Accounting Policies of Aerpace Industries Ltd. Company

Mar 31, 2025

2. Material Accounting Policies

This note provides a list of the material accounting policies adopted in the preparation of the standalone
financial statements. These policies have been consistently applied in all material respect for all the years
presented, unless otherwise started.

2.1. Basis of Preparation of standalone financial statements

The Company''s Financial Statement for the year ended March 31, 2025 have been prepared in accordance
with provisions of the Indian AccountingStandards("Ind AS") notified under the Companies (Indian
Accounting Standards) Rules, 2015 and as amended from time to time.All assets and liabilities are classified
as current or non-current as per the company''s normal operating cycle and other criteria set out in Schedule
III to theCompanies Act, 2013. Based on the nature of products and the time between the acquisition of assets
for processing and their realisation in cash and cashequivalents, the company has ascertained its operating
cycle as 12 months for the purpose of current/ non- current classification of assets and liabilities.

These financial statements include the Balance Sheet, the Statement of Changes in Equity, the Statement of
Profit and Loss, the Statement of Cash flows andNotes, comprising a summary of significant accounting
policies and other explanatory information and comparative information in respect of the precedingperiod.

Accounting policies have been consistently applied except where a newly-issued Indian accounting
standard is initially adopted or a revision to an existing Indianaccounting standard requires a change in the
Indian accounting policy hitherto in use.

The Ind AS financial statements are presented in INR and all values are rounded to the nearest lakhs (INR
1,00,000), except when otherwise indicated. Earnings per share data are presented in Indian Rupees up to
two decimal places.

2.2. Revenue recognition

Revenue from sale of goods is recognised when the significant risks and reward of ownership and effective
control on goods have been transferred to the buyer. Sales revenue is measured at fair value net of returns,
trade discounts, volume rebates and taxes or duties. Revenue from services rendered is recognised as and
when the services are rendered and related costs are incurred in accordance with the contractual agreement.

Interest income ⁸

Interest income is accrued on time proportion basis, by reference to the principal outstanding and effective
interest rate applicable.

Other Income

Other income is recognised when no significant uncertainty as to its determination or realisation exists.
Dividend

Dividend income is recognised when to right to receive payment has been established.

Commission Income

Commission Income is accounted when it becomes due as per contract.

2.3. Property, Plant and Equipment

Property, Plant and Equipment is recognised when it is probable that future economic benefits associated
with the item will flow to the Company and thecost of the item can be measured reliably. PPE is stated at
original cost, net of tax/duty credits availed, if any, less accumulated depreciation and
cumulativeimpairment. Cost comprises the purchase price and any attributable costs of bringing the asset to
its working condition for its intended use as estimated bythe management. Any trade discounts and rebates
are deducted in arriving at the purchase price.

PPE not ready for the intended use, on the date of the Balance Sheet are disclosed as “Capital
Work-in-Progress”. Advances paid towards the acquisition of property, plant and equipment outstanding at
each balance sheet date is classified as capital advances under other non-current assets.

An item of property, plant and equipment and any significant part initially recognised is de-recognised upon
disposal or when no future economic benefitsare expected from its use or disposal. Any gain or loss arising
on de-recognition of the asset (calculated as the difference between the net disposal proceedsand the
carrying amount of the asset) is included in the income statement when the property, plant and equipment is
de-recognised.Borrowing cost relating to acquisition/construction of fixed assets which take substantial
period of time to get ready for its intended use are also included tothe extent they relate to the period till such
assets are ready to be put to use.

Depreciation is calculated on WDV basis over the estimated useful life of the assets as prescribed under Part
C of Schedule II of the Companies Act, 2013. The identified component of fixed assets are depreciated over
the useful lives and the remaining components are depreciated over the life of the principal assets.

Subsequent expenditures relating to PPE is capitalized only when it is probable that future economic benefit!
associated with these will flow to the Company and the cost can be measured reliably.

2.4. Depreciation

Depreciation is provided to the extent of depreciable amount on the Written down Value (WDV) Method.
Depreciation is provided based on useful life ofthe assets as prescribed in Schedule II to the Companies Act,
2013.

Depreciation on assets acquired/sold during the year is recognised on a pro-rata basis to the statement of
profit and loss till the date of acquisition/sale. Thecarrying amount of assets is reviewed at each balance
sheet date if there is any indication of impairment based on internal/external factors. An impairmentloss is
recognised wherever the carrying amount of an asset exceeds its recoverable amount.

The recoverable amount is the greater of the assets, net selling price and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
refects current market assessments of the time value of money and risks specific to the asset.

2.5. Intangible Assets ⁹⁰

Intangible assets acquired are measured on initial recognition at cost. Following initial recognition, intangible
assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any

Intangible assets Under Development

The costs incurred by the company during the research phase are charged to profit or loss in the year in
which they are incurred. Development phase expenses are initially recognised as intangible assets under
development until the development phase is complete, upon which the amount is capitalised as intangible
asset.

2.5. Leases

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right tocontrol the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract conveys the right to control the use ofan identified
asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company
has substantially all of theeconomic benefits from use of the asset through the period of the lease and (iii) the
Company has the right to direct the use of the asset.At the date of commencement of the lease, the Company
recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all leasearrangements in which
it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases.
For these short-term andlow value leases, the Company recognizes the lease payments as an operating
expense on a straight-line basis over the term of the lease.A lease contract is modified and the lease
modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on
thelease term of the modified lease by discounting the revised lease payments using a revised discount rate
at the effective date of the modification. Theeffective date of the modification is the date when both the
parties agree to the lease modification and is accounted for in that point in time.Right-of-use assets are
depreciated from the commencement date on a straight-line basis over the shorter of the lease term and
useful life of the underlyingasset. Right of use assets are evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying amounts may not berecoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the
value-in-use) isdetermined on an individual asset basis unless the asset does not generate cash flows that
are largely independent of those from other assets. In such cases,the recoverable amount is determined for
the Cash Generating Unit (CGU) to which the asset belongs.

2.6. Employee Benefit Expenses

All employee benefits payable within a period of twelve months of rendering service are classified as short
term employee benefits. Benefits such as salaries, allowances, advances and similar payments paid to the
employees of the Company are recognized during the period in which the employee renders such related
services.

Defined Contribution plans

Provident Fund

The Company is a member of the Government Provident Fund which is operated by the office of the Regional
Provident Fund Commissioner (RPFC) and the contribution thereof is paid /provided for during the period in
which the employee renders the related service.

Defined Benefits plans

Gratuity

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, covering eligible
employees. Employees who are in continuous service for a period of five years are eligible for gratuity.

The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per
month computed proportionately for 15 days salary multiplied by number of years of service.

Gratuity is provided as per actuarial valuation as at the Balance Sheet date, carried out by an independent
actuary. The present value of the obligation under such defined benefit plans is determined based on
actuarial valuation using the Projected Unit Credit Method.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for
determining the present value of the obligation under defined benefit plans, is based on the market yield on
government securities of a maturity period equivalent to the weighted average maturity profile of the related
obligations at the Balance Sheet date.

Re-measurement, comprising actuarial gains and losses, the return on plan Assets (excluding net interest)
and any change in the effect of asset ceiling (if applicable) are recognised in other comprehensive income
and is refected immediately in retained earnings and is reclassified to Profit and Loss.

2.7. Accounting for Taxes of Income

Current Taxes

Current Tax is determined as the amount of tax payable in respect of taxable income for the year. The
Company''s current tax is calculated using tax rates that have been enacted or substantively exacted by the
end of the reporting period.

Deferred Taxes

Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences
between the carrying values of assets and liabilitiesand their respective tax bases. Deferred tax assets and
liabilities are measured at the tax rates that are expected to apply in the period in which the liability issettled
or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by
the end of the reporting period. Themeasurement of deferred tax liabilities and assets refects the tax
consequences that would follow from the manner in which the Company expects, at the endof the reporting
period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets including that on unused tax losses and unused tax credits are recognised to the extent
that it is probable that future taxable income will be available against which the deductible temporary
differences could be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset
to be recovered.

Current and Deferred Tax for the Year

Current and deferred tax are recognised in the profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax
are also recognised in other comprehensive income or directly in equity respectively.

2.8. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get readyfor its intended use or sale are capitalised as part of
the cost of the asset. All other borrowing costs are expensed in the period in which they occur.
Borrowingcosts consist of interest and other costs that an entity incurs in connection with the borrowing of
funds. Borrowing cost also includes exchange differences tothe extent regarded as an adjustment to the
borrowing costs.

General borrowing costs are capitalised at the weighted average of such borrowings outstanding during the
year.

Investments and other financial assets

ii. Classification and Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial
assets carried at fair value through the Profit and Loss are expensed in the Statement of Profit and Loss.

Financial Assets:

Subsequent measurement of financial assets depends on the Company’s business model for managing the
asset and the cash flow characteristics of the asset. The Company classifies its financial assets into following
categories:

1. Amortised cost

Financial assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost. Interest income from these financial
assets is included in other income using the effective interest rate method.

2 . Fair value through other comprehensive Income
Financial assets with a business model:

(A) Whose objective is achieved by both collecting contractual cash flows and selling financial assets and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding and

(B) where the Company has exercised the option to classify the investment as at fair value through other
comprehensive income, all fair value changes on the assets are recognised in OCI. The accumulated gains or
losses recognised in OCI are reclassified to retained earnings on sale of such investments.

3. Fair value through Profit and Loss:

Financial assets which are not classified in any of the categories above are fair value through profit or loss.
Equity instruments:

The Company measures its equity investment other than in subsidiaries, joint ventures and associates at fair
value through profit and loss. The investment in subsidiaries, associates and joint ventures are measured at
cost.

iii. De-recognition

Current and deferred tax are recognised in the profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax
are also recognised in other comprehensive income or directly in equity respectively.

Financial liabilities:

i. Measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instrument. Financial liabilities are initially measured at the amortised cost unless at initial recognition, they
are classified as fair value through profit and loss. Other financial liabilities (including borrowings and trade
and other payables) are subsequently measured at amortised cost using the effective interest method.

ii. De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liabilityis replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such anexchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability. The
difference in the respectivecarrying amounts is recognised in the statement of profit or loss.

Derivative financial Instrument ⁹²

A derivative is a financial instrument which changes in value in response to changes in an underlying asset
and is settled at a future date. Derivativesare initially recognised at fair value on the date a derivative contract
is entered into and are subsequently re-measured at their fair value. The methodof recognising the resulting
gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of
the itembeing hedged. The Company designates certain derivatives as either:

(a) Hedges of the fair value of recognised assets or liabilities (fair value hedge); or

(b) Hedges of a particular risk associated with a firm commitment or a highly probable forecast transaction
(cash flow hedge);

The Company documents at the inception of the transaction the relationship between hedging instruments
and hedged items, as well as its riskmanagement objectives and strategy for undertaking various hedging
transactions. The Company also documents its assessment, both at hedgeinception and on an on-going
basis, of whether the derivatives that are used in hedging transactions are effective in offsetting changes in
cash flowsof hedged items. Movements in the hedging reserve are accounted in other comprehensive
income and are shown within the statement of changes inequity. The full fair value of a hedging derivative is
classified as a noncurrent asset or liability when the remaining maturity of hedged item is morethan 12
months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12
months. Trading derivatives areclassified as a current asset or liability.

i . Fair value hedge

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in
the Statement of Profit and Loss, together with any changes in the fair value of the hedged asset or liability
that are attributable to the hedged risk. The Company only applies fair value hedge accounting for hedging
foreign exchange risk on recognised assets and liabilities.

ii. Cash Flow Hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges is recognised in other comprehensive income. The ineffective portion of changes in the fair value of
the derivative is recognised in the Statement of Profit and Loss. Gains or losses accumulated in equity are
reclassified to the statement of profit and loss in the periods when the hedged item affects the Statement of
Profit and Loss.

When a hedging instrument expires or is swapped or unwound, or when a hedge no longer meets the criteria
for hedge accounting, any accumulated gain or loss in other equity remains there and is reclassified to
Statement of Profit and Loss when the forecasted cash flows affect profit or loss. When a forecasted
transaction is no longer expected to occur, the cumulative gains/losses that were reported in equity are
immediately transferred to the Statement of Profit and Loss.

2.10. Impairment of financial assets & non-fnancial assets

a. Financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets
which are not fair valued through profitor loss. Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to lifetime ECL. For all otherfinancial assets, ECLs are
measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk
from initialrecognition in which case those are measured at lifetime ECL. The amount of ECL (or reversal) that
is required to adjust the loss allowance at thereporting date to the amount that is required to be recognized is
recognized as an impairment gain or loss in the Statement of Profit and Loss.

b. Non-fnancial assets

Intangible assets and Property, Plant and Equipment are evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in
use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to
which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and
Loss is measured by the amount by whichthe carrying value of the assets exceeds the estimated recoverable
amount of the asset. An impairment loss is reversed in the Statement of Profit andLoss if there has been a
change in the estimates used to determine the recoverable amount. The carrying amount of the asset is
increased to its revisedrecoverable amount, provided that this amount does not exceed the carrying amount
that would have been determined (net of any accumulatedamortization or depreciation) had no impairment
loss been recognized for the asset in prior year.

Intangible assets with indefinite useful lives are tested for impairment annually as at year end at the CGU
level, as appropriate and when circumstances indicate that the carrying value may be impaired.

2.10. Fair value measurement

The Company measures financial instruments, such as, derivatives and investments at fair value as per IND
AS 113 at each balance sheet date. All assets and liabilities for which fair value is measured or disclosed in the
standalone 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 — The fair value of financial instruments traded in active markets (such as publicly traded derivatives,
and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market
price used for financial assets held by the group is the current bid price. These instruments are included in
level 1.

Level 2 — The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on
entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.

Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3. This is the case for unlisted equity securities and investment in private equity funds, real
estate funds.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.

2.10. Key Accounting Estimates And Judgments

The preparation of standalone financial statements requires management to make judgments, estimates and
assumptions in the application of accountingpolicies that affect the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates. Estimates and underlyingassumptions
are reviewed on ongoing basis. Any changes to accounting estimates are recognized prospectively.
Information about critical judgments inapplying accounting policies, as well as estimates and assumptions
that have the most significant effect on the amounts recognised in the standalone financialstatements are
included in the following notes:

i. Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period.
This reassessment may result in change in depreciation expense in future periods.

ii. Impairment of non - financial assets ⁹⁴

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount,which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs
of disposalcalculation is based on available data from binding sales transactions, conducted at arm’s length,
for similar assetsor observable market prices less incremental costs for disposing of the asset. The value in
use calculation is basedon a DCF model. The cash flows are derived from the budget for the next five years
and do not includerestructuring activities that the Company is not yet committed to or significant future
investments that will enhancethe asset’s performance of the CGU being tested. The recoverable amount is
sensitive to the discount rate used forthe DCF model as well as the expected future cash-inflows and the
growth rate used for extrapolation purposes.These estimates are most relevant to disclosure of fair value of
investment property recorded by the Company.

iii. Provision for Contingent Liabilities

On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies.
Forcontingent losses that are considered probable, an estimated loss is recorded as an accrual in standalone
financialstatements. Loss Contingencies that are considered possible are not provided for but disclosed as
Contingentliabilities in the standalone financial statements. Contingencies the likelihood of which is remote
are not disclosedin the standalone financial statements. Gain contingencies are not recognized until the
contingency has beenresolved and amounts are received or receivable.

iv. Valuation of deferred tax assets

The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. The
policy for the same has been explained under note above.

v. Defined benefit plans

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present
value ofthe gratuity obligation are determined using actuarial valuations. An actuarial valuation involves
making variousassumptions that may differ from actual developments in the future. These include the
determination of thediscount rate, future salary increases and mortality rates. Due to the complexities
involved in the valuation and itslong-term nature, a defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptionsare reviewed at each reporting date.

2.12. Foreign exchange transactions and translation

Transactions in foreign currencies i.e. other than the Company’s functional currency of Indian Rupees
arerecognised at the rates of exchange prevailing at the dates of the transactions. At the end of each
reporting period,monetary items denominated in foreign currencies are translated at the functional currency
using exchange ratesprevailing at that date. Non-monetary items carried at fair value that are denominated in
foreign currencies areretranslated at the rates prevailing at the date when the fair value is determined.
Non-monetary items that aremeasured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences on monetaryitems are recognised in profit or loss in the period in which they arise
except for exchange differences ontransactions entered into in order to hedge certain foreign currency risks
(refer policy on Derivative Financiallnstruments and Hedge Accounting).

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Mar 31, 2024

2. Significant Accounting Policies

This note provides a list of the significant accounting policies adopted in the preparation of the financial statements. These policies have been consistently applied in all material respect for all the years presented, unless otherwise started.

2.1 Basis of Preparation of financial statements

The Company''s Financial Statement for the year ended March 31, 2024 have been prepared in accordance with provisions of the Indian Accounting Standards("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 and as amended from time to time. All assets and liabilities are classified as current or non-current as per the company''s normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current/ non- current classification of assets and liabilities.

These financial statements include the Balance Sheet, the Statement of Changes in Equity, the Statement of Profit and Loss, the Statement of Cash flows and Notes, comprising a summary of significant accounting policies and other explanatory information and comparative information in respect of the preceding period. Accounting policies have been consistently applied except where a newly-issued Indian accounting standard is initially adopted or a revision to an existing Indian accounting standard requires a change in the Indian accounting policy hitherto in use.

The Ind AS financial statements are presented in INR and all values are rounded to the nearest lakhs (INR 1,00,000), except when otherwise indicated. Earnings per share data are presented in Indian Rupees up to two decimal places.

2.2 Revenue recognition

Revenue from sale of goods is recognised when the significant risks and reward of ownership and effective control on goods have been transferred to the buyer. Sales revenue is measured at fair value net of returns, trade discounts, volume rebates and taxes or duties. Revenue from services rendered is recognised as and when the services are rendered and related costs are incurred in accordance with the contractual agreement.

Interest income

Interest income is accrued on time proportion basis, by reference to the principal outstanding and effective interest rate applicable.

Other income

Other income is recognised when no significant uncertainty as to its determination or realisation exists.

Dividend income

Dividend income is recognised when to right to receive payment has been established.

Commission Income

Commission Income is accounted when it becomes due as per contract.

2.3 Property, Plant and Equipment

Property, Plant and Equipment is recognised when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. PPE is stated at original cost, net of tax/duty credits availed, if any, less accumulated depreciation and cumulative impairment. Cost comprises the purchase price and any attributable costs of bringing the asset to its working condition for its intended use as estimated by the management. Any trade discounts and rebates are deducted in arriving at the purchase price.

PPE not ready for the intended use, on the date of the Balance Sheet are disclosed as “Capital Work-inProgress”.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non-current assets.

An item of property, plant and equipment and any significant part initially recognised is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the property, plant and equipment is derecognised.

Borrowing cost relating to acquisition/construction of fixed assets which take substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use.

Depreciation is calculated on WDV basis over the estimated useful life of the assets as prescribed under Part C of Schedule II of the Companies Act, 2013. The identified component of fixed assets are depreciated over the useful lives and the remaining components are depreciated over the life of the principal assets.

Subsequent expenditures relating to PPE is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost can be measured reliably.

2.4 Depreciation

Depreciation is provided to the extent of depreciable amount on the Written down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

Depreciation on assets acquired/sold during the year is recognised on a pro-rata basis to the statement of profit and loss till the date of acquisition/sale. The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset.

2.5 Intangible Assets

Intangible assets acquired are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any.

Intangible assets Under Development

The costs incurred by the company during the research phase are charged to profit or loss in the year in which they are incurred. Development phase expenses are initially recognised as intangible assets under development until the development phase is complete, upon which the amount is capitalised as intangible asset.

2.6 Leases

The Company as a lessee

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification. The effective date of the modification is the date when both the parties agree to the lease modification and is accounted for in that point in time.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-inuse) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs

2.7 Employee Benefit Expenses

All employee benefits payable within a period of twelve months of rendering service are classified as short term employee benefits. Benefits such as salaries, allowances, advances and similar payments paid to the employees of the Company are recognized during the period in which the employee renders such related services.

Defined Contribution plans

Provident Fund: The Company is a member of the Government Provident Fund which is operated by the office of the Regional Provident Fund Commissioner (RPFC) and the contribution thereof is paid /provided for during the period in which the employee renders the related service.

Defined Benefits plans

Gratuity: In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, covering eligible employees. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service. Gratuity is provided as per actuarial valuation as at the Balance Sheet date, carried out by an independent actuary. The present value of the obligation under such defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit Method. The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans, is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date. Re-measurement, comprising actuarial gains and losses, the return on plan Assets (excluding net interest) and any change in the effect of asset ceiling (if applicable) are recognised in other comprehensive income and is reflected immediately in retained earnings and is reclassified to Profit and Loss.

2.8 Accounting for Taxes of Income

Current Taxes

Current Tax is determined as the amount of tax payable in respect of taxable income for the year. The Company''s current tax is calculated using tax rates that have been enacted or substantively exacted by the end of the reporting period.

Deferred Taxes

Deferred tax assets and liabilities are recognised for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets including that on unused tax losses and unused tax credits are recognised to the extent that it is probable that future taxable income will be available against which the deductible temporary differences could be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Current and Deferred Tax for the Year

Current and deferred tax are recognised in the profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

2.9 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily

takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

2.10 Financial instruments

Financial Assets

The Company recognizes a financial asset in its balance sheet when it becomes party to the contractual provisions of the instrument. 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 (FVTPL), transaction cost that are attributable to the acquisition of the financial asset.

Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognized as a gain or loss in the Statement of Profit and Loss.

However trade receivables that do not contain a significant financing component are measured at transaction price.

Investments and other financial assets

(ii) Classification and Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial assets carried at fair value through the Profit and Loss are expensed in the Statement of Profit and Loss.

Financial Assets:

1. Amortised cost:

Financial assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in other income using the effective interest rate method.

2. Fair value through other comprehensive Income:

Financial assets with a business model:

(A) Whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding and

(B) where the Company has exercised the option to classify the investment as at fair value through other comprehensive income, all fair value changes on the assets are recognised in OCI. The accumulated gains or losses recognised in OCI are reclassified to retained earnings on sale of such investments.

3. Fair value through Profit and Loss:

Financial assets which are not classified in any of the categories above are fair value through profit or loss.

Equity instruments:

The Company measures its equity investment other than in subsidiaries, joint ventures and associates at fair value through profit and loss. The investment in subsidiaries, associates and joint ventures are measured at cost.

(iii) De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized (i.e. removed from the Company''s balance sheet) when any of the following occurs:

i. The contractual rights to cash flows from the financial asset expires;

ii The Company transfers its contractual rights to received cash flows of the financial assets and has substantially transferred all the risk and rewards of ownership of the financial assets;

iii The Company retains the contractual rights to receive cash flows but assumes a contractual obligations to pay the cash flows without material delay to one or more recipients under a ‘passthrough'' arrangement (thereby substantially transferring all the risks and rewards of ownership of the financial asset);

iv The Company neither transfers nor retains substantially all risk and rewards of ownership and does not retain control over the financial asset.

Financial liabilities:

(i) Measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as fair value through profit and loss. Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method.

(ii) De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Derivative financial Instrument

A derivative is a financial instrument which changes in value in response to changes in an underlying asset and is settled at a future date. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Company designates certain derivatives as either:

(a) Hedges of the fair value of recognised assets or liabilities (fair value hedge); or (b) Hedges of a particular risk associated with a firm commitment or a highly probable forecast transaction (cash flow hedge);

The Company documents at the inception of the transaction the relationship between hedging instruments and

hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an on-going basis, of whether the derivatives that are used in hedging transactions are effective in offsetting changes in cash flows of hedged items. Movements in the hedging reserve are accounted in other comprehensive income and are shown within the statement of changes in equity. The full fair value of a hedging derivative is classified as a noncurrent asset or liability when the remaining maturity of hedged item is more than 12 months, and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. Trading derivatives are classified as a current asset or liability.

(i) Fair value hedge

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the Statement of Profit and Loss, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The Company only applies fair value hedge accounting for hedging foreign exchange risk on recognised assets and liabilities.

(ii) Cash Flow Hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income. The ineffective portion of changes in the fair value of the derivative is recognised in the Statement of Profit and Loss. Gains or losses accumulated in equity are reclassified to the statement of profit and loss in the periods when the hedged item affects the Statement of Profit and Loss.

When a hedging instrument expires or is swapped or unwound, or when a hedge no longer meets the criteria for hedge accounting, any accumulated gain or loss in other equity remains there and is reclassified to Statement of Profit and Loss when the forecasted cash flows affect profit or loss. When a forecasted transaction is no longer expected to occur, the cumulative gains/losses that were reported in equity are immediately transferred to the Statement of Profit and Loss.

2.11 Impairment of financial assets & non-financial assets

a. Financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, ECLs are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in the Statement of Profit and Loss.

b. Non-financial assets

Intangible assets and Property, Plant and Equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs. tual obligations to pay the cash flows without material delay to one or more recipients under a ‘pass-through'' arrangement (thereby substantially transferring all the risks and rewards of ownership of the financial asset);

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount

of the asset. An impairment loss is reversed in the Statement of Profit and Loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior year.

Intangible assets with indefinite useful lives are tested for impairment annually as at year end at the CGU level, as appropriate and when circumstances indicate that the carrying value may be impaired.

2.12 Fair value measurement

The Company measures financial instruments, such as, derivatives and investments at fair value as per IND AS 113 at each balance sheet date. All assets and liabilities for which fair value is measured or disclosed in the standalone 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 — The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2 — The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities and investment in private equity funds, real estate funds.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

2.13 Key Accounting Estimates And Judgments

The preparation of standalone financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on ongoing basis. Any changes to accounting estimates are recognized prospectively. Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect on the amounts recognised in the standalone financial statements are included in the following notes:

(i) Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

(ii) Impairment of non - financial assetsImpairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset.

The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to disclosure of fair value of investment property recorded by the Company.

(iii) Provision for Contingent Liabilities

On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in standalone financial statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the standalone financial statements. Contingencies the likelihood of which is remote are not disclosed in the standalone financial statements. Gain contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.

(iv) Valuation of deferred tax assets

The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. The policy for the same has been explained under note above.

(v) Defined benefit plans

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

2.14 Foreign exchange transactions and translation

The ComTransactions in foreign currencies i.e. other than the Company''s functional currency of Indian Rupees are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the functional currency using exchange rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value is determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for exchange differences on transactions entered into in order to hedge certain foreign currency risks (refer policy on Derivative Financial Instruments and Hedge Accounting).

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Mar 31, 2023

1. Corporate information

aerpace Industries Limited (''the Company'') (Formerly known as Supremex Shine Steels Limited) is a Public Limited Company incorporated on 04th March, 2011 and domiciled in India and has its registered office at 1005, 10th Floor, A Wing, Kanakia Wall Street, Andheri Kurla Road, Andheri (East), Mumbai-400093. The Company has its primary listing on the Bombay Stock Exchange (BSE). The company is engaged into business of renewable energy and infrastructure.

2. Significant Accounting Policies

This note provides a list of the significant accounting policies adopted in the preparation of the financial statements. These policies have been consistently applied in all material respect for all the years presented, unless otherwise started.

2.1 Basis of Preparation of financial statements

The Company''s Financial Statement for the year ended March 31, 2023 have been prepared in accordance with provisions of the Indian Accounting Standards("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015 and as amended from time to time. All assets and liabilities are classified as current or non-current as per the company''s normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current/ non- current classification of assets and liabilities.

2.2 Use of estimates

The preparation of financial statements requires management of the Company to make estimates and assumptions that effect the reported assets and liabilities, revenue and expenses and disclosures relating to contingent liabilities. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Examples of such estimates include estimation of useful lives of tangible and intangible assets, valuation of inventories, sales return, employee costs, assessments of recoverable amounts of deferred tax assets and cash generating units, provisions against litigations and contingencies. Estimates and underlying assumptions are reviewed by management at each reporting date. Actual results could differ from these estimates. Any revision of these estimates is recognised prospectively in the current and future periods.

2.3 Current versus non-current classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

2.4 Foreign Currency Transaction and Translation

i. Functional and Presentation Currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency'').

The financial statements are presented in Indian Rupees in lakhs, which is the Company''s functional and presentation currency.

ii. Transactions and Balances

a. In preparing the financial statements transactions in currencies other than the entity''s functional currency foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions.

b. At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing at that date.

c. Non-monetary items are measured at historical cost. Exchange differences on monetary items are recognised in the statement of profit and loss in the period in which they arise except when deferred in other comprehensive income as qualifying cash flow hedges.

d. Exchange differences arising on the settlement of monetary items, and on retranslation of monetary items are included in the statement of profit and loss for the period. Exchange differences arising on retranslation on nonmonetary items carried at fair value are included in statement of profit and loss for the period except for differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognised directly in other comprehensive income.

2.5 Property, Plant and Equipment

Property,Plant and Equipment is recognised when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. PPE is stated at original cost, net of tax/duty credits availed, if any, less accumulated depreciation and cumulative impairment.Cost comprises the purchase price and any attributable costs of bringing the asset to its working condition for its intended use as estimated by the management. Any trade discounts and rebates are deducted in arriving at the purchase price.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement, if the recognition criteria are satisfied. The carrying values of Property, Plant and Equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. PPE not ready for the intended use, on the date of the Balance Sheet are disclosed as “Capital Work-in-Progress”.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital advances under other non-current assets. An item of property, plant and equipment and any significant part initially recognised is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the property, plant and equipment is de-recognised.

Depreciation is calculated on WDV basis over the estimated useful life of the assets as prescribed under Part C of Schedule II of the Companies Act, 2013. The identified component of fixed assets are depreciated over the useful lives and the remaining components are depreciated over the life of the principal assets.

Subsequent expenditures relating to PPE is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost can be measured reliably.

2.6 Leases

The Company as a lessee

A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification. The effective date of the modification is the date when both the parties agree to the lease modification and is accounted for in that point in time. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

2.7 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

General borrowing costs are capitalised at the weighted average of such borrowings outstanding during the year.

2.8 Inventories are valued as under

Traded Goods:

Valued at lower of cost or net realizable value and for this purpose cost is determined on weighted average basis. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

2.9 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. For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash and short-term deposits.

2.10 Cash flow statement

Cash flows are reported using the indirect method, whereby profit for the period 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.

2.11 Impairment of financial assets & non-financial assets

a. Financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, ECLs are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in the Statement of Profit and Loss.

b. Non-financial assets

Intangible assets and Property, Plant and Equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-inuse) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the Statement of Profit and Loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior year.

Intangible assets with indefinite useful lives are tested for impairment annually as at year end at the CGU level, as appropriate and when circumstances indicate that the carrying value may be impaired.

2.12 Revenue recognition

Revenue from sale of goods is recognised when the significant risks and reward of ownership and effective control on goods have been transferred to the buyer. Sales revenue is measured at fair value net of returns, trade discounts, volume rebates and taxes or duties. Revenue from services rendered is recognised as and when the services are rendered and related costs are incurred in accordance with the contractual agreement.

Interest income

Interest income is accrued on time proportion basis, by reference to the principal outstanding and effective interest rate applicable.

Other income

Other income is recognised when no significant uncertainty as to its determination or realisation exists.

Dividend

Dividend income is recognised when to right to receive payment has been established.

Commission Income

Commission Income is accounted when it becomes due as per contract.

2.13 Employee Benefit Expenses

All employee benefits payable within a period of twelve months of rendering service are classified as short term employee benefits. Benefits such as salaries, allowances, advances and similar payments paid to the employees of the Company are recognized during the period in which the employee renders such related services.

Defined Contribution plans

Provident Fund: The Company is a member of the Government Provident Fund which is operated by the office of the Regional Provident Fund Commissioner (RPFC) and the

contribution thereof is paid /provided for during the period in which the employee renders the related service. Defined Benefits plans

Gratuity: In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, covering eligible employees. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service. Gratuity is provided as per actuarial valuation as at the Balance Sheet date, carried out by an independent actuary. The present value of the obligation under such defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit Method. The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans, is based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date. Re-measurement, comprising actuarial gains and losses, the return on plan Assets (excluding net interest) and any change in the effect of asset ceiling (if applicable) are recognised in other comprehensive income and is reflected immediately in retained earnings and is reclassified to Profit and Loss.

2.14 Taxes

Tax expenses comprise of current and deferred tax.

Current income tax

a. Current tax is measured at the amount expected to be paid on the basis of reliefs and deductions available in accordance with the provisions of the Income Tax Act, 1961.a. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

b. Current tax items are recognised in correlation to the underlying transaction either in P&L, OCI or directly in equity.

Deferred tax

a. Deferred tax is provided using the balance sheet approach on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

b. Deferred tax liabilities are recognised for all taxable temporary differences.

c. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, the carry forward of unused tax credits and unused tax losses can be utilized.

d. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

e. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates [and tax laws] that have been enacted or substantively enacted at the reporting date.

f. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

g. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities.

2.15 Earnings Per Share (EPS)

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.

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

2.16 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has present obligation (legal or constructive) as a result of past events, for which 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 for the amount of the obligation.

Contingent Liabilities are disclosed by way of notes to Financial Statements. Contingent assets are not recognised in the financial statements but are disclosed in the notes to the financial statements where an inflow of economic benefits is probable. Provisions and contingent liabilities are reviewed at each Balance Sheet date.

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.

2.17 Financial instruments A Financial Assets

The Company recognizes a financial asset in its balance sheet when it becomes party to the contractual provisions of the instrument. All financial assets are recognized initially at fair value, plus in the case of financial assets not

Where the fair value of a financial asset at initial recognition is different from its transaction price, the difference between the fair value and the transaction price is recognized as a gain or loss in the Statement of Profit and Loss. However trade receivables that do not contain a significant financing component are measured at transaction price.

Investments and other financial assets

(ii) Classification and Measurement

At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial assets carried at fair value through the Profit and Loss are expensed in the Statement of Profit and Loss.

Financial Assets:

Subsequent measurement of financial assets depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. The Company classifies its finacial assets into following categories:

1 Amortised cost:

Financial assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at

amortised cost. Interest income from these financial assets is included in other income using the effective interest rate method.

2 Fair value through other comprehensive Income:

Financial assets with a business model: (A) Whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding and (B) where the Company has exercised the option to classify the investment as at fair value through other comprehensive income, all fair value changes on the assets are recognised in OCI. The accumulated gains or losses recognised in OCI are reclassified to retained earnings on sale of such investments.

3 Fair value through Profit and Loss:

Financial assets which are not classified in any of the categories above are fair value through profit or loss.

(iii) De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized (i.e. removed from the Company''s balance sheet) when any of the following occurs:

i. The contractual rights to cash flows from the financial asset expires;

ii. The Company transfers its contractual rights to received cash flows of the financial assets and has substantially transferred all the risk and rewards of ownership of the financial assets.

iii. The Company retains the contractual rights to receive cash flows but assumes a contractual obligations to pay the cash flows without material delay to one or more recipients under a ‘pass-through'' arrangement (thereby substantially transferring all the risks and rewards of ownership of the financial asset);

iv. The Company neither transfers nor retains substantially all risk and rewards of ownership and does not retain control over the financial asset.

B Financial liabilities:

(i) Measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as fair value through profit and loss. Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method.

(ii) De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

2.18 Fair value measurement

The Company measures financial instruments, such as, derivatives and investments at fair value as per IND AS 113 at each balance sheet date. 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 — The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2 — The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities and investment in private equity funds, real estate funds.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

2.19 Key Accounting Estimates And Judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on ongoing basis. Any changes to accounting estimates are recognized prospectively. Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect on the amounts recognised in the financial statements are included in the following notes:

(i) Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods. future periods.

(ii) Impairment of non - financial assets (iii) Provision for Contingent Liabilities

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to disclosure of fair value of investment property recorded by the Company.

(iii) Provision for Contingent Liabilities

On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the likelihood of which is remote are not disclosed in the financial statements. Gain contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.

(iv) Valuation of deferred tax assets

The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. The policy for the same has been explained under note above.

(v) Defined benefit plans

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

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Mar 31, 2016

Additional Disclosure 1(A):

I) During the Financial year 2013-14 Equity shares of Rs. 10/- each subdivided into 10 shares of Re 1/- each with effectfrom 1/10/2013 accordingly total numberof equity shares are 3,15,40,000 ii) 31,04,000 Shares were alloted in the last 5 years pursuant to the Scheme of arrangement between Intellivete Capital Ventures Ltd, the demerged Company and Intellivate Capital Advisors Ltd, the First resulting Company and ICVL Chemicals Ltd, the Second resulting company and ICVL Steels Ltd, the Third resulting company and their respective shareholders became effective on 20th January, 2012.

Note 1. (d) Rights,Preferences & Restrictions attach to equity shares

The Company has one class of Equity shares having par value of Re 1/- per share(Previous year Re 1/- per share). Each shareholder is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annul General Meeting, except in case of interim devidend.In the event of liquidation, the Equity Shareholder are eligible to receive the remaining assest of the company after distribution to all preferencial amounts, in proportion to theirshareholding.

Note 16.

Corporate information

ICVL Steels Limited (the Company) is a Public Company and is incorporated under the provisions of The Companies Act,1956. The company is engaged in the Business of trading in Steels & Shares.

Note 17.

Significant accounting policies

17.1 Basis of accounting and preparation of financial statements

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 (as amended) issued by the Central Govt. in terms of section 211 (3C) of the Companies Act, 1956 (the Act) (which continue to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circullar 15/2013 dated 13 September of the Ministry of Corporate Affairs). Thefinancial statements have been prepared on accrual basis under the historical cost convention.The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year and comply with the mandatory accounting standards and statements issued by Institute of Chartered Accountants of India (ICAI).

Assets and Liabilities are classified as current if it is expected to realise orsettle within 12 months after Balance Sheet.

17.2 Use of estimates

The preparation of the financial statements in conformity with Indian Generally Accepted Accounting Principles (Indian GAAP) requires the Management to make judgements, estimates and assumptions that affect the application of Accounting Policies and reported amounts of Assets and Liabilities, Income and Expenses and disclosure of Contigent Liabilities at the end of Financial Statements. The Management believes that the estimates made in the preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

17.3 Tangiblefixed assets

''Fixed assets, are stated atcost less accumulated depreciation / amortisation and impariment loss if any.

cost comprises the purchase price and any attributable cost of bring the assets to its working condotions for its intended

use.

Intangible assets

Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss ifany.

17.4 Depreciation and amortisation

Depreciation on Fixed Assets has been charged as per revised rates of depreciation prescribed in Schedule XIV to the CompaniesAct, 1956.

Depreciation in respect of Assets acquired / Purchased / sold / dicarded during theyear has been provided on pro-rata basis.

Intangible assets are amortised overuseful life of the assets.

17.5 Investments

Long term investments are stated atcost less provision, for diminution which is other than temporary in nature. Current investments stated at lowerofcostormarketvalue.

17.6 Revenue recognition

Sales are recognized when all significant risks and rewards of ownership have been transferred to the buyer and recorded netofftradediscountSalesTax/ValueAddedTax.

Interest, as and when applicable, on refunds from statutory authorities is recognized when such interest is determinable,

based on completed proceedings. Other interest income is recognized using time proportion method, based on interest rate implicit in the transactions. Profit on sale of investments is recognized on completion of transactions.

17.7 Expenses

All materials known expenses and liabilities are provided for according to mercantile system on the basis of available information orestimates.

17.8 Foreign currency transaction

Transactions denominated in foreign currency are recorded at the exchange rates prevailing on the date of transactions. Exchange difference arising on foreign exchange transactions settled during the year are recognized in the profit and loss accounts of the year.

17.9 Employee benefits

Shortterm employee benefits are recognized as expenses at the undiscounted amounts in the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss Account of theyear in which the employee has rendered services. The expense is recognized at the present value of the amount payable, determined as per Actuarial Valuations. Actuarial gains and losses in respect of post employment and long term employee benefits are recognized in the Profit and Loss Account.

17.10 Taxes on income

Tax expense comprises both current tax & deferred tax. Current tax is the amount of tax payable on the assessable incomefortheyeardetermined in accordance with the provisions of Income TaxAct 1961.

Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assests on unabsorbed tax losses and taxdepreciation are recognised only when there is virtual certainty of their realiasation and or other items when there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assests can be realised. The tax effect is calculated and recognised at the rate of Income Tax pervailing at the Balance Sheet date or at the substantively enacted tax rate, subject to the consideration of purdance as per the Accounting Standards-22 “Accounting forTaxes on Income”.

17.11 Provisions and contingencies

A provision is recognised when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amountof the obligation. Adisclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably may not, require an outflow of resources. When there is a possible obligation or a present obligaion in respect of which likely hood of outflow of resources is remote, no provision or disclosure is made. Loss contingencies arising from claims, litigations, assessments, fines, penalties etc. are recorded when it is probable that the liability has been incurred and the amount can be resonablyestimated.

17.14 As regards compliance of Provision as per the requirement of Sec 22 of the Micro, Small and Medium enterprises act 2006 relating to dues to the Micro, Small and Medium enterprises. The company has not received from any parties claim to be small scale industries and the said information is not given.

17.15 Segment Information

The company is operating only in one segment.

17.16 Related partydisclosures under Accounting Standard -18 List of Related Parties where Control exists:

Samruddhi Finstock Ltd

Samco Securities Ltd(formerly known as Samruddhi Stock Brokers Ltd)

Samco Ventures Pvt Ltd

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Mar 31, 2015

1.1 'Basis of accounting and preparation of financial statements

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 (as amended) issued by the Central Govt. in terms of section 211 (3C) of the Companies Act, 1956 (the Act) (which continue to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13 September of the Ministry of Corporate Affairs). The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year and comply with the mandatory accounting standards and statements issued byInstitute ofCharteredAccountantsofIndia(ICAI).

Assets and Liabilities are classified as current if it is expected to realise or settle within 12 months after Balance Sheet date.

1.2 'Use of estimates

The preparation of the financial statements in conformity with Indian Generally Accepted Accounting Principles (Indian GAAP) requires the Management to make judgements, estimates and assumptions that affect the application of Accounting Policies and reported amounts of Assets and Liabilities, Income and Expenses and disclosure of Contingent Liabilities at the end of Financial Statements. The Management believes that the estimates made in the preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Tangible fixed assets

'Fixed assets, are stated at cost less accumulated depreciation / amortisation and impairment loss if any.

cost comprises the purchase price and any attributable cost of bring the assets to its working condotions for its intended use.

Intangible assets

Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss if any.

1.4 'Depreciation and amortisation

Pursuant to the enactment of the Companies Act,2013 ('the Act), becoming effective from 1st April, 2014, the Company has applied the estimated useful life as specified in the schedule II, accordingly depreciation is Provided on Revised Carrying Amount of the Assets over it's remaining useful life on WDV Method.

'Depreciation in respect of Assets acquired / Purchased / sold / discarded during the year has been provided on pro-rata basis.

'Intangible assets are amortised overuseful life of the assets.

1.5 Investments

Long term investments are stated at cost less provision, for diminution which is other than temporary in nature. Current investments stated at lower of cost or market value.

1.6 'Revenue recognition

Sales are recognized when all significant risks and rewards of ownership have been transferred to the buyer and recorded net off trade discount Sales Tax / Value Added Tax

Interest, as and when applicable, on refunds from statutory authorities is recognized when such interest is determinable, based on completed proceedings. Other interest income is recognized using time proportion method, based on interest rate implicit in the transactions. Profit-on sale of investments is recognized on completion of transactions.

1.7 Expenses

All materials known expenses and liabilities are provided for according to mercantile system on the basis of available information or estimates.

1.8 'Foreign currency transaction

Transactions denominated in foreign currency are recorded at the exchange rates prevailing on the date of transactions. Exchange difference arising on foreign exchange transactions settled during the year are recognized in the profit and loss accounts of the year.

1.9 'Employee benefits

Short term employee benefits are recognized as expenses at the undiscounted amounts in the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss Account of the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable, determined as per Actuarial Valuations. Actuarial gains and losses in respect of post employment and long term employee benefits are recognized in the Profit and Loss Account.

1.10 'Taxes on income

Tax expense comprises both current tax & deferred tax. Current tax is the amount of tax payable on the assessable income for the year determined in accordance with the provisionsofIncomeTaxAct1961. Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognised only when there is virtual certainty of their realisation and or other items when there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assests can be realised. The tax effect is calculated and recognised at the rate of Income Tax prevailing at the Balance Sheet date or at the substantively enacted tax rate, subject to the consideration of purdance as per the Accounting Standards - 22" Accounting for Taxes on Income".

1.11 'Provisions and contingencies

'A provision is recognised when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may but probably may not, require an outflow of resources. When there is a possible obligation or a present obligaion in respect of which likely hood of outflow of resources is remote, no provision or disclosure is made. Loss contingencies arising from claims, litigations, assessments, fines, penalties etc. are recorded when it is probable that the liability has been incurred and the amount can be resonably estimated.

1.12 Payment to Auditors

Particulars 31.03.2015 31.03.2014

Audit Fees Rs. 24719 Rs. 24719

For other services Rs. 20270 Rs. 20225

1.13 'As regards compliance of Provision as per the requirement of Sec 22 of the Micro, Small and Medium enterprises act 2006 relating to dues to the Micro, Small and Medium enterprises. The company has not received from any parties claim to be small scale industries and the said information is not given.

1.14 'Segment Information

The company is operating only in one segment.

1.15 Related party disclosures under Accounting Standard-18

List of Related Parties where Control exists:

Samruddhi Finstock Ltd

Samco Securities Ltd(formerly known as Samruddhi Stock Brokers Ltd)

Samco Ventures Pvt Ltd

Samco Commodities Ltd(formerly known as Samruddhi Tradecom India. Ltd)

Bombay Exim Pvt Ltd

Jinal Finvest Pvt Ltd

Jimeet Developers Pvt Ltd

Ashwa Realty (India) Pvt Ltd

Galaxy Realty Pvt Ltd

Niralee Properties Pvt Ltd

High Rise Realty Pvt Ltd

Anish Properties Pvt Ltd

Saria Builders & Developers Pvt Ltd

Rock Builders and Developers Pvt Ltd

Piyali Builders& Developers Pvt Ltd

Win Sure Trade Invest Private Limited

Hansa Villa Realty Private Limited

Intellivate Capital Advisors Ltd.

Intellivate Capital Ventures Ltd.

1.16 Retirement Benefits

'Long Term Employee Benefits are not provided because no employee has completed full year of service.

1.18 Provision for Taxes

Provision for current tax has been made as per the provisions of the Income Tax Act 1961.

1.19 'In the opinion of Management, the Current Assets, Loans and Advances are approximately of the value as stated if realised in the ordinary course of business.

1.20 'Balances standing to the debit/credit of parties is subject to confirmation by them and reviews by the Company.

1.21 The figures of the previous year have been regrouped, rearranged and reclassified wherever necessary to conform to current year's classification.

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Mar 31, 2014

1.1 ''Basis of accounting and preparation of financial statements

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 (as amended) issued by the Central Govt. in terms of section 211 (3C) of the CompaniesAct, 1956 (theAct) (which continue to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circullar 15/2013 dated 13 September of the Ministry of Corporate Affairs). The financial statements have been prepared on accrual basis under the historical costconvention.The accounting policies adopted in the preparation of the financial statements are consistent with thosefollowed in the previousyearand complywith the mandatory accounting standards and statements issued by Institute ofCharteredAccountantsofIndia(ICAI).

Assets and Liabilities are classified as current ifitis expected to realiseor settle within 12monthsafterBalance Sheet

1.2 ''Use of estimates

The preparation of the financial statements in conformity with Indian Generally Accepted Accounting Principles (Indian GAAP) requirestheManagement to makejudgements, estimates and assumptions that affect the application of Accounting Policies and reported amounts of Assets and Liabilities, Income and Expenses and disclosure of Contigent Liabilities at the end of Financial Statements. The Management believes that the estimates made in the preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates and the differences between the actual results and the estimates are recognised in the periodsinwhich the resultsare known / materialise

1.3 Tangible fixed assets

Fixed assets, are stated atcost lessaccumulated depreciation / amortisation and impariment loss if any.

Cost comprises the purchase price and any attributable cost of bring the assets to its working condotions for its intended use.

Intangibleassets

Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss ifany

1.4 ''Depreciationand amortisation

Depreciation on Fixed Assets has been charged as per revised rates of depreciation prescribed in Schedule XIV to the CompaniesAct, 1956.

Depreciation in respect of Assets acquired / Purchased / sold / dicarded during theyear has been provided on pro-rata basis. Intangible assets are amortised overuseful life ofthe assets

1.5 Investments

Long term investments are stated at cost less provision, for diminution which is other than temporary in nature. Current investments stated at lower of cost or market value.

1.6 ''Revenue recognition

Sales are recognized when all significant risks and rewards of ownership have been transferred to the buyer and recorded net off trade discount Sales Tax/ValueAdded Tax

Interest, as and when applicable, on refunds from statutory authorities is recognized when such interest is determinable, based on completed proceedings. Other interest income is recognized using time proportion method, based on interest rate implicit in the transactions. Profiton sale of investments is recognized on completion oftransactions.

1.7 Expenses

All materials known expenses and liabilities are provided for according to mercantile system on the basis of available information or estimates.

1.8 Foreign currency transaction

Transactions denominated in foreign currency are recorded at the exchange rates prevailing on the date oftransactions. Exchange difference arising on foreign exchange transactions settled during the year are recognized in the profit and loss accounts ofthe year.

1.9 Employee benefits

Short term employee benefits are recognized as expenses at the undiscounted amounts in the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized asan expense in the Profit and LossAccount of the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable, determined as perActuarial Valuations. Actuarial gains and losses in respect of post employment and long term employee benefitsare recognized in the Profitand LossAccount.

1.10 Taxes on income

Tax expense comprises both current tax & deferred tax. Current tax is the amount of tax payable on the assessable income for the year determined in accordance with the provisions of Income Tax Act 1961.

Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred taxassests on unabsorbed tax losses and taxdepreciation are recognised only when there is virtual certainty of their realiasation and or other items when there is reasonable certainty that sufficient future taxable income will be available against which such deferred taxassests can be realised. The tax effect is calculated and recognised atthe rate of Income Tax pervailing at the Balance Sheet date or at the substantively enacted tax rate, subject to the consideration of purdance as per the Accounting Standards-22 "Accounting for Taxes on Income".

1.11 Provisions and contingencies

A provision is recognised when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Adisclosure for contingent liability is made when there is a possible obligation or a present obligation that may but probably may not, require an outflow of resources. When there is a possible obligation or a present obligaion in respect of which likely hood of outflow of resources is remote, no provision or disclosure is made. Loss contingencies arising from claims, litigations, assessments, fines, penalties etc. are recorded when it is probable that the liability has been incurred and the amount can be resonablyestimated.

---

Mar 31, 2013

1.1 Basis of accounting and preparation of financial statements

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The Financial Statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the perparation of the financial statements are consistent with those followed in the previous year and comply with the mandotory accounting standards and statements issued by institute of Chartered Accountants of India (ICAI).

1.2 Use of estimates

The Preparation of the Financial Statements is conformity with Indian Generally Accepted Accounting Prinicipals requires the Management to make estimates and assumptions that affect the reported amounts of Assets and Liabilites and disclosure of Contigent Liabilities at the end of Financial Statements and the results of operations during the reporting period end. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/ materialise.

1.3 Tangible fixed assets

Fixed assets, are stated at cost less accumulated depreciation/amortisation and impairment loss if any, cost comprises the purchase price and any attributable cost of bring the assets to its working condotions for the intended use.

Intangible assets

Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accurmulated amortisation and accumulated impairment loss if any.

1.4 Depreciation and amortisation

Depreciation on Fixed Assets has been charged as per revised rates of depreciation prescribed in Schedule XIV to the Companies Act, 1956.

Depreciation in respect of Assets acquired/Purchased/sold/ dicarded during the year has been provided on pro-rata basis.

Intangible assets are amortised over useful life of the assets.

1.5 Investments

Long term investments are stated at cost less provision, for diminution which is other than temporary in nature Current Investments stated at lower of cost or market value.

1.6 Revenue recognition

Sales are recognition when all significant risks and rewards of ownership have been transferred to the buyer and recorded net off trade discount sales Tax/ Value Added Tax.

Interest, as and when applicable, on refunds from statutory authorities is recognized when such interest is determinable, based on completed proceedings. Other interest income is recognized using time proportion method, based on interest rate implict in the transactions. Profit on sale of investments is recognized on completion of transactions.

1.7 Expenses

All Materials known expenses and estabilites are provided for according to mercantile system on the basis of available information or estimates.

1.8 Foreign Currency transactions and translations

Transactions denorminated in foreign currency are recorded at the exchanges rates prevailing on the date of transactions. Exchange difference arising on foreign exchange transactions settled during the year are recognized in the profit and loss accounts of the year.

1.9 Employee benefits

Shrot term employee benefits are recognized as expenses at the undiscounted amounts in the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the profit and Loss Account of the year in which the employee has rendered services. The expense in recognized at the prsent value of the amount payable, determined as per Actuarial Valuations. Actuarial gains and losses in respect of post employment and long term employee benefits are recognized in the Profit and Loss Account.

1.10 Taxes on income

Tax expense comprises both current tax & deferred tax. Current tax is the amount of tax payable on the assesable income for the year determined in accordance with the provision of income Tax Act 1961. Deferred tax is recognised on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognised only when there is virtual certainty of their realisation and or other items when there is reasonable certaintly that sufficient future taxable income will be availabe against which such deferred tax assets can be realised. The tax effect is calculated and recognised at the rate of Income Tax Pervailing at the Balance Sheet date or at the substantively enacted tax rate, subject to the consideration of purdance as per the Accounting Standards-22 " Accounting for Taxes on Income".

1.11 Provisions and Contingencies

A Provision is recognised when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estmated can be made of the amount of the obligation. A disclosure for contingent liability is made when there is a posible obligation or a present obligation that may, but probably may not, require an outflow of resources. When there is a possible obligation or a present obligation is respect of which likely hood of outflow of resources is remote, no provision or disclosure is made. Loss contingencies arising from claims. Ligations, assessments, fines, penaties etc, are recorded when it is probable that the liability has been incurred and the amount can be resonably estimated.

---

Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements

The financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention.The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year and comply with the mandatory accounting standards and statements issued by Institute of Chartered Accountants of India (ICAI).

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian Generally Accepted Accounting Principals requires the Management to make estimates and assumptions that affect the reported amounts of Assets and Liabilities and disclosure of Contigent Liabilities at the end of Financial Statements and the results of operations during the reporting period end. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Tangible fixed assets

Fixed assets, are stated at cost less accumulated depreciation / amortisation and impariment loss if any.

cost comprises the purchase price and any attributeable cost of bring the assets to its working condotions (or its intended use.

Intangible assets

Intangible assets are recognised in the year it is put to use at cost. Intangible assets are carried at cost less accumulated amortisation and accumulated impairment loss if any.

1.4 Depreciation and amortisation

Depreciation on Fixed Assets has been charged as per revised rates of depreciation prescribed in Schedule XIV to the Companies Act, 1956.

Depreciation in respect of Assets acquired / Purchased / sold / dicarded during the year has been provided on pro-rata basis.

Intangible assets are amortised over useful life of the assets.

1.5 Investments

Long term investments are sk'ed at cost less provision, for diminution which is other than temporary in nature. Current investments stated at lower of cost or market value.

1.6 Revenue recognition

Sales are recognized when all significant risks and rewards of ownership have been transferred to the buyer and recorded net of trade discount, Sales tax / Value Added Tax.

Interest, as and when applicable, on refunds from statutory authorities is recognized when such interest is determinable, based on completed proceedings. Other interest income is recognized using time proportion method, based on interest rate implicit in the transactions. Profit on sale of investments is recognized on completion of transactions.

1.7 Expenses

All materials known expenses and liabilities are provided for according to mercantile system on the basis of available information or estimates.

1.8 Foreign currency transactions and translations

Transactions denominated in foreign currency are recorded at the exchange rates prevailing on the date of transactions. Exchange difference arising on foreign exchange transactions settled during the year are recognized in the profit and loss accounts of the year.

1.9 Employee benefits

Short term employee benefits are recognized as expenses at the undiscounted amounts in the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss Account of the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable, determined as per Actuarial Valuations. Actuarial gains and losses in respect of post employment and long term employee benefits are recognized in the Profit and Loss Account.

1.10 Taxes on income

Income Tax expense comprises of current tax & deferred tax charges or credit. Deferred tax resulting from timing differences between book & tax profit is accounted at the current rate of tax, to the extent the timing difference are expected to crystallize, as deferred tax charge / benefit in the Profit & Loss account and as deferred tax assets / liabilities in the balance sheet. Where there is carry forward loss, deferred tax assets are recognised only if there is virtual certainty of realization in future.

1.11 Provisions and contingencies

A provision is recognised when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably may not, require an outflow of resources. When there is a possible obligation or a present obligaion in respect of which likely hood of outflow of resources is remote, no provision or disclosure is made. Loss contingencies arising from claims, litigations, assessments, fines, penalties etc. are recorded when it is probable that the liability has been incurred and the amount can be resonably estimated.

1.12 Retirement Benefits

Long Term Employee Benefits are not provided because no employee has completed full year of service.

1.13 Provision for Taxes

No provision has been made for current tax in view of loss incurred uuring the year.