2.21 Provision, Contingent Liability and Contingent
Assets

i. Provision

A provision is recognized, when company has
a present obligation (legal or constructive) as
a result of past events and it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation,
in respect of which a reliable estimate can
be made for the amount of obligation. The
expense relating to the provision is presented
in the profit and loss net of any reimbursement.

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

ii. Contingent Liability

A 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
or a present obligation that is not recognized
because it is not probable that an outflow
of resources will be required to settle the
obligation. A contingent liability also arises in
extremely rare cases where there is a liability
that cannot be recognized because it cannot
be measured reliably. The Company does not
recognize a contingent liability but discloses its
existence in the financial statements.

Contingent liabilities, if material, are disclosed
by way of notes and contingent assets, if any, are
disclosed in the notes to financial statements.

iii. Contingent Assets

Contingent Assets are disclosed, where an
inflow of economic benefits is probable.

2.22 Earnings Per Share

i. Basic earnings per share

Basic earnings per share is calculated by dividing

i. the profit attributable to owners of
the Company; and

ii. by the weighted average number of equity
shares outstanding during the financial
year, adjusted for bonus elements in
equity shares issued during the year.

ii. Diluted earnings per share

Diluted earnings per share adjust the figures
used in the determination of basic earnings
per share to take into account:

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

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

2.23 Leases

i. As a lessee

The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116. Identification of a lease requires
significant judgment. The Company uses
significant judgement in assessing the lease
term (including anticipated renewals) and
the applicable discount rate. The Company
determines the lease term as the non¬
cancellable period of a lease, together with
both periods covered by an option to extend
the lease if the company is reasonably
certain to exercise that option; and periods
covered by an option to terminate the lease
if the Company is reasonably certain not to
exercise that option. In assessing whether the
Company is reasonably certain to exercise an
option to extend a lease, or not to exercise an
option to terminate a lease, it considers all
relevant facts and circumstances that create
an economic incentive for the Company to
exercise the option to extend the lease, or not
to exercise the option to terminate the lease.
The Company revises the lease term if there
is a change in the non-cancellable period of a
lease. The discount rate is generally based on
the incremental borrowing rate specific to the
lease being evaluated or for a portfolio of leases
with similar characteristics.

ii. As a lessor

Lease income from operating leases where the
Company is a lessor is recognised in income on
a straight-line basis over the lease term unless
the receipts are structured to increase in line
with expected general inflation to compensate
for the expected inflationary cost increases.
The respective leased assets are included in
the balance sheet based on their nature.

2.24 Employee benefits

i. Short-term obligations

Liabilities for wages and salaries, including
non-monetary benefits that are expected to
be settled wholly within 12 months after the
end of the period in which the employees
render the related service are recognised in
respect of employees’ services up to the end
of the reporting period and are measured
at the amounts expected to be paid when
the liabilities are settled. The liabilities are
presented as current employee benefit
obligations in the balance sheet.

ii. Other long-term employee benefit
obligations

The liabilities for earned leave are not expected
to be settled wholly within 12 months after
the end of the period in which the employees
render the related service. They are therefore
measured as the present value of expected
future payments to be made in respect
of services provided by employees up to
the end of the reporting period using the
projected unit credit method. The benefits
are discounted using the appropriate market
yields at the end of the reporting period that
have terms approximating to the terms of
the related obligation. Remeasurements as a
result of experience adjustments and changes
in actuarial assumptions are recognised in
profit or loss.

The obligations are presented as current
liabilities in the balance sheet if the entity
does not have an unconditional right to defer
settlement for at least twelve months after the
reporting period, regardless of when the actual
settlement is expected to occur.

iii. Post-employment obligations

a. Defined benefit gratuity plan:

The Company provides for the liability
towards the said benefit on the basis
of actuarial valuation carried out as at
the reporting date, by an independent
qualified actuary using the projected-unit-
credit method. The Company has opted
for a Group Gratuity-cum-Life Assurance
Scheme of the Life Insurance Corporation
of India (LIC), and the contribution is
charged to the Statement of Profit &
Loss each year.

The liability or asset recognised in the
balance sheet in respect of defined
benefit gratuity plans is the present
value of the defined benefit obligation
at the end of the reporting period less
the fair value of plan. The defined benefit
obligation is calculated annually as
provided by LIC. The present value of the
defined benefit obligation is determined
by discounting the estimated future
cash outflows by reference to market
yields at the end of the reporting period
on government bonds that have terms
approximating to the terms of the
related obligation. The net interest cost is
calculated by applying the discount rate
to the net balance of the defined benefit
obligation and the fair value of plan assets.
This cost is included in employee benefit
expense in the statement of profit and
loss. Re-measurement gains and losses
arising from experience adjustments and
changes in actuarial assumptions are
recognised in the period in which they
occur, directly in other comprehensive
income. They are included in retained
earnings in the statement of changes in
equity and in the balance sheet.

b. Defined Contribution plan:

Contribution payable to recognised
provident fund which is defined
contribution scheme is charged to
Statement of Profit & Loss. The company
has no further obligation to the plan
beyond its contribution.

iv. Other long-term employee benefits

The employees of the Company are entitled to
compensated absences as well as other long¬
term benefits. Compensated absences benefit
comprises of encashment and availment
of leave balances that were earned by the
employees over the period of past employment.

The Company provides for the liability towards
the said benefit on the basis of actuarial
valuation carried out quarterly as at the
reporting date, by an independent qualified
actuary using the projected-unit-credit
method. The related re-measurements are
recognized in the statement of profit and loss
in the period in which they arise.

2.25 Operating Cycle

Based on the nature of products/activities of
the Company and the normal time between
acquisition of assets and their realisation in cash
or cash equivalents, the Company has determined
its operating cycle as 12 months for the purpose of
classification of its assets and liabilities as current
and non-current.

2.26 Recent Indian Accounting Standards (Ind AS)

Ministry of Corporate Affairs (“MCA”) notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. On
March 23, 2022, MCA amended the Companies
(Indian Accounting Standards) Amendment Rules,
2022, as below.

Ind AS 16 - Property Plant and equipment - The
amendment clarifies that excess of net sale
proceeds of items produced over the cost of testing,
if any, shall not be recognised in the profit or loss
but deducted from the directly attributable costs
considered as part of cost of an item of property,
plant, and equipment. The effective date for
adoption of this amendment is annual periods

beginning on or after April 1, 2022. The Company
has evaluated the amendment and there is no
impact on its consolidated financial statements.

Ind AS 37 - Provisions, Contingent Liabilities and
Contingent Assets - The amendment specifies that
the ‘cost of fulfilling’ a contract comprises the ‘costs
that relate directly to the contract’. Costs that relate
directly to a contract can either be incremental
costs of fulfilling that contract (examples would be
direct labour, materials) or an allocation of other
costs that relate directly to fulfilling contracts (an
example would be the allocation of the depreciation
charge for an item of property, plant and equipment
used in fulfilling the contract). The effective date
for adoption of this amendment is annual periods
beginning on or after April 1, 2022, although early
adoption is permitted. The Company has evaluated
the amendment and the impact is not expected
to be material.

2.27 Rounding of amounts

All amounts disclosed in the financial statements
and notes have been rounded off to the nearest
Rupees in Lacs (upto two decimals), unless
otherwise stated as per the requirement of
Schedule III (Division II).

Note No 9.1: The Company has invested 5500 equity shares in “Remsons-Uni Autonics Private Limited” from its
present promoters for acquisition of 55% stake @ H 10/- each, After said acquisition, Remsons-Uni Autonics Private
Limited became subsidiary of the Company.

Note No 9.2: The Company has invested in 1,10,50,500 (One Crore Ten Lakh Fifty Thousand Five Hundred) Optionally
Convertible Non-Cumulative, Non-Participating Redeemable Preference Shares of H 10/- (Rupees Ten only) each
shares in “Remsons-Uni Autonics Private Limited” for the period of 5 years.

Note No 9.3: The Group has invested in 75000 Equity Shares having face value of H 10/- each, in 'Daiichi Remsons
Electronics Private Limited’ (a 50:50 Joint Venture between the Company and Daiichi Infotainment Systems
Private Limited)

Note no 9.4: The Group has invested in 52000 Equity Shares having face value of H 10/- each, in 'Aircom Remsons
Automotive Private Limited’ (a 26:74 Joint Venture between the Company and Aircom Group AG, Switzerland,
(through its Wholly Owned Subsidiary in India viz. Aircom Group India Private Limited)

20. EQUITY SHARE CAPITAL (Contd..)

* During the previous financial year, the company has Allotted 9,92,400 Equity Shares of H 10/- (Rupees Ten only) each of the Company for
cash at an issue price of H 480/- each (including premium of H 470/- per Equity Share) on preferential basis, as approved by the members
of the Company in their Extra Ordinary General Meeting held on 20^th December, 2023 to 47 persons in public category, upon receipt
of full issue price from the said persons in accordance with the provisions of the SEBI (Issue of Capital and Disclosure Requirements)
Regulations, 2018. The split impact of the shares in the ratio of 1:5 have been accounted for.

#During the previous financial year, the company has allotted 2,70,000 Equity Shares of H 10/- (Rupees Ten only) each of the Company
upon conversion of 2,70,000 Warrants issued on preferential basis at an issue price of H 480/- each (including premium of H 470/- per
Warrant), as approved by the members of the Company in their Extra Ordinary General Meeting held on 20^th December, 2023 to 3 persons
in Promoters and Promoter group entity. The split impact of the shares in the ratio of 1:5 have been accounted for.

The Company in their Extraordinary General Meeting held on 29^th March 2024 approved the sub division of equity
shares having face value of H 10/- each into 5 equity shares having face value of H 2/- each

Note No 20.2: Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of J 2 per share. Each holder of equity
shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the
approval of the shareholder in the ensuing Annual General Meeting.

(B) 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 shareholder.

Note No 22.1: Vehicle Loans from banks secured by Hypothecation of respective vehicles and repayable in 36
months to 60 months.

Note No 22.2: From State Bank of India, Mumbai secured by first charge on the fixed assets to the Company and
repayable in 36 monthly instalments after a moratorium of 6 months from the date of disbursement.

Note No 22.3: From IndusInd Bank, Mumbai, secured by first charge on the fixed assets to the Company and repayable
in 180 monthly instalments.

Note No 22.4: From Vivriti Capital Ltd, Mumbai, secured by first charge on the immovable property of the Director
of the company and personal guarantee of one of the Director and repayable in 54 monthly instalments after a
moratorium of 6 months from the date of disbursement.

The Company is unable to obtain the details of plan assets from LIC and hence the related disclosures
are not given.

b) Leave encashment:

The Company has a policy on compensated absences which is applicable to its executives jointed upto a
specified period and all employees. The expected cost of accumulating compensated absences is determined
by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected
unit credit method on the additional amount expected to be paid as a result of the unused entitlement that
has accumulated at the Balance Sheet date.

51. Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and
consequential adjustment, if any.

52. In the opinion of the Board, Current Assets, Loans and Advances have value in the ordinary course of business at
least equal to the amount at which they are stated.

53. Capital Management
i) Risk Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other
equity reserves attributable to the equity holders. The primary objective of the Company capital management is
to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. The Company monitor capital using a gearing ratio and is
measured by debt divided by total Equity. The Company’s Debt is defined as long-term and short-term
borrowings including current maturities of long term borrowings and total equity (as shown in balance sheet)
includes issued capital and all other reserves.

i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which
fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the company has
classified its financial instruments into the three levels prescribed under the accounting standard. An explanation
of each level follows underneath the table.

54. Fair Value Measurement (Contd..)

The fair values of current debtors, cash & bank balances,loan to related party, security deposit to goverment
deparment, current creditors and current borrowings and other financial liability are assumed to approximate
their carrying amounts due to the short-term maturities of these assets and liabilities.

ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

* the use of quoted market prices or dealer quotes for similar instruments

All of the resulting fair value estimates are included in level 3 except for unlisted equity securities, contingent
consideration and indemnification asset, where the fair values have been determined based on present values
and the discount rates used were adjusted for counterparty or own credit risk.

iii) Valuation processes

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are
considered to be the same as their fair values, due to their short-term nature.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

55. FINANCIAL RISK MANAGEMENT

The Company’s activities expose it to market risk , credit risk, liquidity risk and price risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the
impact thereof in the financial statements.

55. FINANCIAL RISK MANAGEMENT (Contd..)

I Market risk

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. In order to optimize the Company's position with regard
to interest income and interest expenses and to manage the interest rate risk, treasury performs a
comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and
floating rate financial instruments in its total portfolio.

c) Price Risk

The company is exposed to price risk in basic ingrediants of Company's raw material and is procuring
finished components and bought out materials from vendors directly. The Company monitors its price risk
and factors the price increase in pricing of the products.

II Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. Credit risk encompasses the direct risk of default, risk of deterioration of
creditworthiness as well as concentration risks. The Company is exposed to credit risk from its operating activities
(primarily trade receivables).

Credit Risk Management

The company's credit risk mainly from trade receivables as these are typically unsecured. This credit risk has
always been managed through credit approvals, establishing credit limits and continuous monitoring the
creditworthiness of customers to whom credit is extended in the normal course of business. The Company
estimates the expected credit loss based on past data, available information on public domain and experience.
Expected credit losses of financial assets receivable are estimated based on historical data of the Company. The
company has provisioning policy for expected credit losses.

The maximum exposure to credit risk as at 31^st March 2025 and 31^st March 2024 is the carrying value of such trade
receivables as shown in note 13 of the financial statements.

55. FINANCIAL RISK MANAGEMENT (Contd..)

III Liquidity Risk

Liquidity risk represents the inability of the Company to meet its financial obligations within stipulated time. To
mitigate this risk, the Company maintains sufficient liquidity by way of working capital limits from banks

The table below provides details regarding the remaining contractual maturities of financial liabilities at the
reporting date based on contractual undiscounted payments:

H in Lacs

56. The Board of Directors at their meeting held on 21^st May, 2025 proposed final dividend of Re. 0.3 per share i.e
15% on Equity Share of H 2/- each, subject to the approval of the members at the ensuring Annual General meeting..
Dividends paid during the year ended March 31^st, 2024 include an amount of H 0.30 per equity share towards final
dividend for the year ended March 31^st, 2024.

57. The following are applicable analytical ratios for the year ended March 31^st, 2025 and
March 31^st, 2024: (Contd..)

Note:

1. Increase in debt is due to increase in borrowings during the current year

2. Increase due to rolling of Working Capital

58. Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at
least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility
(CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art
and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief
and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were
primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of
the Companies Act, 2013:

59. Benami Property held

No proceeding has been initiated or pending against the group for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

60. Relationship with Struck off Companies as on March 31^st, 2025

The group has no transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560
of the Companies Act, 1956.

61. Registration of charges or satisfaction with Registrar of Companies

The Company has no charges or satisfaction yet to be registered with Registrar of Companies beyond the
statutory period.

62. The Previous year figures have been regrouped/reclassified, wherever necesssary to confirm to the current
presentation as per the schedule III of Companies Act, 2013.

63. During the year, an accidental fire occurred at Company's their third party warehouse at Manesar and the net
losses after considering the claim settled by the insurance company have been classified as an exceptional item in
the current Year.

64. The expenses on issue of securities, which qualify as equity instruments has been netted off against the securities
premium amount.

As per our report of even date attached For and on behalf of the Board

For KANU DOSHI ASSOCIATES LLP REMSONS INDUSTRIES LIMITED

Chartered Accountants
FRN : 104746W / W100096

Krishna Kejriwal Amit Srivastava

Chairman & Managing Director Chief Executive Officer

DIN : 00513788

Kunal Vakharia Debendra Panda Rohit Darji

Partner Chief Financial Officer Company Secretary

Membership No. 148916v

Place : Mumbai Place : Mumbai

Dated : 21^st May, 2025 Dated : 21^st May, 2025