f) Provisions, contingent liabilities and
contingent assetProvisions

A provision is recognised if, as a result of past
event, the Company has a present obligation that
can be estimated reliably, and it is probable that

an outflow of resources embodying economic
benefits will be required to settle the obligation.
Provisions are recognised at the best estimate
of the expenditure required to settle the present
obligation at the Balance Sheet date.

- Warranty provisions

The estimated liability for product warranties
is recognised when products are sold or when
new warranty programmes are initiated. These
estimates are established using historical
information on the nature, frequency and average
cost of warranty claims and management
estimates regarding possible future warranty
claims, customer goodwill and recall complaints.
The timing of outflows will vary depending on
when warranty claim will arise, being typically up
to four years. The Company also has back-to-
back contractual arrangement with its suppliers
in the event that a vehicle fault is proven to be
a supplier's fault. Estimates are made of the
expected reimbursement claim based upon
historical levels of recoveries from supplier,
adjusted for inflation and applied to the population
of vehicles under warranty as on Balance
Sheet date.

Contingent liabilities

A contingent liability exists when there is a possible
but not probable obligation arising 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 a present obligation arising
from the past event, that may, but probably will
not, require an outflow of resources embodying
economic benefits, or a present obligation whose
amount cannot be estimated reliably. Contingent
liabilities do not warrant provisions, but are
disclosed in the financial statements unless the
possibility of outflow of resources is remote.

Contingent assets

Contingent assets are neither recognised nor
disclosed in the financial statements. However,
contingent assets are assessed continually
and if it is virtually certain that an inflow of
economic benefits will arise, the asset and related
income are recognised in the period in which the
change occurs.

(g) Dividends

The Company recognizes a liability for any
dividend declared but not distributed at the end of
reporting year, when the distribution is authorized
and the distribution is no longer at the discretion
of the Company on or before the end of the
reporting year.

(h) Revenue recognition

According to Ind AS 115, revenue is measured
at the amount of consideration the Company
expects to receive in exchange for the goods or
services when control of the goods or services and
the benefits obtainable from them are transferred
to the customer. Revenue is recognised using the
following five step model specified in Ind AS 115:

Step 1: Identify contracts with customers

Step 2: Identify performance obligations contained
in the contracts

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the
performance obligations

Step 5: Recognize revenue when the performance
obligation is satisfied.

Revenue from sale of goods is recognised when
control of the products being sold is transferred
to our customer and when there are no longer
any unfulfilled obligations. The performance
obligations in our contracts are fulfilled at the time
of dispatch, delivery or upon formal customer
acceptance depending on terms with customers.

Revenue is measured on the basis of contracted
price, after deduction of any trade discounts,
volume rebates and any taxes or duties collected
on behalf of the Government such as Goods and
Services Tax, etc. Accumulated experience is used
to estimate the provision for such discounts and
rebates. Revenue is only recognised to the extent
that it is highly probable a significant reversal will
not occur.

Revenue from sale of services is recognised upon
rendering the services based on agreements/
arrangements with the concerned parties. For
fixed price contracts, revenue is recognised
based on the actual service provided to the end
of the reporting period as a proportion of the

total services to be provided overtime since the
Company's performance does not create an asset
with an alternative use to the Company and the
Company has an enforceable right to payment for
performance completed to date.

(i) Other income:

I nterest income is recognised using the effective
interest method.

The effective interest method is a method
of calculating the amortised cost of a debt
instrument and of allocating interest income over
the relevant period. The effective interest rate is
the rate that exactly discounts estimated future
cash receipts (including all fees paid or received
that form an integral part of the effective interest
rate, transaction costs and other premiums or
discounts) through the expected life of the debt
instrument, or, where appropriate, a shorter period,
to the net carrying amount on initial recognition.

I ncome from export incentives is recognised on
accrual basis to the extent the ultimate realisation
is reasonably certain.

(j) Employee benefits
Defined benefit plans

The Company's gratuity scheme is a defined
benefit plan. The Company's net obligation in
respect of the gratuity benefit scheme is calculated
by estimating the amount of future benefit that
employees have earned in return for their service
in the current and prior periods; that benefit is
discounted to determine its present value, and
the fair value of any plan assets is deducted. The
present value of the obligation under such defined
benefit plans is determined based on actuarial
valuation using the Projected Unit Credit Method,
which recognises each period of service as
giving rise to additional unit of employee benefit
entitlement and measures each unit separately
to build up the final obligation. The obligation is
measured at the present value of the estimated
future cash flows.

The discount rates used for determining the
present value of the obligation under defined
benefit plans, are based on the market yields
on Government securities as at the Balance
Sheet date. Actuarial gains and losses are
recognised in other comprehensive income, net
of taxes, for the period in which they occur. All

the expenses that relate to the defined benefit
plan are recognised in Statement of Profit and
Loss. The Company recognises gains and
losses on curtailment or settlement of a defined
benefit plan when the curtailment or settlement
occurs, in the Statement of Profit and Loss.
The obligation under the defined benefit plan is
measured after taking into account changes in
legislation as have been enacted up to the Balance
Sheet date.

Defined contribution plans

The Company's contribution towards employee's
provident fund and employee state insurance
scheme are defined contribution plans. The
Company makes specified monthly contributions
towards employee provident fund and employee
state insurance scheme. The Company's
contribution paid/payable under the schemes is
recognised as employee benefits expense in the
Statement of Profit and Loss during the period in
which the employee renders the related service.

Compensated absences

The obligation towards the same is measured at
the expected cost of accumulating compensated
absences as the additional amount expected to be
paid as a result of the unused entitlement as at
the year end. The Company's liability is actuarially
determined (using the Projected Unit Credit
method) at the end of each year. Actuarial losses/
gains are recognized in the Statement of Profit
and Loss in the year in which they arise.

Other benefits

The Company has other long-term employee
benefit plan in the form of retention bonus for those
employees, who are identified to ensure continuity
of special projects / tasks / activities. This amount
will be payable on completion of their three years
of service payable in 37^th and 40^th month salary
equally. Liability for the same is provided on the
basis of valuation, as at the Balance Sheet date,
carried out by independent actuary.

Short-term employee benefits

All employee benefits payable wholly within twelve
months of rendering the service are classified as
short-term employee benefits expense. Benefits
such as salaries and performance incentives,
are charged to statement of profit and loss on
an undiscounted, accrual basis during the period

of service rendered by the employees in the
financial year.

(k) Borrowing costs

Borrowing costs that are attributable to the
acquisition, construction, or production of a
qualifying asset are capitalised as a part of the
cost of such asset till such time the asset is ready
for its intended use or sale. A qualifying asset is
an asset that necessarily requires a substantial
period of time (generally over twelve months) to
get ready for its intended use or sale.

All other borrowing costs are recognised as
expense in the period in which they are incurred.

(l) Foreign currency

Indian Rupee is the Company's functional as well
as presentation currency.

- Initial recognition

Transactions in foreign currencies entered
into by the Company are accounted at
the exchange rates prevailing on the date
of transaction or at rates that closely
approximate the rate at the date of the
transaction.

- Measurement of monetary items

denominated in foreign currency at the
Balance Sheet date.

Monetary items denominated in foreign

currency (other than those related to

acquisition of property plant and equipment)
of the Company outstanding at the Balance
Sheet date are restated at the year-end rates.

Non monetary foreign currency items that
are measured based on historical cost are
translated at the exchange rate at the date
of the transaction. Non-monetary assets
and liabilities that are measured at fair value
in a foreign currency are translated into the
functional currency at the exchange rate
when the fair value was determined.

- Treatment of exchange differences

Exchange differences arising on foreign
currency transactions settled during the year
are recognised in the Statement of Profit
and Loss.

The translation differences on monetary
assets and liabilities denominated in foreign
currencies are recognised in the Statement
of Profit and Loss.

(m) Income tax

Income tax expense comprises current and
deferred tax.

Current tax

Provision for current tax is recognised in
accordance with the provisions of Income-tax
Act, 1961 and is made annually based on the tax
liability after taking credit for tax allowances and
exemptions. 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 taxes

Deferred tax is recognised in respect of temporary
differences between the carrying amount of assets
and liabilities for financial reporting purpose
and the amount considered for tax purpose.
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 utilized. Deferred tax
assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to
allow the benefit of part or all of that deferred tax
asset to be utilized. Such reductions are reversed
when it becomes probable that sufficient taxable
profits will be available.

Unrecognized deferred tax assets are

reassessed at each reporting date and
recognised to the extent that it has become
probable that future taxable profits will be
available against which they can be recovered.
Deferred tax is measured at the tax rates that are
expected to be applied to temporary differences
when they reverse, using tax rates enacted
or substantively enacted by the end of the
reporting year.

The measurement of deferred tax assets and
liabilities 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.

Deferred tax assets and liabilities are offset only if:

• the entity has a legally enforceable right to
set off current tax assets against current tax
liabilities; and

• the deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the
same taxation authority on the same taxable
entity.

Current and deferred tax for the reporting period

Current and deferred tax are recognised in the
Statement of Profit and Loss, except when
they relate to items that are recognised in other
comprehensive income or directly in equity,
in which case the taxes are also recognised
in other comprehensive income or directly in
equity respectively.

(n) Earnings per share

Basic earnings per share are computed by
dividing the net profit or loss for the year after tax
by the weighted average number of equity shares
outstanding during the year. Diluted earnings
per share is computed by dividing the net profit for
the year after tax for the year by the weighted
average number of equity shares outstanding
during the year as adjusted for the effects of all
dilutive potential equity shares except where
the results are anti-dilutive.

(o) Segment reporting

The Company is primarily engaged in the business
of manufacturing off-highway equipments,
parts and components. Operating segments
are defined as components of an enterprise
for which discrete financial information is
available that is evaluated regularly by the chief
operating decision maker, in deciding how to
allocate resources and assessing performance.
The reporting of segment information is the same
as provided to the management for the purpose
of the performance assessment and resource
allocation to the segments. Segment revenue,

segment expenses, segment assets and segment
liabilities have been identified to segments on
the basis of their relationship to the operating
activities of the segment. Inter segment revenue is
accounted on the basis of transactions which are
primarily determined based on market/fair value
factors. Revenue, expenses, assets and liabilities
which relate to the Company as a whole and are
not allocable to segments on a reasonable basis
have been included under "unallocated revenue/
expenses/assets/liabilities."

(p) Recent pronouncements1. Ind AS 1, Presentation Of Financial
Statements, w.e.f. 1^st April, 2025 -

The amendment relates to classification
of liabilities as current or non -current and
non- Current liabilities with covenants. In the
context of classifying a liability as current,
it removes the requirement of existence of
a right to defer settlement for at least 12
months after the reporting date, and instead
requires that the said right should exist on
the reporting date and have substance. The
amendment also introduces guidance on
classification of liabilities with covenants.

2. Ind AS 107, Financial Instruments:
Disclosures, w.e.f. 1^st April, 2025 -

The amendment introduces enhanced
disclosure requirements for supplier finance
arrangements (such as supply-chain finance
or reverse factoring). Entities are required to
disclose information that enables users of
financial statements to assess the effects of
such arrangements on the entity's liabilities,
cash flows and exposure to liquidity risk. The
disclosures Include the nature and terms
of the arrangements, the carrying amounts
of related financial liabilities, the portion
for which suppliers have already been paid
by finance providers, and a comparison
of payment terms under supplier finance
arrangements with those of normal
trade payables.

These amendments do not have material
impact on the Company's operations or
financial statements.

4.1 There are no impairment losses recognised during the years ended 31^st March, 2026 and 31^st March, 2025.

4.2 The Company has not revalued its property, plant and equipment as on each reporting year and therefore Schedule III
disclosure requirements with respect to fair value details is not applicable.

4.3 The title deeds of all immovable properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in the favor of the lessee) are held in the name of the Company.

4.4 The Company has created first pari passu charge on entire property, plant and equipments (except land & building) against
borrowings. Refer Note 16.

(a) Claims against the Company not acknowledged as debts

(b) The Company has ongoing disputes with Income Tax Authorities relating to tax treatment of certain items. These
mainly include disallowed expenses, tax treatment of certain expenses claimed by the Company as deductions and
such similar matters. Most of these disputes and/or disallowances, being repetitive in nature, have been raised by
the income tax authorities consistently in most of the years. The Company has a right of appeal to the Commissioner
of Income Tax (Appeals), or CIT (A), the Dispute Resolution Panel, or DRP, and to the Income Tax Appellate Tribunal,
or ITAT, against adverse decisions by the assessing officer, DRP or CIT (A), as applicable. The income tax authorities
have similar rights of appeal to the ITAT against adverse decisions by the CIT (A) or DRP The Company has a further
right of appeal to the High Court of Bombay or Supreme Court against adverse decisions by the appellate authorities
for matters involving substantial question of law. The income tax authorities have similar rights of appeal. The
amounts involved are based on the demand notices received by the Company.

33.1 The Company does not expect any outflow of economic resources in respect of the above and therefore no provision was
made in respect thereof.

34 SEGMENT INFORMATION

34.1 The Company is primarily engaged in the business of manufacturing off-highway equipments, parts and components.
In view of the same, the entire business has been considered as a single segment in terms of Ind AS 108 on Operating
Segments. The Company has identified one operating segment which is consistent with the internal reporting provided to
the Board of Directors, who has been identified as the chief operating decision maker (CODM). The CODM is responsible
for allocating resources and assessing performance of the operating segment of the Company.

34.3 Information about major customers

Included in revenue arising from sales of goods of ' 10,906.88 Million (year ended 31^st March, 2025: ' 7,671.20 Million)
which arose from sales to its major customers which accounts for 48.93% (year ended 31^st March, 2025: 43.02%) of the
total revenue from operations.

35 EMPLOYEE BENEFIT PLANS35.1 Defined contribution plans:

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

(a) Provident fund and Employee State Insurance Scheme

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 provident fund administered and managed by
Government of India (GOI). The Company has no further obligations under the fund managed by the GOI beyond
its monthly contributions which are charged to the statement of Profit and Loss in the period they are incurred. The
benefits are paid to employees on their retirement or resignation from the Company.

Contribution to defined contribution plans, recognised in the statement of profit and loss under employee benefits
expense, are as under:

35.2 Defined benefit plans:(a) Gratuity

The Company has an obligation towards gratuity, a unfunded defined benefit retirement plan covering all employees.
The plan provides for lump sum payment to vested employees at retirement or at death while in employment or on
termination of the employment of an amount equivalent to 15 days salary, as applicable, payable for each completed
year of service. Vesting occurs upon completion of five years of service. The Company accounts for the liability for
gratuity benefits payable in the future based on an actuarial valuation. The Company does not make contributions to
any funds.

The most recent actuarial valuation of the present value of the defined benefit obligation was carried out for the
period ended 31^st March, 2026 by an independent actuary. The present value of the defined benefit obligation, and the
related current service cost and past service cost, were measured using the projected unit credit method.

(A) Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:

(1) Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an
increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity
Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of
cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.
Variability in withdrawal rates : If actual withdrawal rates are higher than assumed withdrawal rate assumption than
the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are
vested as at the resignation date.

(2) Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits.
If some of such employees resign/retire from the Company there can be strain on the cashflows.

(3) Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One
actuarial assumption that has a material effect is the discount rate. The discount ratereflectsthetimevalue of money.
An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This
assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed
to fluctuations in the yields as at the valuation date.

(4) Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the
legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay
higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the
same will have to be recognized immediately in the year when any such amendment is effective.

entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that the
Company shall:

(a) directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Funding
Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on
behalf of the ultimate beneficiaries

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

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

i. There are no loans or advances given to promoters,
directors, KMPs and related parties.

k. The Company does not have any unpaid dividend
and hence has not transferred any such account
to the Investor Education Protection Fund during
the year.

42 As per the MCA notification dated 5^th August, 2022,
the Central Government has notified the Companies
(Accounts) Fourth Amendment Rules, 2022. As per the
amended rules, the Companies are required to maintain
back-up of the books of account and other relevant
books and papers in electronic mode that should be
accessible in India at all the time. Also, the Companies
are required to create backup of accounts on servers
physically located in India on a daily basis.

The books of account along with other relevant
records and papers of the Company are maintained in
electronic mode. These are readily accessible in India
at all times. In relation to the audit trail, the same has
not been preserved as per the statutory requirements
for record retention for the period upto 31^st July, 2025.
The Company has implemented systems wherein
backup of books of account and other relevant books
and papers, on a daily basis is being maintained on a
server located physically within India, in compliance
with the statutory requirements with effect from
1^st August, 2025.

43 INITIAL PUBLIC OFFERING (IPO) -

The Company had completed its initial public offering
(IPO) comprising an offer for sale of 1,77,55,681 Equity
Shares bearing face value of ' 10 each for cash at a price
of ' 704 per Equity Share aggregating Rs, 12,500.00
Million (the "Offer") by Carraro International S.E. (the
"Promoter Selling Shareholder") which constituted
31.23% of the post-offer paid-up equity share capital
of the Company. The entire issued and fully paid-
up equity share capital of the Company comprising
56,851,538 Equity Shares bearing face value of ' 10
each was listed on the National Stock Exchange of India
Limited (NSE) and BSE Limited (BSE) effective from
30^th December, 2024.

44 The Government of India has consolidated 29 existing
labour legislations into a unified framework comprising
four labour codes viz the Code on Wages, 2019, the
Code on Social Security, 2020, the Industrial Relations
Code/ 2020/ and the Occupational Safety, Health
and Working Conditions Code, 2020 (collectively
referred to as the "Codes"). The Codes have been
made effective from 21^st November, 2025. The
Ministry of Labour & Employment published draft
Central Rules and FAQs to enable assessment of
the financial impact due to changes in regulations.
The incremental impact of these changes, assessed by
the Company, on the basis of the information available,
consistent with the guidance provided by the Institute
of Chartered Accountants of India, is ' 88.72 Million
and has been recognised as exceptional item in the
standalone financial statement of the Company for
the year ended 31^st March, 2026. Once State Rules
are notified by the Government on all aspects of the
Codes the Company will evaluate impact if any, on the
measurement of employee benefits and would provide
appropriate accounting treatment.

45 The Company has a comprehensive system of
maintenance of information and document as required
by the transfer pricing legislation under section 92-92F
of the Income Tax Act, 1961. Since the law requires the
existence of such information and documentation to
be contemporaneous in nature, the Company appoints
independent consultant for conducting a Transfer
Pricing Study to determine whether the transaction
with Associated enterprises are undertake, during the
financial year, are on "arm's length basis". Adjustment,
if any, arising from the transfer pricing study shall be
accounted for as and when the study is completed for
the current financial year. However, the management is
of the opinion that its international transaction are at
arm's length so that aforesaid legislation will not have
any impact on the financial statements, particularly
on the amount of tax expenses and that of provision
for taxation.