Notes to Accounts of Racl Geartech Ltd.

Mar 31, 2025

B11 PROVISIONS

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

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 the provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows (when the effect of the
time value of money is material).

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

B12 WARRANTIES

The estimated liability for product warranties is recorded when products are sold. These estimates are
established using historical information on the nature, frequency, and average cost of warranty claims
and management estimates regarding possible future incidence based on corrective actions on product
failures. The timing of outflows will vary as and when warranty claims will arise- typically six months to
one year.

B13 CURRENT AND NON-CURRENT CLASSIFICATION
Current Assets

An asset shall be classified as current when it satisfies any of the following criteria:

(a) It is expected to be realized in, or is intended for sale or consumption in, the company’s normal
operating cycle;

(b) It is held primarily to be traded.

(c) It is expected to be realized within twelve months after the reporting date, or

(d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting date.

All other assets shall be classified as non-current.

Current Liabilities:

A liability shall be classified as current when it satisfies any of the following criteria:

(a) It is expected to be settled in the company’s normal operating cycle;

(b) It is held primarily to be traded;

(c) It is due to be settled within twelve months after the reporting date: or

(d) The company does not have an unconditional right to defer settlement of the liability for at least
twelve months after the reporting date. Terms of a liability that could at the option of the counterparty,
result in its settlement by the issue of equity instruments do not affect its classification. All other
liabilities shall be classified as non-current.

B14 DEFERRED TAX & CURRENT TAX

a. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences.
Deferred tax assets are generally recognized for all deductible temporary differences to the extent
that taxable profits will probably be available against which those deductible temporary differences
can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference
arises from the initial recognition (other than in a business combination) of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax
liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the
tax rates that are expected to apply in the period in which the liability is settled or the asset realized,
based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the
reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from how the Company expects, at the end of the reporting period, to recover or settle the
carrying amount of its assets and liabilities.

b. Current and deferred tax for the year

The income tax expense or credit for the year is the tax payable on the current year’s taxable
income based on the applicable income tax rate adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences and to unused tax losses.

Current and deferred tax are recognized in statements of profit or loss, except when they relate to
items that are recognized in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognized in other comprehensive income or directly in equity
respectively

B15 EARNING PER SHARE (EPS)

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the year. To
calculate Diluted Earnings per Share, the net profit or loss for the year attributable to equity shareholders
and the weighted average number of shares outstanding during the year are adjusted for the effects of
all dilutive potential Equity Shares.

B16 LEASE

The Company’s lease asset classes primarily consist of leases for land and buildings. The Company
assesses whether a contract contains a lease, at the 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 while in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the
Company assesses whether:

• The contract involves the use of an identified asset

• The Company has substantially all of the economic benefits from use of the asset through the period
of the lease and

• 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.

Certain lease arrangements include the option to extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities include these options when it is reasonably certain that they
will be exercised.

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 before 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 the 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 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.

Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments
have been classified as financing cash flows.

C. Cash Flow Statement

A cash flow statement is prepared segregating the cash flows from operating, investing, and financing
activities. Cash flow from operating activities is reported using an indirect method. Under the indirec
method, the net profit/ (loss) is adjusted for the effects of:

• Transactions of a non-cash nature;

• Any deferrals or accruals of past or future operating cash receipts or payments and,

• All other items of income or expense associated with investing or financing cash flows.

The cash flows from operating, investing, and financing activities of the Company are segregated based
on the available information. Cash and cash equivalents (including bank balances) are reflected as such
in the Cash Flow Statement. Those cash and cash equivalents that are not available for general use as o
the date of the Balance Sheet are also included under this category with a specific disclosure.

D. Borrowing Cost

General and specific borrowing costs that are directly attributable to the acquisition, construction
or production of a qualifying asset are capitalized during the period that is required to complete
and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a
substantial period to get ready for their intended use or sale. Investment income earned on the temporary
investment of specific borrowings pending their expenditure on qualifying assets is deducted from the
borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which
they are incurred.

As per our report of even date attached

For Gianender & Associates By Order of the Board for RACL Geartech Ltd

Chartered Accountants
FRN 004661N

SHASHANK RAMESH

G.K. Agrawal GURSHARAN SINGH JAGDISH KESWANI ANlKHINDl

(Partner) (Chairman & M.D.) (Director) m'' tt¹

M.No : 081603 DIN: 00057602 DIN: 02146267

DIN: 07787889

MALINI BANSAL ANIL SHARMA

JITENDER JAIN

_(CFO) ^{(Director) (Director)}

^Place : ^Delhi (C ) DIN: 00167993 DIN: 00157911

Date : 7^th May 2025

UDIN: 25081603BMJJYT1513 NARINDER PAUL KAUR HPS BEDI NEHA BAHAL

(Director) (Director) (Company Secretary)

DIN: 02435942 DIN: 05217488 ICSI MEM. NO. 40272

Place: Noida
Date: 7^th May 2025

---

Mar 31, 2024

bii provisions

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

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 the provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

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

bi2 warranties

The estimated liability for product warranties is recorded when products are sold. These estimates are established using historical information on the nature, frequency, and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures. The timing of outflows will vary as and when warranty claims will arise- typically six months to one year.

Current Assets

An asset shall be classified as current when it satisfies any of the following criteria:

(a) It is expected to be realized in, or is intended for sale or consumption in, the company’s normal operating cycle;

(b) It is held primarily to be traded.

(c) It is expected to be realized within twelve months after the reporting date, or

(d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

All other assets shall be classified as non-current.

Current Liabilities:

A liability shall be classified as current when it satisfies any of the following criteria:

(a) It is expected to be settled in the company’s normal operating cycle;

(b) It is held primarily to be traded;

(c) It is due to be settled within twelve months after the reporting date: or

(d) The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. All other liabilities shall be classified as non-current.

B14 deferred tax & current tax

a. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that taxable profits will probably be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from how the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The income tax expense or credit for the year is the tax payable on the current year’s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Current and deferred tax are recognized in statements of profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively

bis earning per share (EPS)

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. To calculate Diluted Earnings per Share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential Equity Shares.

B16 LEASE

The Company’s lease asset classes primarily consist of leases for land and buildings. The Company assesses whether a contract contains a lease, at the 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 while in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

• The contract involves the use of an identified asset

• The Company has substantially all of the economic benefits from use of the asset through the period of the lease and

• 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.

Certain lease arrangements include the option to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities include these options when it is reasonably certain that they will be exercised.

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 before 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 the 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 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.

Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

C. Cash Flow Statement

A cash flow statement is prepared segregating the cash flows from operating, investing, and financing activities. Cash flow from operating activities is reported using an indirect method. Under the indirect method, the net profit/ (loss) is adjusted for the effects of:

• Transactions of a non-cash nature;

• Any deferrals or accruals of past or future operating cash receipts or payments and,

• All other items of income or expense associated with investing or financing cash flows.

The cash flows from operating, investing, and financing activities of the Company are segregated based on the available information. Cash and cash equivalents (including bank balances) are reflected as such in the Cash Flow Statement. Those cash and cash equivalents that are not available for general use as of the date of the Balance Sheet are also included under this category with a specific disclosure.

D. Borrowing Cost

General and specific borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset are capitalized during the period that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred.

As per our report of even date attached

For Gianender & Associates By Order of the Board for RACL Geartech Ltd

Chartered Accountants FRN 004661N

shashank ramfsh

G.K. Agrawal GURSHARAN SINGH JAGDISH KFSWANI ANlKHINDl

(Partner) (Chairman & M.D.) (Director) m'' tt¹

M.No : 081603 DIN: 00057602 DIN: 02146267

DIN: 07787889

malini bansal anil sharma

JITFNDFR JAIN

_(CFO) ^{(Director) (Director)}

^{Place : Delhi} (C ) DIN: 00167993 DIN: 00157911

Date : May 27, 2024

_{UDIN: 240}816₀3_BKA1_BA1₇₇₄ NARINDFR PAUL KAUR HPS BFDI NFHA BAHAL

(Director) (Director) (Company Secretary)

DIN: 02435942 DIN: 05217488 ICSI MEM. NO. 40272

Place: Noida Date: May 27, 2024

---

Mar 31, 2023

B11 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 the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

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 provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

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

B12 WARRANTIES

The estimated liability for product warranties is recorded when products are sold. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures. The timing of outflows will vary as and when warranty claim will arise- being typically six months to one year. B13 CURRENT AND NON CURRENT CLASSIFICATION Current Assets

An asset shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended for sale or consumption in, the company''s normal operating cycle;

(b) it is held primarily for the purpose of being traded.

(c) It is expected to be realized within twelve months after the reporting date, or

(d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for

at least twelve months after the reporting date.

All other assets shall be classified as non-current.

Current Liabilities:

A liability shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the reporting date: or

(d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. All other liabilities shall be classified as non-current.

B14 DEFERRED TAX & CURRENT TAX a. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

b. Current and deferred tax for the year

The income tax expense or credit for the year is the tax payable on current year''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Current and deferred tax are recognized in statement of profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively

B15 EARNING PER SHARE (EPS)

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating Diluted Earnings per Share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential Equity Shares.

B16 LEASE

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:

• The contract involves the use of an identified asset

• The Company has substantially all of the economic benefits from use of the asset through the period of the lease and

• 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.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

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-inuse) 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.

Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

C. CASH FLOW STATEMENT

Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit/ (loss) is adjusted for the effects of:

• Transactions of a non-cash nature;

• Any deferrals or accruals of past or future operating cash receipts or payments and,

• All other items of income or expense associated with investing or financing cash flows.

The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. Cash and cash equivalents (including bank balances) are reflected as such in the Cash Flow Statement. Those cash and cash equivalents which are not available for general use as on the date of Balance Sheet are also included under this category with a specific disclosure.

D. BORROWING COST

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred.

As per our report of even date attached

For Gianender & Associates By Order of the Board for RACL Geartech Ltd

Chartered Accountants

_{FRN 004661N} GURSHARAN SINGH JAGDISH KESWANI SHASHANK RAMESH ANIKHINDI

(Chairman & M.D.) (Director) (Director)

DIN: 00057602 DIN: 02146267 DIN :07787889

Ayush Goswami D.R.ARYA MALINI BANSAL ANIL SHARMA

(Partner) (Director & CFO) (Director) (Director)

M.No:545800 DIN:00057582 DIN :00167993 DIN :00157911

NARINDER PAUL HPS BEDI NEHA BAHAL

KAUR (Director) (Company Secretary)

(Director) DIN : 05217488 ICSI MEM. NO. 40272

DIN: 02435942

Place: Delhi Place: Noida

Date : 22nd May, 2023 Date : 22nd May, 2023

UDIN: 23545800BGVTTK4330

35 Disclosure pursuant to Ind AS 19 "Employee Benefit"

The details of various employee benefit provided to employee areas under:

Defined Benefit Plans

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan. The gratuity plan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested year of employment i.e. five years. The liability of gratuity plan is provided based on actuarial valuation as at the end of each financial year. These plans typically expose the Company to actuarial risks such as: investment risk, inherent interest rate risk , longevity risk and salary risk, Investment Risk.

Interest Rate Risk The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase Longevity Risk. The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary Risk Higher than expected increases in salary will increase the defined benefit obligation.

The most recent actuarial valuation for determining present value of the defined benefit obligation were carried out as at March 31, 2023 by Mr. I Sambasavi Rao (Membership no. 158), Fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost, were measured using the projected unit credit method. The principal assumption used for the purpose of the actuarial valuations were as follows:-

D. RISKS ASSOCIATED WITH DEFINED BENEFIT PLAN

Where there is a benefit being promised and benefit being provided, there will always be some uncertainty for the benefit provider and the benefit recipient.

Benefit Risks in Defined Benefit Schemes

1. Risk to the beneficiaries (i.e. for employees)

Insufficient funds: The greatest risk to the beneficiary is that there are insufficient funds available to provide the promised benefits.

This may be due to :

- The insufficient funds set aside, i.e. underfunding

- The insolvency of the Employer

- The holding of investments which are not matched to the liabilities; Or

- A combination of these events Changes to tax rates or status

2. Risks to the Benefit provider (i.e. for employer)

Parameter risk: Actuarial valuation is done basis some assumptions like salary inflation, discount rate and withdrawal assumptions. In case the actual experience varies from the assumptions, fund may be Insufficient to pay off the

For example: Suppose the plan''s liability is calculated with salary inflation assumption of 5% per annum. However,Company''s'' actual practice is to provide increment of 10% per annum. This will result into underfunding.

Similarly, reduction in discount rate in subsequent future years can increase the plan''s liability. Further, actual withdrawals may be lower or higher than what was assumed in the valuation, which may also impact the plan''s liability.

Risk of illiquid assets: Another risk is that the funds, although sufficient, are not available when they are required to finance the benefits. This may be due to assets being locked for longer period or in illiquid assets. Risk of benefit change: There may be a risk that a benefit promised is changed or is changeable within the terms of the contract. For e.g. the prevailing Act / Regulation may increase the benefits payable under defined benefit plans.

Asset liability mismatching risk: ALM risk arises due to a mismatch between assets and liabilities either due to liquidity or changes in interest rates or due to different duration.

For example: When the liability duration is, say, 10 years and with assets locked in 5-year g-sec securities. After 5years, there is huge reinvestment risk to invest maturity proceeds of assets due to uncertainty about the market prevailing yields at that time.

36 Disclosure of Segmental reporting pursuant to Ind AS 108 "Segmental Reporting"

The Company is engaged in manufacturing of Automotive Components meant for two wheeled, three wheeled and four wheeled Vehicles. Based on similarity of activities/products, risk and reward structure, organisation structure and internal reporting Systems. The company has structured its operations into single operating segment geographic distribution of however based on the activities, the chief operating decision maker identified India and outside India as two geographical segments.

41 Financial Risk Management Objectives

The company''s activities expose it to variety of financial risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.The company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management systems are reviewed annually to reflect changes in market conditions and the Company''s activities. The Board of Directors oversee compliance with the Company''s risk management policies and procedures, and reviews the risk management framework.

A) Market risk

The 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.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial assets.

The company is exposed to liquidity risk due to bank borrowings and trade and other payables.

The company measures risk by forecasting cash flows.

The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due without incurring unacceptable losses or risking damage to the Company''s reputation. The Company ensures that it has sufficient fund to meet expected operational expenses, servicing of financial obligations.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company''s exposure and wherever appropriate, the credit ratings of its counterparties are continuously monitored and spread amongst various counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management of the Company. Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks, investments in debt instruments/ bonds, trade receivables, loans and advances and derivative financial instruments. None of the financial instruments of the Company result in material concentrations of credit risks. Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past dues and not impaired, there were no indication of default in repayment as at the year end.

44 Property, Plant and equipment

Property, Plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Capital work in progress are stated at cost, net of accumulated impairment losses, if any. Such cost includes expenditure that is directly attributable to the acquisition of the items and the cost of replacing part of the plant and equipment if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in statement of profit or loss as incurred.

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised.

On transition to Ind AS, the Company has elected to continue with the carrying value of all its property, plant and equipment recognised as at April 1,2016 measured as per the previous GAAP and use that carrying value as the deemed cost of property, plant and equipment.

*Usetul life of certain assets are different than the life prescribed under Schedule II to the Companies Act, 2013 and those have been determined based on technical evaluation by the management. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used. An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss when the asset is derecognised. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

45 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The useful live of intangible assets are as follows:

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

46 Contingent liabilities

1. Income Tax Demands

Demand raised by Income Tax Authorities of Rs. 17.85 Lakh outstanding as on 31/03/2023. The

matter is being persued with the Income Tax authorities for necessary rectification and correction.

47 DISCLOSURE NOTE- IND AS 116

The Company adopted Ind AS 116 using the modified retrospective method of adoption, with the date of initial application on April 01, 2019. The Company elected to use the transition practical expedient to not reassess whether a contract is, or contains, a lease at April 01, 2019. Instead, the Company applied the standard only to contracts that were previously identified as leases applying Ind AS 17 and Appendix C of Ind AS 17 at the date of initial application. The Company also elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (short-term leases), and lease contracts for which the underlying asset is of low value (low-value assets).

The Company has leases contracts for land and premises. These lease arrangements for land are for a period upto 99 years and for premises are for a period upto 5 years. The Company also has certain leases of machinery and equipments with lease terms of 12 months or less with low value. The Company applies the ''short-term lease'' and ''lease of low-value assets'' recognition exemptions for these leases. The following impacts are recognised in financial position on account of recognition of right of use assets and lease liabilities.

49 Going concern

Management has determined that there is no material uncertainty that casts doubt on the entity''s ability to continue as a going concern therefore financials have been prepared on going concern basis.

50 Estimation of uncertainties relating to the global health pandemic from COVID-19:

The Company has evaluated the impact of COVID - 19 resulting from (i) the possibility of constraints to fulfil its performance obligations under the contract with customers;(ii) revision of estimations of costs to complete the contract because of additional efforts; (iii) termination or deferment of contracts by customers. The Company has concluded that the impact of COVID - 19 is not material based on these estimates. Due to the nature of the pandemic, the Company will continue to monitor developments to identify significant uncertainties relating to revenue in future periods.

The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of Investments and other financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company, as at the date of approval of these financial statements has used internal and external sources of information including credit reports and related information, economic forecasts and consensus estimates from market sources on the expected future demand of its products. The Company has performed analysis on the assumptions used and based on current estimates expects the carrying amount of these assets will be recovered.

55 Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

i) Ind AS 1 - Presentation of Financial Statements

This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the financial statements

ii) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its financial statements.

iii) Ind AS 12 - Income Taxes

This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and there is no impact on its financial statement

56 Approval of Financial Statements

The financial Statement are approved for issue by the company''s Board of Directors on 22nd May, 2023.

Notes forms intergral part of the Financial Statements As per our report of even date attached

For Gianender & Associates By Order of the Board for RACL Geartech Ltd

Chartered Accountants

_{FRN 004661N} GURSHARAN SINGH JAGDISH SHASHANK RAMESH ANIKHINDI

(Chairman & M.D.) KESWANI (Director)

DIN: 00057602 (Director) DIN : 07787889

DIN:02146267

Ayush Goswami D.R.ARYA MALINI BANSAL ANIL SHARMA

(Partner) (Director & CFO) (Director) (Director)

M.No:545800 DIN:00057582 DIN :00167993 DIN :00157911

NARINDER PAUL KAUR HPS BEDI NEHA BAHAL

(Director) (Director) (Company Secretary)

DIN: 02435942 DIN : 05217488 ICSI MEM. NO. 40272

Place: Delhi Place: Noida

Date : 22nd May, 2023 Date : 22nd May, 2023

UDIN: 23545800BGVTTK4330

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Mar 31, 2018

1. GENERAL INFORMATION

RACL Geartech Ltd (referred to as ‘RACL'' or ‘Company'') was established in the year 1989 for producing automotive components in the field of Motorcycles & Scooters, 3&4 Wheeler Passenger & Cargo Vehicles, Agricultural Machinery, Tractors, ATV, Light & Heavy Commercial Vehicles, etc. The company has also expanded into sub-assemblies, industrial Gears for electrical switch Gears and Circuit Breakers, Winches and Cranes.

It is a customer centric Organisation obsessed with world class benchmarking and are supplying to top Global OEM''s like BMW Mottarad, Germany, Kubota Corporation (Japan, Thailand and USA) , IT Switzerland (Same Group Company), KTM AG (Austria) Schneider Electric (Germany) , Dana (Italy and China) amongst others .

A BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

(a) Statement of Compliance

The shares of the company are listed on Bombay Stock Exchange(BSE).

The Company''s financial statements complies in all material aspects with Indian Accounting Standards (Ind AS) notified under Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Companies Act, 2013 (the Act).

The financial statements up to the year ended 31 March 2017 were prepared in accordance with the Accounting Standards notified under the Companies (Accounting Standard) Rules, 2006 as amended and other relevant provisions of the Act (Previous GAAP).

These financial statements are the first financial statements of the Company under Ind AS. Refer Note no 41 for an explanation on how the transition from previous GAAP to IndAS has affected the Company''s financial position, financial performance and cash flows.

Dates for Ind As conversion:

(b) Basis of measurement

The financial statements have been prepared on a historical cost basis, except for the following items :

(c) Use of estimates and judgments

Preparation of these financial statements is in conformity with IndAS. It requires the management to make estimates and assumptions considered in the reported amounts of assets, liabilities (including contingent liabilities), income and expenses. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize. Estimates include the useful lives of property plant and equipment and intangible fixed assets, allowance for expected credit loss, future obligations in respect of retirement benefit plans, fair value measurement etc.

(d) Measurement of fair values

Accounting Policies and disclosures requires measurement of fair values for both financial and non-financial assets and liabilities. Fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that entity can access at measurement date.

- Level 2 inputs other than quoted prices included in Level 1, that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and

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

(e) Operating Cycle

Based on the nature of products/ activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current

Presentation of financial statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in Schedule III to the Companies Act, 2013 modified in accordance with the requirements of Ind AS. The Cash Flow Statement has been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash Flows”. The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards.

Amounts in the financial statements are presented in Indian Rupees, rounded of to Rupees in Lakhs in line with the requirements of schedule III.

i. Terms and rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs10 per share. Each holder of the equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend, if any proposed, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March'' 2018, no dividend is declared by Board of Directors. ( Previous year : NIL)

In the event of liquidation of the company the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferencial amounts in the proportion to number of equity shares held by the shareholders.

2 Disclosure pursuant to Ind AS 19 “Employee Benefit”

The details of various employee benefit provided to employee areas under:

Defined Benefit Plans

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, as defined benefit plan. The gratuity plan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested year of employment i.e. five years. The liability of gratuity plan is provided based on actuarial valuation as at the end of each financial year based on which the Company contributes the ascertained liability to Life Insurance Corporation of India with whom the plan assets are maintained. These plans typically expose the Company to actuarial risks such as: investment risk, inherent interest rate risk , longevity risk and salary risk, Investment Risk.

Interest Rate Risk The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase Longevity Risk.

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary Risk Higher than expected increases in salary will increase the defined benefit obligation.

The most recent actuarial valuation for determining present value of the defined benefit obligation were carried out as at March 31, 2018 by Mr. I Sambasavi Rao (Membership no. 158), Fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost, were measured using the projected unit credit method. The principal assumption used for the purpose of the actuarial valuations were as follows:-”

3 Disclosure of Segmental reporting pursuant to Ind AS 108 “Segmental Reporting”

Ind AS 108 that relates to segmentalreporting is not applicable as the company does not have any identifible segment. The Company deals only in Automative Components meant for two wheeled, three wheeled and four wheeled Vehicles.

Remuneration & Perks include payment to Mr. Gursharan Singh, Chairman & Managing Director Rs. 97.60 Lakhs( Prev Year Rs 76.45Lakhs), Mr. Dev Raj Arya, Director & CFO Rs. 48.58 Lakhs( Prev Year Rs. 39.65Lakhs) Mr. Hitesh Kumar, Company Secretary Rs. 5.89 Lakhs (Prev Year Rs 4.57 Lakhs), KMP''s of the company.

Remuneration & Perks paid to Mrs. Narinder Paul Kaur ( as retainership fees), Rs 13.20 Lakhs(Prev Year Rs. 10.80 Lakhs), Ms Ranvita Singh Rs. Nil ( Prev Year 1.91Lakhs) and Mr. Prabh Mehar Singh Rs 10.11 Lakhs (Prev year Rs 7.09Lakhs) , Relatives of Key Managerial Person.

Director Sitting Fees is paid to Mrs. Narinder Paul Kaur, Non executive Director Rs. 0.75 Lakhs (Prev. Year Rs 0.90 Lakhs).

Financial Instruments

4 Capital Managment

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising the return to stakeholders through efficient allocation of capital towards expansion of business, opitimisation of working capital requirements and deployment of surplus funds into various investment options. For the purpose of the company''s capital management, capital includes issued equity capital, share premium , term loans from banks and financial institutions and all other equity reserves attributable to the equity holders.

The carrying amount of financial assets/liabilities including trade receivables and payables and others; measured at amortised cost are considered to be the same as their fair values, due to their short term nature.

The carrying value of Rupee Term Loan approximate fair value as the instruments are at prevailing market rate.

The Fair values are all measured at Level 3.

5 Financial Risk Management Objectives

The company''s activities expose it to variety of financial risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. market risk, credit risk and liquidity risk. The company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management systems are reviewed annually to reflect changes in market conditions and the Company''s activities. The Board of Directors oversee compliance with the Company''s risk management policies and procedures, and reviews the risk management framework.

A) Market risk

The 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.

i Foreign Currency Risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate.

ii Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Interest risk arises to the company mainly from Long term borrowings with variable rates. The company measures risk through sensitivity analysis.

Currently, Lending by Commercial Banks is at variable rate, which is an inherent business risk.

B) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial assets.

The company is exposed to liquidity risk due to bank borrowings and trade and other payables.

The company measures risk by forecasting cash flows.

The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due without incurring unacceptable losses or risking damage to the Company''s reputation. The Company ensures that it has sufficient fund to meet expected operational expenses, servicing of financial obligations.

Details of Ind AS Adjustments:-

a) Miscellaneous Expenditure not written off transferred to Retained Earnings. - Rs.262.62 Lakhs

b) Bill Discounting recognised by stating Trade Receivables at gross value and recognising amount received from RBL Ltd-Rs.2024.26 Lakhs

c) Rectification of error -Amount transferred from Cash Credit Account to FD account -Rs.230.00 Lakhs

d) Foreign Currency in hand restated at 31-03-2016. Rectification of error -Rs.0.08 Lakhs

e) Subsidy from UPSIDC transferred to Retained Earnings- Rs.2.00 Lakhs

f) Revaluation Reserve on 31-03-2016 transferred to Retained Earnings - Rs.1102.69 Lakhs

g) Acturial Losses on 01-04-2016 recognised in Other Comprehensive Income - Rs.57.01 Lakhs

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Mar 31, 2016

1. There is only one class of shares of company (i.e Equity shares)

2. The company does not have any Holding ,Subsidiary or Associates of holding company.

3. Company has forfeited 1008400 equity shares of Rs. 10/- each (on 21.04.2003) and 1900000 convertible share warrants having paid up value of Rs. 1/- each (on 19.04.2010).

4. Loans from Bank of India, Noida Branch is secured in the following manners:

5 First charge by way of hypothecation on entire Stocks and Book Debts of the company.

6. First charge over entire Fixed Assets of the company excluding Land and Building & Vehicles (both present & future).

7. Extension of EQM of company''s land and building at Gajraula U.P

The advance is also secured by the personal guarantee (joint & several) of Shri Gursharan Singh and Shri D.R.Arya.

8. The company has taken a corporate loan of Rs. 600.00 lacs from RBL Bank Limited (formerly The Ratnakar Bank Limited). The said loan is secured by way of second charge on entire current assets & fixed assets of the company (existing & future).

9. Interest free deferred sales tax loan availed in previous years from Pradeshiya Industrial & Investment Corporation of UP Ltd (PICUP) is secured by way of second charge on all asset, whether immovable or movable of the company along with extension of mortgage on immovable assets of the company.

10. Loans from Bank of India, Noida Branch is secured in the following manners:

11. First charge by way of hypothecation on entire Stocks and Book Debts of the company.

12. First charge over entire Fixed Assets of the company excluding Land and Building & Vehicles (both present & future).

13. Extension of EQM of company''s land and building at Gajraula U.P

The advance is also secured by the personal guarantee (joint & several) of Shri Gursharan Singh and Shri D.R.Arya.

14. The Company has adopted Accounting Standard 15 on employees benefits w.e.f. April 1, 2009 relevant disclosure are as under :

Details in respect of Gratuity and Leave Encashment are as under :

15. Where in respect of an issue of securities made for a specific purpose, the whole or part of the amount has not been used for the specific purpose at the balance sheet date, Indicate below how such unutilized amounts have been used or invested.

NIL

16. Major expenditure on development of new components, where the benefit of such work is expected to accrue over an extended period and is not exhausted during the period covered by the Profit & Loss Account is treated as deferred revenue expenditure and written off over a period of five years. Accordingly 20% of such expenditure has been charged to revenue account and balance carried over to be charged in the subsequent years.

17. The company has been pursuing the civil suit against Mr. JPS Kanwar for the recovery of Rs.488.88 lacs & the same shall be deemed to be income of the company as & when received.

35 The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Further no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

18. The company had sent balance confirmation letters to the customers. The company has received balance confirmations from some of the parties.

19 In the opinion of the Board of Directors, Current Assets Loans and Advances shall have a value on realization, value on realization, in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet.

20 Accounting Standard 17 that relates to segmental reporting is not applicable as the company does not have any identifiable segment as defined in Accounting Standards. Moreover, the company deals only in the automotive components meant for two wheeled, three wheeled and four wheeled vehicles.

21 Accounting Standard 19 for lease accounting is not applicable as there were no lease transaction.

22 Previous year figures has been regrouped/rearranged.

23 RELATED PARTY DISCLOSURE

24. As per Annexure

25. As per Annexure

We have verified the above cash flow statement of RACL Geartech Ltd. (Formerly Raunaq Automotive Components Ltd). Audited Financial Statements for the year ended 31st March, 2016 and found the same in accordance therewith and also with the requirement of clause 32 of the listing agreement with Stock Exchanges.

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Mar 31, 2015

1 Where in respect of an issue of securities made for a specific purpose, the whole or part of the amount has not been used for the specific purpose at the balance sheet date, Indicate below how such unutilized amounts have been used or invested.

NIL

2 Major expenditure on development of new components, where the benefit of such work is expected to accrue over an extended period and is not exhausted during the period covered by the Profit & Loss Account is treated as deferred revenue expenditure and written off over a period of five years. Accordingly 20% of such expenditure has been charged to revenue account and balance carried over to be charged in the subsequent years.

3 The company has been pursuing the civil suit against Mr. JPS Kanwar for the recovery of Rs.488.88 lacs.

4 The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Further no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

5 The company had sent balance confirmation letters to the customers. The company has received balance confirmations from some of the parties.

6 In the opinion of the Board of Directors, Current Assets Loans and Advances shall have a value on realization,value on realization, in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet.

7 Accounting Standard 17 that relates to segmental reporting is not applicable as the company does not have any identifiable segment as defined in Accounting Standards. Moreover, the company deals only in the automotive components meant for two wheeled, three wheeled and four wheeled vehicles.

8 Accounting Standard 19 for lease accounting is not applicable as there were no lease transaction.

9 RELATED PARTY DISCLOSURE

As on 31-03-2015, none of the Directors is interested in any of the material related party transactions.

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Mar 31, 2014

The previous year figures have been regrouped/reclassified,wherever necessary to conform to the current year presentation

1.1 There is only one class of shares of Company (i.e Equity shares)

1.2 The Company does not have any Holding, Subsidiary or Associates of holding Company.

1.3 Company has forfeited 1008400 equity sharesof Rs. 10/- each (on 21.04.2003) and 1900000 convertible share warrants having paid up value of Re. 1/- each (on 19.04.2010)

2.1 There has been no default in repayment of loans and interest

2.2 Secured term loans from Banks and Deffered payment liabilities (Deferred Sales tax loan) have been guaranteed by whole time directors.

2.3 Maturity Profile of term loans are as set out below:

2015-16 2016-17 2017-18 2018-19 2019-20 1st year 2nd year 3rd year 4th year 5th year

Term loans from bank 717.52 499.60 91 91 46 (Secured) Unsecured

2.4 Term Loan from Bank of India, Noida Branch is secured by 1st charge created by equitable mortgage of land & buildings thereon and hypothecation of entire immovable assets and plant & machinery,spares,tools and acessories and other assets (except book debts, other recoverable); both present and future ,subject to prior charge in favour of Company''s bankers on inventories and book debts & other recoverable created for security of the borrowings for working capital and second charge on immovable assets.

2.5 The Company has taken a corporate loan of Rs. 600.00 lacsfrom The Ratnakar Bank Limited.The said loan is secured by way of second charge on entire current assets & fixed assets of the Company (existing & future).

2.6 Interest free deferred sales tax loan availed in previous years from Pradeshiya Industrial & Investment Corporation of UP Ltd. (PICUP) is secured by way of second charge on all asset, whether immovable or movable of the Company along with extension of mortgage on immovable assets of the Company.

3.1 The cash credit limit from Bank of India are secured by way of hypothecation & first charge on inventories ,book debts and other recievables both present and future and by way of second charge on immovable assets of the Company. (Rs in lacs)

4 Contingent liabilities and commitments As at 31 As at 31 March 2014 March 2013

(to the extent not provided for)

(i) Contingent Liabilities

(a) Claims against the Company not — — acknowledged as debt

(b) Guarantees — —

(c) Oustanding amount of letter of Credit — —

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for — —

(b) Uncalled liability on shares andd other investments partly paid — —

(c) Other commitments (specify nature) — —

Total — —

5 Where in respect of an issue of securities made for a specific purpose, the whole or part of the amount has not been used for the specific purpose at the balance sheet date, Indicate below how such unutilized amounts have been used or invested. NIL

6 Major expenditure on development of new components, where the benefit of such work is expected to accrue over an extended period and is not exhausted during the period covered by the Profit & Loss Account is treated as deferred revenue expenditure and written off over a period of five years. Accordingly 20% of such expenditure has been charged to revenue account and balance carried over to be charged in the subsequent years.

7. The Company has been pursuing the civil suit against Mr. JPS Kanwar for the recovery of Rs.488.88 lacs.

8. The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Further no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

9. The Company had sent balance confirmation letters to the customers. The Company has received balance confirmations from some of the parties.

10 Consumption of Raw Material

11 In the opinion of the Board of Directors, Current Assets Loans and Advances shall have a value on realization, value on realization, in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet.

12 Accounting Standard 17 that relates to segmental reporting is not applicable as the Company does not have any identifiable segment as defined in Accounting Standards. Moreover, the Company deals only in the automotive components meant for two wheeled, three wheeled and four wheeled vehicles.

13 Accounting Standard 19 for lease accounting is not applicable as there were no lease transaction.

14 RELATED PARTY DISCLOSURE

As on 31-03-2014, none of the Directors is interested in any of the related party transactions.

We have verified the above cash flow statement of RAUNAQ AUTOMOTIVE COMPONENTS LTD. derived from Audited Financial Statements for the year ended 31st March, 2014 and found the same in accordance therewith, and also with the requirement of clause 32 of the listing agreement with Stock Exchanges.

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Mar 31, 2013

1 Where in respect of an issue of securities made for a specific purpose, the whole or part of the amount has not been used for the specific purpose at the balance sheet date, Indicate below how such unutilized amounts have been used or invested. NIL

2 Major expenditure on development of new components, where the benefit of such work is expected to accrue over an extended period and is not exhausted during the period covered by the Profit & Loss Account is treated as deferred revenue expenditure and written off over a period of five years. Accordingly 20% of such expenditure has been charged to revenue account and balance carried over to be charged in the subsequent years.

3 The company has been pursuing the civil suit against Mr. JPS Kanwar for the recovery of Rs.488.88 lacs.

4 The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Further no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

5 The company had sent balance confirmation letters to the customers. The company has received balance confirmations from some of the parties.

6 In the opinion of the Board of Directors, Current Assets Loans and Advances shall have a value on realization, in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet.

7 Accounting Standard 17 that relates to segmental reporting is not applicable as the company does not have any identifiable segment as defined in Accounting Standards. Moreover, the company deals only in the automotive components meant for two wheeled, three wheeled and four wheeled vehicles.

8 Accounting Standard 19 for lease accounting is not applicable as there were no lease transaction.

9 RELATED PARTY DISCLOSURE

As on 31-03-2013, none of the Directors is interested in any of the related party transactions.

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Mar 31, 2012

1.1 There is only one class of shares of company (i.e Equity shares)

1.2 The company does not have any Holding, Subsidiary or Associates of holding company.

1.3 Company has forfeited 1008400 partly paid equity shares of Rs. 10/- each (on 21-04-2003) and 1900000 convertible share warrants having paid up value of Re. 1/- each (on 19-04-2010).

2.1 There has been no default in repayment of loans and interest

2.2 Secured term loans from Banks and Deffered payment liabilities (Deferred Sales tax loan) have been guaranteed by whole time directors.

2.3 Term Loan from Bank of India,Noida Branch is secured by 1st charge created by equitable mortgage of land & buildings thereon and hypothecation of entire immovable assets and plant & machinery,spares,tools and acessories and other assets (except book debts, other recoverable); both present and future .subject to prior charge in favour of company's bankers on inventories and book debts & other recoverable created for security of the borrowings for working capital and second charge on immovable assets.

2.4 The company has taken a Corporate loan of Rs. 600.00 lacs from The Ratnakar Bank Limited, out of which company has availed Rs. 300.00 lacs on 31st March 2012. The said loan is secured by way of second charge on entire current assets & fixed assets of the company (existing & future).

2.5 Interest free deferred sales tax loan availed in previous years from Pradeshiya Industrial & Investment Corporation of UP Ltd (PICUP) is secured by way of second charge on all asset .whether immovable or movable of the company along with extension of mortgage on immovable assets of the company.

3.1 The cash credit limit from Bank of India are secured by way of hypothecation & first charge on inventories ,book debts and other recievables both present and future and by way of second charge on immovable assets of the company.

4.1 The margin money on Letter of Credit is secured by pledging of Term Deposit Receipts to the schedule Bank.

(Rs. in lacs)

5 Contingent liabilities and commitments As at 31 March 2012 As at 31 March 2011

(to the extent not provided for)

(i) Contingent Liabilities

(a) Claims against the company not acknowledged as debt - -

(b) Guarantees 51.01 -

(c) Outstanding amount of letter of Credit 135.62 265.81

186.63 265.81

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for - -

(b) Uncalled liability on shares and other investments partly paid - -

(c) Other commitments (specify nature) - -

Total - -

186.63 265.81

6 Where in respect of an issue of securities made for a specific purpose, the whole or part of the amount has not been used for the specific purpose at the balance sheet date, Indicate below how such unutilized amounts have been used or invested. NIL *

7 Major expenditure on development of new components, where the benefit of such work is expected to accrue over an extended period and is not exhausted during the period covered by the Profit & Loss Account is treated as deferred revenue expenditure and written off over a period of five years. Accordingly 20% of such expenditure has been charged to revenue account and balance carried over to be charged in the subsequent years.

8 The company has been pursuing the civil suit against Mr. JPS Kanwar for the recovery of Rs.488.88 lacs.

9 The Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Further no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

10 The company had sent balance confirmation letters to the customers. The company has received balance confirmations from some of the parties.

11 In the opinion of the Board of Directors, Current Assets Loans and Advances shall have a value on realization,value on realization, in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet.

12 Accounting Standard 17 that relates to segmental reporting is not applicable as the company does not have any identifiable segment as defined in Accounting Standards. Moreover, the company deals only in the automotive components meant for two wheeled, three wheeled and four wheeled vehicles.

13 Accounting Standard 19 for lease accounting is not applicable as there were no lease transaction.

14 RELATED PARTY DISCLOSURE

As on 31-03-2012, none of the Directors is interested in any of the related party transactions.

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Mar 31, 2010

(1) Major expenditure on development of new components, where the benefit of such work is expected to accrue over an extended period and is not exhausted during the period covered by the Profit & Loss Account is treated as deferred revenue expenditure and written off over a period of five years. Accordingly 20% of such expenditure has been charged to revenue account and balance carried over to be charged in the subsequent years.

(2) The company has been pursuing the civil suit against Mr. JPS Kanwar for the recovery of Rs.488.88 lacs.

(3) The Company has initiated the process of obtaining confirmation from suppliers who have registered . themselves under the Micro Small Medium Enterprises Development Act, 2006 (MSMED Act, 2006). Further no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

(4) The Company has adopted Accounting Standard 15 on employees benefits w.e.f. April 1, 2009 relevant disclosure are as under:

(5) The company had sent balance confirmation letters to the customers. The company has received balance confirmations from some of the parties.

(6) a) Term Loan from State Bank of India, Nehru Place Branch is secured by 1st Charge created by equitable mortgage of land and buildings thereon and hypothecation of entire immovable assets and plant & machinery, spares, tools and accessories and other assets (except book debts, other recoverable); both present and future, subject to prior charge in favour of companys bankers on inventories and book debts & other recoverable created for security of the borrowings for working capital and second charge on immovable assets.

b) Interest Free deferred sales tax loan availed in previous years from Pradeshiya Industrial & Investment Corporation of UP Ltd. (PICUP) is secured by way of second charge on all assets, whether immovable or movable, of the company along with extension of mortgage on Immovable assets of the company.

c) The cash credit limits from State Bank of India are secured by way of hypothecation & first charge on inventories, book debts and other receivables, both present and future and by way of second charge on immovable assets of the company.

d) The margin money on Letter of Credit is secured by pledging of Term Deposit Receipts to the Schedule Bank.

(7) Contingent liabilities not provided for: (Rs. In lacs)

As at As at

31.03.2010 31.03.2009

a. Outstanding amount of Letter of Credits - 19.80

b. Bank Guarantee 29.00 10.00

(8) Estimated amount of the contracts remaining to be executed. NIL NIL



(9) Additional information pursuant to Part II of Schedule VI to the Companies Act, 1956 is as follows and is based upon the information considered as sufficient by the management to give these in the manner as given in the accounts and notes:

(10) In the opinion of the Board of Directors, Current Assets Loans and Advances shall have a value on realization, in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet.

(11) The Company had issued 19.00 lacs convertible warrant of face value of Rs.10/- each at a premium of Rs.9/- per warrant in the financial year 2008-09. The company had received an amount of Rs.2/- per warrant (including a premium of Rs.1/- per warrant) aggregating Rs.38.00 lacs. The above amount has been forfeited by the company due to non payment of allotment money by the applicants. The same has been transferred to share forfeiture/premium account.

(12) Accounting Standard 17 that relates to segmental reporting is not applicable as the company does not have any identifiable segment as defined in Accounting Standards. Moreover, the company deals only in the automotive components meant for two wheeled, three wheeled and four wheeled vehicles.

(13) Accounting Standard 19 for lease accounting is not applicable as there were no lease transaction.

(14) RELATED PARTY DISCLOSURE

As. on 31-03-2010, none of the Directors is interested in any of the related party transactions.

(15) Schedule 1 to 17 form integral part of the Balance Sheet & Profit & Loss Account and have been duly authenticated.

(16) Previous year figures have been regrouped/recast wherever considered necessary.