3.1    Capital work in progress mainly comprises of addition to plant and equipment as at 31 March 2023 and 31 March 2022.

3.2    Refer note 36 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

3.3    Refer note 15 and 20 for disclosure of information on property, plant and equipment mortgaged as security by the Company.

3.4    Title deed 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 except Land of 1NR 678.93 Lakhs (inclusive of registration costs INR 4.93 Lakhs). During the year ended 31 March 2022, Land admeasuring approx. 4 acres (i.e. 16,188 sq. mtrs.) situated at Narsapura Industrial Area, Kolar District of Karnataka, acquired in February 2012, from Karnataka Industrial Area Development Board (KIADB), on Lease Cum Sale basis, at a consideration of INR 340.00 Lakhs (i.e. @Rs. 85.00 Lakhs per acre), with lease term of 10 years. Subsequently, the aforesaid Land was to be transferred in the name of the Company. However, nearing to completion of lease term, KIADB have demanded additional compensation of INR 334.00 Lakhs (i.e. INR 83.50 Lakhs per acre) towards this Land. The Company has filed its objection against the said ex-parte demand of enhanced compensation and requested KIADB to review the said excessive demand, which is pending disposal at their end. Based on the demand of KIADB, liability of INR 334.00 Lakhs has been provided by the Company. Considering that the matter has not yet concluded, Company has requested KIADB via letter submitted on dated 27 September 2022 to extend the existing arrangement. Based on the request of the Company, KIADB has extended the existing arrangement for another two years i.e. upto 09 April 2024 via letter dated 23 November 2022. This land has been included above in Freehold Land.

3.5    Refer note 41 for ageing of capital work-in-progress.

3    Properr>. plant and equipment and capital work-in-progress (continued)_

3.6 Assets classified as held for sale

The Company was allotted plot no. GH-33 situated at Sector-1, IMT Manesar, Gurugram, by Haryana State Industrial and Infrastructure Development Corporation ( HSIIDC ) vide RLA no. HSIIDC/CGHS/Manesar/2007/599-600 dated 8 January 2007 for the purpose of building a group housing project. Subsequently, the Company has constructed an apartment building on this land including car parking and service basement, known as “ASK Greens according to scheme of HSIIDC. During the financial year 2017-18 , upon completion of construction of flats, the Company filed a deed of declaration with sub-registrar, Manesar, thereby converting the aforesaid land and building into 40 flats having a total value of INR 3,640 Lakhs. These group housing flats have been classified as held for sale, details as follows:

The carrying value of goodwill arose at the time of business purchase of erstwhile APK Automotive and AK Auto Industries by the Company amounting to INR 18,191.01 Lakhs, has been tested for impairment annually at each balance sheet date in accordance with the Company's procedure for determining the recoverable amounts of the after market business which is a cash generating unit (CGU). The recoverable amount of CGU is based on value in use. The value in use for Goodwill is determined based on discounted cash flow projections. These calculations uses management assumptions and discounted pre tax cash flow projections based on financial budgets approved by management covering a 5 year period. Cash flow projection beyond 5 years time period are extrapolated using the estimated terminal growth rate. Certain key assumptions considered by the management for impairment testing of CGU are stated below:

•    Weighted average cost of capital: 16.20%

•    Revenue growth rate: 13%

•    Terminal growth rate: 4%

The management believes that no reasonably possible change in any of the key assumptions used in the value in use calculation would cause the carrying value of the CGU to materially exceed its value in use.

AH the Trade receivables of the Company have a due date of payment associated with them.

Trade receivables are non-interest bearing and are generally on terms of 30 to 60 days.

Refer note 38(B)(1)(a) for details of the Company's credit risk policy and exposure.

Refer note 39 for Trade receivables outstanding from related party.

10.3 Trade receivable includes receivable amounting to INR 3,219.97 lakhs (31 March 2022: INR 3,525.28 lakhs) from a customer, which are discounted under an arrangement with HDFC Bank Ltd and the customer, where the obligation to pay may arise due to unforeseen event of default by the Company's customer. The Company, therefore, recognizes the trade receivables and corresponding borrowing in financial statements till the payment is made by the customer to bank on due date in accordance with the requirements of Ind AS 109, Financial Instruments. Also, refer note 40 of the standalone financial statements for reclassification of prior period balances to confirm to such classification.

(vii) During the year ended 31 March 2023, with the approval of the Board of Directors, the Company offered buyback of 37,50,000 (Thirty seven lacs fifty thousand only) folly paid-up equity shares of Face Value of !NR 21- (Two only) each at a price of INR 240/- (Two hundred and forty only) per Equity share, on a proportionate basis through the tender offer process. The buyback procedure was completed in September 2022, which resulted m a total cash outflow of INR 9,000.00 Lakhs (excluding tax on buy back). In accordance with the requirement of the Companies Act, 2013, the amount of INR 9 000 00 Lakhs has been adjusted from retained earnings. Consequent to such buyback, the Company extinguished 37,50,000 equity shares, the paid-up equity share capital of the Company was reduced by INR 75 Lakhs and capital redemption reserve of INR 75 Lakhs (representing the nominal value of the shares bought back) has been created out of retained earnings.

During the year ended 31 March 2022, with the approval of the Board of Directors, the Company offered buyback of 25,50,000 (Twenty five lacs fifty thousand only) folly paid-up equity shares of Face Value of INR 2/- (Two only) each at a price of INR 235/- (Two hundred and thirty five only) per Equity share, on a proportionate basis through the tender offer process. The buyback procedure was completed in September, 2021, which resulted in a total cash outflow of INR 5,992.50 Lakhs (excluding tax on buy back). In accordance with the requirement cf the Companies Act, 2013, the amount of INR 5^992 50 Lakhs has been adjusted from retained eamings.Consequent to such buyback, the Company extinguished 25,50,000 equity shares, the paid-up equity share capital of the Company was reduced by INR 51 Lakhs and capital redemption reserve of INR 51 Lakhs (representing the nominal value of the shares bought back) has been created out of retained earnings.

14.1 Nature and purpose of other equity

-    General reserve: This represents appropriation of profit by the Company and is available for distribution of dividend.

-    Capital redemption reserve: This represents (i) non-distributable reserve created as per provisions of section 55 of the Companies Act, 2C13 on redemption of 0% Non convertible redeemable preference shares redeemed during the year ended 31 March 2018 (ii) Amount transferred to capital redemption reserve as per provisions of section 68 of the Companies Act, 203 3 on Buy back of equity shares during the years ended 31 March 2023 and 31 March 2022.

-    Securities premium: This represents premium received on issue of shares, which can be utilised only in accordance with the provisions of the Companies Act, 2013 for specified purposes.

-    Retained earnings: This represents the net profits after all distributions and transfers to other reserves.

(i)    Kotak Mahindra Bank Limited: Term Loan INR 5,000 lakhs sanctioned and availed by Company for purchase of Plant and Machinery and Construction of Building at Plot No. 13-14, Sector-5, IMT Manesar, Gurgaon-122050 (Haryana) and was secured by exclusive charge on movable fixed assets acquired out of this loan. This Loan was also secured by Exclusive charge over immovable property being land and building situated at Plot No.28, Sector-4, Plot No. 155-156, Sector-5 and Plot No. 13-14, Sector-5, IMT Manesar, Gurgaon (Haryana). This Loan was also secured by personal guarantee of Mr. Kuldip Singh Rathee, Mrs. Vijay Rathee, Mr. Prashant Rathee and Mr. Aman Rathee, being Directors of the Holding Company as at 31 March 2021. The loan was disbursed in January 2019 with a moratorium period of 6 months repayable in 54 monthly installments and has been repaid in December 2022. Rate of interest is 3 months MCLR.

(ii)    Kotak Mahindra Bank Limited: Working Capital Term Loan 1NR 2,700 lakhs is sanctioned under Emergency Credit Line Guarantee Scheme of National Credit Guarantee Trustee Company Ltd. (NCGTC) and is secured by way of second hypothecation charge on all existing and future current assets and movable fixed assets excluding assets exclusively financed by Term lenders and second hypothecation charge on immovable property being land and building situated at Plot No. 66 & 67, lldyog Vihar, Phase-I, Gurgaon (Haryana) . The said loan is also secured by second hypothecation charge on movable fixed assets acquired for Plant situated at Plot No. 13-14, Sector-5, IMT Manesar and second charge over immovable property (Industrial) being land and building situated at Plot No.28, Sector-4, Plot No. 155-156, Sector-5 and Plot No. 13-14, Sector-5, IMT Manesar, Gurgaon-122050 (Haryana). Out of sanctioned loan amount, INR 2,000 lakhs was disbursed in March 2021 and INR 698.84 Lakhs disbursed in Dec. 2021 with a tenor of 5 years with a moratorium period of 1 year from the date of first disbursement and will be repaid on monthly basis by March 2026. Rate of interest is Repo Rate + <Spread>.

(iii)    Kotak Mahindra Bank Limited: Working Capital Term Loan INR 1,300 lakhs is sanctioned and availed under Emergency Credit Line Guarantee Scheme of National Credit Guarantee Trustee Company Ltd. (NCGTC) and is secured by way of second exclusive charge on all existing and future current assets and movable fixed assets excluding assets exclusively financed by Term lenders and second exclusive charge on moveable fixed assets of the borrower acquired with the proceeds of working capital term loan (WCTL). This loan is also secured by second charge on immovable property being land and building situated at Plot No. 66 & 67, Udyog Vihar, Phase-I, Gurgaon (Haryana), second exclusive charge on immovable property being land and building situated at Plot No. 13-14, Sector-5, IMT Manesar , second exclusive charge on immovable property being lar.d and building situated at Plot No.28, Sector-4 and second exclusive charge on immovable property being land and building situated at Plot No. 155-156, Sector-5 , Gurgaon, Haryana The loan was disbursed in March 2023 with a tenor of 6 years with a moratorium period of 2 year from the date of first disbursement and will be repaid on monthly basis by March 2029. Rate of interest is 3 Month MCLR.

(iv)    Bajaj Finance Limited: Term Loan INR 5,500 lakhs is sanctioned and availed by Company for reimbursement of expenditure on plant and machinery , out of which INR 2,000 lakhs was disbursed in March 2022 with a tenor of 5 years including 1 year moratorium , repayment wili be in monthly installments starting from May 2023 and ending in April 2027. The loan is secured by exclusive charge over plant and machinery reimbursed out of the said loan. Rate of interest is 7.75% p.a. Further, INR 1,700 lakhs was disbursed in January 2023 with a tenor of 5 years including 1 year moratorium , repayment will be in monthly installments starting from May 2023 and ending in June 2027. The loan is secured by exclusive charge over plant and machinery reimbursed out of the said loan. Rate of interest is 8,75% p.a. Further, INR 614 lakhs was disbursed in March 2023 with a tenor of 5 years including 1 year moratorium , repayment will be in monthly installments starting from May 2023 and ending in June 2027. The loan is secured by exclusive charge over plant and machinery reimbursed out of the said loan. Rate of interest is 8,75% p.a. In addition, financial covenants to be maintained during the tenure of the loan are 1) External Debt/Eaming before interest depreciation and tax (ED/ EBJDTA): not more than 2x and 2) External Debt/Tangible Networth (ED/ TNW): not more than 1.25x.

Total Secured borrowings (Non-Currenti_____

17.1 Defined benefit plan and long term employment benefits

A General description:

Gratuity- (Defined benefit plan):

Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each year. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service, The scheme is unfunded. Actuarial gains or losses are recognised in other comprehensive income.

Compensated absence (other long term employee benefits):

The employees of the Company are entitled to leave as per the leave policy of the Company. The Company treats accumulated leave expected to be carried forward beyond twelve months, as long term employee benefit for measurement purposes. Such long term compensated absences are provided for based on actuarial valuation using the projected unit credit method at the year end. The expense related to compensated absences are recognised in standalone statement of profit and loss as employee benefits expense.

These assumptions were developed by management with the assistance of independent actuary. Discount factors are determined close to each year-end by reference to market yields of high quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on current actuarial benchmarks and management’s historical experience.

J Sensitivity analysis: Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been detemuned based on reasonably possible changes of the assumptions occurring at the end of the reporting year, while holding all other assumptions constant. The results of sensitivity analysis is given below:

The change in defined benefit obligation due to 1% increase/decrease in mortality rate, if all other assumptions remain constant is negligible.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

There is no change in the method of valuation for the prior year.

(i)    HDFC Bank Limited: Working Capital facility secured by first pari passu charge on current assets and movable fixed assets of the company both present and future excluding assets exclusively financed by term lenders. The said loan is also secured by first pari passu charge on immovable property being land and building at Plot No. 66-67, Udyog Vihar Phase-I, Gurgaon (Haryana). In addition, financial covenants to be maintained during the tenure of the loan are 1) Total outside liability/Tangible networth (TOL/ TNW): less than l.OOx and 2) Current Ratio: more than l.OOx .

(ii)    Kotak Mahindra Bank Limited: Working capital facility is secured by first pari passu hypothecation charge on all existing and future cun-ent assets and all existing and future movable fixed assets excluding assets exclusively financed by term lenders. The said loan is also secured by first pari pasu mortgage charge on immovable property being land and building situated at Plot No. 66-67, Udyog Vihar Phase-I, Gurgaon (Haryana).

(iii)    Axis Bank Limited: Working Capital facility from Axis Bank Limited is secured byway of first pari passu hypothecation charge on entire current assets and movable fixed assets (excluding assets exclusively financed by term lenders) both present and future of the company. The said loan is also secured by first pari pasu charge by way of equitable mortgage on immovable property being land and building situated at Plot No. 66-67, Udyog Vihar Phase-I, Gurgaon (Hatyana).

(iv)    Citi Bank N.A.: Working capital facility is secured by First pari passu charge on present and future stocks and book debts and first pari passu charge on all movable fixed assets of the Company except the assets which are exclusively charged to any lender for term loan facility. The said loan is also secured by way of equitable mortgage on land & building located at Plot No. 66-67, Udyog Vihar Phase-I, Gurgaon (Haryana).

34 Segment Reporting

The business activity oi the Company falls within one operating segment viz. manufacturing of auto components including advanced braking systems, aluminium lightweighting precision solutions and safety control cables (earlier considered as friction material components; pressure die casted, machined and painted components; and safety control cables) primarily for automobile industry and substantial sale of the products is within India. The Board of Directors, which has been identified as being the Chief Operating Decision Maker (CODM), evaluates the Company's performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit, Therefore, there is one reportable segment for the Company.

For information about revenue by geography and revenue from major customers, refer note 45A and 24 respectively.

Investment in joint venture and subsidiary is measured at cost as per Ind AS 27, ‘Separate financial statements’ and hence, not presented here.

B Financial risk management

The Company has exposure to the following risks arising from financial instruments:

-    Credit risk;

-    Liquidity risk;

-    Market risk - Foreign exchange;

-    Market risk - Interest rate; and

-    Commodity price risk

(I) Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors have authorised senior management to establish the processes, who ensures that executive management controls risks through the mechanism of properly defined framework.

The Company s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risks limits and controls, to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument foils to meet its contractual obligations, and arises principally from the Company’s receivables from customers, loans.

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks with high credit ratings assigned by domestic credit rating agencies. While cash and cash equivalents are also subject to the impairment requirements of Ind AS 109, the identified impairment loss was immaterial.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Trade receivables are unsecured and ate derived from revenue earned from customers primarily located in India. The Company does monitor the economic environment in which it operates.

The Company considers the probability of default upon initial recognition of loan and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the loan as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially the following indicators are incorporated:

♦    actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the borrower’s ability to meet its obligations

*    actual or expected significant changes in the operating results of the bomower

Credit risk has always been managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss (ECL) 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 such as Company’s historical experience for customers.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Market risk is the risk that the future cash flows of a financial instillment will fluctuate because of changes in market prices. Market risk comprises two types of risk; currency risk and interest rale risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(i) Currency risk

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rales. The Company is exposed to the effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and cash flows. Exposure arises primarily due to exchange rate fluctuations between the functional currency and other currencies from the Company’s operating, investing and financing activities.

fd) Commodity price risk

Fluctuation in commodity price in market affects directly or indirectly the price of raw material and components used by the Company. The Company sells its products mainly to Original Equipment Manufacturers for whom it is manufacturing auto components. The Company docs regular negotiation / adjustment of prices oh the basis of changes in commodity prices.

(II) Capital management

For the purpose of the Company’s capital management, capital includes issued equity share capital, securities premium reserve and all other equity reserves attributable to the equity holders of the Company. The primaiy objective of the management of the Company s capital structure is to maintain an efficient mix of debt and equity in order to achieve a low cost of capital, while taking into account the desirability of retaining financial flexibility to pursue business opportunities and adequate access to liquidity to mitigate the effect of unforeseen events on cash flows.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may return capital to shareholders, raise new debt or issue new shares.

The Company monitors capital on the basis of the debt to capital ratio, which is calculated as adjusted net interest-bearing debts divided by total capital.

40 Restatement of previously reported financial information

During the current year ended 31 March 2023, the Company has restated the comparative financial information as at 31 March 2022 presented in these financial statements due to classification of certain balances as further explained in Note 10.3 and 20.1. The impact of these adjustments as at 31 March 2022 and 01 April 2021 is not considered to be material to the Company, as there is no impact on standalone statement of profit and loss, net worth or key financial ratios of the Company reported in earlier years. The impact of restatement is detailed below:

(b)    The Company has not invested or traded in crypto currency & virtual currency.

(c)    The Company has not advanced or loaned or invested fends to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that the intermediary shall:

(i)    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

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

(d)    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:

(i)    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

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

(e)    The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.

(f)    The Company has not been declared willful defaulter by any bank or financial Institution or other lender.

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

(h)    There has not been any proceedings initiated or pending against the Company for holding any benami property under the Benami transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(i)    Relationship with struck off companies

The Company has no transaction/ Balance with companies struck off under section 248 of the Act to the best of the knowledge of the Company’s management except below;

(j)    The Company does not have any charges or satisfactions, which is yet to be registered with Registrar of companies, beyond the statutory year prescribed under the Companies Act, 2013 and the rules made thereunder.

(k)    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 3 to the standalone financial statements, are held in the name of the company except the one disclosed in note 3.4.

(l)    The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of layers) Rules 203 7.

(m)    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.

47    Certain amounts (currency value or percentages) shown in various tables and paragraphs included in these standalone financial statements have been rounded off or truncated as deemed appropriate by the management of the Company.

48    Previous year figures regrouped / reclassified wherever necessary to confirm to current year's classification.

49    No significant subsequent events have occured post the balance sheet date 31 March 2023 which may require an adjustment to the standalone financial statements.

50    Authorisation of financial statements

The Standalone financial statements for the year ended 31 March 2023 were approved by the board of directors on 16 May 2023.