2.18 Provisions, Contingent Liabilities and
Contingent Assets

A provision is recognised when the company has present
determined obligations as a result of past events and an
outflow of resources embodying economic benefits will be
required to settle the obligations. Provisions are recognised

at the best estimate of the expenditure required to settle
the present obligation at the balance sheet date.

If the effect of the time value of money is material, provisions
are discounted using a current pre tax rate that reflects,
where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to
the passage of time is recognised as a finance cost.

A Contingent liability is not recognised but disclosed in the
notes to the accounts, unless the probability of an outflow
of resources is remote.

A contingent asset is generally neither recognised
nor disclosed.

2.19 Earnings per share

The Basic earnings per share (EPS) is calculated by
dividing the net profit or loss for the year attributable to the
equity shareholders by the weighted average number of
equity shares outstanding during the year.

For the purpose of calculating Diluted earnings per share,
the net profit or loss for the year attributable to the equity
shareholders and the weighted average number of equity
shares outstanding during the year are adjusted for the
effects of all dilutive potential equity shares.

2.20 Customs

Liability on account of Customs Duty on Imported
materials is accounted in the year in which the goods are
cleared from customs.

2.21 Dividends

Provision is made for the amount of any dividend
declared, being appropriately authorised and no longer
at the discretion of the company, on or before the end of
the reporting period but not distributed at the end of the
reporting period.

2.22 Exceptional items

Exceptional items refer to items of income or expense
within statement of profit and loss from ordinary activities
which are non-recurring and are of such size, nature or
incidence that their separate disclosure is considered
necessary to explain the performance of the company.

2.23 Impairment of assets

The company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for
an asset is required, the company estimates the asset's
recoverable amount. An asset's recoverable amount is
the higher of an asset's or cash-generating unit's (CGU)
fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are

largely independent of those from other assets or groups
of assets. When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

I n 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 costs of disposal, recent
market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation
model is used.

Impairment losses of continuing operations, including
impairment on inventories, are recognised in the statement
of profit and loss.

2.24 Critical accounting estimates

Property, plant and equipment

Property, plant and equipment represent 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 asset's expected
useful life and the expected residual value at the end of
its life. The useful lives and residual values of company's
assets are determined by 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.

Intangible assets

The company tests whether intangible assets have suffered
any impairment on an annual basis. The recoverable
amount of a cash generating unit is determined based
on value in use calculations which require the use
of assumptions.

Recoverability of Trade Receivable and provision for
the same

Judgements are required in assessing the recoverability
of overdue trade receivables and determining whether a
provision against those receivables is required. Factors
considered include the credit rating of the counterparty,
the amount and timing of anticipated future payments
and any possible actions that can be taken to mitigate
the risk of non-payment. The provision for debtors is done
for those debtors which are outstanding for more than
three years.

d) Term /Rights attached to Equity Shares

The company has only one class of equity shares having a par value of C 5/- per share. Each holder of equity shares is entitled to
one vote per share. The company declares and pays dividends in Indian rupees. In the event of liquidation of the company, the
holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts.
The distribution will be in proportion to the number of equity shares held by the shareholders.

e) The Board of Directors, in its meeting on May 28, 2025 have proposed a final dividend of C 1/- per equity share for the
financial year ended March 31, 2025. The proposal is subject to the approval of the shareholders at the Annual General
Meeting to be held and if approved, would result in a cash outflow of approximately C 208.00 Lacs

f) The above includes 15600000 Equity shares of C 5/- each issued as fully paid Bonus shares without payment being
received in cash.

Nature of Reserves

Securities Premium

Security Premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the
provisions of the Companies Act, 2013.

General Reserve

The General reserve is used from time to time for transfer of profits from surplus in statement of Profit and Loss for
appropriation purposes.

Capital Reserve

This reserve represents the amount received upon reissue of forfeited shares and credit on forfeiture of share warrants.
Equity Investment Reserve

This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair
value through other comprehensive income, net off amounts reclassified to retained earnings when those assets have
been disposed off.

Retained Earning

This reserve represents undistributed accumulated earnings of the Company as on the balance sheet date.

Management estimations and assumptions

a) The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts
and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.

b) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and
assumptions were used to estimate the fair values:

c) The fair values of the quoted shares and unquoted mutual funds are based on NAVs at the reporting date.

Level 1: Quoted Prices in active markets for identical assets or liabilities

Level 2 : 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).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)

The company's policy is to recognize transfers into and the transfers out of fair value hierarchy levels as at the end of the
reporting period. There are no transfers between level 1 and level 2 during the end of the reported periods.

28.3 Financial Risk Management

The Company's principal financial liabilities comprise loans and 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, and cash and cash equivalents that derive directly from its operations.

The Company's activities expose it to various financial risks: market risk, credit risk and liquidity risk. The company tries
to foresee the unpredictable nature of financial markets and seek to minimise potential adverse impact on its financial
performance. The senior management of the company oversees the management of these risks. The Audit Committee
has additional oversight in the area of financial risks and controls. It is the Company's policy that no trading in derivatives
for speculative purposes may be undertaken.

Financial Market Risk

Financial 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 comprise two types of risk: foreign currency risk, Credit risk.

(i) Foreign currency risk

The company operates internationally and business is transacted in several currencies.

The export sales of company included in the total sales of the company, Further the company also imports certain assets and
material from outside India. The exchange rate between the Indian rupee and foreign currencies has changed substantially
in recent years and may fluctuate substantially in the future. Consequently the company is exposed to foreign currency risk
and the results of the company may be affected as the rupee appreciates/ depreciates against foreign currencies. Foreign
exchange risk arises from the future probable transactions and recognized assets and liabilities denominated in a currency
other than company's functional currency.

(ii) Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum
exposure to the credit risk at the reporting date is primarily from trade receivables which are typically unsecured. Credit risk
on cash and bank balances is limited as the company generally invests in deposits with banks and financial institutions with
high credit ratings assigned by credit rating agencies. The Company's credit risk in case of all other financial instruments
is negligible.

The company assesses the credit risk based on external credit ratings assigned by credit rating agencies. The company
also assesses the creditworthiness of the customers internally to whom goods are sold on credit terms in the normal
course of business. The credit limit of each customer is defined in accordance with this assessment. Outstanding
customer receivables are regularly monitored and any shipments to overseas customers are generally covered by letters
of credit. Further the Company also has a Comprehensive Export Credit Guarantee Insurance issued by the Export Credit
Guarantee Corporation.

The impairment analysis is performed on client to client basis for the debtors that are past due at the end of each reporting
date. The company has not considered an allowance for doubtful debts in case of trade receivables that are past due but
there has not been a significant change in the credit quality and the amounts are still considered recoverable. Normally
the Company has policy to provide doubtful debtors, which has dues beyond three years from the date of its booking in
accounts.

Write off policy

The financials assets are written off incase there is no reasonable expectation of recovering from the financial asset.

29 CAPITAL MANAGEMENT

The following are the objectives of Capital management policy of the company:

(i) Safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and
benefits for other stakeholders, and

(ii) Maintain an optimal capital structure to reduce the cost of capital

As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders,
issue new shares, raise debt capital or sell assets to reduce debt. The company monitors capital basis gearing
ratio which is calculated by dividing the total borrowings by total equity. The company's strategy is to maintain a
gearing ratio as possible as lower. In order to achieve this overall objective, the company ensures to meet its financial
covenants attached to the interest bearing loans and borrowings. There have never been any breaches in financial
covenants of any interest bearing loans and borrowings in the past and also in the current period.

30 RELATED PARTY TRANSACTIONS

Related parties and transactions with them as specified in the Indian Accounting Standard-24 on “Related Party
Disclosures” issued by the ICAI has been identified and given below;

1. Enterprises where Control Exists: Bajaj Coneagle LLC (Wholly Owned Foreign Subsidiary)

Bajaj Steel Industries (U) Limited (Wholly Owned Foreign Subsidiary)

Bajaj Continental Ltda.(Wholly Owned Foreign Subsidiary)

Bajaj Services Ltda.(Wholly Owned Foreign Subsidiary)

2. Other Related parties with whom the Company had transactions:

(a) Key Management personnel and there relatives:-Sri Rohit Bajaj (Chairman cum Managing Director), Sri Sunil
Bajaj (Executive Director),Sri Mahendra Kumar Sharma ( Whole time director and CEO of the Company),Sri Lav
Bajaj (Director), Sri Manish Sharma (Chief Financial Officer), Sri Rachit Jain (Company Secretary).

Relatives :- Smt Devika Bajaj, Shri Kush Bajaj, Shri Vedant Bajaj, Shri Varun Bajaj

(b) Enterprises over which Key Management personnel and their relatives are able to exercise Significant
Influence-

Bajaj Chemoplast (I) Limited, Bajaj Trade Development Limited, Bajaj Exports Private Limited, Rohit Polytex
Limited, Prosperous Finance Services Limited, Bajaj Global Limited, Vidarbha Tradelinks Pvt. Limited, Gangalaxmi
Agrotech Limited, Gangalaxmi Industries Ltd, Luk Technical Services Pvt Limited, Luk Plastcon Limited, Luk
Infrastructure Private Limited, Luk Bedrocks Private Limited, Nagpur Infotech Pvt. Ltd, Bajaj Polymin Ltd., Bajaj
Gintech Pvt. Ltd., Bajaj Reinforcement Pvt. Ltd., Daivik Moringa Pvt. Ltd., Rukmani Metals & Gaseous Pvt. Ltd.,
KC Overseas Pvt. Ltd.

33 Lease

(i) The Company's lease asset primarily consist of leases for land and buildings, Plant and Machinery and Vehicles for factory
and offices having the various lease terms. Effective from April 1, 2019, the Company adopted Ind AS 116 “Leases” and
applied the standard to all lease contracts existing on April 1, 2019 using the modified retrospective method. Consequently,
the Company recorded the lease liability at the present value of the remaining lease payments discounted at the incremental
borrowing rate as on the date of transition and has measured right of use asset at an amount equal to lease liability
adjusted for any related prepaid and accrued lease payments previously recognised.

(ii) The following is the summary of practical expedients elected on initial application:

(a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar
end date,

(b) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease
term and low value lease on the date of initial application,

(c ) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application,

(d) Applied the practical expedient by not reassessing whether a contract is, or contains, a lease at the date of initial
application. Instead applied the standards only to contracts that were previously identified as leases under Ind AS
17.

(e ) Used hindsight in determining the lease term where the contract contained options to extend or terminate the lease.

(iii) Following is carrying value of right of use assets recognised on March 31, 2025 and the movements thereof during the year
ended March 31, 2025:

37. Other Information:-

(A) Relationship with Struck off Companies:

No transaction has been made with the companies struck off under section 248 of The Companies Act, 2013 or
section 560 of Companies Act, 1956.

(B) Compliance with number of layers of companies:

Where the company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with Companies (Restriction on number of Layers) Rules, 2017, no layers of companies has been established beyond
the limit prescribed as per above said section / rules.

(F) Details of Benami Property held:

No proceeding has been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder as at March 31,2025.

(G) Wilful Defaulter:

No bank or financial institution has declared the company as “Wilful defaulter”.

(H) Registration of charges or satisfaction with Registrar of Companies:

All applicable cases where registration of charges or satisfaction is required with Registrar of Companies have been
done. No registration or satisfaction is pending as at March 31, 2025. except in certain cases referred in note-14.

(I) The Company has borrowings from banks on the basis of security of current assets and the quarterly returns
or statements of current assets filed by the Company with banks are generally in agreement with the books of
account.

38 I n accordance with the Accounting Standards (Ind AS-36) on “Impairment of Assets” during the year the company has
assessed useful life of fixed assets in use and is of the view that no impairment is considered to be necessary in view of
its expected realizable value/value in use.

40 The Company's business activities which are primarily Engaged in, Multiple Engineering products and allied services falls
within a single reportable segment as the management of the Company views the entire business activities as multiple
engineering products. Accordingly, there are no additional disclosures to be furnished in accordance with the requirement
of Ind AS 108 - Operating Segments with respect to single reportable segment. Further, the discrete financial information
in respect of geographical areas in which Company operates and also information about major customers are composite
on product basis and hence no additional disclosures to be furnished with the requirement of Ind AS 108.

41 a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found necessary.

In terms of our Report of even date attached herewith

For B. Chhawchharia & Co. Rohit Bajaj Sunil Bajaj Mahendra Kumar Sharma

Chartered Accountants (Managing Director) (Executive Director) (Whole time Director & CEO)

Firm Registration No. 305123E DIN -00511745 DIN -00509786 DIN -00519575

Ketan Chhawchharia Deepak Batra (Rachit Jain) (Manish Sharma)

Partner (Director) Company Secretary Chief Financial Officer

Membership NO. 063422 DIN -02979363

UDIN:

Date : May 28, 2025
Place: Nagpur