Notes to Accounts of Adroit Industries (India) Ltd.

o) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized If, as a result of a past event, the company has a present legal or constructive obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to settle the obligation and there Is reliable estimate of the amount of obligation.

A disclosure lor contingent liabilities is made where there is a possible obligation arising from past events, the existence of which will be confirmed
only on the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation
that arts* from past events where it is not probable that an outflow of resources will be required to settle or a reliable estimate of the amount can not
be made.

p) Leases

As a Lessee

A lease Is classified at the inception date as finance lease or an operating lease. Leases under which the company assumes substantially all the risks
and rewards of ownership are classified as finance leases. When acquired, such assets are capitalized at fair value or present value of the minimum
lease payments at the Inception of lease, whichever Is lower. Least payments are apportioned between finance charges and reduction of the lease
liability so as to achieve a constant rate of Interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the
statement of profit and loss.

Other leases are treated as operating leases, with payments are recognized as expense in the statement of profit and loss on a straight line basis over
the lease term.

q| Impairment of Non Financial Assets

The company assesses at each reporting date whether there is any objective evidence that a non-finandal asset or a group of non-flnancial assets are
impaired. If any such indication exists, the company estimates the amount of impairment loss For the purpose of assessing impairment, the smallest
identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash Inflows from other assets or
group of assets is considered as cash generating unit If any such Indication exists, an estimate of the recoverable amount of the individual usset/cesh
generating unit is made.

An impairment loss Is calculated as the difference between an asset’s carrying amount and recoverable amount Losses are recognized in profit or loss
and reflected in an allowance account When the company considers that there are no realistic prospects of recovery of the asset the relevant
amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring
after the Impairment was recognized, then the previously recognized impairment lass is reversed through profit or loss.

r] Financial Instruments

A financial instrument is any contract that gives Use to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial instruments also include derivative contracts such as foreign currency foreign exchange forward contracts, interest race swaps and currency
options: and embedded derivatives in the host contract

I) Financial Assets

1 Classification

The Company shall classify financial assets and subsequently measured at amortised cost fair value through other comprehensive Income or fair
value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the
financial asset

2 Initial Recognition and Measurement

All financial assets are recognised initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset in the case
of financial assets not recorded at fair value through profit or loss. Purchases or sales of financial assets that require delivery of assets wtUUn a time
frame established by regulation or convention m die market place (regular way trades) are recognised on the trade date. l.e. the date that the
comoanv commits to purchase or sell the asset

Measured >t Amartlwj Cost

A financial asset la measured at die amortised cost if both the following conditions am met

a] The asset Is held within a business model whose obfecdve Is to hold assets for collecting contractual cash (tows, and

b) Contractual terms of the asset give rise on specified dates to cash Bows that are solely payments of principal and interest (SFPI) on the principal
amount outstanding.

After Initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.
Amortised coat Is calculated by taking into account any discount or premium on acquisition and fees or costs that are an Integral part of the EIR. The
QR amortisation Is Included In finance income In the statement of profit and loss. The losses arising from Impairment are recognised in the statement
of orotic and loss. This cateuorv aenerallv applies to trade and other receivables.

Measured at Fair Value Through Other Comprehensive Income (FVOC1)

A financial asaet Is measured at FVOC1 if both of the fallowing criteria are met

a) The objective of die business model is achieved both by collecting contractual cash flows and selling the financial assets and

b) The ascot''s contractual cash flows represent SWL

Financial Aeeet et Fair Value Through Profit and Lees (FVTPL)

FVTPL is a residual category for financial asset. Any financial asset, which does not meet the criteria far categorization as at amortized cost or as
FVOa. Is classified as at FVTPL

In addition, the group company may elect to classify a financial asset, which otherwise meets amortized cost or FVOCI criteria, as at FVTPL However,
such election is allowed only If doing so reduces or eliminates a measurement or recognition Inconsistency (referred to as ‘accounting mismatch’).

Financial assets included within the FVTPL category are measured at fair value with all changes recognised in the profit and loss.

3 Derecognition

A financial asset (or. where applicable, a part of a financial asaet or port of a company of similar financial assets) Is primarily derecognised (Lcl
removed from the company''s balance sheet) when:

a) The rights to receive cash flows from the asset have expired, or

b) The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows hi hill
without material delay to a third party under a ’pass-through'' arrangement; and either (a) the company has transferred substantially all the risks and
rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset

c) Whan (he company has transferred Its rights to receive cash flows from an asset or has entered into a pass-through arrangement It evaluates If
and to what extent it has retained the risks and rewards of ownership. When It has neither transferred nor retained substantially ad of the risks and
rewards of the asset nor transferred control of the asset the company continues to recognise the transferred asset to the extent of the company''s
continuing involvement In that case, the company also recognises an associated liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that the company has retained.

d) Continuing Involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of
the asset and the maximum amount of consideration that the company could be required to repay.

4 Impairment of Financial Assets

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the
following financial assets and credit risk exposure;

a) Financial assets that are debt instruments, and are measured at amortised cost eg., loans, debt securities, deposits, and bank balance.

b) Trade receivables.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on:

i. Trade receivables which do not contain a significant financing component.

The application of simplified approach does not require the Company to track changes In credit risk. Rather, it recognises impairment loss allowance
based on lifetime ECLs at each reporting date, right from its initial recognition

it For recognition of impairment Iocs on other financial assets and risk exposure; the Company determines that whether there has been a significant
increase In the credit risk since Initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for Impairment lots.
However, If credit risk has increased significantly. H fee me ECL is used If. In a subsequent period, credit quality of the instrument improves such that
there Is no longer a significant Increase in credit risk since Initial recognition, then the .entity reverb to recognising impairment loss allowance based
on 12-month ECL

1 Financial liabilities
1 Classification

The Company classifles all financial liabilities as subsequently measured at amortised cost, except far financial liabilities at fair value
through prefit or loss. Such liabilities, including derivatives this are liabilities, shall be subsequently measured at fair value.

Initial recognition and measurement

Financial liabilities are classified, at Initial recognition, as financial liabilities at fair value through profit or loss or amortised costs.

All financial liabilities are recognised initially at fair value and in the cate of faens and borrowings and payables, net of directly attributable
transaction costs

The company''s financial liabilities include trade and other payables, loans and borrowings, financial guarantee contracts and derivative financial
Instruments.

Financial liabilities at fair value through profit or loss.

Financial liabilities at fair value through profit or lost Include financial liabilities held far trading end financial Habib ties designated upon Initial
recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading If they are Incurred for the purpose of
repurchasing In the near term. This category alto Includes derivative financial Instruments entered Into by the group Company that are not
designated as hedging instruments In hedge relationships as defined by Ind-AS 109. Separated embedded derivatives are also dassIftMa^bpId for
tradln* unless thev are designated as effective hedeln* Instruments.

2 Cains or Losses on Liabilities Held For Trading are Recognised in The Profit or Loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if
the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL. fair value gains/ losses attributable to changes in own credit risk are
recognized in OCL These gains/loss are not subsequently transferred to P&L However, the company may transfer the cumulative gain or loss within
eoultv. Ail other changes in fair value of such liability are recognised in the statement of oroflt or loss

3 Loans and Borrowings

After initial recognition. Interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method Cains and losses
are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR The
EIR amortisation is included as finance costs in the statement of profit and loss.

This category generally applies to Interest-bearing loans and borrowings.

4 Derecognition

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 Drofit or loss.

5 Derivative Financial Instruments

The company uses derivative financial instruments, such as forward currency contracts. Interest rate swaps and forward commodity contracts, to
hedge its foreign currency risks, interest rate risks and commodity price risks, respectively. 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 lair value Is negative.

t Measurement of Fair Values

The Company''s accounting policies and disclosures require the measurement of fair values, for financial instruments.

The Company has an established control framework with respect to the measurement of fair values. The management regularly reviews significant
unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values,
then the management assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of
tnd AS. including the level in the fair value hierarchy in which such valuations should be dassified.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorised into
different levels in a fair value hierarchy based on the inputs used In the valuation techniques as follows.

Level 1: quoted prices (unadjusted) m active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (Le. as prices) or indirectly (Le.
derived from prices).

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the Inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement
is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that Is significant to the entire measurement

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
Recent Accounting Pronouncement

The Ministry of Corporate Affairs notified new standards or amendment to existing standards under Companies (Indian Accounting Standards) Rules
as issued from time to time The Company applied following amendments for the first-time during the current year which are effective from April 1,
2025.

In August 202S. MCA notified the following amendments applicable w.e.f. April 1,202S:

1. lnd AS 1, Presentation of Financial Statements

The amendment relates to classification of liabilities as current or noncurrent and non-current liabilities with covenants. In the context of classifying
a liability as current It removes the requirement of existence of i right to defer settlement for at least 12 months after the reporting date and instead
requires that the said right should exist on the reporting date and have substance The amendment also introduces guidance on classification of
liabilities with covenants. The Company has no impact of these amendments in its classification criteria of current and non-current liabilities.

2. lnd AS 7, Statement of Cash Flows and lnd AS 107. Financial Instruments: Disclosure,

The amendment In lnd AS 7 requires to Inform users of financial statements of the existence of supplier finance arrangements and explain the nature
of the arrangements, the carrying amount of liabilities and the range of payment due dates lnd AS 107 has been amended to add supplier finance
arrangements as a factor that may cause concentration of liquidity risk. The Company has reviewed the amendment and based on its evaluation has
determined that it does not have anv impact in its financial statements

3. lnd AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments provide a temporary
mandatory relief from deferred tax accounting for top-up tax and disclose that they have applied the relief. This relief Is immediate and
applies retrospectively. Based on its evaluation has determined that it does not have any impact in the financial statements.

4. lnd AS 21 - The Effects of Changes in Foreign Exchange Rates - In May 2025, MCA notified amendments to lnd AS 21 - applicable
we.f. April 1. 2025. The Company has reviewed the amendment and based on Its evaluation has determined that It does not have any
significant impact in its financial statements,

(0 NnfcMrU

Mark* riah b tha rtafc af rtiWfi A* urtK pKa am accaua* at IMyi ndunja naaa, Inarm ran and
Proluci prbaa. wMdi dial affact da* Coaapaay''a lacorna nr Hi* vain* of W hotaaaa of la knatidal liutnimcoo.
Ttaa aHnWaa al raartat rhk imupiai al b ID naoapa ad control atarkn abk caponr* n*Mn aazapOMa
parmaatm. «hdn optimums Ota rtturaa

(al Oammqrrtt

Tha fluctuation la farol*>l currancy etflanfa ratal may hava Impact am tha profit aid Ion account, whan lay
tranaanbn hat mora than mom aimncy or wkara uaata/haMtaaaara daanabnnarl b a currancy other than tha
flmalooai currancy Of tha rooty Coamdarmg tha coantrtna and acoaoaalc aatykoamant la bUdi dm Company
oparata».lt» npantlran an luCtort In data actiOin (run fluctmBamlr aadaami ratal b Oaon gMitrtac. Tkarbttt
talnarlly rtlatt to (HictuaUaM at ILS. dollar and lira «baat the rtayacOvr luocttoaii carmactan Tha Company,
aa par Ha nak manapmtmt policy, ana hm»i rxclianp* and adaar dtrtntin haatraanMa primarily ao hadpf
(•fatso anckaapn and bitaraat rata aapaam Tha Company dm mat an darivoOn flnaactal Inatraanaots hr
tradh* or apectdeoae pwpeeea.

NOTE: 43 - SEGMENT REPORTING

(a) The Company is In the bull mm of manufacturing / marketing of Auto Part* and Components. This is the only activity performed and la
thus also the main source of risks and returns. The Managing Director and Chief Financial Officer of the Company has been identified as
tbs chief operating decision maker (CODM) as defined by lad AS 108, ''Operating Segments''. Accordingly, the Company has a single
reportable and geographical segment Hence; the relevant disclosures as per Ind AS 106, "Operating Segments'' are not applicable to the
Company.