(S) Provisions, Contingent Liabilities and Contingent Assets

(i) Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a 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. The expense relating to a provision is presented in
the statement of profit and loss.

(ii) Contingent Liabilities:

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 recognised because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised
because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its
existence in the financial statements.

(iii) Contingent Assets: Contingent Assets are disclosed, where an inflow of economic benefits is probable.

(T) Investments

Equity investments are measured at fair value, with value changes recognised in Other Comprehensive Income, except
for those mutual fund for which the Company has elected to present the fair value changes in the Statement of Profit
and Loss.

(U) Trade Receivables

Trade receivables are recognised initially at their fair value and subsequently measured at amortised cost using the
effective interest method, less provision for impairment.

(V) Trade and Other Payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year
which are unpaid. Trade and other payables are recognised, initially at fair value, and subsequently measured at
amortised cost using effective interest rate method.

(W) Operating Cycle

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their
realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose
of classification of its assets and liabilities as current and non current.

41 CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders. The primary objective of the Company capital management is to maximise the shareholder
value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. The Company monitors capital using a gearing ratio and is measured by net debt
divided by total capital plus net debt. The Company's includes net debt is equal to trade and other payables less cash and cash
equivalents.

(A) 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. Credit risk encompasses the direct risk of default, risk of deterioration of creditworthiness as well as
concentration risks. The Company is exposed to credit risk from its operating activities (primarily trade receivables), deposits
with banks and loans given.

Credit Risk Management

For financial assets the Company has an investment policy which allows the Company to invest only with counterparties
having credit rating equal to or above AAA and AA. The Company reviews the creditworthiness of these counterparties on an
ongoing basis. Another source of credit risk at the reporting date is from trade receivables as these are typically unsecured.
This credit risk has always been managed through credit approvals, establishing credit limits and continuous monitoring the
creditworthiness of customers to whom credit is extended in the normal course of business. The Company estimates the
expected credit loss based on past data, available information on public domain and experience. Expected credit losses of
financial assets receivable are estimated based on historical data of the Company. The Company has provisioning policy for
expected credit losses. There is no credit risk in bank deposits which are demand deposits. The creditors risk is minimum in
case of entity to whom loan has been given.

The maximum exposure to credit risk as at 31 March 2025 and 31 March 2024 is the carrying value of such trade receivables as
shown in note 15 of the financials.

(B) Liquidity Risk

The Company's principal sources of liquidity are “cash and cash equivalents” and cash flows that are generated from
operations. The Company has no outstanding term borrowings. The Company believes that its working capital is sufficient
to meet its current requirements. Additionally, the Company has sizeable surplus funds invested in fixed income securities or
instruments of similar profile ensuring safety of capital and availability of liquidity if and when required. Hence the Company
does not perceive any liquidity risk.

(c) Market Risk

Foreign Currency Risk

The Company significantly operates in domestic market. Though very insignificant portion of export took place during the
financial year where generally payment received in advance. Hence foreign currency risk towards export is insignificant.

The Company also imports certain materials the value of which is also not material as compared to value of total raw materials.
Currently, Company does not hedge this exposure. Nevertheless, Company may wish to hedge such exposures.

Open exposure

The Company's exposure to foreign currency risk which are unhedged at the end of the reporting period is as follows:

(ii) Defined Benefit Plan

(a) Gratuity:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 to 26 days/one month
salary last drawn for each completed year of service depending on the date of joining. The same is payable on termination of
service, retirement or death, whichever is earlier. The benefit vests after 5 years of continuous service.

(b) Leave Encashment:

The Company has a policy on compensated absences which is applicable to its executives jointed upto a specified period and
all workers. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an
independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be
paid as a result of the unused entitlement that has accumulated at the Balance Sheet date.

The plans of the Company exposes to actuarial risks such as Investment Risk, Interest rate risk,salary risk and longitivity risk.
Theses risks may impact the obligation of the Company.

(c) Major Category of Plan Assets

The Company has taken plans from Life Insurance Corporation of India

(d) The following tables set out the funded status of the gratuity and leave encashment plans and the amounts recognised in
the Companies financial statements as at 31 March 2025 and 31 March 2024.

** Notes:

1. The Company gives Warranties at the time of Sales of Main Products to the customers. Under the terms of Contract of Sales, the
Company undertakes to make good by replacement or repairs, Manufacturing defects that arise within 1-2 years from the date of
sales. A provision has been recognised for the expected Warranty claims on products sold based on past experience.

2. The Company gives incentives to its senior management staff based on performance of the Company.

3. The Company gives incentives to its management staff based on their performance.

48 LEASES:

As a lessee, the Company previously classified leases as operating or finance leases based on its assessment of whether
the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to the
company. Under Ind AS 116, the company recognizes right of use assets and lease liabilities for most leases i.e. these
leases are on balance sheet.

51 a) The Board of Directors of Hercules Hoists Limited (“HHL” or “Demerged Company”) had approved of Scheme of

Arrangement for the demerger of its manufacturing business into Indef Manufacturing Limited,(“ IML” or “Resulting
Entity) in their meeting held on September 23, 2022. The appointed date for the demerger is October 1, 2022. On
August 2, 2024, the Hon'ble National Company Law Tribunal (“NCLT”) granted requisite approval for the scheme.
The certified true copy of the NCLT order, along with the sanctioned scheme, was filed by both companies with the
Registrar of Companies on September 30, 2024. Consequently, the scheme became effective from September
30, 2024. In line with the accounting requirements of Appendix A to Ind AS 10 (“Distribution of Non-cash Assets to
Owners”), the investment made by Hercules Hoists Limited in Indef Manufacturing Limited has been cancelled on
October 14, 2024 as per scheme of demerger, resulting in Indef Manufacturing Limited becoming a separate entity and
ceasing to be a wholly owned subsidiary.

b) As consideration for the demerger, the Company has issued equity shares to each shareholder of Hercules Hoists
Limited on a 1:1 basis on October 14, 2024. The Company had filed listing application to stock exchanges on October
29, 2024 for listing of 3,20,00,000 Equity shares and received in-principle approval from BSE on December 23, 2024
and from NSE on January 17, 2025. The Company was listed on NSE and BSE on February 21, 2025.

c) The Ind AS financial information of the Company for the comparative period has been restated to include the financial
statements and other relevant financial information of the Demerged unit. The accounting treatment and presentation
of the De-merger in the financial statements are in accordance with the Scheme of De-merger as approved by the
NCLT and in compliance with the requirements of Ind AS 103 - Business Combinations.

52 During the quarter ended September 30, 2024, the Scheme of Arrangement between Hercules Hoists Limited (“Demerged
entity”) and Indef Manufacturing Limited (“Resulting entity”) and their respective shareholders (“Scheme”) became
effective after regulatory approvals and conditions precedent. Accordingly, as per the Scheme, the demerger of Demerged
entity into Resulting entity has been accounted under the pooling of interest method retrospectively as prescribed in IND
AS 103 Business Combinations of entities under common control. The previous year corresponding numbers have been
accordingly restated. The impact on these results is as under

53 No proceeding has been initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules

54 The Company has no transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of
the Companies Act, 1956.

55 The Company has neither traded nor invested in crytpo currency or virtual currency during the year.

56 The Company has compliance with section 135 and related provisions of the Corporate Social Responsibility. Please refer
director report for the details deport on Corporate social responsibility

57 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the
Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under
active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are
notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and
the related rules to determine the financial impact are published.

58 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as
per the schedule III of Companies Act, 2013.

As per our report of even date attached FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

FOR KANU DOSHI ASSOCIATES LLP SHEKHAR BAJAJ AMIT BHALLA

CHARTERED ACCOUNTANTS CHAIRMAN MANAGING DIRECTOR

Firm’s Registration Number: 104746W/W100096 DIN- 00089358 DIN-08215712

KUNAL VAKHARIA BIJAY KUMAR AGRAWAL VINEESH THAZHUMPAL

PARTNER CHIEF FINANCIAL OFFICER COMPANY SECRETARY

MEMBERSHIP NO. 148916

PLACE : MUMBAI
DATED : MAY 27, 2025