m) Provisions and contingencies

A provision is recognised when the company has a present obligation (legal or
constructive) as a result of a past event, and is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

When the company expects some or all of a provision to be reimbursed, the
reimbursement is recognised as a separate asset, but only when the reimbursement is
virtually certain. The expense relating to a provision is presented in the statement of

profit and loss net of any reimbursement.

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

A contingent liability is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the Company or a present obligation
that is not recognized because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises where there is a
liability that cannot be recognized because it cannot be measured reliably. The
Company does not recognize a contingent liability but discloses its existence in the
financial statements.

Contingent assets are not recognised in financial statements, unless they are virtually
certain. However, contingent assets are disclosed where inflow of economic benefits
are probable.

Provisions, contingent liabilities and contingent assets are reviewed at each balance
sheet date.

n) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement
date. The fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the
asset or liability

The Company uses valuation techniques that are appropriate in the circumstances
and for which sufficient data are available to measure fair value, maximizing the use of
relevant observable inputs and minimizing the use of unobservable inputs.

• Level 1 - Quoted (unadjusted) market prices in active markets for identical assets
or liabilities

• Level 2 - Valuation techniques for which the lowest level input that is significant to
the fair value measurement is directly or indirectly observable

• Level 3 - Valuation techniques for which the lowest level input that is significant to
the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring
basis, the company determines whether transfers have occurred between levels in the
hierarchy by re-assessing categorisation (based on the lowest level input that is

significant to the fair value measurement as a whole) at the end of each reporting
period.

For the purpose of fair value disclosures, the company has determined classes of
assets and liabilities based on the nature, characteristics and risks of the asset or
liability and the level of the fair value hierarchy.

o) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity
and a financial liability or equity instrument of another entity. Financial assets and
financial liabilities are recognized when a Company becomes a party to the
contractual provisions of the instruments. Financial assets mainly consist of (a) trade
receivables (b) cash and bank balances (c) fixed deposits with bank, etc.

• Initial recognition and measurement

Financial instruments are initially recognised when the entity becomes party to the
contractual provisions of the instrument.

Financial instruments are measured initially at fair value adjusted for transaction
costs that are directly attributable to the origination of the financial instrument
where financial instruments not classified at fair value through profit or loss.
Transaction costs of financial instruments which are classified as fair value
through profit or loss are expensed in the statement of profit and loss.

• Subsequent measurement of financial assets

For the purposes of subsequent measurement, the financial assets are classified in
the following categories based on the company's business model for managing the
financial assets and the contractual terms of cash flows:

• those to be measured subsequently at fair value; either through OCI or through
profit or loss

• those measured at amortised cost

For assets measured at fair value, changes in fair value will either be recorded in the
statement of profit and loss or OCI. For investments in debt instruments, this will
depend on the business model in which investment is held. For investments in
equity instruments, this will depend on whether the company has made an
irrevocable election at the time of initial recognition to account for equity
investment at fair value through OCI.

The company reclassifies debt investments when and only when its business model
for managing those assets changes.

• Debt instruments at amortised cost

A 'debt instrument' is measured at the amortised cost if both the following
conditions are satisfied:

• The asset is held within a business model whose objective is to hold assets for
collecting contractual cash flows, and

• The contractual terms of the asset give rise on specified dates to cash flows
that are solely payments of principal and interest (SPPI) on the principal
amount outstanding.

A gain or loss on a debt investment that is subsequently measured at amortised
cost and is not part of hedging relationship is recognised in the statement of profit
and loss when the asset is derecognised or impaired. Interest income from these
financial assets is included in finance income using effective interest rate (EIR)
method.

Debt instruments at fair value through other comprehensive income (FVTOCI)

Assets that are held for collection of contractual cash flows and for selling the
financial assets, where the assets' cash flows represent SPPI, are measured at
FVTOCI. The movements in the carrying amount are recognised through OCI,
except for the recognition of impairment gains and losses, interest revenue and
foreign exchange gain or losses which are recognised in the statement of profit and
loss. When the financial asset is derecognised, the cumulative gain or loss
previously recognised in OCI is reclassified from equity to the statement of profit
and loss and recognised in other gains/ losses. Interest income from these financial
assets is included in other income using EIR method.

Debt instruments at fair value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortised cost or FVTOCI are measured at
FVTPL. A gain or loss on debt instrument that is subsequently measured at FVTPL
and is not a part of hedging relationship is recognised in the statement of profit and
loss within other gains/ losses in the period in which it arises. Interest income from
these financial assets is included in other income.

Equity investments

All equity investments in the scope of Ind AS 109 Financial Instruments are
measured at fair value. Equity instruments which are held for trading are classified
as at FVTPL. For all other equity instruments, the company may make an
irrevocable election to recognise subsequent changes in the fair value in OCI. The
company makes such election on an instrument-by-instrument basis. The
classification is made on initial recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, then all fair
value changes on the instrument, excluding dividends, are recognized in OCI.
There is no recycling of the amounts from OCI to the statement of profit and loss,
even on sale of equity instrument.

Equity instruments included within the FVTPL category are measured at fair value
with all changes recognised in the statement of profit and loss.

• Subsequent measurement of financial liabilities

For the purposes of subsequent measurement, the financial liabilities are classified
in the following categories:

• those to be measured subsequently at fair value through profit or loss (FVTPL)

• those measured at amortised cost

Following financial liabilities will be classified under FVTPL:

• Financial liabilities held for trading

• Derivative financial liabilities

• Liability designated to be measured under FVTPL

All other financial liabilities are classified at amortised cost.

For financial liabilities measured at fair value, changes in fair value will recorded in
the statement of profit and loss except for the fair value changes on account of own
credit risk are recognised in Other Comprehensive Income (OCI).

Interest expense on financial liabilities classified under amortised cost category
are measured using effective interest rate (EIR) method and are recognised in
statement of profit or loss.

• Derecognition of financial instruments

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

A financial liability is derecognised when the obligation under the liability is
discharged or cancelled or expires. When an existing financial liability is replaced
by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is
treated as the derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognised in the
statement of profit or loss.

• Impairment of financial assets

The company applies Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss on the financial assets mentioned below:

• Financial assets that are debt instrument and are measured at amortised cost

• Financial assets that are debt instruments and are measured as at FVOCI

• Trade receivables under Ind AS 18

The impairment methodology applied depends on whether there has been a
significant increase in credit risk. Details how the company determines whether
there has been a significant increase in credit risk is explained in the respective
notes.

For impairment of trade receivables, the company chooses to apply practical
expedient of providing expected credit loss based on provision matrix and does
not require the Company to track changes in credit risk. Percentage of ECL under
provision matrix is determined based on historical data as well as futuristic
information.

• Derivative financial instruments

Initial measurement and subsequent measurement

The company uses derivative financial instruments, such as forward currency
contracts to hedge foreign currency risks. Such derivative financial instruments
are initially recognised at fair value on the date on which a derivative contract is
entered into and are subsequently re-measured at fair value. Derivatives are
carried as financial assets when the fair value is positive and as financial liabilities
when the fair value is negative. Any gains or losses arising from changes in the fair
value of derivatives are taken directly to profit or loss.

p) Earnings per share (EPS)

Basic & diluted earnings per share is reported in accordance with Ind AS-33- Earnings
Per Share. Basic EPS is calculated by dividing the profit for the year attributable to
equity holders of the company by the weighted average number of equity shares
outstanding during the financial year, adjusted for bonus elements in equity shares
issued during the year and excluding treasury shares.

Diluted EPS adjust the figures used in the determination of basic EPS to consider

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

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

q) Segment reporting
Identification of Segments

The Company's operating business predominantly relates to manufacture of iron
castings.

Operating segment

Ind AS 108 Operating Segments requires Management to determine the reportable
segments for the purpose of disclosure in financial statements based on the internal
reporting reviewed by the Managing Director being the Chief Operating Decision

Maker (CODM) to assess performance and allocate resources. The standard also requires
Management to make judgments with respect to recognition of segments. Accordingly,
the Company recognizes Iron Castings as its sole Segment.

4) SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements in conformity with the recognition &
measurement principles of Ind AS, requires the management to make judgments,
estimates and assumptions that affect the amounts of revenue, expenses, current assets,
non-current assets, current liabilities, non-current liabilities, disclosure of the contingent
liabilities and notes to accounts at the end of each reporting period. Actual results may
differ from these estimates.

Judgments

In the process of applying the Company's accounting policies, management have made
the following judgements, which have the most significant effect on the amounts
recognised in the financial statements:

Contingent liability

The Company has received various orders and notices from different Government
authorities and tax authorities in respect of direct taxes and indirect taxes. The outcome of
these matters may have a material effect on the financial position, results of operations or
cash flows. Management regularly analyses current information about these matters and
discloses the information relating to contingent liability. In making the decision regarding
the need for creating loss provision, management considers the degree of probability of an
unfavorable outcome and the ability to make a sufficiently reliable estimate of the amount
of loss. The filing of a suit or formal assertion of a claim against the Company or the
disclosure of any such suit or assertions, does not automatically indicate that a provision
of a loss may be appropriate.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year,
are described below. The Company based its estimates and assumptions on parameters
available when the financial statements are prepared. Existing circumstances and
assumptions about future developments, however, may change due to market conditions
or circumstances arising that are beyond the control of the Company. Such changes are
reflected in the assumptions when they occur.

Deferred Tax

Deferred tax assets are recognised for all deductible temporary differences including the
carry forward of unused tax credits and any unused tax losses. Deferred tax assets are
recognised to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits
are unused tax losses can be utilized.

Estimation and underlying assumptions are reviewed on ongoing basis. Revisions to
estimates are recognised prospectively.

b Terms/rights attached to equity shares

The company has only one class of share having par value of Rs 10. Each holder of equity
share is entitled to one vote per share. In the event of Liquidation of the Company, the
holders of equity shares will be entitled to receive remaining assets of the Company after
distribution of preferential amount. The distribution will be in proportion to the number of
equity shares held by the shareholders.

e Equity shares movement during five years preceeding March 31, 2025
Conversion of 4% compulsorily Convertible Debentures

The Company had also issued 1,975,00 0 4% Compulsorily Convertible Debentures (CCD) to
M/s Miba Sinter Holding GmbH CO & KG on March 3, 2021 at a value of Rs. 67 per CCD to be
converted into 1,975,000 equity shares of face value Rs. 10 per share at a premium of Rs. 57
per share. Balance 50% of these CCD i.e. 987,500 CCD were converted to equity shares on
July 12, 2022.

The Company had also issued 1,975,00 0 4% Compulsorily Convertible Debentures (CCD) to
M/s Miba Sinter Holding GmbH CO & KG on March 3, 2021 at a value of Rs. 67 per CCD to be
converted into 1,975,000 equity shares of face value Rs. 10 per share at a premium of Rs. 57
per share. 50% of these CCD i.e. 987,500 CCD were converted to equity shares on March 30,
2022.

Preferential allotment of eq uity shares:

The Company alloted 1,350,000 equity shares of face value of Rs. 10 each to M/s Miba
Sinterholding GmBH KG & CO at a premium of 57 per share on March 3, 2021.

Description of Components of the other equity
Securities Premium:

Premium received on equity shares are recognised in the securities premium and is utilised
in accordance with provisions of the Act.

Retained Earnings:

Reatined earnings are profits that the Company has earned till date, less any transfers to
General Reserves, dividends and other distributions paid to shareholders. It also includes
remeasurement gain/loss of defined benefit plan.

Other Comprehensive Income (OCI):

Actuarial gain/loss on the retirement benefits of employees are recorded in OCI.
Revaluation Reserve:

Revaluation of assets (Land) is recorded under the Revaluation Reserves and will be
utilised in accordance with the provisions of the Act.

34 Disclosure pursuant to Ind-AS 19 Employee Benefits:

Defined contribution plans
Provident fund:

Contribution towards provident fund for certain employees is made to the regulatory
authorities, same is in line with the Provident Fund and Miscellaneous Provisions Act, 1952.
The plan guarantees interest at the rate notified by the provident fund authorities. The
contribution by the employer and employee together with the interest accumulated
thereon are payable to employees at the time of their separation from the Company or
retirement, whichever is earlier. The benefits vest immediately on rendering of the services
by the employee.

Defined benefit plans

Gratuity:

The Company provides for gratuity for employees in India as per the Payment of Gratuity
Act, 1972. Employees who are in continuous service for a period of five years are eligible for
gratuity. The amount of gratuity payable on retirement/termination is the employees last
drawn basic salary per month computed proportionately for 15 days salary multiplied for
the number of years of service.

As per Actuarial Valuation as on 31st March, 2025 and 31st March, 2024 amounts
recognised in the financial statements in respect of Employee Benefit Schemes are as
follows:

a Debt Equity ratio (times): Increase in the ratio is mainly on account of increase in long
term borrowing by the Company during the previous year, as compared to previous
year

b Return on Equity Ratio (times): Decrease in the ratio is mainly on account of decrease
in net profit during the year as compared to the previous year.

c Net Capital Turnover Ratio: Decrease in the ratio by 40% due to increase in net
working capital during the year as compared to previous year mainly due to increase
in inventory and receivables

d Net Profit/(Loss) Margin (%): Decrease in the current year due to decrease in
profitability during the year as compared to previous year.

37 Earnings/(loss) per share

"Basic EPS amounts are calculated by dividing the profit for the year attributable to equity
holders of the Company by the weighted average number of equity shares outstanding
during the year.

Diluted earnings /(loss) per share amounts are calculated by dividing the profit/loss
attributable to equity holders by the weighted average number of equity shares
outstanding during the year plus the weighted average number of equity shares that
would be issued on conversion of all the dilutive potential equity shares into equity shares."

For the purpose of the Company's capital management, capital includes issued equity
capital and all other equity reserves attributable to the equity holders of the Company. The
primary objective of the Company's capital management is to ensure that it maintains a
strong credit rating and healthy capital ratios in order to support its business and
maximise shareholder value and to ensure Company's ability to continue as going
concern.

The Company manages its capital structure and makes adjustments to it in light of
changes in economic conditions and the requirements of the financial covenants. To
maintain or adjust the capital structure, during the financial year ended March 2021, the
Company has carried out preferential issue of 13,50,000 Equity Shares & 19,75,00 0 4%
Compulsorily Convertible Debentures.

No changes were made in the objectives, policies or processes for managing capital during
the years ended 31 March, 2025.

Section 115JAA of the Income Tax Act, 1961 provides for tax credit in respect of MAT paid
under section 115JA (hereinafter referred to as 'MAT Credit') which could be carried forward
for set-off for fifteen succeeding years, in accordance with the provisions of the Income Tax
Act 1961. The amount of MAT credit would be equal to the excess of MAT over normal
income tax for the assessment year for which MAT is paid. The said MAT credit can be set
off only in the year in which the Company is liable to pay tax as per the normal provisions of
the act and such tax is in excess of MAT for that year.

The Company has paid MAT over and above normal tax assessment & such credit of Rs.
4,22,23,342 has been recognised as an asset in the books.

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk comprises three types of risk
interest rate risk, currency risk and other price risk such as equity price risk and
commodity risk. Financial instruments affected by market risk include borrowings, trade
and other payables, security deposit, trade and other receivables, deposits with banks.

The sensitivity analysis in the following sections relate to the position as at 31 March 2025
and 31 March 2024. The sensitivity of the relevant income statement item is the effect of the
assumed changes in respective market risks. The analyses exclude the impact of
movements in market variables on: the carrying values of gratuity and other post
retirement obligations and provisions.

Company's activities expose it to variety of market risks, including effect of changes in
foreign currency exchange rate and interest rate.

I) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest rates. At the reporting

B. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial
instrument or customer contract, leading to a financial loss. The Company is exposed to
credit risk from its operating activities such as primarily trade receivables and from its
investing activities, including deposits with banks and financial institutions, cash and cash
equivalent and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company's established policy, procedures and
control relating to customer credit risk management. Credit exposure risk is mainly
influenced by class or type of customers, depending upon their characteristics. Credit risk
is managed through credit approval process by establishing credit limits along with
continuous monitoring of credit worthiness of customers to whom credit terms are
granted. Outstanding customer receivables are regularly monitored.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the
Company in accordance with Company's policy.

Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future
cash flow and collateral obligations without incurring unacceptable losses. Company's
objective is to, at all time maintain optimum levels of liquidity to meet its cash and
collateral requirements. Company closely monitors its liquidity position and deploys a
robust cash management system. It maintains adequate sources of financing including
overdraft & debt from domestic at optimised cost.

The table below summarises the maturity profile of the Company's financial liabilities
based on contractual undiscounted payments.

45 CSR Schedule

At Sintercom, we attempt to constantly keep reshaping our Corporate Social
Responsibility (“CSR") initiatives and realign ourselves to better suit the government's
vision for social development. This belief in giving back has driven us to accomplish more
every year, through our CSR efforts under the governance of our CSR Committee Leaders.

Our CSR policy aims to have a dedicated approach to the development of the community
by expanding in the areas of Village/rural Development (works on major indicators like -
livelihood, health, education, and internal roads), primary, secondary and tertiary
education for the underprivileged children, skills development, health and hygiene,
cleanliness, Swachh Bharat, women empowerment, and ecological protection.

During the year, CSR is not applicable for the Company. Hence no new project has been
undertaken during the year.

47 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested any amount in Crypto currency or Virtual
Currency during the financial year ended 31st March 2025. The company does not hold any
Crypto or Virtual currency as at the reporting date.

No deposit or advance from any person for the purpose of trading or investing in Crypto
currency or Virtual currency was received by the company.

48 As per Section 248 of the Companies Act, 2013, there are no balances outstanding with
struck off companies.

49 During the year the Company is not declared wilful defaulter by any bank or financial
institution or other lender.

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

51 Utilisation of Borrowed funds and share premium:

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

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

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

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

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

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

52 Details of benami property held

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

53 Compliance with number of layers of companies

The Company does not have any subsidiaries. Hence compliance with the number of
layers of companies as prescribed under section 2(87) of Companies act, 2013 and
Companies (Restriction on Number of Layers) Rules, 2017 are not applicable to the
Company.

54 Compliance with approved scheme(s) of arrangements

The Company has not entered into any approved scheme of arrangement which has an
accounting impact in current or previous financial year.

55 Undisclosed income

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

56 Long Term & Derivative Contracts

There are no long-term contracts including derivative contracts for which provision is
required to be made for material foreseeable losses in the financial statements, as per the
applicable law or accounting standards.

57 Valuation of PPE, intangible asset and investment property

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. The Company does
not have investment property.

58 Sintercom(SIL) uses SAP-S4 HANA as the accounting software. SAP ensures an audit trail,
providing standard functionality and logging in all changed data in the system. This
functionality and audit trail feature in SAP has been operational throughout the year for all
relevant transactions recorded through the application at SIL.

At SIL, accounting documents are used to record all business transactions - posted
documents are stored in SAP for every transaction and a financial document once posted
cannot be deleted or changed for data points impacting financials. The SAP environment
at SIL is appropriately governed and only authorised users can make postings in SAP, while
interacting with the system through the application layer. Normal/regular users are not
granted nor have direct SAP-DB (database) or super user level access which would allow
them to make any changes to financial documents directly which have already been
posted through the application.

To operate the SAP-application and the SAP-DB, the system necessarily requires a set of
super-users to have DB-level accesses. These super-users are obligated to perform
system related tasks. They are not allowed to carry out any direct changes/edits to
financial transactions in the SAP-DB, which if carried out is ill-legal. In the event of an
unauthorised change by a super user specifically, these can be detected through an
investigative approach and/or using services provided by SAP as part of their financial
data quality check service, which validates the consistency of financials based on the
request of the client. Therefore, while the SAP-DB at the moment does not have the
concurrent real time audit trail feature in view of its infeasibility, the tracking of changes
can be done through a focused enquiry process.

59 Information about business segments

The Company is operating in one segment only i.e. Sintered Metal Components & Auto
Components.

60 Previous Year Figures

The previous year figures have also been reclassified to conform to this year's
classification.

As per our attached Report of even date For and on behalf of the Board of Directors

Sintercom India Limited

For Patki & Soman Jignesh Raval Hari Nair

Chartered Accountants Managing Director Chairperson

Firm Registration No. 107830W DIN: 01591000 DIN: 00471889

Shripad S. Kulkarni Pankaj Bhatawadekar Prathama Gugale

Partner Chief Financial Officer Company Secretary

Membership No. 121287 Membership No. A46385

Pune, May 12, 2025 Pune, May 12, 2025