1.27 Provisions and Contingent Liabilities

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. Expected future
operating losses are not provided for.

Where the Company expects some or all of the
expenditure required to settle a provision will be
reimbursed by another party, the reimbursement is
recognised when, and only when, it is virtually certain
that reimbursement will be received if the entity settles
the obligation. The reimbursement is treated as a
separate asset.

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 a provision is
measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time
value of money is material).

Contingent liability is disclosed for (i) a possible
obligation that arises from past events and whose
existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future
events not wholly within the control of the entity or (ii)
Present obligations arising from past events where it is
not probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation or a reliable estimate of the amount of
the obligation cannot be made. 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.

Provisions for Warranty

The estimated liability for product warranties is
recorded when products are sold. These estimates
are established using historical information on the
nature, frequency and average cost of warranty claims
and management estimates regarding possible future
incidence based on corrective actions on product
failures. The timing of outflows will vary as and when
warranty claim will arise - being typically upto two
years. As per the terms of the contracts, the Company

provides post-contract services / warranty support to
some of its customers. The Company accounts for the
post contract support / provision for warranty on the
basis of the information available with the Management
duly taking into account the current and past technical
estimates. Provision of warranties are recognized net
of reimbursements.

1.28 Taxation

Income tax expense represents the sum of the current
tax and deferred tax.

Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable
in respect of previous years. The amount of current
tax payable or receivable is the best estimate of the
tax amount expected to be paid or received that
reflects uncertainty related to income taxes, if any. It
is measured using tax rates enacted or substantively
enacted at the reporting date.

Current tax assets and liabilities are offset only if there
is a legally enforceable right to set off the recognised
amounts, and it is intended to realise the asset and
settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.
Deferred tax is also recognised in respect of carried
forward tax losses and tax credits. Deferred tax is not
recognised for:

- temporary differences on the initial recognition
of assets or liabilities in a transaction that is not
a business combination and that affects neither
accounting nor taxable profit or loss at the time
of transaction;

- temporary differences related to investments in
subsidiaries, associates and joint arrangements
to the extent that the Company is able to control
the timing of the reversal of the temporary
differences and it is probable that they will not
reverse in the foreseeable future; and

- taxable temporary differences arising on the
initial recognition of goodwill.

Temporary differences in relation to a right-of-use
asset and a lease liability for a specific lease are
regarded as a net package (the lease) for the purpose
of recognising deferred tax.

Deferred tax assets are recognised for unused tax
losses, unused tax credits and deductible temporary
differences to the extent that it is probable that future
taxable profits will be available against which they
can be used. Future taxable profits are determined
based on the reversal of relevant taxable temporary
differences. If the amount of taxable temporary
differences is insufficient to recognise a deferred
tax asset in full, then future taxable profits, adjusted
for reversals of existing temporary differences, are
considered, based on the business plans for individual
subsidiaries in the Company. Deferred tax assets are
reviewed at each reporting date and are reduced to the
extent that it is no longer probable that the related tax
benefit will be realised; such reductions are reversed
when the probability of future taxable profits improves.

Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset is
realised or the liability is settled, based on the laws
that have been enacted or substantively enacted by
the reporting date.

The measurement of deferred tax reflects the tax
consequences that would follow from the manner in
which the Company expects, at the reporting date,
to recover or settle the carrying amount of its assets
and liabilities. For this purpose, the carrying amount
of investment property measured at fair value is
presumed to be recovered through sale, and the
Company has not rebutted this presumption.

Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by
the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current
tax liabilities and assets on a net basis or their tax
assets and liabilities will be realised simultaneously.

Deferred tax liabilities are not recognised for
temporary differences between the carrying amount
and tax bases of investments in subsidiaries where the
Company is able to control the timing of the reversal
of the temporary differences and it is probable that the
differences will not reverse in the foreseeable future.

Deferred tax assets are not recognised for temporary
differences between the carrying amount and tax
bases of investments in subsidiaries where it is not
probable that the differences will reverse in the
foreseeable future and taxable profit will not be
available against which the temporary difference can
be utilised. Current and deferred tax are recognised in
profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly
in equity, in which case, the current and deferred tax

are recognised in other comprehensive income or
directly in equity respectively.

1.29 Financial instruments

i. Recognition and initial measurement

Trade receivables are initially recognised when
they are originated. All other financial assets and
financial liabilities are initially recognised when
the Company becomes a party to the contractual
provisions of the instrument.

A financial asset (except trade receivables and
contract asset) or financial liability is initially
measured at fair value plus, for an item not
at fair value through profit and loss (FVTPL),
transaction costs that are directly attributable to
its acquisition or issue.

ii. Classification and subsequent measurement
Financial assets

On initial recognition, a financial asset is classified
as measured at

- amortised cost;

- fair value through other comprehensive

income (FVOCI); or

- FVTPL

Financial assets are not reclassified subsequent to
their initial recognition, except if and in the period the
Company changes its business model for managing
financial assets.

A financial asset is measured at amortised cost if it
meets both of the following conditions and is not
designated as at FVTPL:

- the asset is held within a business model whose
objective is to hold assets to collect contractual
cash flows; and

- the contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.

On initial recognition of an equity investment that is not
held for trading, the Company has irrevocably elected
to present subsequent changes in the investment's fair
value in OCI (designated as FVOCI - equity investment).
This election is made on an investment- by- investment
basis.

All financial assets not classified as measured at
amortised cost or FVOCI as described above are
measured at FVTPL. This includes all derivative financial
assets. On initial recognition, the Company has

irrevocably designated a financial asset that otherwise
meets the requirements to be measured at amortised
cost or at FVOCI as at FVTPL if doing so eliminates
or significantly reduces an accounting mismatch that
would otherwise arise.

Financial assets that are held for trading or are
managed and whose performance is evaluated on a
fair value basis are measured at FVTPL.

Financial assets - Business model assessment

The Company makes an assessment of the objective of
the business model in which a financial asset is held at
a portfolio level because this best reflects the way the
business is managed and information is provided to
management. The information considered includes

- the stated policies and objectives for the portfolio
and the operation of those policies in practice.
These include whether management's strategy
focuses on earning contractual interest income,
maintaining a particular interest rate profile,
matching the duration of the financial assets to
the duration of any related liabilities or expected
cash outflows or realising cash flows through the
sale of the assets;

- how the performance of the portfolio is evaluated
and reported to the Company's management;

- the risks that affect the performance of the
business model (and the financial assets held
within that business model) and how those risks
are managed;

- how managers of the business are compensated
- e.g. whether compensation is based on the fair
value of the assets managed or the contractual
cash flows collected; and

- the frequency, volume and timing of sales of
financial assets in prior periods, the reasons for
such sales and expectations about future sales
activity.

Financial assets: Assessment whether contractual cash
flows are solely payments of principal and interest

For the purposes of this assessment, 'principal' is
defined as the fair value of the financial asset on initial
recognition. 'Interest' is defined as consideration for the
time value of money and for the credit risk associated
with the principal amount outstanding during a
particular period of time and for other basic lending
risks and costs (e.g. liquidity risk and administrative
costs), as well as a profit margin.

In assessing whether the contractual cash flows are
solely payments of principal and interest, the Company

considers the contractual terms of the instrument. This
includes assessing whether the financial asset contains
a contractual term that could change the timing or
amount of contractual cash flows such that it would
not meet this condition. In making this assessment, the
Company considers:

- contingent events that would change the amount
or timing of cash flows;

- terms that may adjust the contractual coupon
rate, including variable interest rate features;

- prepayment and extension features; and

- terms that limit the Company's claim to cash
flows from specified assets (e.g. non- recourse
features).

A prepayment feature is consistent with the solely
payments of principal and interest criterion if the
prepayment amount substantially represents unpaid
amounts of principal and interest on the principal
amount outstanding, which may include reasonable
compensation for early termination of the contract.
Additionally, for a financial asset acquired at a discount
or premium to its contractual par amount, a feature
that permits or requires prepayment at an amount that
substantially represents the contractual par amount
plus accrued (but unpaid) contractual interest (which
may also include reasonable compensation for early
termination) is treated as consistent with this criterion if
the fair value of the prepayment feature is insignificant
at initial recognition.

Financial liabilities: Classification, subsequent
measurement and gains and losses

Financial liabilities are classified as measured at
amortised cost or FVTPL. A financial liability is classified
as at FVTPL if it is classified as held- for- trading, or
it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured
at fair value and net gains and losses, including any
interest expense, are recognised in profit or loss.
Other financial liabilities are subsequently measured
at amortised cost using the effective interest method.
Interest expense and foreign exchange gains and
losses are recognised in profit or loss. Any gain or loss
on derecognition is also recognised in profit or loss.

iii. Derecognition

Financial assets

The Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers the
rights to receive the contractual cash flows in a
transaction in which substantially all of the risks
and rewards of ownership of the financial asset
are transferred or in which the Company neither
transfers nor retains substantially all of the risks
and rewards of ownership and does not retain
control of the financial asset.

If the Company enters into transactions whereby
it transfers assets recognised on its balance
sheet, but retains either all or substantially all of
the risks and rewards of the transferred assets,
the transferred assets are not derecognised.

Financial liabilities

The Company derecognises a financial liability
when its contractual obligations are discharged
or cancelled, or expire.

The Company also derecognises a financial
liability when its terms are modified and the cash
flows under the modified terms are substantially
different. In this case, a new financial liability
based on the modified terms is recognised at
fair value. The difference between the carrying
amount of the financial liability extinguished and
the new financial liability with modified terms is
recognised in profit or loss.

Interest rate benchmark reform

When the basis for determining the contractual
cash flows of a financial asset or financial liability
measured at amortised cost changed as a result
of interest rate benchmark reform, the Company
updated the effective interest rate of the financial
asset or financial liability to reflect the change
that is required by the reform. A change in the
basis for determining the contractual cash flows
is required by interest rate benchmark reform if
the following conditions are met:

- the change is necessary as a direct
consequence of the reform; and

- the new basis for determining the
contractual cash flows is economically
equivalent to the previous basis - i.e. the
basis immediately before the change.

When changes were made to a financial asset
or financial liability in addition to changes to
the basis for determining the contractual cash
flows required by interest rate benchmark
reform, the Company first updated the effective
interest rate of the financial asset or financial
liability to reflect the change that is required by
interest rate benchmark reform. After that, the
Company applied the policies on accounting for
modifications to the additional changes.

iv. Offsetting

Financial assets and financial liabilities are offset
and the net amount presented in the balance
sheet when, and only when, the Company
currently has a legally enforceable right to set off
the amounts and it intends either to settle them
on a net basis or to realise the asset and settle the
liability simultaneously.

Impairment of financial instruments

The Company recognise loss allowance for expected
credit loss on financial assets measured at amortised
cost.

At each reporting date, the Company assesses whether
financial assets carried at amortised cost are credit
impaired. A financial asset is 'credit impaired' when
one or more events that have a detrimental impact on
the estimated future cash flows of the financial asset
have occurred.

Evidence that a financial asset is credit - impaired
includes the following observable data:

- significant financial difficulty;

- a breach of contract such as a default or being
past due;

- the restructuring of a loan or advance by the
Company on terms that the Company would not
consider otherwise;

- it is probable that the borrower will enter
bankruptcy or other financial reorganisation; or

- the disappearance of an active market for a
security because of financial difficulties.

Loss allowances for trade receivables are measured
at an amount equal to lifetime expected credit losses.
Lifetime expected credit losses are credit losses that
result from all possible default events over expected
life of financial instrument. The Company follows
the simplified approach permitted by Ind AS 109

Financial Instruments for recognition of impairment
loss allowance. The application of simplified approach
does not require the Company to track changes in
credit risk. The Company calculates the expected credit
losses on trade receivables using a provision matrix on
the basis of its historical credit loss experience.

The maximum period considered when estimating
expected credit losses is the maximum contractual
period over which the Company is exposed to credit
risk.

When determining whether the credit risk of a financial
asset has increased significantly since initial recognition
and when estimating expected credit losses, the
Company considers reasonable and supportable
information that is relevant and available without
undue cost or effort. This includes both quantitative
and qualitative information and analysis, based on the
Company's historical experience and informed credit
assessment and including forward looking information.

The Company considers a financial asset to be in
default when:

- the recipient is unlikely to pay its credit obligations
to the Company in full, without recourse by the
Company to actions such as realising security (if
any is held); or

- the financial asset is more than 180/270 days
past due for domestic/ export receivables.

Measurement of expected credit losses

Expected credit losses are a probability weighted
estimate of credit losses. Credit losses are measured
as the present value of all cash shortfalls (i.e. the
difference between the cash flows due to the Company
in accordance with the contract and the cash flows that
the Company expects to receive). Expected credit
losses are discounted at the effective interest rate of
the financial asset.

Presentation of allowance for expected credit losses
in the balance sheet

Loss allowances for financial assets measured at
amortised cost are deducted from the gross carrying
amount of the assets.

Write-off

The gross carrying amount of a financial asset is written
off when the Company has no reasonable expectations
of recovering a financial asset in its entirety or a portion
thereof. This is generally the case when the Company
determines that the debtor does not have assets or
sources of income that could generate sufficient cash
flows to repay the amounts subject to the write-off.
The company expects no significant recovery from
the amount written off. However, financial assets that
are written off could still be subject to enforcement

activities in order to comply with the Company's
procedures for recovery of amounts due.

Financial and Corporate guarantee contracts

Company as a beneficiary: Financial guarantee
contracts involving the Company as a beneficiary are
accounted as per Ind AS 109. The Company assesses
whether the financial guarantee is a separate unit
of account (a separate component of the overall
arrangement) and recognises a liability as may be
applicable

Company as a guarantor: The Company on a case to
case basis elects to account for financial guarantee
contracts as a financial instrument or as an insurance
contract, as specified in Ind AS 109 on Financial
Instruments and Ind AS 117 on Insurance Contracts,
respectively. Wherever the Company has regarded its
financial guarantee contracts as insurance contracts,
at the end of each reporting period the company
performs a liability adequacy test, (i.e. it assesses the
likelihood of a pay-out based on current undiscounted
estimates of future cashflows), and any deficiency is
recognised in profit or loss.

Where they are treated as a financial instrument, the
financial guarantee contracts are recognised initially
as a liability at fair value, adjusted for transaction costs
that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at
the higher of the amount of less allowance determined
as per impairment requirements of Ind AS 109 and
the amount recognised less, when appropriate,
the cumulative amount of income recognised in
accordance with the principles of Ind AS 115.

1.30 Fair Value

A number of the Company's accounting policies and
disclosures require measurement of fair values, for
both financial and non-financial assets and liabilities.
The Company has an established control framework
with respect to the measurement of fair values.

Fair values are categorised into different levels in a
fair value hierarchy based on the inputs used in the
valuation techniques as follows.

- Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.

- Level 2: inputs other than quoted prices included
in 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 asset or liability that are not
based on observable market data (unobservable
inputs).

When measuring the fair value of an asset or a liability,
the Company uses observable market data as far as

possible. If the inputs used to measure the fair value
of an asset or a liability fall into different levels of the
fair value hierarchy, then the fair value measurement
is categorised in its entirety in the same level of the
fair value hierarchy as the lowest level input that is
significant to the entire measurement.

The Company recognises transfers between levels
of the fair value hierarchy at the end of the reporting
period during which the change has occurred.

Further information about the assumptions made in
measuring fair values is included in note 33 on financial
instruments.

1.31 Earnings Per Share

Basic earnings per share is computed by dividing the
net profit/(loss) after tax (including the post tax effect of
exceptional items, if any) for the period attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the
profit (considered in determination of basic earnings
per share) after considering the effect of interest and
other financing costs or income (net of attributable
taxes) associated with dilutive potential equity shares
by the weighted average number of equity shares
considered for deriving basic earnings per share
adjusted for the weighted average number of equity
shares that would have been issued upon conversion
of all dilutive potential equity shares.

1.32 Business Combination

In accordance with Ind AS 103, the Company accounts
for business combinations using the acquisition
method when control is transferred to the Company.
The consideration transferred for the business
combination is generally measured at fair value as at
the date the control is acquired (acquisition date), as
are the net identifiable assets acquired. Any goodwill
that arises is tested annually for impairment. Any
gain on a bargain purchase is recognised in OCI
and accumulated in equity as capital reserve if there
exists clear evidence of the underlying reasons for
classifying the business combination as resulting in a
bargain purchase; otherwise the gain is recognised
directly in equity as capital reserve. Transaction costs
are expensed as incurred, except to the extent related
to the issue of debt or equity securities.

The consideration transferred does not include
amounts related to the settlement of pre-existing
relationships with the acquiree. Such amounts are
generally recognised in profit or loss. Any contingent
consideration is measured at fair value at the date
of acquisition. If an obligation to pay contingent
consideration that meets the definition of a financial

instrument is classified as equity, then it is not
remeasured subsequently and settlement is accounted
for within equity. Other contingent consideration
is remeasured at fair value at each reporting date
and changes in the fair value of the contingent
consideration are recognised in profit or loss.

Business combinations involving entities or businesses
in which all the combining entities or businesses are
ultimately controlled by the same party or parties
both before and after the business combination and
where that control is not transitory are accounted for
as per the pooling of interest method. The business
combination is accounted for as if the business
combination had occurred at the beginning of the
earliest comparative period presented or, if later, at
the date that common control was established; for
this purpose, comparatives are revised. The assets and
liabilities acquired are recognised at their carrying
amounts. The identity of the reserves is preserved, and
they appear in the standalone financial statements of
the Company in the same form in which they appeared
in the financial statements of the acquired entity. The
difference, if any, between the consideration and
the amount of share capital of the acquired entity is
transferred to capital reserve.

1 .33 Dividend

The final dividend on shares is recorded as a liability
on the date of approval by shareholders and interim
dividends are recorded as liability on the date of
declaration by the Company's Board of Directors.

1.34 Segment reporting

The Company is engaged in the activities related
to manufacture and supply of auto components for
transportation industry. The Chief Operating Decision
Maker (Board of Directors) review the operating
results of the Company as a whole for purposes of
making decisions about resources to be allocated and
assess its performance, the entire operations are to be
classified as a single segment, namely components for
transportation industry.

1.35 Recent 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. For the year ended March
31, 2025, MCA has notified Ind AS 117 Insurance
Contracts and amendments to Ind AS 116 -Leases,
relating to sale and leaseback transactions, applicable
to the Company w.e.f. April 1,2024. The Company has
reviewed the new pronouncements and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.

Impairment tests for goodwill

Goodwill has been allocated for impairment testing purposes to the identified cash-generating units - primarily to Light
Metal Castings business.

The Company tests whether goodwill has suffered any impairment on an annual basis. The recoverable amount of a cash
generating unit (CGU)-Light Metal Castings business is determined based on value-in-use calculations which require
the use of assumptions. The calculations use cash flow projections based on financial budgets for a five year period
approved by management.

Key assumptions used for value-in-use calculations

Value in use has been determined by discounting the future cash flows generated from the continuing use of the unit.
The calculation of the value in use is based on the following key assumptions:

* Fair Value Hierarchy (Level 1,2,3)

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

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.

33.3 Financial risk management objectives

The Company's activities expose it to a variety of financial risks : market risk, credit risk and liquidity risk. The Company's
focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial
performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial
instruments to mitigate foreign exchange related risk exposures. The Company's exposure to credit risk is influenced
mainly by the individual credit profile of each customer and the concentration of risk from the top few customers.

The risk management objective of the company is to hedge risk of change in the foreign currency exchange rates
associated with it's direct & indirect transactions denominated in foreign currency. Since most of the transactions of the
company are denominated in its functional currency (INR), any foreign exchange fluctuation affects the profitability of the
Company and its financial position. Hedging provides stability to the financial performance by estimating the amount of
future cash flows and reducing volatility.

The Company shall follow a consistent policy of mitigating foreign exchange risk by entering into appropriate hedging
instruments as considered from time to time. Depending on the future outlook on currencies, the Company may keep the
exposures un-hedged or hedge only a part of the total exposure. The Company shall not enter into a foreign exchange
transaction for speculative purposes i.e. without any actual /anticipated underlying exposures.

The Company operates on a global platform and a portion of the business is transacted in multiple currencies.
Consequently, the Company is exposed to foreign exchange risk through its sales in the United States, European
Union and other parts of the world, and purchases from overseas suppliers in different foreign currencies. The
Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of
changes in exchange rates on foreign currency exposures.

Foreign Currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange
rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward
foreign exchange contracts.

The carrying amounts of the company's foreign currency denominated monetary assets and monetary liabilities as
reported to the management are as follows :

Foreign Currency sensitivity analysis

The Company is mainly exposed to US Dollar and EURO currencies. The following table details the Company's sensitivity
to a 5% increase and decrease against the relevant foreign currencies. 5% is the sensitivity rate used when reporting
foreign currency risk internally to key management personnel and represents management's assessment of the
reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency
denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates.
The sensitivity analysis includes loans to foreign operations within the Company where the denomination of the loan
is in a currency other than the functional currency of the lender or the borrower. A positive number below indicates an
increase in profit or equity where the Indian Rupee strengthens by 5% against the relevant currency. For a 5% weakening
of the Indian Rupee against the relevant currency, there would be an opposite impact on the profit or equity.

In management's opinion, the sensitivity analysis is not a complete reflection of the inherent foreign exchange risk
considering the fact that the exposure at the end of the reporting period does not reflect the exposure during the year.

Derivative Financial Instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of
changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or
a financial institution. It is the policy of the Company to enter into forward foreign exchange contracts to cover specific
foreign currency payments and receipts. The Company also enters into forward foreign exchange contracts to manage
the risk associated with anticipated sales and purchase transactions ranging from 6 months to two year by covering a
specific range of exposure generated. Adjustments are made to the initial carrying amount of non-financial hedged
items when the anticipated sale or purchase transaction takes place.

(i) Expected credit loss for loans, security deposits and other financial assets

The estimated gross carrying amount at default is INR 0.90 Crores (March 31, 2024: INR 0.90 crores) for loans,
security deposits and other financial assets. Consequently there are no expected credit loss recognised for these
financial assets.

The credit risk on derivative financial instruments is limited because the counterparties are banks with high credit-
ratings.

(ii) Expected credit loss for trade receivables under simplified approach

The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109,
which permits the use of the lifetime expected loss provision for all trade receivables. It has computed expected
credit losses based on a provision matrix which takes into account historical credit loss experience based on : a)
Past trend of outstanding receivables over a rolling period of past 24 months and b) actual amount of outstanding
receivables as on the reporting date.

Further the Company, groups the trade receivables depending on location of the customers and accordingly credit
risk is determined.

(c) Liquidity risk management

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out
market positions. Due to the dynamic nature of the underlying businesses, treasury maintains flexibility in funding by
maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company's liquidity
position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash
flows.

The following information provides details of the Company's remaining contractual maturity for its financial liabilities
with agreed repayment periods. The below information has been drawn up based on the undiscounted cash flows of
financial liabilities based on the earliest date on which the Company can be required to pay and includes both interest
and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from
interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which
the Company may be required to pay.

The Company exceeded the threshold on certain covenants regarding financial ratios as at March 31,2024. However, it
had obtained waivers and / or revised thresholds from banks / financial institutions.

34 Segment reporting

The Company is engaged in the activities related to manufacture and supply of auto components for transportation
industry. The Chief Operating Decision Maker (Board of Directors) review the operating results of the company as a whole
for purposes of making decisions about resources to be allocated and assess its performance, the entire operations are
to be classified as a single segment, namely components for transportation industry. All the manufacturing facilities are
located in India. Accordingly, there is no other reportable segment as per Ind AS 108 Operating Segments.

34.3 Information about major customers

The Company is a manufacturer of steering and suspension linkage products, steering gear products, hydraulic products,
die-casting products, valves, engines and tappets, brake linings, disc pads, clutch facings, railway brake blocks and other
auto components for transportation industry.

The Company has no major customers i.e. greater than 10% of total sales.

(i) All the transactions with the related parties are on the same terms and conditions as those entered into with other
non-related customers and priced on arms length basis.

36 Employee benefit plans

A. Defined contribution plans

The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any expense
recognised in relation to these schemes represents the value of contributions payable during the period by the
Company at rates specified by the rules of those plans. The only amounts included in the balance sheet are those
relating to the prior months contributions that were not due to be paid until after the end of the reporting period.

The major defined contribution plans operated by the Company are as below:

(a) Provident fund

In accordance with the Employee's Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees
of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan,
in which both employees and the Company make monthly contributions at a specified percentage of the
covered employees' salary.

The contributions, as specified under the law, are made to the Government.

(b) Superannuation fund

The Company has a superannuation plan for the benefit of its employees. Employees who are members of
the superannuation plan are entitled to benefits depending on the years of service and salary drawn.

The Company contributes up to 15% of the eligible employees' salary to LIC every year. Such contributions
are recognised as an expense as and when incurred. The Company does not have any further obligation
beyond this contribution.

The total expense recognised in profit or loss of INR 18.70 Crores (for the year ended March 31,2024: INR
18.86 Crores) represents contributions payable to these plans by the company at rates specified in the rules
of the plans. As at March 31,2025, contributions of INR 2.84 Crores (as at March 31, 2024: INR 2.00 Crores)
due in respect to 2024-25 (2023-24) reporting period had not been paid over to the plans. The amounts were
paid subsequent to the end of the respective reporting periods.

38 Other statutory 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 during the financial year.

(iii) The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium or
any other sources or kind of funds) to any persons or entities, including foreign entities (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 other than in the
ordinary course of business.

(iv) The Company has not received any fund from any persons or entities, including foreign entities 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 Parties (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(v) The Company does not have any transaction which is not recorded in the books of accounts 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).

(vi) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies
(ROC) beyond statutory period.

(vii) The Company has no transactions with struck off companies during the year.

(viii) Term loans were applied for the purpose they were obtained. Further, short term loans availed have not been
utilised for long term purposes by the Company.

(ix) The Company has not been declared as wilful defaulters by any bank or financial institution or government or any
government authority.

(x) The Company has not revalued its property, plant and equipment(including Right of use assts)/ intangible assets/
both during the current/previous year.

(xi) The Company has not entered into scheme of arrangements as per sections 230 to 237 of the Companies Act,
2013 except as mentioned in note 44.

(xii) Quarterly returns or statements of current assets filed by the Company for the sanctioned working capital loans
with banks or financial institutions along with reconciliation and reasons for discrepancies is as follows:

44 Amalgamation

(a) The Board of Directors of the Company in its meeting held on February 29, 2024, had approved the scheme of
amalgamation for the merger of the fellow subsidiaries of the Company viz. Rane Engine Valve Limited ("REVL”)
and Rane Brake Lining Limited ("RBL”) ("Transferor Companies”) with the Company, under Section 230 to 232 of the
Companies Act, 2013 and other applicable provisions. The aforesaid Scheme was sanctioned by Hon'ble National
Company Law Tribunal (NCLT) vide order dated March 24, 2025. The Scheme has become effective from April 01,
2024 upon filing of the certified copy of the orders passed by NCLT with the relevant Registrar of Companies on
April 07, 2025.

(b) As per the Scheme, 9 (Nine) equity shares of Rs.10/- each of the Company will be issued for every 20 (Twenty)
equity shares of INR 10/- each held in REVL and 21 (Twenty-One) equity shares of Rs.10/- each of the Company will
be issued for every 20 (Twenty) equity shares of INR 10/- each held in RBL.

45 Approval of financial statements

The financial statements were approved for issue by the Board of Directors on May 27, 2025.

For B S R & Co. LLP For and on behalf of the Board of Directors

Chartered Accountants Rane (Madras) Limited

Firm's registration no. 101248W/W-100022

S Sethuraman Ganesh Lakshminarayan Harish Lakshman

Partner Director Chairman and Managing Director

Membership No.: 203491 DIN:00012583 DIN:00012602

B Gnanasambandam S Subha Shree

Chief Financial Officer Company Secretary

M. No: 18315

Place: Chennai Place: Chennai

Date: May 27, 2025 Date: May 27, 2025