2.A.8. Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that the Company will be required to settle the obligation, and
a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.

2.A.9. Contingent liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not require an outflow of resources.

When there is a possible obligation or a present obligation in respect of which the likelihood on
outflow of resources is remote, no provision or disclosure is made.

2.A.10. Revenue recognition

Sale of products/services

Revenue from the sale of products or services is recognised upon transfer of control to customers.
Revenue is measured at the amount of consideration which the Company expects to be entitled

to in exchange for transferring distinct goods or services to a customer as specified in the contract,
excluding amounts collected on behalf of third parties (for example, taxes and duties collected on
behalf of the government). A receivable is recognized upon satisfaction of performance obligations as
per the contracts and is measured at transaction price.

Variable consideration

If the consideration in a contract includes a variable amount, the Company estimates the amount of
consideration to which it will be entitled in exchange for transferring the goods to the customer. The
variable consideration is estimated at contract inception and continuing until it is highly probable
that a significant revenue reversal in the amount of cumulative revenue recognised does not occur
when the associated uncertainty with the variable consideration is subsequently resolved.

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the
customer. If the Company performs by transferring goods or services to a customer before the
customer pays consideration or before payment is due, a contract asset is recognised for the earned
consideration that is conditional.

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company
has received consideration (or an amount of consideration is due) from the customer. If a customer
pays consideration before the Company transfers goods or services to the customer, a contract
liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract
liabilities are recognised as revenue when the Company performs under the contract.

Export benefits

Export benefit entitlements is in the nature of income, and are recognised when the right to receive
benefit is established in respect of the exports made and the realisation is reasonably certain.

2.A.11. Inventories

Inventories are valued at lower of cost and net realisable value. Costs incurred in bringing each
product to its present location and condition is accounted for as follows:

i) Raw materials, loose tools and store and spares : cost includes cost of purchase and other
costs incurred in bringing the inventories to their present location and condition. Cost is
determined on weighted average basis. Raw materials and other supplies held for use in the
production of inventories are not written down below cost if the finished products in which
they will be incorporated are expected to be sold at or above cost.

ii) Work in progress: cost includes cost of direct materials and labour and a proportion of
manufacturing overheads based on the normal operating capacity.

iii) Finished goods: cost includes cost of direct materials and labour and a proportion of
manufacturing overheads based on the normal operating capacity.

iv) Stock-in-trade: cost includes cost of purchase and other costs incurred in bringing the
inventories to their present location and condition. Cost is determined weighted average
basis.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated
costs of completion and the estimated costs necessary to make the sale.

!. (B) Other accounting policy information

2.B.1. Other income

Interest income

Interest income from a financial asset is recognised when it is probable that the economic benefits
will flow to Company and the amount of income can be measured reliably. Interest income is accrued
on time basis, by reference to the principal outstanding and at the interest rate as applicable.

Miscellaneous income

Other revenues are recognised on accrual basis, except where there are uncertainties in realisation
/ determination of income and in such case income is recognised on realisation / certainty.

2.B.2. Research and development

Revenue expenditure on research and development, inclusive of dies for new model development,
is charged as expense in the year in which incurred. Capital expenditure is included in property,
plant, equipment and intangible assets.

2.B.3. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time the assets are substantially
ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the statement of profit and loss in the period in which
they are incurred.

2.B.4. Earnings per share

Basic earnings per share is calculated by dividing profit or loss attributable to the owners of the
Company by weighted average number of equity shares outstanding during the financial year. The
weighted average number of equity shares outstanding during the year is adjusted for events of
bonus issue, share split and any new equity issue.

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

2.B.5. Impairment of assets

The carrying values of property, plant and equipment, right of use assets and intangible assets or
cash generating units are reviewed at each Balance sheet date for impairment. If any indication of
impairment exists, the recoverable amount of such assets is estimated and impairment is recognised,
if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount
is the greater of the net selling price and their value in use. Value in use is arrived at by discounting
the future cash flows to their present value based on an appropriate discount factor. When there is
indication that an impairment loss recognised for an asset in earlier accounting periods no longer
exists or may have decreased such reversal of impairment loss is recognised in the statement of
profit and loss..

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 measured at amortised cost e.g., loans,
debt securities, deposits and bank balance

• Trade receivables under Ind-AS 115

• Financial guarantee contracts which are not measured as at FVTPL

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on:

• Trade receivables

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

For recognition of impairment loss on other financial assets and risk exposure, the Company
determines that whether there has been a significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to provide
for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used.
If, in a subsequent period, credit quality of the instrument improves such that there is no
longer a significant increase in credit risk since initial recognition, then the entity reverts to
recognising impairment loss allowance based on 12-month ECL.

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 EIR. When estimating the cash flows, an entity is
required to consider:

• All contractual terms of the financial instrument (including prepayment extension, call and
similar options) over the expected life of the financial instrument. However, in rare cases
when the expected life of the financial instrument cannot be estimated reliably, then the
entity is required to use the remaining contractual term of the financial instrument.

• Cash flows from the sale of collateral held or other credit enhancements that are integral to
the contractual terms.

• 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 historical observed default rates are
updated and changes in the forward-looking estimates are analysed.

• ECL impairment loss allowance (or reversal) recognised during the period is recognised as
income/expense in the statement of profit and loss.

2.B.6. Segment reporting

An operating segment is a component of the Company that engages in business activities from
which it may earn revenues and incur expenses, including revenues and expenses that relate
to transactions with any of the Company’s other components, and for which discrete financial
information is available. The Company is primarily engaged in the manufacturing and assembling of
automotive components for the automotive industry. All operating segments’ operating results are
reviewed regularly by the Company’s Chief Operating Decision Maker (“CODM”) to make decisions
about resources to be allocated to the segments and assess their performance. CODM believes
that these are governed by same set of risk and returns hence CODM reviews as one balance sheet
component.

2.B.7. Foreign currency transactions and translations

Transactions in foreign currency are recorded on initial recognition at the exchange rate prevailing
on or closely approximating to the date of transaction.

At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated at the rates prevailing at the date when the
fair value was determined. Non-monetary items that are measured in terms of historical cost in a
foreign currency are not retranslated.

Exchange differences on monetary items are recognised in the statement of profit and loss in the
period in which they arise except exchange differences on transactions entered into in order to
hedge certain foreign currency risks.

For foreign currency denominated financial assets measured at amortised cost or FVTPL, the
exchange differences are recognised in statement of profit and loss except for those which are
designated as hedging instruments in a hedging relationship.

2.C. Application of new standards and amendments

The Ministry of Corporate Affairs (‘MCA’) notified new standards or amendment to existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. The Company applied
following amendments for the first-time during the current year which are effective from 01 April 2025:

(a) Lack of exchangeability - Amendments to Ind AS 21

MCA via notification dated 7 May 2025, announced 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 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 do not have any material impact on the financial statements.

(b) Classification of liabilities as current or non-current and non-current liabilities with covenants
- Amendments to Ind AS 1

MCA via notification dated 13 August 2025 announced amendments to Ind AS 1, Presentation of
Financial Statements, which elaborate on guidance set out in Ind AS 1 by:

• clarifying that the right to defer settlement of a liability for at least 12 months after the
reporting period;

a) must have substance, and

b) must exist at the end of the reporting period;

• stating that management’s expectations around whether the settlement of a liability would
be deferred or not, does not impact the classification of the liability;

• including requirements for liabilities that can be settled using an entity’s own instruments; and

• stating that at the reporting date, the entity does not consider covenants that will need to
be complied with in the future when considering the classification of the debt as current or
non-current.

In addition, an entity is required to disclose when a liability arising from a loan agreement is
classified as non-current and the entity’s right to defer settlement is contingent on compliance
with future covenants within twelve months.

The amendments do not have any material impact on the classification of the Company’s liabilities
as at the balance sheet date.

(c) Supplier finance arrangements - Amendments to Ind AS 7 and Ind AS 107

MCA via notification dated 13 August 2025 announced amendments to Ind AS 7, Statement
of Cash Flows and Ind AS 107, Financial Instruments: Disclosures which introduced disclosure
requirements with the objective to enable users of financial statements to assess how supplier
finance arrangements affect an entity’s liabilities, cashflows and exposure to liquidity risk.

The amendments do not have any material impact on the financial statements.

(d) International tax reform - pillar two model rules - Amendments to Ind AS 12

MCA via notification dated 13 August 2025 announced amendments to Ind AS 12, Income Taxes,
which includes:

• a temporary exception to the recognition and disclosure of deferred taxes arising from the
implementation of the Pillar Two model rules; and

• additional disclosure requirements targeted at a reporting entity’s exposure to income taxes
in periods in which the Pillar Two Model legislation is enacted or substantively enacted but
not yet in effect.

The amendments do not have a material impact on the financial statements.

2.D. New standards and amendments to existing standards which are issued but are not yet effective
and have not been early adopted by the Company:

(a) Classification of liabilities as current or non-current and non-current liabilities with covenants
- Amendments to Ind AS 1

Paragraph 74 of Ind AS 1 currently effective for the year ended 31 March 2026 requires the entity
not to classify the liability as current, if there is a breach of a material covenant of a long-term
loan arrangement on or before the end of the reporting period with the effect that the liability
becomes payable on demand on the reporting date, however, the lender agreed, after the reporting
period and before the approval of the financial statements for issue, not to demand payment as a
consequence of the breach.

MCA vide notification dated 13 August 2025, has introduced amendment under Paragraph 74 of Ind
AS 1 which requires the entity to classify the liability as current under the aforementioned situation
because, at the end of the reporting period, it does not have the right to defer its settlement for
at least twelve months after that date. Such amendment has been made effective for annual
reporting periods beginning on or after 01 April 2026 retrospectively in accordance with Ind AS 8.

This amendment is not expected to have a material impact on the financial statements.

b. Terms/rights attached to equity shares

The Company has only one class of equity shares having face value of Rs. 10/- per share. Each holder of equity
share is entitled to dividend and one vote per share. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in
proportion to their shareholding.

**During the year ended 31 March 2022, the Company has concluded the buyback of 3,50,000
equity shares (at a price of Rs 1020/- per equity share) as approved by the Board of Directors on 30
July 2021. This has resulted in a total cash outflow of Rs 449.70 million (including tax on buyback
of Rs 82.40 million and transaction cost of Rs 10.30 million). In line with the requirement of the
Companies Act 2013, an amount of Rs 446.20 million has been utilized from retained earnings.
Further, capital redemption reserve of Rs 3.50 million (representing the nominal value of the shares
bought back) has been created as an apportionment from General reserve. Consequent to such
buyback, the paid-up equity share capital has reduced by Rs 3.50 million.

g) Dividends

i) The Board of directors, in its meeting held on 11 May 2026 has proposed final dividend of Rs. 5/-per
equity share (face value of Rs. 10/- per equity share) to equity shareholders for the year ended 31
March 2026. This dividend together with the interim dividend of Rs. 5/- per equity share, aggregating
total dividend to Rs. 10/- per equity share for the financial year 2025-26. The final dividend is subject
to the approval of shareholders in Annual General Meeting of the Company and same has not been
recognised as liability in financial statements for the year ended 31 March 2026.

ii) The Board of directors, in its meeting held on 7 May 2025, has proposed final dividend of Rs 5/-per
equity share (face value of Rs. 10 per equity share) to equity shareholders for the year ended 31
March 2025. This dividend together with the interim dividend of Rs.5/- per equity share, aggregating
total dividend to Rs. 10/- per equity share for the financial year 2024-25. The final dividend has been
approved by the Shareholders in Annual General Meeting of the Company held on 01 August 2025.

financial year 2023-24, Rs. 220.25 million has been used for issuance of bonus share and balance reserve amount
is available for the purposes as specified under the provisions of the Companies Act, 2013.

Capital redemption reserve

The Company bought back 3,50,000 equity shares in the financial year 2021-22 and created capital redemption
reserve as per the applicable provision of the Companies Act, 2013. The reserve amount is available for the
purposes as specified under the provisions of the Companies Act, 2013.

Revaluation reserve

In the financial year 1995-96, the Company had revalued its existing property, plant and equipment and created
a revaluation reserve for the same.

Retained earnings

Retained earnings represents the net profit/(loss) retained by the Company for its core business activities. Also,
includes re-measurement gains / ( loss) on defined benefit plans.

General reserves

General reserves represents amount appropriated out of retained earnings.

Cash flow hedge reserve

Cumulative changes in the fair value of financial instruments designated as effective hedge are recognised in
cash flow hedge reserve through OCI (net of taxes). Amounts recognised in the cash flow hedge reserve are
reclassified to the statement of profit and loss when the underlying transaction occurs.

Nature and purpose of reserves:

Preference share redemption reserve

The Company issued 10,00,000 nos. of preference shares in financial year 1997-98 of Rs. 100/- each and the same
were redeemed during the financial years viz- 2002-03 and 2003-04. Further, the Company issued 28,85,760
nos. of preference shares of Rs. 100/- each in financial year 2019-20 and same were redeemed in the financial
year 2019-20. Accordingly, the preference share redemption reserve of Rs. 388.58 million was created. In the

The sensitivity analysis has been determined based on possible changes of the assumptions occurring
at the end of the reporting period, while holding all other assumptions constant. The sensitivity analysis
present above may not be representative of the actual change in the defined obligation as it is unlikely
that the change in assumptions would occur in isolation of one another as some of the assumptions may
be co-related.

Risk factors in actuarial assumptions

Interest rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest
rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an
increase in the value of the liability.

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

Salary escalation risk: The present value of the defined benefit plan is calculated with the assumption
of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for
plan participants from the rate of increase in salary use to determine the present value of obligation will
have a bearing on the plan's liability.

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

Asset liability mismatching or market risk: The duration of the liability is longer compared to
duration of assets, exposing the Company to market risk for volatilities/ fall in interest rate.

Investment risk: The probability or likelihood of occurrence of losses relative to the expected return on
any particular investment.

Regulatory framework/ Governance / Benefits under the plan:

The Gratuity benefit is a post employment benefit. It is calculated at the terminal salary at the time of
separation of the employee in accordance with the provisions Code of Social Security, 2020. However,
there is no restriction on the maximum amount of gratuity payable. The plan assets are managed by
independent Board of Trustees, appointed by the company. The trust is a separate legal entity and is
recognized by the Commissioner of Income Tax, under the provisions of Schedule IV the the Income Tax
Act, 1961.

The Board of trustees manages the entire plan assets through Life Insurance Corporation of India, SBI
Life Insurance, Bajaj Allianz Life Insurance Company , HDFC Life Insurance Co. and ICICI Prudential Life
Insurance Under this policy, the eligible employees are entitled to receive gratuity payments upon their
separation in lumpsum after deduction of necessary taxes. Total investment as on 31 March 2026 is Rs
1,570.72 million, Rs 664.32 million in traditional and Rs 906.4 million in ULIP plan. The fund managers do
not disclose the composition of their portfolio investment in case of traditional plan, accordingly break¬
down of plan assets by investment type has not been disclosed, portfolio investment in case of ULIP plan
are as under:

Asset Liability Matching Strategies

The Company has purchased insurance policy, which is a cash accumulation plan. Interest on the fund
balances during the year is accumulated at the interest rate declared by insurance company at the end of
the financial year. Gratuity claims are settled by the insurance company out of the fund, thus mitigating
any liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to
the duration of the liabilities. Thus, the Company is exposed to movement in interest rate.

Effect of plan on Entity's future cash flows

The company has purchased insurance policies to provide for payment of gratuity to the employees. The
contribution to the funds are made on a quarterly basis based on estimated shortfall in plan assets from
liabilities. Expected contribution during the next annual reporting period is Nil (previous year: Nil) Maturity
profile of the defined benefit obligation based on weighted average duration is 7 Years.

The Company does not face a significant liquidity risk with regard to its lease liabilities to meet the obligations
related to lease liabilities as and when they fall due.

39. Segment reporting

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

Notes:

a) There are no non-current assets domiciled outside India.

b) During the financial year ended 31 March 2026, revenue from one customer amounting to Rs. 5,808.53
million (previous year Rs. 4,575.25 million) represents 10% or more of the Company's' revenue from
operations.

ii) Fair value hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial
instruments by valuation techniques:

The following is the basis of categorising the financial instruments measured at fair value into Level 1 to
Level 3.

Level 1 - This level includes financial assets that are measured by reference to quoted prices (unadjusted)
in active markets for identical assets or liabilities.

Level 2 - This level includes financial assets and liabilities, measured using inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices).

Level 3 - This level includes financial assets and liabilities, measured using inputs that are not based on
observable market data (unobservable inputs). Fair values are determined in whole or in part, using a
valuation model based on assumptions that are neither supported by prices from observable current
market transactions in the same instrument nor are they based on available market data.

There is no transfer between the fair value measurement hierarchy amongst level 1, level 2 and level 3
during the year ended 31 March 2025 and 31 March 2026.

* The fair values are based on net asset value

** This is the transaction price as at which the investment was made. In accordance with the Share Holder's
Agreement ('SHA') executed between the Company and Lalganj Power Private Limited, Fourth Partner
Solar Power Private Limited (investees), the holding company of the investees or any of their nominees
have an obligation to buy-back the aforementioned equity shares held by the company for an amount, at
the price at which the shares were acquired by the Company.

***The fair value is based on the valuation model which considers the present value of expected payment,
discounted using a risk-adjusted discount rate. The own non-performance risk was assessed to be
insignificant.

****The fair values are based on exchange rates as at the reporting date.

# During the year, there has not been any additions / deletions in level 3 investment.

45. Capital management

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

i) Maintain company’s ability to continue as a going concern

ii) Maintain a strong credit rating and debt equity and capital gearing ratio in order to support business and
maximize the shareholders’ value.

iii) Maintain an optimal capital structure.

iv) Compliance of financial covenants under the borrowing facilities.

The Company manages its capital structure keeping in view of:

i) Compliance of financial covenants under the borrowing facilities

ii) Changes in economic conditions

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

There have been no breach in the financial covenants of any borrowing facility in the current period. There
is no change in the objectives, policies or processes for managing capital over previous year.

To maintain the capital structure, the Company may vary the dividend payment to shareholders.

For the purpose of capital management, capital includes issued equity capital, and all other equity reserves
attributable to the equity holders of the Company and net debt includes total liabilities, comprising
interest bearing loans and borrowings, excluding any dues to subsidiaries or group companies less cash
and cash equivalents.

The Company monitors capital on the basis of the debt to capital ratio, which is calculated as interest¬
bearing debts adjusted with available cash and bank balances divided by total capital (equity attributable
to owners of the Company).

The funding requirement of the Company is primarily met through internal accruals and borrowings. The
net debt position is as under:

46. Financial risk management

The Company’s principal financial liabilities, other than derivatives, comprise of loans and borrowings, trade
and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The
Company’s principal financial assets include trade and other receivables, cash and cash equivalents and loans
that it derives directly from its operations. The Company also holds FVTPL current investments and enters into
derivative transactions.

The Company is exposed to market risk, credit risk, liquidity risk, commodity price risk and other price risk.
The Company’s senior management oversees the management of these risks under appropriate policies and
procedures.

i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market prices. Market risk comprises two types of risks, foreign exchange risk and interest
rate risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTPL
current investments and derivative financial instruments.

a) Foreign exchange risk

The Company is exposed to foreign exchange risk through its sales and purchases from overseas
in foreign currencies mainly in USD, EURO, JPY and CNY. The Company holds derivative financial
instruments such as foreign exchange forward contracts to mitigate the risk of changes in
exchange rates on foreign currency exposures. The exchange rate between the rupee and foreign
currencies has changed substantially in recent years and may fluctuate substantially in the future.
Consequently, the results of the company’s operations may be adversely affected as the rupee
appreciates/ depreciates against these currencies.

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Company’s exposure to the risk of
changes in market interest rates relates primarily to the Company’s long-term debt obligations
with floating interest rates. The Company manages its interest rate risk by having a balanced
portfolio of fixed and variable rate loans and borrowings. To manage this, the Company enters
into cross currency interest rate swaps, in which it agrees to exchange, at specified intervals, the
difference between fixed and variable rate interest amounts calculated by reference to an agreed-
upon notional principal amount.

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

Sensitivity

Variable interest rate loan are exposed to interest rate risk, impact on profit before tax / total equity
may be as follows:

(c) Treasury related credit risk

Credit risk on cash and cash equivalents and other deposits with the banks is limited as the Company
generally invests in deposits with banks with high credit ratings assigned by external credit rating
agencies, accordingly the Company considers that the related credit risk is low. Impairment on
these items is measured on 12- month expected credit loss basis.

Significant Increase in credit risk (SICR)

The Company considers a financial instrument to have experienced a significant increase in credit
risk when on any financial instrument, the payment is due more than 30 days beyond its contractual
payments.

iii) Liquidity risk

The Company’s objective is to maintain a balance between continuity of funding and flexibility through
the use of bank overdrafts and bank loans. Liquidity risk is managed by company’s established policy
and procedures made under liquidity risk management framework. The Company manages liquidity risk
by maintaining adequate reserves, banking facilities, and reserve borrowing facilities, by continuously
forecast and actual cash flows, and by matching the maturity profile of financial assets and liabilities.

The financial assets and liabilities have been appropriately disclosed in financial statements as current
and non current portion. The maturity period of non current financial assets and financial liabilities ranges
between 1 to 5 years except lease liabilities where period may vary as per respective lease agreements.

iv) Commodity risk

Commodity price risk is the financial risk on the Company's profitability upon fluctuations in the prices of
commodities since they are primarily driven by external market forces. Sharp fluctuations in commodity
prices can affect production costs, product pricing and earnings. This price volatility makes it imperative for
the Company to manage the impact of commodity price fluctuations across its value chain to effectively
manage its financial performance and profitability. To mitigate these risks, the Company employs
multiple levers, each chosen based on a cost benefit analysis and the extent of exposure to commodity
price fluctuations. These include assessing the feasibility of passing any adverse fluctuations onto
customers through price increases, continuously engaging in cost optimisation initiatives and process
improvement exercises. The Company also explores options such as localizing imports/ implementing
global sourcing strategies to ensure most cost effective sourcing. Based on the assessment by the
Company and after factoring the ability to optimise costs and pass on prices to customers, no individual
commodity is expected to have a significant adverse impact on the financial performance/profitability
beyond its materiality threshold approved by the Board.

v) Other price risks

The Company has deployed its surplus funds into various financial instruments including mutual funds.
The Company is exposed to NAV (net asset value) price risks arising from investments in these funds.
The value of these investments is impacted by movements in interest rates, liquidity and credit quality
of underlying securities. The price risk related to investment in mutual fund schemes is not significant
considering the relatively short tenure of the underlying portfolio of mutual fund schemes in which the
Company has invested.

Sensitivity

Investments in mutual funds are exposed to other price risks, impact on profit before tax / total equity
may be as follows:

47. Hedge accounting

i) Forwards contracts

The Company holds derivative financial instruments such as foreign exchange forward contracts to
mitigate the risk of changes in exchange rates on foreign currency exposures. The counter party for these
contracts is generally a bank or a financial institution. These derivative financial instruments are valued
based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or
indirectly observable in the market place.

The Company has designated foreign exchange forward contracts as cash flow hedges to mitigate the
risk of foreign exchange exposure on highly probable forecast cash transactions. The related hedge
transactions for balance lying in cash flow hedging reserve are expected to occur and reclassified in the
statement of profit or loss within 6 months.

Hedge effectiveness is determined at the inception of the hedge relationship. To ensure that an economic
relationship exists between the hedged item and hedging instrument, the Company matches the critical
terms of the hedged items and hedging instruments.

51. Summary of quarterly statements to banks

As disclosed in note no. 21 to the standalone financial statements, the Company has been sanctioned a working
capital limit in excess of Rs. 50.00 million by working capital consortium comprising of IDBI Bank (Lead Bank) ,
State Bank of India, Axis Bank, HDFC Bank, Citi Bank, HSBC Bank, DBS Bank and ICICI Bank, based on the security
of current assets. The quarterly returns/statements, in respect of the working capital limits have been filed by
the Company with the banks and such returns/statements are in agreement with the books of account of the
Company for the respective periods which were subject to audit/review. Below table represents the summary of
reconciliation of the quarterly statements filed by the Company with the banks:

53. The Government of India has notified the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code
on Social Security, 2020 and the Occupational Safety, Health, and Working Conditions Code, 2020 ("Labour
Codes") with effect from November 21, 2025 which consolidates 29 existing labour laws. Based on the draft
rules and FAQs issued by the ministry of labour and employment and best available information, the Company
has estimated the financial implications thereof and has made an additional provision of Rs. 237.42 million for
the year ended 31 March 2026. Considering the materiality, regulatory driven and non -recurring nature of the
impact, the Company has presented such incremental impact under "Exceptional item".

54. During the year ended 31 March 2024, the Company had acquired 62 % of equity share in SPR Takahata Precision
India Private Limited (formerly Takahata Precision India Private Limited) through its wholly owned subsidiary
SPR Engenious Limited. Further, the Company had provided following corporate guarantee in favour of the
bank to provide additional security against term loan granted by the bank:

Private Limited became wholly-owned subsidiaries (with SPR Auto Interior Solutions Private Limited
also classified as an unlisted material subsidiary), and SPR Auto Interior Solutions Chakan Private
Limited became a step-down subsidiary of the Company.

58. On 02 April 2026, the Company has received certificate from Ministry of Corporate Affairs (MCA) for
name change from Shriram Pistons & Rings Limited to SPR Auto Technologies Limited.

59. The Company has no transaction with companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956.

60. (i) No proceedings have been initiated or are pending against the Company for holding any

benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules
made thereunder.

(ii) The Company do not have any 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.

(iii) The Company has not entered into any scheme of arrangement which has an accounting
impact on current or previous financial year.

61. There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.

62. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial
year.

63. The Company is not declared willful defaulter by any bank or financial institution or government or
any government authority

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

65. During the year ended 31 March 2026, the Company has provided loans, made investment and given
guarantee to persons including its wholly owned subsidiary and its step down subsidiary pursuant
to provisions of section 186 (4) to be utilised by them for the purpose of its normal business activity.

55. During the year, the Company has invested Rs. 500.00 million in SPR Engenious Limited, its wholly-owned
subsidiary, by subscribing to 50.00 million equity shares of Rs. 10 each. During the previous year, the Company
has invested Rs. 2,300.00 million and Rs 200.00 million on 19 December 2024 and 04 March 2025 respectively in
SPR Engenious Limited (SEL), its wholly owned subsidiary (WOS) by ways of subscription to equity share capital
through right issue with the purpose of diversifying its product portfolio in the areas related to the automotive
segment.

56. On 07 March 2025, the Company has entered into a Share Purchase Agreement with existing shareholders of
Karna Intertech Private Limited ('Karna') to acquire 100% equity stake in Karna for Rs. 50.00 million. Accordingly,
the Company has acquired 100% equity shareholding in Karna on 01 April 2025 and Karna has become a wholly
owned subsidiary of the Company.

57. The Board of Directors of the Company, at its meeting held on 24 November, 2025, approved the acquisition
of 100% equity shares of SPR Auto Interior Lighting solutions Private Limited (formerly Antolin Lighting India
Private Limited ) and SPR Auto Interior Solutions Private Limited (formerly Grupo Antolin India Private Limited)
along with SPR Auto Interior Solutions Chakan Private Limited (formerly Grupo Antolin Chakan Private Limited),
the subsidiary of SPR Auto Interior Solutions Private Limited. A Share Purchase Agreement was executed
on 05 December 2025. The acquisition was completed on 08 January, 2026, resulting in the Company
acquiring 100% of SPR Auto Interior Lighting solutions Private Limited , 100% of SPR Auto Interior
Solutions Private Limited and ~99.99% of SPR Auto Interior Solutions Chakan Private Limited.
Consequently, SPR Auto Interior Lighting solutions Private Limited and SPR Auto Interior Solutions

66. In terms of SEBI circular No. SEBI/HO/DDHS/P/CIR/2021/613 dated 10 August 2021, as amended by SEBI circular
No. SEBI/HO/DDHS/DDHS-RACPOD1/ P/CIR/2023 /172 dated 19 October 2023, the Company does not meet all
the prescribed conditions to qualify as a 'Large Corporate’, hence, not classified as a Large Corporate as on 31
March 2026. Therefore, the disclosure requirements as per the said circulars are not applicable.

67. The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to
Rule 3(1) of the Companies (Accounts) Rules, 2014, inserted by the Companies (Accounts) Amendment Rules
2021 requiring companies, which uses accounting software for maintaining its books of account, shall only use
such accounting software which has a feature of recording audit trail of each and every transaction, creating
an edit log of each change made in the books of account along with the date when such change was made
and ensuring that the audit trail cannot be disabled. The new requirement is applicable with effect from the
financial year beginning on 1 April 2023. During the year, the audit trail (edit log) at the application level for the
accounting software were operating for all relevant transactions recorded in the software. Further, the audit trail
(edit logs) feature for any direct changes made at the database level was enabled w.e.f. 24 January 2025 for the
accounting software SAP ECC used for maintenance of books of accounts and was operating till 31 December
2025. During the year, w.e.f. 01 January 2026, the company has changed its accounting software from SAP ECC
to SAP Hana Rise which is on cloud. The audit trail (edit log) at application level is effective.

68. Figures of previous year have been regrouped/ reclassified, wherever necessary, to correspond with the figures of
the current period. The impact of such regrouping/ reclassification is not material to these standalone financial
statements.

The accompanying summary of accounting policies and significant explanatory notes form an integral part of
these standalone financial statements.