2.13 Provisions and contingencies
Provisions

Provisions are recognized when there is a present
obligation as a result of a past event and it is probable
that an outflow of resources embodying economic
benefits will be required to settle the obligation and there
is a reliable estimate of the amount of the obligation.

Provisions are determined based on best management
estimate required to settle the obligation at Balance
Sheet date. If the effect of the time value of money is
material, provisions are discounted using a current
pre-tax rate that reflects, 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.

Provisions are reviewed at each Balance Sheet date
and adjusted to reflect the current best estimate.

Contingent Liabilities

Contingent liabilities are disclosed when there is
a possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
Company or a present obligation that arises from past
events where it is either not probable that an outflow of
resources will be required to settle or a reliable estimate
of the amount cannot be made.

Contingent Assets

Contingent asset being a possible asset that arises
from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within
the control of the Company, is not recognized but
disclosed in the Financial Statements.

2.14 Business Combinations

A common control business combination, 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 the control is not transitory, is
accounted for using the pooling of interest method.

Other business combinations, involving entities or
businesses are accounted for using acquisition
method.

2.15 Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity. Financial assets and
financial liabilities are recognized when the Company
becomes a party to the contractual provisions of the
instrument.

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of

financial instruments (other than financial assets and
financial liabilities at fair value through profit or loss)
are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or
financial liabilities at fair value through profit or loss
are recognized immediately in Statement of Profit
and Loss. Subsequently, financial instruments are
measured according to the category in which they are
classified.

(i) Financial assets

All recognised financial assets are subsequently
measured in their entirety at either amortised cost
using the effective interest method or fair value,
depending on the classification of the financial
assets.

(ii) Classification of financial assets

Classification of financial assets depends on the
nature and purpose of the financial assets and is
determined at the time of initial recognition.

The Company classifies its financial assets in the
following measurement categories:

♦ those to be measured subsequently at fair
value (either through other comprehensive
income, or through profit or loss), and

♦ those measured at amortised cost

The classification depends on the entity’s
business model for managing the financial assets
and the contractual terms of the cash flows.

A financial asset that meets the following two
conditions is measured at amortised cost unless
the asset is designated at fair value through profit
or loss under the fair value option:

♦ Business model test: The objective of the
Company’s business model is to hold the
financial asset to collect the contractual cash
flows.

♦ Cash flow characteristic test: The contractual
term 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.

A financial asset that meets the following two
conditions is measured at fair value through
other comprehensive income unless the asset

is designated at fair value through profit or loss
under the fair value option:

♦ Business model test: The financial asset
is held within a business model whose
objective is achieved by both collecting cash
flows and selling financial assets.

♦ Cash flow characteristic test: The contractual
term of the financial asset gives rise on
specified dates to cash flows that are solely
payments of principal and interest on the
principal amount outstanding.

All other financial assets are measured at fair
value through profit or loss.

(iii) Investments in equity instrument at fair value
through other comprehensive income (FVTOCI)

On initial recognition, the Company can make
an irrevocable election (on an instrument by
instrument basis) to present the subsequent
changes in fair value in other comprehensive
income pertaining to investments in equity
instruments. This election is not permitted if
the equity instrument is held for trading. These
elected investments are initially measured at fair
value plus transaction costs. Subsequently, they
are measured at fair value with gains / losses
arising from changes in fair value recognised in
other comprehensive income. This cumulative
gain or loss is not reclassified to the Statement of
Profit and Loss on disposal of the investments.

(iv) Equity investment in Subsidiaries, Associates
and Joint Ventures

Investments representing equity interest in
subsidiaries, associates and joint ventures are
carried at cost less any provision for impairment.
Investments are reviewed for impairment if events
or changes in circumstances indicate that the
carrying amount may not be recoverable.

(v) Financial assets at fair value through profit or
loss (FVTPL)

Investment in equity instruments is classified
at fair value through profit or loss, unless the
Company irrevocably elects on initial recognition
to present subsequent changes in fair value in
other comprehensive income for investments in
equity instruments which are not held for trading.

Financial assets that do not meet the amortised
cost criteria or fair value through other
comprehensive income criteria are measured at
fair value through profit or loss. A financial asset
that meets the amortised cost criteria or fair value
through other comprehensive income criteria may
be designated as at fair value through profit or
loss upon initial recognition if such designation
eliminates or significantly reduces a measurement
or recognition inconsistency that would arise from
measuring assets and liabilities or recognizing the
gains or losses on them on different bases.

Financial assets which are fair valued through
profit or loss are measured at fair value at the
end of each reporting period, with any gains or
losses arising on remeasurement recognised in
Statement of Profit and Loss.

(vi) Trade receivables

Trade receivables are recognized initially at
transaction price and subsequently measured at
amortised cost less provision for impairment.

(vii) Cash and cash equivalents

I n the Statement of Cash Flows, cash and cash
equivalents includes cash in hand, cheques
and balances with banks and short term highly
liquid investments with original maturities of
three months or less that are readily convertible
to known amount of cash. Bank overdrafts are
shown within borrowings in current liabilities in
the Balance Sheet and forms part of financing
activities in the Statement of Cash Flows. Book
overdraft is shown within other financial liabilities
in the Balance Sheet and forms part of operating
activities in the Statement of Cash Flows.

(viii) Impairment of financial assets

The Company assesses impairment based
on expected credit losses (ECL) model to the
following:

♦ financial assets measured at amortised cost

♦ financial assets measured at fair value
through other comprehensive income

Expected credit loss are measured through a loss
allowance at an amount equal to:

♦ the twelve month expected credit losses
(expected credit losses that result from those
default events on the financial instruments
that are possible within twelve months after
the reporting date); or

♦ full life time expected credit losses (expected
credit losses that result from all possible
default events over the life of the financial
instrument).

For trade receivables or any contractual right to
receive cash or another financial asset that result
from transactions that are within the scope of Ind
AS 115, the Company always measures the loss
allowance at an amount equal to lifetime expected
credit losses.

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 assets.

(ix) Derecognition of financial assets

A financial asset is derecognised only when

♦ The Company has transferred the rights to
receive cash flows from the financial asset or

♦ Retains the contractual rights to receive
the cash flows of the financial asset, but
assumes a contractual obligation to pay the
cash flows to one or more recipients

♦ The right to receive cash flows from the
asset has expired.

(x) Foreign Exchange gains and losses

The fair value of financial assets denominated in
a foreign currency is determined in that foreign
currency and translated at the exchange rate
at the end of each reporting period. For foreign
currency denominated financial assets measured
at amortised cost or fair value through profit or
loss the exchange differences are recognised in
Statement of Profit and Loss except for those
which are designated as hedge instrument in a
hedging relationship. Further change in the carrying
amount of investments in equity instruments at
fair value through other comprehensive income
relating to changes in foreign currency rates are
recognised in other comprehensive income.

Financial liabilities and equity instruments(xi) Classification of debt or equity

Debt or equity instruments issued by the Company
are classified as either financial liabilities or as
equity in accordance with the substance of the
contractual arrangements and the definitions of a
financial liability and an equity instrument.

(xii) Equity instruments

An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by the Company are recognised at the
proceeds received, net of direct issue costs.

(xiii) Financial liabilities

All financial liabilities are subsequently measured
at amortised cost using the effective interest rate
method or at fair value through Statement of Profit
and Loss.

(xiv) (a) Trade and other payables

Trade and other payables represent liabilities
for goods or services provided to the
Company prior to the end of financial year
which are unpaid.

(b) Acceptance

Acceptance represents credit availed by the
suppliers from banks for goods supplied to
the Company. The arrangements are interest
bearing, where the Company bears the
interest cost and are payable within one year.

(xv) Borrowings

Borrowings are initially recognised at fair value,
net of transaction costs incurred. Borrowings
are subsequently measured at amortised cost.
Any difference between the proceeds (net of
transaction costs) and the redemption amount is
recognised in Statement of Profit and Loss over
the period of the borrowings using the effective
interest rate method.

Borrowings are removed from the Balance Sheet
when the obligation specified in the contract is
discharged, cancelled or expired.

The difference between the carrying amount of
a financial liability that has been extinguished or
transferred to another party and the consideration
paid, including any non-cash assets transferred or
liabilities assumed, is recognised in Statement of
Profit and Loss.

(xvi) Foreign exchange gains or losses

For financial liabilities that are denominated in a
foreign currency and are measured at amortised

cost at the end of each reporting period, the foreign
exchange gains and losses are determined based
on the amortised cost of the instruments and are
recognised in Statement of Profit and Loss.

The fair value of financial liabilities denominated
in a foreign currency is determined in that foreign
currency and translated at the exchange rate at the
end of the reporting period. For financial liabilities
that are measured as at fair value through profit or
loss, the foreign exchange component forms part
of the fair value gains or losses and is recognised
in Statement of Profit and Loss.

(xvii) Derecognition of financial liabilities

The Company derecognises financial liabilities
when, and only when, the Company’s obligations
are discharged, cancelled or have expired.

(xviii) Derivative financial instruments

The Company enters into a variety of derivative
financial instruments to manage its exposure
to interest rate and foreign exchange rate risks,
including foreign exchange forward contracts,
interest rate and cross currency swaps.

Derivatives are initially recognised at fair value at
the date the derivative contracts are entered and
are subsequently remeasured to their fair value
at the end of each reporting period. The resulting
gain or loss is recognised in Statement of Profit
and Loss immediately unless the derivative is
designated and effective as a hedging instrument,
in which event the timing of the recognition in
Statement of Profit and Loss depends on nature
of the hedging relationship and the nature of the
hedged item.

(xix) Offsetting Financial Instruments

Financial assets and liabilities are offset and the
net amount is reported in the Balance Sheet where
there is a legally enforceable right to offset the
recognised amounts and there is an intention to
settle on a net basis or realise the asset and settle
the liability simultaneously. The legally enforceable
right must not be contingent on future events
and must be enforceable in the normal course of
business and in the event of default, insolvency or
bankruptcy of the Company or the counterparty.

2.16 Fair Value Measurement

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. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

♦ In the principal market for the asset or liability, or

♦ I n the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must
be accessible by the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming that
market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes
into account a market participant’s ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data is available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the Financial Statements are categorized
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 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable

Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable

For assets and liabilities that are recognised in the
Balance Sheet on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the Company
has determined classes of assets and liabilities on the

basis of the nature, characteristics and risks of the
asset or liability and the level of the fair value hierarchy
as explained above

2.17 Earnings Per Share

Basic earnings per share is computed by dividing the
net profit after tax by the weighted average number
of equity shares outstanding during the period. For
the purpose of calculating diluted earnings per share,
the net profit for the period attributable to equity
shareholders and the weighted average number of
shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares, except
where the result is anti-dilutive.

2.18 Government Grants & Subsidies

Government Grants are recognised at their fair value
where there is a reasonable assurance that the grant
will be received and the Company will comply with all
attached conditions. Government grants are recognised
in Statement of Profit and Loss on a systematic basis
over the periods in which the Company recognises as
expenses the related costs for which the grants are
intended to compensate. Grant relating to assets are
netted off against the acquisition cost of the asset.

2.19 Dividends

Final dividends on shares are recorded on the date of
approval by the shareholders of the Company.

2.20 Royalty

The Company pays/accrues for royalty in accordance
with the relevant license agreements.

The lump-sum royalty incurred towards obtaining
technical assistance/technical know-how and
engineering support to manufacture a new model is
recognized as an intangible asset. Royalty payable
on sale of products i.e. running royalty is charged to
Statement of Profit and Loss as and when incurred.

2.21 Rounding off amounts

All amounts disclosed in the Financial Statements and
the accompanying notes have been rounded off to
the nearest lakhs as per the requirement of Schedule
III (Division II) of the Companies Act 2013, unless
otherwise stated.

Recent accounting pronouncements

On August 13, 2025, Ministry of Corporate Affairs
("MCA") notified the amendments to the following
standard:

Ind AS 1 - Presentation of Financial Statements -
Distinction between current and non-current liability.
These amendments provide clearer guidance on
classification of the liabilities as current and non¬
current liability by including the additional definition
and considerations for classification of the liability.
The amendments also provide additional disclosure
requirements relating to material breach of long-term
loan arrangement.

The amendment relates to classification of the non¬
current and current bifurcation of long-term loan
arrangement due to breach of covenants on or before
the end of reporting period. Due to this, the loan is
considered to be payable on demand and is classified
as current liability, unless the lender agrees, by the end
of the reporting period to provide a period of grace of
at least twelve months after the reporting period within
which the entity can rectify the breach and during which
the lender cannot demand immediate repayment.
The amendment is applicable from April 1, 2026. The
Company is currently assessing the probable impact
of amendments which are applicable in its annual
financial statements.

I nd AS 7 - Cash flow statement - Supplier Financing
Arrangement. These amendments include additional
disclosure requirements for supplier financing
arrangements relating to cash and non- cash changes
(i.e. the effect of business combinations, exchange
differences or other transactions that do not require the
use of cash or cash equivalents) and disclosure relating
to the terms and conditions related to the arrangement
including disclosure of dissimilar terms separately
along with carrying amounts in line items disclosed for
which suppliers have received payments from financial
institution and range of due dates. The amendment
is applicable from April 1, 2025 with exemption to
comparative period and interim periods in which entity
first applies the amendments.

Ind AS 107 - Financial Instruments Disclosure -
Additional disclosure relating to Supplier Financing
Arrangement - The liquidity risk disclosure will
also include the disclosure for supplier financing
arrangement which includes maturity analysis for
supplier financing arrangement and a description of
how the entity manages the liquidity risk inherent in
Supplier Financing Arrangement (Refer note no 23).

Ind AS 12 - Income Taxes -Pillar Two - The amendment
includes in the scope of the Ind AS 12 the income
tax paid on pillar two model rules and disclosure for
application of the exception additional disclosure
relating to current income taxes related to Pillar Two
income taxes and disclosure of known or reasonably
estimable information that helps users of financial
statements understand the entity’s exposure to Pillar
Two income taxes arising from that legislation when
Pillar two legislation is enacted but not yet effective.
These disclosure shall be supported by qualitative
and quantitative information. These amendments are
effective from April 01, 2025. Based on the current
assessment of the financial statement of constituent
entities, there is no impact from the application of the
Pillar Two rules on its financial statements.

ii) Terms/rights attached to equity shares

The Company has one class of equity shares having par value of ' 1/- per share. Each shareholder is entitled for one vote
per share held. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing
Annual General Meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are
eligible to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their
shareholding.

The Board at its meeting held on 11^th May, 2026 has recommended a dividend @ 85% i.e. ' 0.85 /- per share (on fully paid up

equity share of ' 1/- each) for the year ended 31^st March 2026. This equity dividend is subject to approval by shareholders at

the Annual General Meeting. The total estimated equity dividend to be paid is ' 2,010.20 Lakhs.

Nature and purposes of Reserves:

i) General Reserve: General Reserve is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of
other comprehensive income, items included in the General Reserve will not be reclassified subsequently to Statement of
Profit and Loss.

ii) Retained Earnings: The balance in the Retained Earnings primarily represents the surplus after payment of dividend and
transfer to reserves.

iii) Capital Reserve on Merger: Capital Reserve on Merger represents the excess of liabilities over assets received by the
Parent Company on purchase of stake in Subsidiary & Associate Company pursuant to the Scheme of Merger, as approved
by the National Company Law Tribunal.

iv) Securities Premium: Securities Premium represents the surplus of proceeds received over the face value of shares, at
the time of issue of shares. This reserve can be utilised only for limited purposes such as issuance of bonus shares in
accordance with the provisions of the Companies Act, 2013.

v) Capital Redemption Reserve: Capital Redemption Reserve is created out of retained earnings towards redemption of
Preference shares. This reserve can be used for the purpose of issue of fully paid bonus shares only.

*Term loan of ' NIL (PY ' 1,125.00 lakhs) is secured by first pari passu charge on movable fixed assets both present and future
of the company. Second Pari passu charge on all the current assets both present & future of the company.

Term loan of ' NIL (PY ' 857.14 lakhs) is secured by first pari passu charge by way of hypothecation on
all movable fixed assets (except those charged exclusively to other lenders), both present and future.
Second pari passu charge by way of hypothecation on all current assets both present and future

Term loan of ' 3,928.57 lakhs (PY ' 5,000.00 lakhs ) has first Pari Passu Charge on entire movable fixed assets of the company
(excluding those which are exclusively charge to term lender) with minimum asset coverage of 1.25x the loan amount. Second
Pari Passu charge by way of hypothecation on the entire current assets of the borrower, both present and future.

Term loan of ' 786.33 lakhs (PY ' 2,358.99 lakhs) is secured by First pari passu charge on movable fixed assets at the company
both present and future. Second pari passu charge on all the current assets both present & future of the company.

Term loan of ' 1,713.07 lakhs (PY ' 2,066.34 lakhs ) has First pari passu charge on movable fixed assets at the company
(excluding moveable fixed assets charged exclusively to lenders) with minimum 1.25 cover. Second pari passu charge on all
the current assets both present & future of the company.

Term loan of ' 5,633.51 lakhs (PY ' 361.32 lakhs ) has First pari passu charge on movable fixed assets of the company both
present and future (Other than those exclusively charged to Term lenders). Second pari passu charge on all the current assets
both present & future of the company.

Term loan of ' 1,154.82 lakhs (PY ' NIL ) has First pari passu charge on movable fixed assets of the company both present and
future (excluding those exclusively charged to other lenders). Second pari passu charge on all the current assets both present
& future of the company.

Term loan of ' 7,500.00 lakhs (PY ' NIL) has exclusive charges by way of hypothecation on loans and advances/ ICDs given to
JBM Ecolife mobility or group companies of mobility business with over 1.1x

Term loan of ' NIL (PY ' 1,023.47 lakhs) has First pari passu charge on all movable fixed assets at the company both present
and future with security cover 1.3x. Second pari passu charge on all the current assets both present & future of the company.

**Secured by hypothecation of respective vehicles financed.

Vehicle Loan from bank are payable in 60 monthly equal instalments respectively from the date of disbursements carrying
interest rate @ 8.55%-8.70% per annum.

***Term loan of ' 2,500.00 lakhs (PY ' 3,500.00 lakhs) has Pari Passu charge on movable fixed assets of the company (both
present and future)with a minimum asset cover of 1.33X.

Term loan of ' 4,687.50 lakhs (PY ' 5,000.00 lakhs) has first Pari Passu charge on movable fixed assets of the company (both
present and future) with a minimum asset cover of 1.33X.

Term loan of ' 1,875.00 lakhs (PY ' 3,125.00 lakhs ) has first Pari passu charge on entire movable fixed assets of company
(both present and future) with min FACR of 1.30x.

Term loan of ' 194.44 lakhs (PY ' 972.22 lakhs) has first Pari passu charge on entire movable fixed assets of company (both
present and future) with min FACR of 1.30x.

Term loan of ' 12,500.00 lakhs (PY ' NIL ) has first Pari passu charge on movable fixed assets of company with min FACR of
1.20x

Term loan of ' NIL (PY ' 3,375.00 lakhs ) has First pari passu charge over the entire movable fixed assets of the company (min
FACR of 1.25x). Second Pari-passu charge on the current assets of the company.

Term loan of ' NIL (PY ' 2,750.00 lakhs) has First pari passu charge over all movable fixed assets of the company, both present
& future with min FACR of 1.25x. Second pari passu charge over all current assets of the company, both present and future
(excluding assets which are exclusively charged to other lenders currently).

Term loan of ' 19,000.00 lakhs (PY ' 20,000.00 lakhs) is secured by first pari passu charge on entire movable fixed assets of
the Company (both present and future) and negative lien undertaking given by the company on Noida lease assets bearing
registration number 2458 vol no. 2002 & Nashik land bearing registration number 6447/ 2005 (outstanding balance adjusted
processing fees as per Ind AS).

Term loan of ' 7,500.00 lakhs (PY ' NIL) First Pari Passu Charge by way of Hypothecation on entire movable fixed assets of
the company (excluding those which are exclusively charge to term lender) both present and future but not limited to Plant
& Machinery with security cover 1.1X. Second Pari Passu charge by way of hypothecation on the entire current assets of the
borrower, both present and future but not limited to Inventory, Book Debts and Receivables.

Term loan of ' 2,187.50 lakhs (PY ' 3,425.04 lakhs) has First pari passu charge on movable fixed assets of the company both
present & future , with a minimum asset cover of 1.25X.

****Inter corporate loan shall be repayable at the end of 3 years, however the same can be prepaid before the end of 3 years,
Interest rate 10% p.a.

Basic earning per share (EPS) amounts are calculated by dividing the profit for the year attributable to equity holders of the
Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average
number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued
on conversion of all the dilutive potential equity shares into equity shares, unless the effect of potential dilutive equity share is
antidilutive.

(iv) Extension and termination option

Extension and termination options are included in some of the leases executed by the Company. These are used to
maximise operational flexibility in terms of managing the assets used in Company’s operations. Generally, these options
are exercisable mutually by both the lessor and the lessee.

(v) There are no restrictions imposed by the lease agreements. There are no contingent rents. The operating lease agreements
are renewable on a periodic basis. Some of these lease agreements have price escalation clause.

(vi) Incremental borrowing rate of 9.00%-10.50% p.a. has been applied for measuring the lease liability at the date of initial
application.

(vii) The Company has sub-leased part of land. Income from sub-leasing right-of-use assets is ' 272.81 lakhs (PY ' 136.14
lakhs).

Payment is received in advance towards contract entered with customers and is recognised as a contract liability. As and when

the performance obligation is met, the same is recognised as revenue.

c) The amounts receivable from customers become due after expiry of credit period which ranges from 30 to 180 days.
There is no significant financing component in any transaction with the customers.

d) Revenue from sale of products is recognized when the control on the goods have been transferred to the customer. The
performance obligation in case of sale of product in component division is satisfied at a point in time or over the period of
time depending upon nature of contract.

Revenue from Tooling Business is recognized over time by measuring progress towards satisfaction of performance
obligation and it determined that the input method is the best method for measuring progress of the tooling development
because there is a direct relationship between the Company’s effort (i.e., costs incurred) and the transfer of tooling to the
customer. The Company recognises revenue on the basis of the total costs incurred relative to the total expected costs to
complete the tool.

Revenue from OEM Division (Sale of Buses) is recognized over time by measuring progress towards satisfaction of
performance obligation and it determined that the input method is the best method for measuring progress of the Bus
development because there is a direct relationship between the Company’s effort (i.e., costs incurred) and the transfer
of Bus to the customer. The Company recognises revenue on the basis of the total costs incurred relative to the total
expected costs to complete the Bus.

e) The Company provides agreed upon performance warranty for selected range of products. The amount of liability towards
such warranty is ' 154.16 Lakhs (' 170.83 Lakhs).

f) The transactions price allocated to the performance obligations (unsatisfied or partially satisfied) are ' 28,377.46 lakhs
(PY ' 23,444.87 lakhs). The Company expects to recognise revenue related to unsatisfied obligation within one year from
the reporting period.

g) The Company does not have any significant adjustment between the contract price and the revenue recognized in
Statement of Profit and Loss.

A. Defined Benefit Plans as per Ind AS 19 Employee Benefits:Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a
gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. These benefits are funded.

These Plans typically expose the Company to actuarial risks such as : Investment risk, Interest rate risk, Longevity risk and
Salary risk.

Investment Risk: The Probability or likelihood of occurrence of losses relative to the expected return on any particular
investment.

Interest Risk: The Plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an
increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.

Longevity Risk: The present value of defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants during employment. An increase in the life expectancy of the plan participants will increase
the plan’s liability.

Salary Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan
participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in
salary used to determine the present value of obligation will have a bearing on the plan’s liability.

Disclosure of gratuity

The following tables summaries the components of net benefit expense recognized in the Statement of Profit and Loss
and the funded status and amounts recognized in the Balance Sheet.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant.
In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating
the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value
of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period)
has been applied which was applied while calculating the defined benefit obligation liability recognised in the Balance
Sheet.

The Company is expected to contribute ' 2,666.37 lakhs to Defined Benefit Plan Obligation Funds in next year

NOTE 51 : SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

“The preparation of the Company's Financial Statements requires management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the
disclosure of contingent liabilities. These include recognition and measurement of financial instruments, estimates of useful
lives and residual value of property, plant and equipment and intangible assets, valuation of inventories, measurement of
recoverable amounts of cash-generating units, measurement of employee benefits, actuarial assumptions, provisions etc.

Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods. The Company continually evaluates these estimates and assumptions
based on the most recently available information. Revisions to accounting estimates are recognized prospectively in the
Statement of Profit and Loss in the period in which the estimates are revised and in any future periods affected."

Judgments

In the process of applying the Company’s accounting policies, management has made the following judgments, which have the
most significant effect on the amounts recognized in the Financial Statements:

Leases

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option
to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on
the expected lease term on lease-by-lease basis. In evaluating the lease term, the Company considers factors such as any
significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the
importance of the underlying asset to the Company’s operations taking into account the location of the underlying asset and
the availability of suitable alternatives. The lease term in future periods reassessed to ensure that the lease term reflects the
current economic circumstances.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are described below. The Company based its assumptions and estimates on parameters available when the Financial
Statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to
market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions
when they occur.

(i) Gratuity benefits

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in
the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the
complexity of the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.

In determining the appropriate discount rate, management considers the interest rates of government bonds, and
extrapolated maturity corresponding to the expected duration of the defined benefit obligation. The mortality rate is based
on publicly available mortality tables. Future salary increases and pension increases are based on expected future inflation
rates. Further details about the assumptions used, including a sensitivity analysis, are given in Note 49.

(ii) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the discounted cash
flow (DCF) model based on level-2 and level-3 inputs. The inputs to these models are taken from observable markets
where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments
include considerations of inputs such as price estimates, volume estimates, rate estimates etc. Changes in assumptions
about these factors could affect the reported fair value of financial instruments.

(iii) Impairment of financial assets

The impairment provisions for trade receivables are based on assumptions about risk of default and expected loss rates.
The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation based
on the Company past history and other factors at the end of each reporting period.

(iv) Estimates related to useful life of property, plant and equipment & intangible assets

Depreciation on property plant and equipment is calculated on a straight-line basis over the useful lives estimated by the
management. These rates are in line with the lives prescribed under Schedule II of the Companies Act, 2013.

The management has re-estimated useful lives and residual values of its assets. The management based upon the
nature of asset, the operating condition of the asset, the estimated usage of the asset, past history of replacement and
anticipated technological changes, believes that depreciation rates currently used fairly reflect its estimate of the useful
lives and residual values of property, plant and equipment & intangible assets.

(v) Impairment of Assets

An impairment exists when the carrying value of an asset exceeds its recoverable amount. Recoverable amount is the
higher of its fair value less costs to sell and its value in use. The value in use calculation is based on a discounted cash flow
model. In calculating the value in use, certain assumptions are required to be made in respect of highly uncertain matters,
including management’s expectations of growth in EBITDA, long term growth rates; and the selection of discount rates to
reflect the risks involved.

(vi) Contingent liabilities

The contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company. The Company
evaluates the obligation through Probable, Possible or Remote model ('PPR’). In making the evaluation for PPR, the
Company take into consideration the Industry perspective, legal and technical view, availability of documentation/
agreements, interpretation of the matter, independent opinion from professionals (specific matters) etc. which can vary
based on subsequent events. The Company provides the liability in the books for probable cases, while possible cases are
shown as contingent liability. The remotes cases are not disclosed in the Financial Statements.

(vii) Taxes

Provision for tax liabilities require judgments on the interpretation of tax legislation, developments in case law and the
potential outcomes of tax audits and appeals which may be subject to significant uncertainty. Therefore the actual
results may vary from expectations resulting in adjustments to provisions, the valuation of deferred tax assets, cash tax
settlements and therefore the tax charge in the Statement of Profit and Loss.

NOTE 52 : FINANCIAL INSTRUMENTS
A. Capital management

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising
the return to stakeholders through efficient allocation of capital towards expansion of business, optimisation of working
capital requirements and deployment of surplus funds into various investment options.

The management of the Company reviews the capital structure of the Company on regular basis. As part of this review,
the Board considers the cost of capital and the risks associated with the movement in the working capital.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, loans and
borrowings, acceptances & Lease liability less cash and cash equivalents.

B. Fair value measurements

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by
valuation techniques:

The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:

Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets
for identical assets or liabilities.

Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable market
data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions
that are neither supported by prices from observable current market transactions in the same instrument nor are they
based on available market data.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly
transaction between market participants.

The fair value of investment in unquoted equity/preference shares has been estimated using a Discounted cash flow (DCF)/
Dividend yield/ Yield to Maturity method / NAV method. The valuation requires management to make certain assumptions
about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of various
estimates within the range can be reasonably asserted and are used in management's estimate of fair value for these
unquoted equity/preference shares. The assessment of the future risk is done by analysing various financial ratios. The
future cash-outflows are projected after applying any probability of non-payment of dividend and principal amount.

Fair value of the Company 's financial assets that are measured at fair value on a recurring basis:

There are certain Company 's financial assets which are measured at fair value at the end of each reporting period. There
have been no transfer among level 3 during the period. Following table gives information about how the fair values of these
financial assets are determined:

D. Financial risk management

The Company has a Risk Management & Sustainability Committee established by its Board of Directors for overseeing
the Risk Management Framework and developing and monitoring the Company’s risk management policies. The risk
management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk
thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness
and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market
conditions and the Company’s activities to provide reliable information to the Management and the Board to evaluate the
adequacy of the risk management framework in relation to the risk faced by the Company.

The risk management policies aims to mitigate the following risks arising from the financial instruments:

Credit risk; and

Liquidity risk

D.1. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign
currency exchange rates and interest rates.

a) Foreign currency risk management

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates
primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency) and
foreign currency loans and borrowings (Foreign currency buyer’s credit).

D.2 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating
the risk of financial loss from defaults. The Company’s exposure and wherever appropriate, the credit ratings of its
counterparties are continuously monitored and spread amongst various counterparties. Credit exposure is controlled by
counterparty limits that are reviewed and approved by the management of the Company.

Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks, trade
receivables, loans and advances and derivative financial instruments. None of the financial instruments of the Company
result in material concentrations of credit risks.

Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past dues and
not impaired, there were no indication of default in repayment as at the year end.

D.3 Liquidity risk management

Liquidity risk refers to the risk that the Company can not meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and to ensure funds are available for use as per the requirements.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of long term
borrowings, short term borrowings and trade payables etc. The Company has access to a sufficient variety of sources of
funding and debt maturing within 12 months can be rolled over with existing lenders.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted
payments.

B Other Regulatory Information's

(i) The Company has not granted Loans or Advances in the nature of loans to promoters, Directors, KMPs and the
related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are
repayable on demand or without specifying any terms or period of repayment.

(ii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

(iii) The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in
agreement with the books of accounts.

(iv) The Company is not declared as a wilful defaulter by any bank or financial institution (as defined under the Companies
Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the
Reserve Bank of India.

(v) The Company does not have any transactions with Companies struck off under Section 248 of the Companies Act,
2013 or Section 560 of Companies Act, 1956 during the financial year.

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

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

(viii) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other person or entity, including foreign entities ("Intermediaries") with the
understanding (whether recorded in writing or otherwise) that the Intermediaries shall, whether, directly or indirectly
lend or invest in other persons/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.

(ix) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall, whether 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,
other than fund of amounting ' Nil (2024-25: 20,000 lakhs) received during the current period.

(x) 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).

(xi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.