2. The Company had received a notice dated February 08, 2024 from Deputy Commissioner, Ghaziabad under Section 61 of UPSGST Act, 2017 for discrepancy in ITC claimed in GSTR-3B and ITC auto-populated in GSTR-2A during the financial year 2019-20. The Company has filed the reply dated February 27, 2024.

3. The Company received a notice dated 13.02.2023 from Deputy Commissioner, Ghaziabad under Section 61 of UPSGST Act, 2017 for discrepancy in the GST returns during the financial year 2021-22. The Company is in the process of filing the reply to the notice.

4. Disclosure as per Ind AS 1 'Presentation of financial statements'

In the current financial year, in compliance of Amendments to Ind AS-1 made effective from 1st April 2023, the significant accounting policies of the Company's financial statements have been replaced with 'Material' accounting policies.

The Material accounting policies is part of these financial statements of the company at note no. 1. The amendments have had an impact on the company's disclosure of accounting policies, but not on the measurement, recognition or presentation of any items in the company's financial statements.

5. Disclosure as required by Ind AS 8 "Accounting Policies, changes in Accounting Estimates and Errors"

(i) Disclosure of Accounting policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their 'significant' accounting policies with a requirement to disclose their 'material' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the company's disclosure of accounting policies, but not on the measurement, recognition or presentation of any items in the company's financial statements.

(ii) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the company's financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a single Transaction- Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

As a result of these amendments, the Company has to recognize a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify for offset as per the requirements of Paragraph 74 of Ind AS 12, there is no impact in the balance sheet.

b) Carrying amount of inventories pledged as security for borrowings as at March 31, 2024 is f 1012.64 Lakhs (March 31, 2023: f 816.73 Lakhs).

7. Provision for taxation is ascertained on the basis of assessable profits computed in accordance with provision of the Income Tax Act, 1961 multiplied by the rate specified under section 115BAA of the Income Tax Act, 1961.

8. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2024.

11. Disclosure as per Ind AS 38 'Intangible Assets'

Computer software (Payroll Software) amortised in the statement of Profit and Loss during the year is f 0.05 lakhs (March 31, 2023: f 0.09 lakhs).

12. Capital Management

The Company's objectives when managing capital are to:

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and

- maintain an appropriate capital structure of debt and equity.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international financial markets so as to maintain investors, creditors & markets' confidence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Company defines as returns from operating activities divided by total shareholders' equity deployed in operating activities.

13. Fair Value Measurements

Category wise classification of Financial Instruments

Financial assets and liabilities are measured at fair value in these financial statement and grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

The management assessed that cash and cash equivalents, trade receivables, trade payables, current borrowings and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair values of the financial assets and financial liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties. Methods and assumptions used to estimate the fair values are consistent. The following methods and assumptions were used to estimate the fair values:

i) The carrying amount of financial assets and financial liabilities measured at amortized cost in these financial statements are at reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

ii) The carrying amounts of current financial assets and current financial liabilities approximate their fair value mainly due to their short term nature.

During the financial year 2023-24 and 2022-23, there were no transfers between Level 1, Level 2 and Level 3 fair value measurements.

14. Financial Risk Management

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

-Credit risk -Liquidity risk -Market risk

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 Management reviews the Risk management policies and systems on a regular basis to reflect changes in market conditions and the Company's activities, and the same is reported to the Board of Directors periodically. Further, the Company, in order to deal with the future risks, has in place various methods / processes which have been imbibed in its organizational structure and proper internal controls are in place to keep a check on lapses, and the same has been modified in accordance with the regular requirements.

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 receivables from customers. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, investments, cash and cash equivalents, other financial assets.

Liquidity Risk

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.

Market Risk

Market risk is the risk of changes or fluctuations in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company's investments are predominantly held in Mutual funds.

15. Disclosure as per Ind AS 19 'Employee Benefits'

The Company contributes to the following post-employment defined benefit plans in India.

Defined Contribution Plan

The Contributions to the Employee's State Insurance Corporation and Provident Fund of employees are made to government administered fund and there are no further obligations beyond making such contributions.

Employer's contribution to Provident Fund and Employees State Insurance recognized as an expense for the year is f 5.11 Lakhs (Previous year f 5.33 Lakhs).

Defined Benefit Plan

The present value of defined benefit obligations is determined based on actuarial valuation measured using the Projected Unit Credit Method. The assumptions and methodology used in compiling the actuarial valuation report are consistent with the requirements of Indian Accounting Standard (Ind AS) 19.

All the above defined benefit plans expose the Company to general actuarial risks such as the amount pertaining to the plan is not kept in separate bank account.

Based on the actuarial valuation obtained in this respect, the following table set out the status of Gratuity and amounts recognised in the company's financial statements as at balance sheet date:

a) Figures in bracket represent previous year amounts.

b) All the related party transactions have been entered on arms’ length basis.

c) No amount has been written off/provided for or written back during the year in respect of amount receivable from or payable to the related parties.

d) The company has taken collateral from company in which Directors are interested i.e. M/s. Bonita Furniture Pvt. Ltd. in the financial year 2022-23. However the collateral has been relinquished during the current year.

19. Disclosure as per Ind AS 108 'Operating Segments'

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director and CFO of the Company. The company has identified one reportable segment based on the information reviewed by CODM.

20. Disclosure as per Ind AS 115, 'Revenue from contracts with customers'

l) Nature of goods and services

The revenue of the Company comprises of income from sale of plastic furniture, sale of Almirah and sale of granules LLDPE.

21. Disclosure as required by Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

a) Disclosures in compliance with the Accounting Standard on "Related Party Disclosures" made in note 2.27 (17).

b) Loans and advances in the nature of loans:

Holding Company: N.A.

Subsidiary Company: N.A.

Firm/ companies in which directors are interested: Nil

c) Investment by the loanee (as detailed above) in the share of Avro India Limited and its subsidiaries: N.A.

22. Disclosure as per Ind AS 116 'Leases'

The Company has acquired land on leasehold basis. According to the U.P. State Industrial Development Authority (UPSIDA) letter dated October 9, 2023, the leasehold land is classified as perpetual in nature and hence Ind AS 116 is not applied.

23. Recent pronouncements:

There are no standards of accounting or any addendum thereto, prescribed by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013, which are issued and not effective as at March 31, 2024.

24. The Company has neither paid nor declared any dividend during the year.

There are no standards of accounting or any addendum thereto, prescribed by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013, which are issued and not effective as at March 31, 2024.

25. Additional Regulatory Information

There are no standards of accounting or any addendum thereto, prescribed by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013, which are issued and not effective as at March 31, 2024.

i. The Company does not have an immovable property whose title deeds are not held in the name of the Company.

ii. The Company does not have any investment property as at 31st March, 2024.

iii. Loans or advances in the nature of loans have not been granted to any promoters, directors, KMP’s and the related parties (as defined in Companies Act, 2013), either severally or jointly with any other person.

iv. During the year Company has not revalued any of its Property, Plant and Equipment.

v. During the year Company has not revalued any of its Intangible assets.

vi. The company has a capital-work-in progress in the books and relevant disclosures of the same is provided at note no. 2.2.

vii. The Company does not have any intangible assets which is under development.

viii. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

ix. The Company has taken working capital loans from IDFC bank on the basis of primary security by way of

hypothecation of current assets including stocks, book debts and movable fixed assets of the Company and Collateral on property situated at A-7/36-39, south of GT Road Industrial Area, Ghaziabad, U.P. and Plot No. C-19, UPSIDC, Masuri Gulawthi, Tehsil- Dhaulana, Distt- Hapur, U.P. Owned by Company M/s. AVRO India Limited. .

Further, the facilities have been secured by Unconditional and Irrevocable personal guarantee of Mr. Sushil Kumar Aggarwal, Mr. Sahil Aggarwal and Mrs. Anita Aggarwal, Directors of the company.

The quarterly returns / statement of current assets filed by the company with banks are in agreement with the books of accounts.

x. The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

xi. The Company has not advanced or loaned or invested any fund to any entity (Intermediaries) with the understanding that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party with the understanding that the Company shall whether, directly or indirectly lend or invest in other entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

xii. The Company has not entered into any transaction with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

xiii. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

xiv. The Company does not have any subsidiary company as prescribed in clause (87) of section 2 of the Companies Act, 2013 therefore Companies (Restriction on number of layers) Rules, 2017 are not applicable.

xv. There are no scheme of arrangements which has been approved by the competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

xvi. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

xvii. The Company does not have any 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.

xviii. Corporate Social Responsibility (CSR): CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is E 8.00 Lakhs (Previous Year nil).

26. On the basis of the total income of the Company, the figures appearing in the financial statements have been rounded off to nearest lakhs.

27. Previous year figures have been re-group / reclassified wherever necessary.