13. Provisions and contingent liabilities:

(a) Provisions: Provisions are recognized when there is a present obligation as a result of a past event, 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.

Current provisions are measured at the best estimate of the expenditure required to settle the present
obligation at the Balance Sheet date and are not discounted to its present value.

(b) Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising
from past events, the existence of which will be confirmed by the occurrence of 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 probable that an outflow of resources will be required to settle
of reliable estimate of the amount cannot be made.

14. Cash and cash equivalents: In the cash flow statement, cash and cash equivalents include cash, demand
deposits with banks, other short term highly liquid investments with original maturities of three months or
less.

15. Segment Reporting under Ind AS-108:

The Company is engaged in a single segment (i.e. the business of “automotive components” from where it is
earning its revenue and incurring expenses. The operating results are regularly reviewed and performance
is assessed by its Chief Operating Decision Maker (CODM).All the company resources are dedicated to this
single segment and all the discrete financial information is available for this segment. The geographical
information in respect of customers

Is given in Note 38, Notes to accounts and Significant accounting policies.

16. IND AS-23 BORROWING COST: Ind AS 23, ‘Borrowing Costs’ The amendments clarify that if a specific
borrowing remains outstanding after the related qualifying asset is ready for its intended use or sale, it
becomes part of general borrowings. As the Company does not have any borrowings, there is no impact on
account of this amendment.

17. UNCERTAINLY OVER INCOME TAX TREATMENTS TO IND AS 12 INCOME TAXES.

Appendix C, Uncertainty over Income Tax Treatments, to Ind AS 12, ‘Income Taxes’ The appendix explains
how to recognize and measure deferred and current income tax assets and liabilities where there is
uncertainty over a tax treatment. In particular, it discusses:

- How to determine the appropriate unit of account, and that each uncertain tax treatment should
be considered separately or together as a group, depending on which approach better predicts the
resolution of the uncertainty;

- That the entity should assume a tax authority will examine the uncertain tax treatments and have full
knowledge of all related information, i.e., that detection risk should be ignored;

- That the entity should reflect the effect of the uncertainty in its income tax accounting when it is not
probable that the tax authorities will accept the treatment;

That the impact of the uncertainty should be measured using either the most likely amount or the
expected value method, depending on which method better predicts the resolution of the uncertainty;
and that the judgments and estimates made must be reassessed whenever circumstances have changed
or there is new information that affects the judgments.

- The application of this guidance is not expected to have an impact on the separate financial statements.

18. CURRENT VS NON-CURRET CLASSIFICATION:

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
An asset as current when it is:

- Expected to be realized or intended to sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realized within twelve months after the reporting period,

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period. All other assets are classified as non-current

A liability is current when:

- It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within twelve months after the reporting period,

There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as noncurrent assets/noncurrent liabilities.

19. Ind AS 116 - Leases

The Company elects not to apply IND AS 116, as it has got short term leases (Recognition Exemption)

20. Functional and presentation currency:

These financial statements are presented in Indian Rupees (INR), which is the company’s functional currency.
All financial information is presented in INR rounded to the nearest Lakhs except share and per share data,
unless otherwise stated.

Exchange differences are recognized in the Statement of Profit and Loss.

21. Capital management

The Company’s objective for managing capital is to ensure as under:

i) To ensure the company’s ability to continue as a going concern

ii) Maintaining a strong credit rating and debt equity ratio in order to support business and maximize the
share holders’ value.

iii) Maintain an optimal capital structure.

iv) Compliance of financial covenants under the borrowing facilities.

For the purpose of capital management, capital includes issued equity capital, and all other equity reserves
attributable to the equity holders of the Company

The Company manages its capital structure keeping in view of:

i) Compliance of financial covenants under the borrowing facilities.

ii) Changes in economic conditions

In order to achieve this overall objective of capital management, amongst other things, the Company
aims to ensure that it meets financial covenants attached to the borrowing’s facilities defining capital
structure requirements, where breach in meeting the financial covenants may permit the lender to
call the borrowings.

There has been no breach in the financial covenants of any borrowing facility in the current period.
There is no change in the objectives, policies or processes for managing capital over previous year. To
maintain the capital structure, the Company may vary the dividend payment to shareholders. (Refer
Note 41 Notes on Significant Accounting Policies)

22. Financial risk management

The Company’s principal financial liabilities comprise of loans and borrowings, trade and other payables.
The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s
principal financial assets include loans, trade and other receivables, and cash and cash equivalents that it
derives directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk.
The Company’s senior management oversees the management of these risks under appropriate policies and
procedures.

i. 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 market prices. Market risk comprises three types of risk interest rate risk,
currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments
affected by market risk include loans and borrowings, deposits.

a. Foreign exchange risk

The Company is subject to the risk that changes in foreign currency values impact the Company’s
export revenues and imports of raw material and property, plant and equipment. The net
unhedged exposure to the Company on holding financial assets (Trade Receivables and capital
advances) and liabilities (trade payables and capital creditors) other than in their functional
currency amounted to Rs.16.39 Crores.

The Company is exposed to foreign exchange risk arising from various currency exposures,
primarily with respect to US Dollar and Euro and Yen. The Company manages currency exposures
within prescribed limits.

Foreign exchange transactions are covered with strict limits placed on the amount of uncovered
exposure, if any, at any point in time. The aim of the Company’s approach to management of
currency risk is to leave the company with no material residual risk.

b. 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.

The Company is not exposed to any significant /material interest rate risk.

ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer

Leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities including deposits with banks, financial institutions,
foreign exchange transactions and other financial instruments.

Credit risk is managed by company’s established policy, procedures and control relating to customer
credit risk management. Credit risk has always been managed by the Company through credit approvals,
establishing credit limits and continuously monitoring the credit worthiness of customers to which the
Company grants credit terms in the normal course of business.

iii. Liquidity risk

Liquidity risk is the risk that the Company, will face in meeting its obligations associated with its
financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have
sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this,
management considers both normal and stressed conditions.

The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the
year ended 31-03-2025 and 31-03-2024.

Cash Flow from operating activities provides the funds to service the financial liabilities on a day to
day basis.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an ongoing
basis to meet its operational needs. Any short-term surplus cash generated, over and above the amount
required for working capital management and other operational requirements is retained as cash and
cash equivalent (to the extent required) and any excess is invested in interest bearing term deposits
to optimize the cash return on investments while ensuring sufficient liquidity to meets is liabilities.

iv. Fair value hierarchy

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 categorizing 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.

Fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31,
2025. The Company uses Level 2 for determining and or disclosing the fair value of financial instrument.

23. TAXES AND INCOME

a) Current tax: Provision for Income Tax is determined in accordance with the provisions of Income Tax
Act, 1961.

b) Taxable temporary differences will always lead to Deferred Tax Liability.

c) The timing deference on account of depreciation charged on the assets as per the companies act and
as per the Income Tax Act has been provided. The net Deferred Tax Asset considered for the current
year was (Rs 16.67 lakhs). Previous year we have recognised the net deferred tax Asset of Rs. Lakhs

24. Contingent Liabilities not provided for

Disputed amount of Rs.22.47 lakhs towards A.P tax on entry of goods for the assessment year 2002-03 is
pending which we have already paid an amount of Rs. 3.21 lakhs the case did not come for any hearing
further.

Disputed amount of Rs.48.85 lakhs towards Entry Tax for the periods 2011-12 to 2016-17 is pending with The
Telangana VAT Appellate Tribunal against which we have already paid an amount of Rs.24.42 lakhs the case
did not come for any hearing further.

33. The obligation under EPCG concessional duty scheme on account Capital Equipment’s imports is Nil.

34. The company had not accepted any deposits from public nor solicited any as per Companies Act Deposit
rules 2013. The company had taken security deposits from our dealers of our products and paying interest
at @9%. The deposits are repayable at the closure of the dealership only.

35. Figures for the previous year has been regrouped/reclassified wherever necessary to be conformity with the
current year format of IND AS SCHEDULE - III to the Companies Act.

This is the form of Balance Sheet referred to in our Report on Even Date
In terms of our report attached For and on behalf of the Board of Directors

Sd/- Sd/- Sd/-

MVN MURTHY SARIPALLI KISHORE SARIPALLI KARUNAKAR

CHARTERED ACCOUNTANT WHOLE TIME DIRECTOR CHAIRMAN CUM MANAGING DIRECTOR

(MEMBERSHIP NO: 201445) (DIN:01665768) (DIN: 01665760)

Sd/- Sd/-

PLACE: HYDERABAD B. VENKATESHAM DINKER MISHRA

DATE: 29TH MAY 2025 CHIEF FINANCIAL OFFICER COMPANY SECRETARY

(MEMBERSHIP NO: ACS48511)