s. Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material,
provisions are discounted using equivalent period government securities interest rate. Unwinding of the discount is
recognised in the standalone statement of profit and loss as a finance cost. Provisions are reviewed at each balance
sheet date and are adjusted to reflect the current best estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company or a present obligation that arises from past events where it is either not probable that
an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Information
on contingent liabilities is disclosed in the Notes to the standalone financial statements. Contingent assets are not
recognised, but disclosed in the standalone financial statements. However, when the realisation of income is virtually
certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.

t. Employee Benefits

A) Short term employee benefits: All employee benefits payable within twelve months from the end of the period
in which services are rendered are classified as short term employee benefits. Benefits such as salaries, wages, short
term compensated absences, etc. and the expected cost of bonus, ex-gratia are recognised in the period in which the
employee renders the related service.

B) Post employment benefits

i. Defined contribution plans: The Company's superannuation scheme, state governed provident fund and family
pension scheme are defined contribution plans. The contribution paid/ payable under the schemes, is recognised
during the period in which the employee renders the related service.

Provident Fund and family pension fund contributions are charged to the standalone statement of profit and loss as
incurred. The Company's contribution to the statutory provident fund and family pension fund is determined based
on a fixed percentage of the eligible employees' salary and charged to the standalone statement of profit and loss on
accrual basis. The Company does not have any obligation other than the contribution made to the fund administered
by the government.

ii. Gratuity: The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible
employees. The plan is governed by the Payment of Gratuity Act, 1972 and provides lumpsum payment to eligible
employees at retirement, death while in employment or termination of the employment of an amount equivalent to 15
days salary payable for each completed year of service. The Company has established two trusts, one each for its staff
and officers and makes contributions to such funds for funding these plans.

The Company has computed its liability towards future payments of gratuity to employees, on actuarial valuation basis
which is determined based on projected unit credit method and the charge for current year is debited to the standalone
statement of profit and loss. Actuarial gains and losses arising on the measurement of defined benefit obligation and
experience adjustments are charged/ credited to other comprehensive income. All other costs/reversals are recognised
in the standalone statement of profit and loss.

C) Compensated absences: The Company provides for the encashment of leave or leave with pay subject to certain
rules. The employees are entitled to accumulate leave subject to certain limits for future encashment/availment.
The Company makes provision for compensated absences based on an actuarial valuation by an actuary, using the
projected unit credit method. Actuarial gains and losses arising on the measurement of defined benefit obligation is
charged/ credited to the standalone statement of profit and loss. The Company presents the entire leave liablity as a
current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for 12 months
after the reporting date.

u. Exceptional Items

When items of income and expense within standalone statement of profit and loss from ordinary activities are of such
size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period,
the nature and amount of such material items are disclosed separately as exceptional items.

v. Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss (excluding other comprehensive income) for
the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the
year. The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus
issue, bonus element in a right issue, shares split and reverse share splits (consolidation of shares) that have changed
the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating
diluted earnings per share, the net profit or loss (excluding other comprehensive income) for the year attributable to
equity share holders and the weighted average number of shares outstanding during the year are adjusted for the
effects of all dilutive potential equity shares.

w. Operating cycle and classification of current and non - current items

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and
their realisation in cash or cash equivalents, the Company has determined its operating cycle as a period not exceeding
12 months for the purpose of classification of its assets and liabilities as current and non-current.

(i) An asset is considered as current when it is:

a. Expected to be realised or intended to be sold or consumed in the normal operating cycle, or

b. Held primarily for the purpose of trading, or

c. Expected to be realised within twelve months after the reporting period, or

d. Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.

(ii) All other assets are classified as non-current.

(iii) Liability is considered as current when it is:

a. Expected to be settled in the normal operating cycle, or

b. Held primarily for the purpose of trading, or

c. Due to be settled within twelve months after the reporting period, or

d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

(iv) All other liabilities are classified as non-current"

x. Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of
tax, from the proceeds.

y. Critical estimates and judgements

The preparation of standalone financial statements in conformity with Ind AS requires management to make estimates,
assumptions and exercise judgement in applying the accounting policies that affect the reported amount of assets,
liabilities and disclosure of contingent liabilities at the date of standalone financial statements and the reported amounts
of income and expenses during the year.

The management believes that these estimates are prudent and reasonable and are based upon the management's
best knowledge of current events and actions. Actual results could differ from these estimates and differences between
actual results and estimates are recognised in the periods in which the results are known or materialised.

This note provides an overview of the areas that involved a comparatively higher degree of judgement or complexity,
and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be
different than those originally assessed.

i) Property, plant and equipment, investment properties and intangible assets:

Property, plant and equipment represents a significant proportion of the asset base of the Company. The charge
in respect of periodic depreciation is derived after determining an estimate of an assets expected useful life and
the expected residual value at the end of its life. The useful lives and residual values of the Company's assets are
determined by the management at the time the asset is acquired and reviewed periodically, including at each financial
year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which
may impact their life, such as changes in technology.

ii) Income tax:

Significant judgments are involved in determining the provision for income taxes, including the amount expected to be
paid or recovered in connection with uncertain tax positions."

iii) Contingencies:

Management has estimated the possible outflow of resources at the end of each annual reporting financial year, if any,
in respect of contingencies / claim / litigations by / against the Company as it is not possible to predict the outcome of
pending matters with accuracy.

iv) Expected credit loss on financial assets:

On application of Ind AS 109, the impairment provisions of financial assets are based on assumptions about risk of
default and expected timing of collection. The Company uses judgments in making these assumptions and selecting the
inputs to the impairment calculation, based on the Company's past history of collections, customer's credit-worthiness,
existing market conditions as well as forward looking estimates at the end of each reporting period.

v) Deferred Taxes:

Deferred tax is recorded on temporary differences between the tax bases of assets and liabilities and their carrying
amounts, at the rates that have been enacted or substantively enacted at the reporting date. The ultimate realisation
of deferred tax assets is dependent upon the generation of future taxable profits during the periods in which those
temporary differences and tax loss carry forwards become deductible. The Company considers the expected reversal of
deferred tax liabilities and projected future taxable income in making this assessment. The amount of the deferred tax
assets considered realisable, however, could be reduced in the near term if estimates of future taxable income during
the carry forward period are reduced.

vi) Impairment of financial assets:

At each balance sheet date, based on historical default rates observed over expected life, existing market conditions
as well as forward looking estimates, the management assesses the expected credit losses on outstanding receivables.
Further, management also considers the factors that may influence the credit risk of its customer base, including the
default risk associated with industry and country in which the customer operates."

vii) Impairment of non financial assets:

Where the carrying amount of an asset or CGU exceeds its recoverable amount (fair value less costs of disposal or its
value in use), the asset is considered impaired and is written down to its recoverable amount. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. In determining fair value
less cost of disposal, recent market transactions are taken into account. If no such transactions can be identified, an
appropriate valuation model is used. These calculations are corroborated by valuation multiples or other available fair
value indicators.

viii) Defined benefit obligation:

The cost of the defined benefit plans, compensated absences and the present value of the defined benefit obligations
are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include the determination of the discount
rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed
at each reporting date.

ix) Leases:

Determining the lease term of contracts with renewal and termination options - Company as lessee - Ind AS 116
requires the lessee to determine the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option
to terminate the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies
judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate
the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal
or termination. After the commencement date, the Company reassesses the lease term if there is a significant event
or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to
renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to the
leased asset).When it is reasonably certain to exercise extension option and not to exercise termination option, the
Company includes such extended term and ignores termination option in determination of lease term.

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing
rate (IBR) to measure lease liabilities. The Company has taken indicative rates from its bankers and used them for Ind
AS 116 calculation purposes.

x) Provisions:

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 cannot be made.
Provisions (excluding retirement obligation and compensated expenses) are not discounted to its present value and
are determined based on best estimate of the amount required to settle obligation at the balance sheet date. These
are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

xi) Fair value measurements:

Management applies valuation techniques to determine fair value of financial assets and liabilities (where active market
quotes are not available). This involves developing estimates and assumptions around volatility and dividend yield etc.
which may affect the value of financial assets and liabilities. Estimates and judgements are continuously evaluated.
These are based on historical experience and other factors including expectation of future events that may have a
financial impact on the Company and that are believed to be reasonable under the circumstances.

xii) Impairments of assets:

In assessing impairment, management estimates the recoverable amounts of each asset (in case of non-financial
assets) based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates
to assumptions about future cash flows and the determination of a suitable discount rate.

xiii) Allowances for slow / Non-moving Inventory and obsolescence:

An allowance for Inventory is recognised for cases where the realisable value is estimated to be lower than the inventory
carrying value. The inventory allowance is an estimate taking into account various factors, including prevailing sales
prices of inventory item and losses associated with usability/ obsolete / slow-moving / redundant inventory items. The
Company has, based on these assessments, made adequate provision in the books.

xiv) Overhead Costing:

Management has applied critical estimates and judgements in the calculation of the Machine Hour Rate (MHR) for
overhead costing. These estimates are based on data received, including machine-wise operating hours, utilized hours,
power consumption, and labour details. Management reviews and adjusts these estimates on monthly basis to ensure
they reflect the most current and reliable information available.

Estimates and judgements are continuously evaluated. These are based on historical experience and other factors
including expectation of future events that may have financial impact on the company and are believed to be reasonable
under the circumstances.

z. Events after report date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the
reporting period, the impact of such events is adjusted within the financial statements. Where the events are indicative
of conditions that arose after the reporting period, the amounts are not adjusted, but are disclosed if those non¬
adjusting events are material.

2 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 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 April 2024. The Company has assessed that there is no significant impact
on its financial statements.

On 9 May 2025, MCA notified 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 April 2025. The Company is currently assessing the probable impact of these amendments on its financial
statements.

Notes:

(i) Includes receivables amounting ^ 4 lakhs (31 March 2024 - ^ 4 lakhs) from private company where director
of the Company is also a director.

(ii) No trade or other receivable are due from directors or other officers of the Company either severally or jointly
with any other person.

(iii) The outstanding balances as at 31 March 2025 includes trade receivables amounting to ^ 2,127 lakhs
(31 March 2024: ^ 3,091 lakhs) from customers situated outside India. These balances are pending for
settlement / adjustments and have resulted in delays in remittance of receipts of receivables, beyond the
timeline stipulated by the FED Master Direction No. 16/2015-16, under the Foreign Exchange Management
Act, 1999. The Company is in the process of recovering these outstanding dues however, wherever required,
provision has been made in the books of account. The Company is also in the process of regularising these
defaults with the appropriate authority. Pending conclusion of the aforesaid matter, the amount of penalty,
if any, that may be levied, is not ascertainable. However, management believes that the exposure is not
expected to be material. Accordingly, the accompanying standalone financial statements do not include any
consequential adjustments that may arise due to such delay.

(iv) Trade receivables are non interest bearing and are generally on credit terms in line with respective industry
norms.

(v) The Company has writen off trade receivables amounting to ^ 248 lakhs (31 March 2024 - ^ 274 lakhs) and it
does not expect to receive future cash flows or recoveries from trade receivables previously written off. Also
refer note 44(a).

(vi) Refer note 44 for information about credit risk and market risk of trade receivables.

(vii) Refer note 27 and note 48 for information about assets pledged as security for current borrowings.

(i) The carrying amounts of financial and non financial assets as security for secured borrowings are disclosed
in Note 48.

(ii) Packing credit loan amounting to ^ Nil lakhs (31 March 2024 - ^ 7,508 lakhs) is secured by first pari passu
hypothecation charge on all the existing and future current assets of the Company. The weighted average
interest rate on packing credit loan is 5.15% (31 March 2024 - 6.21%).

(iii) Working capital demand loan amounting to ^ 4,866 lakhs (31 March 2024 - ^ 0 lakhs) is secured by way of
mortgage of a residential property of the Company situated in Mumbai. The weighted average interest rate
on working capital demand loan is 8.22% (31 March 2024 - 6.21%).

(iv) Buyer's credit amounting to ^ 1,372 lakhs (31 March 2024 - ^ Nil lakhs) is secured by way of bank
guarantees. The weighted average interest rate on buyer's credit is 4.69% (31 March 2024 - Nil %).

(v) The statement of monthly current assets filed by the Company with banks are in agreement with the books
of account.

(vi) Refer note 44 for liquidity risk and market risk.

(vii) Refer note 45 for capital management.

(viii) Refer note 46 for net debt reconciliation.

(i) Refer note 44 for information about liquidity risk and market risk of trade payables.

(ii) Trade payables are non-interest bearing and are settled in line with respective industry norms.

(iii) From total trade payables mentioned above, payables against unbilled dues are ^ 1,634 lakhs (31 March
2024 - ^ 1603 lakhs).

(iv) The outstanding balances as at 31 March 2025 includes trade payables amounting to ^ 301 lakhs (31
March 2024: ^ 191 lakhs), to vendors situated outside India. These balances are pending for settlement
/ adjustments and have resulted in delays in payments of payables, beyond the timeline stipulated by the
FED Master Direction No. 17/ 2016-17, under the Foreign Exchange Management Act, 1999. The Company
is in the process of making the payment for outstanding payables. The Company is also in the process of
regularising these defaults with the appropriate authority. Pending conclusion of the aforesaid matter, the
amount of penalty, if any, that may be levied, is not ascertainable. However, management believes that the
exposure is not expected to be material. Accordingly, the standalone financial statements do not include any
consequential adjustments that may arise due to such delay.

(v) Dues to micro enterprise and small enterprise

The Company has certain dues to suppliers registered as Micro enterprise and small enterprise under Micro,
Small and Medium Enterprises Development Act, 2006 ('MSMED Act'). The disclosures pursuant to the said
MSMED Act are as follows:

Notes

(i) The Committee of Directors, constituted by the Board, at its meeting held on 28 January 2023 had approved
the execution of the share purchase agreement with its wholly owned Subsidiary "NRB Holdings Limited"
for transfer of 100% of its share holding in the Company's other wholly owned subsidiary, "NRB Bearing
(Thailand) Limited" at a consideration of ^ 4,708 lakhs, as a result of which, the latter has become wholly
owned step down subsidiary of the Company w.e.f. 1 April 2023. The Company had recognised a surplus of
^ 2,295 lakhs on such transfer of shareholding which is classified as an exceptional gain for year ended 31
March 2024.

(ii) A fire incident had occurred at one of the Company's plant situated at Waluj, Aurangabad on 8 May 2023,
wherein the Company had made an assessment of loss amounting to ^ 2,076 lakhs with respect to the
damage caused to inventories, plant and equipments and other accessories, buildings, and other civil
structures. The Company believes it has adequate insurance coverage to cover these losses.

During the year ended 31 March 2025, the Insurance Company has disbursed a total amount of ^ 750
lakhs as an interim payment against plant and equipments and other accessories, buildings and other civil
structures (31 March 2024: ^ 3,051 lakhs i.e., ^ 1,801 lakhs as final payment against inventories and ^
1,250 lakhs as an interim payment against plant and equipments and other accessories, buildings and other
civil structures), which is classified as an exceptional gain for the year ended 31 March 2025.

Additionally, the management of the Company has filed a claim with the surveyor to recover operational
losses caused due to fire. The same is under discussion and the claim will be recognised when the
recoverability is reasonably ascertained.

(iii) The Board of Directors at its meeting held on 22 January 2022 had approved sale/transfer/disposal of
freehold land and building situated at 2nd Pokhran Road, Majiwade, Thane-400 610, Maharashtra. During
the year ended 31 March 2024, the Company disposed the said freehold land and building having WDV
of ^ 53 lakhs at an agreed consideration of ^ 19,605 lakhs adjusted by incidental expenses of ^ 1,784
lakhs (being stamp duty and brokerage expenses) resulting into a net gain (pre-tax) of ^ 17,768 lakhs. The
related tax liability on this gain was ^ 2,689 lakhs and consequently the post tax gain amounted to ^ 15,079
lakhs, which forms part of profit after tax. These gains were classified as an exceptional item for the year
ended 31 March 2024.

(iv) The Committee of Directors at its meeting held on 20 January 2025 have approved the execution of an
Inter-Company Agreement ('Agreement') dated 20 January 2025 between the Company and NRB Industrial
Bearings Limited (NIBL), a related party, which mainly covers the following:

(a) As per the scheme of demerger dated 24 August 2012 executed between the Company and NIBL,
NIBL presently uses the marks "NRB Industrial" and "NRB Industrial Bearings" in which the word
"NRB" is used in a red color combination, stylization, font and pattern. NIBL shall be entitled to the
continued usage of the same in terms of the scheme of demerger and the word 'NRB" attached to
Industrial only in red colour specified in the scheme of demerger, strictly in the manner, font, styling
and colour in accordance with the terms detailed in the Agreement and with related restrictions at all
times. At any point of time, if there is a change of control of NIBL, the aforesaid right to use shall be
discontinued and shall be revoked in accordance with the terms detailed in the Agreement;

(b) immediate release by NIBL of the right to use the immovable property of the Company situated at 2nd
and 3rd floor, Dhannur, 15 Sir P M Road, Fort, Mumbai 400 001 along with granting vacant possession
of the same and the shifting of their registered office by NIBL, in accordance with the terms detailed
in the Agreement; and

(c) non-solicitation of each other's employees by both entities in accordance with the terms detailed in the
Agreement.

Further, the Company has also received an intimation of a proposed realignment of shares within the
"Promoter / Promoter Group" as contemplated under the Memorandum Recording Family Settlement dated
20 January 2025 that would result in the realignment of shares held in the Company and a realignment
of the beneficial interest in the Trilochan Singh Sahney Trust 1 which holds shares in the Company. Such
change is not expected to have any impact on the statement of the Company for the current period or the
subsequent period in which such transactions would be executed.

The Company has made a payment to NIBL of ^ 5,512 lakhs on 14 February 2025, upon completion of
conditions precedent as specified in the Agreement, which is classified as an exceptional loss for the year
ended 31 March 2025.

(v) During the year ended 31 March 2025, the Company had reversed the input tax credit amounting to ^ 394
lakhs and ^ 33 lakhs on account of loss of inventories due to fire and brokerage paid for sale of land and
building at Thane respectively. These credits have been reversed under section 16 of the CGST Act, 2017
from the available balances in the electronic credit ledger while filing the Goods and Services Tax (GST)
annual return for the financial year 2023-24, which are classified as an exceptional loss for the year ended
31 March 2025.

Note - The carrying value of trade receivables, cash and cash equivalents, bank balance other than cash and cash equivalents,
loans, other current financial assets, borrowings, lease liabilities, trade payables, other current financial labilities are considered to be
approximately equal to the fair value.

(*) Net of impairment, if any

I. Fair value hierarchy-

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are
disclosed in the standalone financial statements. To provide an indication about the reliability of the inputs used in
determining fair value, the Company has classified its financial instruments into the three levels prescribed under the
accounting standard. An explanation of each level follows below.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. For example, listed equity
instruments that have quoted market price.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds,
over-the- counter derivatives) is determined using valuation techniques which maximise the use of observable market
data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument
are observable, the instrument is included in level 2.

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

During the periods mentioned above, there have been no transfers amongst the levels of hierarchy.

II. Valuation techniques used to determine fair value

Significant valuation techniques used to value financial instruments include:

(i) The fair values for investments in equity instrument and mutual fund are based on the quoted market prices.
Fair values of security deposits, loans are based on discounted cash flows using a discount rate determined
considering Company's incremental borrowing rate. Non current borrowings are fair valued using effective interest
rates.

(ii) Fair valuation of interest rate swap and foreign currency option contracts are calculated on the basis of estimated
mid-market levels, estimated bid-side or offer side levels, or on the basis of indicative bid or offer or unwind prices
or on such other appropriate basis. It is derived from other proprietary or other pricing models based on certain
assumptions.

(iii) Fair valuation of forward exchange contracts are determined using forward exchange rates at the balance sheet
date.

(iv) The carrying value of trade receivables, cash and cash equivalents, bank balance other than cash and cash
equivalents, loans, other current financial assets, borrowings, lease liabilities, trade payables, other current
financial labilities are considered to be approximately equal to the fair value and hence they have not been
disclosed under tables above.

III. Valuation process

The finance department performs the calculations of financial assets and liabilities required for financial reporting
purposes. This team reports directly to the chief financial officer (CFO). Discussions of valuation processes and results
are held between the CFO and the finance team at least once every three months, in line with the quarterly reporting
periods.

44 Financial risk management

The Company's principal financial liabilities comprise borrowings, trade and other payables. The main
purpose of these financial liabilities is to finance the Company's operations. The Company's principal
financial assets include loans, trade and other receivables, investments and cash and cash equivalents that
derive directly from its operations.

The Company is exposed to credit risk, liquidity risk and market risk. The Company's senior management
oversees the management of these risks.

A. Credit risk

The Company is exposed to credit risk from its operating activities (primarily for trade receivables) and
from its financing activities (deposits with banks and other financial instruments).

Credit risk management

Trade receivables

To manage credit risk, the Company follows a policy based on industry norms. The credit limit policy is
established considering the current economic trends of the industry in which the company is operating.
However, the trade receivables are monitored on a periodic basis for assessing any significant risk of non¬
recoverability of dues and provision is created accordingly.

Other financial assets

The Company periodically monitors the recoverability and credit risks of its other financial assets. The
Company evaluates 12 months expected credit losses for all the financial assets for which credit risk has
not increased significantly. In case credit risk has increased significantly, the Company considers life time
expected credit losses for the purpose of impairment provisioning.

The Company has considered financial condition, current economic trends, forward looking macroeconomic
information, analysis of historical bad or doubtful receivables and ageing of receivables related to cash
and cash equivalents, bank balances and other financial assets. In most of the cases, risk is considered
low since the counterparties are reputed organisations with no history of default to the Company and no
unfavourable forward looking macro economic factors. Wherever applicable, expected credit loss allowance
is recorded.

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or
at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities -
borrowings, trade payables and other financial liabilities.

Liquidity risk management

The Company's corporate finance department is responsible for liquidity and funding as well as settlement
management. In addition, processes and policies related to such risks are overseen by senior management.
Management monitors the Company's net liquidity position through rolling forecasts on the basis of expected cash
flows.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual
undiscounted payments (except lease liabilities) at each reporting date:

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 three types of risk: Foreign currency risk, interest rate risk and
price risk.

(1) Foreign currency risk

The Company is exposed to foreign exchange risk on their receivables, payables which are held in USD, EUR, Thai
Baht, CHF and JPY. The Company's exposure arises mainly on import of raw material and capital items and export of
finished goods. The Company follows a policy of matching of import and export exposures (natural hedge) to reduce
the net exposure in any foreign currency. Whenever the natural hedge is not available or is not fully covering the
foreign currency exposure of the Company, management uses certain derivative instruments to manage its exposure
to the foreign currency risk. Foreign currency transactions are managed within approved policy parameters. The
Company uses forward contracts, options and cross currency swap to hedge its exposure to foreign currency risk.
The Company designates certain derivatives as hedging instruments in respect of foreign currency risk as cash flow
hedges.

Hedge ineffectiveness is determined at the inception of the hedge relationship, and through periodic prospective
effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging
instrument. The economic relationship and hedge effectiveness are based on the qualitative factors and the use of
a hypothetical derivative where appropriate.

The Company has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk and notional
amount of the hedging instruments are identical to the hedged items.

(2) Cash flow and fair value interest rate risk

The Company's interest rate risk is mainly due to the borrowing acquired at floating interest rate. The Company's
policy is to maintain most of its borrowing at fixed rate using interest rate swaps to hedge the exposure. During the
year ended 31 March 2025 and 31 March 2024, the Company's borrowing at variable rate were mainly denominated
in INR and USD.

The fixed rate borrowings are carried at amortised cost, hence they are not subject to interest rate risk since the
carrying amount and future cash flows will not fluctuate because of change in market interest rates.

45 Capital management

(i) Risk management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern
and to optimise returns to its shareholders.

The capital structure of the Company is based on management's judgement of the appropriate balance of key
elements in order to meet its strategic and day-to-day needs. Management considers the amount of capital in
proportion to risk and manages the capital structure in light of changes in economic conditions and the risk
characteristics of the underlying assets.

The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to
maintain investor, creditors and market confidence and to sustain future development and growth of its business.
The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

(v) Salaries and employer benefits

The KMP's are covered under the Company's gratuity policy, leave encashment policy and bonus policy along with
other eligible employees of the Company. Proportionate amount of gratuity and compensated absences expenses
and provision for gratuity and compensated absences, which are determined actuarially are not mentioned in the
aforementioned disclosures as these are computed for the Company as a whole.

48 Collateral / Security pledged

The carrying amount of assets pledged as security for current and non-current borrowings of the Company are as
follows:

Notes -

(i) The Company is contesting all of the above demands in respect of Income tax, Sales tax, Value added tax
and Local body tax and the management believes that its positions are likely to be upheld at the appellate
stage. No expense has been accrued in the standalone financial statements for the aforesaid demands. The
management believes that the ultimate outcome of these proceedings are not expected to have a material
adverse effect on the Company's financial position and results of operations and hence no provision has been
made in this regard.

(ii) The above disclosure has been made on the basis of information available with the Company.

(iii) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above
pending resolution of the respective proceedings.

(iv) The amounts disclosed above represent the best possible estimates arrived at on the basis of the available
information and do not include any penalty payable.

(v) The guarantee given towards the borrowings availed by the subsidiary company was for the purpose of local
sourcing of capital goods and working capital purposes.

(xii) General descriptions of significant defined plans

The Company operates gratuity plan wherein every employee is entitled to the benefit as per scheme of the
Company, for each completed year of service. The same is payable on retirement or termination whichever is
earlier. The benefit vests only after five years of continuous service. The scheme is funded with an insurance
company in the form of qualifying insurance policy.

(c) Other long term benefits:

Compensated absences recognised in the standalone statement of profit and loss for the current year, under the
Note 36 - Employee benefits expense, is ^ 161 lakhs (31 March 2024: ^ 197 lakhs). Liability towards provision for
compensated absences as at 31 March 2025 of ^ 941 lakhs (31 March 2024 - ^ 907 lakhs).

Note - The liability of ^ 941 lakhs (31 March 2024 - ^ 907 lakhs) is classified as "Current" in accordance with the
guidance note issued by the Institute of Chartered Accountants of India on schedule III to the Companies Act,
2013.

51 Ind AS 116- Lease

Company as a lessee

The Company's lease asset primarily consist of lease for building and flats on leasehold land and vehicles. The
Company has recognised ^ 136 lakhs (31 March 2024 - ^ 153 lakhs) as rental expenses during the year which
pertains to short term leases / low value assets (refer note 39).

The weighted average incremental borrowing rate applied to lease liabilities is 10% (31 March 2024 - 10%)
Information about leases for which the Company is a lessee are presented below -

55 Disclosure for struck off companies

The Company does not have any transactions and outstanding balances for the current year and previous year
with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act,
1956.

56 Other regulatory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

(ii) The Company has not traded or invested in Crypto currency or Virtual Currency.

(iii) 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,

(iv) The Company has not made 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).

(v) The Company has not been declared a wilful defaulter by any bank.

(vi) The Company has sanctioned borrowings / facilities from bank on the basis of security of current assets. The
monthly returns or statements of current assets filed by the Company with bank are in agreement with the
books of account.

(vii) The Company has complied with the number of layers prescribed under section 2(87) of the Act.

(viii) The Company has not entered into any scheme of arrangement in terms of section 230 to 237 of the Act for
the year ended 31 March 2025 and 31 March 2024.

(ix) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) to any other person or entity, including foreign entity ('Intermediaries') with
the understanding (whether recorded in writing or otherwise) 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.

(x) There are no charges which are yet to be registered with the ROC beyond the statutory period as at 31
March 2025.

(xi) 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 use accounting software for maintaining their books of account, to 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.

During the year ended 31 March 2025 and 31 March 2024, the audit trail (edit log) feature for any direct
changes made at the database level was not enabled for the accounting software used for maintenance of
books of account. However, the audit trail (edit log) at the application level for the accounting software was
enabled and operating for all relevant transactions recorded in the software.

57 Segment reporting

In accordance with Ind AS 108 - 'Operating Segment', the Company has opted to present segment information
as a part of the consolidated financial statements of the Company and its subsidiaries. Therefore, no separate
disclosure on segment information is given in these standalone financial statements.

58 Earnings per share

The earnings per equity share is computed by dividing the net profit attributable to the equity shareholders for the
year by weighted average number of equity shares outstanding during the year.

Note -

The Company does not have any outstanding dilutive potential equity shares as at 31 March 2025 and 31 March
2024. Consequently, basic and diluted earnings per share of the Company remain the same.

This is the summary of material accounting policies and other explanatory
information referred to in our audit report of even date

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

Chartered Accountants

Firm's Registration No. 001076N / N500013 A*^ank ^ H*^*™ ^.ven ^ ^C-^Ra"^gani

Chairman Vice Chairman and Non-Executive Director

DIN : 00017767 Managing Director DIN : 00209069

Bharat Shetty DIN : 00003948

^Partner Raman Malhotra Kishor Talreja

Membership No.: 106815 Chief Financial Officer Company Secretary

Place : Mumbai Place : Mumbai

Date : 14 May 2025 Date : 14 May 2025