2.15 Provisions
General

Provisions are recognized 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. When the Company expects
some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is
recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a
provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognized as a finance cost.

2.16 Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no
obligation, other than the contribution payable to the provident fund. The Company recognizes contribution
payable to the provident fund scheme as an expense, when an employee renders the related service. If the
contribution payable to the scheme for service received before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution
already paid. If the contribution already paid exceeds the contribution due for services received before the
balance sheet date, then excess is recognized as an asset to the extent that the pre-payment will lead to, for
example, a reduction in future payment or a cash refund.

The Company operates a defined benefit gratuity plan in India, which requires contributions to be made to a
separately administered fund.

The cost of providing benefits under the defined benefit plan is determined using the projected unit credit
method.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling (excluding amounts
included in net interest on the net defined benefit liability), and the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability), are recognized immediately in the balance sheet
with a corresponding debit or credit to retained earnings through OCI in the period in which they occur.
Re-measurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognized in profit or loss on the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Company recognizes related restructuring costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company
recognises the following changes in the net defined benefit obligation as an expense in the statement of profit
and loss:

• Service costs comprising current service costs, past-service costs, gains and losses on curtailments and
non-routine settlements; and

• Net interest expense or income

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee
benefit. The Company measures the expected cost of such absences as the additional amount that it expects to
pay as a result of the unused entitlement that has accumulated at the reporting date. The Company recognizes
expected cost of short-term employee benefit as an expense, when an employee renders the related service.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such long-term compensated absences are provided for based
on the actuarial valuation using the projected unit credit method at the reporting date. Actuarial gains/losses
are immediately taken to the statement of profit and loss and are not deferred. The obligations are presented as
current liabilities in the balance sheet if the entity does not have an unconditional right to defer the settlement
for at least twelve months after the reporting date.

2.17 Share based payments

Share based compensation benefits are provided to employees via the Employee Stock Options Scheme and
Stock Appreciation Rights.

The fair value of options granted under the above scheme is recognised as employee benefit expense with a
corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value
of the options granted:

• Including any market performance conditions;

• Excluding the impact of any service vesting conditions.

Non-market performance and service conditions are included in the assumptions about the number of options
that are expected to vest. The total expense is recognised over the vesting period, which is the period during
which all the specified vesting conditions are to be satisfied.

At the end of each reporting period, the Company revises the estimates of the number of options that are
expected. It recognises the impact of the revision of original estimates, if any, in the income statement, with
corresponding adjustment to equity.

The total cost of the services rendered by the beneficiaries is recognised over the vesting period, which is the
period over which all of the specified vesting conditions are to be satisfied (continued service at the Company).

Liabilities for the Company's share appreciation rights are recognised as employee benefit expense over the
relevant service period. The liabilities are remeasured to fair value at each reporting date.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted
earnings per share.

2.18 Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing

• the profit attributable to owners of the Company

• by the weighted average number of equity shares outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the year and excluding treasury shares, if any.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:

• the after-income tax effect of interest and other financing costs associated with dilutive potential
equity shares, and

• the weighted average number of the additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.

2.19 Financial assets and Financial liabilities

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at
fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation
or convention in the marketplace (regular way trades) are recognized on the trade date, i.e., the date that the
Company commits to purchase or sell the asset.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated
as at FVTPL:

- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

Subsequent measurement

Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and

losses, including any interest or dividend income, are recognised in profit
or loss.

Financial assets at amortised cost These assets are subsequently measured at amortised cost using the

effective interest method. The amortised cost is reduced by impairment
losses. Interest income, foreign exchange gains and losses and impairment
are recognised in profit or loss. Any gain or loss on derecognition is
recognised in profit or loss.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.

The Company's financial liabilities include trade and other payables, loans and borrowings including bank
overdrafts.

Subsequent measurement
Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost
using the Effective Interest Rate (EIR) method. Gains and losses are recognized in profit or loss when the liabilities
are derecognized 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.

Other financial liabilities are subsequently measured at amortised cost using the effective interest method.
Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on
derecognition is also recognised in profit or loss.

2.20 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

2.21 Dividend

The Company recognizes a liability to make cash or non-cash distributions to equity holders of the parent when
the distribution is authorised, and the distribution is no longer at the discretion of the Company. As per the
corporate laws in India, a distribution is authorised when it is approved by the shareholders.

2.22. (a) Trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary
course of business. If the receivable is expected to be collected within a period of 12 months or less from
the reporting date, they are classified as current assets otherwise as non-current assets.

Trade receivables are measured at their transaction price unless it contains a significant financing
component or pricing adjustments embedded in the contract.

Loss allowance for expected lifetime credit loss is recognised on initial recognition of the trade receivables.
A) Measurement

(i) Recognition and initial measurement

Trade receivables and debt securities issued are initially recognised when they are originated.
All other financial assets and financial liabilities are initially recognised when the Company
becomes a party to the contractual provisions of the instrument. A financial asset (unless it
is a trade receivable without a significant financing component) or financial liability is initially
measured at fair value plus or minus, for an item not at FVTPL, transaction costs that are
directly attributable to its acquisition or issue. A trade receivable without a significant financing
component is initially measured at the transaction price.

(ii) Presentation of allowance for ECL

Loss allowances for financial assets measured at amortised cost are deducted from the gross
carrying amount of the assets.

(iii) Write-off

The gross carrying amount of a financial asset is written off when the Company has no
reasonable expectations of recovering a financial asset in its entirety or portion thereof.

2.22 (b) Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company
has received consideration in form of advance from customer (or an amount of consideration is due). If a
customer pays consideration before the Company transfers goods or services to the customer, a contract
liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract
liabilities are recognised as revenue when the Company performs the obligation as per the contract.

2.23 Trade and other payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of
business from supplier. Account payable is classified as current liabilities if payment is due within one year or
less.

Trade payables are non-interest bearing and are generally settled on 30 to 90 days terms.

2.24 Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently
carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption
value is recognised in the income statement over the period of the borrowings using the effective interest rate
method.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer their
settlement for at least 12 months after the end of the reporting period.

Fees paid on for availing the loan facilities are recognised as transaction costs of the loan to the extent that
it is probable that some or all of the facilities will be drawn down. In this case, the fees are deferred until the
draw- down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be

drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the
facility to which it relates.

2.25 Non-current assets held for sale

Non-current assets (or disposal group) are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use and a sale is considered highly
probable.

Non-current assets and disposal group classified as held for sale are measured at lower of their carrying amount
and fair value less costs to sell.

3. Financial risk management

3.1 Financial risk factors

The Company's activities expose it to a variety of financial risks viz. market risk (including currency risk, interest
rate risk and price risk), credit risk and liquidity risk. The Company's overall risk management programme focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company's
financial performance.

a. Market risk

Market risk is the risk that changes in market prices - e.g. foreign exchange rates, interest rates, and equity
prices - will affect the Company income or the value of its holdings of financial instruments. The objective
of the market risk management is to manage and control market risk exposures within acceptable
parameters, while optimizing the return.

(i) Foreign Currency Risk:-

The Company operates internationally, and the business is transacted in several currencies.
Consequently, the Company is exposed to foreign exchange risk through its sale and purchase of
goods and services in mainly USD, EURO and GBP.

The exposure on the rest of the assets denominated in other foreign currencies in respect of operations
is not material.

b. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company's
objective when managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet
its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Company's reputation.

(i) The prudent management of liquidity risk entails maintaining enough cash and available financing
through sufficient credit facilities. In this respect CIE strategy, articulated by its Treasury Department,
is to maintain the necessary financing flexibility through the availability of committed credit lines.
Additionally, and on the basis of its liquidity needs, the Company uses liquidity facilities (non-recourse
factoring and the sale of financial assets representing receivable debts, transferring the related risks
and rewards). Management monitors the Company's forecast liquidity requirements together with
the trend in net debt.

The Company monitors the Company's forecast liquidity requirements to ensure it has sufficient
cash to meet operational needs while maintaining enough headroom on its undrawn committed
borrowing facilities at all times so that the Company does not breach borrowing limits or covenants
on any of its borrowing facilities.

Noteworthy is the existence at 31 December, 2024 of ' 2,649.20 Million in unused loans and credit lines
(31 December 2023: ' 1,282.58 Million)

One of the Company's strategies is to ensure the optimisation and maximum saturation of the
resources assigned to the business. The Company therefore pays special attention to the net
operating working capital invested in the business. In this regard, as in previous years, considerable
work has been performed to control and reduce collection periods for trade and other receivables,
as well as to optimise accounts payable with the support of banking arrangements to mobilise funds
and minimise inventories through logistic and industrial management, allowing JIT (just in time)
supplies to our customers.

c. Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meets its contractual obligations, and arises principally from the Company's receivables from
customers, loans and investments in debt securities.

Credit risk from cash and cash equivalents and bank deposits is considered immaterial in view of the
creditworthiness of the banks the Company works with. If management detects liquidity risk in respect of
its banks under certain specific circumstances, it recognises impairment provisions as warranted.

In addition, Company has specific policies for managing customer credit risk; these policies factor in the
customers' financial position, past experience and other customer specific factors.

With respect to customer credit limits, it should be noted that the Company policy is to spread its volumes
across customers or manufacturing platforms.

One of the customer exceeds 10% of the Company's turnover for the years 2024 and 2023. Sales to this
customer in 31 December, 2024 are ' 16,425.56 Million (31 December, 2023: ' 16,452.74 Million).

(i) Trade receivables

Credit risk arises from the possibility that customer will not be able to settle their obligations as
and when agreed. To manage this, the Company periodically assesses the financial reliability of
customers, taking into account the financial condition, current economic trends, analysis of historical
bad debts, ageing of accounts receivable and forward looking information. Individual credit limits are
set accordingly.

The Company uses Expected Credit Loss (ECL) model to assess the impairment gain or loss. As per
ECL simplified approach, the Company uses a provision matrix to compute the expected credit
loss allowance for trade receivables. The provision matrix takes into account a continuing credit
evaluation of Company's customers financial condition; aging of trade accounts receivable; the
value and adequacy of collateral received from the customers in certain circumstances (if any); the
Company's historical loss experience; and adjustment based on forward looking information. The
Company defines default as an event when there is no reasonable expectation of recovery.

3.2 Fair value estimation
Fair value measurement

The Company measures financial instruments, such as short term investments at fair value at each balance
sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability. The principal
or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the use of relevant observable inputs and minimising the
use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period (Refer Note 21).

3.3 Capital risk management

The Company's objectives when managing capital are to safeguard its ability to continue as a going concern
in order to provide returns for shareholders and benefits for the other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company can adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry the Company monitors capital on the basis of the leverage ratio, this ratio
is calculated as net debt divided by total capital employed. Net debt is calculated as total borrowings plus
current financial liabilities less cash, cash equivalents and current financial assets, all of which are shown in the
annual accounts. Total capital employed is calculated as 'equity', as shown in the standalone annual accounts,
plus net debt.

4. Accounting estimates and judgements

The preparation of financial statements requires management to make judgments, estimates and assumptions
affecting the application of accounting policies and the amounts presented under assets and liabilities, income
and expenses. Actual results may differ from these estimates.

a) Estimated impairment loss on goodwill (Refer Note 6)

The Company tests annually whether goodwill has suffered any impairment.

The recoverable amounts of cash-generating units basically which were determined on the basis of
calculations of value in use did not give rise to impairment risks on the Company's goodwill at 31 December,
2024 and as at 31 December, 2023.

b) Income tax and deferred tax (Refer Note 19 and 20)

Income tax expense for the period ended 31 December, 2024 has been estimated based on profit before
taxes, as adjusted for any permanent and/or temporary differences envisaged in tax legislation governing
the corporate income tax base calculation. The tax is recognized in the income statement, except insofar
as it relates to items recognized directly in equity, in which case, it is also recognized in equity.

Tax credits and deductions and the tax effect of applying tax-loss carry forwards that have not been
capitalised are treated as a reduction in the corporate income tax expense for the year in which they are
applied or offset.

The calculation of income tax expense did not require the use of significant estimates except in tax credits
recognized in the year and claim of goodwill, which was at all times consistent with the annual financial
statements.

Deferred income tax is recognised, using the liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the annual accounts. Deferred income
tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the
balance sheet date and are expected to apply when the related deferred income tax asset is realised or
the deferred income tax liability is settled.

Deferred taxes on temporary differences are recognized when arising on investments in subsidiaries,
associates and joint ventures, except in those cases where the Company can control the timing of the
reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.

Deferred tax assets deriving from the carry forward of unused tax credits and unused tax losses are
recognised to the extent that it is probable that future taxable profit will be available against which the tax
assets can be utilised. In the case of investment tax credits the counterpart of the amounts recognized is the
deferred income account. The tax credit is accrued as a decrease in expense over the period during which
the items of property, plant and equipment that generated the tax credit are depreciated, recognizing the
right with a credit to deferred income.

c) Pension benefits (Refer Note 29)

The present value of the Company's pension obligations depends on a series of factors that are determined
on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost
(income) for pensions include the discount rate. Any changes in these assumptions will impact the carrying
amount of pension obligations.

The Company determines the appropriate discount rate at the end of each year. This is the interest rate that
should be used to determine the present value of estimated future cash outflows expected to be required
to settle the pension obligations. In determining the appropriate discount rate, the Company considers
the interest rates of Government bonds that are denominated in the currency in which the benefits will be
paid and that have terms to maturity approximating the terms of the related pension obligation. Other key
assumptions for employee benefits are based in part on current market conditions.

d) Assessment of carrying value of Equity Investments in Subsidiaries (Refer Note 8)

On an annual basis, the Company evaluates whether an impairment is required to the carrying value of
Equity investment in its subsidiaries. The recoverable amounts of cash-generating units basically which
were determined on the basis of calculations of value in use did not give rise to impairment risks on the
carrying value of Company's Equity investments at 31 December, 2024.

e) Legal Contingencies (Refer Note 30)

The Company has received orders and notices from authorities in respect of direct taxes, indirect taxes and
other litigations. The outcome of these matters may have a material effect on the financial position, results
of operations or cash flows. Management regularly analyses current information about these matters and
provides provisions for probable contingent losses including the estimate of legal expense to resolve the
matters. In making the decision regarding the need for loss provisions, management considers the degree
of probability of an unfavourable outcome and the ability to make a sufficiently reliable estimate of the
amount of loss. The filing of a suit or formal assertion of a claim against the Company or the disclosure of
any such suit or assertions, does not automatically indicate that a provision of a loss may be appropriate.

4.1 Recent Accounting Pronouncements

The Company applied for the first-time certain standards and amendments, which are effective for annual
periods beginning on or after January 01, 2024. The Company has not adopted any other standard or amendment
that has been issued but is not yet effective.

(i) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by
replacing the requirement for entities to disclose their 'significant' accounting policies with a requirement
to disclose their 'material' accounting policies and adding guidance on how entities apply the concept of
materiality in making decisions about accounting policy disclosures.

The amendments will have an impact on the Company's disclosures of accounting policies, but not on the
measurement, recognition or presentation of any items in the Company's financial statements.

(ii) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting
policies and the correction of errors. It has also been clarified how entities use measurement techniques
and inputs to develop accounting estimates.

The amendments are expected to not have any material impact on the Company's financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer
applies to transactions that give rise to equal taxable and deductible temporary differences such as
leases.

It is expected that there will also be no impact on the opening retained earnings as at 1 January 2024.

Apart from these, consequential amendments and editorials will be made to other Ind AS like Ind AS 101,
Ind AS 102, Ind AS 103, Ind AS 107, Ind AS 109, Ind AS 115 and Ind AS 34.

Ministry of Corporate Affairs (“MCA") notifies new standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended
31 December, 2024, MCA had not notified any new standards or amendments to the existing standards
applicable to the Company from next financial year.

Sensitivity to changes in assumptions of CGU

The management believes that no reasonably possible change (say 10%) in any of the key assumptions used in
the value in use calculation would cause the carrying value of the CGU to materially exceed its value in use

Results of the analysis

Based on the above assessment, the Company concluded that in both current year as well as previous year,
goodwill has not suffered any impairment. Further, the result of using before-tax cash flows and discount rates
does not differ significantly from the outcome of using after-tax cash flows and discount rates.

Transferred Receivables

The carrying amount of the trade receivable includes receivables which are subject to factoring arrangement.
Under this arrangement, the Company has transferred the relevant receivables to the factor in exchange
for Cash and is prevented from selling or pledging the receivables. However, the Company has retained late
payment and credit risk. The Company therefore continues to recognize the transferred assets in their entirety
in its balance sheet. The amount repayable under the factoring agreement is presented as borrowing. The
company considers the held to collect business model to remain appropriate for these receivables and hence
continues measuring them at amortized cost.

(c) Retained Earnings

Retained earnings in the statement of profit and loss represents the balanced undistributed profits of the
company as on Balance Sheet date.

(d) Capital reserve

Capital reserve is reserves generated on account of:

1. Merger under the Integrated Scheme of Amalgamation and the Composite Scheme of Amalgamation
(Sections 391-395 of the Companies Act, 1956) for the merger of Mahindra Ugine Steel Company
Limited (MUSCO), Mahindra Hinoday Industries Limited (MHIL), Mahindra Gears International Limited
(MGIL), Mahindra Investment India Private Limited (MIIPL), Participaciones Internacionales Autometal
Tres S.L. (PIA3) and Mahindra Composites Limited (MCL). The merger was approved by the Honourable
High Court of Judicature at Bombay on October 31, 2014. The Schemes came into effect on December,
10, 2014, the day on which the order was delivered to the Registrar of Companies. The reserve is capital
in nature and is not available for distribution as dividend.

2. Merger under the Scheme of Amalgamation (Sections 230-234 and other applicable provisions of
the Companies Act, 2013) of Mahindra Gears and Transmission Private Limited, Mahindra Forging
Global Limited, Mahindra Forging International Limited and Crest Geartech Private Ltd. The merger
was approved by the Honourable National Company Law Tribunal (NCLT) at Mumbai on December
13, 2017. The reserve is capital in nature and is not available for distribution as dividend.

(e) Capital redemption reserve

Capital redemption reserve is transferred by virtue of the merger referred to above, which was in the books
of MUSCO and was created to redeem preference shares issued by MUSCO before merger. These shares
have since been redeemed and this reserve is available for use as per the relevant provisions of Companies
Act, 2013.

(f) General reserve

General reserve created by virtue of merger of Mahindra Stokes Holding Company Limited, Mahindra
Forgings Overseas Limited and Mahindra Forgings Mauritius Limited into the Company vide High Court
Order dated 27^th December, 2007, is reserve available for distribution as dividend.

Performance obligations

The Company satisfies its performance obligations pertaining to the sale of products at a point in time when
the control of goods is actually transferred to the customers. The control of goods is transferred to the customer
based on the delivery terms.

No significant judgment is involved in evaluating when a customer obtains control of the promised goods. The
payment is generally due within 30 - 90 days. There are no obligations on account of refunds or returns.

Disclosure for transaction price allocated to the remaining performance obligations

There is no remaining performance obligation for any contract for which revenue has been recognised till period
end. Further, in accordance with paragraph 121 of Ind AS 115, the Company is not required to disclose information
about its remaining performance obligation since the Company does not have any performance obligation that
has an original expected duration of more than one year.

Determining the timing of satisfaction of performance obligations

There is no significant judgement involved in ascertaining the timing of satisfaction of performance obligations,
in evaluating when a customer obtains control of promised goods, transaction price and allocation of it to the
performance obligations.

29. Employee benefits plans

(a) Defined Contribution plan

The Company's contribution to Provident Fund and other funds aggregating ' 164.25 Million during the year
ending 31 December, 2024 (31 December, 2023'150.46 Million) has been recognised in the statement of
Profit or Loss under the head Employee Benefit expenses.

(b) Defined benefit plans

(i) Gratuity

The Company operates gratuity plan covering qualifying employees. The benefit payable is the
greater of the amount calculated as per the Payment of Gratuity Act, 1972 or the Company's scheme
applicable to the employee. The benefit vests upon completion of five years of continuous service
and once vested it is payable to employees on retirement or on termination of employment. In case
of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual
contribution to the Company gratuity scheme administered by the Life Insurance Corporation of
India through its Gratuity Trust Fund.

(ii) Compensated absences

Company's liability towards leave encashment are determined using the Projected Unit Credit method
which 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. Past service costs are recognised on
straight line basis over the statement of Profit or loss as income or expense. Obligation is measured at
the present value of estimated future cash flow using a discount rate that is determined by reference
to market yields at the Balance Sheet date on government bonds where the currency and terms of
the government bonds are consistent with the currency and estimated terms of the defined benefit
obligation.

(c) Risks

Through its defined benefit plans the Company is exposed to risks, the most significant of which are detailed
below:

(i) Asset Volatility

The plan liabilities are calculated using a discount rate set with references to government bond
yields; if plan assets under perform compared to the government bond's discount rate, this will create
or increase a deficit.

(ii) Changes in Bond Yields

A decrease in government bond yields will increase plan liabilities, although this is expected to be
partially offset by an increase in the value of the plans' bond holdings.

35. Employee Stock Option Scheme (ESOS 2007)

The Company instituted the Employees Stock Options Scheme 2007 (ESOS 2007) plan for employees in pursuance
of a special resolution passed by the shareholders approving the scheme on July 25, 2007, amended by special
resolution dated July 29, 2008, August 02, 2011 and pursuant to the Integrated scheme of Amalgamation and
Composite Scheme of Amalgamation in terms of High Court dated October 13, 2014. Further, the Company
instituted the Employees Stock Options Scheme 2015 (ESOS 2015) plan for employees in pursuance of a special
resolution passed by the shareholders approving the scheme on September 15, 2015.

Pursuant to the schemes, the Company has granted options to eligible employees at various exercise prices
per equity share of ^10 each. Under the terms of scheme, the vesting period will be spread equally over 4 years
(ESOS 2007) and 3 years (ESOS 2015). Options will vest at 25% (ESOS 2007) and 33% (ESOS 2015) from the grant
date. When exercisable, each option is convertible into one equity share of the Company. The Board of Directors
has terminated the Employees' Stock Option Scheme (ESOS-2007) and Employees' Stock Options Scheme 2015
(ESOS-2015) with effect from 25^th April, 2023.

37. Additional disclosures required by Sch III

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

(ii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

(iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iv) The Company have not any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

(v) The Company does not have any investments through more than two layer of investment companies as
per section 2(87)(d) and section 186 of Companies Act, 2013

(vi) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets)
during the year.

(vii) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful
defaulters issued by the Reserve Bank of India.

38. The Company has not advanced or loaned or invested funds to any other person(s) or entity(s), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

39. The Company has not received any fund from any person(s) or entity(s), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:

(a) 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

(b) provide any guarantee, security or the like on behalfof the Ultimate Beneficiaries

40. Secured Loan with Bank of Baroda, pertaining to 31 December, 2023, non fund base for the period was
5110 million. The quarterly returns or statements filed by the Company for working capital limits with Bank of
Baroda banks are in agreement with the books of account of the Company except for statements filed for
quarters ended March, 2023 and September, 2023 where differences were noted between the amount as per
books of account for respective quarters and amount as reported in the quarterly statements. The differences
are due to some of the items where not taken while reporting to banks due to grouping mismatch. The differences
were in case of Payables with respect to period ended March, 2023 and September, 2023 are ' 173.36 million and
109.60 million respectively.

41. The following table summarises the transactions with the companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956 for the year ended / as at 31 December, 2024:

42. As per proviso to Rule 3(l) of the Companies (Accounts) Rules, 2014 for maintaining books of account the
Company is using SAP ERP System for maintaining books of account which has feature of recording an Audit
Trail of each and every transaction, creating an edit log of each change made in books of account along with
the date when such changes were made. It also has feature of ensuring that the audit trail cannot be disabled.

i) The audit trail was enabled and operated throughout the year for application level. The audit trail
functionality at database level is enabled, however, the system was not able to produce the report to verify
the Audit Trail.

ii) Further the software used for maintaining record relating to payroll, also has the feature of recording audit
trail (edit log) facility. The audit trail was enabled and operated throughout the year for application level
and for data base level it was enabled from 17^th December 2024.

iii) There was no instance of the audit trail feature being tampered with during the year in respect of both
these softwares.

43. There are no significant events subsequent to year ended 31 December, 2024.

^For B S R & ^Co. ^LLP For and on behalf of the Board of Directors of CIE AUTOMOTIVE INDIA LIMITED

^{Firm Re}g^ist^rat^{ion N}°. ^{101248W/W-100022} (formerly known as Mahindra CIE Automotive Limited)

Ander Arenaza Alvarez ^{Alan Savio D}'^{Silva Picardo}

Executive Director & Group CEO - DIN : 07591785 Independent Di^re^cto^r - DI^N : ^08513835

^Abhishek Manoj Menon

Partne^r Executive Director & CEO - DIN : 07642469

^Membership ^{Na 062343} _{Sunil Narke} Rajendra Vadlapudi

CEO-Forging Division CEO-Iron Casting Division

K. Jayaprakash ^{Pankaj G}°y^al

Chief Financial Officer ^Co^mpany Se^etaiy

^Mumbai, ^{February 20}, ²⁰²⁵ Mumbai, February 20, 2025 ^{FCS: F13037}