ASK Automotive Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2026

(n) Provisions

A provision is recognised if, as a result of a past
event, the Company has a present obligation
that can be estimated reliably, and it is probable
that an outflow of economic benefits will be
required to settle the obligation. Provisions
are recognised at the best estimate of the
expenditure required to settle the present
obligation at the balance sheet date.

(o) Revenue recognition

Revenue is recognised to the extent that it is
probable that the economic benefits will flow
to the Company and the revenue can be reliably
measured, regardless of when the payment
is being made..

However, Goods and Services Tax (GST) is not
received by the Company on its own account.
Rather, it is tax collected on value added to
the commodity or supplies made by the seller
on behalf of the government. Accordingly, it is
excluded from revenue.

Sale of goods

Revenue from sale of goods is recognised based
on a 5-Step Methodology which is as follows:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance
obligation in contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the
performance obligations in the contract

Step 5: Recognise revenue when (or as) the
entity satisfies a performance obligation

Revenue from sale of goods is recognised at
the point in time when control of the goods
is transferred to the customer, generally
on delivery of the goods and there are no
unfulfilled obligations. Revenue is measured
based on the transaction price, which is the
consideration, adjusted for volume discounts,
turnover discounts, scheme discounts and cash
discounts, if any, as specified in the contract
with the customer. Revenue also excludes taxes
collected from customers.

Sale of services

The Company recognises revenue from sales
of services over time, because the customer
simultaneously receives and consumes the
benefits provided by the Company. Revenue
from services provided is recognised upon
rendering of the services, in accordance with the
agreed terms with the customers where ultimate
collection of the revenue is reasonably expected.

Other operating revenue

All export benefits and incentives under various
policies of Government of India are recognised on
accrual basis when no significant uncertainties
as to the amount of consideration that would be
derived and as to its ultimate collection exist.

Other income

Interest income is recognised on accrual basis
using the effective interest method.

Contract assets

Contract assets is right to consideration in
exchange for goods or services transferred to the
customer and performance obligation satisfied.
If the Company performs by transferring goods
or services to a customer before the customer
pays consideration or before payment is due,
a contract asset is recognised for the earned
consideration that is conditional, in the nature
of unbilled receivables. Upon completion of
the attached condition and acceptance by the
customer, the amounts recognised as contract
assets is reclassified to trade receivables
upon invoicing. A receivables represents the

Company''s right to an amount of consideration
that is unconditional. Contract assets are
subject to impairment assessment.

Contract liabilities

A contract liability is the obligation to transfer
goods or services to a customer for which
the Company has received consideration (or
an amount of consideration is due) from the
customer or has raised the invoice in advance.
If a customer pays consideration before the
Company transfers goods or services to the
customer, a contract liability is recognised
when the payment is made or the payment is
due (whichever is earlier). Contract liabilities
are recognised as revenue when the Company
performs under the contract (i.e., transfers
control of the related goods or services
to the customer).

(p) Government grants

Government grants related to property, plant
and equipment under Export Promotion Capital
Goods (EPCG) are included in the non-current
liabilities as deferred government grant and
are credited to Profit or loss on the basis of
fulfillment of export obligation and presented
within other income in accordance with the
primary conditions associated with purchase of
assets and related grants.

Government grants not related to assets
are recognised in the Standalone Statement
of Profit and Loss when the right to receive
benefits is established and the realisation is
reasonably certain.

(q) Leases

A lease is defined as ‘a contract, or part of a
contract, that conveys the right to use an asset
(the underlying asset) for a period of time in
exchange for consideration''.

Classification of leases

The Company enters into leasing arrangements
for various assets. The assessment of the lease
is based on several factors, including, but not
limited to, transfer of ownership of leased
asset at end of lease term, lessee''s option to
extend/purchase etc.

Recognition and initial measurement

At lease commencement date, the Company
recognises a right-of-use asset and a lease
liability on the balance sheet. The right-of-use

asset is measured at cost, which is made up of
the initial measurement of the lease liability,
any initial direct costs incurred by the Company,
an estimate of any costs to dismantle and
remove the asset at the end of the lease (if
any), and any lease payments made in advance
of the lease commencement date (net of any
incentives received).

Subsequent measurement

The Company depreciates the right-of-use
assets on a straight-line basis from the lease
commencement date to the earlier of the end
of the useful life of the right-of-use asset or
the end of the lease term. The Company also
assesses the right-of-use asset for impairment
when such indicators exist.

At lease commencement date, the Company
measures the lease liability at the present value
of the lease payments unpaid at that date,
discounted using the interest rate implicit in
the lease if that rate is readily available or the
Company''s incremental borrowing rate (IBR).
Lease payments included in the measurement of
the lease liability are made up of fixed payments
(including in substance fixed payments)
and variable payments based on an index or
rate. Subsequent to initial measurement, the
liability will be reduced for payments made and
increased for interest. It is re-measured to reflect
any reassessment or modification, or if there
are changes in in-substance fixed payments.
When the lease liability is re-measured, the
corresponding adjustment is reflected in the
right-of-use asset.

The Company has elected to account for short¬
term leases using the practical expedients.
Instead of recognising a right-of-use asset and
lease liability, the payments in relation to these
are recognised as an expense in standalone
statement of profit and loss on a straight-line
basis over the lease term.

Estimating the incremental borrowing rate

The Company cannot readily determine the
interest rate implicit in the lease, therefore, it
uses its IBR to measure lease liabilities. The IBR
is the rate of interest that the Company would
have to pay for last long-term funds raised.

(r) Income-tax

Tax expense recognised in the standalone
statement of profit and loss comprises the sum

of deferred tax and current tax not recognised in
other comprehensive income or directly in equity.

Current tax is determined as the tax payable
in respect of taxable income for the year and
is computed in accordance with relevant tax
regulations. Current tax are recognised as an
expense or income in the standalone statement
of profit and loss, except when they relate
to items credited or debited either in other
comprehensive income or directly in equity, in
which case the tax is also recognised in other
comprehensive income or directly in equity.

Deferred tax is recognised in respect of
temporary differences between carrying
amount of assets and liabilities for financial
reporting purposes and corresponding amount
used for taxation purposes. Deferred tax assets
on unrealised tax loss are recognised to the
extent that it is probable that the underlying
tax loss will be utilised against future taxable
income. This is assessed based on the Company''s
forecast of future operating results, adjusted for
significant non-taxable income and expenses
and specific limits on the use of any unused
tax loss. Unrecognised deferred tax assets are
re-assessed at each reporting date and are
recognised to the extent that it has become
probable that future taxable profits will allow
the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at
the reporting date. Deferred tax are recognised
as an expense or income in the consolidated
statement of profit and loss, except when they
relate to items credited or debited either in other
comprehensive income or directly in equity, in
which case the tax is also recognised in other
comprehensive income or directly in equity.

(s) Earnings per share

Basic earnings per share are calculated by
dividing the standalone net profit for the year
attributable to equity shareholders by the
weighted average number of equity shares
outstanding during the year.

For the purpose of calculating diluted earnings
per share, the standalone net profit or loss for
the year attributable to equity shareholders
and the weighted average number of shares
outstanding during the year are adjusted for the
effects of all dilutive potential equity shares
except where the results will be anti-dilutive

(t) Contingent liabilities and contingent assets

A contingent liability exists when there is a
possible but not probable obligation, or a
present obligation that may, but probably will
not, require an outflow of resources, or a present
obligation whose amount cannot be estimated
reliably. Contingent liabilities do not warrant
provisions, but are disclosed. Contingent assets
are neither recognised nor disclosed in the
standalone financial statements. However,
contingent assets are assessed continually
and if it is virtually certain that an inflow of
economic benefits will arise, the asset and
related income are recognised in the period in
which the change occurs.

(u) 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
standalone balance sheet.

(v) Borrowing cost

Borrowing costs directly attributable to
acquisition, construction or erection of
qualifying assets are capitalised. Capitalisation
of borrowing costs ceases when substantially all
the activities necessary to prepare the qualifying
assets for their intended use are complete.

Other borrowing costs are recognised as an
expense in the standalone statement of profit
and loss in the year in which they are incurred.

(w) Recent Accounting Pronouncements

(i) MCA has notified following amendments to
existing standards under Companies (Indian
Accounting Standards) Amendment Rules
which are effective from 1 April 2025:

(a) Lack of exchangeability -
Amendments to Ind AS 21

(b) Classification of Liabilities as
Current or Non-current and Non¬
current Liabilities with Covenants
-Amendments to Ind AS 1

(c) Supplier Finance Arrangements -
Amendments to Ind AS 7 and Ind AS 107

(d) International Tax Reform - Pillar Two
Model Rules Amendments to Ind AS 12

The Company has reviewed these
amendments and based on its evaluation
has determined that these amendments
do not have a material impact on its
standalone financial statements.

(ii) New standards or amendments not yet
effective

Classification of Liabilities as Current or
Non-current and Non-current Liabilities
with Covenants - Amendments to Ind AS 1-
The amendments clarify that lender waivers
obtained after the reporting date cannot
be considered for the purpose of classifying
liabilities as current or non current
and require retrospective application
in accordance with Ind AS 8. These
amendments are effective for reporting
periods beginning on or after April 1, 2026.

The Company has reviewed the new
pronouncements and based on its
evaluation has determined that these
amendments do not have a material impact
on its standalone financial statements.

The carrying value of goodwill amounting to INR 181.91 crore arose at the time of business purchase of erstwhile APK
Automotive and AK Auto Industries by the Company, which is tested for impairment annually at each balance sheet
date in accordance with the Company''s procedure for determining the recoverable amounts of the after market
business which is considered as a cash generating unit (CGU). The recoverable amount of CGU is based on fair
value. The fair value for Goodwill is determined based on discounted cash flow projections. These calculations uses
management assumptions and discounted pre tax cash flow projections based on financial budgets covering a 5
year period. Cash flow projection beyond 5 years time period are extrapolated using the estimated terminal growth
rate. Certain key assumptions considered by the management for impairment testing of CGU are stated below:

• Weighted average cost of capital: 31 March 2026: 16.20% (31 March 2025: 16.92%)

• Revenue growth rate: 31 March 2026: 10% (31 March 2025: 10%)

5.1 Refer to note 35 for details of investments in subsidiary and joint ventures

5.2 The Company performs impairment assessment annually of its investment in ASK Fras-Le Friction Private Limited to
ascertain the recoverable amount. The carrying amount of investment in the joint venture is higher than the proportionate
share of net worth of the joint venture, which has been identified as an impairment indicator by the management in
accordance with the principles of Ind AS 36, Impairment of Assets (‘Ind AS 36''). Accordingly, the management has
performed detailed impairment testing for such investment in joint venture by carrying out a valuation with the help of
an independent valuation specialist as a management''s expert using discounted cash flow (‘DCF'') method in order to
determine the recoverable value of investment in such joint venture. The recoverable amount is determined based on
fair value. These calculations uses management assumptions and discounted cash flow projections based on financial
budgets covering a 5 year period. Cash flow projection beyond 5 years time period are extrapolated using the estimated
terminal growth rate. Certain key assumptions considered by the management for impairment testing are stated below:

• Weighted average cost of capital: 31 March 2026: 20.80% (31 March 2025: 21.54%)

• Terminal growth rate: 31 March 2026: 4% (31 March 2025: 4%)

• The management believes that no reasonably possible change in any of the key assumptions used in the fair
value calculation would cause the carrying value of the investment to materially exceed its fair value."

5.3 The Company has invested an amount of INR 10.71 crore (INR Ten crore seventy one lakhs) in AISIN ASK India Private
Limited, joint venture of the Company during the previous financial year for subscription of its 10,710,000 (One
crore seven lakhs ten thousand ) equity shares of INR 10/- each.

5.4 The Company has invested an amount of INR 2.45 crore (INR Two crore forty five lakhs) in ASK GTD Control Cables
Private Limited, joint venture of the Company during the current financial year for subscription of its 2,450,000
(Twenty four lakhs fifty thousand ) equity shares of INR 10/- each.

5.5 The tenure of the compulsorily convertible debentures (‘CCD'') shall be twenty five (25) years (“maturity period”)

The number of equity shares to be issued to the CCD holders upon conversion shall be subject to terms and
conditions as mentioned below:-

Each CCD shall carry a coupon of 0.001% per annum and calculated on the face value of the CCD (‘CCD Interest'').
Coupon shall accrue from day to day and shall be computed on the basis of 365 (three hundred and sixty-five)
days and the actual number of days elapsed. All accrued coupon payments shall be payable by the Company at its

5 Investments (Contd..)

discretion at any time but in any case, on or prior to the expiry of the maturity period or the conversion of the CCD into
an equity share, whichever is earlier.

Conversion rights:

The CCDs shall be converted into equity shares as per the agreed conversion ratio i.e. 1:10 (a) at the option of the
Company or (b) upon expiry of maturity period.CCDs subscribed by the captive user and so converted into equity
shares shall also form part of the subscription securities under the transaction documents.

Conversion ratio:

Each CCD shall convert into ten (10) equity shares.

Loan given to ASK Fras-le Friction Private Limited (Joint Venture) is receivable in 4 equal yearly installments of INR
2.67 crore commencing from 20 January 2024 and carries an interest rate of 9% p.a receivable on quarterly intervals.

The Company has sanctioned an unsecured loan to ASK Automobiles Private Limited (subsidiary) for the purchase of
fixed assets, including land, construction of buildings, purchase of plant and machinery, and to meet working capital
requirements. The original loan was sanctioned for an amount not exceeding INR 100 crore dated 28 September
2021 and was later enhanced to INR 350 crore during an amendment to the loan agreement dated 30 March 2024
in the financial year 2023-24. The amended terms state that (1) the remaining loan amount can be disbursed in
one or more tranches until 31 March 2026 (2) interest rate from 1 April 2024 will be the Repo Rate plus 2.00%
per annum, applicable to all loans disbursed in various phases (3) loan will be repayable in sixty equal monthly
installments starting from 1 April 2026. (4) Interest accrued up to March 2026 will be payable in four equal quarterly
installments starting from 7 July 2026, with interest accrued after 1 April 2026 payable on the 7^th day after the
end of each quarter. During the current financial year, the Company further amended the loan agreement dated 1
February 2026, changing the repayment schedule to sixty equal monthly installments beginning 1 April 2027.

Additionally, during the current financial year, the Company sanctioned a new loan to ASK Automobiles Private
Limited pursuant to the agreement dated 30 July 2025 for an amount not exceeding INR 100 crore, to be disbursed
in one or more tranches up to March 2027. The interest rate on this loan will be the repo rate plus 2.50% per annum,
applicable on all amounts disbursed in phases. The loan will be repayable in sixty equal monthly installments starting
1 April 2027. Interest accrued up to March 2027 will be payable in four equal quarterly installments starting 7 July

2027, with interest accrued after 1 April 2027 payable quarterly on the 7^th day after each quarter''s end. Furthermore,
the Company sanctioned another new loan during the current financial year dated 1 February 2026 for an amount
not exceeding INR 50 crore, to be disbursed in tranches up to March 2027. The terms of this loan are similar, with the
interest rate being Repo Rate plus 2.50% per annum, repayable in sixty equal monthly installments starting 1 April

2028. Interest accrued up to March 2028 will be payable in four equal quarterly installments starting 7 July 2028,
and interest accrued after 1 April 2028 will be payable quarterly on the 7^th day after each quarter end.

Trade receivables are non-interest bearing and are generally on terms of 30 to 60 days.

Refer note 38(B)(I)(a) for details of the Company''s credit risk policy and exposure.

Refer note 39 for trade receivables outstanding from related party.

10.3 The Company has entered into arrangements with ICICI Bank Limited and The South Indian Bank Limited for the
factoring of trade receivables on a non-recourse basis. Pursuant to these arrangements, trade receivables amounting
to INR 60.51 crore (ICICI Bank Limited) and INR 39.96 crore (The South Indian Bank Limited), aggregating to INR
100.47 crore, have been derecognised during the current financial year in accordance with the principles of Ind AS
109 - Financial Instruments, as the Company has transferred substantially all the risks and rewards of ownership. In
the previous year ended 31 March 2025, trade receivables amounting to INR 73.86 crore pertained to arrangements
with ICICI Bank Limited were derecognised.

17 Provisions (Contd..)

17.1 Defined benefit plan and long term employment benefits

A General description:

Gratuity (Defined benefit plan):

The Company''s gratuity obligation is a defined benefit plan. The liability is determined based on an independent
actuarial valuation using the Projected Unit Credit Method as at the reporting date. Effective November 21,
2025, the gratuity scheme is governed by the provisions of the Code on Social Security, 2020, which has
replaced the Payment of Gratuity Act, 1972. Under the said Code, employees who have completed five years of
continuous service (one year in the case of fixed-term employees) are eligible for gratuity benefits. Based on
the review of existing wage structure and an independent legal opinion obtained, the Company has estimated
that there is no material impact on the standalone financial statements due to these New Labour Codes.
The benefit is computed at 15 days'' salary (based on last drawn salary) for each completed year of service.
Accordingly, the level of benefit provided depends on the employee''s length of service and salary at the time
of exit. The gratuity plan is unfunded, and the Company recognises the entire liability in its standalone financial
statements. Remeasurements, comprising actuarial gains and losses arising from experience adjustments and
changes in actuarial assumptions, are recognised immediately in Other Comprehensive Income (OCI) and are
not reclassified to standalone profit or loss in subsequent periods.

Compensated absence (other long term employee benefits):

The employees of the Company are entitled to leave as per the leave policy of the Company. Since the
Company have an unconditional right to defer settlement for any of the leave obligations beyond 12 months,
the Company treats accumulated leave expected to be carried forward beyond twelve months as long term
employee benefit for measurement purposes. Such long term compensated absences are provided for based on
actuarial valuation using the projected unit credit method at the year end. The expense related to compensated
absences are recognised in standalone statement of profit and loss as employee benefits expense.

These assumptions were developed by management with the assistance of independent actuary. Discount
factors are determined close to each year-end by reference to market yields of high quality corporate bonds
that are denominated in the currency in which the benefits will be paid and that have terms to maturity
approximating to the terms of the related obligation. Other assumptions are based on current actuarial
benchmarks and management''s historical experience.

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

The change in defined benefit obligation due to 100 bps increase/decrease in mortality rate, if all other
assumptions remain constant is negligible

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

There is no change in the method of valuation for the prior year.

33 Earning per share

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the average number of
equity shares and weighted average number of equity shares outstanding. The reconciliation of the number of shares
and weighted average number of shares for the purpose of basic and diluted earnings per share to the number of equity
shares and weighted average number of ordinary equity shares used in the calculation of basic and diluted earnings per
share is as follows:

34 Segment Reporting

The business activity of the Company falls within one operating segment viz. manufacturing of auto components
including advanced braking systems, aluminium lightweighting precision solutions and safety control cables primarily for
automobile industry and substantial sale of the products is within India. The Board of Directors, which has been identified
as being the Chief Operating Decision Maker (CODM), evaluates the Company''s performance, allocate resources based
on the analysis of the various performance indicators of the Company as a single unit. Therefore, there is one reportable
segment for the Company.

For information about geographical areas and revenue from major customers, refer note 44(A) and 24 respectively.

(ii) During the year ended 31 March 2026, Surety bond amounting INR 0.21 crore (31 March 2025: INR 8.72 crore)
executed by the company in favor of the President of India, under Export Promotion Capital Goods Scheme (EPCG)
for importing capital goods at concessional rate of custom duty. The amount of duties and taxes saved during the
year were INR 0.90 crore (31 March 2025: INR 3.35 crore) against which there was an unfulfilled export obligation
of INR 0.55 crore (31 March 2025: INR NIL).

37 Contingent liabilities

(i) Corporate guarantees given to banks on account of facilities granted by banks to subsidiary company.

The following is a description of claims and assertions where a potential loss is possible, but not probable. The
Company believes that none of the contingencies described below would have a material adverse effect on the
Company''s financial condition, results of operations or cash flows:

37 Contingent liabilities (Contd..)

(ii) Others

(a) The Company has received a demand under Goods and Services Tax Act,2017 of INR 1.18 crore on 9 August 2023
from Goods and Service Tax (GST) department out of which INR 0.04 crore has been paid by the company. The
Company has further deposited INR 0.06 crore towards disputed tax liability and has filed an appeal against
the demand order on 31 October 2023. During the financial year 2023-24, Company has submitted required
documents to the department on 18 September 2024. Several hearings have been conducted during the
current financial year, however, the matter remains pending resolution. The Company believes that the case
will be decided in their favour and hence no provision has been considered.

(b) The Company has received an order dated 23 May 2023 from the Assistant Director, Directorate of Enforcement,
in connection with an investigation under the Foreign Exchange Management Act, 1999, as amended, directing
the Company to submit certain information, including, inter alia, details of the Directors, the Company''s business,
the bank accounts of Company, imports and exports made by Company till date and certain information for
financial year 2016-2017, such as, all foreign investments made by Company, import/export advance payments
for which import and export had not been made by Company and imports/exports for which payments had not
been made/realized by Company, during the aforementioned year. The Company has submitted the required
information pursuant to the aforementioned order and no further communication has been received from the
Directorate of Enforcement in this matter till the adoption of these standalone financial statements. During
the year, the Company has not received any further communication in this matter. The Company believes that
this was information seeking by the authorities and is not likely to have any implication on the financial position
of the Company.

38 Financial instruments - Fair values measurement and risk management (Contd..)

(ii) Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped
into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant
inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data rely as little as possible on entity
specific estimates.

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

B Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk;

- Market risk - Foreign exchange;

- Market risk - Interest rate; and

- Commodity price risk

(I) Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the
Company''s risk management framework. The board of directors have authorised senior management to
establish the processes, who ensures that executive management controls risks through the mechanism of
properly defined framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company,
to set appropriate risks limits and controls, to monitor risks and adherence to limits. Risk management policies
are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company,
through its training and management standards and procedures, aims to maintain a disciplined and constructive
control environment in which all employees understand their roles and obligations.

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

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with
banks and other bank balances with high credit ratings assigned by domestic credit rating agencies. While
cash and cash equivalents are also subject to the impairment requirements of Ind AS 109, the identified
impairment loss was immaterial.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade
receivables are unsecured and are derived from revenue earned from customers primarily located in India.
The Company does monitor the economic environment in which it operates.

The Company considers the probability of default upon initial recognition of loan 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 loan 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 borrower''s ability to meet its obligations

• Actual or expected significant changes in the operating results of the borrower

Credit risk has always been managed by the Company through credit approvals, establishing credit limits
and continuously monitoring the creditworthiness of customers to which the Company grants credit terms
in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit
loss (ECL) model to assess the impairment loss or gain. The Company uses a provision matrix to compute
the expected credit loss allowance for trade receivables. The provision matrix takes into account available
external and internal credit risk factors such as Company''s historical experience for customers.

The credit risk for investment carried at amortised cost and other financial assets is considered
negligible. However, specific provision is made in case a particular receivable is considered to be
non -recoverable.

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

In accordance with Ind AS 109- Financial Instruments, the Company uses the expected credit loss
(“ECL”) model for measurement and recognition of impairment loss on its trade receivables or
any contractual right to receive cash or another financial asset that result from transactions that
are within the scope of Ind AS 115- Revenue from contracts with customers. For this purpose, the
Company uses a provision matrix to compute the expected credit loss amount for trade receivables.
The provision matrix takes into account external and internal credit risk factors and historical data of
credit losses from various customers. The default in collection as a percentage to total receivable is
low and overall expected credit loss is not material to these financial statements.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the
availability of funding through an adequate amount of committed credit facilities to meet obligations
when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining
availability under committed facilities. Management monitors rolling forecasts of the Company''s liquidity
position and cash and cash equivalents on the basis of expected cash flows. The Company takes into
account the liquidity of the market in which the entity operates. In addition, the Company''s liquidity
management policy involves projecting cash flows in major currencies and considering the level of liquid
assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external
regulatory requirements and maintaining debt financing plans.

(i) Maturities of financial liabilities

The tables below analyses the Company''s financial liabilities into relevant maturity groupings based
on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in
the table are the contractual undiscounted cash flows. Balances due within 12 months equal their
carrying balances as the impact of discounting is not significant.

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

(i) Currency risk

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Company is exposed to the effects of fluctuation in the
prevailing foreign currency exchange rates on its financial position and cash flows. Exposure arises
primarily due to exchange rate fluctuations between the functional currency and other currencies
from the Company''s operating, investing and financing activities.

Exposure to currency risk

The summary of quantitative data about the Company''s unhedged exposure to currency risk, as
expressed in INR :

38 Financial instruments - Fair values measurement and risk management (Contd..)

Sensitivity analysis

A reasonably possible strengthening (weakening) of the Indian Rupee against below currencies at
31 March 2026 would have affected the measurement of financial instruments denominated in
functional currency and affected equity and profit or loss by the amounts shown below. This analysis
is performed on foreign currency denominated monetary financial assets and financial liabilities
outstanding as at the year end. This analysis assumes that all other variables, in particular interest
rates, remain constant and ignores any impact of forecast sales and purchases.

* Holding all other variables constant

#Percentage for sensitivity analysis are considered based on change in foreign currency rates of respective year.

(ii) Interest rate risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company''s main interest rate risk arises from long-term
borrowings and short term borrowings with variable rates.

Interest rate risk exposure

The Company''s interest rate risk arises majorly from the term loans and short term borrowings
from banks and loans given by the Company carrying floating rate of interest. The exposure of the
Company''s borrowing to interest rate changes as reported to the management at the end of the
reporting year are as follows:

(d) Commodity price risk

Fluctuation in commodity price in market affects directly or indirectly the price of raw material and
components used by the Company. The Company sells its products mainly to Original Equipment
Manufacturers for whom it is manufacturing auto components. The Company does regular negotiation /
adjustment of prices on the basis of changes in commodity prices.

(II) Capital management

For the purpose of the Company''s capital management, capital includes issued equity share capital, securities
premium reserve and all other equity reserves attributable to the equity holders of the Company. The primary
objective of the management of the Company''s capital structure is to maintain an efficient mix of debt and
equity in order to achieve a low cost of capital, while taking into account the desirability of retaining financial
flexibility to pursue business opportunities and adequate access to liquidity to mitigate the effect of unforeseen
events on cash flows.

The Company manages its capital structure and makes adjustments to it in light of changes in economic
conditions. To maintain or adjust the capital structure, the Company may return capital to shareholders, raise
new debt or issue new shares.

The Company monitors capital on the basis of the debt to capital ratio, which is calculated as adjusted net
interest-bearing debts divided by total capital.

Remarks for variance (in case of variance more than 25%)

*During the current year, debt has been increased by INR 116.46 crore against increase in shareholders'' equity by INR 200.34 crore.

$During the current year, there is an increase in earnings available for debt service of INR 19.53 crore and decrease in repayments of debt and
interest by INR 37.52 crore.

(b) The Company has not invested or traded in crypto currency & virtual currency.

(c) 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:

(i) 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

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

(d) 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:

(i) 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

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

45 Other disclosures required as per schedule III- (Contd..)

(e) The borrowings obtained by the company from banks and financial institutions have been applied for the purposes
for which such loans were taken.

(f) The Company has not been declared willful defaulter by any bank or financial Institution or other lender.

(g) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the period 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.

(h) There has not been any proceedings initiated or pending against the Company for holding any benami property
under the Benami transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(i) Relationship with struck off companies

The Company has no transaction/ balance with companies struck off under section 248 of the Act to the best of the
knowledge of the Company''s management.

(j) The Company does not have any charges or satisfactions, which is yet to be registered with Registrar of companies,
beyond the statutory period prescribed under the Companies Act, 2013 and the rules made thereunder.

(k) The title deeds of all the immovable properties (other than properties where the company is the lessee and the
lease agreements are duly executed in favour of the lessee), as disclosed in note 3 to the financial statements, are
held in the name of the company except the one disclosed in note 3.4.

(l) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
the Companies (Restriction on number of layers) Rules 2017.

(m) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets
or both during the current or previous year.

46 The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1)
of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring
companies, which uses accounting software for maintaining its books of account, shall use only such accounting software
which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the
books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of audit trail (edit
log) facility and the same was enabled at the application level. During the year ended 31 March 2026, the Company has
not enabled the feature of recording audit trail (edit log) at the database level for the said accounting software to log any
direct data changes on account of recommendation in the accounting software administration guide which states that
enabling the same all the time consume storage space on the disk and can impact database performance significantly.

47 Certain amounts (currency value or percentages) shown in various tables and paragraphs included in these standalone
financial statements have been rounded off or truncated as deemed appropriate by the management of the Company.

48 Previous year figure regrouped / reclassified wherever necessary to confirm to current period''s classification pursuant
to amendment in Schedule III of the Act.

49 No significant subsequent events have occurred post the balance sheet date 31 March 2026 which may require an
adjustment to the standalone financial statements. Also refer note 14.

50 With effect from 21 November 2025, the Government of India has consolidated multiple existing labour legislations
into a unified framework comprising four Labour Codes collectively referred to as the ''New Labour Codes''. Based on the
review of existing wage structure and an independent legal opinion obtained, the Company has estimated that there is
no material impact on the standalone financial statements due to these New Labour Codes.

51 Authorisation of financial statements

The standalone financial statements for the year ended 31 March 2026 were approved by the board of directors
on 19 May 2026.

---

Mar 31, 2025

(n) Provisions

A provision is recognised if, as a result of a past
event, the Company has a present obligation
that can be estimated reliably, and it is probable
that an outflow of economic benefits will be
required to settle the obligation. Provisions
are recognised at the best estimate of the
expenditure required to settle the present
obligation at the balance sheet date.

(o) Revenue recognition

Revenue is recognised to the extent that it is
probable that the economic benefits will flow
to the Company and the revenue can be reliably
measured, regardless of when the payment
is being made..

However, Goods and Services Tax (GST) is not
received by the Company on its own account.
Rather, it is tax collected on value added to
the commodity or supplies made by the seller
on behalf of the government. Accordingly, it is
excluded from revenue.

Sale of goods

Revenue from sale of goods is recognised based
on a 5-Step Methodology which is as follows:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance

obligation in contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the
performance obligations in the contract

Step 5: Recognise revenue when (or as) the
entity satisfies a performance obligation

Revenue from sale of goods is recognised at
the point in time when control of the goods
is transferred to the customer, generally
on delivery of the goods and there are no
unfulfilled obligations. Revenue is measured
based on the transaction price, which is the
consideration, adjusted for volume discounts,
turnover discounts, scheme discounts and cash
discounts, if any, as specified in the contract
with the customer. Revenue also excludes
taxes collected from customers.

Sale of services

The Company recognises revenue from sales
of services over time, because the customer
simultaneously receives and consumes the
benefits provided by the Company. Revenue
from services provided is recognised upon
rendering of the services, in accordance
with the agreed terms with the customers
where ultimate collection of the revenue is
reasonably expected.

Other operating revenue

All export benefits and incentives under
various policies of Government of India
are recognised on accrual basis when no
significant uncertainties as to the amount of
consideration that would be derived and as to
its ultimate collection exist.

Other income

Interest income is recognised on accrual basis
using the effective interest method.

Contract assets

Contract assets is right to consideration in
exchange for goods or services transferred to the
customer and performance obligation satisfied.
If the Company performs by transferring goods
or services to a customer before the customer
pays consideration or before payment is due,
a contract asset is recognised for the earned
consideration that is conditional, in the nature
of unbilled receivables. Upon completion of
the attached condition and acceptance by the
customer, the amounts recognised as contract
assets is reclassified to trade receivables
upon invoicing. A receivables represents the
Company’s right to an amount of consideration
that is unconditional. Contract assets are
subject to impairment assessment.

Contract liabilities

A contract liability is the obligation to transfer
goods or services to a customer for which
the Company has received consideration (or
an amount of consideration is due) from the
customer or has raised the invoice in advance.
If a customer pays consideration before the
Company transfers goods or services to the
customer, a contract liability is recognised
when the payment is made or the payment
is due (whichever is earlier). Contract liabilities

are recognised as revenue when the Company
performs under the contract (i.e., transfers
control of the related goods or services
to the customer).

(p) Government grants

Government grants related to property, plant
and equipment under Export Promotion
Capital Goods (EPCG) are included in the non¬
current liabilities as deferred government grant
and are credited to Profit or loss on the basis of
fulfillment of export obligation and presented
within other income in accordance with the
primary conditions associated with purchase of
assets and related grants.

Government grants not related to assets are
recognised in the Standalone Statement
of Profit and Loss when the right to receive
benefits is established and the realisation is
reasonably certain.

(q) Leases

A lease is defined as ‘a contract, or part of a
contract, that conveys the right to use an asset
(the underlying asset) for a period of time in
exchange for consideration’.

Classification of leases

The Company enters into leasing arrangements
for various assets. The assessment of the lease
is based on several factors, including, but not
limited to, transfer of ownership of leased
asset at end of lease term, lessee’s option to
extend/purchase etc.

Recognition and initial measurement

At lease commencement date, the Company
recognises a right-of-use asset and a lease
liability on the balance sheet. The right-of-
use asset is measured at cost, which is made
up of the initial measurement of the lease
liability, any initial direct costs incurred by the
Company, an estimate of any costs to dismantle
and remove the asset at the end of the lease (if
any), and any lease payments made in advance
of the lease commencement date (net of any
incentives received).

Subsequent measurement

The Company depreciates the right-of-use
assets on a straight-line basis from the lease
commencement date to the earlier of the end
of the useful life of the right-of-use asset or

the end of the lease term. The Company also
assesses the right-of-use asset for impairment
when such indicators exist.

At lease commencement date, the Company
measures the lease liability at the present value
of the lease payments unpaid at that date,
discounted using the interest rate implicit
in the lease if that rate is readily available
or the Company’s incremental borrowing
rate (IBR). Lease payments included in the
measurement of the lease liability are made
up of fixed payments (including in substance
fixed payments) and variable payments based
on an index or rate. Subsequent to initial
measurement, the liability will be reduced for
payments made and increased for interest.
It is re-measured to reflect any reassessment
or modification, or if there are changes in in¬
substance fixed payments. When the lease
liability is re-measured, the corresponding
adjustment is reflected in the right-of-use asset.

The Company has elected to account for short¬
term leases using the practical expedients.
Instead of recognising a right-of-use asset and
lease liability, the payments in relation to these
are recognised as an expense in standalone
statement of profit and loss on a straight-line
basis over the lease term.

Estimating the incremental borrowing rate

The Company cannot readily determine the
interest rate implicit in the lease, therefore, it
uses its IBR to measure lease liabilities. The IBR
is the rate of interest that the Company would
have to pay for last long-term funds raised.

(r) Income-tax

Tax expense recognised in the standalone
statement of profit and loss comprises the
sum of deferred tax and current tax not
recognised in other comprehensive income or
directly in equity.

Current tax is determined as the tax payable
in respect of taxable income for the year and
is computed in accordance with relevant tax
regulations. Current tax are recognised as an
expense or income in the standalone statement
of profit and loss, except when they relate
to items credited or debited either in other
comprehensive income or directly in equity, in
which case the tax is also recognised in other
comprehensive income or directly in equity.

Deferred tax is recognised in respect of
temporary differences between carrying
amount of assets and liabilities for financial
reporting purposes and corresponding amount
used for taxation purposes. Deferred tax assets
on unrealised tax loss are recognised to the
extent that it is probable that the underlying
tax loss will be utilised against future taxable
income. This is assessed based on the
Company’s forecast of future operating results,
adjusted for significant non-taxable income
and expenses and specific limits on the use of
any unused tax loss. Unrecognised deferred tax
assets are re-assessed at each reporting date
and are recognised to the extent that it has
become probable that future taxable profits
will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply
in the year when the asset is realised or the
liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively
enacted at the reporting date. Deferred tax
are recognised as an expense or income in
the consolidated statement of profit and loss,
except when they relate to items credited or
debited either in other comprehensive income
or directly in equity, in which case the tax is also
recognised in other comprehensive income or
directly in equity.

(s) Earnings per share

Basic earnings per share are calculated by
dividing the standalone net profit for the year
attributable to equity shareholders by the
weighted average number of equity shares
outstanding during the year.

For the purpose of calculating diluted earnings
per share, the standalone net profit or loss for
the year attributable to equity shareholders
and the weighted average number of shares
outstanding during the year are adjusted for
the effects of all dilutive potential equity shares
except where the results will be anti-dilutive

(t) Contingent liabilities and contingent assets

A contingent liability exists when there is a
possible but not probable obligation, or a
present obligation that may, but probably will
not, require an outflow of resources, or a present
obligation whose amount cannot be estimated
reliably. Contingent liabilities do not warrant

provisions, but are disclosed. Contingent assets
are neither recognised nor disclosed in the
standalone financial statements. However,
contingent assets are assessed continually
and if it is virtually certain that an inflow of
economic benefits will arise, the asset and
related income are recognised in the period in
which the change occurs.

(u) Cash and cash equivalents

For the purpose ofpresentation 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 standalone balance sheet.

(v) Borrowing cost

Borrowing costs directly attributable to
acquisition, construction or erection of
qualifying assets are capitalised. Capitalisation
of borrowing costs ceases when substantially all
the activities necessary to prepare the qualifying
assets for their intended use are complete.

Other borrowing costs are recognised as an
expense in the standalone statement of profit
and loss in the year in which they are incurred.

(w) Recent Accounting Pronouncements

(i) The Ministry of Corporate Affairs (‘MCA’)
vide its notifications dated 12 August
2024 and 09 September 2024 has issued
Companies (India AccountingNew
Standards) Amendment Rules, 2024 and
Companies (India Accounting Standards)
Second Amendment Rules, 2024, which
introduced amendments in certain Indian
Accounting Standards that are effective
from 1 April 2024:

(a) Ind AS 117 - Insurance contracts -
MCA/Amendments notified Ind AS
117, a comprehensive standard that
prescribe, recognition, measurement
and disclosure requirements, to avoid
diversities in practice for accounting

insurance contracts and it applies to
all companies i.e., to all “insurance
contracts” regardless of the issuer.
However, Ind AS 117 is not applicable
to the entities which are insurance
companies registered with IRDAI.

(b) Ind AS 116- The amendments require
an entity to recognise lease liability
including variable lease payments
which are not linked to index or a rate
in a way it does not result into gain on
right-of-use asset it retains.

The Company has reviewed the new
pronouncements and based on its
evaluation has determined that these
amendments do not have a significant
impact on the financial statements.

(ii) Standards issued but not yet effective:

The Ministry of Corporate Affairs notifies
new standards or amendments to the
existing standards. There is amendment
to Ind AS 21 “Effects of Changes in Foreign
Exchange Rates” such amendments would
have been applicable from 01 April 2025.

The Effects of Changes in Foreign Exchange
Rates specify how an entity should assess
whether a currency is exchangeable and
how it should determine a spot exchange
rate when exchangeability is lacking.
The amendments also require disclosure
of information that enables users of its
financial statements to understand how
the currency not being exchangeable into
the other currency affects, or is expected to
affect, the entity’s financial performance,
financial position and cash flows.

The amendments are effective for the
period on or after 1 April 2025. When
applying the amendments, an entity
cannot restate comparative information.

The Company has reviewed the new
pronouncement and based on its
evaluation has determined that these
amendments do not have a significant
impact on the Company’s Standalone
Financial Statements.

4. Right of use assets, Goodwill & Other intangible assets (Contd..)

use. The value in use for Goodwill is determined based on discounted cash flow projections. These calculations uses
management assumptions and discounted pre tax cash flow projections based on financial budgets covering a 5
year period. Cash flow projection beyond 5 years time period are extrapolated using the estimated terminal growth
rate. Certain key assumptions considered by the management for impairment testing of CGU are stated below:

• Weighted average cost of capital: 31 March 2025: 16.92% (31 March 2024: 16.34%)

• Revenue growth rate: 31 March 2025: 10% (31 March 2024: 12%)

• Terminal growth rate: 31 March 2025: 4% (31 March 2024: 4%)

The management believes that no reasonably possible change in any of the key assumptions used in the value in
use calculation would cause the carrying value of the CGU to materially exceed its value in use.

5. Investments (Contd..)

5.1 Refer to note 35 for details of investments in subsidiary and joint ventures.

5.2 The Company has invested an amount of INR 10.71 crore (INR Ten crores seventy one lakhs) in AISIN ASK India
Private Limited, Joint Venture of the Company during the current financial year for subscription of its 1,07,10,000
(One Crore Seven Lakhs Ten Thousand ) equity shares of INR 10/- each.

5.3 The Company has performed an impairment assessment annually of its investment in ASK Fras-Le Friction
Private Limited at the balance sheet date to ascertain the recoverable amount and has not found any indicator
of impairment as at 31 March 2025 and 31 March 2024. The recoverable amount is determined based on value in
use calculation. These calculations uses management assumptions and discounted pre tax cash flow projections
based on financial budgets covering a 5 year period. Cash flow projection beyond 5 years time period are
extrapolated using the estimated terminal growth rate. Certain key assumptions considered by the management
for impairment testing are stated below:

• Weighted average cost of capital: 31 March 2025: 21.54% (31 March 2024: 20.09%)

• Terminal growth rate: 31 March 2025: 4% (31 March 2024: 4%)

The management believes that no reasonably possible change in any of the key assumptions used in the value in
use calculation would cause the carrying value of the investment to materially exceed its value in use.

17. Provisions (Contd..)

17.1 Defined benefit plan and long term employment benefits

A General description:

Gratuity (Defined benefit plan):

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on
projected unit credit method made at the end of each year. The gratuity plan is governed by the Payment
of Gratuity Act, 1972. Every employee who has completed five years or more of service gets a gratuity on
departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is unfunded.
Actuarial gains or losses are recognised in other comprehensive income.

Compensated absence (other long term employee benefits):

The employees of the Company are entitled to leave as per the leave policy of the Company. Since the Company
have an unconditional right to defer settlement for any of the leave obligations beyond 12 months, the Company
treats accumulated leave expected to be carried forward beyond twelve months as long term employee benefit
for measurement purposes. Such long term compensated absences are provided for based on actuarial
valuation using the projected unit credit method at the year end. The expense related to compensated
absences are recognised in standalone statement of profit and loss as employee benefits expense.

(ii) Others

(a) The Company has received a demand under Goods and Services Tax Act,2017 of INR 1.18 Crore on 9 August
2023 from Goods and Service Tax (GST) department out of which INR 0.04 Crore has been paid by the
Company. The Company has further deposited INR 0.06 Crore towards disputed tax liability and has filed
an appeal against the demand order on 31 October 2023. During the year, Company has submitted required
documents to the department on 18 September 2024. The Company believes that the case will be decided
in their favour and hence no provision has been considered.

(b) The Company has received an order dated 23 May 2023 from the Assistant Director, Directorate of
Enforcement, in connection with an investigation under the Foreign Exchange Management Act, 1999, as
amended, directing the Company to submit certain information, including, inter alia, details of the Directors,
the Company’s business, the bank accounts of Company, imports and exports made by Company till date
and certain information for financial year 2016-2017, such as, all foreign investments made by Company,
import/export advance payments for which import and export had not been made by Company and imports/
exports for which payments had not been made/realized by Company, during the aforementioned year. The
Company has submitted the required information pursuant to the aforementioned order and no further
communication has been recieved from the Directorate of Enforcement in this matter till the adoption of
this financial information. The Company believes that this was information seeking by the authorities and is
not likely to have any implication on the financial position of the Company.

38. Financial instruments - Fair values measurement and risk management (Conts..)

B Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk;

- Market risk - Foreign exchange;

- Market risk - Interest rate; and

- Commodity price risk

(I) Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the
Company’s risk management framework. The board of directors have authorised senior management to
establish the processes, who ensures that executive management controls risks through the mechanism of
properly defined framework.

The Company’s risk management policies are established to identify and analyse the risks faced by
the Company, to set appropriate risks limits and controls, to monitor risks and adherence to limits. Risk
management policies are reviewed regularly to reflect changes in market conditions and the Company’s
activities. The Company, through its training and management standards and procedures, aims to
maintain a disciplined and constructive control environment in which all employees understand their roles
and obligations.

(a) Credit risk

The maximum exposure to credit risks is represented by the total carrying amount of these financial
assets in the balance sheet are as follows:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables
from customers, loans.

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with
banks and other bank balances with high credit ratings assigned by domestic credit rating agencies.
While cash and cash equivalents are also subject to the impairment requirements of Ind AS 109, the
identified impairment loss was immaterial.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade
receivables are unsecured and are derived from revenue earned from customers primarily located in
India. The Company does monitor the economic environment in which it operates.

The Company considers the probability of default upon initial recognition of loan 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 loan 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 borrower’s ability to meet its obligations

• Actual or expected significant changes in the operating results of the borrower

Credit risk has always been managed by the Company through credit approvals, establishing credit
limits and continuously monitoring the creditworthiness of customers to which the Company grants
credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company
uses expected credit loss (ECL) model to assess the impairment loss or gain. The Company uses a
provision matrix to compute the expected credit loss allowance for trade receivables. The provision
matrix takes into account available external and internal credit risk factors such as Company’s historical
experience for customers.

(b) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities
and the availability of funding through an adequate amount of committed credit facilities to meet
obligations when due. Due to the nature of the business, the Company maintains flexibility in funding
by maintaining availability under committed facilities. Management monitors rolling forecasts of
the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows.
The Company takes into account the liquidity of the market in which the entity operates. In addition,
the Company’s liquidity management policy involves projecting cash flows in major currencies and
considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios
against internal and external regulatory requirements and maintaining debt financing plans.

(i) Maturities of financial liabilities

The tables below analyses the Company’s financial liabilities into relevant maturity groupings based
on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in
the table are the contractual undiscounted cash flows. Balances due within 12 months equal their
carrying balances as the impact of discounting is not significant.

*Amortised amount of upfront fees/charges paid at the time of sanction/disbursement of loan in the above outstanding
is INR NIL (31 March 2024: INR 0.01 Crore). This amount further includes future undiscounted cash flows for interest on
term loans INR 2.69 Crore (31 March 2024: INR 9.80 Crore).

(c) Market risk

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

(i) Currency risk

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Company is exposed to the effects of fluctuation in the
prevailing foreign currency exchange rates on its financial position and cash flows. Exposure arises
primarily due to exchange rate fluctuations between the functional currency and other currencies
from the Company’s operating, investing and financing activities.

(d) Commodity price risk

Fluctuation in commodity price in market affects directly or indirectly the price of raw material and
components used by the Company. The Company sells its products mainly to Original Equipment
Manufacturers for whom it is manufacturing auto components. The Company does regular negotiation
/ adjustment of prices on the basis of changes in commodity prices.

(II) Capital management

For the purpose of the Company’s capital management, capital includes issued equity share capital,
securities premium reserve and all other equity reserves attributable to the equity holders of the Company.
The primary objective of the management of the Company’s capital structure is to maintain an efficient
mix of debt and equity in order to achieve a low cost of capital, while taking into account the desirability of
retaining financial flexibility to pursue business opportunities and adequate access to liquidity to mitigate
the effect of unforeseen events on cash flows.

The Company manages its capital structure and makes adjustments to it in light of changes in economic
conditions. To maintain or adjust the capital structure, the Company may return capital to shareholders, raise
new debt or issue new shares.

45. Other disclosures required as per schedule III- (Contd..)

(b) The Company has not invested or traded in crypto currency & virtual currency.

(c) 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:

(i) 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

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

(d) 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:

(i) 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

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

(e) The borrowings obtained by the company from banks and financial institutions have been applied for the
purposes for which such loans were taken.

(f) The Company has not been declared willful defaulter by any bank or financial Institution or other lender.

(g) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the period 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.

(h) There has not been any proceedings initiated or pending against the Company for holding any benami property
under the Benami transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(i) Relationship with struck off companies

The Company has no transaction/ balance with companies struck off under section 248 of the Act to the best of
the knowledge of the Company’s management.

(j) The Company does not have any charges or satisfactions, which is yet to be registered with Registrar of companies,
beyond the statutory year prescribed under the Companies Act, 2013 and the rules made thereunder.

(k) The title deeds of all the immovable properties (other than properties where the company is the lessee and the
lease agreements are duly executed in favour of the lessee), as disclosed in note 3 to the financial statements, are
held in the name of the company except the one disclosed in note 3.4.

(l) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with the Companies (Restriction on number of layers) Rules 2017.

(m) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

46. The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule
3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring
companies, which uses accounting software for maintaining its books of account, shall use only such accounting
software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change
made in the books of account along with the date when such changes were made and ensuring that the audit trail
cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of audit
trail (edit log) facility and the same was enabled at the application level. During the year ended 31 March 2025, the
Company has not enabled the feature of recording audit trail (edit log) at the database level for the said accounting
software to log any direct data changes on account of recommendation in the accounting software administration
guide which states that enabling the same all the time consume storage space on the disk and can impact database
performance significantly.

47. Certain amounts (currency value or percentages) shown in various tables and paragraphs included in these
standalone financial statements have been rounded off or truncated as deemed appropriate by the management
of the Company.

48. Previous year figure regrouped / reclassified wherever necessary to confirm to current period''s classification
pursuant to amendment in Schedule III of the Act.

49. No significant subsequent events have occurred post the balance sheet date 31 March 2025 which may require an
adjustment to the standalone financial statements.

50. Authorisation of financial statements

The standalone financial statements for the year ended 31 March 2025 were approved by the board of directors
on 13 May 2025.

For Walker Chandiok & Co For and on behalf of the Board of Directors of
LLP

Chartered Accountants ASK Automotive Limited

Firm’s Registration No.:

001076N/N500013

Anamitra Das Kuldip Singh Rathee Aman Rathee Naresh Kumar Rajani Sharma

Partner Chairman and Managing Executive Director Chief Financial Officer Company

Membership No.: 062191 Director DIN: 00041130 Secretary

DIN: 00041032 M.No. A14391

Place: Gurugram Place: Gurugram

Date: 13 May 2025 Date: 13 May 2025

---

Mar 31, 2024

The carrying value of goodwill arose at the time of business purchase of erstwhile APK Automotive and AK Auto Industries by the company which is tested for impairment annually at each balance sheet date in accordance with the Company''s procedure for determining the recoverable amounts of the after market business which is considered as a cash generating unit (CGU). The recoverable amount of CGU is based on value in use. The value in use for Goodwill is determined based on discounted cash flow projections. These calculations uses management

assumptions and discounted pre tax cash flow projections based on financial budgets covering a 5 year period. Cash flow projection beyond 5 years time period are extrapolated using the estimated terminal growth rate. Certain key assumptions considered by the management for impairment testing of CGU are stated below:

• Weighted average cost of capital: 31 March 2024: 16.34% (31 March 2023: 16.20%)

• Revenue growth rate: 31 March 2024: 12% (31 March 2023: 13%)

• Terminal growth rate: 31 March 2024: 4% (31 March 2023: 4%)

The management believes that no reasonably possible change in any of the key assumptions used in the value in use calculation would cause the carrying value of the CGU to materially exceed its value in use.

5.1 Refer to note 35 for details of investments in subsidiary and joint venture.

5.2 The Company has additionally invested an amount of ^ 12,00,50,000 (INR Twelve Crores Fifty Thousand) in ASK Fras-le Friction Private Limited, Joint Venture of the Company on 21 December 2022 for subscription of its 1,20,05,000 (One Crore Twenty Lakhs Five Thousand) equity shares of ^ 10/- each on right basis.

5.3 The Company has performed an impairment assessment of its Investment in Joint Venture at the balance sheet date to ascertain the recoverable amount and has not found any indicator of impairment as at 31 March 2024 and 31 March 2023. The recoverable amount is determined based on value in use calculation. These calculations uses management assumptions and discounted pre tax cash flow projections based on financial budgets covering a 5 year period. Cash flow projection beyond 5 years time period are extrapolated using the estimated terminal growth rate. Certain key assumptions considered by the management for impairment testing are stated below:

• Weighted average cost of capital: 31 March 2024: 20.09% (31 March 2023: 19.95%)

• Terminal growth rate: 31 March 2024: 4% (31 March 2023: 4%)

The management believes that no reasonably possible change in any of the key assumptions used in the value in use calculation would cause the carrying value of the Investment to materially exceed its value in use.

Loan given to ASK Fras-le Friction Private Limited (Joint Venture) is receivable in 4 equal yearly installments of 7 266.63 Lakhs commencing from 20 January2024 and carries Interest rate of 9% p.a receivable on quarterly intervals.

The company has sanctioned an unsecured loan to ASK Automobiles Private Limited (subsidiary), for purchase of fixed assets including land, construction of building, purchase of plant and machinery and for meeting working capital requirements, for an amount not exceeding 7 10,000 Lakhs to be disbursed upto March 2024. The interest rate on the loan amount was repo rate 1.90% for loan disbursed during financial year 2021-22 , repo rate 2.30% for the loan disbursed during financial year 2022-23 and repo rate 3.30% for the loan to be disbursed during financial year 202324. As per initial agreement, the loan was repayable in sixty equal monthly installments w.e.f 1 April, 2024, interest accrued upto March 2024 was payable in 4 equal quarterly instalments starting from 7 July 2024 and interest accrued from 1 April 2024 was payable on 7th day after end of each quarter. During the year, the Company has amended the loan agreement and enhanced the sanctioned limit to 7 35,000 Lakhs and amended the terms as: (1) Remaining loan amount can be disbursed in one or more tranches till 31 March 2026. (2) Interest rate from 1 April 2024 will be Repo Rate 2.00% p.a. applicable on all loan disbursed in various phases. (3) The loan will be repayable in sixty equal monthly installments w.e.f 1 April, 2026. (4) Interest accrued upto March 2026 will be payable in 4 equal quarterly instalments starting from 7 July 2026. Interest accrued from 1 April 2026 will be payable on 7th day after end of each quarter.

*This amount includes 7 300 Lakhs (31 March 2023: INR NIL) as security deposits held with National Stock Exchange Limited (NSE) against listing related compliance of Initial Public Offering. This amount to be used for payment of expenses relating to Initial Public Offering. (Refer note 39.3)

#This amount includes INR NIL (31 March 2023: 7162.92 Lakhs) towards Initial public offer related transaction costs, which the Company has recovered from selling shareholders. (Refer note 39.3).

Trade receivables are non-interest bearing and are generally on terms of 30 to 60 days.

Refer note 38(B)(I)(a) for details of the Company''s credit risk policy and exposure.

Refer note 39 for trade receivables outstanding from related party.

10.3 Trade receivable includes receivable amounting to NIL (31 March 23: ^ 3219.97 lakhs) from a customer, which are subject to sales invoice financing arrangement with HDFC Bank Ltd and the customer, where the obligation to pay may arise due to unforeseen event of default by the Company’s customer. The company, therefore, recognised the trade receivables and corresponding borrowings liability in these standalone financial statements in accordance with the requirements of Ind AS 109 - Financial Instruments.

10.4 During the year, the Company has entered into an arrangement with ICICI Bank Limited to discount its trade receivables on a non recourse basis and accordingly trade receivables amounting to ^ 5,913.59 Lakhs (31 March 2023: INR NIL) have been derocognised in accordance with Ind AS 109 - Financial Instruments.

Includes balance of R 52.21 lakhs (31 March 2023: R 70.30 lakhs) in unspent CSR expenditure account which is not readily available for other purposes (refer note 31.2).

It also includes ^ 854.60 Lakhs (31 March 2023: INR NIL) in escrow account for meeting Intial Public Offering expenses on behalf of selling shareholders. (refer note 39.3).

Cash and cash equivalent includes ^ 854.60 Lakhs (31 March 2023: INR NIL) which would be used for meeting Initial Public Offering expenses on behalf of selling shareholders and ^ 52.21 Lakhs (31 March 2023: ^ 70.30 Lakhs) in unspent CSR expenditure account. These balances are restricted and are not readily available for other purposes. Also, refer note 39.3 and note 31.2 respectively.

There are no repatriation restrictions with regard to cash and cash equivalents as at the end of the current and previous year.

The Company has undrawn borrowing facilities aggregating to ^ 20,700.62 Lakhs (31 March 2023: ^ 6,808.84 Lakhs) for future operating activities. This includes INR NIL (31 March 2023: ^ 1,780.03 Lakhs) towards sales invoice discounting and ^ 4,086.41 Lakhs (31 March 2023: INR NIL) towards factoring arrangement. (refer note 20).

(iv) Terms/rights attached to equity shares

The Company has only one class of equity shares having face value of ^ 2 per share. All the existing equity shares rank pari passu in all respects including but not limited to entitlement for dividend, bonus issue and right issue. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after settling of all liabilities, in proportion to their shareholding.

(vii) During the year ended 31 March 2023, with the approval of the Board of Directors, the Company offered buyback of 37,50,000 (Thirty seven lacs fifty thousand only) fully paid-up equity shares of Face Value of ^ 2/- (Two only) each at a price of ^ 240/- (Two hundred and forty only) per Equity share, on a proportionate basis through the tender offer process. The buyback procedure was completed in September 2022 , which resulted in a total cash outflow of ^ 9,000.00 Lakhs (excluding tax on buy back). In line with the requirement of the Companies Act, 2013, the amount of ^ 9,000.00 Lakhs has been utilised from retained earnings. Consequent to such buyback, the Company extinguished 37,50,000 equity shares, the paid-up equity share capital of the Company was reduced by ^ 75 Lakhs and capital redemption reserve of ^ 75 Lakhs (representing the nominal value of the shares bought back) has been created out of retained earnings.

(ix) The Board of directors, vide circular resolution passed on 24th August, 2023, took note of the following transfer of shares made by Mr. Prashant Rathee and Mr. Aman Rathee, Directors and Shareholders of the Company to the Promoters of the Company, Mr. Kuldip Singh Rathee and Mrs. Vijay Rathee, by way of gift deeds each dated 23 August 2023 (“Gift Deeds”).

(x) The Company has completed an Initial Public Offer (‘IPO’) of 2,95,71,390 Equity shares having face value of INR 2 each, at an issue price of ^ 282 per equity share (including share premium of ^ 280 per equity share), comprising offer for sale of 2,95,71,390 shares by selling shareholders aggregating to ^ 83,391.32 Lakhs. The equity shares of the Company got listed on BSE Limited (‘BSE’) and National Stock Exchange of India Limited (‘NSE’) on 15 November 2023.

Subsequent to year end, The Board of Directors in the meeting dated 18 May 2024 of the Company have considered and recommended a final dividend of ^ 1 per share (face value of ^ 2 per share) for the financial year 2023-24 which is subject to approval of the members at the ensuing annual general meeting.

14.1 Nature and purpose of other equity

- General reserve: This represents appropriation of profit by the Company and is available for distribution of dividend.

- Capital redemption reserve: This represents a non-distributable reserve created as per provisions of section 55 of the Companies Act, 2013 on redemption of 0% Non convertible redeemable preference shares redeemed during the year ended 31 March 2018 and as per provisions of section 68 of the Companies Act, 2013 on Buy back of equity shares for the years ended 31 March 2023 and 31 March 2022.

- Securities premium: This represents premium received on issue of shares, which can be utilised only in accordance with the provisions of the Companies Act, 2013 for specified purposes.

- Retained earnings: This represents the net profits after all distributions and transfers to other reserves.

17.1 Defined benefit plan and long term employment benefits A General description:

Gratuity (Defined benefit plan):

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each year. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Every employee who has completed five years or more of service gets a gratuity on retirement/leaving the organisation at 15 days salary (last drawn salary) for each completed year of service. The scheme is unfunded. Actuarial gains or losses are recognised in other comprehensive income.

Compensated absences (other long term employee benefits):

The employees of the Company are entitled to leaves as per the leave policy of the Company. Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised based on actuarial valuation. The expense related to compensated absences are recognised in standalone statement of profit and loss as employee benefits expense.

These assumptions were developed by management with the assistance of independent actuary. Discount factors are determined close to each year-end by reference to market yields of high quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on current actuarial benchmarks and management’s historical experience.

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

The change in defined benefit obligation due to 100 bps increase/decrease in mortality rate, if all other assumptions remain constant is negligible.

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

There is no change in the method of valuation for the prior year.

Revenue is mainly derived from three major customers which account for 30.56% (31 March 2023: 34.52%), 15.00% (31 March 2023: 15.57%), 12.37% (31 March 2023: 10.74%) of the Company respectively arising from sale of products and services.

28.1 Defined contribution plan

The Company has certain defined contribution plans. The contributions are made to provident fund in India for employees at the prescribed rates of the basic salary as per Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. The contributions are made to recognised provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

# Excludes ^ 135.82 Lakhs for the year ended 31 March 2024 (31 March 2023: 41.00 Lakhs) charged towards special purpose audit, certification and other services which is part of Initial Public Offering recovered from selling shareholders. (Refer note - 39.3)

31.2 Corporate social responsibility expenditure

In accordance with the provisions of section 135 of the Companies Act 2013, the Board of Directors of the Company had constituted a Corporate Social Responsibility (CSR) Committee. The CSR Committee has been examining and evaluating suitable proposals for deployment of funds towards CSR initiatives. During the current year ended 31 March 2024, Company has contributed following sums towards CSR initiatives.

# This is the amount transferred by Company to the AHSAAS during the year, actual amount spent by the AHSAAS during the year is ^ 79.18 Lakhs (31 March 2023: ^ 6.76 lakhs).

* The Board of the company during the year has approved ^ 100.00 Lakhs (31 March 2023: ^ 60.00 lakhs) for ongoing projects.

As per Section 135(6) of the Companies Act 2013, the Company is required to transfer the unspent amount pertaining to ongoing project to a special account called "Unspent Corporate Social Responsibility Account" within 30 days from end of respective financial year. In this regard, the Company has transferred ^ 100 Lakhs (31 March 2023: ^ 60 Lakhs) to the special account on 26 April 2024. Out of the amounts deposited in the bank account for prior year, Company has transferred to AHSAAS ^ 78.09 Lakhs (31 March 2023: ^ 7.84 lakhs).

33 Earning per share

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the average number of equity shares and weighted average number of equity shares outstanding. The reconciliation of the number of shares and weighted average number of shares for the purpose of basic and diluted earnings per share to the number of equity shares and weighted average number of ordinary equity shares used in the calculation of basic and diluted earnings per share is as follows:

34 Segment Reporting

The business activity of the Company falls within one operating segment viz. manufacturing of auto components including advanced braking systems, aluminium lightweighting precision solutions and safety control cables primarily for automobile industry and substantial sale of the products is within India. The Board of Directors, which has been identified as being the Chief Operating Decision Maker (CODM), evaluates the Company’s performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit. Therefore, there is one reportable segment for the Company.

For information about geographical areas and revenue from major customers, refer note 44(A) and 24 respectively.

35.1 As per joint venture agreement, the scope and value of work of each partner has been clearly defined and accepted by the partners. The Company’s share in the joint venture company is duly accounted for in the accounts of the Company in accordance with such division of work and therefore does not require separate disclosure.

(ii) During the year ended 31 March 2024, Surety bond amounting ^ 1,255.30 Lakhs executed by the company in favor of the President of India, under Export Promotion Capital Goods Scheme (EPCG) for importing capital goods at concessional rate of custom duty. The amount of duties and taxes saved during the year were ^ 487.96 Lakhs against which there was an unfulfilled export obligation of ^ 271.03 Lakhs. As at 31 March 2023, there was no unfulfilled export obligation.

37 Contingent liabilities

(i) Corporate guarantees given to banks on account of facilities granted by banks to joint venture and subsidiary company.

The following is a description of claims and assertions where a potential loss is possible, but not probable. The Company believes that none of the contingencies described below would have a material adverse effect on the Company’s financial condition, results of operations or cash flows:

Description	Purpose of guarantee	As at 31 March 2024	As at 31 March 2023
ASK Fras-le Friction Private Limited*	Term Loan and Working capital requirement	-	8,350.00
ASK Automobiles Private Limited	Term Loan and Working capital requirement	34,100.00	25,400.00
Total		34,100.00	33,750.00
*As co guarantor with Fras-Le S.A., Brazil as per their shareholding in Joint venture company.

(ii) Others

(a) The Company has received a demand under Goods and Services Tax Act, 2017 of ^ 117.85 Lakhs on 9 August 2023 from Goods and Service Tax (GST) department out of which ^ 3.59 Lakhs is paid under protest. The Company has further deposited ^ 5.47 Lakhs towards disputed tax liability and has filed an appeal against the demand order on 31 October 2023 on which no further communication has been received from the department.

(b) The Company has received an order dated 23 May 2023 from the Assistant Director, Directorate of Enforcement, in connection with an investigation under the Foreign Exchange Management Act, 1999, as amended, directing the Company to submit certain information, including, inter alia, details of the Directors, the Company’s business, the bank accounts of Company, imports and exports made by Company till date and certain information for financial year 2016-2017, such as, all foreign investments made by Company, import/export advance payments for which import and export had not been made by Company and imports/ exports for which payments had not been made/realized by Company, during the aforementioned year. The Company has submitted the required information pursuant to the aforementioned order and no further communication has been recieved from the Directorate of Enforcement in this matter till the adoption of this financial information. The Company believes that this was information seeking by the authorities and is not likely to have any implication on the financial position of the Company.

B Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk;

- Market risk - Foreign exchange;

- Market risk - Interest rate; and

- Commodity price risk

(I) Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors have authorised senior management to establish the processes, who ensures that executive management controls risks through the mechanism of properly defined framework.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risks limits and controls, to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans. Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and other bank balances with high credit ratings assigned by domestic credit rating agencies. While cash and cash equivalents are also subject to the impairment requirements of Ind AS 109, the identified impairment loss was immaterial. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are unsecured and are derived from revenue earned from customers primarily located in India. The Company does monitor the economic environment in which it operates.

The Company considers the probability of default upon initial recognition of loan and interest accrued therein 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 loan 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 borrower’s ability to meet its obligations

• Actual or expected significant changes in the operating results of the borrower

Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss (ECL) model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors such as Company’s historical experience for customers.

The credit risk for investment carried at amortised cost and other financial assets is considered negligible. However, specific provision is made in case a particular receivable is considered to be non -recoverable.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

(i) Maturities of financial liabilities

The tables below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

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

(i) Currency risk

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other currencies from the Company’s operating, investing and financing activities.

Exposure to currency risk

The summary of quantitative data about the Company’s unhedged exposure to currency risk, as expressed in INR :

Sensitivity analysis

A reasonably possible strengthening (weakening) of the Indian Rupee against below currencies at 31 March 2024 would have affected the measurement of financial instruments denominated in functional currency and affected equity and profit or loss by the amounts shown below. This analysis is performed on foreign currency denominated monetary financial assets and financial liabilities outstanding as at the year end. 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

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s main interest rate risk arises from long-term borrowings and short term borrowings with variable rates.

Interest rate risk exposure

The Company’s interest rate risk arises majorly from the term loans from banks carrying floating rate of interest. The exposure of the Company’s borrowing to interest rate changes as reported to the management at the end of the reporting period are as follows:

(d) Commodity price risk

Fluctuation in commodity price in market affects directly or indirectly the price of raw material and components used by the Company. The Company sells its products mainly to Original Equipment Manufacturers for whom it is manufacturing auto components. The Company does regular negotiation / adjustment of prices on the basis of changes in commodity prices.

(II) Capital management

For the purpose of the Company’s capital management, capital includes issued equity share capital, securities premium reserve and all other equity reserves attributable to the equity holders of the Company. The primary objective of the management of the Company’s capital structure is to maintain an efficient mix of debt and equity in order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to pursue business opportunities and adequate access to liquidity to mitigate the effect of unforeseen events on cash flows.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may return capital to shareholders, raise new debt or issue new shares.

The Company monitors capital on the basis of the debt to capital ratio, which is calculated as adjusted net interest-bearing debts divided by total capital.

The Company’s adjusted net debt has decreased by R 9,183.46 lakhs due to repayment of borrowings against increase in shareholder’s equity by R 17,481.93 lakhs

*For the purpose of capital management, the Company have not included R 854.60 Lakhs (31 March 2023: INR NIL) lying in escrow account for meeting Initial Public Offering expenses on behalf of selling shareholders and R 52.21 Lakhs (31 March 2023: R 70.30 Lakhs) in unspent CSR expenditure account. These balances are restricted and are not readily available for other purposes.

39.3 Since the Initial Public Offer was an Offer For Sale, so the Company withheld ^ 4,961.67 Lakhs out of total proceeds of offer from sale by the selling shareholders for payment of Inital Public Offer related expenses incurred by the Company. The total amount outstanding as on date 31 March 2024 is ^ 1,154.61 Lakhs consisting of ^ 854.61 Lakhs in Escrow A/c and ^ 300.00 Lakhs as security deposits with National Stock Exchange Limited (NSE). Against this ^ 1,154.61 lakhs, ^ 7.95 lakhs is recoverable by the Company and balance 1,146.66 lakhs is to be paid to various service providers for which invoices are awaited. In case demand/invoicing received is more than ^ 1,146.66 lakhs, the balance will be recovered from selling shareholders.

39.4 The Company has given a letter of continued financial support to its Subsidiary Company (ASK Automobiles Private Limited) for the year ended 31 March 2024.

Remarks for variance (in case of variance more than 25%)

*During the current year, debt has been decreased by ^ 9,571.60 Lakhs against increase in average shareholders'' equity by ^ 17,481.93 Lakhs.

^$During the current year, there is an increase in earnings available for debt service by ^ 4,076.15 lakhs and decrease in repayments of long term debt and interest by ^ 287.00 lakhs.

(b) The Company has not invested or traded in crypto currency & virtual currency.

(c) 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:

(i) 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

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

(d) 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:

(i) 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

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

(e) The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.

(f) The Company has not been declared willful defaulter by any bank or financial Institution or other lender.

(g) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the period 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.

(h) There has not been any proceedings initiated or pending against the Company for holding any benami property under the Benami transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(i) Relationship with struck off companies

The Company has no transaction/ balance with companies struck off under section 248 of the Act to the best of the knowledge of the Company’s management.

(j) The Company does not have any charges or satisfactions, which is yet to be registered with Registrar of companies, beyond the statutory year prescribed under the Companies Act, 2013 and the rules made thereunder.

(k) The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in note 3 to the financial statements, are held in the name of the company except the one disclosed in note 3.4.

(l) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of layers) Rules 2017.

(m) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

46 Certain amounts (currency value or percentages) shown in various tables and paragraphs included in these standalone financial statements have been rounded off or truncated as deemed appropriate by the management of the Company.

47 Previous year figure regrouped / reclassified wherever necessary to confirm to current period''s classification pursuant to amendment in Schedule III of the Act.

48 No significant subsequent events have occurred post the balance sheet date 31 March 2024 which may require an adjustment to the standalone financial statements.

49 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company is using an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software, except that audit trail feature was not enabled at the database level for accounting software to log any direct data changes, used for maintenance of all accounting records by the Company. Presently, the Company don’t have access to the database and we have raised the request to support partner for enabling the audit trail in system.

50 Authorisation of financial statements

The standalone financial statements for the year ended 31 March 2024 were approved by the board of directors on 18 May 2024.