Dixon Technologies (India) Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

5.11 Provisions and contingent liabilities

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

Provisions are measured at 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.

If the effect of the time value of money is material, provisions
are determined by discounting the expected future cash flows
to net present value using an appropriate pre-tax discount rate
that reflects current market assessments of the time value of
money and, where appropriate, the risks specific to the liability.

A present obligation that arises from past events, where it is
either not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be made,
is disclosed as a contingent liability. Contingent liabilities are
also disclosed when there is a possible obligation arising from
past events, the existence of which will be confirmed only by
the occurrence or non- occurrence of one or more uncertain
future events not wholly within the control of the Company.

Claims against the Company, where the possibility of
any outflow of resources in settlement is remote, are not
disclosed as contingent liabilities.

Contingent assets

Contingent assets are not recognised in the financial
statements since this may result in the recognition of income
that may not be realised. However, when the realisation of
income is virtually certain, then the related asset is not a
contingent asset and is recognised.

Warranties provision

Provisions for warranty-related costs are recognised as
an expense in the Statement of Profit and Loss when the
product is sold or service provided to the customer. Initial
recognition is based on historical experience. The initial
estimate of warranty-related costs is revised annually. See
note no. 24 of the standalone financial statement

Onerous contracts

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

5.12 Employee benefits

Employee benefits include salaries, wages, contribution to
provident fund, gratuity, leave encashment towards un-availed
leave, compensated absences and other terminal benefits.

Short-term employee benefits

Employee benefits such as wages, salaries, bonus, ex-gratia,
short-term compensated absences, performance linked
rewards, including non-monetary benefits that are expected
to be settled within 12 months are classified as short-term
employee benefits and are recognised in the period in which
the employee renders services and are measured at the
amounts expected to be paid when the liabilities are settled.

Defined contribution plan

Contribution payable to the recognised provident fund,
employee state insurance, employee pension scheme and
other employee social security scheme etc., which are
substantially defined contribution plans, is recognised as
expense based on the undiscounted amount of obligations
of the Company to contribute to the plan.

Defined benefit plan

Defined benefit plans comprising of gratuity and other
terminal benefits, are recognized based on the present
value of defined benefit obligations which is computed
using the projected unit credit method, with actuarial
valuations being carried out at the end of each annual
reporting period. These are accounted either as current
employee cost or included in cost of assets as permitted.

The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation.

This cost is included in employee benefit expense in the
statement of profit and loss.

Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in
other comprehensive income.

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

Other long-term employee benefits

Other long-term employee benefit comprises of leave
encashment towards unavailed leave and compensated
absences, which is computed using the projected unit
credit method, with actuarial valuations being carried out
at the end of each annual reporting period. These are
accounted either as current employee cost or included in
cost of assets as permitted.

Termination benefits:

Termination benefits are payable when employment is
terminated by the Company before the normal retirement
date, or when an employee accepts voluntary retirement
scheme in exchange for these benefits. Expenditure on
Voluntary Retirement Scheme (VRS) is charged to the
Statement of Profit and Loss when incurred.

5.13 Share-based payments

The Company issues equity-settled share-based payments
to certain employees. Equity-settled share-based payments
are measured at fair value as at the date of grant. The fair
value determined at the grant date of the equity-settled
share-based payments is expensed on a straight-line basis
over the vesting period, based on the Company’s estimate
of the shares that will eventually vest with corresponding
increase in equity. Fair value of the options on the grant
date is calculated considering the following:

- Including the impact of market-based performance
conditions (e.g. equity share price of an entity) and
non-vesting conditions (e.g. holding the shares for the
specific period of time)

- Excluding the impact of service and non-market
performance conditions (e.g. achieving revenue or
profitability target)

At the end of each period, the entity revises its
estimates of the number of options that are expected
to vest based on the non-market vesting and service
conditions. It recognises the impact of the revision
to original estimates, if any, in profit or loss, with a
corresponding adjustment to equity. However, fair
value of options is not remeasured subsequently.

5.14 Statement of Cash Flows

Cash flows are reported using the indirect method, whereby
the net profit before tax is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals of
past or future operating cash receipts or payments and item
of income or expenses associated with investing or financing
cash flows. The cash flows from operating, investing and
financing activities of the Company are segregated.

5.15 Earnings per share

Basic earnings per share

Basic earnings per share is computed by dividing the net
profit after tax by weighted average number of equity shares
outstanding during the period. The weighted average
number of equity shares outstanding during the year is
adjusted for treasury shares, bonus issue, bonus element
in a rights issue to existing shareholders, share split and
reverse share split (consolidation of shares).

Diluted earnings per share

Diluted earnings per share is computed by dividing the
profit after tax after considering the effect of interest and
other financing costs or income (net of attributable taxes)
associated with dilutive potential equity shares by the
weighted average number of equity shares considered for
deriving basic earnings per share and also the weighted
average number of equity shares that could have been
issued upon conversion of all dilutive potential equity shares
including the treasury shares held by the Company to
satisfy the exercise of the share options by the employees.

5.16 Cash and cash equivalents

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

5.17 Fair value measurement

The Company measures financial instruments, such as
investments (other than equity investments in Subsidiaries,
Joint Ventures and Associates) and derivatives at fair values
at each Balance Sheet date.

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

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

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

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

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

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

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

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

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

Level 2 — Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable other than quoted prices
included in Level 1.

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

For assets and liabilities that are recognised in the
financial statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the

fair value measurement as a whole) at the end of each
reporting period.

Management determines the policies and procedures for
both recurring fair value measurement, such as derivative
instruments and unquoted financial assets measured at fair
value, and for non-recurring measurement, such as assets
held for disposal in discontinued operations.

5.18 Financial Instruments

Initial recognition and subsequent measurement

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

i. Financial assets

Initial recognition and measurement

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

The classification of financial assets at initial recognition
depends on the financial asset’s contractual cash flow
characteristics and the Company’s business model for
managing them. With the exception of trade receivables
that do not contain a significant financing component or for
which the Company has applied the practical expedient,
the Company initially measures a financial asset at its fair
value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs. Trade receivables
that do not contain a significant financing component or for
which the Company has applied the practical expedient
are measured at the transaction price.

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

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

contractual cash flows while financial assets classified
and measured at fair value through OCI are held within
a business model with the objective of both holding to
collect contractual cash flows and selling.

Subsequent measurement

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

• Financial assets at amortised cost
(debt instruments)

• Financial assets at fair value through OCI
with recycling of cumulative gains and losses
(debt instruments)

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

• Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

Financial assets at amortised cost are subsequently
measured using the effective interest (EIR) method
and are subject to impairment. Gains and losses
are recognised in profit or loss when the asset is
derecognised, modified or impaired.

The Company’s financial assets at amortised cost
include trade receivables, loan to subsidiary, joint
ventures, and associates, and loans to employees.

Financial assets at fair value through profit or loss

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

This category includes derivative instruments and
listed equity investments which the Company had not
irrevocably elected to classify at fair value through OCI.
Dividends on listed equity investments are recognised
as other income in the statement of profit or loss when
the right of payment has been established.

A derivative embedded in a hybrid contract, with a
financial liability or non-financial host, is separated from
the host and accounted for as a separate derivative if:
the economic characteristics and risks are not closely
related to the host; a separate instrument with the
same terms as the embedded derivative would meet
the definition of a derivative; and the hybrid contract
is not measured at fair value through profit or loss.

Embedded derivatives are measured at fair value
with changes in fair value recognised in profit or loss.
Reassessment only occurs if there is either a change
in the terms of the contract that significantly modifies
the cash flows that would otherwise be required or a
reclassification of a financial asset out of the fair value
through profit or loss category.

Derecognition

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised i.e. removed from
the Company’s statement of financial position) when:

• The rights to receive cash flows from the asset
have expired; or

• The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a
‘pass-through’ arrangement and either:

a. the Company has transferred substantially all the
risks and rewards of the asset, or

b. the Company has neither transferred nor retained
substantially all the risks and rewards of the
asset, but has transferred control of the asset.

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

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

Impairment

The Company recognises an allowance for expected
credit losses (ECLs) for all debt instruments not held
at fair value through profit or loss. ECLs are based on
the difference between the contractual cash flows due

in accordance with the contract and all the cash flows
that the Company expects to receive, discounted at
an approximation of the original effective interest rate.
The expected cash flows will include cash flows from
the sale of collateral held or other credit enhancements
that are integral to the contractual terms.

ECLs are recognised in two stages. For credit
exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs
are provided for credit losses that result from default
events that are possible within the next 12-months (a
12-month ECL). For those credit exposures for which
there has been a significant increase in credit risk since
initial recognition, a loss allowance is required for credit
losses expected over the remaining life of the exposure,
irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the
Company applies a simplified approach in calculating
ECLs. Therefore, the Company does not track changes
in credit risk, but instead recognises a loss allowance
based on lifetime ECLs at each reporting date.

For debt instruments at fair value through OCI, the
Company applies the low credit risk simplification. At
every reporting date, the Company evaluates whether
the debt instrument is considered to have low credit risk
using all reasonable and supportable information that
is available without undue cost or effort. In making that
evaluation, the Company reassesses the risk of the debt
instruments. In addition, the Company considers that
there has been a significant increase in credit risk when
contractual payments are more than 30 days past due.

The Company considers a financial asset in default
when contractual payments are 90 days past due.
However, in certain cases, the Company may also
consider a financial asset to be in default when internal
or external information indicates that the Company
is unlikely to receive the outstanding contractual
amounts in full before taking into account any credit
enhancements held by the Company. A financial asset
is written off when there is no reasonable expectation
of recovering the contractual cash flows.

ii. Financial liabilites

Initial recognition and measurement

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

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

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

Subsequent measurement

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

• Financial liabilities at fair value through profit or loss

• Financial liabilities at amortised cost (loans
and borrowings)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair
value through profit or loss.

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

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

Financial liabilities designated upon initial recognition
at fair value through profit or loss are designated at
the initial date of recognition, and only if the criteria in
accounting standards are satisfied.

Financial liabilities at amortised cost

After initial recognition, interest-bearing borrowings and
instruments are subsequently measured at amortised cost
using the EIR method. Gains and losses are recognised
in profit or loss when the liabilities are derecognised as
well as through the EIR amortisation process.

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

This category generally applies to interest-bearing
borrowings and instruments.

Derecognition

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

iii. Off setting of financial instruments

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

iv. Derivative financial instruments and hedge accounting

Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such
as forward currency contracts and interest rate swaps, to
hedge its foreign currency risks and interest rate risks,
respectively. Such derivative financial instruments are
initially recognised at fair value on the date on which a
derivative contract is entered into and are subsequently
remeasured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.

For the purpose of hedge accounting, hedges
are classified as:

• Fair value hedges when hedging the exposure to
changes in the fair value of a recognised asset
or liability or an unrecognised firm commitment

• Cash flow hedges when hedging the exposure to
variability in cash flows that is either attributable
to a particular risk associated with a recognised
asset or liability or a highly probable forecast
transaction or the foreign currency risk in an
unrecognised firm commitment

• Hedges of a net investment in a foreign operation

At the inception of a hedge relationship, the
Company formally designates and documents the
hedge relationship to which it wishes to apply hedge
accounting and the risk management objective and
strategy for undertaking the hedge.

The documentation includes identification of the hedging
instrument, the hedged item, the nature of the risk being
hedged and how the Company will assess whether the
hedging relationship meets the hedge effectiveness
requirements (including the analysis of sources of hedge
ineffectiveness and how the hedge ratio is determined).

A hedging relationship qualifies for hedge accounting if
it meets all of the following effectiveness requirements:

• There is ‘an economic relationship’ between the
hedged item and the hedging instrument.

• The effect of credit risk does not ‘dominate
the value changes’ that result from that
economic relationship.

• The hedge ratio of the hedging relationship is
the same as that resulting from the quantity of the
hedged item that the Company actually hedges
and the quantity of the hedging instrument that
the Company actually uses to hedge that quantity
of hedged item.

Hedges that meet all the qualifying criteria for hedge
accounting are accounted for, as described below:

Fair value hedges

The change in the fair value of a hedging instrument
is recognised in the statement of profit or loss as other
expense. The change in the fair value of the hedged item
attributable to the risk hedged is recorded as part of the
carrying value of the hedged item and is also recognised
in the statement of profit or loss as other expense.

For fair value hedges relating to items carried at amortised
cost, any adjustment to carrying value is amortised
through profit or loss over the remaining term of the hedge
using the EIR method. The EIR amortisation may begin as
soon as an adjustment exists and no later than when the
hedged item ceases to be adjusted for changes in its fair
value attributable to the risk being hedged.

If the hedged item is derecognised, the unamortised
fair value is recognised immediately in profit or loss.

When an unrecognised firm commitment is designated
as a hedged item, the subsequent cumulative change
in the fair value of the firm commitment attributable to the
hedged risk is recognised as an asset or liability with a
corresponding gain or loss recognised in profit or loss.

v Dividend and interest income

a. Dividend income from investments is recognised
when the shareholder’s right to receive payment has
been established (provided that it is probable that
the economic benefits will flow to the Company and
the amount of income can be measured reliably).

b. Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income
can be measured reliably. Interest income is
accrued on a time basis, by reference to the
principal outstanding and at the effective interest
rate applicable, which is the rate that exactly
discounts estimated future cash receipts through
the expected life of the financial asset to that
asset’s net carrying amount on initial recognition.

6.1 Recent accounting pronouncements

The Ministry of Corporate Affairs vide notification dated
9 September 2024 and 28 September 2024 notified
the Companies (Indian Accounting Standards) Second
Amendment Rules, 2024 and Companies (Indian
Accounting Standards) Third Amendment Rules, 2024,
respectively, which amended/ notified certain accounting
standards (see below), and are effective tor annual repoting
periods beginning on or after April 01,2024:

- Ind AS - 117 Insurance Contracts and

- Lease Liability in Sale and Leaseback —
Amendments to Ind AS 116

These amendments did not have any material impact on the
amounts recognised in prior periods and are not expected
to significantly affect the current or future periods.

6.2 Significant Judgements and Key sources of
Estimation in applying Accounting Policies

Information about significant judgments and key sources of
estimation made in applying accounting policies that have
the most significant effects on the amounts recognized in
the financial statements is included in the following notes:

a. Recognition of Deferred Tax Assets: The extent to
which deferred tax assets can be recognized is based
on an assessment of the probability of the Company’s
future taxable income against which the deferred
tax assets can be utilized. In addition, significant

judgment is required in assessing the impact of any
legal or economic limits.

b. Useful lives of depreciable/amortizable assets
(tangible and intangible): Management reviews its
estimate of the useful lives of depreciable/amortizable
assets at each reporting date, based on the expected
utility of the assets. Uncertainties in these estimates
relate to actual normal wear and tear that may change
the utility of plant and equipment.

c. Classification of Leases: The Company enters
into leasing arrangements for various assets. The
classification of the leasing arrangement as a finance
lease or operating lease is based on an assessment
of several factors, including, but not limited to, transfer
of ownership of leased asset at end of lease term,
lessee’s option to purchase and estimated certainty of
exercise of such option, proportion of lease term to the
asset’s economic life, proportion of present value of
minimum lease payments to fair value of leased asset
and extent of specialized nature of the leased asset.

d. Employee benefit: Employee benefit obligations are
measured on the basis of actuarial assumptions
which include mortality and withdrawal rates as well as
assumptions concerning future developments in discount
rates, medical cost trends, anticipation of future salary
increases, and the inflation rate. The Company considers
that the assumptions used to measure its obligations are
appropriate. However, any changes in these assumptions
may have a material impact on the resulting calculations.

e. Provisions and Contingencies: The assessments undertaken
in recognizing provisions and contingencies have been

made in accordance with Indian Accounting Standards (Ind
AS) 37, ‘Provisions, Contingent Liabilities, and Contingent
Assets’. The evaluation of the likelihood of the contingent
events is applied best judgment by management regarding
the probability of exposure to potential loss.

f. Impairment of financial assets: The Company reviews its
carrying value of investments carried at amortized cost
annually, or more frequently when there is an indication
of impairment. If the recoverable amount is less than its
carrying amount, the impairment loss is accounted for.

g. Fair value measurement of Financial Instruments:
When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques
including the Discounted Cash Flow model. The input
to these models is taken from observable markets
where possible, but where this is not feasible, a
degree of judgment is required in establishing fair
values. Judgments include considerations of inputs
such as liquidity risk, credit risk, and volatility.

h. Warranty : Warranty Provision is measured at
discounted present value using a pre-tax discount rate
that reflects the current market assessments of the time
value of money and the risks specific to the liability.
Product warranty liability and warranty expenses are
recorded at the time the product is sold, if the claims
of the customers under warranty are probable, and the
amount can be reasonably estimated.

The Board of Directors have recommended a final dividend of 400% (INR 8.00/- per Equity Share of H 2/- each) for the financial
year 2024-2025 subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company.

f. Shares allotted as fully paid pursuant to contract(s) without payment being received in cash during the period of five years
immediately preceding the reporting date- Nil

g. Shares held by Holding or ultimate Holding company

The Company does not have any Holding Company.

h. Shares reserved for issue under employee stock option

For details of shares reserved for issue and shares issued under the Employee Stock Option Plan (ESOP) of the Company, see
note 50. These options are granted to the employees subject to cancellation under circumstance of his cessation of employment
with the Company on or before the vesting date.

Notes:

a. General reserve:

The Company had transferred a part of the net profit of the Company to general reserve in earlier years. It also includes amount
transferred to general reserve for share option exercised during the year and earlier years.

b. Securities premium

The amount received in excess of the face value of the equity shares issued by the Company is recognised in securities premium.
It can be used for issue of bonus shares, write- off of equity related expenses etc.

c. Capital redemption reserve:

The reserve has been created by buy back of equity shares and fully convertible cumulative participatory preference shares.

22 Borrowings (Contd..)

b. Nature of Securities

Term loan-1

- Secured against first pari - passu charge on all movable fixed assets of the company (except those charged exclusively
to other lenders)

- exclusive charge on movable fixed assets of unit located at plot no. 262 M, Industrial Area, Central Hope Town,
Selaqui, Dehradun, Uttarakhand (both present and future)

- first pari passu charged over movable fixed assets of the unit located at C-3/1, Selaqui Industrial Area
Dehradun, Uttarakhand

- exclusive charge on immovable property located at Plot No C-2/1, UPSIDC Industrial Area, Selaqui, vikas Nagar,
Dehradun, Uttarakhand

Term loan-2

- secured against first pari passu charge on all movable fixed assets of the company (except those exclusively charged
with other banks).

- exclusive charge on immovable fixed assets of the company located at Khasra No. 1050/2, 1050/6, 1050/7, 1050/8,
1050/9 situated at Mauza East Hope Town, Tehsil Vikas Nagar, Pargana- Pachwa Doon, District - Dehradun (Uttrakhand)

II Term loan from Tata Capital Housing Finance Limited

Rate of interest

Rate of interest is bearing of 12.25% p.a.

Repayment term

The loan had been fully repaid during the year.

Security

Loan is secured by mortgage of the related asset Unit no. 2, TH-1, Rajpura Dehradun and now, charge stand released.

i. The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are
sufficient to meet the obligations related to lease liabilities as and when they fall due.

ii. Lease contracts entered by the Company majorly pertains to buildings taken on lease to conduct its business in
the ordinary course. The Company does not have any lease restrictions and commitment towards variable rent as
per the contract.

iii. 6% to 9% of interest rate implicit in the lease or lessee’s incremental borrowing rate used for the measurement of
lease liabilities.

III Disclosures for operating leases other than leases coverd in Ind AS 116

i. The Company has entered into cancellable operating leases and transactions for leasing of accommodation for factory
building, service centre, office space, godown, transit house etc. The tenure of lease is generally one year.

Terms of lease include operating terms for renewal, increase in rent in future period and terms of cancellation.

ii. The Company has given its properties on lease to one party. Tenure of leases is 14 years. Terms of the lease include
operating term for renewal, increase in rent in future period and term of cancellation have a notice period of 3 months,
accordingly no lease obligation have been disclosed.

Lease expenses/income recognised during the year

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique. In estimating the fair value of an asset or a liability, the Company takes in to account the characteristics of the asset or
liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement
date. Fair value for measurement and/or disclosure purposes in these standalone financial statements is determined on such a
basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within
the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realisable
value in Ind AS 2 or value in use in Ind AS 36

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to
which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurements
in its entirety, which are described as follows:

Level I: includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds,
ETFs and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the
stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level II: 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 III: 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 are included in level 3.

The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current
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:

i. Long-term fixed-rate and variable-rate receivables/borrowings are evaluated by the Company based on parameters such
as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics
of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of
these receivables.

ii. The fair values of the quoted notes and bonds are based on price quotations at the reporting date. The fair value of unquoted
instruments, loans from banks and other financial liabilities, obligations under finance leases, as well as other non-current
financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms,
credit risk and remaining maturities. In addition to being sensitive to a reasonably possible change in the forecast cash flows
or the discount rate, the fair value of the equity instruments is also sensitive to a reasonably possible change in the growth
rates. The valuation requires management to use Unobservable inputs in the model, of which the significant unobservable
inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible alternatives for
those significant unobservable inputs and determines their impact on the total fair value.

iii. The fair values of the remaining fair value through other comprehensive income "FVTOCI" financial assets are derived from
quoted market prices in active markets.

iv. The Company enters into derivative financial instruments with various counterparties, principally financial institutions with
investment grade credit ratings. Interest rate swaps, foreign exchange forward contracts and commodity forward contracts
are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied
valuation techniques include forward pricing and swap models, using present value calculations. The models incorporate
various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, yield curves of
the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward
rate curves of the underlying commodity. All derivative contracts are fully cash collateralised, thereby eliminating both
counterparty and the Company’s own non-performance risk. As at 31 March 2025, the marked-to-market value of derivative
asset positions is net of a credit valuation adjustment attributable to derivative counterparty default risk. The changes in
counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge
relationships and other financial instruments recognised at fair value.

The Company’s Financial Risk Management is an integral part of how to plan and execute its business strategies. The Company
is exposed to Market Risk, Credit Risk & liquidity risk.

The Company’s senior management oversees the management of these risks. The senior professionals working to manage
the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of
Directors and Audit Committee. This process provides assurance to Company’s senior management that the Company’s financial
risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and
managed in accordance with Company policies and Company risk objective.

d. Financial risk management

The Company''s senior management oversees the risk management framework and developing and monitoring the Company’s
risk management policies. The risk management policies are established to ensure timely identification and evaluation of risks,
setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve
risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the
market conditions and the Company’s activities to provide reliable information to the Management and the Board to evaluate the
adequacy of the risk management framework in relation to the risk faced by the Company.

The risk management policies aims to mitigate the following risks arising from the financial instruments:

- Market risk

- Credit risk

- Liquidity risk

A 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 the
market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency
exchange rates, commodity prices and interest rates.

The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures.
The use of financial derivatives is governed by the Company’s policies approved by the Board of Directors, which provide
written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative
financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed
by the Management and the internal auditors on a continuous basis. The Company does not enter into or trade financial
instruments, including derivatives for speculative purposes.

I. Currency risk

a. The operation of the Company give exposure to foreign exchange risk arising from foreign currency transactions
and foreign currency loans, primarily with respect to the USD, CNY and JPY. Foreign exchange risk arises from
future commercial transactions and recognised assets and liabilities denominated in a currency that is not the
company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency
cash flows. The Company hedge the foreign currency exposure. The objective of the hedges is to minimize the
volatility of the INR cash flows of highly probable forecast transactions.

b. The Company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. The
company measures the forward contract at fair value through profit and loss.

c. The spot component of forward contracts is determined with reference to relevant spot market exchange rates. The
differential between the contracted forward rate and the spot market exchange rate is defined as the forward points.

II. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both
fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable
interest rate. The borrowings of the Company are principally denominated in rupees with a mix of fixed and floating
rates of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate
and LIBOR rates. The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and
fund requirements for its day-to-day operations like non-convertible bonds and short term loans. The risk is managed
by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

The provision for loss allowances of trade receivables have been made by the management on the evaluation of trade
receivables. The management at each reporting period made an assessment on recoverability of balances and on the best
estimate basis the provision for loss allowances have been created.

C Liquidity risk management

a. Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid
funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires
funds both for short term operational needs as well as for long term capital expenditure growth projects. The Company
generates sufficient cash flow for operations, which together with the available cash and cash equivalents and short
term investments provide liquidity in the short-term and long-term. The Company has established an appropriate
liquidity risk management framework for the management of the Company’s short, medium and long-term funding and
liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking
facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching
the maturity profiles of financial assets and liabilities.

b. The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods. 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.

e. Capital management

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt.

The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest
bearing loans and borrowings less cash and cash equivalents and current investments.

53 The Board of Directors have recommended a final dividend of 400% (H 8.00/- per Equity Share of H 2/- each) for the financial year
2024-2025 subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company.

54 On 08 July 2024, the Company entered into Share Subscription and Purchase Agreement (“SSPA”) with Aditya Infotech Limited
(“Aditya”) for sale of 9,500,000 fully paid up equity shares of AIL Dixon Technologies Private Limited (‘AIL Dixon’) representing
50% of AIL Dixon equity share capital, the joint venture company. The consideration of this transaction is through exchange of
73,05,805 equity shares of H 1 each, representing 6.50% of Aditya equity share capital on a fully diluted basis and fair value gain
of H 48,950 lakhs on these investments has been recognised during the year ended 31 March, 2025 as exceptional item.

55 Figures for the previous year have been regrouped / rearranged wherever necessary to conform to the current year’s presentation.

56 Other Statutory Information

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

(ii) No penalties were imposed by the regulator during the financial year ended 31 March, 2025.

(iii) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under
the Income Tax Act, 1961.

(iv) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

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

(vi) The Company has not revalued its property, plant and equipment (including right-of-use assets) or other intangible assets
during the current or previous year.

(vii) 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.

(viii) 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 Beneficiary

(ix) The Company have not been declared wilful defaulter by any bank or financial institution or government or any

government authority.

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

(xi) The Company has no transactions with the companies struck off under Companies Act,

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Mar 31, 2024

5.11 Provisions and contingent liabilities

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

Provisions are measured at 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.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

A present obligation that arises from past events, where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are

also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.

Claims against the Company, where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

Contingent assets

Contingent assets are not recognised in the financial statements since this may result in the recognition of income that may not be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognised.

Warranty provision

Provisions for warranty-related costs are recognised as an expense in the Statement of Profit and Loss when the product is sold or service provided to the customer. Initial recognition is based on historical experience. The initial estimate of warranty-related costs is revised annually. Refer note no. 23 of the standalone financial statements.

Onerous contracts

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

5.12 Employee benefits

Employee benefits include salaries, wages, contribution to provident fund, gratuity, leave encashment towards un-availed leave, compensated absences and other terminal benefits.

Short-term employee benefits

Employee benefits such as wages, salaries, bonus, ex-gratia, short-term compensated absences, performance linked rewards, including non-monetary benefits that are expected to be settled within 12 months are classified as short-term employee benefits and are recognised in the period in which the employee renders services and are measured at the amounts expected to be paid when the liabilities are settled.

Defined contribution plan

Contribution payable to the recognised provident fund, employee state insurance, employee pension scheme and

other employee social security scheme etc., which are substantially defined contribution plans, is recognised as expense based on the undiscounted amount of obligations of the Company to contribute to the plan.

Defined benefit plan

Defined benefit plans comprising of gratuity and other terminal benefits, are recognized based on the present value of defined benefit obligations which is computed using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets as permitted.

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

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income.

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

Other long-term employee benefits

Other long-term employee benefit comprises of leave encashment towards unavailed leave and compensated absences, which is computed using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets as permitted.

Termination benefits:

Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or when an employee accepts voluntary retirement scheme in exchange for these benefits. Expenditure on Voluntary Retirement Scheme (VRS) is charged to the Statement of Profit and Loss when incurred.

5.13 Share-based payments

The Company issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair value as at the date of grant. The fair value determined at the grant date of the equity-settled

share-based payments is expensed on a straight-line basis over the vesting period, based on the Company’s estimate of the shares that will eventually vest with corresponding increase in equity. Fair value of the options on the grant date is calculated considering the following:

- Including the impact of market-based performance conditions (e.g. equity share price of an entity) and non-vesting conditions (e.g. holding the shares for the specific period of time)

- Excluding the impact of service and non-market performance conditions (e.g. achieving revenue or profitability target)

At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity. However, fair value of options is not remeasured subsequently.

5.14 Cash flow statement

Cash flows are reported using the indirect method, whereby the net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

5.15 Earnings per share

Basic earnings per share

Basic earnings per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

Diluted earnings per share

Diluted earnings per share is computed by dividing the profit after tax after considering the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been

issued upon conversion of all dilutive potential equity shares including the treasury shares held by the Company to satisfy the exercise of the share options by the employees.

5.16 Cash and cash equivalents

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

5.17 Fair value measurement

The Company measures financial instruments, such as investments (other than equity investments in Subsidiaries, Joint Ventures and Associates) and derivatives at fair values at each Balance Sheet date.

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

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

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

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

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

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

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

All assets and liabilities (for which fair value is measured or disclosed in the financial statements) are categorised within the fair value hierarchy, described as follows, based

on the lowest level input that is significant to the fair value measurement as a whole:

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

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable other than quoted prices included in Level 1.

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

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

Management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for disposal in discontinued operations.

5.18 Financial Instruments

Initial recognition and subsequent measurement

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

i. Financial assets

Initial recognition and measurement

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

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or

loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price

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

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

Subsequent measurement

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

• Financial assets at amortised cost (debt instruments)

• Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)

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

• Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

The Company’s financial assets at amortised cost include trade receivables, loan to subsidiary, joint ventures, and associates, and loans to employees.

Financial assets at fair value through profit or loss

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

This category includes derivative instruments and listed equity investments which the Company had not irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are recognised as other income in the statement of profit or loss when the right of payment has been established.

A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if: the economic characteristics and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; and the hybrid contract is not measured at fair value through profit or loss. Embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value through profit or loss category.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Company’s statement of financial position) when:

• The rights to receive cash flows from the asset have expired; Or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement and either

a. the Company has transferred substantially all the risks and rewards of the asset, or

b. the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset

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

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

Impairment

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company applies a simplified approach in calculating

ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date.

For debt instruments at fair value through OCI, the Company applies the low credit risk simplification. At every reporting date, the Company evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Company reassesses the risk of the debt instruments. In addition, the Company considers that there has been a significant increase in credit risk when contractual payments are more than 30 days past due.

The Company considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

ii. Financial liabilites

Initial recognition and measurement

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

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

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

Subsequent measurement

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

• Financial liabilities at fair value through profit or loss

• Financial liabilities at amortised cost (loans and borrowings)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

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

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

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in accounting standards are satisfied.

Financial liabilities at amortised cost

After initial recognition, interest-bearing borrowings and instruments are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

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

This category generally applies to interest-bearing borrowings and instruments.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the

recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

iii. Off setting of financial instruments

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

iv. Derivative financial instruments and hedge accounting Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such as forward currency contracts and interest rate swaps, to hedge its foreign currency risks and interest rate risks, respectively. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

For the purpose of hedge accounting, hedges are classified as:

• Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or an unrecognised firm commitment

• Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment

• Hedges of a net investment in a foreign operation

At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge.

The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Company will assess whether the

hedging relationship meets the hedge effectiveness requirements (including the analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).

A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:

• There is ‘an economic relationship’ between the hedged item and the hedging instrument.

• The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship.

• The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Company actually hedges and the quantity of the hedging instrument that the Company actually uses to hedge that quantity of hedged item.

Hedges that meet all the qualifying criteria for hedge accounting are accounted for, as described below:

Fair value hedges

The change in the fair value of a hedging instrument is recognised in the statement of profit or loss as other expense. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is also recognised in the statement of profit or loss as other expense.

For fair value hedges relating to items carried at amortised cost, any adjustment to carrying value is amortised through profit or loss over the remaining term of the hedge using the EIR method. The EIR amortisation may begin as soon as an adjustment exists and no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being hedged.

If the hedged item is derecognised, the unamortised fair value is recognised immediately in profit or loss.

When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss.

v Dividend and interest income

a. Dividend income from investments is recognised when the shareholder’s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably).

b. Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

6.1 Recent accounting 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 31 March, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from 1 April, 2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information is material if, when considered together with other information included in the Company’s financial statements, it can reasonably be expected to influence decisions that primary users of general purpose financial statements make on the basis of those financial statements. The amendment does not result in any changes in accounting policies of the Company, it impacted the accounting policy information disclosed in the financial statements.

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

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. The accounting policies may require such items to be measured at monetary amounts that cannot be observed directly and must

instead be estimated, In such case, entities develop accounting estimates. This amendment does not have any significant impact in its financial statements.

Ind AS 12 - Income Taxes

The amendment relates to deferred tax assets (DTA) related to assets and liabilities arising from single transaction such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The company has disclosed DTA on ‘Right To Use’ asset and ‘Lease Labilities’ on gross basis, there is no impact on Net DTA recognised.

Standards Issued but not effective

As on the date of these financial statements. MCA has not issued and standards or amendments to accounting standards which are effective from April 1, 2024

6.2 Significant Judgements and Key sources of Estimation in applying Accounting Policies

Information about significant judgments and key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:

a. Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company’s future taxable income against which the deferred tax assets can be utilized. In addition, significant judgment is required in assessing the impact of any legal or economic limits.

b. Useful lives of depreciable/amortizable assets (tangible and intangible): Management reviews its estimate of the useful lives of depreciable/amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to actual normal wear and tear that may change the utility of plant and equipment.

c. Classification of Leases: The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee’s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset’s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

d. Employee benefit: Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases, and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.

e. Provisions and Contingencies: The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37, ‘Provisions, Contingent Liabilities, and Contingent Assets’. The evaluation of the likelihood of the contingent events is applied best judgment by management regarding the probability of exposure to potential loss.

f. Impairment of financial assets: The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is an indication

of impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

g. Fair value measurement of Financial Instruments: When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The input to these models is taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk, and volatility.

h. Warranty : Warranty Provision is measured at discounted present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the liability. Product warranty liability and warranty expenses are recorded at the time the product is sold, if the claims of the customers under warranty are probable, and the amount can be reasonably estimated.

21 Borrowings (Contd..)

b. Nature of Security

Term loan-1

- Secured against first pari - passu charge on all movable fixed assets of the company (except those charged exclusively to other lenders)

- exclusive charge on movable fixed assets of unit located at plot no. 262 M, Industrial Area, Central Hope Town, Selakui, Dehradun (both present and future)

- first pari passu charged over movable fixed assets of the unit located at C-3/1, Selaqui Industrial Area Dehradun

- exclusive charge on immovable property located at Plot No C-2/1, UPSIDC Industrial Area, Selaqui, vikas Nagar, Dehradun, Uttarakhand

Term loan-2

- secured against first pari passu charge on all movable fixed assets of the company (except those exclusively charged with other banks).

- exclusive charge on immovable fixed assets of the company located at Khasra No. 1050/2, 1050/6, 1050/7, 1050/8, 1050/9 situated at Mauza East Hope Town, Tehsil Vikas Nagar, Pargana- Pachwa Doon, District - Dehradun (Uttrakhand)

- 25% of FD margin for letter of credit 3 facility II Term loan from Tata Capital Housing Finance Limited

Rate of interest

Rate of interest is bearing of 12.25% p.a.

Repayment term

Repayable in 120 monthly installments from August'' 2017 to August'' 2027

Security

Loan is secured by mortgage of the related asset Unit no. 2, TH-1, Rajpura Dehradun

Level III: 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 are included in level 3.

The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current 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:

i. Long-term fixed-rate and variable-rate receivables/borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

ii. The fair values of the quoted notes and bonds are based on price quotations at the reporting date. The fair value of unquoted instruments, loans from banks and other financial liabilities, obligations under finance leases, as well as other non-current financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. In addition to being sensitive to a reasonably possible change in the forecast cash flows or the discount rate, the fair value of the equity instruments is also sensitive to a reasonably possible change in the growth rates. The valuation requires management to use Unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value

iii. The fair values of the remaining fair value through other comprehensive income "FVTOCI" financial assets are derived from quoted market prices in active markets.

iv. The Company enters into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. Interest rate swaps, foreign exchange forward contracts and commodity forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing and swap models, using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. All derivative contracts are fully cash collateralised, thereby eliminating both counterparty and the Company’s own non-performance risk. As at 31 March 2024, the marked-to-market value of derivative asset positions is net of a credit valuation adjustment attributable to derivative counterparty default risk. The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognised at fair value.

c. Financials risk management objectives and policies:

The Company’s principal financial liabilities, other than derivatives, lease liabilities and other financial liabities and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include investment loans, trade and other receivables,cash and cash equivalents and other financial assets that derive directly from its operations

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks.

The Company’s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee. This process provides assurance to Company’s senior management that the Company’s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective.

d. Financial risk management

The Company''s senior management oversees the risk management framework and developing and monitoring the Company’s risk management policies. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company’s activities to provide reliable information to the Management and the Board to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

The risk management policies aims to mitigate the following risks arising from the financial instruments:

- Market risk

- Credit risk

- Liquidity risk

A 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 the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates, commodity prices and interest rates.

The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company’s policies approved by the Board of Directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the Management and the internal auditors on a continuous basis. The Company does not enter into or trade financial instruments, including derivatives for speculative purposes

I. Currency risk

a. The operation of the Company give exposure to foreign exchange risk arising from foreign currency transactions and foreign currency loans, primarily with respect to the US$. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The Company hedge the foreign currency exposure. The objective of the hedges is to minimize the volatility of the INR cash flows of highly probable forecast transactions.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for ch anges in variable interest rate. The borrowings of the Company are principally denominated in rupees with a mix of fixed and floating rates of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate and LIBOR rates. The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day-to-day operations like non-convertible bonds and short term loans. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings

The following table provides a break-up of the Company’s fixed and floating rate borrowings:

The Company is exposed to equity price risks arising from equity investments.

Equity investments in unlisted entities are held for strategic rather than trading purposes. The Company does not actively trade these investments.

Equity price sensitivity analysis

Company has invested mostly in subsidiries and joint venture. Hence no amount recognised in the statement of profit and loss as all amount of investment are carried at cost

B Credit Risk Management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

The provision for loss allowances of trade receivables have been made by the management on the evaluation of trade receivables. The management at each reporting period made an assessment on recoverability of balances and on the best estimate basis the provision for loss allowances have been created.

C Liquidity risk management

a. Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short term operational needs as well as for long term capital expenditure growth projects. The Company generates sufficient cash flow for operations, which together with the available cash and cash equivalents and short term investments provide liquidity in the short-term and long-term. The Company has established an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

b. The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. 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 tables include principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

e. Capital management

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.

46 Corporate Social Responsibility

As per section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of average net profit of the immediately preceding three financial year on Corporate Social Responsibility (''CSR'') activities. The nature of CSR activities identified are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation and environment sustainability. The Company has formed a CSR committee as per the Act.

47 Segment Reporting

The Chief Operating Decision Maker (CODM) comprises of the Board of Directors ,Vice Chairman and Managing Director and Chief Financial Officer which examines the Company’s performance on the basis of single operating segment Electronics Goods. Accordingly segment disclosure has not been made.

Revenue from two customers (Previous year two customers) of the Company represented approximately 50% (Previous year 48%) of the total revenue.

52 Other Statutory Information (Contd..)

(iii) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961.

(iv) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

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

(vi) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets during the current or previous year.

(vii) 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.

(viii) 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.

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

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

(xi) The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(xii) The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), are held in the name of the company.

53 There are no subsequent event observed after the reporting period which have material impact on the Company''s operation.

54 Figures for the previous year have been regrouped / rearranged wherever necessary to conform to the current year''s presentation.

In terms of our report attached For and on behalf of the Board of Directors

For S. N. Dhawan & CO LLP

Chartered Accountants Sunil Vachani Atul B. Lall

Firm''s Registration No. 000050N/N500045 Chairman Vice Chairman and Managing Director

Vinesh Jain Saurabh Gupta Ashish Kumar

Partner Chief Financial officer Company Secretary

Membership No. 087701

Place: Noida Place: Noida Place: Noida

Date: 15 May, 2024 Date: 15 May, 2024 Date: 15 May, 2024

---

Mar 31, 2023

i. The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

ii. Rental expenses recorded for short-term and law value leases is H 626 lakh for the year ended 31 March, 2023 (H 701 lakh for the year ended 31 March, 2022) the same have been recorded under the head ''other expenses'' in the financial statement.

iii. Lease contracts entered by the Company majorly pertains to buildings taken on lease to conduct its business in the ordinary course. The Company does not have any lease restrictions and commitment towards variable rent as per the contract

III Disclosures for operating leases other than leases coverd in Ind AS 116

i. The Company has entered into cancellable operating leases and transactions for leasing of accommodation for Factory Building, Service Centre, office space, Godown, transit house etc. The tenure of lease is generally one year.

Terms of lease include operating terms for renewal, increase in rent in future period and terms of cancellation.

ii. The Company has given its properties on lease one party. Tenure of leases is 3 years. Terms of the lease include operating term for renewal, increase in rent in future period and term of cancellation have a notice period of 3 months, accordingly no lease obligation have been disclosed.

37 Contingent liabilities and commitments (to the extent not provided for)
		(H in Lakhs)
Particulars	Year ended	Year ended
	31 March, 2023	31 March, 2022
a. Financial and other commitments
i. Letters of Credit (outstanding)	21,663	57,003
During the year, the Company has availed Non Fund based LC Limits of H 2,12,500 Lakh (Previous year H 1,64,500 Lakh) from various Banks to import raw material relating to manufacture of finished goods.
ii. Guarantees issued by bankers on behalf of Company	637	2,710
(These are covered by the charge created in favour of Company''s banker by way of hypothecation of stock and trade receivables besides pledge of fixed deposits as margin money)"
iii. Corporate guarantees given to Banks on behalf of subsidiaries for purpose of	205,800	156,300
financial assistance.
iv. Bill discounting with banks	7,348	25,824
v. a) Bond given to custom department on behalf of the joint venture company	100	1,300
b) Bond given to custom department on behalf of the Subsidiary company	1,600	1,220
c) Bond given to custom department under Authorised economic operator	1,107	18,550
b. Contingent liabilities
i. Disputed tax and other liabilities for:
a. Income tax	2,421	2,348
b. Sales tax	437	437
c. Goods and service tax	41	33
d. Excise, custom duty and service tax	2,124	2,353
e. Other disputes	18	36
ii. Summary of amount paid under protest against above:
a. Sales tax	140	140
b. Excise, custom duty and service tax*	907	860
c. Goods and service tax	14	13
	1,061	1,013

The Company has reviewed its disputed liabilities and proceedings and does not expect material impact on financial position of the Company.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments / decisions pending at various forums / authorities.

*Search was conducted by Directorate of Revenue Intelligence (DRI) at company''s premises on 20 December, 2021. During investigation, questions were raised on interpretation issue on classification on import of goods. To avoid unnecessary business interruption, the company had decided to make an deposit of H 700 Lakh under protest. The Company has not received any show cause notice or demand from the Department. The management is of the opinion that the Company is in compliance of law and the Company has strong chances of success against any dispute/demand and no liability will arise.

c.	Capital commitments:		(H in Lakhs)
	Particulars	As at 31 March, 2023	As at 31 March, 2022
	Commitments for acquisition of property, plant and equipment (net of advances)	610	2,035

d. The Company has other commitments, for purchase of goods and services and employee benefits, in the normal course of business.

e. There are no amount which were required to be transferred to Investor Education and Protection Fund by the Company.

f. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes in to account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurements in its entirety, which are described as follows:

Level I: includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds, ETFs and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level II: 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 III: 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 are included in level 3.

The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current 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:

i. Long-term fixed-rate and variable-rate receivables/borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

ii. The fair values of the quoted notes and bonds are based on price quotations at the reporting date. The fair value of unquoted instruments, loans from banks and other financial liabilities, obligations under finance leases, as well as other non-current financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. In addition to being sensitive to a reasonably possible change in the forecast cash flows or the discount rate, the fair value of the equity instruments is also sensitive to a reasonably possible change in the growth rates. The valuation requires management to use Unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value

iii. The fair values of the remaining fair value through other comprehensive income "FVTOCI" financial assets are derived from quoted market prices in active markets.

iv. The Company enters into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. Interest rate swaps, foreign exchange forward contracts and commodity forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing and swap models, using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity. All derivative contracts are fully cash collateralised, thereby eliminating both counterparty and the Company''s own non-performance risk. As at 31 March 2023, the marked-to-market value of derivative asset positions is net of a credit valuation adjustment attributable to derivative counterparty default risk. The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognised at fair value.

c. Financials risk management objectives and policies:

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks.

The Company''s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee. This process provides assurance to Company''s senior management that the Company''s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective.

d. Financial risk management

The Company''s senior management oversees the risk management framework and developing and monitoring the Company''s risk management policies. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company''s activities to provide reliable information to the Management and the Board to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

The risk management policies aims to mitigate the following risks arising from the financial instruments:

- Market risk

- Credit risk

- Liquidity risk A 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 the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates, commodity prices and interest rates.

The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company''s policies approved by the Board of Directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the Management and the internal auditors on a continuous basis. The Company does not enter into or trade financial instruments, including derivatives for speculative purposes

I. Foreign currency risk

a. The operation of the Company give exposure to foreign exchange risk arising from foreign currency transactions and foreign currency loans, primarily with respect to the US$. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (H). The risk is measured through a forecast of highly probable foreign currency cash flows. The Company hedge the foreign currency exposure. The objective of the hedges is to minimize the volatility of the H cash flows of highly probable forecast transactions.

b. The Company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. The company measures the forward contract at fair value through profit and loss.

c. The spot component of forward contracts is determined with reference to relevant spot market exchange rates. The differential between the contracted forward rate and the spot market exchange rate is defined as the forward points.

This is mainly attributable to the exposure outstanding on Currency USD receivables and payables by the Company at the end of the reporting period. Impact on profit for the year are gross of tax.

II. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for ch anges in variable interest rate. The borrowings of the Company are principally denominated in rupees and US dollars with a mix of fixed and floating rates of interest. The Company hedges its US dollar interest rate risk through interest rate swaps to reduce the floating interest rate risk. The Company has exposure to interest rate risk, arising principally on changes in base lending rate and LIBOR rates. The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day-to-day operations like non-convertible bonds and short term loans. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest rate swap contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

For other financial assets, the Company assesses and manages credit risk based on internal credit rating system. The finance function consists of a separate team who assesses and maintains an internal credit rating system. Internal credit rating is performed on a group basis for each class of financial instruments with different characteristics.

The Company''s exposure to customers is diversified and two customers contributes to more than 10% of outstanding trade receivable.

The provision for loss allowances of trade receivables have been made by the management on the evaluation of trade receivables.

The management at each reporting period made an assessment on recoverability of balances and on the best estimate basis the

provision for loss allowances have been created.

C Liquidity risk management

a. Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short term operational needs as well as for long term capital expenditure growth projects. The Company generates sufficient cash flow for operations, which together with the available cash and cash equivalents and short term investments provide liquidity in the short-term and long-term. The Company has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

b. "The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. 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.

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend

payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company''s policy is to keep the gearing ratio between 20% and 40%. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations.

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 interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2023 and 31 March 2022.

Loan covenants

Under the terms of the major borrowing facilities, the company is required to comply with the following financial covenants:

a. Current ratio Must be more then 1.33

b. Interest Coverage ratio must be more then 4.0 time

c. DSCR >1.5

d Total Debt /EBIDTA < 2.0 e Total Outside liabilities / Total Net worth <2.5

f At least 30% of Collection (excluding Xiaomi sale) to be routed through HDFC Bank Limited

44 Corporate Social Responsibility

As per section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of average net profit of the immediately preceding three financial year on Corporate Social Responsibility (''CSR'') activities. The nature of CSR activities identified are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. The Company has formed a CSR committee as per the Act.

45 Segment Reporting

The Chief Operating Decision Maker (CODM) comprises of the Board of Directors ,Vice Chairman and Managing Director and Chief Financial Officer which examines the Company''s performance on the basis of single operating segment Electronics Goods. Accordingly segment disclosure has not been made.

Revenue from two customers (Previous year two customers) of the Company represented approximately 48% (Previous year 54%)of the total revenue .

49 The Board of Directors have recommended a final dividend of 150 % (H 3 per Equity Share) for the financial year 2022-2023 subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company.

50 Other Statutory information

(i) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies.

(ii) No penalties were imposed by the regulator during the financial year ended 31 March, 2023.

(iii) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961.

(iv) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(v) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(vi) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets during the current or previous year.

(vii) 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."

(viii) 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."

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

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

(xi) The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(xii) The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), are held in the name of the company.

51 There are no subsequent event observed after the reporting period which have material impact on the Company''s operation.

52 Figures for the previous year have been regrouped / rearranged wherever necessary to conform to the current year''s presentation.

---

Mar 31, 2022

Pursuant to the approval of the shareholders accorded on 7 March, 2021 vide postal ballot conducted by the Company, each equity share of face value of H 10 per share was sub-divided into five equity shares of face value of H 2 per share, with effect from 19 March, 2021.

b. Terms and rights of equity shareholders

The Company has only one class of equity shares having par value of H 2 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by each share holders. There is no restriction on distribution of dividend, however, the same is subject to the approval of the share holders in the annual general meeting except in the case of interim dividend.

The Board of Directors have recommended a final dividend of 100 % (INR 2 per Equity Share of H2 each) for the financial year 20212022 subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company.

f. Shares allotted as fully paid pursuant to contract(s) without payment being received in cash during the period of five years immediately preceding the reporting date

The Company has allotted 6,277,337 fully paid up shares of face value H 10 each during the year ended 31 March 2017, pursuant to bonus issue approved by share holders in the Extra Ordinary general meeting held on 20th September, 2016 and Company has allotted 4 bonus shares for every 3 shares held.

g. Shares held by Holding or ultimate Holding company

The company doesn''t have any Holding or ultimate Holding company.

h. Initial Public Offer

The Company had made an Initial Public Offer (IPO) during the year ended 31st March 2018, for 33,93,425 equity shares of H 10 each, comprising of 3,39,750 fresh issue of equity shares by the Company and 30,53,675 equity shares offered for sale by share holders. The equity shares were issued at a price of H 1,766 per share (including premium of H 1,756 per share). Out of the total proceeds from the IPO of H 59,928 Lakhs, the Company''s share was H 6000 Lakhs from the fresh issue of 339,750 equity shares. Fresh equity shares were allotted by the Company on 14th September 2017 and the shares of the Company were listed on the stock exchanges on 18th September 2017.

i. Shares reserved for issue under option

For details of shares reserved for issue and shares issued under the Employee Stock Option Plan (ESOP) of the Company, refer note 43. These options are granted to the employees subject to cancellation under circumstance of his cessation of employment with the Company on or before the vesting date.

a. General reserve:

The Company had transferred a part of the net profit of the Company to general reserve in earlier years. It also includes amount transferred to general reserve for share option exercised during the year and earlier years.

b. Share premium:

The amount received in excess of the face value of the equity shares issued by the Company is recognised in securities premium.

c. Capital Redemption reserve:

The reserve has been created by buy back of equity shares and Fully convertible cumulative participatory preference shares.

d. Other comprehensive income:

Other comprehensive income comprises the balance of remeasurement of retirement benefit plans.

e. Share option outstanding:

The above reserve relates to share options granted by the Company to its employees under its employee share option plan.

f. Retained earnings:

Retained earnings are profits of the Company earned till date less transferred to other reserves and dividend paid during the year.

a. Term loan of H 5,004 lakhs (previous year 3,650 lakhs) from Qatar bank is repayable in 8 half yearly instalments including two year moratorium, 40% in 4 equal half yearly instalments from 31 July, 2022 and remaining 60% in rest 4 equal half yearly instalments . Rate of interest on loan is linked to one year MCLR 1.10%of bank and interest is to be paid on monthly basis. The loan is secured against exclusive charge on land, building and machinery situted at plot no 30 & 31 EMC 2 Tirupati , Chittoor (Andhra Pradesh), current assets and including cash flows of the said project with security cover of 1.25 times and exclusive mortgage and hypothecation charge on current assets.

c. Security details of term loan from HDFC Bank Limited are as follows:

Term loan-1

Secured against exclusive charge on movable fixed assets of the company Located in 262M, Central Hope Town, SeLakui, Dehradun and C-3/1, Selaqui Industrial Area Dehradun, first pari passu charge on all movable fixed assets of the company (except those exclusively charged with other banks), and exclusive charge on immovable property located at Plot No C-2/1, UPSIDC Industrial Area, Selaqui, Dehradun.

Term loan-2 and Term loan-3

The loan is secured against exclusive charge on movable fixed assets of the company located at Khasra No. 1050/2, 1050/6, 1050/7, 1050/8, 1050/9 situated at Mauza East Hope Town, Tehsil Vikas Nagar , Pargana- Pachwa Doon, District - Dehradun (Uttrakhand), first pari passu charge on all movable fixed assets of the company (except those exclusively charged with other banks).

d. Vehicle loans are secured by way of hypothecation of the related assets. These are repayable in maximum sixty equal monthly instalments, repayment period is from 2017 ending on 2022-2023, bearing interest rate varying from 8.70% p.a to 10.06% p.a.

e. Loan is secured by mortgage of the related asset and is repayable in 120 monthly instalments from August'' 2017 to August'' 2027 bearing interest rate of 9.15% p.a.

f. The company took on lease a land from NOIDA for a period of 90 years at Plot No.6, Sector 151, Noida admeasuring 21,000 sq mtr on 10th August, 21 for an allotment value of H 2,917 lakh against which the company made an upfront payment of H 875 lakh and the balance of H 2,042 lakh was to be paid in 10 equal half yearly instalments starting December'' 21 and last instalment to be paid in June'' 26. Out of the balance amount H 168 lakh was paid in December'' 21 and the Interest is being levied at SBI MCLR Rate as decided. No assets have been pledged or mortgaged against the deferred payment allowed by the authority.

I Borrowings from banks (comprising of Libor financing -Buyer Credit backed by SBLC/Bank guarntee) are secured on pari-passu basis over all the present and future book debts and stock-in-trade comprising of raw material, Components, work in progress and finished goods. These are further secured by first pari-passu charge on entire block of (present and future) Property, Plant and Equipment comprising of land, building, plant and machinery etc. coupled with equitable mortgage of land and property at B-14 & B-15, Phase-II and Exclusive Charge over C-33 Phase II Noida (UP) and Exclusive Charge over Industrial Property located at Plot 18, Block B, Phase II, Noida (UP), Exclusive Charge over Industrial Property located Khasra No. 1050, Central Hope Town, Industrial Area, Selaqui, Dehradun (Uttarakhand), exclusive Charge on movable Fixed Assets of the unit located at plot no 262M, Industrial area, Central hope Town, Selaqui, and District - Dehradun (both Present and Future). First Pari Passu Charge over Movable Fixed Assets of unit located at C-1 Selaqui industrial Area, Dehradun (Uttrakhand). First Pari Passu charge over current assets of Co-borrower (DGPL), both present and future for Co-borrowers Limits. First Pari Passu Charge (with Bank''s overseas Business Unit only) on the entire moveable fixed assets (except those exclusively charged to other lenders) of the borrower, both present and future. Second Pari Passu Charge by way of equitable mortgage over the immovable fixed assets at plot no 14 & 15, Block B, Phase 2, Noida Uttar Pradesh. Second Pari Passu Charge on the entire equitable mortgage over the immovable fixed assets (except those exclusively charged to other lenders) at plot no 14 & 15, Block B, Phase 2, Noida Uttar Pradesh.

II For security clause and repayment terms of borrowings, refer note 19.

37 Contingent liabilities and commitments (to the extent not provided for)		(H in Lakhs)
Particulars	Year ended 31 March, 2022	Year Ended 31 March, 2021
a. Contingent liabilities
Contingent liabilities not provided in respect of
i. Letters of Credit (outstanding)	57,003	1,03,342
During the year, the Company has availed Non Fund based LC Limits of H 1,64,500 Lakh (Previous year H 97,000 lakhs) from various Banks to import raw material relating to manufacture of finished goods.
ii. Guarantees issued by bankers on behalf of Company (These are covered by the charge created in favour of Company''s banker by way of hypothecation of stock and trade receivables besides pledge of fixed deposits as margin money)	2,710	1,759
iii. Corporate guarantees given to Banks on behalf of subsidiary for purpose of financial assistance.	1,56,300	50,800
iv. Bill discounting with banks	25,824	7,117
v. a) Bond given to custom department on behalf of the joint venture company	1,300	1,400
b) Bond given to custom department on behalf of the Subsidiary company	1,220	-
b) Bond given to custom department under AEO	18,550	6,170
vi. Claims against the Company not acknowledged as debt
a. Income tax	2,348	2,348
b. Sales tax	437	216
c. Goods and service tax	33	26
d. Excise, custom duty and service tax	2,353	1,723
e. Other disputes	36	19

(H in Lakhs)
Particulars	Year ended 31 March, 2022	Year Ended 31 March, 2021
vii. Summary of amount paid under protest
a. Sales tax	140	39
b. Excise, custom duty and service tax*	860	162
c. Goods and service tax	13	10
1,013		211

Future cash outflows in respect of the above matters are determinable only on receipt of judgments / decisions pending at various forums / authorities.

* Search was conducted by Directorate of Revenue Intelligence (DRI) at company premises on 20 December, 2021. During investigation, questions were raised on interpretation issue on classification on import of goods. To avoid unnecessary business interruption, company has decide to pay a adhoc deposit of H 700 Lakhs under protest in lieu of the alleged differential duty. Show cause notice has not been received from Department till the balance sheet date, In absense of same, liability amount is not ascertainable. The company is of opinion that demand is not sustainable.The management is of the opinion that the Company is in compliance of law and the Company has strong chances of success against any dispute/demand.

b. Contingent assets

During the current year, the Company have not recognised incentive from Government, considering the uncertainty over realisation of the incentive income/deferred grant. During the current year the Company has not recognised H 867 lakhs (Previous year March 31,2021 H 523 lakhs) incentive income/deferred grant on accrual basis (Refer note 52).

d. The Company has other commitments, for purchase of goods and services and employee benefits, in the normal course of business.

e. There are no amount which were required to be transferred to Investor Education and Protection Fund by the Company.

f. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

c. During the previous year, pursuant to the approval of the shareholders accorded on March 7, 2021 vide postal ballot conducted by the Company, each equity share of face value of H 10/- per share was subdivided into five equity shares of face value of H 2/- per share, with effect from March 19, 2021. Consequently, the basic and diluted earnings per share had been computed for all the periods presented in the standalone financial statements of the Company on the basis of the new number of equity shares in accordance with Ind AS 33 - Earnings per Share

42 Financial instruments

a. Capital Management

The Company objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Sourcing of capital is done through judicious combination of equity/internal accruals and borrowings, both short term and long term. Net debt (total borrowings less current investments and cash and cash equivalents) to equity ratio is used to monitor capital.

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. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2022 and 31 March 2021.

i. Loan covenants

Under the terms of the major borrowing Facilities, the company is required to comply with the following financial covenants:

a. Current ratio Must be more then 1.33

b. Interest Coverage ratio must be more then 4.0 time

c. DSCR >1.5

d Total Debt /EBIDTA < 2.0 e Total Outside liabilities / Total Networth <2.5

f At least 30% of Collection (exculding Xiaomi sale) to be routed through HDFC bank account

a. There are no significant difference among the fair value of financial assets and liabilities classified as measured at cost or measured at fair value through profit and loss accordingly no separate disclosure of the same have been disclosed.

b. The derivative instruments with respect to forward contract are accounted for as fair value hedge.

c. The company has not classified any financial assets as hedge instruments and hence hedge accounting is not applicable.

Valuation technique and key input

Discounted cash flow. Future cash flow estimated based on forward exchange rates (from observable forward exchange rates at the end of reporting period) and contract forward rates.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds, ETFs and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

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 transfers between levels 1 and 2 during the year.

Valuation processes

a. The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Chief Financial Officer (CFO) and the audit committee (AC).

b. Discussions of valuation processes and results are held between the CFO, AC and the valuation team quarterly, in line with the company''s quarterly reporting periods.

d. Summary statement of standalone financial risk management

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments, trade and other receivables and cash and cash equivalents that are derived directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market, credit and liquidity risk.

The Company''s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee. This process provides assurance to Company''s senior management that the Company''s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective.

A. Credit Risk Management

Credit risk is managed on group basis. For deposits only high rated banks/institutions are accepted.

For other financial assets, the company assesses and manages credit risk based on internal credit rating system. The finance function consists of a separate team who assesses and maintains an internal credit rating system. Internal credit rating is performed on a group basis for each class of financial instruments with different characteristics.

The Company''s exposure to customers is diversified and two Customers contributes to more than 10% of outstanding trade receivable 42,852 lakhs (Previous year H H 24,596 Lakh) as at 31 March, 2022.

The provision for loss allowances of trade receivables have been made by the management on the evaluation of trade receivables. The management at each reporting period made an assessment on recoverability of balances and on the best estimate basis the provision for loss allowances have been created.

B. Liquidity Risk

1 The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings up cash forecast for short term and long term needs.

2 The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are invested in certain fixed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. 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 tables include principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

The following table details the Company''s expected maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The inclusion of information on non-derivative financial assets is necessary in order to understand the Company''s liquidity risk management as the liquidity is managed on a net asset and liability basis.

C. Market Risk Management

I. Foreign Currency Risk

a. The operation of the Company give exposure to foreign exchange risk arising from foreign currency transactions and foreign currency Loans, primarily with respect to the US$. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The Company hedge the foreign currency exposure. The objective of the hedges is to minimize the volatility of the INR cash flows of highly probable forecast transactions.

b. The Company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. The company measures the forward contract at fair value through profit and loss.

c. The spot component of forward contracts is determined with reference to relevant spot market exchange rates. The differential between the contracted forward rate and the spot market exchange rate is defined as the forward points.

II. Cash flow and Interest rate risk

The Company''s main interest rate risk arises from Long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. The Company''s borrowings at variable rate were mainly denominated in INR and USD.

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

III. Price Risk

The entity do not have any investment in quoted securities or other equity instruments except for unquoted investments in subsidiaries and jointly controlled entity. Thus, the company is not exposed to any price risk.

43 Employee Stock Option Plan

The company had a Dixon Technologies (India) Limited — Employee Stock Option Plan, 2018 (''Dixon ESOP 2018'') and Dixon Technologies (India) Limited — Employee Stock Option Plan, 2020 (''Dixon ESOP 2020'') which provided for the grant of equity shares of the company to the eligible employees of the company and its subsidiary companies. The board of directors recommended the establishment of the Dixon ESOP 2018 and Dixon ESOP 2020 to the shareholders on 26th May, 2018 and 22nd August, 2020 respectively and shareholders approved the recommendations of the Board of Directors in Annual General Meeting held on 25th July, 2018 and 29th September, 2020 respectively. The maximum aggregate number of shares that may be awarded under Dixon ESOP 2018 and Dixon ESOP 2020 was 500,000 equity shares and 300,000 Equity Shares respectively. Further, effective 19th March, 2021, the equity shares of the Company have been splitted from 1 equity share of H 10/- each to 5 equity shares of H 2/- each, therefore, the aforementioned numbers of equity shares have been adjusted accordingly in the below table. Under Dixon ESOP 2018, the company has approved 4 grants vide its meeting held on 31st October, 2018,13th November, 2019, 04th August, 2020 adn 25th March, 2022 and under Dixon ESOP 2020 has approved one grant vide its meeting held on 30th October, 2020. As per the plan, option granted under Dixon ESOP 2018 would vest in not less than one year and not more than 4 years from the date of grant of such options and the options granted under Dixon ESOP 2020 would vest in not less than one year and not more than 5 years from the date of grant of such options. Both the Plans are Equity Settled Plans.

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to

various risks as follow:

a. Salary Increases- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

b. Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

c. Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan''s liability.

d. Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

e. Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.

45 Corporate Social Responsibility

As per section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of average net profit for the immediately preceding three financial year on Corporate Social Responsibility (''CSR'') activities. The area for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act.

46 Segment Reporting

The Chief Operating Decision Maker (CODM) comprises of the Board of Directors, Vice Chairman and Managing Director and Chief Financial Officer which examines the Company''s performance on the basis of single operating segment Electronics Goods; accordingly segment disclosure has not been made.

Revenue from two customers (Previous year three customers) of the Company represented approximately H 4,02,752 Lakhs (Previous year H 307,103 Lakhs) individually more than 10% of the Company''s total revenue.

i. The Company does not face a significant Liquidity risk with regard to its Lease LiabiLities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

ii. Rental expense recorded for short-term and low value leases is H 701 lakhs for the year ended March 31, 2022, (H 519 lakhs for the year ended March 31, 2021)the same have been recorded under the head ''Other expenses'' in the financial statements.

iii. Rental income on assets given on sub-Lease is H NiL for the year ended 31 March, 2022. (H NiL for the year ended 31 March, 2021)

iv. Lease contracts entered by the Company majorLy pertains for buiLdings taken on Lease to conduct its business in the ordinary course. The Company does not have any Lease restrictions and commitment towards variabLe rent as per the contract.

50 Consequent to the disruption caused due to COVID-19, the Company has made an assessment as at March 31, 2022 of recoverabiLity of the carrying vaLues of its assets such as property, pLant and equipment, intangibLe assets having indefinite usefuL Life, inventory, trade receivabLes, and other current assets giving due consideration to the internaL and externaL factors. Further, on account of continued spread of COVID-19 disease in the country, the Company has made timeLy and requisite changes in the business modeL which has resuLted in consistent growth across the product segments during the year. The Company is continuousLy monitoring the situation arising on account of COVID-19 and wiLL make appropriate action required, if any.

51 The Board of Directors have recommended a finaL dividend of 100 % (H 2/- per Equity Share of H 2/- each) for the financial year 20212022 subject to the approvaL of the sharehoLders in the ensuing AnnuaL GeneraL Meeting of the Company.

52 The Code on SociaL Security, 2020 (''Code'') reLating to empLoyee benefits, during empLoyment and post-empLoyment benefits, has received the PresidentiaL assent in September 2020. This Code has been pubLished in the Gazette of India. However, the effective date from which the changes are appLicabLe is yet to be notified and the ruLes for quantifying the financiaL impact are aLso yet to be issued. The Company wiLL evaLuate the impact of the Code and wiLL give appropriate impact in the financiaL statements in the period in which the Code becomes effective and the reLated ruLes are pubLished.

53 Other Statutory information

(i) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(ii) No penalties were imposed by the regulator during the year during the financial year ended 31 March, 2022.

(iii) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(iv) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(v) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(vi) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(vii) 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.

(viii) 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.

(ix) The Company have not been declared wilful defaulter by any bank or financial institution or government or any government

authority.

(x) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31, 2022 and March 31, 2021.

(xi) The Company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

(xii) The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in note(s),are held in the name of the company.

54 There are no subsequent event observed after the reporting period which have material impact on the Company''s operation.

55 Figures for the previous year have been regrouped / rearranged wherever necessary.

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Mar 31, 2021

Pursuant to the approval of the shareholders accorded on 7 March, 2021 vide postal ballot conducted by the Company, each equity share of face value of H 10 per share was sub-divided into five equity shares of face value of H 2 per share, with effect from 19 March, 2021.

Terms and rights of equity shareholders

The Company has only one class of equity shares having par value of H 2 per share (Previous year H 10 per share). Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by each share holders. There is no restriction on distribution of dividend, however, the same is subject to the approval of the share holders in the annual general meeting except in the case of interim dividend.

The Board of Directors have recommended a final dividend of 50 % (H 1.00 per Equity Share of H 2.00 each) for the financial year 2020-2021 subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company.

Shares allotted as fully paid pursuant to contract(s) without payment being received in cash during the period of five years immediately preceding the reporting date

The Company has allotted 62,77,337 fully paid up shares of face value H 10 each during the year ended 31 March 2017, pursuant to bonus issue approved by share holders in the Extra Ordinary general meeting held on 20th September, 2016 and Company has allotted 4 bonus shares for every 3 shares held.

Shares held by Holding or ultimate Holding company

The company doesn''t have any Holding or ultimate Holding company.

Initial Public Offer

The Company had made an Initial Public Offer (IPO) during the year ended 31st March 2018, for 33,93,425 equity shares of H 10 each, comprising of 3,39,750 fresh issue of equity shares by the Company and 30,53,675 equity shares offered for sale by share holders. The equity shares were issued at a price of H 1,766 per share (including premium of H 1,756 per share). Out of the total proceeds from the IPO of H 59,928 Lakhs, the Company''s share was H 5999.99 Lakhs from the fresh issue of 339,750 equity shares. Fresh equity shares were allotted by the Company on 14th September 2017 and the shares of the Company were listed on the stock exchanges on 18th September 2017.

Shares reserved for issue under option

For details of shares reserved for issue and shares issued under the Employee Stock Option Plan (ESOP) of the Company, refer note 41. These options are granted to the employees subject to cancellation under circumstance of his cessation of employment with the Company on or before the vesting date.

General reserve:

The Company had transferred a part of the net profit of the Company to general reserve in earlier years. It also includes amount transferred to general reserve for share option exercised during the year and earlier years.

Share premium:

The amount received in excess of the face value of the equity shares issued by the Company is recognised in securities premium.

c. Capital Redemption reserve:

The reserve has been created by buy back of equity shares and fully convertible cumulative participatory preference shares

d. Other comprehensive income:

Other comprehensive income comprises the balance of remeasurement of retirement benefit plans.

e. Share option outstanding:

The above reserve relates to share options granted by the Company to its employees under its employee share option plan.

f. Retained earnings:

Retained earnings are profits of the Company earned till date less transferred to other reserves and dividend paid during the year.

a. USD 20,00,000 Foreign currency loan (sanctioned) from Standard Chartered Bank was secured against first pari passu charge on movable Property, Plant and Equipment excluding vehicles (both Present & future), and on immovable Plot B-14-15, Phase-II, Noida (UP) (including building) and second charges on current assets (both Present and future), further secured by personal guarantee of Chairman Mr. Sunil Vachani which was released on loan repayment and was repayable in 17 Quarterly instalments from December, 2016. Loan fully repaid on December, 2020. Rate of interest was Libor 275 BPS and loan was fully hedged.

b. Term loan of H 3,650 lakhs from Qatar bank is repayable in 8 half yearly instalments including two year moratorium, 40% in 4 equal half yearly instalments from 31 July, 2022 and remaining 60% in rest 4 equal half yearly instalments . Rate of interest on loan is linked to one year MCLR 1.10%of bank and interest is to be paid on monthly basis. The loan is secured against exclusive charge on land, building and machinery situted at plot no 30 & 31 EMC 2 Tirupati , Chittoor (Andhrapradesh), current assets and including cash flows of the said project with security cover of 1.25 times and exclusive mortgage and hypothecation charge on current assets.

c. Term loan of H 2,000 lakhs from HDFC bank is repayable in 5 years including one year moratorium followed by 20%, 20%, 30%, and 30% repayment in 2nd, 3rd, 4th and 5th year respectively. Rate of interest on loan is linked to 6 month MCLR .60% of bank and interest is to be paid on monthly basis. The loan is secured against exclusive charge on movable fixed assets of the company located in 262M, Central Hope Town, Selakui, Dehradun and C/1 Selakui Industrial Area, Dehradun, first pari passu charge on all movable

fixed assets of the company (except those exclusively charged with other banks), and exclusive charge on immovable property located at Plot No C-2/1, UPSIDC Industrial Area, Selakui, Dehradun.

d. Vehicle loans are secured by way of hypothecation of the related assets. These are repayable in maximum sixty equal monthly instalments, repayment period is from 2017 ending on 2022, bearing interest rate varying from 8.70% p.a to 10.06% p.a.

e. Loan is secured by mortgage of the related asset and is repayable in 120 monthly instalments from August'' 2017 to August'' 2027 bearing interest rate of 9.15% p.a.

a. Borrowings from banks (comprising of Libor financing -Buyer Credit backed by SBLC/Bank guarntee) are secured on pari-passu basis over all the present and future book debts and stock-in-trade comprising of raw material, Components, work in progress and finished goods. These are further secured by first pari-passu charge on entire block of (present and future) Property, Plant and Equipment comprising of land, building, plant and machinery etc. coupled with equitable mortgage of land and property at B-14 & B-15, Phase-II and Exclusive Charge over C-33 Phase II Noida (UP) and Exclusive Charge over Industrial Property located at Plot 18, Block B, Phase II, Noida (UP), Exclusive Charge over Industrial Property located Khasra No. 1050, Central Hope Town, Industrial Area, Selaqui, Dehradun (Uttarakhand), exclusive Charge on movable Fixed Assets of the unit located at plot no 262M, Industrial area, Central hope Town, Selaqui, and District - Dehradun (both Present and Future). First Pari Passu Charge over Movable Fixed Assets of unit located at C-1 Selaqui industrial Area, Dehradun (Uttrakhand). First Pari Passu charge over current assets of Coborrower (DGPL), both present and future for Co-borrowers Limits. First Pari Passu Charge (with Bank''s overseas Business Unit only) on the entire moveable fixed assets (except those exclusively charged to other lenders) of the borrower, both present and future. Second Pari Passu Charge by way of equitable mortgage over the immovable fixed assets at plot no 14 & 15, Block B, Phase 2, Noida Uttar Pradesh. Second Pari Passu Charge on the entire equitable mortgage over the immovable fixed assets (except those exclusively charged to other lenders) at plot no 14 & 15, Block B, Phase 2, Noida Uttar Pradesh.

b. During the previous year, Commercial paper for H 2,500 lakhs were issued through IPA account with HDFC bank to HDFC bank on 5 March, 2020 for a period of 90 days.

c. During the previous year, H 1,420 lakhs was repayable to Padget Electronics Private Limited, related company of group. Interest at 3 months SBI MCLR is charged on outstanding balances.

d. During the year, the Company has availed Non Fund based LC Limits of H 93,000 Lakh from various Banks to import raw material relating to manufacture of finished goods in LED TV Business which has been backed by 105% Bank Guarantee amounting to H 97,000 Lakh.

e. The Company has other commitments, for purchase of goods and services and employee benefits, in the normal course of business.

f. There are no amount which were required to be transferred to Investor Education and Protection Fund by the Company.

g. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

i. The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

ii. Rental expense recorded for short-term and low value leases is H 518.63 lakhs for the year ended March 31, 2021, the same have been recorded under the head ‘Other expenses'' in the financial statements.

iii. Rental income on assets given on sub-lease is H Nil for the year ended 31 March, 2021. (H Nil for the year ended 31 March, 2020)

iv. Lease contracts entered by the Company majorly pertains for buildings taken on lease to conduct its business in the ordinary course. The Company does not have any lease restrictions and commitment towards variable rent as per the contract

c. Pursuant to the approval of the shareholders accorded on March 7, 2021 vide postal ballot conducted by the Company, each equity share of face value of H 10/- per share was subdivided into five equity shares of face value of H 2/- per share, with effect from March 19, 2021. Consequently, the basic and diluted earnings per share have been computed for all the periods presented in the Consolidated Financial Results of the Company on the basis of the new number of equity shares in accordance with Ind AS 33 -Earnings per Share

a. There are no significant difference among the fair value of financial assets and liabilities classified as measured at cost or measured at fair value through profit and loss accordingly no separate disclosure of the same have been disclosed.

b. The derivative instruments with respect to forward contract are accounted for as fair value hedge.

c. The company has not classified any financial assets as hedge instruments and hence hedge accounting is not applicable.

Discounted cash flow. Future cash flow estimated based on forward exchange rates (from observable forward exchange rates at the end of reporting period) and contract forward rates.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds, ETFs and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV

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 transfers between levels 1 and 2 during the year.

Valuation processes

a. The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Chief Financial Officer (CFO) and the audit committee (AC).

b. Discussions of valuation processes and results are held between the CFO, AC and the valuation team quarterly, in line with the company''s quarterly reporting periods.

d. Summary statement of standalone financial risk management

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments, trade and other receivables and cash and cash equivalents that are derived directly from its operations.

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market, credit and liquidity risk.

The Company''s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee. This process provides assurance to Company''s senior management that the Company''s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective.

A. Credit Risk Management

Credit risk is managed on group basis. For deposits only high rated banks/institutions are accepted.

For other financial assets, the company assesses and manages credit risk based on internal credit rating system. The finance function consists of a separate team who assesses and maintains an internal credit rating system. Internal credit rating is performed on a group basis for each class of financial instruments with different characteristics.

The Company''s exposure to customers is diversified and one Customer (Previous Year two customer) contributes to more than 10% of outstanding trade receivable H 24,596.41 Lakh (Previous year H 28,970.55 Lakh) as at 31 March, 2020.

The provision for loss allowances of trade receivables have been made by the management on the evaluation of trade receivables. The management at each reporting period made an assessment on recoverability of balances and on the best estimate basis the provision for loss allowances have been created.

B. Liquidity Risk

1 The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings up cash forecast for short term and long term needs.

2 The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are invested in certain fixed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. 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.

a. The operation of the Company give exposure to foreign exchange risk arising from foreign currency transactions and foreign currency loans, primarily with respect to the US$. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The Company hedge the foreign currency exposure. The objective of the hedges is to minimize the volatility of the INR cash flows of highly probable forecast transactions.

b. The company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk. The company measures the forward contract at fair value through profit and loss.

c. The spot component of forward contracts is determined with reference to relevant spot market exchange rates. The differential between the contracted forward rate and the spot market exchange rate is defined as the forward points.

The company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. The Company''s borrowings at variable rate were mainly denominated in INR and USD.

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

III. Price Risk

The entity do not have any investment in quoted securities or other equity instruments except for unquoted investments in subsidiaries and jointly controlled entity. Thus, the company is not exposed to any price risk.

41 Employee Stock Option Plan

The company had a Dixon Technologies (India) Limited — Employee Stock Option Plan, 2018 (‘Dixon ESOP 2018'') and Dixon Technologies (India) Limited — Employee Stock Option Plan, 2020 (‘Dixon ESOP 2020'') which provided for the grant of equity shares of the company to the eligible employees of the company and its subsidiary companies. The board of directors recommended the establishment of the Dixon ESOP 2018 and Dixon ESOP 2020 to the shareholders on 26th May, 2018 and 22nd August, 2020 respectively and shareholders approved the recommendations of the Board of Directors in Annual General Meeting held on 25th July, 2018 and 29th September, 2020 respectively. The maximum aggregate number of shares that may be awarded under Dixon ESOP 2018 and Dixon ESOP 2020 was 500,000 equity shares and 300,000 Equity Shares respectively. Under Dixon ESOP 2018, the company has approved 3 grants vide its meeting held on 31st October, 2018, 13th November, 2019 and 04th August, 2020 and under Dixon ESOP 2020 has approved one grant vide its meeting held on 30th October, 2020. As per the plan, option granted under Dixon ESOP 2018 would vest in not less than one year and not more than 4 years from the date of grant of such options and the options granted under Dixon ESOP 2020 would vest in not less than one year and not more than 5 years from the date of grant of such options. Both the Plans are Equity Settled Plans..

i. The current service cost and the net interest expense for the year are included in the ‘Employee benefits expense'' line item in the statement of profit and loss.

ii. The remeasurernent of the net defined benefit liability is Included-in other comprehensive income.

iii. The Company gratuity scheme is unfunded.

44 Segment Reporting

The chief operating decision maker (CODM) comprises of the Board of Directors, Vice Chairman & Managing Director and Chief financial officer which examines the Company''s performance on the basis of single operating segment Electronics Goods; accordingly segment disclosure has not been made.

Revenue from two customers (Previous year three customers) of the Company represented approximately H 307,103.01 Lakhs (Previous year H 2,38,642.14 Lakhs) individually more than 10% of the Company''s total revenue.

45 The Company had made an Initial Public Offer (''IPO'') during the Quarter ended 30 September, 2017, for 33,93,425 equity shares of H 10 each, comprising of 3,39,750 fresh issue of equity shares by the Company and 30,53,675 equity shares offered for sale by share holders. The equity shares were issued at a price of H 1,766 per share (including premium of H 1,756 per share). Out of the total proceeds from the IPO of H 59,928 Lakhs, the Company''s share was H 6,000 Lakhs from the fresh issue of 3,39,750 equity shares. Fresh equity shares were allotted by the Company on 14 September, 2017 and the shares of the Company were listed on the stock exchanges on 18 September, 2017.

a. Estimated IPO expenses reduced by H 54 Lakhs and accordingly expense transferred to General Corporate Expenses.

b. The members of the Company had, at its Annual general Meeting held on 29th September, 2020 approved "variation in the terms of the Object of the public issue as stated in the prospectus of the Company dated 11th September, 2017" whereby the unutilized amount aggregating to H 212 Lakhs (i.e. H 90 Lakhs pending to be utilised towards Finance the enhancement of our backward integration capabilities in the lighting products vertical at Dehradun Facility , and H 122 Lakhs pending to be utilised towards Upgradation of the information technology infrastructure of the Company, constituting 3.53% of Total Proceeds shall be utilized towards General Corporate Purpose between FY 2020 to FY 2022. During the year ended 31st March, 2021, the said unutilised amount of H 212 Lakhs has been utilised by the Company towards General Corporate Purpose. There are no further IPO proceeds outstanding for utilisation.

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Mar 31, 2018

4. Significant Judgments and Key sources of Estimation in applying Accounting Policies

Information about Significant judgments and Key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the Financial statements is included in the following notes:

- Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilized, In addition,

significant judgement is required in assessing the impact of any legal or economic limits.

- Useful lives of depreciable/ amortizable assets (tangible and intangible): Management reviews its estimate of the useful lives of depreciable/ amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to actual normal wear and tear that may change the utility of plant and equipment.

- Classification of Leases: The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

- Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.

- Provisions and Contingencies: The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37 ''Provisions, Contingent Liabilities and Contingent Assets''. The evaluation of the likelihood of the contingent events is applied best judgment by management regarding the probability of exposure to potential loss.

- Impairment of Financial Assets: The Company reviews its carrying value of investments carried at amortized cost annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment loss is accounted for.

- Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amount. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

- Fair value measurement of Financial Instruments: When the fair values of Financial assets and Financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The input to these models are taken from observable markets where possible, but where this not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility.

- Research & Development: The revenue expenditure on R&D is changed to statement of profit & loss of the year in which it is incurred. Expenditure which results in creation of capital assets is treated similar to other fixed assets.

- Warranty : Warranty Provision is measured at discounted present value using pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the liability Product warranty liability and warranty expenses are recorded at the time the product is sold, if the claims of the customers under warranty are probable and the amount can be reasonably estimated.

b) Terms & Right of Equity shareholders

Each holder of equity shares is entitled to one vote per shares, In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts, The distribution will be in proportion to the number of equity shares held by each share holders, There is no restriction on distribution of dividend, however, the same is subject to the approval of the share holders in the Annual General Meeting except in the case of Interim Dividend,

d) Terms & conditions of convertible Debentures

1 Convertible debentures amounting to Rs, 374,967,000 has been converted into 1290041 equity share on 27th August 2016 in compliance with applicable law, based on the formula stated in The Investment Agreement dated March 28, 2014 (as amended) and Share alloted on Premium Rs, 280,66 Per share

e) Stock Option Plan -The Company has allotted 314806 fully paid up shares of face value Rs, 10 each as on 17th September 2016 under the Scheme of ESOP as referred in Note 38 (11)

f) Shares allotted as fully paid pursuant to contract(s) without payment being received in cash during the period of five years immediately preceding the reporting date

The Company has allotted 6277337 fully paid up shares of face value Rs, 10 each during the year ended 31st March, 2017, pursuant to bonus issue approved by share holders in the Extra Ordinary general meeting held on 20th September, 2016 and Company has allotted 4 bonus shares for every 3 shares held, on number of share 4,708,004,

g) Share holding pattern with respect of Holding or ultimate Holding company

The company doesn''t have any Holding or ultimate Holding company,

h) Initial Public Offer

The Company had made an Initial Public Offer (IPO) during the year ended 31st March, 2018, for 33,93,425 equity shares of Rs, 10 each, comprising of 3,39,750 fresh issue of equity shares by the Company and 30,53,675 equity shares offered for sale by Selling share holders, The equity shares were issued at a price of Rs, 1766 per share (including premium of Rs, 1756 per share), Out of the total proceeds from the IPO of Rs, 59,928 Lakhs, the Company''s share was Rs, 5999,99 Lakhs from the fresh issue of 339,750 equity shares, Fresh equity shares were allotted by the Company on 14th September 2017 and the shares of the Company were listed on the stock exchanges on 18th September 2017

a) Debenture converted into Equity shares during the FY 2016-17

b) USD 2000000 Foreign currency loan from Standard Chartered Bank is secured against first pari passu charge on movable Property, Plant & Equipment excluding vehicles (both Present & future), and on immovable Plot B-14-15, Phase-II, Noida (UP) (including building) and second charges on current assets (both Present & future), is repayable in 17 Quarterly installments from December, 2016. Last installment payable on December, 2020. Rate of Interest Libor 275 BPS and loan is fully hedged.

c) Vehicle Loans are secured by way of hypothecation of the related assets. These are repayable in maximum sixty equal monthly installments, repayment period thereof varying from 2014 ending on 2022, bearing interest rate varying from 9.50% p.a. to 13.50% p.a.

d) Property Loan is secured by mortgage of the related asset and is repayable in 120 monthly installments from Aug''2017 to Aug''2027 bearing interest rate of 9.00% p.a.

e) The Company has finance lease contracts and the obligation under finance lease are secured by the less or’s title to the leased assets. Future minimum lease payments under finance lease contracts together with the present value of the net minimum lease payments.

C. Contingent Assets

(i) Claim for M-SIPS Incentives

The Company will get incentive on capital expenditure incurred for electrical appliances, A incentive of 25% of total capital expenditure and 100% of CVD/Excise paid is available, Incentive will be disbursed after fulfillment of specified conditions and submission of application to the Government Authority, Incentive will be granted once the agency appointed by Government Authority completes its verification and issues order in this regard, The company expects that an amount of Rs, 384,09 Lakhs will be sanctioned by Government Authority in this regard on approval accorded by the competent authority,

(ii) Investment subsidy for setting up industry in specified area in Andhra Pradesh

The Government of Andhra Pradesh vide Order No, GO(MS) No, 170 dated December 16, 2016 and GO(MS) No, 37 dated March 03, 2017 has announced certain fiscal incentives to the company for setting up industries in the notified Electronics Manufacturing Clusters (EMCs) of the State, Incentive will be disbursed after fulfillment of specified conditions and submission of application to the Government Authority and company expects Rs, 30,20 Lakhs as investment subsidy relating to the year

2. Assets Mortgage and/or pledged as security

The carrying amounts of assets pledged as security for current and non-current borrowings are :

3 . Statement under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED):

Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the Management, the following disclosures are made for the amounts due to the Micro, Small and Medium enterprises, who have registered with the competent authorities:

4. Leases

Disclosures for operating leases

i) The Company has entered into cancellable operating leases and transactions for leasing of accommodation for Factory Building, Service Centre, office space, Godown, transit house etc. The tenure of lease generally vary between one to three and thirty years. Terms of lease include operating terms for renewal, increase in rent in future period and terms of cancellation.

ii) The Company has given three different portions of its properties on lease to its Subsidiary, Joint venture and tenure of leases varies between 1 to 11 year. Terms of the lease include operating term for renewal, increase in rent in future period and term of cancellation.

- The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature,

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

- The company has not classified any financial assets as hedge instruments and hence hedge accounting is not applicable,

9. Summary Statement Of Standalone Financial Risk Management

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, The main purpose of these financial liabilities is to finance the Company''s operations, The Company''s principal financial assets include loans, trade and other receivables and cash and cash equivalents that are derived directly from its operations,

The Company''s financial risk management is an integral part of how to plan and execute its business strategies, The Company is exposed to market risk, credit risk and liquidity risk,

The Company''s senior management oversees the management of these risks, The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee, This process provides assurance to Company''s senior management that the Company''s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective,

A) Credit Risk Management

Credit risk is managed on a group basis, For banks and financial institutions, only high rated banks/institutions are accepted, For other financial assets, the company assesses and manages credit risk based on internal credit rating system, The finance function consists of a separate team who assesses and maintains an internal credit rating system, Internal credit rating is performed on a group basis for each class of financial instruments with different characteristics,

B) Liquidity Risk

1. The Company determines its liquidity requirement in the short, medium and long term. This is done by drawings up cash forecast for short term and long term needs.

2. The Company manage its liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalent position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity monitoring future cash flow and liquidity on a regular basis. Surplus funds not immediately required are invested in certain mutual funds and fixed deposit which provide flexibility to liquidate. Besides, it generally has certain undrawn credit facilities which can be assessed as and when required; such credit facilities are reviewed at regular basis.

C) Market Risk Management

1, Foreign Currency Risk

1 The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions and foreign currency loans, primarily with respect to the US$, Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the company''s functional currency (INR), The risk is measured through a forecast of highly probable foreign currency cash flows, The objective of the hedges is to minimize the volatility of the INR cash flows of highly probable forecast transactions,

2, The company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk, The company measures the forward contract at fair value through profit and loss not classified as hedge,

3, The spot component of forward contracts is determined with reference to relevant spot market exchange rates, The differential between the contracted forward rate and the spot market exchange rate is defined as the forward points,

II. Cash flow and fair value interest rate risk

The company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the group to cash flow interest rate risk, the group''s borrowings at variable rate were mainly denominated in INR & USD,

The company’s fixed rate borrowings are carried at amortized cost, They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates,

The entity do not have any in investments in quoted securities or other equity instruments except for investments in group entities. Thus, the company is not exposed to any price risk.

IV) Warranty & Guarantee Risk

The entity gives three years on warranty on LED Bulbs and one year on television. LED Bulb are replaced with new bulbs and in respect of television defective part is changed.

The entity sets its quality parameter and test products from production line on regular intervals. Before dispatch the products is selected on sample basis and test its quality to reduce chances of defective products out for delivery.

10. Capital Management

The Company objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic Investments. Sourcing of capital is done through judicious combination of equity/internal accruals and borrowings, both short term and long term. Net debt ( total borrowings less investments and cash and cash equivalents) to equity ratio is used to monitor capital.

11. Employee Stock Option Plan

Employee Stock Option Plan - 2010: The company had an Employee Stock Option Plan (''the 2010 Plan'') which provided for the grant of equity shares of the company to the eligible employees of the company and its subsidiary companies. The board of directors recommended the establishment of the 2010 plan to the shareholders on 3rd June 2008 and shareholders approved the recommendations of the board of director in Extra Ordinary General Meeting held on 3rd June 2008. The maximum aggregate number of shares that may be awarded under the 2010 plan was 4,37,000 shares. The company has approved 2 grants vide its meeting held on 2nd Nov''2010 and 1st July, 2015 As per the plan, option granted under ESOP would vest in not less than one year and not more than 3 years from the date of grant of such option. The Plans are Equity Settled Plans.

13. Employee Benefits Defined Contribution Plan

a) Provident Fund & Other Funds : A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions for provident fund and pension as per the provisions of the Provident Fund Act, 1952 and other acts to the government, The Company''s contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service, The company''s obligation is limited to the amounts contributed by it,

Defined Benefits Plan

Gratuity: The liability in respect of defined benefit plans includes Gratuity liability as per the provisions of the Payment of Gratuity Act, 1972 which is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees” services, The company''s obligation includes acturial risk and investment risk, Actuarial gains and losses in respect of post-employment are charged to the Profit and Loss Statement,

Explanations to the material adjustments made in the process of IND AS transition from previous GAAP a. Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period, Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base, The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP

In addition, the various transitional adjustments lead to temporary differences, Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity,

b. Re-Classifications

The Company has done the following reclassifications as per the requirements of Ind-AS :

i) Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset / liability,

ii) Remeasurement gain/loss on long term employee defined benefit plans are re-classified from statement of profit and loss to OCI,

iii) Excise duty on sales was netted off with Sales under Previous IGAAP and now it is required to be presented separately under IND AS

c. Forward Contract

Under IND AS mark to market gain/loss on restatement of forward contract as at the reporting date has been recognized in the Trade Payable as per Agreement with Vendors. Whereas under IGAAP accounting for forward contract was optional.

d. Leases

Under Ind AS, where the payments to the lessor are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases, straight lining of lease is not required. The same was required under AS-19.

The Company has initially recognized security deposit paid to the lessor at fair value and subsequently at amortized cost as per Ind AS 109.

e. Leases/Amortization Expense

Under India GAAP, lease agreement to use land was excluded from accounting of leases under AS 19. Under IND AS, use of land is not excluded from accounting of leases. Due to the above, measurement amount of lease, operating or finance has been changed resulting into change in amortization expenses.

f. Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended 31st March, 2018 increased by Rs. 13.87 Lakhs. There is no impact on the total equity as at 31st March, 2018.

g. Retained earnings

Retained earnings as at 1st April 2016 has been adjusted consequent to the above Ind AS transition adjustments.

h. Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes remeasurements of defined benefit plans and tax thereon. The concept of other comprehensive income did/does not exist under previous GAAP

i. Convertible Debentures

Under Ind AS, The requirement to separate out the equity and liability component of a compound instrument is consistence with the principle that a financial instrument must be classified in accordance with its substance, rather than its legal form. A compound instrument takes the legal form of a single instrument, while the substance is that both a liability and equity instrument exists require use of split accounting approach.

The proceeds is analysed between the debt component and the equity component. The debt is measured first and the equity component is the residual. The debt is the present value of mandatory payments discounted at market rate of interest for similar debts without conversion option.On conversion of a compound instrument at maturity, the entity should de-recognize the liability component and recognize it as equity. Equity issued on conversion is measured at the carrying amount of the liability component at the date of conversion The equity component recognized earlier shall remain in equity.

The concept of other comprehensive income did/does not exist under previous GAAP

18 The Company had made an Initial Public Offer (IPO) during the year, for 33,93,425 equity shares of Rs. 10 each, comprising of 3,39,750 fresh issue of equity shares by the Company and 30,53,675 equity shares offered for sale by Selling share holders, The equity shares were issued at a price of Rs. 1766 per share (including premium of Rs. 1756 per share), Out of the total proceeds from the IPO of Rs. 59,928 Lakhs, the Company''s share was Rs. 6,000 Lakhs from the fresh issue of 339,750 equity shares, Fresh equity shares were allotted by the Company on 14th September 2017 and the shares of the Company were listed on the stock exchanges on 18th September 2017

Note: The company has deposited Rs. 2400 lacs in scheduled banks as fixed deposit and balance in IPO current account in scheduled bank,

* Estimated IPO Expenses reduced by Rs. 20 lacs and accordingly expense transferred to General Corporate Expenses,

19 The two Subsidiaries (Transferor Companies) of the Company namely, Dixon Appliance Private Limited (''DAPL'') and Dixon Bhurji Moulding Private Limited (''DBMPL'') have been amalgamated with the Company in terms of the scheme of amalgamation (''Scheme'') sanctioned by the National Company Law Tribunal (NCLT), Allahabad pursuant to its Order dated 13th April, 2017. The Scheme became effective on 20th April 2017 with appointed date of 1st April 2016, The Company has accounted for amalgamation of the Transferor Companies in its books of accounts in accordance with pooling of interest method'' as prescribed under AS 14 as per the terms of the NCLT Order

20 The Company has been converted into a Public Limited Company and consequently the name of the Company changed from "Dixon Technologies (India) Private Limited” to "Dixon Technologies (India) Limited. A fresh certificate of incorporation pursuant to change of name was issued by the ROC on May 2, 2017,

21 Previous Year figures have been Regrouped/Rearranged wherever necessary

I. Key Managerial Personnel and their relatives

Name Designation

Key Managerial Personnel Executive

Mr. Sunil Vachani Chairman

Mr. Atul B. Lall Managing Director

Mr. Gopal Jagwan Chief financial officer (Till 4th May 2018)

Mr. Saurabh Gupta Chief financial officer (From 4th May 2018)

Non Executive Independent

Mr. Ramesh Chandra Chopra Independent Director

Mr. Manuji Zarabi Independent Director

Ms. Poornima Shenoy Independent Director

Mr. Manoj Maheshwari Independent Director

Relative of Key Managerial Personnel Relationship

Mrs. Gayatri Vachani Wife of Chairman

Mr. Kamal Vachani Brother of Chairman

Mr. Ravi Vachani Brother of Chairman

Mrs. Geeta Vaswani Sister of Chairman

II. Other related parties

Holding Company NA

Subsidiary Company M/s Dixon Global Pvt. Ltd.

Joint Venture M/s Padget Electronic Pvt. Limited

M/s AIL Dixon Technologies Private Limited (W.e.f. 8th February 2017)

Enterprises over which KMP or relative of KMP have M/s Dixon Applied Technology Training Institute

significant influence (Partnership firm in which Managing Director/Chairman is

Partner)

M/s Prisma Electronics (Proprietorship concern in which Chairman is proprietor)

M/s Six Sigma Electronics (Partnership concern in which Chairman is a 50% partner

M/s Fincraft Learnings Private Limited (Company in which Managing Director/Chairman is Director/Shareholder)

M/s Rage (Partnership firm of Chairman''s relative)