అకౌంట్స్ గమనికలుAiro Lam Ltd.

Mar 31, 2025

14.3 Rights, Preferences and Restrictions attached to Shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Equity shareholder is eligible for one vote per share held. They are eligible for dividend on the basis oftheir shareholding. In the case of liquidation, the equity shareholdersare eligible to receive the remaining assets ofthe Company after distribution of all preferential amounts, if any, in proportion to their shareholding.

Retained Earnings: Retained earnings are the profits that the Company has earned till date less any transfers to general reserve, dividends, utilisationsor other distributions paid to shareholders.

Other Comprehensive Income: The fair value change ofthe investments measured at fair value through other comprehensive income recognised through Other Comprehensive Income. Upon derecognition the cumulative fair value changes on the said investmentsexceptequity investmentsare reclassified to the Statement of Profit and Loss. Accumulated gain or loss on employee benefits also recognised through other comprehensive income.

Axis Bank Cash Credit / PCFC / PSCFC LC / SBLC outstanding Rs. 5043.45/-as on March 31, 2025 and HSBC Bank Cash Credit / PCFC / PSCFC LC / SBLC outstanding Rs. 1301.63/-as on March 31, 2025 is secured against hypothecation of stock with netting off of sundry creditors and Book Debts i.e. entire current assets (present and future) of the company including stock of raw material, stock in process, finished goods, consumables, receivables, stores, spares, at the rate of 9.40% for Axis bank and MCLR/3M T-bill rate for HSBC bank.

The company has also provided land and building situated at:

1. Survey No: 355, Dalpur, Nananpur Approach Road, Ta: Prantij, Dist: Sabarkantha

2. Plot No. 301 & 302, Survey No. 518/P, GIDC Estate, Talod

3. Khata No. 341, Block No. 139 (Old Survey No. 356) Mouje-Dalpur, Nanapur Approach Road, Taluka: Prantij, Dist: Sabarkantha

4. Pledge of 1500200 Shares of Airo Lam Limited held by Mr. Pravin N. Patel, Suresh H. Patel and Pravin A. Patel as common collateral security for Working Capital finance & Term Loan finance.

The directors of the company and Mr. Pravin A. Patel (Promoter, subject to the limit of the shares offered by him) have also given their personal guarante for the loan.

Sub Note: 1 Outstanding Balances ofTrade Payables as on 31st March, 2025 are taken as certified by management. The same is subject to reconciliation and confirmations.

Sub Note: 2 Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payment made during the year or on balance brought forward from previous year.

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/ authorities.

The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

At officer level the decision was not in favour of the company, therefore, the company has appealed in Commisioner of appeal. Therefore, the company has recognised it as contingent liabilities.

B. Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances, Rs. NIL Lakhs (previous year Rs. NIL Lakhs).

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

The following methods and assumptions were used to estimate the fair values:

Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, working capital loans from banks approximate their carrying amounts largely due to the short term maturities of these instruments.

Financial instruments other than above are carried at amortised cost except certain assets which are carried at fair value.

40 Financial Risk Management

While ensuring liquidity is sufficient to meet Company''s operational requirements, the Company''s financial management committee also monitors and manages key financial risks relating to the operations of the Company by analysing exposures by degree and magnitude of risks. These risks include market risk (including currency risk and price risk), credit risk and liquidity risk.

i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate, currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include FVTPL investments, trade payables, trade receivables, etc.

ii) Liquidity Risk

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability of funding throughan adequate amount of committed credit facilities to meet the obligations when due.

Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The information included in the tables have been drawn up based on the undiscountedcash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The contractual maturity is based on the earliest date on which the Company may be required to pay.

iii) Capital Management

The company''s objective when managing capital is to:

- Safeguard its ability to continue as a going concern so that the Company is able to provide maximum return to stakeholders and benefits for other stakeholders.

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

The company''s Board of director''s reviews the capital structure on regular basis. As part of this review the board considers the cost of capital risk associated with each class of capital requirements and maintenance of adequate liquidity.

Disclosures

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note provided hereunder :

1) Defined Contribution Plan: Employee benefits in the form of Provident Fund are considered as defined contribution plan and the contributionsto Employees Provident Fund Organisation established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act, 1948, respectively, are charged to the profit and loss account of the year when the contributions to the respective funds are due.

2) Defined Benefit Plan : Retirement benefits in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of thir party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet.

Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972

As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation.

\2 Corporate Social Responsibility Contribution

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for th immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 reliefand rural developmentprojects and other activities as mentioned in ScheduleVII ofthe Companies Act, 2013. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilised throughoutthe year on these activitieswhich are specified in Schedule VII of the Companies Act, 2013:

c) The Company has recognised Interest expenses oK15.79 Lakhs on Lease Liabilities during the year.

d) Lease contracts entered by the Company majorly pertain for office Building taken on lease to conduct its business in the ordinary course of business.

e) The Company does not have any lease restrictions and commitment towards variable rent as per the contract.

f) The weighted average incremental borrowing rate of 9.40% has been applied to lease liabilities recognised in the Balance Sheet at the date of initial application.

48 Certain Balance of Debtors, Creditors, Loans & Advances for Capital expenditures are non- moving / sticky . However in view of the management, the same is recoverable / payable. Hence no provision for the same is made in the books of accounts.

49 In the opinion of the Board of Directors, the current assets, loans and advances are approximatelyof thevalue stated, if realized in the ordinary course of business and the provisions for depreciation and all known and ascertained liabilities are adequate and not in excess of the amounts reasonably necessary.

50 The balance confirmation from the suppliers, customers as well as to various loans or advances given have been called for, but the same are awaited till the date ofaudit. Thus, the balances of receivables, trade payables as well as loans and advances have been taken as per the books of accounts submitted by the company and are subject to confirmation from the respective parties.

51 The figures for the previous period are re-classified/ re-arranged / re -grouped, wherever necessary so as to be in conformity with the figures of the current period''s classification/disclosure.

52 Benami Transactions

There is no proceedings has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

53 Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institutions or other lender.

54 Transactions with Struck off Companies

As stated & Confirmed by the Board of Directors ,The Company has not under taken any transactions nor has outstanding balance with the Company Struck Off either under section 248 of the Act or under Section 560 of Companies act 1956.

55 Satisfaction of Charge/Creation of Charge

There is no charges or satisfaction yet to be registered with ROC beyond the statutory period.

56 Number of Layers of Subsidiary

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.

57 Compliance with approved Scheme(s) of Arrangements

The Compnay has not applied for any Scheme of Arrangements under Section 230 to 237 of the Companies Act, 2013.

58 Undisclosed Transactions

As stated & confirmed by the Board of Directors, The Company does not have any such transaction which is not recorded in the books ofaccounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

59 Loan or Investment to Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors, The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

60 Loan or Investment from Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

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

61 Utilization of Term Loans

The Company has applied term loans for the purpose for which the same was obtained during the year.

62 Working Capital

The Company has been sanctioned working capital limits from a bank on the basis of security of the current assets. Quarterly returns or statements filed by the Company with such bank are not in agreement with the books of accounts.

63 Audit Trail

The company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software.

45 Segment Reporting

Segment information has been prepared in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company. As part of Secondary reporting, revenues are attributed to geographical areas based on the location of the customers. The following table present the revenue, profit, assets and liabilities information relating to the business / geographical segment for the Year ended 31 March, 2023

NOTES:

a) Business Segments:

A description of the types of products and services provided by each reportable segment is as follows:

- Laminate & Allied Products: The Segment is engaged in the business of manufacture of Laminates, compact laminates and other allied products through its wholesale and retail network.

- Plywood & Allied Products: The Segment is engaged in the business of manufacturing of Decorative veneers, Engineered Wood Flooring, Engineered Door Sets & Door Leaf and other allied products through its wholesale and retail network.

b) Segment Assets and Liablities:

All Segment Assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, advances and operating cash and bank balances. Segment assets and liabilities do not include share capital, reserves and surplus, borrowings, proposed dividend and income tax (both current and deferred).

c) Segment Revenue and Expenses:

Segment revenue and expenses are directly attributable to the segment. It does not include dividend income, profit on sale of investments, interest income, interest expense, other expenses which cannot be allocated on a reasonable basis and provision for income tax (both current and deferred).

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Mar 31, 2024

Retained Earnings: Retained earnings are the profits that the Company has earned till date less any transfers to general reserve, dividends, utilisations or other distributions paid to shareholders.

Other Comprehensive Income: The fair value change of the investments measured at fair value through other comprehensive income recognised through Other Comprehensive Income. Upon derecognition the cumulative fair value changes on the said investments except equity investments are reclassified to the Statement of Profit and Loss. Accumulated gain or loss on employee benefits also recognised through other comprehensive income.

Securities Premium: The amount received in excess of face value of the equity shares is recognised in Securities Premium.

Axis Bank Cash Credit / PCFC / PSCFC LC / SBLC outstanding Rs. 58,89,07,772.47/-as on March 31, 2024 is secured against hypothecation of stock with netting off of sundry creditors and Book Debts i.e. entire current assets (present and future) of the company including stock of raw material, stock in process, finished goods, consumables, receivables, stores, spares, at the rate of 9.40%.

The company has also provided land and building situated at:

1. Survey No: 355, Dalpur, Nananpur Approach Road, Ta: Prantij, Dist: Sabarkantha

2. Plot No. 301 & 302, Survey No. 518/P, GIDC Estate, Talod

3. Khata No. 341, Block No. 139 (Old Survey No. 356) Mouje-Dalpur, Nanapur Approach Road, Taluka: Prantij, Dist: Sabarkantha

4. Pledge of 1500200 Shares of Airo Lam Limited held by Mr. Pravin N. Patel, Suresh H. Patel and Pravin A. Patel as common collateral security for Working Capital finance & Term Loan finance.

The directors of the company and Mr. Pravin A. Patel (Promoter, subject to the limit of the shares offered by him) have also given their personal guarantee for the loan.

Sub Note: 1 Outstanding Balances of Trade Payables as on 31st March, 2024 are taken as certified by management. The same is subject to reconciliation and confirmations.

Sub Note: 2 Disclosure of payable to vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payment made during the year or on balance brought forward from previous year.

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/ authorities.

The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

At officer level the decision was not in favour of the company, therefore, the company has appealed in Commisioner of appeal. Therefore, the company has recognised it as contingent liabilities.

B. Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances, Rs. NIL Lakhs (previous year Rs. NIL Lakhs).

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

The following methods and assumptions were used to estimate the fair values:

Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, working capital loans from banks approximate their carrying amounts largely due to the short term maturities of these instruments.

Financial instruments other than above are carried at amortised cost except certain assets which are carried at fair value.

39 Financial Risk Management

While ensuring liquidity is sufficient to meet Company''s operational requirements, the Company''s financial management committee also monitors and manages key financial risks relating to the operations of the Company by analysing exposures by degree and magnitude of risks. These risks include market risk (including currency risk and price risk), credit risk and liquidity risk.

i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate, currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include FVTPL investments, trade payables, trade receivables, etc.

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability of funding through an adequate amount of committed credit facilities to meet the obligations when due.

Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The information included in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The contractual maturity is based on the earliest date on which the Company may be required to pay.

iii) Capital Management

The company''s objective when managing capital is to:

- Safeguard its ability to continue as a going concern so that the Company is able to provide maximum return to stakeholders and benefits for other stakeholders.

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

The company''s Board of director''s reviews the capital structure on regular basis. As part of this review the board considers the cost of capital risk associated with each class of capital requirements and maintenance of adequate liquidity.

Disclosures

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurementand the basis on which income and expensesare recognized in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note provided hereunder :

1) Defined Contribution Plan: Employee benefits in the form of Provident Fund are considered as defined contribution plan and the contributions to Employees Provident Fund Organisation established underThe Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act, 1948, respectively, are charged to the profit and loss account of the year when the contributions to the respective funds are due.

2) Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet.

Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972

As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation.

41 Corporate Social Responsibility Contribution

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects and other activities as mentioned in Schedule VII of the Companies Act, 2013. A CSR committee has been formed by the Companyas per the Act. The funds were primarily utilised throughout the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

c) The Company has recognised Interest expenses of^8.43 Lakhs on Lease Liabilities during the year.

d) Lease contracts entered by the Company majorly pertain for office Building taken on lease to conduct its business in the ordinary course of business.

e) The Company does not have any lease restrictions and commitment towards variable rent as per the contract.

f) The weighted average incremental borrowing rate of 9.40% has been applied to lease liabilities recognised in the Balance Sheet at the date of initial application.

47 Certain Balance of Debtors, Creditors, Loans & Advances for Capital expenditures are non- moving / sticky . However in view of the management, the sameis recoverable / payable. Hence no provision for the same is made in the books of accounts.

48 In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and the provisions for depreciation and all known and ascertained liabilities are adequate and not in excess of the amounts reasonably necessary.

49 The balance confirmation from the suppliers, customers as well as to various loans or advances given have been called for, but the same are awaited till the date of audit. Thus, the balances of receivables, trade payables as well as loans and advances have been taken as per the books of accounts submitted by the company and are subject to confirmation from the respective parties.

50 The figures for the previous period are re-classified/ re-arranged / re -grouped, wherever necessary so as to be in conformity with the figures of the current period''s classification/disclosure.

51 Benami Transactions

There is no proceedings has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

52 Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institutions or other lender.

53 Transactions with Struck off Companies

As stated & Confirmed by the Board of Directors ,The Company has not under taken any transactions nor has outstanding balance with the Company Struck Off either under section 248 of the Act or under Section 560 of Companies act 1956.

54 Satisfaction of Charge/Creation of Charge

There is no charges or satisfaction yet to be registered with ROC beyond the statutory period.

55 Number of Layers of Subsidiary

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.

56 Undisclosed Transactions

As stated & confirmed by the Board of Directors, The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

57 Loan or Investment to Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors, The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

58 Loan or Investment from Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

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

59 Utilization of Term Loans

The Company has applied term loans for the purpose for which the same was obtained during the year.

60 Working Capital

The Company has been sanctioned working capital limits from a bank on the basis of security of the current assets. Quarterly returns or statements filed by the Company with such bank are not in agreement with the books of accounts.

61 Audit Trail

The company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software.

62 Crypto Currency

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

63 Ratio Analysis

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Mar 31, 2023

13.3 Rights, Preferences and Restrictions attached to Shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Equity shareholder is eligible for one vote per share held. They are eligible for dividend on the basis of their shareholding. In the case of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, if any, in proportion to their shareholding.

Retained Earnings: Retained earnings are the profits that the Company has earned till date less any transfers to general reserve, dividends, utilisations or other distributions paid to shareholders.

Other Comprehensive Income: The fair value change of the investments measured at fair value through other comprehensive income recognised through Other Comprehensive Income. Upon derecognition the cumulative fair value changes on the said investments except equity investments are reclassified to the Statement of Profit and Loss. Accumulated gain or loss on employee benefits also recognised through other comprehensive income.

Securities Premium: The amount received in excess of face value of the equity shares is recognised in Securities Premium.

Sub Note: The directors of the company and Mr. Pravin A. Patel (Promoter, subject to the limit of the shares offered by him) have also given their personal guarantee for the loan.

Sub Note: The company has also provided land and building situated at:

1. Survey No: 355, Dalpur, Nananpur Approach Road, Ta: Prantij, Dist: Sabarkantha

2. Plot No. 301 & 302, Survey No. 518/P, GIDC Estate, Talod

3. Khata No. 341, Block No. 139 (Old Survey No. 356) Mouje-Dalpur, Nanapur Approach Road, Taluka: Prantij, Dist: Sabarkantha

4. Pledge of 1500200 Shares of Airo Lam Limited held by Mr. Pravin N. Patel, Suresh H. Patel and Pravin A. Patel as common collateral security for Working Capital finance & Term Loan finance.

Sub Note: The Company has utilized the borrowings from Banks for the purpose, for which it has been raised.

Axis Bank Cash Credit / PCFC / PSCFC LC / SBLC outstanding Rs. 31,11,94,943/-as on March 31, 2023 is secured against hypothecation of stock with nettingoff of sundry creditors and Book Debts i.e. entire current assets (present and future) of the company including stock of raw material, stock in process, finished goods, consumables, receivables, stores, spares, at the rate of 9.15%.

The company has also provided land and building situated at:

1. Survey No: 355, Dalpur, Nananpur Approach Road, Ta: Prantij, Dist: Sabarkantha

2. Plot No. 301 & 302, Survey No. 518/P, GIDC Estate, Talod

3. Khata No. 341, Block No. 139 (Old Survey No. 356) Mouje-Dalpur, Nanapur Approach Road, Taluka: Prantij, Dist: Sabarkantha

4. Pledge of 1500200 Shares of Airo Lam Limited held by Mr. Pravin N. Patel, Suresh H. Patel and Pravin A. Patel as common collateral security for Working Capital finance & Term Loan finance.

The directors of the company and Mr. Pravin A. Patel (Promoter, subject to the limit of the shares offered by him) have also given their personal guarantee for the loan.

Sub Note: Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payment made during the year or on balance brought forward from previous year.

32 First time adoption of Ind AS Transition to Ind AS

These are the Company''s first financial statement prepared in accordance with Ind AS.

32.1 Exemptions and exceptions availed

The accounting policies set out in Note 1, have been applied in preparing the financial statements for the year ended March 31, 2023, the comparative information presented in these financial statements for the year ended March 31, 2022 and in the preparation of opening Ind AS balance sheet as at April 1, 2021. In preparing its opening balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explaination of how the transition from from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

Ind AS optional exemptions cost

Deemed cost:- Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment, Intangible Assets, Investment property, and Investment in subsidaries / joint venture / associates, as recognised in the financial statements as at the date of transition to Ind AS, measured as for the previous GAAP and use that as its deemed cost as at date of transition after making necessary adjustments for decommissioning liabilities. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying values as at April 1, 2022.

32.2 Ind AS mandatory exeptions

De-recognition of financial assets and liabilities:- Ind As 101 requires a first time adopter to apply the de-reconginition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 restrospectively from a date of the entity''s choosing, provided that the information needed to apply AS 109 to financial assets and Financial liabiltiesde-recongnised as a result of past transactions was obtained at the time of initiallyaccounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS, wherever applicable.

Classification and measurement of financial assets:- Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date transition to Ind AS.

Impairment of financial assets:- An entity shall determine the approximate credit risk at the date that financial instruments were initially recognized and compare that to the credit risk at the date of transition to Ind. This should be based on reasonable and supportable information that is available without undue cost or efforts. If any entity is unable to make this determination without undue cost or effort, it shall recognise a loss allowance at an amount equual to lifetime expected credit losses at each reporting date untill that financial instrument is de-recognised. The Company has this exception to analyse credit risk of the financial assets as the date of transition insteated of the date of initial recognition.

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/ authorities.

The Company has reviewed all its pending litigationsand proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

At officer level the decision was not in favour of the company, therefore, the company has appealed in Commisioner of appeal. Therefore, the company has recognised it as contingent liabilities.

B. Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances, Rs. NIL Lakhs (previous year Rs. NIL Lakhs).

35 Financial Instruments and Risk Review

i) Capital Management

The company''s objective when managing capital is to:

- Safeguard its ability to continue as a going concern so that the Company is able to provide maximum return to stakeholders and benefits for other stakeholders.

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

The company''s Board of director''s reviews the capital structure on regular basis. As part of this review the board considers the cost of capital risk associated with each class of capital requirements and maintenance of adequate liquidity.

Disclosures

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note provided hereunder :

2) Fair Value Measurement :

This note provides information about how the Company determines fair values of various financial assets. Fair Value of financial assets and liabilities that are not measured at fair value (but fair value disclosures are required). Management considers that the carrying amounts of financial assets and financial liabilities recognized in the financial statements approximate their fair values.

3) Financial Risk Management Objectives

While ensuring liquidity is sufficient to meet Company''s operational requirements, the Company''s financial management committee also monitors and manages key financial risks relating to the operations of the Company by analysing exposures by degree and magnitude of risks. These risks include market risk (including currency risk and price risk), credit risk and liquidity risk.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate, currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include FVTPL investments, trade payables, trade receivables, etc.

Liquidity Risk

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability of funding through an adequate amount of committed credit facilities to meet the obligations when due.

Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilitieswith agreed repayment periods. The information included in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The contractual maturity is based on the earliest date on which the Company may be required to pay.

1) Defined Contribution Plan: Employee benefits in the form of Provident Fund are considered as defined contribution plan and the contributions to Employees Provident Fund Organisation established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act, 1948, respectively, are charged to the profit and loss account of the year when the contributions to the respective funds are due.

2) Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet.

Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972

As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation.

38 Corporate Social Responsibility Contribution

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects and other activities as mentioned in Schedule VII of the Companies Act, 2013. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilised throughout the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

41 Certain Balance of Debtors, Creditors, Loans & Advances for Capital expenditures are non- moving / sticky . However in view of the management, the same is recoverable / payable. Hence no provision for the same is made in the books of accounts

42 In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and the provisions for depreciation and all known and ascertained liabilities are adequate and not in excess of the amounts reasonably necessary.

43 The balance confirmation from the suppliers, customers as well as to various loans or advances given have been called for, but the same are awaited till the date of audit. Thus, the balances of receivables, trade payables as well as loans and advances have been taken as per the books of accounts submitted by the company and are subject to confirmation from the respective parties.

44 Previous year''s figures have been regrouped and rearranged wherever necessary.

45 Segment Reporting

The Company has a geographical segment other than Domestic area, however management consider the same as one segment only. Therefore, Segment Reporting is not provided.

46 Benami Transactions

There is no proceedings has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

47 Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institutions or other lender.

48 Transactions with Struck off Companies

As stated & Confirmed by the Board of Directors ,The Company has not under taken any transactions nor has outstanding balance with the Company Struck Off either under section 248 of the Act or under Section 560 of Companies act 1956.

49 Satisfaction of Charge/Creation of Charge

There is no charges or satisfaction yet to be registered with ROC beyond the statutory period.

50 Number of Layers of Subsidiary

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.

51 Undisclosed Transactions

As stated & confirmed by the Board of Directors, The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

52 Loan or Investment to Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors, The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

53 Loan or Investment from Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

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

54 Utilization of Term Loans

The Company has applied term loans for the purpose for which the same was obtained during the year.

55 Working Capital

The Company has been sanctioned working capital limits from a bank on the basis of security of the current assets. Quarterly returns or statements filed by the Company with such bank are not in agreement with the books of accounts.

56 Crypto Currency

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

Notes referred to herein above form an integral part of the Financial Statements

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Mar 31, 2018

1. Rights, Preferences and Restrictions attached to shares

Equity Shares

The company has only one class of Equity having a par value Rs. 10.00 per share. Each Shareholder is eligible for one vote per share held. The dividend proposed by the board of directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of Interim Dividend.

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.

Sub Note: 2

During the year Company has issued Bonus shares to existing shareholders in the ratio of 1 equity shares against each equity share held by them on 10th August, 2017 out of balance in Profit & Loss Account.

Sub Note: 3

During the year Company has issued 4,00,2000 Equity shares at Rs. 38 each (including Rs. 28 towards security premium) through intial public offering and got listed on Emerge platform of Natioal Stock Exchange of India Limited on 06th October, 2017.

During the year Company has issued Bonus shares to existing shareholders in the ratio of 1 equity shares against each equity share held by them on 10th August, 2017 out of balance in Profit & Loss Account.

Sub Note : 4

The company have outstanding Interest free long term loans amounting to Rs. 2,384,785/- from directors.

Sub Note : 5

The company have outstanding Interest free long term loans amounting to Rs. 28,407,816/- from shareholders & relatives of the directors and/or promoters.

Sub Note : 6

i) Business Loan of Rs. 3,000,000/- from TATA Capital Financial Services Limited is repayable in 24 months at the rate of 16.12% per annum.

ii) Vehicle Loan of Rs. 496,000/- from TATA Motors Finance Limited is repayable in 48 months at the rate of 16.12% per annum.

Sub Note : 7

i) Business Loan of Rs. 3,000,000/- of HDFC Bank Limited is repayable in 24 installments at the rate of 14.99% per annum.

ii) Personal Loan of Rs. 2,500,000/- of ICICI Bank Limited is repayable in 24 installments at the rate of 15.50% per annum.

Sub Note : 8

i) The Punjab National Bank have sanctioned / takeover three term loans to the company of Rs. 424/- Lakhs at the Interest rate of 11.60% per annum. The same is secured by hypothecation of entire block of assets of the company (excluding hypothecated vehicles and factory land and building), present and future as primary security.

The company has also provided factory land and building situated at Survey No: 355, Dalpur, Nananpur Approach Road, Ta: Prantij, Dist: Sabarkantha, as collateral security.

The directors of the company have also given their personal guarantee for the loan.

Sub Note:9

The company has accepted interest free deposit from the distributors against supply of goods as per the policy of the Company.

The company have provided for the gratuity based on AS-15 "Employee Benefits" as per acturial valuation. The same is not funded.

Sub Note : 10

Punjab National Bank Cash Credit outstanding as on March 31, 2018 is secured against hypothecation of stock with netting off of sundry creditors and Book Debts i.e. entire current assets (present and future) of the company including stock of raw material, stock in process, finished goods, consumables, receivables, stores, spares, at the rate of 11.30%.

The company has also provided factory land and building situated at Survey No: 355, Dalpur, Nananpur Approach Road, Ta: Prantij, Dist: Sabarkantha, as collateral security.

The directors of the company have also given their personal guarantee for the loan.

Sub Note: 11

Trade Payable as on March 31, 2018 is taken as certified by management and are subject to confirmation and reconciliation.

Sub Note: 12

The company is not in position to identify the amount of balances due to MSME undertakings in absence of sufficient information from suppliers regarding their status as MSME undertakings.

i) Business Loan of Rs. 3,000,000/- from TATA Capital Financial Services Limited is payable in 24 months at the rate of 16.12% per annum.

ii) Vehicle Loan of Rs. 496,000/- from TATA Motors Finance Limited is repayable in 48 months at the rate of 16.12% per annum.

iii) Business Loan of Rs. 3,000,000/- of HDFC Bank Limited is payable in 24 installments at the rate of 14.99% per annum.

iv) Personal Loan of Rs. 2,500,000/- of ICICI Bank Limited is payable in 24 installments at the rate of 15.50% per annum.

v) The Punjab National Bank have sanctioned / takeover three term loans to the company of Rs. 424/- Lakhs at the Interest rate of 11.60% per annum. The same is secured by hypothecation of entire block of assets of the company (excluding hypothecated vehicles and factory land and building), present and future as primary security.

The company has also provided factory land and building situated at Survey No: 355, Dalpur, Nananpur Approach Road, Ta: Prantij, Dist: Sabarkantha, as collateral security.

The directors of the company have also given their personal guarantee for the loan.

Sub Note : 13

Interest on long term borrowing is due on the loan/deposits accepted from Shareholders, Directors, Relatives of directors / promoters and Distributors.

Sub Note : 14

Sundry Creditors for capital goods as on March 31, 2018 is taken as certified by management and are subject to confirmation and reconciliation.

Sub Note : 15

Sundry Creditors for expenses as on March 31, 2018 is taken as certified by management and are subject to confirmation and reconciliation.

Sub Note : 16

Advanced received from customer as on March 31, 2018 is taken as certified by the management. No security have been given against the same.

Inventories as on March 31, 2018 has been taken as certified by management. The same have been physically verified as on March 31, 2018, on sample basis.

Sub Note: 17

Inventories includes inventory at branch also i.e. Kolkatta. The inventory at Branch, Factory and Godown is properly insured.

Sub Note: 18

Amounts receivable from Debtors as on March 31, 2018 taken as certified by management and considered good and are subject to confirmation and reconciliation.

Sub Note : 19

Security deposit given to National Stock Exchange of India Limited is 1% of the IPO size and the same is refundable.

Sub Note : 20

Balance with government authorities includes CENVAT / GST receivables and advances made to Excise and/or Custom department.

Sub Note : 21

Balance with Others includes advance to staff, advances to customers etc.

22. Trade Receivables, Trade Payables, Loans & Advances and Unsecured Loans has been taken at Book Value subject to confirmations and reconciliation.

23. Loans and Advances are considered good in respect of which company does not hold any security other than the personal guarantee of persons.

24. GST / Excise Duty has not taken into account for valuation of finished goods looking at factory site in view of accounting policy. The same has no impact on statement of Profit & Loss.

25. All assets and Liabilities are presented as Current or Non-Current as per criteria set out in Schedule - III to the Companies Act, 2013 as notified by Ministry of Corporate Affairs. Based on the nature of operation of the company and realization from the trade receivables, the company has ascertained its operating cycle of less than 12 months. Accordingly 12 months period has been considered for the purpose of Current / Non Current classification of assets and liabilities.

26. The SSI Status of the creditors is not known to the company; hence the information is not given.

27. Segment Reporting:

The Company have not any business segment or geographical segment other than the one i.e. Dealing in Laminates. Therefore, the Accounting Standard 17 "Segment Reporting" is not applicable.

28. Previous year''s figures have been regrouped and rearranged wherever necessary.

29. As informed to us, the Contingent Liability is NIL.

30. The figures of the previous year has been regrouped / rearranged where ever required.