Rights, Preferences and restrictions attached to Equity Shares

The company has one class of equity shares having a par value of Rs. 10 per share fully paidup. Each shareholder is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General meeting, except in the case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all prefrential amounts, in proportion to their shareholding.

*Inventory funding (HDFC) is repayable on demand and carries interest of 8.40%. PA. (Previous Year interest rate @ 8.50% PA.)

*Inventory funding (BOB) is repayable on demand and carries interest of 8.30%. PA. (Previous Year interest rate @ 8.40% PA.)

**Term Loan for Vehicle from HDFC Bank is repayable on 12 monthly installments and carries interest of 8.55%. PA. (Previous Year: NIL)

***Loans from Directors is repayable on demand and carries interest rate of 7.50% PA. (Previous Year interest rate @ 7.50% PA.)

The Disclosure in respect of MSME have been made in the financial statements based on the informtion/ confirmation received and available with the company. On the basis of confirmations obtained from supplier registered themselves under Micro, Small & Medium Enterprises Development Act, 2006 (MSMED Act, 2006) and on the basis of information available with the company following are the details:

Sensitivities due to mortality & withdrawals are not material & hence impact of change due to these not calculated. Sensitivities as rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable.

ix) Risks associated with Plan Provisions

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company

is exposed to various risks as follow -

A) Salary Increases- Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan’s liability.

D) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

Capital employed in the Company's business are common in nature and cannot be attributed to a specific segment i.e. showroom, service and spares. It is not practical to provide segmental distribution of the capital employed since segregation of available data could be erroneous.

The segment report of the Company as stated above has been prepared in accordance with Ind AS 108 Operating Segments.

The segment wise revenue and result's figures related to the respective heads are directly identifiable to each of the segments. Un-allocable income includes income on common services at corporate level and relates to the Company as whole.

The definitions of the business segmentation and the activities encompassed therein are as follows:

(i) Showroom:- Purchase and sales of vehicles manufactured by Maruti Suzuki India Ltd.

(ii) Service & Spares: Servicing of Maruti Vehicles and Sale of their Spare parts.

Geograpgical Information

The operations of the company are mainly carried out in India and therefore, geographical information is not applicable.

40 The balances of clients as on reporting date in the nature of Trade Receivables, Loans & Advances, Security Deposits and Trade Payables classified as Current and Non- Current are subject to confirmations, reconciliations and consequential adjustments. The management does not expect any significant impact on such reconciliations.

41 Leases (IND AS-116)

A Company as a lessee

The Company has leases for Showrooms, Workshops and Stock Yards. With the exception of short-term lease underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability as a financial liability. Variable lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right of use assets. The Company classifies its right-of-use assets in a consistent manner to its property, plant and equipment.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to another party, the right-of-use asset can only be used by the Company. Some leases contain an option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets as security. For leases over showrooms, workshops and stockyard the Company must keep those properties in a good state of repair and return the properties in their original condition at the end of the lease.

Lease payments not included in measurement of lease liability

The expense relating to payments not included in the measurement of the lease liability is as follows:

Lease Modifications

During the year there was a lease modifiaction which was adjusted by decreasing related ROU asset to reflect the modification of lease. The modification of lease results in gain of Rs. 34.09 lakhs (Previous Year : INR 150.56 Lakhs) on right-of-use asset and corrosponding lease liability as on date of modification which has been transferred to Statement of Profit & Loss (Refer to Note -26).

Lease Termination

During the year one lease was terminated due to closure of workshop/showroom. The correspponding impact of termination of lease amounting to INR 1.66 Lakhs (Previous Year: INR 2.69 Lakhs) has been credited to Statement of Profit and loss account (Refer to Note - 26)

The carrying amount of the Trade Receivables, Trade Payables and Cash & Cash Equivalent are considered to be the same as their fair values due to their recoverability.

The carrying amount of the financial assets and liabilities carried at amortised cost is considered as reasonable approximation of fair value for which we have followed Level III heirarchy.

The payment obligation from financial instruments are explained according to their Maturity in note below:

Level 1: Quoted prices in the active market. This level of hierarchy includes financial assets that are measured by reference to quoted prices in the active market. This category consists of quoted equity shares and debt based open ended mutual funds.

Level 2: Valuation techniques with observable inputs. This level of hierarchy includes items measured using inputs other than quoted prices included within Level 1 that are observable for such items, either directly or indirectly. This level of hierarchy consists of debt based close ended mutual fund investments and over the counter (OTC) derivative contracts

Level 3: Valuation techniques with unobservable inputs. This level of hierarchy includes items measured using inputs that are not based on observable market data (unobservable inputs). Fair value determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data. The main item in this category are unquoted equity instruments.

The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values

Quoted equity investments: Fair value is derived from quoted market prices in active markets.

Unquoted equity investments: Fair value is derived on the basis of income approach, in this approach the discounted cash flow method is used to capture the present value of the expected future economic benefits to be derived from the ownership of these investments.

Financial risk management

The Company's activities expose it to credit risk, liquidity risk and market risk. The financial risk management of the Company is carried out under the procedures approved by the Managements . Within these policies, the management provides written principles for overall risk management including procedures covering specific areas, such as interest rate, market challenges and financial budgets to ascertain the adequate liquidity in the company.

A. Market Risk

Market risk is the risk that fair value of future cash flows of the financial instruments will fluctuate because of changes in market prices. The market risk at large are categorised as 1) Foreign Currency Risk ; 2) Interest Rate Risk ; 3) Price Risk.

The company’s exposure to the market risk is very minimal.

Foreign Risk : The company do not have any exposure to Foreign Currency risk.

Interest Rate and Price Risk Interest rate risk is the risk that the future cash flow with respect to interest payments on borrowing will fluctuate because of change in market interest rates. Interest rate change does not affects significantly short-term borrowings therefore the group’s exposure to the risk of changes in market interest rates is minimal

B. Credit Risk

The credit risk is the risk that counter party will not meet its obligations under the financial instrument or customer contract, relating to a financial loss

The credit risk of the company is very much on the lower side. The trade receivables of the company at large are secured in nature. The trade receivable primarily includes receivables from various Banks, finance companies and insurance companies against delivery of vehicles to customers who have availed bank/private finance for which disbursal is due and accidental claims for repairs of vehicles, respectively. The obligation dues on them are secured against the documents issued against the credit. To manage trade receivable, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends. None of the financial instruments of the Company result in material concentrations of credit risks.

C. Liquidity risk

Liquidity risk is the risk that company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses.

The Company's principle sources of liquidity are Cash and Bank balances, Fixed deposit receipts and the cash flow i.e generated from operations. The company has a working capital of 7087.65 Lakhs (PY 5126.28 Lakhs) includes cash and bank balances and FDRs of Rs. 5249.20 Lakhs (PY 3067.99 Lakhs). The company believes that the working capital and other liquid assets are sufficient to meets its current requirement. Accordingly, no liquidity risk is preceived by the Company.

Capital management

The Company’s objectives when managing capital are to:

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

• Maintain an optimal capital structure to reduce the cost of capital.

The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

46 Exceptional Item

The Exception item of Rs. 46.55 Lakhs represents net impact of loss die to natural calamity at Mandi Outlet in Himachal Pradesh on account of discarding of Inventory of Spare parts/ Accessories, Plant and Machinery and Office Equipments. The company operations at Himachal Pradesh were distrupted due to heavy rain and floods in the month of August 2023

47 The Company has not granted any loan or advance during the year to Promoters, Director, KMP and the related parties either severally or jointly with any other person.

48 During the year, there is no proceedings have been initiated or are pending against the Company for holding any Benami Property under the Benami Transactions (Prohibitions) Act, 1988 (45of 1988) and Rule made thereunder.

49 The Company is regular in submitting the quarterly statements to Banks and the same is in agreement with books of accounts.

50 During the financial year, the Company has not been declared as wilful defaulter by any Banks or Financial Institutions.

51 The Company has not entered into any transactions during the financial year with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

52 The Company has neither advanced, loaned or invested funds nor received any funds to/from any person or entity for lending or investing or providing gurantee to/on behalf of the Ultimate Beneficiary during the reporting period.

53 During the financial year, there is no charge or satisfaction with Registrar of Companies which is yet to file/register beyond statutory period.

54 During the financial year, there is no undisclosed income which is not recorded in the books of accounts of the Company.

55 The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

56 Events after Balance Sheet date:

i) The Board of Directors have recommended final dividend of Rs. 1 per share i.e. 10% of the face value of Rs. 10 per share subject to approval of shareholders in the ensuing Annual General Meeting.

57 The Previous Year Figures have been restated, regrouped and rearranged wherever necessary to make them Comparable with current year.