Provisions are recognized when the Company has apresent obligation (legal and constructive) as a result ofa past event, for which it is probable that a Cash Outflowwill be required and a reliable estimate can be made ofthe amount of the obligation.
The Company has adopted Ind AS 116. It has resultedinto recognition of Lease Assets Right to Use with acorresponding Lease Liability in the Balance Sheet.
The Company, as a lessee, recognises a right to useasset and a lease liability for its leasing arrangements,if the contract conveys the right to control the use of anidentified asset.
The contract conveys the right to control the use of anidentified asset, if it involves the use of an identifiedasset and the Company has substantially all of theeconomic benefits from use of the asset and has rightto direct the use of the identified asset. The cost of theright to use asset shall comprise of the amount of theinitial measurement of the lease liability adjusted for anylease payments made at or before the commencementdate plus any initial direct costs incurred. The right touse assets is subsequently measured at cost less anyaccumulated depreciation, accumulated impairmentlosses, if any and adjusted for any remeasurement of thelease liability. The right-of-use assets are depreciatedusing the straight-line method from the commencement
date over the shorter of lease term or useful life of right-of-use asset.
The Company measures the lease liability at the presentvalue of the future lease payments. The lease paymentsare discounted using the interest rate implicit in thelease, if that rate can be readily determined. If thatrate cannot be readily determined, the Company usesincremental borrowing rate.
For short-term and low value leases, the Companyrecognises the lease payments as an operating expense.
All employee benefits such as salaries, wages,short-term compensated absences, expected costof bonus, etc. are recognised in the period in whichthe employee renders the related services.
(i) Defined Contribution Plan:
The Company makes defined contributions toEmployee Provident Fund, Employee PensionFund, Employee Deposit Linked Insurance,and perannuation Schemes. The contributionpaid/payable under these schemes isrecognised during the period in which theemployee renders the related services whichare recognised in the Statement of Profit andLoss on accrual basis during the period inwhich the employee renders the services.
(ii) Defined Benefit Plan:
The gratuity liability of the company is fundedthrough a Group Gratuity Scheme with LifeInsurance Corporation of India (LIC) underwhich the annual contribution is paid toLIC. The Company's liability under Paymentof Gratuity Act is determined on the basisof actuarial valuation made at the end ofeach financial year using the projected unitcredit method. The obligation is measuredat the present value of the estimated futurecash flows using a discount rate based onthe market yield on government securitieswhere the terms of government securitiesare consistent with the estimated terms ofthe defined benefit obligations at the BalanceSheet date. The Company recognizes the netobligation of a defined benefit plan in its
Balance Sheet as an asset or liability. Gainsand losses through re-measurements ofthe net defined benefit liability / (asset) arerecognized in other comprehensive incomeand are not reclassified to profit or loss insubsequent periods.
The grant date fair value of options granted toemployees is recognized as an employee expense,with a corresponding increase in equity, over theperiod that the employees become unconditionallyentitled to the options. The expense is recordedfor each separately vesting portion of the awardas if the award was, in substance, multipleawards. The increase in Other Equity recognized inconnection with share based payment transactionis presented as a separate component in equityunder "Employee Share Based Payment Reserve”.The amount recognized as an expense is adjustedto reflect the actual number of stock optionsthat vest.
Items included in the Standalone Financial Statementsof the Company are measured using the currency of theprimary economic environment in which the Companyoperates (functional currency). The StandaloneFinancial Statements of the Company are presented inIndian currency ('), which is also the functional currencyof the Company.
Foreign currency transactions are recorded on initialrecognition in the functional currency, using the exchangerate as applicable in the period of such transaction.Exchange differences that arise on settlement ofmonetary items or on reporting of monetary items ateach reporting period are appropriately dealt in thefinancial statements in accordance with the applicableIndian Accounting standards.
Income tax expense comprises of current tax expenseand deferred tax expenses.
Current and deferred taxes are recognized in Statementof Profit and Loss, except when they relate to itemsthat are recognized in other comprehensive income ordirectly in equity, in which case, the current and deferredtax are also recognized in other comprehensive incomeor directly in equity, respectively.
Current tax is the amount of tax payable on the taxableincome for the year as determined in accordance withthe provisions of the Income Tax Act of the respectivejurisdiction. The current tax is calculated using tax ratesthat have been enacted or substantively enacted, at thereporting date.
Deferred tax is recognised on temporary differencesbetween the carrying amounts of assets and liabilitiesin the company's financial statements and thecorresponding tax bases used in computation of taxableprofit and quantified using the tax rates and laws enactedor substantively enacted as on the Balance Sheet date.
Deferred tax liabilities are recognised for all taxabletemporary differences at the reporting date betweenthe tax base of assets and liabilities and their carryingamounts for financial reporting purposes. Deferredtax assets are recognised for all taxable temporarydifferences to the extent that is probable that taxableprofits will be available against which those deductibletemporary differences can be utilised.
The carrying amount of deferred tax assets is reviewedat the end of each reporting period and reduced to theextent that it is no longer probable that sufficient taxableprofits will be available to allow all or part of the assetsare to be recovered. Unrecognized deferred tax assetsare reassessed at the end of each reporting period andare recognized to the extent that it has become probablethat future taxable profits will be available against whichthe deferred tax assets to be recovered.
The measurement of deferred tax liabilities and assetsreflects the tax consequences that would follow fromthe manner in which the company expects, at the endof reporting period, to recover or settle the carryingamount of its assets and liabilities.
Deferred tax assets and deferred tax liabilities are offsetwhen there is a legally enforceable right to set-off therecognised amounts and there is an intention to settlethe asset and the liability on a net basis.
MAT credit is recognised as an asset only when and tothe extent it is reasonably certain that the Company willpay normal income tax during the specified period. Suchasset is reviewed at each Balance Sheet date and thecarrying amount of the MAT credit asset is written downto the extent there is no longer a convincing evidence tothe effect that the Company will pay normal income taxduring the specified period.
Borrowing costs, general or specific, that are attributableto the acquisition or construction of qualifying assets iscapitalized as part of such assets. A qualifying asset isone that necessarily takes substantial period of time toget ready for intended use. All other borrowing costs arecharged to the Statement of Profit and Loss.
(a) a possible obligation that arises from past eventsand whose existence will be confirmed only bythe occurrence or non-occurrence of one or moreuncertain future events not wholly within thecontrol of the entity; or
(b) a present obligation that arises from past eventsbut is not recognised because:
(i) it is not probable that an outflow of resourcesembodying economic benefits will be requiredto settle the obligation; or
(ii) the amount of the obligation cannot bemeasured with sufficient reliability
(i) Working Capital Loans availed from Scheduled Banks, are secured by way of Pari Passu first charge by hypothecation ofRaw Materials, Stock-In-Process, Semi-Finished Goods, Finished Goods, Packing Materials and Stores and Spares, BillsReceivables and Book Debts and all other moveable, both present and future. Also by way of hypothecation of all moveableplant & machinery, machinery spares, tools and accessories and other movables, both present and future (except bookdebts & inventories) wherever situated, ranking second to the charge held by ECB/Other Term Lenders.
(ii) In respect of working capital borrowings from banks timely stock statements are submitted to the banks and thereare no material discrepancies noted in comparison with the books of accounts. Such on material differences arearrising on account of different methodology & classification requirements by the banks vis-a-vis the ones addopted infinancial statements.
(A) The Company uses Forward Exchange Contract to hedge against its Foreign Exchange exposures relating to underlyingtransactions and firm commitments. The Company does not enter into any derivatives instruments for Trading orSpeculative purposes.
During the Year Company had hedged in aggregate an amount of 591.15 Crs (previous year 487.47 Crs) out of its annualtrade related operations (Exports & Imports) aggregating to 6,714.80Crs (previous year 5,062.44 Crs).
The Company had hedged its currency risks to the tune of 31.42 Crs (previous year 248.25 Crs), in respect of its longterm Foreign Currency Loans/Borrowings. Relating to the same, the Company had also swapped its floating interest rateborrowing of 367.52 Crs (previous year 269.22 Crs) into a fixed rate loan through an interest rate swap.
(B) Net foreign exchange loss arriving out of export and import activities of the Company of 3.69 Crs (previous year gain of6.24 Crs) is included in Profit & Loss Account.
Company had entered into forward contracts to hedge its medium and long term exports contracts. Mark to Market gainon such contracts to the tune of 0.99 Crs (including gain of 2.31 Crs for contracts of more than one year) is recognisedin the Profit & Loss Account. Company had further provided for Revaluation loss on long term borrowing (ECBs) to theextent of 23.23 Crs as at 31st March, 2025 and have recognised the same in the Profit & Loss Account.
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reservesattributable to the equity holders. The primary objective of the Company's capital management is to maximise theshareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and therequirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividendpayment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using agearing ratio, which is net debt divided by total capital plus net debt. Net Debt is calculated as loans and borrowings lesscash & marketable securities.
The Company's principal financial liabilities comprise trade and other payables. The main purpose of these financialliabilities is to finance the Company's operations. The Company's principal financial assets include loans, trade and otherreceivables, and cash and cash equivalents that derive directly from its operations.
The Company is exposed to credit risk, market risk and liquidity risk. The Company's senior management oversees themanagement of these risks.
The company is exposed to credit risk from its operating activities (primarily for trade receivables) and from its financingactivities (deposits with banks and other financial instruments).
Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts duecausing financial loss to the company. Credit risk arises from company's activities in investments, dealing in derivativesand outstanding receivables from customers.
The company has a prudent and conservative process for managing its credit risk arising in the course of its businessactivities. Sales made to customers on credit are generally secured through Letters of Credit, Bank Guarantees, ParentCompany Guarantees, advance payments and factoring & forfaiting without recourse to AIL.
To manage the credit risk, the Company follows an adequate credit control policy and also has an external creditinsurance cover wherein the customers are required to make an advance payment before procurement of goods. Thus,the requirement of assessing the impairment loss on trade receivables does not materially arise, since the collectabilityrisk is mitigated.
Bank balances are held with only high rated banks and majority of other security deposits are placed majorly withgovernment/statutory agencies.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at areasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities such as tradepayables and other financial liabilities.
The Company's corporate treasury department is responsible for liquidity and funding as well as settlement. Inaddition, processes and policies related to such risks are overseen by senior management. Management monitorsthe Company's net liquidity position through rolling forecasts on the basis of expected cash flows.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changesin market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such asequity price risk and commodity risk.
Foreign currency risk is the risk that the Fair Value or Future Cash Flows of an exposure will fluctuate because of changesin foreign currency rates. Exposures can arise on account of the various assets and liabilities which are denominated incurrencies other than Indian Rupee
The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operatingactivities in exports and imports which is majorly in US dollars.
Hence, to combat the foreign currency exposure, the Company follows a policy wherein the net sales are hedged byforward Contract.
The Company has a risk management framework aimed at prudently managing the risk arising from the volatility incommodity prices and freight costs.
The Company's commodity risk is managed centrally through well-established trading operations and control processes.In accordance with the risk management policy, the Company enters into various transactions using derivatives and usesOver the Counter (OTC) as well as Exchange Traded Futures, Options and Swap contracts to hedge its commodity andfreight exposure.
Notes for Ratio:
a. During the year some vendor payment terms have been revised upwards and also one of the key RM is being sourced at credit of over90 days resulting in the increase in payable days.
b. Revision in payment terms for major vendors and optimising the current assets resulted in the reduction of Net Working Capital (NWC).Further the company resorted to certain short term borrowings to finance part of its long term working capital needs, which resultedinto increase in borrowings. As a result of these, the NWC (including Short term borrowings) turned negative at the end of FY25.
c. Finance costs for the year increased substaintailly on account of interest rate increase and also impact of rupee depreciation (revaluatoinloss) on long term foreign currency loans. Further depreciation for the year also increased due to commissioning of various ongoingprojects. As a result of these increases in the Finance costs and Depreciation, despite increase in EBIDTA, the Net profit for the year waslower as compared to previous year.
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending againstthe Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rulesmade thereunder.
(ii) The Company do not have any transactions with companies struck off. under section 248 of Companies Act, 2013or section 560 of Companies Act, 1956.
(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond thestatutory period,
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreignentities (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 onbehalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) withthe understanding (whether recorded in writing or otherwise) that the Group shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrenderedor disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or surveyor any other relevant provisions of the Income Tax Act, 1961.
(viii) The Company uses SAP ECC & ensures an audit trail, providing standard functionality and logging of all data changes inthe system. This functionality and audit trail feature in SAP ECC has been operational throughout the year. The SAP ECCenvironment is appropriately governed, and only authorized users can make postings while interacting with the systemthrough the application layer. Normal/regular users are not granted direct database or super user level access that wouldallow them to make changes to financial documents directly after they have been posted through the application.
In the event of an unauthorized change by a super user, these can be detected through an investigative approach and/orusing services provided by SAP as part of their financial data quality check service, which validates the consistency offinancials based on client request. Therefore, while the database does not currently have the concurrent real-time audittrail feature due to technical constraints, the tracking of changes can be accomplished through a focused inquiry process.
(ix) Events after the reporting period
Events after the reporting period are those events, favourable and unfavourable, that occur between the end of thereporting period and the date when the financial statements are approved by the Board of Directors in case of a company,and, by the corresponding approving authority in case of any other entity for issue. Two types of events can be identified:
(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after thereporting period); and
(b) those that are indicative of conditions that arose after the reporting period (non-adjusting events after thereporting period).
As on May 8, 2025 there were no material subsequent events to be recognized or reported that are not already disclosed.46. The figures of previous year have been regrouped and rearranged wherever necessary.
As per our report of even date
For Gokhale & Sathe For and on behalf of the Board
Chartered AccountantsFRN: 103264W
Rajendra V. Gogri Rashesh C. Gogri Suyog K. Kotecha
Chairman and Managing Director Vice Chairman and Managing Director CEO and Executive DirectorDIN: 00061003 DIN: 00066291 DIN: 10634964
Uday Girjapure
Partner
M.No. 161776 Chetan Gandhi Raj Sarraf
Place: Mumbai Chief Financial Officer Company Secretary
Date: May 8, 2025 ICAI M.No. 111481 ICSI M.No. A15526