Provisions are recognised when the Company has present obligation (legal or constructive) as a result of past events, for which 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 for the amount of the obligation. Contingent Liabilities are disclosed by way of notes to standalone financial statements. Contingent assets are not recognised in the standalone financial statements but are disclosed in the notes to the standalone financial statements where an inflow of economic benefits is probable. Provisions and contingent liabilities are reviewed at each Balance Sheet date. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.
Basic Earnings per Share
Basic earnings per share is calculated by dividing: the profit attributable to owners of the Company by the weighted average number of equity shares outstanding during the financial year.
Diluted Earnings per Share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
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, which are subject to an insignificant risk of changes in value. For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash and short-term deposits.
Note 30 :- Leases
In current year, the Company has recognised Interest on Lease Liability and Amortization of Right of use Asset as per IndAS 116 'Lease' in the statement of Profit and Loss as under
- 'Finance Cost' in Note no. 27. Interest on Lease Liability of Rs. 9.94 lakhs (PY Rs. 10.73 lakhs).
- 'Depreciation and Amortization expense' in Note no. 28. Amortization of Lease Liability of Rs. 30.04 lakhs (PY Rs. 25.37 lakhs).
- The total outstanding cash outflow for lease as per the agreement is Rs. 127.40 lakhs (PY Nil).
-There has been addition to right of use asset in the current year of Rs. 149.90 lakhs (PY Nil).
-There has been deletion to right of use asset in the current year of Rs. 25.37 Lakhs (PY Nil).
The Company has taken premises under leave and license agreement, the rent and escalation depends upon the lease by theCompa-ny. The Company has entered into an lease agreement for the period of 5 years, with escalation clause.
The disclosure requirement and maturity analysis of lease liability and asset as per IndAS 107 'Financial Instrument :
Disclosures' are as follows:
For the purpose of the Company’s capital management, capital includes issued equity share capital, securities premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the value of the share and to reduce the cost of capital.
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 can adjust the dividend payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.
The Company has exposure to the following risks arising from financial instruments:
-Market Risk;
-Credit Risk; and -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 change in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk such as equity price risk and commodity price risk.
(i) Foreign currency risk
During the year, the company has not carried out any transaction in foreign currency, hence there is no foreign currency risk for the year.
(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 interest rate risk can also impact the provision for retiral benefits. The Company generally utilises fixed rate borrowings and therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of change in the market interest rates.
The Company is not exposed to significant interest rate risk as at the respective reporting dates as the Company doesn't have any major interest bearing borrowings.
(B) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.
Trade Receivable
Customer credit risk is managed by the Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed by the management on regular basis with market information and individual credit limits are defined accordingly. Outstanding customer receivables are regularly monitored and any further services to major customers are approved by the senior management.
An impairment analysis is performed at each re-equipmenting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.
On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Company’s historical experience for customers. The movement of allowance for impairments of trade receivables are as follows :
Financial Instrument and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company’s finance department in accordance with the Company’s policy. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.
The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2024 and March 31,2023 is the carrying amounts as stated in balance sheet.
(C) Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company’s finance team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s liquidity position through rolling forecasts on the basis of expected cash flows.
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. In the table below, borrowings include both interest and principal cash flows.
Note 38 : Contingent Liability as on 31st March, 2024 - Rs. Nil (P.Y. Rs. Nil)
Note 39 :-Other Statutory Information
i. The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
ii. The Company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies ('ROC') beyond the statutory period.
iii. The Company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.
iv. During the year, the Company has not revalued its Property, Plant and Equipments.
v. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
vi. The Company have 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
vii. The Company have 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,
viii. The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
ix. Based on the information available with the Company, the Company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
In the opinion of the Board the Current Assets, Loans & Advances are realisable in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.
The Code on Social Security, 2020 (‘Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
The Company had changed its name from Supremex Shine Steels Limited to Aerpace Industries Limited in the financial year 2022-23 and fresh certificate of incorporation dated August 30, 2022 had been received by the Company from Registrar of Companies, Mumbai.
Previous year figures have been regrouped, rearranged wherever considered necessary to confirm with current years presentation.
For Singrodia & Co LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No W100280
Shyamratan Singrodia Director Managing Director
Partner DIN:01423453 DIN:08163535
Membership No. 049006
Date: 14th May, 2024
Chief Financial Officer Company Secretary