assets. The recoverable amount is determined
based on value in use. The determination
of recoverable amount involves significant
judgements such as market value, future projection
of revenue, EBITDA, weighted average cost of
capital and terminal growth.

The recoverable amount is significantly dependant
on achievement of revenue growth and any
change in revenue growth projection could have
an impact on recoverable value.

Based on the above, no impairment was identified
as of March 31,2026 as the recoverable amount is
higher than carrying value.

f. Impairment of financial assets:

The group uses a provision matrix to measure the
lifetime expected credit losses as per the practical
expedient prescribed under Ind AS 109. The trade
receivables are mainly related to contracts for sale

of goods and services for which a provision matrix
is adjusted for historical credit loss experience
to measure the lifetime expected credit losses
as per the practical expedient prescribed
under Ind AS 109.

3A. Recent accounting pronouncements:

Ministry of Corporate Affairs (“MCA”) has notified
amendments to the existing standards-

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

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

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

d) Lack of Exchangeability - Amendments to Ind AS 21

The Company has assessed these amendments and
noted that there is no significant impact of the same on
its standalone financial statements.

3B. New standards or amendments not yet adopted

Classification of Liabilities as Current or Non-current
and Non-current Liabilities with Covenants -

Amendments to Ind AS 1 - This amendment also
includes specific provisions that will take effect for
reporting periods beginning on or after 1 April 2026, as
outlined below.

Under the existing Ind AS 1, where there is a breach
of a material provision of a long-term loan arrangement
on or before the end of the reporting period with the
effect that the liability becomes payable on demand
on the reporting date, the entity does not classify
the liability as current, if the lender agreed, after
the reporting period and before the approval of the
financial statements for issue, not to demand payment
as a consequence of the breach.

However, the amended requirements stipulate that
entities will no longer be permitted to consider lender
waivers that are granted after the reporting date but
before the financial statements are approved for the
purpose of classification of loans. This amendment
is required to be applied retrospectively in
accordance with Ind AS 8.

The Company does not expect this amendment to have
an impact on its standalone financial statements.

i) The non- current investments in unquoted equity shares of subsidiaries are stated at cost.

ii) During the year, the Company subscribed to rights issue of 36,949 Shares (PY 1,83,979 Shares) of Greaves Finance Limited
for ' 22 Crore.

iii) During the year, the Company has acquired additional 10% of the shareholding, for a consideration of' 65.88 Crore, in Excel
Controlinkage Private Limited (“Excel"), material subsidiary of the Company, through secondary route. With this, the Company's
aggregate shareholding in Excel has increased to 80% w.e.f. August 12, 2025. It is further informed that the said acquisition is in
accordance with the definitive agreement dated April 6, 2023.

iv) Also refer note 31.

Footnotes to Loans:

1. a) During the year, the Company granted additional loan of ' 44.00 Crores (Previous year '33.00 Crore) to Greaves

Finance Limited (wholly owned subsidiary) at an interest rate ranging from 10% - 11.10% p.a. for its working capital
requirements. This loan is repayable with interest within 12-24 months or such extended period as may be agreed
mutually. Further there is repayment by Greaves Finance Limited during the year of '41 Crores (Previous year '63 Crore).
(Amount outstanding ' 3 Crores).

b) During the year, the Company did not granted additional loan (previous year ' 6.40 Crore) to its wholly owned subsidiary
Greaves Technologies Limited. Further there is no repayment by Greaves Technologies Limited during the year.
(Amount outstanding ' 8.4 Crore).

c) Maximum amount outstanding at any point of time during the year

- ' 18.00 Crore to Greaves Finance Limited

- ' 8.40 Crore to Greaves Technologies Limited

- ' 94.70 Crore to Greaves Electric Mobility Limited

2. During the year, the Company granted loan of ' 94.70 Crore (previous year Nil) to its wholly owned subsidiary
Greaves Electric Mobility Ltd. for its working capital requirements at an interest rate ranging from 9.35% - 10.10%
p.a. This Loan is repayable with interest within 12 months or such extended period as may be agreed mutually.

Out of the above, loan amounting to ' 60.00 crore was utlised by Greaves Electric Mobility Limited (‘GEML') for
onward repayment of loans availed by GEML and the funding to certain subsidiaries of the GEML towards meeting
their business requirements and /or loan repayments. The utilisation of the fund by Greaves Electric Mobility Limited
is as summarized below:

Other than as disclosed above, 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:

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

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

There are no loans granted to the promoters, directors and Key management personnels and any other related
parties other than disclosed above as defined under the Companies Act, 2013 which are repayable on demand or
payment terms or period of repayment is not defined.

14C Terms / Rights attached to equity shares

i) The Company has only one class of equity shares having face value of ' 2 per share. The equity shares rank pari
passu in all respects including voting rights and entitlement to the dividend.

ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining
assets of the Company, after distribution of all preferential amounts, if any, in proportion to the number of equity
shares held by them.

iii) Every holder of equity shares present at a meeting in person or by proxy is entitled to one vote, and upon a poll each
share is entitled to one vote.

As per records of the Company, including its register of shareholders/members and other declarations received from
shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership
of equity shares.

There were no shares issued for consideration other than cash during the period of 5 years immediately preceding the
reporting date.

14E Dividend

The amount that can be distributed as dividend by the Company to its equity shareholders is determined considering the
requirements of the Companies Act, 2013.

On May 6, 2026, the Board of Directors has proposed final dividend of ' 2 per share (previous year ' 2 per share) on face
value of ' 2 each (total dividend payout ' 46.58 Crore, (previous year '46.60 Crore)). The proposed dividend is subject
to approval of the shareholders in the ensuing Annual General Meeting.

1. Securities premium: The reserve is used to record the premium on issue of shares. The reserve is utilised in
accordance with the provisions of the Act.

2. Capital reserve: The capital reserve is generated on consolidation due to the difference between the assets
received being higher than the consideration paid.

3. General Reserve: The reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another and is not an
item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to
the Statement of profit and loss.

4. Share based payment reserve: The share-based payments reserve is used to recognise the grant date fair value
of options issued to employees under Value Ind AS Employee stock option plan.

5. Capital Redemption reserve: The group is required to create a Capital redemption reserve out of the profits which
is available for payment of dividend.

6. Retained Earnings: Retained Earnings comprises of the undistributed earning after tax, kept aside to meet
future obligations.

15A Share-based payments

I. A. The Company introduced and implemented ‘Greaves Cotton- Employees Stock option Plan 2020' (ESOP

2020), with following terms:

i. Create, grant, offer, issue and allot stock options at any time in one or more tranches as determined by
the Nomination and Remuneration Committee, based on employee's grade, performance rating and
such other criteria as may be considered appropriate to or for the benefit of such person(s) who are in the
permanent employment of the Company, whether working in India or outside India, including Director of
the Company, whether Whole-time Director or not, and such other persons as may from time to time be
allowed to be eligible, but excluding Promoter, Promoter group and Independent Directors.

ii. Such number of stock options convertible into Equity Shares of the Company, in one or more tranches, not
exceeding 2.00% of the paid-up share capital of the Company of the face value of ' 2/- each (Rupees Two
only) to the eligible employees of the Company, at such price or prices, and on such terms and conditions
as may be fixed or determined by the Board.

iii. The options would vest after 1 year but not later than 8 years from the date of individual grant as decided
by the Nomination and remuneration committee.

iv. Exercise Price is the par value of the Share payable by the Eligible Employee for the Exercise of each
Option Granted under the Scheme for the allotment of one Share.

v. The Company will follow fair value method for computing the compensation cost, if any, for the Options
Granted, in accordance with the applicable Law.

B. ESOP scheme I and II was approved by the Shareholders on July 11,2020 & February 08, 2025 respectively.

A. Expense on Employee Stock Option Schemes debited to the Statement of profit and loss during 2025-26 is
' 9.19 Crores (PY ' 1.58 Crores) (net).

B. The perquisite amount on exercise of employee stock options will be considered as a part of the remuneration
of the Executive Directors. Executive Directors may be granted stock options in subsidiary companies as per
their Schemes after taking necessary approvals. Perquisites may be added to the remuneration of concerned
directors and considered in the limits applicable to the Company.

IV Share options granted under the Company's employee share option plan carry no rights to dividends and
no voting rights.

Provision is made for estimated warranty claims in respect of products sold which are still under warranty at the end of the
reporting period. These claims are expected to be settled over the period and hence have been classified as current and
non-current based on the historic settlement trends. Management estimates the provision based on historical warranty
claim information and any recent trends that might suggest future claims could differ from historical amounts.

The Company generally provides warranty is based on time period for warranty varies for each category of products
sold. The assumptions made in relation to the current period are consistent with those in the prior year. Factors that could
impact the estimated claim information include the success of the Company's productivity and quality initiatives. As at
March 31,2026, this particular provision had a carrying amount of ' 52.58 crore (March 31,2025: ' 43.97 crore). If claims
costs were to differ by 10% from management's estimates, the warranty provisions would be an estimated ' 5.26 crore
higher or lower (March 31,2025: 4.40 crore higher or lower).

Note 2: The entire amount of the provision of ' 9.12 crore (March 31,2025: ' 7.94 crore) is presented as bifurcated into
non-current and current based on the past experience, the Group does not expect all employees to avail the full amount
of accrued leave or require payment for such leave within the next 12 months.

26B Defined benefit plans

The Company has a defined benefit plan (the ‘Gratuity Plan') which is managed by the Greaves Limited Gratuity Fund.
The Gratuity Plan provides for a lump sum payment to vested employees at retirement or termination of employment,
whichever is earlier, based on the respective employee's last drawn salary and years of employment with the Company.
The benefit vests after five years of continued service.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were
carried out as at March 31,2026. The present value of the defined benefit obligations and the related current service cost
and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and
the amounts recognised in the Company's financial statements as at balance sheet date:

Sensitivity analysis:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in
demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive
to are discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms
on the reported defined benefit obligation (DBO) at the end of the reporting period arising on account of an increase or
decrease in the reported assumptions by 50 basis points.

26C Risk exposure :

Risk associated with defined benefit plan.

Gratuity is defined benefit plan and Company is exposed to the following risks :

i) Interest rate risk : A fall in the discount rate which is link to the government security rate will increase the present
value of the liability requiring higher provisions.

ii) Salary risk : The present value of defined benefit plan liability is calculated by reference to the future salaries of
members. As such, an increase in salary of the members more than assumed level will increase the plan's liability.

iii) Asset liability matching (ALM) risk: The plan faces the ALM risk as the matching cash flows, the Company has to
manage payout based on pay as you go basis from own funds.

iv) Mortality risk : Since the benefit under the plan is not payable for life time and payable till retirement age only, plan
does not have any longevity risk.

i. The Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations
Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code,
2020 - consolidating 29 existing labour laws on November 21, 2025. The Company has assessed the impact of
these changes on the basis of best information available, consistent with the guidance provided by the Institute of
Chartered Accountants of India. The Company has accrued a provision to the extent of ' 15.75 crore on account of
this change. The Company continues to monitor the finalisation of Central / State Rules and clarifications from the
Government on other aspects of the Labour Code.

ii. The Company has recognized impairment loss in respect of ETA Motors and Controller project, as there was no
significant project with the customer, which demonstrated the reasonability of the cash flow and the timeline. In such
scenario, the Company evaluated it's carrying value and determined same to be not recoverable and hence entire
carrying value for the project amounting to ' 3.51 crore has been impaired and the entire of prepayments made by
the Company towards the project amounting to ' 12.47 crores has also been provided by the Company.

iii. A fee of ' 3.58 crore was charged on the Company on account of non-adherence to land use regulation.

iv. During the previous year, the Company had realised a profit on sale of immovable properties amounting to
' 2.35 crore and incurred a one-time settlement cost with one of the customers of ' 4.40 crore.

31 - FINANCIAL RISK MANAGEMENT

The Company's activities expose it to a variety of financial risks: market risk, credit risk, and liquidity risk. The Company's
primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its
financial performance.

31A Capital risk management :

The Company's objective for capital management is to maximize shareholder wealth, safeguard business continuity and
support the growth of the Company. The Company determines the capital management requirement based on annual
operating plans and long term and other strategic investment plan.

31C Financial and liquidity risk management objectives :

i) Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company monitors
the rolling forecast of its liquidity position based on expected cash flows. The Company's approach is to ensure
that it has sufficient liquidity or borrowing headroom to meet its obligations at all points in time. The Company has
sufficient short-term fund-based lines, which provide healthy liquidity and these carry the highest credit quality
rating from a reputed credit rating agency.

ii) The Company has a policy of investing surplus funds in fixed deposits with banks and in overnight debt mutual funds.

iii) The average payment terms of creditors (trade payables) is in the range of 60-180 days. In case of MSMED
creditors the payment terms are within 45 days. Other financial liabilities viz. employee payments, dealer deposits
are payable within one year.

31D Market Risk :

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises two types of risks: Currency risk and interest rate risk. Financial instruments
affected by market risk include investments, trade payables, trade receivables and loans.

31E Foreign currency risk management :

The Company enters into international transactions and is exposed to resultant foreign exchange risk, primarily with
respect to the USD, CNY (RMB) and EUR . Foreign exchange risk arises from future commercial transactions and
recognised assets and liabilities denominated in a currency that is not the Company's functional currency (ss). The risk
is measured through a forecast of highly probable foreign currency cash flows. The Company based on market trends
and its expectation in respect of fluctuation in foreign currencies takes decision to hedge its currency risk using forward
foreign exchange contracts to minimize the volatility of highly probable transactions.

(a) Hedged Foreign currency risk exposure:

The Company's exposure to foreign currency risk at the end of the reporting period expressed in '. Further there are
open hedge positions executed by the Company as at March 31,2026 and March 31,2025

Unhedged Foreign currency exposure

The Carrying amounts of the Company's foreign currency denominated unhedged monetary assets and liabilities at
the end of each reporting period are as follows.

31F Credit risk management :

i) Trade receivables:

Trade receivables are deemed to be past due or impaired with reference to the Company's normal terms and
conditions of business. These terms and conditions are determined on a case to case basis with reference to the
customer's credit quality and prevailing market conditions.

The credit quality of the Company's customers is monitored on an ongoing basis and assessed for impairment
where indicators of such impairment exist. lifetime expected credit loss model) for impairment of undisputed trade
receivables. The solvency of the debtor and their ability to repay the receivable is considered in Disputed trade
receivables has been treated as a separate group and on the same, specific provision as the case may be has been
considered. The Company uses simplified approach (i.e. assessing receivables for impairment. Where receivables
have been impaired, the Company actively seeks to recover the amounts in question and enforce compliance with
credit terms. There is no single customer dependency. As at March 31 2026, the Company has top five unsecured
customers that owed to the company ' 53.34 Crore which accounted for 19% of the total trade receivables. (As at
March 31 2025, the Company has top five unsecured customers that owed to the company '73.00 Crore which
accounted for 26% of the total trade receivables).

ii) Other receivables and deposits with banks (including margin money deposits)

Other financial assets that are potentially subject to credit risk consists of deposits with banks, security deposits
and receivables from related parties. The Company assesses the recoverability from these financial assets on
regular basis. Factors such as business and financial performance of counterparty, their ability to repay, regulatory
changes and overall economic conditions are considered to assess future recoverability. The Company charges
interest on such loans at arms length rate considering counterparty's credit rating. Based on the assessment
performed, the Company considers all the outstanding balances of such financial assets to be recoverable as on
balance sheet date.

iii) Loan to related parties:

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. In particular, the following indicators are incorporated:

• internal credit rating

• 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

• significant changes in the expected performance and behaviour of the counterparty, including changes in the
payment status of the counterparty in the Company and changes in the operating results of the counterparty.

Macroeconomic information (such as market interest rates or growth rates) is incorporated as part of the internal
rating model. Regardless of the analysis above, a significant increase in credit risk is presumed if a counterparty
is more than agreed period past due in making a contractual payment. A default on a financial asset is when the
counterparty fails to make contractual payments as and when they fall due. Based on the assessment made by the
Company during the year, the Company considers loans given to related parties as recoverables and further the
identified credit loss for such loans was immaterial.

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities. Investment in mutual funds are
valued based on the NAV obtained from asset management company.

Level 2: fair value measurements are those derived from 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); and

Level 3: fair value measurements are those derived from valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable inputs).

There were no transfers between Level 1 and 2 during the current or prior year.

Other than as disclosed above, all the financial assets and financial liabilities are classified as level 3 for the purpose of
determination of fair value hierarchy.

31H Interest Rate Risk :

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. Interest rate change does not affect significantly to the company. Company does not
have any exposure to the future cash flows resulting from change in interest rate as the Company's net obligations and
assets carries fixed interest rate.

32 SEGMENT INFORMATION

In accordance with Ind AS 108 ‘Operating Segments', segment information has been given in the consolidated financial
statements of the Company and therefore, no separate disclosure on segment information is given in standalone
financial statements.

34 BACKUP AND AUDIT TRAIL

The Company has used an accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility that has operated during the year for all relevant transactions recorded in the software, except
that the audit log is not maintained in case of modification by certain users with specific access and has not been
enabled at the database level to log any direct data changes. Further, the Company has preserved audit trail, to the
extent maintained in the prior year as per the statutory requirements for record retention.

The books of accounts and other books and papers have been kept by the Company in electronic mode on a server
physically located in India except for the file server wherein the daily back up is not maintained on server physically
located in India.

Notes

1) The Company is subject to various indirect tax proceedings under applicable statutes, including Goods and
Services Tax (GST), Value Added Tax (VAT)/Sales Tax, Central Excise and Customs laws, arising in the ordinary
course of business. These matters primarily relate to issues such as input tax credit mismatches, non-submission of
statutory forms, classification disputes, short payment of tax, denial of exemptions/credits and other interpretational
matters. As at March 31,2026, the aggregate amount involved in such disputed matters under appeal/assessment
at various appellate forums and adjudicating authorities is approximately ' 49.83 crore. Based on management
experts' advice and management's assessment of the merits of the respective cases, the Company believes
that it has strong grounds to contest these demands and the likelihood of an outflow of economic resources is
not probable. Accordingly, no provision has been recognised in respect of these matters, and the same have
been disclosed as contingent liabilities. The Company will continue to monitor the developments in these cases
and reassess the position, including the need for provisioning, where necessary, in accordance with applicable
accounting standards.

2) The Company is subject to various legal proceedings and claims filed by third parties in the ordinary course
of business, including contractual disputes, recovery suits, property-related matters, consumer complaints,
and other civil claims. These cases are pending before different judicial forums across jurisdictions, with claim
amounts aggregating to significant sums. The Company has evaluated these claims based on facts of each case,
legal advice obtained, and the current stage of proceedings, and believes that it has strong grounds to contest
such claims. Accordingly, these claims have not been acknowledged as debts. In management's assessment,
the likelihood of an outflow of economic resources is not probable in respect of such matters, and therefore no
provision has been recognised in the financial statements. The Company will continue to monitor the developments
in these cases and reassess the need for provisioning or disclosure, as appropriate, in accordance with applicable
accounting standards.

3) The Company is involved in certain labour-related litigations across its manufacturing units, primarily at Aurangabad
and Ranipet, arising in the ordinary course of business. These cases pertain to employee disputes and claims
filed against the Company. As at March 31, 2026, there are multiple ongoing cases with an aggregate amount
under dispute of approximately ' 14.45 crore. Based on legal advice and the current status of these matters,
management believes that the likelihood of a material outflow of economic resources is not probable at this stage
and accordingly, no provision has been recognised in the financial statements. The Company will continue to
monitor the developments in these cases and adjust the disclosures or provisions, as appropriate.

4) The Company has issued a corporate guarantee in favour of Tata Capital Limited & IDFC Bank Limited on behalf of
Greaves Electric Mobility Limited to secure a ' 140 crore term loan facility.

38 LEASES

On adoption of Ind AS 116 : Leases, the Company recognised lease liabilities in relation to leases which had previously
been classified as ‘operating leases' under the principles of Ind AS 17 Leases. These liabilities are measured at the
present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate, presently
determined at 8.50% p.a.

On application of Ind AS 116, the nature of expenses has changed from lease rent to depreciation cost for the right-of-
use assets, and finance cost for interest accrued on lease liability.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient
to meet the obligations related to lease liabilities as and when they fall due.

Extension and termination options

Extension and termination options are included in some of the leases entered by the Company. These are used to
maximise operational flexibility in terms of managing the assets in the Company's operations. The majority of extension
and termination options held are exercisable by both the Company and by the respective lessor. Further as on the
reporting date the Company expects not to use those options.

Incremental borrowing rate

Incremental borrowing rate is determined by management based on the unsecured borrowing rate applicable
for the Company.

40 DISAGGREGATED REVENUE INFORMATION AS PER IND AS 115 - REVENUE FROM CONTRACTS
WITH CUSTOMERS

The table below presents disaggregated revenue from contact with customers for the year ended March 31, 2026
and March 31, 2025. The Company believes that this disaggregation best depicts how the nature, amount, timing and
uncertainty of revenues and cash flows are affected by industry, market and other economic factors.

41 ADDITIONAL REGULATORY INFORMATION

i. No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act 1988 and Rules made thereunder.

ii. The Company has no borrowings from banks and financial institutions.

iii. The Company has not been declared willful defaulter by any bank or financial institution or other lender.

iv. The Company does not have any transactions with companies struck off u/s 248(5) of the Companies Act, 2013
except for the following entities:

vii. The Company has not received any funds 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,

viii. The Company does not have any such transaction which is not recorded in the books of account that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such
as, search or survey or any other relevant provisions of the Income Tax Act, 1961.)

ix. The Company has complied with the number of layers prescribed under the Companies Act 2013, read with the
companies (Restriction on number of layers) Rules, 2017.

42 The figures for the corresponding previous year have been regrouped or re-classified, wherever necessary, to make
them comparable with the figures of the current year.