As at 31 March 2023 and 31 March 2022 the fair values of the investment property are ' 5.62 crores (Approx) and ' 5.62 crores(Approx) respectively. These values are based on ready recknor rates (Circle Rate).

The Company has no restrictions on the realisability of its investment property and no contractual obligations to purchase, construct or develop investment property or for repairs, maintenance and enhancements.

*Note : During the year, pursuant to the composite scheme of arrangement the company ie. Sundram Clayton Limited has issued 116 fully paid nonconvertible redeemable preference shares for every one equity shares of the company by way of bonus which will be redeemed in next financial year 202324, therefore, value of the said shares is considered as Nil.

b) Terms/rights attached to equity shares

The company has one class of shares referred to Equity Shares having par value of ' 2/- each. Each holder of equity share is entitled to one vote per share.

During the year ended 31st March,2023 the amount of dividend of ' 2/- per share each recognized as distribution to equity shareholders

In the event of liquidation of the company, the holders of equity shares will be entitled to receive any part of the remaining assets of the company. The distribution will be in proportion to the number of equity shares held by the shareholders.

c) Shares held by holding company or ultimate holding company or subsidiaries or associates of the holding company or the holding company

There is no holding or ultimate holding company of the company

d) Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

Proposed dividends on Equity shares:

{Proposed dividend for the year ended on 31 March 2023: ' 2/-per share (31 March 2022: ' 2/- per share)

Proposed dividend on equity shares is subject to approval at the annual general meeting and is not recognized as a liability as at 31 March 2023

26 Capital management

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long-term and shortterm goals of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and long-term/short-term borrowings.

Total equity of the Company as on 31st March, 2023'17,913.1 lakhs (as on 31st March, 2022'16,054.91.lakhs)

27 Disclosures on financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized, in respect of each class of financial asset, financial liability and investment instruments are disclosed in note 2 to the financial statements.

Prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of quoted equity shares, quoted corporate debt instruments and mutual fund investments.

Valuation techniques with observable inputs (Level 2): This level of hierarchy 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). This level of hierarchy include Company’s over-the counter (OTC) derivative contracts.

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy 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 short-term financial assets and liabilities are stated at amortized cost which is approximately equal to their fair value.

Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily indicative of all the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of the financial instruments subsequent to the respective reporting dates may be different from the amounts reported at each year end.

b) Financial risk management

In the course of its business, the Company is exposed primarily to fluctuations of equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments.

The Company has a risk management policy which covers the risks associated with the financial assets and liabilities such as credit risks. The risk management policy is approved by the board of directors.

i) Market risk

Equity Price risk

Equity Price Risk is related to the change in market reference price of the investments in equity securities.

The fair value of some of the Company’s investments measured at fair value through other comprehensive income exposes the Company to equity price risks. These investments are subject to changes in the market price of securities. The fair value of Company’s investment in quoted equity securities as at March 31,2023 and March 31,2022 was ' 198.23 lakhs and ' 168.84 lakhs respectively. A 10% change in equity price as at March 31,2023 and March 31,2022 would result in an impact of ' 19.82 lakhs and ' 16.88 lakhs- respectively.

(Note: The impact is indicated on equity before consequential tax impact, if any).

ii) Credit risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.

Financial instruments that are subject to concentrations of credit risk, principally consist of investments classified as fair value through profit or loss, trade receivables, loans and advances . None of the financial instruments of the Company result in material concentrations of exposure to credit risks.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was ' 15,341.19 lakhs- as at March 31,2023 and ' 14,954.81 lakhs as at March 31,2022, being the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables, finance receivables, margin money and other financial assets excluding equity investments.

None of the Company’s cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables and other receivables, and other loans or receivables that are neither impaired nor past due, there were no indications as at March 31,2023, that defaults in payment obligations will occur.

iii) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company invests its surplus funds in bank fixed deposit and bonds, which carry no/low mark to market risks.

The table below provides details regarding the contractual maturities of financial liabilities, including estimated interest payments as at March 31,2023

29 Segment Reporting

The company is dealing in one class of goods i.e. automobile parts & accessories and located in one country i.e. India. Since the company operated in a single business/ geographical segment, information is not required by Ind AS -108 Operating Segments.

30 In accordance with Ind AS -36 ‘ Impairment of Assets’ , the company has assessed as on the Balance Sheet date, whether there are any indications with respect to impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of the recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of accounts.

Defined Benefit Plan and other long term benefits

Gratuity funds

The Employees gratuity fund scheme is managed by Life Insurance Corporation of India. The present value of obligation is determined based on Actuarial valuation by certified actuary. The valuation has been carried out using the Project Unit Credit Method as per Ind AS 19.

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary overtime. Thus, the Company is exposed to various risks which are as follows:

Interest Rate 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 benefit and will thus result in an increase in the value of the liability.

Liquidity risk:

This is the risk that the Company is not able to meet the short-term payouts. This may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation risk:

The present value of defined benefit plan liability 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.

Demographic risk:

The Company has used certain mortality and attrition assumptions in valuation of the liability. The company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Regulatory risk:

Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the maximum limit on gratuity of ' 20,00,000).

The fair value of the above investments is taken as per the account statements of the insurance companies.

The Company expects to make a contribution of ' 86.85 lakhs (as at 31.03.22: ' 102.62 lakhs-) to the defined benefit plans during the next financial year.

Sensitivity analysis

Significant actuarial assumption for the determination of defined obligation are discount rate, expected salary growth rate, attrition rate and mortality rate. The sensitivity analysis below have been determined based on reasonably possible changes in respective assumption occurring at the end of reporting period, while holding all other assumptions constant.

33 The Company has adopted Ind AS 116 , “leases “ using the ‘Modified Retrospective Approach’. On the lease contracts existing as on the date of initial application i.e. 1 st April,2019. The adoption of the standard did not have any material impact on these financial statements.

Trade receivables are non-interest bearing and are generally on terms of 45 to 60 days. ' 17.17 lakhs (previous year ' 49.27 lakhs) was recognised as provision for expected credit losses on trade receivables.

Trade receivables and unbilled revenue are presented net of impairment in the Balance sheet.

The Company classifies the right to consideration in exchange for deliverables as either a receivable or as unbilled revenue. A receivables is right to consideration that is unconditional upon passage of time.

35 Performance obligation and remaining performance obligation

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. As on 31st March, 2023, there were no remaining performance obligation as the same is satisfied upon delivery of goods/services.

37 In case of Inventories that are slow moving, damaged, unsalable or obsolete, the net realizable value is considered on estimated basis and as at the year end value of such Inventory has been written down to the extent of ' 124.86 lakhs.( PY ' 130.14 lakhs)

38 Earning Per Share : Earning per share has been computed as under :

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent 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 parent (after adjusting for interest on the convertible preference shares) 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.

39 Additional Regulatory Information

a The title deeds of all the immovable properties(other than properties where company is the lesee and the lease agreement are

duly executed in favour of the company) disclosed in the financial statements including in property, plant and equipment and

investment property are held in the name of the Company.

b The Company has not revalued its property, plant and equipment (including Right to use assets) or intangible assets or both during the year.

c The Company has no Capital work-in-progress or intangible asset under development, so requirement of ageing schedule is not applicable

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

e The Company has not been declared as a wilful defaulter by any bank or financial institution or any other lender. f The Company does not have any transaction with struck off companies.

g 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.

h The Company has not granted loans or advanes in the nature of loans to promotors, directors, KMPs and the related parties, either severally or jointly with any other person, that are :

a. repayable on demand : or

b. without specifying any terms or period of repayment.

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

j 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 :

i. 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

ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

k The Company has not received any funds 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 :

i. 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

ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

l The Company does not have any transaction which is not recorded in the books of accounts but 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 Acy, 1961)

m The Company has not traded or invested in Crypto currency or Virtual currency during the year.

40 Previous year’s figures have been regrouped and recast to make them comparable with current year figures.