Notes to Accounts of Thaai Casting Ltd.

Mar 31, 2025

12 Provisions and Contingent Liabilities:

A provision is recognised if, as a result of past event, the Company has a present legal obligation that can be
estimated reliably and it is probable that an outflow of economic benefit will be required to settle the obligation.
Provisions are determined by the best estimate of outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A
disclosure for a contingent liability is also made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. Where there is possible obligation or present
obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is
made.

13 Earnings Per Share:

Basic Earnings per share is computed by dividing the net profit after tax by the weighted average number of
equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit
after tax by the weighted average number of shares considered for deriving basic earnings per share and also
the weighted average number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable had the
shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive
potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date.
Dilutive potential equity shares are determined independently for each period presented.

14 Current and Non Current Classification:

(I) "An asset shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended for sale or consumption in, the company''s normal
operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realized within twelve months after the reporting date; or it is Cash or cash
equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting date.

All other assets shall be classified as non-current."

(II) "A liability shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the reporting date; or

(d) the company does not have an unconditional right to defer settlement of the liability for at least twelve
months after the reporting date.

All other liabilities shall be classified as non-current."

Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.

"An operating cycle is the time between the acquisition of assets for processing and their realization in Cash
or cash equivalents. Where the normal operating cycle cannot be identified, it is assumed to have a duration
of twelve months."

The same operating cycle applies to the classification of the company''s assets and liabilities .

15 Cash and Cash Equivalents:

Cash and cash equivalents comprises Cash-in-hand, Current Accounts. Cash equivalents are short-term balances
(with an original maturity of three months or less from the date of acquisition), highly liquid investments that are
readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
Other Bank Balances are short-term balance (with original maturity is more than three months but less than
twelve months).

16 Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is
adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. Cash flow statement classifies cash flows during the period from operating, investing and
financing activities of the Company.

17 Segment Reporting:

The company has considered the business segment as the primary reporting segment. The business segments
have been identified based on the nature of products and services, the associated risks and returns, the internal
organisation and management structure, and the internal performance reporting systems. The business segment
comprises the manufacture and supply of Die Casting Products.

18 Government Grant:

Grants from the government are recognised at their fair value where there is a reasonable assurance that the
grant will be received and the Company will comply with all attached conditions. Government grants relating
to income are deferred and recognised in the profit or loss over the period necessary to match them with the

costs that they are intended to compensate and presented within other operating income. Government Grants/
Subsidies received towards specific fixed assets have been deducted from the gross value of the concerned fixed
assets and grants/ subsidies received during the year towards revenue expenses have been reduced from the
respective expenses.

19 Investments:

Investments, which are readily realizable and intended to be held for not more than one year from the date on
which such investments are made, are classified as current investments. All other investments are classified as
long-term investments.

3.5 Terms & Rights attached to Equity Shares

(i) The company has one class of equity shares having par value of '' 10/- (Rupees ten) each. Each shareholder
is eligible for one vote per share held and having dividend rights if any, declared by the board from time to
time.

(ii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company
after distribution of all preferential amounts, in proportionate to their shareholdings in the company.

(iii) The equity shares are not repayable, except in the case of a buyback, reduction of capital, or winding up, in
accordance with the provisions of the Companies Act, 2013.

(iv) Every member of the company holding equity shares has the right to attend the General Meeting of the
company, to speak, and, on a show of hands, to cast one vote if present in person. On a poll, the member
shall have the right to vote in proportion to their share of the paid-up capital of the company.

(v) The rights, preferences and restrictions attaching to each class of shares:

The Company has only one class of shares and all shareholder have equal rights and there are no restriction.

# Notes:

Property 1: Residential flat situated at No. 40/1 (part), with an area of 920 sq. ft., Aswini Avantika Apartments, Mount
Poonamallee Road, Nandambakkam, in the name of Mr. S. Anandan.

Property 2: Residential flat situated at No. 355 (part), with an area of443.85 sq. ft., TNHB Apartment Phase III, Sholinganallur,
Kancheepuram, in the name of Mrs. Samundeswari Reddiar.

Property 3: Industrial Property situated at plot no. S-58 , with an area of 3 Acres, Sipcot Industrial Park, Pillaipakkam,
Sriperambudur, in the name of M/s. Thaai Casting Limited.

Property 4: Residential land situated at No. 215/10, with an area of 2244 sq. ft., Bajanai Koil Street, Nandambakkam, in
the name of Mrs. Samundeswari Reddiar.

Property 5: Residential land situated at No. 40/3C, with an area of 2243 sq. ft., Swamy Colony, Bajanai Koil Street,
Nandambakkam, in the name of Mr. S. Anandan.

Property 6: Industrial Property situated at plot no. A20, 7th Cross Street, with an area of 2.24 Acres, Sipcot Industrial Park,
Pillaipakkam, Sriperambudur, in the name of M/s. Thaai Casting Limited.

*Note:

The amounts recorded as contingent liabilities pertain to the erstwhile partnership firm, M/s. Thaai
Casting, and the related statutory dues have been transferred to the Company pursuant to the conversion
of the firm into a company.

A demand notice raised under Section 143(1)(a) of the Income-tax Act, 1961 proposing adjustments to returned
income for AY 2018-19. The Company has filed responses/ rectification requests and no provision has been made,
and the amount is disclosed as a contingent liability.

A demand has been raised under Section 154 of the Income-tax Act, 1961, pursuant to a rectification order passed
for AY 2023-24. The Company is in the process of evaluating the order and considering appropriate remedial
action, including filing a revised rectification request or appeal, as may be necessary.

TDS demand notices under Forms 26Q and 24Q, including those pertaining to the erstwhile partnership firm
transferred pursuant to its conversion into the Company, are under review. Rectification applications and/or
appeals have been initiated, and no provision has been made, and the amount is disclosed as a contingent
liability.

2 Proposed Dividend Details:

The Company has not declared or paid any dividend during the year under review.

3 No issue of securities were made for any specific purpose by the Company during the reporting year.

4 The assets other than Property, Plant and Equipment, Intangible Assets and Non-Current Investments have value
on realization in the ordinary course of business equal to the amount at which they are stated.

5 Details of Benami Property Held:

There are no proceedings initiated or pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

6 The Company has been sanctioned working capital limits in excess of '' 5.00 crore, in aggregate, from banks or
financial institutions on the basis of security of current assets during the financial year ended March 31, 2025.
Quarterly returns or statements of drawing power filed by the company with banks are materially in agreement
with the books of account.

A summary of the quarterly reconciliation between the statements filed with the banks and the books of account
is provided below.

8 Relationship with Struck off Companies:

The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013.

9 Registration of Charges or Satisfaction with Registrar of Companies:

The Company has charge which is yet to be registered or satisfied with Registrar of Companies beyond the
statutory period.

Reason for Discrepancies: The statements submitted to banks during the year were prepared based on provisional
books of account. Discrepancies, if any, between these statements and the books of account are primarily due to
adjustments relating to provisions and valuations that are recorded only upon finalisation of the financial statements.

Wilful Defaulter:

The company is not declared as wilful defaulter by any bank or financial institution or consortium thereof in
accordance with the guidelines on wilful defaulters issued by the RBI.

10 Compliance with Number of Layers of Companies:

The Company has one wholly owned subsidiary, a private limited company named “Thaai Induction and Nitriding
Private Limited", and holds investments in a registered partnership firm, “Simtech CNC". As wholly owned
subsidiaries are excluded from the computation of layers under Rule 2(2) of the Companies (Restriction on
Number of Layers) Rules, 2017, hence layers prescribed under clause (87) of section 2 of the Companies Act 2013
read with Companies (Restriction on number of Layers) Rules, 2017 are not applicable.

11 Compliance with Approved Scheme(s) of Arrangements:

No Scheme of Arrangements has been approved by the Competent Authority in terms of section 230 to 237 of
the Companies Act, 2013.

12 Utilisation of Borrowed Funds and Share Premium:

A. The Management has represented that, to the best of its knowledge and belief, no funds (which are material
either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed
funds or share premium or any other sources or kind of funds) by the Company 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, whether, 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 Management has represented, that, to the best of its knowledge and belief, no funds (which are
material either individually or in the aggregate) have been received by the Company from any person or
entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or
otherwise, that the Company shall, whether, 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;

C. Based on the audit procedures performed that have been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the representations under
sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

13 Corporate Social Responsibility:

The Corporate Social Responsibility (CSR) provisions are applicable to the Company from the financial year 2024¬
25 onwards. In compliance with Section 135(1) of the Companies Act, 2013, the Company has duly constituted a
Corporate Social Responsibility (CSR) Committee and has also framed a CSR Policy as required under the Act. The
Company has undertaken projects in the area of education for underprivileged school children. These projects
are largely in accordance with Schedule VII read with Section 135(2) of the Companies Act, 2013.

23 Employee Benefit (Incurred in India):

Gratuity - The Present value of obligation is determined based on actuarial valuation using the Projected Unit
Credit Method. This method considers each period of service as giving rise to an additional unit of benefit
entitlement and measures each unit separately to build up the final obligation.

Interest Cost: It is the increase in the Plan liability over the accounting period resulting from the operation of
the actuarial assumption of the interest rate.

Current Service Cost: It is the discounted present value of the benefits from the Plan''s benefit formula
attributable to the services rendered by employees during the accounting period.

Actuarial Gain or Loss: It occurs when the experience of the Plan differs from that anticipated from the actuarial
assumptions. It could also occur due to changes made in the actuarial assumptions.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market. The
above information is certified by the actuary.

24 Cash Flow Statement:

(1) The amount of significant cash and cash equivalent balances held by the enterprise as at March 31, 2025
was '' 1,04,91,985/- that are available for use by Company.

(2) The Company has appropriate amount of Cash Flows that are required to maintain operating capacity.

(3) The Company is investing adequately in the maintenance of its operating capacity.

25 Changes in Accounting Estimates:

There are no changes in Accounting Estimates made by the Company during the year.

26 Changes in Accounting Policies:

There are no changes in Accounting Policies made by the Company during the year.

27 Disclosures on Property, Plant and Equipment and Intangible Assets:

I. Property, Plant and Equipment

(1) There is no restriction on the title of Property, Plant and Equipment, subject to only those which are
under hypothecation/ charge.

(2) The Company has no contractual commitments for the acquisition of Property,Plant & Equipment.

(3) The Company has no Impairment loss during the period for Property, Plant & Equipment.

(4) Assets are periodically checked for active usage and those which are retired are written off.

(5) There are no temporarily idle property, plant and equipment.

II. Intangible Assets

(1) Intangible asset is amortised as per Schedule II.

(2) The carrying amount and remaining amortization period of any individual intangible asset are not
material to the financial statements of the enterprise as a whole.

(3) There are no amounts of intangible assets whose title is restricted and the carrying amounts of
intangible assets pledged as security for liabilities.

28 Investments:

I. Profits and Losses with Regard to Investments have been Disclosed as under:

a) Profits and losses on disposal of current investments

b) Profits and losses on changes in the carrying amount of current investments

c) Profits and losses on disposal of long-term investments

d) Profits and losses on changes in the carrying amount of long- term investments

Note: The above reason for variance shall be addressed if there is a change in the variance of more than 25% as compared to the
preceding year.

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

For P P N AND COMPANY THAAI CASTING LIMITED

Chartered Accountants

Firm Reg No: 013623S

Peer Review Certificate No. 013578

R RAJARAM S. ANANDAN C. VENKATESAN

Partner Managing Director Whole Time Director

M. No:238452 DIN : 02354202 DIN : 10077788

S.A. SHEVAANI

Date: 28-05-2025 Whole Time Director & CFO

Place: Chennai DIN : 10061358

---

Mar 31, 2024

14 Cash and Cash Equivalents:

Cash and cash equivalents comprise cash and cash deposits with banks. The Company considers all highly liquid investments with a original maturity at a date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

15 Cash Flow Statement:

Cash flows are reported using indirect method,

12 Provisions and Contingent Liabilities:

A provision is recognised if, as a result of past event, the Company has a present legal obligation that can be estimated reliably and it is probable that an outflow of economic benefit will be required to settle the obligation. Provisions are determined by the best estimate of outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

13 Earnings Per Share:

Basic Earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

whereby net profit/loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

16 Investments:

Investments, which are readily realizable and intended to be held for not more than one year from

3. Proposed Dividend Details:

The Company has not declared or paid any dividend during the year under review.

4. No issue of securities were made for any specific purpose by the Company during the reporting year.

5. The assets other than Property, Plant and Equipment, Intangible Assets and Non-Current Investments have value on realization in the ordinary course of business equal to the amount at which they are stated.

6 Details of Benami Property Held:

There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

7. The Company has made borrowings from the banks on the basis of security of current assets, and the statements of current assets as required to be filed by the Company with any the banks or financial institutions are done periodically.

8. Wilful Defaulter:

The company has not been declared a wilful defaulter by any bank or financial institution or consortium thereof in accordance with the guidelines on wilful defaulters issued by the RBI.

9. Relationship with Struck off Companies:

The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013.

10. Registration of Charges or Satisfaction with Registrar of Companies:

The Company has charge which is yet to be registered with Registrar of Companies beyond the statutory period.

12. Compliance with Approved Scheme(s) of Arrangements:

No Scheme of Arrangements has been approved by the Competent Authority in terms of section 230 to 237 of the

Companies Act, 2013.

13. Utilisation of Borrowed Funds and Share Premium:

A. The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company 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, whether, 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 Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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;

C. Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

I. Property, Plant and Equipment

(1) There is no restriction on the title of Property, Plant and Equipment, subject to only those which are under hypothecation/ charge.

(2) Company has no contractual commitments for the acquisition of Property,Plant & Equipment.

(3) Company has no Impairment loss during the period for Property, Plant & Equipment.

(4) Assets are periodically checked for active usage and those which are retired are written off.

(5) There are no temporarily idle property, plant and equipment.

(6) Intangible asset is amortised as per Schedule II.

(7) The carrying amount and remaining amortization period of any individual intangible asset are not material to the financial statements of the enterprise as a whole.

(8) There are no amounts of intangible assets whose title is restricted and the carrying amounts of intangible assets pledged as security for liabilities.

30 Investments:

I. Profits and Losses with Regard to Investments have been Disclosed as under:

a) Profits and losses on disposal of current investments

b) Profits and losses on changes in the carrying amount of current investments

c) Profits and losses on disposal of long-term investments

d) Profits and losses on changes in the carrying amount of long- term investments

31 Segment Reporting:

The Company has considered the business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services. Consequently, the geographical segment has been considered as a secondary segment. The business segment has been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems. The Business segment comprises of manufacturing and Selling of Die Casting Products.

*Note: As this is the first year for which the financial statements are being presented, there are no comparable prior period figures available. Therefore, variance analysis against previous

periods is not applicable.

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

For P P N AND COMPANY THAAI CASTING LIMITED

Chartered Accountants

Firm Reg No: 013623S

Peer Review Certificate No. 013578

R RAJARAM S. ANANDAN C. VENKATESAN

Partner Managing Director Whole Time Director

M. No:238452 DIN : 02354202 DIN : 10077788

UDIN: 24238452BKAGLD4869

S.A. SHEVAANI RAJESH KUMAR SAMAL

Date: 28-05-2024 Whole Time Director & CFO Company Secretary Cum Compliance Officer

Place: Chennai DIN : 10061358 M. No: 62501