N. Provisions
General

Provisions are recognized when the Company has
a present obligation (legal or constructive) as a
result of past event, 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. The expense relating to a provision is
presented in the statement of profit and loss net of
any reimbursement.

I f 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 recognized as a finance cost.

Onerous contracts

I f the Company has a contract that is onerous, the
present obligation under the contract is recognized
and measured as a provision. However, before
a separate provision for an onerous contract
is established, the Company recognizes any
impairment loss that has occurred on assets
dedicated to that contract.

An onerous contract is a contract under which the
unavoidable costs (i.e., the costs that the Company
cannot avoid because it has the contract) of
meeting the obligations under the contract exceed
the economic benefits expected to be received
under it. The unavoidable costs under a contract
reflect the least net cost of exiting from the contract,
which is the lower of the cost of fulfilling it and any
compensation or penalties arising from failure to
fulfil it. The cost of fulfilling a contract comprises the
costs that relate directly to the contract (i.e., both
incremental costs and an allocation of costs directly
related to contract activities).

Warranty provisions

The Company provides warranties for general
repairs of defects that existed at the time of sale,
as required by law. Provisions related to these
assurance-type warranties are recognized when
the product is sold, or the service is provided to the
customer. Initial recognition is based on historical
experience. The initial estimate of warranty-related
costs is revised annually.

O. Taxes

Current income tax

Tax expense comprises current tax expense and
deferred tax.

Current income tax assets and liabilities are
measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates
and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the
reporting date.

Current income tax relating to items recognized
outside profit or loss is recognized outside profit or
loss (either in OCI or in equity). Current tax items
are recognized in correlation to the underlying
transaction either in OCI or directly in equity.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable regulations are subject to interpretation
and considers whether it is probable that a taxation
authority will accept an uncertain tax treatment. The
Company shall reflect the effect of uncertainty for
each uncertain tax treatment by using either most
likely method or expected value method, depending
on which method predicts better resolution of the
treatment.

Deferred tax

Deferred tax is provided using the liability method
on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable
temporary differences except:

• When the deferred tax liability arises from the
initial recognition of goodwill or an asset or
liability in a transaction that is not a business
combination and, at the time of the transaction,
affects neither the accounting profit nor taxable
profit or loss and does not give rise to equal
taxable and deductible temporary differences.

• I n respect of taxable temporary differences
associated with investments in subsidiary and
associate, when the timing of the reversal of the
temporary differences can be controlled and it
is probable that the temporary differences will
not reverse in the foreseeable future.

Deferred tax liabilities are recognized for all taxable
temporary differences, except when the deferred
tax liability arises from the initial recognition of
goodwill or an asset or liability in a transaction that
is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor
taxable profit or loss and does not give rise to equal
taxable and deductible temporary differences.

Deferred tax assets are recognized for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred
tax assets are recognized to the extent that it is
probable that taxable profit will be available against
which the deductible temporary differences, and
the carry forward of unused tax credits and unused
tax losses can be utilized, except

• when the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination
and, at the time of the transaction, affects
neither the accounting profit nor taxable profit
or loss and does not give rise to equal taxable
and deductible temporary differences.

• In respect of deductible temporary differences
associated with investments in subsidiary, and
associate, deferred tax assets are recognized
only to the extent that it is probable that the

temporary differences will reverse in the
foreseeable future and taxable profit will
be available against which the temporary
differences can be utilized.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
the deferred tax asset to be utilized. Unrecognized
deferred tax assets are re-assessed at each
reporting date and are recognized to the extent that
it has become probable that future taxable profits
will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at
the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled,
based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting
date.

Deferred tax relating to items recognized
outside statement of profit or loss is recognized
outside statement of profit or loss (either in other
comprehensive income or in equity). Deferred tax
items are recognized in correlation to the underlying
transaction either in OCI or directly in equity.

The Company offsets deferred tax assets and
deferred tax liabil ities if and only if it has a legally
enforceable right to set off current tax assets and
current tax liabilities and the deferred tax assets and
deferred tax liabilities relate to income taxes levied
by the same taxation authority on either the same.
taxable entity which intends either to settle current
tax liabilities and assets on a net basis, or to realise
the assets and settle the liabilities simultaneously, in
each future period in which significant amounts of
deferred tax liabilities or assets are expected to be
settled or recovered.

Goods and Services Tax (GST) / value added
taxes paid on acquisition of assets or on incurring
expenses. Expenses and assets are recognized
net of the amount of GST/ value added taxes paid,
except:

• When the tax incurred on a purchase of
assets or services is not recoverable from the
taxation authority, in which case, the tax paid
is recognized as part of the cost of acquisition
of the asset or as part of the expense item, as
applicable;

• When receivables and payables are stated
with the amount of tax included

The net amount of tax recoverable from, or payable
to, the taxation authority is included as part of other-
current/non-current assets/ liabilities in the balance
sheet.

P. Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of
the Company’s cash management.

Q. Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the
profit for the year attributable to the shareholders of
the Company by the weighted average number of
equity shares outstanding during the period.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the period attributable
to equity shareholders of the Company and the
weighted average number of shares outstanding
during the period are adjusted for the effects of all
dilutive potential equity shares.

R. Contingent liabilities

Contingent liability is:

a) a possible obligation arising from past events
and whose existence will be confirmed only
by the occurrence or non-occurrence of one
or more uncertain future events not wholly
within the control of the entity or

b) a present obligation that arises from past
events but is not recognized because;

• it is not probable that an outflow of
resources embodying economic benefits
will be required to settle the obligation, or

• t he amount of the obligation cannot be
measured with sufficient reliability.

The Company does not recognize a contingent
liability but discloses its existence and other
required disclosures in notes to the standalone
financial statements, unless the possibility of any
outflow in settlement is remote.

S. Contingent Assets

A contingent asset is a possible asset that arises
from past events and whose existence will
be confirmed only by- the occurrence or non¬
occurrence of one or more uncertain future events
not wholly within the control of the entity. The
Company does not recognize the contingent asset
in its standalone financial statements since this may
result in the recognition of income that may never
be realised. Where an inflow of economic benefits is
probable, the Company disclose a brief description
of the nature of contingent assets at the end of the
reporting period. However, when the realisation of
income is virtually certain, then the related asset is
not a contingent asset and the Company recognize
such assets.

Provisions, contingent liabilities and contingent
assets are reviewed at each reporting date.

T. Dividend

The Company recognizes a liability to make cash
dividend to equ ity h olders of the Company wh en
the distribution is authorized and the distribution
is no longer at the discretion of the Company. As
per the corporate laws in India, a distribution is
authorized when it is approved by the shareholders.
A corresponding amount is recognized directly in
equity.

U. Fair value measurement

Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement
is based on the presumption that the transaction
to sell the asset or transfer the liability takes place
either:

(a) In the principal market for the asset or liability,
or

(b) I n the absence of a principal market, in the
most advantageous market for the asset or
liability

The principal or the most advantageous market
must be accessible by the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financial asset
takes into account a market participant’s ability to
generate economic benefits by using the asset in
its highest and best use or by selling it to another
market participant that would use the asset in its
highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the standalone financial
statements are categorized within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair value
measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable

Level 3 — Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognized in the
standalone financial statements on a recurring basis,
the Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorization (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting period.

The Company’s management determines the
policies and procedures for both recurring fair
value measurement, such as unquoted financial
assets measured at fair value, and for non-recurring
measurement, such as assets held for distribution in
discontinued operations.

External valuers are involved for valuation of
significant assets and significant liabilities, if any.

At each reporting date, the management analyses
the movements in the values of assets and liabilities
which are required to be re-measured or re¬
assessed as per the Company’s accounting policies.
For this analysis, the management verifies the major
inputs applied in the latest valuation by agreeing
the information in the valuation computation to
contracts and other relevant documents, if any.

For the purpose of fair value disclosures, the
Company has determined classes of assets and
liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of the
fair value hierarchy as explained above.

V. Financial instruments

A financial instrument is a contract that gives rise to
a financial asset for one entity and a financial liability
or equity instrument for another entity.

Financial Assets

Initial recognition and measurement

Financial assets are classified, at initial recognition,
as subsequently measured at amortized cost, fair
value through other comprehensive income (OCI),
and fair value through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset’s
contractual cash flow characteristics and the
Company’s business model for managing them. With
the exception of trade receivables that do not contain
a significant financing component or for which the
Company has applied the practical expedient, The
Company initially measures a financial asset at its
fair value plus, in the case of a financial asset not
at fair value through profit or loss, transaction costs.
Trade receivables that do not contain a significant
financing component or for which the Company has
applied the practical expedient are measured at the
transaction price determined under Ind AS 115. Refer
to the accounting policies in section “Revenue from
contracts with customers”.

I n order for a financial asset to be classified and
measured at amortized cost or fair value through
OCI, it needs to give rise to cash flows that are
‘solely payments of principal and interest (SPPI)’ on
the principal amount outstanding. This assessment
is referred to as the SPPI test and is performed at
an instrument level. Financial assets with cash flows
that are not SPPI are classified and measured at
fair value through profit or loss, irrespective of the
business model.

The Company’s business model for managing
financial assets refers to how it manages its
financial assets in order to generate cash flows. The
business model determines whether cash flows
will result from collecting contractual cash flows,
selling the financial assets, or both. Financial assets
classified and measured at amortized cost are held

within a business model with the objective to hold
financial assets in order to collect contractual cash
flows while financial assets classified and measured
at fair value through OCI are held within a business
model with the objective of both holding to collect
contractual cash flows and selling.

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.

Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in four categories:

• Financial assets at amortized cost (debt
instruments)

• Financial assets at fair value through other
comprehensive income (FVTOCI) with
recycling of cumulative gains and losses (debt
instruments)

• Financial assets designated at fair value
through OCI with no recycling of cumulative
gains and losses upon derecognition (equity
instruments).

• Financial assets at fair value through profit or
loss.

Financial assets at amortized cost

A financial assets 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 and are subject to
impairment as per the accounting policy applicable
to ‘Impairment of financial assets. 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 accretion of EIR is
recorded as an income or expense in statement of

profit and loss. The losses arising from impairment
are recognized in the statement of profit and loss.
This category generally applies to trade and other
receivables.

Financial assets at FVTOCI (debt instruments)

A ‘financial asset’ is classified as at the FVTOCI if
both of the following criteria are met:

a) The Financial assets at fair value through
other comprehensive income (FVTOCI) with
recycling of cumulative gains and losses (debt
instruments).

b) The asset’s contractual cash flows represent
SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. For debt instruments,
at fair value through OCI, interest income, foreign
exchange revaluation and impairment losses or
reversals are recognized in the profit or loss and
computed in the same manner as for financial
assets measured at amortized cost. The remaining
fair value changes are recognized in OCI. Upon
derecognition, the cumulative fair value changes
recognized in OCI is reclassified from the equity to
profit or loss.

Financial assets at fair value through profit or
loss

Financial assets in this category are those that are
held for trading and have been either designated
by management upon initial recognition or are
mandatorily required to be measured at fair value
under Ind AS 109 i.e. they do not meet the criteria
for classification as measured at amortized cost or
FVOCI. Management only designates an instrument
at FVTPL upon initial recognition, if the designation
eliminates, or significantly reduces, the inconsistent
treatment that would otherwise arise from
measuring the assets or liabilities or recognising
gains or losses on them on a different basis. Such
designation is determined on an instrument-by¬
instrument basis.

Financial assets at fair value through profit or loss
are carried in the balance sheet at fair value with net
changes in fair value recognized in the statement of
profit and loss.

Interest earned on instruments designated at
FVTPL is accrued in interest income, using the EIR,
taking into account any discount/ premium and

qualifying transaction costs being an integral part of
instrument. Interest earned on assets mandatorily
required to be measured at FVTPL is recorded
using the contractual interest rate. Dividend income
on listed equity investments are recognized in the
statement of profit and loss as other income when
the right of payment has been established.

Equity instruments at fair value through OCI
(FVTOCI)

Upon initial recognition, the Company can elect
to classify irrevocably its equity investments as
equity instruments designated at fair value through
OCI when they meet the definition of equity under
Ind AS 32 Financial Instruments: Presentation
and are not held for trading. The classification is
determined on an instrument-by-instrument basis.
Equity instruments which are held for trading and
contingent consideration recognized by an acquirer
in a business combination to which Ind AS103
applies are classified as at FVTPL.

Gains and losses on these financial assets are
never recycled to profit or loss. Dividends are
recognized as other income in the statement of
profit and loss when the right of payment has been
established, except when the Company benefits
from such proceeds as a recovery of part of the cost
of the financial asset, in which case, such gains are
recorded in OCI. Equity instruments designated at
fair value through OCI are not subject to impairment
assessment.

De-recognition

A financial asset (or, where applicable, a part of
a financial asset) is primarily derecognized (i.e.
removed from the Company’s Balance Sheet) when:

(i) The contractual rights to receive cash flows
from the asset has expired, or

(ii) The Company has transferred its contractual
rights to receive cash flows from the financial
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. In that case, the Company also
recognizes an associated liability. The transferred
asset and the associated liability are measured on a
basis that reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured
at the lower of the original carrying amount of the
asset and the maximum amount of consideration
that the Company could be required to repay.

Financial Liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss.

All financial liabilities are recognized initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs.

The Company’s financial liabilities include trade
and other payables, lease liabilities, loans and
borrowings etc.

Subsequent measurement

For purposes of subsequent measurement, financial
liabilities are classified in two categories:

• Financial liabilities at amortized cost

• Financial liabilities at fair value through profit
and loss (FVTPL)

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.

Financial liabilities are classified as held for trading
if they are incurred for the purpose of repurchasing
in the near term. This category also includes

derivative financial instruments entered into by
the Company that are not designated as hedging
instruments in hedge relationships as defined by
Ind AS 109. Separated embedded derivatives are
also classified as held for trading unless they are
designated as effective hedging instruments.

Gains or losses on liabilities held for trading are
recognized in the profit or loss.

Financial liabilities designated upon initial
recognition at fair value through profit or loss are
designated as such at the initial date of recognition,
and only if the criteria in Ind AS 109 are satisfied.
For liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk
are recognized in OCI. These gains/ losses are
not subsequently transferred to P&L. However, the
Company may transfer the cumulative gain or loss
within equity. All other changes in fair value of such
liability are recognized in the statement of profit and
loss. The Company has not designated any financial
liability as at fair value through profit or loss.

Financial liabilities at Amortized cost

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortized cost using the EIR method. Gains and
losses are recognized in the profit or loss when the
liabilities are derecognized as well as through the
EIR amortization process.

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 as finance costs in the
statement of profit and loss.

De-recognition

A financial liability is derecognized when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms or the terms
of an existing liability are substantially modified,
such an exchange or modification is treated as
the de-recognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognized in the
statement of profit and loss.

Offsetting of financial instruments

Financial assets and liabilities are offset and the
net amount is reported in the balance sheet if there

is a currently enforceable legal right to offset the
recognized amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

Reclassification of financial assets

The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for
financial assets which are equity instruments and
financial liabilities. For financial assets which are
debt instruments, a reclassification is made only
if there is a change in the business model for
managing those assets. Changes to the business
model are expected to be infrequent. The Company
senior management determines change in the
business model as a result of external or internal
changes which are significant to the Company’s
operations. Such changes are evident to external
parties. A change in the business model occurs
when the Company either begins or ceases
to perform an activity that is significant to its
operations. If the Company reclassifies financial
assets, it applies the reclassification prospectively
from the reclassification date which is the first day
of the immediately next reporting period following
the change in business model. The Company does
not restate any previously recognized gains, losses
(including impairment gains or losses) or interest.

W. 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 following
financial assets and credit risk exposure:

Financial assets that are debt instruments, and are
initially measured at fair value with subsequent
measurement at amortized cost e.g., trade and other
receivables, security deposits, loan to employees,
etc.

The Company follows ‘simplified approach’ for
recognition of impairment loss allowance for trade
receivables.

The application of simplified approach does not
require the Company to track changes in credit risk.
Rather, it recognizes impairment loss allowance
based on lifetime ECLs at each reporting date, right
from its initial recognition.

ECL 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 (i.e., all cash shortfalls),
discounted at the original effective interest rate.

As a practical expedient, the Company uses a
provision matrix to determine impairment loss
allowance on portfolio of its trade receivables. The
provision matrix is based on its historically observed
default rates over the expected life of the trade
receivables and is adjusted for forward-looking
estimates. At every reporting date, the historically
observed default rates are updated and changes in
the forward-looking estimates are analysed.

ECL impairment loss allowance (or reversal)
recognized during the period is recognized as an
expense in the statement of profit and loss.

X. Business Combination and Goodwill

Business combinations are accounted for using
the acquisition method. The cost of an acquisition
is measured as the aggregate of the consideration
transferred measured at acquisition date fair value
and the amount of any non-controlling interests
in the acquiree. For each business combination,
the Company elects whether to measure the non¬
controlling interests in the acquiree at fair value
or at the proportionate share of the acquiree’s
identifiable net assets. In respect to the business
combination for acquisition of subsidiary, the
Company has opted to measure the non-controlling
interests in the acquiree at the proportionate share
of the acquiree’s identifiable net assets. Acquisition-
related costs are expensed in the periods in
which the costs are incurred, and the services are
received, with the exception of the costs of issuing
debt or equity securities that are recognized in
accordance with Ind AS 32 and Ind AS 109.

At the acquisition date, the identifiable assets
acquired, and the liabilities assumed are recognized
at their acquisition date fair values. For this purpose,
the liabilities assumed include contingent liabilities
representing present obligation and they are
measured at their acquisition fair values irrespective
of the fact that outflow of resources embodying
economic benefits is not probable. However, the
following assets and liabilities acquired in a business
combination are measured at the basis indicated as
mentioned hereinafter:

• Deferred tax assets or liabilities, and the
liabilities or assets related to employee benefit
arrangements are recognized and measured

in accordance with Ind AS 12 Income Tax and
Ind AS 19 Employee Benefits respectively.

• Potential tax effects of temporary differences
and carry forwards of an acquiree that exist at
the acquisition date or arise as a result of the
acquisition are accounted in accordance with
Ind AS 12.

• Liabilities or equity instruments related to share
based payment arrangements of the acquiree
or share - based payments arrangements
of the Group entered into to replace share-
based payment arrangements of the acquiree
are measured in accordance with Ind AS 102
Share-based Payments at the acquisition date.

• Assets (or disposal groups) that are classified
as held for sale in accordance with Ind AS
105 Non-current Assets Held for Sale and
Discontinued Operations are measured in
accordance with that Standard.

• Reacquired rights are measured at a value
determined on the basis of the remaining
contractual term of the related contract. Such
valuation does not consider potential renewal
of the reacquired right.

When the Company acquires a business, it
assesses the financial assets and liabilities assumed
for appropriate classification and designation in
accordance with the contractual terms, economic
circumstances and pertinent conditions as at the
acquisition date. This includes the separation of
embedded derivatives in host contracts by the
acquiree.

I f the business combination is achieved in stages,
any previously held equity interest is re-measured
at its acquisition date fair value and any resulting
gain or loss is recognized in profit or loss or OCI, as
appropriate.

Any contingent consideration to be transferred
by the acquirer is recognized at fair value at
the acquisition date. Contingent consideration
classified as an asset or liability that is a financial
instrument and within the scope of Ind AS 109
Financial Instruments, is measured at fair value with
changes in fair value recognized in profit or loss
in accordance with Ind AS 109. If the contingent
consideration is not within the scope of Ind AS 109,
it is measured in accordance with the appropriate
Ind AS and shall be recognized in profit or loss.

Contingent consideration that is classified as equity
is not re-measured at subsequent reporting dates
and subsequent its settlement is accounted for
within equity.

Goodwill is initially measured at cost, being the
excess of the aggregate of the consideration
transferred and the amount recognized for non¬
controlling interests, and any previous interest
held, over the net identifiable assets acquired
and liabilities assumed. If the fair value of the net
assets acquired is in excess of the aggregate
consideration transferred, the Company re¬
assesses whether it has correctly identified all of
the assets acquired and all of the liabilities assumed
and reviews the procedures used to measure
the amounts to be recognized at the acquisition
date. If the reassessment still results in an excess
of the fair value of net assets acquired over the
aggregate consideration transferred, then the gain
is recognized in OCI and accumulated in equity
as capital reserve. However, if there is no clear
evidence of bargain purchase, the entity recognizes
the gain directly in equity as capital reserve, without
routing the same through OCI.

After initial recognition, goodwill is measured at cost
less any accumulated impairment losses. For the
purpose of impairment testing, goodwill acquired
in a business combination is, from the acquisition
date, allocated to each of the Company’s cash¬
generating units that are expected to benefit from
the combination, irrespective of whether other
assets or liabilities of the acquiree are assigned to
those units.

A cash generating unit to which goodwill has been
allocated is tested for impairment annually, or more
frequently when there is an indication that the unit
may be impaired. If the recoverable amount of the
cash generating unit is less than its carrying amount,
the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro rata
based on the carrying amount of each asset in the
unit. Any impairment loss for goodwill is recognized
in profit or loss. An impairment loss recognized for
goodwill is not reversed in subsequent periods.

Where goodwill has been allocated to a cash¬
generating unit and part of the operation within that
unit is disposed of, the goodwill associated with
the disposed operation is included in the carrying

The amendment specifies the requirements that a seller-
lessee uses in measuring the lease liability arising in a
sale and leaseback transaction, to ensure the seller-
lessee does not recognize any amount of the gain or loss
that relates to the right of use it retains.

The amendment is effective for annual reporting periods
beginning on or after 01 April 2024 and must be applied
retrospectively to sale and leaseback transactions
entered into after the date of initial application of Ind AS
116.

The amendments do not have a material impact on the
Company’s Standalone financial statements.

(ii) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified the Ind
AS 117, Insurance Contracts, vide notification dated 12
August 2024, under the Companies (Indian Accounting
Standards) Amendment Rules, 2024, which is effective
from annual reporting periods beginning on or after 01
April 2024.

Ind AS 117 Insurance Contracts is a comprehensive new
accounting standard for insurance contracts covering
recognition and measurement, presentation and
disclosure. Ind AS 117 replaces Ind AS 104 Insurance
Contracts. Ind AS 117 applies to all types of insurance
contracts, regardless of the type of entities that issue
them as well as to certain guarantees and financial
instruments with discretionary participation features; a
few scope exceptions will apply. Ind AS 117 is based on a
general model, supplemented by:

• A specific adaptation for contracts with direct
participation features (the variable fee approach)

• A simplified approach (the premium allocation
approach) mainly for short-duration contracts

The application of Ind AS 117 does not have material impact
on the Company’s Standalone financial statements as the
Company has not entered any contracts in the nature of
insurance contracts covered under Ind AS 117.

4. Standards notified but not yet effective

The new and amended standards and interpretations
that are issued, but not yet effective, up to the date
of issuance of the Company’s standalone financial
statements are disclosed below. The Company will
adopt this new and amended standard, when it become
effective.

Lack of exchangeability - Amendments to Ind AS 21

The Ministry of Corporate Affairs notified amendments to
Ind AS 21 The Effects of Changes in Foreign Exchange
Rates to specify how an entity should assess whether a
currency is exchangeable and how it should determine a
spot exchange rate when exchangeability is lacking. The
amendments also require disclosure of information that
enables users of its standalone financial statements to
understand how the currency not being exchangeable
into the other currency affects, or is expected to affect,
the entity’s financial performance, financial position and
cash flows.

The amendments are effective for annual reporting
periods beginning on or after April 01, 2025. When
applying the amendments, an entity cannot restate
comparative information.

The amendments are not expected to have a material
impact on the Company’s standalone financial statements.

Note:

1. Certain items of property, plant and equipment have been pledged as security against the borrowings of the Company
(refer note 19).

2. Title deeds are held in the name of the Company.

3. On transition to Ind AS (i.e. April 01, 2016), the Company has elected to continue with the carrying value of all Property,
plant and equipment measured as per the previous GAAP and use that carrying value as the deemed cost of Property,
plant and equipment.

4. The Company started the construction of a new manufacturing facility at Sanand, Gujarat in previous year. This project
is expected to be completed in June 2025. The manufacturing facility is financed by the Company from a bank. The
amount of borrowing costs capitalised in capital work in progress during the year ended March 31, 2025 is ' 306.25
Lakhs (March 31, 2024: ' 21.97 Lakhs). The rate used to determine the amount of borrowing costs eligible for capitalisation
is the effective interest rate of the specific borrowing.

Further during, the previous year, the Company has capitalised its manufacturing facility at Chakan Maharashtra. The
manufacturing facility is financed by the Company from a bank. The amount of borrowing costs capitalised in property
plant and equipment during the year ended March 31, 2025 is ' Nil (March 31, 2024: ' 249.02 Lakhs). The rate used to
determine the amount of borrowing costs eligible for capitalisation is the effective interest rate of the specific borrowing.

5. Capital work in progress includes assets in transit of ' 55.31 Lakhs (March 31, 2024'1,426.29 Lakhs)

5 Right-of-use assets

The Company has lease contracts for lands and buildings, solar power plants, vehicles and guest houses generally
have lease terms ranging from 12 months to 99 years. The Company’s obligations under its leases are secured by the
lessor’s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets.
The Company also has certain leases with lease terms of 12 months or less and low value assets. The Company applies the ‘short¬
term lease’ and ‘low value assets’ recognition exemptions for these leases.

On 1 April 2019, the Company purchased certain assets from Lumax Auto Technologies Limited at a consideration of
' 2,245.41 lakhs, pursuant to which, the Company has setup in-house Electronic facility at Manesar on 1 April 2019 for designing
and manufacturing of Electronics Printed Circuit Boards Assembly (‘PCB’). The said acquisition was primarily done to optimize
cost by indigenization of Printed Circuit Board (‘PCB’). The above mentioned purchase of assets had been accounted as
Business Combination in accordance with Ind AS 103.

The fair values of assets (i.e. Property, plant and equipment and other intangible assets) acquired amounts to ' 1,267.83 lakhs.
Further, Goodwill arising from the acquisition amounts to ' 977.58 lakhs which is attributable to synergies expected to be
achieved from integrating PCB into the Company’s existing business.

For the purpose of impairment testing, Goodwill is allocated to the Company as a whole since the performance of the
Company is monitored at that level for internal management purposes. The recoverable amount of the CGU was based on its
value in use and was determined by discounting the future cash flows to be generated from the continuing use of the CGU.
These calculations use cash flow projections over a period of five years, based on next year financial budgets estimated by
management, with extrapolation for the remaining period, and an average of the range of assumptions as mentioned below.

The cash flow projections included specific estimates for five years and a terminal growth rate thereafter. The terminal growth
rate and EBITDA margins were determined based on management’s estimate. Budgeted EBITDA margin was based on
expectations of future outcomes taking into account past experience. The estimation of value in use reflects numerous
assumptions that are subject to various risks and uncertainties, including key assumptions regarding expected growth
rates and operating margin, expected length and the shape and timing of the subsequent recovery, as well as other key
assumptions with respect to matters outside of the Company’s control. It requires significant judgments and estimates, and
actual results could be materially different than the judgments and estimates used to estimate value in use.

The Company has used the discount rate which is based on the Weighted Average Cost of Capital (WACC) of comparable
market participant, adjusted for specific risks. These estimates are likely to differ from future actual results of operations and
cash flows. Based on the above, no impairment was identified as at March 31, 2025 and March 31, 2024 as the recoverable
value of the CGU exceeded the carrying value. Management has performed a sensitivity analysis with respect to changes in
assumptions for assessment of ‘value in use’ of respective CGUs. Based on this analysis, management believes that change
in any of the above assumption would not cause any material possible change in carrying value of unit’s CGUs over and
above its recoverable amount.

d) Terms/ rights attached to equity shares:

The Company has only one class of equity shares having a par value of ' 10 per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of
Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.

I n 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.

18.1 Nature and purpose of reserves

a) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited
purposes in accordance with the provisions of the Companies Act,2013.

b) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013,
the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn.
However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific
requirements of Companies Act, 2013.

c) Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends
or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit
plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

d) Capital reserve

The reserve will be utilized in accordance with the provisions of the Companies Act, 2013.

Term Loan:

a) Term loan amounting to ' 2,222.16 lakhs (March 31, 2024'3,999.90 lakhs) from bank is secured by way of exclusive

charge on Land of Bawal plant (Haryana) along with plant & machinery of Sanand plant (Gujurat), which is financed from

the proceeds of Term Loan. This loan is repayable in 18 equal quarterly installment. The interest rate range between
8.00% to 8.25% (March 31, 2024: 8.25%).

b) Term loan amounting to ' 13,959.41 lakhs (March 31, 2024'11,832.15 lakhs) from bank is secured by way of exclusive

charge on Land of Bawal plant (Haryana) along with plant & machinery of New Chakan plant (Maharashtra), and Bawal

plant (Haryana), which is financed from the proceeds of Term Loan. This loan is repayable in 15 equal quarterly installment.
The interest rate range between 8.00% to 9.13% (March 31, 2024 8.47% to 9.31%).

c) Term loan amounting to ' 12,316.35 lakhs (March 31, 2024'2,262.42 lakhs) from bank is secured by way of exclusive

charge on secured by way of exclusive charge on Land and Building of Bawal plant (Haryana) along with all present and

future plant & machinery of New Chakan plant (Maharastra), Sanand plant (Gujurat) and Bawal plant (Haryana). This loan
is repayable in equated 5% quarterly installment, starting from second year.The interest rate range between 7.41% to
8.25% (March 31, 2024 8.25%).

Vehicle Loans:

Vehicle loans amounting to ' 592.48 Lakhs (March 31, 2024'681.21 Lakhs) from bank carrying interest rate 7.60% to 9.10%

(March 31, 2024 8.65% to 9.15%) is secured by way of hypothecation of the respective vehicles acquired out of proceeds

thereof. These loans are repayable over a period of thirty nine months from the date of availment.

c) Undrawn committed borrowing facility

The Company has availed fund based and non fund based limits amounting to ' 1,18,110.00 Lakhs (March 31, 2024 :
' 96,160.00 Lakhs) from banks and financial institutions. An amount of ' 22,267.66 Lakhs remain undrawn as at March 31,
2025 (March 31, 2024 : ' 27,819.94 Lakhs).

d) Loan covenants

The Company has satisfied all debt covenants prescribed in the terms of rupee term loans. The other loans do not carry any
debt covenant. The Company has not defaulted on any loans payable and term loans were applied for the purpose for which
the loans were obtained.

e) Wilful defaulter

The Company have not been declared wilful defaulter by any bank or financial institutions or government or any government
authority.

f) The Company has been sanctioned working capital limits from banks and financial institution during the year on the basis of
security of current assets of the Company. The quarterly returns/statements filed by the Company for each quarter with such
banks and financial institution are in agreement with the books of accounts of the Company.

39 Gratuity and other post-employment benefit plans

The Company has a defined gratuity plan (funded) and the gratuity plan is governed by The Payment of Gratuity Act 1972
(“Act”). Under the Act, employees who have completed five years of service are entitled for gratuity benefit of 15 days salary
for each completed year of service or part thereof in excess of six months with a maximum ceiling of ' 20.00 Lakhs. The
amount of benefit depends on respective employee’s salary, the years of employment and retirement age of the employee
and the gratuity benefit is payable on termination/retirement of the employee. The present value of obligation is determined
based on an actuarial valuation as at the reporting date using the Projected Unit Credit Method.

The fund has the form of an irrevocable trust and it is governed by Board of Trustees. The Board of trustees is responsible
for the administration of the plan assets and for the definition of investment strategy. The scheme is funded with qualifying
insurance policies. The Company is contributing to trust towards the payment of premium of such gratuity schemes.

41 Event after the reporting date

The Board of Directors of the Company have proposed dividend after the balance sheet date which is subject to approval by
shareholders at the annual general meeting. Refer note 17 for details.

42 Significant accounting judgements, estimates and assumptions

The preparation of the Company’s standalone financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

(i) Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have
the most significant effect on the amounts recognised in the in the standalone financial statements:

a) Assessment of lease term

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by
an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate
the lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies
judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate
the lease That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal
or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or
change in circumstances that is within its control and affects its ability to exercise or not to exercise or not to exercise the
option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to
the leased asset).

b) Revenue from contracts with customers

The Company applied the following judgments that significantly affect the determination of the amount and timing of
revenue from contracts with customers:

Certain contracts for the sale of products include a right of price revision on account of change of commodity prices/
purchase price that give rise to variable consideration. In estimating the variable consideration, the Company is required
to use either the expected value method or the most likely amount method based on which method better predicts the
amount of consideration to which it will be entitled.

(ii) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based its assumptions and estimates on parameters available when the standalone
financial statements were prepared. Existing circumstances and assumptions about future developments, however, may
change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

a) Useful lives and estimated value of Property, plant and equipment and intangible assets

The useful lives and residual values of property, plant and equipment and intangible assets are determined by the
management based on technical assessment by the management. The Company believes that the derived useful life
best represents the period over which the Company expects to use these assets.

b) Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and
timing of future taxable income. Given the wide range of business relationships and the longterm nature and complexity
of existing contractual agreements, differences arising between the actual results and the assumptions made, or future
changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The
Company establishes provisions, based on reasonable estimates. The amount of such provisions is based on various
factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and
the responsible tax authority.

Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the
respective domicile of the companies.

c) Gratuity benefit

Defined benefit plans - gratuity. The cost of the defined benefit gratuity plan and the present value of the gratuity
obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that
may differ from actual developments in the future These include the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, defined benefit
obligation is highly sensitive to changes in these assumptions All assumptions are reviewed at each reporting date The
parameter which is most subjected to change is the discount rate In determining the appropriate discount rate for plans

operated in india, the management considers the interest rates of government bonds in currencies consistent with the
currencies of the post-employment benefit obligation The mortality rate is based on Indian Assured Lives Mortality (2012¬
14) Ultimate Those mortality tables tend to change only at interval in response to demographic changes Future salary
increases and gratuity increases are based on expected future inflation rates Further details about the assumptions
used, including a sensitivity analysis, are given in note 39.

d) Fair value measurement of financial instrument

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted
Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is
not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair
value of financial instruments.

e) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default, expected loss rates and
timing of cash flows The Company uses judgment in making these assumptions and selecting the inputs to the impairment
calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the
end of each reporting period As a practical expedient, the Company uses a provision matrix to determine ECL, impairment
allowance on portfolio of its trade receivables The provision matrix is based on its historically observed default rates
over the expected life of the trade receivables and is adjusted for forward-looking estimates At every reporting date, the
historical observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis,
the Company estimates a default rate of total revenue for trade receivables and contract revenue for contract assets. The
Company follows provisioning norms based on ageing of receivables to estimate the impairment allowance under ECL.

f) Impairment of non-financial assets

I mpairment exists when the carrying value of an asset or cash generating unit (CGU) exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use.

The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at
arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value
in use calculation is based on a Discounted Cash Flow (DCF) model. The cash flows are derived from the budget for the
next five years as approved by the Management and do not include restructuring activities that the Company is not yet
committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The
recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows
and the terminal growth rate used. During the year the Company has done the impairment assessment of non-financial
assets and have concluded that there is no impairment in value of non-financial assets as appearing in the standalone
financial statements.

g) Lease incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore its incremental borrowing rate
(IBR) to measure lease liability. The IBR is the rate of interest that the Company would have to pay to borrow over similar
term, and with a similar security, the fund necessary to obtain an asset of a similar value to the Right-to-use assets in
as similar economic environments. The IBR therefore effects what the Company “would have to pay” which requires
estimates when no observable rates are available or when they need to be adjusted to reflect the term and conditions
of the lease. The Company estimates the IBR using observable inputs such as market interest rates when available.

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants, if any to maintain or adjust the capital structure, the Company reviews the fund
management at regular intervals and take necessary actions to maintain the requisite capital structure The Company monitors
capital using gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt,
interest bearing loans and borrowings, less cash and cash equivalents No changes were made in the objectives, policies or
processes for managing capital during the years ended March 31. 2025 and March 31. 2024.

The Company’s principal financial liabilities comprise of trade and other payables, borrowings, security deposits and payables
for property, plant and equipment and other financial liabilities. The main purpose of these financial liabilities is to finance the
Company’s operations. The Company’s principal financial assets include trade and other receivables, government grants,
cash and cash equivalents, other bank balances, fixed deposits and security deposits that derive 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. The Company’s senior management is supported by Finance department that advises on financial
risks and the appropriate financial risk governance framework for the Company. The Finance department provides assurance
to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and
procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk
objectives. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board
of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

A. 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, commodity risk and other price risk,
such as equity price risk. Financial instrument effected by market risk include loans,borrowings and deposits.

The sensitivity analyses in the following sections relate to the position as at March 31, 2025 and March 31, 2024.

The following assumptions have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based
on the financial assets and financial liabilities held at March 31, 2025 and March 31, 2024.

i) Interest rate risk

I nterest 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’s interest bearing financial liabilities includes borrowings with variable
interest rates.

The Company’s variable rate borrowing is subject to interest rate fluctuation. Below is the overall exposure of the

ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to
the Company’s operating activities (when revenue or expense is denominated in a foreign currency).

The Company transacts business in local currency as well as in foreign currency. The Company has foreign currency
trade payables and receivables and is therefore, exposed to foreign exchange risk.

Foreign currency rate sensitivity

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the
end of the reporting period are as follows.

iii) Equity Price Risk

The Company’s investment in listed securities susceptible to market price risk arising from uncertainties about future
values of the investment securities. The Company manages the equity price risk through diversification and by placing
limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company’s senior
management on a regular basis. The Company’s Board of Directors reviews and approves all equity investment
decisions.

At the reporting date, the exposure to listed equity securities at fair value was ' 35.31 Lakhs. A decrease and increase of
10% on the NSE market index could have an impact of approximately ' 3.53 Lakhs on the profit or loss.

iv) Commodity price risks

Fluctuation in commodity price in market affects directly or indirectly the price of raw material and components used
by the Company. The Company sells its products mainly to Original Equipment Manufacturer (OEM’s) whereby there
is a regular negotiation / adjustment of sale prices on the basis of changes in commodity prices. The Company is not
significantly impacted by commodity price risk.

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

Trade receivables

Customer credit risk is managed by the Company subject to the Company’s established policy, procedures and control
relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating.
Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number
of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure
to credit risk at the reporting date is the carrying value of financial assets (trade receivable). The Company evaluates the
concentration of risk with respect to trade receivables as low, as its majority of customers are located and being operated in India.

Further, the Company’s customer base majorly includes Original Equipment Manufacturers (OEMs), Large Corporates and
Tier-1 vendors of OEMs. Based on the past trend of recoverability of outstanding trade receivables, the Company has not
incurred material losses on account of bad debts. Hence, no adjustment has been made on account of Expected Credit Loss
(ECL).

C. Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum levels of liquidity to
meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash
management system. It maintains adequate sources of financing including loans from banks at an optimised cost.

51 The Company’s business activity falls within a single business segment i.e. manufacturing of automotive components and
the chief operating decision maker (CODM) reviews the operations of the Company as a whole, accordingly there are no
additional disclosures to be furnished in accordance with the requirement of Ind AS 108 “Operating Segments” with respect to
single reportable segment. Further, the operations of the Company is domiciled in India and therefore there are no reportable
geographical segment.

Revenue from operations includes ' 2,00,578.32 lakhs (March 31, 2024'1,26,138.15 lakhs) arising from product suppled/
services provided to four customer (March 31, 2024 three customer) exceeding 10% from each customer.

52 The Company has migrated to a new accounting software during the year effective May 01, 2024. The Company has used
such accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility
and the same has operated throughout the year effective May 01. 2024 for all relevant transactions recorded in the such
accounting software except that audit trail feature is not enabled for application’s underlying database and the same is also
not enabled for certain changes made using privileged/ administrative access rights. Further, there is no instance of audit trail
feature being tampered with in respect of both accounting software. Additionally, the audit trail to the extent enabled of prior
year has been preserved by the Company as per the statutory requirements for record retention.

53 Other Statutory Information

(i) No proceedings have been initiated or are pending against the Company for holding any Benami property under the
Benami Transactions (Prohibition) Act, 1998 and rules made thereunder.

(ii) The Company does not have transactions with struck off companies.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company have 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 Beneficiaries

(vi) The Company have 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

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that 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 Act, 1961.

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

for S.R. Batliboi & Co. LLP Lumax Industries Limited

Chartered Accountants

ICAI Firm Registration No.:301003E/E300005

per Pranay Gupta Deepak Jain Raajesh Kumar Gupta

Partner Chairman & Managing Director Executive Director & Company Secretary

Membership No.511764 DIN: 00004972 DIN: 00988790

Place : Gurugram Membership No. A8709

Place : Gurugram

Place: New Delhi Raju Bhauso Ketkale Ravi Teltia

Date: May 26, 2025 Chief Executive Officer Chief Financial Officer

Place : Gurugram Place : Gurugram