Notes to Accounts of Rane (Madras) Ltd.

Mar 31, 2025

1.27 Provisions and Contingent Liabilities

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. Expected future
operating losses are not provided for.

Where the Company expects some or all of the
expenditure required to settle a provision will be
reimbursed by another party, the reimbursement is
recognised when, and only when, it is virtually certain
that reimbursement will be received if the entity settles
the obligation. The reimbursement is treated as a
separate asset.

The amount recognised 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 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).

Contingent liability is disclosed for (i) a possible
obligation that arises from past events and whose
existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future
events not wholly within the control of the entity or (ii)
Present obligations arising from past events where it is
not probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation or a reliable estimate of the amount of
the obligation cannot be made. 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 recognised as an asset if it is virtually
certain that reimbursement will be received and the
amount of the receivable can be measured reliably.

Provisions for Warranty

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 upto two
years. As per the terms of the contracts, the Company

provides post-contract services / warranty support to
some of its customers. The Company accounts for the
post contract support / provision for warranty on the
basis of the information available with the Management
duly taking into account the current and past technical
estimates. Provision of warranties are recognized net
of reimbursements.

1.28 Taxation

Income tax expense represents the sum of the current
tax and deferred tax.

Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable
in respect of previous years. The amount of current
tax payable or receivable is the best estimate of the
tax amount expected to be paid or received that
reflects uncertainty related to income taxes, if any. It
is measured using tax rates enacted or substantively
enacted at the reporting date.

Current tax assets and liabilities are offset only if there
is a legally enforceable right to set off the recognised
amounts, and it is intended to realise the asset and
settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.
Deferred tax is also recognised in respect of carried
forward tax losses and tax credits. Deferred tax is not
recognised for:

- temporary differences on the initial recognition
of assets or liabilities in a transaction that is not
a business combination and that affects neither
accounting nor taxable profit or loss at the time
of transaction;

- temporary differences related to investments in
subsidiaries, associates and joint arrangements
to the extent that the Company is able to control
the timing of the reversal of the temporary
differences and it is probable that they will not
reverse in the foreseeable future; and

- taxable temporary differences arising on the
initial recognition of goodwill.

Temporary differences in relation to a right-of-use
asset and a lease liability for a specific lease are
regarded as a net package (the lease) for the purpose
of recognising deferred tax.

Deferred tax assets are recognised for unused tax
losses, unused tax credits and deductible temporary
differences to the extent that it is probable that future
taxable profits will be available against which they
can be used. Future taxable profits are determined
based on the reversal of relevant taxable temporary
differences. If the amount of taxable temporary
differences is insufficient to recognise a deferred
tax asset in full, then future taxable profits, adjusted
for reversals of existing temporary differences, are
considered, based on the business plans for individual
subsidiaries in the Company. Deferred tax assets are
reviewed at each reporting date and are reduced to the
extent that it is no longer probable that the related tax
benefit will be realised; such reductions are reversed
when the probability of future taxable profits improves.

Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset is
realised or the liability is settled, based on the laws
that have been enacted or substantively enacted by
the reporting date.

The measurement of deferred tax reflects the tax
consequences that would follow from the manner in
which the Company expects, at the reporting date,
to recover or settle the carrying amount of its assets
and liabilities. For this purpose, the carrying amount
of investment property measured at fair value is
presumed to be recovered through sale, and the
Company has not rebutted this presumption.

Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by
the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current
tax liabilities and assets on a net basis or their tax
assets and liabilities will be realised simultaneously.

Deferred tax liabilities are not recognised for
temporary differences between the carrying amount
and tax bases of investments in subsidiaries where the
Company is able to control the timing of the reversal
of the temporary differences and it is probable that the
differences will not reverse in the foreseeable future.

Deferred tax assets are not recognised for temporary
differences between the carrying amount and tax
bases of investments in subsidiaries where it is not
probable that the differences will reverse in the
foreseeable future and taxable profit will not be
available against which the temporary difference can
be utilised. Current and deferred tax are recognised in
profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly
in equity, in which case, the current and deferred tax

are recognised in other comprehensive income or
directly in equity respectively.

1.29 Financial instruments

i. Recognition and initial measurement

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

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

ii. Classification and subsequent measurement
Financial assets

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

- amortised cost;

- fair value through other comprehensive

income (FVOCI); or

- FVTPL

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

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

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

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

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

All financial assets not classified as measured at
amortised cost or FVOCI as described above are
measured at FVTPL. This includes all derivative financial
assets. On initial recognition, the Company has

irrevocably designated a financial asset that otherwise
meets the requirements to be measured at amortised
cost or at FVOCI as at FVTPL if doing so eliminates
or significantly reduces an accounting mismatch that
would otherwise arise.

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

Financial assets - Business model assessment

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

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

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

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

- how managers of the business are compensated
- e.g. whether compensation is based on the fair
value of the assets managed or the contractual
cash flows collected; and

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

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

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

In assessing whether the contractual cash flows are
solely payments of principal and interest, the Company

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

- contingent events that would change the amount
or timing of cash flows;

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

- prepayment and extension features; and

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

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

Financial liabilities: Classification, subsequent
measurement and gains and losses

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

iii. Derecognition

Financial assets

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

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

Financial liabilities

The Company derecognises a financial liability
when its contractual obligations are discharged
or cancelled, or expire.

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

Interest rate benchmark reform

When the basis for determining the contractual
cash flows of a financial asset or financial liability
measured at amortised cost changed as a result
of interest rate benchmark reform, the Company
updated the effective interest rate of the financial
asset or financial liability to reflect the change
that is required by the reform. A change in the
basis for determining the contractual cash flows
is required by interest rate benchmark reform if
the following conditions are met:

- the change is necessary as a direct
consequence of the reform; and

- the new basis for determining the
contractual cash flows is economically
equivalent to the previous basis - i.e. the
basis immediately before the change.

When changes were made to a financial asset
or financial liability in addition to changes to
the basis for determining the contractual cash
flows required by interest rate benchmark
reform, the Company first updated the effective
interest rate of the financial asset or financial
liability to reflect the change that is required by
interest rate benchmark reform. After that, the
Company applied the policies on accounting for
modifications to the additional changes.

iv. Offsetting

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

Impairment of financial instruments

The Company recognise loss allowance for expected
credit loss on financial assets measured at amortised
cost.

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

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

- significant financial difficulty;

- a breach of contract such as a default or being
past due;

- the restructuring of a loan or advance by the
Company on terms that the Company would not
consider otherwise;

- it is probable that the borrower will enter
bankruptcy or other financial reorganisation; or

- the disappearance of an active market for a
security because of financial difficulties.

Loss allowances for trade receivables are measured
at an amount equal to lifetime expected credit losses.
Lifetime expected credit losses are credit losses that
result from all possible default events over expected
life of financial instrument. The Company follows
the simplified approach permitted by Ind AS 109

Financial Instruments for recognition of impairment
loss allowance. The application of simplified approach
does not require the Company to track changes in
credit risk. The Company calculates the expected credit
losses on trade receivables using a provision matrix on
the basis of its historical credit loss experience.

The maximum period considered when estimating
expected credit losses is the maximum contractual
period over which the Company is exposed to credit
risk.

When determining whether the credit risk of a financial
asset has increased significantly since initial recognition
and when estimating expected credit losses, the
Company considers reasonable and supportable
information that is relevant and available without
undue cost or effort. This includes both quantitative
and qualitative information and analysis, based on the
Company''s historical experience and informed credit
assessment and including forward looking information.

The Company considers a financial asset to be in
default when:

- the recipient is unlikely to pay its credit obligations
to the Company in full, without recourse by the
Company to actions such as realising security (if
any is held); or

- the financial asset is more than 180/270 days
past due for domestic/ export receivables.

Measurement of expected credit losses

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

Presentation of allowance for expected credit losses
in the balance sheet

Loss allowances for financial assets measured at
amortised cost are deducted from the gross carrying
amount of the assets.

Write-off

The gross carrying amount of a financial asset is written
off when the Company has no reasonable expectations
of recovering a financial asset in its entirety or a portion
thereof. This is generally the case when the Company
determines that the debtor does not have assets or
sources of income that could generate sufficient cash
flows to repay the amounts subject to the write-off.
The company expects no significant recovery from
the amount written off. However, financial assets that
are written off could still be subject to enforcement

activities in order to comply with the Company''s
procedures for recovery of amounts due.

Financial and Corporate guarantee contracts

Company as a beneficiary: Financial guarantee
contracts involving the Company as a beneficiary are
accounted as per Ind AS 109. The Company assesses
whether the financial guarantee is a separate unit
of account (a separate component of the overall
arrangement) and recognises a liability as may be
applicable

Company as a guarantor: The Company on a case to
case basis elects to account for financial guarantee
contracts as a financial instrument or as an insurance
contract, as specified in Ind AS 109 on Financial
Instruments and Ind AS 117 on Insurance Contracts,
respectively. Wherever the Company has regarded its
financial guarantee contracts as insurance contracts,
at the end of each reporting period the company
performs a liability adequacy test, (i.e. it assesses the
likelihood of a pay-out based on current undiscounted
estimates of future cashflows), and any deficiency is
recognised in profit or loss.

Where they are treated as a financial instrument, the
financial guarantee contracts are recognised initially
as a liability at fair value, adjusted for transaction costs
that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at
the higher of the amount of less allowance determined
as per impairment requirements of Ind AS 109 and
the amount recognised less, when appropriate,
the cumulative amount of income recognised in
accordance with the principles of Ind AS 115.

1.30 Fair Value

A number of the Company''s accounting policies and
disclosures require measurement of fair values, for
both financial and non-financial assets and liabilities.
The Company has an established control framework
with respect to the measurement of fair values.

Fair values are categorised into different levels in a
fair value hierarchy based on the inputs used in the
valuation techniques as follows.

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

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

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

When measuring the fair value of an asset or a liability,
the Company uses observable market data as far as

possible. If the inputs used to measure the fair value
of an asset or a liability fall into different levels of the
fair value hierarchy, then the fair value measurement
is categorised in its entirety in the same level of the
fair value hierarchy as the lowest level input that is
significant to the entire measurement.

The Company recognises transfers between levels
of the fair value hierarchy at the end of the reporting
period during which the change has occurred.

Further information about the assumptions made in
measuring fair values is included in note 33 on financial
instruments.

1.31 Earnings Per Share

Basic earnings per share is computed by dividing the
net profit/(loss) after tax (including the post tax effect of
exceptional items, if any) for the period attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the
profit (considered in determination of basic earnings
per share) after considering the effect of interest and
other financing costs or income (net of attributable
taxes) associated with dilutive potential equity shares
by the weighted average number of equity shares
considered for deriving basic earnings per share
adjusted for the weighted average number of equity
shares that would have been issued upon conversion
of all dilutive potential equity shares.

1.32 Business Combination

In accordance with Ind AS 103, the Company accounts
for business combinations using the acquisition
method when control is transferred to the Company.
The consideration transferred for the business
combination is generally measured at fair value as at
the date the control is acquired (acquisition date), as
are the net identifiable assets acquired. Any goodwill
that arises is tested annually for impairment. Any
gain on a bargain purchase is recognised in OCI
and accumulated in equity as capital reserve if there
exists clear evidence of the underlying reasons for
classifying the business combination as resulting in a
bargain purchase; otherwise the gain is recognised
directly in equity as capital reserve. Transaction costs
are expensed as incurred, except to the extent related
to the issue of debt or equity securities.

The consideration transferred does not include
amounts related to the settlement of pre-existing
relationships with the acquiree. Such amounts are
generally recognised in profit or loss. Any contingent
consideration is measured at fair value at the date
of acquisition. If an obligation to pay contingent
consideration that meets the definition of a financial

instrument is classified as equity, then it is not
remeasured subsequently and settlement is accounted
for within equity. Other contingent consideration
is remeasured at fair value at each reporting date
and changes in the fair value of the contingent
consideration are recognised in profit or loss.

Business combinations involving entities or businesses
in which all the combining entities or businesses are
ultimately controlled by the same party or parties
both before and after the business combination and
where that control is not transitory are accounted for
as per the pooling of interest method. The business
combination is accounted for as if the business
combination had occurred at the beginning of the
earliest comparative period presented or, if later, at
the date that common control was established; for
this purpose, comparatives are revised. The assets and
liabilities acquired are recognised at their carrying
amounts. The identity of the reserves is preserved, and
they appear in the standalone financial statements of
the Company in the same form in which they appeared
in the financial statements of the acquired entity. The
difference, if any, between the consideration and
the amount of share capital of the acquired entity is
transferred to capital reserve.

1 .33 Dividend

The final dividend on shares is recorded as a liability
on the date of approval by shareholders and interim
dividends are recorded as liability on the date of
declaration by the Company''s Board of Directors.

1.34 Segment reporting

The Company is engaged in the activities related
to manufacture and supply of auto components for
transportation industry. The Chief Operating Decision
Maker (Board of Directors) review the operating
results of the Company as a whole for purposes of
making decisions about resources to be allocated and
assess its performance, the entire operations are to be
classified as a single segment, namely components for
transportation industry.

1.35 Recent pronouncements

Ministry of Corporate Affairs ("MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended March
31, 2025, MCA has notified Ind AS 117 Insurance
Contracts and amendments to Ind AS 116 -Leases,
relating to sale and leaseback transactions, applicable
to the Company w.e.f. April 1,2024. The Company has
reviewed the new pronouncements and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.

Impairment tests for goodwill

Goodwill has been allocated for impairment testing purposes to the identified cash-generating units - primarily to Light
Metal Castings business.

The Company tests whether goodwill has suffered any impairment on an annual basis. The recoverable amount of a cash
generating unit (CGU)-Light Metal Castings business is determined based on value-in-use calculations which require
the use of assumptions. The calculations use cash flow projections based on financial budgets for a five year period
approved by management.

Key assumptions used for value-in-use calculations

Value in use has been determined by discounting the future cash flows generated from the continuing use of the unit.
The calculation of the value in use is based on the following key assumptions:

* Fair Value Hierarchy (Level 1,2,3)

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-
the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data
and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3.

33.3 Financial risk management objectives

The Company''s activities expose it to a variety of financial risks : market risk, credit risk and liquidity risk. The Company''s
focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial
performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial
instruments to mitigate foreign exchange related risk exposures. The Company''s exposure to credit risk is influenced
mainly by the individual credit profile of each customer and the concentration of risk from the top few customers.

The risk management objective of the company is to hedge risk of change in the foreign currency exchange rates
associated with it''s direct & indirect transactions denominated in foreign currency. Since most of the transactions of the
company are denominated in its functional currency (INR), any foreign exchange fluctuation affects the profitability of the
Company and its financial position. Hedging provides stability to the financial performance by estimating the amount of
future cash flows and reducing volatility.

The Company shall follow a consistent policy of mitigating foreign exchange risk by entering into appropriate hedging
instruments as considered from time to time. Depending on the future outlook on currencies, the Company may keep the
exposures un-hedged or hedge only a part of the total exposure. The Company shall not enter into a foreign exchange
transaction for speculative purposes i.e. without any actual /anticipated underlying exposures.

The Company operates on a global platform and a portion of the business is transacted in multiple currencies.
Consequently, the Company is exposed to foreign exchange risk through its sales in the United States, European
Union and other parts of the world, and purchases from overseas suppliers in different foreign currencies. The
Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of
changes in exchange rates on foreign currency exposures.

Foreign Currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange
rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward
foreign exchange contracts.

The carrying amounts of the company''s foreign currency denominated monetary assets and monetary liabilities as
reported to the management are as follows :

Foreign Currency sensitivity analysis

The Company is mainly exposed to US Dollar and EURO currencies. The following table details the Company''s sensitivity
to a 5% increase and decrease against the relevant foreign currencies. 5% 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 5% change in foreign currency rates.
The sensitivity analysis includes loans to foreign operations within the Company where the denomination of the loan
is in a currency other than the functional currency of the lender or the borrower. A positive number below indicates an
increase in profit or equity where the Indian Rupee strengthens by 5% against the relevant currency. For a 5% weakening
of the Indian Rupee against the relevant currency, there would be an opposite impact on the profit or equity.

In management''s opinion, the sensitivity analysis is not a complete reflection of the inherent foreign exchange risk
considering the fact that the exposure at the end of the reporting period does not reflect the exposure during the year.

Derivative Financial Instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of
changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or
a financial institution. It is the policy of the Company to enter into forward foreign exchange contracts to cover specific
foreign currency payments and receipts. The Company also enters into forward foreign exchange contracts to manage
the risk associated with anticipated sales and purchase transactions ranging from 6 months to two year by covering a
specific range of exposure generated. Adjustments are made to the initial carrying amount of non-financial hedged
items when the anticipated sale or purchase transaction takes place.

(i) Expected credit loss for loans, security deposits and other financial assets

The estimated gross carrying amount at default is INR 0.90 Crores (March 31, 2024: INR 0.90 crores) for loans,
security deposits and other financial assets. Consequently there are no expected credit loss recognised for these
financial assets.

The credit risk on derivative financial instruments is limited because the counterparties are banks with high credit-
ratings.

(ii) Expected credit loss for trade receivables under simplified approach

The Company applies the simplified approach to provide for expected credit losses prescribed by Ind AS 109,
which permits the use of the lifetime expected loss provision for all trade receivables. It has computed expected
credit losses based on a provision matrix which takes into account historical credit loss experience based on : a)
Past trend of outstanding receivables over a rolling period of past 24 months and b) actual amount of outstanding
receivables as on the reporting date.

Further the Company, groups the trade receivables depending on location of the customers and accordingly credit
risk is determined.

(c) Liquidity risk management

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out
market positions. Due to the dynamic nature of the underlying businesses, treasury maintains flexibility in funding by
maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity
position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash
flows.

The following information provides details of the Company''s remaining contractual maturity for its financial liabilities
with agreed repayment periods. The below information has been drawn up based on the undiscounted cash flows of
financial liabilities based on the earliest date on which the Company can be required to pay and includes both interest
and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from
interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which
the Company may be required to pay.

The Company exceeded the threshold on certain covenants regarding financial ratios as at March 31,2024. However, it
had obtained waivers and / or revised thresholds from banks / financial institutions.

34 Segment reporting

The Company is engaged in the activities related to manufacture and supply of auto components for transportation
industry. The Chief Operating Decision Maker (Board of Directors) review the operating results of the company as a whole
for purposes of making decisions about resources to be allocated and assess its performance, the entire operations are
to be classified as a single segment, namely components for transportation industry. All the manufacturing facilities are
located in India. Accordingly, there is no other reportable segment as per Ind AS 108 Operating Segments.

34.3 Information about major customers

The Company is a manufacturer of steering and suspension linkage products, steering gear products, hydraulic products,
die-casting products, valves, engines and tappets, brake linings, disc pads, clutch facings, railway brake blocks and other
auto components for transportation industry.

The Company has no major customers i.e. greater than 10% of total sales.

(i) All the transactions with the related parties are on the same terms and conditions as those entered into with other
non-related customers and priced on arms length basis.

36 Employee benefit plans

A. Defined contribution plans

The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any expense
recognised in relation to these schemes represents the value of contributions payable during the period by the
Company at rates specified by the rules of those plans. The only amounts included in the balance sheet are those
relating to the prior months contributions that were not due to be paid until after the end of the reporting period.

The major defined contribution plans operated by the Company are as below:

(a) Provident fund

In accordance with the Employee''s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees
of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan,
in which both employees and the Company make monthly contributions at a specified percentage of the
covered employees'' salary.

The contributions, as specified under the law, are made to the Government.

(b) Superannuation fund

The Company has a superannuation plan for the benefit of its employees. Employees who are members of
the superannuation plan are entitled to benefits depending on the years of service and salary drawn.

The Company contributes up to 15% of the eligible employees'' salary to LIC every year. Such contributions
are recognised as an expense as and when incurred. The Company does not have any further obligation
beyond this contribution.

The total expense recognised in profit or loss of INR 18.70 Crores (for the year ended March 31,2024: INR
18.86 Crores) represents contributions payable to these plans by the company at rates specified in the rules
of the plans. As at March 31,2025, contributions of INR 2.84 Crores (as at March 31, 2024: INR 2.00 Crores)
due in respect to 2024-25 (2023-24) reporting period had not been paid over to the plans. The amounts were
paid subsequent to the end of the respective reporting periods.

38 Other statutory information

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

(ii) The Company has not traded or invested in Crypto currency or virtual currency during the financial year.

(iii) The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium or
any other sources or kind of funds) to any persons or entities, including foreign entities (Intermediaries) with the
understanding, whether recorded in writing or otherwise that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries other than in the
ordinary course of business.

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Parties (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(v) The Company does not have any transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such
as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(vi) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies
(ROC) beyond statutory period.

(vii) The Company has no transactions with struck off companies during the year.

(viii) Term loans were applied for the purpose they were obtained. Further, short term loans availed have not been
utilised for long term purposes by the Company.

(ix) The Company has not been declared as wilful defaulters by any bank or financial institution or government or any
government authority.

(x) The Company has not revalued its property, plant and equipment(including Right of use assts)/ intangible assets/
both during the current/previous year.

(xi) The Company has not entered into scheme of arrangements as per sections 230 to 237 of the Companies Act,
2013 except as mentioned in note 44.

(xii) Quarterly returns or statements of current assets filed by the Company for the sanctioned working capital loans
with banks or financial institutions along with reconciliation and reasons for discrepancies is as follows:

44 Amalgamation

(a) The Board of Directors of the Company in its meeting held on February 29, 2024, had approved the scheme of
amalgamation for the merger of the fellow subsidiaries of the Company viz. Rane Engine Valve Limited ("REVL”)
and Rane Brake Lining Limited ("RBL”) ("Transferor Companies”) with the Company, under Section 230 to 232 of the
Companies Act, 2013 and other applicable provisions. The aforesaid Scheme was sanctioned by Hon''ble National
Company Law Tribunal (NCLT) vide order dated March 24, 2025. The Scheme has become effective from April 01,
2024 upon filing of the certified copy of the orders passed by NCLT with the relevant Registrar of Companies on
April 07, 2025.

(b) As per the Scheme, 9 (Nine) equity shares of Rs.10/- each of the Company will be issued for every 20 (Twenty)
equity shares of INR 10/- each held in REVL and 21 (Twenty-One) equity shares of Rs.10/- each of the Company will
be issued for every 20 (Twenty) equity shares of INR 10/- each held in RBL.

45 Approval of financial statements

The financial statements were approved for issue by the Board of Directors on May 27, 2025.

For B S R & Co. LLP For and on behalf of the Board of Directors

Chartered Accountants Rane (Madras) Limited

Firm''s registration no. 101248W/W-100022

S Sethuraman Ganesh Lakshminarayan Harish Lakshman

Partner Director Chairman and Managing Director

Membership No.: 203491 DIN:00012583 DIN:00012602

B Gnanasambandam S Subha Shree

Chief Financial Officer Company Secretary

M. No: 18315

Place: Chennai Place: Chennai

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

---

Mar 31, 2024

Impairment tests for goodwill

Goodwill has been allocated for impairment testing purposes to the identified cash-generating units - primarily to Light Metal Castings India.

The Company tests whether goodwill has suffered any impairment on an annual basis. The recoverable amount of a cash generating unit (CGU)-Light Metal Castings India is determined based on value-in-use calculations which require the use of assumptions. The calculations use cash flow projections based on financial budgets for a five year period approved by management.

The discount rate is a pre-tax measure based on the rate of 10 year government bonds issued by the government in the relevant market and in the same currency as the cash flows, adjusted for a risk premium to reflect both the increased risk of investing in equities generally and the systemic risk of the specific CGU.

The discount rate was a post-tax measure estimated based on the weighted-average cost of capital, with a possible debt leveraging of 50% at a risk free rate of 7.05%.

The cash flow projections included specific estimates for five years and a terminal growth rate thereafter. The terminal growth rate was determined based on management''s estimate of the long-term compound annual EBITDA growth rate, consistent with the assumptions that a market participant would make.

The estimated recoverable amount of the CGU exceeded its carrying amount by approximately INR 156.87 crores (31 March 2023: INR 112.04 crores). Management has identified that a reasonably possible change in two key assumptions could cause the carrying amount to exceed the recoverable amount. The following table shows the amount by which these two assumptions would need to change individually for the estimated recoverable amount to be equal to the carrying amount.

The Management had assessed the fair value change as at March 31, 2023 and had recorded a reduction in fair value amounting to INR 223.28 crores for the previous year being shown as an exceptional item. In order to carry out the above assessment, projections of future cash flows of the operating step-down subsidiary based on the most recent long-term forecasts, including selling price and related volumes. Refer Note 33.2 for the details of key assumptions and sensitivities surrounding those assumptions.

Pursuant to the approval of the Board of Directors and Shareholders of the Company, Rane Madras International Holdings B.V. (the Company''s subsidiary) has sold its entire stake in LMCA (the Company''s step-down subsidiary) on September 14, 2023 for a consideration of USD 4.9 million. Consequently, RMIH has carried out a reduction of capital in the NCRPS issued to the Company wherein the face value was reduced from Euro 1 per share to Euro 0.08 per share and equity share capital wherein the face value was reduced from Euro 1 per share to Euro 0.01 per share. Accordingly, the Company has recorded a fair value loss arising there from aggregating to Rs. 121.56 crores in the standalone financial statements as an exceptional item.

The Management has assessed the fair value change as at March 31, 2024 and has recorded an incremental reduction in the fair value amounting to INR 12.36 crores based on the recoverable values of the underlying assets in RMIH as at the balance sheet date primarily resulting from certain non-routine events.

Rights, preferences and restrictions attached to Shares mentioned above :

The Company has one class of equity share having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The dividend when proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General meeting. Repayment of capital on liquidation will be in proportion to the number of equity shares held.

The Companies Act requires that where a Company purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal value of the shares so purchased shall be transferred to a capital redemption reserve account and details of such transfer shall be disclosed in the balance sheet. The capital redemption reserve account may be applied by the Company, in paying up unissued shares of the Company to be issued to shareholders of the Company as fully paid bonus shares. The Company established this reserve pursuant to the redemption of preference shares issued in earlier years.

The amount that can be distributed by the Company as dividend to its equity shareholders is determined based on the separate financial statements of the Company and also considering the requirements of the Companies Act, 2013. Balance of retained earnings at the end of the year includes cumulative other comprehensive loss arising from remeasurement of defined benefit obligations, net of tax, amounting to INR 4.94 crores as at March 31, 2024 (March 31, 2023: INR 4.27 crores)

The board has not declared dividend for the year ended March 31,2024 and March 31,2023.

Summary of borrowing arrangements

Secured loans include loan from banks. The Secured Loans outstanding as at March 31, 2024 and 2023 are secured by a charge created on the Company''s fixed assets both present and future (excluding immovable properties in Velachery).

The interest rate for INR loans range from 4.75% p.a to 10.76% p.a

*Secured loans include cash credit, packing credit, Buyers Credit and working capital demand loan from banks. The Secured Loans outstanding as at March 31,2024 and 2023 are secured on a pari passu basis by way of hypothecation of inventories and book debts.

Information about the Company''s exposure to interest rate, foreign currency and liquidity risks is included in note 33.

As indicated in Note 6, consequent to the sale of the entire stake in LMCA, RMIH has carried out a reduction of capital in NCRPS and equity shares issued to the Company. The Company has determined that it is eligible to claim the tax benefit arising from the underlying losses and has accordingly recorded a Deferred Tax Asset of INR 113.34 crores in the current year. The Company has also obtained legal advise in this matter and believes that it will have sufficient future taxable profits to utilize this asset.

23.1 Disaggregation of revenue information

The table below presents disaggregated revenues from contracts with customers which is recognised based on goods transferred at a point of time by geography and offerings of the Company. The payment terms vary with each customer but do not constitute any significant financing component cost.

As per the management, the below disaggregation best depicts the nature, amount, timing and uncertainty of how revenues and cash flows are affected by industry, market and other economic factors.

23.2 Trade Receivables

The Company classifies the right to consideration in exchange for goods transferred as receivable.

A receivable is a right to consideration that is unconditional upon passage of time. Revenue is recognised when the Company satisfies the performance obligation by transferring the promised goods to the customers.

Trade receivable are presented net of impairment in the Balance Sheet.

33 Financial instruments 33.1 Capital management

For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company.

The Company''s capital management is intended to create value for shareholders by achieving the long term and short term goals of the Company, maintain the Company as a going concern and maintain optimal structure.

The Company determines the amount of capital required on the basis of annual operating plan coupled with long term and strategic investment and expansion plans. The funding needs are met through cash generated from operations, long term and short term bank borrowings.

The Company monitors the capital structure on the basis of debt to equity of the Company.

Net debt includes interest bearing borrowings less cash and cash equivalents, other bank balances (including non-current earmarked balances) and current investments.

The table below summarises the net debt to equity ratio of the Company.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. 33.3 Financial risk management objectives

The Company''s activities expose it to a variety of financial risks : market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company''s exposure to credit risk is influenced mainly by the individual credit profile of each customer and the concentration of risk from the top few customers.

The risk management objective of the company is to hedge risk of change in the foreign currency exchange rates associated with it''s direct & indirect transactions denominated in foreign currency. Since most of the transactions of the company are denominated in its functional currency (INR), any foreign exchange fluctuation affects the profitability of the Company and its financial position. Hedging provides stability to the financial performance by estimating the amount of future cash flows and reducing volatility.

The Company shall follow a consistent policy of mitigating foreign exchange risk by entering into appropriate hedging instruments as considered from time to time. Depending on the future outlook on currencies, the Company may keep the exposures un-hedged or hedge only a part of the total exposure. The Company shall not enter into a foreign exchange transaction for speculative purposes i.e. without any actual /anticipated underlying exposures."

(a) Market risk

The Company operates on a global platform and a portion of the business is transacted in multiple currencies. Consequently, the Company is exposed to foreign exchange risk through its sales in the United States, European Union and other parts of the world, and purchases from overseas suppliers in different foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

Foreign Currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.

Foreign Currency sensitivity analysis

The Company is mainly exposed to US Dollar and EURO currencies. The following table details the Company''s sensitivity to a 5% increase and decrease against the relevant foreign currencies. 5% 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 5% change in foreign currency rates. The sensitivity analysis includes loans to foreign operations within the Company where the denomination of the loan is in a currency other than the functional currency of the lender or the borrower. A positive number below indicates an increase in profit or equity where the Indian Rupee strengthens by 5% against the relevant currency. For a 5% weakening of the Indian Rupee against the relevant currency, there would be an opposite impact on the profit or equity.

In management''s opinion, the sensitivity analysis is not a complete reflection of the inherent foreign exchange risk considering the fact that the exposure at the end of the reporting period does not reflect the exposure during the year.

Derivative Financial Instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. It is the policy of the Company to enter into forward foreign exchange contracts to cover specific foreign currency payments and receipts. The Company also enters into forward foreign exchange contracts to manage the risk associated with anticipated sales and purchase transactions ranging from 6 months to two year by covering a specific range of exposure generated. Adjustments are made to the initial carrying amount of non-financial hedged items when the anticipated sale or purchase transaction takes place.

As at March 31, 2024, the Company does not have any foreign currency forward contracts which are designated as hedge instruments and hence all gains and losses in respect of such contracts have been recorded in the statement of profit and loss.

Interest rate risk

The Company adopts appropriate policies to ensure that the interest rate risk exposure is minimised. This is achieved partly by entering into fixed-rate instruments and partly by borrowing at a floating rate.

(i) Expected credit loss for loans, security deposits and other financial assets

The estimated gross carrying amount at default is Rs. 0.90 Crores (March 31, 2023: Rs. 0.90 Crores) for loans, security deposits and other financial assets. Consequently there are no expected credit loss recognised for these financial assets.

The credit risk on derivative financial instruments is limited because the counterparties are banks with high credit-ratings.

(ii) Expected credit loss for trade receivables under simplified approach

Trade receivables consist of a large number of customers, spread across diverse geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable. The Company has adopted a policy of only dealing with creditworthy counterparties, where appropriate, as a means of mitigating the risk of financial loss from defaults.

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 based on : a) Past trend of outstanding receivables over a rolling period of past 24 months and b) actual amount of outstanding receivables as on the reporting date.

(c) Liquidity risk management

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows.

Liquidity and interest risk

The following information provides details of the Company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The below information has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay and includes both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

34 Segment reporting

The Company is engaged in the activities related to manufacture and supply of auto components for transportation industry. The Chief Operating Decision Maker (Board of Directors) review the operating results of the company as a whole for purposes of making decisions about resources to be allocated and assess its performance, the entire operations are to be classified as a single segment, namely components for transportation industry. All the manufacturing facilities are located in India. Accordingly, there is no other reportable segment as per Ind AS 108 Operating Segments.

The geographical information considered for disclosure are - India and Rest of the World. All the manufacturing facilities are located in India.

** Non- current assets are used in the operations of the Company to generate revenues both in India and outside India. Non-current assets exclude financial instruments, income tax assets and deferred tax assets.

34.3 Information about major customers

The company is a manufacturer of Steering and Suspension Linkage Products, Steering Gear Products, Hydraulic Products, Die casting products and other auto components for transportation industry.

The Company has three major customers (greater than 10% of total sales) and Revenue from sale of auto components to these major customers aggregated to Rs. 716.30 crores (March 31,2023 - Rs. 690.82 crores).

36 Employee benefit plans

A. Defined contribution plans

The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any expense recognised in relation to these schemes represents the value of contributions payable during the period by the Company at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior months contributions that were not due to be paid until after the end of the reporting period.

The major defined contribution plans operated by the Company are as below:

(a) Provident fund

I n accordance with the Employee''s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary.

The contributions, as specified under the law, are made to the Government.

(b) Superannuation fund

The Company has a superannuation plan for the benefit of its employees. Employees who are members of the superannuation plan are entitled to benefits depending on the years of service and salary drawn.

The Company contributes up to 15% of the eligible employees'' salary to LIC every year. Such contributions are recognised as an expense as and when incurred. The Company does not have any further obligation beyond this contribution.

The total expense recognised in profit or loss of Rs. 7.76 Crores (for the year ended March 31,2023: Rs. 6.85 Crores) represents contributions payable to these plans by the company at rates specified in the rules of the plans. As at March 31, 2024, contributions of Rs. 1.22 Crores (as at March 31, 2023: Rs. 1.12 Crores) due in respect to 2023-24 (2022-23) reporting period had not been paid over to the plans. The amounts were paid subsequent to the end of the respective reporting periods.

B. Defined benefit plans

The defined benefit plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk and salary risk.

Investment risk The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to government/high quality bond yields; if the return on plan asset is below this rate, it will create a plan deficit.

Interest risk A decrease in the bond interest rate will increase the plan liability; however, this will be partially

offset by an increase in the return on the plan''s debt investments.

Salary risk The present value of the defined benefit plan liability is calculated by reference to the future

salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

C. Details of defined benefit obligation and plan assets:

(a) Gratuity

The Company has an obligation towards gratuity governed by the Payment of Gratuity Act, 1972, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company makes annual contributions to gratuity funds established as trusts; funded to LIC. The Company accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation.

The current service cost and the net interest expense for the year are included in the ''Employee benefits expense'' line item in the statement of profit and loss.

The remeasurement of the net defined benefit liability is included in other comprehensive income.

(v) Risk Exposure

The Company has invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Defined benefit liability and employer contributions

The weighted average duration of the defined benefit obligation is 8.8 years (2023-8.8 years). The expected maturity analysis of undiscounted gratuity is as follows:

38 Other statutory information

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

(ii) The Company has not traded or invested in Crypto currency or virtual currency during the financial year.

(iii) The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources or kind of funds) to any persons or entities, including foreign entities (Intermediaries) with the understanding, whether recorded in writing or otherwise that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries other than in the ordinary course of business.

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(v) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(vi) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond statutory period.

(vii) The Company has no transactions with struck off companies during the year.

(viii) Term loans were applied for the purpose they were obtained. Further, short term loans availed have not been utilised for long term purposes by the Company.

(ix) The Company has not been declared as wilful defaulters by any bank or financial institution or government or any government authority

(x) The Company has not revalued its property, plant and equipment(including Right of use assts)/ intangible assets/ both during the current/previous year.

(xi) The Company has not entered into any scheme of arrangements as per sections 230 to 237 of the Companies Act, 2013.

(xii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

1. Impact considered through cumulative information provided for the financial year during quarterly returns/ statements submission except as at March 31,2024.

2. Quarterly information requirements for individual banks may be different for similar line items.

3. The above information is based on the revised returns/ statements filed.

39 Leases

The Company leases warehouse and factory facilities. The leases typically run for a period of ranging between 2 years to 35 years.

Some property leases contain extension options exercisable by the Company up to one year before the end of the non-cancellable contract period. Where practicable, the Company seeks to include extension options in new leases to provide operational flexibility.

a) Break-up of current and non-current lease liabilities :

In addition to the above, the Company from time to time is also engaged in proceedings pending with various authorities in the ordinary course of business. Judgement is required in assessing the range of possible outcomes for some of these matters, which could change substantially over time as each of the matters progresses depending on experience on actual assessment proceedings by the respective authorities and other judicial precedents. Based on its internal assessment supported by external legal counsel views, as considered necessary, the Company believes that it will be able to sustain its positions if challenged by the authorities and accordingly no additional provision / disclosures are required for these matters.

Management is of the view that above matters will not have any material adverse effect on the Company''s financial position and results of operations.

41 Events after the reporting date

The Company has evaluated subsequent events from the balance sheet date through May 09, 2024, the date on which the standalone financial statements were authorised for issue, and determined that there are no items to disclose.

42 Exceptional item

Exceptional items include Rs. 20.35 crores which primarily comprise of provision for one time warranty related costs, merger related expenses and expenditure towards Voluntary Retirement Scheme (year ended March 31, 2023 : Rs. 2.61 crores). Also Refer Note 6.

44 Merger with Rane Brake Linings Ltd. (RBL) and Rane Engine Valves Limited (REVL):

The Board of Directors of the Company in their meeting held on February 9, 2024, considered and approved the proposed scheme of amalgamation ("Scheme") wherein Rane Brake Lining Limited ("RBL") and Rane Engine Valve Limited ("REVL") would merge into the Company with effect from April 01, 2024 (''the appointed date'') under sections 230 to 232 of the Companies Act, 2013, and other applicable sections and provisions of the Companies Act, 2013 read together with the rules made thereunder. The aforesaid scheme is subject to the approval of shareholders and creditors of the respective companies, Stock Exchanges, National Company Law Tribunal and such other approvals as may be required.

45 There were certain whistle blower complaints in respect of which detailed investigation is ongoing. However, based on procedures performed by the Company at this stage, the Company believes that underlying allegations have no material impact on these financial statements.

46 Approval of financial statements

The financial statements were approved for issue by the Board of Directors on May 09, 2024.

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Mar 31, 2023

1.27. Provisions and Contingent Liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Expected future operating losses are not provided for.

Where the Company expects some or all of the expenditure required to settle a provision will be reimbursed by another party, the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement is treated as a separate asset.

The amount recognised 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 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).

Contingent liability is disclosed for (i) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or (ii) Present obligations arising from past events where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. 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 recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Provisions for Warranty

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 upto two years. As per the terms of the contracts, the Company provides post-contract services / warranty support to some of its customers. The Company accounts for the post contract support / provision for warranty on the basis of the information available with the Management duly taking into account the current and past technical estimates.

1.28. Taxation

Income tax expense represents the sum of the current tax and deferred tax.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits. Deferred tax is not recognised for:

- temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss at the time of transaction;

- temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences

and it is probable that they will not reverse in the foreseeable future; and

- taxable temporary differences arising on the initial recognition of goodwill.

Temporary differences in relation to a right-of-use asset and a lease liability for a specific lease are regarded as a net package (the lease) for the purpose of recognising deferred tax.

Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing temporary differences, are considered, based on the business plans for individual subsidiaries in the Company. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. For this purpose, the carrying amount of investment property measured at fair value is presumed to be recovered through sale, and the Company has not rebutted this presumption.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilised.

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

1.29. Financial instruments

i. Recognition and initial measurement

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

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

ii. Classification and subsequent measurement Financial assets

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

- amortised cost;

- fair value through other comprehensive

income (FVOCI); or

- FVTPL

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

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

- the asset is held within a business model

whose objective is to hold assets to collect contractual cash flows; and

- t he 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.

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

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company

has irrevocably designated a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

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

Financial assets - Business model assessment

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

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

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

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

- how managers of the business are compensated - e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

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

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

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

In assessing whether the contractual cash flows are solely payments of principal and interest, the

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

- contingent events that would change the amount or timing of cash flows;

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

- prepayment and extension features; and

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

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

Financial liabilities: Classification, subsequent

measurement and gains and losses

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

iii. Derecognition

Financial assets

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

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

Financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

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

Interest rate benchmark reform

When the basis for determining the contractual cash flows of a financial asset or financial liability measured at amortised cost changed as a result of interest rate benchmark reform, the Company updated the effective interest rate of the financial asset or financial liability to reflect the change that is required by the reform. A change in the basis for determining the contractual cash flows is required by interest rate benchmark reform if the following conditions are met:

- the change is necessary as a direct consequence of the reform; and

- the new basis for determining the contractual cash flows is economically equivalent to the previous basis - i.e. the basis immediately before the change.

When changes were made to a financial asset or financial liability in addition to changes to the basis for determining the contractual cash flows required by interest rate benchmark reform, the Company first updated the effective interest rate of the financial asset or financial liability to reflect the change that is required by interest rate benchmark reform. After that, the Company applied the policies on accounting for modifications to the additional changes.

iv. Offsetting

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

Impairment of financial instruments

The Company recognise loss allowance for expected credit loss on financial assets measured at amortised cost.

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

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

- significant financial difficulty;

- a breach of contract such as a default or being past due;

- the restructuring of a loan or advance by the Company on terms that the Company would not consider otherwise;

- i t is probable that the borrower will enter bankruptcy or other financial reorganisation; or

- the disappearance of an active market for a security because of financial difficulties.

Loss allowances for trade receivables are measured at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are credit losses that result from all possible default events over expected life of financial instrument.

The Company follows the simplified approach permitted by Ind AS 109 Financial Instruments for recognition of impairment loss allowance. The application of simplified approach does not require the Company to track changes in credit risk. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.

The maximum period considered when estimating expected credit losses is the maximum contractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company''s historical experience and informed credit assessment and including forward looking information.

The Company considers a financial asset to be in default when:

- the recipient is unlikely to pay its credit obligations to the Company in full, without recourse by the Company to actions such as realising security (if any is held); or

- the financial asset is more than 120 days past due.

Measurement of expected credit losses

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

Presentation of allowance for expected credit losses in the balance sheet

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.

Write-off

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For individual customers, the Company has a policy of writing off the gross carrying amount when the financial asset is 180 days past due based on historical experience of recoveries of similar assets. For corporate customers, the Company individually

makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company''s procedures for recovery of amounts due.

Financial and Corporate guarantee contracts

A financial and corporate guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.

Financial and corporate guarantee contracts issued by the Company are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:

- the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and

- the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 115.

1.30. Fair Value

A number of the Company''s accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

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

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

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

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Further information about the assumptions made in measuring fair values is included in note 33 on financial instruments.

1.31. Earnings Per Share

Basic earnings per share is computed by dividing the net profit/(loss) after tax (including the post tax effect of exceptional items, if any) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by dividing the profit (considered in determination of basic earnings per share) after considering the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share adjusted for the weighted average number of equity shares that would have been issued upon conversion of all dilutive potential equity shares.

1.32. Business Combination:

In accordance with Ind AS 103, the Company accounts for business combinations using the acquisition method when control is transferred to the Company. The consideration transferred for the business combination is generally measured at fair value as at the date the control is acquired (acquisition date), as are the net identifiable assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in OCI and accumulated in equity as capital reserve if there exists clear evidence of the underlying reasons for classifying the business combination as resulting in a bargain purchase; otherwise the gain is recognised directly in equity as capital reserve. Transaction costs are expensed as incurred, except to the extent related to the issue of debt or equity securities.

The consideration transferred does not include amounts related to the settlement of pre-existing relationships with the acquiree. Such amounts are generally recognised in profit or loss. Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured subsequently and settlement is accounted for within equity. Other contingent consideration is remeasured at fair value at each reporting date and changes in the fair value of the contingent consideration are recognised in profit or loss.

1 .33. Dividend

The final dividend on shares is recorded as a liability on the date of approval by shareholders and interim dividends are recorded as liability on the date of declaration by the Company''s Board of Directors.

1.34. Segment reporting

The Company is engaged in the activities related to manufacture and supply of auto components for transportation industry. The Chief Operating Decision Maker (Board of Directors) review the operating results of the Company as a whole for purposes of making decisions about resources to be allocated and assess its performance, the entire operations are to be classified as a single segment, namely components for transportation industry.

1.35. Recent pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standard 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, applicable from April 1, 2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its financial statements.

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

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.

(i) Expected credit loss for loans, security deposits and other financial assets

The estimated gross carrying amount at default is Rs. 0.90 Crores (March 31,2022: Rs. 0.90 Crores) for loans, security deposits and other financial assets. Consequently there are no expected credit loss recognised for these financial assets.

The credit risk on derivative financial instruments is limited because the counterparties are banks with high credit-ratings.

(ii) Expected credit loss for trade receivables under simplified approach

Trade receivables consist of a large number of customers, spread across diverse geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable. The Company has adopted a policy of only dealing with creditworthy counterparties, where appropriate, as a means of mitigating the risk of financial loss from defaults.

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 based on : a) Past trend of outstanding receivables over a rolling period of past 24 months and b) actual amount of outstanding receivables as on the reporting date.

(c) Liquidity risk management

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows.

Liquidity and interest risk

The following information provides details of the Company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The below information has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay and includes both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

36 Employee benefit plans

A. Defined contribution plans

The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any expense recognised in relation to these schemes represents the value of contributions payable during the period by the Company at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior months contributions that were not due to be paid until after the end of the reporting period.

The major defined contribution plans operated by the Company are as below:

(a) Provident fund

I n accordance with the Employee''s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary.

The contributions, as specified under the law, are made to the Government.

(b) Superannuation fund

The Company has a superannuation plan for the benefit of its employees. Employees who are members of the superannuation plan are entitled to benefits depending on the years of service and salary drawn.

The Company contributes up to 15% of the eligible employees'' salary to LIC every year. Such contributions are recognised as an expense as and when incurred. The Company does not have any further obligation beyond this contribution.

The total expense recognised in profit or loss of Rs. 6.85 Crores (for the year ended March 31,2022: Rs. 6.39 Crores) represents contributions payable to these plans by the Company at rates specified in the rules of the plans. As at March 31, 2023, contributions of Rs. 1.12 Crores (as at March 31, 2022: Rs. 1.14 Crores) due in respect to 2022-23 (2021-22) reporting period had not been paid over to the plans. The amounts were paid subsequent to the end of the respective reporting periods.

38 Other statutory information

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

(ii) The Company has not traded or invested in Crypto currency or virtual currency during the financial year.

(iii) The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources or kind of funds) to any persons or entities, including foreign entities (Intermediaries) with the understanding, whether recorded in writing or otherwise that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries other than in the ordinary course of business.

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(v) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(vi) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond statutory period.

(vii) The Company has no transactions with struck off companies during the year.

(viii) Term loans were applied for the purpose they were obtained. Further, short term loans availed have not been utilised for long term purposes by the Company.

(ix) The Company has not been declared as wilful defaulters by any bank or financial institution or government or any government authority

(x) The Company has not revalued its property, plant and equipment(including Right of use assets / intangible assets/ both during the current/previous year.

(xi) The Company has not entered into any scheme of arrangements as per sections 230 to 237 of the Companies Act, 2013.

(xii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

47 Approval of financial statements

The financial statements were approved for issue by the Board of Directors on May 05, 2023.

In terms of our report of even date attached For and on behalf of the Board of Directors

^For B S R & C°. LLP Ganesh Lakshminarayan Harish Lakshman

Chartered Accountants Chairman Vice Chairman

Firm''s registration no. 101248W/W-100022 ^{DIN:00012583 DIN:00}°1²⁶⁰²

S S_eth_uraman Gowri Kailasam B Gnanasambandam S Subha Shree

P_art_ner Manager Chief Financial Officer Company Secretary

Membership no: 203491

Chennai Chennai

May 05, 2023 May 05, 2023

---

Mar 31, 2019

1. Summary of significant accounting policies, critical judgements and Key estimates

General Information

Rane (Madras) Limited (The "Company") is a public limited Company incorporated in India with its registered office in Chennai, Tamilnadu, India. The Company is listed on the Bombay Stock Exchange Limited, Mumbai and National Stock Exchange of India Limited, Mumbai.

The Company is engaged in the manufacture of Steering and Suspension Linkage Products, Steering Gear Products and High Precision Aluminium Die Casting Products. The Company is a significant supplier to major manufacturers of passenger cars, utility vehicles and Farm tractors across the Globe and as such operates in a single reportable business segment of ''components for transportation industry''. The Company is having six manufacturing facilities at Tamilnadu, Puducherry, Karnataka, Uttarakhand and Telangana.

Impairment tests for Goodwill

Goodwill has been allocated for impairment testing purposes to the identified cash-generating units.

The Company tests whether Goodwill has suffered any impairment on an annual basis. The recoverable amount of a cash generating unit (CGU) is determined based on value-in-use calculations which require the use of assumptions. The calculations use cash flow projections based on financial budgets approved by management.

Based on the assessment, management has concluded that there is no indicator of impairment for Goodwill.

2.1 The Company values the shares of the subsidiary annually in order to assess the possibility of any impairment. To carry out the above assessment, projections of future cash flows based on the most recent long-term forecasts, including selling price as well as volumes are estimated over the next five years. The estimation of sales volumes is based on management''s assessment of probability of securing the new businesses in the future. Based on the valuation as per the current projections, it has been concluded that there is no impairment of the investments made in/loans and guarantees given to Rane Precision Die Casting Inc.,USA the wholly owned step down subsidiary (either directly or through the intermediate subsidiary, Rane (Madras) International Holdings B.V) aggregating to Rs. 96.83 Crores. The valuation is dependent on successfully securing new businesses and is also subject to fluctuations in the market demand.

* Refer Note 40 for details of closing inventories of raw materials, work-in-progress and finished goods The cost of inventories recognised as an expense during the year is as per Note No. 24.

The cost of inventories recognised as an expense includes Rs. 0.10 (during 2017-18:'' Nil) in respect of write-downs of inventory to net realisable value, and has been reduced by '' Nil (during 2017-18:Rs. 0.31) in respect of the reversal of such write-downs.

The mode of valuation of inventories has been stated in note 1.17

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. 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. The range of provision created as a percentage of outstanding under various age groups below 120 days past due comes to 0% - 10%. The Company as a policy provides for 100% for outstanding above 120 days past due.

Rights, preferences and restrictions attached to Shares mentioned above :

The Company has one class of equity share having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The dividend when proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. Repayment of capital on liquidation will be in proportion to the number of equity shares held.

Additions during the year represents fresh issue of equity shares to Rane Holdings Limited on Preferential allotment.

2.2 Details of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date

During the year ended March 31, 2014, 3,46,504 equity shares of Rs. 10 each fully paid up were allotted to shareholders of Rane Holdings Limited (Holding Company) in the proportion of one equity share of Rs. 10 each in the Company for every 30 equity shares of Rs. 10 each held in the transferor Company (Rane Diecast Limited) pursuant to the Scheme of Arrangement between Rane Diecast Limited and the Company.

The Companies Act requires that where a Company purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal value of the shares so purchased shall be transferred to a capital redemption reserve account and details of such transfer shall be disclosed in the balance sheet. The capital redemption reserve account may be applied by the Company, in paying up unissued shares of the Company to be issued to shareholders of the Company as fully paid bonus shares. The Company established this reserve pursuant to the redemption of preference shares issued in current and earlier years.

The amount that can be distributed by the Company as dividend to its equity shareholders is determined based on the separate financial statements of the Company and also considering the requirements of the Companies Act, 2013.

In respect of the year ended March 31, 2019, the Board had declared and paid an interim dividend on equity shares at Rs. 4.00 per equity share amounting to Rs. 5.76 Crores inclusive of Dividend Distribution Tax of Rs. 0.98 Crores (For year ended March 31, 2018 Rs. 4.50 per equity share amounting to Rs. 6.29 Crores inclusive of Dividend Distribution Tax of Rs. 1.06 Crores). The Directors propose that a final dividend of Rs. 4.50 per share (For year ended March 31, 2018 Rs. 7.50 per share) be paid on fully paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated equity dividend to be paid is Rs. 5.39 Crores along with Dividend Distribution tax of Rs. 1.11 Crores (For the year ended March 31, 2018 Rs. 8.71 Crores along with Dividend Distribution tax of Rs. 1.79 Crores).

The cumulative effective portion of gain or losses arising on changes in the fair value of hedging instruments designated as cash flow hedges are recognised in cash flow hedge reserve. Such changes recognised are reclassified to the statement of profit and loss when the hedged item affects the profit and loss or are included as an adjustment to the cost of the related non-financial hedged item.

The Company has designated certain foreign currency contracts as cash flow hedges in respect of foreign exchange risks.

Summary of borrowing arrangements

Secured loans include loan from banks. The Secured Loans outstanding as at March 31, 2019 are secured by a charge created on the Company''s fixed assets both present and future (excluding Velachery and Mysuru properties).

(i) Information about individual provisions and significant estimates Provision for leave encashment

The provision for employee benefits includes annual leave and vested long service leave entitlements accrued.

*Note

(i) Consequent to introduction of Goods and Services Tax (GST) w.e.f July 2017, revenue for the year ended March 31, 2019 and March 31, 2018 are presented net of GST in compliance with Indian Accounting Standard (Ind AS) 18 - ‘Revenue’. The revenue from operations for the year ended March 31, 2018 are inclusive of excise duty till June 2017, and hence are not comparable with the revenue from operations for the year ended March 31, 2019 to that extent.

(ii) The Company has applied Ind AS 115 ‘Revenue from contracts with customers’ with effect from April 1, 2018. The performance obligations under all sales contracts are satisfied at a point of time. Ind AS 115 did not have a material impact on the amount or timing of recognition of reported revenue.

3.1 Disaggregation of the revenue Information

The table below presents disaggregated revenues from contracts with customers which is recognised based on goods transferred at a point of time by geography and offerings of the Company.

As per the management, the below disaggregation best depicts the nature, amount, timing and uncertainty of how revenues and cash flows are affected by industry, market and other economic factors.

3.2 Trade Receivables

The Company classifies the right to consideration in exchange for deliverables as receivable.

A receivable is a right to consideration that is unconditional upon passage of time. Revenue is recognized as and when the related goods are delivered to the customer.

Trade receivable are presented net of impairment in the Balance Sheet.

3.3 Transaction price allocated to the remaining performance obligation

Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts where the revenue recognized corresponds directly with the value to the customer of the entity''s performance completed to date, typically those contracts where invoicing is on time and material basis.

4. Financial instruments

4.1 Capital management

For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company.

The Company’s capital management is intended to create value for shareholders by achieving the long term and short term goals of the Company, maintain the Company as a going concern and maintain optimal structure.

The Company determines the amount of capital required on the basis of annual operating plan coupled with long term and strategic investment and expansion plans. The funding needs are met through cash generated from operations, long term and short term bank borrowings and issue of non-convertible debt securities as and if the need arises.

The Company monitors the capital structure on the basis of debt to equity, debt to capital employed etc. and the maturity profile of the overall debt portfolio of the Company.

Net debt includes interest bearing borrowings less cash and cash equivalents, other bank balances (including non-current earmarked balances) and current investments.

* Fair Value Hierarchy (Level 1,2,3)

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This consists of listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities and deposits included in level 3.

4.2 Financial risk management objectives

The Company''s activities expose it to a variety of financial risks : market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company''s exposure to credit risk is influenced mainly by the individual credit profile of each customer and the concentration of risk from the top few customers.

The risk management objective of the Company is to hedge risk of change in the foreign currency exchange rates associated with it''s direct & indirect transactions denominated in foreign currency. Since most of the transactions of the Company are denominated in its functional currency (INR), any foreign exchange fluctuation affects the profitability of the Company and its financial position. Hedging provides stability to the financial performance by estimating the amount of future cash flows and reducing volatility.

(a) Market risk

The Company operates on a global platform and a portion of the business is transacted in multiple currencies. Consequently, the Company is exposed to foreign exchange risk through its sales in the United States, European Union and other parts of the world, and purchases from overseas suppliers in different foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward and options contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

Foreign Currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange and option contracts.

Foreign Currency sensitivity analysis

The Company is mainly exposed to US Dollar and EURO currencies. The following table details the Company''s sensitivity to a 5% increase and decrease against the relevant foreign currencies. 5% 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 5% change in foreign currency rates. The sensitivity analysis includes loans to foreign operations within the Company where the denomination of the loan is in a currency other than the functional currency of the lender or the borrower. A positive number below indicates an increase in profit or equity where the Indian Rupee strengthens by 5% against the relevant currency. For a 5% weakening of the Indian Rupee against the relevant currency, there would be a comparable impact on the profit or equity.

In management''s opinion, the sensitivity analysis is not a complete reflection of the inherent foreign exchange risk considering the fact that the exposure at the end of the reporting period does not reflect the exposure during the year.

Derivative Financial Instruments

The Company operates on a global platform and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EUR. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows, both incoming and outgoing.

The Company holds derivative financial instruments such as foreign currency forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. It is the policy of the Company to enter into forward foreign exchange and option contracts to cover specific foreign currency payments and receipts within a specific range. The Company also enters into forward foreign exchange contracts to manage the risk associated with anticipated sales and purchase transactions ranging from 6 months to one year by covering a specific range of exposure generated. Adjustments are made to the initial carrying amount of non-financial hedged items when the anticipated sale or purchase transaction takes place.

The Company has designated foreign exchange forward contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions. The related hedge transactions for balance in cash flow hedge reserve are expected to occur and reclassified to revenue in the Statement of Profit and loss within 3-12 months.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instruments, including whether the hedging instruments is expected to offset changes in cash flows of hedged items.

If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and accounted for in profit or loss at the time of the hedge relationship rebalancing.

(b) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises from cash and cash equivalents, investments carried at cost value and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

(i) Expected credit loss for investments, loans and security deposits

The estimated gross carrying amount at default is Nil (March 31, 2018: Nil) for Investments, loans and deposits. Consequently there are no expected credit loss recognised for these financial assets.

The credit risk on derivative financial instruments is limited because the counterparties are banks with high credit-ratings.

(ii) Expected credit loss for trade receivables under simplified approach

Trade receivables consist of a large number of customers, spread across diverse geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable. The Company has adopted a policy of only dealing with creditworthy counterparties, where appropriate, as a means of mitigating the risk of financial loss from defaults.

In determining the allowances for credit losses of trade receivables, 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 is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and percentage used in the provision matrix.

(c) Liquidity risk management

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows.

Liquidity and interest risk tables

The following tables detail the Company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

In addition, the Company is exposed to liquidity risk in relation to Corporate guarantees given to banks provided by the Company. The Company''s maximum exposure in this respect is the maximum amount the Company would have to pay if the guarantee is invoked. These Corporate guarantees have been issued to banks under the financing facilities agreements entered into its subsidiaries companies. Based on the expectation at the end of the reporting period, the Company considers that it is more likely than not that such an amount will not be payable under the guarantees provided. (Refer note 37)

5. Segment reporting

The Company is engaged in the activities related to manufacture and supply of auto components for transportation industry. The Chief Operating Decision Maker (Board of Directors) review the operating results as a whole for purposes of making decisions about resources to be allocated and assess its performance, the entire operations are to be classified as a single business segment, namely components for transportation industry. The geographical segments considered for disclosure are - India and Rest of the World. All the manufacturing facilities are located in India. Accordingly, there is no other reportable segment as per Ind AS 108 Operating Segments.

The geographical segments considered for disclosure are - India and Rest of the World. All the manufacturing facilities are located in India. ** Non-Current assets are used in the operations of the Company to generate revenues both in India and outside India.

5.1 Information about major customers

The Company is a manufacturer of Steering and Suspension Linkage Products, Steering Gear Products, Hydraulic Products, Die casting Products and other auto components for transportation industry.

The Company has three major customers (greater than 10% of total sales) and Revenue from sale of auto components to these major customers aggregated to Rs. 481.40 Crores (March 31,2018, Rs. 448.64 Crores).

6. Employee benefit plans

A. Defined contribution plans

The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any expense recognised in relation to these schemes represents the value of contributions payable during the period by the Company at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior months contributions that were not due to be paid until after the end of the reporting period.

The major defined contribution plans operated by the Company are as below:

(a) Provident fund

In accordance with the Employee’s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary.

The contributions, as specified under the law, are made to the Government.

(b) Superannuation fund

The Company has a superannuation plan for the benefit of its employees. Employees who are members of the defined benefit superannuation plan are entitled to benefits depending on the years of service and salary drawn.

The Company contributes up to 15% of the eligible employees’ salary to LIC every year. Such contributions are recognised as an expense as and when incurred. The Company does not have any further obligation beyond this contribution.

The total expense recognised in profit or loss of Rs. 7.26 Crores (for the year ended March 31,2018: Rs. 7.40 Crores) represents contributions payable to these plans by the Company at rates specified in the rules of the plans. As at March 31, 2019, contributions of Rs. 1.07 Crores (as at March 31, 2018: Rs. 1.11 Crores) due in respect to 2018-19 (2017-18) reporting period had not been paid over to the plans. The amounts were paid subsequent to the end of the respective reporting periods.

B. Defined benefit plans

The defined benefit plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Details of defined benefit obligation and plan assets:

(a) Leave obligations

The leave obligations cover the Company’s liability for earned leave.

The amount of provision of Rs. 1.33 Crores (March 31, 2018 - Rs. 1.11 Crores) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

(b) Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company makes annual contributions to gratuity funds established as trusts; funded to LIC. The Company accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation.

The current service cost and the net interest expense for the year are included in the ''Employee benefits expense'' line item in the statement of profit and loss.

The remeasurement of the net defined benefit liability is included in other comprehensive income.

(v) Risk Exposure

The Company has invested the plan assets with the insurer managed funds. The insurance Company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The expected rate of return on plan assets is based on the composition of plan assets held (through LIC), historical results of the return on plan assets, the Company’s policy for plan asset management and other relevant factors.

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

7. Operating lease arrangements

The Company as lessee Land

The Company has taken land on lease for a periods of ranging from 35 to 90 years (Pantnagar and Singur-90 years, Sanand- 35 years) and the same has been classified as prepayments under other non-current assets. The lease has been considered as operating lease due to indefinite useful life of land.

Vehicles

The Company has taken vehicles under operating lease for a period ranging upto 5 years. The details of the maturity profile of future operating lease payments are furnished below:

Cancellable operating Leases

The Company has cancellable operating leases for business purpose which are renewable on a periodic basis.

The lease payments under cancellable operating lease for the year ended March 31, 2019 amounts to Rs. 0.50 Crores (For the year ended March 31, 2018 Rs. 0.73 Crores).

8. Events after the reporting date

The final dividend amount of Rs. 4.50 per share recommended by the Directors is subject to the approval of shareholders in ensuing Annual General Meeting.

9. Exceptional item

During the quarter ended September 30, 2017, the Company had recorded an aggregate claim of Rs. 10.08 Crores from a customer towards certain product quality issues. The Company has an insurance policy to cover product recall/ guarantee claims/ costs. The claim has been intimated to the insurer and the survey is in progress. This has been considered as insurance claim receivable as the Company is confident of recovering this sum under the insurance policy.

10. Details on Derivative Instruments

I. The following derivative positions are open as at March 31, 2019

(a) Forward exchange contracts and options (being derivative instruments), which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

11. The figures for the previous year have been regrouped wherever necessary to conform to current year’s classification. Figures have also been rounded off to Crores of rupees.

12. Approval of financial statements

The financial statements were approved for issue by the Board of Directors on May 23, 2019.

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Mar 31, 2018

Rights, preferences and restrictions attached to Shares mentioned above :

The Company has one class of equity share having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The dividend when proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General meeting. Repayment of capital on liquidation will be in proportion to the number of equity shares held.

1.1 Details of shares issued for consideration other than cash during the period of five years immediately preceeding the reporting date

During the year ended 31 March, 2014, 3,46,504 equity shares of Rs. 10 each fully paid up were alloted to shareholders of Rane Holdings Limited (Holding Company) in the proportion of one equity share of Rs. 10 each in the Company for every 30 equity shares of Rs. 10 each held in the transferor company (Rane Diecast Limited) pursuant to the Scheme of Arrangement between Rane Diecast Limited and the Company.

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in general reserve will not be reclassified subsequently to profit or loss.

Additions during the year represents amounts transferred from retained earnings consequent to repayment of outstanding preference shares to Rane Holdings Limited

The Companies Act requires that where a Company purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal value of the shares so purchased shall be transferred to a capital redemption reserve account and details of such transfer shall be disclosed in the balance sheet. The capital redemption reserve account may be applied by the Company, in paying up unissued shares of the Company to be issued to shareholders of the Company as fully paid bonus shares. The Company established this reserve pursuant to the redemption of preference shares issued in current and earlier years.

The amount that can be distributed by the Company as dividend to its equity shareholders is determined based on the separate financial statements of the Company and also considering the requirements of the Companies Act, 2013.

In respect of the year ended 31 March, 2018, the board had declared and paid an interim dividend on equity shares at Rs. 4.50 per equity share amounting to Rs. 6.29 crores inclusive of Dividend Distribution Tax of Rs. 1.06 crores (For year ended 31 March, 2017 Rs. 2.00 per equity share amounting to Rs. 2.53 crores inclusive of Dividend Distribution Tax of Rs. 0.43 crores). The directors propose that a final dividend of Rs. 7.50 per share (For year ended 31 March, 2017 Rs. 4.00 per share) be paid on fully paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated equity dividend to be paid is Rs. 8.71 crores along with Dividend Distribution tax of Rs. 1.79 crores (For the year ended 31 March, 2017 Rs. 4.20 crores along with Dividend Distribution tax of Rs. 0.86 crores).

(i) Information about individual provisions and significant estimates Provision for leave encashment

The provision for employee benefits includes annual leave and vested long service leave entitlements accrued. Provision for Warranty Refer Note 1.25

(ii) Movements in provisions

Movements in each class of provision during the financial year, are set out below:

Note :

(i) The deferred revenue comprise the benefit received from government as grant at a subsidised price for setting up business and government grant pertaining to capital goods imported under EPCG Scheme and recognised the same as deferred income with the corresponding impact in Property, Plant and Equipment.

2 Financial Instruments

2.1 Capital management

For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company.

The Company’s capital management is intended to create value for shareholders by achieving the long term and short term goals of the Company, maintain the Company as a going concern and maintain optimal structure.

The Company determines the amount of capital required on the basis of annual operating plan coupled with long term and strategic investment and expansion plans. The funding needs are met through cash generated from operations, long term and short term bank borrowings and issue of non-convertible debt securities as and if the need arises.

The Company monitors the capital structure on the basis of debt to equity, debt to capital employed etc and the maturity profile of the overall debt portfolio of the Company.

Net debt includes interest bearing borrowings less cash and cash equivalents, other bank balances (including non-current earmarked balances) and current investments.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This consists of listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities and deposits included in level 3.

2.2 Financial risk management objectives

The Company’s activities expose it to a variety of financial risks : market risk, credit risk and liquidity risk. The Company’s focus is to forsee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company’s exposure to credit risk is influenced mainly by the individual credit profile of each customer and the concentration of risk from the top few customers.

The risk management objective of the company is to hedge risk of change in the foreign currency exchange rates associated with it’s direct and indirect transactions denominated in foreign currency. Since most of the transactions of the company are denominated in its functional currency (INR), any foreign exchange fluctuation affects the profitability of the Company and its financial position. Hedging provides stability to the financial performance by estimating the amount of future cash flows and reducing volatility.

(a) Market Risk

The Company operates on a global platform and a portion of the business is transacted in multiple currencies. Consequently, the Company is exposed to foreign exchange risk through its sales in the United States,European Union and other parts of the world, and purchases from overseas suppliers in different foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward and options contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

Foreign Currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange and option contracts.

Foreign Currency sensitivity analysis

The Company is mainly exposed to US Dollar and EURO currencies.The following table details the Company’s sensitivity to a 5% increase and decrease against the relevant foreign currencies. 5% 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 5% change in foreign currency rates. The sensitivity analysis includes loans to foreign operations within the Company where the denomination of the loan is in a currency other than the functional currency of the lender or the borrower. A positive number below indicates an increase in profit or equity where the Indian Rupee strengthens by 5% against the relevant currency. For a 5% weakening of the Indian Rupee against the relevant currency, there would be a comparable impact on the profit or equity.

In management’s opinion, the sensitivity analysis is not a complete reflection of the inherent foreign exchange risk considering the fact that the exposure at the end of the reporting period does not reflect the exposure during the year.

Derivative Financial Instruments

The Company operates on a global platform and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EUR. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows, both incoming and outgoing.

The Company holds derivative financial instruments such as foreign currency forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. It is the policy of the Company to enter into forward foreign exchange and option contracts to cover specific foreign currency payments and receipts within a specific range. The Company also enters into forward foreign exchange contracts to manage the risk associated with anticipated sales and purchase transactions ranging from 6 months to One year by covering a specific range of exposure generated. Adjustments are made to the initial carrying amount of non-financial hedged items when the anticipated sale or purchase transaction takes place.

The Company has designated foreign exchange forward contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions. The related hedge transactions for balance in cash flow hedge reserve are expected to occur and reclassified to revenue in the Statement of Profit and loss within 3-12 months.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instruments, including whether the hedging instruments is expected to offset changes in cash flows of hedged items.

If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and accounted for in profit or loss at the time of the hedge relationship rebalancing.

The reconciliation of cash flow hedge reserve for the year ended 31 March, 2018 is as follows :

(b) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises from cash and cash equivalents, investments carried at cost value and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

(i) Expected credit loss for investments, loans and security deposits

The estimated gross carrying amount at default is Nil (31 March, 2017: Nil, 31 March, 2016: Nil) for Investments, loans and deposits. Consequently there are no expected credit loss recognised for these financial assets.

The credit risk on derivative financial instruments is limited because the counterparties are banks with high credit-ratings.

(ii) Expected credit loss for trade receivables under simplified approach

Trade receivables consist of a large number of customers, spread across diverse geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable. The Company has adopted a policy of only dealing with creditworthy counterparties, where appropriate, as a means of mitigating the risk of financial loss from defaults.

In determining the allowances for credit losses of trade receivables, 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 is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and percentage used in the provision matrix.

(c) Liquidity risk management

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows.

Liquidity and interest risk tables

The following tables detail the Company’s remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

In addition, the Company is exposed to liquidity risk in relation to Corporate guarantees given to banks provided by the Company. The Company’s maximum exposure in this respect is the maximum amount the Company would have to pay if the guarantee is invoked. These Corporate guarantees have been issued to banks under the financing facilities agreements entered into its subsidiaries companies. Based on the expectation at the end of the reporting period, the Company considers that it is more likely than not that such an amount will not be payable under the guarantees provided. (Refer note 37)

3 Segment Reporting

The Company is engaged in the activities related to manufacture and supply of auto components for transportation industry. The Chief Operating Decision Maker (Board of Directors) review the operating results as a whole for purposes of making decisions about resources to be allocated and assess its performance, the entire operations are to be classified as a single business segment, namely components for transportation industry. The geographical segments considered for disclosure are - India and Rest of the World. All the manufacturing facilities are located in India. Accordingly, there is no other reportable segment as per Ind AS 108 Operating Segments.

3.1 Product wise break up - Please refer note no. 41

3.2 Geographical Information

The Company’s revenue from external customers by location of operations and information about its non current assets** by location of operations are detailed below:

3.3 Information about major customers

Revenue from sale of auto components to largest customers (greater than 10% of total sales) is Rs. 448.64 crores (31 March, 2017, Rs. 329.14 crores).

4 Employee benefit plans

A. Defined contribution plans

The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any expense recognised in relation to these schemes represents the value of contributions payable during the period by the Company at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior months contributions that were not due to be paid until after the end of the reporting period.

The major defined contribution plans operated by the Company are as below:

(a) Provident fund

In accordance with the Employee’s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary.

The contributions, as specified under the law, are made to the Government.

(b) Superannuation fund

The Company has a superannuation plan for the benefit of its employees. Employees who are members of the defined benefit superannuation plan are entitled to benefits depending on the years of service and salary drawn.

The Company contributes up to 15% of the eligible employees’ salary to LIC every year. Such contributions are recognised as an expense as and when incurred. The Company does not have any further obligation beyond this contribution.

The total expense recognised in profit or loss of Rs. 7.40 crores (for the year ended 31 March, 2017: Rs. 6.28 crores) represents contributions payable to these plans by the company at rates specified in the rules of the plans. As at 31 March, 2018, contributions of Rs. 1.11 crores (as at 31 March, 2017: Rs. 0.93 crores) due in respect to 2017-18 (2016-17) reporting period had not been paid over to the plans. The amounts were paid subsequent to the end of the respective reporting periods.

B. Defined benefit plans

The defined benefit plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

(a) Leave obligations

The leave obligations cover the Company’s liability for earned leave.

The amount of provision of Rs. 1.11 crores (31 March, 2017 - Rs. 1.03 crores, 01 April, 2016 - Rs. 0.81 crores) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

The key assumptions used for the calculation of provision for long term compensated absences are as under:

(b) Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company makes annual contributions to gratuity funds established as trusts; funded to LIC. The Company accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation.

The current service cost and the net interest expense for the year are included in the ‘Employee benefits expense’ line item in the statement of Profit and Loss.

The remeasurement of the net defined benefit liability is included in Other Comprehensive Income.

(v) Risk Exposure

The Company has invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The expected rate of return on plan assets is based on the composition of plan assets held (through LIC), historical results of the return on plan assets, the company’s policy for plan asset management and other relevant factors.

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

Defined benefit liability and employer contributions

The weighted average duration of the defined benefit obligation is 7.7 years (2017-7.9 years, 2016-7.7 years). The expected maturity analysis of undiscounted gratuity is as follows:

5 Operating lease arrangements The Company as lessee Land

The Company has taken land on lease for a period of 90 years (Pantnagar) and 20 years (Sanand) and the same has been classified as prepayments under other non-current assets. The lease has been considered as operating lease due to indefinite useful life of land.

Vehicles

The Company has taken vehicles under operating lease for a period ranging upto 5 years. The details of the maturity profile of future operating lease payments are furnished below:

Cancellable operating leases

The Company has cancellable operating leases for business purpose which are renewable on a periodic basis. The lease payments under cancellable operating leaes for the year ended 31 March, 2018 amounts to Rs. 0.73 crores (For the year ended 31 March, 2017 Rs.0.64 crores)

6 Events after the reporting date

The final dividend amount of Rs. 7.50 per share recommended by the directors is subject to the approval of shareholders in ensuing Annual General Meeting.

7 Exceptional Item

During the quarter ended 30 September, 2017, the Company had recorded an aggregate claim of Rs. 10.08 crores from a customer towards certain product quality issues.The Company has an insurance policy to cover product recall/ guarantee claims/ costs. The claim has been intimated to the insurer and has been considered as insurance claim receivable as the Company is confident of recovering this sum under the insurance policy.

8 Details on Derivative Instruments

I. The following derivative positions are open as at 31 March, 2018

(a) Forward exchange contracts and options (being derivative instruments), which are not intended for trading or speculative purposes, but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

Outstanding forward exchange contracts and option contracts entered into by the Company as on 31 March, 2018

9 Transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31 March, 2018, the comparative information presented in these financial statements for the year ended 31 March, 2017 and in the preparation of an opening Ind AS balance sheet at 01 April, 2016 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous Indian GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions A.1.1Deemed cost

The Company has elected to measure all of its Property, Plant and Equipment and intangible assets at their previous GAAP carrying value adjusted for the impact of outstanding government grant relating to purchase of Property Plant and Equipment and use the value so arrived as the deemed cost of the Property, Plant and Equipment and intangible assets.

A.1.2 Leases

The Company has elected to assess whether a contract or arrangement contains a lease on a prospective basis i.e. on the basis of facts and circumstances existing at the date of transition to Ind AS.

A.1.3 Investments in subsidiaries

On transition, Ind AS 101 allows the entity to measure investments in subsidiary either at cost determined in accordance with Ind AS 27 or deemed cost. Accordingly, the Company has elected to treat cost as deemed cost for its investments held in a subsidiary.

A.2 Ind AS mandatory exceptions A.2.1 Estimates

On assessment of estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise such estimates under Ind AS, as there is no objective evidence of an error in those estimates except Impairment of financial asset based on expected credit loss model as the same was not required under previous GAAP.

A.2.2 Classification and measurement of financial assets

The Company has done the assessment of classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

A.2.3 Impairment of financial assets

The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognised in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind AS, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.

A.2.4 Government Grants and Loans

The Company has applied Ind AS 109 ‘Financial Instruments’ and Ind AS 20 ‘Accounting for Government Grants and disclosure of Government Assistance’ prospectively to Government loans existing at the date of transition and the Company has not recognised the corresponding benefit of the Government loans at the below market rate of interest as a Government grant. Consequently, the Company has used the previous GAAP carrying amount of the Government loans at the date of transition as the carrying amount of these loans in the opening Ind AS Balance Sheet.

Notes to first time adoption :

(i) Government Grants

(a) Under the previous GAAP, Export promotion capital goods (EPCG) benefit received was netted off with the value of related Property, Plant & Equipment (PPE). Under Ind AS, the value of PPE has been grossed up and the EPCG benefit is treated as grant and recognised by way of setting up as deferred income.

(b) Under previous GAAP the Company has recognised the governement grant related to procurement of assets under Capital Reserve. Under Ind AS asset related Government grants are required to be presented as deferred income and amortised over the useful life of the asset.

(ii) Leasehold Land

Under previous GAAP, the Company has taken land on lease for a period of 90 years and capitalised as “leasehold land” in the books considering the same as Finance lease. Under Ind AS the asset with indefinite useful life should be considered as operating lease only. Hence, the leasehold land is derecognised from Property, Plant and Equipment and classified as prepayments under other non-current assets.

(iii) Goodwill

Under the previous GAAP, Goodwill was amortised over the useful life. As per Ind AS 36 “Impairment of Assets”, Goodwill and Intangible assets with indefinite useful lives are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

(iv) SBLC and Corporate Guarantee

The Company has provided Corporate guarantee to lenders of money to its subsidiary Rane (Madras) International Holdings B.V and its step down subsidiary Rane Precision Die Casting Inc. Under the previous GAAP financial guarantees so provided were disclosed as contingent liability. Under Ind AS, such guarantees are recorded initially at fair value and subsequently at the higher of the amount determined in accordance with Ind AS 37 and the amount initially recognised less cumulative amortisation, where appropriate.

(v) Deferred tax

Deferred tax has been recognised on the adjustments made on transition to Ind AS.

(vi) Bill Discounting

Under previous GAAP customer bill discounting with recourse is derecognised from Trade receivables and shown as contingent liability. Under Ind AS customer bill discounting with recourse are recognised as Trade receivable with corresponding liability in Borrowings based on assesment of risk and rewards of ownership of receivables discounted.

(vii) Expected Credit Loss

Under previous GAAP, provision for bad and doubtful debts was recognised as per the internal policy of the Company based on ageing of Trade Receivables. Under Ind AS, the impairment loss allowance on account of Trade receivables is created based on a provision matrix computed under the Expected credit loss method.

(viii) Preference shares classification

Under the previous GAAP, preference shares are shown under Share Capital. Under Ind AS the preference shares should be classified as financial liability and measured at amortised cost since the instruments are redeemable and does not evidence any residual interest in the Company.

(ix) Borrowings

Under previous GAAP transaction fees on borrowings were charged off to expense during availment of loan. Under Ind AS the transaction cost is required to be deducted from the carrying amount of the borrowings on the initial recognition. These costs are recognised in the statement of profit and loss over the tenor of the borrowing as part of the interest expense by applying the Effective interest rate method.

(x) Discount and incentives

Under the previous GAAP, discounts in the nature of cash and volume discount have been presented as item of expense in the statement of profit and loss account. However under Ind AS, revenue is to be recognised at the fair value of consideration received or receivable after considering such discounts.

(xi) Actuarial gain and loss

Under previous GAAP, actuarial gains or losses were recognised as Employee Benefit expenses in profit or loss. Under Ind AS, the actuarial gains or losses form part of remeasurement of the net defined benefit liability / asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of Profit or Loss.

(xii) Hedging

Under previous GAAP, discount/premium on forward/Option contracts were amortised over the tenor of the forward/Option contract. Under Ind AS, the Company is required to designate Hedge as Fair value Hedge or Cash Flow Hedge. Fair value Hedges are hedges of the fair value of assets or liabilities or a firm commitment and cash flow hedges are hedges of a particular risk associated with the cash flows of highly probable forecast transactions. Accordingly, resulting gain or loss in an effective cash flow hedge has been adjusted in other comprehensive income and ineffective portion has been taken to statement of profit and loss account.

(xiii) Excise Duty

Under previous GAAP, cash discounts and rebates passed on to customers were recorded in other expenses. Under Ind AS, these are reflected as adjustments to revenue for sale of products. Under previous GAAP, excise duty on sale of goods was adjusted in revenue from sale of products whereas under Ind AS, it is considered as a production cost and hence, disclosed seperately as an expense in the statement of profit and loss.

10 Approval of financial statements

The financial statements were approved for issue by the Board of Directors on 30 April, 2018.

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Mar 31, 2017

1. Rights, preferences and restrictions attached to Shares mentioned above:

The company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.

For the current year, the directors have proposed on 16th May 2017 a dividend of Rs. 4 per share to be paid on equity shares. The equity dividend is subject to approval by shareholders at Annual General Meeting and has not been included as a liability in the financial statements which is in compliance with AS 4 as revised vide MCA notification dated 30th March 2016. The total estimated equity dividend to be paid is Rs. 42,042,596 . The payment of this dividend is estimated to result in payment of dividend distribution tax of Rs. 85,59,032 @ 20.358% on the amount of dividends grossed up for the related dividend distribution tax.

The Preference shares shall have a face value of Rs. 10 and is entitled to receive a cumulative dividend at the rate of 6.74%. The preference share shall have tenure of maximum 20 years. The Preference shares are redeemable before 20 years at the option of the share holders

2. Details on derivative instruments and unhedged Foreign currency exposures

2. The following derivative positions are open as at 31 March 2017

3. Forward exchange contracts and options [being derivative instruments), which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

4. Outstanding forward exchange contracts entered into by the Company as on 31 March 2017

Note on Disclosures required under Guidance Note on Accounting for Derivative Contracts issued by the ICAI:

5. The Company''s policy provide for a framework for foreign currency exposures both currency risks and interest rate risk. As per the policy, the Company does not participate in pure speculative hedging transactions i.e. hedging transactions that are not supported by underlying inflows / out flows of foreign currency.

6. Derivatives are initially recognized at fair value at the date on which the Derivative contracts are entered into and are subsequently re-measured to their fair value at the end of the reporting period. Fair value of Derivative contracts are determined by Mark to Market valuation.

7. Foreign currency transactions include transactions arising from Exports and Imports of goods / services, payment for professional fee, technical fee, royalty, Letter (s) of credit , Supplier credit and foreign currency loans. A twelve month rolling forecast is made and hedging options exercised as per the forex policy of the Company.

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Mar 31, 2016

(vii) Rights, preferences and restrictions attached to Shares mentioned above:

The Company has only one class of equity shares having a par value of Rs, 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.

The Preference shares shall have a face value of Rs, 10 and is entitled to receive a cumulative dividend at the rate of 6.74%. The Preference share shall have a tenure of maximum 20 years. The Preference shares are redeemable before 20 years at the option of the share holders.

Additional interest of 0.5% p.a. is paid to employees / retired employees of Rane Group.

In respect of the Fixed Deposits which has not fallen due for repayment as at 31 March 2016 as per the original terms of acceptance of such deposits, aggregating Rs, 1.23 Crores, the Company has in pursuance of MCA Circular dated 28 January 2015 filed an application before the Company Law Board, Chennai (CLB), on 27 March 2015, seeking permission to repay the deposits on the respective maturity dates in accordance with the terms of acceptance of these deposits, as stipulated under Section 74 of the Companies Act 2013. Approval of the CLB has been obtained on 16 September 2015.

* Secured loans include cash credit, packing credit, commercial paper and working capital demand loan from banks and are secured on a pari passu basis by a first charge by way of hypothecation of inventories and book debts and are also secured by a second charge on all immovable properties and movable fixed assets of the Company both present and future.

Employee Benefits

A. Gratuity : In keeping with the Company''s Gratuity Scheme (defined benefit plan) eligible employees are entitled to gratuity benefit (at one half month''s eligible salary for each completed year of service) on retirement/death/incapacitation/ termination etc. Also refer Note 1. 12(b) (iii) for accounting policy relating to gratuity.

* Experience adjustment has been disclosed up to FY 2011-12 based on the information available in the actuarial valuation report.

The Company has invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity Shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The expected rate of return on plan assets is based on the composition of plan assets held (through LIC), historical results of the return on plan assets, the Company''s policy for plan asset management and other relevant factors.

Note : 1 Previous Year Figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2015

Corporate Information

The Company is engaged in manufacturing of Steering and suspension linkage products, Steering gear products, and high precision aluminium of die casting products. the company is a significant supplier to major manufacturers of passenger cars, utility vehicles and farm tractors across the globe. the company has manufacturing locations at tamilnadu, pondicherry,Karnataka, Uttarkhand and Hyderabad.

2.1 Rights, preferences and restrictions attached to Shares mentioned above:

The company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. the dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, in proportion to their shareholding.

The preference shares shall have a face value of Rs. 10 and is entitle to receive a cumulative dividend at the rate of 6.74%. the preference share shall have a tenure of maximum 20 years. the preference shares are redemable before 20 years at the option of the share holders.

2.2 Secured

Nature of Security

1. ECB Loans from Standard Chartered Bank (SCB) and DBS Bank Limited (DBS) and an INR term loan from HDFc is secured on a pari passu basis by a first charge created on the company's immovable properties both present and future and are also secured by hypothecation of the company's movable properties both present and future, subject to prior charge on the book debts and inventories in favour of the bankers for working capital facilities. Terms of Repayment

2. The INR Term Loans from ING Vysya and Yes Bank

is secured on a pari passu basis by a first charge created on the company's Diecast Business's immovable properties both present and future and are also secured by hypothecation of the company's Diecast Business's movable properties both present and future, subject to prior charge on the book debts and inventories in favour of the bankers for working capital facilities.

3. rupee loan from Rane TRw Steering Systems limited (RTSSL) is secured on the repective machinery of Diecast business . a) HDFc Bank - INR long term loan amounting Rs. 20 crores is repayable in 8 quarterly instalments commencing from December 2014 with 1 Year of Moratarium along with an interest at the rate of 11.25% per annum ( Base Rate 125 Bps). the Balance outstanding as at 31 march 2015 is Rs. 15 crores (As at 31 march 2014 - Rs. 20 crores).

Terms of REpayment :

a) ScB - EcB loan amounting to Rs.14.45 crores is repayable in 16 equal quarterly installments commencing from February 2012 along with interest at the rate of 8.85 % per annum. The balance outstanding as at 31 March 2015 is Rs. 2.71 crores (As at 31 march 2014 - Rs. 6.33 crores).

b) ScB - EcB loan amounting to Rs.16.80 crores is repayable in 16 equal quarterly installments commencing from December 2012 along with interest at the rate of 7.95% per annum. the balance outstanding as at 31 march 2015 is Rs. 6.30 crores (As at 31 march 2014 - Rs.10.49 crores).

c) DBS - EcB loan amounting to Rs. 15.29 crores is repayable in 8 equal half yearly installments commencing from September 2012 along with interest at the rate of 8.98 % per annum. the balance outstanding as at 31 march 2015 is Rs. 3.82 crores (as at 31 march 2014 - Rs. 7.65 crores).

b) ING vysya Bank - INR long term loan amounting to Rs. 3.20 crores is repayable in 13 Quarterly Instalments commencing from September 2014 with 6 months of moratarium period along with a interest rate of 11.15% per annum. the Balance outstanding as on 31 march 2015 is Rs. 2.70 crores (As at 31 march 2014 - Rs. 2.70 crores).

c) Yes Bank ltd - INR long term loan amounting to Rs. 16 crores is repayable in 12 equal quarterly instalments commencing from September 2011 with 2 years moratarium period along with a interest of 12% per annum. the balance outstanding as on 31 march 2015 is Nil (As at 31 march 2014 - Rs. 1.33 crores).

d) Yes Bank ltd - INR long term loan amounting to Rs. 3.5 crores is repayable in 17 equal quarterly instalments commencing from august 2013 with 9 months moratarium period along with a interest of 12% per annum. the Balance outstanding as on 31 march 2015 is Rs. 2.26 crores (As at 31 march 2014 -Rs. 3.08 crores).

e) Yes Bank ltd- INR long term loan of Rs. 3.00 crores is repayable in 14 equal quarterly instalments commencing from may 2011 with 6 months moratarium period along with a interest of 12% per annum. the balance outstanding as on 31 march 2015 is Nil (As at 31 march 2014 - Rs. 0.44 crores).

f) Kotak mahindra Bank ltd - INR long term loan amounting Rs. 45 crores is repayable in 16 equal quarterly Instalments commencing from September 2015 with 1 Year of moratarium period along with an Interest at the rate of 10.25% per annum ( Base Rate 25 Bps). the Balance outstanding as at 31st march 2015 is Rs. 35.69 crores.

g) canara Bank ltd - INR long term loan amounting Rs. 45 crores is repayable in 20 equal quarterly Instalments commencing from march 2016 with 1.5 Years of moratarium period along with an Interest at the rate of 10.45% per annum ( Base Rate 25 BpS). the Balance outstanding as at 31st march 2015 is Rs. 7.76 crores.

i) RTSSL loan - INR loan from Rane TRw Steering Systems limited amounting to Rs.10 crores which is repayable in 16 equal instalments commencing from September 2013 with an interest of 9% per annum. The balance outstanding as on 31 march 2015 is Rs. 5.90 crores ( As on 31 march 2014 - Rs. 9.15 crores) which is secured on the respective machinery of Diecasting Business.

Unsecured

Nature of Security

1. Term Loan from IDBI Bank Limited amounting to Rs. 1.70 crores 2. Advance from TRw Automotive US LLc amounting to Rs. 2.92 crores (USD 5,50,000 equivalent)

3. long term loan from related party - RHL amounting to Rs. 7.50 crores at the rate of 12 % per annum. The Balance outstanding as at 31st March 2015 is Nil (As at 31 March 2014 - Rs. 4.50 crores).

3. Fixed Deposits Terms of Repayment

it is repayable in 20 equal quarterly installment commencing from october 2010 along with interest at the rate of 14.25 % per annum. the Balance outstanding as at 31 march 2015 is Rs. 0.17 crores (As at 31 march 2014 Rs. 0.51 crores).

It is repayable in 22 Equal instalments commencing from November 2013 with an interest of 1.74% per annum based on the supply forecast. the Balance outstanding as at 31st march 2015 is Rs. 1.05 crores (As at 31 march 2014 - Rs. 2.75 crores). nil

In respect of the Fixed Deposits which has not fallen due for repayment as at 31 march 2015 as per the original terms of acceptance of such deposits, aggregating Rs. 4.62 crores, the company has in pursuance of McA circular dated 28 January 2015 filed an application before the company Law Board, chennai (cLB), on 27 march, 2015, seeking permission to repay the deposits on the respective maturity dates in accordance with the terms of acceptance of these deposits, as stipulated under Section 74 of the companies Act 2013. the approval of the cLB is still awaited.

* Secured loans include cash credit, packing credit, commercial paper and working capital demand loan from banks and are secured on a pari passu basis by a first charge by way of hypothecation of inventories and book debts and are also secured by a second charge on all immovable properties and movable fixed assets of the company both present and future.

* There are no amounts due and outstanding to be credited to investor Education and Protection Fund under Section 125 of the Companies Act, 2013 as at the year end.

Employee Benefits

A. Gratuity : In keeping with the Company's Gratuity Scheme (defined benefit plan) eligible employees are entitled to gratuity benefit (at one half month's eligible salary for each completed year of service) on retirement/death/incapacitation/ termination etc. Also refer Note 1. 12(b) (iii) for accounting policy relating to gratuity.

* Experience adjustment has been disclosed upto FY 2011-12 based on the information available in the actuarial valuation report.

The company has invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government Securities, Debt Funds, equity shares, Mutual Funds, Money Market instruments and time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. the expected rate of return on plan assets is based on the composition of plan assets held (through LiO), historical results of the return on plan assets, the company's policy for plan asset management and other relevant factors.

* include interest paid/payable to Directors @ Net of borrowing cost capitalized ( Refer note 44)

'Amount is below the rounding off norm adopted by the Company.

The company has incurred an amount of Rs.0.60 crores towards corporate Social Responsibility activities during the current year ended 31 March 2015.

Note : 4

Related Party Disclosures

(a) List of related parties where control exists Holding Company

(b) Key Management personnel

(c) Relative of KMp

(d) Enterprises over which KMp or relatives of KMp can exercise significant influence

(e) other related parties where transactions has taken place (Fellow Subsidiaries)

(f) The above information regarding related parties have been determined to the extent such parties have been identified on the basis of information available with the company 2014-15

Rane Holdings limited (RHL) S parthasarathy - Manager under the companies Act, 2013

L Ganesh, chairman

L Lakshman

Meenakshi Ganesh

Aditya Ganesh

Aparna Ganesh

Shanthi Narayan

vanaja aghoram

L Ganesh HUF

Rane Foundation L Lakshman HUF L Ganesh HUF

Rane engine valve Limited (REvL)

Rane Holdings america inc. (RHAI)

Rane Brake Lining Limited (RBL)

2013-14

Rane Holdings Limited (RHL)

S parthasarathy - Manager under the companies AcL 2013

L Ganesh, chairman

L Lakshman

Meenakshi Ganesh

Aditya Ganesh

Aparna Ganesh

Shanthi Narayan

Hema c Kumar

vanaja aghoram

L Ganesh HUF

Rane Foundation

Kar Mobiles Limited

L Lakshman HUF

Rane Engine valve Limited (REvL)

Rane Brake Lining Limited (RBL)

Rane Holdings america inc. (RHAI)

Rs Crores

As at As at 31 March 2015 31 March 2014 Note : 5

Contingent Liabilities, Guarantees and Commitment Contingent Liabilities

Claims against the company not acknowledged as debts:

(i) income Tax matters under appeal by the company 13.43 12.98

(ii) central Excise and Service tax matters under appeal by the company 3.46 1.68

(iii) Labour related matters under appeal by the company 1.67 1.18

(iv) corporate license fee under appeal by the company 0.11 0.11

others

(i) income tax matters under appeal by the 0.31 0.31 Department Future cash flows in respect of the above matters are determinable only on receipts of judgments/decisions pending at various authorities

Guarantees and Letter of Credit outstanding bank 0.79 2.34 guarantees

Letter of credit 2.87 4.40

Bill Discounting

Outstanding 21.28 6.20

Commitment

Estimated amount of contracts remaining to be executed on capital account and not provided for [net of advance Rs.8.77 crores (previous year Rs.6.48 crores)] tangible asset 8.06 11.00

Total 51.98 40.20

The Company's operations comprise of only one business segment viz., components for transportation industry. The geographical segments considered for disclosure are - india and Rest of the world. All the manufacturing facilities are located in india.

Note : 6 Exceptional item

Exceptional items represents amount paid to employees who opted for voluntary retirement scheme extended to employees during the year.

Note: The above expenditure has been incurred by all the units of the company . However deduction under Section 35(2AB) of the income tax act , 1961. is being claimed only for puducherry and velachery unit. in respect of puducherry unit the company has made an applicatio to obtain approval from the Department of Scientific and industrial research in respect of its R&D unit. the approval is awaited

Details on derivative instruments and unhedged foreign currency exposures

I. The following derivative positions are open as at 31 March 2015.

(a) Forward exchange contracts and options (being derivative instruments), which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

(i) outstanding forward exchange contracts entered into by the company as on 31 march 2015

Rupees

During the year, pursuant to the notification of Schedule ii to the Companies Act, 2013 with effect from April 1, 2014, the Company has changed its estimated useful life of certain categories of assets to align the useful life with those prescribed in Schedule ii. The details of previously applied and currently adpoted depreciation method, rates / useful life are as follows:

pursuant to the transition provisions prescribed in Schedule ii to the companies act, 2013, the company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be nil as on april 1, 2014, and has adjusted an amount of Rs. 63 lakhs (net of deferred tax of Rs. 32 lakhs) against the opening Surplus balance in the Statement of profit and Loss.

The depreciation expense in the Statement of profit and Loss for the year is higher by Rs.306 lakhs consequent to the change in the useful life of the assets.

The position of Chief Financial Officer fell vacant on 30th January 2015 and a new appointment is yet to be made Note : 46

Previous Year Figures

previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

Note: N.A- Not Applicable

(i) None of the other directors receive any remuneration from the Company except sitting fees for attending meeting of the Board / committee(s) thereof.

(ii) Mr p Krishnamoorthy, cFo resigned effective January 30, 2015.

(iii) Remuneration of Secretary is part of the secretarial services availed by the company from Rane Holdings Limited.

2. median remuneration of the employees of the company for FY 2014-15 is Rs. 3.43 lakhs. Increase in median remuneration during the year: 15%.

3. number of permanent employees on the rolls of the company as on march 31,2015 was 1018 as against 1022 as on march 31,2014.

4. Relationship between average increase/decrease in remuneration and company performance:

(i) The average remuneration increased by 15%.

(ii) During FY 2014-15, the sales grew by 7.2% and profit before tax (pBT) declined by 14%. the decline in pBT is on account of change in depreciation due to revision in estimated useful life of assets as per companies AcL 2013 and exceptional expenditure incurred towards separation benefits under the voluntary retirement Scheme (vRS).

5. Comparison of remuneration of the Key Managerial Personnel(s) (KMP) against the performance of the Company:

the total remuneration of Key managerial personnel increased by 11% in 2014-15. the details of performance of the company is discussed in 4 (ii) above.

6. Average percentile increase made in salary of employees other than the managerial personnel in last financial year as against percentile increase in managerial remuneration average percentile increase made in salary of employees other than the managerial personnel in last financial year : 7%, the percentile increase in managerial remuneration: 11%. the increase in managerial remuneration is in line with the present industry standards.

7. Ratio of remuneration of the highest paid director to that of employees who are not directors but receive remuneration in excess of highest paid director during the year:

Not applicable. No remuneration is paid to directors except sitting fees for attending meetings of the Board/ committee(s) thereof and commission to chairman (non-executive). Hence, not comparable with the remuneration paid to the employees.

8. Key parameters for any variable component of remuneration availed by the directors

There are no key variable components in the remuneration paid to the non-executive directors except in the case of Chairman (Non-Executive) who is entitled to receive commission on the profits as per the approval of shareholders and decided by the Board of Directors of the company based on the recommendation of the nomination and Remuneration committee.

(ii) Percent increase over/decrease in the market quotations of shares of the company as compared to the rate at which company came out with last public offer: not applicable since the company has not made any public offer and the last issued equity share capital represents shares allotted to the shareholders of demerged company on account of Scheme of arrangement under Section 391-394 of the companies Act, 1956, as sanctioned by the Hon'ble High court of Judicature at Madras vide its order dated April 25, 2005.

9. it is hereby affirmed that the remuneration paid is in accordance with the remuneration policy.

A. Details as per Rule 5 (2) & 5 (3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

i. Employed throughout the financial year with remuneration not less than Rs.60 lakhs per annum.

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Mar 31, 2013

Note : 1

Segment Reporting

The entire operations of the Company relate only to one segment viz.''Components for Transportation Industry''. Company''s operation in different territories does not have significantly different risks and returns.

Note 2:

Details on derivative instruments and unhedged foreign currency exposures

I. The following derivative positions are open as at 31 March 2013.

(a) Forward exchange contracts and options (being derivative instruments), which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

(b) Cross Currency interest rate swaps to hedge against fluctuations in exchange rate and fluctuations in interest rate. No. of contracts: 3 (As at 31 March 2013)

Note 3:

Previous Year Figures

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

Note 1

External Commercial Borrowings and related swap contracts

Yearend balance of foreign currency External Commercial Borrowings (ECBs) amounting to Rs.45.64 Crores are fully hedged through related swap contracts and are accounted as INR loan. The Company has been consistently treating the ECBs and the associated swap contracts as composite transactions.

Consequently,

(i) notional loss on restatement of ECBs aggregating to Rs. 5.03 Crores relating to depreciable fixed assets have not been adjusted to the carrying amount of fixed assets and

(ii) unrealized notional mark to market gain of Rs. 4.49 Crores relating to outstanding swap contracts has not been recognized in the Statement of Profit and Loss

(vi) Kignts, preferences and restrictions attached to equity bhares mentioned above:

The Company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.

Nature of Security

Long-term loans from SCB and DBS are secured on a pari passu basis by a first charge created on the Company's immovable properties both present and future and are also secured by hypothecation of the Company's movable properties both present and future, subject to prior charge on the book debts and inventories in favors of the bankers for working capital facilities.

Terms of Repayment for secured borrowings:

a) SCB - ECB loan availed Rs. 14.45 crores is repayable in 16 equal quarterly installments commencing from February, 2012 along with interest of 8.85 % per annum. Yearend balance is Rs. 13.55 crores (previous year Rs. 14.45 crores).

b) SCB-ECB loan availed Rs. 16.80 crores is repayable in 16 equal quarterly installments commencing from December, 2012 along with interest of 7.95% per annum. Yearend balance is Rs. 16.80 crores (previous year Rs.Nil).

c) SCB - ECB loan availed Rs. 13.64 crores is repayable in 16 equal quarterly installments commencing from April, 2008 along with interest of 3.00 % per annum. Yearend balance is Rs. Nil (previous year Rs. 3.92 crores)

d) DBS - ECB loan availed Rs. 15.29 crores is repayable in 8 equal half yearly installments commencing from September, 2012 along with interest of 8.98 % per annum. Yearend balance is Rs. 15.29 crores (previous year Rs. 15.29 crores).

Terms of Repayment for unsecured borrowings:

a) Term Loan from IDBI Bank Limited availed Rs. 1.70 crores is repayable in 20 equal quarterly installments commencing from October, 2010 along with interest of 14.25 % per annum. Yearend balance is Rs. 1.19 crores (previous year Rs.1.53 crores).

Note : 2

The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

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Mar 31, 2011

1 Share Capital

1.1 5,438,125 (previous year - 5,438,125) equity shares of Rs.10 each are held by Rane Holdings Limited, the holding company.

1.2 8,131,316 (previous year-8,131,316) equity shares of Rs.10 each were allotted for consideration other than cash.

2 Secured Loans

2.1 Term loans from Banks are secured (Canara Bank and Standard Chartered Bank)/ to be secured (DBS Bank Limited) on a pari passu basis by a first charge created on the Company's immovable properties both present and future and are also secured by hypothecation of the Company's movable properties both present and future, subject to prior charge on the book debts and inventories in favour of the bankers for working capital facilities.

2.2 Cash credit, packing credit facilities and short term loans are secured on a pari passu basis by a first charge by way of hypothecation of inventories and book debts and are also secured by a second charge on all immovable properties and movable fixed assets of the Company both present and future.

3 Unsecured Loan

3.1 Fixed Deposits maturing within a period of one year amount to Rs.28,470 thousands (previous year - Rs. 18,390 thousands).

3.2 Loan from IDBI Bank repayable within one year is Rs.3,409 thousands (previous year - Rs. 2,557 thousands)

4 Cash and Bank Balances

Current Accounts include Interest Warrant Account Rs.796 thousands (previous year - Rs.1,018 thousands) and Unpaid Dividend Account Rs.765 thousands (previous year - Rs. 746 thousands)

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market. The expected rate of return on plan assets is based on the composition of plan assets held (through LIC), historical results of the return on plan assets, the Company's policy for plan asset management and other relevant factors.

This being the fourth year of implementation of Accounting Standard 15 on 'Employee Benefits', figures of immediately preceding three years only have been given.

5 Segment Reporting

The entire operations of the Company relate only to one segment viz. 'Components for Transportation Industry'. Company's operation in different territories does not have significantly differing risks and returns.

6 Related Party Disclosures

(a) List of related parties where control exists

Holding Company Rane Holdings Limited (RHL)

(b) Key Management Personnel Harish Lakshman-Manager under the Companies Act, 1956 L Ganesh, Chairman

(c) Relatives of KMP Malavika Lakshman

L Lakshman (including L Lakshman HUF)

Pushpa Lakshman

Vanaja Aghoram

Shanthi Narayan

Aditya Ganesh

(d) Enterprises over which KMP can Rane TRW Steering Systems Limited (RTSSL) exercise significant influence Rane Foundation

Kar Mobiles Limited (KML)

(e) Other Related parties where Rane Engine Valve Limited (REVL) transactions has taken place Rane Diecast Limited (RDL) (Fellow Subsidiaries) Rane Brake Lining Limited (RBL)

(f) The above information regarding related parties have been determined to the extent such parties have been identified on the basis of information available with the Company.

7. Previous year's figures have been regrouped/re-arranged wherever necessary to conform to current year's presentation.

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Mar 31, 2010

1 Change in Accounting Estimate

Based on the reassessment of the provisioning norms for debtors and inventory, all debts in excess of 180 days have been provided as doubtful debts as against 270 days in the previous year. In respect of raw materials and finished goods inventory ageing more than one year and semi-finished goods inventory ageing more than three months have been provided as slow-moving inventory as against two years for raw materials, one year for finished goods inventory and six months for semi-finished goods inventory in the previous year. As a result of this change, the provision for doubtful debts and slow moving inventory has increased by Rs. 2,037 thousands and Rs. 15,515 thousands respectively and the profit for the year ended March 31, 2010 has decreased by Rs.17,552 thousands.

2 Share Capital

2.1 5,438,125 equity shares of Rs.10 each are held by Rane Holdings Limited, the holding company.

2.2 8,131,316 equity shares of Rs.10 each were allotted for consideration other than cash.

3 Secured Loans

3.1 Term loans from Banks are secured on a pari passu basis by a first charge created on the Companys immovable properties both present and future and are also secured by hypothecation of the Companys movable properties both present and future, subject to prior charge on the book debts and inventories in favour of the bankers for working capital facilities.

3.2 Cash credit, packing credit facilities and short term loans are secured on a pari passu basis by a first charge by way of hypothecation of inventories and book debts and are also secured by a second charge on all immovable properties and movable fixed assets of the Company both present and future.

4 Unsecured Loan

4.1 Fixed Deposits maturing within a period of one year amount to Rs. 18,390 thousands (previous year -Rs. 8,295 thousands).

4.2 Amount repayable in respect of Interest free sales tax loan within one year is Rs. Nil thousands (previous year- Rs. 2,471 thousands).

5 Cash and Bank Balances

The above information and that given in Schedule L-"Liabilities" regarding Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company.

6 Capital Commitment

7 Contingent Liabilities

Claims against the Company not acknowledged as debts 74,891 29,341

8 Disclosure as per AS15 revised

9 Managerial Remuneration

* Company follows depreciation rates higher than the rates prescribed under Section 350 and accordingly the same has been considered for the purpose of managerial remuneration.

10 Segment Reporting

The entire operations of the Company relate only to one segment viz. Components for Transportation Industry. As the exports are predominantly to developed countries, geographical risk is not different from domestic market and hence no separate secondary segment disclosure is required.

11 Related Party Disclosures

(a) List of related parties where control exists

Holding Company Rane Holdings Limited (RHL)

Fellow Subsidiaries Rane Engine Valve Limited (REVL) Rane Diecast Limited (RDL) Rane Brake Lining Limited (RBL)

(b) Key Management Personne l (KMP) Harish Lakshman-Manager under The Companies Act, 1956 L Ganesh, Chairman S Parthasarathy, President

(c) Relatives of KMP Malavika Lakshman L Lakshman Pushpa Lakshman Vanaja Aghoram

(d) Enterprises over which KMP can Rane TRW Steering Systems Limited (RTSSL) exercise significant influence

(e) The above information regarding related parties have been determined to the extent such parties have been identified on the basis of information available with the Company.

12 Previous years figures have been regrouped wherever necessary.