Accounting Policies of ASK Automotive Ltd. Company

Mar 31, 2025

2.2. Summary of material accounting policies

(a) Current-non-current classification

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

Assets

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

a) it is expected to be realised in, or is
intended for sale or consumption in, the
normal operating cycle;

b) it is held primarily for the purpose
of being traded;

c) it is expected to be realised within 12
months after the reporting date; or

d) it is cash or cash equivalent unless it is
restricted from being exchanged or used
to settle a liability for at least 12 months
after the reporting date.

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

Liabilities

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

a) it is expected to be settled in the normal
operating cycle;

b) it is held primarily for the purpose
of being traded;

c) it is due to be settled within 12 months
after the reporting date; or

d) the company does not have an
unconditional right to defer settlement
of the liability for at least 12 months after
the reporting date. Terms of a liability that
could, at the option of the counterparty,
result in its settlement by the issue of
equity instruments do not affect its
classification.

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

Operating cycle

Operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash or cash equivalents. The
Company has determined its operating cycle as
12 months for the purpose of classification of its
assets and liabilities as current and non-current.

(b) Foreign currency transactions

i. Initial recognition

Transactions in foreign currencies are
translated into the functional currency of
the Company at the exchange rates at the
date of the transaction.

ii. Measurement at reporting date

Monetary assets and liabilities denominated
in foreign currencies are translated into the
functional currency at the exchange rate at
the reporting date. Non- monetary assets
and liabilities that are measured based
on historical cost in a foreign currency are
translated at the exchange rate at the date
of the transaction. Exchange differences on
restatement/ settlement of all monetary
items are recognised in the standalone
statement of profit and loss.

(c) Financial instruments

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

i. Recognition and initial measurement

All financial assets and financial liabilities
are recognised when the Company
becomes a party to the contractual
provisions of the instrument and are
measured initially at fair value adjusted
for transaction costs, except for those
carried at fair value through Profit and
Loss which are measured initially at fair
value. However, trade receivables are
recognised initially at the transaction
price as they do not contain significant
financing components.

ii. Classification and subsequent
measurement

Financial assets

On initial recognition, a financial asset is
classified as measured at

- amortised cost; or

- fair value through profit
or loss (‘FVTPL’)

Financial assets are not reclassified
subsequent to their initial recognition,
except if and in the period the Company
changes its business model for managing
financial assets.

A financial asset is measured at
amortised cost if it meets both of the
following conditions:

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

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

All financial assets not classified as
measured at amortised cost as described
above are measured at FVTPL.

Investment in equity instruments are
classified at fair value through profit or
loss, unless the Company irrevocably
elects on initial recognition to present
subsequent changes in fair value in other
comprehensive income for investments
in equity instruments which are not
held for trading.

Financial liabilities

Financial liabilities are classified as
measured at amortised cost or FVTPL. A
financial liability is classified as at FVTPL
if it is classified as held for trading, or it is
a derivative or it is designated as such on
initial recognition. Financial liabilities at
FVTPL are measured at fair value and net
gains and losses, including any interest
expense, are recognised in statement of
profit or loss. Other financial liabilities
are subsequently measured at amortised
cost using the effective interest method.
The Company does not have any fixed
liabilities under the category of FVTPL.

iii. Derecognition
Financial assets

The Company de-recognises a financial
asset when the contractual rights to the
cash flows from the financial asset expire,
or it transfers the rights to receive the
contractual cash flows in a transaction
in which substantially all of the risks and
rewards of ownership of the financial asset
are transferred or in which the Company
neither transfers nor retains substantially all
of the risks and rewards of ownership and
does not retain control of the financial asset.

Financial liabilities

The Company de-recognises a financial
liability when its contractual obligations
are discharged or cancelled, or expire. The
Company also de-recognises a financial
liability when its terms are modified
and the cash flows under the modified
terms are substantially different. In this
case, a new financial liability based on
the modified terms is recognised at
fair value. The difference between the
carrying amount of the financial liability
extinguished and the new financial
liability with modified terms is recognized
in statement of profit and loss.

iv. Offsetting

Financial assets and liabilities are offset
and the net amount is reported in the
standalone balance sheet where there
is a legally enforceable right to offset
the recognised amounts and there is
an intention to settle on a net basis or
realise the asset and settle the liability
simultaneously. The legally enforceable
right must not be contingent on future
events and must be enforceable in the
normal course of business and in the event
of default, insolvency or bankruptcy of the
group or the counterparty.

(d) Equity Investment in subsidiary and joint
venture

Investments in equity instruments of joint
venture and subsidiary company are accounted
for at cost less any provision for impairment
in accordance with Ind AS 27 “Separate
Financial Statements”.

(e) Property, plant and equipment

i. Recognition and measurement

Freehold Land is carried at cost and other
items of property, plant and equipment
are initially measured at cost of acquisition
or construction which includes capitalised
borrowing cost. The cost of an item of
property, plant and equipment comprises
its purchase price, including import duties
and other non-refundable purchase taxes
or levies, any directly attributable cost of
bringing the asset to its working condition
for its intended use and estimated cost of
dismantling and removing the item and

restoring the site on which it is located.
Any trade discounts and rebates are
deducted in arriving at the purchase price.
After initial recognition, items of property,
plant and equipment are carried at its cost
less any accumulated depreciation and /
or accumulatedimpairment loss, if any.

The cost of a self-constructed item of
property, plant and equipment including
dies comprises the cost of materials and
direct labour, any other costs directly
attributable / allocable to bring the item to
working condition for its intended use.

If significant parts of an item of property,
plant and equipment have different
useful lives, then they are accounted for
as separate items (major components) of
property, plant and equipment.

Gains or losses arising on sale/disposal of
items of property, plant and equipment are
recognised in the standalone statement of
profit and loss.

Capital work-in-progress comprises the
cost of fixed assets that are not ready for
their intended use at the reporting date.

ii. Subsequent expenditure

Subsequent expenditure is capitalised only
if it is probable that the future economic
benefits associated with the expenditure
will flow to the Company.

iii. Depreciation

Depreciation on items of property, plant
and equipment is provided on the straight¬
line method based on the estimated useful
life of each asset as determined by the
management. Depreciation is charged over
the number of shift a plant or equipment
is used in the business in accordance
with schedule II of the Companies Act.
Depreciation for assets purchased during
the year is proportionately charged i.e.
from the date on which asset is ready for
use. Depreciation for assets sold during
the year is proportionately charged i.e. up
to the date on which asset is disposed off.

The useful lives have been determined
based on internal evaluation done
by management and are in line with

the estimated useful lives, to the
extent prescribed by the Schedule II of
the Companies Act.

Based on internal valuation done by the
management, hangers and trollies are
depreciated at year end based on the
physical availability of respective assets.

Depreciation method, useful lives
and residual values are reviewed at
each financial year-end and adjusted
if appropriate.

Modification or extension to an existing
asset, which is of capital nature, and
which becomes an integral part thereof
is depreciated prospectively over the
remaining useful life of that asset.

(f) Goodwill

Represents amounts paid over the identifiable
assets towards Business Takeover transaction
is carried forward based on assessment of
benefits arising from such goodwill in future.
Goodwill is tested for impairment annually at
each balance sheet date in accordance with
the Company’s procedure for determining
the recoverable amount of such assets. The
recoverable amount of Cash Generating Unit
(CGU) is based on value in use. The value in use
for Goodwill is determined based on discounted
cash flow projections.

(g) Other Intangible Assets

i. Recognition and initial measurement

Other intangible assets that are acquired
by the Company are measured initially
at cost. After initial recognition, an
intangible asset is carried at its cost less
any accumulated amortisation and any
accumulated impairment loss.

ii. Subsequent expenditure

Subsequent expenditure is included in
the assets carrying amount or recognised
as a separate asset, as appropriate, only
when it is probable that future economic
benefits associated with the expenditure
will flow to the Company and cost can be
measured reliably

Distribution network

Represents allocation of amounts paid
towards Business Takeover transaction
is carried forward based on assessment
of benefits arising from such network in
future. Such expenditure is amortised on
period of ten years on straight line basis.

The above periods also represent
the management’s estimation of
economic useful life of the respective
intangible assets.

Amortisation method, useful lives
and residual values are reviewed at
each financial year-end and adjusted
if appropriate.

iii. Amortisation

Technical know-how is being amortised
over a period of seven years on a
straight-line basis.

Computer software is being amortised over
a period of six years on a straight-line basis.

(h) Inventories

Inventories which comprise of raw material,
work in progress, finished goods, packing
material and stores and spares are valued at
the lower of cost and net realisable value. Cost
of inventories comprises all cost of purchase,
cost of conversion and other costs incurred
in bringing the inventories to their present
location and condition.

The basis of determining costs for various
categories of inventories are as follows: -

Net realisable value is the estimated selling
price in the ordinary course of business, less
the estimated costs of completion and the
estimated costs necessary to make the sale.

The net realisable value of work-in-progress
is determined with reference to the selling
prices of related finished goods. Raw materials
held for use in production of finished goods
are not written down below cost, except in
cases where material prices have declined,
and it is estimated that the cost of the finished
goods will exceed its net realisable value. The
comparison of cost and net realisable value is
made on an item-by-item basis.

(i) Trade Receivables

Trade receivables are amounts due from
customers for goods sold or services
performed in the ordinary course of business
and reflects Company’s unconditional right
to consideration (that is, payment is due only
on the passage of time). Trade receivables are
recognised initially at the transaction price
as they do not contain significant financing
components. The Company holds the trade
receivables with the objective of collecting the
contractual cash flows and therefore measures
them subsequently at amortised cost using the
effective interest method, less loss allowance.

Transfer of Financial Assets

In case of assignment of trade receivables
wherein substantially risk and rewards are
transferred, and the assignee gets absolute
right of disposal/collection, the trade
receivables are derecognized as per Ind AS
109. Trade Receivables which do not qualify
for derecognition, the proceeds received from
such transfers are recorded as loans from
banks / financial institutions and classified
under short-term borrowings.

(j) Impairment of assets
Impairment of financial assets

The Company recognises loss allowances
using the Expected Credit Loss (ECL) model for

the financial assets which are not fair valued
through profit or loss. Loss allowance for trade
receivables with no significant financing
component is measured at an amount equal
to lifetime ECL. For all other financial assets,
expected credit losses are measured at an
amount equal to the 12-month ECL, unless
there has been a significant increase in credit
risk from initial recognition, in which case
those financial assets are measured at lifetime
ECL. The changes (incremental or reversal) in
loss allowance computed using ECL model, are
recognised as an impairment gain or loss in the
standalone statement of profit and loss.

Impairment of non-financial assets

The Company’s non-financial assets are
reviewed at each reporting date to determine
if there is indication of any impairment. If
any indication exists, the asset’s recoverable
amount is estimated. Assets that do not
generate independent cash flows are grouped
together into cash generating units (CGU).
An impairment loss is recognised whenever
the carrying amount of an asset or its cash
generating unit exceeds its recoverable
amount. Recoverable amount is determined:

i. in case of an individual asset, at the
higher of the net selling price and the
value in use; and

ii. in case of a cash generating unit (a
group of assets that generates identified,
independent cash flows), at the higher of
the cash generating unit’s net selling price
and the value in use.

(The amount of value in use is determined as
the present value of estimated future cash
flows from the continuing use of an asset and
from its disposal at the end of its useful life.
For this purpose, the discount rate (pre-tax) is
determined based on the weighted average
cost of capital of the respective company
suitably adjusted for risks specified to the
estimated cash flows of the asset). For this
purpose, a cash generating unit is ascertained
as the smallest identifiable group of assets
that generates cash inflows that are largely
independent of the cash inflows from other
assets or groups of assets.

Impairment losses are recognised in the
standalone statement of profit and loss. An
impairment loss is reversed if there has been

a change in the estimates used to determine
the recoverable amount. An impairment loss
is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying
amount that would have been determined
net of depreciation or amortisation, if no
impairment loss had been recognised.

(k) Trade and other payables

Trade and other payables represent liabilities for
goods or services provided to the Company prior
to the end of financial year which are unpaid.

(l) Borrowings

Borrowings are initially recognised at fair value,
net of transaction costs incurred. Borrowings
are subsequently measured at amortised cost.
Any difference between the proceeds (net of
transaction costs) and the redemption amount
is recognised in profit or loss over the period of
the borrowings using the effective interest rate
method. Borrowings are de-recognised from the
balance sheet when the obligation specified in
the contract is discharged, cancelled or expired.
The difference between the carrying amount of
a financial liability that has been extinguished or
transferred to another party and the consideration
paid, including any non-cash assets transferred or
liabilities assumed, is recognised in profit or loss.

(m) Employee benefits

i) Short-term employee benefits

Employee benefits payable within twelve
months of receiving employee services are
classified as short-term employee benefits.
These benefits include salaries and wages,
bonus, etc. The undiscounted amount
of short-term employee benefits to be
paid in exchange for employee services is
recognised as an expense in standalone
statement of profit and loss as the related
service is rendered by employees.

ii) Other long-term employee benefits:

Other long-term employee benefits are
recognised as an expense in the standalone
statement of profit and loss as and when
they accrue. The Company determines the
liability using the Projected Unit Credit
Method, with actuarial valuations carried
out as at the balance sheet date. Actuarial
gains and losses in respect of such benefits
are charged to the standalone statement
of profit and loss.

iii) Post employment obligations

a. Defined Contribution Plans:

The Company makes payments to
defined contribution plans such
as provident fund and employees’
state insurance. The Company has
no further payment obligations once
the contributions have been paid.
The contributions are accounted for
as defined contribution plans and
the contributions are recognised as
employee benefit expense when they
are due. Prepaid contributions are
recognised as an asset to the extent
that a cash refund or a reduction in
the future payments is available.

b. Defined Benefit Plans:

The liability or asset recognised
in the balance sheet in respect of
defined benefit gratuity plans is the
present value of the defined benefit
obligation at the end of the reporting
period less the fair value of plan assets.
The defined benefit obligation is
calculated annually by actuaries using
the projected unit credit method.

The net interest cost is calculated
by applying the discount rate to
the balance of the defined benefit
obligation and the fair value of
plan assets. This cost is included
in employee benefit expense
in the standalone statement of
profit and loss.

Remeasurement gains and losses
arising from experience adjustments
and changes in actuarial assumptions
are recognised in the period in
which they occur, directly in other
comprehensive income. They are
included in retained earnings
in the standalone statement of
changes in equity and in the
standalone balance sheet.

Changes in the present value of the
defined benefit obligation resulting
from plan amendments or curtailments
are recognised immediately in profit
and loss as past service cost.

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Mar 31, 2024

1. Corporate Information

ASK Automotive Limited (Formerly known as ASK Automotive Private Limited) (‘the Company’) is a Public Limited Company domiciled in India, with its registered office situated at Flat No. 104, 929/1, Naiwala, Faiz Road, Karol Bagh, New Delhi-110005. The Company has one wholly owned subsidiary and one Joint Venture Company in India. The Company was incorporated as a private limited (ASK Automotive Private Limited) on 18 January 1988, later converted to a public limited company vide revised “Certificate of Incorporation” consequent upon conversion from Private Limited Company to Public Company dated 6 January 2023. During the year, the Company has completed its IPO process on 15 November 2023and equity shares of the Company got listed on National Stock Exchange Limited (NSE) and Bombay Stock Exchange Limited (BSE).

The Company is engaged in the business of manufacturing of auto components including advance braking systems, aluminum light weighting precision solutions and safety control cables primarily for automobile industry. The Company is supplier to the major leading Original Equipment Manufacturers (OEMs) in India like Honda, Hero MotoCorp, Bajaj Auto, TVS Motors, Suzuki, Yamaha, Mahindra, Royal Enfield, OLA, Ather, Revolt, Maruti, Piaggio etc. and having strong presence in secondary market (Independent aftermarket). The Company has manufacturing facilities in the states of Haryana, Karnataka, Gujarat, Himachal Pradesh and Uttarakhand.

These standalone financial statements for the year ended 31 March 2024 (reporting date) have been prepared as per the requirements of Schedule III of the Companies Act, 2013.

2. Material accounting policies

The material accounting policies applied by the Company in the preparation of its standalone financial statements are listed below. Such accounting policies have been applied consistently to all the periods presented in these standalone financial statements, unless otherwise indicated.

2.1 Basis of preparation

a. Statement of compliance with Ind AS

These standalone financial statements (‘financial statements’) of the Company have been prepared in accordance with the Indian Accounting Standards (hereinafter referred

to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs (‘MCA’) under section 133 of the Companies Act 2013 (‘Act’) read with the Companies (Indian Accounting Standards) Rules, 2015 and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable. The Company has uniformly applied the accounting policies during the periods presented.

The financial statements for the year ended 31 March 2024 were authorised and approved for issue by the Board of Directors on 18 May 2024.

b. Functional and presentation currency

These standalone financial statements are presented in Indian rupees (‘INR’), which is also the Company’s functional currency. All amounts have been rounded-off to the nearest lakhs upto two place of decimal, unless otherwise indicated.

c. Basis of measurement

The standalone financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India. The standalone financial statements have been prepared on the historical cost basis except for the following items:

Items	Measurement basis
Certain financial assets and liabilities	Fair value
Defined benefits	Present value of defined
(assets)/liability	benefits obligations

d. Use of critical accounting estimates and judgements

The preparation of standalone financial statements in conformity with generally accepted accounting principles require management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities on the date of the standalone financial statements. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates are recognised prospectively in current and future periods. Information about judgments

made in applying accounting policies that have the most significant effects on the amounts recognised in the standalone financial statements is included in the following notes:

Useful lives of depreciable/amortisable assets -

Management reviews its estimate of the useful lives of depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of assets.

Defined benefit obligation (DBO) -

Management’s estimate of the DBO is based on underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

Recognition of deferred tax assets - The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilised.

Contingent liabilities - At each balance sheet date, on the basis of the management judgment, changes in facts and legal aspects, the Company assesses the requirement of disclosure against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.

Impairment - The Company estimates the recoverable value of the cash generating unit (CGU) based on future cash flows after considering current economic conditions and trends, estimated future operating results and growth rates, anticipated future economic and regulatory conditions. The estimated cash flows are developed using internal forecasts. The cash flows are discounted using a suitable discount rate in order to calculate the present value. Further details of the Company’s impairment review and key assumptions are set out in note 4B and note 5.3.

Classification of leases - The Company enters into leasing arrangements for various premises. The assessment (including measurement) of the lease is based on several factors, including, but not limited to, transfer of ownership of

leased asset at end of lease term, lessee’s option to extend/terminate etc. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to extend or to terminate.

e. Fair value measurement

A number of the Company’s accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to measurement of fair values. This includes treasury division which is responsible for overseeing all significant fair value measurements, including Level 3 fair values, and report directly to chief financial officer.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

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 rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

When measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the changes have occurred.

2.2. Summary of material accounting policies (a) Current-non-current classification

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

Assets

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

a) it is expected to be realised in, or is intended for sale or consumption in, the normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within 12 months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

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

Liabilities

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

a) it is expected to be settled in the normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within 12 months after the reporting date; or

d) the company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

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

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

(b) Foreign currency transactions

i. Initial recognition

Transactions in foreign currencies are translated into the functional currency of the Company at the exchange rates at the date of the transaction.

ii. Measurement at reporting date

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non- monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Exchange differences on restatement/ settlement of all monetary items are recognised in the standalone statement of profit and loss.

(c) Financial instruments

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

i. Recognition and initial measurement

All financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through Profit and Loss which are measured initially at fair value. However, trade receivables are recognised initially at the transaction price as they do not contain significant financing components.

ii. Classification and subsequent

measurement

Financial assets

On initial recognition, a financial asset is classified as measured at

- amortised cost; or

- fair value through profit or

loss (‘FVTPL’)

Financial assets are not reclassified

subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions:

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

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

All financial assets not classified as measured at amortised cost as described above are measured at FVTPL.

Investment in equity instruments are classified at fair value through profit or loss, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading.

Financial liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in statement of profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. The Company does not have any fixed liabilities under the category of FVTPL.

iii. Derecognition Financial assets

The Company de-recognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

Financial liabilities

The Company de-recognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also de-recognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized in statement of profit and loss.

iv. Offsetting

Financial assets and liabilities are offset and the net amount is reported in the standalone balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty.

(d) Equity Investment in subsidiary and joint venture

Investments in equity instruments of joint venture and subsidiary company are accounted for at cost less any provision for impairment in accordance with Ind AS 27 “Separate Financial Statements”.

(e) Property, plant and equipment

i. Recognition and measurement

Freehold Land is carried at cost and other items of property, plant and equipment are initially measured at cost of acquisition or construction which includes capitalised borrowing cost. The cost of an item of property, plant and equipment comprises its purchase price, including import duties and other non-refundable purchase taxes or levies, any directly attributable cost of bringing the asset to its working condition for its intended use and estimated cost of dismantling and removing the item and

restoring the site on which it is located. Any trade discounts and rebates are deducted in arriving at the purchase price. After initial recognition, items of property, plant and equipment are carried at its cost less any accumulated depreciation and / or accumulated impairment loss, if any.

The cost of a self-constructed item of property, plant and equipment including dies comprises the cost of materials and direct labour, any other costs directly attributable / allocable to bring the item to working condition for its intended use.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

Gains or losses arising on sale/disposal of items of property, plant and equipment are recognised in the standalone statement of profit and loss.

Capital work-in-progress comprises the cost of fixed assets that are not ready for their intended use at the reporting date.

ii. Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

iii. Depreciation

Depreciation on items of property, plant and equipment is provided on the straightline method based on the estimated useful life of each asset as determined by the management. Depreciation is charged over the number of shift a plant or equipment is used in the business in accordance with schedule II of the Companies Act. Depreciation for assets purchased during the year is proportionately charged i.e. from the date on which asset is ready for use. Depreciation for assets sold during the year is proportionately charged i.e. up to the date on which asset is disposed off.

The useful lives have been determined based on internal evaluation done by management and are in line with the estimated useful lives, to the extent prescribed by the Schedule II of the Companies Act.

Life in Years
Buildings	30
Plant and machinery	15 to 20
Electrical installations	10
Furniture and fixtures	10
Office equipments	5
Vehicles	8
Dies and Moulds	7 to 10
Computers	3

Based on internal valuation done by the management, hangers and trollies are depreciated at year end based on the physical availability of respective assets.

Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

Modification or extension to an existing asset, which is of capital nature, and which becomes an integral part thereof is depreciated prospectively over the remaining useful life of that asset.

(f) Goodwill

Represents amounts paid over the identifiable assets towards Business Takeover transaction is carried forward based on assessment of benefits arising from such goodwill in future. Goodwill is tested for impairment annually at each balance sheet date in accordance with the Company’s procedure for determining the recoverable amount of such assets. The recoverable amount of Cash Generating Unit (CGU) is based on value in use. The value in use for Goodwill is determined based on discounted cash flow projections.

(g) Other Intangible Assets

i. Recognition and initial measurement

Other intangible assets that are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortisation and any accumulated impairment loss.

ii. Subsequent expenditure

Subsequent expenditure is included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the expenditure will flow to the Company and cost can be measured reliably

Distribution network

Represents allocation of amounts paid towards Business Takeover transaction is carried forward based on assessment of benefits arising from such network in future. Such expenditure is amortised on period of ten years on straight line basis.

The above periods also represent the management’s estimation of economic useful life of the respective intangible assets.

Amortisation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

iii. Amortisation

Technical know-how is being amortised over a period of seven years on a straight-line basis.

Computer software is being amortised over a period of six years on a straight-line basis.

(h) Inventories

Inventories which comprise of raw material, work in progress, finished goods, packing material and stores and spares are valued at the lower of cost and net realisable value. Cost of inventories comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

The basis of determining costs for various categories of inventories are as follows: -

Raw materials,	- Weighted Average
components, stores	Method
and spares, Packing
material, Loose
Tools, gauges and
instruments

Work-in-progress	- Material cost
and finished goods	plus appropriate
	proportion
	of labour,
	manufacturing
	overheads.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

The net realisable value of work-in-progress is determined with reference to the selling prices of related finished goods. Raw materials held for use in production of finished goods are not written down below cost, except in cases where material prices have declined, and it is estimated that the cost of the finished goods will exceed its net realisable value. The comparison of cost and net realisable value is made on an item-by-item basis.

(i) Trade Receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business and reflects Company’s unconditional right to consideration (that is, payment is due only on the passage of time). Trade receivables are recognised initially at the transaction price as they do not contain significant financing components. The Company holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method, less loss allowance.

Transfer of Financial Assets

In case of assignment of trade receivables wherein substantially risk and rewards are transferred, and the assignee gets absolute right of disposal/collection, the trade receivables are derecognized as per Ind AS 109. Trade Receivables which do not qualify for derecognition, the proceeds received from such transfers are recorded as loans from banks / financial institutions and classified under short-term borrowings.

(j) Impairment of assets Impairment of financial assets

The Company recognises loss allowances using the Expected Credit Loss (ECL) model for

the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition, in which case those financial assets are measured at lifetime ECL. The changes (incremental or reversal) in loss allowance computed using ECL model, are recognised as an impairment gain or loss in the standalone statement of profit and loss.

Impairment of non-financial assets

The Company’s non-financial assets are reviewed at each reporting date to determine if there is indication of any impairment. If any indication exists, the asset’s recoverable amount is estimated. Assets that do not generate independent cash flows are grouped together into cash generating units (CGU). An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Recoverable amount is determined:

i. in case of an individual asset, at the higher of the net selling price and the value in use; and

ii. in case of a cash generating unit (a group of assets that generates identified, independent cash flows), at the higher of the cash generating unit’s net selling price and the value in use.

(The amount of value in use is determined as the present value of estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life. For this purpose, the discount rate (pre-tax) is determined based on the weighted average cost of capital of the respective company suitably adjusted for risks specified to the estimated cash flows of the asset). For this purpose, a cash generating unit is ascertained as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Impairment losses are recognised in the standalone statement of profit and loss. An impairment loss is reversed if there has been

a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortisation, if no impairment loss had been recognised.

(k) Trade and other payables

Trade and other payables represent liabilities for goods or services provided to the Company prior to the end of financial year which are unpaid.

(l) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest rate method. Borrowings are de-recognised from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

(m) Employee benefits

i) Short-term employee benefits

Employee benefits payable within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus, etc. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognised as an expense in standalone statement of profit and loss as the related service is rendered by employees.

ii) Other long-term employee benefits:

Other long-term employee benefits are recognised as an expense in the standalone statement of profit and loss as and when they accrue. The Company determines the liability using the Projected Unit Credit Method, with actuarial valuations carried out as at the balance sheet date. Actuarial gains and losses in respect of such benefits are charged to the standalone statement of profit and loss.

iii) Post employment obligations

a. Defined Contribution Plans:

The Company makes payments to defined contribution plans such as provident fund and employees’ state insurance. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

b. Defined Benefit Plans:

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The net interest cost is calculated by applying the discount rate to the balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the standalone statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the standalone statement of changes in equity and in the standalone balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit and loss as past service cost.

(n) Provisions

A provision is recognised if, as a result of a past event, the Company has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

(o) Revenue recognition

Revenue is recognised 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..

However, Goods and Services Tax (GST) is not received by the Company on its own account. Rather, it is tax collected on value added to the commodity or supplies made by the seller on behalf of the government. Accordingly, it is excluded from revenue.

Sale of goods

Revenue from sale of goods is recognised based on a 5-Step Methodology which is as follows:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligation in contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

Revenue from sale of goods is recognised at the point in time when control of the goods is transferred to the customer, generally on delivery of the goods and there are no unfulfilled obligations. Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, turnover discounts, scheme discounts and cash discounts, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.

Sale of services

The Company recognises revenue from sales of services over time, because the customer

simultaneously receives and consumes the benefits provided by the Company. Revenue from services provided is recognised upon rendering of the services, in accordance with the agreed terms with the customers where ultimate collection of the revenue is reasonably expected.

Other operating revenue

All export benefits and incentives under various policies of Government of India are recognised on accrual basis when no significant uncertainties as to the amount of consideration that would be derived and as to its ultimate collection exist.

Other income

Interest income is recognised on accrual basis using the effective interest method.

Contract assets

Contract assets is right to consideration in exchange for goods or services transferred to the customer and performance obligation satisfied. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional, in the nature of unbilled receivables. Upon completion of the attached condition and acceptance by the customer, the amounts recognised as contract assets is reclassified to trade receivables upon invoicing. A receivables represents the Company’s right to an amount of consideration that is unconditional. Contract assets are subject to impairment assessment.

Contract liabilities

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

(p) Government grants

Government grants related to property, plant and equipment under Export Promotion Capital Goods (EPCG) are included in the noncurrent liabilities as deferred government grant and are credited to Profit or loss on the basis of fulfillment of export obligation and presented within other income in accordance with the primary conditions associated with purchase of assets and related grants.

Government grants not related to assets are recognised in the Standalone Statement of Profit and Loss when the right to receive benefits is established and the realisation is reasonably certain.

(q) Leases

A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’.

Classification of leases

The Company enters into leasing arrangements for various assets. The assessment of the lease is based on several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee’s option to extend/purchase etc.

Recognition and initial measurement

At lease commencement date, the Company recognises a right-of-use asset and a lease liability on the balance sheet. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Company, an estimate of any costs to dismantle and remove the asset at the end of the lease (if any), and any lease payments made in advance of the lease commencement date (net of any incentives received).

Subsequent measurement

The Company depreciates the right-of-use assets on a straight-line basis from the lease 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 Company also assesses the right-of-use asset for impairment when such indicators exist.

At lease commencement date, the Company measures the lease liability at the present value

of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the Company’s incremental borrowing rate (IBR). Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed payments) and variable payments based on an index or rate. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is re-measured to reflect any reassessment or modification, or if there are changes in insubstance fixed payments. When the lease liability is re-measured, the corresponding adjustment is reflected in the right-of-use asset.

The Company has elected to account for shortterm leases using the practical expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in standalone statement of profit and loss on a straight-line basis over the lease term.

Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its IBR to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay for last long-term funds raised.

(r) Income-tax

Tax expense recognised in the standalone statement of profit and loss comprises the sum of deferred tax and current tax not recognised in other comprehensive income or directly in equity.

Current tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with relevant tax regulations. Current tax are recognised as an expense or income in the standalone statement of profit and loss, except when they relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also recognised in other comprehensive income or directly in equity.

Deferred tax is recognised in respect of temporary differences between carrying amount of assets and liabilities for financial reporting purposes and corresponding amount used for taxation purposes. Deferred tax assets

on unrealised tax loss are recognised to the extent that it is probable that the underlying tax loss will be utilised against future taxable income. This is assessed based on the Company’s forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any unused tax loss. 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 are recognised as an expense or income in the consolidated statement of profit and loss, except when they relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also recognised in other comprehensive income or directly in equity.

(s) Earnings per share

Basic earnings per share are calculated by dividing the standalone net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the standalone net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares except where the results will be anti-dilutive

(t) Contingent liabilities and contingent assets

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed. Contingent assets are neither recognised nor disclosed in the standalone financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.

(u) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the standalone balance sheet.

(v) Borrowing cost

Borrowing costs directly attributable to acquisition, construction or erection of qualifying assets are capitalised. Capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended use are complete.

Other borrowing costs are recognised as an expense in the standalone statement of profit and loss in the year in which they are incurred.

(w) New and amended standards adopted by the company

The Ministry of Corporate Affairs vide notification dated 31 March 2023 notified the Companies (Indian Accounting Standards) Amendment Rules, 2023, which amended certain accounting standards (see below), and are effective 1 April 2023:

• Disclosure of accounting policies -amendments to Ind AS 1

• Definition of accounting estimates -amendments to Ind AS 8

• Deferred tax related to assets and liabilities arising from a single transaction - amendments to Ind AS 12

The other amendments to Ind AS notified by these rules are primarily in the nature of clarifications.

These amendments did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods. For the year ended 31 March 2024, MCA has not notified any new standards applicable to the Company.

---

Mar 31, 2023

1.    Corporate Information

ASK Automotive Limited (Formerly known as ASK Automotive Private Limited) (‘the Company’) is a Public Limited Company domiciled in India, with its registered office situated at Flat No. 104, 929/1, Naiwala, Faiz Road, Karol Bagh, New Delhi-110005. The Company has one wholly owned subsidiary and one Joint Venture Company in India. The Company was incorporated as a private limited (ASK Automotive Private Limited) on 18 January 1988. The Company during the year passed a special resolution in the extraordinary general meeting of the shareholders held on 7 December 2022 for conversion to a public limited Company. The Company received a certificate of incorporation from the Registrar of Companies on 6 January 2023 and was converted to a public company.

The Company is engaged in the business of manufacturing of auto components including advance braking systems, aluminum light weighting precision solutions and safety control cables primarily for automobile industry. The Company is supplier to the major leading Original Equipment Manufacturers (OEMs) in India like Honda, Hero MotoCorp, Bajaj Auto, TVS Motors, Suzuki, Yamaha, Mahindra, Royal Enfield, OLA, Ather, Revolt, Maruti, Piaggio etc. and having strong presence in secondary market (Independent aftermarket). The Company has manufacturing facilities in the states of Haryana, Karnataka, Gujarat, Himachal Pradesh and Uttarakhand.

These standalone financial statements for the year ended 31 March 2023 (reporting date) have been prepared as per the requirements of Schedule III of the Companies Act, 2013.

2.    Basis of preparation

a. Statement of compliance with Ind AS

These standalone financial statements (‘financial statements’) of the Company have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs (‘MCA’) under section 133 of the Companies Act 2013 (‘Act’) read with the Companies (Indian Accounting Standards) Rules, 2015 and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable. The Company has uniformly applied the accounting policies during the periods presented.

The financial statements for the year ended 31 March 2023 were authorized and approved for issue by the Board of Directors on 16 May 2023.

b.    Functional and presentation currency

These standalone financial statements are presented in Indian rupees (‘INR’), which is also the Company’s functional currency. All amounts have been rounded-off to the nearest lakhs upto two place of decimal, unless otherwise indicated.

c.    Basis of measurement

The standalone financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India. The standalone financial statements have been prepared on the historical cost basis except for the following items:

Items_______Measurement basis_

Certain financial assets and liabilities    Fair value

Defined benefits (assets)/liability    Present value of defined benefits obligations

d.    Use of estimates and judgements

The preparation of standalone financial statements in conformity with generally accepted accounting principles require management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities on the date of the standalone financial statements. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates are recognized prospectively in current and future periods. Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the standalone financial statements is included in the following notes:

Significant estimates

Useful lives of depreciable/amortisable assets - Management reviews its estimate of the useful lives of depreciable/amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of assets.

Defined benefit obligation (DBO) — Management’s estimate of the DBO is based on underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

Recognition of deferred tax assets — The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the future taxable income against which the deferred tax assets can be utilized.

Significant judgments

Contingent liabilities — At each balance sheet date, on the basis of the management judgment, changes in facts and legal aspects, the Company assesses the requirement of disclosure against the outstanding contingent liabilities. However, the actual future outcome may be different from this judgement.

Impairment of financial assets - At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding financial assets.

Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of assets requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets.

Classification of leases - The Company enters into leasing arrangements for various premises. The assessment (including measurement) of the lease is based on several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee’s option to extend/terminate etc. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to extend or to terminate.

e.    Measurement of fair values

A number of the Company’s accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to measurement of fair values. This includes treasury division which is responsible for overseeing all significant fair vaTqe measurements, including Level 3 fair values, and report directly to chief financial officer. 0/'

/—if    \ —K fi I /1

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

When measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the changes have occurred.

2A. Significant accounting policies

(a) Current-non-current classification

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

Assets

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

a)    it is expected to be realised in, or is intended for sale or consumption in, the normal operating cycle;

b)    it is held primarily for the purpose of being traded;

c)    it is expected to be realised within 12 months after the reporting date; or

d)    it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

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

Liabilities

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

a)    it is expected to be settled in the normal operating cycle;

b)    it is held primarily for the purpose of being traded;

c)    it is due to be settled within 12 months after the reporting date; or

d)    the company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

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

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

(b) Foreign currency transactions

i. Initial recognition

Transactions in foreign currencies are translated into the functional currency of the Company at ifrivxcjjange rates at the date of ihe transaction.

ii. Measurement at reporting date

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non- monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Exchange differences on restatement/ settlement of all monetary items are recognized in the standalone statement of profit and loss.

(c) Financial instruments

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

i.    Recognition and initial measurement

All financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument and are measured initially at fair value adjusted for transaction costs, except for those carried at fair value through Profit and Loss which are measured initially at fair value. However, trade receivables are recognised initially at the transaction price as they do not contain significant financing components.

ii.    Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at

-    amortised cost; or

-    fair value through profit or loss (‘FVTPL’)

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions:

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

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

All financial assets not classified as measured at amortised cost as described above are measured at FVTPL.

Investment in equity instrument are classified at fair value through profit or loss, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading.

Financial liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in statement of profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. The Company does not have any fixed liabilities unde: the category of FVTPL.

Hi. Derecognition

Financial assets

The Company de-recognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

Financial liabilities

The Company de-recognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also de-recognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized in statement of profit and loss.

iV. Offsetting

Financial assets and liabilities are offset and the net amount is reported in the standalone balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty.

(d)    Equity Investment in subsidiary and joint venture

Investments in equity instruments of joint venture and subsidiary company are accounted for at cost less any provision for impairment in accordance with Ind AS 27 Separate Financial Statements.

(e)    Property, plant and equipment

i.    Recognition and measurement

Freehold Land is carried at cost and other items of property, plant and equipment are initially measured at cost of acquisition or construction which includes capitalized borrowing cost. The cost of an item of property, plant and equipment comprises its purchase price, including import duties and other non-refundable purchase taxes or levies, any directly attributable cost of bringing the asset to its working condition for its intended use and estimated cost of dismantling and removing the item and restoring the site on which it is located. Any trade discounts and rebates are deducted in arriving at the purchase price. After initial recognition, items of property, plant and equipment are carried at its cost less any accumulated depreciation and / or accumulated impairment loss, if any.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labor, any other costs directly attributable / allocable to bring the item to working condition for its intended use.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

Gains or losses arising on sale/disposal of items of property, plant and equipment are recognized in the

standalone staJemcnt.of profit and loss.    _____

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Capital work-in-progress comprises the cost of fixed assets that are not ready for their intended use at the reporting date.

ii. Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

Hi. Depreciation

Depreciation on items of property, plant and equipment is provided on the straight-line method based on the estimated useful life of each asset as determined by the management. Depreciation is charged over the number of shift a plant or equipment is used in the business in accordance with schedule II of the Companies Act. Depreciation for assets purchased during the year is proportionately charged i.e. from the date on which asset is ready for use. Depreciation for assets sold during the year is proportionately charged i.e. up to the date on which asset is disposed off.

The useful lives have been determined based on internal evaluation done by management and are in line with the estimated useful lives, to the extent prescribed by the Schedule II of the Companies Act.

Â	Life in Years
Buildings	30
Plant and machinery	15 to 20
Electrical installations	10
Furniture and fixtures	10
Office equipments	5
Vehicles	8
Dies and Moulds	7 to 10
Computers	3

Based on internal valuation done by the management, Hangers and trollies are depreciated at year end based on the physical availability of respective assets.

Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

Modification or extension to an existing asset, which is of capital nature, and which becomes an integral part thereof is depreciated prospectively over the remaining useful life of that asset.

(f)    Goodwill

Represents amounts paid over the identifiable assets towards Business Takeover transaction is carried forward based on assessment of benefits arising from such goodwill in future. Goodwill is tested for impairment annually at each balance sheet date in accordance with the Company’s procedure for determining the recoverable amount of such assets. The recoverable amount of Cash Generating Unit (CGU) is based on value in use. The value in use for Goodwill is determined based on discounted cash flow projections.

(g)    Other Intangible Assets

i. Recognition and initial measurement

Other intangible assets that are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortisation and any accumulated impairment loss.    ?^a07^>N.

ii.    Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

Distribution network

Represents allocation of amounts paid towards Business Takeover transaction is carried forward based on assessment of benefits arising from such network in future. Such expenditure is amortised on period often years on straight line basis.

The above periods also represent the management’s estimation of economic useful life of the respective intangible assets.

Amortisation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

iii.    Amortisation

Technical know-how is being amortised over a period of seven years on a straight line basis.

Computer software is being amortised over a period of six years on a straight line basis.

(h)    Inventories

Inventories which comprise of raw material, work in progress, finished goods, packing material and stores and spares are valued at the lower of cost and net realisable value. Cost of inventories comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

The basis of determining costs for various categories of inventories are as follows: -

Raw materials, components, stores and spares,    - Weighted Average Method

Packing material, Loose Tools, gauges and

instruments

Work-in-progress and finished goods    - Material cost plus appropriate proportion of

labour, manufacturing overheads.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

The net realisable value of work-in-progress is determined with reference to the selling prices of related finished goods. Raw materials held for use in production of finished goods are not written down below cost, except in cases where material prices have declined, and it is estimated that the cost of the finished goods will exceed its net realisable value. The comparison of cost and net realizable value is made on an item-by-item basis.

(i)    Non-current assets held for sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use. Such non-current assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Any expected loss is recognized immediately in the statement of profit and loss. The criteria for held for sale classification is regarded as met only when the assets is available for immediate sale in its present conditioivfTJly^Km 1 y to

terms that are usual and customary for sales of such assets, its sale is highly probable; and it will genuinely be sold. The Company treats sale of the asset to be highly probable when:

i.    The appropriate level of management is committed to a plan to sell the asset;

ii. An active programme to locate a buyer and complete the plan has been initiated (if applicable);

iii.    The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value;

iv.    The sale is expected to qualify for recognition as a completed sale within one year from the date of classification, and

v.    Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be

made or that the plan will be withdrawn.

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortised. Assets and liabilities classified as held for sale are presented separately as current items in the consolidated balance sheet.

(j)    Trade Receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business and reflects Company’s unconditional right to consideration (that is, payment is due only on the passage of time). Trade receivables are recognised initially at the transaction price as they do not contain significant financing components. The Company holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method, less loss allowance.

Transfer of Financial Assets

The Company transfers certain trade receivables under invoice discounting arrangements. These do not qualify for derecognition, due to existence of the recourse arrangement. Consequently the proceeds received from such transfers with recourse arrangements are recorded as loans from banks / financial institutions and classified under short-term borrowings.

(k)    Impairment of assets Impairment of financial assets

The Company recognizes loss allowances using the Expected Credit Loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition, in which case those financial assets are measured at lifetime ECL. The changes (incremental or reversal) in loss allowance computed using ECL model, are recognised as an impairment gain or loss in the standalone statement of profit and loss.

Impairment of non-financial assets

The Company’s non-financial assets are reviewed at each reporting date to determine if there is indication of any impairment. If any indication exists, the asset’s recoverable amount is estimated. Assets that do not generate independent cash flows are grouped together into cash generating units (CGU). An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Recoverable amount is determined:

i.    in case of an individual asset, at the higher of the net selling price and the value in use; and

ii.    in case of a ggfe generating unit (a group of assets that generates identified, independent cash flows), 'at.file higher of the cash generating unit’s net selling price and the value in,,fl£^077i>_v

(The amount of value in use is determined as the present value of estimated future cash flows from the continuing use of an asset and from its disposal at the end of its useful life. For this purpose, the discount rate (pre-tax) is determined based on the weighted average cost of capital of the respective company suitably adjusted for risks specified to the estimated cash flows of the asset). For this purpose, a cash generating unit is ascertained as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Impairment losses are recognised in the standalone statement of profit and loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortisation, if no impairment loss had been recognised.

(1) Trade and other payables

Trade and other payables represent liabilities for goods or services provided to the Company prior to the end of financial year which are unpaid.

(m) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest rate method. Borrowings are de-recognised from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

(n) Employee benefits

i)    Short-term employee benefits

Employee benefits payable within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus, etc. The undiscounted amount of shortterm employee benefits to be paid in exchange for employee services is recognised as an expense in standalone statement of profit and loss as the related service is rendered by employees.

ii)    Other long-term employee benefits:

Other long-term employee benefits are recognised as an expense in the standalone statement of profit and loss as and when they accrue. The Company determines the liability using the Projected Unit Credit Method, with actuarial valuations earned out as at the balance sheet date. Actuarial gains and losses in respect of such benefits are charged to the standalone statement of profit and loss.

iii)    Post employment obligations

a. Defined Contribution Plans:

The Company makes payments to defined contribution plans such as provident fund and employees’ state insurance. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The net interest cost is calculated by applying the discount rate to the balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the standalone statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the standalone statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit and loss as past service cost.

(o)    Provisions

A provision is recognised if, as a result of a past event, the Company has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

(p)    Revenue recognition

Revenue is recognised 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..

However, Goods and Services Tax (GST) is not received by the Company on its own account. Rather, it is tax collected on value added to the commodity or supplies made by the seller on behalf of the government. Accordingly, it is excluded from revenue.

Sale of goods

Revenue from sale of goods is recognized based on a 5-Step Methodology which is as follows:

Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligation in contract Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

Revenue from sale of goods is recognized at the point in time when control of the goods is transferred to the customer, generally on delivery of the goods and there are no unfulfilled obligations. Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, service level credits, performance bonuses, price concessions, staggered discount on early payments and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.

Sale of services

The Company recognizes revenue from sales of services over time, because the customer simultaneously receives and consumes the benefits provided by the Company. Revenue from services provided is recognised upon rendcringroMjhe sen ices, in accordance with the agreed terms with the customers where ultimate

collection ofit^ revenutvjt reasonably expected.

/x7    \

Other operating revenue

All export benefits under various policies of Government of India are recognised on accrual basis when no significant uncertainties as to the amount of consideration that would be derived and as to its ultimate collection exist.

Other income

Interest income is recognised on accrual basis using the effective interest method.

Contract assets

Contract assets is right to consideration in exchange for goods or services transferred to the customer and performance obligation satisfied. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional, in the nature of unbilled receivables. Upon completion of the attached condition and acceptance by the customer, the amounts recognised as contract assets is reclassified to trade receivables upon invoicing. A receivables represents the Company’s right to an amount of consideration that is unconditional. Contract assets are subject to impairment assessment.

Contract liabilities

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

(q)    Government grants

Government grants related to property, plant and equipment are included in the non-current liabilities as deferred government grant and are credited to Profit and loss on the basis of fulfillment of export obligation and presented within other income in accordance with the primary conditions associated with purchase of assets and related grants.

Export benefit entitlements are recognised in the standalone statement of profit and loss when the right to receive benefit is established in respect of the exports made and the realisation is reasonably certain.

(r)    Leases

A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’.

Classification of leases

The Company enters into leasing arrangements for various assets. The assessment of the lease is based on several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee’s option to extend/purchase etc.

Recognition and initial measurement

At lease commencement date, the Company recognises a right-of-use asset and a lease liability on the balance sheet. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Company, an estimate of any costs to dismantle and remove the asset at the end of the lease (if any), and any lease payments made in advance of the lease commencement date (net of any iccenti^es received).

Subsequent measurement

The Company depreciates the right-of-use assets on a straight-line basis from the lease 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 Company also assesses the right-of-use asset for impairment when such indicators exist.

At lease commencement date, the Company measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the Company’s incremental borrowing rate (IBR). Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed payments) and variable payments based on an index or rate. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is re-measured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments. When the lease liability is re-measured, the corresponding adjustment is reflected in the right-of-use asset.

The Company has elected to account for short-term leases using the practical expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in standalone statement of profit and loss on a straight-line basis over the lease term.

Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its IBR to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay for last longterm funds raised.

(s)    Income-tax

Tax expense recognised in the standalone statement of profit and loss comprises the sum of deferred tax and current tax not recognised in other comprehensive income or directly in equity.

Current tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with relevant tax regulations. Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity).

Deferred tax is recognised in respect of temporary differences between carrying amount of assets and liabilities for financial reporting purposes and corresponding amount used for taxation purposes. Deferred tax assets on unrealised tax loss are recognised to the extent that it is probable that the underlying tax loss will be utilised against future taxable income. This is assessed based on the Company’s forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any unused tax loss. 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 relating to items recognised outside standalone statement of profit and loss is recognised outside standalone statement of profit or loss (either in other comprehensive income or in equity).

(t)    Earnings per share

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year end, except where the results would be anti-dilutive.

(u)    Contingent liabilities and contingent assets

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed. Contingent assets are neither recognised nor disclosed in the standalone financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.

(v)    Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

(w) Borrowing cost

Borrowing costs directly attributable to acquisition, construction or erection of qualifying assets are capitalised. Capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended use are complete.

Other borrowing costs are recognised as an expense in the standalone statement of profit and loss in the year in which they are incurred.

(x)    Derivative financial instruments

The Company holds derivative financial instruments contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank. Apart from this derivatives are used as short term investment instruments as a treasury management function.

Derivatives are recognized initially at fair value and attributable transaction costs are recognized in net profit in the standalone statement of profit and loss. Subsequent to initial recognition, the derivatives are measured at fair value through standalone statement of profit and loss and the resulting exchange gains or losses are included in other income.

(y)    Standards issued but not yet effective

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On 31 March 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

a)    Ind AS 1 - Presentation of Financial Statements

This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after 1 April 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant to the standalone financial statements.

b)    Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

This amendment has introduced a definition of ‘accounting estimates’ and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after 1 April 2023. The Company has evaluated the aifiefidhigiit'and there is no impact on its standalone financial statements.

c) Ind AS 12 - Income Taxes

This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after 1 April 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statements.