m) Provisions and Contingencies

Provisions are recognised when the Company
has a present legal or constructive obligation
as a result of past events, 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.

If the effect of 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.

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 embodying
economic benefits or the amount of such
obligation cannot be measured reliably. When
there is a possible obligation or a present
obligation in respect of which likelihood of
outflow of resources embodying economic
benefits is remote, no provision or disclosure is
made.

Provisions and contingencies are reviewed at
each Balance Sheet date.

n) Cash and Cash Equivalents

Cash and Cash equivalents for the purpose
of Cash Flow Statement comprise cash and
cheques in hand, bank balances and demand
deposits with banks where the original
maturity is three months or less that are readily
convertible to known amounts of cash and
which are subject to an insignificant risk of
changes in value.

o) Employee Benefits

Short Term Employee Benefits:

All employee benefits payable wholly within
twelve months of rendering the service are
classified as short term employee benefits
and they are recognized as an expense at
the undiscounted amount in the Statement
of Profit & Loss of the year in which related
service is rendered.

Post-Employment Benefits:

I. Defined Contribution plans (Provident
Fund):

Contributions under Defined Contribution
Plans payable in keeping with the related
schemes are recognised as expenses for the
period in which the employee has rendered
the service.

II. Defined Benefit plans (Gratuity Fund):

a. The liability or asset recognised in the
balance sheet in respect of defined benefit
plans is the present value of the defined
benefits obligation at the end of the
reporting period less the fair value of plan
assets. The defined benefit obligation is
calculated annually by actuaries using the
Projected Unit Credit Method as per Ind AS
19 at the year end.

b. The present value of the defined benefit
obligation is determined by discounting
the estimated future cash outflows by
reference to market yields at the end of
the reporting period on Government
bonds that have terms approximating to
the terms of the related obligations.

c. The net interest cost is calculated by
applying the discount rate to the net
balance of the defined benefit obligation
and the fair value of plan assets. This cost
is included in Employees Benefits Expense
in the statement of profit and loss.

d. Re-measurement gains and losses arising
from experience adjustments and changes
in actuarial assumptions are recognised in
the period in which they occur, directly
in Other Comprehensive Income. They
are included in retained earnings in the
statement of changes in equity.

e. Changes in the present value of the
defined benefit obligation resulting from
plan amendments or curtailments are
recognised immediately in the profit or
loss as past service cost.

Other employee benefit obligations
(Compensated Absences):

The liabilities for earned leave and sick leave
are expected to be settled wholly within 12
months after the end of the period in which
the employees render the related service. They
are measured annually by actuaries as the
present value of expected future payments
to be made in respect of services provided
by employees up to the end of the reporting
period using the projected unit credit method
as per Ind AS 19. The benefits are discounted
using the market yields on Government
bonds at the end of the reporting period that
have terms approximating to the terms of
the related obligation. Remeasurements as a

result of experience adjustments and changes
in actuarial assumptions are recognized in the
statement of profit and loss. Entitlements to
annual leave (earned leave) are recognized
when they accrue to employees. They can
either be availed or encashed subject to
a restriction on the maximum number of
accumulation of leave.

p) Employee Stock Options Scheme/ Share
based payments

The grant date fair value of equity settled share
based payment awards granted to employees
is recognized as an employee expense, with
a corresponding increase in equity. The total
amount to be expensed is determined by
reference to the fair value of the options
granted.

The total expense is recognized over the
vesting period, which is the period over which
all of the specified vesting conditions are to
be satisfied. At the end of the vesting period,
the entity revises its estimates of the number
of options that are expected to vest based on
the non market vesting and service conditions.
It recognizes the impact of the revision to
original estimates, if any, in the Statement of
Profit or Loss, with a corresponding adjustment
to equity.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

q) Research and Development

Expenditure on research is recognized as
an expense when it is incurred. Expenditure
on development which does not meet the
criteria for recognition as an intangible asset is
recognized as an expense when it is incurred.

Items of property, plant and equipment
and acquired Intangible Assets utilized for
Research and Development are capitalized and
depreciated in accordance with the policies
stated for Property, Plant and Equipment and
Intangible Assets.

r) Borrowing Cost

Borrowing cost includes interest, amortization
of ancillary costs incurred in connection with
the arrangement of borrowings and exchange
differences arising from foreign currency
borrowings to the extent they are regarded as
an adjustment to the interest cost.

General and specific borrowing costs that
are directly attributable to the acquisition,
construction or production of a qualifying asset
are capitalised during the period of time that
is required to complete and prepare the asset
for its intended use or sale. Qualifying assets
are assets that necessarily take a substantial
period of time to get ready for their intended
use or sale.

Other borrowing costs are expensed in the
period in which they are incurred.

s) Events after Reporting date

If the Company receives information after
the reporting period, but prior to the date
of approved for issue, about conditions that
existed at the end of the reporting period, it
will assess whether the information affects
the amounts that it recognises in its separate
financial statements. The Company will
adjust the amounts recognised in its financial
statements to reflect any adjusting events
after the reporting period and update the
disclosures that relate to those conditions
in light of the new information. For non¬
adjusting events after the reporting period,
the Company will not change the amounts
recognised in its financial statements but
will disclose the nature of the non-adjusting
event and an estimate of its financial effect, or
a statement that such an estimate cannot be
made, if applicable.

t) Earnings Per Share

Basic earnings per share are calculated by
dividing the net profit or loss for the period
attributable to equity shareholders by the
weighted average number of equity shares
outstanding during the period.

Partly paid equity shares are treated as a
fraction of an equity share to the extent that
they are entitled to participate in dividends
relative to a fully paid equity share during
the reporting period. The weighted average
number of equity shares outstanding during
the period is adjusted for events such as share
split that have changed the number of equity
shares outstanding, without a corresponding
change in resources.

For the purpose of calculating diluted earnings
per share, the net profit or loss for the period
attributable to equity shareholders are divided
with the weighted average number of shares

outstanding during the year after adjustment
for the effects of all dilutive potential equity
shares.

u) Dividend Distribution to Equity-holders

The Company recognises a liability to pay
final dividend to equity holders when the
distribution is authorised and the distribution
is no longer at the discretion of the Company.
As per the corporate laws in India, a
distribution is authorised when it is approved
by the shareholders. A corresponding amount
is recognised directly in equity.

v) Business Combination

Business combination involving entities
or businesses under common control are
accounted in accordance with the scheme
approved by National Company Law Tribunal
where in Pooling of Interests Method of
accounting is used as laid down in Appendix
C of Ind AS 103. Accordingly, the Company
will record the assets and liabilities of the
Transferor entity at their carrying amounts as
reflected in consolidated financial statements
of the Holding Company. No adjustments are
made to reflect fair values or recognize any
new assets or liabilities. The identity of the
reserves is preserved and the difference, if any,
between the consideration and the net assets
acquired is adjusted in capital reserve.

The standalone financial statements are
restated for comparative period, as if the
amalgamation had occurred from the
beginning of the earliest period presented.
However, if common control over the
Transferor and Transferee Company came
into existence after that date, the prior period
information shall be restated only from the
date of the Common Control. Refer Note 52.

w) Exceptional Items

Exceptional items are those items that
management considers, by virtue of their
size or incidence (including but not limited
to impairment charges, divestments and
acquisition and restructuring related costs),
should be disclosed separately to ensure
that the financial information allows an
understanding of the underlying performance
of the business in the year, so as to facilitate
comparison with prior periods. Such items
are material by nature or amount to the year's
result and require separate disclosure in
accordance with Ind AS. The determination as
to which items should be disclosed separately
requires a degree of judgement. The details of
exceptional items are set out in Note 7.

3.1 Key Accounting Estimates & Judgements

The preparation of the Company's financial
statements requires the 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.

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:

a. Income taxes

Deferred tax assets are recognised for items
allowable on payment basis in income tax
computation / unused tax losses to the
extent is probable that taxable profit will be
available against which the losses can be
utilised. Significant management judgement is
required to determine the amount of deferred
tax assets that can be recognised, based upon
the likely timing and the level of future taxable
profits together with future tax planning
strategies including amount expected to be
paid / recovered for uncertain tax positions
(Refer Note 11 & 12).

b. Property, Plant and Equipment and Useful
Life of PPE and Intangible Assets

Management reviews its estimate of useful
lives of property, plant and equipment at each
reporting date, based on the expected utility
of the assets. Uncertainties in these estimates
relate to technical and economic obsolescence
that may change the utility of property, plant
and equipment. Also Refer note 6(A).

c. Defined Benefit Plans

Post-employment benefits represents
obligation that will be settled in future
and require assumptions to project benefit
obligations. Post-employment benefits

accounting is intended to reflect the
recognition of future benefits cost over the
employee's approximate service period, based
on the terms of plans and the investment
and funding decisions made. The accounting
requires the Company to make assumptions
regarding variables such as discount rate, rate
of compensation increase and future mortality
rates. Changes in these key assumptions
can have a significant impact on the defined
benefit obligations, funding requirements and
benefit costs incurred. Refer Note 43.

d. Fair value measurement of Financial
Instruments

When the fair values 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 model,
which involve various judgements and
assumptions.

e. Provisions and Contingencies

Legal proceedings covering a range of matters
are pending against the Company. Due to the
uncertainty inherent in such matters, it is often
difficult to predict the final outcomes. The cases
and claims against the Company often raise
difficult and complex factual and legal issues
that are subject to many uncertainties and
complexities, including but not limited to the
facts and circumstances of each particular case
and claim, the jurisdiction and the differences
in applicable law, in the normal course of
business. The Company consults with legal
counsel and certain other experts on matters
related to litigations. The Company accrues a
liability when it is determined that an adverse
outcome is probable and the amount of the
loss can be reasonably estimated. In the event
an adverse outcome is possible or an estimate
is not determinable, the matter is disclosed.

f. Impairment of Investments in Subsidiaries
— Notes 2.3(h) and Notes 2.3 (j)

Determining whether the investments
in subsidiaries are impaired requires an
estimate of the value in use of investments. In
considering the value in use, the management
anticipates the future projections, order
book, operating margins, discount rates and
other factors of the underlying businesses/
operations of the subsidiaries.

3.2 New and amended standards

The Company applied for the first-time certain
standards and amendments, which are effective
for annual periods beginning on or after 1 April
2024. The Company has not early adopted any
standard, interpretation or amendment that has
been issued but is not yet effective.

(a) 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 1 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.

(b) Amendments to Ind AS 116 Leases - Lease
Liability in a Sale and Leaseback

The MCA notified the Companies (Indian

Accounting Standards) Second Amendment
Rules, 2024, which amend Ind AS 116, Leases,
with respect to Lease Liability in a Sale and
Leaseback.

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 recognise 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 1 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.

3.3 Climate - related matters

The Company considers climate-related matters
in estimates and assumptions, where appropriate.
This assessment includes a wide range of possible
impacts on the Company due to both physical and
transition risks. Even though the Company believes
its business model and products will still be viable
after the transition to a low-carbon economy,
climate-related matters increase the uncertainty
in estimates and assumptions underpinning
several items in the financial statements. Even
though climate-related risks might not currently
have a significant impact on measurement, the
Company is closely monitoring relevant changes
and developments, such as new climate-related
legislation. The items and considerations that are
most directly impacted by climate-related matters
are:

- Useful life of property, plant and equipment. When
reviewing the residual values and expected useful
lives of assets, the Company considers climate-
related matters, such as climate-related legislation
and regulations that may restrict the use of assets
or require significant capital expenditures.

Additional Information:

a) The Company has given corporate guarantees on behalf of M/s. Ramkrishna Casting Solution Limited (Formerly known
as JMT Auto Limited) amounting to ? 19,800.00 lakhs (March 31, 2024: ? 10,000.00 lakhs), M/s. Ramkrishna Forgings
LLC, USA amounting to ? 4,273.50 lakhs which is equivalent to $ 50.00 lakhs (March 31,2024: ? 2,919.18 lakhs which is
equivalent to $ 35.00 lakhs) and M/s. Ramkrishna Forgings Mexico S.A. de C.V, Mexico amounting to ? 5,683.76 lakhs
which is equivalent to $ 66.50 lakhs (March 31,2024: ? Nil). (Refer note 35A & 39)

b) The Company has given bank guarantees on behalf of M/s. Ramkrishna Titagarh Rail Wheels Limited amounting to ?
3,750 lakhs (March 31, 2024: ? 3,750.00 lakhs). (Refer note 35A & 39)

c) A Joint Venture company named Ramkrishna Titagarh Rail Wheels Limited ("RTRWL') was incorporated on June 09,
2023 having Ramkrishna Forgings Limited ("RKFL") and Titagarh Rail Systems Limited (TRSL") as Joint Venturers.
RTRWL will be engaged in manufacturing and supply of forged wheels under long term agreement under Aatma
Nirbhar Bharat.

d) On July 21,2023, the Board of Directors of the Company had approved acquisition of Multitech Auto Private Limited
('MAPL') and Mal Metalliks Private Limited ('MMPL', a wholly owned subsidiary of MAPL). On August 23, 2023, the
Company had acquired 100% equity in MAPL including it's wholly owned subsidiary MMPL at a consideration
of ? 20,238.65 lakhs. The Company has also incurred direct expenses amounting to ? 278.16 lakhs on such
acquisition.

e) The Board of Directors of the Company in its meeting dated December 14, 2022 had approved an investment to
acquire upto 51% voting rights of Tsuyo Manufacturing Pvt Ltd ("TMPL"), a Make-In-India start-up company engaged
in powertrain solutions for electric vehicles and had invested ? 1,000.00 lakhs via Optionally Convertible Debentures
(OCD) convertible into equity shares in financial year 2023-24, at the option of the Company, in accordance with a pre¬
determined conversion formula. In the current year, the Company entered into a settlement agreement to redeem
the OCDs as per the prescribed schedule and the company has reclassified part of the investment as current based on
prescribed schedule as per the agreement. The Company has redeemed 30,000 OCDs amounting to ? 300.00 lakhs in
the current year and expects to redeem around 55,000 OCDs amounting to ? 550.00 lakhs in the financial year 2025¬
26.

f) The Board of Directors of the Company had approved disinvestment of 100% equity stake held in Globe All India
Services Limited, a subsidiary company to Yatra Online Limited for an aggregate consideration of ? 12,800.00 lakhs
against which the entire consideration had been received in the current year. Exceptional item of ? 10,287.33 lakhs
represents net gain on sale of investments in the aforesaid subsidiary (after netting off related expenses amounting to
? 602.85 lakhs and cost of acquisition of investment in subsidiary amounting to ? 1,909.82 lakhs).

g) On July 24, 2024, the Board of Directors of the Company had approved acquisition of Resortes Libertad, S.A. de C.V.
('RSLV'). On August 12, 2024, the Company had acquired 100% equity in RSLV at a consideration of ? 346.92 lakhs. The
name of Resortes Libertad, S.A. de C.V. had been subsequently changed to Ramkrishna Forgings Mexico S.A. DE. C.V.
The Company has further invested ? 2,106.85 lakhs for the year ended March 31,2025 resulting in total investment of
? 2,453.77 lakhs (excluding corporate gurantee fees) as at March 31, 2025. Refer note 39.

$ The Company had given advances to M/s. Ramkrishna Forgings Limited Employee Welfare Trust ("the trust") which would be recovered
from the trust on issue of the shares, under Ramkrishna Forgings Limited - Employee Stock Option Plan 2023 (RKFL ESOP Scheme 2023),
to the employees in terms of the scheme. The amount of advance receivable from the trust as at March 31, 2025 is ? 1,022.93 lakhs
(March 31,2024: ? Nil). (Refer note 16(f) and 39).

# Includes ? 489.15 lakhs from Jharkhand Bidyut Vitra Nigam Ltd. ('JBVNL'). In compliance with the Hon'ble Supreme Court order for Civil
appeal no. 6145 of 2010, JBVNL has revised the electricity bill for the excess amount paid by the Company. JBVNL did not pay the interest
as per the Regulation. The Company had moved to Vidyut Upvogta Sikayat Niwaran Forum ("VUSNF") for the non-payment of interest
and was awarded a favourable order by VUSNF. Due to non-compliance of the order of VUSNF by JBVNL, the Company approached the
Jharkhand State Electricity Regulatory Commission ("JSERC") for compliance of the order of VUSNF by JBVNL.

* Includes receivable from subsidiaries of the Company ? 378.80 lakhs (March 31,2024 : ? 72.29 lakhs), being interest income on loan.
(Refer note 39)

^A The Company has complied with provisions of section 62 of the Companies Act, 2013, as applicable, in respect of the preferential
allotment of shares during the year. The funds raised, have been used for the purposes for which the funds were raised. The Company
has not made any private placement of shares /fully or partially or optionally convertible debentures during the year under audit and
hence reporting under section 42 of the Companies Act is not applicable.

c) Pursuant to approval of shareholders in Extra-Ordinary General Meeting (EGM) dated October 12, 2022, the Company,
on October 26, 2022, had allotted 46,00,000 warrants, each convertible into one equity share of face value of ?2/- each,
on preferential basis at an issue price of ? 205/- each upon receipt of 25% of the issue price (i.e. ? 51.25 per warrant) as
warrant subscription money amounting to ? 2,357.50 Lakhs.

Subsequently, pursuant to approval of Board of Directors on September 30, 2023 for allotment of equity shares of face
value of ? 2/- each upon conversion of warrants, the Company has allotted 46,00,000 equity shares (face value of ?2/-
each) on exercise of 46,00,000 warrants upon receipt of balance amount aggregating to ? 7,072.50 lakhs (being 75%
of the issue price of ?205/- each) from the warrant holders on exercise of their rights of conversion into equity shares
in compliance of section 42 & other related provisions of Companies Act 2013.

d) During the FY 2023-24, the Company has issued & allotted, 1,62,86,644 equity shares of ? 2/- each in Qualified
Institutions Placement ('QIP') at an issue price of ? 614/- per share (including securities premium of ? 612/- per share)
aggregating to ? 99,999.99 lakhs. The issue was made through QIP in terms of the Securities and Exchange Board of
India (Issue of Capital and Disclosure Requirements) Regulation, 2018 ( SEBI Regulation) as amended, Sec 42, Sec 62 &
other related provisions of Companies Act 2013.

Pursuant to the allotment of equity shares in the QIP, the paid up equity share capital of the Company has increased
from ? 3,289.79 lakhs comprising of 16,44,89,535 equity shares to ? 3,615.52 lakhs comprising of 18,07,76,179 equity
shares.

The Company had incurred expenses amounting to ? 2,183.35 lakhs towards issuance of equity shares which have
been debited to securities premium account.

The net proceeds from the issue has been utilized towards repayment / pre-payment, in full or in part, of certain
outstanding borrowings availed by our Company, funding of working capital requirements of the Company and
general corporate purpose.

e) The Board of Directors of the Company at its meeting held on October 24, 2024 and January 17, 2025 has allotted
52,460 and 2,01,965 equity shares of ? 2/- each at the grant price of ? 80/- per share(including the premium of ? 78/-
per share) and ? 556/- per share (including the premium of ? 554/- per share) to the Ramkrishna Forgings Limited

Employee Welfare Trust ('RKFL ESOP Trust') under the Ramkrishna Forgings Limited - Employee Stock Option Plan
2015 ('RKFL ESOP Scheme 2015') and Ramkrishna Forgings Limited - Employee Stock Option Plan 2023 ('RKFL ESOP
Scheme 2023') respectively. The Company has complied with provisions of section 62 of the Companies Act, 2013, as
applicable, in respect of the preferential allotment of shares during the year. The Company has not made any private
placement of shares /fully or partially or optionally convertible debentures during the year under section 42 of the
Companies Act.

f) The Company had given advances to M/s. Ramkrishna Forgings Limited Employee Welfare Trust ("the trust") which
would be recovered from the trust on issue of the shares, under Ramkrishna Forgings Limited - Employee Stock Option
Plan 2015 (RKFL ESOP Scheme 2015) and RKF Limited Employee Stock Option Scheme 2023 (RKFL ESOP Scheme 2023),
to the employees in terms of the scheme. The amount of advance receivable from the trust as at March 31, 2025 is ?
1,022.93 lakhs (March 31, 2024: ? Nil) which has been disclosed under 'Other Financial Assets - Others' (refer note 10,
32 and 39)

g) Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of ? 2/- per share (March 31, 2024: ? 2/- each).
Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian
rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting.

In 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.

h) The Company being ultimate holding company, there are no shares held by any other holding, ultimate holding
company and their subsidiaries / associates. Details of shareholders holding more than 5% shares in the Company is
given as below:

The above maturity is based on the total principal outstanding gross of the processing fees and charges of ? 543.59 lakhs.

18.3. The Company has been sanctioned working capital limits in excess of Rs. five crores in aggregate from banks during
the year / previous year on the basis of securities as mentioned in note 18.1 above. Pending completion of the
independent investigation being carried out by the external agencies, the Company is unable to determine as to
whether the quarterly returns/statements filed with such banks are in agreement with the unaudited books of
accounts.

The Company do not have sanctioned working capital limits in excess of Rs. five crores in aggregate from financial
institutions during the year on the basis of security of current assets of the Company.

18.4 The Company's bank loan agreements contain compliance with certain financial ratios for the year ended March
31, 2025 and March 31, 2024. The Company has satisfied all the debt covenants for the year ended March 31, 2025,
except for debt covenant in respect of loan from one bank which has been classified as current in accordance the
terms of the loan agreement.

18.5 Term loans were applied for the purpose for which the loans were obtained.

F. Terms and conditions of transactions with related parties
Sales to related parties

The Company enters into sales transactions with related parties where prices are agreed at cost to the Company plus
pre-agreed mark-up. Transactions entered during the year were in ordinary course of business and are on arm's length
basis. In case of scrap sales to related parties, the same is sold at average market price and are on arm's length.

Trade receivables outstanding balances are unsecured, interest free and require settlement in cash.

Purchases of goods

The Company enters into purchase transactions with related parties where prices are agreed at cost to related party
plus mark-up for finished good and semi finished goods. Raw materials are valued at cost. Transactions entered during
the year were in ordinary course of business and are on arm's length basis. In case of scrap purchases to related parties,
the same is purchase at average market price and are on arm's length.

Trade payables outstanding balances are unsecured, interest free and require settlement in cash.

Services (including Job work services)

It is done on the same terms as applicable to third parties in an arm's length transaction and in the ordinary course of
business.

The outstanding balances are unsecured, interest free and require settlement in cash.

Purchase of Property, Plant & Equiptment (PPE) from the related party

The purchase of Plant & Machinery was made at value as per as per the valuation certificate shared by the third party
valuer / at value as per books of accounts. Transactions entered during the year were in ordinary course of business
and are on arm's length basis.

The consideration was fully paid at the reporting date.

Loans to subsidiaries

The loan is unsecured, interest bearing and repayable after 5 years to the date of disbursement. The loan can be
prepaid without any prepayment penalty. Transactions entered during the year were in ordinary course of business
and are on arm's length basis.

Loans to Director (KMP)

The Company operates loan scheme providing loan to all employees as per the policy approved by the Board. The
loans are repayable as per the approved policy and carrying interest rate @ 8% p.a. The loans are unsecured.

Corporate Guarantees

The Company has given guarantee against the term loan availed by the subsidiary company from banks (except for
Ramkrishna Forgings Mexico S.A. de C.V, Mexico). Loan availed by the subsidiary are fully secured against the assets of
the subsidiary.

The Company has given guarantee for Ramkrishna Forgings Mexico S.A. de C.V, Mexico for the rent payable by the
subsidiary company .

The Company will be required to make specified payment to the bank / landlord if the subsidiary fails to make payment
when due in accordance to the terms of the agreement.

Shortfall undertaking

The Company has given undertaking against the term loan availed by the joint venture company (JV) from banks.
Loan availed by the JV are fully secured against the assets of the JV.

The Company will be required to make specified payment to the bank if the JV fails to make payment when due in
accordance to the terms of the agreement.

Notes:

# Excludes leave encashment and gratuity which is based on actuarial valuation provided on overall Company basis.

## Includes expenses receivable of ? Nil as on March 31,2025 (March 31, 2024: ? 231.42 lakhs)

### Ramkrishna Forgings LLC, USA wholly owned subsidiary of Ramkrishna Forgings Limited sales figure including
foreign currency fluctuation.

### Ramkrishna Forgings Mexico S.A. de C.V., Mexico, Wholly owned subsidiary of Ramkrishna Forgings limited (w.e.f
August 13, 2024) sales figure including foreign currency fluctuation.

$ Naresh Jalan, Managing Director have opted not to take Leave encashment / Gratuity benefit from the Company and
accordingly not accounted for in the books.

$$ Chaitanya Jalan, Whole-time Director of the Company, have opted not to take Leave encashment from the
Company and accordingly not accounted for in the books.

$$$ Dividend paid to Mr. Alok Kedia ? Nil (March 31, 2024: ? 150.00)

%% Excess Remuneration of ? 131.52 lakhs paid to Mr. Naresh Jalan & Excess Remuneration of ? 311.48 Lakhs paid to
Mr. Lalit Kumar Khetan is recoverable, subject to shareholders approval, in accordance with Companies act 2013. Also
refer note 48.

*& Commission will be payable after the approval of the share holders in accordance with Companies act 2013.

* The Independent Directors have been considered as Key Management Personnel only for above reporting as per the
requirements of Ind AS 24 - Related Party Disclosures.

** The Outstanding short term loan in the book of subsidiary M/s. Ramkrishna Forgings LLC, USA as on March 31,
2025 is ? 2,905.98 lakhs which is equivalent to $ 3.4 million

(March 31, 2024: ? 2,919.18 lakhs which is equivalent to $3.50 million).

The Outstanding performance obligation for payment of lease rent for manufacturing facilty in mexico in the book
of subsidiary Ramkrishna Forgings Mexico S.A. de C.V., Mexico, as on March 31, 2025 is ? 5,683.76 lakhs which is
equivalent to $6.65 million (March 31, 2024: ? Nil).

The Outstanding financial obligation in the book of subsidiary Ramkrishna Casting Solutions Limited, (formally known
as JMT Auto Limited) as on March 31, 2025 is ? 19,064.00 lakhs

(March 31, 2024: ? 6,113.28 Lakhs).

*** Expenses receivable includes amount of ? Nil for JMT & ? Nil for MAPL & MMPL, (March 31, 2024: ? 100.03 lakhs for
JMT & ? 30.42 lakhs for MAPL & MMPL) paid as legal fees to Khaitan and Co LLP., on behalf of the subsidiaries.

**** The bank guarantee given by the company to a third party on behalf of the subsidiary.

! Investment including Fees for Corporate Guarantee ? 17.54 lakhs for Ramkrishna Forgings LLC, USA, ? 15.37 lakhs for
Ramkrishna Forgings Mexico S.A. de C.V., Mexico, ? 335.98 lakhs for Ramkrishna Casting Solutions Limited, (formerly
known as JMT Auto Limited), ? 512.72 lakhs for Ramkrishna Titagarh Rail Wheels Limited. (March 31, 2024: ? Nil)

The fair values of 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. Methods and
assumptions used to estimate the fair values are consistent with those used for the year ended March 31, 2024.

The management has assessed that the fair values of trade receivables, cash and bank balances, loans, other financial
assets, Trade Payables, Borrowings (including interest accrued), lease liabilities and Other Financial Liabilities approximate
to their respective carrying amounts largely due to the short-term maturity of these instruments. Further, management has
also assessed the carrying amount of certain loans bearing floating interest rates which are a reasonable approximation
of their respective fair values and any difference between their carrying amounts and fair values is not expected to be
significant.

For financial assets carried at fair value, the carrying amounts are equal to their respective fair values.

B. Fair value hierarchy:

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

(i) Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Fair valuation method and assumptions:

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and
assumptions are used to estimate the fair values

i) The fair value of derivative financial instruments is determined based on observable market inputs including currency
spot and forward rates, yield curves, currency volatility etc. These derivatives are estimated by using the pricing models,
where the inputs to those models are based on readily observable market parameters, contractual terms, period to
maturity, maturity parameters and foreign exchange rates. These models do not contain a high level of subjectivity as
the valuation techniques used do not require significant judgement, and inputs thereto are readily observable from
market rates. The said valuation has been carried out by the counter party with whom the contract has been entered
with and management has evaluated the credit and non-performance risks associated with the counterparties and
believes them to be insignificant and not requiring any credit adjustments

ii) There has been no transfer between Level 1, Level 2 and Level 3 during the above periods.

iii) In determining fair value measurement, the impact of potential climate-related matters, including legislation, which
may affect the fair value measurement of assets and liabilities in the financial statements has been considered. These
risks in respect of climate-related matters are included as key assumptions where they materially impact the measure
of recoverable amount, These assumptions have been included in the cash-flow forecasts in assessing value-in-use
amounts.

At present, the impact of climate-related matters is not material to the Company's financial statements.

41 Financial Risk Management Objectives and Policies:

The Company's principal financial liabilities comprises borrowings, trade and other payables and other financial
liabilities. The main purpose of these financial liabilities is to finance and support the operations of the Company. The
Company's principal financial assets include trade and other receivables, loans and cash and cash equivalents that
derive directly from its operations.

The Company's business activities are exposed to a variety of risks including liquidity risk, credit risk and market risk.
The Company seeks to minimize potential adverse effects of these risks on its financial performance and capital.
Financial risk activities are identified, measured and managed in accordance with the Company's policies and risk
objectives which are summarized below and are reviewed by the senior management.

(A) Credit risk

Credit risk refers to risk of financial loss to the Company if customers or counterparties fail to meet their contractual
obligations. The Company is exposed to credit risk from its operating activities (mainly trade receivables).

(i) Credit risk management

(a) Trade Receivables

Customer credit risk is managed by the respective departments subject to the company's established policies,
procedures and controls relating to customer credit risk management. Customer credit risk is managed by the
Company through its established policies and procedures which involve setting up credit limits based on credit
profiling of individual customers, credit approvals for enhancement of limits and regular monitoring of important
developments viz. payment history, change in credit rating, regulatory changes, industry outlook etc. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in refer note
8. Outstanding receivables are regularly monitored and an impairment analysis is performed at each reporting date on
an individual basis for each major customer. On account of adoption of Ind AS 109, the Company uses expected credit
loss model to assess the impairment loss or reversal thereof.

(b) Deposits and financial assets (Other than trade receivables):

Credit risk from balances with banks is managed by the Company's treasury department in accordance with the
Company's policy.

(B) Liquidity Risk

Liquidity risk implies that the Company may not be able to meet its obligations associated with its financial liabilities.
The Company manages its liquidity risk on the basis of the business plan that ensures that the funds required for
financing the business operations and meeting financial liabilities are available in a timely manner and in the currency
required at optimal costs. The Management regularly monitors rolling forecasts of the Company's liquidity position to
ensure it has sufficient cash on an ongoing basis to meet operational fund requirements.

Additionally, the Company has committed fund and non-fund based credit lines from banks which may be drawn
anytime based on Company's fund requirements. The Company endeavours to maintain a cautious liquidity strategy
with positive cash balance and undrawn bank lines throughout the year.

(C) Market Risk

Market risk is the risk that the fair value of future cash flow of financial instruments may fluctuate because of changes
in market conditions. Market risk broadly comprises three types of risks namely foreign currency risk, interest rate
risk and price risk (for commodities) . The above risks may affect the Company's income and expense and profit. The
Company's exposure to and management of these risks are explained below.

(i) Foreign currency risk

The Company operates in international markets and therefore is exposed to foreign currency risk arising from foreign
currency transactions. The exposure relates primarily to the Company's operating activities (when the revenue or
expense is denominated in foreign currency) and borrowings in foreign currencies. Majority of the Company's foreign
currency transactions are in USD and Euro, while the rest are in GBP and SGD. The imports are only in respect of capital
goods, and are denominated in USD, Euro, SGD and JPY. The risk is measured through forecast of highly probable
foreign currency cash flows.

The risk of fluctuations in foreign currency exchange rates on its financial liabilities including trade and other
payables etc, which are mainly in US Dollars , are mitigated through the natural hedge, as Company's export sales are
predominantly in US dollars and such economic exposure through trade and other receivables in US dollars provide
natural alignment. Hence, a reasonable variation in the Foreign exchange rate would not have much impact on the
profit / equity of the Company.

(iii) Commodity Price Risk

Commodity price risk results from changes in market prices for raw materials, mainly steel in the form of rounds and
billets which forms the largest portion of Company's cost of sales.

The principal raw materials for the Company products are alloy and carbon steel which are purchased by the Company
from the approved list of suppliers. Most of the input materials are procured from domestic vendors. Further, a
significant portion of the Company's volume is sold based on price adjustment mechanism which allows for recovery
of the changed raw material cost from its customers.

42 Capital management

For the purposes of the Company's capital management, capital includes issued capital, free reserves and borrowed
capital less reported cash and cash equivalents and current investment. The primary objective of the Company's
capital management is to maintain an efficient capital structure to reduce the cost of capital, support the corporate
strategy and to maximise shareholder's value. The Company's policy is to borrow primarily through banks to maintain
sufficient liquidity. The Company also maintains certain undrawn committed credit facilities to provide additional
liquidity. These borrowings, together with cash generated from operations are utilised for operations of the Company.
The Company monitors capital on the basis of cost of capital.

43. Employee Benefits
a) Gratuity plan
Funded scheme

The Company has a defined benefit gratuity plan for its employees ("Gratuity Scheme"). The gratuity plan is governed
by the Payment of Gratuity Act, 1972. Under the Act, every employee who has completed five years of service is entitled
to specific benefit. The level of benefits provided depends on the employee's length of service and salary at retirement
age. Every employee except chairman and managing director who has completed five years or more of service gets
a gratuity on departure at 15 days salary (last drawn) for each completed year of service as per the provisions of the
Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

Unfunded scheme

The Employee gratuity fund scheme was unfunded for one unit of the company in the previous year. The present value
of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises
each period of service as giving rise to additional units of employee benefits entitlement and measures each unit
separately to build up the final obligation.

As per Ind AS 19 "Employee Benefits', the disclosures of Employee Benefits as defined in the Standard are given
below:

Statement of Profit and Loss :

Net employee benefits expense (recognised in Employee Cost)

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

Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an
increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability
(as shown in financial statements).

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 used to determine the present value of obligation will have a bearing on the plan's liability.

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

Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as
amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the
maximum limit on gratuity of ? 20.00 lakhs).

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.

b) Provident Fund:

Contribution towards provident fund are recomputed as expenses in the statement of profit and loss. The Company has
a defined contribution plan. Under the defined contribution plan, provident fund is contributed to the Government
administered provident fund. The Company has no further contractual nor any constructive obligation, other than the
contribution payable to the provident fund. The expense recognised during the period towards defined contribution
plan is ? 996.08 lakhs (March 31,2024: ? 825.45 lakhs)

44. Details of the Loan given, Investment made and Guarantee given covered under section 186(4) of the Companies Act,
2013

Details of loan given, Investment made and Guarantee given are provided under the respective heads.

47. The Company carries out physical verification of inventory once in a year at the time of preparing annual financial
statements. During the annual physical verification for the Financial Year ended March 31, 2025, it was noted that
Work-In-Progress (WIP) book stock was higher than the physical stock in certain cases.

At the request of the statutory auditors, the management of the Company convened an Audit Committee who
appointed Independent External Agencies to initiate a joint fact-finding study for ascertaining the discrepancy in
Inventory and reasons thereof. The Interim Joint Fact-Finding Report of the Independent External Agencies confirmed
that certain erroneous entries / non- recording of rejections at plant resulted in overstatement of WIP / raw material
/ scrap inventory in the Financial Year ended March 31, 2025 and previous Financial Year ended March 31, 2024 by ?
22,052.43 lakhs and ? 5,022.26 lakhs respectively.

The independent external agencies are still in the process of completing their joint fact finding as regards the root
cause analysis of the above and final report will be submitted by them within the statutory timelines under the
Companies Act, 2013.This matter has been commented upon by the Statutory Auditors in their audit report. The
management does not expect any further significant accounting impact on the books of accounts arising out of the
balance part of joint fact-finding being carried out by the independent external agencies.

The Company has recorded the impact of the discrepancy in the physical verification in its books of accounts for the
year ended March 31, 2025 and restated previous financial year comparative as per IND AS 8 - Accounting Policies,
Changes in Accounting Estimates and Errors as follows:

The Company is in the process of strengthening its systems & internal control including enhancing the frequency, scope

and coverage of physical verification and scope of the Internal Audit.

48. Pursuant to the provisions of section 197, 198 and other applicable provisions of Companies Act, 2013 read with
schedule V of the said act, as amended, the Company at the ensuing annual general meeting will be seeking the
approval from the shareholders of the Company for the excess managerial remuneration paid/payable ? 693.00 lakhs
for the period from April 1, 2024 to March 31,2025, by way of special resolution.

49. Events after the reporting period Refer note 45 for details related to proposed interim dividend declared for the year
ended March 31, 2025 and March 31,2024 and refer note 47.

50. The Company has no core investment company as part of the Group.

51. The Company has used accounting software SAP and Tally 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 for all relevant transactions
recorded in the software, except that audit trail feature is not enabled for certain changes made using privileged/
administrative access rights to the SAP application and the underlying HANA database. Further no instance of audit trail
feature being tampered with was noted in respect of accounting software(s) where the audit trail has been enabled.
Additionally, the audit trail of prior year has been preserved by the Company as per the statutory requirements for
record retention to the extent it was enabled and recorded in the respective year.

52. Business Combination - Acquisition of ACIL Limited

The Board of Directors of the Ramkrishna Forgings Limited at its meeting held on July 24, 2024, accorded its consent
for Scheme of Amalgamation for merger ("Scheme") of ACIL Limited ("ACIL"), a wholly owned subsidiary of the
Company which is into business of manufacturing engine component and auto parts for automobiles companies, with
Ramkrishna Forgings Limited ("Company") pursuant to Sections 230 to 232 of the Companies Act, 2013, rules framed
thereunder and other applicable provisions of the Companies Act, 2013. During the current year ended March 31,2025,
the Scheme has been approved by the Hon'ble National Company Law Tribunal, New Delhi ('NCLT') vide Order dated
March 27, 2025. Consequently, the Company has given accounting effect of the scheme in the financial statements of
year ended March 31, 2025 in accordance with the accounting treatment prescribed under the scheme and Appendix
C of Ind AS 103 - "Business combination of entities under common control" Accordingly, the comparative standalone
financial statements for the year ended March 31, 2024, included in this statement have also been restated to give
effect of the scheme.

Accounting treatment : Below is the summary of accounting treatment which has been given effect to in these
standalone financial statements, in accordance with accounting treatment prescribed in the scheme

(i) All assets and liabilities of the transferor Company are recorded at the respective book values as appearing in the
consolidated financial statement of transferee Company.

(ii) the identity of reserves of transferor company has been preserved and recorded in the same form and at carrying
amount as appearing in the consolidated financial statement of the transferee company.

(iii) The inter-company balances and transaction between the transferor company, transferee company have been
eliminated.

(iv) The Company has restated the financial information as at and for year ended March 31, 2024 as if the business
combination has occurred from February 19, 2024 i.e. from the date of acquisition of ACIL, in accordance with
accounting Appendix C to Ind-AS 103 - 'Business Combinations of entities under Common Control' and the
schemes.

a. Includes impact of deferred tax adjustment amounting to ? 2,276.34 lakhs on fair value gain, arising on business
combination, adjusted in Goodwill as per Ind AS - 12 Income Taxes.

ACIL had carry forward business loss and unabsorbed depreciation which is available for set-off against the tax
profits of the Company under income tax laws and accordingly, the Company has recognise the defer tax asset in
the current financial year. Refer note 11.

53. Other Statutory Information

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

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

(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 has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(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 has 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 has not 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

(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

For and on behalf of the Board of Directors of
Ramkrishna Forgings Limited

As per our report of the even date

For S.R.Batliboi & Co. LLP For S K Naredi & Co. (Naresh Jalan) (Chaitanya Jalan)

ICAI Firm Registration No. 301003E/E300005 ICAI Firm Registration No. 003333C Managing Director Wholetime Director

Chartered Accountants Chartered Accountants DIN: 00375462 DIN: 07540301

Per Shivam Chowdhary Per Abhijit Bose (Lalit Kumar Khetan) (Rajesh Mundhra)

Partner Partner Wholetime Director & CFO Company Secretary

Membership No. 067077 Membership No. 056109 DIN: 00533671 & FCA: 056935 ACS: 12991

Place: Kolkata Place: Kolkata

Dated: May 31,2025 Dated: May 31,2025