11) Provisions and Contingent Liabilities

i. Provisions:

A provision is recorded when the Company has a present legal or constructive obligation as a result of
past events and it is probable that an outflow of resources will be required to settle the obligation and the
amount can be reasonably estimated.

Provisions are evaluated at the present value of management's best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. The discount rate used to determine the
present value is a pre-tax rate that reflects current market assessments of the time value of money and
the risks specific to the liability. The increase in the provision due to the passage of time is recognised as
interest expenses.

ii. Contingent Liabilities:

Whenever there is possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the entity or a present obligation that arises from past events but is not recognised because
(a) it is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability are
considered as contingent liability. Show cause notices are not considered as Contingent Liabilities
unless converted into demand.

iii. Contingent Assets:

The Company does not recognise contingent assets. If it is virtually certain then they will be recognised as
asset. These are assessed continually to ensure that the developments are appropriately disclosed in the
financial statements.

12) Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period is adjusted for events including a
bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split
(consolidation of shares). For the purpose of calculating diluted earnings per share, the net profit or loss for
the period attributable to equity shareholders and the weighted average number of shares outstanding
during the period are considered for the effects of all dilutive potential equity shares.

13) Cash and Cash Equivalents and Cash Flow Statement:

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term,
highly liquid investments maturing within three months from the date of acquisition and which are readily
convertible into cash and which are subject to only an insignificant risk of changes in value.

Cash flows are reported using the indirect method, whereby profit/(loss) before tax is appropriately
classified for the effects of transactions of non-cash nature and any deferrals or accruals of past or future
receipts or payments. In the cash flow statement, cash and cash equivalents include cash in hand, cheques
on hand, balances with banks in current accounts and other short- term highly liquid investments with
original maturities of three months or less.

14) Segment Reporting:

The Company operates in one business segment namely “Auto Components”. Hence reporting under this
standard is not applicable.

15) Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are
capitalized during the period of time that is necessary to complete and prepare the asset for its intended use
or sale. Other borrowing costs are expensed in the period in which they are incurred under finance costs.
During the year, the company has capitalized borrowing costs of Rs.96,18,119/-

a. Mr. Nitin Menon - Executive Chairman, Mr. R. D. Dixit -Managing Director and Arun R.Aradhye Whole time
Director & CFO are employees of the Company. Mr. M.L.Shinde, Mrs. Kailash A.Nevagi and Dr. Santosh Prabhu
Independent Directors are not paid any remuneration, only Sitting Fees are paid to them. The salary, perquisites
and remuneration paid are disclosed under Report on Corporate Governance ( point no.8.3 ) as details of
Remuneration and Sitting Fees paid to Directors.

b. Apart from above mentioned parties, following parties are also related parties of the Company. However, no
significant transactions took place with these parties during the year.

1. Menon Signature Pvt.Ltd.

2. Give Artisans Trust.

c. Mr. Nitin Menon & Menon United Pvt .Ltd. hold 10% or more shares in the Company.

17) Government Grants:

The Company has a policy to recognize Government Grants only when-

i) It has complied with the conditions attached to it and

ii) there is a reasonable assurance that it will be received. Grants related to assets are presented in the Balance
Sheet as deferred income and recognized in Profit and Loss account on systematic basis over the useful life of
the asset. Currently there are no such grants. Grants related to income are presented as part of Profit and Loss
account under “Other Operating Revenue”. Grants related to duty drawback refunds are accounted on receipt
basis as the time frame within which it will be received cannot be estimated. Government Grants in the form of
duty drawback accounted during current year is Rs 1,08,19,327/- (previous year Rs. 82,06,953/-).

111. Significant management judgment in applying accounting policies and estimation of Uncertainty

While preparing the financial statements, management has made a number of judgments, estimates and
assumptions about the recognition and measurement of assets, liabilities, income and expenses.

(i) Significant Management Judgment

The following are significant management judgments in applying the accounting policies of the Company that
have significant effect on the financial statements.

Recognition of Deferred Tax Assets/Liability

The extent to which deferred tax assets/Liability can be recognized is based on an assessment of the
probability that future taxable income will be available against which the deductible temporary differences and
tax loss carry-forwards can be utilized. In addition, careful judgment is exercised in assessing the impact of any
legal or economic limits or uncertainties in various tax issues.

(ii) Estimation of Uncertainty

Information about estimates and assumptions that have the most significant effect on recognition and
measurement of assets, liabilities, income and expenses is mentioned below. Actual results may be different.

a. Impairment of Non-Financial Assets

In assessing impairment, management has estimated economic usefulness of the assets, the recoverable
amount of each asset or cash- generating units based on expected future cash flows and use of an interest rate
to discount them. Estimation of uncertainty relates to assumptions about economically future operating cash

flows and the determination of a suitable discount rate.

b. Useful Lives of Depreciable Assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the
expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may
change the utility of assets including Intangible Assets.

c. Inventories

Management has carefully estimated the net realizable values of inventories, taking into account the most
reliable evidence available at each reporting date. The future realization of these inventories may be affected
by market-driven changes.

d. Defined Benefit Obligation (DBO)

Management's estimate of the DBO is based on a number of critical underlying assumptions such as standard
rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these
assumptions may significantly impact the DBO amount and the annual defined benefit expenses (as analysed
in Note No. 26 & 27).

e. Current and Non-Current Classification

All assets and liabilities have been classified as Current or Non-Current as per the Company's normal operating
cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products
and time between the acquisition of assets for processing and their realization in cash and cash equivalents,
the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current
classification of assets and liabilities.

A) Bajaj Finance Limited:- Loan of Rs.22 Crores is Sanctioned. The loan has a moratorium period of 12 months
(Interest to be served as an when applied). The total loan tenure is 66 months, including moratorium period. The
loan is repayable in 54 equated monthly principal installments starting August 2024. The rate of interest is
8.90%, The loan is secured by charge on entire immovable and movable fixed assets of the company located at
B-2. The loan is also secured by personal gaurantee of Mr.Nitin Menon

B) HDFC Bank Limited:- Loan of Rs.1.21 Crores. The total loan Tenure is 60 months . The loan is secured by
hypothication of Rooftop solar system. The rate of interest is 8.75%. The loan is also secured by personal
gaurantee of Mr.Nitin Menon.

In terms of Amendment to Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (the
CSR Rules 2021) effective from 22^nd January, 2021, if a Company fails to spend the prescribed CSR amount
during the year and such unspent amount pertains to any ongoing project, the Company shall transfer the
unspent amount to a special bank account to be opened by the Company in that behalf for that financial year in
any scheduled bank to be called the Unspent Corporate Social Responsibility Account within a period of 30
days from the end of the relevant financial year. There is no unspent amount under CSR as on 31^st March, 2025.

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

For M/s. A R N A & Associates, Chartered Accountants

p^ArTr^{EET JOSH}" NITIN menon r. d. dixit

Membership No • 1 77982 ^{Executive Chairman Mana}SⁱⁿS ^Director

UmN^e25l^P779^2BM⁹jijN7746 ^{DI7: 00692754 DIN} • ^00626827

ARUN ARADHYE SIDDHESHWAR KADANE

^p|ace : ^Ko|hapur Whole Time Director & CFO Company Secretary

Date • 15^th May, 2025 DIN : 03052587 Membership No. : A72775