Notes to Accounts of Aether Industries Ltd.

Mar 31, 2025

2.9 Provisions, contingent liabilities and contingent
assets

Provisions are recognised when there is a present legal
or constructive obligation as a result of a past event
and it is probable (i.e. more likely than not) that an
outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Such provisions are determined based on
management estimate of the amount required to
settle the obligation at the balance sheet date. When
the Company expects some or all of a provision to be
reimbursed, the reimbursement is recognised as a
standalone asset only when the reimbursement is
virtually certain.

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

Present obligations arising under onerous contracts
are recognised and measured as provisions. An
onerous contract is considered to exist when a
contract under which the unavoidable costs of
meeting the obligations exceed the economic benefits
expected to be received from it.

Contingent liabilities are disclosed on the basis of
judgment of management/independent experts. These
are reviewed at each balance sheet date and are
adjusted to reflect the current management estimate.

Contingent Assets are not recognized, however,
disclosed in financial statement when inflow of
economic benefits is probable.

Claim receivable from insurance company, on account
of Fire Accident on November 29, 2023 for fixed assets
and loss of profit, is still under assessment and hence,
the same is not recognised nor contingent asset is
created in FY 2023-24.

2.10 Revenue recognition and other income

Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Company
and the revenue can be reliably measured, regardless
of when the payment is being made. Revenue is
measured at the fair value of the consideration
received or receivable, taking into account
contractually defined terms of payment and excluding
taxes or duties collected on behalf of the government.

Revenue from sale of goods is recognized, when the
control is transferred to the buyer, as per the terms of
the contracts and no significant uncertainty exists
regarding the amount of the consideration that will be
derived from the sale of goods.

Interest income or expense is recognised using the
effective interest rate method. The ''effective interest
rate" is the rate that exactly discounts estimated future
cash receipts or payments through the expected life of
the financial instrument to:

- the gross carrying amount of the financial asset; or

- the amortised cost of the financial liability

2.11 Leases

At inception of a contract, the Company assesses
whether a contract is, or contains, a lease. 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:

- the contract involves the use of an identified asset -
this may be specified explicitly or implicitly and should
be physically distinct or represent substantially all of
the capacity of a physically distinct asset. If the
supplier has a substantive substitution right, then the
asset is not identified

- the Company has the right to obtain substantially all
of the economic benefits from use of the asset
throughout the period of

use; and

- the Company has the right to direct the use of asset.
The Company has this right when it has the decision¬
making rights that are most relevant to changing how
and for what purpose the asset is used. In rare cases
where the decision about how and for what purpose
the asset is used is predetermined, the Company has
the right to direct the use of the asset if either:

# the Company has the right to operate the asset;
or

# the Company designed the asset in a way that
predetermines how and for what purpose it will be
used.

At inception or on reassessment of a contract that
contains a lease component, the Company allocates
the consideration in the contract to each lease
component on the basis of their relative stand-alone
prices.

Company as a lessee

The Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability

adjusted for any lease payments made at or
before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives received.

The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of the
lease term. The estimated useful lives of right-of-use
assets redetermined on the same basis as those of
property and equipment. In addition, the right-of-use
asset is periodically reduced by impairment losses, if
any, and adjusted for certain remeasurements of the
lease liability.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be
readily determined, the Company''s incremental
borrowing rate. Generally, the Company uses its
incremental borrowing rates as the discount rate.

Lease payments included in the measurement of the
lease liability comprise the following:

- fixed payments, including in-substance fixed
payments.

- variable lease payments that depend on an index or
a rate, initially measured using the index or rate as at
the commencement

date.

- amounts expected to e payable under a residual
value guarantee; and

- the exercise price under a purchase option that the
Company is reasonably certain to exercise, lease
payments in an optional renewal period if the

Company is reasonably certain to exercise an
extension option, and penalties for early termination of
a lease unless the Company is reasonably certain not
to terminate early.

The lease liability is measured at amortised cost using
the effective interest method. It is remeasured when
there is change in future lease payments arising from
a change n an index or rate, if there is change in the
Company''s estimate of the amount expected to be
payable under a residual value guarantee, or if the
Company changes its assessment of whether it will
exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in
statement of profit and loss if the carrying amount of
the right-of-use asset has been reduced to zero.

Leasehold land is amortised over the period of lease
remaining as on the date of purchase.

Short-term leases and leases of low-value assets:

The Company has elected not to recognise right-of-
use assets and lease liability for the short-term leases
that have lease term of 12 months of less and leases of
low-value assets. The Company recognises the lease
payments associated with such leases as an expense
on a straight-line basis over the lease term.

2.12 Income taxes

Income tax expense represents the sum of tax
currently payable and deferred tax. Tax is recognized in
the Statement of Profit and Loss, except to the extent
that it relates to items recognized directly in equity or
in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in
respect of previous years. The amount of current tax
reflects the best estimate of the tax amount expected
to be paid or received after considering the
uncertainty, if any, related to income taxes. Current tax
assets and liabilities are measured at the amount
expected to be recovered from or paid to the taxation
authorities. The tax rates and the a tax laws used to
compute the amount are those that are enacted or
substantively enacted, at the reporting date in the
country where the Company operates and generates
taxable income. Current tax assets and liabilities are
offset only if there is a legally enforceable right to set it
off the recognised amounts and it is intended to realise
the asset and settle the liability on a net basis or
simultaneously.

Deferred tax

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

Deferred tax liabilities are recognised for all taxable
temporary differences, except:

- When the deferred tax liability arises from the initial
recognition of goodwill or an asset or liability in a
transaction that is not a business combination and, at
the time of the transaction, affects neither the
accounting profit nor taxable profit or loss,

- Taxable temporary differences arising on the initial
recognition of goodwill.

- Temporary differences related to investments in
subsidiaries, associates, and joint arrangements to the
extent that the Company is able to control the timing
of the reversal of the temporary differences and it is

probable that they will not reverse in the foreseeable
future.

Deferred tax assets 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, and the carry
forward of unused tax credits and unused tax losses
(including unabsorbed depreciation) can be utilised,
except:

- When the deferred tax asset relating to the
deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that
is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor
taxable profit or loss.

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 utilised. 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.

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.

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 and the
deferred taxes relate to the same taxable entity and
the same taxation authority.

Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss. Deferred tax
items are recognised in correlation to the underlying
transaction either in OCl or directly in equity.

2.13 Current versus non-current classification

The Company presents assets and liabilities in the
Balance Sheet based on current/non-current
classification.

a) An asset is current when it is:

- Expected to be realized or intended to be sold or
consumed in the normal operating cycle,

- Held primarily for the purpose of trading,

- Expected to be realised within twelve months after
the reporting period, or

- Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

b) A liability is current when:

- It is expected to be settled in the normal operating
cycle,

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the
reporting period, or

- There is no unconditional right to defer the settlement
of the liability for at least twelve months after the
reporting period.

All other liabilities are classified as non-current.

c) Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

d) The operating cycle is the time between the
acquisition of assets for processing and their
realization in cash and cash equivalents.

2.14 Employee benefits

(i) Short term employee benefits

Al employee benefits payable wholly within twelve
months of rendering the service are classified as short¬
term employee benefits. Un-discounted value of
benefits such as salaries, incentives, allowances and
bonus are recognized in the period in which the
employee renders the related service.

(ii) Long term employee benefits
Defined contribution plans

The Company contributes to the employee''s approved
provident fund scheme. The Company''s contribution
paid/payable under the scheme is recognized as an
expense in the statement of profit and loss during the
period in which the employee renders the related
services.

Defined benefit plans

Gratuity Liability is a defined benefit obligation and is
provided on the basis of an actuarial valuation model
made at the end of each quarter. The Gratuity Liability
is funded by the Company by maintaining the funds
with a separate Asset Management Company, i. e., LIC
of India. Contributions to such fund is charged to Profit
& Loss Account. Actuarial Valuation of the Gratuity is
done at the end of the Financial Year and accounted
for accordingly.

2.15 Trade receivables

Trade Receivables are stated after writing off debts
considered as bad. Adequate provision is made for
debts considered as doubtful.

2.16 Inventories

(i) Raw Materials, Work in Progress, Finished Goods,
Packing Materials, Stores, Spares and Consumables
are carried at the lower of cost and net realisable
value.

(ii) In determining the cost of Raw Materials, Packing
Materials, Stores, Spares and Consumables, FIFO
Method is used. Cost of Inventory comprises of all costs
of purchase, duties, taxes (other than those
subsequently recoverable from tax authorities) and all
other costs incurred in bringing the inventory to their
present location and condition.

iii) Cost of Finished Goods includes the cost of Raw
Materials, Packing Materials, an appropriate share of
fixed and variable production overheads, indirect taxes
as applicable and other costs incurred in bringing the
inventories to their present location and condition.

iv) Cost of Stock in Trade procured for specific projects
is assigned by specific identification of individual costs
of each item.

2.17 Borrowing costs

Borrowing costs directly attributable to the acquisition,
construction or production of an asset, that necessarily
takes substantial period of time to get ready for its
intended use or sale, are capitalized as part of the cost
of the respective asset. All other borrowing costs are
expensed in the period in which they are incurred.
Borrowing costs consist of interest, exchange
differences arising from foreign currency borrowings to
the extent they are regarded as an adjustment to the
interest cost an other costs that an entity incurs in
connection with the borrowings of the funds.

2.18 Earnings per share

Basic EPS is calculated by dividing the profit for the
year attributable to equity holders of the Company by
the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements and stock split in equity shares issued

during the year and excluding treasury shares. The
weighted average number of equity shares
outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares
and stock split, other than the conversion of potential
equity shares that have changed the number of equity
shares outstanding, without a corresponding change
in resources.

Diluted EPS adjust the figures used in the determination
of basic EPS to consider.

- 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 dilutive potential equity shares.

2.19 Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.

The Board of Directors of the Company have been
identified as being the Chief Operating Decision Maker
by the management of the Company.

2.20 Foreign currency transactions

Transactions in foreign currencies are translated into
the respective functional currency of the Company at
the exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign
currencies are translated into the functional currency
at the exchange rate at the reporting date. Non¬
monitory assets and liabilities that are measured at
fair value in a foreign currency are translated into the

functional currency at the exchange rate when the fair
value was determined. Non-monitory items that are
measured based on historical cost in a foreign
currency are translated at the exchange rate at the
date of the transaction. Foreign currency differences
are generally recognised in the Statement of Profit and
Loss.

2.21 Government grants and subsidies

Grants / subsidies that compensate the Company for
expenses incurred are recognised in the Statement of
Profit and Loss as other operating income on a
systematic basis in the periods in which such expenses
are recognised.

Export incentives

Export incentives under various schemes notified by
the government are recognised when no significant
uncertainties as to the amount of consideration that
would be derived and that the Company will comply
with the conditions associated with the grant and
ultimate collection exist.

2.22 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA" notifies new
standards or amendments to the existing standards
under the Companies (Indian Accounting Standards)
Rules as amended from time to time. There are no
such recently issued standards or amendments to the
existing standards for which the impact on the
Financial Statements is required to be disclosed.

42. Financial risk management

The Company''s board of directors has overall
responsibility for the establishment and oversight of
the Company''s risk management framework. The
board of directors is responsible for developing and
monitoring the Company''s risk management policies.
The board regularly meets to decide its risk
management activities.

The Company''s risk management policies are
established to identify and analyse the risks faced by
the Company, to set appropriate risk limits and
controls to monitor risks and adherence to limits. Risk
management policies and systems are reviewed
regularly to reflect changes in market conditions and

the Company''s activities. The Company, through its
training and management standards and procedures,
aims to maintain a disciplined and constructive control
environment in which all employees understand their
roles and obligations.

The Company''s management monitors compliance
with the Company''s risk management policies and
procedures, and reviews the adequacy of the risk
management framework in relation to the risks faced
by the Company. The Board is also assisted by internal
audit. Internal audit undertakes both regular and
adhoc reviews of risk management controls and
procedures, the results of which are reported to the
Board of directors.

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

(a) Credit risk

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

The Company''s exposure to credit risk is influenced
mainly by the individual characteristics of each
customer. However, management also considers the
factors that may influence the credit risk of its
customer base, including the default risk associated
with the industry and country in which customers
operate.

Credit risk is managed through credit approvals,
establishing credit limits and continuously monitoring
the creditworthiness of customers to which the
Company grants credit terms in the normal course of
business. On account of adoption of Ind AS 109, the
Company uses expected credit loss model to assess
impairment loss or gain. The Company uses a 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 Company''s historical experience for

(i) The company has not made any provision on
expected credit loss on trade receivables and other
financials assets, based on the management
estimates.

(ii) Credit risk on cash and cash equivalents is limited
as the Company generally invests in deposits with
banks and financial institutions with high credit ratings
assigned by domestic credit rating agencies.

(b) Liquidity risk

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

The Company''s treasury department within the
Finance Department is responsible for liquidity and
funding. In addition policies and procedures relating to
such risks are overseen by the management.

The company''s principal sources of liquidity are cash
and cash equivalents and the cash flow that is
generated from the operations.

(c) Market risk

Market risk is the risk that changes with market prices -
such as foreign exchange rates and interest rates, will
affect the Company''s income or the value of its
holdings of financial instruments. The objective of
market risk management is to manage and control
market risk exposures within acceptable parameters,
while optimising the return.

(l) Foreign currency risk

Foreign currency risk is the risk that fair value or future
cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rate.
Company transacts business in its functional currency
(INR) and in other foreign currencies. The Company''s
exposure to the risk of changes in foreign exchange
rates relates primarily to the Company''s operating
activities, where revenue or expense is denominated in
a foreign currency.

The Company''s capital comprises equity share capital,
surplus in the statement of profit and loss and other
equity attributable to equity holders.

The Company''s objectives when managing capital are
to :

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

- maintain an optimal capital structure to reduce the
cost of capital.

(2) 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
Company''s exposure to the risk of changes in market
interest rates relates primarily to the Company''s debt
obligations with floating interest rates.

The Company manages its interest rates by selection
appropriate type of borrowings and by negotiation
with the bankers.

The exposure of the borrowings (long term and short
term ) to interest rate changes at the end of the
reporting period are as follows

(b) Fair value hierarchy

As per Ind AS 107 "Financial Instrument: Disclosure", fair value disclosures are not required when the carrying
amounts reasonably approximate the fair value. As illustrated above, all financial instruments of the company
which are carried at amortized cost approximates the fair value (except for which the fair values are mentioned).
Investments in Mutual Funds which are designated at FVTPL & investment in shares which are classified as
FVTOCI are at fair value.

As per AIL ESOS 2021, the Nomination and
Remuneration Committee shall determine the eligibility
criteria for employees to whom the options would be
granted and shall approve the grant of options. The
options granted on any date shall vest not earlier than
1 (one) year and not later than a maximum of 7
(seven) years from the date of grant of options.

Vesting of options would be subject to continued
employment with the Company. The exercise period
shall be 7 (seven) years from the date of vesting of
options. The vested options can be exercised by the
employee any time within the exercise period, or such
other shorter period as may be prescribed by the
Nomination and Remuneration Committee from time
to time and as set out in the Grant Letter.

The scheme was modified on 27 September 2022 and
the revised terms are prospectively applicable to all
grants under the scheme. The modified terms are
defined as follows:

The vesting period is minimum 1 (one) year but not
later than 15 (fifteen) years from the date of grant of
options. Vesting of options would be subject to
continued employment with the Company. The
exercise period shall be 15 (fifteen) years from the date
of vesting of options, subject to exceptional
circumstances. The vested options can be exercised by
the employee any time within the exercise period, or
such other shorter period as may be prescribed by the
Nomination and Remuneration Committee from time
to time and as set out in the Grant Letter.

46. Stock options scheme

Aether Industries Limited - Employee Stock Option
Scheme - 2021 (AIL ESOS 2021)

The Company has instituted equity-settled Employee
Stock Option Scheme - 2021 duly approved by the
shareholders in the extra-ordinary general meeting of
the Company held on 18 November 2021. The
Company introduced the AIL ESOS 2021 primarily with a
view to attract, retain and incentivise the existing and
new employees of the Company and motivate them to
contribute to the growth and profitability of the
Company. The shareholders by way of special
resolution have authorised the Nomination and
Remuneration Committee to grant options not
exceeding 11,00,000 to the eligible employees under the
AIL ESOS 2021, in one or more tranches, with each such
option conferring a right upon the Eligible employee to
apply for one share of the Company.

50. Corporate social responsibility

As per the provisions of section 135 of Companies Act 2013, the Company was required to spend Rs. 29.00 million
(March 31, 2024: Rs. 27.65 million), being 2% of average net profits made during the three immediately preceding
financial years, in pursuance of its Corporate Social Responsibility Policy on the activities specified in Schedule VII
of the Act. However, the Company has spent Rs. 28.63 million (March 31, 2024: Rs. 27.96 million) towards Corporate
Social Responsibility activities. Below are the details of the amount spent during the year

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Mar 31, 2024

2.9. Provisions, Contingent Liabilities and
Contingent Assets

Provisions are recognised when there is a present legal
or constructive obligation as a result of a past event
and it is probable (i.e. more likely than not) that an
outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Such provisions are determined based on management
estimate of the amount required to settle the
obligation at the balance sheet date. When the
Company expects some or all of a provision to be
reimbursed, the reimbursement is recognised as a
standalone asset only when the reimbursement is
virtually certain.

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

Present obligations arising under onerous contracts

are recognised and measured as provisions. An
onerous contract is considered to exist when a
contract under which the unavoidable costs of
meeting the obligations exceed the economic benefits
expected to be received from it.

Contingent liabilities are disclosed on the basis of
judgment of management/independent experts. These
are reviewed at each balance sheet date and are
adjusted to reflect the current management estimate.

Contingent Assets are not recognized, however,
disclosed in financial statement when inflow of
economic benefits is probable.

Claim receivable from insurance company, on account
of Fire Accident on November 29, 2023 for fixed
assets and loss of profit, is still under assessment and
hence, the same is not recognised nor contingent
asset is created in FY 2023-24.

2.10. Revenue Recognition and Other Income

Revenue is recognized to the extent that it is probable
that the economic benefits will flow to the Company
and the revenue can be reliably measured, regardless
of when the payment is being made. Revenue is
measured at the fair value of the consideration
received or receivable, taking into account
contractually defined terms of payment and excluding
taxes or duties collected on behalf of the government.

Revenue from sale of goods is recognized, when the
control is transferred to the buyer, as per the terms of
the contracts and no significant uncertainty exists
regarding the amount of the consideration that will be
derived from the sale of goods.

Interest income or expense is recognised using the
effective interest rate method. The "effective interest
rate" is the rate that exactly discounts estimated
future cash receipts or payments through the
expected life of the financial instrument to:

• the gross carrying amount of the financial asset; or

• the amortised cost of the financial liability.

2.11. Leases

At inception of a contract, the Company assesses
whether a contract is, or contains, a lease. 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:

_• the contract involves the use of an identified asset -
this may be specified explicitly or implicitly and
should be physically distinct or represent
substantially all of the capacity of a physically
distinct asset. If the supplier has a substantive
substitution right, then the asset is not identified.

_• the Company has the right to obtain substantially all
of the economic benefits from use of the asset
throughout the period of use; and

_• the Company has the right to direct the use of the
asset. The Company has this right when it has the
decision-making rights that are most relevant to
changing how and for what purpose the asset is
used. In rare cases where the decision about how
and for what purpose the asset is used is
predetermined, the Company has the right to direct
the use of the asset if either:

- the Company has the right to operate the asset;
or

- the Company designed the asset in a way that
predetermines how and for what purpose it will
be used.

At inception or on reassessment of a contract that
contains a lease component, the Company allocates
the consideration in the contract to each lease
component on the basis of their relative stand-alone
prices.

Company as Lessee

The Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the
commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives received.

The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the earlier of the end of the

useful Life of the right-of-use asset or the end of the
Lease term. The estimated useful Lives of right-of-use
assets re determined on the same basis as those of
property and equipment. In addition, the right-of-use
asset is periodically reduced by impairment losses, if
any, and adjusted for certain remeasurements of the
lease liability.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be
readily determined, the Company''s incremental
borrowing rate. Generally, the Company uses its
incremental borrowing rates as the discount rate.

Lease payments included in the measurement of the
lease liability comprise the following:

• fixed payments, including in-substance fixed
payments.

• variable lease payments that depend on an index or
a rate, initially measured using the index or rate as
at the commencement date.

• amounts expected to e payable under a residual
value guarantee; and

• the exercise price under a purchase option that the
Company is reasonably certain to exercise, lease
payments in an optional renewal period if the
Company is reasonably certain to exercise an
extension option, and penalties for early termination
of a lease unless the Company is reasonably certain
not to terminate early.

The lease liability is measured at amortised cost using
the effective interest method. It is remeasured when
there is change in future lease payments arising from
a change n an index or rate, if there is change in the
Company''s estimate of the amount expected to be
payable under a residual value guarantee, or if the
Company changes its assessment of whether it will
exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in
statement of profit and loss if the carrying amount of
the right-of-use asset has been reduced to zero.

Leasehold land is amortised over the period of lease
remaining as on the date of purchase.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-
use assets and lease liability for the short-term leases
that have lease term of 12 months of less and leases
of low-value assets. The Company recognises the lease
payments associated with such leases as an expense
on a straight-line basis over the lease term.

2.12. Income Taxes

Income tax expense represents the sum of tax
currently payable and deferred tax. Tax is recognized
in the Statement of Profit and Loss, except to the
extent that it relates to items recognized directly in
equity or in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in
respect of previous years. The amount of current tax
reflects the best estimate of the tax amount expected
to be paid or received after considering the
uncertainty, if any, related to income taxes. Current tax
assets and liabilities are measured at the amount
expected to be recovered from or paid to the taxation
authorities. The tax rates and the a tax laws used to
compute the amount are those that are enacted or
substantively enacted, at the reporting date in the
country where the Company operates and generates
taxable income. Current tax assets and liabilities are
offset only if there is a legally enforceable right to set
it off the recognised amounts and it is intended to
realise the asset and settle the liability on a net basis
or simultaneously.

Deferred tax

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

Deferred tax liabilities are recognised for all taxable
temporary differences, except:

• When the deferred tax liability arises from the initial
recognition of goodwill or an asset or liability in a
transaction that is not a business combination and,
at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss,

_• Taxable temporary differences arising on the initial
recognition of goodwill.

_• Temporary differences related to investments in
subsidiaries, associates, and joint arrangements to
the extent that the Company is able to control the
timing of the reversal of the temporary differences
and it is probable that they will not reverse in the
foreseeable future.

Deferred tax assets 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, and the carry
forward of unused tax credits and unused tax losses
(including unabsorbed depreciation) can be utilised,
except:

_• When the deferred tax asset relating to the
deductible temporary difference arises from the
initial recognition of an asset or liability in a
transaction that is not a business combination and,
at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss.

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 utilised. 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.

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.

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 and
the deferred taxes relate to the same taxable entity
and the same taxation authority.

Deferred tax relating to items recognised outside
profit or loss is recognised outside profit or loss.
Deferred tax items are recognised in correlation to the
underlying transaction either in OCI or directly in
equity.

2.13 Current versus Non-Current classification

The Company presents assets and liabilities in the
Balance Sheet based on current/non-current
classification.

(a) An asset is current when it is:

• Expected to be realized or intended to be sold or
consumed in the normal operating cycle,

• Held primarily for the purpose of trading,

_• Expected to be realised within twelve months after
the reporting period, or

_• Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least
twelve months after the reporting period.

All other assets are classified as non-current.

(b) liability is current when:

_• It is expected to be settled in the normal operating
cycle,

_• It is held primarily for the purpose of trading,

_• It is due to be settled within twelve months after
the reporting period, or

_• There is no unconditional right to defer the
settlement of the liability for at least twelve months
after the reporting period.

All other liabilities are classified as non-current.

(c) Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

(d) The operating cycle is the time between the
acquisition of assets for processing and their
realization in cash and cash equivalents.

2.14 Employee benefits

(i) Short term employee benefits

All employee benefits payable wholly within twelve
months of rendering the service are classified as
short-term employee benefits. Un-discounted value of
benefits such as salaries, incentives, allowances and
bonus are recognized in the period in which the
employee renders the related service.

(ii) Long term employee benefits
Defined Contribution Plans:

The Company contributes to the employee''s approved
provident fund scheme. The Company’s contribution
paid/payable under the scheme is recognized as an

expense in the statement of profit and Loss during the
period in which the employee renders the related
services.

Defined Benefit Plans:

Gratuity Liability is a defined benefit obligation and is
provided on the basis of an actuarial valuation model
made at the end of each quarter. The Gratuity Liability
is funded by the Company by maintaining the funds
with a separate Asset Management Company, i. e., LIC
of India. Contributions to such fund is charged to
Profit & Loss Account. Actuarial Valuation of the
Gratuity is done at the end of the Financial Year and
accounted for accordingly.

2.15 Trade Receivables

Trade Receivables are stated after writing off debts
considered as bad. Adequate provision is made for
debts considered as doubtful.

2.16 Inventories

(i) Raw MateriaLs, Work in Progress, Finished Goods,
Packing MateriaLs, Stores, Spares and ConsumabLes
are carried at the Lower of cost and net reaLisabLe
value.

(ii) In determining the cost of Raw Materials, Packing
Materials, Stores, Spares and Consumables, FIFO
Method is used. Cost of Inventory comprises of all
costs of purchase, duties, taxes (other than those
subsequently recoverable from tax authorities) and
all other costs incurred in bringing the inventory to
their present location and condition.

(iii) Cost of Finished Goods includes the cost of Raw
Materials, Packing Materials, an appropriate share
of fixed and variable production overheads, indirect
taxes as appLicabLe and other costs incurred in
bringing the inventories to their present Location
and condition.

(iv) Cost of Stock in Trade procured for specific
projects is assigned by specific identification of
individual costs of each item

2.17 Borrowing Costs

Borrowing costs directly attributable to the
acquisition, construction or production of an asset,
that necessariLy takes substantiaL period of time to
get ready for its intended use or saLe, are capitaLized
as part of the cost of the respective asset. ALL other
borrowing costs are expensed in the period in which
they are incurred. Borrowing costs consist of interest,
exchange differences arising from foreign currency
borrowings to the extent they are regarded as an
adjustment to the interest cost an other costs that an
entity incurs in connection with the borrowings of the
funds.

2.18 Earnings per Share

Basic EPS is caLcuLated by dividing the profit for the
year attributabLe to equity hoLders of the Company by
the weighted average number of equity shares
outstanding during the financiaL year, adjusted for
bonus eLements and stock spLit in equity shares issued
during the year and excLuding treasury shares. The
weighted average number of equity shares outstanding
during the period and for aLL periods presented is
adjusted for events, such as bonus shares and stock
spLit, other than the conversion of potentiaL equity
shares that have changed the number of equity shares
outstanding, without a corresponding change in
resources.

• Diluted EPS adjust the figures used in the
determination of basic EPS to consider.

• 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.

2.19 Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.

The Board of Directors of the Company have been
identified as being the Chief Operating Decision Maker
by the management of the Company.

2.20 Foreign currency transactions

Transactions in foreign currencies are transLated into
the respective functionaL currency of the Company at
the exchange rates at the dates of the transactions.

Monetary assets and LiabiLities denominated in foreign
currencies are transLated into the functionaL currency
at the exchange rate at the reporting date. Non¬
monitory assets and LiabiLities that are measured at

fair vaLue in a foreign currency are transLated into the
functionaL currency at the exchange rate when the fair
vaLue was determined. Non-monitory items that are
measured based on historicaL cost in a foreign
currency are transLated at the exchange rate at the
date of the transaction. Foreign currency differences
are generaLLy recognised in the Statement of Profit
and Loss.

2.21 Government grants and subsidies

Grants / subsidies that compensate the Company for
expenses incurred are recognised in the Statement of
Profit and Loss as other operating income on a
systematic basis in the periods in which such
expenses are recognised.

Export incentives

Export incentives under various schemes notified by
the government are recognised when no significant
uncertainties as to the amount of consideration that
wouLd be derived and that the Company wiLL compLy
with the conditions associated with the grant and
uLtimate coLLection exist.

2.22 Recent Accounting Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under the Companies (Indian Accounting Standards)
RuLes as amended from time to time. There are no
such recentLy issued standards or amendments to the
existing standards for which the impact on the
Financial Statements is required to be disclosed.

In ? MM, unless otherwise stated

43. Financial risk management

The Company''s risk management policies are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s
activities. The Company, through its training and management standards and procedures, aims to maintain a
disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company’s management monitors compliance with the Company’s risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the
Company. The Board is also assisted by internal audit. Internal audit undertakes both regular and adhoc reviews
of risk management controls and procedures, the results of which are reported to the Board of directors.

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

• credit risk - see note (a) below

• liquidity risk - see note (b) below

• market risk - see note (c) below

(a) Credit Risk

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

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the factors that may influence the credit risk of its customer base,
including the default risk associated with the industry and country in which customers operate.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business. On
account of adoption of Ind AS 109, the Company uses expected credit loss model to assess impairment loss or
gain. The Company uses a 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 Company''s historical
experience for customers.

(i) The company has not made any provision on expected credit loss on trade receivables and other financials
assets, based on the management estimates

(ii) Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks
and financial institutions with high credit ratings assigned by domestic credit rating agencies.

(b) Liquidity Risk

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

The Company''s treasury department within the Finance Department is responsible for liquidity and funding. In
addition policies and procedures relating to such risks are overseen by the management.

The company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated
from the operations.

(c) Market Risk

Market risk is the risk that changes with market prices - such as foreign exchange rates and interest rates, will
affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising
the return.

(c1) Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rate. Company transacts business in its functional currency (INR) and in
other foreign currencies. The Company’s exposure to the risk of changes in foreign exchange rates relates
primarily to the Company’s operating activities, where revenue or expense is denominated in a foreign currency.

(b) Fair value hierarchy

As per Ind AS 107 "Financial Instrument: Disclosure", fair value disclosures are not required when the carrying
amounts reasonably approximate the fair value. As illustrated above, all financial instruments of the company
which are carried at amortized cost approximates the fair value (except for which the fair values are mentioned).
Investments in Mutual Funds which are designated at FVTPL & investment in shares which are classified as
FVTOCI are at fair value.

Aether Industries Limited - Employee Stock Option Scheme - 2021 (AIL ESOS 2021)

The Company has instituted equity-settled Employee Stock Option Scheme - 2021 duly approved by the
shareholders in the extra-ordinary general meeting of the Company held on 18 November 2021. The Company
introduced the AIL ESOS 2021 primarily with a view to attract, retain and incentivise the existing and new
employees of the Company and motivate them to contribute to the growth and profitability of the Company. The
shareholders by way of special resolution have authorised the Nomination and Remuneration Committee to
grant options not exceeding 11,00,000 to the eligible employees under the AIL ESOS 2021, in one or more
tranches, with each such option conferring a right upon the Eligible employee to apply for one share of the
Company.

As per AIL ESOS 2021, the Nomination and Remuneration Committee shall determine the eligibility criteria for
employees to whom the options would be granted and shall approve the grant of options. The options granted
on any date shall vest not earlier than 1 (one) year and not later than a maximum of 7 (seven) years from the
date of grant of options. Vesting of options would be subject to continued employment with the Company. The
exercise period shall be 7 (seven) years from the date of vesting of options. The vested options can be exercised
by the employee any time within the exercise period, or such other shorter period as may be prescribed by the
Nomination and Remuneration Committee from time to time and as set out in the Grant Letter.

The scheme was modified on 27 September 2022 and the revised terms are prospectively applicable to all
grants under the scheme. The modified terms are defined as follows:

The vesting period is minimum 1 (one) year but not later than 15 (fifteen) years from the date of grant of options.
Vesting of options would be subject to continued employment with the Company. The exercise period shall be
15 (fifteen) years from the date of vesting of options, subject to exceptional circumstances. The vested options
can be exercised by the employee any time within the exercise period, or such other shorter period as may be
prescribed by the Nomination and Remuneration Committee from time to time and as set out in the Grant
Letter.

54. Other matters

a. Registration of charges or satisfaction with Registrar of Companies (ROC)

The Company had registered various charges with the ROC within the statutory time period. During the financial
year, the Company has repaid all its Term Loans and hence the collaterals have been released from the bank
and accordingly the charges registered with ROC, have been satisfied.

b. Details of Benami Property held

The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 and
rules made thereunder, hence no proceedings initiated or pending against the Company under the said Act and
Rules.

54. Other matters

c. Loans and advances granted to specified person

Except as stated in the notes to accounts and financial statements, there are no other loans or advances
granted to specified persons namely the promoters, directors, KMPs and related parties.

d. Utilisation of borrowed funds, share premium and other funds

The Company has not received any funds from any person or entity with the understanding that the Company
would directly or indirectly lend or invest in other person or entity identified in any manner whatsoever by or on
behalf of the funding party (ultimate beneficiary) or provided any guarantee or security or the like on behalf of
the ultimate beneficiary,

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

i. 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

Ii. Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

e. Compliance with the number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read
with Companies (Restriction on number of Layers) Rules, 2017.

f. Details of Crypto Currency or Virtual Currency

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

g. Undisclosed Income

There is no transaction, which has not been recorded in the books of accounts, that has been surrendered or
disclosed as income during the year in tax assessments under the Income Tax Act, 1961.

h. Relationship with struck off companies

The Company has not have any transactions with companies, which are struck off under section 248 of the
Companies Act, 2013 or section 560 of the Companies Act, 1956.

---

Mar 31, 2022

Financial risk management

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors is responsible for developing and monitoring the Company''s risk management policies. The board regularly meets to decide its risk management activities.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company''s management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Board is also assisted by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the Board of Directors.

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

• credit risk - see note (a) below

• liquidity risk - see note (b) below

• market risk - see note (c) below

A.Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.

However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess impairment loss or gain. The Company uses a 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 Company''s historical experience for customers;

• The company has not made any provision on expected credit loss on trade receivables and other financials assets, based on the management estimates.

(ii)Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and financial institutions with high credit ratings assigned by domestic credit rating agencies.

B.Liquidity risk

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

The Company''s treasury department within the Finance Department is responsible for liquidity and funding. In addition policies and procedures relating to such risks are overseen by the management.

Market risk is the risk that changes with market prices -such as foreign exchange rates and interest rates, will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. Company transacts business in its functional currency (?) and in other foreign currencies. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities, where revenue or expense is denominated in a foreign currency.

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 Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates. The Company manages its interest rates by selection of appropriate type of borrowings and by negotiation with the banker.

43. Capital management

The Company''s capital comprises equity share capital, surplus in the statement of profit and loss and other equity attributable to equity holder

The Company''s objectives when managing capital are to :

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

- maintain an optimal capital structure to reduce the cost of capital.

b. Fair value hierarchy

As per Ind AS 107 "Financial Instrument: Disclosure", fair value disclosures are not required when the carrying amounts reasonably approximate the fair value. As illustrated above, all financial instruments of the company which are carried at amortized cost approximates the fair value (except for which the fair values are mentioned). Investments in Mutual Funds which are designated at FVTPL & investment in shares which are classified as FVTOCI are at fair value.

47. Explanation of transition to Ind AS

These Ind AS financial statements, for the year ended March 31, 2022 are the first financial statements prepared in accordance with Ind AS. For years up to and including the year ended March 31, 2021, the Company prepared its financial statements in accordance with accounting standards notified under Section 133 of the Companies Act, 2013, read with paragraph 7 of the Companies (Accounts)

Rules, 2014 ("IGAAP" or "Previous GAAP")

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ending on March 31, 2022 together with comparative period data as at and for the year ending on March 31, 2021 as described in the Basis of Preparation and Summary of Significant Accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 1, 2018 being the Company''s date of transition to Ind AS.

The financial statements for the years ended March 31, 2022 were prepared in accordance with Ind AS complying with the requirements of SEBI Circular dated March 31, 2016 and Guidance Note on Reports in Company Prospectuses issued by ICAI. For all the years the Company has adopted the same accounting policy and accounting policy choices (both mandatory exceptions and optional exemptions availed as per Ind AS 101) as initially adopted on the transition date, i.e. April 1, 2018.

This note explains exemptions availed by the Company in restating its previous GAAP financial statements, including the balance sheet as at April 1, 2018 and the financial statements as at and for the year ended March 31, 2022.

A. Exemptions availed

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has elected to apply the following exemptions :

1. Deemed cost : Property, plant and equipment and intangible assets

The Company has elected to continue with the carrying value for all of its property, plant and equipment and intangible assets as recognised in its Indian GAAP financials as deemed cost at the transition date.

2. Designation of previously recognised financial instruments

Financial assets and financial liabilities are classified at fair value based on facts and circumstances as at the date of transition to Ind AS. Financial assets and liabilities are recognised at fair value as at the date of transition to Ind AS i.e. April 1, 2018 and not from the date of initial recognition.

3. Leases

Ind AS 116 requires an entity to assess whether a contract or arrangement contains a lease. According to Ind AS 116, this assessment should be carried out at the inception of the contract or arrangement. However the Company has used Ind AS 101 exemption and assessed all arrangements based on conditions in place as the date of transition.

B. Exceptions applied

1. Estimates

The estimates at April 1, 2018 being the transition date and at March 31, 2022 are consistent with those made for the same dates in accordance with Indian GAAP. The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at April 1, 2018 , the date of transition to Ind AS and as of March 31, 2022.

2. De-recognition of financial assets and liabilities

Ind AS 101, requires first-time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements of Ind AS 109, retrospectively from a date of the Company''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities de-recognised as a result of past transaction was obtained at the time of initial accounting of transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from date of transition to Ind AS.

3. Classification and measurement of financial assets Ind AS 101 requires an entity to assess classification and measurement of financial assets, on the basis of the facts and circumstances that exist at the transition date to Ind AS.

C. Explanation of transition to Ind AS

An explanation of how the transition from Indian GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flow is set out in the following tables and notes that accompany the tables. The reconciliations include -

i. Reconciliation of equity as at March 31, 2021

ii. Reconciliation of total comprehensive income for the period ended March 31, 2021 ;

There are no material adjustments to the cash flow

statements.

D. Statement of reconciliation of total equity and profit and loss as per previous GAAP and Ind AS

Reconciliation of total equity as at March 31, 2021:

Notes to the reconciliations

a. Investment in mutual funds - Under Indian GAAP, long-term investments are valued at cost less provision for other than temporary diminution in the value of such investments. Under Ind AS, investment in mutual funds are classified as ''Fair value through profit and loss'' are measured at fair value at each reporting date. The subsequent changes in the fair value of such investments are recognised in statement of profit and loss.

b. Interest-free security deposits (Assets) - Under Indian GAAP, security deposits are recorded at transaction value. Under Ind AS, security deposits given to lessors for leased premises have been fair valued and the difference between the fair value and the transaction value have been presented as a part of right-of-use assets. Right-of-use assets has been depreciated in the statement of profit and loss over the lease term. Interest income on security deposit is recorded using effective interest rate method.

c. Leases - Under Indian GAAP, leases are required to be classify leases as finance lease and operating lease. Operating lease expenses are recognised on a straight-line basis over the lease term. Under Ind AS, a single lessee accounting model is prescribed and requires a lessee to recognize assets and liabilities for all leases with a lease term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognize a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payment. Right-of-use asset is depreciated in the statement of profit and loss over the lease term. Interest expenditure on lease liabilities is recorded using effective interest rate method.

d. Employee benefit expenses - actuarial gains and losses and return on plan assets - Under India GAAP, actuarial gains and losses and return on plan assets on post-employment defined benefit plans are recognised immediately in statement of profit and loss. Under Ind AS, remeasurements which comprise of actuarial gains and losses, return on plan assets and changes I the effect of asset, if any, with respect to

post employment defined benefit plans are recognised immediately in other comprehensive income (OCI). Further, remeasurements recognised in OCI are never reclassified to statement of profit and loss.

e. Prior period adjustments - Under Indian GAAP, prior period items are included in determination of profit or loss of the period in which the item is discovered and are separately disclosed in the statement of profit and loss. Under Ind AS, material prior period items are corrected retrospectively by restating the comparative amounts for prior period presented in which the error occurred or if the error occurred before the earliest period presented by restating the opening balance sheet. Under Indian GAAP, the Company did not take actuarial valuation of gratuity provision and its corresponding impact. However while restatement of financial information, impact of actuarial valuation of gratuity provision has been considered.

f. Liability - Preference shares - Under Indian GAAP, preference shares forms part of share capital. Under Ind AS, these preference shares are classified as borrowings (liability) and are subsequently measured at fair value profit or loss account (FVTPL).

g. Borrowings - Under Indian GAAP, transaction costs incurred in connection with borrowings are recognised upfront and charged to profit or loss for the period. Under Ind AS, transaction costs are included in the initial recognition of financial liability and charged to profit or loss using the effective interest method.

h. Income tax - Under Indian GAAP, deferred taxes are recognised using income statement approach i.e. reflecting the tax effects of timing differences between accounting income and taxable income for the period. Under Ind AS, deferred taxes are recognised using balance sheet approach i.e. reflecting the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes using the income tax rates enacted or substantively enacted at reporting date. Further under Ind AS, income tax is recognised in the same statement in which underlying item is recorded.

Information about major customers (External Customers)

The following is the transactions by the Company with external customers individually contributing 10% or more of revenue from operations:

• For the period ended March 31, 2022, revenue from operations of one customer of the Company represented approximately 12.10% of revenue from operations.

• For the year ended March 31, 2021, revenue from operations of one customer of the Company represented approximately 19.38% of revenue from operations.

50. Corporate Social Responsibility

As per the provisions of Section 135 of Companies Act 2013, the Company was required to spend T12.19 MM (March 31, 2021: T6.53 MM). being 2% of average net profits made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy on the activities specified in Schedule VII of the Act. However, the Company has spent T12.19 MM (March 31, 2021: T6.53 MM) towards Corporate Social Responsibility activities. Below are the details of the amount spent during the year :

51. Events subsequent to March 31, 2022

a. The Company has issued new 20,24,921 Equity Shares of T10 each @ T642 per share (T632 per share being the Share Premium) on May 5, 2021 during the Pre-IPO stage.

b. The Company has issued new 97,66,355 Equity Shares of T10 each @ T642 per share (T632 per share being the Share Premium) on May 31, 2021 as fresh Issue of Shares being part of the Initial Public Offer (IPO), and 1,11,370 Equity Shares reserved for the eligible employees under the ESOS.