1.18 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. When the Company expects some or all of a
provision to be reimbursed, for example, under an insurance
contract, the reimbursement is recognised as a separate
asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement.

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

A contingent liability is disclosed when there is a possible
obligation that arises from events and whose existence
is only confirmed by one or more doubtful future events
or when there is an obligation that is not recognised as a
liability or provision because it is not likely that on outflow
of resources will be required

1.19 Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. Ind AS 108 Operating Segments requires
Management to determine the reportable segments for
the purpose of disclosure in financial statements based on
the internal reporting reviewed by Chief Operating Decision
Maker (CODM) to assess performance and allocate

resources Operating segments are defined as 'Business
Units' of the Company about which separate financial
information is available that is evaluated regularly by the
chief operating decision-maker, or decision-making group,
in deciding how to allocate resources and in assessing
performance.

The Company is primarily engaged in the business of
"manufacturing of components” for automobiles for Indian
market which is governed by the same set of risks and
returns. Hence there is only one business and geographical
segment. Accordingly, segment information has not been
disclosed.

1.20 Non-current assets classified as held for sale

Non-current assets are classified as held for sale if their
carrying amount will be recovered principally through a
sale transaction rather than through continuing use and a
sale is considered highly probable. They are measured at
the lower of their carrying amount and fair value less cost
to sell. An impairment loss is recognised for any initial or
subsequent write down of the asset to fair value less cost
to sell. A gain is recognised for any subsequent increase
in fair value less cost to sell of an asset, but not in excess
of any cumulative impairment loss previously recognised.
A gain or loss not previously recognised by the date of
sale of the non-current asset is recognised at the date of
de-recognition. Non-current assets are not depreciated or
amortized while they are classified as held for sale. Non¬
current assets classified as held for sale are presented
separately from the other assets in the balance sheet.

1.21 Cash and cash equivalents

For the purpose of presentation in the statement of cash
flows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short¬
term, highly liquid investments with original maturities of
three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant
risk of changes in value, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities
in the balance sheet.

1.22 Cash flow statement

Cash flows are reported using the indirect method,
where by profit for the period is adjusted for the effect of
transaction of a non-cash nature, any deferrals or accruals
of past or future operating cash receipts or payment and
item of income and expenses associated with investing
or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are
segregated.

1.23 Earnings/(loss) per share

(i) Basic earnings/ (loss) per share calculated by
dividing the profit attributable to owners of the
Company by the weighted average number of equity
shares outstanding during the financial year.

(ii) Diluted earnings / (loss) per share adjusts the figures
used in the determination of basic earnings per
share to take into account:

• the after income tax effect of interest and
other financing costs associated with dilutive
potential equity shares, and

• the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

1.24 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.

The Ministry of Corporate Affairs, Government of India
has recently notified the new Standards/Amendments
to the existing Standards under Companies (Indian
Accounting Standards) Rules as issued from time to
time. Based on preliminary assessment of the notified
Standard/ Amendments, the company is of prima facie
view that these are not likely to have any material impact
in the preparation, disclosure and presentation of Financial
Statements upon Compliance from the effective date.

Working capital loan (cash credit facility) from Bank is secured by first charge on hypothecation of stocks of raw materials, stock
in process, finished goods, stores & spares and receivables. The same are also collaterally secured by first charge on the fixed
assets including immoveable property of the Company situated at Sohna (Haryana), Pune (Maharashtra) and Gautam Budh
Nagar (Uttar Pradesh) except the immovable property ( industrial land only) charged to another bank for overdraft limit against
property. Further the loan has been guaranteed by personal guarantee of two promoter directors of the Company. Loan against
property taken from bank is secured by first charge( equitable mortgage ) of industrial land located at Revenue Estate, Village
Kanwarsikka, Discrict. Nuh (Mewat), Haryana. Further the loan has been guaranteed by personal guarantee of one promoter
director of the Company.

Loan against deposit - During the year, Company has taken a loan of Rs. 6.89 lakh against bank deposit, carries a interest rate of
7.75% p.a. and repayale in single installment on 31.05.2025.

Against the working capital limits by the Banks, quarterly statements filed by the Company are not in agreenment with books
of accounts, the difference is mainly due to amount provided for in the books of account for diminution in value of inventories
not considered and correct ascertainment of trade payables. In respect of certain trade receivables, the corresponding advance
received have not been considered.

(a) Performance obligations

There is no remaining performance obligation for any contract for which revenue has been recognised till year end. Further,
the Company has not applied the practical expedient as specified in para 121 of Ind AS 115 as the Company do not have any
performance obligations that has an original expected duration of one year or more or any revenue stream in which consideration
from a customer corresponds directly with the value to the customer of the Company's performance completed to date.

(b) Transaction Price

The Company satisfies its performance obligations pertaining to the sale of auto components at point in time when the control
of goods is actually transferred to the customers. No significant judgment is involved in evaluating when a customer obtains
control of promised goods. The contract is a fixed price contract and do not contain any financing component. The payment is
generally due within 30-90 days. There are no other significant obligations attached in the contract with customer.

(c) Determining the timing of satisfaction of performance obligations

There is no significant judgements involved in ascertaining the timing of satisfaction of performance obligations, in evaluating
when a customer obtains control of promised goods, transaction price and allocation of it to the performance obligations.

(d) Determining the transaction price and the amounts allocated to performance obligations

The transaction price ascertained for the only performance obligation of the Company (i.e. Sale of goods) is agreed in the contract
with the customer. There is no variable consideration involved in the transaction price except for refund due to shortages which
is adjusted with revenue.

(e) Cost to obtain contract or fulfil a contract

There is no cost incurred for obtaining or fulfilling a contract and there is no closing assets recognised from the costs incurred
to obtain or fulfil a contract with a customer.

25.1 Company has sold Non Current Assets held for sale for Rs. 1,445.87 lakhs (31 March 2024: Rs. 4,367.28 lakhs). Profit on sale of
Non Current Assets held for sale amount to Rs. 624.56 lakhs (31 March 2024: Rs. 2,828.94 lakhs).

25.2 Towards the objective to generate cash flow, improve leverage ratios by reducing working capital facilities of the Company
and to improve the financial performance of the Company, the Board of Directors identified and decided to sell certain
property, plant and equipments. Accordingly, it was considered appropriate to classify the carrying value of ? 1,180.78
lakhs as at 31 March 2024 of such identified property, plant and equipments as "non-current assets held for sale”.
Out of the above, "non-current assets held for sale” the Company has sold assets having carrying value of ? 750.19 lakhs. Out
of the remaining amount of ? 430.59 lakhs carried under "non-current assets held for sale, against certain plant and equipment
having carrying value of ? 110.59 lakhs , an amount of ? 181.20 lakhs has been received as advance, which is included under
"other current liabilties”. For plant and equipment having carrying value of ? 320.00 lakhs, management has considered it
appropriate to re-classify non-current assets held for sale to capital work-in-progress, since the management believes it will be
prudent to install/commission the machinery in the near future.

(ii) The management assessed that the fair values of cash and cash equivalents, other bank balances, trade receivables, loans,
other current financial assets, trade payables, short term borrowings, and other financial liabilities approximates their
carrying amounts largely due to the short-term maturities of these instruments.

(iii) Fair value of non current other financial assets ( fixed deposits) approximates their carrying amount due to no change in
redemption value.

(iv) For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to their fair values.

(v) The fair value of the financial assets and financial liabilities is included at the amount at which the instruments could be
exchanged in a current market conditions between willing parties, other than in a forced or liquidation sale.

(vi) The following methods and assumptions were used to estimate the fair values:

a) The fair values for loans were calculated based on cash flows discounted using current lending rate. They are classified
as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty
credit risks, which has been assessed to be insignificant.

b) The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. They
are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including
own credit risks, which was assessed as on the balance sheet date to be insignificant.

c) During the year ended March 31, 2025 and March 31, 2024 there were no transfers between Level 1 and Level 2 fair
value measurements, and no transfer into and out of Level 3 fair value measurements.

(vii) Fair Value Hierarchy
Explanation to the fair value hierarchy

The Company measures financial instruments, such as, quoted investments at fair value at each reporting date. Fair value is the
price 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. All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

Level 1

Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, tax free
bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in
the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using their NAV
at the reporting date.

Level 2

The fair value of financial instruments that are not traded in an active market (for example 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, contingent consideration included in level 3.

42 FINANCIAL RISK MANAGEMENT

In the course of its business, the Company is exposed primarily to market risk, liquidity risk and credit risk, which may adversely
impact the fair value of its financial instruments. The Company has a risk management policy which not only covers the foreign
exchange risks but also other risks associated with the financial assets and liabilities such as credit risks. The risk management
policy is approved by the board of directors. The risk management framework aims to:

- Create a stable business planning environment by reducing the impact of currency fluctuations on the Company's
business plan.

- Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

a) Credit Risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual
terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness. For
the Company, credit risk arises from cash and cash equivalents, other balances and deposits with bank and trade receivables.

Credit risk management

For banks and financial institutions, only high rated banks/institutions are accepted.

For other financial assets, the Company considers the probability of default upon initial recognition of asset and whether there
has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is
a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date
with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking
information. Especially the following indicators are incorporated:

- actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a
significant change to the counterparty ability to meet its obligations

- actual or expected significant changes in the operating results of the counterparty - significant increase in credit risk on other
financial instruments of the same counterparty

- significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit
enhancements

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 90
days past due.

A default on a financial asset is when the counterparty fails to make contractual payments within 365 days of when they fall
due. This definition of default is determined by considering the business environment in which entity operates and other macro¬
economic factors.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure.

None of the Company's cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade
receivables and other receivables, and other financial assets that are neither impaired nor past due, there were no indications as
at March 31,2025, that defaults in payment obligations will occur.

Financial assets that are neither past due nor impaired

None of the Company's cash equivalents, including time deposits with banks, are past due or impaired

Regarding trade receivables and other receivables, and other financial assets that are neither impaired nor past due, there were
no indications as at March 31,2025, that defaults in payment obligations will occur.

b) Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawing up cash forecast
for short term and long term needs.

The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay
or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and
cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing
assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are
invested in certain mutual funds and fixed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn
credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

c) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three type of risks: Foreign Exchange Risk, Interest Rate Risk and Other Price Risk.

i) Foreign Exchange Risk

Foreign Exchange Risk is the exposure of the Company to the potential impact of movements in foreign exchange rates.
Company's exports are exposed to foreign currency risks.

The Company has no exposure to foreign currency risk at the end of the reporting period.

ii) Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation, on long and Short term borrowings.

The crucial aspect of the management of interest rate risk is to protect the value of borrowings as much as possible from the
adverse impact of the interest rate movements. The focus of the borrowing strategy revolves around the overwhelming need
to keep the interest risk of borrowing reasonably low with a view to minimize losses arising out of the adverse interest rate
movements.

44 CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE:

The Company does not meet the criteria specified in sub section (1) of section 135 of the Companies Act, 2013, read with
Companies Corporate Social Responsibility Rules, 2014. Therefore it is not required to incur any expenditure on account of
CSR activities during the year.

45 LEASES (IND AS 116)

As Lessee

The Company has taken certain offices and residential premises/facilities under operating lease/sub-lease agreements for
short period. The aggregate lease rental of ? 62.40 lakhs (previous year ? 61.40 lakhs) has been charged to the Statement of
Profit and Loss.

₄₆ ADDITIONAL DISCLOSURES/ REGULATORY INFORMATION AS REQUIRED BY NOTIFICATION NO. GSR 207(E) DATED
24.03.2021 (TO THE EXTENT APPLICABLE):

Compliance with number of layers of companies:

No layers of companies has been established beyond the limits prescribed under clause 87 of section 2 of the Companies Act,
2013 read with Companies (Restriction on number of Layers) Rules, 2017.

47 RELATIONSHIP WITH STRUCK OFF COMPANIES:

No transaction has been made with the company striking off under section 248 of The Companies Act, 2013 or section 560
of Companies Act, 1956. During the year ended 31.03.2025 and year ended 31.03.2024.

48 UNDISCLOSED INCOME:

Details of transactions not recorded in the books of account that has been surrendered/ disclosed as income during the year
in the tax assessments ? Nil (Previous year ? Nil)

49 No scheme of arrangements have been approved by the Competent authority in terms of Section 230 to 237 of the Companies
Act, 2013.

!8

\

50 The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2025 and 31
March 2024.

51 a) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other

sources or other kind of funds) to or in any other person or entity, including foreign entity ("Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Company("Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b) The Company has not received any funds (which are material either individually or in the aggregate) from any person or
entity, including foreign entity ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that
the Company shall, 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 provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

53 Trade receivables and recoverable shown under assets and trade and other payables shown under liabilities includes balance
which is subject to confirmation / reconciliation. However reconciliations are carried out on ongoing basis. The management
does not expect any material adjustment in the books of accounts as a result of reconciliation.

54 The Company does not have any Subsidiary, Associate or Joint venture as at 31 March 2025. Accordingly the Company is not
required to publish the consolidated financial statement.

55 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's
classification/ disclosure.

As per our attached report of even date.

For V. Sankar Aiyar & Co. For and on behalf of the Board of Directors

Chartered Accountants

ICAI Firm Registration No.109208W

Rajiv Kapoor Abhay Kumar Khanna

Karthik Srinivasan Chairman & Managing Director Director

Partner DIN : 00054659 DIN : 06919161

Membership No. 514998

Gautam Bhattacharya Pradeep Chandra Nayak

Place : New Delhi Chief Financial Officer Company Secretary

Dated : 23th May, 2025 ACS 15852