Cash and cash equivalents comprise cash balances on hand, bank balance and term deposits with banks.

Cash and cash equivalents as of 31 st March, 2025 include restricted bank balances of Rs.25.62 Lakhs (2024 - Rs.386.28 Lakhs). The restrictions are primarily on account of deposits with bank held as security against interest and repayment of borrowings lying in the form of OD limit , term loans and balance with banks against payment of unpaid / unclaimed dividends.

The Company has issued only one class of shares referred to as Equity Shares having a par value of Rs.10/-. Each Equity Shareholder is entitled to one vote per share.

* Authorized share capital of the company has been increased to Rs. 1050 Lakhs from Rs 350 Lakhs via shareholders approval dated 15th March, 2025 through Postal ballot.

** Persuant to the approval of the shareholders on dated 15th March, 2025 via postal ballot and subsequent approvals from stock exchange i.e. BSE Ltd, the company has issued bonus shares on 4th April, 2025 in the ratio of 1:1 i.e one (1) equity share of face value of Rs. 10/- each for every one (1) existing equity share of face value of Rs. 10/-. Accordingly 23,97,713 equity shares got allotted to the eligible share holders on the record date (i.e April 4, 2025) as Bonus Equity Shares. Furtherance to this, issued and paid-up Equity Share Capital of the company would get increased to Rs 479.54 Lakhs from Rs 239.77 Lakhs by capitalising General Reserve. Dividend Paid : The Board of Directors in their meeting held on 29th May, 2024 opted for proposing a dividend of Rs. 4.50 per Equity Share for the financial year ended 31 -03-2024. Dividend as proposed by the board of directors was approved by the shareholders in their Annual General Meeting held on 25th Sep, 2024. Proposed Dividend : The company declares and pays dividend in Indian Rupees. The Board of Directors in their meeting held on 23rd May, 2025 proposed a Dividend of Rs. 2.50 per Equity Share for the financial year ended 31 -03-2025. Dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. Upon approval of the proposed dividend in the Annual General Meeting, same would result in a cash outflow of Rs. 119.89 Lakhs and the same shall be taxable in the hands of shareholders.

Loan from Banks is in nature of Vehicle Loan with ICICI Bank and is repayable over a period of maximum upto June, 2028.

Drop Line Overdrafts with ICICI Bank are repayable over a period of maximum upto April, 2029 and carry interest rates which are linked to Repo rate with spread of 3.00% Per annum.

2.29 CAPITAL MANAGEMENT

Equity share capital and other equity are considered for the purpose of company's capital management.

The company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to the shareholders. The capital structure of the company is based on management's judgment of its stategic and day to day needs with a focus on total equity so as to maintain investors, creditors and market confidence.

The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The company may take appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

In addition to above paid dividends, dividend of Rs. 2.50 per equity share proposed by the board of directors for the financial year ended 31 st March, 2025 is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Financial Risk Management Framework

Company activities expose to financial risks viz Credit risks and Liquidity risks.

Credit Risk: -

Credit Risk is the risk of financial loss to the company if a customer or counter party to financial instrument fails to meet its contractual obligations, and arises principally from the company's recoverable from customers, deposits with banks and other financial instruments. The carrying amount of financial assets represents the maximum credit risk exposures.

Credit Risk management

- Majority of the company’s receivables pertain to OEM's. Based on the overall credit worthiness of receivables and looking into their past record, company expects minimum risks with regard to its outstanding receivables. There is standard mechanism to periodically track the outstanding amounts and assess the same with regard to its realization and creates the provision against dues doubtful to realize. Company expects all the debtors to be realized in full except the provisions stated in the financials.

- Credit risk on cash and cash equivalents is limited as company generally invests in Fixed deposits with banks.

Liquidity Risk: -

Liquidity risk is the risk that the company will encouter the difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficent liquidity to meet its liabilities, when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company's reputation.

- Liquidity Risk management

The company's primary source of liquidity includes bank deposits, credit facilities from bank and cash flows from operating activities. The company manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast and actual cash flows and by matching profiles of financial assets and liabilities.

Financial Liabilities include trade payables, capital subsidy, unpaid / unclaimed dividends etc which are in the normal course of business having maturity of less than 1 year and interest bearing loans.

Company believes its revenue, along with proceeds from financing activities will continue to provide the necessary funds to cover its short term liquidity needs. In addition, the company projects cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios and maintaining debt financing plans.

Following is the tabulated summary of balance contractual maturity for its financial liabilities with agreed repayment periods based on the date on which these are required to pay.

The Company had a working capital of Rs. 1384.13 Lakhs including unrestricted cash and cash equivalents of Rs.160.39 Lakhs as at 31st March'2025.

The Company had a working capital of Rs.706.62 Lakhs including unrestricted cash and cash equivalents of Rs.123.42 Lakhs as at 31 st March'2024.

Accordingly, company does not perceive any liquidity risks.

Explanation for change in the ratios by more than 25%:

(i) Debt Service Coverage ratio (Times) :- Debt Service Covergae ratio for current year improved over previous year primarily due to significant repayment of debts and increase in earnings during the year.

(ii) Inventory Turnover Ratio (Times) :- Inventory Turnover ratio for current year increased against previous year primarily due to change in product mix during the year.

(iii) Trade Payable Turnover Ratio (Times) : - Trade Payable Turnover ratio for current year increased against previous year primarily due to change in product mix during the year.

(iv) Return on Investment (%) :- Return on Investment % for current year improved against previous year primarily due to increase in interest rate on FDRs during the year.

2.34 CURRENT ASSETS / CURRENT LIABILITIES

All current assets, loans and advances are in the ordinary course of business and have a value on realisation at least equal to the amount at which they are stated in the financials.

2.35 SEGMENT REPORTING

Company’s principal business covers two primary business segments, viz.“Automobile Components” and “Agriculture Implements”. Segment revenue, segments results, segment assets and segment liabilities include the respective amounts identifiable to each of the segments and also include amount allocable on reasonable basis. Items which are not directly relatable to the identified segments are shown as unallocated.The disclosure requirements of Ind AS - 108 “Operating Segments” are given below: -

(i) It is not feasible to furnish quantitative information of all the components in view of large number of items varied in size and nature.

Quantities and values of all items in Analysis of Raw Materials consumed represent the issues from stores made during the year. The figure of others is a balancing figure, based on total consumption shown as above and includes adjustments for excess / shortage found on physical verification.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to previous period.

2.40 COMPENSATED ABSENCES (UNFUNDED)

The leave obligations cover the Company’s liability for sick and casual leaves. The Company does not have an unconditional right to defer settlement for the obligations shown as current provision balance above.

However, based on the past experience, the company does not expect all employees to take the full amount of accrued leave or require payments within the next 12 months, therefore based on the independent actuarial report only a certain amount of provision has been presented as current and remaining as non-current. An amount of Rs. 35.36 Lakhs (2024 Rs. 56.36 Lakhs) has been recognized in the statement of profit & loss.

2.46 Previous year figures have been regrouped/ recasted / rearranged wherever necessary to make them comparable.