Notes to Accounts of G G Automotive Gears Ltd.

Mar 31, 2025

(k) Provisions, contingent liabilities and contingent assets

The Company recognizes provisions when a present obligation (legal or constructive) as
a result of a past event exists and it is probable that an outflow of resources embodying
economic benefits will be required to settle such obligation and the amount of such
obligation can be reliably estimated.

The amount recognized as a provision is the best estimate of the consideration required
to settle the present obligation at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. When a provision is measured using
the cash flow estimated to settle the present obligation, it carrying amount is the present
value of those cash flows (when the effect of the time value of money is material).

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 is not recognized
because it is not probable that the outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability
that cannot be recognized because it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognized in the financial statements; however, they are
disclosed where the inflow of economic benefits is probable. When the realization of
income is virtually certain, then the related asset is no longer a contingent asset and is
recognized as an asset.

Present obligations arising under onerous contracts are recognized and measured as
provisions. An onerous contract is considered to exist where the Company has a contract
under which the unavoidable costs of meeting the obligations under the contract exceed
the economic benefits to be received from the contracts.

(l) 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) Initial recognition

Financial assets and financial liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through
profit and loss) are added to or deducted from the fair value of the financial assets or
financial liabilities, as appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through
profit and loss are recognized immediately in the statement of profit and loss.

(ii) Financial assets

(I) Classification of financial assets

Financial assets are classified into the following specified categories: amortized
cost, financial assets ''at fair value through profit and loss'' (FVTPL), ''Fair value
through other comprehensive income'' (FVTOCI). The classification depends on the
Company''s business model for managing the financial assets and the contractual
terms of cash flows.

(II) Subsequent measurement

- Debt Instrument - amortized cost

Debt instruments that meet the following conditions are subsequently measured
at amortized cost:(a) if the asset is held within a business model whose objective is
to hold the asset in order to collect contractual cash flows and (b) the contractual

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

-Fair value through other comprehensive income (FVTOCI)

A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are
met:

(a) The objective of the business model is achieved both by collecting
contractual cash flows and selling the financial assets.

(b) The asset''s contractual cash flows represent solely payments of principal
and interest.

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 and reversals and foreign exchange gain or
loss in the statement of profit and loss. On derecognition of the asset, cumulative
gain or loss previously recognized in OCI is reclassified from the equity to
statement of profit and loss. Interest earned whilst holding FVTOCI debt instrument
is reported as interest income using the effective interest rate method.

- Fair value through Profit and Loss (FVTPL):

FVTPL is a residual category for debt instruments. Any debt instrument, which does
not meet the criteria for categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL. In addition, the Company may elect to designate a debt
instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL.
However, such election is considered only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to as ''accounting mismatch'').
Debt instruments included within the FVTPL category are measured at fair value
with all changes recognized in the statement of profit and loss.

(m) Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a
Company of similar financial assets) is primarily derecognized (i.e. removed from
the Company''s statement of financial position) when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or
has assumed an obligation to pay the received cash flows in full without material
delay to a third party under a ''pass-through'' arrangement- and either (a) the
Company has transferred substantially all the risks and rewards of the asset, or (b)
the Company has neither transferred nor retained substantially all the risks
and rewards of the asset, but has transferred control of the asset When the
Company has transferred its rights to receive cash flows from an asset or has
entered into a pass-through arrangement, it evaluates if and to what extent it has
retained the risks and rewards of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of the asset, nor transferred
control of the asset, the Company continues to recognize the transferred asset to
the extent of the Company''s continuing involvement. In that case, the Company
also recognizes an associated liability. The transferred asset and the associated
liability are measured on a basis that reflects the rights and obligations that the
Company has retained. Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the
Company could be required to repay.

(IV) Effective interest method

The effective interest method is a method of calculating the amortized cost of a
debt instrument and of allocating interest income over the relevant period. The
effective interest rate is the rate that exactly discounts estimating future cash
receipts (including all fees and points paid or received that form an integral part of
the effective interest rate, transaction costs and other premium or discounts)
through the expected life of the debt instrument, or, where appropriate, a shorter
period, to the net carrying amount on initial recognition. Income is recognized on
an effective interest basis for debt instruments other than those financial assets
classified as at FVTPL. Interest income is recognized in profit or loss and is included
in the "Other income" line item.

(V) Impairment of financial assets

The Company assesses impairment based on expected credit losses (ECL) model
to the following:

• Financial assets measured at amortized cost;

• Financial assets measured at fair value through other comprehensive income
(FVTOCl)Expected credit losses are measured through a loss allowance at an
amount equal to:

• The 12-month expected credit losses (expected credit losses that result from
those default events on the financial instrument that are possible within 12 months
after the reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all
possible default events over the life of the financial instrument). The Company
follows ''simplified approach'' for recognition of impairment loss allowance on:

• Trade receivables or contract revenue receivables;

• All lease receivables Under the simplified approach, the Company does not track
changes in credit risk. Rather, it recognizes impairment loss allowance based on
lifetime ECLs at each reporting date, right from its initial recognition.

The Company uses a provision matrix to determine impairment loss allowance on
the portfolio of trade receivables. The provision matrix is based on its historically
observed default rates over the expected life of the trade receivable and is
adjusted for forward looking estimates. At every reporting date, the historical
observed default rates are updated and changes in the forward-looking estimates
are analyzed.

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 Company reverts to recognizing
impairment loss allowance based on 12-month ECL.

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.

(iii) Financial liabilities and equity instruments

(I) Classification of debt or equity

Debt or equity instruments issued by the Company are classified as either financial
liabilities or as equity in accordance with the substance of the contractual
arrangements and the definitions of a financial liability and an equity instrument.

- Equity instruments:

An equity instrument is any contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities. Equity instruments issued by
the Company are recognized at the proceeds received, net of direct issue costs.
Repurchase of the Company''s own equity instruments is recognized and deducted
directly in equity. No gain or loss is recognized on the purchase, sale, issue or
cancellation of the Company''s own equity instruments.

(II) Subsequent measurement

-Financial liabilities measured at amortized cost:

Financial liabilities are subsequently measured at amortized cost using the
effective interest rate (EIR) method. Gains and losses are recognized in statement
of profit and loss when the liabilities are derecognized as well as through the EIR
amortization process. Amortized cost is calculated by taking into account any
discount or premium on acquisition and fee or costs that are an integral part of
the EIR. The EIR amortization is included in finance costs in the statement of profit
and loss.

- Financial liabilities measured at fair value through profit and loss (FVTPL):

Financial liabilities at fair value through profit or loss include financial liabilities held
for trading and financial liabilities designated upon initial recognition as at fair
value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the
purpose of repurchasing in the near term. This category also includes derivative
financial instruments entered into by the Company that are not designated as
hedging instruments in hedge relationships as defined by Ind AS 109. Separated
embedded derivatives are also classified as held for trading unless they are
designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognized in the statement of
profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit or
loss are designated at the initial date of recognition, and only if the criteria in Ind
AS 109 are satisfied.

(ill) Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is
discharged or cancelled or expires. When an existing financial liability is replaced
by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is
treated as the derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognized in the
statement of profit and loss.

(IV) Fair value measurement

The Company measures financial instruments such as debts and certain
investments, at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement
date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability or

- In the absence of a principal market, in the most advantageous market for the
asset or liability.

The principal or the most advantageous market must be accessible by the
Company.

The fair value of an asset or a liability is measured using the assumptions that
market participants would use when pricing the asset or liability, assuming that
market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market
participant''s ability to generate economic benefits by using the asset in its highest
and best use or by selling it to another market participant that would use the asset
in its highest and best use.

The Company uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the
financial statements are categorized within 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 (unadjusted) market prices in active markets for identical assets
or liabilities.

- Level 2 - Valuation techniques for which the lowest level input that is significant
to the fair value measurement is directly or indirectly observable.

- Level 3 - Valuation techniques for which the lowest level input that is significant
to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the balance sheet on a recurring
basis, the Company determines whether transfers have occurred between levels in
the hierarchy by re-assessing categorization (based on the lowest level input that
is significant to the fair value measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the Company has determined classes of
assets and liabilities on the basis of the nature, characteristics and risks of the
asset or liability and the level of the fair value hierarchy as explained above.

(m) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and
short- term deposits with an original maturity of three months or less, which are subject to
an insignificant risk of changes in value.

(n) Leases

Company as a lessee

The Company''s lease asset classes primarily consist of leases for land and buildings. The
Company assesses whether a contract contains a lease, at inception of a contract. A
contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. To assess whether a

contract conveys the right to control the use of an identified asset, the Company assesses
whether:

i) the contract involves the use of an identified asset

ii) the Company has substantially all of the economic benefits from use of the asset
through the period of the lease and

iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use
(ROU) asset and a corresponding lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of 12 months or less (short-term leases) and low
value leases. For these short-term and low-value leases, the Company recognizes the
lease payments as an operating expense on a straight-line basis over the term of the
lease. The ROU assets are initially recognized at cost, which comprises the initial amount
of the lease liability adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct costs less any lease incentives.

They are subsequently measured at cost less accumulated depreciation and impairment
losses. ROU assets are depreciated from the commencement date on a straight-line
basis over the shorter of the lease term and useful life of the underlying asset. ROU assets
are evaluated for recoverability whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable. For the purpose of impairment
testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the
value- in-use) is determined on an individual asset basis unless the asset does not
generate cash flows that are largely independent of those from other assets. In such
cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which
the asset belongs. The lease liability is initially measured at amortized cost at the present
value of the future lease payments. The lease payments are discounted using the interest
rate implicit in the lease or, if not readily determinable, using the incremental borrowing
rates in the country of domicile of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related ROU asset if the Company changes its
assessment of whether it will exercise an extension or a termination option.

Company as a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease.
Whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee, the contract is classified as a finance lease. All other leases are
classified as operating leases.

For operating leases, rental income is recognized on a straight-line basis over the term of
the relevant lease.

o Earnings per share

Basic earnings per share is computed and disclosed using the weighted average number
of equity shares outstanding during the period. Dilutive earnings per share is computed
and disclosed using the weighted average number of equity and dilutive equity
equivalent shares outstanding during the period, except when the results are anti-dilutive.

3. Key accounting judgements and estimates

The preparation of the Company''s financial statements requires the management to
make judgements, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the accompanying disclosures, and the
disclosure of contingent liabilities. Uncertainty about these assumptions and estimates
could result in outcomes that require a material adjustment to the carrying amount of
assets or liabilities affected in future periods.

The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year,
are described below:

(i) Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each
reporting period. This reassessment may result in change in depreciation expense in
future periods.

(ii) Defined benefit obligation

The costs of providing pensions and other post-employment benefits are charged to the
Statement of Profit and Loss in accordance with IND AS 19 ''Employee benefits'' over the
period during which benefit is derived from the employees'' services. The costs are
assessed on the basis of assumptions selected by the management. These assumptions
include salary escalation rate, discount rates, expected rate of return on assets and
mortality rates.

(iii) Allowance for uncollectible trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as
reduced by appropriate allowances for estimated irrecoverable amounts. Estimated

irrecoverable amounts are based on the ageing of the receivable balances and historical
experience. Additionally, a large number of minor receivables is grouped into
homogeneous groups and assessed for impairment collectively. Individual trade
receivables are written off when management deems them not to be collectible.

(iv) Allowance for credit losses on receivables and unbilled revenue:

The Company determines the allowance for credit losses based on historical loss
experience adjusted to reflect current and estimated future economic conditions. The
Company considered current and anticipated future economic conditions relating to
industries the Company deals with and the countries where it operates. In calculating
expected credit loss, the Company has also considered credit reports and other related
credit information for its customers to estimate the probability of default in future and has
taken into account estimates of possible effect from the pandemic relating to COVID-19.

Judgements:

Information about judgements made in applying accounting policies that have the most
significant effects on the amounts recognized in the financial statements.

4. Standards issued but not yet effective

There is no additional standard issued as on date which is not yet effective.

Notes for Receivables:

1. The average credit period is 30-90 days from the date of invoice. No interest is
recovered on trade receivables for payments received after due date.

2. The Company has used a practical expedient by computing the expected credit loss
allowance for trade receivables based on a provision matrix. The provision matrix takes
into account historical credit loss experience and adjusted for forward-looking
information along with changes in credit risk of specific parties/companies. The expected
credit loss allowance is based on the ageing of the days the receivables are due and the
rates as given in the provision matrix.

(d) Terms/ Right attached to Shares

(i) The equity shares of the Company, having par value of Rs. 10 each, rank pari passu in
all respects including voting rights and entitlement to dividend.

(ii) In the event of liquidation of the Company, the holders of equity shares will be entitled
to receive remaining assets of the Company, after distribution of preferential amounts.
The distribution will be in proportion to the number of equity shares held by the
shareholders.

(e) Issue during the year

(i) During the year 1168833 equity shares fully paid (face value) Rs 10/- each issued on
preferential basis at Rs. 60/- each

NOTE 28 - SEGMENT REPORTING
Business segments

The Company is primarily engaged in manufacturing of traction gears ,pinions and alloyd
products. Accordingly, there is no other separate reportable segment as defined by Ind AS
108 "Operating Segments".

Geographical segments

The Company provides all its products from India only and hence location of plant is
considered to be in India only, thus the Statement of profit and loss and Balance sheet
depicts the picture of segment results and the Segmental assets and liabilities.

NOTE 29 - RELATED PARTY DISCLOSURES

Details of related parties and their relationship

(a) Key management personnel (KMP)/Director

Mr. Kennedy Ram Gajra
Mr. Anmol Gajra

NOTE 30 - FINANCIAL INSTRUMENTS
(a) Capital management

The Company manages its capital to ensure that the Company will be able to continue as
going concern while maximizing the return to shareholders through the optimization of the
debt and equity.

The capital structure of the Company consists of net debt (borrowings as detailed in
notes 13, 14A and 14C offset by cash and bank balances) and total equity of the Company.

*Debt is defined as long-term and short-term borrowings (excluding financial guarantee
contracts) including current maturities of long-term debt.

(b) Financial risk management objectives

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

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior
management oversees the management of these risks.

(i) Credit risk management

Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to
meet its contractual obligations and arises principally from the Company''s receivables,
deposits given, loans given, and balances at bank.

The maximum exposure to the credit risk at the reporting date is primarily from trade
receivables.

In case of trade receivables, the Company does not hold any collateral or other credit
enhancements to cover its credit risks. Credit risk has always been managed by the
Company through credit approvals, establishing credit limits and continuously monitoring
the credit worthiness of customers to which the Company grants credit terms in the
normal course of business. On account of adoption of Ind AS 109, the Company uses
expected credit loss model to assess the impairment loss or gain.

Trade receivables are non-interest bearing and the average credit period is 30-90 days.

Trade receivable consists of a large number of customers, spread across diverse
industries and geographical areas. Ongoing credit evaluation is performed on the
financial condition of the accounts receivable.

Credit risk on cash and cash equivalents is limited as the Company generally invest in
deposits with banks and financial institutions with high credit ratings assigned by credit¬
rating agencies.

(ii) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk comprises three types of risk:
currency risk, interest rate risk and other price risk. The objective of market risk
management is to manage and control market risk exposures within acceptable
parameters, while optimizing the return.

The Company undertakes transactions denominated in foreign currencies, consequently
exposures to exchange rate fluctuations arise. The management has taken a position not
to hedge this currency risk.

The carrying amounts of financial liability of the Company denominated in foreign
currency other than its functional currency is as follows:

(2) Foreign currency sensitivity analysis

The following table details the Company''s sensitivity to a 10% increase and decrease in the
Rupee against the relevant foreign currency. 10% is the sensitivity rate used when reporting
foreign currency risk internally to key management personnel and represents
management''s assessment of the reasonably possible change in foreign exchange rates.
The sensitivity analysis includes only outstanding foreign currency denominated
monetary items and adjusts their translation at the period end for a 10% change in foreign
currency rates. A positive number below indicates an increase in profit where the Rupee
strengthens 10% against the relevant currency. For a 10% weakening of the Rupee against
the relevant currency, there would be a comparable impact on the profit and the balance
would be negative.

The borrowings of the Company are at fixed interest rates, consequently the Company is
not exposed to interest rate risk.

(iii) Liquidity Risk

(1) Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The
Company''s principal source of liquidity are cash and cash equivalents and the cash flow
generated from operations. The Company manages liquidity risk by maintaining
adequate 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. Trade and other payables are non-interest bearing and the average credit
term is 30-90 days.

(d) Fair value measurement

All the financial assets and liabilities of the Company are measured at amortized cost.
Financial instruments measured at amortized cost

The carrying amount of financial assets and financial liabilities measured at amortized
cost in the financial statements are a reasonable approximation of their fair values since
the Company does not anticipate that the carrying amounts would be significantly
different from the values that would eventually be received or settled.

Fair value hierarchy:

Assets are classified at amortized cost hence fair value hierarchy not disclosed

NOTE 32

NOTE 32 - PREVIOUS YEARS'' FIGURE HAVE BEEN REGROUPED/ RECLASSIFIED WHEREVER
REQUIRED.

NOTE 33

NOTE 33 - THE COMPANY IS DEALING WITH VARIOUS COMPANIES. AS PER INFORMATION
AVAILBLE NO COMPANY HAS BEEN STRUCK OFF BY THE REGISTRAR OF COMPANIES

For S.N. Gadiya & Co.

Chartered Accountants On behalf of the Board

FRN - 002052C

Sd/- Sd/- Sd/-

(_CA. _S._N. _Gadiya) KENNEDY RAM GAJRA ANMOL GAJRA

Proprietor MANAGING EXECUTIVE

M.NO. - 71229 DIRECTOR DIRECTOR

UDIN - 25071229BMIGSC5738

Sd/- Sd/-

MANOJ SHARMA MS LATA NARANG

CFO CS

Place: Dewas
Date: 08/05/2025

---

Mar 31, 2024

Notes for Receivables:

1) The average credit period is 30-90 days from the date of invoice. No interest is recovered on trade receivables for payments received after due date.

2) The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information alongwith changes in credit risk of specific parties/companies. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix.

3) No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.

(d) Terms/ Right attached to Shares

(i) The equity shares of the Company, having par value of Rs. 10 each, rank pari passu in all respects including voting rights and entitlement to dividend.

(ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(e) Issue during the year

(i) During the year 415000 equity shares fully paid (face value ) Rs 10/- each issued on preferential basis at Rs. 60/- each.

Description of nature and purpose of each reserve

(a) Security premium reserve

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

(b) Retained earnings

Retained earnings are created from the profit / loss of the Company, as adjusted for distributions of dividends, transfers to other reserves, etc.

Term loan :

1. Term loan is secured by way of hypothecation of specific plant & machinery, extention of charge over fixed assets and guarantee of promoter directors.

1. Term Loan MI-50- Rate of interest - 7.5%

Repayable in monthly installment each during 2024-2025 of Rs 1895304

2. Term Loan V-45 Rate of interest - 10.8%

Repayable in 4 quarterly installment of Rs 40 lacs each during 2024-25 Repayable in 2 quarterly installment of Rs 40 lacs each during 2025-26 Repayable in 1 quarterly installment of Rs 8.24 lacs each during 2025-26

3. Term Loan VI-184 Rate of interest - 7.50%

Repayable in 12 monthly installment of Rs 4.97 lacs each during 2024-2025 Repayable in 12 monthly installment of Rs 4.97 lacs each during 2025-2026 Repayable in 9 monthly installment of Rs 4.97 lacs each during 2026-2027

4. Vehicle Loan - 4671 Rate of interest - 8.75%

Repayable in monthly installment each during 2024-2025 of Rs 2476476 Repayable in monthly installment each during 2025-2026 of Rs 1762797

5. Term Loan HDFC Rate of Interest - 9 %

Repayable in monthly installment each during 2024-2025 of Rs 3281285 Unsecured loan:

Loan from directors are interest free and repayable on demand

Note 27 - Leases

The Company''s significant leasing arrangements was in respect of office premises taken on leave and licence basis. Which stands withdrawn.

The following is the summary of practical expedients elected on initial application:

a. Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.

b. The effect of depreciation and interest related to Right Of Use Asset and Lease Liability are reflected in the Statement of Profit and Loss under the heading "Depreciation and Amortisation Expense" and "Finance costs" respectively.

c. The weighted average incremental borrowing rate applied to lease liabilities is 9.75%

Note 29 - Segment reporting

Business segments

The Company is primarily engaged in manufacturing of traction gears, pinions and alloyd products. Accordingly, there is no other separate reportable segment as defined by Ind AS 108 "Operating Segments".

Geographical segments

The Company provides allits products fromIndia only andhence location of plant is considered to be in India only,thus the Statement of profit andloss and Balance sheet depicts thepicture of segment results and the Segmental assets and liabilities.

Note 31 - Financial instruments

(a) Capital management

The Company manages its capital to ensure that the Companywill be able to continueas going concern while maximizing the return to shareholders through the optimization of the debt and equity.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 13, 14A and 14C offset by cash and bank balances) and total equity of the Company.

*Debt is defined as long-term and short-term borrowings (excluding financial guarantee contracts) including current maturities of long term debt.

(b) Financial risk management objectives

The Company''s principal financialliabilities comprises of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets includes trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company is exposedto market risk,credit risk and liquidity risk.The Company''s senior management oversees the management of these risks.

(i) Credit risk management

Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations and arises principally from the Company''s receivables, deposits given, loans given, and balances at bank.

The maximum exposure to the creditrisk at thereporting date is primarily fromtrade receivables.

In case of trade receivables, the Company does not hold any collateral or other credit enhancements to cover its credit risks. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.

Trade receivables are non-interest bearingand the averagecredit period is 30-90 days.

The carrying amount of following financial assets represents the maximum credit exposure;

Trade receivable consists of a large numberof customers, spreadacross diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of the accounts receivable.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by credit- rating agencies.

(ii) Market risk

Market risk is the risk that the fair valueor future cash flows of a financial instrument will fluctuate becauseof changes in market prices.Market risk comprisesthree types of risk: currency risk, interest rate risk and other price risk. The objective of market risk management is to manage and control marketrisk exposures withinacceptable parameters, while optimizing the return.

(l) Foreign currency risk

The Company undertakes transactions denominated in foreign currencies, consequently exposures to exchange rate fluctuations arise. The management has taken a position not to hedge this currency risk.

(2) Foreign currency sensitivity analysis

The following table details the Company''s sensitivity to a 10% increase and decrease in the Rupee against the relevant foreign currency. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below indicates an increase in profit where the Rupee strengthens 10% against the relevant currency. For a 10% weakening of the Rupee against the relevant currency, there would be a comparable impact on the profit and the balance would be negative.

(3) Interest rate risk

Theborrowings of the Company are at fixed interest rates, consequently the Company is not exposed to interest rate risk.

(iii) Liquidity Risk

(1) Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The Company''s principal source of liquidity are cash and cash equivalents and the cash flow generated from operations. The Company manages liquidity risk by maintaining adequate 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.Trade and other payables are noninterest bearing and the average credit term is 30-90 days.

The amount of financial guarantees included in contingent liabilities are the maximum amounts the Company couldbe forced to settle under the arrangement for the full guaranteed amount if the amount is claimed by the counter party to the guarantee.

The fair value of the financial assets and liabilities is included at the amount at which the instrumentcould be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

(d) Fair value measurement

All the financial assetsand liabilities of the Company are measured at amortised cost. Financial instruments measured at amortised cost.

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

Fair value hierarcy:

Assets are classified at amortised cost hence fair value hierarchy not disclosed

Note 33 - Previous years'' figure have been regrouped/ reclassified wherever required.

Note 34 - The company is dealing with various companies. As per information availble no company has been struck off by the Registrar of Companies

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Mar 31, 2014

1. Contingent Liability :

Particulars 2014 2013

Bank guarantee issued by company''s Bankers Rs.324.68 Lac Rs. 448.78 Lac

Income tax (A.Y. 2001-02) in appeal at Mumbai 24.22 Lac Rs. 24.22 Lac

2. In the opinion of the Board, the Current Assets, Loans and advances Debtors & Creditors have a value on realization in ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet. However no confirmation has been obtained on the same.

3. The Company has been advised that the computation of net profit for the purpose of Directors remuneration under section 349 of the Companies Act, 1956 need not be enumerated since no commission has been paid to the Directors. Fixed monthly remuneration has been paid as per Schedule XIII of the Companies Act, 1956 and as per resolution passed by the Shareholders in their meeting.

4. In compliance with the requirement of the Accounting Standard on valuation of Inventories issued by the Institute of Chartered Accountant of India, Excise Duty payable amounting to Rs. 4093990/- (Prev. Year 2851484/-) on Finished Goods as on 31st March, 2014 has been included in the valuation of the said stocks. This has no impact on profit for the year.

5. Amount due to small industries Rs. Nil as on 31.03.2014 out of which amount outstanding for more than Rs. 1.00 lac and due for more than 30 days is Rs. Nil.

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Mar 31, 2013

A) Taxes on Income Tax as per Accounting Standard 22:

i. Provision for Income Tax is made in accordance with the Income Tax Act, 1961.

ii. Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

iii. The company has recognized Deferred Taxes which result from timing difference between the Book profits and Tax profits. Consequently, as required by the said standard, the company has recognised the deferred tax balance that would have accumulated prior to adopting the standard, as if the standard had been in effect.

1. In the opinion of the Board, the Current Assets, Loans and advances Debtors & Creditors have a value on realization in ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet. However no confirmation has been obtained on the same.

2. The Company has been advised that the computation of net profit for the purpose of Directors remuneration under section 349 of the Companies Act, 1956 need not be enumerated since no commission has been paid to the Directors. Fixed monthly remuneration has been paid as per Schedule XIII of the Companies Act, 1956 and as per resolution passed by the Shareholders in their meeting.

3. In compliance with the requirement of the Accounting Standard on valuation of Inventories issued by the Institute of Chartered Accountant of India, Excise Duty payable of Rs 2851484/- (Prev. Year 337855/-) on Finished Goods at Factory as on 31st March, 2013 has been included in the valuation of the said stocks. This has no impact on profit for the year.

4. Amount due to small industries Rs. Nil as on 31.03.2013 out of which amount outstanding for more than Rs. 1.00 lac and due for more than 30 days is Rs. Nil.

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Mar 31, 2012

A) Related parties disclosure as per accounting Standard 18:

The related parties, as defined by Accounting Standard 18 ' Related party disclosure' issued by The Institute of Chartered Accountants of India, in respect of which the disclosures have been made and identified on the basis of disclosures made by the company.

b) Taxes on Income Tax as per Accounting Standard 22:

i. Provision for Income Tax is made in accordance with the Income Tax Act, 1961.

ii. Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

iii. The company has recognized Deferred Taxes which result from timing difference between the Book profits and Tax profits. Consequently, as required by the said standard, the company has recognised the deferred tax balance that would have accumulated prior to adopting the standard, as if the standard had been in effect.

1. Contingent Liability :

Particulars 2012 2011

Bank guarantee issued by company's Bankers Rs. 173.72 Lac Rs. 127.42 Lacs

Income tax (A.Y. 2001-02) in appeal at Mumbai Rs. 24.22 Lac Rs. 33.29 Lacs

2. In the opinion of the Board, the Current Assets, Loans and advances Debtors & Creditors have a value on realization in ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet. However no confirmation has been obtained on the same.

3. The Company has been advised that the computation of net profit for the purpose of Directors remuneration under section 349 of the Companies Act, 1956 need not be enumerated since no commission has been paid to the Directors. Fixed monthly remuneration has been paid as per Schedule XIII of the Companies Act, 1956 and as per resolution passed by the Shareholders in their meeting.

4. In compliance with the requirement of the Accounting Standard on valuation of Inventories issued by the Institute of Chartered Accountant of India, Excise Duty payable of Rs 337855/- (Prev. Year 373301/- )on Finished Goods at Factory as on 31st March, 2012 has been included in the valuation of the said stocks. This has no impact on profit for the year.

5. Amount due to small industries Rs. Nil as on 31.03.2012 out of which amount outstanding for more than Rs. 1.00 lac and due for more than 30 days is Rs. Nil.