Punjab National Bank - GECL - Repayable in 48 equal monthly instalment after 12 months moratorium ended on August, 2022 and carries interest rate of MCLR plus 1% i.e. 8.75% p.a. on reporting date subject to maximum of 9.25% p.a. Monthly EMI of Rs. 30.73 lakhs and outstanding as on 31 March 2026 Rs. 252.04 lakhs.

Loan from Punjab National Bank is secured by first exclusive charge on entire fixed assets of the Company, except the property mortgaged with Indian Bank and personal guarantee of Mr. Rajiv Kapoor and Mrs. Deepika Kapoor. Additionally pledge of 8095 shares of the Company by Mr. Rajiv Kapoor.

Indian Bank - GECL - 153.06 Lakhs loan is repayable in 48 equal monthly instalment of Rs. 7.00 lakhs after 24 months moratorium ended on April, 2024 and carries interest rate of MCLR plus 1% i.e. 8.75% p.a. on the reporting date . Secured by hypothecation of stock and book debt and second charge on industrial land standing in the name of Company at Kanwarsika, District. Nuh. (Mewat), Haryana. and personal guarantee of Mr. Rajiv Kapoor and Mrs. Deepika Kapoor.

Axis Bank - (Vehicle loan) - Vehicle loan of Rs. 24.00 lakhs which is repayble in monthly EMI of Rs. 0.51 lakh over a period of five year and caries a interest rate of 10.10% p.a

Unsecured, interest free loan from a Promoter Director and Director of Rs. 866.45 lakhs, (31 March 2025: Rs. 653.25 lakhs).

All charges are registered with Registrar of Companies (ROC) within statutory period by the Company.

Term Loan were applied for the purpose for which the loans were obtained.

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

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

(a) Performance obligations

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

(b) Transaction Price

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

(c) Determining the timing of satisfaction of performance obligations

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

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

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

(e) Cost to obtain contract or fulfil a contract

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

(a) In respect of above, future cash outflows are determinable only on receipt of judgements / decisions pending at various forums/ authorities. Furthermore, there are no possibilities of any reimbursements to be made to the company by any third party.

(b) Department of Goods and Services Tax, Gautambudha Nagar, Govt. of Uttar Pradesh has raised demand of Rs. 21.06. lakhs against mis-match of ITC as per GSTR-3B and GSTR-2A and levied interest/penalty thereon. The Company has filed appeal against the impugned order to appellate authority and made payment under protest of Rs. 6.84 lakhs.

(c) The Company has filed appeal before Hon'ble Customs, Excise and Service Tax Appellate Tribunal (CESTAT) against the order of Assistant Commissioner of Customs (Ports) in respect of certain plant & machinery referred to in note no. 2.1 imported under EPCG license scheme, for making payment of Custom Duty of ? 304.98 lakhs (net of pre-deposit of ? 32.48 lakhs) without any interest, redemption fine and penalty based on legal advice and other favourable judgement in a similar case. The potential interest liability, redemption fine and penalty, if the CESTAT decision is adverse to the Company, is estimated at Rs. 786.63 lakhs. The same has not been provided for in the books and continues to be disclosed as a contingent liability.

37[ EXCEPTIONAL ITEM

The Company has issues related to interest costs on borrowings and has thus decided to diversify and focus on other areas of automotive business. The management is initiating Marketing, Development and Manufacturing of electric 3 wheeler (L-5) category and build its own Brand. Since the attention of the management is focused on improving automotive/electric vehicle operations, due to this, there is a likely fall in the NRV of individual items requiring provision for impairment, during previous the year, the management has carried out such evaluation/assessment. Post evaluation of all items of inventory lying unconsumed (either due to ageing or utility or obsolescence) to suit the nature of production, during the previous year the management has provided for an amount of Rs. 925.80 lakhs. This charge to statement of profit and loss has been considered as an exceptional item.

Gratuity (Unfunded)

In accordance with Indian law, the Company operate a scheme of gratuity which is a defined benefit plan. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment in accordance with the provisions under the Code on Social Security, 2020 or as per the Company Scheme, as applicable. Vesting occurs upon completion of contractual period of continuous years of service as defined in the Code on Social Security, 2020

Disclosure as required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2018 (as amended) in respect of transactions with entities viz. Radhika Securities Private Limited belonging to the promoters/promoter group which holds 10% or more shareholding in the Company are given above.

40 Operating Segment as per Ind AS 108

The managing director of the company has been identified as the chief operating decision maker (CODM) as defined by Ind AS.108 - Operating Segments. The CODM evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by industry classes. Accordingly, segment information has been presented. In the opinion of the management, there is only one segment -”Auto Components” which includes products of similar nature, risks and returns. There are no separate reportable segments (business and/ or geographical)

Major customer

Revenue from two customers of the Company is Rs. 5,057.67 lakhs (previous year three customers Rs. 4,613.52 lakhs), which is more than 10% of the Company's total revenue.

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

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

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

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

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

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

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

c) During the year ended March 31, 2026 and March 31, 2025 there were no transfers between Level 1 and Level 2 fair value measurements, and no transfer into and out of Level 3 fair value measurements.

(vii) Fair Value Hierarchy

Explanation to the fair value hierarchy

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

Level 1

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

Level 2

The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration included in level 3.

42[ FINANCIAL RISK MANAGEMENT

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

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

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

a) Credit Risk

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

Credit risk management

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

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

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

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

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

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

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

Exposure to credit risk

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

None of the Company's cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables and other receivables, and other financial assets that are neither impaired nor past due, there were no indications as at March 31,2026, that defaults in payment obligations will occur.

Financial assets that are neither past due nor impaired.

None of the Company's cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables and other receivables, and other financial assets that are neither impaired nor past due, there were no indications as at March 31,2026, that defaults in payment obligations will occur.

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

b) Liquidity Risk

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

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

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

c) Market risk

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

i) Foreign Exchange Risk

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

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

ii) Interest Rate Risk

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

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

4^ CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE:

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

45 LEASES (Ind AS 116)

As Lessee

The Company has taken certain offices and residential premises/facilities under operating lease/sub-lease agreements for short period. The aggregate lease rental of ? 61.90 lakhs (previous year ? 62.40 lakhs) has been charged to the Statement of Profit and Loss.

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

Compliance with number of layers of companies:

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

47 RELATIONSHIP WITH STRUCK OFF COMPANIES:

No transaction has been made with the company striking off under section 248 of The Companies Act, 2013 or section 560 of Companies Act, 1956. During the year ended 31.03.2026 and year ended 31.03.2025.

48 UNDISCLOSED INCOME:

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

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

50 The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended 31 March 2026 and 31 March 2025.

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

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

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

54 The Company does not have any Subsidiary, Associate or Joint venture as at 31 March 2026. Accordingly the Company is not required to publish the consolidated financial statement.

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