4.15 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a
present obligation (Legal or constructive) as a result of past events and it is probable that there will be an
outflow of resources. Contingent Liabilities are not recognised but disclosed in the notes. Contigent assets
is neither reccngnised nor disclosed in the financial statement.

Provisions and contingencies

a) Provisions

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

• If the effect of the time value of money is material, provisions are discounted using equivalent period
government securities interest rate,

Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions
are reviewed at each balance sheet date and are adjusted to reflect the current best estimate,

b) Contingencies

• Contingent liabilities are 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 or 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. Information on contingent liabilities is disclosed in the Notes to
the Financial Statements,

• Contingent assets are not recognised in the books of the accounts and are not disclosed in the notes.
However, when the realisation of income is virtually certain, then tire related asset is no longer a
contingent asset, but it is recognised as an asset and the corresponding income is booked in the Statement
of Profit and Loss.

4.16 In co me taxes

The income tax expense or credit for the period is the tax payable on the current period's taxable income
based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.

Deferred income tax is provided in full, using the liability method on temporary differences arising
between the tax bases of assets and liabilities and their carrying amount in the financial statement.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially
enacted by the end of the reporting period and are excepted to apply when the related defferred income
tax assets is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, only if,
it is probable that future taxable amounts will be available to utilise those temporary differences and
losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority, Current tax
assets and tax liabilities are off set where the Company has a legally forceable right to offset and intends
either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it
relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly in equity, respectively.

Minimum Alternate Tax credit is recognised as deferred tax asset only when and to the extent there is
convincing evidence that the Company will pay normal income tax during the specified period. Such
asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written
down to the extent there is no longer a convincing evidence to the effect that the Company will pay
normal income tax during the specified period.

4.17 Cash and cash equivalents

Cash and cash equivalents incLude cash in hand and at bank, deposits heLd at call with banks.

For the purpose of the Statement of Cash Flows, cash and cash equivalents consists of cash and short term
deposits, having maturity less than 3 months.

Other bank balances include FDRs with government department which are not readily available.

4.18 Financial Instruments - initial recognition, siibsequent measurement and impairment

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,

a. Financial Assets

• FinanciaL Assets are measured at amortised cost or fair value through Cither Comprehensive Income or
fair vaLue through Profit or Loss, depending on the judgment of the management for managing those
financial assets and the assets' contractual cash flow characteristics.

• Subsequent measurements of financial assets are dependent on initial categorisation, For impairment
purposes, financial assets are assessed individually.

De-recognition of financial Asset

A financial asset is primarily derecognised (i.e. removed from the balance sheet) 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 Companjf 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.

Financial, assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities,
deposits, trade receivables and bank balance

Trade receivables;

• A receivable is classified as a 'trade receivable' if it is in respect to the amount due from customers on
account of goods sold or services rendered in the ordinary course of business. Trade receivables are
recognised initially at fair value and subsequently measured at amortised cost, less expected credit loss if
any.

• Impairment is made for the expected credit losses. The estimated impairment losses are presented as a
deduction from the value of trade receivabLes and the impairment losses are recognised in the Statement
of Profit and Loss under "Other expenses",

• Subsequent changes in assessment of impairment are recognised in ECL and the change in impairment
losses are recognised in the Statement of Profit and Loss under "Other Expenses".

• Individual receivables which are known to be uncollectible are written off by reducing the carrying
amount of trade receivables and the amount of the loss is recognised in the Statement of Profit and Loss
under "Other Expenses".

• Subsequent recoveries of amounts previously written off are credited to "Other Income".

Lnv estments in Mutual Funds

Investments in Mutual Funds have been valued at their fair values through Profit and Loss account, as on
the closing date. The fair value has been taken from the market.

Financial liabilities

At initial recognition, all financial liabilities other than those valued at fair value through profit and loss
are recognised at fair value less transaction costs that are directly related to the issue of financial liability.
Transaction costs of financial liability carried at fair value through profit or loss are expensed in profit or
loss.

Financial liabilities at fair vaLue through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading, The
Company has not designated any financial liabilities upon initial measurement recognition at fair value
through profit or loss.

Trade and other payables

A payable is classified as 'trade paj^able' if it is in respect of the amount due on account of goods
purchased or services received in the normal course of business. These amounts represent liabilities for
goods and services provided to the Company prior to the end of financial year which are unpaid, Trade
and other paj^ables are presented as current liabilities unless payment is not due within 12 months after
the reporting period. They are recognised initially at their fair value and subsequently measured at
amortised cost using the effective interest method.

De-recognition of financial liability

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires, The difference between the carrying amount of a financial liability that has been extinguished or
transferred to another party and the consideration paid is recognised inprofit or loss as "Other Income" or
"Finance Expense".

,19 Foreign Currency Transaction

Transactions denominated in foreign currency are normally recorded at the exchange rate prevailing at
the time of transaction.

Monetary items denominated in foreign currency at the year end and not covered by forward exchange
contracts are translated at the year end rates and those covered by forward contracts are restated at each
reporting date by using spot rate and exchange rate difference was booked. Corresponding Forward
Contract Receivable & Payable is also booked in books of account taken on such forward contracts. The
Exchange rate difference on Forward Contract was charged to Statement of Profit & Loss. Premium paid
on such Forward Contract is charged to Statement of Profit & Loss on periodic basis.

,20 Assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use. Non-current assets classified as held for
sale are measured at the lower of carrying amount and fair value less cost to sell. Any resulting
impairment loss is recognized in the Statement of Profit and Loss. On classification as held for sale the
assets are no longer depreciated.

,21 Segment reporting

The Company identifies primary segments based on nature of products and returns and the internal
organisation and management structure. The operating segments are the segments for which separate
financial information is available and for which operating profit/ loss amounts are evaluated regularly by
the managing board in deciding how to allocate resources and in assessing performance,

.22 Government Grants

Grants from the government are recognised at their fair value where there is reasonable assurance that the

grant will be received and the Company will comply with all attached conditions.

Government grants relating to the purchase of property, plant and equipment are included in non-current
liabilities as deferred income and are credited to Statement of Profit and Loss on a straight - line basis over
the expected lives of related assets and presented within other income.

5 CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND fUDGEMENTS

The estimates and judgements used in the preparation of the financial statements are continuously
evaluated by the Company and are based on historical experience and various other assumptions and
factors (including expectation of future events) that the Company believes to be reasonable under the
existing circumstances, Differences between actual results and estimates are recognised in the period in
which the results are known/materialised.

The said estimates are based on the facts and events that existed as at the reporting date, or that which
occured after the date but provide additional evidence about the conditions existing at the reporting date.

a Property', plant and equipment

• Management assesses the remaining useful lives and residual value of property, plant and equipment.
Management believes that the assigned useful lives and residual value are reasonable.

b Income taxes

• Management judgment is required for the calculation of provision for income taxes and deferred tax
assets and Liabilities.

• The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors
used in estimates may differ from actual outcome which could lead to significant adjustment to the
amounts reported in the standalone financial statements.

c Contingencies

• Management judgement is required for estimating the possible outflow of resources, if any, in respect of
contingencies/claim/litigations against the Company as it is not possible to predict the outcome of
pending matters with accuracy.

d Impairment of accounts receivable and advances

Trade receivables carry interest and are stated at their fair value as reduced by appropriate allowances for
expected credit losses. Individual trade receivabLes are written off when management deems them not to
be collectible, Impairment is recognised for the expected credit losses.

e Discounting of Security deposit, and other long term liabilities

For majority of the security deposits received, the timing of outflow, as mentioned in the underlying
contracts, is not substantially Long enough to discount. Tire treatment would not provide any meaningful
information and would have no material impact on the financial statements.

1 COMPANY OVERVIEW

Mayur Leather Products Limited (the Company) is a publicly held Company incorporated on 13th March 1987. The
registered office of the Company is Located at G-60-62 & 67-69, Jaitpura Industrial Estate, Jaitpura, Jaipur-303704.
The company is engaged in the manufacturing and export of Leather Shoes and Shoe Uppers. The majority sales of
the Company comprises of exports. The Company is engaged in production of industrial shoe / uppers segment
both internationally and in the domestic market. The Equity Shares of the Company are presently listed with the
Bombay Stock Exchange Limited (BSE).

2 SIGNIFICANT ACCOUNTING POLICIES, ASSUMPTIONS AND NOTES

2.1 BASIS OF PREPARATION

* Ministry of corporate affairs has notified roadmap to implement IND AS notified under Companies (Indian
Accounting Standard) Rules 2015 as amended by the Companies (Indian Accounting Standard) Rules 2016. And
according to the said roadmap the company is required to apply IND AS in preparation of financial statement from
the financial year beginning from 1st April 2017.

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter
referred to as the

fnd AS') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 ('Act')
read with of the

Companies (Indian Accounting Standards) Rules,2016 as amended and other relevant provisions of the Act.

2.2 Use of estimates, assumption and judgement

The preparation of the financial statements requires management to make estimates, judgements and assumptions.
Actual results could vary from these estimates. The estimates, judgements and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate
is revised if the revision effects only that period or in the period of the revision and future periods if the revision
affects both current and future years (refer Notes on critical accounting estimates, assumptions and judgements).
The management believes that the estimates used in preparation of the financial statements are prudent and
reasonable.

3 Statement of Compliance

The financial statements comprising of the Balance Sheet, Statement of Profit and Loss, Statement of changes in
equity, Statement of Cash Flow together with notes comprising a summary of Significant Accounting Policies and
Other Explanatory Information for the Year ended 31st March, 2023 and comparative information in respect of the
preceding period and Balance Sheet as on transition date, i.e, 1st April 2016 have been prepared in accordance with
IND AS as notified and duly approved by the Board of Directors, along with proper explanation for material
departures.

4 ACCOUNTING POLICIES

4.1 Basis of Measurement

The standalone financial statements have been prepared on accrual basis and under the historical cost convention
except following which have been measured at fair value:

a. Financial assets and liabilities except those carried at amortised cost

b. Defined benefit plans - Plan assets measured at fair value less present value of defined obligations
An asset is classified as current when it is:

(a) Expected to be realised or intended to be sold or consumed in normal operating cycle,

(b) Held primarily for the purpose of trading,

(c) Expected to be realised within twelve months after the reporting period, or

(d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period

All other assets are classified as non-current

A liability is classified as current when it is:

(a) Expected to be settled in normal operating cycle,

(b) Due to be settled within twelve months after the reporting period, or

(c) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period. All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash
equivalents. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

4.2 Inventories

a. Raw Material:

Raw materials, components, stores and spares are valued at cost or landed value whichever is lower, However,
materials and other items held for use in the production of inventories are not written down below cost if the
finished products in which they will be incorporated are expected to be sold at or above cost, Cost of raw materials,
components, stores and spares is determined on FIFO basis.

b. Finished goods & work in progress:

Work in progress is valued at cost

Finished goods are valued at lower of cost or net realisable value. Cost includes direct materials and labour and a
portion of manufacturing overhead based on normal operating capacity .Net realisable value is the estimated selling
price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make
the sale.

4.3 Statement pf cash flows

Cash flows are reported using the method as prescribed in IND AS 7 'Statement of Cash flows', where by 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 expense associated with investing or financial cash flows,
Tire cash flows from operating, investing and financing activities of the Company are segregated.

4.4 Prior P eriod Errors

Prior period errors include omissions and misstatements arising from a failure to use reliable information that was
available or could have been obtained when financial statements for those periods were approved for issue.

Prior period errors relating to the last comparative period will be shown by restating the comparative figures of
Balance sheet and Profit and loss, wherever necessary. Thus, it will be disclosed in the comparative financial
statements as if the error had not even occurred,

4.5 Revenue recognition and oflier income

a. Revenue on sale of products

The Company recognise revenues on accrual basis and measured it at the fair value of the consideration received or
receivable, net of discounts, volume rebates, GST. Revenue is shown inclusive of excise duty since excise duty is
liability of the manufacturer which forms part of the cost of production, irrespective of whether the goods are sold or
not.

Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer,
recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably,
there is no continuing management involvement with the goods, and the amount of revenue can be measured
reliably.

Export sale has been recognised at the time of removal of goods from factory at invoice value (whether FOB or CIF)
on the basis of exchange rates declared by Custom Department for that particular month.

No significant financing component exists in the sales.

b. Revenue from services (Tob Charges Received):

Revenue from services is recognised in the accounting period in which the services are rendered,

c. Export Benefits:

Export benefits in the form of Duty Drawback, Duty Entitlement Pass Book (DEPB) and other schemes are
recognized in the Statement of profit and loss when the right to receive credit as per the terms of the scheme is
established in respect of exports made and when there is no significant uncertainty regarding the ultimate collection
of the relevant export proceeds.

4.6 Other hi come

a. Interest

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.

b. Dividend

Dividend income is recognized in the Statement of profit and loss when the right to receive dividend is established.

c. Lease Rent

Lease Rent is recognized as income in the Statement of profit and loss on accrual basis i.e. as and when lease rent is
due.

4.7 Property, Plant and Equipment

Property, plant and equipment are tangible items that;

(a) are held for use in the production or supply of goods or services, for rental to others, or for administrative
purposes; and

(b) are expected to be used during more than one period.

Items such as spare parts, stand-by equipment and servicing equipment are recognised in accordance with this Ind
AS when they meet the definition of property, plant and equipment. Otherwise, such items are classified as
inventory.

Initial recognition; The Company has applied for the one time transition exemption of considering the carrying cost
on the transition date i.e. April 1, 2016 as the deemed cost under IND AS.The initial cost of property, plant and
equipment comprises its purchase price, including non-refundable purchase taxes, and any directly attributable
costs of bringing an asset to working condition and location for its intended use. It also includes the initial estimate
of the costs of dismantling and removing the item and restoring the site on which it is located,

Subsequent expenses and recognition; Expenditure incurred after the property, plant and equipment have been
put into operation, such as repairs and maintenance, are normally charged to the Statement of Profit and Loss in the
period in which the costs are incurred. Subsequently Property, Plant and Equipment are carried at cost less
accumulated depreciation and accumulated impairment losses, if any,

Gain/loss on disposal; The gain or loss arising on the disposal or retirement of an item of property, plant and
equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is
recognized in the Statement of Profit and Loss on the date of disposal or retirement.

Depreciation; Property, Plant and Equipments except free hold land is depreciated on Straight Line Method in the
manner prescribed in Schedule II to the Companies Act, 2013, Depreciation on additions and deletion during the
year has been provided on pro-data basis with refemce to the month of addition and deletion.

Capital work in progress

The expenses relating to the construction of building is capitalised at the time when they are incurred. And when the
asset would be completed, the same shall be transferred to asset a/c.

4.8 Leases

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis
over the lease term unless the receipts are structured to increase in line with expected general inflation to
compensate for the excepted inflationary cost increases. The respective leased assets are included in the balance
sheet based on their nature.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis
over the lease term unless either (a) another systematic basis is more represantative of the time pattern of the user's
benefit even if the payments to the lessors are not on that basis, or (b) 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. In
the event that lease premiums are paid to enter into operating leases, such premiums are recognised as a prepaid
expenditure and amortised over the period of lease.

Financial lease transactions entered are considered as financial arrangements and the leased assets are capitalised on
an amount equal to the present value of future lease payments and corresponding amount is recognised as a
liability. Tire lease payments made are apportioned between finance charge and reduction of outstanding liability in
relation to leased asset.

Leasehold land has been amortised over the remaining period of lease term

4.9 Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less
accumulated a mortis at ion/depletion and impairment loss, if any. Such cost includes purchase price, borrowing
costs, and any cost directly attributable to bringing the asset to its working condition for the intended use.

4.10 Investments in Subsidiary

Tire Company has invested in shares of its subsidiary Mayur Global Private Limited of whose 52% shares are in
hand of Mayur Leathers Product Limited.

4.11 Borrow Lug

Borrowings are initially recognised at net of transaction costs incurred and measured at amortised cost. Transaction
cost is amortized over the period of Borrowing using straight line method

4.12 Employee retirement benefits

a. Short - term Employee Benefits;-

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term
employee benefits and they are recognised in the period in which the employee renders the related services

The Company recognises the undiscounted amount of short term employee benefits expected to be paid in exchange
for services rendered as a liability after deducting any amount already paid.

b. Post-employment Benefits:-

(a) Defined Contribution Plan; Contribution to superannuation fund is recognised as air expense in the Statement
of Profit & Loss as it is incurred. There are no other obligations, Eligible employees receive benefits from a provident
fund which is a defined contribution plan. Both the eligible employee and tire Company make monthly
contributions to the provident fund plan equal to a specified percentage of the covered employee's salary.

4.13 Earnings per share

• Basic earnings per share is computed using the net profit for the year attributable to the shareholders' and weighted

average number of shares outstanding during the year.

Ý Diluted earnings per share is computed using the net profit for the year attributable to the shareholder' and
weighted average number of equity and potential equity shares outstanding during the year, except where the result
would be anti-dilutive.

4.14 Imnairment of assets

An asset is considered as impaired when at the date of Balance Sheet there are indications of impairment and the
carrying amount of the asset exceeds its recoverable amount (Le. the higher of the fair value less cost to sell and
value in use). The carrying amount is reduced to the recoverable amount and the reduction is recognized as an
impairment loss in the Statement of Profit and Loss. Any impairment gam loss is transferred to profit and loss.

4.15 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present
obligation (legal or constructive) as a result of past events and it is probable that there will be an outflow of
resources. Contingent Liabilities are not recognised but disclosed in the notes. Contigent assets is neither
recongnised nor disclosed in the financial statement.

Provisions and contingencies

a) Provisions

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

* If the effect of the time value of money is material, provisions are discounted using equivalent period government
securities interest rate.

Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are
reviewed at each balance sheet date and are adjusted to reflect the current best estimate.

b) Contingencies

Contingent liabilities are 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 or 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.
Information on contingent liabilities is disclosed in the Notes to the Financial Statements.

Contingent assets are not recognised in tire books of the accounts and are not disclosed in the notes. However, when
the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised
as an asset and the corresponding income is booked in the Statement of Profit and Loss.

4.16 Income taxes

The income tax expense or credit for the period is the tax payable on the current period's taxable income based on
the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.

Deferred income tax is provided in full, using the liability method on temporary differences arising between the tax
bases of assets and liabilities and their carrying amount in the financial statement. Deferred income tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting
period and are excepted to apply when the related defferred income tax assets is realised or the deferred income tax
liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, only if, it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are off set where the Company has a legally forceable right to offset and intends either to settle on a net
basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity, In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.

Minimum Alternate Tax credit is recognised as deferred tax asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period, Such asset is reviewed at each
Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer
a convincing evidence to the effect that the Company will pay normal income tax during the specified period,

4.17 Cash and cash equivalents

Cash and cash equivalents include cash in hand and at bank, deposits held at call with banks.

For the purpose of the Statement of Cash Flows, cash and cash equivalents consists of cash and short term deposits,
having maturity less than 3 months.

Other bank balances include FDRs with government department which are not readily available.

4.18 Financial instruments - initial recognition, subsequent measurement and impairment

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.

a. Financial Assets

• Financial Assets are measured at amortised cost or fair value through Other Comprehensive Income or fair value
through Profit or Loss, depending on the judgment of the management for managing those financial assets and the
assets’' contractual cashflow characteristics,

• Subsequent measurements of financial assets are dependent on initial categorisation. For impairment purposes,
financial assets are assessed individually.

De-recognition pf financial Asset

A financial asset is primarily derecognised (i.e. removed from the balance sheet) when:

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

* Tire 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

Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits,
trade receivables and bank balance

Trade receivables;

A receivable is classified, as a Trade receivable’ if it is in respect to the amount due from customers on account of
goods sold or services rendered in the ordinary course of business. Trade receivables are recognised initially at fair
value and subsequently measured at amortised cost, less expected credit loss if any.

* Impairment is made for the expected credit losses. Tire estimated impairment losses are presented as a deduction
from the value of trade receivables and the impairment losses are recognised in the Statement of Profit and Loss
under "Other expenses".

Ý Subsequent changes in assessment of impairment are recognised in ECL and the change in impairment losses are
recognised in tire Statement of Profit and Loss under "Other Expenses".

Individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade
receivables and the amount of the loss is recognised in the Statement of Profit and Loss under "Other Expenses",

• Subsequent recoveries of amounts previously written off are credited to "Other Income".

Inv estments in Mutual Funds

Investments in Mutual Funds have been valued at their fair values through Profit and Loss account, as on the
closing date. The fair value has been taken from the market.

Financial liabilities

At initial recognition, all financial liabilities other than those valued at fair value through profit and loss are
recognised at fair value less transaction costs that are directly related to the issue of financial liability. Transaction
costs of financial liability carried at fair value through profit or loss are expensed in profit or loss.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading. The Company has
not designated any financial liabilities upon initial measurement recognition at fair value through profit or loss.

Trade and other payables

A payable is classified as Trade payable' if it is in respect of the amount due on account of goods purchased or
services received in the normal course of business. These amounts represent liabilities for goods and services
provided to the Company prior to the end of financial year which are unpaid, Trade and other payables are
presented as current liabilities unless payment is not due within 12 months after the reporting period. They are
recognised initially at their fair value and subsequently measured at amortised cost using the effective interest
method.

De-recognition of financial liability

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires, The
difference between the carrying amount of a financial liability that has been extinguished or transferred to another
party and the consideration paid is recognised inprofit or loss as "Other Income" or "Finance Expense".

4.19 Foreign CTirrency Transaction

Transactions denominated in foreign currency are normally recorded at the exchange rate prevailing at the time of
transaction.

Monetary items denominated in foreign currency at the year end and not covered by forward exchange contracts are
translated at the year end rates and those covered by forward contracts are restated at each reporting date by using
spot rate and exchange rate difference was booked. Corresponding Forward Contract Receivable & Payable is also
booked in books of account taken on such forward contracts. Tire Exchange rate difference on Forward Contract was
charged to Statement of Profit & Loss. Premium paid on such Forward Contract is charged to Statement of Profit &
Loss on periodic basis.

4.20 Assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use. Non-current assets classified as held for sale are measured at the
lower of carrying amount and fair value less cost to selL Any resulting impairment loss is recognized in the
Statement of Profit and Loss. On classification as held for sale the assets are no longer depreciated.

4.21 Segment reporting

The Company identifies primary segments based on nature of products and returns and the internal organisation
and management structure. Tire operating segments are the segments for which separate financial information is
available and for which operating profit/ loss amounts are evaluated regularly by the managing board in deciding
how to allocate resources and in assessing performance,

4.22 Gov emmcut Grants

Grants from the government are recognised at their fair value where there is reasonable assurance that the grant will
be received and the Company will comply with all attached conditions.

Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities
as deferred income and are credited to Statement of Profit and Loss on a straight - line basis over the expected lives
of related assets and presented within other income.

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the
Company and are based on historical experience and various other assumptions and factors (including expectation
of future events) that the Company believes to be reasonable under the existing circumstances. Differences between
actual results and estimates are recognised in the period in which the results are known/materialised.

Tire said estimates are based on the facts and events that existed as at the reporting date,, or that which occured after
the date but provide additional evidence about the conditions existing at the reporting date.

a Property, plant and equipment

• Management assesses the remaining useful lives and residual value of property/ plant and equipment. Management
believes that the assigned useful lives and residual value are reasonable.

b Income taxes

• Management judgment is required for the calculation of provision for income taxes and deferred tax assets and
liabilities.

• Tire Company reviews at each balance sheet date tire carrying amount of deferred tax assets. Tire factors used in
estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the
standalone financial statements.

c Contingencies

’ Management judgement is required for estimating the possible outflow of resources., if any, in respect of
contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters
with accuracy.

d Impairment of accounts receivable and advances

’ Trade receivabLes carry interest and are stated at their fair value as reduced by appropriate allowances for expected
credit losses. Individual trade receivables are written off when management deems them not to be collectible.
Impairment is recognised for the expected credit losses.

e Discounting of Security deposit, and other long term liabilities

’ For majority of the security deposits received, the timing of outflow, as mentioned in the underlying contracts, is not
substantially long enough to discount. The treatment would not provide any meaningful information and would
have no material impact on the financial statements.

Financial Instrument by category and hierarchy

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

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

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

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as
interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for
expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying
amounts.

3. IND AS 101 allows Company to fair value its property, plant and machinery on transition to IND AS, the Company has fair
valued property, plant and equipment, and the fair valuation is based on deemed cost approach where the existing carrying
amounts are treated as fair values.

The fair values for loans and security deposits were calculated based on cash flows discounted using a current lending rate.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are
classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

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

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:

Level 1: Quoted prices / published NVA (unadjusted) in active markets for identical assets or liabilities. It includes fair value of
financial instruments traded in active markets and are based on quoted market prices at the balance sheet date and financial
instruments like mutual funds for which net assets value (NAV) is published mutual fund operators at the balance sheet date.

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices). It includes fair value of the financial instruments that are not traded in
an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation
techniques maximise the use of observable market data where it is available and rely as little as possible on the company
specific estimates. If all significant inputs required to fair value an instrument are observable then instrument is included in
level 2.

Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). If one or
more of the significant inputs is not based on observable market data, the instrument is included in level 3.

37 FAIR VALUE HEIRARCHY

The following table provides the fair value measurement hierarchy of Company's asset and liabilities, grouped into
Level 1 to Level 3 as described below:

a Quoted prices/published NAV (unadjusted) in active markets for identical assets or liabilities (level 1). It includes fair

value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet
date.

b Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly

(that is, as prices) or indirectly (that is, derived from prices) (level 2). It includes fair value of the financial instruments
that are not traded in an active market (for example, interest free security deposits) is determined by using valuation
techniques. These valuation techniques maximise the use of observable market data where it is available and rely as
little as possible on the company specific estimates. If all significant inputs required to fair value an instrument are
observable then instrument is included in level 2.

c Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). If

one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

38 CAPITAL RISK MANAGEMENT
Objective

The primary objective of the Company's capital management is to maximize the shareholder value. i.e. to provide maximum returns to the
shareholders. The Company's primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy
capital ratios and safeguard the Company's ability to continue as a going concern in order to support its business and provide maximum
returns to the shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital. No changes were
made in the objectives, policies or processes during the year ended March 31, 2023 and March 31, 2022.

Policy

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the rules and regulations
framed by the Government under whose control the Company operates.

Process

The Company manage its capital by maintaining sound/optimal capital structure financial ratios, such as net debt-to-equity ratio on a monthly
basis and implements capital structure improvement plan when necessary. Debt-to-equity ratio as of March 31, 2023 and March 31, 2022 is as
follows:

The management has considered all the possible effects, if any, that may result from the pandemic relating to COVID-19 on the results of operations,
liquidity, capital resources and carrying amounts of trade receivables and inventories (including biological assets). In developing the assumptions and
^ estimates relating to the uncertainties as on the balance sheet date in relation to the recoverable amounts of the assets, the management has considered
the global economic conditions prevailing as at the date of approval of these financial results and has used the internal and external soures of
information to yhe extent determined by it. The actual outcome of these assumptions and estimates may vary in future due to the impact of the
pandemic. The managements will continue to monitor and assess the ongoing developments and respond accordingly.

44 Gratuity Liability has been calculated on estimated basis and not as per Acturial Valuation which is requied as per Ind AS 19 "Employee Benefits"

The Company has given Loans and Advances are subject to Confirmation and Reconciliation,

For and on behalf of the Board As per Our Separate report of even date attached.

Sd/- Sd/-

R.K. PODDAR AMITA PODDAR For MADHUKAR GARG & COMPANY

(CEO & Director) (Chairperson & Director) CFIARTERED ACCOUNTANTS

DIN No.: 00143571 DIN No.: 00143486 FRN: 000866C

Sd/-

Akhilesh Poddar
CFO

PAN: ANTPP3340A Sd/-

SUNIL SHUKLA

Place: Jaipur PARTNER

Date : 31.10.2023 M.No. 071179