RECA Financial Statements 2025-26

See accompanying notes forming part of the financial statements

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

Chartered Accountants

ICAI Firm registration Number : 301003E/E300005

Partner Managing Director

Membership No.: 502220 DIN: 03093035

Place: Gurugram, India Place: Chennai

Date: May 20, 2026 Date: May 20, 2026

See accompanying notes forming part of the financial statements

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

Chartered Accountants

ICAI Firm registration Number : 301003E/E300005

Partner Managing Director

Membership No.: 502220 DIN: 03093035

Place: Gurugram, India Place: Chennai

Date: May 20, 2026 Date: May 20, 2026

See accompanying notes forming part of the financial statements

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

Chartered Accountants

ICAI Firm registration Number : 301003E/E300005

Partner Managing Director

Membership No.: 502220 DIN: 03093035

Place: Gurugram Place: Chennai

Date: May 20, 2026 Date: May 20, 2026

1. Equity share capital

   Particulars	Number of shares	Amount
   Equity shares of CAD 1 each issued, subscribed and fully paid
   Balance as at April 01, 2024	100	17,446
   Changes in equity share capital during the year	-	-
   Balance as at March 31, 2025	100	17,446
   Changes in equity share capital during the year	-	-
   Balance as at March 31, 2026 (refer note 8)	100	17,446

2. Other Equity

   Particulars	Retained earnings
   Balance as at April 01, 2024	240,332
   Profit for the year	97,617
   Other comprehensive income / (expense) for the year, net of income tax	-
   Total comprehensive income / (expense) for the year	337,949
   Balance as at March 31, 2025	337,949
   Profit for the year	134,145
   Other comprehensive income / (expense) for the year, net of income tax	-
   Total comprehensive income / (expense) for the year	472,094
   Balance as at March 31, 2026 (refer note 9)	472,094

   Summary of material accounting policies (refer note 3)

   See accompanying notes forming part of the financial statements

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

   For S.R. Batliboi & Co LLP of Eicher Motors Limited

   Chartered Accountants

   ICAI Firm registration Number : 301003E/E300005

   Sonika Loganey B Govindarajan

   Partner Managing Director

   Membership No.: 502220 DIN: 03093035

   Place: Gurugram Place: Chennai

   Date: May 20, 2026 Date: May 20, 2026

   NOTES FORMING PART OF SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2026
   1. Corporate Information

      Royal Enfield Canada Limited ("RECA" or "the Company") was incorporated on April 19, 2016 under the Business Corporation Act, the Company, a wholy owned subsidiary of Royal Enfield North America Limited (Holding Company).The Company is principally engaged in trading of two wheelers in Canada.The Company has its registered office at number 1055 West Georgia Street,1500, Royal Centre, P.O. Box 11117,Vancouver BC V6E 4N7, Canada

   2. Basis of Preparation
      1. Statement of Compliance

         The special purpose financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time).

         These special purpose financial statements are prepared to assist the ultimate Holding Company in preparing their consolidated financial statements and filing Annual Performance Report by the holding company with respect to company with the Authorized dealers category - I bank in accordance with the RBI Master direction -Reporting under FEMA Act, 1999 updated as at December 03,2025 issued by the RBI. As a result, the special purpose financial statements may not be suitable for any other purpose. Consequently, these financial statements do not purport to be, and are not prepared to comply with the requirements of the Companies Act, 2013 and include only those disclosures prescribed under the Companies Act, 2013 as the management deems relevant.

      2. Accounting convention

         The special purpose financial statements have been prepared on the historical cost basis except for certain financial instruments which have been measured at fair value as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. The financial statements are presented in CAD which is the company's functional currency.

      3. Operating cycle

         Based on the nature of products/ activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

   3. Material Accounting Policies

1. Current and non-current classification

   All assets and liabilities are classified into current and non-current.

   Assets

   An asset is classified as current when it satisfies any of the following criteria:

   1. it is expected to be realised in, or is intended for sale or consumption in, the company's normal operating cycle;

   2. it is held primarily for the purpose of being traded:

   3. it is expected to be realised within 12 months after the reporting date; or

   4. it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

   Liabilities

   A liability is classified as current when it satisfies any of the following criteria:

   1. it is expected to be settled in the company's normal operating cycle;

   2. it is held primarily for the purpose of being traded;

   3. it is due to be settled within 12 months after the reporting date; or

   4. the company does not have an right to defer settlement of the liability for at least 12 months after the reporting date.

   Current liabilities include the current portion of non-current financial liabilities. All other liabilities are classified as non-current.

2. Revenue from contract with customers

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements, except for the agency services below, because it typically controls the goods or services before transferring them to the customer.

Sale of goods and services

Revenue from sale of goods is recognised at a point in time when control of the goods is transferred to the customer, at the time of dispatch from the warehouse.

The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated (e.g., warranties, Road Side Assistance, Free Service Coupons, etc.). In determining the transaction price for the sale of goods, the Company considers the effects of variable consideration, the existence of significant financing components, non-cash consideration, and consideration payable to the customer (if any).

A receivable represents the Company's right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section 3(g) Financial instruments - initial recognition and subsequent measurement.