Notes to Accounts of Avro India Ltd.

Mar 31, 2025

17. Provisions, Contingent Assets and Contingent Liabilities

a. Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

These provisions are reviewed at each reporting date and adjusted to reflect the current best
estimates.

b. Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation or present obligations that may
but probably will not, require an outflow of resources embodying economic benefits or the amount of
such obligation cannot be measured reliably. When there is possible obligation or a present obligation
in respect of which likelihood of outflow of resources embodying economic benefits is remote, no
provision or disclosure is made. Contingent liabilities have been disclosed as a part of notes to
account.

These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

18. Material prior period errors

Errors/omissions discovered in the current year relating to prior periods are treated as immaterial and
adjusted during the current year, if all such errors and omissions in aggregate does not exceed 0.50%
of total operating revenue as per last audited financial statement of the Company.

19. Recognition and Initial Measurement of Share Warrants:

On initial recognition, share warrants are classified as other equity instruments if they meet the criteria
specified under Ind AS 32 - Financial Instruments.

On initial recognition, the fair value of the warrant is determined in accordance with Ind AS 113 - Fair
Value Measurement using an appropriate valuation model (e.g., the Modified Black-Scholes Option
Pricing Model), based on observable market inputs including share price, exercise price, volatility,
risk-free interest rate, dividend yield, and the term of the warrant.

The amount received from the holder at the time of issue is credited to ''Money received against share
warrants'' under Other Equity. If the consideration received is higher than the fair value determined on
initial recognition, the entire amount received is still credited to equity unless a compound instrument
or embedded liability exists.

On Subsequent Measurement, Equity-classified share warrants are not remeasured at each reporting
date. No subsequent fair value changes are recognised in profit or loss or equity. The warrant balance
remains under ''Other Equity'' until:

• Conversion into equity shares, or

• Expiry or lapse of the warrant.

On Conversion of Share Warrants, the entire amount originally recognised under ''Money received
against share warrants and the additional consideration received on conversion is transferred to Share
Capital and Securities Premium, as applicable.

On expiry or Lapse of Share Warrants, the amount recognised under ''Money received against share
warrants'' is transferred to Retained Earnings within equity.

Note:

(a) Inventories are valued at lower of cost and net realizable value. Inventories includes Raw material, work-in-progress,
finished goods, store & spare, packing material.

(b) Raw material and components: Cost includes cost of purchases and other costs incurred in bringing the inventories
to their present location and condition. Cost is determined using first in first out (FIFO) basis.

(c ) Finished Goods and Work in-progress: Cost includes cost of direct material and labour and a proportion of manu¬
facturing overhead based on the normal operating capacity but excluding borrowing cost. Cost is determined on
weighted average basis.

(d) Store, spare parts, packing material etc.: Cost is determined on FIFO basis.

(e) Inter branch transfers are valued at works/ factory costs of the transferor unit/branch.

b) Rights, preferences and restrictions attached to Equity Shares:

The Company has only one class of equity shares having a par value of ^10 each. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in
the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity share¬
holders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in
proportion to their shareholding.

(1) Terms of borrowings:

"IDFC First Bank- Working capital facility and term loans from IDFC First Bank is secured on the basis of primary
security by way of hypothecation of entire current assets including stocks, book debts and movable fixed
assets of the Company and Collateral on property situated at A-7/36-39, south of GT Road Industrial Area,
Ghaziabad, U.P. and Plot No. C-19, UPSIDC, Masuri Gulawthi, Tehsil- Dhaulana, Distt- Hapur, U.P. Owned by
Company M/s. AVRO India Limited.

Further, the facilities have been secured by Unconditional and Irrevocable personal guarantee of Mr. Sushil
Kumar Aggarwal, Mr. Sahil Aggarwal and Mrs. Anita Aggarwal, Directors of the company.

The Company has availed a Cash Credit (CC) facility at an interest rate of 9% p.a. The tenure of the CC limit is
12 months, while the sub-limit facility carries a tenure of 3 months.

Interest on term loans is charged at External Benchmarking Rate (EBR) plus spread (currently 9% p.a.) on a
monthly reducing balance basis. The term loans are repayable in monthly instalments.

2. The Company has received a notice dated February 13, 2023 from GST Deputy Commissioner,
Ghaziabad under Section 61 of UPSGST Act, 2017 for discrepancy in GST returns during the financial year
2021-22. The Company is yet to file the reply to the notice.

3. The Company had received Show cause notice dated September 11, 2024 u/s 61 of UPSGST Act, 2017
for discrepancy in ITC availed in GSTR-3B and ITC declared in per GSTR-2B during the financial year

2023- 24. The Company is yet to file reply to the notice.

4. The Company had received Show cause notice dated October 08, 2024 u/s 61 of UPSGST Act, 2017 for
discrepancy in ITC availed in GSTR-3B and ITC declared in per GSTR-2B during the financial year

2024- 25. The Company had also received the notice dated March 19, 2025 from GST Deputy
Commissioner, Ghaziabad, Uttar Pradesh for intimating discrepancies in the return after scrutiny. The
Company is yet to file reply to the notice.

5. The good conveyance bearing No. UP86T3585 was intercepted at Aligarh on January 05, 2019. During
inspection, it was found that there is discrepancy in value of goods mentioned in Invoice as compared
to E-way bill. Further, it was found in e-way bill no. 411044228798 vehicle no is not the same with actual
vehicle no. Impugned Order in Appeal bearing No. ZD090820016636C dt. 05/01/2019 was passed by
Assistant Commissioner (Mobile-Squad) - 1 Aligarh imposing penalty for Rs 0.57 lacs under Section
129(3) UPSGT Act, 2017. The Company has paid penalty of Rs. 0.57 lacs on January 05, 2019. The Appeal
was filed in Ghaziabad Manually by Company, Ghaziabad Appeal Office has transferred the Appeal to
Aligarh Appeal Office, Request letter for transfer to appropriate Appeal Authority was made by the
Company on 29/10/2024. The Appeal is pending for hearing and disposal.

6. The goods conveyance bearing no. UP14CT6645 carrying goods was intercepted by GST official on
April 17, 2018. It was found that e-way invoice of Job work was not annexed and value of material was
not mentioned/described. The Company received a seizure order dated April 18, 2018 u/s 129(1) from
Deputy Commissioner, Uttar Pradesh Goods & Services Tax Act, 2017. Considering the value of materials
as Rs. 1.56 lacs, the Assistant Commissioner determined the tax of Rs. 0.28 lacs and imposed the penalty
of Rs. 0.28 lacs. The Company has paid the amount of Rs. 0.56 lacs on April 18, 2018. The Appeal was filed
in Ghaziabad manually by Company due to Covid-19. The Appeal is pending for Hearing and disposal.

7. The good conveyance bearing No. UP16JT8450 carrying rejected goods as sent by M/s Sethi Sales
was intercepted by Assistant Commissioner, G B Nagar, Uttar Pradesh on December 18, 2023 at Luharli
Toll and after inspection, an order of detention was issued in Form GST MOV-06 on December 18, 2023
and notice was served on the person in charge of the conveyance on December 18, 2023, wherein it was
found that Original Invoice No. and date is missing from the debit note raised by M/s Sethi Sales,
distributor to the Company. The Company had received a notice dated December 18, 2023 from
Assistant Commissioner, State GST, Noida in this regard. The Assistant Commissioner vide its order in
Form GST MOV-06 detained goods and conveyance till the issue of release order in Form GST MOV-05.
The Company has paid amount of Rs. 0.85 lacs as a penalty being twice the amount of CGST and SGST
mentioned in Debit note dated December 16, 2023 vide challan dated December 18, 2023.The Assistant
Commissioner, G B Nagar, Uttar Pradesh vide its release order in Form MOV-05 dated December 18,
2023 released goods and conveyance after payment of tax and penalty. The Appeal was filed in Noida
by Company and hearing was conducted on 06/11/2024. The appeal is pending for hearing and
disposal.

8. The Board of Directors, in its meeting held on August 28, 2024, approved a preferential issue of
6,48,330 equity shares of face value E10 each at an issue price of E127.25 per share, aggregating to E825
lacs, to Promoter Group and Non-Promoters for cash consideration. In addition, 5,30,451 share warrants
were issued to Non-Promoters at the same price, each warrant convertible into one equity share within
18 months from the date of allotment. An amount of E168.75 lacs, representing 25% of the warrant
consideration, was received, and the balance E506.25 lacs is pending. These equity shares and
warrants were allotted on October 19, 2024. The fair value of each warrant, determined in accordance
with Ind AS 113 - Fair Value Measurement, was E49.04 and has been classified under ’Other Equity’. No
asset has been recognized for the difference between fair value and consideration received. The
issuance of equity shares and warrants has been duly approved by BSE Ltd. and National Stock
Exchange of India Ltd. under applicable SEBI regulations, and trading in these shares commenced on
January 6,20n5.

Further, the Board of Directors, in its meeting held on December 27, 2024, approved a second
preferential issue of 25,75,320 equity shares at an issue price of E185.50 per share, aggregating to
E4777.22 lacs, to Non-Promoters and 3,23,450 share warrants to the Promoter Group at E185.50 per
warrant. The Company received E150.00 lacs, being 25% of the warrant consideration, and balance
E450.00 lacs is pending. The allotment of equity shares and warrants was made on February 11, 2025.
The fair value of each warrant was E56.84, as per Ind AS 113, and the amount received has been
recorded under ’Other Equity’ with no asset recognized for the fair value differential. Both BSE Ltd. and
National Stock Exchange of India Ltd. granted requisite approvals, and trading in these shares
commenced on March 27, 2025.

b) Carrying amount of inventories pledged as security for borrowings as at March 31, 2025 is E 1,283.06
Lacs (March 31, 2024: E 1,012.64 Lacs).

10. Provision for taxation is ascertained on the basis of assessable profits computed in accordance with
provisions of the Income Tax Act, 1961 multiplied by the rate specified under section 115BAA of the
Income Tax Act, 1961.

11. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as
at March 31, 2025.

13. Exceptional Item:

Compensation to Family of Deceased Employee

During the year, the Company paid a one-time ex-gratia amount of 516.53 Lacs to the spouse of a
deceased employee as a mark of support and goodwill.

This payment is not pursuant to any contractual, legal or statutory obligation and has been made
voluntarily. The amount has been recognized as an employee benefit expense and presented
separately as an exceptional item in the Statement of Profit and Loss.

14. Disclosure as per Ind AS 38 ''Intangible Assets''

Computer software (Payroll Software) amortised in the statement of Profit and Loss during the year is
Nil (March 31, 2024: E 0.05 lacs).

15. Capital Management

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

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

- maintain an appropriate capital structure of debt and equity.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the
cost of capital through prudent management in deployment of funds and sourcing by leveraging
opportunities in domestic and international financial markets so as to maintain investors, creditors &
markets'' confidence and to sustain future development of the business. The Board of Directors
monitors the return on capital, which the Company defines as returns from operating activities divided
by total shareholders'' equity deployed in operating activities.

16. Fair Value Measurements

Category wise classification of Financial Instruments

Financial assets and liabilities are measured at fair value in these financial statements and grouped
into three levels of a fair value hierarchy. The three levels are defined based on the observability of
significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.

Level 3: Unobservable inputs for asset or liability.

The management assessed that cash and cash equivalents, Bank balances other than Cash and Cash
equivalents, trade receivables, trade payables, current borrowings and other current financial liabilities
approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair values of the financial assets and financial liabilities is included at the amount at which the
instrument could be exchanged in a current transaction between willing parties. Methods and
assumptions used to estimate the fair values are consistent. The following methods and assumptions
were used to estimate the fair values:

i. The carrying amount of financial assets and financial liabilities measured at amortized cost in
these financial statements are at reasonable approximation of their fair values since the Company
does not anticipate that the carrying amounts would be significantly different from the values that
would eventually be received or settled.

ii. The carrying amounts of current financial assets and current financial liabilities approximate their
fair vale mainly due to their short-term nature.

During the financial year 2024-25 and 2023-24, there were no transfers between Level 1, Level 2 and
Level 3 fair value measurements.

17. Financial Risk Management

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

-Credit risk
-Liquidity risk
-Market risk

Risk Management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the
Company''s Risk Management framework. The Management reviews the Risk management policies
and systems on a regular basis to reflect changes in market conditions and the Company''s activities,
and the same is reported to the Board of Directors periodically. Further, the Company, in order to deal
with the future risks, has in place various methods/ processes which have been imbibed in its
organizational structure and proper internal controls are in place to keep a check on lapses, and the
same has been modified in accordance with the regular requirements.

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company''s
receivables from customers. Credit risk encompasses of both, the direct risk of default and the risk of
deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing
credit limits and creditworthiness of customers on a continuous basis to whom the credit has been
granted after obtaining necessary approvals for credit. Financial instruments that are subject to
concentrations of credit risk principally consist of trade receivables, investments, cash and cash
equivalents and other financial assets.

Liquidity Risk

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

Market Risk

Market risk is the risk of changes or fluctuations in market prices. Such changes in the values of financial
instruments may result from changes in the foreign currency exchange rates, interest rates, credit,
liquidity and other market changes. The Company''s investments are predominantly held in Mutual
funds.

18. Disclosure as per Ind AS 19 ''Employee Benefits''

The Company contributes to the following post-employment defined benefit plans in India.

Defined Contribution Plan

The Contributions to the Employee''s State Insurance Corporation and Provident Fund of employees are
made to government administered fund and there are no further obligations beyond making such
contributions.

Employer''s contribution to Provident Fund and Employees State Insurance recognized as an expense for
the year is E 7.16 Lacs (Previous year E 5.11 Lacs).

Defined Benefit Plan

The present value of defined benefit obligations is determined based on actuarial valuation measured
using the Projected Unit Credit Method. The assumptions and methodology used in compiling the
actuarial valuation report are consistent with the requirements of Indian Accounting Standard (Ind AS) 19.

All the above defined benefit plans expose the Company to general actuarial risks such as the amount
pertaining to the plan is not kept in separate bank account.

Based on the actuarial valuation obtained in this respect, the following table set out the status of Gratuity
and amounts recognised in the company''s financial statements as at balance sheet date:

22. Disclosure as per Ind AS 108 ''Operating Segments''

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Managing Director and CFO of the Company. The company has identified one
reportable segment based on the information reviewed by CODM.

23. Disclosure as per Ind AS 115, ''Revenue from contracts with customers''
i) Nature of goods and services

The revenue of the Company comprises of income from sale of plastic furniture, sale of Almirah and sale of granules LLDPE.

24. Disclosure as required by Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

a. Disclosures in compliance with the Accounting Standard on "Related Party Disclosures" made in note 2.28 (20).

b. Loans and advances in the nature of loans:

Holding Company: N.A.

Subsidiary Company: N.A.

Firm/ companies in which directors are interested: Nil

c. Investment by the loanee (as detailed above) in the share of Avro India Limited and its subsidiaries: N.A.

25. Disclosure as per Ind AS 116 ''Leases''

The Company has acquired land on leasehold basis. According to the U.P. State Industrial Development Authority (UPSIDA) letter
dated October 9, 2023, the leasehold land is classified as perpetual in nature and hence Ind AS 116 is not applied

26. Recent pronouncements:

There are no standards of accounting or any addendum thereto, prescribed by Ministry of Corporate Affairs under section 133 of
the Companies Act, 2013, which are issued and not effective as at March 31, 2025.

27. The Company has neither paid nor declared any dividend during the year.

28. Additional Regulatory Information

i. The Company does not have an immovable property whose title deeds are not held in the name of
the Company.

ii. The Company does not have any investment property as at 31st March, 2025.

iii. Loans or advances in the nature of loans have not been granted to any promoters, directors, KMP''s
and the related parties (as defined in Companies Act, 2013), either severally or jointly with any other
person.

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

v. The Company does not have any intangible assets as at March 31, 2025.

vi. The company has a capital-work-in progress in the books and relevant disclosures of the same is
provided at note no. 2.2.

vii. The Company does not have any intangible assets which is under development.

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

ix. The Company has taken working capital loans from IDFC bank on the basis of primary security by
way of hypothecation of entire current assets including stocks, book debts and movable fixed assets
of the Company and Collateral on property situated at A-7/36-39, south of GT Road Industrial Area,
Ghaziabad, U.P. and Plot No. C-19, UPSIDC, Masuri Gulawthi, Tehsil- Dhaulana, Distt- Hapur, U.P.

Owned by Company M/s. AVRO India Limited.

Further, the facilities have been secured by Unconditional and Irrevocable personal guarantee of Mr.
Sushil Kumar Aggarwal, Mr. Sahil Aggarwal and Mrs. Anita Aggarwal, Directors of the company.

The quarterly returns / statement of current assets filed by the company with banks are in
agreement with the books of accounts.

x. The Company is not declared as wilful defaulter by any bank or financial institution (as defined under
the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on
wilful defaulters issued by the Reserve Bank of India.

xi. The Company has not advanced or loaned or invested any fund to any entity (Intermediaries) with
the understanding that the Intermediary shall lend or invest in party identified by or on behalf of the
Company (Ultimate Beneficiaries). The Company has not received any fund from any party with the
understanding that the Company shall whether, directly or indirectly lend or invest in other entities
identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.

xii. The Company has not entered into any transaction with the companies struck off under Section 248
of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

xiii. The Company does not have any charges or satisfaction which is yet to be registered with ROC
beyond the statutory period.

xiv. The Company does not have any subsidiary company as prescribed in clause (87) of section 2 of the
Companies Act, 2013 as on 31st March, 2025. Accordingly, the provisions of the Companies (Restriction
on Number of Layers) Rules, 2017 are not applicable to the Company. However, subsequent to the
balance sheet date, the Company has incorporated a wholly owned subsidiary, M/s. AVRO Recycling
Limited, on 14th May, 2025.

xv. There is no scheme of arrangements which has been approved by the competent Authority in terms
of sections 230 to 237 of the Companies Act, 2013.

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

xvii. The Company does not have any transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961.

29. On the basis of the total income of the Company, the figures appearing in the financial statements have
been rounded off to nearest lacs.

30. Figures for the previous year have been re-grouped / rearranged/ reclassified wherever considered
necessary to confirm to current period''s classification. The impact of such reclassification/ regrouping is
not material to the financial statements.

As per our report of even date attached

For S A A R K AND CO For and on behalf of the Board of Directors of

Chartered Accountants Avro India Limited

FRN: 021758N

Sd/- Sd/- Sd/-

CA (Dr.) S. K. Lal Sushil Kumar Aggarwal Sahil Aggarwal

Partner Chairman & Whole Time Director Managing Director

M. No.: 509185 DIN: 00248707 DIN: 02515025

UDIN: 25509185BMOCXZ1627

Sd/- Sd/-

Ghanshyam Singh Sumit Bansal

Place: Ghaziabad Chief Financial Officer Company Secretary

Date: 27 May, 2025 PAN: CWCPS4843P PAN: CHKPB0878G

---

Mar 31, 2024

1. Contingent Liabilities and commitments (to the extent not provided for): a. Contingent liabilities		(f in Lakhs)
Particulars	As at March 31, 2024	As at March 31, 2023
Corporate Guarantees	-	-
Claim against the Company not acknowledged as debt a. Goods and Services Tax Matter b. Other Matter	28.22	12.83 0.25
Total	28.22	13.08
b. Commitments (net of advances)		(f in Lakhs)
Particulars	As at March 31, 2024	As at March 31, 2023
Property, plant and equipment	102.74	101.49
Intangible assets	-	-
Total	102.74	101.49

2. The Company had received a notice dated February 08, 2024 from Deputy Commissioner, Ghaziabad under Section 61 of UPSGST Act, 2017 for discrepancy in ITC claimed in GSTR-3B and ITC auto-populated in GSTR-2A during the financial year 2019-20. The Company has filed the reply dated February 27, 2024.

3. The Company received a notice dated 13.02.2023 from Deputy Commissioner, Ghaziabad under Section 61 of UPSGST Act, 2017 for discrepancy in the GST returns during the financial year 2021-22. The Company is in the process of filing the reply to the notice.

4. Disclosure as per Ind AS 1 ''Presentation of financial statements''

In the current financial year, in compliance of Amendments to Ind AS-1 made effective from 1st April 2023, the significant accounting policies of the Company''s financial statements have been replaced with ''Material'' accounting policies.

The Material accounting policies is part of these financial statements of the company at note no. 1. The amendments have had an impact on the company''s disclosure of accounting policies, but not on the measurement, recognition or presentation of any items in the company''s financial statements.

5. Disclosure as required by Ind AS 8 "Accounting Policies, changes in Accounting Estimates and Errors"

(i) Disclosure of Accounting policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the company''s disclosure of accounting policies, but not on the measurement, recognition or presentation of any items in the company''s financial statements.

(ii) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the company''s financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a single Transaction- Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

As a result of these amendments, the Company has to recognize a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify for offset as per the requirements of Paragraph 74 of Ind AS 12, there is no impact in the balance sheet.

b) Carrying amount of inventories pledged as security for borrowings as at March 31, 2024 is f 1012.64 Lakhs (March 31, 2023: f 816.73 Lakhs).

7. Provision for taxation is ascertained on the basis of assessable profits computed in accordance with provision of the Income Tax Act, 1961 multiplied by the rate specified under section 115BAA of the Income Tax Act, 1961.

8. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2024.

11. Disclosure as per Ind AS 38 ''Intangible Assets''

Computer software (Payroll Software) amortised in the statement of Profit and Loss during the year is f 0.05 lakhs (March 31, 2023: f 0.09 lakhs).

12. Capital Management

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

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

- maintain an appropriate capital structure of debt and equity.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international financial markets so as to maintain investors, creditors & markets'' confidence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Company defines as returns from operating activities divided by total shareholders'' equity deployed in operating activities.

13. Fair Value Measurements

Category wise classification of Financial Instruments

Financial assets and liabilities are measured at fair value in these financial statement and grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

The management assessed that cash and cash equivalents, trade receivables, trade payables, current borrowings and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair values of the financial assets and financial liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties. Methods and assumptions used to estimate the fair values are consistent. The following methods and assumptions were used to estimate the fair values:

i) The carrying amount of financial assets and financial liabilities measured at amortized cost in these financial statements are at reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

ii) The carrying amounts of current financial assets and current financial liabilities approximate their fair value mainly due to their short term nature.

During the financial year 2023-24 and 2022-23, there were no transfers between Level 1, Level 2 and Level 3 fair value measurements.

14. Financial Risk Management

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

-Credit risk -Liquidity risk -Market risk

Risk Management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s Risk Management framework. The Management reviews the Risk management policies and systems on a regular basis to reflect changes in market conditions and the Company''s activities, and the same is reported to the Board of Directors periodically. Further, the Company, in order to deal with the future risks, has in place various methods / processes which have been imbibed in its organizational structure and proper internal controls are in place to keep a check on lapses, and the same has been modified in accordance with the regular requirements.

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, cash and cash equivalents, other financial assets.

Liquidity Risk

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

Market Risk

Market risk is the risk of changes or fluctuations in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s investments are predominantly held in Mutual funds.

15. Disclosure as per Ind AS 19 ''Employee Benefits''

The Company contributes to the following post-employment defined benefit plans in India.

Defined Contribution Plan

The Contributions to the Employee''s State Insurance Corporation and Provident Fund of employees are made to government administered fund and there are no further obligations beyond making such contributions.

Employer''s contribution to Provident Fund and Employees State Insurance recognized as an expense for the year is f 5.11 Lakhs (Previous year f 5.33 Lakhs).

Defined Benefit Plan

The present value of defined benefit obligations is determined based on actuarial valuation measured using the Projected Unit Credit Method. The assumptions and methodology used in compiling the actuarial valuation report are consistent with the requirements of Indian Accounting Standard (Ind AS) 19.

All the above defined benefit plans expose the Company to general actuarial risks such as the amount pertaining to the plan is not kept in separate bank account.

Based on the actuarial valuation obtained in this respect, the following table set out the status of Gratuity and amounts recognised in the company''s financial statements as at balance sheet date:

a) Figures in bracket represent previous year amounts.

b) All the related party transactions have been entered on arms’ length basis.

c) No amount has been written off/provided for or written back during the year in respect of amount receivable from or payable to the related parties.

d) The company has taken collateral from company in which Directors are interested i.e. M/s. Bonita Furniture Pvt. Ltd. in the financial year 2022-23. However the collateral has been relinquished during the current year.

19. Disclosure as per Ind AS 108 ''Operating Segments''

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director and CFO of the Company. The company has identified one reportable segment based on the information reviewed by CODM.

20. Disclosure as per Ind AS 115, ''Revenue from contracts with customers''

l) Nature of goods and services

The revenue of the Company comprises of income from sale of plastic furniture, sale of Almirah and sale of granules LLDPE.

21. Disclosure as required by Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

a) Disclosures in compliance with the Accounting Standard on "Related Party Disclosures" made in note 2.27 (17).

b) Loans and advances in the nature of loans:

Holding Company: N.A.

Subsidiary Company: N.A.

Firm/ companies in which directors are interested: Nil

c) Investment by the loanee (as detailed above) in the share of Avro India Limited and its subsidiaries: N.A.

22. Disclosure as per Ind AS 116 ''Leases''

The Company has acquired land on leasehold basis. According to the U.P. State Industrial Development Authority (UPSIDA) letter dated October 9, 2023, the leasehold land is classified as perpetual in nature and hence Ind AS 116 is not applied.

23. Recent pronouncements:

There are no standards of accounting or any addendum thereto, prescribed by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013, which are issued and not effective as at March 31, 2024.

24. The Company has neither paid nor declared any dividend during the year.

There are no standards of accounting or any addendum thereto, prescribed by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013, which are issued and not effective as at March 31, 2024.

25. Additional Regulatory Information

There are no standards of accounting or any addendum thereto, prescribed by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013, which are issued and not effective as at March 31, 2024.

i. The Company does not have an immovable property whose title deeds are not held in the name of the Company.

ii. The Company does not have any investment property as at 31st March, 2024.

iii. Loans or advances in the nature of loans have not been granted to any promoters, directors, KMP’s and the related parties (as defined in Companies Act, 2013), either severally or jointly with any other person.

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

v. During the year Company has not revalued any of its Intangible assets.

vi. The company has a capital-work-in progress in the books and relevant disclosures of the same is provided at note no. 2.2.

vii. The Company does not have any intangible assets which is under development.

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

ix. The Company has taken working capital loans from IDFC bank on the basis of primary security by way of

hypothecation of current assets including stocks, book debts and movable fixed assets of the Company and Collateral on property situated at A-7/36-39, south of GT Road Industrial Area, Ghaziabad, U.P. and Plot No. C-19, UPSIDC, Masuri Gulawthi, Tehsil- Dhaulana, Distt- Hapur, U.P. Owned by Company M/s. AVRO India Limited. .

Further, the facilities have been secured by Unconditional and Irrevocable personal guarantee of Mr. Sushil Kumar Aggarwal, Mr. Sahil Aggarwal and Mrs. Anita Aggarwal, Directors of the company.

The quarterly returns / statement of current assets filed by the company with banks are in agreement with the books of accounts.

x. The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

xi. The Company has not advanced or loaned or invested any fund to any entity (Intermediaries) with the understanding that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party with the understanding that the Company shall whether, directly or indirectly lend or invest in other entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xii. The Company has not entered into any transaction with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

xiii. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

xiv. The Company does not have any subsidiary company as prescribed in clause (87) of section 2 of the Companies Act, 2013 therefore Companies (Restriction on number of layers) Rules, 2017 are not applicable.

xv. There are no scheme of arrangements which has been approved by the competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

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

xvii. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

xviii. Corporate Social Responsibility (CSR): CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is E 8.00 Lakhs (Previous Year nil).

26. On the basis of the total income of the Company, the figures appearing in the financial statements have been rounded off to nearest lakhs.

27. Previous year figures have been re-group / reclassified wherever necessary.

---

Mar 31, 2023

17. Provisions, Contingent Assets and Contingent Liabilities:

A provision is recognised when the company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows specific to the liability. The unwinding of the discount is recognised as finance cost.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events, but their existence is confirmed by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Contingent Assets are not recognised till the realization of the income is virtually certain. However, the same are disclosed in the financial statements where an inflow of economic benefits is probable.

18. Earnings per share

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average

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

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

19. Operating segments

In accordance with Ind AS 108-‘Operating segments'', the operating segments used to present segment information are identified on the basis of internal reports used by the Company''s management to allocate resources to the segments and assess their

performance. The Board of Directors is collectively the Company''s ‘Chief Operating Decision Maker'' or ‘CODM'' within the meaning of Ind AS 108. The indicators used for internal reporting purposes may evolve in connection with performance assessment measures put in place.

20. Material prior period errors

Material prior period errors are corrected retrospectively by restating the comparative amounts for the prior periods presented in which the error occurred. If the error occurred before the earliest period presented, the opening balances of assets, liabilities and equity for the earliest period presented, are restated.

21. Statement of cash flows

Statement of cash flows is prepared in accordance with the indirect method prescribed in Ind AS 7-‘Statement of cash flows''.

1. Working capital facility and term loans from IDFC First Bank is secured on the basis of primary security by way of hypothecation of current assets including stocks, book debts and movable fixed assets of the Company and Collateral on property situated at A-7/36-39, south of GT Road Industrial Area, Ghaziabad, U.P. and Plot No. C-19, UPSIDC, Masuri Gulawthi, Tehsil- Dhaulana, Distt- Hapur, U.P. Owned by Company M/s. AVRO India Limited. Further, Collateral on property situated at Plot No. 28-32, UPSIDC, Masuri Gulawthi Road, Tehsil- Dhaulana, Distt- Hapur, U.P and Plot No. 17, 18, 25, UPSIDC, Masuri Gulawthi Road, Tehsil- Dhaulana, Distt- Hapur, U.P owned by M/s. Bonita Furniture Private Limited.

Further, the facilities have been secured by Unconditional and Irrevocable personal guarantee of Mr. Sushil Kumar Aggarwal, Mr. Sahil Aggarwal and Mrs. Anita Aggarwal, Directors of the company and Corporate Guarantee given by M/s. Bonita Furniture Private Limited.

2. Two (2) Motor vehicles Mercedes Benz and Innova Crysta are hypothecated with the Axis Bank Limited and Toyota Financial Services India Limited respectively. Details of loans are given in note 2.12.

3. Previous figures have been regrouped/reclssified and recasted wherever applicable.

2. The company had applied for Migration of listing of its Equity shares from Emerge platform of National Stock Exchange of India Limited (NSE Ltd.) to main board of NSE Ltd. and main board platform of BSE Ltd. With effect from April 7, 2022.

3. The Prayag Polytech Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Company i.e. Avro India Limited (formerly known as Avon Moldplast Limited) on August 08, 2019 with Hon''ble National Company Law Tribunal, Allahabad Bench, Prayagraj (“NCLT”) for a claim of ''

9.21 lakhs along with interest @ 24% p.a. as on February 28, 2019 amounting to '' 12.65 lakhs against the supply of raw material in financial year 2017-18. However, the Company made a counter claim of '' 17.64 lakhs due to supply of inferior quality of raw materials which was authenticated by authorized representative of M/s Prayag Polytech Private Limited vide letter dated August 11, 2017. The Hon''ble Bench of NCLT, Allahabad vide its order dated 13^th June, 2022 admitted the application CP (IB) No. 312/ALD/2019 under Section 9 of the Insolvency and Bankruptcy Code, 2016 and initiated the Corporate Insolvency Resolution Process against the Company and appointed Mr. Parag Singhal as Interim Resolution Professional. Consequent on settlement in full and final vide settlement agreement dated 15^th June, 2022, Hon''ble National Company Law Appellate Tribunal, Delhi (“NCLAT”) vide its order dated 22^th June, 2022 granted Interim Stay against the implementation of impugned order of Hon''ble NCLT. The Hon''ble NCLT, Allahabad Bench, Prayagraj vide its order dated 06^th July, 2022 disposed the application CP (IB) No. 312/ ALD/2019 in response to application IA No. 181/2022 filed by Interim Resolution Professional for withdrawn of CIRP proceedings against the Company. The application stood dismissed as withdrawn and Interim Resolution Professional was discharged and Company was released from rigours of law and allowed to function independently through Board of Directors. As on March 31, 2023, no proceeding is pending under the Insolvency and Bankruptcy Code, 2016.

4. a) The Company has a system of obtaining periodic confirmation of balances from banks and other parties. There are no unconfirmed balances in respect of bank accounts and borrowings from banks & financial institutions. In addition, reconciliation with customers is generally done on quarterly basis. So far as trade/other payables and loans and advances are concerned, the balance confirmation letters/emails with the negative assertion as referred in the Standard on Auditing (SA) 505 (Revised) ‘External Confirmations'', were sent to the parties. Some of such balances are subject to confirmation/reconciliation. Adjustments, if any will be accounted for on confirmation/reconciliation of the same, which in the opinion of the management will not have a material impact.

b) In the opinion of the management, the value of assets, other than property, plant and equipment, on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

5. Company has filed a case against National Insurance Company Limited on January 17, 2009 seeking recovery of an amount with damages. The Company had suffered financial loss due to a fire and insurance company paid the some amount. However, the insurance company did not pay the complete amount and no explanation was offered for unreasonable deductions, therefore present complaint was filed before the consumer court. The last date of hearing was 03.05.2023. The order has been reserved in the matter.

6. Kumar Sales Corporation who was a distributor did not pay the outstanding dues of '' 2.56 lakhs against the supplies of plastic furniture. The legal notice dated June 14, 2019 was sent to the party. Despite the receipt of legal notice, Miss Meenu Aggarwal, proprietor of Kumar Sales Corporation failed to make payment of outstanding dues. Thereafter, the Company initiated a pre-institution mediation proceedings on 17.03.2020 before Uttar Pradesh State Legal Services Authority, District Court Complex, Ghaziabad. On 03.03.2021, the said mediation proceedings failed as she failed to

participate in the said proceedings. The Company has filed suitable application bearing no. UDYAM-UP-29-0017300/S/00002 before MSME Council on 22.07.2021. The Hard copy of application along with annexures is yet to be filed.

7. Sri Sai Furnitures who was a distributor did not pay the outstanding dues of '' 0.70 lakhs against the supplies of plastic furniture. The legal notice dated 03.05.2019 was sent to Shri Penuguri Venkata Lakshmi, proprietor of M/s Sri Sai Furnitures. Thereafter, the Company initiated a pre-institution mediation proceedings on 17.03.2020 before Uttar Pradesh State Legal Services Authority, District Court Complex, Ghaziabad. On 03.03.2021, the said mediation proceedings failed as it failed to participate in the said proceedings. The Company has filed suitable application bearing no. UDYAM-UP-29-0017300/S/00001 before MSME Council on 22.07.2021. The Hard copy of application along with annexures is yet to be filed.

8. The Company took depot in Patna and deposited security of '' 2.25 lakhs to Shri Virju Lal & ors. But Company terminated the rent agreement on 27.02.2019 after giving one month notice. The security of '' 2.25 lakhs was not refunded to the Company due to which, the company issued legal notice on 7^th March 2019 for the recovery of the said amount. Company has filed criminal case against party on 14.10.2020. The matter is pending before the same authority.

9. Mrs. Anita Aggarwal, Director and the Company through its Power of Attorney filed the suit for permanent Injunction against M/s Radha Plastic Industries & its Proprietor Mr. Raj Kumar for infringement of design 286049 and consequential reliefs under Section 25 of the Design Act, 2000 in district court of Ludhiana for amount of '' 5.00 lakhs. On 17.09.2021, the Court granted temporary Injunction against the infringement of design till the next date of hearing. The reply to the application under Order 39 Rule 4 CPC for setting aside the interim order dated 17.09.2021 was not filed. The next date of hearing is 11.05.2023.

10. The Director of the Company through its Power of Attorney filed the application under Order 39 rule 1 & 2 read with Section 151 of the Code of Civil Procedure, 1907 for temporary Injunction against M/s Century Mouldings Pvt. Ltd and Moonstar Furnitures with respect to infringement of Design no. 286049 in district Court of Surat on January 21, 2020. The damage of '' 25.00 lakhs was claimed. On 26.03.2021, the matter was transferred to Hon''ble High Court of Gujarat and is pending for hearing.

11. The Company sent a legal notice dated 14.03.2021 to M/s Maa Katyayani and its proprietor Mr. Manoj Garg for dishonour of cheque of '' 10.14 lakhs. The Complaint was filed against M/s MAA Katyayani and its proprietor on 26.06.2021 under Section 138 read with Section 141 & 142 of Negotiable Instrument Act, 1881 against dishonour of cheque no. 487805 of '' 10.14 lakhs. The Summons were submitted in court on 24.09.2021. Both parties signed the mediation agreement. But, the accused violated the provisions of mediation agreement. The next date of hearing is 03.06.2023.

12. M/s Shreeji Enterprises did not pay the outstanding dues. Therefore, the Company sent a legal notice dated September 20, 2022 to M/s Shreeji Enterprises, its proprietor and Authorized Signatory for dishonour of cheque of '' 7.72 lakhs against supplies of Plastic Furniture. Thereafter, the Company filed a complaint against Shreeji Enterprises & others under Section 138 of Negotiable Instrument Act, 1881 and Section 406 & 420 of Indian Penal Code, 1860 for dishonour of cheque of '' 7.72 lakhs on

11.03.2022. Next date of hearing is 12.09.2023.

13. The Company sent a legal notice dated March 03, 2022 to Mr. Suresh Singh, proprietor of M/s Jai Bajrang Distributor against dishonour of cheque of '' 5.35 lakhs. Thereafter, Company sent him various reminders for payment of outstanding dues but Mr. Suresh Singh did not pay the outstanding dues. The Company has filed a Criminal Complaint dated January 23, 2023 against Suresh Singh, proprietor of M/s Jai Bajrang Distributors for committing cheating, criminal breach of trust, criminal intimidation etc. at Vijay Nagar Police Station and S.S.P, Raj Nagar. Thereafter, the Company filed an application on 02.03.2023 before District Court, Ghaziabad under Section 156(3) of Cr. P.C. for issuing directions to S.H.O/ IO to register FIR and investigate the matter.

14. The proprietor of M/s Santosh Traders did not pay the outstanding amount of '' 9.30 lakhs. The party issued a cheque no. 000006 of '' 9.30 lakhs and the same was dishonoured with reasons “Funds Insufficient”. Therefore, the Company sent a Legal Notice dated 23.12.2022 in respect of dishonour of cheque, but the same was not served. Party did not pay the outstanding dues. Thereafter, the Company filed a Complaint against Sangeeta Giri alias Sangeeta Puri, proprietor of M/s Santosh Traders before Chief Metropolitan Magistrate, Patiala House Court, Delhi under Section 138 of Negotiable Instrument Act on February 22, 2023. The Complainant is directed to enter appearance and submit original documents two days before next date of hearing. The next date of hearing is September 04, 2023.

15. The proprietor of M/s Kasaudhan Furniture issued a cheque dated January 24, 2023 of '' 2.47 lakhs which was dishonoured with reasons “Funds Insufficient”. Therefore, the Company sent a legal notice dated February 04, 2023 in respect of dishonour of cheque.

But Mr. Shubham Kasaudhan, proprietor of M/s Kasaudhan Furniture did not pay the outstanding dues within fifteen days of receipt of notice. Therefore, the Company had filed a complaint against Shubham Kasaudhan, proprietor of M/s Kasaudhan Furniture before Chief Metropolitan Magistrate, Patiala House Court, Delhi under Section 138 of Negotiable Instrument Act on 16.03.2023. The Complainant is directed to submit the complaint and documents to court and appear on next date of hearing. The next date of hearing is 13.07.2023.

16. Ms. Pooja Jindal, proprietor of M/s 3A Marketing Group did not pay the outstanding dues of '' 4.18 lakhs. The Company sent her a legal notice dated December 20, 2022 for non-payment of said outstanding dues. But she failed to pay the outstanding dues. Thereafter, the Company filed premeditation application before District Legal Services Authority, Ghaziabad on 24.03.2023.

17. The Company filed a Criminal Complaint against Mr. Subhash Chandra Jangir, proprietor of Durga Enterprises on August 14, 2019 for various offences punishable under Section 500 & 506 of Indian Penal Code, 1860. The matter is still pending before District Court, Ghaziabad. The date in the matter was 14.07.2022 and the same was fixed for pre summoning evidence.

18. Company has received Notices by Senior Inspector,

Legal Metrology (Weight & Measure), Agra for violation of Section 18(1) and 36(1) of the Legal Metrology Act 2009 and Rule 6(1)(a)(b) & Rule 6 (C)(d)(e) & Rule 6(2) of Legal Metrology (Packaged Commodities Rules) 2011 or

15.09.2022.

19. Company has received Notices by Senior Inspector,

Legal Metrology (Weight & Measure), Khatauli Distt. Muzaffarnagar, Uttar Pradesh for violation of Section 18(1) and 36(1) of the Legal Metrology Act 2009 and Rule 6 of Legal Metrology (Packaged Commodities Rules) 2011 on 04.01.2023.

20. The Company received a notice dated 04.06.2022 from Deputy Commissioner, Uttar Pradesh Commercial Tax Department under Section 61 of UP GST Act, 2017 for discrepancies with respect to ITC Claimed in GSTR-3B and ITC auto-populated in GSTR-2A during financial year 2017-18. The Company paid the demand of '' 2.62 lakhs on 06.08.2022. The Company filed a reply dated 07.07.2022 to the notice and final settlement of '' 2.62 lakhs was made. The Deputy Commissioner acknowledged the acceptance of reply vide its order dated 20.08.2022 and confirmed that no further action is required to be taken.

21. The Company received a notice dated 02.01.2023 from Deputy Commissioner, Ghaziabad under Section 61 of UPSGST Act, 2017 for discrepancy in ITC Claimed in GSTR-3B and ITC auto-populated in GSTR-2A during the financial year 2018-19. The Company has filed the reply dated 04.03.2023 to the notice. The matter is pending for assessment.

22. The Company received a notice dated 03.01.2023 from Deputy Commissioner, Ghaziabad under Section 61 of UPSGST Act, 2017 for discrepancy in ITC Claimed in GSTR-3B and ITC auto-populated in GSTR-2A during the financial year 2019-20. The Company is in the process of filing the reply to the notice.

23. The Company received a notice dated 13.02.2023 from Deputy Commissioner, Ghaziabad under Section 61 of UPSGST Act, 2017 for discrepancy in the GST returns during the financial year 2021-22. The Company is in the process of filing the reply to the notice.

24. The Company has received a notice for demand of '' 0.07 from department of Income Tax for financial year 2021-22. The amount of '' 0.07 lakhs paid on

10.04.2023.

25. The Company has sent legal notice to the various parties for non-payment of outstanding dues.

26. Leasehold Land from UPSIDA was registered under the earlier name of the company “Avon Moldplast Private Limited”. During the financial year 2019-20, the company applied with UPSIDA for the change in name to “Avro India Limited” and received confirmation letter from UPSIDA subject to fulfilment of conditions. However, the same is under process for updation on UPSIDC Website. As per management opinion, this lease is perpetual in nature.

27. Disclosure as per Ind AS 1 ‘Presentation of financial statements''

a) Changes in significant accounting policies:

There is no change in accounting policies during the year.

b) Reclassifications and comparative figures

There has been no reclassification in the comparative period''s financial statements and hence no change in the cash flow from operating, investing and financing activities on account of theses reclassification.

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.

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 Company has evaluated the above amendments and the impact of the same on the financial statements is not material.

30. Provision for taxation is ascertained on the basis of assessable profits computed in accordance with provision of the Income Tax Act, 1961 multiplied by the rate specified under section 115BAA of the Income Tax Act, 1961.

29. Disclosure as per Ind AS 8 - ‘Accounting Policies, Changes in Accounting Estimates and Errors''

Recent accounting pronouncements Standards / amendments issued but not yet effective:

The Ministry of Corporate Affairs ,vide notification dated 31 March 2023, has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 which amends certain Indian Accounting Standards which are effective 1 April 2023. Below is a summary of such amendments:

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.

33. Capital Management

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

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

- maintain an appropriate capital structure of debt and equity.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international financial markets so as to maintain investors, creditors & markets'' confidence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Company defines as returns from operating activities divided by total shareholders'' equity deployed in operating activities.

b) Fair Value Hierarchy

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.

Level 2: Inputs other than quoted price included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparty.

The fair value of trade receivables, trade payables, cash and cash equivalents, current borrowings and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short - term nature.

35. Financial Risk Management

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

- Credit risk

- Liquidity risk

- Market risk

Risk Management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s Risk Management framework. The Management reviews the Risk management policies

and systems on a regular basis to reflect changes in market conditions and the Company''s activities, and the same is reported to the Board of Directors periodically. Further, the Company, in order to deal with the future risks, has in place various methods / processes which have been imbibed in its organizational structure and proper internal controls are in place to keep a check on lapses, and the same are been modified in accordance with the regular requirements.

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, cash and cash equivalents, other financial assets.

Liquidity Risk

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

Market Risk

Market risk is the risk of changes or fluctuations in market prices. Such changes in the values of financial instruments may result from changes in the foreign

currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s investments are predominantly held in Mutual funds.

36. Disclosure as per Ind AS 19 ‘Employee Benefits’

The Company contributes to the following postemployment defined benefit plans in India.

Defined Contribution Plan

The Contributions to the Employee''s State Insurance Corporation and Provident Fund of employees are made to government administered fund and there are no further obligations beyond making such contributions.

Employer''s contribution to Provident Fund and Employees State Insurance recognized as an expense for the year is T 5.33 Lakhs (Previous year T 5.73 Lakhs).

Defined Benefit Plan

The present value of defined benefit obligations is determined based on actuarial valuation measured using the Projected Unit Credit Method. The assumptions and methodology used in compiling the actuarial valuation report are consistent with the requirements of Indian Accounting Standard (Ind AS) 19.

Based on the actuarial valuation obtained in this respect, the following table set out the status of Gratuity and amounts recognised in the company''s financial statements as at balance sheet date:

40. Disclosure as per Ind AS 108 ‘Operating Segments''

Operating segments are reported in a manner consisten with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director and CFO of the Company. The company has identified one reportable segment based on the information reviewed by CODM.

41. Disclosure as per Ind AS 115, ‘Revenue from contracts with customers''

i) Nature of goods and services

The revenue of the Company comprises of income from sale of plastic furniture, sale of Almirah and sale of granules.

42. Disclosure as required by Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

a. Disclosures in compliance with the Accounting Standard on “Related Party Disclosures” made in note 2.26 (38).

b. Loans and advances in the nature of loans:

ii. Loans or advances in the nature of loans have not been granted to any promoters, directors, KMP''s and the related parties (as defined in Companies Act, 2013), either severally or jointly with any other person.

iii. During the year Company has not revalued any of its Property, Plant and Equipment.

iv. During the year Company has not revalued any of its Intangible assets.

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

vi. The Company has taken working capital loans from IDFC bank on the basis of primary security by way of hypothecation of current assets including stocks, book debts and movable fixed assets of the Company and Collateral on property

situated at A-7/36-39, south of GT Road Industrial Area, Ghaziabad, U.P. and Plot No. C-19, UPSIDC, Masuri Gulawthi, Tehsil- Dhaulana, Distt- Hapur, U.P. Owned by Company M/s. AVRO India Limited. Further, Collateral on property situated at Plot No. 28-32, UPSIDC, Masuri Gulawthi Road, Tehsil- Dhaulana, Distt- Hapur, U.P and Plot No. 17, 18, 25, UPSIDC, Masuri Gulawthi Road, Tehsil- Dhaulana, Distt- Hapur, U.P owned by M/s.

Bonita Furniture Private Limited.

Further, the facilities have been secured by Unconditional and Irrevocable personal guarantee of Mr. Sushil Kumar Aggarwal, Mr. Sahil Aggarwal and Mrs. Anita Aggarwal, Directors of the company and Corporate Guarantee given by M/s. Bonita Furniture Private Limited.

vii. The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

viii. The Company has not entered into any transaction with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

ix. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

x. The Company does not have any subsidiaries,

associates and joint ventures and hence has not made any investment in subsidiaries, associates and joint ventures.

xi. The Company has not advanced or loaned or invested any fund to any entity (Intermediaries) with the understanding that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party with the understanding that the Company shall whether, directly or indirectly lend or invest in other entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xii. The quarterly returns / statement of current assets filed by the company with banks are in agreement with the books of accounts.

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

xiv. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

45. On the basis of the total income of the Company, the figures appearing in the financial statements have been rounded off to nearest lakhs.

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

For S A A R K AND CO Avro India Limited

Chartered Accountants

FRN: 021758N Sd/- Sd/-

Sushil Kumar Aggarwal Sahil Aggarwal

Sd/- Chairman & Whole Time Director Managing Director

CA (Dr.) S. K. Lal DIN: 00248707 DIN: 02515025

Partner

M. No.: 509185 Sd/- Sd/-

UDIN: 23509185BGYOJS7233 Ghanshyam Singh Sumit Bansal

Chief Financial Officer Company Secretary

Place: Ghaziabad PAN: CWCPS4843P PAN: CHKPB0878G

Date: May 23, 2023