2.19 Provisions and contingencies

A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance
sheet date and adjusted to reflect the current best estimates.

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 the obligation or
a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in the financial statements.

2.20 Earnings per share (EPS)

Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders of the Company by the weighted average
number of equity shares outstanding during the year.

2.21 Cash dividend to equity holders

The company recognises a liability to make cash distributions to equity holders when the distribution is authorised and the distribution is
no longer at the discretion of the company. As per the corporate laws in India, a distribution is authorised when it is approved by the
shareholders. A corresponding amount is recognised directly in equity.

2.22 Government grant

Government grants are recognised at their fair value when there is a reasonable assurance that the grant will be received and company will
comply with all attached conditions.

Government grants relating to income are deferred and recognised in the statement of profit and loss over the period necessary to match
them with costs that they are intended to compensate and presented within other income.

Government grants relating to purchase of property, plant and equipment are initially recognised as deferred income at fair value and
subsequently recognised in the statement of profit and loss on a systematic basis over the useful life of the asset.

The company has only one class of equity shares, having par value of Rs. 10 per share. Each holder of equity share is entitled for one vote per share and has a right to
receive dividend, as recommended by the board of directors subject to the necessary approval from the shareholders. In the event of liquidation of the company, the
holders of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to
the number of equity shares held by the shareholders.

F. Allotments of Warrants

Last year the company issued 1,03,56,725 convertible warrants at Rs. 171 per warrant, convertible into 1,03,56,725 equity shares of Rs. 10 each at a premium of Rs 161
per share amounting to Rs. 17710 Lakhs. Out of these 97,56,725 convertible warrants were allotted by the Company and balance 6,00,000 warrants were lapsed.

Out of allotted warrants, 11,69,591 warrants have been converted into equity shares by allottees in last year.

The Company has exposure to the following risks arising from financial instruments:

• Credit risk ;

• Liquidity risk ; and

• Market risk

(A) Credit risk

Credit risk arises from cash and cash equivalents, deposits with banks, security deposits, as well as credit exposure to outstanding
receivables.

Credit risk management

The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including
deposits with banks and other financial instruments. For banks and other financial institutions, only high rated banks/ financial institutions
are accepted. The balances with banks, loans given to employees, security deposits are subject to low credit risk and the risk of default is
negligible or nil. Hence, no provision has been made for expected credit loss for credit risk arising from these financial assets.

Trade receivables

Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To manage this, the
Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends,
analysis ofhistorical bad debts, ageing of accounts receivable and forward looking information. Individual credit limits are set accordingly.
The credit risk is considered low given the past experience of negligible or minimal write-offs.

(B) Liquidity risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company monitors rolling forecast of
its liquidity position on the basis of expected cash flows. The company has obtained fund based / Non-fund based working capital facilities
from banks.

Exposure to liquidity risk

The tables below analyse the Company's non-derivative financial liabilities into relevant maturity group based on their contractual
maturities:

(C) Market risk

(i) Foreign currency risk

Foreign currency risk means the risk that the result or economic situation of the Company changes due to changes in exchange rates. The
Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. Foreign
exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency which is not the
Company's functional currency (INR). The risk is measured through a forecast of highly probably foreign currency cash flows.

The Company’s objective for capital management is to maximize shareholder wealth, safeguard business continuity and support
the growth of the Company. The Company determines the capital management requirement based on annual operating plans and
long-term and other strategic investment plans. The funding requirements are met through optimum mix of borrowed and own
funds.

Note - 37 : Segment Reporting

The business activities of the Company from which it earns revenues and incurs expenses; whose operating results are regularly
reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its
performance, and for which discrete financial information is available which involves predominantly one operating segment i.e.
automotive components.

Note - 40 : Company has purchased six bills of exchange and paid Rs. 206.65 Lakhs (Rs. 206.65 Lakhs) for the same. These bills have matured but have not
been honoured. Company has filed suits in the High Court of Judicature at Bombay.

Note - 41 : In terms of the Notification dated March 31, 2009 by The Ministry of Corporate Affairs amending the erstwhile Ind AS -21 "The Effects of Changes
in Foreign Exchange Rates", the company had exercised the option to recognize the exchange difference on long term non-monetary items
retrospectively from the accounting period 2007-08. Such exchange differences relating to the acquisition of capital assets are adjusted to the cost of
capital and would be depreciated over the balance life of the asset. Exchange difference amounting to Rs. 125.41 Lakhs (Rs. 200.24 Lakhs) has been
carried in the Fixed Assets as on March 31, 2026.

Notes:

i) Debt Service Coverage Ratio has improved due to lower debt servicing during the current year.

ii) Return on Equity ratio and Return on Capital Employed ratio has gone down due to increase in equity and reduction in net profit.

iii) Net Capital Turnover Ratio was impacted due to increase in average working capital.

iv) Net Profit Ratio is impacted due to lower net profit.

v) Return on investment has goes down due to increase in investment in subsidiary.

Note - 45 : Additional Regulatory Disclosures as per Schedule III of Companies Act, 2013

(i) Ihe Title deeds of the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the
name of the Company.

(ii) The Company does not have any investment property.

(iii) There is no revaluation of Property, Plant and Equipment (including Right of Use Assets) and intangible assets during the year, hence the revaluation related disclosures required as per
Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.

(iv) The Company has not granted Loans or Advances in the nature of loan to any promoters, Directors, KMPs and the related parties (As per Companies Act, 2013) , which are repayable
on demand or without specifying any terms or period of repayments.

(v) Capital-Work-in Progress (CWIP)

(vi) Intangible assets under development : NA

(vii) N o proceedings have been initiated or pending against the Company for holding any B enami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the
rules made thereunder.

(viii) The Company has been sanctioned facilities from banks on the basis of security of current assets in excess of Rs 5 Cr. The Quarterly returns or statements of current assets filed by the
Company with such banks are in agreement with the books of accounts of the Company taking into account notes given in the said statements.

(ix) The Company has not been declared as wilful defaulter by any of the lenders.

(x) There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 or Section 560 of the Companies Act, 1956 during the year
ended March 31,2026.

(xi) All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies have been filed. No registration or satisfaction is pending at the year
ended March 31, 2026.

(xii) Compliance with number of layers of companies - NA

(xiii) No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013.

(xiv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

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

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

(xv) 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:

(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.

(xvi) The Company has not operated in any crypto currency or Virtual Currency transactions.

(xvii) During the year the Company has not disclosed or surrendered, any income other than the income recoginsed in the books of accounts in the tax assessments under Income Tax Act,
1961.

(xviii) Corporate Social Responsibility : Provisions of 135 of companies act 2013 are not applicable to company.