o. Provisions(Other than employee benefits)

General provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation. When the Company expects some or all of a provision to be reimbursed the expense relating to a provision
is presented in the statement of profit and loss net of any reimbursement. Provisions are determined by discounting the expected future
cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a
pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of
the discount is recognized as finance cost. Expected future operating losses are not provided for.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate,
the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a
finance cost.

Warranty provisions

Provision for warranty related costs are recognized when the product is sold or service provided and is based on historical experience.
The provision is based on technical evaluation/ historical warranty data and after weighting of all possible outcomes by their associated
probabilities. The estimate of such warranty related costs is revised annually. Where the effect of the time value of money is material,
the amount of a provision is the present value of the expenditure expected to be required to settle the obligation.

Contingent liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future events beyond the control of the company or a present obligation that arises from past
events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to
settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. The Company does not recognize a
contingent liability but discloses its existence in the standalone financial statements.

Contingent asset

Contingent asset is not recognised in financial statements since this may result in the recognition of income that may never be realised.
However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognized.

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

p. Employee benefits

(i) Short-term employee benefits

All employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee
benefits. These benefits include salaries and wages, bonus and ex-gratia. Short-term employee benefit obligations are measured
on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected
to be paid, if the Company has a present legal or constructive obligation to pay the amount as a result of past service provided by
the employee, and the amount of obligation can be estimated reliably.

(ii) Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity
and will have no legal or constructive obligation to pay further amounts. The Company makes specified monthly contributions to
the Regional Provident Fund Commissioner towards provident fund and employee state insurance scheme (‘ESI’). Obligations for
contributions to defined contribution plans are recognized as an employee benefit expense in the Standalone Statement of Profit
and Loss in the periods during which the related services are rendered by employees. If the contribution payable to the scheme
for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is
recognized as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due
for services received before the balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will
lead to, for example, a reduction in future payment or a cash refund.

(iii) Defined benefit plans

The Company operates a defined benefit gratuity plan, which requires contributions to be made to India First Life Insurance
Company Limited and LIC of India.

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides
for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an
amount based on the respective employee’s salary and the tenure of employment. Vesting occurs upon completion of five years
of service.

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s net obligation in
respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current
and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligation is performed annually by a qualified actuary using the projected unit credit method,
which recognizes each year of service as giving rise to additional unit of employee benefit entitlement and measure each unit
separately to build up the final obligation. The obligation is measured at the present value of estimated future cash flows. The
discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on
Government securities as at the Balance Sheet date, having maturity periods approximating to the terms of related obligations.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net
interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net
defined benefit liability), are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings
through OCI in the period in which they occur. Re- measurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognized in profit or loss on the earlier of:

• The date of the plan amendment or curtailment; and

• The date that the Company recognizes related restructuring costs.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognizes the
following changes in the net defined benefit obligation as an expense in the Statement of Profit and Loss:

• Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
settlements; and

• Net interest expense or income.

(iv) Other long term employee benefits
Compensated absences

The employees can carry-forward a portion of the unutilized accrued compensated absences and utilize it in future service
periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly
within twelve months after the end of the period in which the employees render the related service and are also not expected to
be utilized wholly within twelve months after the end of such period, the benefit is classified as a long-term employee benefit. The
Company records an obligation for such compensated absences in the period in which the employee renders the services that
increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit
method.

As per the compensated absence encashment policy, the Company does not have an unconditional right to defer the compensated
absence of employees, accordingly the entire compensated absence obligation as determined by an independent actuary has
been classified as current liability as at the period/ year end.

q. Financial instruments

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

(i) Recognition and initial measurement

Trade receivables and debt securities are initially recognized when they are originated. All other financial assets and financial
liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss
(‘FVTPL’), transaction costs that are directly attributable to its acquisition or issue.

(ii) Classification and subsequent measurement
Financial assets

On initial recognition, a financial asset is classified as measured at:

- Amortized cost;

- Fair Value through Other Comprehensive Income (‘FVOCI’) - debt instrument;

- FVOCI - equity investment; or

- FVTPL

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its
business model for managing financial assets.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

- the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently measured at
amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in
the profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to trade
and other receivables. Company has recognized financial assets viz. security deposit, trade receivables, employee advances at
amortized cost.

A debt instrument is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

- the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets; and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.

Financial assets included within the FVTOCI category are measured initially as well as at each reporting date at fair value.
Fair value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest
income, impairment losses & reversals and foreign exchange gain or loss in the Standalone Statement of Profit and Loss. On
de-recognition of the asset, cumulative gain or loss previously recognized in OCI is re-classified from the equity to Standalone
Statement of Profit and Loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR
method.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent
changes in the investment’s fair value in OCI (designated as FVOCI - equity investment). This election is made on an investment-
by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This
includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that
otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would otherwise arise.

Investments in subsidiaries

Investments in subsidiaries are carried at cost less accumulated impairment losses, if any. Where an indication of impairment
exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal
of investments in subsidiaries, the difference between net disposal proceeds and the carrying amounts are recognized in the
Standalone Statement of Profit and Loss.

Financial assets: Business model assessment

The Company makes an assessment of the objective of the business model in which a financial asset is held at a portfolio
level because this best reflects the way the business is managed and information is provided to management. The information
considered includes:

- the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether
management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile,
matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realising
cash flows through the sale of the assets;

- how the performance of the portfolio is evaluated and reported to the Company’s management;

- the risks that affect the performance of the business model (and the financial assets held within that business model) and
how those risks are managed; and

- the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations
about future sales activity.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured
at FVTPL.

Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest

For the purpose of this assessment ‘Principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is
defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during
a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit
margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the
contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could
change the timing or amount of contractual cash flows such that it would not meet this condition. In making the assessment, the
Company considers:

- contingents events that would change the amounts or timings of cash flows;

- terms that may adjust the contractual coupon rate, including variable interest rate features;

- prepayment and extension features; and

- terms that limit the Company’s claim to cash flows from specified assets (e.g. non - recourse features).

A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially
represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional
compensation for early termination of the contract. Additionally, for a financial asset acquired at a significant discount or premium to
its contractual amount, as feature that permits or requires prepayment at an amount that substantially represents the contractual par
amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination)
is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.

Financial assets: Subsequent measurement and gains and losses

Financial liabilities: Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified
as held- for- trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured
at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are
subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses
are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

(iii) Derecognition
Financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or
it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of
ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks
and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognized on its balance sheet, but retains either all or
substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognized.

Financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The
Company also derecognizes a financial liability when its terms are modified and the cash flows under the modified terms are
substantially different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference
between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized
in profit or loss.

(iv) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the
Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to
realise the asset and settle the liability simultaneously.

(v) Derivative financial instruments
Derivative accounting

Initial recognition and subsequent measurement

The company uses derivative financial instruments, such as forward currency contracts. Such derivative financial instruments are
initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at
fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value
is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss.

Hedge Accounting

Initial recognition and subsequent measurement

The company designates (Cash Flow Hedge):

• Intrinsic Value of Call Spread option to hedge foreign currency risk for repayment of Principal Amount in relation to FCNR
Loan availed in Euro.

• Interest Rate Swap (Floating to Fixed) to hedge interest rate risk in respect of Floating rate of interest in relation to FCNR
Loan.

The company documents at the inception of the hedging transaction the economic relationship between hedging instruments and
hedged items including whether the hedging instrument is expected to offset changes in cash flows of hedged items. The company
documents its risk management objective and strategy for undertaking various hedge transactions at the inception of each hedge
relationship.

Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised
in the other comprehensive income in cash flow hedging reserve within equity, limited to the cumulative change in fair value of the
hedged item on a present value basis from the inception of the hedge.

The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, within other income or expense.
When option contracts are used to hedge foreign currency risk, the company designates only the intrinsic value of the option
contract as the hedging instrument.

Gains or losses relating to the effective portion of the change in intrinsic value of the option contracts are recognised in the cash
flow hedging reserve within equity. The changes in the time value of the option contracts that relate to the hedged item (‘aligned
time value’) are recognised within other comprehensive income in the costs of hedging reserve within equity.

Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss. The time
value of an option used to hedge represents part of the cost of the transaction.

When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting,
any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remains in equity until the forecast
transaction occurs. When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs
of hedging that were reported in equity are immediately reclassified to profit or loss within other income or expense.

Impairment of financial assets

The Company recognizes loss allowances for expected credit losses on:

- Financial assets measured at amortized cost; and

- Financial assets measured at FVOCI - financial assets.

At each reporting date, the Company assesses whether financial assets carried at amortized cost and financial assets at FVOCI
are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated
future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit - impaired includes the following observable data:

For recognition of impairment loss on 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 recognizing impairment loss allowance based on 12 month ECL.

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all
cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the cash flows
that the Company expects to receive).

Presentation of allowance for expected credit losses in the balance sheet

Loss allowance for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For
debt securities at FVOCI, the loss allowance is charged to the Standalone Statement of the Profit and Loss and is recognized in
OCI.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect
of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income
that could generate sufficient cash flows to repay the amounts subject to the write- off. However, financial assets that are written
off could still be subject to enforcement activities in order to comply with Company’s procedures for the recovery of amount due.

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for the measurement and recognition of
impairment loss on the following financial assets and credit risk exposure:

a. Financial assets that are financial assets, and are measured at amortized cost e.g., deposits and advances.

b. Trade receivables that result from transactions that are within the scope of Ind AS 115.

c. 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 recognizes
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.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument.
The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the
reporting date.

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.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the Standalone
Statement of Profit and Loss. This amount is reflected under the head ‘other expenses’ in the Standalone Statement of Profit and
Loss. The balance sheet presentation for various financial instruments is described below:

• Financial assets measured as at amortized cost and contractual revenue receivables: ECL is presented as an allowance,
i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying
amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying
amount.

• Loan commitments and financial guarantee contracts: ECL is presented as a provision in the balance sheet, i.e. as a liability.
For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of shared
credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk
to be identified on a timely basis.

The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e., financial assets which are
credit impaired on purchase/ origination.

r. Recognition of interest expense

Interest expense is recognized using effective interest method.

The ‘effective interest rate’ is the rate that exactly discounts estimated future cash payments through the expected life of the financial
instrument to:

- the amortized cost of the financial liability.

In calculating interest expense, the effective interest rate is applied to the amortized cost of the liability.

s. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and cheques on hand, which are subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash at bank, cash on hand and cheques on hand
as they are considered an integral part of the Company’s cash management.

t. Cash flow statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

u. Dividend distribution

Dividends paid are recognised in the period in which the interim dividends are approved by the Board of Directors of the Company, or
in respect of the final dividend when approved by shareholders of the Company.

v. Corporate Social Responsibility (“CSR”) expenditure

CSR expenditure incurred by the Company is charged to the Standalone Statement of the Profit and Loss.

w. Expenditure

Expenses are accounted for on the accrual basis and charged to standalone statement of profit and loss.

x. Exceptional items

Exceptional items refer to items of income or expense within the Standalone Statement of Profit and Loss from ordinary activities
which are non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the
performance of the Company.

y. Equity share capital

Incremental costs directly attributable to the issue of equity shares are recognised as a deduction from equity. Income tax relating to
transaction costs of an equity transaction is accounted for in accordance with Ind AS 12.

z. Research and development

Expenditure on research and development activities is recognized in the Standalone Statement of Profit and Loss as incurred.

Development expenditure is capitalized as part of cost of the resulting intangible asset only if the expenditure can be measured reliably,
the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and
has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred.
Subsequent to initial recognition, the asset is measured at cost less accumulated amortisation and any accumulated impairment losses,
if any.

3 Recent pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended 31 March 2025, MCA has notified Ind AS - 117 Insurance
Contracts and amendments to Ind AS 116 - Leases relating to sale and leaseback transactions. The Company has reviewed the new
pronouncements and based on its evaluation has determined that it does not have any significant impact in its financial statements.

4 Rounding off amounts

All amounts disclosed in the consolidated financial statements and notes have been rounded off to the nearest crores (up to two decimal
places) as per the requirements of Schedule III of the Act unless otherwise stated.

The Company’s capital management objectives are:

The capital structure of the Company consists of debt, cash and cash equivalents and equity attributable to equity shareholders of the
Company which comprises issued share capital (including premium) and accumulated reserves disclosed in the Statement of Changes
in Equity. The Company’s capital management objective is to achieve an optimal weighted average cost of capital while continuing to
safeguard the Company’s ability to meet its liquidity requirements (including its commitments in respect of capital expenditure) and repay
loans as they fall due. The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend pay¬
ment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which
is debt divided by total equity. The Company’s policy is to keep an optimum gearing ratio. The Company includes within debt, interest
bearing loans and borrowings.

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables. The
main purpose of these financial liabilities is to finance the Company’s operations and to support its operations. The Company’s principal
financial assets other than derivatives comprise investments, loans given, trade and other receivables and cash and cash equivalents that
derive directly from its operations. The Company also enters into foreign exchange derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the mitigation of these
risks. The Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified,
measured and managed in accordance with the Company’s policies and risk objectives. All derivative activities for risk management
purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company’s policy that
no trading in foreign exchange derivatives for speculative purposes will be undertaken. The policies for managing each of these risks,
which are summarized below:

39A Market risk:

Market risk is the risk that future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk
comprises of two types of risks namely currency risk and interest rate risk. The objective of the market risk management is to manage
and control market risk exposure within acceptable parameters while optimising the return.
a. Foreign currency risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s
operating activities (when revenue or expense is denominated in a foreign currency), investments & borrowing in foreign currency,
etc. The Company’s exposure arises mainly on import (of raw material and capital items), export (of finished goods) and foreign
currency borrowings. The Company follows a policy of matching of import and export exposures (natural hedge) to reduce the net
exposure in any foreign currency. Whenever the natural hedge is not available or is not fully covering the foreign currency exposure of
the Company, management uses certain derivative instruments to manage its exposure to the foreign currency risk. Foreign currency
transactions are managed within approved policy parameters.

* Amounts have been rounded off to zero
** Refer note 5A for sale and leaseback transaction.

All transactions with related parties are made on the terms equivalent to those that prevail at arm’s length transactions and within the
ordinary course of business. Outstanding balances at respective year ends are unsecured.

The Company has given comfort letters to banks for funds raised by its subsidiary companies, namely Rico Jinfei Wheels Limited
for t 10.00 crores (31 March 2024 : t 10.00 crores). As on 31 March 2025, the subsidiary company has utilised funds in against of
said letter of comfort for t 6.77 crores (31 March 2024 : t 7.22 crores).

The Company has given corporate guarantee for the funds raised by its subsidiary company, namely AAN Engineering Industries
Limited for t 5.00 crores (31 March 2024 : t 5.00 crores). As on 31 March 2025, the subsidiary company has utilised funds in against
of said corporate guarantee for t 0.00 crores (31 March 2024 : t 0.75 crores).

46 Transfer pricing

The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing
legislation under sections 92-92F of the Income-tax Act, 1961. Since the law requires existence of such information and documentation
to be contemporaneous in nature, the Company is in the process of updating the documentation of the international transactions entered
into with the associated enterprises from 1 April 2024 and expects such records to be in existence before the due date of filing of income
tax return. The management is of the opinion that its international transactions are at arm’s length so that the aforesaid legislation will not
have any impact on the Standalone Financial Statements, particularly on the amount of tax expense and that of provision for taxation.

47 (a) Segment Reporting

The Company is engaged in the business of manufacturing and assembling of automotive components. The Company’s Chief Operating
Decision Maker (CODM) is the Managing Director. The CODM evaluates the Company’s performance and allocates resources based on an
analysis of various performance indicators by industry classes. All operating segments’ operating results are reviewed regularly by 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. Further, the economic environment in which the company
operates is significantly similar and not subject to materially different risk and rewards.

The operating segment of the Company is identified to be ‘Automotive components” as the CODM reviews business performance at an overall
Company level as one segment.

The geographical revenue is allocated based on the location of the customers. Accordingly, as the company operates in a single business and
geographical segment, the reporting requirements for primary and secondary disclosures under Indian Accounting Standard - 108 Operating
Segment have not been provided in the standalone financial statements. The financial information for these reportable segments has been
provided in Consolidated Financial statements as per Ind-AS 108 - Operating Segments.

Major Customer

There are two customers who contribute to 10 per cent or more of the Company’s revenue from operations.

The Company’s contracts with customers includes promises to transfer products and rendering of services to the customer. The
Company assesses the products/services promised in identifies distinct performance obligations in the contract. Identification of distinct
performance obligation involves judgement to determine the deliverables and the ability of the customer to benefit independently from
such deliverables. The Company uses judgement to determine an appropriate standalone selling price for a performance obligation.
The Company allocates the transaction price to each performance obligation on the basis of the relative standalone selling price of
each distinct product or service promised in the contract. The Company exercises judgement in determining whether the performance
obligation is satisfied at a point in time or over a period of time. The Company considers indicators such as how customer consumes
benefits of significant risks and who controls the asset as it is being created or existence of enforceable right to payment for performance
to date and alternate use of such product or service, transfer of significant risk and rewards to the customer, acceptance of delivery by
the customer etc. Based on the above assessment performance obligation is satisfied at point in time. Company have payment terms of
30 days to 65 days in case of domestic customers and 90 days in case of export customers.

Contract assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are classified as
unbilled receivables (only act of invoicing is pending) when there is an unconditional right to receive cash, and only passage of time is
required, as per contractual terms.

The contract liabilities primarily relate to the advance consideration received from customers for procurement of goods, for which
revenue is recognised point in time. This will be recognised as revenue when the control of the goods will be transferred, which is
expected to occur during the next year.

Contract costs relate directly to a contract that the entity has specifically identified which includes the costs relating to generate or
enhance resources of the entity that will be used in satisfying (or in continuing to satisfy) performance obligations in the future. Further,
An contract cost recognised is amortised on a systematic basis that is consistent with the transfer to the customer of the goods or
services to which the asset relates.

50 Events after Balance sheet date

There are no reportable subsequent events after the balance sheet date.

51 Additional regulatory information not disclosed elsewhere in the financial information:

(i) No proceeding has been initiated or 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 has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.

(iii) The Company (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016) does not have more
than one CIC (the same is not required to be registered with RBI as not being Systemically Important CIC ).

(iv) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both
during the current or previous year.

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

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

financial year.

(vii) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(viii) The Company does not have any charge which is yet to be registered with ROC beyond the statutory period.

(ix) The Company has not advanced or provided loan to or invested funds in any entities including foreign entities (Intermediaries)

or to any other persons, with the understanding that the intermediary shall:

(x) The Company has not advanced or provided loan to or invested funds in any entities including foreign entities (Intermediaries)
or to any other persons, with the understanding that the intermediary shall:

i. 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

ii. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(xi) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

i. 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

ii. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(xii) The Company has not undertaken 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).

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

For B S R & Co. LLP Rico Auto Industries Limited

Chartered Accountants

ICAI Firm Registration No. 101248W/W-100022

Shashank Agarwal Arvind Kapur Kaushalendra Verma Rajiv Kumar Miglani

Partner Chairman, CEO & Whole-time Director Whole-time Director

Membership No. 095109 Managing Director DIN : 02004259 DIN : 06873155

DIN: 00096308

Rakesh Kumar Sharma Ruchika Gupta

Chief Financial Officer Company Secretary
M. No. F-6456

Place : Gurugram Place : Gurugram

Date : May 27, 2025 Date : May 27, 2025