p) Provisions:

Provisions are recognized when there is a present
legal or constructive obligation that can be estimated
reliably, as a result of a past event, when it is probable
that an outflow of resources embodying economic
benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the
obligation. Provisions are not recognized for future
operating losses.

Any reimbursement that the Company can be virtually
certain to collect from a third party with respect to
the obligation is recognized as a separate asset.
However, this asset may not exceed the amount of the
related provisions.

Provisions are reviewed at each reporting date and
adjusted to reflect the current best estimate. If it is no
longer probable that an outflow of economic resources
will be required to settle the obligation, the provisions
are reversed. Where the effect of the time of money
is material, provisions are discounted using a current
pre-tax rate that reflects, where appropriate, the risks
specific to the liability. When discounting is used, the
increase in the provisions due to the passage of time is
recognized as a finance cost.

q) Contingencies:

Where it is not probable that an inflow or an outflow
of economic resources will be required, or the amount
cannot be estimated reliably, the asset or the obligation
is not recognized in the Balance Sheet and is disclosed
as a contingent asset or contingent liability, unless the
probability of inflow or outflow of economic benefits is
remote. Possible outcomes on obligations/rights, whose
existence will only be confirmed by the occurrence or
non-occurrence of one or more future events, are also
disclosed as contingent assets or contingent liabilities
unless the probability of inflow or outflow of economic
benefits is remote.

r) Taxes on Income:

Tax expense comprises of current and deferred tax.
Current income tax is measured at the amount expected
to be paid to the tax authorities in accordance with the
Income Tax Act, 1961. Current tax includes taxes to be
paid on the profit earned during the year and for the
prior periods.

Deferred income taxes are provided based on the
balance sheet approach considering the temporary

differences between the tax bases of assets and
liabilities and their carrying amounts for financial
reporting purposes at the reporting date

Deferred tax is measured based on the tax rates and
the tax laws enacted or substantively enacted at the
balance sheet date. Deferred tax assets are recognized
only to the extent that there is reasonable certainty
that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
In situations where the company has unabsorbed
depreciation or carried forward tax losses, all deferred
tax assets are recognized only if it is probable that they
can be utilized against future taxable profits.

The carrying amount of deferred tax assets are reviewed
at each balance sheet date. The company can write-off
the carrying amount of a deferred tax asset to the
extent that it is no longer probable that sufficient future
taxable income will be available against which deferred
tax asset can be realized. Any such write-off is reversed
to the extent that it becomes reasonably certain that
sufficient future taxable income will be available.

s) Prior period items:

In case prior period adjustments are material in nature,
the Company prepares the restated financial statement
as required under Ind AS 8 - "Accounting Policies,
Changes in Accounting Estimates and Errors". In case
of immaterial items pertaining to prior periods, they will
be shown under respective items in the Statement of
Profit and Loss.

t) Cash and cash equivalents:

Cash and cash equivalents includes cash on hand and at
bank, deposits held at call with banks, other short-term
highly liquid investment with original maturities of three
months or less that are readily convertible to a known
amount of cash as are subject to an insignificant risk of
changes in value and are held for meeting short-term
cash commitments.

For the Statement of Cash Flows, cash and cash
equivalents consists of short-term deposits, as defined
above, net of outstanding bank overdraft (if any) as they
being considered as integral part of the Company's cash
management.

u) 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:

A. Initial recognition and measurement:

Financial assets are recognized when the Company
becomes a party to the contractual provisions of
the instrument. Financial assets are recognized
initially at fair value plus, in the case of financial
assets not recorded at fair value through profit or
loss, transaction costs that are attributable to the
acquisition of the financial asset. Transaction costs
of financial assets carried at fair value through
profit or loss are expensed in statement of profit
or loss. Purchases or sales of financial assets that
require delivery of assets within a time frame
established by regulation or convention in the
market place (regular way trades) are recognized
on the trade date, i.e., the date that the Company
commits to purchase or sell the asset.

B. Subsequent measurement:

For subsequent measurement, financial assets are
classified into following categories:

a. Debt instruments at amortized cost

b. Debt instruments at fair value through
profit and loss

c. Equity instruments at fair value through
profit and loss

a. Debt Instruments at amortized cost:

A 'debt instrument' is measured at the
amortized cost if both the following
conditions are met:

i. The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

ii. Contractual terms of the asset give rise
on specified dates to cash flows that
are solely payments of principal and
interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial
assets are subsequently measured at
amortized cost using the effective interest
rate (EIR) method. Amortized cost is
calculated by taking into account any discount
or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR

amortization is included in finance income
in the profit or loss. The losses arising from
impairment are recognized in the Statement
of Profit and Loss.

b. Debt instrument at fair value through
profit and loss (FVTPL):

FVTPL is a residual category for debt
instruments. Any debt instrument, which
does not meet the criteria for categorization
as amortized cost or as FVTOCI, is classified
as at FVTPL. In addition, the Company may
elect to designate a debt instrument, which
otherwise meets amortized cost or FVTOCI
criteria, as at FVTPL. However, such election is
allowed only if doing so reduces or eliminates
a measurement or recognition inconsistency
(referred to as 'accounting mismatch').

Debt instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the Statement of
Profit and Loss.

c. Equity Instruments at fair value through
profit and loss (FVTPL):

Equity instruments/Mutual funds in the scope
of Ind AS 109 are measured at fair value.
The classification is made on initial recognition
and is irrevocable. Subsequent changes in
the fair values at each reporting date are
recognized in the Statement of Profit and Loss.

C. Derecognition:

A financial asset or where applicable, a part of a

financial asset is primarily derecognized when:

a. The rights to receive cash flows from the asset
have expired, or

b. The company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay
to a third party under a 'pass-through'
arrangement; and either (a) the Company
has transferred substantially all the risks and
rewards of the asset, or (b) the Company has
neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.

When the Company has transferred its rights
to receive cash flows from an asset or has

entered into a pass-through arrangement,
it evaluates if and to what extent it has
retained the risks and rewards of ownership.
When it has neither transferred nor retained
substantially all of the risks and rewards
of the asset, nor transferred control of the
asset, the Company continues to recognize
the transferred asset to the extent of the
Company's continuing involvement.

D. Impairment of financial assets:

In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement
and recognition of impairment loss on the debt
instruments, that are measured at amortized
cost e.g., loans, debt securities, deposits, trade
receivables and bank balance.

Expected credit loss is the difference between all
contractual cash flows that are due to the company
in accordance with the contract and all the cash
flows that the entity expects to receive.

The management uses a provision matrix to
determine the impairment loss on the portfolio
of trade and other receivables. Provision matrix
is based on its historically observed expected
credit loss rates over the expected life of the trade
receivables and is adjusted for forward looking
estimates.

Expected credit loss allowance or reversal
recognized during the period is recognized as
income or expense, as the case may be, in the
Statement of Profit and Loss. In case of Balance
Sheet it is shown as reduction from the specific
financial asset.

Financial liabilities:

A. Initial recognition and measurement:

At initial recognition, all financial liabilities
are recognized at fair value and in the case
of loans, borrowings and payables, net of
directly attributable transaction costs.

B. Subsequent measurement:

a. Financial liabilities at fair value
through profit or loss:

Financial liabilities at fair value through
profit or loss include financial liabilities
held for trading and financial liabilities
designated upon initial recognition
as at fair value through profit or loss.

Gain or losses on liabilities held for
trading are recognized in the Statement
of Profit and Loss.

The company doesn't designate any
financial liability at fair value through
profit or loss.

b. Financial liabilities at amortized
cost:

Amortized cost, in case of financial
liabilities with maturity more than
one year, is calculated by discounting
the future cash flows with effective
interest rate. The effective interest rate
amortization is included as finance costs
in the Statement of Profit and Loss.

Financial liability with maturity of less than
one year is shown at transaction value.

C. Derecognition:

A financial liability is de-recognized when the
obligation under the liability is discharged or
cancelled or expires. 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 recognized in Statement
of Profit and Loss as other income or
finance costs.

v) Warranty:

The Company periodically assesses and provides for
the estimated liability on warranty given on sale of its
products based on past experience of claims.

w) Segment reporting:

The Company has only one reportable business
segment, which is manufacturing and trading of
agriculture machinery and operates in a single business
segment. Accordingly, the amounts appearing in the
standalone financial statements relate to the company's
single business segment.

x) Exceptional items:

Significant gains/losses or expenses incurred arising
from external events that is not expected to recur are
disclosed as 'Exceptional Item'.

y) Recent Pronouncements:

Ministry of Corporate affairs ("MCA") notifes new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. During the year ended
March 31,2025, MCA has notified Ind AS117 Insurance
Contracts and amendments to Ind As 116 - Leases,
relating to sale and lease back transactions applicable
from April 1, 2024. The Company has assessed that
there is no significant impact on its financial statements

35. EMPLOYEE STOCK OPTION PLAN

VST Tillers Tractors Limited - Restricted Stock Units Plan 2024

On January 22, 2024, pursuant to the approval by the shareholders through postal ballot, the Board was authorized to
introduce, offer, issue and allot share based incentives to the eligible employees of the Company under the "VST Tillers
Tractors Limited - Restricted Stock Units Plan 2024" ("the RSU plan"). The maximum number of shares under the RSU plan
shall not exceed 50,000 equity shares. These instruments will generally vest equally over a period of 4 years starting from
February 26, 2025 for Grant 1 and February 26, 2026 for Grant 2. The options shall be exercisable within the period as
approved by the Nomination and Remuneration Committee (NRC). The exercise price of the equity-settled RSUs will be equal
to the par value of the shares.

The fair value of the options is estimated using the Black-Scholes Model. The inputs to the model include the share price
at date of grant, exercise price, expected volatility, expected dividends, expected term and the risk-free rate of interest.
Expected volatility during the expected term of the options is based on historical volatility of the observed market prices of the
Company's publicly traded equity shares during a period equivalent to the expected term of the options. Expected volatility of
the comparative company have been modelled based on historical movements in the market prices of their publicly traded
equity shares during a period equivalent to the expected term of the options.

37. FAIR VALUE OF FINANCIAL INSTRUMENTS

The management assessed that cash and cash equivalents, other bank balances, trade receivables, trade payables, and
other current financial assets and financial liabilities approximates to their carrying amount largely due to the short-term
maturities of these instruments.

The fair value of the financial assets and liabilities is reported at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions
were used to estimate the fair values:

a. The fair value of investment in quoted instruments is measured at quoted price at the reporting date. The fair value of
unquoted instruments is valued using inputs based on information about market participants assumptions and other
data that are available.

b. Fair value of Interest free Security deposits are calculated by discounting future cash flows using rates currently available
for debt on similar terms credit risk and remaining maturities.

Description of significant observable inputs to valuation:

- Interest free Security Deposits (assets & liabilities):

Interest Rate factor has been considered at a rate of 6.06% p.a. by the company for discounting the amount receivable
at the time of maturity.

The carrying amount of all financial assets and liabilities (except for those instruments carried at fair value) appearing
in the financial statements is reasonable approximation of fair values.

40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES:

The Companies activities expose it to variety of Financial risks- interest rate risk, foreign currency risk, market risk, credit risk
and liquidity risk. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize
potential adverse effects on its financial performance and there has been no change to the Company's exposure to these
financial risks or the manner in which it manages and measures the risks

The following sections provide the details regarding the Company's exposure to the financial risks associated with financial
instruments held in the ordinary course of business and the objectives, policies and processes for the management of
these risks.

i. Market Risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks,
such as equity risk. Financial instruments affected by market risk include loans and advances, deposits, investments in
debt securities, mutual funds, and other equity funds.

a. Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of the Company and the Company's financial
instruments will fluctuate because of changes in market interest rates. The Company's exposure to interest rate
risk arises primarily from the investment in debt securities, investment in debt mutual funds and cash and cash
equivalents and other bank balances.

The Company's policy is to manage its interest rate risk by monitoring of changes in interest rates. Further, as there
are no borrowings, the Company's policy to manage its interest cost does not arise.

b. Foreign Currency Risk:

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange
rates. Currency risk arises when transactions are denominated in foreign currencies.

The Company has transactional currency exposures arising from Exports or imports that are denominated in a
currency other than the functional currency. The foreign currencies in which these transactions are denominated
are mainly in US Dollars ($) and Euros (€). The Company's trade receivable and trade payable balances at the end
of the reporting period have similar exposures.

ii. Credit risk:

Credit risk is the risk of loss that may arise on outstanding financial instruments when a counterparty defaults on
its obligations. The Company's exposure to credit risk arises primarily from trade and other receivables. For other
financial assets (including investment securities, cash and short-term deposit), the Company minimizes the credit risk by
dealing exclusively with high credit rating counterparties. The Company's objective is to seek continual revenue growth
while minimizing losses incurred due to increased credit risk exposure. The Company trades only with recognized and
creditworthy third parties. It is the Company's policy that all customers who wish to trade on credit terms are subject
to credit verification procedures.

In addition, Outstanding customer receivables are regularly monitored and any credit to new customers are generally
covered by appropriate security in the form of deposits.

a. Exposure to credit risk:

At the end of the reporting period, the Company's maximum exposure to credit risk is represented by the carrying
amount of each class of financial assets recognized in the statement of financial position. No other financial assets
carry a significant exposure to credit risk.

b. Credit risk concentration profile:

At the end of the reporting period, there were no significant concentrations of credit risk. The maximum exposures
to credit risk in relation to each class of recognized financial assets is represented by the carrying amount of each
financial assets as indicated in the balance sheet.

c. Financial assets that are neither past due nor impaired:

Trade and other receivables that are neither past due nor impaired are creditworthy debtors with good payment
record with the Company. Cash and short-term deposits, investment securities that are neither past due nor
impaired are placed with or entered with reputable banks, financial institutions or companies with high credit
ratings and no history of default.

d. Financial assets that are either past due or impaired:

Trade receivables that are past due or impaired at the end of the reporting period, for which lifetime expected
credit loss has been provided by the company according to its policy. These are shown in the balance sheet at
carrying value less impairment/expected credit loss (information provided in note no. 13).

iii. Liquidity risk:

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled
by delivering cash or another financial asset.

42. CAPITAL MANAGEMENT:

Capital includes equity attributable to the equity holders of the Company. The primary objective of the capital management
is to ensure that it maintain an efficient capital structure and healthy capital ratios in order to support its business and
maximize shareholder's value.

The Company manages its capital structure and make adjustments to it, in light of changes in economic conditions or
its business requirements. To maintain or adjust the capital structure, Company may adjust the dividend payment to
shareholders or return capital to shareholders or issue new shares.

Currently the Company does not have any borrowings and maintains the entire capital in form of equity share capital.

Note: The fair values of investment properties have been determined by independent valuers. The main inputs used are the
rental growth rates, terminal yields and discount rates based on comparable transactions and industry data. All resulting fair
value estimates for investment properties are included in level 3.

Depreciation and Useful Life: Depreciation method used by the entity for Investment Property is Straight line method.
Useful life of buildings is considered as 30-60 years.

45. MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED ACT)

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated August 26, 2008 which
recommends that the Micro and Small Enterprises should mention in their correspondence with their customers about the
Entrepreneurs Memorandum number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of
the amount payable to such enterprises as at March 31,2025 has been made in the Standalone financial statements based
on the information received and available with the Company. The Company has not received any claim for interest from any

46. LEASES
Company as Lessee:

The Company lease assets consist of leases for land, building and computers. The Company assesses whether a contract
contains a lease, at the inception of the contract. A contract is, or contains, a lease if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for a consideration.

b) Nature of Obligation

The Company gives warranties for its products, undertaking to repair or replace the items that fail to perform satisfactorily
during the warranty period. The provision made as at March 31,2025 represents the amount of expected cost of meeting
such obligations on account of rectification / replacement. The timing of outflow is expected to be within a period of
one year from the end of the year.

The Company generally offers 12 months warranties for tillers products except 135DI and 165DI tillers, 17HP-50HP
tractors are offered 24 months warranties. Management estimates the related provision for future warranty claims
based on historical warranty claim information as well as recent trends that might suggest that past cost information
may differ from future claims.

54. DISCLOSURE REQUIRED UNDER SCHEDULE III AS AMENDED, THAT ARE NOT COVERED ABOVE:

a) The Company has not traded or invested in crypto currency or virtual currency during the financial year.

b) No proceedings have been initiated or are pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

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

d) No scheme of arrangement has been approved by the competent authority in terms of section 230 to 237 of the
Companies Act, 2013, hence this is not applicable.

e) No registration and/or satisfaction of charges are pending to be filed with ROC.

f) There are no transactions which are not recorded in the books of account which have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

g) The Company does not have any relationship with struck off companies.

55. The Company is engaged only in the business of manufacturing and trading of agriculture machinery and accordingly
the business activity falls within a single business segment in terms of Ind AS 108 on Operating Segments.

56. The Board has recommended dividend of ' 20 per equity share having face value of ' 10 each for the financial year
2024-2025.

57. Corresponding previous year figures have been reclassified / regrouped wherever necessary.

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

For K.S. Rao & Co., V.S.T. Tillers Tractors Limited

Chartered Accountants

Firm Registration No.: 003109S V.T.Ravindra Rajen Padukone

DIN: 00396156 DIN: 00262729

Hitesh Kumar. P Managing Director Director

Partner

Membership No.: 233734 Antony Cherukara Nitin Agrawal Chinmaya Khatua

Chief Executive Officer Chief Financial Officer ACS - 21759

Company Secretary

Place: Bengaluru Place: Bengaluru

Date: May 13, 2025 Date: May 13, 2025