Notes to Accounts of AXISCADES Technologies Ltd.

Mar 31, 2025

m) Provisions, Contingent Liabilities and Contingent
Assets

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. When the Company expects some or all
of a provision to be reimbursed, for example, under an
insurance contract, the reimbursement is recognised as
a separate asset, but only when the reimbursement is
virtually certain. The expense relating to a provision is
presented in the statement of profit and loss net of any
reimbursement.

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

Decommissioning liability

The Company records a provision for decommissioning
costs associated with the premises taken on lease.
Decommissioning costs are provided at the present value
of expected costs to settle the obligation using estimated
cash flows and are recognised as part of the cost of
the particular asset. The cash flows are discounted at a
current pre-tax rate that reflects the risks specific to the
decommissioning liability. The unwinding of the discount
is expensed as incurred and recognised in the statement
of profit and loss as a finance cost. The estimated future
costs of decommissio B45ning are reviewed annually
and adjusted as appropriate. Changes in the estimated
future costs or in the discount rate applied are added to or
deducted from the cost of the asset.

Contingent liabilities

Contingent liability is:

(a) a possible obligation arising 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 or

(b) a present obligation that arises from past events but
is not recognized because;

- it is not probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation, or

- the amount of the obligation cannot be
measured with sufficient reliability.

The Company does not recognize a contingent liability
but discloses its existence and other required disclosures
in notes to the financial statements, unless the possibility
of any outflow in settlement is remote.

Provisions, contingent liabilities and contingent assets are
reviewed at each Balance Sheet date.

n) 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.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, and
subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair value
through profit or loss.

The classification of financial assets at initial recognition
depends on the financial asset''s contractual cash flow
characteristics and the Company''s business model for
managing them. With the exception of trade receivables
that do not contain a significant financing component or
for which the Company has applied the practical expedient,
the Company initially measures a financial asset at its fair
value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs. Trade receivables
that do not contain a significant financing component or
for which the Company has applied the practical expedient
are measured at the transaction price determined under
Ind AS 115. Refer to the accounting policies in section (g)
Revenue from contracts with customers.

In order for a financial asset to be classified and measured
at amortised cost or fair value through OCI, it needs to give
rise to cash flows that are ''solely payments of principal and
interest (SPPI)'' on the principal amount outstanding. This
assessment is referred to as the SPPI test and is performed
at an instrument level. Financial assets with cash flows
that are not SPPI are classified and measured at fair value
through profit or loss, irrespective of the business model.

The Company''s business model for managing financial
assets refers to how it manages its financial assets in order
to generate cash flows. The business model determines
whether cash flows will result from collecting contractual
cash flows, selling the financial assets, or both. Financial
assets classified and measured at amortised cost are
held within a business model with the objective to hold
financial assets in order to collect contractual cash flows
while financial assets classified and measured at fair value
through OCI are held within a business model with the
objective of both holding to collect contractual cash flows
and selling.

Subsequent measurement

For purposes of subsequent measurement, financial assets
are classified in four categories:

i. Financial assets at amortised cost (debt instruments)

ii. Financial assets at fair value through other
comprehensive income (FVTOCI) with recycling of
cumulative gains and losses (debt instruments)

iii. Financial assets designated at fair value through OCI
with no recycling of cumulative gains and losses
upon derecognition (equity instruments)

iv Financial assets at fair value through profit or loss

i. Financial assets at amortised cost (debt instruments)

A ''financial asset'' is measured at the amortised cost if

both the following conditions are met:

a) The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows, and

b) Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount
outstanding.

This category is the most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method and are subject to
impairment as per the accounting policy applicable
to ''Impairment of financial assets.'' Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is
included in other income in the profit or loss. The
losses arising from impairment are recognised in
the profit or loss. The Company''s financial assets
at amortised cost includes trade receivables, and
loan to an associate and loan to a director included
under other non-current financial assets. For more
information on financial assets, refer note 6 and for
receivables, refer note 10.

ii. Financial assets at fair value through other
comprehensive income (FVTOCI) with recycling of
cumulative gains and losses (debt instruments)

A ''financial asset'' is classified as at the FVTOCI if
both of the following criteria are met:

a) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets, and

b) The asset''s contractual cash flows represent
SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at each

reporting date at fair value. For debt instruments,
at fair value through OCI, interest income, foreign
exchange revaluation and impairment losses or
reversals are recognised in the profit or loss and
computed in the same manner as for financial assets
measured at amortised cost. The remaining fair value
changes are recognised in OCI. Upon derecognition,
the cumulative fair value changes recognised in OCI
is reclassified from the equity to profit or loss.

The Company''s debt instruments at fair value through
OCI includes investments in quoted debt instruments
included under other non-current financial assets.

iii. Financial assets designated at fair value through OCI
with no recycling of cumulative gains and losses
upon derecognition (equity instruments)

Upon initial recognition, the Company can elect to
classify irrevocably its equity investments as equity
instruments designated at fair value through OCI
when they meet the definition of equity under Ind
AS 32 Financial Instruments: Presentation for the
issuer and are not held for trading. The classification
is determined on an instrument-by-instrument basis.
Equity investment which are held for trading and
contingent consideration recognised by an acquirer
in a business combination to which Ind AS 103
applies are classified as at FVTPL.

Gains and losses on these financial assets are never
recycled to profit or loss. Dividends are recognised as
other income in the statement of profit and loss when
the right of payment has been established, except
when the Company benefits from such proceeds as
a recovery of part of the cost of the financial asset,
in which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI are
not subject to impairment assessment.

iv. Financial assets at fair value through profit or loss

Financial assets in this category are those that are
held for trading and have been either designated
by management upon initial recognition or are
mandatorily required to be measured at fair value
under Ind AS 109 i.e. they do not meet the criteria
for classification as measured at amortised cost or
FVOCI. Management only designates an instrument
at FVTPL upon initial recognition, if the designation
eliminates, or significantly reduces, the inconsistent
treatment that would otherwise arise from measuring
the assets or liabilities or recognising gains or losses
on them on a different basis. Such designation is
determined on an instrument-by-instrument basis.
For the Company, this category includes derivative

instruments and listed equity investments which
the Company had not irrevocably elected to classify
at fair value through OCI. The Company has not
designated any financial assets at FVTPL.

Financial assets at fair value through profit or loss
are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of
profit and loss.

Interest earned on instruments designated at FVTPL
is accrued in interest income, using the EIR, taking
into account any discount/ premium and qualifying
transaction costs being an integral part of instrument.
Interest earned on assets mandatorily required to be
measured at FVTPL is recorded using the contractual
interest rate. Dividend income on listed equity
investments are recognised in the statement of profit
and loss as other income when the right of payment
has been established.

De-recognition of financial assets

A financial asset (or, where applicable, a part of a
financial asset) is primarily derecognised (i.e. removed
from the Company''s balance sheet) when:

a. The rights to receive cash flows from the asset
have expired, or

b. The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under
a ''pass-through'' arrangement; and either (i)
the Company has transferred substantially all
the risks and rewards of the asset, or (ii) the
Company has neither transferred nor retained
substantially all the risks and rewards of the
asset, but has transferred control of the asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the
Company continues to recognise the transferred
asset to the extent of the Company''s continuing
involvement. In that case, the Company also
recognises an associated liability. The transferred
asset and the associated liability are measured on a
basis that reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form of a

guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company could be required to repay.

Financial liabilities

Initial recognition, measurement and
presentation

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective
hedge, as appropriate.

All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs.

The Company''s financial liabilities include trade and
other payables, loans and borrowings including
bank overdrafts, financial guarantee contracts and
derivative financial instruments.

Subsequent measurement

For purposes of subsequent measurement, financial
liabilities are classified in two categories:

â¢ Financial liabilities at fair value through profit or
loss

â¢ Financial liabilities at amortised cost (loans and
borrowings)

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in
the near term. This category also includes derivative
financial instruments entered into by the Company
that are not designated as hedging instruments
in hedge relationships as defined by Ind AS 109.
Separated embedded derivatives are also classified
as held for trading unless they are designated as
effective hedging instruments.

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities are designated upon initial
recognition as at fair value through profit or loss
only if the criteria in Ind AS 109 are satisfied. For

liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk
are recognized in OCI. These gains/ losses are not
subsequently transferred to P&L. However, the
Company may transfer the cumulative gain or loss
within equity. All other changes in fair value of such
liability are recognised in the statement of profit and
loss. The Company has not designated any financial
liability as at fair value through profit or loss.

Financial liabilities at amortised cost (Loans and
borrowings)

This is the category most relevant to the Company.
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised
cost using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation
process.

Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or cost that are an integral part of the EIR. The
EIR amortisation is included as finance costs in the
Statement of Profit and Loss.

Derecognition of financial liabilities

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

Offsetting of financial instruments

Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

Derivative financial instruments and Hedge
accounting

Initial recognition and subsequent measurement

instrument are designated in a cash flow hedge
relationship. Such derivative financial instruments
are initially recognised at fair value on the date on
which a derivative contract is entered into and are
subsequently re-measured at fair value. Derivatives
are carried as financial assets when the fair value is
positive and as financial liabilities when the fair value
is negative.

At the inception of a hedge relationship, the
Company formally designates and documents the
hedge relationship to which the Company wishes to
apply hedge accounting and the risk management
objective and strategy for undertaking the hedge.
The documentation includes the Company''s risk
management objective and strategy for undertaking
hedge, the hedging/ economic relationship, the
hedged item or transaction, the nature of the risk
being hedged, hedge ratio and how the entity will
assess the effectiveness of changes in the hedging
instrument''s fair value in offsetting the exposure
to changes in the hedged item''s fair value or cash
flows attributable to the hedged risk. Such hedges
are expected to be highly effective in achieving
offsetting changes in cash flows and are assessed
on an ongoing basis to determine that they actually
have been highly effective throughout the financial
reporting periods for which they were designated.

The effective portion of the gain or loss on the
hedging instrument is recognised in OCI in the cash
flow hedge reserve, while any ineffective portion is
recognised immediately in the Statement of Profit
and Loss.

Any gains or losses arising from changes in the fair
value of derivatives are taken directly to profit or loss,
except for the effective portion of cash flow hedges,
which is recognised in OCI and later reclassified to
profit or loss when the hedge item affects profit or
loss and is reclassified to underlying hedged item.

o) Impairment of financial assets

In accordance with Ind AS 109 Financial Instruments,
the Company applies expected credit loss (ECL) model
for measurement and recognition of impairment loss for
financial assets.

risk has increased significantly, life time ECL is used. If
in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase
in risk since initial recognition, then the entity reverts
to recognising impairment loss allowance based on
12-month ECL.

ECL is the difference between all contractual cash flows
that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to
receive (i.e., all cash shortfalls), discounted at the original
EIR. When estimating the cash flows, an entity is required
to consider:

- All contractual terms of the financial instrument
over the expected life of the financial instrument.
However, in rare cases when the expected life of the
financial instrument cannot be estimated reliably,
then the entity is required to use the remaining
contractual term of the financial instrument.

- Cash flows from the sale of collateral held or
other credit enhancements that are integral to the
contractual terms.

The Company uses default rate for credit risk to determine
impairment loss allowance on portfolio of its trade
receivables.

ECL impairment loss allowance (or reversal) recognized
during the period is recognized as income/ expense in
the Statement of Profit and Loss. This amount is reflected
under the head ''other expenses'' in the Statement of
Profit and Loss. The balance sheet presentation for various
financial instruments is described below:

a. Financial assets measured as at amortised
cost, contractual revenue receivables and lease
receivables: ECL is presented as an allowance, i.e., as
an integral part of the measurement of those assets
in the balance sheet. The allowance reduces the net
carrying amount. Until the asset meets write-off
criteria, the Company does not reduce impairment
allowance from the gross carrying amount.

b. Loan commitments and financial guarantee
contracts: ECL is presented as a provision in the
balance sheet, i.e. as a liability.

c. Debt instruments measured at FVTOCI: Since financial
assets are already reflected at fair value, impairment
allowance is not further reduced from its value.
Rather, ECL amount is presented as ''accumulated
impairment amount'' in the OCI.

Trade receivables

The Company applies approach permitted by Ind AS

109 Financial Instruments, which requires expected
lifetime losses to be recognised from initial recognition of
receivables.

Other financial assets

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
whether there has been a significant increase in the credit
risk since initial recognition and if credit risk has increased
significantly, impairment loss is provided.

>) Fair value measurement

The Company measures financial instruments, such as,
derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes
into account a market participant''s ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use
of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities;

Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable;

Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.

For assets and liabilities that are recognised in the financial
statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the
hierarchy by re-assessing categorization (based on the
lowest level input that is significant to the fair value
measurements as a whole) at the end of each reporting
period.

External valuers are involved for valuation of significant
assets, such as properties and unquoted financial assets,
and significant liabilities, such as contingent consideration.
Involvement of external valuers is decided upon annually
by the management. Selection criteria include market
knowledge, reputation, independence and whether
professional standards are maintained. The management
decides, after discussions with the Company''s external
valuers, which valuation techniques and inputs to use for
each case.

At each reporting date, the management analyses the
movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per the
Company''s accounting policies. For this analysis, the
Management verifies the major inputs applied in the latest
valuation by agreeing the information in the valuation
computation to contracts and other relevant documents.

The Management also compares the change in the fair
value of each asset and liability with relevant external
sources to determine whether the change is reasonable.

On an interim basis, the Management present the valuation
results to the Audit Committee and the Company''s
independent auditors. This includes a discussion of the
major assumptions used in the valuations.

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

q) Cash and cash equivalent

Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an original maturity of three months or less, which are
subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, Cash and
cash equivalent consist of cash at banks and on hand and
short-term deposits, as defined above, net of outstanding
bank overdrafts as they are considered an integral part of
the Company''s cash management.

r) Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker. The Company is engaged in the
Technology Services and Solutions, which constitutes its
single reportable segment.

s) Earnings per Share (EPS)

Basic EPS are calculated by dividing the net profit or loss
for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding
during the period. Partly paid equity shares are treated as
a fraction of an equity share to the extent that they are
entitled to participate in dividends relative to a fully paid
equity share during the reporting period. The weighted
average number of equity shares outstanding during the
period is adjusted for events such as bonus issue that
have changed the number of equity shares outstanding,
without a corresponding change in resources.

Diluted EPS amounts are calculated by dividing the profit
attributable to equity shareholders of the Company
(after adjusting for interest on the convertible preference
shares, if any) by the weighted average number of equity
shares outstanding during the year plus the weighted
average number of equity shares that would be issued on
conversion of all the dilutive potential equity shares into
equity shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless
issued at a later date. Dilutive potential equity shares are
determined independently for each period presented.

t) Business combinations

Business combinations between entities under common
control is accounted for at carrying value under the
provisions of Ind AS 103, Business Combinations.

Transaction costs that the Company incurs in connection
with a business combination such as finders'' fees, legal
fees, due diligence fees, and other professional and
consulting fees are expensed as incurred.

u) Share-based payments

Employees (including senior executives) of the Company
receive remuneration in the form of share-based payments,
whereby employees render services as consideration for
equity instruments (equity-settled transactions).

Equity-settled transactions

The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using an
appropriate valuation model. Further details are given in
Note 40.

That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in equity,
over the period in which the performance and/or service
conditions are fulfilled in employee benefits expense.
The cumulative expense recognised for equity-settled
transactions at each reporting date until the vesting date
reflects the extent to which the vesting period has expired
and the Company''s best estimate of the number of equity
instruments that will ultimately vest. The expense or credit
in the statement of profit and loss for a period represents
the movement in cumulative expense recognised as at
the beginning and end of that period and is recognised in
employee benefits expense.

Service and non-market performance conditions are not
taken into account when determining the grant date fair
value of awards, but the likelihood of the conditions being
met is assessed as part of the Company''s best estimate of
the number of equity instruments that will ultimately vest.
Market performance conditions are reflected within the
grant date fair value. Any other conditions attached to
an award, but without an associated service requirement,
are considered to be non-vesting conditions. Non-vesting
conditions are reflected in the fair value of an award and
lead to an immediate expensing of an award unless there
are also service and/or performance conditions.

No expense is recognised for awards that do not ultimately
vest because non-market performance and/or service
conditions have not been met. Where awards include
a market or non-vesting condition, the transactions are
treated as vested irrespective of whether the market or
non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.

When the terms of an equity-settled award are modified,
the minimum expense recognised is the grant date fair
value of the unmodified award, provided the original
vesting terms of the award are met. An additional expense,
measured as at the date of modification, is recognised
for any modification that increases the total fair value
of the share-based payment transaction, or is otherwise
beneficial to the employee. Where an award is cancelled by
the entity or by the counterparty, any remaining element
of the fair value of the award is expensed immediately
through profit or loss.

The dilutive effect of outstanding options is reflected as
additional share dilution in the computation of diluted
earnings per share.

v) 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.

Non-current assets classified as held for sale are measured
at the lower of their carrying amount and fair value less
costs to sell. Costs to sell are the incremental costs directly
attributable to the disposal of an asset, excluding finance
costs and income tax expense.

The criteria for held for sale classification is regarded as
met only when the sale is highly probable, and the asset
is available for immediate sale in its present condition.
Actions required to complete the sale should indicate
that it is unlikely that significant changes to the sale will
be made or that the decision to sell will be withdrawn.
Management must be committed to the sale and the sale
expected within one year from the date of classification.

For these purposes, sale transactions include exchanges of
non-current assets for other non-current assets when the
exchange has commercial substance. The criteria for held
for sale classification is regarded met only when the assets
is available for immediate sale in its present condition,
subject only to terms that are usual and customary for
sales of such assets, its sale is highly probable; and it will
genuinely be sold, not abandoned. The Company treats
sale of the asset to be highly probable when:

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

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

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

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

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 are not
depreciated, or amortised assets once classified as held
for sale.

Assets and liabilities classified as held for sale are presented
separately from other items in the balance sheet.

w) Events after the reporting period

If the Company receives information after the reporting
period, but prior to the date of approved for issue, about
conditions that existed at the end of the reporting period,
it will assess whether the information affects the amounts
that it recognises in its separate financial statements.
The Company will adjust the amounts recognised in its
financial statements to reflect any adjusting events after
the reporting period and update the disclosures that

relate to those conditions in light of the new information.
For non-adjusting events after the reporting period, the
Company will not change the amounts recognised in its
separate financial statements but will disclose the nature
of the non-adjusting event and an estimate of its financial
effect, or a statement that such an estimate cannot be
made, if applicable.

2.3 Changes in accounting policies and disclosures

There are no new accounting policies applied during the
current year and accounting policies are consistent from
previous year.

2.4 New and amended standards

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after April 1,2024. The Company has not
early adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified the
Ind AS 117, Insurance Contracts, vide notification
dated August 12, 2024, under the Companies
(Indian Accounting Standards) Amendment Rules,
2024, which is effective from annual reporting
periods beginning on or after April 1, 2024.

Ind AS 117 Insurance Contracts is a comprehensive
new accounting standard for insurance contracts
covering recognition and measurement, presentation
and disclosure. Ind AS 117 replaces Ind AS 104
Insurance Contracts. Ind AS 117 applies to all types of
insurance contracts, regardless of the type of entities
that issue them as well as to certain guarantees and
financial instruments with discretionary participation
features; a few scope exceptions will apply. Ind AS
117 is based on a general model, supplemented by:

- A specific adaptation for contracts with
direct participation features (the variable fee
approach)

- A simplified approach (the premium allocation
approach) mainly for short-duration contracts

The application of Ind AS 117 does not have
material impact on the Company''s separate financial
statements as the Company has not entered any
contracts in the nature of insurance contracts
covered under Ind AS 117.

(ii) Amendments to Ind AS 116 Leases - Lease
Liability in a Sale and Leaseback

The MCA notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024, which
amend Ind AS 116, Leases, with respect to Lease
Liability in a Sale and Leaseback.

The amendment specifies the requirements that
a seller-lessee uses in measuring the lease liability
arising in a sale and leaseback transaction, to ensure
the seller-lessee does not recognise any amount of
the gain or loss that relates to the right of use it
retains.

The amendment is effective for annual reporting
periods beginning on or after April 1, 2024 and
must be applied retrospectively to sale and leaseback
transactions entered into after the date of initial
application of Ind AS 116.

The application of amendment to Ind AS 116 does
not have material impact on the Company''s separate
financial statements as the Company has not entered
into any sale and leaseback transactions covered
under Ind AS 116.

2.5 Standards notified but not yet effective

There are no standards that are notified and not yet
effective as on the date.

2.6 Climate - related matters

The Company considers climate-related matters in
estimates and assumptions, where appropriate. This
assessment includes a wide range of possible impacts
on the Company due to both physical and transition
risks. Even though climate-related risks might not
currently have a significant impact on measurement,
the Company is closely monitoring relevant changes
and developments, such as new climate-related
legislation.

a. During the year ended March 31, 2023, the Company issued Unrated, Unlisted, Secured Non-Convertible Debentures
("NCDs") aggregating '' 14,500 lakhs to a financial institution ("Investor") repayable over three years at an interest rate
of 15.75% - 16.00% per annum, payable quarterly. The Company also entered into an Investment Agreement with the
aforesaid Investor and provided a Right to Invest ("Share Warrants") in the Compulsorily Convertible Preference Shares
("CCPS") of the subsidiary, MSPL, at an agreed value and mutually agreed terms and conditions. Share Warrants were
classified as Derivative Liability carried at Fair Value through Profit and Loss. The Company recorded a Share Warrants expense
of '' 565.18 lakhs in the Statement of Profit and Loss for the year ended March 31,2023 and reduced the equivalent amount
in investment in equity shares of MSPL in the Balance Sheet as at March 31, 2023.

During the year ended March 31, 2024, the abovementioned NCDs together with other borrowings aggregating '' 21,000
lakhs has been refinanced at a lower interest rate of 12.75% per annum through the issuance of Unlisted Unrated Secured
Redeemable Non-Convertible Debentures through another financial institution. The Company had recorded a one-time
expense of '' 667.40 lakhs relating to an unamortised portion of borrowing costs and prepayment charges on the aforesaid
refinancing. The same had been grouped under finance costs for the year ended March 31, 2024.

On September 29, 2023, MSPL had entered into an Amendment to Share Subscription cum Shareholders'' Agreement dated
July 22, 2023 on September 29, 2023, thereby amending the terms of right of investment by the Investor, wherein the
Investor is entitled to invest only upon discretion and consent of MSPL. Consequent to the aforesaid amendment, the
provision for diminition in investment of MSPL aggregating '' 565.18 lakhs had been reversed through Statement of Profit
and Loss for the year ended March 31, 2024.

b. During the year ended March 31,2024, the Company acquired Epcogen Private Limited ("Epcogen"), engaged in engineering
design and solutions for energy sector, through a payment of fixed purchase consideration of '' 2,625 lakhs and a contingent
purchase consideration payable over a period of three years, dependent upon earnings of Epcogen for the period April 1,
2023 to March 31, 2026, with a maximum amount of '' 700 lakhs.

a) Details of security for borrowings

(i) The 12.75% Unrated Unlisted Redeemable Non-Convertible Debentures is secured by first pari-passu charge over all assets
(including PPE, intangible assets and intellectual rights, current assets and non-current assets) of the Company and subsidiary
companies, AXISCADES Aerospace & Technologies Private Limited and MSPL, property owned by step down subsidiary,
Enertec Controls Limited, at Electronic City, Bangalore, pledge of 100% shares of MSPL and first pari-passu charge over
fixed deposit of '' 1,200.00 lakhs and Corporate guarantee from subsidiary companies, MSPL, AXISCADES Aerospace &
Technologies Private Limited and Enertec Controls Limited. Additionally, cash margin equivalent to interest payable on the
immediately succeeding coupon payment date in the form of fixed deposits lien to be maintained. The Company has made
prepayment of '' 5,250 lakhs during the year (March 31, 2024: '' 10,500 lakhs) and the rest is repayable in 5 quarterly
installments starting from June 2026.

(ii) The 12.00% Unrated Unlisted Redeemable Non-Convertible Debentures of '' 5,000 lakhs is secured by first pari-passu charge
over all assets (including movable PPE, intangible assets and intellectual rights, current assets and non-current assets) of the
Company and subsidiary companies, AXISCADES Aerospace & Technologies Private Limited and MSPL, property owned by
step down subsidiary, Enertec Controls Limited, at Electronic City, Bangalore, pledge of 51% shares of MSPL and first pari-
passu charge over fixed deposit of '' 1,200.00 lakhs and Corporate guarantee from subsidiary companies, MSPL, AXISCADES

Aerospace & Technologies Private Limited and Enertec Controls Limited. Additionally, cash margin equivalent to interest
payable on the immediately succeeding coupon payment date in the form of fixed deposits lien to be maintained. It is
repayable in 11 quarterly installments starting from June 2025.

(iii) Loan from related parties includes unsecured intercorporate loans of

(a) An inter-corporate deposit (''ICD'') from subsidiary, Cades Studec Technologies (India) Private Limited (''CSTI''), amounting
to '' 250.00 lakhs, '' 400.00 lakhs and '' 500.00 lakhs repayable by October 2024, December 2024 and November 2026,
respectively, which carries an interest rate of 11% per annum. Loans which were due for repayment in the current year
were fully repaid.

b) 500.00 lakhs from subsidiary company, Axiscades Aerospace & Technologies Private Limited is unsecured and repayable
on June 2025, carries an interest rate of 9% per annum. During the current year, the Company has made the prepayment
of '' 500.00 lakhs.

c) 6,701.19 lakhs from subsidiary company, Explosoft Tech Solutions Private Limited is unsecured and repayable on
December 2024, carries an interest rate of 13% per annum, includes principal portion of '' 3,614.52 lakhs and accrued
interest of '' 3,086.57 lakhs. During the year, the aforesaid payable has been fully repaid.

d) An inter-corporate deposit (''ICD'') of '' 300.00 lakhs from step down subsidiary company, Mistral Technologies Private
Limited is unsecured and repayable on December 2026, carries an interest rate of 11.50% per annum.

e) An inter-corporate deposit (''ICD'') from of '' 1,200 lakhs and '' 2,000.00 lakhs from subsidiary company, Mistral Solutions
Private Limited is unsecured and repayable on December 2025 and May 2026 respectively, carries an interest rate of
11.50% per annum.

(iv) During the current year, the Company has taken a term loan of '' 1,409.00 lakhs from bank and repayable in 36 equal montly
installments of '' 39.14 lakhs starting from December 2025, carries an interest rate of repo rate 3.60% per annum. The
loan was secured by exclusive charge on capital assets purchased through this loan.

(v) Vehicle loan from Toyota Financial Services India Limited is secured and repayable in equal monthly installment of '' 1.28
lakhs. The loan has been fully repaid during the year.

(vi) Packing credit facility in foreign currency ("PCFC") and Cash credit from banks are secured by exclusive charge on current
assets, movable fixed assets, property owned by step down subsidiary, Enertec Controls Limited at Electronic City, Bangalore,
fixed deposits of '' 700 lakhs and corporate guarantee from step down subsidiary company, Enertec Controls Limited.
Additionally, 10% cash margin in the form of fixed deposits lien to be maintained and First Pari Passu charge on fixed deposit
of '' 1,200 lakhs. Further, shortfall undertaking and letter of responsibility is backed by board resolution.

(vii) During the year ended March 31,2024, the Company had issued 3,323,262 equity shares of '' 5 each in Qualified Institutional
Placement at an issue price of '' 662 per share (including securities premium of '' 657 per share) aggregating '' 21,999.99
lakhs to be utilised towards repayment or prepayment of certain outstanding borrowings availed by the Company and for
general corporate purpose. The Company has utilised the proceeds from QIP for prepayment of 12.75% Unrated Unlisted
Redeemable Non-Convertible Debentures of '' 5,250.00 lakhs during the year ended March 31, 2025 (March 31, 2024: ''
10,500 lakhs) and '' 1,499.90 lakhs towards repayment/prepayment of term loan from financial institution in the year ended
March 31, 2024.

(viii) During the year ended March 31,2024, the Company had availed a term loan from bank amounting to '' 500 lakhs repayable
in 60 equal monthly installments of '' 8.90 lakhs. It is secured by exclusive charge on current assets, movable fixed assets,
property owned by step down subsidiary, Enertec Controls Limited at Electronic City, Bangalore and corporate guarantee
from step down subsidiary company, Enertec Controls Limited. Additionally, 10% cash margin in the form of fixed deposits
lien to be maintained. Further, shortfall undertaking and letter of responsibility is backed by board resolution from Jupiter
Capital Private Limited, the Parent Company.

b) Loan covenants

Term loan from banks and financial institutions contain certain financial covenants such as debt service coverage ratio, total
debt as a percentage of total net-worth etc. The Company has satisfied debt covenants prescribed in the terms of loan except
debt service coverage ratio.The Management is of the view that this is a minor breach, the Company has taken the waiver
letter and hence no adjustments are made to Standalone Financial Statements in this respect.

The Company had total cash outflows for leases of '' 1,497.11 lakhs for the year ended March 31, 2025 (March 31, 2024:
'' 1,557.32 lakhs). The Company has made non-cash additions of '' 282.89 lakhs (March 31,2024: '' 1,178.04 lakhs) and '' 282.89
lakhs (March 31,2024: '' 1,099.45 lakhs) to right-of-use assets and lease liabilities, respectively. There are no future cash outflows
relating to leases that have not yet commenced.

31. Capital and other commitments

As at March 31, 2025, the Company has a commitment of '' 81.29 lakhs (March 31, 2024: '' 96.67 lakhs).

32. Capital management

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

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank/ financial institution to immediately call loans and borrowings. There has
been breaches in the financial covenants of any interest-bearing loans and borrowing in the current period and the Company has
taken the waiver letter (refer note 15(b)).

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net
debt. The Company includes within net debt interest bearing loans and borrowings, lease liabilities, less Cash and cash equivalent.

the statement of profit and loss. The re-measurement of accumulated deferred tax assets has resulted in a one-time additional
deferred tax charge (including reversal of MAT credit) of '' 131.56 lakhs for the year ended March 31, 2025.

Note 2

Pursuant to the final assessment order for AY 2023-24 received on March 23, 2025 thereby concluding the assessment of Income
for the aforesaid assessment year, the Company has set-off unutilised business losses of AY 2023-24 against the taxable profits of
current year and unutilised unabsorbed depreciation of AY 2023-24 against the capital gains on sale of Asset held for sale during
the year ended March 31,2025 and based on the projections for future taxable profits the Company has recognized deferred tax
assets (net) of '' 855.44 lakhs on remaining unutilized losses as at March 31, 2025.

The movement in deferred tax asset from the opening balance pertains to deferred tax credit recognized in Statement of Profit and
Loss and other comprehensive income for the year.

Valuation technique used to determine fair value of derivative contracts

The Company enters into derivative financial instruments with various counterparties, principally financial institutions with
investment grade credit ratings. Foreign exchange forward contracts and cross currency swaps are valued using valuation
techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward
pricing and swap models using present value calculations. The models incorporate various inputs including the credit quality of
counterparties, foreign exchange spot and forward rates and yield curves of the respective currencies. The changes in counterparty
credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other
financial instruments recognised at fair value.

Valuation processes

The Corporate finance team has requisite knowledge and skills. The team headed by the Company CFO directly reports to the
audit committee to arrive at the fair value of financial instruments.

35. Financial risk management

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is
to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on it''s financial performance.
The primary market risk to the Company is foreign exchange exposure risk. The Company uses derivative financial instruments
to mitigate foreign exchange related risk exposures. The Company''s exposure to credit risk is influenced mainly by the individual
characteristic of each customer.

The Company''s risk management activity focuses on actively securing the Company''s short to medium-term cash flows by
minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns.

The Company does not engage in the trading of financial assets for speculative purposes. The most significant financial risks to
which the Company is exposed are described below.

(A) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.
The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a
good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and does not have
any significant concentration of exposures to specific industry sectors or specific country risks.

Financial assets that are not credit impaired

The Company has financial assets which are in the nature of cash and cash equivalent, other bank balances, loans, security
deposits, interest accrued on fixed deposits and other receivables which are not credit impaired. These are contractually agreed
where the probability of default is negligible.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating
to customer credit risk management. Credit quality of a customer is assessed based on an internal assessment. Outstanding
customer receivables are regularly monitored including the creditworthiness of customers to which the Company grants credit
terms in the normal course of business.

Mar 31, 2024

a In the previous year, the Company had received an Interim and Final Arbitration Award ("Arbitration Awards") from the Arbitral Tribunal relating to the arbitration proceedings between the Company and the shareholders of Mistral Solutions Private Limited ("MSPL") and MSPL for discharge of purchase consideration payable towards acquisition of MSPL. In accordance with the Arbitration Awards, the Company had completed acquisition of MSPL by discharging the purchase consideration for all the phases and filed an application with the National Company Law Tribunal, Mumbai (the "NCLT Mumbai") to withdraw the scheme of amalgamation. The Company had recorded an additional charge of '' 6,738.84 lakhs during the previous year ended 31 March 2023 as an exceptional item (refer note 26). During the year, the NCLT Mumbai has granted permission for withdrawing the scheme of amalgamation and accordingly, the scheme of amalgamation is withdrawn.

b The Company was carrying 100% investment in equity shares of MSPL including 1,679,359 equity shares of MSPL held through Explosoft (representing 41.28% shareholding of MSPL) as Investments in MSPL. Pursuant to completion of acquisition of 100% shares of Explosoft during the previous year; Investments in equity shares of Explosoft of '' 7,213 lakhs representing the purchase consideration paid, is separately recognised under Investments.

c During the previous year, the Company issued Unrated, Unlisted, Secured Non-Convertible Debentures ("NCDs") aggregating '' 14,500 lakhs to a financial institution ("investor") repayable over three years at an interest rate of 15.75% - 16.00% per annum, payable quarterly. The Company also entered into an Investment Agreement with the aforesaid Investor and provided a Right to Invest ("Share Warrants") in the Compulsorily Convertible Preference Shares ("CCPS") of the subsidiary, MSPL, at an agreed value and mutually agreed terms and conditions. Share Warrants are classified as Derivative Liability carried at Fair Value through Profit and Loss. The Company recorded a Share Warrants expense of '' 565.18 lakhs in the Statement of Profit and Loss and reduced the equivalent amount in investment in equity shares of MSPL in the Balance Sheet.

During the year ended 31 March 2024, the abovementioned NCDs together with other borrowings aggregating '' 21,000 lakhs has been refinanced at a lower interest rate of 12.75% per annum through the issuance of Unlisted Unrated Secured Redeemable Non-Convertible Debentures through another financial institution. The Company has recorded a one-time expense of '' 667.40 lakhs relating to an unamortised portion of borrowing costs and prepayment charges on the aforesaid refinancing. The same has been grouped under finance costs for the year ended 31 March 2024.

On 29 September 2023, MSPL has entered into an Amendment to Share Subscription cum Shareholders'' Agreement dated 22 July 2023 on 29 September 2023, thereby amending the terms of right of investment by the Investor, wherein the Investor is entitled to invest only upon discretion and consent of MSPL. Consequent to the aforesaid amendment, the provision for diminition in investment of MSPL aggregating '' 565.18 lakhs has been reversed through Statement of Profit and Loss for the year ended 31 March 2024.

d During the year, the Company acquired Epcogen Private Limited ("Epcogen") engaged in engineering design and solutions for energy sector, through a payment of fixed purchase consideration of '' 2,625 lakhs and a contingent purchase consideration payable over a period of three years, dependent upon earnings of Epcogen for the period 1 April 2023 to 31 March 2026, with a maximum amount of '' 700 lakhs.

* The entire purchase consideration payable for the acquistion of MSPL is discharged by the Company except for certain individual shareholders that are in the process of settlement.

f Based on the impairment assessment of investment in subsidiary i.e., MSPL, the Company has reversed an impairment loss aggregating '' 5,073.97 lakhs during the previous year ended 31 March 2023, refer note 26.

g On 11 July 2022, the Company had sold the investment in its associate ASSYSTEMS AXISCADES Engineering Private Limited (AAEPL) for a consideration of '' 222.55 lakhs. The Company had recognised a loss of '' 4.95 lakhs on sale of the aforesaid investment in the Statement of Profit and Loss for the year ended 31 March 2023 (refer note 25).

(i) Fixed deposits of a carrying amount '' 341.07 lakhs (31 March 2023: nil) have been deposited as margin money against the issuance of 12.75% Unrated Unlisted Redeemable Non-Convertible Debentures.

(ii) Fixed deposits of a carrying amount nil (31 March 2023: '' 19.63 lakhs) have been deposited as bank guarantee in favour of various government authorities and customers.

(iii) Fixed deposits of a carrying amount '' 712.00 lakhs (31 March 2023: nil) have been deposited as margin money against the packing credit facility and the term loan availed from a bank.

(iv) Includes '' 348.17 lakhs (31 March 2023: '' 504.95 lakhs) from related parties (refer note 28)

Refer note 15 for details of assets pledged as security for borrowings.

(i) During the year, the Company allotted 425,632 equity shares (31 March 2023 - 285,280) of '' 5 each aggregating '' 21.28 lakhs (31 March 2023 - '' 14.27 lakhs), consequent to the exercise of stock options by employees of the Company under the "AXISCADES ESOP 2018 - Series 1" and "AXISCADES ESOP 2018 - Series 2".

(ii) During the year, the Company allotted 3,323,262 equity shares of '' 5 each at an issue price of '' 662 per equity share through Qualified Institutional Placement (QIP) process. Refer note 46.

(b) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 5 per share. Each holder of equity shares is entitled to one vote per share. Dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and shall be payable in Indian rupees. In the event of liquidation of the Company, the shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(h) Shares reserved for issue under options

The ESOP scheme titled "AXISCADES Employee Stock Option Plan 2018 - Series 1" and "AXISCADES Employee Stock Option Plan 2018 - Series 2" was approved by the Shareholders of the Company vide resolution passed at the Extra Ordinary General Meeting through postal ballot held on 31 March 2018 in respect of grant of options exercisable into equity shares of face value of '' 5 each fully paid-up, not exceeding 3,020,762 equity shares or 8% of the paid up equity shares of the Company from time to time. Further, the Company has got its shareholders approval in its 31st AGM dated 28 September 2021 for increase in the pool of ESOP additionally by 2,643,167 options under scheme "AXISCADES Employee Stock Option Plan- Series 2" ("ESOP Series 2") thereby the total pool under "ESOP Schemes" shall not exceed 5,663,929 shares or 15% of the paid-up equity shares of the Company from time to time. The total number of options outstanding as on 31 March 2024 is 3,870,381 shares (31 March 2023: 5,014,394).

Nature and purpose:

Securities premium

Securities premium is used to record the premium on issue of shares. The reserve will be utilized in accordance with the provisions of the Companies Act, 2013.

Hedge Reserve

The Company uses hedging instruments as part of its management of foreign currency risk. For hedging foreign currency, the Company uses foreign currency forward contracts. To the extent these hedges are effective, the change in fair value of the hedging instrument is recognised in the hedging reserve. Amounts recognised in the hedging reserve is reclassified to the statement of profit or loss when the hedged item affects profit or loss.

Retained earnings

Retained earnings are the profits/(losses) that the Company has earned till date. Retained earnings include re-measurement loss/ (gain) on defined benefit plans, net of taxes that will not be reclassified to the Standalone Statement of Profit and Loss.

Capital reserve

Capital reserve is created pursuant to Amalgamation of India Aviation Training Institute Private Limited("IAT") with the Company with effect 1 April 2016.

Share based payment reserve

The share based payment reserve is used to recognise the value of equity-based share based payments provided to employees, including key management personnel, as part of their remuneration. Refer to note 39 for further details of these plans.

a) Details of security for borrowings

(i) The 12.75% Unrated Unlisted Redeemable Non-Convertible Debentures of '' 21,000 lakhs is secured by first pari-passu charge over all assets (including movable and immovable PPE, intangible assets and intellectual rights, current assets and non-current assets) of the Company and subsidiary companies, AXISCADES Aerospace & Technologies Private Limited and MSPL, property owned by step down subsidiary, Enertec Controls Limited, at Electronic City, Bangalore, pledge of 100% shares of MSPL and Corporate guarantee from subsidiary companies, MSPL, AXISCADES Aerospace & Technologies Private Limited, Enertec Controls Limited and Explosoft Tech Solutions Private Limited. The Company has repaid '' 10,500 lakhs during the year and the rest is repayable in 5 quarterly installments starting from June 2026.

(ii) The 15.75% Unrated Unlisted Non-Convertible Debentures of '' 10,000 lakhs is secured and repayable in 12 equal monthly installments of '' 833 lakhs starting from August 2024 and 16% Unrated Unlisted Non-Convertible Debentures of '' 4,500 lakhs is secured and repayable on December 2023 (together referred to as "Debentures"). The Debentures are secured by exclusive charge on the movable assets and intangible assets of the Company and subsidiary company, MSPL. Also pledge of 100% shares of the subsidiary company, MSPL and corporate guarantee by Jupiter Capital Private Limited, the Parent Company. The 15.75% and 16% unrated unlisted secured non-convertible debentures was fully repaid during the year ended 31 March 2024.

(iii) Loan from related parties includes unsecured intercorporate loans of

a) The Company had taken an inter-corporate deposit (''ICD'') from Cades Studec Technologies (India) Private Limited (''CSTI''), a subsidiary amounting to '' 250 lakhs and '' 400 lakhs repayable by July 2023 and November 2023 respectively, which carries an interest at the rate of 9% per annum. During the year ended 31 March 2024 the aforesaid ICDs has been repaid and new ICDs have been extended amounting to '' 250 lakhs and '' 400 lakhs by one year i.e. October 2024 and December 2024, respectively, which carries an interest at the rate of 11% per annum. Further a fresh loan of '' 500 lakhs repayable by November 2026, which carries an interest at the rate of 11% per annum.

b) '' 500.00 lakhs from subsidiary company, Axiscades Aerospace & Technologies Private Limited is unsecured and repayable on June 2025, carries an interest rate of 9% per annum.

c) '' 6,363.37 lakhs from subsidiary company, Explosoft Tech Solutions Private Limited is unsecured and repayable on December 2024, carries an interest rate of 13% per annum, includes principal portion of '' 3,614.52 lakhs and accrued interest of '' 2,748.85 lakhs.

d) New loan of '' 300.00 lakhs from step down subsidiary company, Mistral Technologies Private Limited is unsecured and repayable on December 2026, carries an interest rate of 11.50% per annum.

e) New loans of '' 1,200 lakhs and '' 2,000.00 lakhs from subsidiary company, Mistral Solutions Private Limited is unsecured and repayable on December 2026 and May 2026 respectively, carries an interest rate of 11.50% per annum.

f) '' 4,616.97 lakhs from parent company, Jupiter Capital Private Limited is unsecured and repayable on July 2023 carries at an interest rate of 18.50% per annum and is fully repaid during the year using the proceeds of 12.75% unrated unlisted redeemable non-convertible debentures.

(iv) Term loan of '' 2,000.00 lakhs from financial institution was secured and repayable in equal quarterly installment of '' 200.00 lakhs starting from August 2023, carries an interest rate of 14.50% per annum. The loan was secured by exclusive charge on current assets, movable assets of the Company and subsidiary, AXISCADES Aerospace & Technologies Private Limited, land and bulidings of the Company and step down subsidiary, Enertec Controls Limited, and pledge of shares of the Company with minimum cover of 1.15x of the loan amount. Further, unconditional and irrevocable corporate guarantee of Parent Company, Jupiter Capital Private Limited, and subsidiaries, AXISCADES Aerospace & Technologies Private Limited and Enertec Controls Limited. This was fully repaid during the year.

(v) Vehicle loan of '' 40.99 lakhs from Toyota Financial Services India Limited is secured and repayable in equal monthly installment of '' 1.28 lakhs from April 2022.

(vi) Packing credit facility in foreign currency ("PCFC") and Cash credit from banks are secured by exclusive charge on current assets, movable fixed assets, property owned by step down subsidiary, Enertec Controls Limited at Electronic City, Bangalore, fixed deposits of '' 700 lakhs and corporate guarantee from step down subsidiary company, Enertec Controls Limited. Additionally, 10% cash margin in the form of fixed deposits lien to be maintained. Further, shortfall undertaking and letter of responsibility is backed by board resolution from Jupiter Capital Private Limited, the Parent Company.

(vii) The 15.75% and 16% Unrated Unlisted Secured Non-Convertible Debentures along with other borrowings which were outstanding on 31 March 2023 have been refinanced at a lower interest rate of 12.75% per annum through the issuance of 12.75% Unrated Unlisted Redeemable Non-Convertible Debentures referred in note (i) above.

(viii) During the year, the Company has availed the term loan amounting to ''500 lakhs from bank repayable in 60 equal monthly installments of '' 5.78 lakhs. It is secured by exclusive charge on current assets, movable fixed assets, property owned by step down subsidiary, Enertec Controls Limited at Electronic City, Bangalore, fixed deposits of '' 700 lakhs and corporate guarantee from step down subsidiary company, Enertec Controls Limited. Additionally, 10% cash margin in the form of fixed deposits lien to be maintained. Further, shortfall undertaking and letter of responsibility is backed by board resolution from Jupiter Capital Private Limited, the Parent Company.

b) Loan covenants

Term loan from banks and financial institutions contain certain financial covenants such as debt service coverage ratio, total debt as a percentage of total net-worth etc. The Company has satisfied debt covenants prescribed in the terms of bank loan except debt repayment to net operating income.The Management is of the view that this is a minor breach, the Company has taken the waiver letter from the bank and hence no adjustments are made to Standalone Financial Statements in this respect.

Asset retirement obligation

The Company has recognised a provision for asset retirement obligation associated with premises taken on lease. In determining the fair value of the provision, assumptions and estimates are made in relation to the discount rates, the expected cost to dismantle and remove furniture and fixtures from the leased premises and the expected timing of these costs. The carrying amount of the provision as at 31 March 2024 is '' 55.08 lakhs (31 March 2023: '' 50.42 lakhs). The Company estimates the costs would be realised within 4 - 5 years time upon the expiration of the lease and calculates the provision using the DCF method based on the following assumptions:

20.1 Disaggregated revenue information

The table below presents disaggregated revenues from contracts with customers by geography and timing of revenue recognition. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors.

Trade receivables are non-interest bearing and are generally on terms of 30 to 120 days. In 31 March 2024, '' (0.97) lakhs (31 March 2023: '' 28.36 lakhs) was recognised/(reversed) as provision for expected credit loss on trade receivables. As at 31 March 2024, the Company has provision for expected credit losses of trade receivables of '' 261.72 lakhs (31 March 2023: '' 262.69 lakhs).

The Company classifies the right to consideration in exchange for deliverables as either a receivable or as unbilled revenue. A receivable is a right to consideration that is unconditional upon passage of time. Revenue in excess of invoicing are classified as contract assets (unbilled revenue) while invoicing in excess of revenue are classified as contract liabilities (unearned revenue).

Contract assets relates to revenue earned from engineering design services rendered within the financial year and for which invoicing happens subsequent to the year end. As such, the balances of this account vary and depend on the quantum of engineering design services at the end of the year.

Contract liabilities include short-term advances received from customers to provide engineering design services. Advance from customers pertain to balance received as advance from various parties as certain percentage of the order value. The same will be adjusted against the order on the basis of delivery and collection of receivables.

20.3 Performance Obligation

The performance obligation is satisfied upon the providing of services as and when rendered. The Company has applied practical expedient and has not disclosed information about remaining performance obligations in contracts, where the original contract duration is one year or less or where the entity has the right to consideration that corresponds directly with the value of entity''s performance completed to date. Consequently, disclosure related to transaction price allocated to remaining performance obligation is not material.

20.4 There is no difference in the contract price negotiated and the revenue recognised in the statement of profit and loss. There is no significant revenue recognised in the current year from performance obligations satisfied in previous years.

27 Loss per share (EPS) (basic and diluted)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent (after adjusting for interest on the convertible preference shares) by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

For the purpose of computaiton of diluted EPS for the year ended 31 March 2024 and 31 March 2023, the effect of stock options granted under ESOP scheme have not been considered as the effect of these potentially diluted equity shares are anti-dilutive.

(a) As the future liability for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to individual is not ascertainable and therefore not included above.

(b) Total employee benefit expense includes employee stock compensation expense of '' 389.05 lakhs (31 March 2023 -'' 396.29 lakhs) for Mr. Arun Krishnamurthi, and '' 291.79 lakhs (31 March 2023 - '' 297.21 lakhs) for Mr. Shashidhar SK, respectively included in the employee stock option scheme expense in the Standalone Statement of Profit and Loss account.

i. Terms and conditions of transactions with related parties

Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31 March 2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2023: nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

ii. Loan to its subsidiary

The loan granted to Explosoft Tech Solutions Private Limited is intended for the purpose of meeting their working capital requirements. The loan is unsecured and repayable in full on 5 January 2025 and 17 April 2026. Interest is charged at 10%-11.5% per annum. The loan has been utilized for the purpose it was granted.

The loan granted to Epcogen Private Limited is intended for the purpose of meeting their working capital requirements. The loan is unsecured and repayable in full on 19 February 2026. Interest is charged at 11.50% per annum. The loan has been utilized for the purpose it was granted.

iii. Corporate Guarantee

During the year, the Company has received corporate guarantee from its subsidiaries, Mistral Solutions Private Limited, AXISCADES Aerospace & Technologies Private Limited, Enertec Controls Limited and Explosoft Tech Solutions Private Limited and against the issuance of 12.75% unrated unlisted redeemable non-convertible debentures of '' 21,000 lakhs. The Corporate Guarantee outstanding as at March 31, 2024 is '' 10,500 lakhs.

29 Right-of-use assets and lease liabilities

Right-of-use assets and lease liabilities

Company as a lessee

The Company has lease contracts for immovable properties and computers. These leases are for a period ranging from three to nine years.The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets. These lease contracts include extension and termination options.

The Company also has certain leases of computers with lease terms of 12 months or less. The Company applies the ''shortterm lease'' recognition exemptions for these leases.

Set out below are the carrying amounts of right-of-use assets recognised and the movements during the year:

The Company had total cash outflows for leases of ''1,557.32 lakhs for the year ended 31 March 2024 (31 March 2023: ''1,287.76 lakhs). The Company has made non-cash additions of ''1,178.04 lakhs (31 March 2023: ''2,102.26 lakhs) and ''1,099.45 lakhs (31 March 2023: ''2,010.23 lakhs) to right-of-use assets and lease liabilities, respectively. There are no future cash outflows relating to leases that have not yet commenced.

The Company has certain lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Company''s business needs. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised

30 Capital and other commitments

As at 31 March 2024, the Company has a commitment of '' 96.67 lakhs (31 March 2023: '' 51.13 lakhs).

31 Capital management

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

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank/ financial institution to immediately call loans and borrowings. There has been breaches in the financial covenants of any interest-bearing loans and borrowing in the current period and the Company has taken the waiver letter from the bank (refer note 15(b)).

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt interest bearing loans and borrowings, lease liabilities, less Cash and cash equivalent.

There have been no transfers among Level 1, Level 2 and Level 3 during the year ended 31 March 2023.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The Management assessed that the fair value of Cash and cash equivalent, trade receivables, loans, other financial assets, trade payables and working capital loans approximate the carrying amount largely due to short-term maturity of these instruments.

Valuation technique used to determine fair value of derivative contracts

The Company enters into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. Foreign exchange forward contracts and Currency options are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates of the underlying commodity. As at 31 March 2024, the mark-to-market value of other derivative asset positions is net of a credit valuation adjustment attributable to derivative counterparty default risk. The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognised at fair value.

Valuation processes

The Corporate finance team has requisite knowledge and skills. The team headed by the Company CFO directly reports to the audit committee to arrive at the fair value of financial instruments.

34 Financial risk management

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on it''s financial performance. The primary market risk to the Company is foreign exchange exposure risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer.

The Company''s risk management activity focuses on actively securing the Company''s short to medium-term cash flows by minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns.

The Company does not engage in the trading of financial assets for speculative purposes. The most significant financial risks to which the Company is exposed are described below.

Financial assets that are not credit impaired

The Company has financial assets which are in the nature of cash and cash equivalents, other bank balances, loans, security deposits, interest accrued on fixed deposits and other receivables which are not credit impaired. These are contractually agreed where the probability of default is negligible.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an internal assessment. Outstanding customer receivables are continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on days past due for groupings of various customer segments with similar loss patterns (i.e., by geographical region and customer type). The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Generally, trade receivables are written-off if past due for more than one year except receivables from related parties and are not subject to enforcement activity. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 33. The Company does not hold collateral as security. The Company is considerate of the fact the majority of the collection is receivable from export customers with high credit worthiness where there is no significant risk of bad debts. The customers of the Company have a defined period for payment of receivables, hence the Company evaluates the concentration of risk with respect to trade receivables as low. The Company considers receivables from group company separately and creates provision for doubtful debts on case to case basis.

The Company''s principal sources of liquidity are cash and cash equivalent and the cash flow that is generated from operations. As of 31 March 2024, the Company has the positive working capital of '' 7,313.94 lakhs (31 March 2023: negative working capital '' 8,718.60 lakhs) including purchase consideration payable on acquisition of Mistral Solutions Private Limited and Epcogen private limited of '' 658.46 lakhs (31 March 2023: '' 125.13 lakhs) and cash and cash equivalent of '' 1,693.53 lakhs (31 March 2023: '' 1,665.01 lakhs).

The Company is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and certain other price risk, which result from both its operating, financing and investing activities.

Foreign currency sensitivity

The Company operates internationally and a significant portion of the business is transacted in USD and EURO currencies and consequently the Company is exposed to foreign exchange risk through its sales and purchases from overseas suppliers in various foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company''s operations are adversely affected as the rupee appreciates/ depreciates against these currencies.

Sensitivity

The following table details the Company''s sensitivity to a 1% increase and decrease in the ''against the relevant foreign currencies. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign currency rates, with all other variables held constant and refer below for impact of change in foreign exchange rates on loss before tax of the Company.

Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. These derivative financial instruments are valued based on similar assets and liabilities in active markets or inputs that are directly or in directly observable in the marketplace.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because of changes in market interest rates. As at 31 March 2024 and 31 March 2023, the Company does not have any long term debt obligations with floating interest rates, hence, is not exposed to any significant interest rate risk.

Price risk

The Company invests in mutual funds schemes of leading fund houses. Such investments are suspectible to market price risks. However, given the short tenure of the underlying portfolio of the mutual fund shcemes in which the Company has invested, such price risk is not significant.

35 Defined benefit obligationsA Defined benefit contributionsIndia

The Company makes contribution to statutory provident fund as per Employees Provident Fund and Miscellaneous Provision Act, 1952 for its employees. This is a defined contribution plan as per Ind AS 19, Employee benefits. Contribution made during the year ended 31 March 2024 : '' 875.17 lakhs (31 March 2023 : '' 576.03 lakhs)

Overseas social security

The Company makes a contribution towards social security charges for its employees located at the respective branch offices in respective foreign geographies, that are defined contribution plans. The contributions paid or payable is recognised as an expense in the period in which the employee renders services in respective geographies. Contribution made during the year ended 31 March 2024 : '' 1,099.83 lakhs (31 March 2023 : '' 701.36 lakhs)

B Defined benefit plans

The Company has a defined benefit gratuity plan (unfunded). The Company has provided for gratuity, for its employees as per actuarial valuation carried out by an independent actuary on the Balance Sheet date. The valuation has been carried out using the Project Unit Credit Method as per Ind AS 19 to determine the present value of Defined Benefit Obligations and the related current service cost. This is a defined benefit plan as per Ind AS 19.

The gratuity plan is governed by the provisions of the Payment of Gratuity Act, 1972 (as amended from time to time). Employees are entitled to all the benefits enlisted under this Act.

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary overtime. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

a Interest rate risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability as shown in financial statements.

b Liquidity risk

This is the risk that the Company is not able to meet the short-term gratuity pay-outs. This may arise due to non

availability of enough cash/cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time. c Salary escalation risk

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of employees in future. Deviation in the rate of interest in future for employees from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

d Demographic risk

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

e Regulatory risk

Gratuity benefits are paid in accordance with the requirements of the Payment of Gratuity Act,1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity pay-outs

The assumptions were developed by Management with the assistance of independent actuaries. Discount factors are determined close to each year-end by reference to market yields of Government bonds that have terms to maturity approximating to the terms of the gratuity obligation. Other assumptions are based on current actuarial benchmarks and Management''s historical experience.

A quantitative sensitivity analysis for significant assumption as at 31 March 2024 is as shown below:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, attrition rate, expected salary increase and mortality. The sensitivity analysis below has been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The following table summarizes the impact of change in the defined benefit obligation resulting from the specified percentage change in the aforementioned assumptions.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

There is no change in the method and assumptions used in preparing the sensitivity analysis from previous years.

(v) Effect of plan on entity''s future cash flows

The scheme is managed on an unfunded basis and hence, no funding arrangements or future contributions are applicable. The weighted average duration of the plan is estimated to be 6 years for the year ended 31 March 2024 and 7 years for the year ended 31 March 2023 respectively. Following is a maturity profile of the defined benefit obligation as at 31 March 2024 and 31 March 2023.

36 Segment Information

The Board of Directors of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. The CODM evaluates the Company''s performance and allocates resources based on an analysis of engineering services.

The Company is predominantly engaged in the business of Technology Services and Solutions, which constitutes a single business segment and is governed by similar set of risks and returns. The operations of the Company primarily cater to the market outside India, which the Management views as a single segment. The Management monitors the operating results of its single segment for the purpose of making decisions about resource allocation and performance assessment.

Two customers individually accounted for '' 17,771.63 lakhs and '' 3,561.66 lakhs respectively, which is more than 10% of the total revenue of the Company for the year ended 31 March 2024 and two customers individually accounted for '' 14,396.97 lakhs and '' 3,319.84 lakhs respectively, which is more than 10% of the total revenue of the Company for the year ended 31 March 2023.

The Company is domiciled in India. The Company''s revenue from operations from external customers primarily relate to operations outside India. Revenue from customers located in India for the year ended 31 March 2024 amounts to '' 9,370.38 lakhs (31 March 2023: '' 7,436.94 lakhs) and from outside India for the year ended 31 March 2024 amounts to '' 25,932.06 lakhs (31 March 2023: '' 20,877.91 lakhs). Majority of the non-current assets of the Company are located in India.

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

39 Share-based payments to employees Employee stock option scheme

The Company has two ESOP schemes titled "AXISCADES Employee Stock Option Plan- Series 1" and "AXISCADES Employee Stock Option Plan- Series 2" under which option to subscibe for the Company''s shares can be granted to certain executive and senior employees.

The fair value of the options granted is estimated using Black-Scholes model of pricing, taking into account the terms and conditions upon which the share options were granted.

40 Transfer pricing

Transfer Pricing regulations for computing the taxable income and expenditure from ''international transactions'' between ''associated enterprises'' on an ''arm''s length'' basis. These regulations, inter alia, also require the maintenance of prescribed documents and information including furnishing a report from an Accountant within due date of filing the Return of Income. The Company is in the process of updating the Transfer Pricing documentation for the financial year ended 31 March 2024 following a detailed transfer pricing study conducted for the financial year ended 31 March 2023. In the opinion of the Management, the same would not have an impact on these financial statements. Accordingly, these financial statements do not include the effect of the transfer pricing implications, if any.

(All amounts in '' lakhs, unless otherwise stated) 44 Contingent liability
	As at	As at
	31 March 2024	31 March 2023
Claims against the company not acknowledged as debts Indirect tax matters for demands pending before various appellate authorities (refer	1,010.72	956.39
note (i) below) Direct tax matters under dispute/ pending before Income Tax Authorities (refer note	358.00	3,638.00
(ii) below) Financial guarantees Corporate Guarantee for a facility granted to a subsidiary (refer note 28)	3,500.00	3,500.00
Bank Guarantees	47.18	-
	4,915.90	8,094.39

(i) The Company has received demand notices from the authorities under the Finance Act,1994 for non-payment of Service tax on reverse charge mechanism for the period April 2006 to September 2010 and also received demand notices from GST autorities under Goods and Service Tax Act, 2017 for non-payment of GST on reverse charge mechanism, excess ITC availed and ITC of input service distributor not appearing in GSTR 2A for the period FY 2017-2018 to FY 2018-2019. The Company is contesting the above demands and has filed appeals against the above orders. Pending outcome of the appellate proceedings and based on advise from the Company''s tax consultants, no adjustments has been made in the financial statements in this regard.

(ii) During the year ended 31 March 2023, the Company has received an income tax demand (including interest) aggregating EUR 41.17 lakhs ('' 3,280 lakhs) for the FY 2015-16 to FY 2017-18 from the German tax authorities. The Company''s position was upheld in the appeallate process and has received a favourable order dismissing the demand and interest from the German tax authorities. In respect of other income tax matters, the Company has received assessment orders in respect of certain financial years giving raise to additional income tax demand (including interest) on account of certain adjustments in relation to disallowances of expenses and certain tax benefits. The Company has contested such demand and appeal is pending at appellate level. Pending outcome of the appellate proceedings and based on advise from the Company''s tax consultants, no adjustments has been made in the financial statements in this regard.

45 Assets held for sale

In the meeting held on 27 March 2024, the Board of Directors of the Company had approved for the sale of Leasehold land and Office building situated at D-30, Sector-3, Noida, Uttar Pradesh. The Company has entered into an agreement to sell the aforesaid property and the transfer is expected within next 12 months and accordingly the assets are grouped under "Assets held for sale".

Unutilised QIP Proceeds as at 31 March 2024 are available as

a) Fixed deposits with monitoring agency amounting to '' 8,345.58 lakhs

b) Bank balances in monitoring agency account is '' 1.17 lakhs includes interest received of '' 0.85 lakhs on fixed deposits redeemed (refer note 11)

c) The maximum amount of idle/surplus funds invested during the year was '' 19,151.20 lakhs

47 The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that, audit trail feature is not enabled i) for the changes made to the master data; and ii) at the database level. Further, audit trail feature has not been tampered with, in respect to accounting software where the audit trail has been enabled.

48 Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company does not have any transactions with companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956.

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

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

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

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

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

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

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

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

(vii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(viii) 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

49 Events after the reporting period

There are no events or transactions which have occured since the balance sheet date which would have a material effect and require adjustments in the standalone financial statements.

Mar 31, 2023

Provisions and contingencies

Provisions

A provision is recognised if, as a result of a past event, the
Company has a present legal or constructive obligation
that is reasonably estimable, and it is probable that an
outflow of economic benefits will be required to settle
the obligation. If the effect of the time value of money
is material, provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money
and the risks specific to the liability. The increase in the
provision due to the passage of time is recognised as
interest expense.

Contingent liabilities

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
Company or a present obligation that is not recognised
because it is not probable that an outflow of resources
will be required to settle the obligation or it cannot be
measured with sufficient reliability. The Company does not
recognise a contingent liability but discloses its existence
in the financial statements.

Contingent assets

Contingent assets are neither recognised nor disclosed.
However, when realisation of income is virtually certain,
related asset is recognised.

Onerous contracts

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

o) 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.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value and
transaction cost that is attributable to the acquisition of
the financial asset is also adjusted.

Subsequent measurement

For purposes of subsequent measurement, financial assets

are classified in four categories:

i. Debt instruments at amortised cost;

ii. Debt instruments at fair value through other
comprehensive income (FVTOCI);

iii. Debt instruments, derivatives and equity instruments
at fair value through profit or loss (FVTPL); and

iv. Equity investments.

i. Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised
cost if both the following conditions are met:

a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows; and

b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
principal amount outstanding.

This category is the most relevant to the
Company. After initial measurement, such
financial assets are subsequently measured at
amortised cost using the effective interest rate
(EIR) method. Amortised cost is calculated by
taking into account any discount or premium
on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation
is included in finance income in the Statement
of Profit and Loss. The losses arising from
impairment are recognised in the Statement of
Profit and Loss. This category generally applies
to trade and other receivables.

ii. Debt instrument at FVTOCI

A ''debt instrument'' is classified as at the FVTOCI if
both of the following criteria are met:

a) The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets; and

b) The asset''s contractual cash flows represent
SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at
each reporting date at fair value. Fair value
movements are recognized in the other
comprehensive income (OCI). However,
the Company recognizes interest income,
impairment losses and reversals and foreign
exchange gain or loss in the Statement of

Profit and Loss. On derecognition of the asset,
cumulative gain or loss previously recognised in
OCI is reclassified from the equity to Statement
of Profit and Loss. Interest earned whilst holding
FVTOCI debt instrument is reported as interest
income using the EIR method.

iii. Debt instrument at FVTPL

FVTPL is a residual category for debt instruments.
Any debt instrument, which does not meet the
criteria for categorization as at amortized cost
or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to
designate a debt instrument, which otherwise
meets amortized cost or FVTOCI criteria, as at
FVTPL. However, such election is allowed only if
doing so reduces or eliminates a measurement
or recognition inconsistency (referred to as
''accounting mismatch''). The Company has not
designated any debt instrument as at FVTPL.

Debt instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the Statement of Profit
and Loss.

iv. Equity investments

All equity investments in scope of Ind AS 109,
Financial Instruments, are measured at fair value.
Equity instruments which are held for trading
and contingent consideration recognised
by an acquirer in a business combination to
which Ind AS 103 Business Combinations,
applies are classified as at FVTPL. For all other
equity instruments, the Company may make
an irrevocable election to present in other
comprehensive income subsequent changes
in the fair value. The Company makes such
election on an instrument-by-instrument basis.
The classification is made on initial recognition
and is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends,
are recognized in the OCI. There is no recycling
of the amounts from OCI to Statement of Profit
and Loss, even on sale of investment. However,
the Company may transfer the cumulative gain
or loss within equity.

Equity instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the Statement of Profit

and Loss.

De-recognition of financial assets

A financial asset (or, where applicable, a part of a
financial asset) is primarily derecognised (i.e. removed
from the Company''s balance sheet) when:

a. The rights to receive cash flows from the asset
have expired, or

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company could be required to repay.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value
and, in the case of loans and borrowings and payables,
net of directly attributable transaction costs.

The Company''s financial liabilities include trade and other
payables, loans and borrowings including bank overdrafts,
financial guarantee contracts and derivative financial

instruments.

Subsequent measurement

The measurement of financial liabilities depends on their
classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value
through profit or loss. Financial liabilities are classified as
held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes
derivative financial instruments entered into by the
Company that are not designated as hedging instruments
in hedge relationships as defined by Ind AS 109, Financial
Instruments.

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities designated upon initial recognition at
fair value through profit or loss are designated as such at
the initial date of recognition, and only if the criteria in Ind
AS 109 are satisfied. For liabilities designated as FVTPL,
fair value gains/ losses attributable to changes in own
credit risk are recognized in OCI. These gains/ loss are not
subsequently transferred to Statement of Profit and Loss.
However, the Company may transfer the cumulative gain
or loss within equity. All other changes in fair value of such
liability are recognised in the Statement of Profit and Loss.
The Company has not designated any financial liability as
at fair value through profit and loss.

Loans and borrowings

This is the category most relevant to the Company. After
initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised as well as through
the EIR amortisation process.

Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or cost that
are an integral part of the EIR. The EIR amortisation is
included as finance costs in the Statement of Profit and
Loss.

Derecognition of financial liabilities

derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying
amounts is recognised in the Statement of Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the
net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis,
to realise the assets and settle the liabilities simultaneously.

Derivative financial instruments and Hedge
accounting

Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such
as forward currency contracts to hedge its foreign currency
risks arising from highly probable future forecasted sales.
This derivative financial instrument are designated in a
cash flow hedge relationship. Such derivative financial
instruments are initially recognised at fair value on the
date on which a derivative contract is entered into and
are subsequently re-measured at fair value. Derivatives are
carried as financial assets when the fair value is positive
and as financial liabilities when the fair value is negative.

At the inception of a hedge relationship, the Company
formally designates and documents the hedge relationship
to which the Company wishes to apply hedge accounting
and the risk management objective and strategy for
undertaking the hedge. The documentation includes the
Company''s risk management objective and strategy for
undertaking hedge, the hedging/ economic relationship,
the hedged item or transaction, the nature of the risk
being hedged, hedge ratio and how the entity will assess
the effectiveness of changes in the hedging instrument''s
fair value in offsetting the exposure to changes in the
hedged item''s fair value or cash flows attributable to
the hedged risk. Such hedges are expected to be highly
effective in achieving offsetting changes in cash flows and
are assessed on an ongoing basis to determine that they
actually have been highly effective throughout the financial
reporting periods for which they were designated.

The effective portion of the gain or loss on the hedging
instrument is recognised in OCI in the cash flow hedge
reserve, while any ineffective portion is recognised
immediately in the Statement of Profit and Loss.

Any gains or losses arising from changes in the fair value
of derivatives are taken directly to profit or loss, except
for the effective portion of cash flow hedges, which
is recognised in OCI and later reclassified to profit or
loss when the hedge item affects profit or loss and is
reclassified to underlying hedged item.

p) Impairment of financial assets

In accordance with Ind AS 109 Financial Instruments,
the Company applies expected credit loss (ECL) model
for measurement and recognition of impairment loss for
financial assets.

The Company tracks credit risk and changes thereon for
each customer. For recognition of impairment loss on
other financial assets and risk exposure, the Company
determines that whether there has been a significant
increase in the credit risk since initial recognition. If
credit risk has not increased significantly, 12-month ECL
is used to provide for impairment loss. However, if credit
risk has increased significantly, life time ECL is used. If
in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant increase
in risk since initial recognition, then the entity reverts
to recognising impairment loss allowance based on
12-month ECL.

- Cash flows from the sale of collateral held or
other credit enhancements that are integral to the
contractual terms.

The Company uses default rate for credit risk to determine
impairment loss allowance on portfolio of its trade
receivables.

allowance from the gross carrying amount.

b. Loan commitments and financial guarantee
contracts: ECL is presented as a provision in the
balance sheet, i.e. as a liability.

Trade receivables

The Company applies approach permitted by Ind AS
109 Financial Instruments, which requires expected
lifetime losses to be recognised from initial recognition of
receivables.

Other financial assets

q) Fair value measurement

The Company measures financial instruments, such as,
derivatives at fair value at each balance sheet date.

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the

use of relevant observable inputs and minimising the use
of unobservable inputs.

Level 1 - Quoted (unadjusted) market prices in active
markets for identical assets or liabilities;

Level 2 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable;

Level 3 - Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.

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

External valuers are involved for valuation of significant
assets, such as properties and unquoted financial assets,
and significant liabilities, such as contingent consideration.
Involvement of external valuers is decided upon annually
by the Management. Selection criteria include market
knowledge, reputation, independence and whether
professional standards are maintained. The Management
decides, after discussions with the Company''s external
valuers, which valuation techniques and inputs to use for
each case.

At each reporting date, the Management analyses the
movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per the
Company''s accounting policies. For this analysis, the
Management verifies the major inputs applied in the latest
valuation by agreeing the information in the valuation
computation to contracts and other relevant documents.

The Management also compares the change in the fair
value of each asset and liability with relevant external
sources to determine whether the change is reasonable.

On an interim basis, the Management present the valuation

results to the Audit Committee and the Company''s
independent auditors. This includes a discussion of the
major assumptions used in the valuations.

r) Cash and cash equivalent

s) Segment reporting

t) Earnings per Share (EPS)

u) Business combinations

Business combinations between entities under common
control is accounted for at carrying value under the
provisions of Ind AS 103, Business Combinations.

v) Share-based payments

The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using
an appropriate valuation model. That cost is recognised,
together with a corresponding increase in share-based
payment (SBP) reserves in equity, over the period in
which the performance and/or service conditions are
fulfilled in employee benefits expense. The dilutive effect
of outstanding options is reflected as additional share
dilution in the computation of diluted earnings per share.

w) Corporate Social Responsibility (CSR) expenditure

CSR expenditure as per provisions of Section 135 of
the Companies Act, 2013 read with the Companies
(Corporate Social Responsibility Policy) Rules, 2014, is
charged to the Statement of Profit and Loss as expense as
and when incurred.

2(ii) Changes in accounting policies and disclosures

There are no new accounting policies applied during the
current year

2(iii) New and amended standards

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after 1 April 2022. The Company has not
early adopted any other standard or amendment that has
been issued but is not yet effective:

(i) Ind AS 16 - Property, Plant and Equipment: Proceeds
before Intended Use

The Ministry of Corporate Affairs has notified Companies
(Indian Accounting Standard) Amendment Rules 2022
dated 23 March 2022,which is effective from 1 April 2022
to amend the Ind AS 16 to clarify that excess of net sale
proceeds of items produced over the cost of testing, if any,
shall not be recognised in the profit or loss but deducted
from the directly attributable costs considered as part of
cost of an item of property, plant, and equipment.

The amendments are effective for annual reporting
periods beginning on or after 1 April 2022. These
amendments had no impact on the standalone financial
statements of the company as there were no sales of such
items produced by property, plant and equipment made
available for use on or after the beginning of the earliest

period presented.

(ii) Ind AS 109 Financial Instruments - Fees in the ''10 per
cent'' test for derecognition of financial liabilities

The Ministry of Corporate Affairs has notified Companies
(Indian Accounting Standard) Amendment Rules 2022
dated 23 March 2022, which is effective from 1 April 2022
to amend the Ind AS 109 to clarify the fees that an entity
includes when assessing whether the terms of a new or
modified financial liability are substantially different from
the terms of the original financial liability. These fees
include only those paid or received between the borrower
and the lender, including fees paid or received by either
the borrower or lender on the other''s behalf.

The amendments are effective for annual reporting periods
beginning on or after 1 April 2022.These amendments
had no impact on the standalone financial statements of
the company as there were no modifications/exchange''s
of the Company financial instruments during the period.

(iii) Ind AS 37 - Onerous Contracts - Costs of Fulfilling a
Contract

The Ministry of Corporate Affairs has notified Companies
(Indian Accounting Standard) Amendment Rules 2022
dated 23 March 2022,which is effective from 1 April 2022
to clarify that an onerous contract is a contract under
which the unavoidable of meeting the obligations under
the contract costs (i.e., the costs that the Company cannot
avoid because it has the contract) exceed the economic
benefits expected to be received under it.

The amendments specify that when assessing whether
a contract is onerous or loss-making, an entity needs to
include costs that relate directly to a contract to provide
goods or services including both incremental costs (e.g.,
the costs of direct labour and materials) and an allocation
of costs directly related to contract activities (e.g.,
depreciation of equipment used to fulfil the contract and
costs of contract management and supervision). General
and administrative costs do not relate directly to a contract
and are excluded unless they are explicitly chargeable to
the counterparty under the contract.

The amendments are effective for annual reporting periods
beginning on or after 1 April 2022.These amendments
had no impact on the standalone financial statements of
the company as there were no contracts for which the
Company has not yet fulfilled all of its obligations.

(iv) Ind AS 103 - Reference to the Conceptual Framework

The amendments replaced the reference to the ICAI''s
"Framework for the Preparation and Presentation of
Financial Statements under Indian Accounting Standards"
with the reference to the "Conceptual Framework for

Financial Reporting under Indian Accounting Standard"
without significantly changing its requirements.

The amendments also added an exception to the
recognition principle of Ind AS 103 Business Combinations
to avoid the issue of potential ''day 2'' gains or losses arising
for liabilities and contingent liabilities that would be within
the scope of Ind AS 37 Provisions, Contingent Liabilities
and Contingent Assets or Appendix C, Levies, of Ind AS
37, if incurred separately. The exception requires entities
to apply the criteria in Ind AS 37 or Appendix C, Levies,
of Ind AS 37, respectively, instead of the Conceptual
Framework, to determine whether a present obligation
exists at the acquisition date.

The amendments also add a new paragraph to Ind AS
103 to clarify that contingent assets do not qualify for
recognition at the acquisition date.

These amendments had no impact on the standalone
financial statements of the Company as there were no
contingent assets, liabilities or contingent liabilities within
the scope of these amendments that arose during the
period.

2(iv) Standards notified but not yet effective

The Ministry of Corporate Affairs has notified Companies
(Indian Accounting Standards) Amendment Rules, 2023
dated 31 March 2023 to amend the following Ind AS
which are effective from 01 April 2023.

(i) Ind AS 8 - Definition of Accounting Estimates

The amendments clarify the distinction between changes
in accounting estimates and 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 are effective for annual reporting
periods beginning on or after 1 April 2023 and apply to
changes in accounting policies and changes in accounting
estimates that occur on or after the start of that period.

The amendments are not expected to have a material
impact on the standalone financial statements.

(ii) Ind AS 1 - Disclosure of Accounting Policies

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 to Ind AS 1 are applicable for annual
periods beginning on or after 1 April 2023. Consequential
amendments have been made in Ind AS 107.

The Company is currently revisiting their accounting policy
information disclosures to ensure consistency with the
amended requirements.

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

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.

The amendments should be applied to transactions that
occur on or after the beginning of the earliest comparative
period presented. In addition, at the beginning of the
earliest comparative period presented, a deferred tax
asset (provided that sufficient taxable profit is available)
and a deferred tax liability should also be recognised
for all deductible and taxable temporary differences
associated with leases and decommissioning obligations.
Consequential amendments have been made in Ind AS
101. The amendments to Ind AS 12 are applicable for
annual periods beginning on or after 1 April 2023.

The Company is currently assessing the impact of the
amendments.

Mar 31, 2018

1. GENERAL INFORMATION

AXISCADES Engineering Technologies Limited (âthe Companyâ/ âAXISCADESâ), a public limited company, operates in the business of Engineering Design Services. The Companyâs shares are listed for trading on the National Stock Exchange of India Limited and BSE Limited in India.

The Registered Office of the Company is âBlock C, Second Floor, Kirloskar Business Park, Bengaluru -560024, Karnataka, Indiaâ

Note:

a. For property, plant and equipment existing as on the date of transition to Ind AS, i.e., 1 April 2016, the Company has used fair value as at 1 April 2016 as deemed cost.

The land and building held by the Company at Noida, Uttar Pradesh was fair valued upwards as at 1 April 2016 based on an independent valuation carried out on 16 April 2018 and the resultant increase of Rs. 793.24 lakhs for land and Rs. 11.58 lakhs for building was credited to opening reserves.

Fair value of the properties was determined as follows:

Land:

Fair value of land was determined by using the market comparable method. This means that the valuations performed by the valuer are based on active market prices, significantly adjusted for difference in the nature, location or condition of the specific property. As at the date of fair valuation, the propertiesâ fair values are based on valuations performed by RBSA Valuation Advisors LLP, an accredited independent valuer who has relevant valuation experience for similar office properties in India.

Significant valuation input:

Price per square metre : Rs. 104,618

Building:

Fair value of building was determined by using the depreciated replacement cost method. Gross current replacement cost of each structure is assessed after considering different factors. According to the specifications and use of the building, its economical life is estimated and depreciation of construction by straight line method is calculated to arrive at the depreciated replacement cost of construction. As at the date of fair valuation, the propertiesâ fair values are based on valuations performed by RSBA Valuation Advisors LLP, an accredited independent valuer who has relevant valuation experience for similar office properties in India.

Other class of PPE (other than land and building) held by the Company

All other class of PPE (other than land and building) held by the Company was fair valued as at 1 April 2016 based on an independent valuation carried out on 16 April 2018. The fair value of these class of PPE approximates the carrying value as at 1 April 2016 as per previous GAAP and hence no gain / loss has been recognised.

Fair value of other class of PPE was determined by using depreciated replacement cost method. Gross current replacement cost of each item of PPE is assessed after considering different factors. According to the specifications and use of the items of PPE , its economical life is estimated and depreciation by straight line method is calculated to arrive at the depreciated replacement cost of PPE. As at the date of fair valuation, the propertiesâ fair values are based on valuations performed by J R S & Co, Chartered Accountants who has relevant valuation experience for similar office properties in India.

b. Contractual obligations

There are no contractual commitments for the acquisition of property, plant and equipment.

c. Capitalised borrowing cost

There is no borrowing costs capitalised during the year ended 31 March 2018 (31 March 2017: Nil; 1 April 2016: Nil).

d. Property, plant and equipment pledged as security

Details of properties pledged are as per note 16

e. Decommissioning cost

A provision has been recognised for decommissioning costs associated with the premises taken on lease. The Company is committed to decommissioning the premises as a result of improvements made to the premises (refer note 18).

a) During the financial year 2016 - 17, the Company has incorporated a wholly owned subsidiary on 16 August 2016 in Germany, namely, AXISCADES GmbH, to explore opportunities in the European region.

b) The Company entered into a Share Purchase Agreement (âSPAâ) effective December 1, 2017, to acquire 100% of the paid-up share capital of Mistral Solutions Private Limited (MSPL) in a phased manner from promoters and other shareholders of MSPL. MSPL is headquartered at Bengaluru, India and engaged in rendering end-to-end services for product design and development in the embedded space, design and development services covering hardware and software, customizable product designs, system integration and other related solutions. The fair value of the purchase consideration is determined at Rs. 24,213.97 lakhs and it will be payable over a period as per the terms of the SPA. Out of the aforesaid purchase consideration payable, Rs. 10,325.23 lakhs is disclosed under Other Non-current financial liabilities and Rs. 10,702.84 lakhs is disclosed under Other current financial liabilities.

As at 31 March 2018, trade receivables include a sum of Rs. 21.78 lakhs (31 March 2017: Rs. 21.78 lakhs; 1 April 2016: Rs. 23.71 lakhs) foreign currency receivables outstanding for more than 365 days. In this regard, the Company has filed for extension with its Authorised Dealer as per the required provisions of Foreign Exchange Management Act,1999.

No trade or other receivables are due from director or other officers of the Company either severally or jointly with any other person. Refer note 16 for details of assets pledged as security for borrowings.

(a) The Board of Directors approved Intercorporate Deposits (ICD) of â1,500 lakhs to AXISCADES Aerospace & Technologies Private Limited (ACAT), subsidiary of the Company, at an interest rate of the Companyâs maximum borrowing rate plus 1% per annum payable on a quarterly basis and other such terms and conditions that are on armâs length basis and in the ordinary course of business. During the year ended 31 March 2017, the Company had advanced further â125 lakhs to ACAT and the entire amount of ICD of â1,500 lakhs has been repaid by ACAT during the same year.

(b) Refer note 16 for details of assets pledged as security for borrowings.

1. Fixed deposits of a carrying amount Rs. 382.86 lakhs (31 March 2017: Rs. 409.98 lakhs; 1 April 2016: Rs. 409.98 lakhs) have been deposited as margin money at 10% against the packing credit facility loan availed from a bank.

2. Deposits of a carrying amount Rs. 31.79 lakhs (31 March 2017: Rs. 29.02 lakhs; 1 April 2016: Rs. 17.73 lakhs) have been deposited as bank guarantee towards lien on various authorities and customers.

3. Refer note 16 for assets pledged as security for borrowings.

b) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each equity share is entitled to one vote per share. Dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and shall be payable in Indian rupees. In the event of liquidation of the Company, the shareholders will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

e) I n the period of five years immediately preceding the Balance Sheet date, the Company has not issued any bonus shares or has bought back any shares.

f) Details of shares allotted for consideration other than cash (within five years preceding the Balance Sheet date)

* The Company had 271.90 lakhs equity shares of Rs. 5 each amounting to Rs. 1,361.01 lakhs that were subscribed and paid-up as at 1 April 2016. During the previous year, the Company had issued 105.70 lakhs equity shares of Rs. 5 each amounting to Rs. 528.50 lakhs pursuant to scheme of amalgamation (âschemeâ) (refer note 29) entered by the Company. In accordance with Appendix C, Business Combinations of entities under common control, of Ind AS 103, Business Combinations, the financial information in the financial statements in respect of prior periods have been restated as if the business combination had occurred from the beginning of the first period presented in the financial statements, irrespective of the actual date of combination. Consequent to the above, the opening balance of share capital and related disclosures have been restated.

Note: Securities premium

Securities premium is used to record the premium on issue of shares. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013.

capital reserve

Capital reserve is created pursuant to the common control business combination. The reserve will be utilised in accordance with the provisions of the Companies Act, 2013 (also refer note 29).

Other reserves

Other reserves includes re-measurement (losses) / gains on defined benefit obligation.

a) details of security for borrowings

(i) Packing credit facility in foreign currency (âPCFCâ) is from a bank are secured by first exclusive charge on current assets, exclusive charge on movable assets and second exclusive equitable mortgage on land and building of the Company situated at D-30, Sector 3, Noida, UP. Additionally, 10% cash margin in the form of fixed deposits lien to be maintained if PCFC availment exceeds Rs. 100 million.

(ii) Buyerâs Credit from a bank is secured by exclusive charge on both movable and immovable assets of the Company; first charge on land and building of the Company situated at D-30 Sector 3, Noida, UP.

(iii) Foreign currency Term Loan(âFCTLâ) from a bank is secured by the first pari passu charge on entire current assets and tangible property, plant and equipment of the Company both present and future including land and building of the Company situated at D-30, Sector 3, Noida, UP. Additionally, shares are pledged to the extent of 1.40 times of the exposure of both of the companies(i.e. the Company and AXISCADES Aerospace & Technologies Private Limited) with Mark to Market Clause.

(iv) Cash credit from banks is secured by the first pari passu charge on entire current assets and tangible property, plant and equipment of the Company both present and future including land and building of the Company situated at D-30, Sector 3, Noida, UP.

b) Terms of borrowings and rate of interest

(i) Packing credit in foreign currency from bank bearing an interest rate of 2.5% - 5.5% (31 March 2017 and 1 April 2016: 3% - 5%) are repayable over a maximum tenure of 180 days from the date of respective availment).

(ii) Buyerâs credit bearing an interest rate of 1.39% p.a. has been repaid during the previous year 2016-17.

(iii) I ntercorporate deposits from Jupiter Capital Private Limited for Rs. Nil (31 March 2017: Rs. 73.00 lakhs; 1 April 2016: Rs. 55.64 lakhs) carrying rate of interest at 12% per annum (31 March 2017: 12% per annum; 1 April 2016: 14% per annum) has been repaid during the year.

(iv) During the year the Company has availed Intercorporate deposits from Cades Studec Technologies (India) Private Limited aggregating Rs. 250.00 lakhs carrying rate of interest at 9% per annum.

(v) During the year the Company has availed term loan from bank aggregating USD 46.15 lakhs carrying an effective interest rate of 8.50% per annum. The loan is repayable in 16 quarterly instalments, after a moratorium of 1 year from the date of availment.

(vi) Cash credit from bank bears an interest rate of 11.55 % p.a. (31 March 2017 and 1 April 2016: 12.75%) and are repayable on demand over a maximum tenure of 12 months from the date of respective availment.

c) Loan covenants

Term loan from banks contain certain financial covenants such as debt service coverage ratio, total debt as a percentage of total net-worth etc. The Company has satisfied all other debt covenants prescribed in the terms of bank loan except debt service coverage ratio. The Management is of the view that this is a minor breach and hence no adjustments are made to standalone Ind AS financial statements in this respect.

Asset retirement obligation

The Company has recognised a provision for asset retirement obligation associated with premises taken on lease. In determining the fair value of the provision, assumptions and estimates are made in relation to the discount rates, the expected cost to dismantle and remove furniture and fixtures from the leased premises and the expected timing of these costs. The carrying amount of the provision as at 31 March 2018 is Rs. 19.24 lakhs (31 March 2017: Rs. 22.84 lakhs; 1 April 2016 : Rs. 20.18 lakhs). The Company estimates the costs would be realised within 4 - 5 years time upon the expiration of the lease and calculates the provision using the DCF method based on the following assumptions:

2. ScHEME OF amalgamation (âSCHEMEâ)

(a) The Board of Directors of the Company at its meeting held on 14 August 2015, had approved the acquisition of AXISCADES Aerospace & Technologies Private Limited (âACATâ), an aerospace, defence and homeland security technologies company by way of a Scheme of Amalgamation of India Aviation Training Institute Private Limited (âIATâ) with the Company. ACAT is a 100% subsidiary of IAT. The appointed date of the Scheme was 1 April 2016 and was subject to the approval of the majority of the shareholders and creditors of the Company and IAT, the Honâble High Court and the permission and approval of any other statutory or regulatory authorities, as applicable.

(b) Consequent to the approval of the Scheme of Amalgamation u/s 391 to 394 of the Companies Act, 1956 for the amalgamation of IAT with the Company, by the Honâble High Court of Karnataka on 4 November 2016, and effected on 5 December 2016 (effective date), being the date of filing with the Registrar of Companies, all the assets, liabilities and reserves of IAT were transferred to and vested in the Company with effect from 1 April 2016, the appointed date.

(c) Pursuant to the Scheme, the shareholders of IAT were eligible to receive 10 equity shares of the Company of par value of Rs. 5 each fully paid up for every 45 equity shares held in IAT of par value of Rs. 10 each fully paid up (âSwap ratioâ), with record date being 20 December 2016 as fixed by the Board of Directors of the Company. The Board of Directors of the Company at its meeting held on 30 December 2016, in terms of the said Scheme of Amalgamation has issued and allotted 10,569,937 new equity shares of the Company to the shareholders of IAT.

(d) In accordance with Part B of the Scheme, all the assets and liabilities of IAT were transferred to the Company with effect from the appointed date at the respective book values in the financial statements of IAT. Since, both the Company and IAT are under the common control of Jupiter Capital Private Limited, the holding Company, this transaction has been accounted in accordance with the Pooling of Interests Method outlined in IND AS 103 âBusiness Combinationâ, and the surplus of the net assets acquired over the consideration issued has been credited to Capital Reserve determined as follows:

(e) Consequent to the above, ACAT has become wholly owned subsidiary of the Company and ceases to be a fellow subsidiary of the Company. On account of which AXISCADES Aerospace Infrastructure Private Limited (âAAIPLâ) and Enertec Controls Limited (âEnertecâ), subsidiaries of ACAT, have become step-down subsidiaries of the Company.

(f) I n accordance with Appendix C, Business combinations of entities under common control, to Ind AS 103, Business combinations, the financial information in the financial statements in respect of prior periods have been restated as if the business combination had occurred from the beginning of the first period presented in the financial statements, irrespective of the actual date of combination. Therefore, the accounting for the scheme is effective from 1 April 2016 (also refer section C6 - 6 under note 45).

(i) Equity shares issued during the reporting period as part of the consideration for the scheme of amalgamation is included in the computation of weighted average number of shares from the beginning of the reporting period i.e. 1 April 2016, which is also the appointed date. This effect is given to the computation of EPS for the year ended 31 March 2017.

(a) As the future liability for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to individual is not ascertainable and therefore not included above.

3. DISCLOSURES IN RESPECT OF OPERATING LEASES

The lease expenses for cancellable and non-cancellable operating leases during the year ended 31 March 2018 is Rs. 1,174.61 lakhs (31 March 2017: Rs. 933.55 lakhs).

The details of lease commitments in terms of minimum lease payments within the non-cancellable period are as follows:

The Companyâs significant leasing arrangements in respect of operating leases for office premises, which includes both cancellable and non cancellable leases generally range between 11 months to 5 years and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under note 27 to the financial statements.

* The Company has committed to provide financial support, if required, to its subsidiary i.e. AXISCADES Inc.

4. CAPITAL MANAGEMENT

For the purpose of the Companyâs capital management, capital includes issued capital, additional paid in capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Companyâs capital management is to maximise the shareholder value.

In order to achieve this overall objective, the Companyâs capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period except as mentioned in note 16(c).

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Companyâs policy is to keep the gearing ratio below 20%. The Company includes within net debt interest bearing loans and borrowings, less cash and cash equivalents.

The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, other financial assets, trade payables and working capital loans approximate the carrying amount largely due to short-term maturity of these instruments.

(ii) Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are 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 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: I f one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

1) The Company enters into derivative financial instruments with financial institutions with investment grade credit ratings. Foreign exchange forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The valuation techniques uses the exchange rates provided by âForeign Exchange Dealersâ Association of Indiaâ for revaluation of balance in forward contracts as on the reporting dates.

(iii) valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

â the fair value of the mutual funds is determined using daily NAV as declared for the particular scheme by the Asset Management Company. The fair value estimates are included in level 2.

- the fair value of foreign exchange forward contracts is determined using market observable inputs, including prevalent forward rates for the maturities of the respective contracts and interest rate curves as indicated by banks and third parties.

â the fair value of other equity instruments have been computed based on income approach using a discounted cash flow model, which discounts the estimated cash flows using the appropriate discount rates.

(iv) valuation processes

The Corporate finance team has requisite knowledge and skills. The team headed by group CFO directly reports to the audit committee to arrive at the fair value of financial instruments.

5. financial risk management

The Companyâs activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Companyâs focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on itâs financial performance. The primary market risk to the Company is foreign exchange exposure risk. The Company uses derivative financial instruments to mitigate foreign exchange related risk exposures. The Companyâs exposure to credit risk is influenced mainly by the individual characteristic of each customer.

The Companyâs risk management activity focuses on actively securing the Groupâs short to medium-term cash flows by minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns.

The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Group is exposed are described below.

(A) Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 6,015.83 lakhs as of 31 March 2018 [31 March 2017: Rs. 4,557.77 lakhs; 1 April 2016: Rs. 6,178.85 lakhs].

Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India and Europe. Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, Financial Instruments, the Company uses expected credit loss model to assess the impairment loss or gain. The provision for expected credit loss takes into account available external and internal credit risk factors including the credit ratings of the various customers and Companyâs historical experience with customers.

Credit risk exposure

The allowance for life time expected credit loss on customer balances for the year ended 31 March 2018, 31 March 2017 and 1 April 2016 is Rs. 2.57 lakhs, Rs. 3.21 lakhs and Rs. 3.21 lakhs respectively. The reversal for lifetime expected credit loss on customer balances for the year ended 31 March 2018 is Rs. 0.64 lakhs [31 March 2017: Rs. Nil] [01 April 2016: Rs. Nil].

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks with high credit ratings as signed by international and domestic credit rating agencies.

Financial assets that are neither past due nor impaired

Cash and cash equivalents, advances to subsidiary, loans and advances to employees, security deposit, other financial assets and unbilled revenue are neither past due nor impaired.

Financial assets that are past due but not impaired

There is no other class of financial assets that is past due but not impaired except for receivables of Rs. 2.57 lakhs, Rs. 3.21 lakhs and Rs. 3.21 lakhs as at 31 March 2018, 31 March 2017 and 1 April 2016, respectively. The Companyâs credit period generally ranges from 60-180 days from invoicing date. The aging analysis of the receivables has been considered from the date the invoice falls due. The age wise break up of receivables, net of allowances that are past due, is given below:

(B) Liquidity risk

The Companyâs principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived. As of 31 March 2018, the Company has a negative working capital of Rs. 6,543.98 lakhs including cash and cash equivalents of Rs. 765.06 lakhs. As of 31 March 2017, the Company had a working capital of Rs. 5,810.12 lakhs including cash and cash equivalents of Rs. 1,913.88 lakhs. As of 1 April 2016, the Company had a working capital of Rs. 4,561.74 lakhs including cash and cash equivalents of Rs. 940.36 lakhs. The management is confident of paying its dues. Accordingly, no liquidity risk is perceived.

(C) Market risk

Foreign currency sensitivity

The Company operates internationally and a significant portion of the business is transacted in USD and EURO currencies and consequently the Company is exposed to foreign exchange risk through its sales and purchases from overseas suppliers in various foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate between the rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Companyâs operations are adversely affected as the rupee appreciates/ depreciates against these currencies.

Sensitivity

The following table details the Companyâs sensitivity to a 1% increase and decrease in the â against the relevant foreign currencies net of forward contracts. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 1% change in foreign currency rates, with all other variables held constant. A positive number below indicates an increase in profit or equity where â strengthens 1% against the relevant currency. For a 1% weakening of â against the relevant currency, there would be a comparable impact on profit or equity, and the balances below would be negative.

Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace.

The following table gives details in respect of outstanding foreign exchange forward contracts

The foreign exchange forward contracts mature within twelve months. The table below analyses the derivative financial instruments into relevant maturity groupings based on the remaining period as of the Balance Sheet date:

Interest rate risk

The Companyâs fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, Financial Instruments- Disclosures, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

6. defined benefit obligations

The Company has provided for the gratuity liability (defined benefit plan), as per actuarial valuation carried out by an independent actuary on the Balance Sheet date.

A Defined benefit contributions India

The Company makes contribution to statutory provident fund as per Employees Provident Fund and Miscellaneous Provision Act, 1952 for its employees. This is a defined contribution plan as per Ind AS 19, Employee benefits. Contribution made during the year ended 31 March 2018 is Rs. 363.02 lakhs [31 March 2017: Rs. 345.06 lakhs].

Overseas social security

The Company makes a contribution towards social security charges for its employees located at the respective branch offices in respective foreign geographies, that are defined contribution plans. The contributions paid or payable is recognised as an expense in the period in which the employee renders services in respective geographies. Contribution made during the year ended 31 March 2018: Rs. 904.14 lakhs [31 March 2017: Rs. 845.71 lakhs].

B Defined benefit plans

The Company has provided for gratuity, for its employees as per actuarial valuation carried out by an independent actuary on the Balance Sheet date. The valuation has been carried out using the Project Unit Credit Method as per Ind AS 19 to determine the present value of Defined Benefit Obligations and the related current service cost. This is a defined benefit plan as per Ind AS 19.

The gratuity plan is governed by the provisions of the Payment of Gratuity Act, 1972 (as amended from time to time). Employees are entitled to all the benefits enlisted under this Act.

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

a Interest rate risk

b Liquidity risk

This is the risk that the Company is not able to meet the short-term gratuity payouts.This may arise due to non availability of enough cash/cash equivalents to meet the liabilities or holding of illiquid assets not being sold in time.

c Salary escalation risk

d Demographic risk

e Regulatory risk

The assumptions were developed by management with the assistance of independent actuaries. Discount factors are determined close to each year-end by reference to market yields of Government bonds that have terms to maturity approximating to the terms of the gratuity obligation. Other assumptions are based on current actuarial benchmarks and managementâs historical experience.

A quantitative sensitivity analysis for significant assumption as at 31 March 2018 is as shown below:

There is no change in the method and assumptions used in preparing the sensivity analysis from previous years.

(v) Effect of plan on entityâs future cash flows

The scheme is managed on an unfunded basis and hence, no funding arrangements or future contributions are applicable. The weighted average duration of the plan is estimated to be 14 years. Following is a maturity profile of the defined benefit obligation as at 31 March 2018 and 31 March 2017.

7. SEGMENT INFoRMATioN

The Board of Directors of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS 108, Operating Segments. The CODM evaluates the Companyâs performance and allocates resources based on an analysis of engineering services.

The Company is primarily engaged in a single segment i.e., engineering services. As the Companyâs business activity primarily falls within a single segment, there are no additional disclosures to be provided in terms of Ind AS 108 on âOperating Segmentsâ.

8. CORPORATE SOCIAL RESPONSIBILITY

Pursuant to the provisions of Section 135 of the Act and the Rules made thereunder, the gross amount required to be spent by the Company during the year ended 31 March 2018 amounts to Rs. 51 lakhs (31 March 2017: Rs. 44.75 lakhs). The Company has paid Rs. 51.00 lakhs (31 March 2017: Rs. 45.00 lakhs) to three non-government organisations engaged in the field of development of skills of under-privileged children, enabling them to overcome adversity and flourish in a fast changing world.

9. TRANSFER PRICING

The Finance Act, 2001 has introduced, with effect from Assessment Year 2002-03 (effective 1 April 2001), detailed Transfer Pricing regulations for computing the taxable income and expenditure from âinternational transactionsâ between âassociated enterprisesâ on an âarmâs lengthâ basis. These regulations, inter alia, also require the maintenance of prescribed documents and information including furnishing a report from an Accountant within due date of filing the Return of Income. The Company is in the process of updating the Transfer Pricing documentation for the financial year ended 31 March 2018 following a detailed transfer pricing study conducted for the financial year ended 31 March 2017. In the opinion of the Management, the same would not have an impact on these financial statements. Accordingly, these financial statements do not include the effect of the transfer pricing implications, if any.

* The Company has received service tax orders from the service tax authorities arising primarily on levy of service tax on business auxiliary service under reverse charge mechanism for period 2006 - 2010. The Companyâs appeal against the said demands are pending before Customs, Excise and Service Tax Appellate Tribunal (âCESTATâ).

The Company is contesting the demands/ litigations and the Management believes that its position will be upheld in the appellate process and therefore, will not impact these financial statements. Consequently, no provision has been created in the financial statements for the above.

10. FIRST TIME ADOPTION OF IND AS

These financial statements, for the year ended 31 March 2018, are the first financial statements the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at 1 April 2016, the Companyâs date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

A Ind AS optional exemptions Al. Deemed cost for property, plant and equipment, investment property and intangible assets

I nd AS 101, First-time Adoption of Indian Accounting Standards, permits a first-time adopter to elect to fair value for all of its property, plant and equipment and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. Ind AS 101, First-time adoption of Indian Accounting Standards, also permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as on the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment at their fair value as at the transition date and use that as deemed cost as on the date of transition. The Company has elected to measure its intangible assets at their previous GAAP carrying value.

A2. Deemed cost for investments in subsidiaries

Ind AS 101, First-time Adoption of Indian Accounting Standards, permits a first-time adopter to elect to continue with the carrying value for investments in subsidiaries as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. Accordingly, the Company has elected to measure its investments in subsidiaries in the standalone financial statements at their previous GAAP carrying value.

A3. Lease

Appendix C to Ind AS 17, Leases, requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, Leases, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101, First-time Adoption of Indian Accounting Standards, provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material.

The Company has elected to apply this exemption for such contracts/arrangements.

B. Ind AS mandatory exemptions B1. Estimates

I n accordance with Ind AS, as at the date of transition to Ind AS an entityâs estimates shall be consistent with the estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

I nd AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP except for impairment of financial assets based on ECL and recognition of asset retirement obligation on the date of transition as they were not required as per previous GAAP.

B2. Classification and measurement of financial assets and liabilities

The classification and measurement of financial assets will be made considering whether the conditions as per Ind AS 109, Financial Instruments are met based on facts and circumstances existing at the date of transition.

Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to assess elements of modified time value of money i.e. the use of effective interest method, fair value of financial asset at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.

Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. It is impracticable to apply the changes retrospectively if:

a) The effects of the retrospective application or retrospective restatement are not determinable; or

b) The retrospective application or restatement requires assumptions about what managementâs intent would have been in that period; or

c) The retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that existed at that time.

B3. De-recognition of financial assets and liabilities

Ind AS 101, First-time Adoption of Indian Accounting Standards, requires a first-time adopter to apply the de-recognition provisions of Ind AS 109, Financial Instruments, prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101, First-time Adoption of Indian Accounting Standards, allows a first-time adopter to apply the de-recognition requirements in Ind AS 109, Financial Instruments, retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109, Financial Instruments, to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109, Financial Instruments, prospectively from the date of transition to Ind AS.

C. Reconciliations between previous GAAP and Ind AS

Ind AS 101, First-time Adoption of Indian Accounting Standards, requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS as at the periods specified below.

C1. Reconciliation of other equity

The Company has also prepared a reconciliation of equity as at 31 March 2017 and 1 April 2016 under the previous GAAP with the equity as reported in these financial statements under Ind AS, that reflect the impact of Ind AS on the components of Balance sheet which is presented below:

C6. Notes 1. Reversal of rent recorded on account of straightlining of lease rentals

Under previous GAAP, the Company was straightlining the lease rental payables, over the term of the lease and accordingly creating provision for lease rent. Under Ind AS 17, Leases, if the escalation in the rent as per the agreement is in-line with the average general inflation rate of the country in which the asset is located, then straight-lining of the rent over the lease term is not required. In the current circumstance these escalations approximate the general inflation applicable and hence the impact of this has been reversed.

2. Asset retirement obligation

As per Ind AS 16, Property, Plant and Equipment, the cost of an item of property, plant and equipment includes the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Decommissioning liability is measured at best estimate of cost required to settle the liability, discounted to its present value at the time when asset becomes ready to use, using pre tax discount rate that reflects market assessment of time value of money between date of capitalisation and time of settlement of such obligation. The adjustment made in fixed assets is depreciated over its expected useful life and interest recognised on corresponding provision using the aforementioned discount rate that accretes the provision to the amount expected to be settled in future.

3. Borrowings and other financial liabilities

Under previous GAAP, all financial liabilities were carried at cost. Under Ind AS 109 , Financial Instruments, borrowings from related parties have been measured at amortised cost. The difference between carrying value of borrowings and fair value on initial recognition has been considered as additional contribution by the related parties and shown as part of âOther equityâ. Interest expenses on amortised cost is charged to the Statement of Profit and Loss using the effective interest method.

4. Long -term trade receivables

Under Ind AS, long term trade receivables are measured at amortised cost and the difference between the carrying value and fair value on initial recognition has been accounted in retained earnings.

5. Expected credit loss assessment for trade receivables

Under previous GAAP, the Company has created a provision for impairment of receivables only with respect to specific amount for losses incurred . Under Ind AS 109, Financial Instruments, impairment allowance has been determined based on Expected Loss model (ECL) on application of the ECL model, the Company impaired part of itâs trade receivable on 1 April 2016 which has been adjusted with retained earnings. The impact for year ended on 31 March 2017 has been recognised in the Statement of Profit and Loss.

6. Accounting for the Scheme of Amalgamation

Under the previous GAAP, the Company had accounted for the merger of IAT, an entity under the common control of Jupiter Capital Private Limited, the Holding Company on pooling of interest method. Although the appointed date of the merger was 1 April 2016, this transaction was accounted from the date of the approval by the honourable High Court of Karnataka received on 4 November 2016 under the previous GAAP.

Under Ind AS, common control transactions are accounted for using the pooling of interest method similar to previous GAAP. However, the financial information in the financial statements in respect of prior periods shall be restated as if the business combination had occurred from the beginning of the preceding period in the financial statements, irrespective of the actual date of combination. Therefore, this merger has been effected from 1 April 2016 (the appointed date of the merger).

7. Income tax

Under previous GAAP, deferred tax was accounted using the income statement approach, on the timing differences between the taxable profit and accounting profits for the period. Under Ind AS 12, Income Tax, deferred taxes are recognized following the balance sheet approach on the temporary differences between the carrying amount of asset or liability in the balance sheet and its tax base. The application of Ind AS 12, has resulted in recognition of deferred tax on new temporary differences which was not required under previous GAAP primarily relating to transactional adjustments pertaining to Ind AS. Deferred tax adjustments are recognised in co-relation to the underlying transaction either in retained earnings or a separate component of equity.

8. other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the Statement of Profit and Loss as âother comprehensive incomeâ includes effective portion of gains and losses on cash flow hedging instruments on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

9. Defined benefit obligation

Under previous GAAP, actuarial gains and losses were recognized in the Statement of profit and loss, and interest cost was recognized under employee benefit expense. Under Ind AS, the actuarial gain and loss form part of remeasurement of net defined benefit liability/ asset which is recognised in other comprehensive income in the respective periods. Interest cost on defined benefit obligations shall be presented under finance cost in the Statement of Profit and Loss.

10. Property, plant and equipment

On transition to Ind AS, the Company has elected to fair value of all of its property, plant and equipment recognised as at 1 April 2016 and use that fair value as the deemed cost of the property, plant and equipment. Consequent to the above, depreciation has been adjusted for the year ended 31 March 2017.

11. Cash flow statement

Under Ind AS 7, Statement of cash flows, bank borrowings are generally considered to be financing activities. However, where bank overdrafts which are repayable on demand form an integral part of an entityâs cash management, bank overdrafts are included as a component of cash and cash equivalents.

12. Revenue from operations

The Company has entered into forwards contracts to hedge its revenue from foreign currency fluctuations. The unrealised gain/(loss) on such hedges are recognised in the hedge reserve. Under Previous GAAP, the gain/(loss) on such hedges were reclassified to the Statement of Profit and Loss under other income/expense (foreign exchange gain/loss) on maturity of such contracts. Under Ind AS, the gains/(losses) are recognised in revenue.

13. Other equity

Adjustments to retained earnings and other comprehensive income has been made in accordance with Ind AS, for the above mentioned line items.

11 . The comparative financial information of the Company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 01, 2016, prepared in accordance with Ind AS included in this financial statements have been audited by Walker Chandiok & Co LLP, Chartered Accountants, vide their report dated May 07, 2018, who had audited the financial statements for the relevant periods.

12. PREVIOUS YEAR COMPARATIVES

Previous years figures have been regrouped / reclassified wherever necessary, to conform to this yearâs classification.

Mar 31, 2017

1. Details of security for borrowings

Working capital loans (inclusive of packing credit facility in foreign currency âPCFCâ) from a bank are secured by first exclusive charge on current assets, exclusive charge on movable assets and second exclusive equitable mortgage on land and building of the Company situated at D-30, Sector 3, Noida, UP Additionally, 10% cash margin in the form of fixed deposits lien to be maintained if PCFC availment exceeds Rs.100 million.

Buyer''s Credit from a bank is secured by exclusive charge on both movable and immovable assets of the Company; first charge on land and building of the Company situated at D-30 Sector 3, Noida, UP

2. Terms of borrowings and rate of interest

Working capital loans consists of packing credit facility in foreign currency and bank overdraft. Packing credit in foreign currency from bank bearing an interest rate of 3% - 5% (31 March 2016: 3% - 5%) are repayable over a maximum tenure of 180 days from the date of respective availment. Bank overdraft bears an interest rate of 12.75 % p.a. (31 March 2016: 12.75 %).

Buyerâs credit bearing an interest rate of 1.39% p.a. has been repaid during the year.

3. Intercorporate deposit from Holding Company

Intercorporate deposits from Jupiter Capital Private Limited for Rs.7,300,000 (31 March 2016: Rs.Nil) carrying rate of interest at 12% per annum repayable on 30 May 2019.

4. Defined contribution plan

The Company makes a contribution of statutory provident fund as per Employees Provident Fund and Miscellaneous Provision Act, 1952 for its Indian employees. This is a defined contribution plan as per AS 15. Contribution made during the year ended 31 March 2017 is Rs.34,268,873 (31 March 2016: Rs.29,422,283).

5. overseas social security

The Company makes a contribution towards social security charges for its employees located at the respective branch offices in respective foreign geographies, that are defined contribution plans. The contributions paid or payable is recognized as an expense in the period in which the employee renders services in respective geographies. Contribution made during the year ended 31 March 2017 is Rs.84,571,167 (31 March 2016: Rs.75,632,645).

The Company has no obligation beyond the contribution made under these plans referred to in (b) and (c) above.

6. The management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006 (MSMEDA). Accordingly, the disclosure in respect of the amounts payable to such enterprises, if any, as at 31 March 2017 has been made in the financial statements based on information received and available with the Company. Further, in the view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the MSMEDA is not expected to be material.

7. The Board of Directors approved Intercorporate Deposits (ICD) of Rs.150,000,000 to AXISCADES Aerospace & Technologies Private Limited (ACAT), subsidiary of the Company, at an interest rate of the Company''s maximum borrowing rate plus 1% per annum payable on a quarterly basis and other such terms and conditions that are on arm''s length basis and in the ordinary course of business. The Company had advanced Rs.12,500,000 to ACAT during the year ended 31 March 2017 and the entire amount of ICD has been repaid by ACAT during the year.

8. SCHEME OF AMALGAMATION (SCHEME)

9. The Board of Directors of the Company at its meeting held on 14 August 2015, had approved the acquisition of AXISCADES Aerospace & Technologies Private Limited (âACATâ), an aerospace, defense and homeland security technologies company by way of a Scheme of Amalgamation of India Aviation Training Institute Private Limited (âIATâ) with ACETL. ACAT is a 100% subsidiary of IAT. The appointed date of the Scheme was 1 April 2016 and was subject to the approval of the majority of the shareholders and creditors of ACETL and IAT, the Honâble High Court and the permission and approval of any other statutory or regulatory authorities, as applicable.

10. Consequent to the approval of the Scheme of Amalgamation u/s 391 to 394 of the Companies Act, 1956 for the amalgamation of IAT with the Company, by the Honâble High Court of Karnataka on 4 November 2016, and effected on 5 December 2016 (effective date), being the date of filing with the Registrar of Companies, all the assets, liabilities and reserves of IAT were transferred to and vested in the Company with effect from 1 April 2016, the appointed date. These financial statements accordingly have been given effect of the Scheme of Amalgamation.

11. Pursuant to the Scheme, the shareholders of IAT are eligible to receive 10 equity shares of the Company of par value of Rs.5 each fully paid up for every 45 equity shares held in IAT of par value of Rs.10 each fully paid up (âSwap ratioâ), with record date being 20 December 2016 as fixed by the Board of Directors of the Company. The Board of Directors of the Company at its meeting held on 30 December 2016, in terms of the said Scheme of Amalgamation has issued and allotted 10,569,937 new equity shares of the Company to the shareholders of IAT.

12. In accordance with Part B of the Scheme, all the assets and liabilities of IAT were transferred to the Company with effect from the appointed date at the respective book values in the financial statements of IAT In accordance with the Pooling of Interests Method outlined in AS-14 âAccounting for Amalgamationsâ prescribed by the Companies (Accounting Standard) Rules, 2006, the surplus of the net assets acquired over the consideration issued has been credited to Capital Reserve determined as follows:

13. Consequent to the scheme, ACAT has become wholly owned subsidiary of the Company and ceases to be a fellow subsidiary of the Company. On account of which AXISCADES Aerospace Infrastructure Private Limited (âAAIPL) and Enertec Controls Limited (âEnertec''), subsidiaries of ACAT, have become step-down subsidiaries of the Company.

14. Consequent to the scheme, the figures for the year ended 31 March 2017 are not comparable with the corresponding figures for the year ended 31 March 2016.

15. SEGMENT REPORTING

The single financial report of the Company would contain the separate financial statements and consolidated financial statements, including segment information, therefore no separate disclosure on segment information is given in these standalone financial statements.

16. related party disclosures

17. Parties where control exists:

Nature of relationship Name of party

Holding Company Jupiter Capital Private Limited (JCPL)

Subsidiary companies AXISCADES, Inc. (formerly known as Axis, Inc.)

AXISCADES UK Limited (formerly known an as Axis EU Europe Limited, a step down subsidiary) Cades Studec Technologies (India) Private Limited

AXISCADES Technology Canada Inc. (formerly known an as Cades Technology Canada Inc.) AXIS Mechanical Engineering Design (Wuxi) Co., Ltd.

AXISCADES GmbH

AXISCADES Aerospace & Technologies Private Limited [refer note 24 (f)]

Enertec Controls Limited, a step down subsidiary [refer note 24 (f)]

AXISCADES Aerospace Infrastructure Private Limited (formerly known as Jupiter Aviation Services Pvt Ltd, a step down subsidiary) [refer note 24 (f)]

18. Name and relationship of related parties where transaction has taken place:

Subsidiary AXISCADES Aerospace & Technologies Private Limited [refer note 24 (f)]

Fellow subsidiary Indian Aero Ventures Private Limited

19. Key management personnel:

Vice Chairman and Executive Director Mr. Sudhakar Gande

Chief Executive Officer and Director Mr. Valmeekanathan S. (resigned as Chief Executive Officer w.e.f. 8 January 2017)

Chief Financial Officer Mr. Kaushik Sarkar

20. disclosure on Specified bank notes (SBNs)

During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated 31 March 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from 8 November 2016 to 30 December 2016, the denomination wise SBNs and other notes as per the notification is given below:

21. TRANSFER PRICING

The Finance Act, 2001 has introduced, with effect from Assessment Year 2002-03 (effective 1 April 2001), detailed Transfer Pricing regulations for computing the taxable income and expenditure from âinternational transactions'' between âassociated enterprises'' on an âarm''s length'' basis. These regulations, inter alia, also require the maintenance of prescribed documents and information including furnishing a report from an Accountant within due date of filing the Return of Income. The Company is in the process of updating the Transfer Pricing documentation for the financial year ended 31 March 2017 following a detailed transfer pricing study conducted for the financial year ended 31 March 2016. In the opinion of the management, the same would not have an impact on these financial statements. Accordingly, these financial statements do not include the effect of the transfer pricing implications, if any.

22. PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped / reclassified wherever necessary, to conform to current year''s classification [refer note 24 (g)].

Mar 31, 2016

(b) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs, 5 per share. Each equity share is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting shall be payable in Indian rupees. In the event of liquidation of the company, the shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(a) Details of security for borrowings

Term loan from a bank is secured by exclusive charge on both movable and immovable assets of the Company and by first charge on land and building of the Company situated at D-30 Sector 3, Noida, UP

Buyer''s Credit from a bank is secured by exclusive charge on both movable and immovable assets of the Company; first charge on land and building of the Company situated at D-30 Sector 3, Noida, UP

(b) Terms of borrowings and rate of interest

Term loan bearing an interest rate of Bank''s base rate plus 2.50% subject to a minimum of 13%, is repayable from May 2015 over 30 equal monthly installments post a moratorium of 6 months. (31 March 2015: term loans having an interest rate of bank''s base rate plus 2.50% subject to a minimum of 13%, were repayable from May 2015 over 30 equal quarterly installments.)

Working capital loans consists of packing credit facility in foreign currency and bank overdraft. Packing credit in foreign currency from bank bearing an interest rate of 3% - 5% (31 March 2015: 3% - 6%) are repayable over a maximum tenure of 180 days from the date of respective a ailment. Bank overdraft bears an interest rate of 12.75 % p.a.

Buyer''s credit is repayable on 5 August 2016 bearing an interest rate of 1.39% p.a.

(b) Defined contribution plan

The Company makes contribution of statutory provident fund as per Employees Provident Fund and Miscellaneous Provision Act, 1952 for its Indian employees. This is a defined contribution plan as per AS 15. Contribution made during the year ended 31 March 2016 is Rs, 29,422,283 (31 March 2015: Rs, 24,308,361).

The Company makes contribution towards social security charges for its employees located at the respective branch offices in respective foreign geographies, which is a defined contribution plan. The contributions paid or payable is recognized as an expense in the period in which the employee renders services in respective geographies. Contribution made during the year ended 31 March 2016 is Rs, 75,632,645 (31 March 2015: Rs, 65,578,045).

* Includes dues to subsidiaries of Rs, 23,500,107 (31 March 2015: Rs, Nil) (Also, refer note 27)

(a) The management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006 (MSMEDA). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2016 has been made in the financial statements based on information received and available with the Company. Further, in the view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the MSMEDA is not expected to be material.

(a) The Board of Directors approved an ICD of Rs, 150,000,000 to AXISCADES Aerospace & Technologies Private Limited (ACATPL), a fellow subsidiary of the Company, at an interest rate of Company''s maximum borrowing rate plus 1% per annum payable on a quarterly basis and other such terms and conditions that are on arm''s length basis and in the ordinary course of business. The Company has advanced Rs, 137,500,000 to ACATPL during the year ended 31 March 2016. The ICD extended is in the nature of working capital assistance to ACATPL for a period of two years from the effective date of the ICD agreement. This amount may be extended beyond the two years period based on mutual agreement.

*Advances recoverable in cash or kind

As at 31 March 2016, trade receivables include a sum of Rs, 2,370,765 (31 March 2015: Rs, 9,543,335) foreign currency receivables outstanding for more than 365 days. In this regard, the Company has filed for extension with its Authorized Dealer as per the required provisions of Foreign Exchange Management Act,1999.

(a) Fixed deposits given as security:

1. Fixed deposits of a carrying amount Rs, 40,998,265 (31 March 2015: Rs, 32,036,959) have been deposited as margin money at 10% against the Packing credit facility loan availed from a bank.

2. Deposits of a carrying amount Rs, 1,772,994 (31 March 2015: Rs, 718,200) have been deposited as bank guarantee towards lien on various authorities and customers.

(a) The Board of Directors of ACETL at its meeting held on 14 August 2015, has approved the acquisition of AXISCADES Aerospace & Technologies Private Limited (âACATLâ), an aerospace, defense and homeland security technologies company by way of a Scheme of Amalgamation of India Aviation Training Institute Private Limited (âIATâ) with AXISCADES Engineering Technologies Limited (âACETLâ). ACATL is 100% subsidiary of IAT. Shareholders of IAT (holding company of ACATL) will receive 10 (ten) shares in ACETL for every 45 (forty five) shares held by them in IAT. The transaction is proposed to be completed via a Scheme of Amalgamation. The appointed date of the Scheme is 1 April 2016 or any other date as may be directed by the Hon''ble Court of Karnataka and the Scheme is subject to the approval of the requisite shareholders and creditors of ACETL and IAT, the Honourable High Court and the permission and approval of any other statutory or regulatory authorities, as applicable. The Company has filed the draft Scheme of Amalgamation with the Stock Exchanges under clause 24(f) of the Listing Agreement on 2 September 2015. No complaints with this respect have been received from any stakeholder during the specified period and the Report as on 13 October 2015 has been submitted to that effect with the Stock

Exchanges. Further, the Scheme has got the approval from the shareholders and creditors on 25 April 2016 in the Court Convened Meeting and petition to that effect has been filed with the Hon''ble High Court of Karnataka.

(b) Pursuant to the allotment of equity shares as per the Scheme (Also, refer note 3 (a)), the Company has remitted stamp duty expense on the transaction amounting to Rs, Nil during the year March 2016 (31 March 2015: Rs, 22,294,578).

3. SEGMENT REPORTING

4. RELATED PARTY DISCLOSURES

i. Parties where control exists:

Nature of relationship Name of party

Holding Company Jupiter Capital Private Limited (JCPL)

Subsidiary companies Axis Inc.

AXISCADES UK Limited (formerly known an as Axis EU Europe Limited, a step down subsidiary) Cades Studec Technologies (India) Private Limited

AXISCADES Technology Canada Inc. (formerly known as Cades Technology Canada Inc.)

Axis Mechanical Engineering Design (Wuxi) Co., Ltd.

ii. Name and relationship of other related parties

Fellow subsidiary AXISCADES Aerospace & Technologies Private Limited

iii. Key management personnel:

Vice Chairman and Executive Director Mr. Sudhakar Gande (appointed w.e.f. 14 August 2015)

Chief Executive Officer and Director Mr. Valmeekanathan S.

Chief Financial Officer Mr. Kaushik Sarkar (resigned as Director w.e.f. 25.06.2015)

* During the year ended 31 March 2016, the Company had made an application to the Central Government under Section 196 and 197 read with Schedule V of the Companies Act, 2013 seeking approval to authorize the payment of managerial remuneration in excess of the limits as laid down in Section 197(1) of the Companies Act, 2013 to Mr. Sudhakar Gande, who has been appointed as a Whole Time Director of the Company w.e.f. 14 August 2015. On 2 May 2016, the Central Government in terms of Section 197(3) of the Companies Act, 2013 has approved the remuneration payable to the aforesaid managerial personnel from the date of the appointment and consequently, the Company has recorded managerial remuneration payable as per the terms of appointment for the financial year ended 31 March 2016.

5. DISCLOSURES IN RESPECT OF NON-CANCELLABLE OPERATING LEASES

The lease expenses for cancellable and non-cancellable operating leases during the year ended 31 March 2016 was Rs, 87,495,560 (31 March 2015: Rs, 82,072,820).

The Company''s significant leasing arrangements in respect of operating leases for office premises, which includes both cancellable and non cancellable leases and range between 11 months and 9 years generally and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note 22 to the financial statements.

6. CORPORATE SOCIAL RESPONSIBILITY

Pursuant to the provisions of Section 135 of the Act and the Rules made there under, the gross amount required to be spent by the Company during the year ended 31 March 2016 amounts to Rs, 2,484,000 (31 March 2015: Rs, 1,937,000). The Company has paid Rs, 2,484,000 to three non-government organizations engaged in the field of development of skills of under-privileged children, enabling them to overcome adversity and flourish in a fast changing world.

7. TRANSFER PRICING

The Company is required to use certain specified methods in computing arm''s length price of international transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions / class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of updating the Transfer Pricing documentation for the financial year ending 31 March 2016 following a detailed transfer pricing study conducted for the financial year ended 31 March 2015. In the opinion of the management, the same would not have an impact on these financial statements. Accordingly, these financial statements do not include the effect of the transfer pricing implications, if any.

8. PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped / reclassified wherever necessary, to conform to current year''s classification.

Mar 31, 2015

1 Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each equity share is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting shall be payable in Indian rupees. In the event of liquidation of the company, the shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Details of security for borrowings

Term loan from a Bank is secured by exclusive charge on both moveable and immoveable assets of the company; first charge on land and building of the Company situated at D-30 Sector 3, Noida, UP and by a corporate guarantee from AXISCADES Aerospace & Technologies Private Limited for Rs. 50 million (31 March 2014: Rs. 150 million).

Working capital loans (inclusive of packing credit facility in foreign currency) from a bank are secured by first exclusive charge on current assets, exclusive charge on movable assets and second exclusive equitable mortgage on land and building of the Company situated at D-30, Sector 3, Noida, UP and by a corporate guarantee from AXISCADES Aerospace & Technologies Private Limited for Rs. 302.5 million (31 March 2014: Rs. 200 million). Additionaly, 20% cash margin in the form of fixed deposits lien to be maintained if PCFC availment exceeds Rs. 102.5 million.

3 Terms of borrowings and rate of interest

Term loans having an interest rate of Bank's base rate plus 2.50 % subject to a minimum of 13% are repayable from May 2015 over 30 equal monthly instalments post a moratorium of 6 months.(31 March 2014: term loans having an interest rate of bank's base rate plus 2.50% were repayable from March 2014 over 10 equal quarterly instalments.)

Packing credit in foreign currency from bank bearing an interest rate of 3% - 6% (31 March 2014: 3% - 6%) are repayable over maximum tenure of 180 days from the date of respective availment.

Intercorporate deposits carrying an interest rate of 11% (31 March 2014: 11%) per annum has been fully repaid in the current year.

4 Defined contribution plan

The Company makes contribution of statutory provident fund as per Employees Provident Fund and Miscellaneous Provision Act, 1952. This is a defined contribution plan as per AS 15. Contribution made during the year ended 31 March 2015 is Rs. 24,308,361 (31 March 2014 : Rs. 20,948,824).

5 Overseas social security

The Company makes contribution towards social security charges for its employees located at the respective branch offices in respective foreign geographies, which is a defined contribution plan. The contributions paid or payable is recognised as an expense in the period in which the employee renderssen/ices in respective geographies. Contribution made during the year ended 31 March 2015 is Rs. 65,578,045 (31March2014:C 67,309,10S).

6 Fixed deposits given as security:

i. Fixed deposits of a carrying amount Rs. 32,036,959 (31 March 2014: Rs. 38,775,758 ) have been deposited as margin money at 20% against the packing credit facility loan availed from a bank.

ii. Deposits of a carrying amount Rs. 718,200 (31 March 2014: Rs. 331,075) have been deposited as bank guarantee towards lien on customs department and various customers.

7 RELATED PARTY DISCLOSURES

i. Parties where control exists:

Nature of relationship Name of party

Holding Company Jupiter Capital Private Limited ('JCPL'). Tayana Digital Private Limited (TDPL) ceased to be the intermediate holding company w.e.f. 09 July 2014 and in turn AXISCADES Aerospace & Technologies Private Limited, (ACAT, formerly known as Axis Aerospace & Technologies Limited) also ceased to be the intermediate holding company. ACAT is a subsidiary of JCPL.

Subsidiary Companies Axis Inc. Axis EU Europe Limited (formerly know an as Axis EU Limited, a step down subsidiary) Cades Studec Technologies (India) Private Limited Cades Technology Canada Inc. Axis Mechanical Engineering Design (Wuxi) Co., Ltd.

ii. Name and relationship of related parties where transaction has taken place:

Fellow subsidiary AXISCADES Aerospace & Technologies Private Limited

Fellow subsidiary Enertec Controls Limited

iii. Key management personnel:

CEO and Chairman Mr. S. Ravinarayanan (resigned as CEO w.e.f. 24 February 2014)

CEO and Director Mr. Valmeekanathan S. (appointed w.e.f. 25 February 2014)

CFO and Director Mr. Kaushik Sarkar (appointed w.e.f. 12 September 2014)

Company Secretary Ms. Shweta Agrawal (w.e.f. 1 April 2014)

8 Corporate social responsibility

Pursuant to the provisions of Section 135 of the Act and the Rules made thereunder, the gross amount required to be spent by the Company during the year ended 31 March 2015 amounts to Rs.1,937,000. The Company has paid Rs.1,937,000 to two non-government organizations engaged in the field of development of skills of under-privileged children, enabling them to overcome adversity and flourish in a fast changing world.

9 Appointment of Chief Financial Officer

After the Balance sheet date, the Company's application seeking approval from the Central Government for the remuneration to the Executive Director and Chief Financial Officer (CFO) of the Company has been viewed negatively in light of the provisions of Section 203 of the Act.

The Management has been advised by an expert opinion that appointment of the CFO is compliant with Section 203 and they have supported their view with prevailing corporate practice as well. Further, the Management has also been advised to resubmit the application to the Policy Wing of the Ministry of Corporate Affairs for re-examination and if found in order, to view the application positively.

Based on the expert's opinion, Management is of the view that aforesaid denial of the permission does not have any financial implications and accordingly the Management has taken requisite steps as advised. Meanwhile, the Company shall maintain status quo till final disposal of the aforesaid application.

10 Transfer pricing

The Company is required to use certain specified methods in computing arm's length price of international transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions / class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of updating the Transfer Pricing documentation for the financial year ending 31 March 2015 following a detailed transfer pricing study conducted for the financial year ended 31 March 2014. In the opinion of the management, the same would not have an impact on these financial statements. Accordingly, these financial statements do not include the effect of the transfer pricing implications, if any.

11 PREVIOUS YEAR FIGURES

Previous year's figures have been regrouped / reclassified wherever necessary, to conform to current year's classification.

Mar 31, 2014

1. SEGMENT REPORTING

The single financial report of the Company would contain consolidated financial statements, including segment information, and the separate financial statements. Therefore, no separate disclosure on segment information is given in these financial statements.

2 RELATED PARTY DISCLOSURES

i. Parties where control exists :

Nature of relationship Name of party

Holding Company

Tayana Digital Private Limited (demerged from Tayana Software Solutions Private Limited), which is a subsidiary of Axis Aerospace & Technologies Limited. (''AATL'', formerly known as Jupiter Strategic Technologies Private Limited''). AATPL, a venture funded by Jupiter Capital Private Limited (''JCPL''), is a subsidiary of the JCPL.

Entity under common control Subsidiar y companies

Enertec Controls Limited

Axis Inc., U.S.A.

Axis E.U. Limited (Step down subsidiary)

Cades Studec Technologies(India) Private Limited

Cades Technology Canada Inc.

Axis Mechanical Engineering Design (Wuxi) Co., Ltd.

Cades Digitech Private Limited (Also, refer note 2)

ii. Key management personnel :

Chairman and CEO CEO

Mr. S. Ravinarayanan (resigned as CEO on 24 February 2014) Mr. Valmeekanathan S. (appointed on 25 February 2014)

iii. Transactions with related parties:

3. TRANSFER PRICING

The Company is required to use certain specified methods in computing arm''s length price of international transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions / class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of updating the Transfer Pricing documentation for the financial year ending 31 March 2014 following a detailed transfer pricing study conducted for the financial year ended 31 March 2013. In the opinion of the management, the same would not have an impact on these financial statements. Accordingly, these financial statements do not include the ef ect of the transfer pricing implications, if any.

4. PREVIOUS YEAR FIGURES

Pursuant to the Scheme (Refer note 2), the figures of the current year are not strictly comparable to those of the previous year. Previous year''s figures have been regrouped / reclassified wherever necessary, to conform to current year''s classification.

Mar 31, 2013

1 DISCLOSURES IN RESPECT OF NON-CANCELLABLE OPERATING LEASES

The lease expenses for cancellable and non-cancellable operating leases during the year ended 31 March 2013 was Rs. 35,478,675 (31 March 2012 : Rs. 32,108,640)

2 HEDGING AND DERIVATIVES

Pursuant to the adoption of AS 30 with effect from 1 April 2011, the loss on fair valuation on forward contracts, which qualify as effective cashflow hedges amounting to Rs. NIL (31 March 2012 - 7,163,655) has been recognised in the hedge reserve account. The impact of the adoption of AS 30 did not have any material impact on the opening reserves of the Company. There are no forward contracts outstanding as at 31 March 2013.

3 Transfer pricing

The Company is required to use certain specified methods in computing arm''s length price of international transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions / class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of updating the Transfer Pricing documentation for the financial year ending 31 March 2013 following a detailed transfer pricing study conducted for the financial year ended 31 March 2012. In the opinion of the management, the same would not have an impact on these financial statements. Accordingly, these financial statements do not include the effect of the transfer pricing implications, if any.

4 The Board of Directors (''the Board'') of the Company at their meeting held on 23 January 2013 have approved a Scheme of Arrangement for the merger of Cades Digitech Private Limited, a subsidiary of Axis-IT&T Limited (''the Company'') with itself, subject to requisite majority of the shareholders'' and creditors of Axis-IT&T Limited and Cades Digitech Private Limited and such other statutory and regulatory approvals. The requisite steps for these activities are under process as at 31 March 2013.

5 PREVIOUS YEAR FIGURES

Previous year figures have been regrouped or reclassified wherever considered necessary to conform to current year classification.

Mar 31, 2012

1 SHARE CAPITAL

a. Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each equity share is entitled to one vote per share.

The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting shall be payable in Indian rupees. In the event of liquidation of the company, the shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 BORROWINGS

(a) Details of security for borrowings

Working capital borrowings (inclusive of packing credit facility in foreign currency) from bank are secured by first exclusive charge on current assets and equitable mortgage on land and building of the Company situated at D-30, Sector 3, Noida and by a corporate guarantee from Axis Aerospace & Technologies Limited.

Loan from a body corporate is secured by demand promissory note for the loan together with interest thereon.

(b) Terms of repayment of borrowings

Packing credit in foreign currency from bank bearing an interest rate of 3% - 5% are repayable over maximum tenure of 180 days from the date of respective availment.

Loan from a body corporate bearing an interest rate of 8% to 10% are repayable over a maximum tenure of three years from the date of availment.

3 EMPLOYEE BENEFIT OBLIGATION

b) Defined contribution plan

The Company makes contribution of statutory provident fund as per Employees Provident Fund and Miscellaneous Provision Act, 1952. This is a defined contribution plan as per AS 15. Contribution made during they earended 31 March 2012 is Rs. 80,04,781 (31 March 2011 : Rs. 49,92,640).

4 TRADE PAYABLES

a) The management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006 (MSMEDA). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2012 has been made in the financials statements based on information received and available with the Company. Further in the view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the MSMEDA is not expected to be material.

5 CONTINGENT LIABILITIES AND COMMITMENTS

Year ended Year ended 31 March 2012 31 March 2011 Rs. Rs.

Estimated amount of contracts remaining to be executed on and not provided for 518,939 - Corporate guarantee provided to YES Bank Limited for loans availed by CADES Digitech Private Limited, a subsidiary. 150,000,000 150,000,000

Order passed against the Company by a consumer forum, Lucknow, against which the Company has filed a revised petition - 225,600

Counter guarantee provided to YES Bank Limited against guarantee availed by Axis Aerospace & Technologies Limited. 825,000,000 -

975,518,939 150,225,600

6 RELATED PARTY DISCLOSURES

i. Parties where control exists :

Nature of relationship Name of party

Holding company information The Company is a subsidiary of Tayana Digital Private Limited (demerged from Tayana Software Solutions Private Limited) which is a subsidiary of Axis Aerospace & Technologies Limited. ('AATL', formerly known as Jupiter Strategic Technologies Private Limited'). AATPL, a venture funded by Jupiter Capital Private Limited ('JCPL'), is a subsidiary of the JCPL.

ii. Name and relationship of related parties where transaction has taken place:

Subsidiary Companies Axis Inc., U.S.A. Axis E.U. Limited Cades Digitech Private Limited Cades Technology Canada Inc

iii. Key Management Personnel:

Chairman and CEO Mr. S Ravinarayanan

7 Transfer pricing

The Company is required to use certain specified methods in computing arm's length price of international transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate method to be adopted will depend on the nature of transactions/class of transactions, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of updating the Transfer Pricing documentation for the financial year ending 31 March 2012 following a detailed transfer pricing study conducted for the financial year ended 31 March 2011. In the opinion of the management, the same would not have an impact on these financial statements. Accordingly, these financial statements do not include the effect of the transfer pricing implications, if any.

8 The Board of Directors ('the Board') of the Company at their meeting held on 12 September 2011 have approved a Scheme of Arrangement for the merger of Cades Digitech Private Limited, a subsidiary of Axis-IT&T Limited ('the Company'), Tayana Digital Private Limited (parent of the Company) and other entities into Axis Aerospace & Technologies Limited ('AAT') subject to necessary approvals. The Board has also approved a Scheme of Arrangement for the subsequent merger of the Company into AAT subject to necessary approvals. The requisite steps for these activities are under process as at 31 March 2012.

9 PREVIOUS YEAR FIGURES

The financial statements for the year ended 31 March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act,1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.

Mar 31, 2011

1) Background and Operational outlook

Axis-IT&T Limited is a pure play Engineering Design Services ("EDS") Company that delivers design based solutions to global engineering majors. Axis-IT&T Limited is organized into two divisions Ã EDS and Software Development Services. The Company has made profit after tax of Rs. 62,267,727 during the year ended 31 March 2011 and its accumulated losses are Rs. 141,408,896. These accumulated losses represent erosion of more than fifty percent of net worth of the Company. The Company is projecting better performance in forthcoming years on the basis of increase in number of contracts with existing and new customers and cost control measures. There is no impact on the carrying/ recoverable value of the assets and liabilities and so no adjustments have been recorded for these assets and liabilities thereon in the financial statements. Accordingly, these financial statements have been prepared on a going concern basis.

2) Earnings /(Loss) Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares will be treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

The weighted average numbers of equity shares outstanding during the period will be adjusted for events of bonus issue, bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares).

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

3) Operating and finance leases

Operating Leases

The Company has entered into cancellable and non-cancellable operating lease agreements for its Business Centers and Corporate Office premises. These leases expire over the period extending up to 30 November 2012 and are further renewable at the mutual consent of the Company and the lessor.

The lease expenses for cancellable and non-cancellable operating leases during the year ended 31 March 2011 was ÃÂ¹ 23,967,867 (31 March 2010 - Rs. Nil)

c) Defined contribution plan

The Company makes contribution of statutory provident fund as per Employees Provident Fund and Miscellaneous Provision Act, 1952. This is a defined contribution plan as per AS 15. Contribution made during the year ended 31 March 2011 is Rs. 4,992,640 (31 March 2010 - Rs. 3,337,401)

4) Miscellaneous expenditure

Public issue expenses are amortised over a period of five years on pro-rata basis. However, if the equity offering is not probable or the offering is aborted, such costs will be expensed off in the year during which the offering is aborted or considered not probable.

5) Other notes

a) As at 31 March, 2011 debtors include a sum of Rs. 1,089,339 (31 March 2010: Rs. 1,811,027) receivable outstanding for more than 365 days. In this regard the Company is in the process of determining the appropriate course of action to ensure compliance with the requirements of Reserve Bank of India (RBI) Regulation and the Foreign Exchange Management Act, 1999.

6) Related party disclosures

Natureofrelationship Nameofparty

i. Parties where control exists : Holding company information

The Company is a subsidiary of Tayana Digital Private Limited (demergedfrom Tayana Software Solutions Private Limited) which is a subsidiary of Axis Aerospace & Technologies Private Limited. (AATPL, formerly known as Jupiter Strategic Technologies Private Limited). AATPL, a venture funded by Jupiter Capital Private Limited (JCPL), is a subsidiary of JCPL.

Subsidiary companies

Axis Inc., U.S.A.

Axis E.U. Limited

Cades Digitech Private Limited

Cades Technology Canada Inc

ii. Key Management Personnel : Chairman and CEO

Mr. S Ravi Narayanan

7) Additional disclosures under Schedule VI

The Company is engaged in the business of rendering engineering design services. The production and sale of such services is not capable of being expressed in any generic unit. Consequently, the quantitative details of sales and the particulars required under paragraph 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 have not been disclosed.

8) Prior year comparatives

Previous year figures have been regrouped or reclassified wherever considered necessary to conform to current year classification.

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