Notes to Accounts of Raunaq International Ltd.

Mar 31, 2025

2.12 PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past
event and it is probable that an outflow of resources will be required to settle the obligation and the amount can be
reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management''s best estimates of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value is
pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the liability
is not considered. However, a disclosure for contingent liabilities is made when there is a possible obligation
arising from past event, the existence of which will be confirmed only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within the control of the Company or a present obligation that arises
from past events where it is either not probable that an outflow of resources embodying economic benefits will be
required to settle or a reliable estimate of the amount cannot be made.

2.13 DIVIDEND

Dividend on equity shares is recorded as a liability on the date of approval by the shareholders and interim
dividend is recorded as a liability on the date of declaration by the Company''s Board of Directors.

2.14 CASH AND CASH EQUIVALENTS

For the purpose of the Statement of cash flows, cash and cash equivalents consists of cash on hand and at bank,
deposits held at call with banks, other short-term highly liquid investment with original maturities of three months
or less that are readily convertible to a known amount of cash and which are subject to an insignificant risk of
changes in value.

2.15 EMPLOYEE BENEFITS

a. Short term employee benefits are recognised as an expense in the statement of profit and loss of the year in
which the related services are rendered.

b. Compensated absence is accounted for using the project unit credit method, on the basis of actuarial
valuation carried out by third party actuaries at each Balance Sheet date. Actuarial gains and losses arising
from experience adjustments and changes in actuarial assumptions are charged or credited to profit and loss
in the period in which they arise.

c. Contribution payable by the Company to the concerned government authorities in respect of provident fund,
family pension fund and employee state insurance are defined contribution plans. The contributions are
recognised as an expense in the Statement of Profit and Loss during the period in which the employee
renders the related service. The Company does not have any further obligation in this respect, beyond such
contribution.

d. Certain employees are participated in a defined contribution plan of superannuation. The Company has no
further obligation to plan beyond its monthly contribution which is periodically contributed to a trust fund, the
corpus of which is invested with the Life Insurance Corporation of India.

e. The cost of providing gratuity, a defined benefit plan is determined using the Projected Unit Credit Method,
on the basis of actuarial valuation carried out by third party actuaries at each Balance Sheet date. Actuarial
gains and losses arising from experience adjustments and changes in actuarial assumptions are charged
or credited to other comprehensive income in the period in which they arise. Other costs are accounted in
Statement of profit and loss.

The Company operates a defined benefit plan for gratuity, which requires contributions to be made to a
separately administered fund. The fund is managed by trust, the corpus of which is invested with the Life
Insurance Corporation of India.

2.16 INCOME TAX

Income tax expenses comprises current and deferred income tax. Income tax expenses are recognised in
the Statement of Profit and Loss except that it relates to items recognised directly in equity, in those case it is
recognised in ‘Other Comprehensive Income''. Current Income tax for current and prior periods is recognised at
the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have
been enacted or substantively enacted by the balance sheet date.

Deferred income tax assets and liabilities are recognised for all temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax
benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted
or substantively enacted by the balance sheet date and are expected to apply to taxable income in the year in
which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates
on deferred income tax assets and liabilities is recognised as income or expense in the period that includes the
enactment or the substantive enactment date. A deferred income tax asset is recognised to the extent that it is
probable that future profit will be available against which the deductible temporary differences and tax losses
can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiary where it is
expected that earnings of the subsidiary will not be distributed in foreseeable future. The Company off sets current
tax assets and Current tax liabilities, where it has a legally enforceable right to set off the recognised amounts
and where it intents either to settle on a net basis, or to realize the assets and settle the liability simultaneously.
The income tax provision of the interim period is made based on the best estimate of the annual average tax rate
expected to be applicable for the full financial year.

2.17 FINANCIAL INSTRUMENTS

A financial instrument is any contract that give rise to a financial asset of one entity and financial liability or equity
instrument of another entity.

a. Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair
value through profit and loss, transaction costs that are attributable to the acquisition of the financial assets.

Subsequent measurement

Financial assets are subsequently measured at amortized cost or fair value through profit or loss depending on
its business model for managing those financial assets and the asset''s contractual cash flow characteristics.

Derecognition

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the
asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another entity.

Impairment of Financial Assets

The Company applies expected credit loss (ECL) model for measurement and recognition of impairment
loss on the financial assets. If credit risk has not increased significantly 12 months ECL is used to provide
the impairment loss. If credit risk has increased significantly lifetime ECL is used. If, in a subsequent period,
credit quality of the instrument improves such that there is no longer a significant increase in credit risk since
initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12 month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to receive (i.e. all cash shortfalls), discounted at the
original EIR (Effective Interest Rate Method).

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expense
in the statement of profit & loss.

b. Financial Liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit and
loss, loans and borrowings or payable.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

The financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.
Subsequent measurement

The measurement of financial liabilities depends on their classification described below:

Financial liabilities at fair value through profit and loss

Financial liabilities at fair value through profit or loss includes derivative financial instruments entered into by
the Company that are not designated as hedging instruments in hedge relationships. All changes in the fair
value of such liability are recognised in the statement of profit and loss.

Loans and borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized costs
using EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognized as
well as through the EIR amortization process.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

2.18 SEGMENT REPORTING

Operating systems are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker (CODM). The Managing Director of the Company has been identified as CODM and he is
responsible for allocating the resources, assess the financial performance and position of the Company and make
strategic decisions. Refer note 35 for segment information presented.

2.19 CRITICAL ESTIMATES AND JUDGEMENTS

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates,
judgements and assumptions which affect the reported amount of assets and liabilities as at the balance sheet
date, reported amount of revenues and expenses for the year and disclosure of contingent assets and liabilities as
at the balance sheet date.

The areas involving critical estimates or judgements are:

i Critical estimates

a. Measurement of defined benefit obligations - Note 42

b. Estimated useful life of property, plant & equipment and intangible assets - Note 2.5 and 2.6

c. Estimated fair value of financial instruments - Note 44

d. Recognition of revenue - Note 2.4

e. Provision for expected credit losses - Note 39

ii Significant Judgements

a. Designating financial asset/liability through fair value through profit or loss so as to reduce/eliminate
accounting mismatch.

b. Probability of an outflow of resources to settle an obligation resulting in recognition of provision.

The estimates, judgements and assumptions used in the financial statements are based upon Management''s
evaluation of relevant facts and circumstances and as at the date of financial statements. Accounting estimates
could differ from period to period and accordingly appropriate changes in estimates are made as the management
becomes aware of the changes. Actual results could differ from the estimates.

Note 37 : The Hon''ble ITAT, New Delhi, vide order dated 18 March, 2025, upheld the CIT(A)''s decision dated
21 March, 2022, confirming disallowance of employee PF contribution under Section 36(1)(va) of the Income Tax Act,
amounting to '' 46.20 lakhs.

Accordingly, the brought-forward loss has been reduced to '' 392.89 lakhs (from '' 439.09 lakhs). As there is no
additional tax liability arising from this adjustment, no provision for income tax is considered necessary in the books.

Note 38 : Capital Management

The Company''s capital management objective is to maximize the total shareholder''s return by optimizing cost of capital
through flexible capital structure that supports growth. Company ensures optimal credit risk profile to maintain/enhance
credit rating.

The Company determines the amount of capital requirement on the basis of annual operating plan and long-term
strategic plans. The funding requirements are met through internal accruals and long term/short term borrowings. The
Company monitors the capital structure on the basis of Net debts to equity ratio and maturity profile of the overall debt
portfolio of the Company.

For the purpose of Company''s capital management, equity includes paid up equity share capital and reserves and
surplus and Debt comprises of long term borrowings including current maturities of these borrowings.

The following table summarizes long term debt and equity of the Company:

The Company''s business activities are exposed to a variety of financial risk viz., market risk, credit risk and liquidity
risk. The Company''s focus is to foresee the unpredictability of financial risk and to address the issue to minimize the
potential adverse effects of its financial performance.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The
Company''s financial risk management policy is set by the Company''s management.

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. Such changes in the values of financial instruments may result from changes in the foreign currency
exchange rates, interest rates, credit, liquidity and other market changes.

Interest rate risk

The interest rate is primarily based on the Company''s credit rating and also the changes in the financial market.
Company''s performance influence rating and also factors which influence the determination of the interest rates by the
banks to minimize the interest continuously.

Credit risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. Credit risk arises primarily from financial assets such as trade receivables, loans, investments and other
financial assets.

At each reporting date, the Company measures loss allowance for certain class of financial assets based on historical
trend, industry practices and the business environment in which the Company operates.

Credit risk with respect to trade receivables is limited, due to the Company''s customer profiles are well balanced in
Government and Non-Government customers and diversified amongst in various geographies. All trade receivables
are reviewed and assessed on a quarterly basis.

Credit risk arising from investments and balances with banks is limited because the counter parties are banks and
recognised companies with high credit worthiness.

(i) Provision for expected credit losses:

The Company measures Expected Credit Loss (ECL) for financial instruments based on historical trend, industry
practices and the business environment in which the Company operates.

For financial assets, a credit loss is the difference between:

(a) the contractual cash flows that are due to an entity under the contract; and

(b) the cash flows that the entity expects to receive.

The Company recognizes in profit or loss, the amount of expected credit losses (or reversal) that is required to
adjust the loss allowance at the reporting date in accordance with Ind AS 109.

In determination of the allowances for credit losses on trade receivables, the Company has used a practical
expedience by computing the expected credit losses based on ageing matrix, which has taken into account
historical credit loss experience and adjusted for forward looking information.

The Company considers factors such as track record, size of the institution, market reputation and service standards
to select the banks with which balances and deposits are maintained. Investments of surplus funds are made only
with approved counterparties. The maximum exposure to credit risk for the components of the balance sheet is
'' 1,608.31 lakhs as at 31.03.2025 and '' 858.37 lakhs as at 31.03.2024, which is the carrying amount of cash and cash
equivalents, other bank balances, investments, trade receivables, loans and other financial assets.

Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses. The Company monitors its risk to a shortage of funds using a recurring liquidity
planning tool. This tool considers the maturity of both its financial investments and financial assets (i.e. trade receivables,
other financial assets) and projected cash flows from operations.

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of
working capital loans, letter of credit facility, bank loans and credit purchases.

The table below provides details regarding the contractual maturities of significant financial liabilities to the contractual
maturity date:

Note 40 : Corporate Social Responsibility

Gross amount required to be spent by the Company during the Financial Year 2024-25 is Nil as the Company has
incurred losses in the previous years.

Note 41 : Expenditure in Foreign Currency

During the financial year (2024-25 & 2023-24) the Company has not incurred any expenditure in foreign currency.
Note 42 : Employee Benefits
a) Defined Contribution Plans

The Company''s contribution to the provident fund and Superannuation funds are charged to the Profit and Loss
Statement.

During the year, the Company has recognised the following amounts in the statement of profit & loss:

eligible salary depending upon the tenure of service. Vesting occurs upon completion of five years of service.
Liabilities with regard to the Gratuity plan are determined by actuarial valuation as set out in Note 2.15, based upon
which, the Company makes contribution to the Gratuity fund.

c) Other Long Term Employee Benefit Plan

Leave Encashment Scheme [LES] (Unfunded)

The Company provides for accumulated leave benefit for eligible employees payable at the time of retirement/
resignation from service as per the policy of the Company, actual number of days outstanding based on last drawn
salary. The liabilities with regard to leave encashment scheme are determined by actuarial valuation as set out in
Note 2.15.

d) Risk Exposure

Aforesaid post employment defined benefit plans typically expose the Company to actuarial risks, most significant
of which are discount rate risk, salary escalation risk and demographic risk.

Discount Risk

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the
ultimate cost of providing the above benefit thereby increasing the value of liability.

Salary Escalation Risk

The present value of defined benefit plan liability is calculated by reference to the future salaries of plan participant.
An increase in the salary of plan participants will increase the plan liabilities.

Demographic Risk

In the valuation of liability certain demographic (mortality and attrition rates) assumptions are made. The Company
is exposed to this risk to the extent of actual experience eventually being worse compared to the assumption
thereby causing an increase in the plan liability.

During the year ended 31.03.2025, 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. There is a transaction/balance under Level 3.

Note 45 : Other Disclosure

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

2. The Company do not have any transactions with companies struck off.

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

4. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

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

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

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

(a) 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

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

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

8. The Company has not been declared wilful defaulter by any Banks/Financial Institutions.

Current Ratio: Current assets (numerator) include trade receivables, short term investments, cash and cash equivalents,
and other current assets. Current liabilities (denominator) incudes trade payables, lease liability, other financial liabilities,
provisions and statutory dues.

Debt-Equity Ratio: Total liabilities (numerator) includes current liabilities as defined above, lease liability, equity share
capital and other equity. Total Equity (Denominator) includes Equity share capital and other equity.

Debt Service Coverage Ratio: Earning for debts services (numerator) includes Net profit after taxes Non-cash
operating expenses like depreciation and other amortizations Interest other adjustments. Debt service (denominator)
includes lease payments.

Return on Equity Ratio: Net income (numerator) is net profit earned after tax. Average shareholder''s equity
(denominator) includes equity share capital and other Equity.

Inventory Turnover Ratio: Net Sales (numerator). Average Inventory (denominator).

Trade Receivables Turnover ratio: Net Sales (numerator). Average Trade Receivables (denominator).

Trade payables Turnover ratio: Net Credit Purchase (numerator). Average Trade Payables (denominator).

Net capital Turnover ratio: Numerator contains net revenue. Net working capital (denominator) calculated by
subtracting current liabilities from current assets.

Net Profit Ratio: Numerator contains net profit. Denominator contains net sales.

Return on Capital Employed: Numerator contains earning before interest and taxes. Capital employed (denominator)
calculated by subtracting current liabilities from total assets.

Return on Investment: Numerator contains change in investment. Denominator contains cost of investment.

Note 47 : Previous year''s figures are reclassified, where necessary, to conform to the current year''s classification.

For and on behalf of the Board of Directors

For B R Maheswari & Co LLP Surinder Paul Kanwar Dr. Sanjeev Kumar (DIN: 00364416)

Chartered Accountants Chairman and Managing Director Rajiv Chandra Rastogi (DIN: 00035460)

Hi-m’s R^stratbn ^N°. ^{(DIN: 00033524)} Naresh Kumar Verma (DIN: 07087356)

001035N/N500050

Preeti Goel (DIN: 09561869)

Directors

Akshay Maheshwari Neha Patwal

^Partner Chief Financial Officer and Company Secretary

Membership No. 504704 (PAN: ESRPP5275F)

Dated: 30 May, 2025

---

Mar 31, 2024

2.12 PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past
event and it is probable that an outflow of resources will be required to settle the obligation and the amount can be
reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management''s best estimates of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value is
pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the liability
is not considered. However, a disclosure for contingent liabilities is made when there is a possible obligation
arising from past event, the existence of which will be confirmed only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within the control of the Company or a present obligation that arises
from past events where it is either not probable that an outflow of resources embodying economic benefits will be
required to settle or a reliable estimate of the amount cannot be made.

2.13 DIVIDEND

Dividend on equity shares is recorded as a liability on the date of approval by the shareholders and interim
dividend is recorded as a liability on the date of declaration by the Company''s Board of Directors.

2.14 CASH AND CASH EQUIVALENTS

For the purpose of the Statement of cash flows, cash and cash equivalents consists of cash on hand and at bank,
deposits held at call with banks, other short-term highly liquid investment with original maturities of three months
or less that are readily convertible to a known amount of cash and which are subject to an insignificant risk of
changes in value.

2.15 EMPLOYEE BENEFITS

a. Short term employee benefits are recognised as an expense in the statement of profit and loss of the year in
which the related service are rendered.

b. Compensated absence is accounted for using the project unit credit method, on the basis of actuarial valuation
carried out by third party actuaries at each Balance Sheet date. Actuarial gains and losses arising from
experience adjustments and changes in actuarial assumptions are charged or credited to profit and loss in the
period in which they arise.

c. Contribution payable by the Company to the concerned government authorities in respect of provident fund,
family pension fund and employee state insurance are defined contribution plans. The contributions are
recognised as an expense in the Statement of Profit and Loss during the period in which the employee

renders the related service. The Company does not have any further obligation in this respect, beyond such
contribution.

d. Certain employees are participated in a defined contribution plan of superannuation. The Company has no
further obligation to plan beyond its monthly contribution which are periodically contributed to a trust fund, the
corpus of which is invested with the Life Insurance Corporation of India.

e. The cost of providing gratuity, a defined benefit plan is determined using the Projected Unit Credit Method,
on the basis of actuarial valuation carried out by third party actuaries at each Balance Sheet date. Actuarial
gains and losses arising from experience adjustments and changes in actuarial assumptions are charged
or credited to other comprehensive income in the period in which they arise. Other costs are accounted in
Statement of profit and loss.

The Company operates a defined benefit plan for gratuity, which requires contributions to be made to a
separately administered fund. The fund is managed by trust, the corpus of which is invested with the Life
Insurance Corporation of India.

2.16 INCOME TAX

Income tax expenses comprises current and deferred income tax. Income tax expenses are recognised in
the Statement of Profit and Loss except that it relates to items recognised directly in equity, in those case it is
recognised in ‘Other Comprehensive Income''. Current Income tax for current and prior periods is recognised at
the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have
been enacted or substantively enacted by the balance sheet date.

Deferred income tax assets and liabilities are recognised for all temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax
benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted
or substantively enacted by the balance sheet date and are expected to apply to taxable income in the year in
which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates
on deferred income tax assets and liabilities is recognised as income or expense in the period that includes the
enactment or the substantive enactment date. A deferred income tax asset is recognised to the extent that it is
probable that future profit will be available against which the deductible temporary differences and tax losses
can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiary where it is
expected that earnings of the subsidiary will not be distributed in foreseeable future. The Company off sets current
tax assets and Current tax liabilities, where it has a legally enforceable right to set off the recognised amounts
and where it indents either to settle on a net basis, or to realize the assets and settle the liability simultaneously.
The income tax provision of the interim period is made based on the best estimate of the annual average tax rate
expected to be applicable for the full financial year.

2.17 FINANCIAL INSTRUMENTS

A financial instrument is any contract that give rise to a financial asset of one entity and financial liability or equity
instrument of another entity.

a. Financial Assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair
value through profit and loss, transaction costs that are attributable to the acquisition of the financial assets.

Subsequent measurement

Financial assets are subsequently measured at amortized cost or fair value through profit or loss depending on
its business model for managing those financial assets and the asset''s contractual cash flow characteristics.

Derecognition

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the
asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another entity.

Impairment of Financial Assets

The Company applies expected credit loss (ECL) model for measurement and recognition of impairment
loss on the financial assets. If credit risk has not increased significantly 12 months eCl is used to provide
the impairment loss. If credit risk has increased significantly lifetime ECL is used. If, in a subsequent period,
credit quality of the instrument improves such that there is no longer a significant increase in credit risk since
initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12 month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to receive (i.e. all cash shortfalls), discounted at the
original EIR.

ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expenses
in the statement of profit & loss.

b. Financial Liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit and
loss, loans and borrowings or payable.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.

The financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.
Subsequent measurement

The measurement of financial liabilities depends on their classification described below:

Financial liabilities at fair value through profit and loss

Financial liabilities at fair value through profit or loss includes derivative financial instruments entered into by
the Company that are not designated as hedging instruments in hedge relationships. All change in the fair
value of such liability are recognised in the statement of profit and loss.

Loans and borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized costs
using EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognized as
well as through the EIR amortization process.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

2.18 SEGMENT REPORTING

Operating systems are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker (CODM). The Managing Director of the Company has been identified as CODM and he is
responsible for allocating the resources, assess the financial performance and position of the Company and make
strategic decision. Refer note 35 for segment information presented.

2.19 CRITICAL ESTIMATES AND JUDGEMENTS

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates,
judgement and assumptions which affect the reported amount of assets and liabilities as at the balance sheet
date, reported amount of revenue and expenses for the year and disclosure of contingent assets and liabilities as
at the balance sheet date.

The areas involving critical estimates or judgement are:

i Critical estimates

a. Measurement of defined benefit obligations - Note 41

b. Estimated useful life of intangible assets, property, plant and equipment - Note 2.5 and 2.6

c. Estimated fair value of financial instruments - Note 43

d. Recognition of revenue - Note 2.4

e. Provision for expected credit losses - Note 38

ii Significant Judgements

a. Designating financial asset/liability through fair value through profit or loss so as to reduce/eliminate
accounting mismatch.

b. Probability of an outflow of resources to settle an obligation resulting in recognition of provision.

The estimates, judgement and assumptions used in the financial statements are based upon
Management''s evaluation of relevant facts and circumstances and as at the date of financial statements.
Accounting estimates could differ from period to period and accordingly appropriate changes in estimates
are made as the management becomes aware of the changes. Actual results could differ from the
estimates.

Note 34 : Disclosure required pursuant to Ind AS-36 “Impairment of Assets”

The Company has carried out impairment test on its fixed assets as on the date of Balance Sheet and the Management
is of the opinion that there is no asset for which provision for impairment is required to be made as per Ind AS - 36
Impairment of Assets.

Note 35 : Operating Segment Information

The Company''s operations predominantly consist of construction activities. Hence there are no reportable segments
under Ind AS - 108 “ Operating Segment ” during the year under report, the Company has engaged in its business only
within India and not in any other country. The condition prevailing in India being uniform, no separate geographical
disclosures are considered necessary.

b. A claim of '' 3.78 crores filed by one of our sub-contractor, is pending disposal before Ld. Civil Court in respect
of which mangement, based on inputs from legal experts is confident that no liability is likely to devolve upon the
Company.

c. For the AY 2018-19, PCIT (Central), Delhi-1 under sec 263 has passed an order creating the disallowances of
''19.04 lakhs under sec 14A and 46.20 lakhs under sec 36(1)(va) against the original order of Ld. Assessing
officer under sec 143(3) and has directed the Jurisdictional Assessing Officer to recompute the demand. In the
Meantime, Company has filed an appeal before ITAT New Delhi on April 05, 2024. The matter is pending before
Honble ITAT, Delhi .

Note 37 : Capital Management

The Company''s capital management objective is to maximize the total shareholder''s return by optimizing cost of capital
through flexible capital structure that supports growth. Company ensures optimal credit risk profile to maintain/enhance
credit rating.

The Company determines the amount of capital requirement on the basis of annual operating plan and long-term
strategic plans. The funding requirements are met through internal accruals and long term/short term borrowings. The
Company monitors the capital structure on the basis of Net debts to equity ratio and maturity profile of the overall debt
portfolio of the Company.

For the purpose of Company''s capital management, equity includes paid up equity share capital and reserves and
surplus and Debt comprises of long term borrowings including current maturities of these borrowings.

Note 38 : Financial Risk Management Objectives and Policies

The Company''s business activities are exposed to a variety of financial risk viz., market risk, credit risk and liquidity
risk. The Company''s focus is to foresee the unpredictability of financial risk and to address the issue to minimize the
potential adverse effects of its financial performance.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The
Company''s financial risk management policy is set by the Company''s management.

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. Such changes in the values of financial instruments may result from changes in the foreign currency
exchange rates, interest rates, credit, liquidity and other market changes.

Interest rate risk

Out of total borrowings, large portion represents short term borrowings and the interest rate primarily based on the
Company''s credit rating and also the changes in the financial market. Company influence rating and also factors which
influence the determination of the interest rates by the banks to minimize the interest continuously monitoring over all
factors rate risks.

Credit risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. Credit risk arises primarily from financial assets such as trade receivables, loans, investments and other
financial assets.

At each reporting date, the Company measures loss allowance for certain class of financial assets based on historical
trend, industry practices and the business environment in which the Company operates.

Credit risk with respect to trade receivables are limited, due to the Company''s customer profiles are well balanced in
Government and Non-Government customers and diversified amongst in various geographies. All trade receivables
are reviewed and assessed on a quarterly basis.

Credit risk arising from investments and balances with banks is limited because the counter parties are banks and
recognised companies with high credit worthiness.

(i) Provision for expected credit losses:

The Company measures Expected Credit Loss (ECL) for financial instruments based on historical trend, industry
practices and the business environment in which the Company operates.

For financial assets, a credit loss is the difference between:

(a) the contractual cash flows that are due to an entity under the contract; and

(b) the cash flows that the entity expects to receive.

The Company recognizes in profit or loss, the amount of expected credit losses (or reversal) that is required to
adjust the loss allowance at the reporting date in accordance with Ind AS 109.

In determination of the allowances for credit losses on trade receivables, the Company has used a practical
expedience by computing the expected credit losses based on ageing matrix, which has taken into account
historical credit loss experience and adjusted for forward looking information.

Financial Instruments and Cash Deposits

The Company considers factors such as track record, size of the institution, market reputation and service standards to select
the banks with which balances and deposits are maintained. Investments of surplus funds are made only with approved
counterparties. The maximum exposure to credit risk for the components of the balance sheet is '' 858.37 lakhs as at
31.03.2024 and '' 974.59 lakhs as at 31.03.2023, which is the carrying amount of cash and cash equivalents, other bank
balances, investments, trade receivables, loans and other financial assets.

Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations

The Company provides for accumulated leave benefit for eligible employees payable at the time of retirement/
resignation from service as per the policy of the Company, actual number of days outstanding based on last drawn
salary. The liabilities with regard to leave encashment scheme are determined by actuarial valuation as set out in
Note 2.15.

d) Risk Exposure

Aforesaid post employment defined benefit plans typically expose the Company to actuarial risks, most significant
of which are discount rate risk, salary escalation risk and demographic risk.

Discount Risk

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the
ultimate cost of providing the above benefit thereby increasing the value of liability.

Salary Escalation Risk

The present value of defined benefit plan liability is calculated by reference to the future salaries of plan participant.
An increase in the salary of plan participants will increase the plan liabilities.

Demographic Risk

In the valuation of liability certain demographic (mortality and attrition rates) assumptions are made. The Company
is exposed to this risk to the extent of actual experience eventually being worse compared to the assumption
thereby causing an increase in the plan liability.

Note 44 : New Accounting Pronouncements

a) Amendment to Ind AS 103 ‘Business Combinations’ - change in definition of Business

The amendments clarify that while businesses usually have outputs, outputs are not required for an integrated set
of activities and assets to qualify as a business. The amendments also introduce an optional concentration test
that permits a simplified assessment of whether an acquired set of activities and assets is not a business. This
amendment does not have material impact on the Company.

b) Amendment to Ind AS 107 and Ind AS 109 - interest rate benchmark reforms

The amendments provide temporary exception from applying specific hedge accounting requirement and allows
continuation of hedge accounting when a hedging relationship is directly affected by interest rate benchmark
reform only. The amendment also provides for additional disclosure for hedging relationship that is subject to
this exception. The Company has floating rate debt linked to LIBOR which has been designated as cash flow
hedges. However there is no interest rate benchmark reform happened which affect the hedge relationship. This
amendment does not have material impact on the Company.

c) Amendment to Ind AS 116 ‘Leases’ - COVID-19 related rent concessions

The amendment provides a practical expedient which permits a lease not to assess whether a COVID-19 related
rent concession is a lease modification. The Company had not applied the practical expedient. This amendment
does not have material impact on the Company.

d) Amendment to Ind AS 1 and Ind AS 8 - definition of ‘material’

The amendment is not intend to change the underlying ‘materiality'' concept rather it provides broader guidance
and make it easy to understand the meaning of ‘material''. This amendment does not have material impact on the
Company.

e) Amendment to Ind AS 10 and Ind AS 37 - material non adjusting event

The amendment requires an entity to disclose the nature and estimate of financial effect of a material non¬
adjusting event after the reporting period. Ind AS 37 specifically requires such disclosure of a non-adjusting
material restructuring plan. This amendment does not have material impact on the Company.

Note 45 : Other Disclosure

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

2. The Company do not have any transactions with companies struck off.

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

4. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

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

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

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

(a) 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

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

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

Explanation to the ratios:

Current Ratio: Current assets (numerator) include trade receivables, short term investments, cash and cash
equivalents, and other current assets. Current liabilities (denominator) incudes trade payables, lease liability, other
financial liabilities, provisions and statutory dues.

Debt-Equity Ratio: Total liabilities (numerator) includes current liabilities as defined above, lease liability, equity share
capital and other equity. Total Equity (Denominator) includes Equity share capital and other equity.

Debt Service Coverage Ratio: Earning for debts services (numerator) includes Net profit after taxes Non- cash
operating expenses like depreciation and other amortizations Interest other adjustments. Debt service (denominator)
includes lease payments.

Return on Equity Ratio: Net income (numerator) is net profit earned after tax. Average shareholder''s equity
(denominator) includes equity share capital.

Inventory Turnover Ratio: Net Sales (numerator). Average Inventory (denominator).

Trade Receivables Turnover ratio: Net Sales (numerator). Average Trade Receivables (denominator).

Trade payables Turnover ratio: Net Credit Purchase (numerator). Average Trade Payables (denominator).

Net capital Turnover ratio: Numerator contains net revenue. Net working capital (denominator) calculated by
subtracting current liabilities from current assets.

Net Profit Ratio: Numerator contains net profit. Denominator contains net sales.

Return on Capital Employed: Numerator contains earning before interest and taxes. Capital employed (denominator)
calculated by subtracting current liabilities from total assets.

Return on Investment: Numerator contains change in investment. Denominator contains cost of investment.

Note 47: Previous year''s figures are reclassified, where necessary, to conform to the current year''s classification.

For and on behalf of the Board of Directors

For B R Maheswari & Co LLP S_urind_er P_aul K_anwar Dr. Sanjeev Kumar (DIN: 00364416)

Chartered Accountants Chairman and Managing Director Rajiv Chandra Rastogi (DIN: 00035460)

Firm''s Registration No. (DIN: 00033524) Naresh Kumar Verma (DIN: 07087356)

001035N/N500050 Preeti Goel (DIN: 09561869)

Directors

Akshay Maheshwari Neha Patwal

Partner Chief Financial Officer and Company Secretary

Membership No. 504704 (PAN: ESRPP5275F)

Date: 30 May, 2024

---

Mar 31, 2017

1. Employee Benefits:

Defined Contribution Plan:

The Company''s contributions to the Provident Fund and Superannuation Fund are charged to the Profit and Loss Statement. Defined Benefit Plan/Long Term Compensated Absences:

The Company''s liability towards gratuity (Funded) and compensated absences is determined on the basis of the year end actuarial valuation done by an independent actuary. The actuarial gains and losses determined by the actuary are recognized immediately in the Profit and Loss Statement as an income or expense.

2. Defined Benefit Plan:

A general description of the Employees Benefit Plans:

3. Gratuity (Funded)

The Company has an obligation towards gratuity, a funded defined benefits retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of the employment, of an amount calculated in accordance with the provisions of the Payment of Gratuity Act, 1972.

In response to the Company''s request made in March 2017 to the Suppliers for providing copy of the registration certificate, if registered under Micro, Small and Medium Enterprises Development Act 2006, none has sent Certificate of Registration with prescribed authority. Hence no such supplier is identified and no disclosure made for amount due to such supplier as at 31 March, 2017.

4. The Ministry of Corporate Affairs has notified Section 135 of the Act, on Corporate Social Responsibility with effect from 01 April, 2014. As per the provisions of the said Section, the amount of Rs. 15.13 Lacs (year ended 31 March 2016: Rs. 12.82 Lacs) was required to be spent on CSR activities by the Company during the year. The company has not spent any amount in this regard.

5. Disclosure on Specified Bank Note

Specified Bank Note (SBNs) and other denominations held and transacted during the period from 08 November, 2016 to 30 December, 2016, is given below as per MCA notification G.S.R 308(E) dated 30 March, 2017:

---

Mar 31, 2016

1. In response to the Company''s request made in March 2016 to the Suppliers for providing copy of the registration certificate, if registered under Micro, Small and Medium enterprises Development Act 2006, none has sent Certificate of Registration with prescribed authority. Based on these information there is no principal amount and the interest due thereon remaining unpaid as at the year ended on 31 March, 2016.

2. The Ministry of Corporate Affairs has notified Section 135 of the Act, on Corporate Social Responsibility with effect from 1 April, 2014. As per the provisions of the said Section, the amount of Rs, 12.82 lacs (year ended 31 March 2015: Rs, 16.34 Lacs) was required to be spent on CSR activities by the Company during the year. The company has not spent any amount in this regard.

3. Employee Benefits:

Defined Contribution Plan:

The Company''s contributions to the Provident Fund and Superannuation Fund are charged to the Profit and Loss Statement.

Defined Benefit Plan/Long Term Compensated Absences:

The Company''s liability towards gratuity (Funded) and compensated absences is determined on the basis of the year end actuarial valuation done by an independent actuary. The actuarial gains and losses determined by the actuary are recognized immediately in the Profit and Loss Statement as an income or expense.

4. (b) Defined Benefit Plan:

A general description of the Employees Benefit Plans:

(i) Gratuity (Funded)

The Company has an obligation towards gratuity, a funded defined benefits retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of the employment, of an amount calculated in accordance with the provisions of the Payment of Gratuity Act, 1972.

The expected rate of return on the plan asset (Gratuity-Funded) is based on the average long term rate of return expected on investments of funds during estimated term of obligation. Actual return on Plan Assets is Rs, 8.89 lacs.

The assumption of the future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion & other relevant factors.

The liability for leave encashment is accounted for on accrual basis on actuarial valuation at the year end.

Note: Figures in brackets showing negative amount. 27.7 Segment Reporting

Based on the guiding principles given in Accounting Standard on "Segment Reporting” (AS-17) issued by the Institute of Chartered Accountants of India, this Accounting Standard is not applicable to the company.

6. Related party transactions

a) Enterprise over which the company is able to exercise Control (Subsidiary):

- Xlerate Driveline India Ltd. (XDIL)

b) Enterprises over which key managerial personnel is able to exercise significant influence (Associates):

- Bharat Gears Limited (BGL)

- Vibrant Finance & Investment Pvt. Ltd. (VFIPL)

- Ultra Consultants Pvt. Ltd. (UCPL)

- Future Consultants Pvt. Ltd. (FCPL)

- Clip Lok Simpak (India) Pvt. Ltd. (CSIPL)

- Samreet Investment & Management Consultancy Pvt. Ltd. (SIMCPL)

- Gulab Merchandise Pvt. Ltd. (GMPL)

c) Key managerial Personnel:

- Mr. Surinder P. Kanwar (SPK) - CMD

- Mr. Sachit Kanwar (SK) - JMD

Note: Related parties are as identified by the company and relied upon by the Auditors.

---

Mar 31, 2015

As at As at Note Particulars 31 March, 2015 31 March, 2014 (Rsin Lacs) (Rsin Lacs)

1.1 Contingent liabilities:

1. Guarantees/Letter of credit given by the banks which are counter guaranteed by 8,826.65 8,556.90 the company and secured against fixed & current assets

2. Others where company had gone in to appeals before appropriate authorities:

- Sales Tax 2.11 -

- Income Tax 5.72 45.13

1.2 In response to the Company's request made in March 2015 to the Suppliers for providing copy of the registration certificate, if registered under Micro, Small and Medium enterprises Development Act 2006, none has sent Certificate of Registration with prescribed authority. Based on these information there is no principal amount and the interest due thereon remaining unpaid as at the year ended on 31 March, 2015.

1.3 The Ministry of Corporate Affairs has notified Section 135 of the Act, on Corporate Social Responsibility with effect from 1 April, 2014. As per the provisions of the said Section, the amount of Rs 16.34 lacs was required to be spent on CSR activities by the Company during the year, however, considering the financial performance of the company for the year, the Company has not spent the required funds on CSR activities.

1.4 Employee Benefits:

Defined contribution plan:

The Company's contributions to the Provident Fund and Superannuation Fund are charged to the profit and loss statement.

Defined benefit plan/ Long term compensated absences:

The Company's liability towards gratuity (Funded) and compensated absences is determined on the basis of the year end actuarial valuation done by an independent actuary. The actuarial gains and losses determined by the actuary are recognized immediately in the Profit and Loss Statement as an income or expense.

A general description of the Employees Benefit Plans:

(i) Gratuity (Funded)

The company has an obligation towards gratuity, a funded defined benefits retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of the employment, of an amount calculated in accordance with the provisions of the Payment of Gratuity Act, 1972.

Details of defined benefit plans - As per Actuarial Valuation as on 31 March 2015

The expected rate of return on the plan asset (Gratuity-Funded) is based on the average long term rate of return expected on investments of funds during estimated term of obligation. Actual return on plan assets is Rs 9.56 lacs.

The assumption of the future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion & other relevant factors.

1.5 Segment Reporting

Based on the guiding principles given in Accounting Standard on "Segment Reporting" (AS-17) issued by the Institute of Chartered Accountants of India, this Accounting Standard is not applicable to the company.

*Token remuneration of Rs 12.00 (Rupees Twelve) paid to Chairman & Managing Director.

(ii) No amounts have been written off/provided for or written back during the year in respect of amount receivable from or payable to the related parties.

---

Mar 31, 2014

B1. CONTINGENT LIABILITIES As at As at 31 March,2014 31 March, 2013 (Rs'' in Lacs ) ( Rs in Lacs )

(a) Guarantees/Letter ofCredit given by the banks which are counter guaranteed 8556.90 10769.28 by the Company and secured against Fixed & Current Assets

(b) Others where company had gone in to appeals before Appropriate Authorities:

- Sales Tax - 8.84

- Income Tax 45.13 5.72

(c ) Estimated amount ofContracts remaining to be executed on capital account and not - 101.69 provided for

B4. Employee Benefits:

(a) Defined Contribution Plan:

The Company''s contributions to the Provident Fund and Superannuation Fund are charged to the Profit and Loss Statement.

(b) Defined Benefit Plan/Long Term Compensated Absences:

The Company''s liability towards gratuity (Funded) and compensated absences is determined on the basis of the year end actuarial valuation done by an independent actuary. The actuarial gains and losses determined by the actuary are recognized immediately in the Profit and Loss Statement as an income or expense.

Defined Benefit Plans

A general description of the employees benefit plans: i) Gratuity (Funded)

The Company has an obligation towards gratuity, a funded defined benefits retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of the employment, of an amount calculated in accordance with the provisions of the Payment of Gratuity Act, 1972.

Details of defined benefit plans - As per Actuarial Valuation as on 31st March 2014.

VII The expected rate of return on the plan asset (Gratuity-Funded) is based on the average long term rate of return expected on investments of funds during estimated term of obligation. Actual return on Plan Assets is Rs.10.82 lacs.

VIII The assumption of the future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion & other relevant factors.

B5. Segment Reporting:

Based on the guiding principles given in Accounting Standard on "Segment Reporting" (AS-17) issued by the Institute of Chartered Accountants of India, this Accounting Standard is not applicable to the company.

B6. Related Party Disclosures:

(i) Related Parties are as under:

a) Enterprise over which the Company is able to exercise control (Subsidiary) :

- Xlerate Driveline India Limited (XDIL)

b) Enterprises over which key managerial Personnel is able to exercise significant influence (Associates) :

- Bharat Gears Limited (BGL)

- Vibrant Finance & Investment Pvt. Ltd. (VFIPL)

- Ultra Consultants Pvt. Ltd. (UCPL)

- Future Consultants Pvt. Ltd. (FCPL)

- ClipLok Simpak (India) Pvt. Ltd. (CSPL)

- Samreet Investment & Management Consultancy Pvt. Ltd. (SIMCPL)

- Gulab Merchandise Pvt. Ltd. (GMPL)

c) Key Managerial Personnel:

- Mr. Surinder P. Kanwar (SPK) - CMD

- Mr. Sachit Kanwar (SK) - JMD

Note: Related parties are as identified by the Company and relied upon by the Auditors.

(ii) Details of transactions with the related parties and their relatives during the year ended 31st March, 2014.

B9. In response to the company''s request made in March, 2014 to the suppliers for providing copy of the registration certificate, if registered under Micro, Small and Medium Enterprises Development Act, 2006, a few suppliers have sent certificate of registration with prescribed authority to the Company. Based on these information there is no principal amount and the interest due thereon remaining unpaid as at the year ended on 31st March, 2014.

B10. Figures in brackets are in respect of previous year.

NOTES:

(i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

(iii) Rights and restrictions attaching to equity shares :

Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Note:

(i) Balances with banks held as margin money include deposits amounting to Rs.743.52 Lacs (As at 31 March, 2013 Rs.909.70 Lacs) which have an original maturity of more than 12 months.

---

Mar 31, 2013

B1. CONTINGENT LIABILITIES As at As at 31 March 2013 31 March 2012 (Rs. in Lacs) (Rs. in Lacs)

(a) Guarantees/Letter of Credit given 10769.28 7217.19 by the banks which are counter guaranteed by the company and secured against Fixed & Current Assets

(b) Others where company had gone in to appeals before Appropriate Authorities:

* Sales Tax 8.84 13.91

* Income Tax 5.72 6.42

(c ) Estimated amount of Contracts 101.69 - remaining to be executed on capital account and not provided for

B2. Employee Benefits:

(a) Defined Contribution Plan:

The Company''s contributions to the provident fund and superannuation fund are charged to the profit and loss statement.

(b) Defined Benefit Plan / Long Term Compensated Absences:

The Company''s liability towards gratuity (Funded) and compensated absences is determined on the basis of the year end actuarial valuation done by an independent actuary. The actuarial gains and losses determined by the actuary are recognized immediately in the Profit and Loss Statement as an income or expense.

(c) Details of Employees Benefits as required by the Accounting Standards-15"Employee Benefits" are as follows:

Defined contribution plans :

Defined Benefit Plans

A general description of the employees benefit plans:

i) Gratuity (Funded)

The Company has an obligation towards gratuity, a funded defined benefits retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of the employment, of an amount calculated in accordance with the provisions of the Payment of Gratuity Act, 1972.

Details of Defined Benefit Plans - As per Actuarial Valuation as on 31st March 2013.

I The expected rate of return on the plan asset (Gratuity-Funded) is based on the average long term rate of return expected on investments of funds during estimated term of obligation. Actual return on plan assets is Rs. 9.74 lacs.

II The assumption of the future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion & other relevant factors.

B3. Segment Reporting:

Based on the guiding principles given in Accounting Standard on "Segment Reporting" (AS-17) issued by the Institute of Chartered Accountants of India, this Accounting Standard is not applicable to the Company.

B4. Related Party Disclosures:

(i) Related Parties are as under:

a) Enterprise over which the Company is able to exercise control (Subsidiary) :

* Xlerate Driveline India Limited (XDIL)

b) Enterprise over which Key Managerial Personnel is able to exercise significant influence (Associates):

* Bharat Gears Limited (BGL)

* Vibrant Finance & Investment Pvt. Ltd. (VFIPL)

* Ultra Consultants Pvt. Ltd. (UCPL)

* Future Consultants Pvt. Ltd. (FCPL)

* ClipLok Simpak (India) Pvt. Ltd. (CSPL)

* Samreet Investment & Management Consultancy Pvt. Ltd. (SIMCPL)

* Gulab Merchandise Pvt. Ltd. (GMPL)

c) Key Managerial Personnel:

* Mr. Surinder P. Kanwar (SPK) - CMD

* Mr. Sachit Kanwar (SK) - son of CMD

Note: Related parties are as identified by the Company and relied upon by the auditors.

(ii) Details of transactions with the related parties and their relatives during the year ended 31st March, 2013.

B5. In response to the company''s request made in March, 2013 to the suppliers for providing copy of the registration certificate, if registered under Micro, Small and Medium Enterprises Development Act, 2006, a few suppliers have sent certificate of registration with prescribed authority to the company. Based on these information there is no principal amount and the interest due thereon remaining unpaid as at the year ended on 31st March, 2013. sss B6. Figures in brackets are in respect of previous year.