Notes to Accounts of Rasandik Engineering Industries Ltd.

Mar 31, 2025

1.18 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. When the Company expects some or all of a
provision to be reimbursed, for example, under an insurance
contract, the reimbursement is recognised as a separate
asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement.

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

A contingent liability is disclosed when there is a possible
obligation that arises from events and whose existence
is only confirmed by one or more doubtful future events
or when there is an obligation that is not recognised as a
liability or provision because it is not likely that on outflow
of resources will be required

1.19 Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. Ind AS 108 Operating Segments requires
Management to determine the reportable segments for
the purpose of disclosure in financial statements based on
the internal reporting reviewed by Chief Operating Decision
Maker (CODM) to assess performance and allocate

resources Operating segments are defined as ''Business
Units'' of the Company about which separate financial
information is available that is evaluated regularly by the
chief operating decision-maker, or decision-making group,
in deciding how to allocate resources and in assessing
performance.

The Company is primarily engaged in the business of
"manufacturing of components” for automobiles for Indian
market which is governed by the same set of risks and
returns. Hence there is only one business and geographical
segment. Accordingly, segment information has not been
disclosed.

1.20 Non-current assets classified as held for sale

Non-current assets are classified as held for sale if their
carrying amount will be recovered principally through a
sale transaction rather than through continuing use and a
sale is considered highly probable. They are measured at
the lower of their carrying amount and fair value less cost
to sell. An impairment loss is recognised for any initial or
subsequent write down of the asset to fair value less cost
to sell. A gain is recognised for any subsequent increase
in fair value less cost to sell of an asset, but not in excess
of any cumulative impairment loss previously recognised.
A gain or loss not previously recognised by the date of
sale of the non-current asset is recognised at the date of
de-recognition. Non-current assets are not depreciated or
amortized while they are classified as held for sale. Non¬
current assets classified as held for sale are presented
separately from the other assets in the balance sheet.

1.21 Cash and cash equivalents

For the purpose of presentation in the statement of cash
flows, cash and cash equivalents includes cash on hand,
deposits held at call with financial institutions, other short¬
term, highly liquid investments with original maturities of
three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant
risk of changes in value, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities
in the balance sheet.

1.22 Cash flow statement

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

1.23 Earnings/(loss) per share

(i) Basic earnings/ (loss) per share calculated by
dividing the profit attributable to owners of the
Company by the weighted average number of equity
shares outstanding during the financial year.

(ii) Diluted earnings / (loss) per share adjusts the figures
used in the determination of basic earnings per
share to take into account:

• the after income tax effect of interest and
other financing costs associated with dilutive
potential equity shares, and

• the weighted average number of additional
equity shares that would have been outstanding
assuming the conversion of all dilutive potential
equity shares.

1.24 Recent accounting 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.

The Ministry of Corporate Affairs, Government of India
has recently notified the new Standards/Amendments
to the existing Standards under Companies (Indian
Accounting Standards) Rules as issued from time to
time. Based on preliminary assessment of the notified
Standard/ Amendments, the company is of prima facie
view that these are not likely to have any material impact
in the preparation, disclosure and presentation of Financial
Statements upon Compliance from the effective date.

Working capital loan (cash credit facility) from Bank is secured by first charge on hypothecation of stocks of raw materials, stock
in process, finished goods, stores & spares and receivables. The same are also collaterally secured by first charge on the fixed
assets including immoveable property of the Company situated at Sohna (Haryana), Pune (Maharashtra) and Gautam Budh
Nagar (Uttar Pradesh) except the immovable property ( industrial land only) charged to another bank for overdraft limit against
property. Further the loan has been guaranteed by personal guarantee of two promoter directors of the Company. Loan against
property taken from bank is secured by first charge( equitable mortgage ) of industrial land located at Revenue Estate, Village
Kanwarsikka, Discrict. Nuh (Mewat), Haryana. Further the loan has been guaranteed by personal guarantee of one promoter
director of the Company.

Loan against deposit - During the year, Company has taken a loan of Rs. 6.89 lakh against bank deposit, carries a interest rate of
7.75% p.a. and repayale in single installment on 31.05.2025.

Against the working capital limits by the Banks, quarterly statements filed by the Company are not in agreenment with books
of accounts, the difference is mainly due to amount provided for in the books of account for diminution in value of inventories
not considered and correct ascertainment of trade payables. In respect of certain trade receivables, the corresponding advance
received have not been considered.

(a) Performance obligations

There is no remaining performance obligation for any contract for which revenue has been recognised till year end. Further,
the Company has not applied the practical expedient as specified in para 121 of Ind AS 115 as the Company do not have any
performance obligations that has an original expected duration of one year or more or any revenue stream in which consideration
from a customer corresponds directly with the value to the customer of the Company''s performance completed to date.

(b) Transaction Price

The Company satisfies its performance obligations pertaining to the sale of auto components at point in time when the control
of goods is actually transferred to the customers. No significant judgment is involved in evaluating when a customer obtains
control of promised goods. The contract is a fixed price contract and do not contain any financing component. The payment is
generally due within 30-90 days. There are no other significant obligations attached in the contract with customer.

(c) Determining the timing of satisfaction of performance obligations

There is no significant judgements involved in ascertaining the timing of satisfaction of performance obligations, in evaluating
when a customer obtains control of promised goods, transaction price and allocation of it to the performance obligations.

(d) Determining the transaction price and the amounts allocated to performance obligations

The transaction price ascertained for the only performance obligation of the Company (i.e. Sale of goods) is agreed in the contract
with the customer. There is no variable consideration involved in the transaction price except for refund due to shortages which
is adjusted with revenue.

(e) Cost to obtain contract or fulfil a contract

There is no cost incurred for obtaining or fulfilling a contract and there is no closing assets recognised from the costs incurred
to obtain or fulfil a contract with a customer.

25.1 Company has sold Non Current Assets held for sale for Rs. 1,445.87 lakhs (31 March 2024: Rs. 4,367.28 lakhs). Profit on sale of
Non Current Assets held for sale amount to Rs. 624.56 lakhs (31 March 2024: Rs. 2,828.94 lakhs).

25.2 Towards the objective to generate cash flow, improve leverage ratios by reducing working capital facilities of the Company
and to improve the financial performance of the Company, the Board of Directors identified and decided to sell certain
property, plant and equipments. Accordingly, it was considered appropriate to classify the carrying value of ? 1,180.78
lakhs as at 31 March 2024 of such identified property, plant and equipments as "non-current assets held for sale”.
Out of the above, "non-current assets held for sale” the Company has sold assets having carrying value of ? 750.19 lakhs. Out
of the remaining amount of ? 430.59 lakhs carried under "non-current assets held for sale, against certain plant and equipment
having carrying value of ? 110.59 lakhs , an amount of ? 181.20 lakhs has been received as advance, which is included under
"other current liabilties”. For plant and equipment having carrying value of ? 320.00 lakhs, management has considered it
appropriate to re-classify non-current assets held for sale to capital work-in-progress, since the management believes it will be
prudent to install/commission the machinery in the near future.

(ii) The management assessed that the fair values of cash and cash equivalents, other bank balances, trade receivables, loans,
other current financial assets, trade payables, short term borrowings, and other financial liabilities approximates their
carrying amounts largely due to the short-term maturities of these instruments.

(iii) Fair value of non current other financial assets ( fixed deposits) approximates their carrying amount due to no change in
redemption value.

(iv) For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to their fair values.

(v) The fair value of the financial assets and financial liabilities is included at the amount at which the instruments could be
exchanged in a current market conditions between willing parties, other than in a forced or liquidation sale.

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

a) The fair values for loans were calculated based on cash flows discounted using current lending rate. They are classified
as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty
credit risks, which has been assessed to be insignificant.

b) The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. They
are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including
own credit risks, which was assessed as on the balance sheet date to be insignificant.

c) During the year ended March 31, 2025 and March 31, 2024 there were no transfers between Level 1 and Level 2 fair
value measurements, and no transfer into and out of Level 3 fair value measurements.

(vii) Fair Value Hierarchy
Explanation to the fair value hierarchy

The Company measures financial instruments, such as, quoted investments at fair value at each reporting date. Fair value is the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

Level 1

Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, tax free
bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in
the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using their NAV
at the reporting date.

Level 2

The fair value of financial instruments that are not traded in an active market (for example 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, contingent consideration included in level 3.

42 FINANCIAL RISK MANAGEMENT

In the course of its business, the Company is exposed primarily to market risk, liquidity risk and credit risk, which may adversely
impact the fair value of its financial instruments. The Company has a risk management policy which not only covers the foreign
exchange risks but also other risks associated with the financial assets and liabilities such as credit risks. The risk management
policy is approved by the board of directors. The risk management framework aims to:

- Create a stable business planning environment by reducing the impact of currency fluctuations on the Company''s
business plan.

- Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

a) Credit Risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual
terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness. For
the Company, credit risk arises from cash and cash equivalents, other balances and deposits with bank and trade receivables.

Credit risk management

For banks and financial institutions, only high rated banks/institutions are accepted.

For other financial assets, the Company considers the probability of default upon initial recognition of asset and whether there
has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is
a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date
with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking
information. Especially the following indicators are incorporated:

- actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a
significant change to the counterparty ability to meet its obligations

- actual or expected significant changes in the operating results of the counterparty - significant increase in credit risk on other
financial instruments of the same counterparty

- significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit
enhancements

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 90
days past due.

A default on a financial asset is when the counterparty fails to make contractual payments within 365 days of when they fall
due. This definition of default is determined by considering the business environment in which entity operates and other macro¬
economic factors.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure.

None of the Company''s cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade
receivables and other receivables, and other financial assets that are neither impaired nor past due, there were no indications as
at March 31,2025, that defaults in payment obligations will occur.

Financial assets that are neither past due nor impaired

None of the Company''s cash equivalents, including time deposits with banks, are past due or impaired

Regarding trade receivables and other receivables, and other financial assets that are neither impaired nor past due, there were
no indications as at March 31,2025, that defaults in payment obligations will occur.

b) Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawing up cash forecast
for short term and long term needs.

The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay
or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and
cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing
assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are
invested in certain mutual funds and fixed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn
credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

c) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three type of risks: Foreign Exchange Risk, Interest Rate Risk and Other Price Risk.

i) Foreign Exchange Risk

Foreign Exchange Risk is the exposure of the Company to the potential impact of movements in foreign exchange rates.
Company''s exports are exposed to foreign currency risks.

The Company has no exposure to foreign currency risk at the end of the reporting period.

ii) Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation, on long and Short term borrowings.

The crucial aspect of the management of interest rate risk is to protect the value of borrowings as much as possible from the
adverse impact of the interest rate movements. The focus of the borrowing strategy revolves around the overwhelming need
to keep the interest risk of borrowing reasonably low with a view to minimize losses arising out of the adverse interest rate
movements.

44 CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE:

The Company does not meet the criteria specified in sub section (1) of section 135 of the Companies Act, 2013, read with
Companies Corporate Social Responsibility Rules, 2014. Therefore it is not required to incur any expenditure on account of
CSR activities during the year.

45 LEASES (IND AS 116)

As Lessee

The Company has taken certain offices and residential premises/facilities under operating lease/sub-lease agreements for
short period. The aggregate lease rental of ? 62.40 lakhs (previous year ? 61.40 lakhs) has been charged to the Statement of
Profit and Loss.

₄₆ ADDITIONAL DISCLOSURES/ REGULATORY INFORMATION AS REQUIRED BY NOTIFICATION NO. GSR 207(E) DATED
24.03.2021 (TO THE EXTENT APPLICABLE):

Compliance with number of layers of companies:

No layers of companies has been established beyond the limits prescribed under clause 87 of section 2 of the Companies Act,
2013 read with Companies (Restriction on number of Layers) Rules, 2017.

47 RELATIONSHIP WITH STRUCK OFF COMPANIES:

No transaction has been made with the company striking off under section 248 of The Companies Act, 2013 or section 560
of Companies Act, 1956. During the year ended 31.03.2025 and year ended 31.03.2024.

48 UNDISCLOSED INCOME:

Details of transactions not recorded in the books of account that has been surrendered/ disclosed as income during the year
in the tax assessments ? Nil (Previous year ? Nil)

49 No scheme of arrangements have been approved by the Competent authority in terms of Section 230 to 237 of the Companies
Act, 2013.

!8

\

50 The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2025 and 31
March 2024.

51 a) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other

sources or other kind of funds) to or in any other person or entity, including foreign entity ("Intermediaries”), with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b) The Company has not received any funds (which are material either individually or in the aggregate) from any person or
entity, including foreign entity ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that
the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

53 Trade receivables and recoverable shown under assets and trade and other payables shown under liabilities includes balance
which is subject to confirmation / reconciliation. However reconciliations are carried out on ongoing basis. The management
does not expect any material adjustment in the books of accounts as a result of reconciliation.

54 The Company does not have any Subsidiary, Associate or Joint venture as at 31 March 2025. Accordingly the Company is not
required to publish the consolidated financial statement.

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

As per our attached report of even date.

For V. Sankar Aiyar & Co. For and on behalf of the Board of Directors

Chartered Accountants

ICAI Firm Registration No.109208W

Rajiv Kapoor Abhay Kumar Khanna

Karthik Srinivasan Chairman & Managing Director Director

Partner DIN : 00054659 DIN : 06919161

Membership No. 514998

Gautam Bhattacharya Pradeep Chandra Nayak

Place : New Delhi Chief Financial Officer Company Secretary

Dated : 23th May, 2025 ACS 15852

---

Mar 31, 2024

1.18 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. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.

When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

A contingent liability is disclosed when there is a possible obligation that arises from events and whose existence is only confirmed by one or more doubtful future events or when there is an obligation that is not recognised as a liability or provision because it is not likely that on outflow of resources will be required

1.19 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. Ind AS 108 Operating Segments requires Management to determine the reportable segments for the purpose of disclosure in financial statements based on the internal reporting reviewed by Chief Operating Decision Maker (CODM) to assess performance and allocate resources Operating segments are defined as ''Business Units'' of the Company about which separate financial information is available that is evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance.

The Company is primarily engaged in the business of "manufacturing of components” for automobiles for Indian market which is governed by the same set of risks and returns. Hence there is only one business and geographical segment. Accordingly, segment information has not been disclosed.

1.20 Non-current assets classified as held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less cost to sell. An impairment loss is recognised for any initial or subsequent write down of the asset to fair value less cost to sell. A gain is recognised for any subsequent increase in fair value less cost to sell of an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of

sale of the non-current asset is recognised at the date of de-recognition. Non-current assets are not depreciated or amortized while they are classified as held for sale. Noncurrent assets classified as held for sale are presented separately from the other assets in the balance sheet.

1.21 Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other shortterm, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

1.22 Cash flow statement

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

1.23 Earnings/(loss) per share

(i) Basic earnings/ (loss) per share calculated by dividing the profit attributable to owners of the Company by the weighted average number of equity shares outstanding during the financial year.

(ii) Diluted earnings / (loss) per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

(a) Performance obligations

There is no remaining performance obligation for any contract for which revenue has been recognised till year end. Further, the Company has not applied the practical expedient as specified in para 121 of Ind AS 115 as the Company do not have any performance obligations that has an original expected duration of one year or more or any revenue stream in which consideration from a customer corresponds directly with the value to the customer of the Company''s performance completed to date.

(b) Transaction Price

The Company satisfies its performance obligations pertaining to the sale of auto components at point in time when the control of goods is actually transferred to the customers. No significant judgment is involved in evaluating when a customer obtains control of promised goods. The contract is a fixed price contract and do not contain any financing component. The payment is generally due within 30-90 days. There are no other significant obligations attached in the contract with customer.

(c) Determining the timing of satisfaction of performance obligations

There is no significant judgements involved in ascertaining the timing of satisfaction of performance obligations, in evaluating when a customer obtains control of promised goods, transaction price and allocation of it to the performance obligations.

(d) Determining the transaction price and the amounts allocated to performance obligations

The transaction price ascertained for the only performance obligation of the Company (i.e. Sale of goods) is agreed in the contract with the customer. There is no variable consideration involved in the transaction price except for refund due to shortages which is adjusted with revenue.

(e) Cost to obtain contract or fulfil a contract

There is no cost incurred for obtaining or fulfilling a contract and there is no closing assets recognised from the costs incurred to obtain or fulfil a contract with a customer.

Note : There is no item fair valued through OCI

(ii) The management assessed that the fair values of cash and cash equivalents, other bank balances, trade receivables, loans, other current financial assets, trade payables, short term borrowings, and other financial liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments.

(iii) Fair value of non current other financial assets ( fixed deposits) approximates their carrying amount due to no change in redemption value.

(iv) For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to their fair values.

(v) The fair value of the financial assets and financial liabilities is included at the amount at which the instruments could be exchanged in a current market conditions between willing parties, other than in a forced or liquidation sale.

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

a) The fair values for loans were calculated based on cash flows discounted using current lending rate. They are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risks, which has been assessed to be insignificant.

b) The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. They are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risks, which was assessed as on the balance sheet date to be insignificant.

c) During the year ended March 31, 2024 and March 31, 2023 there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

(vii) Fair Value Hierarchy

Explanation to the fair value hierarchy

The Company measures financial instruments, such as, quoted investments at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1

Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, tax free bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using their NAV at the reporting date.

Level 2

The fair value of financial instruments that are not traded in an active market (for example 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, contingent consideration included in level 3.

43 FINANCIAL RISK MANAGEMENT

In the course of its business, the Company is exposed primarily to market risk, liquidity risk and credit risk, which may adversely impact the fair value of its financial instruments. The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and liabilities such as credit risks. The risk management policy is approved by the board of directors. The risk management framework aims to:

- Create a stable business planning environment by reducing the impact of currency fluctuations on the Company''s business plan.

- Achieve greater predictability to earnings by determining the financial value of the expected earnings in advance.

a) Credit Risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness. For the Company, credit risk arises from cash and cash equivalents, other balances and deposits with bank and financial institutions and trade receivables.

Credit risk management

For banks and financial institutions, only high rated banks/institutions are accepted.

For other financial assets, the Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially the following indicators are incorporated:

- actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the counterparty ability to meet its obligations

- actual or expected significant changes in the operating results of the counterparty - significant increase in credit risk on other financial instruments of the same counterparty

- significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements

In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 90 days past due.

A default on a financial asset is when the counterparty fails to make contractual payments within 365 days of when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure.

None of the Company''s cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables and other receivables, and other financial assets that are neither impaired nor past due, there were no indications as at March 31, 2024, that defaults in payment obligations will occur.

The Company follows 12 months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date) model for recognition of impairment loss on financial assets measured at amortised cost or fair value through other comprehensive income other than trade receivables.

b) Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawing up cash forecast for short term and long term needs.

The Company manages its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are invested in certain mutual funds and fixed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

c) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risks: Foreign Exchange Risk, Interest Rate Risk and Other Price Risk.

i) Foreign Exchange Risk

Foreign Exchange Risk is the exposure of the Company to the potential impact of movements in foreign exchange rates. Company''s exports are exposed to foreign currency risks.

The Company has no exposure to foreign currency risk at the end of the reporting period.

ii) Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation, on long and Short term borrowings.

The crucial aspect of the management of interest rate risk is to protect the value of borrowings as much as possible from the adverse impact of the interest rate movements. The focus of the borrowing strategy revolves around the overwhelming need to keep the interest risk of borrowing reasonably low with a view to minimize losses arising out of the adverse interest rate movements.

44 I CAPITAL MANAGEMENT

Risk management

The Company''s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders.

The Company monitors capital on the basis of the following ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by Total equity (as shown in the balance sheet)

45 CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE:

The Company does not meet the criteria specified in sub section (1) of section 135 of the Companies Act, 2013, read with Companies Corporate Social Responsibility Rules, 2014. Therefore it is not required to incur any expenditure on account of CSR activities during the year.

46 LEASES (IND AS 116)

As Lessee

The Company has taken certain offices and residential premises/facilities under operating lease/sub-lease agreements for short period. The aggregate lease rental of ? 61.40 lakhs (previous year ? 55.02 lakhs) has been charged to the Statement of Profit and Loss.

47 ADDITIONAL DISCLOSURES / REGULATORY INFORMATION AS REQUIRED BY NOTIFICATION NO. GSR 207(E) DATED 24.03.2021 (TO THE EXTENT APPLICABLE):

Compliance with number of layers of companies:

No layers of companies has been established beyond the limits prescribed under clause 87 of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

48 RELATIONSHIP WITH STRUCK OFF COMPANIES:

No transaction has been made with the company striking off under section 248 of The Companies Act, 2013 or section 560 of Companies Act, 1956. During the year ended 31.03.2024 and year ended 31.03.2023.

49 UNDISCLOSED INCOME:

Details of transactions not recorded in the books of account that has been surrendered/ disclosed as income during the year in the tax assessments ? Nil (Previous year ? Nil)

50 I No scheme of arrangements have been approved by the Competent authority in terms of Section 230 to 237 of the

Companies Act, 2013.

51 The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2024 and 31 March 2023.

52 (a) The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other

sources or other kind of funds) to or in any other person or entity, including foreign entity ("Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The Company has not received any funds (which are material either individually or in the aggregate) from any person or entity, including foreign entity ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

54 Trade receivables and recoverable shown under assets and trade and other payables shown under liabilities includes balance which is subject to confirmation / reconciliation. However reconciliations are carried out on ongoing basis. The management does not expect any material adjustment in the books of accounts as a result of reconciliation.

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

As per our attached report of even date.

For V. Sankar Aiyar & Co. For and on behalf of the Board of Directors

Chartered Accountants

ICAI Firm Registration No.109208W

Rajiv Kapoor Dr. Shyam S. Sethi

Karthik Srinivasan Chairman & Managing Director Director

Partner DIN : 00054659 DIN : 01394311

Membership No. 514998

Gautam Bhattacharya Abhay Kumar Khanna

Chief Financial Officer Director

DIN : 06919161

Pradeep Chandra Nayak

Place : New Delhi Company Secretary

Dated : 29th May, 2024 ACS 15852

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Mar 31, 2018

1. NOTES TO THE RECONCILIATIONS

Exceptions and Exemptions applied for Transition to Ind AS Ind AS 101 “First-time adoption of Indian Accounting Standards” (hereinafter referred to as Ind AS 101) allows first time adopters few mandatory and optional exemptions from the retrospective application of certain Ind AS. In preparing these financial statements, the Company has applied the below mentioned exemptions-

Mandatory Exceptions:

(i) Estimates

Upon an assessment of the estimates made under previous GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS except where revision in estimates was necessitated by Ind AS. The estimates used by the Company to present the amounts in accordance with Ind AS reflect conditions existing as at 1 April, 2016 the date of transition to Ind AS and as at 31 March, 2017.

(ii) Derecognition of financial assets and financial liabilities

The Company has elected to apply the derecognition requirements for financial assets and financial liabilities in accordance with Ind AS 109, prospectively for transactions occurring on or after the date of transition to Ind AS.

(ii) Classification and measurement of financial assets

The company has classified the financial assets in accordance with Ind AS 109, on the basis of facts and circumstances that exist at the date of transition to Ind AS.

This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

a) Property, Plant and Equipment

The Company has elected to measure the certain items of property, plant and equipment on the date of transition to Ind AS i.e. 1st April, 2016 at its fair value and is using that fair value as its deemed cost on that date. Items measured at fair value are plant and equipment (including CWIP), freehold land and leasehold land. Building, furniture & fixtures, office equipments and vehicles are carried at their previous GAAP carrying amount.

On the date of transition to Ind AS, the Company has fair value the entire class of land as its deemed cost and increased the value of land by Rs.8,796.52 and credited to retained earnings.

On the date of transition to Ind AS, the Company has also value the entire class of plant and equipment (including CWIP) and decreased the value of plant and equipment Rs.1607.26 Lacs (mainly relates to Singur project at West Bengal) and debited to retained earnings. The management is considering various options as to how the equipment can be appropriately put to use. Therefore, it is considered appropriate to carry the said equipment under the head “Capital work in progress” at its fair value as on the transition date.

Leasehold land cost includes land at Singur in West Bengal of Rs 153.45 Lacs for the purposes of manufacturing auto components. In June 2011, the Government of West Bengal (State Government) enacted a law cancelling the land lease agreement at Singur, and took over possession of the land. In June 2012, the Calcutta High Court declared the law unconstitutional and restored Company''s rights under the land lease agreement. The State Government led an appeal in the Supreme Court of India in August 2012, which is pending disposal. The Company has carried out fair valuation of entire class of land and accordingly, as a matter of prudence the deemed cost of leasehold hold at singur has been assessed as Rs. Nil, as on the transition date. The Company will however continue to pursue the case and assert its rights and its claims in the Courts.

The Company has elected to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP.

Prior period depreciation on certain PPE of Rs. 72.50 Lacs is adjusted in retained earnings and Rs 18.54 Lacs in statement of profit and loss in the FY 2016-17 as per IND AS 8 identified during the process of IND AS Convergence.

b) Advance Lease Rental

The lease rent received in advance for the entire lease period has been fair valueed as on the transition date. The difference between the amount received and fair value on initial recognition is recognised as “deferred rent” and included as part of “other current & non current liabilities”. This amount is subsequently recognised in the Statement of Profit and Loss on a straight line basis as rental income. Further, interest expense computed on the present value of “lease rent received in advance” is charged over the tenure of the lease period using the EIR method.

c) Accounting for EPCG Grant

During 2008-09 & 2011-12, the company had imported certain plant and machinery under EPCG scheme whereby the company received exemption from payment of custom duty subject to the condition of executing certain minimum export sales in future. Under previous GAAP, benefit under EPCG scheme was being reduced from the value of imported plant & machinery. However, under IND AS, it is not allowed to reduce government grant from the cost of the assets. The government grant needs to be recognised as income in profit and loss over the period of the completion of export obligation. The deferred grant relating to export obligation completed as on the transition date have been directly adjusted in retained earnings and the balance deferred grant is released to statement of profit and loss in proportion to the export obligation completed in respective financial year. This has led to upward adjustment in cost of said plant & machinery. Also, the depreciation charge to profit and loss has changed as a result of change in cost of plant & machinery.

d) Keyman insurance policy

Under Ind AS, keyman insurance policy taken in earlier year by the Company has been fair valued through profit and loss (FVTPL). The fair value (i.e. surrender value) as on the transition date of Rs 833.48 Lacs has been accounted directly in equity and incremental fair value of Rs 74.75 for the year ended 31 March, 2017 has been credited to statement of profit and loss

e) Expected Credit Loss (ECL)

The Company has applied expected credit loss model for recognising the allowance for doubtful loans, debts, security and advances. The Company, based on the simplified approach for recognition of impairment loss allowance for trade receivables/advances has been provided as per its respective credit risk as on the transition date. As a result, loss allowance of Rs 511.30 Lacs has been adjusted with a corresponding impact in the retained earnings as at 1 April 2016.

f) ‘Excise Duty

Excise duty in previous GAAP shown as deduction from Revenue. Under Ind AS the revenue is inclusive of excise duty and shown as expense.

g) ‘Re-measurement of Defined Benefit Plan

Under Previous GAAP, re-measurement of retirement defined benefit plans i.e. actuarial gains/ (losses) arising due to experience adjustments and change in assumptions were recognised in the statement of profit and loss. Under Ind AS re-measurement of retirement defined benefit plans (net of tax) is recognised in the “Other Comprehensive Income”.

h) Deferred Tax

The above adjustments have led to change in net deferred tax asset/ liability. The deferred tax adjustment as mentioned above includes error of Rs 403.65 Lacs in opening balance sheet and Rs 229.17 Lacs in statement of profit & loss in the FY 2016-17 as per IND AS 8 identified during the process of IND AS Convergence.

(a) Terms/ rights attached to equity shares

i) The Company''s equity shares have a par value of Rs. 10/- each. ''Holder of equity shares is entitled to one vote per share.

ii) The Company declares and pays dividend in Indian Rupees.The Dividend is proposed by Board of Directors and is subject to the approval of shareholders in the ensuing Annual General Meeting.

iii) In the event of liquidation of the company, the holders of equity shares will be entitled to receive assets of the company, if any remaining after distribution of all preferential accounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Rupee term loans from banks (Secured)

Corporate Loan of Rs 5700 lakhs taken from Oriental Bank of Commerce (rate of interest @ 1 year MCLR plus 2.80% i.e 11.40%) secured by first charge on entire fixed assets of the Company, pledge of 1% shareholding of Mr Rajiv Kapoor (Key promoter) and personal guarantee of Mr. Rajiv kapoor and Mrs. Deepika Kapoor. The loan is repayable in 24 unequal quarterly installments starting from 30.06.2015 and ending on 30.04.2021 in the following manner:

Corporate Loan of Rs 1250 Lakhs taken from Oriental Bank of Commerce (rate of interest @ 1 year MCLR plus 2.80% i.e 11.40%) secured by first charge on entire fixed assets of the Company, pledge of 1% shareholding of Mr Rajiv kapoor (Key promoter) and personal guarantee of Mr. rajiv kapoor and Mrs. Deepika kapoor. The loan is repayable in 24 unequal quarterly installments starting from Dec 2016 and ending on Sep 2022 in the following manner:

The company has taken Vehicle Loans from various banks which carries interest rate @ 9% to12% per annum. The loan are secured against hypothecation of Vehicles purchased. These Loans are taken for maximum three years and falls due for repayment in 2017-18, 2018-19 and 2019-20.

Working capital loan (cash credit facility) from Bank is secured by first charge on hypothetication of stocks of raw materials, stock in process, finished goods, stores & spares and receivables and personal guarantee of two directors of the Company. The same are also collaterally secured by first charge on the unencumbered fixed assets including immoveable property of the Company situated at Sohna (Haryana), Pune (Maharashtra) and Gautam Budh Nagar (Uttar Pradesh) except the immovable property (Industrial Land only) charged to another bank for overdraft limit against Property. Further the loan has been guaranteed by personal guarantee of two promoter directors of the Company.

Loan against property taken from bank is secured by first charge( equitable mortgage ) of unencumbered Industrial land measuring located at Revenue Estate, Village Kanwarsikka, Tehsil Nuh, Distt Mewat, Haryana. Further the loan has been guaranteed by personal guarantee of one promoter director of the Company.

Note

The Company has not received any information from suppliers or service providers, whether they are covered under the “Micro, Small and Medium Enterprises (Development) Act, 2006. Hence disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable.

# In accordance with the requirements of Ind AS/Schedule III of the Companies Act, 2013, sales for the period upto June 30, 2017 and previous year presented herein are inclusive of excise duty. Consequent to applicability of Goods and Service Tax (GST) w.e.f. 1st July, 2017, sales are shown net of GST in accordance with requirements of Ind AS - 18 ''Revenue''. The sales net of excise / GST for the year ended 31 March 2018 and 31.03. 2017 is Rs 231,72.63 Lacs and Rs 205,87.37 Lacs respectively.

In respect of the matter in note no. 33a, future cash outflows are determinable only on receipt of judgements / decisions pending at various forums / authorities. Furthermore, there is no possibilities of any reimbursements to be made to the company from any third party.

2 OPERATING SEGMENT AS PER IND AS 108

The managing director of the company has been identified as the chief operating decision maker (CODM) as defined by Ind AS.108 - Operating Segments. The CODM evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators by industry classes. Accordingly, segment information has been presented. In the opinion of the management, there is only one segment -”Auto Components” which includes products of similar nature, risks and returns. So disclosure of primary segment and geographical segment are not applicable.

(ii) The management assessed that the fair values of cash and cash equivalents, other bank balances, trade receivables, loans, other current financial assets, trade payables, short term borrowings, and other financial liabilities approximates their carrying amounts largely due to the short-term maturities of these instruments.

(iii) Fair value of non current other financial assets (fixed deposits) approximates their carrying amount due to no change in redemption value.

(iv) For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to their fair values.

(v) The fair value of the financial assets and financial liabilities is included at the amount at which the instruments could be exchanged in a current market conditions between willing parties, other than in a forced or liquidation sale.

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

a) The fair values for loans were calculated based on cash flows discounted using current lending rate. They are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risks, which has been assessed to be insignificant.

b) The fair values of non-current borrowings are based on the discounted cash flows using a current borrowing rate. They are classified as Level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own credit risks, which was assessed as on the balance sheet date to be insignificant.

c) During the year ended 31 March 2018 and 31 March 2017, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

(vii) Fair Value Hierarchy

The following are the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair value are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels of fair value measurement as prescribed under the Ind AS 113 “Fair Value Measurement”. An explanation of each level follows underneath the tables.-

During the year ended 31 March 2017 and 31 March 2016, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

Explanation to the fair value hierarchy

The Company measures financial instruments, such as, quoted investments at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, tax free bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using their NAV at the reporting date.

Level 2 The fair value of financial instruments that are not traded in an active market (for example 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, contingent consideration included in level 3.

3 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit disk.

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

The management considers finance as the lifeline of the business and therefore, financial management is carried out on the basis of management information systems and reports at periodical intervals extending from daily reports to long-term plans. Importance is laid on liquidity and working capital management with a view to reduce dependence on borrowings and reduction in interest cost. Various kinds of financial risks and their mitigation plans are as follows:

Risk management

The Company''s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders.

The Company monitors capital on the basis of the following ratio:

a) Credit Risk

Credit risk is the risk that counterparty might not honour its obligations under a financial instrument or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily Trade Receivables).

Customer credit risk is managed by each business unit location and is subject to the Company''s established policy, procedures and control relating to customer credit risk management. Company assesses the credit quality of the counterparties taking into account their financial position, past experience and other factors. Company''s business customers profile include large private automobile sector companies and Government owned entities, and accordingly its credit risk is low. Outstanding customer receivables are regularly monitored and assessed. The Company follows the simplified approach for recognition of impairment loss. Impairment allowance for trade receivables if any, is provided on the basis of respective credit risk of individual customer as on the reporting date. The movement of expected credit loss is given below:

b) Liquidity Risk

The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings up cash forecast for short term and long term needs.

The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are invested in certain mutual funds and fixed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements (if any). Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. When the amount payable is not fixed, the amount disclosed has been determined with reference to conditions existing at the reporting date.

c) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risks: Foreign Exchange Risk, Interest Rate Risk and Other Price Risk.

i) Foreign Exchange Risk

Foreign Exchange Risk is the exposure of the Company to the potential impact of movements in foreign exchange rates. Company''s exports are exposed to foreign currency risks.

Sensitivity Analysis

A reasonably possible strengthening (weakening) of the Rs against USD as at 31 March would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

ii) Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation, on long and Short term borrowings.

The crucial aspect of the management of interest rate risk is to protect the value of borrowings as much as possible from the adverse impact of the interest rate movements. The focus of the borrowing strategy revolves around the overwhelming need to keep the interest risk of borrowing reasonably low with a view to minimise losses arising out of the adverse interest rate movements.

Sensitivity Analysis

Profit or loss is sensitive to higher/ lower interest expense from borrowings as a result of changes in interest rates. This analysis assumes that all other variables, in particular exchange rates, remain constant and ignores any impact of forecast sales and purchases.

iii) Other Price Risk

There is no other price risk on financial instrument outstanding as on 31st Mar''2018 and hence sensitivity analysis with respect to movement in other price risk has not been given.

4 Previous period figures have been regrouped / reclassified where necessary, to conform to this year''s classification

5 APPROVAL OF FINANCIAL STATEMENTS

These financial statements are approved by the Board of Directors on 30th May 2018.

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Mar 31, 2016

1. Corporate Loan of Rs.12.50 Cr taken from Bank during Nov,2015 to 2016 is payable in 24 quarterly ballooning installment of Rs.0.25 Cr from Dec,2016 to Sept,2022 and carried interest rate @11.70%. (b) Corporate Loan of Rs 57.00 Cr taken from Bank during period March,2014 to 2015 is payable in 24 quarterly ballooning installments of Rs 0.64 Cr from June, 2015 to April,2021 and carries interest rate @ 11.70%. c) Term Loan of Rs 10.20 Cr taken from Bank in July,2013 is payable in 24 monthly installments of Rs 0.39 Cr and carries interest rate @ 14.20% d) Term Loan of Rs 3.33 Cr taken from Bank in July, 2013 is payable in 24 monthly installments of Rs 0.28 Cr and carried interest rate of 11.70%.The loans are secured by first Charge on the unencumbered fixed assets including immovable property of the company. Further the Loan has been guaranteed by personal guarantee of two Promoter Directors of the Company.

2. The company has taken Vehicles Loan from various banks which carries interest rate @ 10% to 12% per annum. The loan are secured against hypothetication of Vehicles purchased. These Loans are taken for maximum three years and falls due for repayment in 2016-17, 2017-18 and 2018-19.

3. Loan from Others includes Loan from Life Insurance Corporation secured against Key Man Policy issued in the Name of Promoter Director, Mr Rajiv Kapoor. The loan carries interest @ 10.5% per annum.

4. Working Capital Loan ( Cash Credit Facility) from Bank is secured by First Charge on Hypothetication of Stocks and Receivables and personal Guarantee of two Directors of the Company . The Cash Credit is repayable on demand. The same are also collaterally secured by First Charge on the unencumbered Fixed Assets including immoveable property of the Company situated at Sohna (Haryana), Pune (Maharashtra) and Gautam Budh Nagar ( Uttar Pradesh) except the immovable property ( Industrial Land only) charged to another bank for Loan against Property . Further the Loan has been guaranteed by personal guarantee of two Promoter Directors of the Company.

5. Loan against Property taken from Bank is secured by First Charge( Equitable Mortgage ) of unencumbered Industrial Land measuring located at at Revenue Estate Village Kanwarsikka, Tehsil Nuh, Distt Mewat, Haryana. Further the Loan has been guaranteed by personal guarantee of one Promoter Director of the Company.

6. Contingent Liabilities not provided for : -

7. Letters of credit opened by Bank - Rs -- NIL-- (Previous Year Rs. 4,56,91,864 /-)

8. Bank guarantees given by the bank on behalf of Company - Rs. 1,40,00,000 /-(Previous year - Rs. 1,40,00,000 /-)

9. Export obligation under EPCG License- Rs 7,30,49.094/-(Previous Year Rs. 7,96,00.330/-)

Commitments: -

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 2,09,000/- (Previous year - Rs. NIL)

10. Unclaimed dividend of Rs. -NIL- (Previous Year Rs. 1,46,184/-) shown under Current Liabilities does not include any amount due and outstanding to be credited to "Investor Education and Protection Fund".

11. The Company had issued 10,000 3% Foreign Currency Convertible Bonds (FCCBs) of US$ 1000 each aggregating to US$ 10 Million (Rs.45.79 Crores at issue) on 07th Apr-2006. These Bonds have matured on 8th April, 2009 and are due for payment. As per negotiations with the FCCB Bondholders a settlement with the major bond holder representing 80% of the Bonds was made and paid during the F.Y. 2014-15.

12. The financial effects of changes in Foreign Exchange rates are as under:-

Net Gains of Rs 4,03,044/-( Previous Year Net Gains of Rs 13,22,242/-) for the year on account of exchange difference related to Exports of Goods, Raw Material and Spares purchased, has been included in "Operating Income ".

The company has changed the policy for accounting the exchange differences arising on long term foreign currency monetary items in accordance with the Companies (Accounting Standards) Amendment Rules on AS 11 notified by Government of India on March, 31, 2009. Accordingly, the net loss arising from the effect of changes in foreign currency rates on foreign currency loans relating to acquisition of depreciable capital assets amounting to Rs.74.80 Lacs has been added to the cost of Assets. The corresponding impact for previous year was Rs 275.92 Lacs towards the addition in the cost of Assets due to Net Loss arising from the effect of changes in foreign currency.

13. Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits”

Effective 1st April, 2007, the Company has adopted Accounting Standard 15 (Revised) "Employee Benefits" issued by ICAI. The Company has classified the various benefits provided to employee as under:-

14. Long term compensated absences are provided for based on actuarial valuation at the end of each financial year.

15. Provided Fund is a defined contribution scheme and the same is administered through contributions to Regional Provident Fund. Contribution to the said Fund paid/payable during the year is recognized in the Profit and Loss account

16. Gratuity liability is defined benefit obligation and is fully provided for on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on the Projected Unit Credit method.

17. Actuarial gains/losses are immediately recognized and are not deferred.

18. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:

The company has a system of obtaining periodical written confirmations from the suppliers to identify micro enterprises or small enterprises. Based on such identification company makes provision for unpaid statutory interest under Sec 16 of the Micro, Small and Medium Enterprises Development Act, 2006 and disclosures required by Sec 22 of the said Act.

19. Debtors and Creditors Balances are subject to confirmation/ reconciliations.

20. Investment made in Singur Plant for Tata Motors Ltd. (TML) for the small car project "Nano" has been treated as Capital Work in Progress. TML has abandoned the project in Singur due to various uncontrollable factors.

The company shall relocate the assets along with apportionment of pre-operative expenditure outstanding in accordance with the decision of the Board of Directors.

21. Figures of the previous year have been regrouped/recast wherever necessary so as to conform to current year''s classification/disclosure.

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Mar 31, 2015

1. The Company has one one class of equity shares having a par value of Rs 10 Per share. Each holder of equity share is entitled to one vote per share . The Company declares and pays dividend in Indian Rupees. The Dividend is proposed by Board of Directors and is subject to the approval of shareholders in the ensuring Annual General Meeting. In the event of liquidation of the company, the holder of equity share will be entitled to receive remaining assets of the company. The distribution shall be in proportion to the number of equity shares held by shareholder.

2. a) Corporate Loan-2 of Rs 57.00 Cr sanctioned from Bank during period March,2014 to 2015 is payable in 24 quarterly ballooning installments of Rs 0.64 Cr from June, 2015 to April,2021 and carries interest rate @ 13.25%. b) Term Loan-1 of Rs 20.00 Cr taken from Bank in July,2013 is payable in 24 monthly installments of Rs 0.39 Cr and carries interest rate @ 14.75% c) Demand Loan for Working Capital of Rs 10.00 Cr taken from Bank in July, 2013 is payablae in 24 monthly installments of Rs 0.28 Cr and carried interest rate of 13.25%.The loans are secured by first Charge on the unencumbered fixed assets including immovable poperty of the company. Further the Loan has been guaranteed by personal guarantee of two Promoter DIrectors of the Company.

3. The company has taken Vehicles Loan from various banks which carries interst rate @ 10% to 12% per annum. The loan are secured against hypothetication of Vehicles purchased. These Loans are taken for maximum three years and falls due for repayment in 2015-16, 2016-17 and 2017-18.

4. Loan from Others includes Loan from Liife Insurance Corporation secured against Key Man Policy issued in the Name of Promoter Director, Mr Rajiv Kapoor.The loan carries interest @ 10.50% per annum.

5. Working Capital Loan ( Cash Credit Facility) from Bank is secured by First Charge on Hypothetication of Stocks and Receivables and personal Guarantee of two Directors of the Company. The Cash Credit is repayable on demand. The same are also collaterally secured by First Charge on the unencumbered Fixed Assets inlcuding immoveable property of the Company situated at Sohna, (Haryana) Pune (Maharashtra) and Gautam Budh Nagar, (Uttar Pradesh) except the immovable property ( Industrial Land only) charged to another bank for Loan against Property Facility. Further the Loan has been guaranteed by personal guarantee of two Promoter DIrectors of the Company.

6. Loan against Property taken from Bank is secured by First Charge (Equitable Mortgage) of unencumbered Industrial Land measuring located at Revenue Estate Village Kanwarsikka, Tehsil Nuh, Distt Mewat, Haryana. Further the Loan has been guaranteed by personal guarantee of one Promoter Director of the Company.

7. Contingent Liabilities not provided for : -

a) Letters of credit opened by Bank - Rs 4,56,91,864 /- (Previous Year Rs. 3,46.92,507/-)

b) Bank guarantees given by the bank on behalf of Company - Rs. 1,40,00,000 /- (Previous year - Rs. 1,49,45,000/-)

c) Export obligation under EPCG License- Rs 7,96,00.330/-(Previous Year Rs. 8,32,81,420/-)

d) Guarantees given by the Company on behalf of loan of employees- Rs -NIL- (Previous Year Rs. 1,25,235/-)

Commitments: - Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs Nil (Previous year - Rs. 4,27,000/-)

8. Unclaimed dividend of Rs. 1,46,184/- (Previous Year Rs. 2,62,924/-) shown under Current Liabilities does not include any amount due and outstanding to be credited to "Investor Education and Protection Fund".

9. The Company had issued 10,000 3% Foreign Currency Convertible Bonds (FCCBs) of US$ 1000 each aggregating to US$ 10 Million (Rs 45.79 Crores at Issue) on 7th Apr-2006. As per negotiations with the FCCB Bondholders a settlement with the major bond holder representing 80% of the Bonds has been reached. The settled amount has been paid and profits arising out of the settlement have been booked as income and carrying cost of the assets have been adjusted appropriately in the current year.

10. The financial effects of changes in Foreign Exchange rates are as under:-

Net Gains of Rs 13,22,242/-( Previous Year Net Loss of Rs 7,89,350/-) for the year on account of exchange difference related to Exports of Goods, Raw Material and Spares purchased, has been included in "Operating Income ".

The company has changed the policy for accounting the exchange differences arising on long term foreign currency monetary items in accordance with the Companies (Accounting Standards) Amendment Rules on AS 11 notified by Government of India on March, 31, 2009. Accordingly, the net loss arising from the effect of changes in foreign currency rates on foreign currency loans relating to acquisition of depreciable capital assets amounting to Rs.275.92 lacs has been added to the cost of Assets. The corresponding impact for previous year was Rs 683.04 lacs towards the addition in the cost of Assets due to Net Loss arising from the effect of changes in foreign currency.

11. Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits"

Effective 1st April, 2007, the Company has adopted Accounting Standard 15 (Revised) "Employee Benefits" issued by ICAI. The Company has classified the various benefits provided to employee as under:-

i) Long term compensated absences are provided for based on actuarial valuation at the end of each financial year.

ii) Provided Fund is a defined contribution scheme and the same is administered through contributions to Regional Provident Fund. Contribution to the said Fund paid/payable during the year is recognized in the Profit and Loss account

iii) Gratuity liability is defined benefit obligation and is fully provided for on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on the Projected Unit Credit method.

iv) Actuarial gains/losses are immediately recognized and are not deferred.

12. Debtors and Creditors Balances are subject to confirmation/ reconciliations.

13. Investment made in Singur Plant for Tata Motors Ltd. (TML) for the small car project "Nano" has been treated as Capital Work in Progress. TML has abandoned the project in Singur due to various uncontrollable factors.

The company shall relocate the assets along with apportionment of pre-operative expenditure outstanding in accordance with the decision of the Board of Directors.

14. Figures of the previous year have been regrouped/recast wherever necessary so as to conform to current year's classification/disclosure.

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Mar 31, 2014

1. Share Capital

The Company has one class of equity shares having a par value of Rs 10 Per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The Dividend is proposed by Board of Directors and is subject to the approval of shareholders in the ensuring Annual General Meeting. In the event of liquidation of the company, the holder of equity share will be entitled to receive remaining assets of the company. The distribution shall be in proportion to the number of equity shares held by shareholder.

2. Long-Term Borrowings

2.1 a)Term Loan of Rs. 36.00 Cr. taken from Bank during period April 2007 to 2009 is payable in 84 monthly installments of Rs. 0.43 Cr. from October, 2010 and carries interest rate @ 13.50% to 16.25%.

b)Corporate Loan of Rs. 10.00 Cr. taken from bank in September 2012 is payablae in 24 monthly installments of Rs. 0.416 Cr. and carried interest rate of 16.25%.The loans are secured by first Charge on the unencumbered fixed assets including immovable poperty of the company. Further the Loan has been guaranteed by personal guarantee of two Promoter DIrectors of the Company.

2.2 Interest free Trade Tax Loan is secured by way of Second Charge on the Fixed Assess inlcuidng Plant & Machinery situated at A-1/2-2 and 2-3, Site B, Surajpur Industrial area, Distt Gautambudh Nagar, Uttar Pradesh. The Deferred Sales Tax due to be paid on 31-5-2014 - Rs. 1.15 Cr.

2.3 The company has taken Vehicles Loan from various banks during period 2012 to 2014. These carries interst rate @ 10% to 12% per annum. The loan are secured against hypothecation of Vehicles purchased. These Loans are taken for maximum three years and falls due for repayment in 2013-14, 2014-15, 2015-16.

2.4 Unsecred Loan from Others includes Loan from Liife Insurance Corporation secured against Key Man Policy issued in the Name of Promoter Director, Mr Rajiv Kapoor. The loan carries interest @ 9% per annum.

3. Short-term borrowings

3.1 Working Capital Loan (Cash Credit Facility) from Bank is secured by First Charge on Hypothecation of Stocks and Receivabeles and personal Guarantee of two Directors of the Company. The Cash Credit is repayable on demand. The same are also collaterally secured by First Charge on the unencumbered Fixed Assets inlcuding immoveable property of the Company situated at Sohna, Haryana, Pune Maharashtra and Gautam Budh Nagar, Uttar Pradesh except the immovable property (Industrial Land only) charged to another bank for Loan against Property Facility. Further the Loan has been guaranteed by personal guarantee of two Promoter DIrectors of the Company.

3.2 Loan against Property taken from Bank is secured by First Charge (Equitable Mortgage) of unencumbered Industrial Land measuring located at at Revenue Estate Village Kanwarsikka, Tehsil Nuh, Distt Mewat, Haryana. Further the Loan has been guaranteed by personal guarantee of one Promoter Director of the Company.

4. Contingent Liabilities and Commitments

Contingent Liabilities not provided for: -

a) Letters of credit opened by Bank - Rs. 3,46.92,507/- (Previous Year Rs.17,72,24,099/-)

b) Bank Guarantees given by the bank on behalf of Company - Rs. 1,49,45,000/- (Previous year-Rs. 1,97,60,000/-)

c) Export Obligation under EPCG License - Rs. 8,32,81.420/- (Previous Year Rs. 8,38,33.558/-)

d) Guarantees given by the Company on behalf of loan of employees - Rs. 1,25,235/- (Previous Year Rs. 1,57,074/-)

Commitments: -

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs 4,27,000/- (Previous year - Rs. 7,25,000/-)

5. Unclaimed dividend of Rs. 2,62,924/-(Previous Year Rs. 4,16,447.00) shown under Current Liabilities does not include any amount due and outstanding to be credited to "Investor Education and Protection Fund".

6. The Company has issued 10,000 3% Foreign Currency Convertible Bonds (FCCBs) of US$ 1000 each aggregating to US$ 10 Million (Rs.45.79 Crores at issue) on 07th Apr-2006.These Bonds have matured on 8th April, 2009 and are due for payment. In view of the expiry of contract with Bondholders and pending settlement with them, the interest on Bonds for the financial years 2009-10 2010-11, 2011-12, 2012-13 and 2013-14 has not been provided. However premium on redemption of Bonds for USD 861,000.00 equivalent to Rs.5,17,37,490/- has been accounted for and included in Other Payable under Other Current Liabilities

7. The financial effects of changes in Foreign Exchange rates are as under-

Net Loss of Rs. 7,89,350/-( Previous Year Net Gains Rs. 21,22,126/-) for the year on account of exchange difference related to Exports of Goods, Raw Material and Spares purchased, has been included in "Operating Income". The Exchange Fluctuation on Borrowing has been separately disclosed in Note No 26 on Finance Cost.

The company has changed the policy for accounting the exchange differences arising on long term foreign currency monetary items in accordance with the Companies (Accounting Standards) Amendment Rules on AS 11 notified by Government of India on March, 31, 2009. Accordingly, the net loss arising from the effect of changes in foreign currency rates on foreign currency loans relating to acquisition of depreciable capital assets amounting to Rs. 683.04 lacs has been added to the cost of Assets. The corresponding impact for previous year was Rs. 321.72 lacs towards the addition in the cost of Assets due to Net Loss arising from the effect of changes in foreign currency.

8. Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits"

Effective 1st April, 2007, the Company has adopted Accounting Standard 15 (Revised) "Employee Benefits" issued by ICAI. The Company has classified the various benefits provided to employee as under:-

i) Long term compensated absences are provided for based on actuarial valuation at the end of each financial year.

ii) Provided Fund is a defined contribution scheme and the same is administered through contributions to Regional Provident Fund. Contribution to the said Fund paid/payable during the year is recognized in the Profit and Loss account

iii) Gratuity liability is defined benefit obligation and is fully provided for on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on the Projected Unit Credit method.

iv) Actuarial gains/losses are immediately recognized and are not deferred.

The following table set out the status of the non funded gratuity plan and on fund loan term compensated absences and the amount recognized in Company financial statement as at 31st March, 2014.

9) Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:

The company has a system of obtaining periodical written confirmations from the suppliers to identify micro enterprises or small enterprises. Based on such identification company makes provision for unpaid statutory interest under Sec 16 of the Micro, Small and Medium Enterprises Development Act, 2006 and disclosures required by Sec 22 of the said Act.

10. Debtors and Creditors Balances are subject to confirmation/ reconciliations.

11. Investment made in Singur Plant for Tata Motors Ltd. (TML) for the small car project "Nano" has been treated as Capital Work in Progress. TML has abandoned the project in Singur due to various uncontrollable factors.

The company shall relocate the assets along with apportionment of pre-operative expenditure outstanding in accordance with the decision of the Board of Directors.

12. Figures of the previous year have been regrouped /recast wherever necessary so as to conform to current year''s classification/ disclosure.

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Mar 31, 2013

1.1 Interest free Trade Tax Loan is secured by way of Second Charge on the Fixed Assess inlcuidng Plant &Machinery situated at A-1/2-2 and 2-3, Site B, Surajpur Industrial area, Distt Gautambudh Nagar, Uttar Pradesh. The Deferred Sales Tax due to be paid are as below: on 31-5-2013-Rs 1.24Cr, on 31-5-2014 - Rs 1.15 Cr.

1.2 Term Loan of Rs 11.53 Cr from Non Banking Financial Institution was taken in January, 2010, payable in 48 monthly installments of Rs 0.24 Cr commencing from January, 2011 and carries interest @ 12.25% to 15.25%. The loan is secured by second charge on Plant & Machinery and other assets (Excluding Land & Building) at Plot No 13-14 Roj Ka Meo, Sohna, Gurgaon, Haryana.

1.3 The company has taken Vehicles Loan from various banks during period 2011 to 2013. These carries interst rate @ 10% to 12% per annum. The loan are secured against hypothetication of Vehicles purchased. These Loans are taken for maximum three years and falls due for repayment in 2013-14, 2014-15,2015-16.

2.1 Working Capital Loan (Cash Credit Facility) from Bank is secured by First Charge on Hypothetication of Stocks and Receivables and personal Guarantee of two Directors of the Company. The Cash Credit is repayable on demand. The same are also collaterally secured by First Charge on the unencumbered Fixed Assets including immoveable property of the Company situated at Sohna, Haryana, Pune Maharashtra and Gautam Budh Nagar, Uttar Pradesh except the immovable property (Industrial Land only) charged to another bank for Loan against Property Facility. Further the Loan has been guaranteed by personal guarantee of two Promoter DIrectors of the Company

2.2 Loan against Property taken from Bank is secured by First Charge( Equitable Mortgage ) of unencumbered Industrial Land measuring located at at Revenue Estate Village Kanwarsikka, Tehsil Nuh, Distt Mewat, Haryana. Further the Loan has been guaranteed by personal guarantee of the Company.

2.3 Unsecured Loan from Others are includes Inter Corporate Loan, repayable on Demand. These carries interest @ 15% to 16%per annum. It also includes Loan from Liife Insurance Corporation secured against KeyMan Policy issued in the Name of Promoter Director, Mr Rajiv Kapoor. The loan carries interest @ 10% per annum. Unsecurred Loan from Related Party includes loan from Director at Nil rate of interest.

3.1 Margain Money against letter of credit and Bank Guarantee is kept in the form of Bank Fixed Deposit (FDs) discharged in favour of Bank. It includes FDs, totalling Rs 17,35,488/- (Previous Year- Rs 3,71,94,000) the maturity of which is more than 12 months.

4) Contingent Liabilities not provided for : -

a) Letters of credit opened by Bank - Rs 17,72,24,099/- (Previous Year Rs. 18,91,70,353/-)

b) Bank guarantees given by the bank on behalf of Company - Rs. 1,97,60,000/- (Previous year - Rs. 1,29,85,000/-)

c) Export obligation under EPCG License- Rs 8,38,33.558/-(Previous Year Rs. 8,76,14,368/-)

d) Guarantees given by the Company on behalf of loan of employees- Rs.-1,57,074/- (Previous Year Rs. 2,37,431 /-)

5) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs 725000/- (Previous year - Rs. 13,78,66,050/-)

6) Unclaimed dividend of Rs. 4,16,447/- (Previous Year Rs. 5,98,297/-) shown under Current Liabilities does not include any amount due and outstanding to be credited to "Investor Education and Protection Fund".

7) The Company has issued 10,000 3% Foreign Currency Convertible Bonds (FCCBs) of US$ 1000 each aggregating to US$ 10 Million (Rs. 45.79 Crores at issue) on 7th April 2006. These Bonds have matured on 8th April, 2009 and are due for payment. In view of the expiry of contract with Bondholders and pending settlement with them, the interest on Bonds for the financial years 2009-10, 2010-11, 2011-12 and 2012-13 has not been provided. However premium on redemption of Bonds for USD 861,000 equivalent to Rs 4,68,38,400 has been accounted for and included in Other Payable under Other Current Liabilities

8) The financial effects of changes in Foreign Exchange rates are as under:- Net Gains of Rs 21,22,126/- (Previous Year Net Loss Rs.9,04,079/-) for the year on account of exchange difference related to Exports of Goods, Raw Material and Spares purchased, has been included in "Operating Income". The Exchange Fluctuation on Borrowing has been separately disclosed in Note No 26 on Finance Cost.

The company has changed the policy for accounting the exchange differences arising on long term foreign currency monetary items in accordance with the Companies (Accounting Standards) Amendment Rules on AS 11 notified by Government of India on March, 31, 2009. Accordingly, the net loss arising from the effect of changes in foreign currency rates on foreign currency loans relating to acquisition of depreciable capital assets amounting to Rs 321.72 lacs has been added to the cost of Assets. The corresponding impact for previous year was Rs 535.00 lacs towards the addition in the cost of Assets due to Net Loss arising from the effect of changes in foreign currency.

9) Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits"

Effective 1st April, 2007, the Company has adopted Accounting Standard 15 (Revised) "Employee Benefits" issued by ICAI. The Company has classified the various benefits provided to employee as under:-

i) Long term compensated absences are provided for based on actuarial valuation at the end of each financial year.

ii) Provided Fund is a defined contribution scheme and the same is administered through contributions to Regional Provident Fund. Contribution to the said Fund paid/payable during the year is recognized in the Profit and Loss account

iii) Gratuity liability is defined benefit obligation and is fully provided for on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on the Projected Unit Credit method.

iv) Actuarial gains/losses are immediately recognized and are not deferred.

10) Debtors and Creditors Balances are subject to confirmation/ reconciliations.

11) Figures of the previous year has been regrouped/recast wherever necessary so as to conform to current year''s classification. The Revised schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. 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

1.1 The Company has one class of equity shares having a par value of Rs 10 Per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The Dividend is proposed by Board of Directors and is subject to the approval of shareholders in the ensuring Annual General Meeting. In the event of liquidation of the company, the holder of equity share will be entitled to receive remaining assets of the company. The distribution shall be in proportion to the number of equity shares held by shareholder.

2.1 a) Corporate Loan of Rs 7.50 Cr taken from Bank during 2011 is payable in 35 monthly installments of Rs 0.214 Cr

from April, 2011 and carries interest rate @ 14.50% to 16.25%.

b) Term Loan of Rs 7.06 Cr taken from Bank during 2008 to 2010 is payable in 48 monthly installments of Rs 0.147 Cr from October, 2010 and carries interest rate @ 13.50% to 16. 25%.

c) Term Loan of Rs 36.00 Cr taken from Bank during the period April 2007 to 2009 is payable in 84 monthly installments of Rs 0.43 Cr from October, 2010 and carries interest rate @ 13.50% to 16. 25%.

The loans are secured by first Charge on the unencumbered fixed assets including immovable property of the company. Further the Loan has been guaranteed by personal guarantee of two Promoter Directors of the Company

2.2 Interest free Trade Tax Loan is secured by way of Second Charge on the Fixed Assets inlcuidng Plant & Machinery situated at A-1/2-2 and 2-3 , Site B , Surajpur Industrial Area, Distt Gautambudh Nagar, Uttar Pradesh. The Deferred Sales Tax due to be paid are as below: on 31-5-2012-Rs 0.82 Cr , on 31-5-2013-Rs 1.24Cr , on 31-5-2014 - Rs 1.15 Cr.

2.3 Term Loan of Rs 11.53 Cr from Non Banking Financial Institution was taken in January, 2010 , payable in 48 monthly installments of Rs 0.24 Cr commencing from January, 2011 and carries interest @ 12.25% to 15.25%.The loan is secured by second charge on Plant & Machinery and other assets( Excluding Land & Building) at Plot No 13-14 Roj Ka Meo, Sohna , Gurgaon , Haryana.

2.4 The company has taken Vehicles Loan from various banks during period 2010 to 2012 . These carries interst rate @ 10% to 12% per annum. The loan are secured against hypothetication of Vehicles purchased. These Loans are taken for maximum three years and falls due for repayment in 2012-13 , 2013-14, 2014-15.

3.1 Working Capital Loan ( Cash Credit Facility) from Bank is secured by First Charge on Hypothetication of Stocks and Receivables and personal Guarantee of two Directors of the Company . The Cash Credit is repayable on demand.The same are also collaterally secured by First Charge on the unencumbered Fixed Assets inlcuding immoveable property of the Company situated at Sohna, Haryana, Pune, Maharashtra and Gautam Budh Nagar, Uttar Pradesh except the immovable property ( Industrial Land only) charged to another bank for Loan against Property Facility. Further the Loan has been guaranteed by personal guarantee of two Promoter Directors of the Company

3.2 Loan against Property taken from Bank is secured by First Charge( Equitable Mortgage ) of unencumbered Industrial Land measuring located at at Revenue Estate Village Kanwarsikka, Tehsil Nuh, Distt Mewat, Haryana. Further the Loan has been guaranteed by personal guarantee of one Promoter Director the Company.

3.3 Unsecred Loan from Others are includes Inter Corporate Loan, repayable on Demand. These carries interest @ 16%per annum. It also includes Loan from Liife Insurance Corporation secured against KeyMan Policy issued in the Name of Promoter Director, Mr Rajiv Kapoor. The loan carries interest @ 10% per annum.

4.1 Margain Money against letter of credit and Bank Guarantee is kept in the form of Bank Fixed Deposit (FDs)discharged in favour of Bank . It includes Fixed Deposits, totalling Rs 3,71,94,000 ( Previous Year- Rs 145,00,000) the maturity of which is more than 12 months.

5) Contingent Liabilities not provided for : -

a) Letters of credit opened by Bank - Rs 18,91,70,353/- (Previous Year Rs. 26,46,43,277/-)

b) Bank guarantees given by the bank on behalf of Company - Rs. 1,29,85,000/- (Previous year - Rs. 5,85,000/-)

c) Export obligation under EPCG License- Rs 88,62,135/-(Previous Year Rs. 1,12,23,060/-)

d) Guarantees given by the Company on behalf of loan of employees- Rs.2,37,431 /- (Previous Year Rs. 5,02,123/-)

6 ) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs 7,25,000 /- (Previous year - Rs. 13,78,66,050/-)

7) Unclaimed dividend of Rs. 5,98,297/- (Previous Year Rs. 7,96,969/-) shown under Current Liabilities does not include any amount due and outstanding to be credited to "Investor Education and Protection Fund".

8) The Company has issued 10,000 3% Foreign Currency Convertible Bonds (FCCBs) of US$ 1000 each aggregating to US$ 10 Million (Rs.45.79 Crores at issue) on 07th Apr-2006. These Bonds have matured on 8th April, 2009 and are due for payment. In view of the expiry of contract with Bondholders and pending settlement with them, the interest on Bonds for the financial years 2009-10 2010-11 and 2011-12 has not been provided. However premium on redemption of Bonds for USD 861,000.00 equivalent to Rs 4,39,11,000.00 has been accounted for and included in Other Payable under Other Current Liabilities

9) The financial effects of changes in Foreign Exchange rates are as under-

Net Gains of Rs 904079/- ( Previous Year Net Loss Rs.9,46,209/- ) for the year on account of exchange difference related to Exports of Goods, Raw Material and Spares purchased, has been included in "Operating Income ". The Exchange Fluctuation on Borrowing has been separately disclosed in Note No 26 on Finance Cost.

The company has changed the policy for accounting the exchange differences arising on long term foreign currency monetary items in accordance with the Companies (Accounting Standards) Amendment Rules on AS 11 notified by Government of India on March, 31, 2009. Accordingly, the net loss arising from the effect of changes in foreign currency rates on foreign currency loans relating to acquisition of depreciable capital assets amounting to Rs 535.00 lacs has been added to the cost of Assets. The corresponding impact for previous year was Rs 43.86 lacs towards the reduction in the cost of Assets due to Net Gains arising from the effect of changes in foreign currency.

10) Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits"

Effective 1st April, 2007, the Company has adopted Accounting Standard 15 (Revised) "Employee Benefits" issued by ICAI. The Company has classified the various benefits provided to employee as under:-

i) Long term compensated absences are provided for based on actuarial valuation at the end of each financial year.

ii) Provided Fund is a defined contribution scheme and the same is administered through contributions to Regional Provident Fund. Contribution to the said Fund paid/payable during the year is recognized in the Profit and Loss account

iii) Gratuity liability is defined benefit obligation and is fully provided for on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on the Projected Unit Credit method.

iv) Actuarial gains/losses are immediately recognized and are not deferred.

11) Debtors and Creditors Balances are subject to confirmation/ reconciliations.

12) Investment made in Singur Plant for Tata Motors Ltd (TML) for the small car project "Nano" has been treated as Capital Work in Progress. TML has abandoned the project in Singur due to various uncontrollable factors. Further, TML has relocated this project to new location in Sanand in Gujarat.

The company shall relocate the assets along with apportionment of pre-operative expenditure outstanding in accordance with the decision of the Board of Directors.

13) Figures of the previous year have been regrouped/recast wherever necessary so as to conform to the requirement of Revised Schedule-VI.

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Mar 31, 2010

1) Contingent Liabilities not provided for : -

a) Letters of credit opened by Bank – Rs 8,89,12,349/- (Previous Year Rs. 12,80,04,416/-)

b) Bank guarantees given by the bank on behalf of Company - Rs. 61,05,000/- (Previous year -Rs. 26,55,000/-).

c) Guarantees given by the Company on behalf of Subsidiary –Rs 6,30,00,000/-(Previous Year -Rs. 6,30,00,000/-)

d) Export obligation under EPCG License- Rs 1,12,23,060/-(Previous Year Rs. 1,49,89,024/-)

e) Guarantees given by the Company on behalf of loan of employees- Rs.6,50,213/-(Previous Year Rs. 8,03,750/-)

2) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) - Rs.116,50,200/- (Previous year – Rs 328,06,964/-).

3) Unclaimed dividend of Rs. 9,64,845/- shown under Current Liabilities does not include any amount due and outstanding to be credited to "Investor Education and Protection Fund".

4) In the opinion of the management and to the best of their knowledge and belief, the valuation on realization of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance sheet and there has been no impairment to any asset.

5) The Company has issued 10,000 3% Foreign Currency Convertible Bonds (FCCBs) of US$ 1000 each aggregating to US$ 10 Million (Rs.45.79 Crores at issue) on 07th Apr-2006. These Bonds have matured on 8th April, 2009 and are due for payment. In view of the expiry of contract with Bondholders and pending settlement with them, the interest on Bond for the financial year 2008-09 has not been considered.

6) The financial effects of changes in Foreign Exchange rates are as under:

Net gain of Rs. 37,94,055/- for the year on account of exchange difference related to Exports of Goods, Raw Material and Spares purchased, has been included in “Miscellaneous Income” as per AS-11 revised.

The company has changed the policy for accounting the exchange differences arising on long term foreign currency monetary items in accordance with the Companies (Accounting Standards) Amendment Rules on AS 11 notified by Government of India on March, 31, 2009. Accordingly, the net gains arising from the effect of changes in foreign currency rates on foreign currency loans relating to acquisition of depreciable capital assets amounting to Rs 661.84 lacs has been reduced from the cost of assets. The corresponding impact for the previous year was Rs 1166.31 lacs towards the addition to the cost of fixed assets due to net loss arising from the effect of changes in foreign currency.

7) Related Party Disclosures

a) Related parties and their relationship

Subsidiaries

Rasandik Auto Components Private Limited

Key Management Personnel

Mr. Rajiv Kapoor, Managing Director

8) Singur Plant :

Investment made in Singur Plant for Tata Motors Ltd (TML) for the small car project “Nano” has been treated as Capital Work in Progress. TML has abandoned the project in Singur due to various uncontrollable factors. Further, TML has relocated this project to new location in Sanand in Gujarat.

The company shall relocate the assets along with apportionment of pre-operative expenditure outstanding in accordance with the decision of the Board of Directors.

9) Debtors and Creditors Balances are subject to confirmation/ reconciliations.

10) Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits"

Effective 1st April, 2007, the Company has adopted Accounting Standard 15 (Revised) "Employee Benefits"s issued by ICAI. The Company has classified the various benefits provided to employee as under:- i) Long term compensated absences are provided for based on actuarial valuation at the end of each financial year.

ii) Provided Fund is a defined contribution scheme and the same is administered through contributions to Regional Provident Fund. Contribution to the said Fund paid/payable during the year is recognized in the Profit and Loss account

iii) Gratuity liability is defined benefit obligation and is fully provided for on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on the Projected Unit Credit method.

iv) Actuarial gains/losses are immediately recognized and are not deferred.

11) Figures of the previous year have been regrouped/recast wherever necessary so as to conform to current years classification.