1.10 Provisions and Contingent Liabilities:

Provisions are recognized when the company has a present obligation as a result of past
events, it is probable, but the outflow of economic benefits will be required to settle the
obligation, and a reliable estimate can be made out of the amount of obligation.

Contingent liabilities exist 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 or the amount cannot be reliably estimated. Contingent
liabilities are appropriately disclosed unless the possibility of an outflow of resources
embodying economic benefits is remote.

1.11 Cash and cash equivalents and cash flow statement

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are
short-term balances that are readily convertible into known amounts of cash and which
are subject to insignificant risk of changes in value. Cash flows are reported using the
indirect method, whereby profit/ (loss) before extraordinary items and tax is appropriately
classified for the effects of transactions of non-cash nature and any deferrals or accruals
of past or future receipts or payments. In cash flow statement, cash and cash equivalents
include cash in hand, balances with banks in current accounts and short term deposits.

1.12 Earnings Per Share

The Company presents basic and diluted earnings per share (“EPS”) data for its
equity shares. Basic EPS is calculated by dividing the profit or loss attributable to
equity shareholders of the Company by the weighted average number of equity shares
outstanding during the period.

Diluted EPS is determined by adjusting the profit or loss attributable to equity shareholders
and the weighted average number of equity shares outstanding for the effects of all
dilutive potential equity shares.

B. Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair
value that are either observable or unobservable and consists of the following three levels:

Level 1 hierarchy - Includes Financial Instruments measured using quoted prices in the active
market.

Level 2 hierarchy - The Fair value of Financial Instruments that are not traded in an active market,
is determined using valuation techniques which maximise the use of observable market data.

Level 3 hierarchy - includes Financial Instruments for which one or more of the significant inputs
are not based on observable market data. This is applicable for unlisted securities.

C. Financial risk management

The Company's business activities are exposed to liquidity risk and credit risk. The Risk management
policies have been established to identify and analyse the risks faced by the Company, to set and
monitor appropriate risk limits and controls, periodically review and reflect the changes in the policy
accordingly.

a) Management of Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with
its financial liabilities. The Company's approach in managing liquidity is to ensure that it will
have sufficient funds to meet its liabilities. In doing this, management considers both normal
and stressed conditions.

The Company regularly monitors the rolling forecasts and the actual cash flows to service the
financial liabilities on a day-to-day basis through cash generation from business and by having
adequate banking facilities.

The following table shows the maturity analysis of the Company's financial liabilities based on
contractually agreed undiscounted cash flows along with its carrying value as at the Balance
sheet date.

a) Trade receivables:

Concentration of credit risk with respect to trade receivables are limited as the customers
are reviewed, assessed and monitored regularly on a monthly basis with pre determined
credit limits assessed based on their payment capacity. Our historical experience of collecting
receivables demonstrates that credit risk is low. Hence, trade receivables are considered to
be a single class of financial assets.

b) Expected Credit Loss:

We have in place, a rigorous process of follow up for collecting long outstanding receivables
and write off identified unrecoverable amounts. We have provided an amount of ' 36.11 lakhs
as Expected Credit Loss (ECL) in compliance with IND AS.

c) Other financial assets:

The Company has exposure in Cash and cash equivalents and term deposits with bank. The
Company's maximum exposure to credit risk as at 31^st March, 2025 is the carrying value of
each class of financial assets as on that date.

31 Capital Management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and
market confidence and to sustain future development of the business. The Company monitors the
return on capital as well as the level of dividends on its equity shares. The Company's objective when
managing capital is to maintain an optimal structure so as to maximize shareholder value.

32 Dividend:

The Board of Directors have declared an interim dividend of ' 10/- (100%) per equity share of
' 10/- each for the Financial Year 2024-25. A final dividend of ' 20/- (200%) per equity share
was recommended by the Board, which, together with the interim dividend, aggregates to a total
dividend of ' 30/- (300%) per equity share on the paid-up share capital of 12.48 crores. This will
absorb a sum of ' 37.44/- Crores as dividend for the year. The Register of Members and Share
Transfer Book of the Company shall remain closed from 19/07/2025 to 25/07/2025.

34 Scheme of Amalgamation :

a) The Honorable National Company Law Tribunal, Chennai Bench ('NCLT'), vide its Order
dated 20^th December, 2024 ('Order'), approved the Scheme of Amalgamation between India
Motor Parts & Accessories Limited (“”the Company””) and CAPL Motor Parts Private Limited
(CAPL), wholly-owned subsidiary of the Company on April 01,2023, being the Appointed Date
of the Scheme. Pursuant to the above Scheme, the authorised share capital of CAPL (i.e.
Equity Share Capital of ' 5,00,00,000 comprising 50,00,000 Equity Shares of ' 10/- each) was
merged with the existing authorised share capital of the Company (i.e. Equity Share Capital
of ' 20,00,00,000 comprising 2,00,00,000 Equity Shares of ' 10/- each). Consequently, the
revised authorised share capital of the Company stands at ' 25,00,00,000/- comprising
2,50,00,000 Equity Shares of ' 10/- each.

b) The Honorable National Company Law Tribunal, Chennai Bench ('NCLT') vide order dated
December 20, 2024, approved the Scheme of Amalgamation of wholly owned subsidiary,
CAPL Motor Parts Private Limited (CAPL) with India Motor Parts and Accessories Limited
(“the Company”). The appointed date of the scheme is April 01,2023. The amalgamation has
been accounted for in accordance with the Pooling of Interest method detailed in Appendix C
of Ind AS 103 'Business Combinations' at the carrying value of the assets and liabilities of the
subsidiary. Accordingly, the Company has restated its standalone financial results for the year
ended March 31, 2024 to give effect to the Scheme of Amalgamation.”

35 Additional Regulatory Disclosures under Schedule III

a. The Company has no transactions with the companies struck off under Companies Act, 2013
or Companies Act, 1956.

b. The title deeds of all the immovable properties, (other than immovable properties where the
Company is the lessee and the lease agreements are duly executed in favour of the Company)
disclosed in the financial statements included in property, plant and equipment are held in the
name of the Company as at the balance sheet date.

c. The Company has not revalued its property, plant and equipment (including right-of-use
assets) or intangible assets or both during the current or previous year.

d. The Company has not traded or invested in crypto currency or virtual currency during the
financial year.

e. No proceedings have been initiated on or are pending against the Company for holding
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
Rules made thereunder.

f. The Company has not entered into any derivative contracts during the year.

g. The Company has Workings Capital Limits from banks on the basis of security of current
assets. The returns or statements of current assets filed by the Company with banks are in
agreement with the books of accounts.

h. The Company has not been declared a wilful defaulter by any bank or financial institution or
government or any government authority.

i. The Company has complied with the number of layers prescribed under clause (87) of Section
2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules,
2017.

j. There is no income surrendered or disclosed as income during the current or previous year in
the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books
of account.

k. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies),

including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company (ultimate beneficiaries)

(or)

(ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiary

l. 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:

* The major reason for variance is due movement in Inventories, Financial assets, Financial Liabilities &
Business growth

As per our Report of even date attached

N KRISHNAN For BRAHMAYYA & CO

Managing Director Chartered Accountants

DIN: 00041381 Firm Registration No:000511S

MUKUND S RAGHAVAN SRINIVAS ACHARYA P. BABU

Deputy Managing Director Director Partner

DIN: 03411396 DIN: 00017412 Membership No: 203358

Chennai S RAMASUBRAMANIAN ADITYA SHARMA

16^th May, 2025 Chief Financial Officer Secretary