2.13. Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised when the Company has present obligation (legal or constructive) as a result of
pastevents, for which it is probable that an outflow of resources embodying economic benefits will be
required to settlethe 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
notrecognised in the standalone financial statements but are disclosed in the notes to the standalone
financialstatements where an inflow of economic benefits is probable. Provisions and contingent liabilities
are reviewed ateach Balance Sheet date. If the effect of the time value of money is material, provisions are
discounted using a current pre-tax rate thatreflects, when appropriate, the risks specific to the liability.
2.14. Earnings Per Share (EPS) 95
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.
2.15. Cash and cash equivalents
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.
1. During the quarter ended 30th September 2024, the company has issued 12827648 Equity Shares of Re. 1/- each on
preferential basis to certain investors other than the promoter group at the issue priceof Rs. 19.71/ - per share including
premium of Rs. 18.71/ - per share.
2. During the quarter ended 31st March 2025, the Company has raised a total of ?1932.77 Lakhs through the issuance of
43,57,001 Equity shares of Re. 1/- per share a preferential basis at an issue price of?44.36 per share including premium of
Rs. 43.36 /- per share.
The company incurred professional fees amounting to ?206.80 Lakhs in relation to the right issue, which include legal,
advisory, and other professional services.In accordance with the provisions of the Companies Act, 2013, the professional
fees were paid from the Share Premium Account, as it is permissible to use share premium for issue-related expenses.
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. 31. Interest on Lease Liability of Rs.41.04 lakhs (PY Rs. 9.94 lakhs)
- 'Depreciation and Amortization expense' in Note no. 32. Amortization of Lease Liability of Rs. lakhs 107.14(PY Rs.30.04
lakhs)
- The total outstanding cash outflow for lease as per the agreement is Rs. 1822.41 lakhs (PY Nil).
- There has been addition to right of use asset in the current year Rs. 1543.64 lakhs (PY Rs. 149.90 lakhs).
- There has been no deletion to right of use asset in the current year.
The Company has taken premises under leave and license agreement, the rent and escalation depends upon the lease
agreement entered by the Company. 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:
The management assessed that the fair value of cash and cash equivalent, and other current financial assets and
liabilities approximate their carrying amounts largelydue to the short term maturities of these instruments.
Level 1: The fair value of financial instruments traded in active markets (such as equity securities), if any, is based on
quoted market prices at the end of the reportingperiod. The quoted market price used for financial assets held by the
company is the current bid price. These instruments are included in level 1.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observablemarket data and rely as little as possible on entity-specific estimates. If
all significant inputs required to fair value an instrument are observable, the instrument isincluded in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level
3. This is the case for unlisted equitysecurities and investment in private equity funds, real estate funds.
ii. Valuation technique used to determine fair value
Specific Valuation techniques used to value financial instruments include:
- the use of quoted market prices or dealer quotes for similar instruments
- the fair value of unquoted equity instruments has been measured on the basis of their networth and valuation of their
shares.
- the fair value of equity shares of group companies are measured at cost.
- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.
iii. Valuation processes
The finance department of the company includes a team that performs the valuations of financial assets and liabilities
required for financial reporting purposes, including level 3 fair values.
Note 38 :-Capital Management
For the purpose of the Company's capital management, capital includes issued equity share capital, securities premium
and all other reserves attributable to the equityholders 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. Tomaintain or adjust the capital structure, the Company can adjust the dividend
payment to shareholders, issue new shares, etc. The Company monitors capital using agearing 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.
fi) Foreign currency risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes inmarket interest rates. The interest rate risk can also impact the provision for retirement
benefits. The Company generally utilisesfixed rate borrowings and therefore not subject to interest rate risk,
since neither the carrying amount nor the future cash flows willfluctuate 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 anymajor interest bearing borrowings.
fB) 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, 2025
and March 31, 2024 is the carrying amounts as stated in balance sheet.
fC) Liquidity risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes inmarket interest rates. The interest rate risk can also impact the provision for retirement
benefits. The Company generally utilisesfixed rate borrowings and therefore not subject to interest rate risk,
since neither the carrying amount nor the future cash flows willfluctuate 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 anymajor interest bearing borrowings.
fB) Credit 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 fundingthrough an adequate amount of credit facilities to meet obligations
when due. The Company’s finance team is responsible forliquidity, funding as well as settlement
management. In addition, processes and policies related to such risks are overseen by seniormanagement.
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 43 : The Company has only one reportable segment and accordingly, no separate segment disclosures have
been made, as per Ind AS 108
Note 44 : Contingent Liability as on March 31, 2025 - Rs. Nil (P.Y. Rs. Nil)
Note 45 : 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 Equipment.
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) o
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 theIncome 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 ofCompanies Act, 1956.
Note 47 : In the opinion of the Board the Current Assets, Loans & Advances are realisable in the ordinary
course of business at least 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
Note 48 : The Company does not fall within the criteria mentioned in Section 135 of the Companies Act, 2013
and hence the provisions of Corporate Social Responsibility are not applicabl
Note 49: 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
Note 50: 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
Note 51 : Previous year figures have been regrouped, rearranged wherever considered necessary to confirm
with current years presentation
In terms of our report of even date For and on behalf of the Board of Directors of
For Ramanand & Associates Aerpace Industries Limited
Chartered Accountants
Firm Registration No 117776W
Mr Prem Singh Rawat Mr. Milan Shah
Ramanand Gupta Director Managing Director
Partner DIN:01423453 DIN:08163535
Membership No. 103975
Date: 14th May 2025 Anand Shah Neha Mankame
Place: Mumbai
UDIN: 25103975BM|FZU2858 Chief Financial Officer Company Secretary
Place: Mumbai Place: Mumbai
Date: 14th May, 2025 Date: 14th May, 2025
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