* All the Subsidiaries are Wholly Owned Subsidiaries of Airan Limited except Quadpro ITES Limited where Airan Ltd. holds 56.98% as on 3103-2023 & 31-03-2022.

FY 2021-22

* The Board of Directors of the Company, in their Board meeting held on 09-03-2022, approved the acquisition of 14,53,477 equity shares of Rs. 10 each (70.45% equity stake) of Quadpro ITES Limited (Previously known as Quadpro E-Service Private Limited.)

The acquisition was completed on 10-03-2022 through a Share Purchase Agreement dated 10-03-2022. Consequent to the acquisition, Company holds 70.45% equity shares and voting rights in Quadpro ITES Limited (Previously known as Quadpro E-Service Private Limited.) and accordingly such investments has been classified as an investment in subsidiary.

(ii) Details of rights, preferences and restrictions attached to the equity shares

The Company has only one class of equity shares having par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of company, the holders of equity shares will be entitled to receive remaining assets of company after settlement of all liabilities. The distribution will be in propotion to the number of equity shares held by the shareholders.

1. Securities premium

Securities premium reflects issuance of the shares by the Company at a premium, whether for cash or otherwise i.e. a sum equal to the aggregate amount of the premium received on shares is transferred to a "securities premium account" as per the provisions of the Companies Act, 2013. The reserve can be utilised in accordance with the provisions of the Act.

2. Retained earnings

The retained earnings reflect the profit of the company earned till date net of appropriations. The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the balance in this reserve, after considering the requirements of the Companies Act, 2013.

Capital management

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

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any borrowing in the current period.No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2023 and 31 March 2022.

Nature of security

In FY 21-22, the company has availed a Term Loan of Rs. 1,73,94,809/- @ 7.5% p.a. from HDFC Bank payable in EMI of Rs. 5,41,087/- for 61 months starting from 07-04-2024 under EEG WCTL-GECL Extn Scheme. The above Borrowing are secured by the same securities as offered under the Working Capital Facilty availed by HDFC Bank and as mentioned in Note 14(b). The above balance includes accumulated interest payable till the year end.

*Nature of security:

During the year the company has availed a Dropline Overdraft Limit of Rs. 12 Cr from HDFC Bank @ 7.5% (Repo Rate 4% Spread 3.5%) wef 06-11-2021.The above Dropline Overdraft Limit from bank are secured by Lien on Various Properties of the Company as mentioned below:

1. 104 to 106, 201,202,301,302,304 to 311, 401 to 412, Kirtiman Complex, Bh Remdrandt, C G Road, Ahmedabad, having Carring value of Rs. 8,70,26,287/-

2. Flat no. 1/5 & 1/6, Northview Society, Navrangpura, Ahmedabad, having Carring value of Rs. 2,14,21,670/-

3. GF no. B/2, New Vaibhav Society, B/h Yes Bank, C G Road, Ahmedabad, having Carring value of Rs. 56,74,425/-

4. 9, Krishna Bunglows, Karamsad Vidhyanagar Road, Karamsad, Anand, having Carring value of Rs. 1,18,23,120/-

5. 12, Inquilab Society, Gulbai Tekra, Near Atlanta Tower, Ahmedabad, having Carring value of Rs. 7,65,44,877/** Short Term Borrowings from Bank relates to Outstanding Balances of Credit Cards at the year end

Determination of fair values:

Investment in Equity shares, quoted : Equity investments traded in an active market determined by reference to their quoted market prices.

B. Financial risk management

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

a) credit risk

b) liquidity risk

c) market 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 along with the top management are responsible for developing and monitoring the Company's risk management policies.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems 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.

The Company's audit committee oversees how management monitors compliance with the Company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

ii. Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's trade receivables, certain loans and advances and other financial assets.

The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables

The Company has developed guidelines for the management of credit risk from trade receivables. The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue, Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk.

Other financial assets

This balance primarily constitute of Bank fixed deposits having maturity of more than 12 months.

Cash and cash equivalents

The Company held cash and cash equivalents with credit worthy banks and financial institutions as at the reporting dates which has been measured on the 12-month expected loss basis. The credit worthiness of such banks and financial institutions are evaluated by the management on an ongoing basis and is considered to be good with low credit risk. Also, no impairment loss has been recorded in respect of fixed deposits that are with recognised commercial banks and are not past due.

iii. Liquidity risks

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company has current financial assets which the management believes is sufficient to meet all its liabilities maturing during the next 12 months.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, including contractual interest.

iv. Market risks

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is exposed to market risk primarily related to foreign exchange rate risk (currency risk), interest rate risk and the market value of its investments. Thus the Company's exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

28 As per Ind AS 19 - "Employee benefits", the disclosures are given below: (^Am°^unt in ^Lakhs)

28.1 The Company operates the following unfunded defined benefit plan Unfunded:

Gratutiy

The Company has a defined benefit gratuity plan. The gratuity plan is primarily governed by the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The level of benefits provided depends on the member's length of service and salary at the retirement date. The gratuity plan is unfunded plan.

28.5 Risk exposure

Though its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below Interest Risk

A decrease in the bond interest rate will increase the plan liability.

Longevity Risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salary Risk

The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

Direct tax contingencies: The Company has ongoing disputes with income tax authorities relating to tax treatment of certain items. The disputes relate to tax treatment of certain expenses claimed as deductions, computation or eligibility of tax deductibel items.

The Company has contingent liability in respect of demands from direct tax authorities in India and other jurisdictions, which are being contested by the Company on appeal amounting to Rs. 2,270 lakhs as at March 31, 2023 and Rs. 2,270 Lakhs as at March 31, 2022 as well.

31 Operating segment

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company's other components and for which discrete financial information is available. The Company's chief operating decision-maker (CODM) is considered to be the Company's Managing Director ('MD'). The Company is engaged in the business of The Company is a leading provider of consulting, technology,outsourcing and next generation digital services & software,enabling clients to execute strategies for their digital transformation . Information reported to and evaluated regularly by the CODM for the purposes of resource allocation and assessing performance focuses on the business as a whole and accordingly, in the context of Operating Segment as defined under the Indian Accounting Standard 108 'Segment Information', there is no separate reportable segment.

36 Prior period comparatives

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