Notes to Accounts of The Anup Engineering Ltd.

Mar 31, 2025

3.21. Provisions and Contingencies

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

The amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at the end
of the reporting period, taking into account the risks and
uncertainties surrounding the obligation.

When the Company expects some or all of a provision to be
reimbursed from third parties, for example, under an insurance
contract, the reimbursement is recognised as a separate asset, but
only when the reimbursement is virtually certain that
reimbursement will be received and the amount of the receivable
can be measured reliably. The expense relating to a provision is
presented in the statement of profit or 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.

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 beyond
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. A contingent liability also
arises in extremely rare cases where there is a liability that cannot
be recognised because it cannot be measured reliably. The
Company does not recognize a contingent liability but discloses its
existence in the standalone financial statements.

Contingent assets are not recognised but disclosed in the
standalone financial statements when an inflow of economic
benefits is probable.

3.22. Segment Reporting

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

3.23. Events occurring after the reporting period

The Company evaluates events and transactions that occur
subsequent to the balance sheet date but prior to the approval of
financial statements to determine the necessity for recognition
and/or reporting of subsequent events and transactions in the
financial statements.

4. Critical accounting estimates and assumptions

The preparation of the Company’s standalone financial statements
requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying disclosures,
and the disclosure of contingent liabilities. Uncertainty about
these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.

4.1. Estimates and assumption

The key assumptions concerning the future and other key sources
of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year, are
described below. The Company based its assumptions and
estimates on parameters available when the standalone financial
statements were prepared. Existing circumstances and
assumptions about future developments, however, may change
due to market changes or circumstances arising that are beyond
the control of the Company. Such changes are reflected in the
assumptions when they occur.

(a) Useful life of Property, plant and equipment and
Intangible Assets

As described in Note 3.6 and 3.9 of the material accounting
policies, the Company reviews the estimated useful lives of
property, plant and equipment and intangible assets at the
end of each reporting period.

(b) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash
generating unit exceeds its recoverable amount, which is the
higher of its fair value less costs of disposal and its value in
use. The fair value less costs of disposal calculation is based
on available data from binding sales transactions, conducted
at arm’s length, for similar assets or observable market prices
less incremental costs for disposing of the asset. The value in
use calculation is based on a DCF model. The cash flows are
derived from the budget for the next five years and do not
include restructuring activities that the Company is not yet
committed to or significant future investments that will
enhance the asset’s performance of the CGU being tested.
The recoverable amount is sensitive to the discount rate used
for the DCF model as well as the expected future cash-inflows
and the growth rate used for extrapolation purposes.

(c) Provisions and contingencies

The assessments undertaken in recognising provisions and
contingencies have been made in accordance with the
applicable Ind AS. A provision is recognized if, as a result of a
past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable
that an outflow of economic benefits will be required to
settle the obligation. Where the effect of time value of money
is material, provisions are determined by discounting the
expected future cash flows.

The Company has significant capital commitments in relation
to various capital projects which are not recognized on the
balance sheet. In the normal course of business, contingent
liabilities may arise from litigation and other claims against
the Company. Guarantees are also provided in the normal
course of business. There are certain obligations which
management has concluded, based on all available facts and
circumstances, are not probable of payment or are very
difficult to quantify reliably, and such obligations are treated
as contingent liabilities and disclosed in the notes but are not
reflected as liabilities in the standalone financial statements.
Although there can be no assurance regarding the final
outcome of the legal proceedings in which the Company
involved, it is not expected that such contingencies will have a
material effect on its financial position or profitability.

(d) Defined benefit plans

The determination of Company’s liability towards defined
benefit obligation to employees is made through
independent actuarial valuation including determination of
amounts to be recognised in the Statement of Profit and Loss
and in other comprehensive income. Such valuation depend
upon assumptions determined after taking into account
inflation, seniority, promotion and other relevant factors
such as supply and demand factors in the employment
market. Information about such valuation is provided in notes
to the standalone financial statements.

Further details about defined benefit obligations are
provided in Note 30.

(e) Revenue recognition

Contracts are subject to modification to account for changes
in contract specification and requirements. The Company
reviews modification to contract in conjunction with the
original contract, basis which the transaction price could be
allocated to a new performance obligation, or transaction
price of an existing obligation could undergo a change. In the
event transaction price is revised for existing obligation, a
cumulative adjustment is accounted for.

Contract modifications are accounted for when additions,
deletions or changes are approved either to the contract
scope or contract price. The accounting for modifications of
contracts involves assessing whether the services added to
an existing contract are distinct and whether the pricing is at
the selling price. Services added that are not distinct are
accounted for on a cumulative catch up basis, while those
that are distinct are accounted for prospectively, either as a
separate contract, if the additional services are priced at the
selling price, or as a termination of the existing contract and
creation of a new contract if not priced at the selling price
The Company’s contracts with customers could include
promises to transfer multiple products and services to a
customer. The Company assesses the products / services
promised in a contract and identifies distinct performance
obligations in the contract. Identification of distinct
performance obligation involves judgement to determine
the deliverables and the ability of the customer to benefit
independently from such deliverables.

Judgement is also required to determine the transaction
price for the contract. The transaction price could be either
a fixed amount of customer consideration or variable
consideration with elements such as volume discounts,
service level credits, performance bonuses, price
concessions and incentives. The transaction price is also
adjusted for the effects of the time value of money if the
contract includes a significant financing component. Any
consideration payable to the customer is adjusted to the
transaction price, unless it is a payment for a distinct product
or service from the customer. The estimated amount of
variable consideration is adjusted in the transaction price
only to the extent that it is highly probable that a significant
reversal in the amount of cumulative revenue recognised will
not occur and is reassessed at the end of each reporting
period. The Company allocates the elements of variable
considerations to all the performance obligations of the
contract unless there is observable evidence that they
pertain to one or more distinct performance obligations.

The Company exercises judgement in determining whether
the performance obligation is satisfied at a point in time or
over a period of time. The Company considers indicators
such as how customer consumes benefits as services are
rendered or who controls the asset as it is being created or
existence of enforceable right to payment for performance
to date and alternate use of such product or service, transfer
of significant risks and rewards to the customer, acceptance
of delivery by the customer, etc.

Note: Board of Directors of the Company have proposed final dividend of '' 17.00 per equity share of face value of '' 10/- each. Proposed dividend
on equity shares are subject to approval at the Annual General Meeting and hence not recognized as a liability as at March 31, 2025. No interim
dividend was declared or paid during the financial year ending March 31, 2025.

The description of the nature and purpose of each reserve within equity is as follows:

a. Capital reserve

Capital Reserve is created due to amalgamation/Business Combinations.

b. Capital Redemption Reserve

As per Companies Act, 2013, capital redemption reserve is created when company purchases its own shares out of free reserves or securities
premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve.

c. Securities Premium

Securities premium is created due to premium on issue of shares. This reserve is utilised in accordance with the provisions of the Companies
Act.

d. Share Based Payment Reserve

This reserve relates to share options granted by the Company to its employee share option plan. Further information about share-based
payments to employees is set out in Note 33.

e. Retained Earning

Retained earnings are the profits that the Company has earned till date, less any transfer to reserves, dividends or other distributions to
shareholder.

f. Cash flow hedge reserve

The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated
portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on the changes of the fair value of the
designated portion of the hedging instruments that are recognised and accumulated under the cash flow hedge reserve will be reclassified
to profit or loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial hedged
item.

g. Debt Instrument through other comprehensive income

The Company has elected to recognise changes in the fair value of certain investment in debt instrument in other comprehensive income.
This amount will be reclassified to statement of profit and loss on derecognition of debt instrument.

The Company holds derivative financial instruments such as foreign currency forward and option contracts to mitigate the risk of changes in
exchange rates on foreign currency exposures. The counter party for these contracts is generally a bank.

All derivative financial instruments are recognized as assets or liabilities on the balance sheet and measured at fair value. The accounting for
changes in the fair value of a derivative instrument depends on the intended use of the derivative and the resulting designation.

The fair values of all derivatives are separately recorded in the balance sheet within current and non-current assets and liabilities depending upon
the maturity of the derivatives.

The use of derivative instruments is subject to limits, authorities and regular monitoring by appropriate levels of management. The limits,
authorities and monitoring systems are periodically reviewed by management and the Board. The market risk on derivatives is mitigated by
changes in the valuation of the underlying assets, liabilities or transactions, as derivatives are used only for risk management purposes.

Cash Flow Hedges

The Company also enters into forward exchange contracts for hedging highly probable forecast transaction and account for them as cash flow
hedges and states them at fair value. Subsequent changes in fair value are recognized in equity until the hedged transaction occurs, at which time,
the respective gain or losses are reclassified to the statement of profit or loss. These hedges have been effective for the year ended March 31,
2025.

The Company uses foreign exchange contracts from time to time to optimize currency risk exposure on its foreign currency transactions. The
cash flow hedges are taken out by the Company during the year for hedging the foreign exchange rate of highly probable forecast transactions.

The cash flows related to above are expected to occur during the year ended March 31, 2026 and consequently may impact the statement of profit
or loss for that year depending upon the change in the foreign exchange rates movements.

Note(a) Employees of the Company receive benefits from a provident fund, which is a defined contribution plan. The eligible employees and
the Company make monthly contributions to the provident fund plan equal to a specified percentage of the employees’ salary.
Amounts collected under the provident fund plan are deposited in a government administered provident fund. The remaining portion
is contributed to the government-administered pension fund. Employees of the Company receive benefits from a government
administered provident fund, which is a defined contribution plan. The Company has no further obligation to the plan beyond its
monthly contributions. Such contributions are accounted for as defined contribution plans and are recognised as employee benefits
expenses when they are due in the Statement of profit and loss.

(b) The Company’s Employee State Insurance Fund, for all eligible employees, is administered by ESIC Corporation. The Company is
required to contribute specified amount to ESIC Corporation and has no further obligations to the same beyond its contribution.

B. Defined benefit plans:

The Company has following post employment benefit plans which are in the nature of defined benefit plans:

(a) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service
for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic
salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Gratuity plan is a Funded
plan administered by a Trust and the Company makes contributions to recognised Trust in India.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance
Sheet date using the projected unit credit method. The Company fully contributes all ascertained liabilities to the The Anup Engineering
Limited Employees'' Gratuity Fund Trust (the Trust). Trustees administer contributions made to the Trusts and contributions are invested in a
scheme as permitted by Indian law.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through re¬
measurements of the net defined benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or
loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate
used to measure the defined benefit obligations recognized in other comprehensive income.

Risks associated to the defined benefit plans:

1. Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring
higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of
asset.

2. Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members As such,
an increase in the salary of the members more than assumed level will increase the plan''s liability.

3. Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will
create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other
debt instruments.

4. Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101
of Income Tax Rules, 1962, this generally reduces ALM risk.

5. Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have
any longevity risk.

6. Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will
wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory guidelines.

Note

(i) Board of Directors of the Company at their meeting held on March 20, 2024 has approved issue of Bonus Equity Shares in the proportion of 1:1 i.e.i
(One) bonus equity share of '' 10/- each for every 1 (One) existing equity share of '' 10/- each fully paid up. Earnings per share for the year and for the
previous year has been calculated/restated considering the above bonus issue.

Note 33 : Share based payments

A. The Company has instituted Employee Stock Option Scheme 2018 (“ESOP 2018”), Employee Stock Options Scheme (Demerger) 2018
(“ESOS DEMERGER 2018”) and Anup Employee Stock Option Scheme 2019 (“Anup - ESOS 2019") pursuant to the approval of the
shareholders of the Company to the Scheme in their Meetings held on 12th May 2018, 12th May 2018, 7th August 2019, 17th May 2023 and 3rd
May,2024 respectively. Under ESOP 2018, ESOS DEMERGER 2018 and Anup - ESOS 2019, the Company has issued 87,500; 58,371; 57,500,
30,000 and 80,000 options respectively convertible into equal number of Equity Shares of face value of ''10 each. The following table sets
forth the particulars of the options issued and vested under ESOP 2018, ESOS DEMERGER 2018 and Anup - ESOS 2019:

Fair value hierarchy

Level i: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted
price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is
determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates.
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for
unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfer between level 1, 2 and 3 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

Note 38 : Financial instruments risk management objectives and policies

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s risk
management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk
limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are
reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Company''s risk management is carried out by a Treasury department under policies approved by the Board of directors. The Company''s
treasury identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The board provides written
principles for overall risk.

(a) Market risk

Market risk refers to the possibility that changes in the market rates may have impact on the Company’s profits or the value of its
holding of financial instruments. The Company is exposed to market risks on account of foreign exchange rates, interest rates,
underlying equity prices, liquidity and other market changes.

Future specific market movements cannot be normally predicted with reasonable accuracy.

(a1) Interest rate risk

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rate.The Company is exposed to interest rate risk of short-term and long-term floating rate instruments.
The Company’s policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion of fixed and floating
rate debt is determined by current market interest rates. The borrowings of the Company are principally denominated in Indian Rupees
with mix of fixed and floating rates of interest. These exposures are reviewed by appropriate levels of management at regular interval.

As on March 31, 2025''715.49 i.e. 27.08% of total borrowaring is at fixed rate of interest and March 31, 2024 none of the borrowing of
the companies are at fixed rate of interest.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and
borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating
rate borrowings as follows:

(a2) Foreign currency risk

The Company’s foreign currency risk arises from its foreign operations and foreign currency transactions. The fluctuation in foreign
currency exchange rates may have potential impact on the income statement and equity, where any transaction references more than
one currency or where assets/liabilities are denominated in a currency other than the functional currency of the Company. The major
foreign currency exposures for the Company are denominated in USD and EURO.

Since a part of the Company’s revenue is in foreign currency and major part of the costs are in Indian Rupees, any movement in
currency rates would have impact on the Company’s performance. Exposures on foreign currency sales are managed through the
Company’s hedging policy, which is reviewed periodically to ensure that the results from fluctuating currency exchange rates are
appropriately managed. The Company strives to achieve asset liability offset of foreign currency exposures and only the net position is
hedged. Consequently, the overall objective of the foreign currency risk management is to minimize the short term currency impact on
its revenue and cash-flow in order to improve the predictability of the financial performance. The Company may use forward contracts,
foreign exchange options or currency swaps towards hedging risk resulting from changes and fluctuations in foreign currency
exchange rate. These foreign exchange contracts, carried at fair value, may have varying maturities varying depending upon the primary
host contract requirements and risk management strategy of the Company. Hedge effectiveness is assessed on a regular basis. Details
of the hedge & unhedged position of the Company given in Note 28.

Foreign currency sensitivity

The foreign exchange rate sensitivity is calculated by the aggregation of the net foreign exchange rate exposure in USD and EURO with
a simultaneous parallel foreign exchange rates shift in the currencies by 1% against the functional currency of the respective entities.
The Company''s exposure to foreign currency changes for all other currencies is not material.

The movement in the pre-tax effect is a result of a change in the fair value of financial instruments not designated in a hedge
relationship. Although the financial instruments have not been designated in a hedge relationship, they act as an economic hedge and
will offset the underlying transactions when they occur.

(b) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company.
Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of
risks. Financial instruments that are subject to concentrations of credit risk materially consists of trade receivables, investments and
derivative financial instruments.

The Company is exposed to credit risk from its operating activities (primarily trade receivables and also from its investing activities
including deposits with banks, forex transactions and other financial instruments) for receivables, cash and cash equivalents, financial
guarantees and derivative financial instruments.

All trade receivables are subject to credit risk exposure. The Company’s exposure to credit risk is influenced mainly by the individual
characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which
the customer operates, also has an influence on credit risk assessment. Credit risk is managed through established policies, controls
relating to credit approvals and procedures for continuously monitoring the creditworthiness of customers to which the Company
grants credit terms in the normal course of business. Outstanding customer receivables are regularly monitored and any shipments to

major customers are generally covered by letters of credit. The history of trade receivables shows a negligible provision for bad and
doubtful debts. Therefore, the Company does not expect any material risk on account of non-performance by any of the Company’s
counterparties. The Company does not have significant concentration of credit risk related to trade receivables. However, 4 customer
contribute to more than 10% of outstanding accounts receivable as of March 31, 2025(3 customers contribute to more than 10% of
outstanding accounts receivable as of March 31, 2024).

Trade receivables are non-interest bearing and are generally on 30 days to 180 days credit term.

With respect to derivatives, the Company’s forex management policy lays down guidelines with respect to exposure per counter party
i.e. with banks with high credit rating, processes in terms of control and continuous monitoring. The fair value of the derivatives are
credit adjusted at the period end.

(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price.
The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per
requirements. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability Of
funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.
Due to the dynamic nature of the underlying businesses, the company''s treasury maintains flexibility in funding by maintaining
availability under committed credit lines.

The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of
cash & cash equivalents and has undrawn short term line of credits from banks to ensure necessary liquidity. The Company closely
monitors its liquidity position and deploys a robust cash management system. Management monitors rolling forecasts of the
company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of
expected cash flows. This is generally carried out at local level in the operating companies of the company in accordance with practice
and limits set by the company. These limits vary by location to take into account the liquidity of the market in which the entity
operates. In addition, the company''s liquidity management policy involves projecting cash flows in major currencies and considering
the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory
requirements and maintaining debt financing plans.

During the year, the Company has been regular in repayment of principal and interest on borrowings on or before due dates. The
Company did not have defaults of principal and interest as on reporting date.

The Company requires funds both for short-term operational needs as well as for long-term investment programmes mainly in growth
projects.

Note 39 : Capital management
Risk Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the
equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital
structure and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or its business requirements to
optimise return to our shareholders through continuing growth. 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 funding requirements are met through a mixture of equity,
internal fund generation and other non-current borrowings. 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 less cash and short-term deposits (including
other bank balance). The Company is not subject to any externally imposed capital requirements.

Note 40 : Code on Social Security, 2020

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits received Indian
Parliament approval and 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. The Company will assess the impact of the Code when it comes into effect and will record
any related impact in the period the Code becomes effective.

Note 41 : New Accounting Pronouncements to be adopted on or after March 31, 2025

There are no standards or interpretations which are notified but not yet effective and that would be expected to have a material impact on the
Company in the current or future reporting periods.

Note 42 : Additional Regulatory Disclosures As Per Schedule III Of Companies Act, 2013

Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as given in Part I of Division II of
Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the
Financial Statements.

a. Utilisation of borrowed funds

During the year ended March 31, 2025 and March 31, 2024, the Company has not advanced or loaned or invested funds (either borrowed
funds or share premium or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries)with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall:

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

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

Further, during the year ended March 31, 2025 and March 31, 2024, 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:

i) 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

ii) provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.

b. Details of crypto currency or virtual currency

The Company has not invested or traded in Crypto Currency or Virtual Currency during the year ended March 31, 2025 (Previous year: Nil).

c. Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami
Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules
made thereunder during the year ended March 31, 2025 (Previous year: Nil).

d. Willful Defaulter

The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a willful defaulter at any
time during the financial year or after the end of reporting period but before the date when the financial statements are approved.

e. Undisclosed Income

The Company does not have any transactions which is not recorded in the books of accounts but 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).

f. Relationship with struck off companies

The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of
the Companies Act, 1956 during the year ended March 31, 2025 (Previous year: Nil).

g. Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies

Note 42 : Other regulatory information required by Schedule III (contd.)

(Restriction on number of Layers) Rules, 2017.

h. Compliance with approved Scheme(s) of Arrangements

The Company has entered into an scheme of arrangement as disclosed in note 43. The accounting effect of such scheme has been
accounted for in the books of account of the Company in accordance with "the Scheme" and Ind AS.

i. Valuation of property, plant and equipments, right-of-use assets and intangible asset

The Company has not revalued its property, plant and equipments, right-of-use assets and intangible asset during the current or previous
year.

j. Quarterly Returns or Statements of Current Assets Filed with Banks

The Company has Fund-based and Non-fund-based limits of Working Capital from Banks and Financial institutions. For the said facility, the
revised submissions made by the Company to its lead bankers based on closure of books of accounts at the year end, the revised quarterly
returns or statements comprising stock statements, book debt statements, credit monitoring arrangement reports, statements on ageing
analysis of the debtors/other receivables, and other stipulated financial information filed by the Company with such banks or financial
institutions are in agreement with the unaudited books of account of the Company of the respective quarters and no material discrepancies
have been observed.

Note 43 : Business Combinations

Year 2024-25

The Company has entered into definitive share purchase agreement to acquire 100% equity shares of Mabel Engineers Private Limited ("Mabel")
for expansion of product portfolio, capacity expansion and geographical spread for a consideration of'' 3,300 Lakhs. Mabel is engaged in the
business of Engineering, fabrication, supply and erection and delivering solutions for pressure vessels, reactors, storage tanks, silos, heat
exchangers, heavy structural components, chimneys and piping systems.

Year 2023-24

A Scheme of Arrangement (“the Scheme”) in the nature of amalgamation of Anup Heavy Engineering Limited (AHEL), a subsidiary entity of the
Company with the Company, under sections 230 to 232 of the Companies Act, 2013 which has been sanctioned by National Company Law Tribunal
at Ahmedabad on November 23, 2023. The Scheme has become effective from the appointed date April 01, 2022.

AHEL, wholly owned subsidiary of the Company was engaged in business of fabrication and manufacturing of Machinery and process equipment.
The above merger has been accounted for in accordance with accounting treatment stated in the scheme as summarised below:

(a) Upon scheme being effective, the assets and liabilities of AHEL shall be recorded in the books of the Company at their respective carrying
values on appointed as per the Pooling of Interest method as laid down by Appendix C of Ind AS 103 ( Business Combinations of Entities
under common Control) notified under the Provisions of the Companies Act 2013 read with relevant rules framed thereunder and other
applicable accounting standards prescribed under the Act.

(b) No new shares will be issued and the investments held in these companies by the Company stand cancelled and any difference should be
adjusted against retained earnings.

These Ind AS financial statements of the Company is approved by shareholders in its annual general meeting held on August 5, 2023.
Subsequently, to give the effect of the scheme on account of amalgamation of the subsidiary with the Company in accordance with Ind AS
103, Ind AS financial statements of the Company for the year ended March 31, 2023 and comparative Ind AS financial statements are restated.

---

Mar 31, 2024

3.21. Provisions and Contingencies

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

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When the Company expects some or all of a provision to be reimbursed from third parties, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. The expense relating to a provision is presented in the statement of profit or 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.

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 beyond 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. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.

3.22. Segment Reporting

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

4. Critical accounting estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

4.1. Estimates and assumption

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(a) Useful life of Property, plant and equipment and Intangible Assets

As described in Note 3.6 and 3.9 of the material accounting policies, the Company reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period.

(b) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

(c) Provisions and contingencies

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS. A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of time value of money is material, provisions are determined by discounting the expected future cash flows.

The Company has significant capital commitments in relation to various capital projects which are not recognized on the balance sheet. In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not

reflected as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not expected that such contingencies will have a material effect on its financial position or profitability.

(d) Defined benefit plans

The determination of Company’s liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the financial statements.

Further details about defined benefit obligations are provided in Note 30.

(e) Revenue recognition

Contracts are subject to modification to account for changes in contract specification and requirements. The Company reviews modification to contract in conjunction with the original contract, basis which the transaction price could be allocated to a new performance obligation, or transaction price of an existing obligation could undergo a change. In the event transaction price is revised for existing obligation, a cumulative adjustment is accounted for.

Contract modifications are accounted for when additions, deletions or changes are approved either to the contract scope or contract price. The accounting for modifications of contracts involves assessing whether the services added to an existing contract are distinct and whether the pricing is at the selling price. Services added that are not distinct are accounted for on a cumulative catch up basis, while those that are distinct are accounted for prospectively, either as a separate contract, if the additional services are priced at the selling price, or as a termination of the existing contract and creation of a new contract if not priced at the selling price The Company’s contracts with customers could include promises to transfer multiple products and services to a customer. The Company assesses the products / services promised in a contract and identifies distinct performance obligations in the contract. Identification of distinct performance obligation involves judgement to determine the deliverables and the ability of the customer to benefit independently from such deliverables.

Judgement is also required to determine the transaction price for the contract. The transaction price could be either a fixed amount of customer consideration or variable consideration with elements such as volume discounts, service level credits, performance bonuses, price concessions and incentives. The transaction price is also adjusted for the effects of the time value of money if the contract includes a significant financing component. Any

consideration payable to the customer is adjusted to the transaction price, unless it is a payment for a distinct product or service from the customer. The estimated amount of variable consideration is adjusted in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur and is reassessed at the end of each reporting period. The Company allocates the elements of variable considerations to all the performance obligations of the contract unless there is observable evidence that they

pertain to one or more distinct performance obligations.

The Company exercises judgement in determining whether the performance obligation is satisfied at a point in time or over a period of time. The Company considers indicators such as how customer consumes benefits as services are rendered or who controls the asset as it is being created or existence of enforceable right to payment for performance to date and alternate use of such product or service, transfer of significant risks and rewards to the customer, acceptance of delivery by the customer, etc.

(v) Shares reserved for issue under options and contracts:

Refer Note 33 for details of shares to be issued under employee stock option Scheme.

(vi) In the period of five years immediately preceding March 31, 2024:

i) The Company has allotted 1,01,93,962 shares of ''10/- each as fully paid without payment being received in cash pursuant to the Scheme of Arrangement sanctioned by National Company Law Tribunal vide its order dated October 26, 2018 between Arvind Limited, Arvind Fashion Limited and the Company in the year 2018-2019.

ii) The Company has not allotted any equity shares by way of bonus issue.

iii) Equity shares extinguished on buy-back

The Company has bought back 3,87,850 equity shares at an average price of ''642.50 per equity share for an aggregate consideration of ''2492.11 Lakhs excluding Transaction Costs. The buy-back commenced on February 24, 2021 and closed on March 15, 2021. All the shares bought back have been extinguished as per the records of the depositories..

(vii) Board of Directors of the Company at their meeting held on March 20, 2024 has approved issue of Bonus Equity Shares in the proportion of 1:1 i.e.1 (One) bonus equity share of ''10/- each for every 1 (One) existing equity share of ''10/- each fully paid up. The Company has transferred amount pertaining to bonus shares from Securities Premium to share suspense account as the record date for bonus issue is April 23, 2024.

(viii) Objective, policy and procedure of capital management, refer Note 39.

Note: Board of Directors of the Company have proposed final dividend of ''15.00 and one-time special dividend of ''5/- per equity share, totaling to a dividend of ''20/- per equity share of face value of ''10/- each. Proposed dividend on equity shares are subject to approval at the Annual General Meeting and hence not recognized as a liability as at March 31, 2024. No interim dividend was declared or paid during the financial year ending March 31, 2024.

The description ofthe nature and purpose of each reserve within equity is as follows:

a. Capital reserve

Capital Reserve is created due to amalgamation/Business Combinations.

b. Capital Redemption Reserve

As per Companies Act, 2013, capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve.

c. Securities Premium Account

Securities premium reserve is created due to premium on issue of shares. These reserve is utilised in accordance with the provisions of the Companies Act.

d. Share Based Payment Reserve

This reserve relates to share options granted by the Company to its employee share option plan. Further information about share-based payments to employees is set out in Note 33.

e. Retained Earning

Retained earnings are the profits that the Company has earned till date, less any transfer to general reserve, dividends or other distributions to shareholders.

f. Share Suspense Account

Board of Directors of the Company at their meeting held on March 20, 2024 has approved issue of Bonus Equity Shares in the proportion of 1:1 i.e.1 (One) bonus equity share of ''10/- each for every 1 (One) existing equity share of ''10/- each fully paid up. The Company has transferred amount pertaining to bonus shares from Securities Premium to share suspense account as the record date for bonus issue is April 23, 2024.

g. Cash flow hedge reserve

The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on the changes of the fair value ofthe designated portion of the hedging instruments that are recognised and accumulated under the cash flow hedge reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial hedged item.

h. Debt Instrument through other comprehensive income

The Company has elected to recognise changes in the fair value of certain investment in debt instrument in other comprehensive income. This amount will be reclassified to statement of profit and loss on derecognition of debt instrument.

Notes:

(a) Secured Borrowings Nature of security:

Term loan of ''1927.36 Lakhs

-Secured by exclusive charge on movable fixed assets (excluding current assets) present and future of the company located at Kheda, Negative lien on immovable properties during the tenor offacility at Kheda.

- All necessary charges are registered with ROC within the statutory period.

- Utilisation of borrowings availed from banks:

The borrowings obtained by the Company from banks have been applied for the purposes for which such loans were was taken.

Note 28 :Foreign Exchange Derivatives and Exposures not Hedged

The Company holds derivative financial instruments such as foreign currency forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counter party for these contracts is generally a bank. All derivative financial instruments are recognized as assets or liabilities on the balance sheet and measured at fair value. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and the resulting designation.

The fair values of all derivatives are separately recorded in the balance sheet within current and non-current assets and liabilities depending upon the maturity of the derivatives.

The use of derivative instruments is subject to limits, authorities and regular monitoring by appropriate levels of management. The limits, authorities and monitoring systems are periodically reviewed by management and the Board. The market risk on derivatives is mitigated by changes in the valuation of the underlying assets, liabilities or transactions, as derivatives are used only for risk management purposes.

Cash Flow Hedges

"The Company also enters into forward exchange contracts for hedging highly probable forecast transaction and account for them as cash flow hedges and states them at fair value. Subsequent changes in fair value are recognized in equity until the hedged transaction occurs, at which time, the respective gain or losses are reclassified to the statement of profit or loss. These hedges have been effective for the year ended March 31, 2024.

The Company uses foreign exchange contracts from time to time to optimize currency risk exposure on its foreign currency transactions. The cash flow hedges are taken out by the Company during the year for hedging the foreign exchange rate of highly probable forecast transactions.

The cash flows related to above are expected to occur during the year ended March 31, 2025 and consequently may impact the statement of profit or loss for that year depending upon the change in the foreign exchange rates movements.

Note 29 : Segment Reporting Identification of Segments:

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) ofthe Company.

Operating Segments:

The Company''s business activity falls within a single operating business segment of Engineering products.

Geographical segment

Geographical segment is considered based on sales within India and rest ofthe world.

Note(a) Employees of the Company receive benefits from a provident fund, which is a defined contribution plan. The eligible employees and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the employees’ salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The remaining portion is contributed to the government-administered pension fund. Employees of the Company receive benefits from a government administered provident fund, which is a defined contribution plan. The Company has no further obligation to the plan beyond its monthly contributions. Such contributions are accounted for as defined contribution plans and are recognised as employee benefits expenses when they are due in the Statement of profit and loss.

(b) The Company’s Employee State Insurance Fund, for all eligible employees, is administered by ESIC Corporation. The Company is required to contribute specified amount to ESIC Corporation and has no further obligations to the same beyond its contribution.

B. Defined benefit plans:

The Company has following post employment benefit plans which are in the nature of defined benefit plans:

(a) Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Gratuity plan is a Funded plan administered by a Trust and the Company makes contributions to recognised Trust in India.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method. The Company fully contributes all ascertained liabilities to the The Anup Engineering Limited Employees'' Gratuity Fund Trust (the Trust). Trustees administer contributions made to the Trusts and contributions are invested in a scheme as permitted by Indian law.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through remeasurements of the net defined benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligations recognized in other comprehensive income.

Risks associated to the defined benefit plans:

1. Interest rate risk: A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the d uration of asset.

2. Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

3. Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

4. Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

5. Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

6. Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory guidelines.

(b) Other Long term employee benefit plans:

Leave encashment (Unfunded)

The Company has a policy on leave encashment which are both accumulating and non-accumulating in nature. The expected cost of accumulating leave encashment is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

The Company has recognised ''56.93 Lakhs as expenses (Previous Year: Income of ''11.16 Lakhs) and included in Note No. 21 "Employee benefit expense".

Note 33 : Share based payments

A. A.The Company has instituted Employee Stock Option Scheme 2018 (“ESOP 2018”), Employee Stock Options Scheme (Demerger) 2018 (“ESOS DEMERGER 2018”) and Anup Employee Stock Option Scheme 2019 (“Anup - ESOS 2019") pursuant to the approval of the shareholders of the Company to the Scheme in their Meetings held on 12th May 2018,12th May 2018, 7th August 2019 and 17th May 2023 respectively. Under ESOP 2018, ESOS DEMERGER 2018 and Anup - ESOS 2019, the Company has issued 87,500; 58,371; 57,500 and 30,000 options respectively convertible into equal number of Equity Shares of face value of''10 each. The following table sets forth the particulars of the options issued and vested under ESOP 2018, ESOS DEMERGER 2018 and Anup - ESOS 2019:

Note 37 : Fair value disclosures for financial assets and financial liabilities:

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

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 following methods and assumptions were used to estimate the fair values.

The fair value of borrowings is calculated by discounting future cash flows using rates currently available for debts on similar terms, credit risk and remaining maturities.

For financial assets and financial liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities.

Quantitative disclosures fair value measurement hierarchy for financial assets as at March 31, 2024 and March 31, 2023

Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.There are no transfer between level 1, 2 and 3 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

Note 38 : Financial instruments risk management objectives and policies

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Company''s risk management is carried out by a Treasury department under policies approved by the Board of directors. The Company''s treasury identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The board provides written principles for overall risk.

(a) Market risk

Market risk refers to the possibility that changes in the market rates may have impact on the Company’s profits or the value of its holding of financial instruments. The Company is exposed to market risks on account of foreign exchange rates, interest rates, underlying equity prices, liquidity and other market changes.

Future specific market movements cannot be normally predicted with reasonable accuracy.

(ai) Interest rate risk

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate.

The Company is exposed to interest rate risk of short-term and long-term floating rate instruments and on the refinancing of fixed rate debt. The Company’s policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion of fixed and floating rate debt is determined by current market interest rates. The borrowings of the Company are principally denominated in Indian Rupees with mix of fixed and floating rates of interest. These exposures are reviewed by appropriate levels of management at regular interval.

As on March 31,2024 and March 31, 2023, 100% of the Company''s borrowings are at fixed rate of interest.

(a2) Foreign currency risk

The Company’s foreign currency risk arises from its foreign operations and foreign currency transactions. The fluctuation in foreign currency exchange rates may have potential impact on the income statement and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the Company. The major foreign currency exposures for the Company are denominated in USD and EURO.

Since a part of the Company’s revenue is in foreign currency and major part of the costs are in Indian Rupees, any movement in currency rates would have impact on the Company’s performance. Exposures on foreign currency sales are managed through the Company’s hedging policy, which is reviewed periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed. The Company strives to achieve asset liability offset of foreign currency exposures and only the net position is hedged. Consequently, the overall objective of the foreign currency risk management is to minimize the short term currency impact on its revenue and cash-flow in order to improve the predictability of the financial performance. The Company may use forward contracts, foreign exchange options or currency swaps towards hedging risk resulting from changes and fluctuations in foreign currency exchange rate. These foreign exchange contracts, carried at fair value, may have varying maturities varying depending upon the primary host contract requirements and risk management strategy of the Company. Hedge effectiveness is assessed on a regular basis. Details of the hedge & unhedged position of the Company given in Note 28.

Foreign currency sensitivity

The foreign exchange rate sensitivity is calculated by the aggregation of the net foreign exchange rate exposure in USD and EURO with a simultaneous parallel foreign exchange rates shift in the currencies by 1% against the functional currency of the respective entities. The Company''s exposure to foreign currency changes for all other currencies is not material.

(a3) Price Risk

The Company''s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet either as fair value through OCI or at fair value through profit or loss.

To manage its price risk arising from investments in equity securities, the company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company. The Company ensures appropriate risk governance framework through appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

(b) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Financial instruments that are subject to concentrations of credit risk materially consists of trade receivables, investments and derivative financial instruments.

The Company is exposed to credit risk from its operating activities (primarily trade receivables and also from its investing activities including deposits with banks, forex transactions and other financial instruments) for receivables, cash and cash equivalents, financial guarantees and derivative financial instruments.

All trade receivables are subject to credit risk exposure. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through established policies, controls relating to credit approvals and procedures for continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit. The history of trade receivables shows a negligible provision for bad and doubtful debts. Therefore, the Company does not expect any material risk on account of non-performance by any of the Company’s counterparties. The Company does not have significant concentration of credit risk related to trade receivables. However, 3 customer contribute to more than 10% of outstanding accounts receivable as of March 31, 2024(2 customers contribute to more than 10% of outstanding accounts receivable as of March 31,2023).

Trade receivables are non-interest bearing and are generally on 30 days to 180 days credit term. With respect to derivatives, the Company’s forex management policy lays down guidelines with respect to exposure per counter party i.e. with banks with high credit rating, processes in terms of control and continuous monitoring. The fair value ofthe derivatives are credit adjusted at the period end.

(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability Of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, the company''s treasury maintains flexibility in funding by maintaining availability under committed credit lines.

The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents and has undrawn short term line of credits from banks to ensure necessary liquidity. The Company closely monitors its liquidity position and deploys a robust cash management system. Management monitors rolling forecasts of the company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the operating companies of the company in accordance with practice and limits set by the company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The Company requires funds both for short-term operational needs as well as for long-term investment programmes mainly in growth projects.

Note 39 : Capital management Risk Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or its business requirements to optimise return to our shareholders through continuing growth. 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 funding requirements are met through a mixture of equity, internal fund generation and other non-current borrowings. 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 less cash and short-term deposits (including other bank balance). The Company is not subject to any externally imposed capital requirements.

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 to immediately call loans and borrowings. There have been no breaches in the financial covenants of any long term borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the current period.

Note 40 : Code on Social Security, 2020

The Parliament of India has approved the Code on Social Security, 2020 (the Code) which may impact the contributions by the Company towards provident fund, gratuity and ESIC. The Code has been published in the Gazette of India. However, the effective date has not yet been notified. The Company will assess the impact of the Code when it comes into effect and will record related impact, if any, in the period the Code becomes effective.

Note 41 : New Accounting Pronouncements to be adopted on or after March 31, 2024

There are no standards or interpretations which are notified but not yet effective and that would be expected to have a material impact on the Company in the current or future reporting periods.

Note 42 : Other regulatory information required by Schedule III

a. Utilisation of borrowed funds and share premium

During the year ended March 31, 2024 and March 31, 2023, the Company has not advanced or loaned or invested funds (either borrowed funds or share premium or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

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

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

Further, during the year ended March 31, 2024 and March 31, 2023, 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:

i) 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

ii) provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.

Note 42 : Other regulatory information required by Schedule III (contd.)

b. Details of crypto currency or virtual currency

The Company has not invested or traded in Crypto Currency or Virtual Currency during the year ended March 31, 2024 (Previous year: Nil).

c. Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder during the year ended March 31, 2024 (Previous year: Nil).

d. Willful Defaulter

The Company has not been declared Willful Defaulter by any bank or financial institution or government or any government authority during the year ended March 31, 2024 (Previous year: Nil).

e. Undisclosed Income

The Company has not surrendered or disclosed as income any transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961) during the year ended March 31, 2024 (Previous year: Nil).

f. Relationship with struck off companies

The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year ended March 31, 2024 (Previous year: Nil).

g. Compliance with number of layers of companies

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

h. Compliance with approved Scheme(s) of Arrangements

The Company has entered into an scheme of arrangement as disclosed in note 43. The accounting effect of such scheme has been accounted for in the books of account of the Company in accordance with "the Scheme" and Ind AS.

i. Valuation of property, plant and equipments, right-of-use assets and intangible asset

The Company has not revalued its property, plant and equipments, right-of-use assets and intangible asset during the current or previous year.

Note 43 : Business Combinations

(1) A Scheme of Arrangement (“the Scheme”) in the nature of amalgamation of Anup Heavy Engineering Limited (AHEL), a subsidiary entity of the Company with the Company, under sections 230 to 232 of the Companies Act, 2013 which has been sanctioned by National Company Law Tribunal at Ahmedabad on November 23, 2023. The Scheme has become effective from the appointed date April 01, 2022.

AHEL, wholly owned subsidiary of the Company was engaged in business of fabrication and manufacturing of Machinery and process equipment.

The above merger has been accounted for in accordance with accounting treatment stated in the scheme as summarised below:

(a) Upon scheme being effective, the assets and liabilities of AHEL shall be recorded in the books of the Company at their respective carrying values on appointed as per the Pooling of Interest method as laid down by Appendix C of Ind AS 103 ( Business Combinations of Entities under common Control) notified under the Provisions of the Companies Act 2013 read with relevant rules framed thereunder and other applicable accounting standards prescribed under the Act.

(b) No new shares will be issued and the investments held in these companies by the Company stand cancelled and any difference should be adjusted against retained earnings.

These Ind AS financial statements of the Company is approved by shareholders in its annual general meeting held on August 5, 2023. Subsequently, to give the effect of the scheme on account of amalgamation of the subsidiary with the Company in accordance with Ind AS 103, Ind AS financial statements of the Company for the year ended March 31, 2023 and comparative Ind AS financial statements are restated.

Note 45 : Events occurring after the reporting period

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine the necessity for recognition and/or reporting of subsequent events and transactions in the financial statements. As of May 04, 2024, there were no subsequent events and transactions to be recognized or reported that are not already disclosed.

Note 46 : Regrouped, Recast, Reclassified

Material regroupings: Appropriate adjustments have been made in the statements of assets and liabilities, statement of profit and loss and cash flows, wherever required, by a reclassification of the corresponding items of income, expenses, assets, liabilities and cash flows in order to bring them in line with the groupings as per the financials of the Company as at March 31, 2024.

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Mar 31, 2023

(i) Rights, Preferences and Restrictions attached to equity shares:

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

(iv) Shares reserved for issue under options and contracts:

Refer Note 33 for details of shares to be issued under employee stock option Scheme (ANUP ESOS 2019).

(v) In the period of five years immediately preceding March 31, 2023:

i) The Company has allotted 1,01,93,962 shares of '' 10/- each as fully paid without payment being received in cash pursuant to the Scheme of Arrangement sanctioned by National Company Law Tribunal vide its order dated October 26, 2018 between Arvind Limited, Arvind Fashion Limited, the Company and The Anup Engineering Limited in the year 2018-2019.

ii) The Company has not allotted any equity shares by way of bonus issue.

iii) Equity shares extinguished on buy-back

The Company has bought back 3,87,850 equity shares at an average price of '' 642.50 per equity share for an aggregate consideration of '' 2492.11 Lakhs excluding Transaction Costs. The buy-back commenced on February 24, 2021 and closed on March 15, 2021. All the shares bought back have been extinguished as per the records of the depositories.

(vi) Objective, policy and procedure of capital management, refer Note 39.

Note: Board of Directors of the Company has proposed final dividend of '' 15.00 per equity share for the financial year 2022-23. Proposed dividend on equity shares are subject to approval at the Annual General Meeting and hence not recognized as a liability as at 31 March, 2023. No interim dividend was declared and paid during the financial year 2022-23.

The description of the nature and purpose of each reserve within equity is as follows:

a. Capital reserve

Capital Reserve is created due to amalgamation/Business Combinations.

b. Capital Redemption Reserve

As per Companies Act, 2013, capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve.

c. Securities premium account

Securities premium reserve is created due to premium on issue of shares. These reserve is utilised in accordance with the provisions of the Companies, Act.

d. Share based payment reserve

This reserve relates to share options granted by the Company to its employee share option plan. Further information about share-based payments to employees is set out in Note 33.

e. Retained Earning

Retained earnings are the profits that the Company has earned till date, less any transfer to general reserve, dividends or other distributions to shareholders.

Note 28 :Foreign Exchange Derivatives and Exposures not Hedged

The Company holds derivative financial instruments such as foreign currency forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counter party for these contracts is generally a bank.

All derivative financial instruments are recognized as assets or liabilities on the balance sheet and measured at fair value. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and the resulting designation.

The fair values of all derivatives are separately recorded in the balance sheet within current and non-current assets and liabilities depending upon the maturity of the derivatives.

The use of derivative instruments is subject to limits, authorities and regular monitoring by appropriate levels of management. The limits, authorities and monitoring systems are periodically reviewed by management and the Board. The market risk on derivatives is mitigated by changes in the valuation of the underlying assets, liabilities or transactions, as derivatives are used only for risk management purposes.

However, the Company does not have any of derivative contracts outstanding as at reporting date.

Note 29 : Segment Reporting Identification of Segments:

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) ofthe company.

Operating Segment:

The Company''s business activity falls within a single operating business segment of Engineering products.

Geographical segment

Information about major customers:

Considering the nature of business of Company in which it operates, the Company deals with various customers including multiple geographics. Company''s revenue from sales exceeding 10% is from two (2) of its customers and its aggregate value is '' 16,760.58 Lakhs (March 31, 2022 : three (3) customers, '' 17,664.70 Lakhs).

Note(a) Employees of the Company receive benefits from a provident fund, which is a defined contribution plan. The eligible employees and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the employees’ salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The remaining portion is contributed to the government-administered pension fund. Employees of the Company receive benefits from a government administered provident fund, which is a defined contribution plan. The Company has no further obligation to the plan beyond its monthly contributions. Such contributions are accounted for as defined contribution plans and are recognised as employee benefits expenses when they are due in the Statement of profit and loss.

(b) The Company’s Employee State Insurance Fund, for all eligible employees, is administered by ESIC Corporation. The Company is required to contribute specified amount to ESIC Corporation and has no further obligations to the same beyond its contribution.

B. Defined benefit plans:

The Company has following post employment benefit plans which are in the nature of defined benefit plans:

Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Gratuity plan is a Funded plan administered by a Trust and the Company makes contributions to recognised Trust in India.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method. The Company fully contributes all ascertained liabilities to the The Anup Engineering Limited Employees'' Gratuity Fund Trust (the Trust). Trustees administer contributions made to the Trusts and contributions are invested in a scheme as permitted by Indian law.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through remeasurements of the net defined benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligations recognized in other comprehensive income.

The above sensitivity analysis may not be representative of the actual 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. In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of reporting period.

In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

C. Other Long term employee benefit plans:

Leave encashment

The Company has a policy on leave encashment which are both accumulating and non-accumulating in nature. The expected cost of accumulating leave encashment is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur. The liability of leave encashment is funded through Life Insurance Corporation.

The Company has recognised (? 11.16) Lakhs (March 31, 2022: '' 14.49 Lakhs) as expenses and included in Note No. 21 "Employee benefit expense".

(d) Terms and conditions of transactions with related parties

(1) Transaction entered into with related party are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances other than loan given, at the year-end are unsecured and interest free and settlement occurs in cash.

(2) Loans given to the related party carries interest rate of 8.00% (March 31, 2022: N.A.).

(3) Financial guarantee given to Bank on behalf of subsidiaries carries no charge and are unsecured.

(e) Commitments with related parties

The Company has not provided any commitment to the related party as at March 31, 2023 (March 31, 2022: '' Nil)

Note 33 : Share based payments

A. The Company has instituted Employee Stock Option Scheme 2018 (“ESOP 2018”), Employee Stock Options Scheme (Demerger) 2018 (“ESOS DEMERGER 2018”) and Anup Employee Stock Option Scheme 2019 (“Anup - ESOS 2019") pursuant to the approval of the shareholders of the Company to the Scheme in their Meetings held on 12th May 2018, 12th May 2018 and 7th August 2019 respectively. Under ESOP 2018, ESOS DEMERGER 2018 and Anup - ESOS 2019, the Company has issued 87,500; 58,371 and 57,500 options respectively convertible into equal number of Equity Shares of face value of '' 10 each. The following table sets forth the particulars of the options issued and vested under ESOP 2018, ESOS DEMERGER 2018 and Anup - ESOS 2019:

Note 37 : Fair value disclosures for financial assets and financial liabilities:

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

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 following methods and assumptions were used to estimate the fair values.

The fair value of borrowings is calculated by discounting future cash flows using rates currently available for debts on similar terms, credit risk and remaining maturities.

For financial assets and financial liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note 38 : Financial instruments risk management objectives and policies

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Company''s risk management is carried out by a Treasury department under policies approved by the Board of directors. The Company''s treasury identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The board provides written principles for overall risk.

(a) Market risk

Market risk refers to the possibility that changes in the market rates may have impact on the Company’s profits or the value of its holding of financial instruments. The Company is exposed to market risks on account of foreign exchange rates, interest rates, underlying equity prices, liquidity and other market changes.

Future specific market movements cannot be normally predicted with reasonable accuracy.

(a1) Interest rate risk

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate.

The Company is exposed to interest rate risk of short-term and long-term floating rate instruments and on the refinancing of fixed rate debt. The Company’s policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion of fixed and floating rate debt is determined by current market interest rates. The borrowings of the Company are principally denominated in Indian Rupees with mix of fixed and floating rates of interest. These exposures are reviewed by appropriate levels of management at regular interval.

As on March 31,2023, the Company does not have any borrowings.

(a2) Foreign currency risk

The Company’s foreign currency risk arises from its foreign operations and foreign currency transactions. The fluctuation in foreign currency exchange rates may have potential impact on the income statement and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the Company. The major foreign currency exposures for the Company are denominated in USD and EURO.

Since a part of the Company’s revenue is in foreign currency and major part of the costs are in Indian Rupees, any movement in currency rates would have impact on the Company’s performance. Exposures on foreign currency sales are managed through the Company’s hedging policy, which is reviewed periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed. The Company strives to achieve asset liability offset of foreign currency exposures and only the net position is hedged. Consequently, the overall objective of the foreign currency risk management is to minimize the short term currency impact on its revenue and cash-flow in order to improve the predictability of the financial performance. The Company may use forward contracts, foreign exchange options or currency swaps towards hedging risk resulting from changes and fluctuations in foreign currency exchange rate. These foreign exchange contracts, carried at fair value, may have varying maturities varying depending upon the primary host contract requirements and risk management strategy of the company. Hedge effectiveness is assessed on a regular basis. Details ofthe hedge & unhedged position of the Company given in Note 28.

Foreign currency sensitivity

The foreign exchange rate sensitivity is calculated by the aggregation of the net foreign exchange rate exposure in USD and EURO with a simultaneous parallel foreign exchange rates shift in the currencies by 1% against the functional currency of the respective entities. The company''s exposure to foreign currency changes for all other currencies is not material.

The movement in the pre-tax effect is a result of a change in the fair value of financial instruments not designated in a hedge relationship. Although the financial instruments have not been designated in a hedge relationship, they act as an economic hedge and will offset the underlying transactions when they occur.

(b) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Financial instruments that are subject to concentrations of credit risk materially consists of trade receivables, investments and derivative financial instruments.

The Company is exposed to credit risk from its operating activities (primarily trade receivables and also from its investing activities including deposits with banks, forex transactions and other financial instruments) for receivables, cash and cash equivalents, financial guarantees and derivative financial instruments.

All trade receivables are subject to credit risk exposure. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through established policies, controls relating to credit approvals and procedures for continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit. The history of trade receivables shows a negligible provision for bad and doubtful debts. Therefore, the Company does not expect any material risk on account of non-performance by any of the Company’s counterparties. The Company does not have significant concentration of credit risk related to trade receivables. However, 1 customer contribute to more than 10% of outstanding accounts receivable as of March 31, 2023 (3 customers contribute to more than 10% of outstanding accounts receivable as of March 31, 2022). Trade receivables are non-interest bearing and are generally on 30 days to 180 days credit term.

With respect to derivatives, the Company’s forex management policy lays down guidelines with respect to exposure per counter party i.e. with banks with high credit rating, processes in terms of control and continuous monitoring. The fair value of the derivatives are credit adjusted at the period end..

(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents and has undrawn short term line of credits from banks to ensure necessary liquidity.

The Company closely monitors its liquidity position and deploys a robust cash management system.

The Company requires funds both for short-term operational needs as well as for long-term investment programmes mainly in growth projects

Note 39 : Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or its business requirements to optimise return to our shareholders through continuing growth. 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 funding requirements are met through a mixture of equity, internal fund generation and other non-current borrowings. 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 less cash and short-term deposits (including other bank balance). The Company is not subject to any externally imposed capital requirements.

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 to immediately call loans and borrowings. There have been no breaches in the financial covenants of any long term borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the current period.

In the Board meeting held on December 29, 2022, the Board of Directors of the Company has approved Scheme of Amalgamation between the Company and its wholly owned subsidiary company (Anup Heavy Engineering Limited). The Scheme is subject to approval of relevant regulatory authorities. Pending such approvals, the Company has not given effect of the scheme in the financial statements.

Note 41 : Code on Social Security, 2020

The Parliament of India has approved the Code on Social Security, 2020 (the Code) which may impact the contributions by the Company towards provident fund, gratuity and ESIC. The Code has been published in the Gazette of India. However, the effective date has not yet been notified. The Company will assess the impact of the Code when it comes into effect and will record related impact, if any, in the period the Code becomes effective.

Note 42 : Recent Pronouncements

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, as and when they become effective. The Ministry of Corporate affairs (MCA) has notified certain amendments to Ind AS, through Companies (Indian Accounting Standards) Amendment Rules, 2023 on March 31, 2023. The amendments have been made in the following standards:

Ind AS 1

Presentation of Financial Statements is amended to replace the term “significant accounting policies” with “material accounting policy information” and providing guidance relating to immaterial transactions, disclosure of entity specific transactions and more.

Ind AS 8

Accounting Policies, Changes in Accounting Estimates and Errors to include the definition of accounting estimates as “monetary amounts in financial statements that are subject to measurement uncertainty.

Ind AS 12

Income Taxes relating to initial recognition exemption of deferred tax related to assets and liabilities arising from a single transaction.

Other Amendments

Ind AS 102 - Share based Payments, Ind AS 103 - Business Combinations, Ind AS 109 - Financial Instruments, Ind AS 115 - Revenue from Contracts with Customers which are mainly editorial in nature in order to provide better clarification of the respective Ind AS’s.

Note 43 : Other Notes

Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as given in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statements.

a. During the year ended March 31, 2023 and March 31, 2022, the Company has not advanced or loaned or invested funds (either borrowed funds or share premium or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

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

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries. Further, during the year ended March 31, 2023 and March 31, 2022, 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: i) 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 ii) provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.

b. The Company has not invested or traded in Crypto Currency or Virtual Currency during the year ended March 31, 2023 (Previous year: Nil).

c. No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder during the year ended March 31, 2023 (Previous year: Nil)..

d. The Company has not been declared Wilful Defaulter by any bank or financial institution or government or any government authority during the year ended March 31, 2023 (Previous year: Nil).

e. The Company has not surrendered or disclosed as income any transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961) during the year ended March 31, 2023 (Previous year: Nil).

f. The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year ended March 31, 2023 (Previous year: Nil).

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

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine the necessity for recognition and/or reporting of subsequent events and transactions in the financial statements. As of May 17, 2023, there were no subsequent events and transactions to be recognized or reported that are not already disclosed.

Note 46 : Regrouped, Recast, Reclassified

Material regroupings: Appropriate adjustments have been made in the statements of assets and liabilities, statement of profit and loss and cash flows, wherever required, by a reclassification of the corresponding items of income, expenses, assets, liabilities and cash flows in order to bring them in line with the groupings as per the audited financials of the Company as at March 31, 2023.

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Mar 31, 2022

(iv) Shares reserved for issue under options and contracts:

Refer Note 33 for details of shares to be issued under employee stock option Scheme (ANUP ESOS 2019).

(v) In the period of five years immediately preceding March 31, 2022:

i) The Company has allotted 1,01,93,962 shares of '' 10/- each as fully paid without payment being received in cash pursuant to the Scheme of Arrangement sanctioned by National Company Law Tribunal vide its order dated October 26, 2018 between Arvind Limited, Arvind Fashion Limited, the Company and The Anup Engineering Limited in the year 2018-2019.

ii) The Company has not allotted any equity shares by way of bonus issue.

iii) Equity shares extinguished on buy-back

The Company has bought back 3,87,850 equity shares at an average price of '' 642.50 per equity share for an aggregate consideration of '' 2492.11 Lakhs excluding Transaction Costs. The buy-back commenced on February 24, 2021 and closed on March 15, 2021. All the shares bought back have been extinguished as per the records of the depositories.

(vi) Objective, policy and procedure of capital management, refer Note 39.

The description of the nature and purpose of each reserve within equity is as follows:

a. Capital reserve

Capital Reserve is created due to amalgamation/Business Combinations.

b. Capital Redemption Reserve

As per Companies Act, 2013, capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve.

c. Securities premium account

Securities premium reserve is created due to premium on issue of shares. These reserve is utilised in accordance with the provisions of the Companies, Act.

d. Share based payment reserve

This reserve relates to share options granted by the Company to its employee share option plan. Further information about share-based payments to employees is set out in Note 33.

Note : The Company has decided to exercise the option permitted under section 115BAA of the Income-tax Act, 1961 for the year 2019-2020 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 which was subsequently converted into an Act, at the time of filing return of income. Accordingly, the Company has recognised provision for income taxes based on the rate prescribed in the aforesaid section. Further, management reviewed current tax and the components of deferred tax assets/ liabilities leading to a reassessment of its estimates compared to earlier periods. Such re-measurement and change in rate of tax resulted in one-time tax credit of '' 443.03 Lakhs which is shown under (Excess)/Short Provision for the year ended March 31, 2021.

Reconciliation of tax expense and the accounting profit multiplied by domestic tax rate for the year ended March 31, 2022 and March 31, 2021.

Note 28 : Foreign Exchange Derivatives and Exposures not hedged

The Company holds derivative financial instruments such as foreign currency forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counter party for these contracts is generally a bank.

All derivative financial instruments are recognized as assets or liabilities on the balance sheet and measured at fair value. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative and the resulting designation.

The fair values of all derivatives are separately recorded in the balance sheet within current and non-current assets and liabilities depending upon the maturity of the derivatives.

The use of derivative instruments is subject to limits, authorities and regular monitoring by appropriate levels of management. The limits, authorities and monitoring systems are periodically reviewed by management and the Board. The market risk on derivatives is mitigated by changes in the valuation of the underlying assets, liabilities or transactions, as derivatives are used only for risk management purposes.

However, the Company does not have any of derivative contracts outstanding as at reporting date.

Note 29 : Segment Reporting Identification of Segments:

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the company.

Operating Segments:

The Company''s business activity falls within a single operating business segment of Engineering products.

Information about major customers:

Considering the nature of business of company in which it operates, the company deals with various customers including multiple geographics. There are three (3) customers together contributing '' 17,664.70 Lakhs (March 31, 2021 : 3 customers, '' 14,583.61 Lakhs)of the total revenue of the Company from domestic and export sales.

Note(a) Employees of the Company receive benefits from a provident fund, which is a defined contribution plan. The eligible employees and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the employees'' salary. Amounts collected under the provident fund plan are deposited in a government administered provident fund. The remaining portion is contributed to the government-administered pension fund. Employees of the Company receive benefits from a government administered provident fund, which is a defined contribution plan. The Company has no further obligation to the plan beyond its monthly contributions. Such contributions are accounted for as defined contribution plans and are recognised as employee benefits expenses when they are due in the Statement of profit and loss.

(b) The Company''s Superannuation Fund is administered by Life Insurance Company. The Company has no further obligations to the plan beyond its contribution.

B. Defined benefit plans:

The Company has following post employment benefit plans which are in the nature of defined benefit plans:

Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The Gratuity plan is a Funded plan administered by a Trust and the Company makes contributions to recognised Trust in India.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method. The Company fully contributes all ascertained liabilities to the The Anup Engineering Limited Employees'' Gratuity Fund Trust (the Trust). Trustees administer contributions made to the Trusts and contributions are invested in a scheme as permitted by Indian law.

The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Gains and losses through remeasurements of the net defined benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The actual return of the portfolio of plan assets, in excess of the yields computed by applying the discount rate used to measure the defined benefit obligations recognized in other comprehensive income.

The above sensitivity analysis may not be representative of the actual 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. In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of reporting period.

In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

C. Other Long term employee benefit plans:

Leave encashment

The Company has a policy on leave encashment which are both accumulating and non-accumulating in nature. The expected cost of accumulating leave encashment is determined by actuarial valuation performed by an independent actuary at each Balance Sheet date using projected unit credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the Balance Sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur. The liability of leave encashment is funded through Life Insurance Corporation.

The Company has recognised '' 14.49 Lakhs (March 31, 2021: '' 17.41 Lakhs) as expenses and included in Note No. 21 "Employee benefit expense".

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 following methods and assumptions were used to estimate the fair values.

The fair value of borrowings is calculated by discounting future cash flows using rates currently available for debts on similar terms, credit risk and remaining maturities.

For financial assets and financial liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note 38 : Financial instruments risk management objectives and policies

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Company''s risk management is carried out by a Treasury department under policies approved by the Board of directors. The Company''s treasury identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The board provides written principles for overall risk.

(a) Market risk

Market risk refers to the possibility that changes in the market rates may have impact on the Company''s profits or the value of its holding of financial instruments. The Company is exposed to market risks on account of foreign exchange rates, interest rates, underlying equity prices, liquidity and other market changes.

Future specific market movements cannot be normally predicted with reasonable accuracy.

(a1) Interest rate risk

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate.

The Company is exposed to interest rate risk of short-term and long-term floating rate instruments and on the refinancing of fixed rate debt. The Company''s policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion of fixed and floating rate debt

is determined by current market interest rates. The borrowings of the Company are principally denominated in Indian Rupees with mix of fixed and floating rates of interest. These exposures are reviewed by appropriate levels of management at regular interval.

As on March 31,2022, the Company does not have any borrowings.

(a2) Foreign currency risk

The Company''s foreign currency risk arises from its foreign operations and foreign currency transactions. The fluctuation in foreign currency exchange rates may have potential impact on the income statement and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the Company. The major foreign currency exposures for the Company are denominated in USD and EURO.

Since a part of the Company''s revenue is in foreign currency and major part of the costs are in Indian Rupees, any movement in currency rates would have impact on the Company''s performance. Exposures on foreign currency sales are managed through the Company''s hedging policy, which is reviewed periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed. The Company strives to achieve asset liability offset of foreign currency exposures and only the net position is hedged. Consequently, the overall objective of the foreign currency risk management is to minimize the short term currency impact on its revenue and cash-flow in order to improve the predictability of the financial performance. The Company may use forward contracts, foreign exchange options or currency swaps towards hedging risk resulting from changes and fluctuations in foreign currency exchange rate. These foreign exchange contracts, carried at fair value, may have varying maturities varying depending upon the primary host contract requirements and risk management strategy of the company. Hedge effectiveness is assessed on a regular basis. Details of the hedge & unhedged position of the Company given in Note 28.

The movement in the pre-tax effect is a result of a change in the fair value of financial instruments not designated in a hedge relationship. Although the financial instruments have not been designated in a hedge relationship, they act as an economic hedge and will offset the underlying transactions when they occur.

(b) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Financial instruments that are subject to concentrations of credit risk materially consists of trade receivables, investments and derivative financial instruments.

The Company is exposed to credit risk from its operating activities (primarily trade receivables and also from its investing activities including deposits with banks, forex transactions and other financial instruments) for receivables, cash and cash equivalents, financial guarantees and derivative financial instruments.

All trade receivables are subject to credit risk exposure. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through established policies, controls relating to credit approvals and procedures for continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit. The history of trade receivables shows a negligible provision for bad and doubtful debts. Therefore, the Company does not expect any material risk on account of non-performance by any of the Company''s counterparties. The Company does not have significant concentration of credit risk related to trade receivables. However, 3 customers contribute to more than 10% of outstanding accounts receivable as of March 31,2022 (2 customers contribute to more than 10% of outstanding accounts receivable as of March 31,2021).

Trade receivables are non-interest bearing and are generally on 30 days to 180 days credit term.

With respect to derivatives, the Company''s forex management policy lays down guidelines with respect to exposure per counter party i.e. with banks with high credit rating, processes in terms of control and continuous monitoring. The fair value of the derivatives are credit adjusted at the period end.

(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents and has undrawn short term line of credits from banks to ensure necessary liquidity. The Company closely monitors its liquidity position and deploys a robust cash management system.

The Company requires funds both for short-term operational needs as well as for long-term investment programmes mainly in growth projects

Note 39 : Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise 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 to immediately call loans and borrowings. There have been no breaches in the financial covenants of any long term borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the current period.

Note 40 : Impact of Covid-19

The Company has taken into account all the possible impacts of COVID-19 in preparation of these financial statements, including but not limited to its assessment of, liquidity and going concern assumption, recoverable values of its financial and non-financial assets, impact on revenue recognition owing to changes in cost budgets of fixed price contracts, impact on leases and impact on effectiveness of its hedges. The Company has carried out this assessment based on available internal and external sources of information upto the date of approval of these financial statements and believes that the impact of COVID-19 is not material to these financial statements and expects to recover the carrying amount of its assets. The impact of COVID-19 on the financial statements may differ from that estimated as at the date of approval of these financial statements owing to the nature and duration of COVID-19.

Note 41 : Business Combination

During the year ended March 31, 2021 expenses of '' 191.93 Lakhs in conneciton with the Composite Scheme of Arrangement (the Scheme) sanctioned by National Company Law Tribunal vide its order dated October 26, 2018 between Arvind Limited ("AL"), Arvind Fashions Limited ("AFL"), Anveshan Heavy Engineering Limited ("the Company") and The Anup Engineering Limited ("Anup"), has been adjusted against Securities Premium as mentioned in the Scheme.

Note 42 : Code on Social Security, 2020

The Parliament of India has approved the Code on Social Security, 2020 (the Code) which may impact the contributions by the Company towards provident fund, gratuity and ESIC. The Code has been published in the Gazette of India. However, the effective date has not yet been notified. The Company will assess the impact of the Code when it comes into effect and will record related impact, if any, in the period the Code becomes effective.

Note 43 : Recent Pronouncements

"Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian" "Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting" Standards) Amendment Rules, 2022, applicable from April 1, 2022, as below:

Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 16 - Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ''cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ''10 percent'' test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 116 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.

Note 44 : Other Notes

a. During the year ended March 31, 2022 and March 31, 2021, the Company has not advanced or loaned or invested funds (either borrowed funds or share premium or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

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

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries. Further, during the year ended March 31, 2022 and March 31, 2021, 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: i) 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 ii) provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.

b. The Company has not invested or traded in Crypto Currency or Virtual Currency during the year ended March 31, 2022 (Previous year: Nil).

c. No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder during the year ended March 31, 2022 (Previous year: Nil).

d. The Company has not been declared Wilful Defaulter by any bank or financial institution or government or any government authority during the year ended March 31, 2022 (Previous year: Nil).

e. The Company has not surrendered or disclosed as income any transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961) during the year ended March 31, 2022 (Previous year: Nil).

f. The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year ended March 31, 2022 (Previous year: Nil).

Note 46 : Events occuring after the reporting period

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the approval of financial statements to determine the necessity for recognition and/or reporting of subsequent events and transactions in the financial statements. As of May 18, 2022, there were no subsequent events and transactions to be recognized or reported that are not already disclosed

Note 47 : Dividend

"Dividends paid during the year ended March 31, 2022 include an amount of '' 7.00 per equity share towards final dividend for the year ended March 31, 2021." Dividends declared by the Company are based on profits available for distribution. On May 17, 2022, the Board of Directors of the Company have proposed a final dividend of '' 8.00 per share in respect of the year ended March 31, 2022 subject to the approval of shareholders at the Annual General Meeting.

Note 48 : Regrouped, Recast, Reclassified

Material regroupings: Appropriate adjustments have been made in the statements of assets and liabilities, statement of profit and loss and cash flows, wherever required, by a reclassification of the corresponding items of income, expenses, assets, liabilities and cash flows in order to bring them in line with the groupings as per the audited financials of the Company as at March 31, 2022, prepared in accordance with amended Schedule III of Companies Act 2013.

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Mar 31, 2018

1. Company Background

Anveshan Heavy Engineering Ltd. Is engaged in manufacturing and fabrication of Engineering goods.

a Rights, Preferences and Restrictions attached to Equity Shares

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

2 Segment Reporting

a The company is primarily engaged in the business of Engineering, which in the context of Accounting Stanard 17 on “ Segment Reporting” constitutes a single reportable primary business segment.

3 Related Party Disclosures :

As per the Accounting Standard on “Related Party Disclosures” (AS 18), the related parties of the Company are as follows :