Investments in associate are measured at cost as per Ind AS 27 'Separate Financial Statements' and accounted for using equity method

These arc not related parties as per Ind AS 24 'Related Parly Disclosures'.

Notes:

(a)    During the year, Company has invested Rs. 104.26 lakhs in Epavo Electricals Private Limited (associate) for purchase of 10,42,600 equity shares having par value of Rs.10. Further, the Company made additional investments amounting to Rs. 153.14 lakhs in the associate by acquiring 15,31,400 shares having par value of Rs. 10 by way of rights issue.

The investment is strategic in nature and considering that the associate has successfully commenced commercial production during the year and synergies expected from this investment, the Company is confident that the value of investments is good and recoverable.

(b)    The Company had invested Rs. 3.560.44 lakh on August 1, 2021 in EPACK Components Private Limited (ECPL), for purchase of 3,16,48.364 equity shares having par value of Rs.10 (at a premium of Rs.1.25 per share), which represents 100% of the total share capital ol ECPL. The consideration has been settled by issuing 39,16,751 equity shares against 3,16,48,364 equity shares of ECPL and balance through cash amounting to Rs 0.12 lakhs. (Refer note 13(b))

Notes:

The Company discounted trade receivables with banks for cash proceeds. If the trade receivables are not paid at maturity, the bank has the right to request the Company to pay the unsettled balance. As the Company has not transferred the significant risks and rewards relating to these trade receivables, it continues to recognise the full carrying amount of the receivables and has recognised the cash received on the transfer as current borrowing.

At the end ol the reporting period, the carrying amount of tlte trade receivables that have been discounted but have not been derecognised amounted at year ended March 31, 2023 Rs.

11.459.66 lakhs (March 31,2022 Rs. 20.897.00 lakhs) and the equivalent amount has been shown under current borrowings, (refer note 16(ii))

Refer note 40-C.l which details that the company does not have any expected loss based impairment recognised trade receivables, as such, based on management's assessments there is no significant credit risk concentration in respect of trade receivables.

c) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of 10/- per share. Each shareholder is entitled for one vote per share held. The di\ idend proposed by the Board ot Directors is subject to the approval ol the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation of the Company, the equity¹ shareholders are entitled to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

Terms and rights of Compulsorily Convertible Preference Shares (CCPS) issued to India Advantage Fund S4 I and Dynamic India Fund S4 US I:

I.    CCPS would be compulsorily converted into 1.57,85.057 number of equity shares as agreed between the company and CCPS holders at the option of the CCPS holders at any time afkr the date ol allotment of CCPS but not later than 20 years from the date of allotment.

The holders of CCPS-

a)    canry a preferential right vis-a-vis the holders of equity shares of the Company with respect to payment of dividend and repayment in case of a winding up or repayment of capital;

b)    carry, inter alia, following right in the event of liquidation;

The total proceeds from such liquidation event (whether in cash, or consideration other than cash to the extent such consideration other than cash has been approved by investor’s consent) (“Distributable Proceeds"), shall be distributed in following manner:

II.    In priority to all other shareholders, investors shall, on a pari passu basis, be entitled to an amount equal to the higher of following

(i)    consideration paid by the investors towards the purchase of their respective investor shares plus any accrued or declared but unpaid dividends on such investor shares; and

(ii)    an amount which is proportionate to the investors respective shareholding percentage in Company ("Liquidation Amount");

III.    If distributable Proceeds arc less than Liquidation Amount, the promoters and other shareholders (other than the investors) shall not be entitled to receive any Distributable Proceeds If the Distributable Proceeds are higher than the Liquidation Amount, then the balance amount after distributing the Liquidation Amount to the investors, shall be distributed among the shareholders (other than the Investors) of the Company in ratio of their inter-se shareholding.

IV.    During the year ended March 31, 2022. the Company issued 17.317.647 Non Cumulative Compulsorily Convertible preference shares (CCPS) of Rs. 10 each to India Advantage Fund S4 I and 1,505.882 Non Cumulative CCPS of Rs. 10 each to Dynamic India Fund S4 US I. Each CCPS may be converted into Equity Share, at any time at the option of the holders of the CCPS. Provided, however, that each CCPS shall, subject to applicable Law. automatically be convened into Equity Shares upon the earlier of (i) I (One) day prior to the expiry of its Tenure: or (ii) in connection with an IPO, prior to die filing of a prospectus (or equivalent document, by whatever name called) by the Company with (he competent authority or such later date as may be permitted under applicable Law.

The preference shares are compulsorily convertible into equity shares based on various conversion and exit options as per the terms of the shareholders' agreement. As per the shareholders' agreement, the Company shall make its best efforts to provide an exit to investors through an IPO (Initial Public Offer) on or before June 30, 2025 (“Cut-Off Date"). As per the arrangement with Investors, the Company has additional 15 months available from the cut-off date to undertake an IPO along with third party sale rights. If within the Exit Period, as defined in the terms of the agreement, the Company is unable to provide exit to Investors, then Investors shall he entitled to issue a written notice to the Company and its Promoters to provide an exit at fair market value of securities.

During the year, above terms were amended pursuant to waiver cum amendment agreement approved in the shareholders' meeting dated March 30. 2023 and subsequent board meeting dated June 12, 2023 and shareholders’ meeting dated June 13. 2023. wherein the aforesaid CCPS holders have waived off buy back rights associated with 1,88,23.529 CCPS held by them and agreed fixed the conCCPS in to equity shares w.e.f April I, 2022.

Nature and purpose of reserves:

(i)    Securities premium

Securities premium accounl has been created consequent to issue of shares. The reserve can be utilised in accordance with the provisions of the Companies Act. 2013.

(ii)    Retained earnings

Retained earnings are created from the profit / loss of the Company, as adjusted for distributions to owners, transfers to other reserves, etc.

Refer note 36 for related party disclosures * Notes:

i. During the year ended March 31, 2023. the Company has alloted 1.10,34,484 Non Cumulative Compulsorily Convertible Preference Shares amounting to Rs

16.000. 00 lakhs to Augusta Investments Zero Pte. Ltd., which has been accounted as "Financial liability" measured at fair value through profit and loss. Such CCPS are fair valued through profit and loss and the fair valuation loss amounting to Rs 154.95 lakhs has been accounted in the "Exceptional items" (refer note 31).

ii.    During the year ended March 31, 2022. the Company had alloted 1,88,23,529 Non Cumulative Compulsorily Convertible Preference Shares amounting to Rs

16.000. 00 lakhs to India Advantage Fund S4 I and Dynamic India Fund S4 US I. During the year, terms of these CCPS were amended pursuant to waiver cum amendment agreement approved in the shareholders' meeting dated March 30. 2023 and subsequent board meeting dated June 12. 2023 and shareholders' meeting dated June 13, 2023. wherein the aforesaid CCPS holders have waived off buy back rights associated with 1.88.23.529 CCPS held by them and agreed / fixed the conversion raJio-afXCPS in to equity shares w.e.f April I. 2022.

Conse(]UeUitly.;JfekK882;35 lakhs have been reclassified as "Instruments entirely equity in nature" (refer note 14) and Rs 14.117.65 lakhs haF^yt^^N^ssilied as "Othe^e^aify^Cs^rH^e^rVemiuin" (refer note 15). There is no resultant gain or loss on derecognition of financial liability.

Terms ami rights of Compulsorily Convertible Preference Shares (CCPS) issued to Augusta Investments Zero Pte. Ltd.:

I.    CCPS would be compulsorily converted into such number of equity shares at the option of the CCPS holder at any time after the date of allotment of CCPS but not later than 20 years from the date of allotment

The holders of CCPS-

a)    cany a preferential right vis-a-vis the holders of equity shares of the Company with respect to payment of dividend and repayment in case of a winding up or repayment of capital:

b)    carry, inter alia, following right in the event of liquidation:

The total proceeds from such liquidation event (whether in cash, or consideration other than cash to the extent such consideration other than cash has been approved by investor's consent) ("Distributable Proceeds’"), shall be distributed in following manner:

II.    In priority' to all other shareholders, investors shall, on a pan passu basis, be entitled to an amount equal to the higher of following

i) consideration paid by the investors towards the purchase of their respective investor shares plus any accrued or declared but unpaid dividends on such investor shares: and

(ii) an amount which is proportionate to the investors respective shareholding percentage in Company (Computed on fully diluted basis) ("Liquidation Amount"):

III.    If distributable Proceeds are less than Liquidation Amount, the promoters and other shareholders (other than the investors) shall not be entitled to receive any Distributable Proceeds. If the Distributable Proceeds are higher than the Liquidation Amount, then the balance amount after distributing the Liquidation Amount to the investors, shall be distributed among the shareholders (other than the Investors) of the Company in ratio of their inter-se shareholding.

IV.    During the year ended March 31, 2023, the Company issued 110.34.484 Non Cumulative Compulsorily Convertible preference shares (CCPS) of Rs. 10 to Augusta Investments Zero Pte, Ltd Each CCPS may be converted into Equity Share, at any time at the option of the holders of the CCPS. Provided, however, that each CCPS shall, subject to applicable Law, automatically be converted into Equity Shares upon the earlier of (i) I (One) day prior (o the expiry of its Tenure: or (ii) in connection with an IPO. prior to the filing of a prospectus (or equivalent document, by whatever name called) by the Company with the competent authority or such later date as may be permitted under applicable Law.

The preference shares are compulsorily convertible into equity shares based on various conversion and exit options as per the terms of the shareholders' agreement. As per the shareholders' agreement, the Company shall make its best efforts to provide an exit to investors through an IPO (Initial Public Offer) on or before June 30, 2025 (“Cut-Off Date”). As per the arrangement with Investors, the Company has additional 15 months available from the cut-off date to undertake an IPO along with third party sale rights. If within the Exit Period, as defined in the terms of the agreement, the Company is unable to provide exit to Investors, then Investors shall be entitled to issue a written notice to the Company and its Promoters to provide an exit at fair market value of securities.

The above terms were amended pursuant to waiver cum amendment agreement approved in the shareholders' meeting dated March 30. 2023 and subsequent board meeting dated June 12, 2023 and shareholders' meeting dated June 13. 2023. wherein the aforesaid CCPS holders have waived off buy back rights associated with LI0,34,484 CCPS held by them w.e.f. agreement date.

(iii) The Company has issued a letter of support to its subsidiary EPACK Components Private Limited (ECPL) to provide unconditional and irrevocable financial and operational support to the ECPL, in the event, ECPL is unable to meet its liabilities, obligations and commitments.

* Based on the past performance and future estimates, the Company is confident of its ability to fulfill it's export obligation.

** On February 23, 2022, the Company has entered into an infrastructure development agreement/lease agreement with M/s Sri City Private Limited (“Lessor”) and Sricity Manufacturing Cluster Private Limiter (Special Puipose vehicle (SPV)) for lease of land in Sri City premises for 99 years for the consideration of Rs. 1,242.00 lakhs (referred as “infrastructure development charges"). Lessor has obtained approvals from Ministry of Electronics and Information technology. Government of India ("MeitY") for establishing and setting up of Greenfield Electronics Manufacturing cluster ("Project”) with the Sri City premises.

In connection with above project, on March 15, 2022, the Company has entered into a share purchase agreement with the Lessor and M/s Sricity Electronics Manufacturing Cluster Private Limited ("SPV”) pursuant to which Lessor has given the reduction in infrastructure development charges payable by the Company. Accordingly, the Company has paid Rs. 1.068.23 lakhs towards Infrastructure Development Charges (classified as Right of Else Asset — refer Note 3(iv)) and Rs. 173.77 lakhs towards purchase ol 17,37,302 equity shares of Rs 10 each (classified as Non-Current Investments — refer Note 4(i)). Pursuant to this agreement, after obtaining permission from MeitY. SPV/Lessor has an option to buy back the equity shares from the Company at the then prevailing rate. In event of such buy back, the Company will realise the investments at such prevailing rate and simultaneously, shall pay the differential infrastructure charge ot Rs. 173.77 lakhs to SPV. Since the liming of this obligation is not ascertainable as on balance sheet date and not under the control of the Company, this has been disclosed under Other Commitments.

Notes:

35.1    Assessment order has been passed with income tax demand of Rs 27.98 lakhs for assessment year 2016-17, on account of certain disallowances made by assessing officer during assessment u/s 143(3) of the Income tax Act 1961. Further, the said demand was adjusted from the income tax refund for assessment year 2019-20. Appeal has been filed and pending with C1T (A).

35.2    Assessment order has been passed with reduction in income tax refund amount of Rs 34.99 lakhs on account of certain disallowances for assessment year 2021 -22. during assessment u/s 143(3) of the Income tax Act 1961. Appeal has been filed and pending with C1T (A).

35.3    GST deposited under protest amount to Rs 7.53 lakhs (for FY 2019-20 Rs 4.84 lakhs and FY 2020-21 Rs 2.69 lakhs) in respect to demand raised bv

respective GST authorities. Appeal has been filed and pending with respective Appeallate authority.    _

38 Capital management

The Company’s capital management objectives are

-    to ensure the Company’s ability to continue as a going concern

-    to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.

Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company’s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

39 Leases

(a) Information for leases where the Company is a lessee

The Company has leases for the factory lands and warehouses and offices. With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. The Company classifies its right-of-use assets in a consistent manner to its property, plant and equipment.

(i)    The maturity analysis of lease liabilities are disclosed in note 40 (C.2 liquidity risk).

(ii)    The Company has several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Company's business needs. Management exercises significant judgement in determining whether these extension and termination options are reasonably certain to be exercised.

Lease payments not recognised as a liability

The Company has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed of in the statement of profit and loss. The Company does not have any liability to make variable lease payments for the right to use the underlying asset recognised in the financials.

The expense relating to payments not included in the measurement of the lease liability for short term leases is Rs. 40.10 lakhs (previous year: Rs. 18.30 lakhs).

Total cash outflow for leases for the year ended March 31, 2023 was Rs 618.22 lakhs (previous year: Rs 559.74 lakhs)

B Fair values hierarchy

The fair value of Financial instruments as referred to in note (A) above has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].

The categories used arc as follows:

Level I: Quoted prices for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and

Level 3: Inputs which arc not based on observable market data (unobservable inputs). Fair values arc determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

a. Valuation process and technique used to determine fair value

i)    The derivative financial instruments are valued using forward exchange rates as at the balance sheet date.

ii)    The fair value of financial liabilities is estimated by discounting future cash flows using current rates applicable to instruments with similar terms, currency and credit risk.

B.2 Fair value of instruments measured at amortised cost

The management assessed that fair values of current loans, other current financial assets, cash and cash equivalents, other bank balances, trade receivables, investments, short term borrowings, trade payables, lease liabilities and other current financial liabilities approximate their respective carrying amounts largely due to the short-term maturities of these • instruments. The fair value of the financial assets and liabilities is 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:

(i)    Long-term fixed-rate receivables arc evaluated by the Company based on parameters such as interest rates, individual creditworthiness of the customer and other market risk-factors.

(ii)    The fair values of the Company’s fixed interest-bearing receivables and lease liabilities are determined by applying discounted cash flows (‘DCF’) method on contractual cash flows, using disfiouuu^telthat reflects the issuer's borrowing rate as at the end of the reporting period. The own non-performance risk 3s at 31 March 2023 was assessed to be

(iii) All the other long term borrowing facilities availed by the Company arc variable rate facilities which arc subject to changes in underlying interest rate indices. Further, the credit spread on these facilities are subject to change with changes in Company's creditworthiness. The management believes that the current rate of interest on these loans are in close approximation from market rates applicable to the Company. Therefore, the management estimates that the fair value of these borrowings arc approximate to their respective carrying values.

C Financial Risk Management

Risk Management

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

C.l Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and other financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

(i)    Low credit risk

(ii)    Moderate credit risk

(iii)    High credit risk

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances arc written off and attempts to enforce repayment. Recoveries made arc recognised in statement of profit and loss.

Trade receivables

Credit risk related to trade receivables arc mitigated by taking bank guaramees/lener of credit from customers where credit risk is high ana taking insurance cover for receivables. The Company closely monitors the credit-worthiness of the trade receivables through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The provision for expected credit losses on trade receivables are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs, based on the Company’s past history, existing market conditions, current creditability of the party as well as forward looking estimates at the end of each reporting period.

The Company provides for expected credit losses on loans and advances by assessing individual financial instruments for expectation of any credit losses. Since this category includes loans and receivables of varied natures and purpose, there is no trend that the Company can draw to apply consistently to entire population. For such financial assets, the Company’s policy is to provide for 12 month expected credit losses upon initial recognition and provides for lifetime expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes security deposits, margin money and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system arc in place ensure the amounts arc within defined limits.

:.2 Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities dial arc 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.

The Company had obtained fund and non fund based facilities from various banks. The company also constantly monitors funding positions available in the market with a view to maintain financial flexibility.

C.3 Market risk a) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US Dollar. Chinese YUAN . Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company. Considering the volume of foreign currency transactions, the Company has taken forward contracts to manage its exposure. The Company docs not use forward contracts and swaps for speculative purposes.

Notes:

(i)    Income tax assets

Income lax assets expected 10 be realised beyond the period of 12 months have been rcclassilied as non-current.

(ii)    Restatement and reclassification of "Financial Liability" (CCPS)

During the previous year ended March 31, 2022, the Company had allotted 1,88,23,529 Non-Cumulative Compulsorily Convertible Preference Shares ("CCPS") amounting Rs 16,000 lakh (face value ot Rs. 10 each, at a premium of Rs,75 per share) and such CCPS were accounted as Equity which were not in accordance with Ind AS 32 "Financial Instruments: Presentation". During the current year, the Company has rectified the accounting treatment of such CCPS and reclassified the equity to financial liability measured at fair value through profit and loss and restated previous year comparative financial information in accordance with Ind AS 8 "Accounting Policies, Changes in Accounting Estimates and Errors".

Consequently, the CCPS issue related expenses amounting Rs 609.52 lakhs has been reclassified as "Finance costs" for the previous year which was accounted in Other equity (refer note 28).

(iii)    Reclassification of Vendor bill discounting facility

Limit facility utilised aggregating to Rs. 1,360.15 lakhs in respect to vendors bill discounting has been reclassified from "Trade Payables - creditors other than Micro Enterprises and Small Enterprises" to "Current borrowings".

43 On November 12. 2021, the Company obtained an approval for seeking incentives/ benefits of the ‘Production Linked Incentive (PL1) scheme for While goods (Air Conditioners and LEDs) , notified by the government on April 16, 2021 read with PLI Scheme guidelines issued thereunder and as amended from time to lime, hcreinaftci inferred as PLI scheme . The Company had applied under the PLI scheme for manufacturing of AC (Components) for which the approval was granted under the normal investment category with certain conditions related to investments and sales. The Company has included the sales or components other than AC while calculating incremental sales ol the current financial year within the limit as defined in the guidelines issued by the department and subsequent to the year end. the Company has furnished the scif-ccrtificd quarterly review reports (QRRs) required under the PLI scheme.

Based on such filings and other correspondence with concerned authorities, the Company is confident of availing the PLI incentive. Accordingly, the Company has accrued for the PLI as grant in the nature of income in accordance with Ind AS 20 - "Government Grants” and recognised an amount of Rs. 1.500.00 lakhs under other operating revenue (refer note 23) with corresponding receivable from government authorities (refer note 7(i)). Further, the Company is in the process of submitting the claim for disbursement.

(v)    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, 2017.

(vi)    With respect to scheme of arrangement entered into by the company, refer note 49 of the financial statement, the scheme does not have any accounting impact on current or previous financial year-.

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the

₍ Company to or in any other person(s) or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, seeurity or the like on behalf of the Ultimate Beneficiaries.

(viii)    No funds have been received by the Company from any person(s) or entities, including foreign entities ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of die Funding Party (“Ultimate Beneficiaries’') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ix)    Proper books of account as required by law have been kept by the Company including the daily back-up of the books of account and other books and papers of the Company maintained in electronic mode are kept in servers physically located in India.

(x)    Money raised by way of term loans were applied for the purposes for which these were obtained.

(xi)    The Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the current or previous year.

(xii)    The Company has not traded or invested in crypto currency or virtual currency during the current or previous year. The Company docs not have any advances in the nature of loans during the year.

46    There has been no delay in transferring amounts, required to be transferred, to die Investor Education and Protection Fund by the Company

47    The Company did not have any long-term contracts including derivative contracts for which there were anv material foreseeable losses as at March 31 2023

48    The Company’s primary business segment is reflected based on principal business activities carried on by the Company. "Managing Director & CEO"

has been identified as the Chief Operating Decision Maker (‘CODM’) and evaluates the Company’s performance and allocates resources based on analysis of the various performance indicators ol the Company as a single unit. Therefore, there are no separate reportable business segments as per Ind AS 108- Operating Segments. The Company operates in one reportable business segment i.e., manufacturing of consumer durable products and is primarily operating in India and hence, considered as single geographical segment. Majority of the revenue is derived from one geography and two external customers amounting to Rs 108.467.40 lakhs (previous year: Rs 60,948.96 lakhs from three external customers).    ___

Ý49 I lie Boaid of Directors of the Company, in its meeting held on April 26, 2022 have approved the proposed merger/ amalgamation of the Company and its Subsidiary i.c. EPAC K Components Private Limited in accordance with Section 230 to Section 232 and/or any other applicable provisions if any, of the Companies Act. 2013 on a going concern basis. On May 13. 2022. the Company has filed necessary documents with National Company Law Tribunal (NCLT) for approval of the proposed merger. Subsequently, on April 28. 2023. the Company and Subsidiary company have filed second motion application with NCLT. Upon the scheme becoming effective, the Subsidiary company shall stand dissolved without being wound-up and without any requirement of any further act or deed. As on the date of signing of these financial statements, approval from NCLT is awaited.

50    I he 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. 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.

51    Event Occurring after the reporting period

(i)    I lie Company has been converted from Private Limited Company to a Public Limited Company pursuant to resolution of shareholders passed at the Extra Ordinary General Meeting dated June 13. 2023. A fresh certificate of incorporation with the name "EPACK. DURABLE LIMITED" was issued by the Registrar ol Companies (ROC) on June 28, 2023.The provisions of Companies Act, 2013 as relevant to the public limited company will be effective from the date of approval by ROC i.e. 28 June 2023.

(ii)    On June 13. 2023, the Shareholders of the Company increased the authorised share capital of the Company to Rs 10,500.00 Lakhs divided into 10.50.00,000 equity shares of Rs 10/- each

(iii)    Approval of the financial statements - The financial statements were approved for issue by the board of directors on July 13. 2023