p) Provisions, contingent liabilities and contingent
assets

A provision is recognised when the Company has
a present obligation as a result of past event, it is
probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation and a reliable estimate can be made of
the amount of the obligation. Provisions determined
based on the best estimate required to settle the
obligation at the reporting date and adjusted to
reflect the current best estimates.

Provisions are discounted to their present values,
where the time value of money is material.

Contingent liabilities are disclosed on the basis of
judgement of management after a careful evaluation
of facts and legal aspects of matter involved.

Contingent assets are disclosed when probable
and recognised when the realisation of income is
virtually certain.

1.2 Other accounting policy information

a) Impairment of non-financial assets

The carrying amounts of the Company’s non¬
financial assets, other than inventories and deferred
tax assets are reviewed at each reporting date
to determine whether there is any indication of
impairment. If any such indication exists, then the
asset’s recoverable amount is estimated.

For the purpose of impairment testing, assets are
grouped together into the smallest group of assets
that generates cash inflows from continuing use that
are largely independent of the cash inflows of other
assets or groups of assets (the ‘cash-generating
unit’). The recoverable amount of an asset or cash¬
generating unit is the greater of its value in use or
its fair value less costs to sell. In assessing value in
use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate
that reflects current market assessments of the time
value of money and the risks specific to the asset.

An impairment loss is recognised if the carrying
amount of an asset or its cash-generating unit
exceeds its estimated recoverable amount.

Impairment losses recognised in respect of cash¬
generating units are allocated first to reduce the
carrying amount of any goodwill allocated to the
units and then to reduce the carrying amount of
the other assets in the unit on a pro-rata basis.
Impairment losses are recognised in the statement
of profit and loss.

I mpairment losses recognised in prior periods are
assessed at each reporting date for any indications
that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been
a change in the estimates used to determine
the recoverable amount. An impairment loss is
reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that
would have been determined, net of depreciation
or amortisation, if no impairment loss had been
recognised.

b) Government grant

Grants and subsidies from the government are
recognised when there is reasonable assurance
that (i) the Company will comply with the conditions
attached to them, and (ii) the grant/subsidy will be
received.

Grant or subsidy relates to revenue, it is recognised
as income on a systematic basis in statement of
profit and loss over the periods necessary to match
them with the related costs, which they are intended
to compensate.

c) Borrowing costs

Borrowing costs directly attributable to the
acquisition, construction or production of an asset
that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalised
as part of the cost of the asset. All other borrowing
costs are expensed in the period in which they
occur. Borrowing costs consist of interest calculated
using the effective interest rate and other costs like
finance charges in respect of the leases recognised
in accordance with Ind AS 116, that an entity incurs in
connection with the borrowing of funds. Borrowing
cost also includes exchange differences to the
extent regarded as an adjustment to the borrowing
costs.

d) Foreign currency transactions

Functional and presentation currency

The financial statements are presented in Indian
Rupees ('), which is also the Company’s functional
and presentation currency.

Foreign currencies
Initial recognition

Transactions in foreign currencies are initially
recorded by the Company at exchange rates at the
date the transaction first qualifies for recognition.

Subsequent measurement

Monetary assets and liabilities denominated in
foreign currencies are translated at the exchange
rates at the reporting date.

Exchange differences arising on settlement or
translation of monetary items are recognised in the
statement of profit or loss in the year in which they
arise.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial
transactions.

All other exchange differences are charged to the
statement of profit and loss.

e) Other income
Dividend income

Dividend income is recognised at the time when
right to receive the payment is established, which
is generally when the shareholders approve the
dividend.

Interest income

I nterest income is recorded on accrual basis using
the effective interest rate (EIR) method.

Export incentives

Export incentives are accounted on accrual basis.

f) Earnings per share

Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable to

g) Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.

1.3 Recent accounting pronouncements which are not yet
effective

As on date of these standalone financial statements,
Ministry of Corporate Affairs (‘MCA’) has not issued any
standards/amendments to accounting standards, which
are effective from April 01, 2025.

Nature and purpose of other reserves

i General reserve

General reserve is created out of the accumulated profits of the Company as per the provisions of Companies Act. The
transfers from rentained earnings to General reserve represents transfer as per the provision of Companies Act on dividend
distribution.

ii Retained earnings

All the profits made by the Company are transferred to retained earnings from statement of profit and loss.

iii Capital reserve

Capital reserve includes the amount of share application money forfeited by the Company.

iv Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with
provisions of the Companies Act.

v Equity instruments through other comprehensive income

Other comprehensive income represents balance arising on account of changes in fair value of FVOCI equity instruments, net
of any tax impact.

The management assessed that cash and cash equivalents, other bank balances, trade receivables, other financial asset,
trade payables, other financial liabilities and short-term borrowings approximate their carrying amounts largely due to the
short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at
which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation
sale. The following methods and assumptions were used to estimate the fair values:

(i) Long-term fixed-rate and variable-rate receivables are evaluated by the Company based on parameters such as interest
rates, individual creditworthiness of the customer and other market risk factors. Based on this evaluation, allowances are
taken into account for the expected credit losses of these receivables.

(ii) The fair values of the Company’s interest-bearing borrowings, loans and receivables are determined by applying
discounted cash flows (‘DCF’) method, using discount rate that reflects the issuer’s borrowing rate as at the end of the
reporting period. The own non-performance risk as at March 31, 2025 was assessed to be insignificant.

NOTE - 36 FINANCIAL RISK MANAGEMENT (CONTD.)

(A) Credit risk

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 and investments in
debt securities. The carrying amount of financial assets represents the maximum credit exposure.

- cash and cash equivalents,

- trade receivables,

- loans & receivables carried at amortised cost, and

- deposits with banks and financial institutions.

The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring
defaults of customers and other counterparties, identified either individually or by the Company, and incorporates
this information into its credit risk controls. Internal credit rating is performed for each class of financial instruments
with different characteristics. The Company assigns the following credit ratings to each class of financial assets
based on the assumptions, inputs and factors specific to the class of financial assets.

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated
banks and diversifying bank deposits and accounts in different banks.

Trade receivables

Credit risk related to trade receivables are mitigated by taking bank guarantees from customers where credit
risk is high. The Company closely monitors the credit-worthiness of the debtors through internal systems that
are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The
Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and
default is considered to have occurred when amounts receivable become past due.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans and advances to employees, security deposits
and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such
amounts continuously, while at the same time internal control system in place ensure the amounts are within
defined limits.

(C) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices
- will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(i) Foreign exchange risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect
to the US Dollar, Yen and Euro. Foreign exchange risk arises from recognised assets and liabilities denominated in
a currency that is not the functional currency of any of the Company entities. Considering the low volume of foreign
currency transactions, the Company’s exposure to foreign currency risk is limited.

NOTE - 37

A Capital management

The Company’s capital management objectives are

- to ensure the Company’s ability to continue as a going concern

- to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented
on the face of balance sheet.

Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure
while avoiding excessive leverage. This takes into account the subordination levels of the Company’s various classes
of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic
conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the
Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or
sell assets to reduce debt.

Employee benefits
1 Defined contribution plans:

A The Company operates defined contribution retirement benefit plans under which the Company pays fixed contributions
to separate entities (funds) or financial institutions or state managed benefit schemes. The Company has no further
payment obligations once the contributions have been paid. Following are the schemes covered under defined
contributions plans of the Company:

Provident Fund Plan & Employee Pension Scheme: The Company makes monthly contributions at prescribed rates
towards Employee Provident Fund/ Employee Pension Scheme to fund administered and managed by the Government
of India.

Superannuation Scheme: The Company contributes towards a fund established to provide superannuation benefit to
certain employees in terms of Group Superannuation Policies entered into by such fund.

Notes:

A Since the change in ratio is less than 25%, no explanation is required to be furnished.

B On account of decrease in profit of the Company as compared to previous year. In previous year, there was an
exceptional gain on sale of investment in one of the joint venture entity.

C On account of increase in current assets due to significant increase in current portion of investment in fixed deposit
made by the Company.

D On account of decrease in the fair value of investments (other than those carried at cost) made by company.

NOTE - 44

Segment information

In accordance with Ind AS 108, the Board of directors being the Chief operating decision maker of the Group has determined
its only one operating segment of manufacturing of “Auto Components”. Further, in terms of Paragraph 4 and 31 of Ind AS 108
‘Operating Segments’, entity wide disclosures have been presented below.

Disclosure on audit trail

The Company has used three accounting software namely Oracle Platform-based ERP Software, Integral Infogen Technology
Private Limited (ERP 10 G) and SAP business One for maintaining its books of account at different locations for the financial year
ended March 31, 2025.

A) Oracle Platform-based ERP software has a feature of recording audit trail (edit log) facility and the same has operated from
April 01, 2024 till August 31, 2024 for all relevant transactions recorded in the software.

B) SAP Business One software has a feature of recording an audit trail (edit log) facility, and the same has operated from
September 01, 2024 the same has subsequently operated throughout the year for all relevant transactions recorded in the
software.

C) Integral Infogen Technology Private Limited (ERP 10 G) software 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 Finance module of the software.

The audit trail feature was enabled in all the softwares during the year. Further, the audit trail has been preserved by the

Company as per the statutory requirements for record retention.

NOTE - 47

Additional regulatory information required by Schedule III to the Companies Act, 2013

(i) The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending
against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
the Rules made thereunder.

(ii) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender or government or
any government authority.

(iii) There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961
(such as search or survey), that has not been recorded in the books of account.

(iv) The Company has not traded or invested in cryptocurrency or virtual currency during the year.

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

(vi) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources
or kind of funds) to any other person or entity, including foreign entities (“’’Intermediaries””) with the understanding (whether
recorded in writing or otherwise) that the Intermediary shall, whether directly or indirectly lend or invest in other persons/
entities identified in any other manner whatsoever by or on behalf of the Company (‘ultimate beneficiaries’) or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) 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 directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding party (ultimate beneficiaries);
or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(viii) The Company does not have any transactions with companies struck off.

(ix) The Company has complied with the requirement with respect to the number of layers as prescribed under section 2(87) of
the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

For J.C Bhalla & Co For and on behalf of Talbros Automotive Components Limited

Chartered Accountants

Firm Registration No.: 001111N

per Piyush Tripathi Anuj Talwar Manish Khanna

Partner Joint Managing Director Chief Financial Officer

Membership No. 524288 [DIN: 00628063]

Umesh Talwar Seema Narang

Place: Gurugram Vice Chairman and Managing Director Company Secretary

Date: May 26, 2025 [DIN: 00059271]