The Company has only one class of equity shares with a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. The Company declares and pays dividends in Indian rupees. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.

23.1 Nature and purpose of reserves

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

General reserve is the retained earnings of a Company which are kept aside out of the Company's profits to meet future (known or unknown) obligations.

Surplus in statement of profit and loss, during the year the Company has paid dividend of financial year 2022-23 amounting Rs 115.94 Lakhs and in previous year the Company has paid dividend amounting Rs 115.94 Lakhs to its equity shareholders.

Other comprehensive income (OCI) represents the remeasurement of defined benefit obligation net of income tax, which is directly recognised in other comprehensive income.

The Board of Directors recommended a dividend of Rs 3 per share (nominal value of Rs 10 per share) for the financial year 2023-24. This dividend is subject to approval by the shareholders at the Annual General Meeting and has not been accounted as liability in these financial statements. The total cash outflow will be Rs 115.94 Lakhs.

a) Borrowings have been facilitated by followings banks which are secured as mentioned below:

i) Kotak Mahindra Bank Limited - Foreign Currency Term Loan/Terms Loan

1. Second pari-passu charge on all existing and future current assets of the Company.

2. First pari-passu charge over all present and future moveable assets of the Company excluding movable fixed assets situated at Karnataka plant which is exclusively charged with other banker.

3. First equitable mortgage charge on immoveable properties being land and building situated at GP-14, Industrial Estate, Sector-18, Gurgaon, Haryana.

4. Exclusive equitable mortgage charge on immovable property situated at plot no 150, Sector-44, Gurgaon.

5. Personal guarantees of Mr. Ashwani Minda and Mrs. Vandana Minda.

ii) TATA Capital Financial Services Limited - Term Loan

1. Hypothacation over the movable fixed assets of the Company at Plot No. 67, 68, 69 and 70 (part), Narasapura Industrial Area, Kolar District, Karnataka

2. Exclusive charge on Company property at Plot No. 67, 68, 69 and 70 (part), Narasapura Industrial Area, Kolar District

3. Personal guarantees of Mr. Ashwani Minda and Mrs. Vandana Minda.

4. Deposits amounting Rs. 53 lakhs pledged for issue of Term Loan as Debts Security Reserve Account, refer note no. 13.

iii) Aditya Birla Financial Services Limited- Term Loan

1. Hypothacation on over entire current assets & movable fixed assets of the Company both existing and future.

2. Exclusive charge by way of equitable mortgage on Industrial property at Plot No. 446F, IMT Manesar, Sector-8, Gurgaon Haryana.

3. Personal guarantee of Mr. Ashwani Minda Mr. Anirudh Minda and Mrs. Vandana Minda.

vi) ICICI Bank Limited - Term Loan

1. Exclusive equitable mortgage charge on immovable property at Plot No. 4, Sector-3, IMT Manesar, Gurgaon, Haryana 122050.

2. Exclusive Charge on machinery financed by ICICI Bank Limited.

3. Personal guarantee of Mr. Ashwani Minda and Mrs. Vandana Minda.

a) The Company has utilised the funds for which it was availed however, as per requirement of fund, the company has utilized short term borrowings for long term purpose.

b) The Company is not declared as wilful defaulter by any bank or financial institution or other lenders in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

27.1 Provision for warranty

The provision for warranty claims represents the present value as best estimate of the future economic benefits that will be required under the Company's obligations for warranties. The estimate has been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality.

1. Rs. 349.90 Lakhs including current deferred payment liabilities Rs 102.75 Lakhs (P.Y. Rs. 452.65 Lakhs including current deferred payment liabilities Rs 94.97 Lakhs) payable towards leasehold land at Bhagpura, Gujarat. Refer note no. 36.

2. Rs. 165.16 Lakhs for current deferred payment liabilities (P. Y. Rs. 165.16 Lakhs including current deferred payment liabilities Rs Nil) payable towards Land purchased at Rohtak, Haryana.Refer note no. 36.

3. Total cost of above land excluding interest is Rs. 1639.52 Lakhs.

No default as on the balance sheet date in terms of repayment of loans and interest.

*There are no differences in the figures reported in the quarterly returns / statements filed with the banks vis-a-vis the books of accounts. For the determination of Drawing power, the Company follow the guidance of the RBI prescribed for commodities covered under selective credit control.

Short term borrowings have been facilitated by followings banks which are secured as mentioned below:

i) Kotak Mahindra Bank Limited- Working Capital Facilities.

1. First pari-passu charge on all existing and future current assets of the Company.

2. Second pari-passu charge over all present and future moveable assets of the Company excluding movable fixed assets situated at Karnataka plant which is exclusively charged with other banker.

3. Second pari-passu equitable mortgage charge on immoveable properties being land and building situated at GP-14, Industrial Estate, Sector-18, Gurgaon, Haryana and Plot No.D-1/2 in the Sipcot's Industrial Park at Sriperumbudur.

4. Exclusive equitable mortgage charge on immovable property situated at plot no 150, Sector-44, Gurgaon.

5. Personal guarantee of Mr. Ashwani Minda and Mrs. Vandana Minda.

6. Deposits are pledged with bank for LC facility and security for loans, refer note no. 11.

ii) Yes Bank Limited - Overdraft

1. Deposits are pledged with bank for working capital loans and security for loans, refer note no 17.

iii) RBL Bank Limited - Overdraft

1. Deposits are pledged with bank for working capital loans and security for loans, refer note no 11.

iv) ICICI Bank Limited - Cash Credit

1. Exclusive charge by way of equitable mortgage on immovable property situated at Plot No. 4, Sector-3, IMT Manesar, Gurgaon, Haryana 122050

2. Personal guarantee of Mr. Ashwani Minda and Mrs. Vandana Minda.

During the financial year ended March 31, 2024 and March 31, 2023, there are no disputed trade payable.

The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified by the Company, on the basis of information and records available with the Company. Disclosure in respect of amount remaining unpaid and interest due on delayed payment has been determined only in respect of payments made after the receipt of information, with regards to filing of memorandum, from the respective suppliers. Disclosure as required under section 22 of the Act, is as under:

41.1 Employee benefit obligations

The Company has in accordance with Indian Accounting Standard (Ind AS)- 19 “Employee Benefits” calculated the various benefits provided to employees as under:

A. Defined contribution plans:

i. Provident fund

II. Employee state insurance plan

The provident fund and the employees' state insurance defined contribution plan are operated by the Regional Provident Fund Commissioner and Regional Director of ESIC respectively.

The Company has recognized the following amounts in the Statement of profit and loss for the year:

B. Defined benefits plans Gratuity

Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The Company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan.

C. Other long term employee benefits Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the Company's policy. Liability has been accounted for on the basis of actuarial valuation certificate for the balance of earned leaves at the credit of employees at the end of the year.

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

Risk exposure

The gratuity scheme is a salary defined benefit plan that provides for lump sum payment made on exit either by way of retirement, death, disability or voluntary withdrawal. The benefits are defined on the basis of final salary and the period of service and paid as lump sum at exit. The plan design means the risk commonly aecting the liabilities and the financial results are expected to be:

(a) Interest rate risk: The defined benefit obligation calculated uses a discount rate based on government bonds, if bond yield fall, the defined benefit obligation will tend to increase.

(b) Salary inflation risk: Higher than expected increases in salary will increase the defined benefit obligation.

(c) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria.

*Pursuant to introduction of section 115BAA of the Income Tax Act, 1961, the domestic Companies have option to pay corporate Income tax at reduced rate plus applicable surcharge and cess (New Tax Rate) by foregoing certain exemptions / deduction and minimum alternate tax (MAT) credits. During the current year ended March 31,2024, the company has made the tax provisions based on new tax regime.

48 The Company is in the process of obtaining confirmations and reconciliation with its trade receivables, trade payables and other dues receivables. The confirmations to the extent received have been reconciled and adjustments, if any, have been made. The others are pending for confirmations, reconciliations and adjustments, if any. However, the management does not expect any significant variations in the existing status.

49 Subsequent events:

No adjusting or significant non-adjusting events have occurred between the reporting date and date of authorization of these financial statements.

52 SEGMENT INFORMATION

The Company primarily operates in one segment which comprises of manufacturing and sale of automobile components identified in accordance with principle enunciated in Indian Accounting Standard Ind AS-108, Segment Reporting. Hence, separate business segment information is not applicable.

The board of directors of the Company, which has been identified as being the chief operating decision maker (CODM), evaluates the Company's performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit. Therefore, there is no reportable segment for the Company as per the requirement of IND AS 108 “Operating Segments”.

D. Terms and Conditions

The transactions with the related parties are made on term equivalent to those that prevail in arm's length transactions. The assessment is under taken each financial year through examining the financial position of the related party and in the market in which the related party operates. Outstanding balances are unsecured.

55 FAIR VALUE MEASUREMENT

Financial instruments by category and hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication about the reliability of inputs used in determining fair values, the group has classified its financial instruments into three levels prescribed under the accounting standards.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, tax free bonds and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for market, traded bonds, over-thecounter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

(ii) Valuation Techniques Used to Determine Fair Value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount 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.

Specific valuation technique used to value financial instrument includes:

> the use of quoted market prices or dealer quotes for similar financial instruments.

> the fair value of financial assets and liabilities at amortised cost is determined using discounted cash flow analysis The following method and assumptions are used to estimate fair values:

The Carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, short term deposits etc. are considered to be their fair value, due to their short term nature and long-term fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. For borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer's borrowings rate. Risk of non-performance for the Company is considered to be insignificant in valuation.

56 FINANCIAL RISK MANAGEMENT

The Company's activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are entered into by the Company to hedge certain foreign currency exposure. Derivatives are used exclusively for hedging and not as trading or speculative instruments.

The Company's activities are expose to Market risk, Credit risk and Liquidity risk.

I. Market risk

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

The sensitivity analyses in the following section relate to the position as at 31st March 2024 and 31st March 2023 (a) Interest rate risk

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

(b) 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 has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk which are unhedged as per Policy.

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the Company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable and supportive forward looking information such as:

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its obligation.

(iv) Significant increase in credit risk and other financial instruments of the same counterparty.

(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or credit enhancements.

The Company's major exposure is from trade receivables, which are unsecured and derived from external customers. Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

Expected credit loss for trade receivable on simplified approach :

The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable. The provision matrix is based on its historically observed default data over the expected life of the trade receivable and is adjusted for forwardlooking estimates. At every reporting date, the historical observed default rates are updated and changes in forward-looking estimates are analysed. However there is no trade receivable which is require allowance for expected credit loss.

Liquidity risk is defined as the risk that Company will not be able to settle or meet its obligation on time or at a reasonable price. The Company's objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company's treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the company's net liquidity position through rolling, forecast on the basis of expected cash flows.

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

(b) Loan covenants

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to call loans and borrowings or charge some penal interest. There have been no breaches in the financial covenants of any interest bearing loans and borrowing in the current year and the previous years.

No changes were made in the objectives, policies or processes for managing capital during the current years and previous years.

58 Previous year figures have been re-grouped / re-classified wherever necessary to corresponding with the current year's classification /disclosure.

59 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

60 Other Disclosures

i) Revaluation of Property, Plant & Equipment & Intangible assets

The Company has not done any revaluation of Property, Plant & Equipment including Right of use assets and Intangible assets during the year, refer note no. 5,7 8 & 9.

ii) Details of Benami Property held

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

iii) Relationship with struk off companies

The Company has not transacted with any Company which is either struk off or in the process of striking off by the Ministry of corporate Affairs.

iv) Title deed of Immovable Properties

We have the title deeds in the name of the Company in respect of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) except as disclosed below. The title deed of the same will be transferred when all the instalment of deferred payments including interest will be paid, refer note no. 29 & 36.

v) Undisclose Income

The Company has not disclosed or surrendered any income during any previous year in the course of Income tax Assessment proceedings, survey or any other relevant provision of the Income Tax Act, 1961. All transaction, incomes & assets are duly recorded in the books of accounts.

vi) Utilisation of borrowed funds and security premium

The Company has not

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.

vii) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

viii) Registration of Charges or Satisfaction with Registrar of Companies

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