p. 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 Standalone 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 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 where it is
either not probable that an outflow of resources
will be required to settle or a reliable estimate
of the amount cannot be made. A contingent
liability also arises in extremely rare cases where
there is a liability that cannot be recognized
because it cannot be measured reliably.

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
Standalone 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 year end..

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 (unless it is a trade
receivable without a significant financing
component) or financial liability is initially
measured at fair value plus or minus, for an
item not at FVTPL, transaction costs that
are directly attributable to its acquisition or
issue. A trade receivable without a significant
financing component is initially measured at
the transaction price.

(ii) Classification and subsequent
measurement

Financial assets

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

- Amortized cost;

- Fair Value through Other Compre¬
hensive 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.

Debt instruments 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 or at
FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would
otherwise arise.

Equity investments

All equity investments in scope of Ind AS 109
are measured at fair value. Equity instruments
which are held for trading and contingent
consideration recognised by an acquirer
in a business combination to which Ind AS
103 applies are classified as at FVPL. For all
other equity instruments, the Company may
make an irrevocable election to present in
other comprehensive income subsequent
changes in the fair value. The Company
makes such election on an instrument by¬
instrument basis. The classification is made
on initial recognition and is irrevocable.

If the Company decides to classify an
equity instrument as at FVOCI, then all fair
value changes on the instrument, excluding
dividends, are recognised in the OCI. There
is no recycling of the amounts from OCI
to the Standalone Statement of Profit and

Loss, even on sale of investment. However,
the Company may transfer the cumulative
gain or loss within equity.

Equity instruments included within the FVTPL
category are measured at fair value with
all changes recognised in the Standalone
Statement of Profit and Loss.

Investments in joint ventures

Investments in joint ventures 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 joint ventures, the difference
between net disposal proceeds and the
carrying amounts are recognized in the
Standalone Statement of Profit and Loss.

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;

• 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)

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

The Company uses derivative instruments
such as foreign exchange forward contracts
and currency swaps to hedge its foreign
currency and interest rate risk exposure.
Embedded derivatives are separated
from the host contract and accounted
for separately if the host contract is not a
financial asset and certain criteria are met.

Derivatives are initially measured at fair
value. Subsequent to initial recognition,
derivatives are measured at fair value and
changes therein are generally recognized in
profit and loss.

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 -
debt instruments.

At each reporting date, the Company
assesses whether financial assets carried
at amortized cost and debt instruments
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
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 debt
instruments, 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.

s. Expenditure

Expenses are accounted for on the accrual basis.

t. 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.

u. Research and development

Expenditure on research 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.

v. Recognition of dividend income,
interest income or expense

Dividend income is recognised in profit or loss on
the date on which the Company’s right to receive
payment is established.

Interest income or expense is recognised using
the effective interest method.

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

- the gross carrying amount of the financial
asset; or

- the amortised cost of the financial liability.

In calculating interest income and expense, the
effective interest rate is applied to the gross
carrying amount of the asset (when the asset is
not credit-impaired) or to the amortised cost
of the liability. However, for financial assets that

have become credit-impaired subsequent to
initial recognition, interest income is calculated
by applying the effective interest rate to the
amortised cost of the financial asset. If the asset
is no longer credit-impaired, then the calculation
of interest income reverts to the gross basis.

w. Standard issued but not yet effective

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 March 31, 2025, MCA has
notified Ind AS - 117 Insurance Contracts and
amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to
the Company w.e.f. April 1, 2024. 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.

1. During the year ended 31 March 2025, the Company entered into share purchase agreement on 27 March 2025 for
the sale of its entire 50% stake (dis-investment) in the Joint Venture namely, Jinyoung Sandhar Mechatronics Private
Limited. The Company completed the sale transaction and received an amount of Rs 668.44 lacs on 15 April 2025 and
accordingly, the carrying value of Company’s investment of Rs 670.57 lacs (Rs 1,336.88 lacs less impairment allowance
of Rs 666.31 lacs) has been recognised under Assets held for sale.

2. During the year ended 31 March 2025, the Board of Directors has decided to sell the assets of Peenya plant which was
available for sale in their present conditions. The asset held for sale was measured at lower of cost and fair value less
cost to sell i.e., Rs. 2,699.31 lacs.

3. During the year ended 31 March 2024, the Board of Directors has decided to sell the assets of Mysore plant which was
available for sale in their present conditions. The asset held for sale was measured at lower of cost and fair value less
cost to sell i.e., Rs. 83.09 lacs. The asset was sold during the year, resulting in a gain on disposal of Rs. 541.29 lacs ,
which has been recognized under "Other income” in the statement of profit or loss.

* Impairment testing of goodwill

For the purposes of impairment testing, goodwill is allocated to the Cash Generating Unit (CGU) which represents the lowest
level at which the goodwill is monitored for internal management reporting purposes.

The recoverable amount of the cash generating unit was based on its value in use. The value in use of this unit was determined
to be higher than the carrying amount and an analysis of the calculation’s sensitivity towards change in key assumptions
did not identify any probable scenarios where the CGU recoverable amount would fall below their carrying amount.

Value in use was determined by discounting the future cash flows generated from the continuing use of the CGU. The
calculation was based on the following key assumptions:

i. The anticipated annual revenue growth and margin included in the cash flow projections are based on past experience,
actual operating results and the 5-year business plan in all periods presented.

ii. The terminal growth rate ranges from 2% to 3% representing management view on the future long-term growth rate.

iii. Discount rate ranging from 8% to 10% for all periods presented was applied in determining the recoverable amount of
the CGU. The discount rate was estimated based on past experience and companies average weighted average cost
of capital.

The values assigned to the key assumptions represent the management’s assessment of future trends in the industry
and based on both internal and external sources.

*Notes:

1. During the year ended 31 March 2025, the Company entered into share purchase agreement on 27 March 2025 for
the sale of its entire 50% stake (dis-investment) in the Joint Venture namely, Jinyoung Sandhar Mechatronics Private
Limited. The Company completed the sale transaction and received an amount of Rs 668.44 lacs on 15 April 2025 and
accordingly, the carrying value of Company’s investment of Rs 670.57 lacs (Rs 1,336.88 lacs less impairment allowance
of Rs 666.31 lacs) has been recognised under Assets held for sale.

2. During the year ended March 31, 2025, the Company conducted an impairment review of its investment in equity
shares of Sandhar Whetron Electronics Private Limited. Based on the updated assessment, the recoverable amount of
the investment, determined using the value-in-use method, exceeded its carrying amount. As a result, the Company
has reversed the impairment loss of Rs. 304.33 lakhs that was previously recognized during the earlier years.

3. During the year ended 31 March 2024, the Company performed an impairment assessment of its investment in
equity shares and preference shares of Jinyoung Sandhar Mechatronics Private Limited to compute the fair value of
its investment. Based on management’s assessment, as the fair value of the investment was lower than the carrying
amount of the investment, an impairment charge of Rs. 555.95 Lacs was recognized in the Standalone Statement of
Profit and Loss as an exceptional item. As at 31 March 2024, the total impairment allowance pertaining to Jinyoung
Sandhar Mechatronics Private Limited is Rs 666.31 Lacs.

4. During the year ended 31 March 2024, the Company has acquired 12,05,000 equity shares (equivalent to 20.08%
of total paid up share capital) of Sandhar Ascast Private Limited (formerly known as Sandhar Tooling Private Limited)
(subsidiary company) at Rs 41 per equity share.

Rights, preferences and restrictions attached to equity shares

The Company has one class of equity shares having par value of Rs.10 per share (31 March 2024: Rs.10 per share). Each holder
of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees.

The Board of Directors at its Meeting held on 23 May 2024, had recommended a final dividend @ 32.5% i.e. Rs. 3.25 per
equity share, which has been approved by shareholders in Annual General Meeting held on 24 September 2024. The same
has been paid.

The Board of Directors at its Meeting held on 22 May 2025, has recommended a final dividend @ 35% i.e. Rs. 3.50 per equity
share. The dates of the book closure for the entitlement of such final dividend and Annual General Meeting shall be decided
and informed in due course of time.

In the event of liquidation of the Company, the share 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 share holders.

30. Gratuity and other post-employment benefit plans

A. Defined contribution plan

The Company makes contributions, determined as a specified percentage of employee salaries, towards Provident
Fund, National pension scheme and Employee state insurance scheme ('ESI’) which are collectively defined as defined
contribution plan. The Company has no obligations other than to make the specified contributions. The contributions are
charged to the Standalone Statement of Profit and Loss as they accrued.

B. Defined benefit plan

The Company has a defined benefit gratuity plan for its employees, governed by the Payment of Gratuity Act, 1972. Every
employee who has rendered at least five years of continuous service gets a gratuity on departure at the rate of fifteen
days of last drawn salary for each completed year of service or part thereof in excess of 6 months. The scheme is funded
with insurance companies in the form of qualifying insurance policies. Gratuity benefits are valued in accordance with the
Payment of Gratuity Act, 1972.

The most recent actuarial valuation of present value of the defined benefit obligation for gratuity were carried out as at 31
March 2025. The present value of the defined benefit obligations and the related current service cost and past service cost,
were measured using the Projected Unit Credit Method.

* It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending
resolution of the respective proceedings as it is determinable only on receipt of judgements / decisions pending with
various forums/ authorities.

Based on the status of cases and as advised by Company’s tax/legal advisors, wherever applicable, the management
believes that the Company has strong chance of success and hence no provision against matters disclosed in "Claims
against the Company not acknowledged as debts” are considered necessary.

Note A:

Guarantee given by the Company:

To facilitate grant of financing facilities to the Company’s joint ventures and subsidiaries, the Company has given corporate
guarantees to banks. As at year end, the outstanding corporate guarantee/stand by-letter of credits/ bank guarantees so
given amounts to Rs. 40,335.17 (31 March 2024: Rs. 27,199.69).

The Company has issued guarantees of Rs 762.92 (31 March 2024: Rs 157.84) to its vendors.

The following methods and assumptions were used to estimate the fair values:

Long-term fixed-rate and variable-rate receivables/borrowings are evaluated by the Company based on parameters such
as interest rates, specific country risk factors and individual creditworthiness of the customer, allowances are taken into
account for the expected credit losses of these receivables.

The fair value of unquoted instruments, is calculated by arriving at intrinsic value of the investee. The fair value of loans
from banks and other financial liabilities, obligations under finance leases, as well as other non-current financial liabilities is
estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining
maturities.

Discount rates used in determining fair value:

The interest rates used to discount estimated future cash flows, where applicable, are based on the discount rate that
reflects the issuer’s borrowing rate as at the end of the reporting period.

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most
relevant data available. In addition, the Company internally reviews valuation, including independent price validation for
certain instruments.

36. Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial statements that are

(a) recognised and measured at fair value and

(b) measured at amortised cost and for which fair values are disclosed in the standalone financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its
financial instruments into three levels prescribed under the accounting standard.

All financial instruments for which fair value is recognised or disclosed are categorised with in the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

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

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Company has an established control framework with respect to the measurements of fair values. This includes a valuation
team and has overall responsibility for overseeing all significant fair value measurements and reports directly to the Chief
Financial Officer. The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third
party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses
the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind
AS, including the level in the fair value hierarchy in which the valuations should be classified.

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.

37. Financial risk management objectives and policies

The Company is primarily engaged in the manufacturing and assembling of automotive components such as lock-set,
mirrors and various sheet metal components including cabins for two wheelers, four wheelers and off road vehicle industry.
The Company’s principal financial liabilities, comprises loans and borrowings, trade and other payables and finance lease
obligation. The main purpose of these financial liabilities is to support the Company’s operations. The Company’s principal
financial assets include investments in equity, employee advances, trade and other receivables, security deposits, cash and
short-term deposits that derive directly from its operations.

The Company has exposure to the following risks arising from financial instruments

- Market risk (see (b));

- Credit risk (see (c)); and

- Liquidity risk (see (d)).

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

a) Risk management framework

The Company’s activities make it susceptible to various risks. The Company has taken adequate measures to address
such concerns by developing adequate systems and practices. The Company’s overall risk management program
focuses on the unpredictability of markets and seeks to manage the impact of these risks on the Company’s financial
performance.

The Company’s senior management oversee the management of these risks and advises on financial risks and the
appropriate financial risk governance framework for the Company. The board of directors of the Company provides
assurance to the shareholders that the Company’s financial risk activities are governed by appropriate policies and
procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies
and risk objectives.

The Company’s risk management policies are established to identify and analyse the risks faced by the company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies are reviewed
regularly to reflect changes in market conditions and Company’s activities. The Company, through its training and
management standards and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations.

The Company’s audit committee oversees how management monitors compliance with the Company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the
Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and
ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of
hedge accounting in the financial statements.

b) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises following types of risk: interest rate risk, currency risk, price risk, and commodity
risk. Financial instruments affected by market risk include loans and borrowings, investment, deposits and advances.

The sensitivity analyses in the following sections relate to the position as at 31 March 2025 and 31 March 2024. The
sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of floating to fixed interest
rates of the debt and the proportion of financial instruments in foreign currencies are all constant in place at 31 March
2025.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post¬
retirement obligations; provisions.

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

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

c) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the
Company’s long-term debt obligations with fixed interest rates.

Exposure to interest rate risk

The interest rate profile of the Company’s interest bearing financial instruments as reported to management is as follows:

Equity price risk

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

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables),
including foreign exchange transactions and other financial instruments.

Trade receivables

Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date
of statements of financial position whether a financial asset or a Company of financial assets is impaired. The Company
recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing
transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 months
expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset
has increased significantly since initial recognition.

Trade receivables of Rs. 46,798.83 lacs as at 31 March 2025 (31 March 2024: Rs 40,243.22 lacs) forms a significant part of
the financial assets carried at amortised cost, which is valued considering provision for allowance using expected credit
loss method. In addition to the historical pattern of credit loss, we have considered the likelihood of increased credit risk.
This assessment is not based on any mathematical model but an assessment considering the nature of segment, impact
immediately seen in the demand outlook of these segments and the financial strength of the customers in respect of
whom amounts are receivable.

The Company’s exposure to customers is diversified and some customer contributes more than 10% of outstanding
accounts receivable as of 31 March 2025 and 31 March 2024 however there was no default on account of those customers
in the past. The Company has payment terms in range of 30 days to 120 days with its customers.

Before accepting any new customer, the Company assesses the potential customer’s credit quality and defines credit
limits to customer. Limits and scoring attributed to customers are reviewed on periodic basis.

The Company performs credit assessment for customers on an annual basis and recognizes credit risk, on the basis
lifetime expected losses and where receivables are due for more than six months.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at
the reporting date was:

(a) Financial assets for which loss allowance is measured using 12 months Expected Credit Losses (ECL)

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Corporate finance department
in accordance with the Company’s policy. Investments of surplus funds are made only in schemes of alternate
investment fund/or other appropriate avenues including term and recurring deposits with approved counterparties
and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company’s
Board of Directors on an annual basis. The limits are set to minimise the concentration of risks and therefore mitigate
financial loss through counterparty’s potential failure to make payments.

The Company places its cash and cash equivalents and term deposits with banks with high investment grade ratings,
limits the amount of credit exposure with any one bank and conducts ongoing evaluation of the credit worthiness of
the banks with which it does business. Given the high credit ratings of these banks, the Company does not expect
these banks to fail in meeting their obligations. The maximum exposure to credit risk for the components of the
balance sheet at 31 March 2025 and 31 March 2024 is represented by the carrying amount of each financial asset.

The Company’s policies is to provide financial guarantees only for subsidiaries and joint ventures. At 31 March 2025
and 2024, the Company has issued guarantee to certain bank in respect of credit facilities granted to subsidiaries
and joint ventures.

d) Liquidity risk

Liquidity risk refers to the risk that the company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The
Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities,
by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets
and liabilities.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of
bank overdrafts, buyers credit and bank loans. The Company assessed the concentration of risk with respect to
refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding
and debt maturing within 12 months can be rolled over with existing lenders.

38. Capital management

The primary objective of the Company’s capital management is to safeguard the Company’s ability to continue as a going
concern, maintain a strong credit rating and a healthy capital ratio to support the business and to enhance shareholder value.
The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and
business strategies to maintain or adjust the capital structure, issue new shares or raise and repay debts. The Company’s
capital management objectives, policies or processes were unchanged during the year.

39. Segment Reporting

The Company is engaged in the business of manufacturing and assembling of automotive components. The Chief Operating
Decision Maker (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.

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 Segments” have not been provided
in the standalone financial statements.

41. 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.

43. Additional Information:

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

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

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

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

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

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.

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

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.

(vii) The Company have 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 is not declared as a wilful defaulter by any bank of financial institution or other lender.

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

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

(xi) 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.

(xii) The Company (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016) does not have
Core Investment Company (CIC).

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

Sandhar Technologies Limited

For B S R & Co. LLP

Chartered Accountants

ICAI Firm Registration number 101248W/W-100022

Deepesh Sharma Jayant Davar Yashpal Jain

Partner Chairman, Managing Director and Chief Financial Officer and

Membership No. 505725 Chief Executive Officer Company Secretary

DIN:00100801 M.No. A13981

Archana Capoor Aabha Bakaya

Director Director

DIN: 01204170 DIN: 05131734

Place: Gurugram Place: Gurugram

Date : 22 May 2025 Date : 22 May 2025