Notes to Accounts of Aerpace Industries Ltd.

Mar 31, 2025

2.13. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has present obligation (legal or constructive) as a result of
pastevents, for which it is probable that an outflow of resources embodying economic benefits will be
required to settlethe obligation and a reliable estimate can be made for the amount of the obligation.
Contingent Liabilities are disclosed by way of notes to standalone financial statements. Contingent assets are
notrecognised in the standalone financial statements but are disclosed in the notes to the standalone
financialstatements where an inflow of economic benefits is probable. Provisions and contingent liabilities
are reviewed ateach Balance Sheet date. If the effect of the time value of money is material, provisions are
discounted using a current pre-tax rate thatreflects, when appropriate, the risks specific to the liability.

2.14. Earnings Per Share (EPS) ⁹⁵

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.

2.15. 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.

1. During the quarter ended 30th September 2024, the company has issued 12827648 Equity Shares of Re. 1/- each on
preferential basis to certain investors other than the promoter group at the issue priceof Rs. 19.71/ - per share including
premium of Rs. 18.71/ - per share.

2. During the quarter ended 31st March 2025, the Company has raised a total of ?1932.77 Lakhs through the issuance of
43,57,001 Equity shares of Re. 1/- per share a preferential basis at an issue price of?44.36 per share including premium of
Rs. 43.36 /- per share.

The company incurred professional fees amounting to ?206.80 Lakhs in relation to the right issue, which include legal,
advisory, and other professional services.In accordance with the provisions of the Companies Act, 2013, the professional
fees were paid from the Share Premium Account, as it is permissible to use share premium for issue-related expenses.

In current year, the Company has recognised Interest on Lease Liability and Amortization of Right of use Asset as per
IndAS 116 ''Lease'' in the statement of Profit and Loss as under :

- ''Finance Cost'' in Note no. 31. Interest on Lease Liability of Rs.41.04 lakhs (PY Rs. 9.94 lakhs)

- ''Depreciation and Amortization expense'' in Note no. 32. Amortization of Lease Liability of Rs. lakhs 107.14(PY Rs.30.04
lakhs)

- The total outstanding cash outflow for lease as per the agreement is Rs. 1822.41 lakhs (PY Nil).

- There has been addition to right of use asset in the current year Rs. 1543.64 lakhs (PY Rs. 149.90 lakhs).

- There has been no deletion to right of use asset in the current year.

The Company has taken premises under leave and license agreement, the rent and escalation depends upon the lease
agreement entered by the Company. The Company has entered into an lease agreement for the period of 5 years, with
escalation clause.

The disclosure requirement and maturity analysis of lease liability and asset as per IndAS 107 ''Financial Instrument :
Disclosures'' are as follows:

The management assessed that the fair value of cash and cash equivalent, and other current financial assets and
liabilities approximate their carrying amounts largelydue to the short term maturities of these instruments.

Level 1: The fair value of financial instruments traded in active markets (such as equity securities), if any, is based on
quoted market prices at the end of the reportingperiod. The quoted market price used for financial assets held by the
company 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 observablemarket 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 isincluded 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 equitysecurities and investment in private equity funds, real estate funds.

ii. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of unquoted equity instruments has been measured on the basis of their networth and valuation of their
shares.

- the fair value of equity shares of group companies are measured at cost.

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

iii. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities
required for financial reporting purposes, including level 3 fair values.

Note 38 :-Capital Management

For the purpose of the Company''s capital management, capital includes issued equity share capital, securities premium
and all other reserves attributable to the equityholders of the Company. The primary objective of the Company''s capital
management is to maximise the value of the share and to reduce the cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. Tomaintain or adjust the capital structure, the Company can adjust the dividend
payment to shareholders, issue new shares, etc. The Company monitors capital using agearing ratio, which is net debt
divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash
equivalents.

The Company has exposure to the following risks arising from financial instruments:

-Market Risk;

-Credit Risk; and
-Liquidity Risk

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
change in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and
other price risk such as equity price risk and commodity price risk.

fi) Foreign currency risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes inmarket interest rates. The interest rate risk can also impact the provision for retirement
benefits. The Company generally utilisesfixed rate borrowings and therefore not subject to interest rate risk,
since neither the carrying amount nor the future cash flows willfluctuate because of change in the market
interest rates.

The Company is not exposed to significant interest rate risk as at the respective reporting dates as the
Company doesnât have anymajor interest bearing borrowings.

fB) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities
(primarily trade receivables) and from its financing activities, including deposits with banks and financial
institutions and other financial instruments.

Trade Receivable

Customer credit risk is managed by the Companyâs established policy, procedures and control relating to
customer credit risk management. Credit quality of a customer is assessed by the management on regular
basis with market information and individual credit limits are defined accordingly. Outstanding customer
receivables are regularly monitored and any further services to major customers are approved by the senior
management.

An impairment analysis is performed at each re-equipmenting date on an individual basis for major
customers. In addition, a large number of minor receivables are grouped into homogenous groups and
assessed for impairment collectively.

On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the
impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss
allowance for trade receivables. The provision matrix takes into account available external and internal credit
risk factors and the Companyâs historical experience for customers. The movement of allowance for
impairments of trade receivables are as follows :

Financial Instrument and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Companyâs finance
department in accordance with the Companyâs policy. The investment limits are set to minimise the
concentration of risks and therefore mitigate financial loss to make payments for vendors.

The Companyâs maximum exposure to credit risk for the components of the balance sheet at March 31, 2025
and March 31, 2024 is the carrying amounts as stated in balance sheet.

fC) Liquidity risk

The Company is not exposed to significant interest rate risk as at the respective reporting dates as the
Company doesnât have anymajor interest bearing borrowings.

fB) Credit risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or
at reasonable price.Prudent liquidity risk management implies maintaining sufficient cash and marketable
securities and the availability of fundingthrough an adequate amount of credit facilities to meet obligations
when due. The Companyâs finance team is responsible forliquidity, funding as well as settlement
management. In addition, processes and policies related to such risks are overseen by seniormanagement.
Management monitors the Companyâs liquidity position through rolling forecasts on the basis of expected
cash flows.

The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the Company can be required to pay. In the table below, borrowings include both
interest and principal cash flows

Note 43 : The Company has only one reportable segment and accordingly, no separate segment disclosures have
been made, as per Ind AS 108

Note 44 : Contingent Liability as on March 31, 2025 - Rs. Nil (P.Y. Rs. Nil)

Note 45 : Other Statutory Information

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

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

iii. The Company has not been declared as wilful defaulter by any bank or financial institutions or other
lenders

iv. During the year, the Company has not revalued its Property, Plant and Equipment.

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

vi. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary

shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries); or

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

vii. The Company have not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that

the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) o

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

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

ix. Based on the information available with the Company, the Company do not have any transactions with
companies struck off under section 248 of the Companies Act, 2013 or section 560 ofCompanies Act, 1956.

Note 47 : In the opinion of the Board the Current Assets, Loans & Advances are realisable in the ordinary
course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision
for all known liabilities is adequate and not in excess of amount reasonably necessary

Note 48 : The Company does not fall within the criteria mentioned in Section 135 of the Companies Act, 2013
and hence the provisions of Corporate Social Responsibility are not applicabl

Note 49: The Code on Social Security, 2020 (âCodeâ) relating to employee benefits during employment and
post-employment benefits received Presidential assent in September 2020. The

Code has been published in the Gazette of India. However, the date on which the Code will come into effect
has not been notified and the final rules/interpretation have not yet been issued.

The Company will assess the impact of the Code when it comes into effect and will record any related impact
in the period the Code becomes effective

Note 50: The Company had changed its name from Supremex Shine Steels Limited to Aerpace Industries
Limited in the financial year 2022-23 and fresh certificate of incorporation dated August 30, 2022 had been
received by the Company from Registrar of Companies, Mumbai

Note 51 : Previous year figures have been regrouped, rearranged wherever considered necessary to confirm
with current years presentation

In terms of our report of even date For and on behalf of the Board of Directors of

For Ramanand & Associates Aerpace Industries Limited

Chartered Accountants
Firm Registration No 117776W

Mr Prem Singh Rawat Mr. Milan Shah

Ramanand Gupta Director Managing Director

_Partner DIN:01423453 DIN:08163535

Membership No. 103975

^{Date: 14th May}2025 Anand Shah Neha Mankame

Place: Mumbai

^{UDIN: 25103975BM|F}ZU²⁸⁵⁸ Chief Financial Officer Company Secretary

Place: Mumbai Place: Mumbai

Date: 14th May, 2025 Date: 14th May, 2025

Mar 31, 2024

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 standalone financial statements. Contingent assets are not recognised in the standalone financial statements but are disclosed in the notes to the standalone 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.

2.16 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.

2.17 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.

Note 30 :- Leases

In current year, the Company has recognised Interest on Lease Liability and Amortization of Right of use Asset as per IndAS 116 ''Lease'' in the statement of Profit and Loss as under

- ''Finance Cost'' in Note no. 27. Interest on Lease Liability of Rs. 9.94 lakhs (PY Rs. 10.73 lakhs).

- ''Depreciation and Amortization expense'' in Note no. 28. Amortization of Lease Liability of Rs. 30.04 lakhs (PY Rs. 25.37 lakhs).

- The total outstanding cash outflow for lease as per the agreement is Rs. 127.40 lakhs (PY Nil).

-There has been addition to right of use asset in the current year of Rs. 149.90 lakhs (PY Nil).

-There has been deletion to right of use asset in the current year of Rs. 25.37 Lakhs (PY Nil).

The Company has taken premises under leave and license agreement, the rent and escalation depends upon the lease by theCompa-ny. The Company has entered into an lease agreement for the period of 5 years, with escalation clause.

The disclosure requirement and maturity analysis of lease liability and asset as per IndAS 107 ''Financial Instrument :

Disclosures'' are as follows:

For the purpose of the Companyâs capital management, capital includes issued equity share capital, securities premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Companyâs capital management is to maximise the value of the share and to reduce the cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company can adjust the dividend payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

The Company has exposure to the following risks arising from financial instruments:

-Market Risk;

-Credit Risk; and -Liquidity Risk

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk.

(i) Foreign currency risk

During the year, the company has not carried out any transaction in foreign currency, hence there is no foreign currency risk for the year.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The interest rate risk can also impact the provision for retiral benefits. The Company generally utilises fixed rate borrowings and therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of change in the market interest rates.

The Company is not exposed to significant interest rate risk as at the respective reporting dates as the Company doesn''t have any major interest bearing borrowings.

(B) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

Trade Receivable

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed by the management on regular basis with market information and individual credit limits are defined accordingly. Outstanding customer receivables are regularly monitored and any further services to major customers are approved by the senior management.

An impairment analysis is performed at each re-equipmenting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.

On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Companyâs historical experience for customers. The movement of allowance for impairments of trade receivables are as follows :

Financial Instrument and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Companyâs finance department in accordance with the Companyâs policy. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.

The Companyâs maximum exposure to credit risk for the components of the balance sheet at March 31, 2024 and March 31,2023 is the carrying amounts as stated in balance sheet.

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Companyâs finance team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Companyâs liquidity position through rolling forecasts on the basis of expected cash flows.

The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. In the table below, borrowings include both interest and principal cash flows.

Note 38 : Contingent Liability as on 31st March, 2024 - Rs. Nil (P.Y. Rs. Nil)

Note 39 :-Other Statutory Information

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

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

iii. The Company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.

iv. During the year, the Company has not revalued its Property, Plant and Equipments.

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

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries); or

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

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

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

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

ix. Based on the information available with the Company, the Company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

In the opinion of the Board the Current Assets, Loans & Advances are realisable in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

Note 43

The Code on Social Security, 2020 (âCode'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

Note 44

The Company had changed its name from Supremex Shine Steels Limited to Aerpace Industries Limited in the financial year 2022-23 and fresh certificate of incorporation dated August 30, 2022 had been received by the Company from Registrar of Companies, Mumbai.

Previous year figures have been regrouped, rearranged wherever considered necessary to confirm with current years presentation.

For Singrodia & Co LLP For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No W100280

Mr Prem Singh Rawat Mr. Milan Shah

Shyamratan Singrodia Director Managing Director

Partner DIN:01423453 DIN:08163535

Membership No. 049006

Date: 14th May, 2024

Place: Mumbai ^{Anand Shah Neha Mankame}

Chief Financial Officer Company Secretary

Mar 31, 2023

Note : *Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 The Management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of amounts payable to such enterprises as at March 31,2023 has been made based on the information available with the Company. Further, in the view of the Management, the impact of interest, if any, that may be payable in accordance with the Act is not expected to be material. The Company has not received any claim for interest from any supplier under this Act. The information has been determined to the extent such parties have been identified on the basis of information available with the Company. Auditors have placed reliance on such information provided by the Management.

b. Terms & Conditions Terms / rights attached to equity shares -

The company has only one class of equity shares having par value of Rs.1 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

14.1 - Nature and Purpose of Other Reserves

a) Capital Reserve

The capital reserve is created through forfeiture of shares warrants, shares, revaluation of existing assets, the redemption of preference shares and accumulated capital surplus not available for distribution of dividend.

b) Retained Earnings

The amount of retained earning includes the component of other comprehensive income, which cannot be distributed by the Company as dividends to its equity shareholders. Balance amount is available for distribution to equity share holders.

Note 30 :- Leases

In current year, the Company has recognised Interest on Lease Liability and Amortization of Right of use Asset as per IndAS 116 '' Lease'' in the statement of Profit and Loss as under

-Finance Cost'' in Note no. 26. Interest on Lease Liability of Rs. 10.73 lakhs (PY Nil).

-Depreciation and Amortization expense'' in Note no. 27. Amortization of Lease Liability of Rs. 25.37 lakhs (PY Nil).

-The total outstanding cash outflow for lease as per the agreement is Rs. 127.40 lakhs (PY Nil).

-There has been addition to right of use asset in the current year of Rs. 149.90 lakhs (PY Nil).

-There has been deletion to right of use asset in the current year of Rs. 25.37 Lakhs (PY Nil).

The disclosure requirement and maturity analysis of lease liability and asset as per IndAS 107 ''Financial Instrument :

Disclosures'' are as follows:

Note 32 Fair Value Management

i. Accounting classification and fair values

The following table shows the carrying amount and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy:

The management assessed that the fair value of cash and cash equivalent, and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

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 company is the current bid price. These instruments are included in level 1. Particulars 31st March, 2023 31st March, 2022 Aerpace Industries Limited CIN - L74110MH2011PLC214373

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.

ii. Valuation technique used to determine fair value ⁹⁹

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of unquoted equity instruments has been measured on the basis of their networth and valuation of their shares

- the fair value of equity shares of group companies are measured at cost.

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

iii. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values

Note 33 :-Capital Management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company can adjust the dividend payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

The Company has exposure to the following risks arising from financial instruments:

-Market Risk;

-Credit Risk; and -Liquidity Risk

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk.

(i) Foreign currency risk

During the year, the company has not carried out any transaction in foreign currency, hence there is no foreign currency risk for the year.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The interest rate risk can also impact the provision for retiral benefits. The Company generally utilises fixed rate borrowings and therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of change in the market interest rates.

The Company is not exposed to significant interest rate risk as at the respective reporting dates as the Company doesn''t have any major interest bearing borrowings.

(B) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

Trade Receivable

An impairment analysis is performed at each re-equipmenting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.

On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Companyâs historical experience for customers. The movement of allowance for impairments of trade receivables are as follows :

Credit risk from balances with banks and financial institutions is managed by the Companyâs finance department in accordance with the Companyâs policy. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.

The Companyâs maximum exposure to credit risk for the components of the balance sheet at March 31,2023 and March 31,2022 is the carrying amounts as stated in balance sheet.

(C) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Companyâs finance team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Companyâs liquidity position through rolling forecasts on the basis of expected cash flows.

The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. In the table below, borrowings include both interest and principal cash flows.

Note 35 : Disclosure Pursuant to Indian Accounting Standard 19-Employee Benefits

Since all the employees have been appointed during the year, the company has accounted for gratuity and has provided the same on the basis of acturial valuation in order to comply with the Indian Accounting Standard (IND AS) 19 "Employee Benefits". Previous years disclosures are not available and hence not disclosed.

The following Ratios are not disclosed since the corresponding previous year''s ratios are not available for comparison as there was no turnover is the previous year

Inventory Turnover Ratio | Trade Receivable Turnover Ratio | Trade Payable Turnover Ratio | Net Capital Turnover Ratio

Note 38 : Contingent Liability as on 31st March, 2023 - Rs. Nil (P.Y. Rs. Nil)