Astra Microwave Products Ltd. — AGM Information 2021

Jul 28, 2021

ASTRA MICROWAVE PRODUCTS LIMITED

Regd. Office: ASTFtA Towers, Survey No. 12(P), Kothaguda Post, Kondapur, Hitechcity, Hyderabad, Telangana, INDIA - 500084 Tel : +91 40 46618000, 46618001, Fax: +91 40 46618048 Email : info@astramwp.com, website : www.astramwp.com CI N : L29309TG1991PLC013203

July 28, 2021

To

The General Manager Department of Corporate Relations BSE Limited Sir Phiroze Jeejeebhoy Towers, Dalai Street, Fort, Mumbai -400 001

To The Vice President, Listing Department The National Stock Exchange of India Limited Exchange Plaza Bandra Kuria Complex, Bandra (East) Mumbai 400 051

Scrip code: ASTRAMICRO

Dear sir,

Scrip code: 532493

Sub: Notice of 30thAnnual General Meeting and Annual Report for the financial year 2020-21.

This is further to our letter dated 21stJuly, 2021 wherein it was informed that the Annual General Meeting (AGM) of the Company is scheduled to be held on 26th August, 2021.

In terms of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are submitting herewith Annual Report of the Company for the financial year 2020-21 and the Notice of AGM.

The Annual Report for the financial year 2020-21 including Notice of AGM is being sent to the shareholders electronically who have registered their email IDs. The same is also available on the Company's website at wvvw.astramwd.com.

Brief details of AGM are as under:

Date & Time	26th August, 2021 ; 3.00 p.m. 1ST
Mode	Video Conference / Other Audio-Visual
	Means
Cut-off date	19th August, 2021
e-voting start date & time	23rdAugust, 2021, 9.30 a.m. 1ST
e-voting end date & time	25thAugust, 2021, 5.00 p.m. 1ST

Thanking you,

Yours faithfully, For Astra Microwave Products Ltd

T.Anjaneyulu Dy.G.M - Company Secretary

Works : Unit 1 : Plot No. 12, ANRICH Industrial Estate, Bollaram, Medak Dist., Telangana State - 502 325 Unit 2 : Plot No. 56A, ANRICH Industrial Estate, Bollaram, Medak Dist.. Telangana State - 502 325 Unit 3 : Sy. No. 1/1,Imarath Kancha. Raviryala (Vil), Maheshwaram (Mdl) R.R. Dist., Telangana State - 500 005 Unit 4 : Sy. No. 1/1. Plot No. 18 to 21, lmarath Kancha, Hardware Park. Raviryala (V), Maheshwaram (M) R.R. Dist., T.S. - 500 005 R&D Centre: Plot No. 51 P. Bengaluru Aerospace Park(KIADB),Survey Nos Parts of 36 to 40, Bengaluru North, K.S. - 562 149.

Astra Microwave Products Limited

On A Winning Wavelength

ANNUAL REPORT 2020-21

www.astramwp.com

INDEX
Contents	Page No.
Quick Information	04
Notice	06
Board's Report	15
Report on Corporate Governance	50
Management Discussion and Analysis	67
Auditors' Report on Standalone Financial Statements	72
Standalone Financial Statements	80
Auditors' Report on Consolidated Financial Statements	125
Consolidated Financial Statements	132

QUICK INFORMATION

Board of Directors
	Dr. Avinash Chander Mr. S.Gurunatha Reddy Mr. M.Venkateshwar Reddy Mr. Sunil Kumar Sharma Ms. Kiran Dhingra, IAS (Retd.) Independent Director Mr. Atim Kabra	Chairman & Independent Director Managing Director Joint Managing Director Independent Director Non-Executive Director
Chief Financial Officer
	Mr. B.V.S.Narasinga Rao
Company Secretary
	Mr. T. Anjaneyulu
Auditors
	Price Waterhouse Chartered Accountants LLP Plot No. 77/A, 8-2-624/A/1, 3rd Floor, Road No. 10, Banjara Hills, Hyderabad -500 034 Tel: +91 (40)4424 6000, Fax: +91(40)44246300
Bankers
Registered Office	State Bank of India., Axis Bank Ltd., Canara Bank., HDFC Bank Ltd., ICICI Bank Ltd.,
	ASTRA TOWERS, Survey No: 12 (Part),
	Opp. CII Green Building,Hitech City, Kondapur, Hyderabad, Telangana - 500038, Phone: 040-46618000 / 8001 Website: www.astramwp.com CIN: L29309TG1991PLC013203
Factories	Unit I Plot No.12, ANRICH Industrial Estate, Miyapur, IDA Bollarum, Medak (District) Telangana– 502325.

Unit II

Plot No.56A, 56B and 57A, ANRICH Industrial Estate, Miyapur IDA Bollarum, Medak (District) Telangana – 502325.

Unit III

Survey No.1/1, Imarat Kancha, Raviryala Village, Maheswaram Mandal, Rangareddy (District), Telangana-500005.

Unit IV

Plot no: 18, 19, 20 & 21 (Part) Hardware Park, Sy.No: 1/1, Imarat Kancha of Ravirayal village, Maheswaram Mandal, R.R.Dist. Telangana- 500005.

EOU

Plot Nos. 18,19,20, 21 Part, Hardware Technology Park, Survey No.1\1, Imarath Kancha, Raviryala Village, Maheshwaram Mandal, Ranga Reddy, Telangana- 500005.

Ecity:

S.Y. No. 114 /1, Plot No. S-2/9 and 10, E-City, Raviryala, Srinagar V, Maheshwaram M, Ranga Reddy, Telangana- 501359.

Bengaluru Office:

Plot No. 51 P, Bengaluru Aerospace Park Industrial Area, Survey Nos. Parts of 36 to 40, JalaHobli,YelahankaTaluk, Bengaluru North, Bengaluru Urban – 562149, Karnataka.

Ahmedabad Office:

A102, Elanza Crest, Beside Sigma House, Sindhubhavan Road, Bodakdev, Ahmedabad- 380054, Gujarat.

5

Registrars Purva Sharegistry (India) Pvt. Ltd.,

Shiv Shakti Industrial Estate, Unit No.9, Ground Floor, 7 B J R Boricha Marg, Lower Parel, Mumbai - 400 011 Tele: 91-022-23016761 Email:support@purvashare.com

ASTRA MICROWAVE PRODUCTS LIMITED (CIN No: L29309TG1991PLC013203) Registered Office: Astra Towers, Survey No: 12(Part), Opp: CII Green Building, Hitech City, Kondapur, Hyderabad, Telangana, India- 500038 Tel: 040-46618000, Email: secretarial@astramwp.com Website: www.astramwp.com ---------------------------------------------------------------------------------------------------------------------------

NOTICE OF ANNUAL GENERAL MEETING

Notice is here by given that the 30th Annual General Meeting ("AGM") of the Members of Astra Microwave Products Limited will be held on Thursday, August 26, 2021at 3.00 p.m. through electronic mode [video conference ("VC") or other audio visual means ("OAVM")] to transact the following business:

Ordinary Business

• 1. To receive, consider and adopt:
• a) Audited Standalone Financial Statements of the Company for the financial year ended March 31,2021 together with the Reports of Board of Directors and Auditors thereon.
• b) Audited Consolidated Financial Statements of the Company for the financial year ended March 31, 2021 together with the Reports of Auditors thereon.
• 1. To declare a dividend on Equity Shares.
• 1. To appoint Mr. Atim Kabra (DIN: 00003366),who retires by rotation as a Director and being eligible, offers himself for re- appointment.

Special Business

4. Ratification of fixation of remuneration to the Cost Auditors:

To consider and, if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution:

"RESOLVED THAT the decision to pay a Remuneration of Rs.1,75,000/- (Rupees One Lakh Seventy five thousand only) to M/s. DZR & Co, the Cost Auditors of the Company for the year 2021-22, as recommended by the Audit Committee and approved by the Board of Directors, be and is here by ratified."

"RESOLVED FURTHER THAT the Board of Directors of the Company be and are hereby authorized to do all such acts and take steps as may be necessary, proper or expedient to give effect to this resolution."

By order of the Board For Astra Microwave Products Limited

S. Gurunatha Reddy Managing Director DIN:00003828

Place: Hyderabad Date: July 21, 2021

Notes:

• 1. The Statement as required under Section 102 of the Companies Act, 2013 ("the Act") is annexed to the Notice.
• 1. Ministry of Corporate Affairs ("MCA") has vide its circulars dated April 8, 2020, April 13, 2020, May 5, 2020 and January 13, 2021 ("MCA Circulars") permitted the holding of the Annual General Meeting ("AGM") through VC / OAVM. In compliance with the provisions of the Act, MCA Circulars and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"), the 30thAnnual General Meeting of the Company ("AGM") is being held through VC / OAVM on Thursday, August 26, 2021 at 3.00 p.m. The deemed venue of the AGM shall be the Registered Office of the Company. The procedure for joining the AGM through VC/ OAVM is mentioned in this Notice.
• 1. Since the AGM is being held through VC / OAVM, physical attendance of Members has been dispensed with. Accordingly, the facility for appointment of proxies by the Members will not be available for the AGM.The route map, Proxy Form as well as the Attendance Slip are therefore, not annexed to this Notice.
• 1. Members shall have the option to vote electronically ("e-voting") either before the AGM ("remote e-voting") or during the AGM. In compliance with the provisions of Section 108 of the Act and Rule 20 of the Companies (Management and Administration) Rules, 2014 and any amendments thereto, Secretarial Standard on General Meetings ("SS-2"), Regulation 44 of the SEBI Listing Regulations and MCA Circulars, the facility for remote e-voting and e-voting in respect of the business to be transacted at the AGM is being provided by the Company through Central Depository Services (India) Limited ("CDSL"). Necessary arrangements have been made by the Company with CDSL to facilitate remote e-voting and e-voting during the AGM.
• 1. The Company has appointed Mr. L. Dhanamjay Reddy, Practicing Company Secretary (Membership No.: ACS -13104) as the scrutinizer for scrutinizing the entire e-voting process i.e. remote e-voting and e-voting during the AGM, to ensure that the process is carried out in a fair and transparent manner.
• 1. Members are permitted to join the AGM through VC/OAVM, 15 minutes before the scheduled time of commencement of AGM and during the AGM, by following the procedure mentioned in this Notice. The facility of participation at the AGM through VC/OAVM will be made available to at least 1,000 Members on a first come first served basis. This will not include large shareholders (shareholders holding 2% or more shareholding), Promoters, Institutional Investors, Directors, Key Managerial Personnel, the Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, Auditors etc. who are allowed to attend the AGM without any restrictions pertaining to joining the AGM on a first come first served basis. Institutional Investors who are Members of the Company, are encouraged to attend and vote at the AGM.
• 1. The attendance of the Members joining the AGM through VC / OAVM will be counted for the purpose of ascertaining the quorum under Section 103 of the Act.
• 1. Members attending the AGM through VC / OAVM should note that those who are entitled to vote but have not exercised their right to vote by remote e-voting, may vote during the AGM through e-voting for all businesses specified in the Notice. The Members who have exercised their right to vote by remote e-voting may attend the AGM but cannot vote during the AGM.
• 1. Voting rights shall be reckoned on the paid-up value of the shares registered in the name of the Member/ Beneficial Owner list maintained by the depositories as on the cut-off date i.e. Thursday, August 19, 2021("cutoff date").
• 1. A person, whose name is recorded in the Register of Members / Beneficial Owners list maintained by the depositories as on Thursday, August 19, 2021 only shall be entitled to avail the facility of remote e-voting or e-voting during the AGM.
• 1. Any person who becomes a Member of the Company after sending of Annual Report and holding shares as on Thursday, August 19, 2021 shall also follow the procedure stated herein.

A person who is not a Member as on Thursday, August 19, 2021 should treat this Notice for information purposes only.

• 1. Register of Members and Share Transfer Books will remain closed from Friday, August 20, 2021 to Thursday, August 26, 2021 (both days inclusive).
• 1. The dividend of Rs.1.20/- per share has been recommended by the Board of Directors for the year ended March 31,2021, subject to approval of members. Dividend, if approved at the Annual General Meeting, shall be paid subject to deduction of tax at source as applicable on and from September 6, 2021.
• 1. Pursuant to Finance Act, 2020 dividend income is taxable in the hands of shareholders w.e.f. April 1, 2020 and the Company is required to deduct tax at source from dividend paid to shareholders at the prescribed rates. For the prescribed rates for various categories, please refer to the Finance Act, 2020 and the amendments thereof. The shareholders are requested to update their PAN with the DP (if shares held in electronic form) and Company / RTA (if shares held in physical form). A Resident individual shareholder with PAN and who is not liable to pay income tax can submit a yearly declaration in Form No. 15G / 15H, to avail the benefit of non deduction of tax at source by e-mail to support@purvashare.com on or before August 14, 2021.Shareholders are requested to note that in case their PAN is not registered, the tax will be deducted at a higher rate of 20%. Nonresident shareholders [including Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs)] can avail beneficial rates under tax treaty between India and their country of tax residence, subject to providing necessary documents i.e. No Permanent Establishment and Beneficial Ownership Declaration, Tax Residency Certificate, Form 10F, any other document which may be required to avail the tax treaty benefits. For this purpose the shareholder may submit the above documents (PDF / JPG Format) by e-mail to secretarial@astramwp.com/support@purvashare.com. The aforesaid declarations and documents need to be submitted by the shareholders on or before August 14, 2021.
• 1. In case of joint holders, only such joint holder who is higher in the order of names will be entitled to vote during the AGM.
• 1. Members who still hold share certificate(s) in physical form are advised to dematerialize their shareholding to avail the benefits of dematerialization, which includes easy liquidity since trading is permitted in dematerialized form only, electronic transfer, savings in stamp duty and elimination of any possibility of loss of documents. Further, with effect from April 1, 2019,requests for transfer of securities are not permitted unless the securities are held in a dematerialized form with a depository except in case of transmission or transposition of securities as per SEBI Listing Regulations.
• 1. Members holding shares in dematerialized form are requested to update with their respective Depository Participants ("DP"), their bank account details (account number, 9 digit MICR and 11 digit IFSC), e-mail IDs and mobile number. Members holding shares in physical form may communicate details to the Company / Registrar and Transfer Agent viz. Purva Sharegistry (India) Private Limited ("RTA") before Thursday, August 19, 2021 by quoting the Folio No. and attaching a scanned copy of the cancelled cheque leaf of their bank account and a self-attested scanned copy of the PAN card.
• 1. Members can avail the facility of nomination in respect of shares held by them pursuant to the provisions of Section 72 of the Act.
• 1. Additional information of Directors seeking re-appointment at the ensuing AGM, as required under Regulations 26(4) and 36(3) of the SEBI Listing Regulations and Clause 1.2.5 of the SS-2, is annexed to the Notice.
• 1. In line with MCA Circulars and SEBI circulars dated May 12, 2020 and January 15, 2021, the Notice calling the AGM along with the Annual Report for FY 2020- 21 ("Annual Report") is being sent through electronic mode to those Members whose email addresses are registered with the Company / Depositories. Members may note that the Annual Report will also be available on the website of the Company at www.astramwp. com, the website of the Stock Exchangesi.e. BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia. com respectively. The Notice is also disseminated on the website of CDSL (agency providing the remote e-voting facility and e-voting during the AGM) at www.evotingindia.com.

For the purpose of receiving the Notice of the AGM and the Annual Report through electronic mode in case the email address is not registered with the respective DPs / Company / RTA, Members may register the email IDs by sending email to the RTA through the following link available on its website: www.purvashare. com/email-and-phone-updation. Please provide the below mentioned details in the email:

• For Members holding shares in physical form: folio no., name of the shareholder, scanned copy
• of the share certificate, PAN (self-attested scanned copy of PAN card).
• For Members holding shares in dematerialized form: DP ID & Client ID, name of the shareholder and PAN.
• Members who have not yet registered their e-mail addresses are requested to register the same with their DPs in case the shares are held by them in dematerialized form and with Company/ RTA in case the shares are held by them in physical form.
• 1. All the documents referred in the Notice are available for inspection electronically from the date of dispatch of Notice till Thursday, August 26, 2021. Members seeking to inspect such documents are requested to write to the Company at secretarial@astramwp.com.
• 1. Investor Grievance Redressal: The Company has designated an e-mail ID i.e. secretarial@astramwp.com to enable the investors to register their complaints/send correspondence, if any.
• 1. Unclaimed Dividends: Pursuant to the provisions of Sections 124 and 125 of the Act read with the Investor Education and Protection Fund (Accounting, Audit, Transfer and Refund) Rules, 2016, dividends which remain unclaimed / unpaid for a period of 7 years are required to be transferred to Investor Education and Protection Fund.

The Company requests the Members to claim the unclaimed dividends within the prescribed period. The details of the unclaimed dividends are available on the website of the Company at www.astramwp.com and Ministry of Corporate Affairs at www.iepf.gov.in/. Members can contact the RTA for claiming the unclaimed dividends standing to the credit in their account.

1. Information in respect of such unclaimed dividend when due for transfer to the Investor Education and Protection Fund (IEPF) are given below:

S. No	For the financial year ended	Percentage of Dividend	Date of Declaration	Due date for transfer to the Investor Education and Protection Fund
1	March 31, 2014	55%	July 31, 2014	September 6, 2021
2	March 31, 2015	60%	July 30, 2015	September 5, 2022
3	March 31, 2016	60%	July 29, 2016	September 4, 2023
4	March 31, 2017	50%	July 28, 2017	September 3, 2024

5	March 31, 2018	60%	July 30, 2018	September 5, 2025
6	March 31, 2019	12.5%	August 14, 2019	September 20, 2026
7	March 31, 2020	60%	September 9, 2020	October 16, 2027

The Shareholders who have not encashed the aforesaid dividends are requested to make their claim to the Registrar, M/s. Purva Sharegistry (India) Pvt. Ltd., Shiv Shakti Industrial Estate, Unit No.9, Ground Floor, 7 BJR Boricha Marg, Lower Parel, Mumbai- 400011 Tele: 91-022-23016761, Email:support@purvashare.com.

• 1. Members seeking any information with regard to the financial statements or any matter to be placed at the AGM, are requested to write to the Company at least 7 days before the meeting through e-mail on secretarial@astramwp.com. The same will be replied by the Company suitably.
• 1. To prevent fraudulent transactions, Members are advised to exercise due diligence and notify the Company of any change in address or demise of any Member as soon as possible. Members are also advised not to leave their demat account(s) dormant for a long time. Periodic statement of holdings should be obtained from the concerned DPs and holdings should be verified from time to time.

PROCEDURE FOR REMOTE E-VOTING, ATTENDING THE AGM AND E-VOTING DURING THE AGM:

The voting period begins on Monday, August 23, 2021 from 9:30 a.m. (IST) and ends on Wednesday, August 25, 2021 at 5:00 p.m. (IST). During this period, Members of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date of Thursday, August 19, 2021, may cast their vote electronically. The e-voting module shall be disabled by CDSL for voting thereafter and the same will be enabled during the AGM for the Members who have not casted their vote through remote e-voting.

Members who have cast their vote by remote e-voting prior to the AGM may also attend / participate in the AGM through VC / OAVM but shall not be entitled to cast their vote again.

A.I. Procedure and instructions for individual Members holding shares in dematerialized form.

Type of Members	Login Method
Individual Shareholders holding securities in	1.Users who have opted for CDSL Easi / Easiest facility, can login through their existing user id and password. Option will be made available to reach e-Voting page without any further authentication. The URL for users to login to Easi / Easiest are https://web.cdslindia.com/ myeasi/home/login or visit www.cdslindia.com and click on Login icon and select New System Myeasi.
Demat mode with CDSL	2. After successful login the Easi / Easiest user will be able to see the e-Voting option for eligible companies where the evoting is in progress as per the information provided by company. On clicking the evoting option, the user will be able to see e-Voting page of the e-Voting service provider for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. Additionally, there is also links provided to access the system of all e-Voting Service Providers i.e. CDSL/NSDL/KARVY/LINKINTIME, so that
	3. If the user is not registered for Easi/Easiest, option to register is available at https://web. cdslindia.com/myeasi/Registration/EasiRegistration.
	4. Alternatively, the user can directly access e-Voting page by providing Demat Account Number and PAN No. from a e-Voting link available on www.cdslindia.com home page. The system will authenticate the user by sending OTP on registered Mobile & Email as recorded in the Demat Account. After successful authentication, user will be able to see the e-Voting option where the evoting is in progress and also able to directly access the system of all e-Voting Service Providers.

Individual Shareholders holding securities in demat mode with NSDL	1. If you are already registered for NSDL IDeAS facility, please visit the e-Services website of NSDL. Open web browser by typing the following URL: https://eservices.nsdl.com either on a Personal Computer or on a mobile. Once the home page of e-Services is launched, click on the "Beneficial Owner" icon under "Login" which is available under 'IDeAS' section. A new screen will open. You will have to enter your User ID and Password. After successful authentication, you will be able to see e-Voting services. Click on "Access to e-Voting" under e-Voting services and you will be able to see e-Voting page. Click on company name or e-Voting service provider name and you will be re-directed to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting. 2. If the user is not registered for IDeAS e-Services, option to register is available at https:// eservices.nsdl.com. Select "Register Online for IDeAS "Portal or click at https://eservices. nsdl.com/SecureWeb/IdeasDirectReg.jsp 3. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the home page of e-Voting system is launched, click on the icon "Login" which is available under 'Shareholder/Member' section. A new screen will open. You will have to enter your User ID (i.e. your sixteen digit demat account number held with NSDL), Password/OTP and a Verification Code as shown on the screen. After successful authentication, you will be redirected to NSDL Depository site wherein you can see e-Voting page. Click on company name or e-Voting service provider name and you will be redirected to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting.
Individual Shareholders (holding securities in demat mode) login through their Depository Participants	1. You can also login using the login credentials of your demat account through your Depository Participant registered with NSDL/CDSL for e-Voting facility. After Successful login, you will be able to see e-Voting option. Once you click on e-Voting option, you will be redirected to NSDL/ CDSL Depository site after successful authentication, wherein you can see e-Voting feature. Click on company name or e-Voting service provider name and you will be redirected to e-Voting service provider website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting.
	Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget Password option available at abovementioned website.

Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository i.e. CDSL and NSDL

Login type	Helpdesk details
Individual Shareholders holding securities in Demat mode with CDSL	Members facing any technical issue in login can contact CDSL helpdesk by sending a request at helpdesk. evoting@cdslindia.com or contact at 022- 23058738 and 22-23058542-43.
Individual Shareholders holding securities in Demat mode with NSDL	Members facing any technical issue in login can contact NSDL helpdesk by sending a request at evoting@nsdl. co.in or call at toll free no.: 1800 1020 990 and 1800 22 44 30

II) Login method for e-Voting and joining virtual meeting for shareholders other than individual shareholders holding securities in Demat mode & shareholders holding securities in physical mode.

• 1) The shareholders should log on to the e-voting website www.evotingindia.com.
• 2) Click on "Shareholders" module.
• 3) Now enter your User ID
• a. For CDSL: 16 digits beneficiary ID.
• b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID,
• c. Shareholders holding shares in Physical Form should enter Folio Number registered with the Company.
• 4) Next enter the Image Verification as displayed and Click on Login.

6) If you are a first-time user follow the steps given below:

	For Shareholders holding shares in Demat Form other than individual and Physical Form
PAN	Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department (Applicable for both demat shareholders as well as physical shareholders) • Shareholders who have not updated their PAN with the Company/Depository Participant are requested to use the sequence number sent by Company/RTA or contact Company/RTA.
D i v i d e n d Bank Details OR Date of Birth (DOB)	Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as recorded in your demat account or in the company records in order to login. • If both the details are not recorded with the depository or company, please enter the member id / folio number in the Dividend Bank details field as mentioned in instruction (v).

• 7) After entering these details appropriately, click on "SUBMIT" tab.
• 8) Shareholders holding shares in physical form will then directly reach the Company selection screen. However, shareholders holding shares in demat form will now reach 'Password Creation' menu wherein they are required to mandatorily enter their login password in the new password field. Kindly note that this password is to be also used by the demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company opts for e-voting through CDSL platform. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.
• 9) For shareholders holding shares in physical form, the details can be used only for e-voting on the resolutions contained in this Notice.
• 10) Click on the EVSN of Astra Microwave Products Limited.
• 11) On the voting page, you will see "RESOLUTION DESCRIPTION" and against the same the option "YES/NO" for voting. Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution.
• 12) Click on the "RESOLUTIONS FILE LINK" if you wish to view the entire Resolution details.
• 13) After selecting the resolution, you have decided to vote on, click on "SUBMIT". A confirmation box will be displayed. If you wish to confirm your vote, click on "OK", else to change your vote, click on "CANCEL" and accordingly modify your vote.
• 14) Once you "CONFIRM" your vote on the resolution, you will not be allowed to modify your vote.
• 15) You can also take a print of the votes cast by clicking on "Click here to print" option on the Voting page.
• 16) If a demat account holder has forgotten the login password then Enter the User ID and the image verification code and click on Forgot Password & enter the details as prompted by the system.
• 17) Facility for Non Individual Shareholders and Custodians –Remote Voting
• Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodians are required to log on to www.evotingindia.com and register themselves in the "Corporates" module.
• A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to helpdesk.evoting@cdslindia.com.
• After receiving the login details a Compliance User should be created using the admin login and password. The Compliance User would be able to link the account(s) for which they wish to vote on.
• The list of accounts linked in the login should be mailed to helpdesk.evoting@cdslindia.com and on approval of the accounts they would be able to cast their vote.
• A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.
• Alternatively Non Individual shareholders are required to send the relevant Board Resolution/ Authority letter etc. together with attested specimen signature of the duly authorized signatory who are authorized to vote, to the Scrutinizer and to the Company, if the aforesaid documents are not uploaded on the CDSL e-voting system, for the scrutinizer to verify the same.
• B. INSTRUCTIONS FOR SHAREHOLDERS ATTENDING THE AGM THROUGH VC/OAVM & E-VOTING DURING MEETING ARE AS UNDER:

11

1. The procedure for attending meeting & e-Voting on the day of the AGM is same as the instructions mentioned above for Remote e-voting.

2. 1. The link for VC/OAVM to attend meeting will be available where the EVSN of Company will be displayed after successful login as per the instructions mentioned above for Remote e-voting.
3. 1. Shareholders who have voted through Remote e-Voting will be eligible to attend the meeting. However, they will not be eligible to vote at the AGM.
4. 1. Shareholders are encouraged to join the Meeting through Laptops / IPads for better experience.
5. 1. Further shareholders will be required to allow Camera and use Internet with a good speed to avoid any disturbance during the meeting.
6. 1. Please note that Participants Connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to Fluctuation in their respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.
7. 1. Shareholders who would like to express their views/ask questions during the meeting may register themselves as a speaker by sending their request in advance atleast seven (7) days prior to meeting mentioning their name, demat account number/folio number, email id, mobile number at secretarial@ astramwp.com. The shareholders who do not wish to speak during the AGM but have queries may send their queries in advance seven (7) days prior to meeting mentioning their name, demat account number/ folio number, email id, mobile number at secretarial@astramwp.com. These queries will be replied to by the company suitably by email.
8. 1. Those shareholders who have registered themselves as a speaker will only be allowed to express their views/ask questions during the meeting.
9. 1. Only those shareholders, who are present in the AGM through VC/OAVM facility and have not casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through e-Voting system available during the AGM.
10. 1. If any Votes are cast by the shareholders through the e-voting available during the AGM and if the same shareholders have not participated in the meeting through VC/OAVM facility, then the votes cast by such shareholders shall be considered invalid as the facility of e-voting during the meeting is available only to the shareholders attending the meeting.

If you have any queries or issues regarding attending AGM & e-Voting from the CDSL e-Voting System, you can write an email to helpdesk.evoting@cdslindia.com or contact at 022-23058738 and 022-230 58542/43.

All grievances connected with the facility for voting by electronic means may be addressed to Mr. Rakesh Dalvi, Sr. Manager, (CDSL, ) Central Depository Services (India) Limited, A Wing, 25th Floor, Marathon Futurex, Mafatlal Mill Compounds, N M Joshi Marg, Lower Parel (East), Mumbai - 400013 or send an email to helpdesk.evoting@cdslindia.com or call on 022-23058542/43.

Other instructions:

• 1. The Scrutinizer shall, immediately after the conclusion of voting at the AGM, unblock the votes cast through remote e-Voting (votes cast during the AGM and votes cast through remote e-Voting) and make, not later than 2 working days of conclusion of the AGM, a consolidated Scrutinizer's Report of the total votes cast in favour or against, if any, to the Chairman or a person authorised by him in writing, who shall countersign the same.
• 1. The result declared along with the Scrutinizer's Report shall be placed on the Company's website: www.astramwp.com. The Company shall simultaneously forward the results to National Stock Exchange of India Limited and BSE Limited, where the shares of the Company are listed.
• 1. The resolutions proposed will be deemed to have been passed on the date of the AGM subject to receipt of the requisite number of votes in favor of the resolutions.

By order of the Board For Astra Microwave Products Limited

S. Gurunatha Reddy Managing Director DIN:00003828

Explanatory Statement Pursuant to Section 102(1) of the Companies Act, 2013

Item No. 4

At the Board Meeting held on the May 26, 2021, after considering the recommendation of the Audit Committee, the Broad of Directors have appointed M/s. DZR & Co, as the Cost Auditors of the Company for the year 2021-22 on a remuneration of Rs.1,75,000/- (Rupees One lac seventy five thousand only). Pursuant to the provisions of Section 148 read with the Companies (Audit and Auditors) Rules, 2014, the aforesaid remuneration approved by the Board of Directors is required to be ratified by the members of the Company.

None of the Directors / Key Managerial Personnel of the Company / their relatives are, in any way, concerned or interested, financially or otherwise, in the resolution set out at Item No. 4 of the Notice.

Your Directors recommend the resolution for your approval.

By order of the Board For Astra Microwave Products Limited

S. Gurunatha Reddy Managing Director DIN:00003828

Annexure to the Notice dated July 21, 2021

Details of Directors seeking appointment/re-appointment at the ensuing Annual General Meeting on August 26, 2021

[Pursuant to Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secretarial Standard 2 on General Meetings issued by the Institute of Company Secretaries of India]

S. No.	Particulars	Name of the Director
		Mr. Atim Kabra
1	DIN	00003366
2	Date of birth and Age	05thSeptember, 1968 53 Years
3	Qualification	Economics (Honors), Masters in Management
4	Experience and expertise in specific functional areas	More than 25 years of well rounded "equities exposure" including Portfolio Management, Equity Sales and Equity Research with global institutions like ABN AMRO Bank, ANZ Grindlays Bank etc.
5	Relationship with other Directors, Manager and other Key Managerial Personnel of the company	Mr. Atim Kabra is not related to any Directors, Manager and other Key Managerial Personnel of the company.
6	Terms and Conditions of appointment/ re-appointment	Appointment as Non-Executive Non Independent Director of the Company. He is entitled to sitting fees for attending Board and Committee and Commission as may be approved by the Board of Directors from time to time.
7	Remuneration last drawn by such person, if applicable and remuneration sought to be paid	Sitting Fees for 2020-21 – Rs.1 lac. Commission for 2020-21 – Rs.5.8 lacs.
8	Date of first appointment on the Board	24th June, 2019
9	Shareholding in the company	Holds 33,56,074 equity shares
10	The number of Meetings of the Board attended during the year	5 out of 5
11	Chairman / Member of the Committee of the Board of Directors of the Company	Nomination and Remuneration committee - Member
12	Directorship Details of the Board	1. Himpushp Agriculture & Allied Services private Limited 2. Point 2 Capital Advisors LLP

By order of the Board For Astra Microwave Products Limited

S. Gurunatha Reddy Managing Director DIN:00003828

DIRECTORS' REPORT

Dear Members,

Your Directors have pleasure in presenting the 30th Annual Report of your Company together with the Audited Financial Statements including Consolidated Accounts for the financial year ended March 31, 2021.

FINANCIAL RESULTS

STANDALONE (IND AS):

The Standalone performance under IND AS for the Financial Year ended March 31, 2021 is as under:

The Financial Summary (Rupees in lakhs)

Particulars	March 31,2021 (IND AS)	March 31,2020 (IND AS)
Total Income	60,081.57	47,367.02
Profit before finance cost, depreciation and tax expense	7,585.59	9,587.10
Finance cost	2,142.79	789.35
Profit before depreciation and tax expense	5,442.80	8,797.75
Depreciation	2,307.01	2,532.18
Profit before tax expense	3,135.79	6,265.57
Tax expense	742.60	1,531.62
Net Profit for the year	2,393.19	4,733.95
Other Comprehensive Income	14.17	(84.50)
Total Comprehensive Income	2,407.36	4,649.45
Retained earnings brought forward from earlier year	38,612.26	34,223.85
Retained earnings available for appropriation	41,019.62	38,873.30

CONSOLIDATED:

The Consolidated performance under IND AS for the Financial Year ended March 31, 2021 is as under:

The Financial Summary	(Rupees in lakhs)
Particulars	March 31,2021	March 31,2020
	(IND AS)	(IND AS)
Revenue from operations	64,091.22	46,722.43
Profit before finance cost,depreciation,share of profit of associates, exceptional items and tax expense	8,804.94	9,464.91
Finance cost	2,312.40	846.20
Profit before depreciation,share of profit of associates, exceptional items and tax expense	6,492.54	8,618.71
Depreciation and amortisation	2,354.11	2,575.91
Profit before share of profit of associates, exceptional items and tax	4,138.43	6,042.80
expenses
Share of profit of associates	-283.80	-128.89
Profit before exceptional items and tax expenses	3,854.63	5,913.91
Exceptional items	0	0
Profit before tax expense	3,854.63	5,913.91
Tax expense	969.46	1,509.76
Profit after tax expense	2,885.17	4,404.15
Non-controlling interests	0	0
Profit after tax expense after non-controlling interests	2,885.17	4,404.15
Other comprehensive Income	9.59	-71.97
Total Comprehensive Income	2,894.76	4,332.18
Add: Surplus at the beginning of the year	37,931.04	33,885.56
Less: Adjustment to the surplus at the beginning of the year (IND AS 115 and others)	0	-12.39
Total available for appropriation	40,825.80	38,205.36

For detailed analysis of the performance, please refer to management's discussion and analysis section of the annual report.

State of the Company's Affairs:

During the period under review, the Company has achieved an income of Rs.600,81,56,863/- and net profit of Rs.23,93,19,579/- on a standalone basis. During the same period, the Company has achieved revenue of Rs.640,91,21,903/- and net profit of Rs.28,85,13,674/- on a consolidated basis.

Share Capital

The Paid-up Share capital of the Company as on March 31, 2021 is Rs.17,32,23,350/-divided into 8,66,11,675 equity shares of Rs.2/- each fully paid up.

Dividend

The Board of Directors of your Company recommend a final dividend @60% on the paid up Equity Share Capital of the Company i.e.,Rs.1.20/-per equity share on face value of Rs.2 each,for the financial year ended 31st March,2021.

Dividend Distribution Policy

In accordance with Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, your Company has adopted a Dividend Distribution Policy formulated by the Board specifying the financial parameters, factors and circumstances to be considered in determining the distribution of dividend to shareholders and / or retaining profits earned by the Company.

The Dividend Distribution Policy, in terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, is available on the Company's website on www.astramwp.com.

Transfer to Reserves

The Board of Directors has decided to retain the entire amount of profits for FY 2020-21 in the Retained Earnings.

Credit Rating

During the year under review, the CRISIL has re-affirmed the following existing rating for Long Term and Short Term Bank facilities of the Company:

• a) Long-Term bank facilities: "CRISIL A/Stable.
• b) Short-Term bank facilities: "CRISIL A1".

Listing of Equity Shares:

The Company's equity shares are presently listed on the following Stock Exchanges:

• i) BSE Limited, PhirozeJeeJeebhoy Towers, Dalal Street, Mumbai-400 001;and
• ii) National Stock Exchange of India Limited, Exchange Plaza, Floor 5, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai -400051.

The Company has paid the Annual Listing Fees to the said Stock Exchanges for the financial year 2020-21.

Subsidiary Companies, Associates and Joint Ventures

As per Section 129 of the Companies Act, 2013,the consolidated financial statements of the Company and all its subsidiaries and Associates prepared in accordance with the applicable accounting standards and forms part of this Annual Report, further a statement containing salient features of the financial statements of our subsidiaries and associates in the prescribed form in AOC-1 is annexed to this Board's Report as Annexure-1.

Consolidated Financial Statements

The Consolidated financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (IND AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section133 of the Companies Act, 2013 and other relevant provisions of the Companies Act,2013.

In accordance with the provisions of Section 136 of the Companies Act, 2013, the audited financial statements of the Company including consolidated financial statements and related information of the Company and audited accounts of the subsidiaries, are available on the website of the company and a copy of separate Audited financial statements of its subsidiaries will be provided to shareholders upon their request.

Number of Meetings of the Board of Directors

Five (5) meetings of the Board of Directors were held during the financial year 2020-21. The details of the meetings are given in the Corporate Governance Report, which forms part of this Annual Report.

Management Discussion and Analysis

The Management Discussion and Analysis forms an integral part of this Report and provides details about the overall industry structure, developments, performance and state of affairs of the Company and other material developments during the financial year.

Directors Responsibility Statement

Pursuant to the requirement under Section 134 of the Companies Act, 2013, with respect to the Directors' Responsibility Statement, the Board of Directors of the Company hereby confirm that:

• i) In the preparation of the Annual Accounts,the applicable accounting standards have been followed and there are no material departures;
• ii) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2021 and of Profit and Loss Account of the Company for that period;
• iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safe guarding the assets of the Company and for preventing and detecting fraud and other irregularities;

• iv) The Directors have prepared the Annual Accounts for the financial year ended March 31, 2021 on a going concern basis;

• v) The Directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and

• vi) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Nomination and Remuneration Committee

The Nomination and Remuneration Committee presently consists of the following Directors namely Ms.Kiran Dhingra, IAS (Retd.), Chairperson, Dr. Avinash Chander and Mr. Atim Kabra as Members.

Brief description of terms of reference:

• a) Formulation of the criteria for determining qualifications, positive attributes and independence of a director and recommend to the Board a policy,relating to the remuneration of the directors, key managerial personnel and other employees;
• b) Formulation of criteria for evaluation of Independent Directors and the Board.
• c) Devising a policy on Board diversity.
• d) Identifying persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down and recommend to the Board their appointment and removal.

Nomination and Remuneration Policy

The objectives of the Policy

• 1) Today down criteria and terms and conditions with regard to identifying persons who are qualified to become Directors (Executive and Non-Executive) and persons who may be appointed in Senior Management and Key Managerial positions and to determine their remuneration.
• 2) To determine remuneration based on the Company's size and financial position and trends and practices on remuneration prevailing in peer companies.
• 3) To carry out evaluation of the performance of Directors.
• 4) To retain,motivate and promote talent and to ensure long term sustainability of talented managerial persons and create competitive advantage.

The details of the meetings of the Nomination and Remuneration Committee convened during the financial year 2020 - 21 are given in the Corporate Governance Report which forms part of this Annual Report.

Particulars of Loans, Guarantees or Securities or Investments under Section 186

The particulars of loans, guarantees and investments under Section186 of the Companies Act, 2013 read with the Companies (Meetings of Board and its Powers) Rules, 2014, for the financial year 2020-21 are given in Note 3 and 33 of the Notes to the financial statements.

Transactions with Related Parties

All related party transactions entered into during FY 2020-21 were on arm's length basis and in the ordinary course of business. No material related party transactions were entered into during the financial year by the Company.

All transactions with related parties were reviewed and approved by the Audit Committee. Prior omnibus approval is obtained for related party transactions which are of repetitive nature and entered in the ordinary course of business and on arm's length basis.

The particulars of contracts or arrangements with related parties referred to in sub-section (1) of Section 188 entered by the Company during the financial year ended March 31, 2021 in prescribed Form AOC-2 is annexed to this Board's Report as Annexure- 2.

Corporate Social Responsibility (CSR)

Pursuant to Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, your company has approved Policy on CSR

Further, the Corporate Social Responsibility policy is placed on the website of the Company at www.astramwp. com.

The Board of Directors of the Company have constituted a Corporate Social Responsibility Committee presently consisting of following Directors namely Mr. S. Gurunatha Reddy, Chairman, Mr. M. V. Reddy, and Dr. Avinash Chander as Members.

A report on Corporate Social Responsibility as per Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014 is annexed to this Board's Report as Annexure- 3.

During the Financial year, Corporate Social Responsibility Committee meeting was held on June 24, 2020.

Attendance at the Corporate Social Responsibility Committee Meetings:

Name of the Director	Category		Number of Meetings
		Held	Attended
Mr. S. Gurunatha Reddy	Chairman	1	1
Mr. M.V.Reddy	Member	1	1
Dr. Avinash Chander	Member	1	1

Astra Foundation

Astra Foundation was established under Section 8 of the Companies Act, 2013 as a Non-Profit Organisation on 9th July, 2016, as a subsidiary of the company to grant donations to poor and needy for meeting expenditure of education, welfare, medical treatments and to establish, promote, set-up, run, maintain, assist, finance, support and / or aid in setting up and / or maintaining and /or running school for orphanages, poor houses for relief and help to the poor, old and inform people and / or destitutes.

The wholly owned subsidiary i.e., Astra Foundation has not carried out any activities during the financial year under review.

Mechanism for Evaluation of Board

Pursuant to the provisions of the Companies Act, 2013 and SEBI [Listing Regulations], the performance evaluation of the Board, the Committees of the Board and Individual Directors is done on annual basis.

Evaluation of all Board members is done on an annual basis. The Individual Directors' responses to the questionnaire on the performance of the Board, committee(s), Directors and Chairman, were analyzed by an independent consultant, to arrive at unbiased conclusions.

Directors and Key Managerial Personnel

Directors:

As per the provisions of the Companies Act, 2013 read with Companies (Qualifications and Appointment of Directors) Rules, 2014, Mr. Atim Kabra, Director (DIN:00003366) retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment. The Board recommends his re-appointment.

Mr.V.V.R.Sastry, Independent Director ceased as Director of the Company with effect from January 28, 2021 due to retirement. The Board places on record its deep appreciation for the valuable services rendered by him to the Board and the company during his tenure as Chairman of Audit Committee and Independent Director.

Mr.B.L.N.Raju, Independent Director ceased as Director of the Company with effect from January 28, 2021 due to retirement. The Board places on record its deep appreciation for the valuable services rendered by him to the Board and the company during his tenure as Chairman of Nomination and Remuneration Committee and Independent Director.

The Independent Directors of the company have submitted their declaration of independence, as required pursuant to the Section149(7) of the Companies Act, 2013 stating that they meet the criteria of independence as provided in Section 149(6) of the Companies Act,2013.

19

Key Managerial Personnel:

Mr.S.Gurunatha Reddy - Managing Director

Mr.M.V.Reddy - Joint Managing Director

Mr.B.V.S.Narasinga Rao - Chief Financial Officer

Mr. T.Anjaneyulu - Company Secretary

There has been no change in the key managerial personnel during the year.

Deposits

The Company has not accepted any deposits from the public in terms of Section 73 of the Companies Act, 2013.

AUDITORS

Statutory Auditors

Price Waterhouse Chartered Accountants LLP, Chartered Accountants (FRN 012754N/N500016), Statutory Auditors of the company hold office till the conclusion of the 31st Annual General Meeting of the company.

The Auditor's report to the shareholders on the standalone and consolidated financial statement for the financial year ended March 31, 2021 does not contain any qualifications, observations or adverse comment.

Internal Auditors

The Board of Directors of the Company have appointed M/s. Kirtane & Pandit LLP, Chartered Accountants as Internal Auditors to conduct Internal Audit of the Company for the financial year ended March 31, 2021.

Cost Auditors

Pursuant to the provisions of Section 148(3) of the Act, the Board of Directors had appointed M/s.DZR &Co., (FRN: 000173), as Cost Auditors of the Company, for conducting the audit of cost records for the financial year ended March 31, 2021. The audit is in progress and report will be filed with the Ministry of Corporate Affairs within the prescribed period. A proposal for ratification of remuneration of the Cost Auditors is placed before the shareholders.

Secretarial Auditor Report

As per the provisions of Section 204 and other applicable provisions, if any, of the Companies Act, 2013, the Board of Directors have appointed Mr. L. Dhanamjay Reddy, Practising Company Secretary (C.P.No: 3752) as Secretarial Auditor for auditing the secretarial records maintained by the Company for the financial year 2020-21.

The Secretarial Auditor's Report is annexed to this Board's Report as Annexure- 4A.

Secretarial Audit of Material Unlisted Indian Subsidiary

Secretarial Audit of Bhavyabhanu Electronics Private Limited, the material unlisted Indian subsidiary of the Company was also undertaken by Mr. L. Dhanamjay Reddy, Practising Company Secretary, Hyderabad for the financial year 2020-21 and their report is annexed as'Annexure-4B' to this report in terms of Regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Annual Secretarial Compliance Report

The Company has undertaken an audit for the financial year 2020-21 for all applicable compliances as per Securities and Exchange Board of India Regulations and Circulars/Guidelines issued thereunder. The Annual Secretarial Compliance Report issued by Mr. L. Dhanamjay Reddy, Practising Company Secretary, Hyderabad has been submitted to the Stock Exchanges within the specified time and same is annexed here with as 'Annexure – 4C'.

Board's response on Auditor's qualification, reservation or adverse remark or disclaimer made

There are no qualifications, reservations or adverse remarks made by the statutory auditors in their report or by the Practicing Company Secretary in the Secretarial Audit Report for the financial year.

During the year, there were no instances of frauds reported by auditors under Section 143(12) of the Companies Act, 2013.

Audit Committee

The Audit Committee presently consists of the following Directors namely Mr. S.K.Sharma, Chairman, Dr. Avinash Chander, Mr. S. Gurunatha Reddy and Ms.Kiran Dhingra, IAS (Retd.) as members of the Committee.

All members of the Audit Committee are financially literate and have experience in financial management.

All the recommendations made by the Audit Committee were accepted by the Board of Directors of the Company.

The terms and reference of Audit Committee and details of the meetings of the Audit committee held during the financial year 2020-21 and the attendance of members are provided in the Corporate Governance Report, which forms part of this Annual Report.

Corporate Governance

The Corporate Governance Report regarding compliance of the conditions of corporate governance by your Company as stipulated in Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is annexed as part of this Report along with the Certificate on its compliance.

Vigil Mechanism / Whistle Blower Policy

Pursuant to the provisions of Section177 of the Companies Act, 2013 read with Rule 7 of the Companies (Meetings of Board and its Powers) Rules, 2014 and Regulation 22 of the SEBI Listing Regulations, the Board of Directors had approved the policy on Vigil Mechanism / Whistle Blower and the same was hosted on the website of the company. This Policy inter-alia provides a direct access to the Chairman of the Audit committee.

Your company hereby affirms that no Director / Employee has been denied access to the Chairman of the Audit Committee and that no complaints were received during the year. The policy of vigil mechanism is available on the Company's website.

Prevention of Insider Trading:

As per SEBI (Prohibition of Insider Trading) Regulation, 2015, the Company has adopted a Code of Conduct for Prevention of Insider Trading. The Company has appointed Mr.T.Anjaneyulu, Dy.G.M - Company Secretary as Compliance Officer, who is responsible for setting forth procedures and implementation of the code for trading in Company's securities. During the year under review, there has been due compliance with the said code of conduct for prevention of insider trading.

Statement of particulars of appointment and remuneration of managerial personnel

The Statement of particulars of Appointment and Remuneration of Managerial Personnel as per Rule 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is annexed to this Board's Report as Annexure- 5.

Insurance

All properties and insurable interests of the Company have been fully insured.

Internal Financial Controls

The company has in place adequate internal financial controls with reference to financial statements. The Company maintains all its records in SAP System and the work flow and approvals are routed through SAP.

Names of Companies which have become or ceased to be Company's Subsidiaries, Joint Ventures or Associate Companies during the year

During the Financial year, no Company has become or ceased to be Company's Subsidiary, Joint Venture or Associate Company.

Change in the nature of business

There has been no change in the nature of business of the Company.

Material changes and commitments

There are no Material changes and commitments affecting the financial position of the Company which occurred between the financial year ended March 31,2021 to which the financial statements relates and the date of signing of this Report.

Details of Significant and Material orders passed by the regulators or courts or tribunals

There are no significant and material orders passed by the Regulators or Courts or Tribunals which would impact the going concern status of the company.

Human Resources

The Industrial relations of the Company continued to be cordial and harmonious during the year under review.

Policy on Sexual Harassment

The Company has adopted policy on Prevention of Sexual Harassment of Women at Workplace in accordance with The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Compliance with Secretarial standards

The company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India.

Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

In accordance with the requirements of Section 134 of the Companies Act, 2013,statement showing the particulars relating to conservation of energy, technology absorption, foreign exchange earnings and out go is annexed to this Board's Report as Annexure-6.

Extracts of Annual Return

Pursuant to Section 92 and Section 134 of the Companies Act, 2013, as amended from time to time, the Annual Return as on March 31, 2021 in form MGT-7 is available on the website of the Company at www.astramwp.com.

Risk Management:

Pursuant to Regulation 21 of Listing Regulations, the Board of Directors of the Company has constituted a Risk Management Committee to frame, implement and monitor the risk management plan for the Company. The Committee comprises one Independent Director and two Executive Directors.

The scope of Risk Management Committee includes monitoring and reviewing the risk management plan and ensuring its effectiveness. The major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuous basis. For details, please refer to the Management Discussion and Analysis report which forms part of this report.

Business Responsibility Report

In accordance with regulation 34(2(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, the 'Business Responsibility Report' (BRR), is forming part of this report as Annexure- 7.

Further, the Business Responsibility Report is placed on the Website of the Company at www.astramwp.com.

Acknowledgments:

Your Directors express their gratitude to all investors, customers, vendors, banks and regulatory and the State and the Central governmental authorities /departments for their continued support. The Directors also wish to thank the employees at all levels for their contribution, support and dedicated services throughout the year.

For and on behalf of the Board of Directors

S. Gurunatha Reddy M.V. Reddy DIN: 00003828 DIN: 00421401

Managing Director Joint Managing Director

ANNEXURE - 1 TO THE DIRECTORS REPORT

FORM NO AOC-1

(Pursuant to first proviso to Sub-Section (3) of Section 129 read with rule 5 of Companies (Accounts) Rules, 2014)

statement containing salient features of the financial statement of Subsidiaries/Associate Companies/Joint Ventures

Part-A-Subsidiaries (Amount in Rs.)

Extent % of Share Hodling	99.9989%	100%	99.9%
Comprehensive Income Total	6,94,40,914	50,85,864	(62,897)
Comprehensive Income Other	1,37,777	(5,96,296)	-
Proposed Dividend	-	-	-
(Loss) after Taxation Profit/	2,53,37,729 6,93,03,137	56,82,160	(62,897)
Provision Taxation for		-	-
Profit/(Loss) Taxation before	9,46,40,866	56,82,160	(62,897)
Turnover	2,12,49,17,681	4,29,66,841	-
Liabilities Investments	0	0	0
Total			2,25,982
Assets Total	4,97,60,000 8,97,12,607 59,12,34,997 59,12,34,997	USD 73.2035 5,99,11,648 (2,65,90,147) 4,93,06,145 4,93,06,145	2,25,982
Reserves Surplus &			1,15,982
Capital Share			1,00,000
Currency and year in case subsidiaries date of the rate as on Reporting Exchange of foreign Financial relevant the last	NA		NA
concerened, company's subsidiary if different Reporting reporting from the holding period for the period	NA	NA	NA
since when subsidiary The date acquired was	03.09.2013	08.04.2015	09.07.2016
Name of the Subsidiary Company	Electronics Pvt. Bhavyabhanu M/s. Ltd.	Semiconductors M/s. Aelius Pte.Ltd.	M/s. Astra Foundation
S. No.	1	2	3

Notes: The Following Information shall be furnished at the end of the statement.

23

1. Names of Subsidiaries which are yet to commence operations:

S. No	Name of the Company	Address
	NIL
2. Na	mes of Subsidiaries or joint ventures which have been liquidated or sold during the year:
S. No	Name of the Company	Address
	NIL

Part - B Associates and Joint Ventures Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Venture

Name of Associate/Joint Ventures	M/s. Astra Rafael Comsys Pvt. Ltd.
1. Latest audited Balance Sheet Date	31.03.2021
2.Date on which the Joint Venture was associated or acquired	18.06.2018
3. Shares of Joint Venture held by the company on the year end:
No. of Shares	2,00,00,000
Amount of Investment in Joint Venture	20,00,00,000
Extent of Holding (in percentage)	50%
4. Description of how there is significant influence	Since the investment is 50% in Joint Venture Company, there is a significant influence
5. Reason why the Joint Venture is not consolidated	Consolidated
6. Networth atttributable to shareholding as per latest audited Balance Sheet	Rs. 15,55,94,958
7. Profit or (Loss )of the year	Rs.(5,68,31,778)
i. Considered in Consolidation	Rs.(2,84,15,889)
ii. Not Considered in Consolidation	Rs.(2,84,15,889)

1. Names of Associates or Joint Ventures which are yet to commence operations:

S. No	Name of the Company	Address
1	NIL

1. Names of Associates or Joint Ventures which have been liquidated or sold during the year:

S. No	Name of the Company	Address
1	NIL

For and on behalf of the Board of Directors

Date: July 21, 2021

S. Gurunatha Reddy M.V. Reddy Place: Hyderabad DIN: 00003828 DIN: 00421401

Managing Director Joint Managing Director

Annexure- 2 TO THE DIRECTORS' REPORT

Form No. AOC-2

(Pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in Sub-Section(1) of Section 188 of the Companies Act, 2013 including certain arms` length transactions under third proviso thereto.

• 1. There are no contracts/arrangements entered into by the company with related parties referred to in Sub-Section (1) of Section188 of the Companies Act, 2013 which are not at arms` length basis.
• 1. Contracts/arrangements entered into by the Company with related parties referred to in Sub-Section (1) of Section 188 of the Companies Act, 2013 which are at arms` length basis:

S. No	Name(s) of the related party and nature of relationship	Nature of contracts/ arrangements/ transactions	Duration of the contracts/ arrangement/ transactions	Salient terms of the contracts or arrangements or transactions including the value, if any:	Date(s) of approval by the Board, if any:	Amount paid as advances, if any:	Justification for entering into contracts
1	Bhavyabhanu Electronics Pvt Ltd (BEPL) (Wholly Owned Subsidiary)	Supply of Printed Circuit Boards, SMT services, equipment lease and other miscellaneous services	Based on purchase order terms	Rs.164.37 Cr	24th June, 2020	Rs.151.10 Cr	BEPL is specialized in PCB's which are required to honour export orders.
2	Aelius Semi conductors Pte Ltd (Wholly Owned Subsidiary)	Supply of MMIC related services and products	Contract specific	Rs.0.17 Cr	24th June, 2020	Nil	Aelius Semiconductors Pte Ltd is specialized in Semi-Conductor Devices and MMIC products are inputs for these semi-conductors
3	Astra Rafael Comsys Pvt Ltd (Joint Venture)	Supply of Digi Attenuators, Amplifiers, etc., which are used in the products of Tactical Radio communication systems, Electronic Warfare systems and Signal intelligence systems	Contract specific	Rs.1.07 Cr	24th June, 2020	Nil	Astra Rafael Comsys Pvt Ltd is specialized in: 1.Tactical Radio communication systems 2.Electronic Warfare systems 3.Signal intelligence systems

For and on behalf of the Board of Directors

S. Gurunatha Reddy M.V. Reddy Place: Hyderabad DIN: 00003828 DIN: 00421401

Managing Director Joint Managing Director

Date: July 21, 2021

Annexure – 3 TO THE DIRECTORS' REPORT

Annual Report on CSR Activities for FY 2020-2021

1. Brief outline of the Corporate Social Responsibility (CSR) Policy

The Company's CSR policy is in alignment with the guidelines provided by the Ministry of Corporate Affairs (MCA). It provides for carrying out CSR activities in the area of education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently abled persons and livelihood enhancement projects and providing health care, setting up of homes for orphans.

Weblink of CSR Policy:

The CSR Policy of the Company can be accessed at www.astramwp.com.

2. Composition of CSR Committee:

The members of the CSR committee as on March 31, 2021 are as under:

S. No.	Name of the Director	Designation/Nature of Directorship	Number of meetings of CSR Committee held during the year	Number of meetings of CSR Committee attended during the year
1	Mr. S. Gurunatha Reddy	Chairman of the Committee (Managing Director)	1	1
2	Mr. M. V.Reddy	Member (Joint Manag ing Director)	1	1
3	Dr. Avinash Chander	Member (Chairman of Board)	1	1

3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed on the website of the company

Ans: www.astramwp.com.

4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable

Ans: N.A.

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any:

S.No.	Financial Year	Amount Available for set-off from preceding Financial years(Rs in Lakhs)	Amount required to be setoff for the financial year, if any(Rs in Lakhs)
	Total	Nil	Nil

• 6. Average net profit of the company as per section 135(5): Rs.53,25,00,047/-
• 7. a. Two percent of average net profit of the company as per section 135(5): Rs.1,06,50,001/
• b. Surplus arising out of the CSR projects or programmes or activities of the previous financial year: NIL
• c. Amount required to be set off for the financial year, if any: NIL
• d. Total CSR obligation for the financial year (7a+7b+7c): Rs.1,06,50,001/-
• 8. CSR amount spent or unspent for the financial year:

		Amount Unspent (in Rs.)
Total Amount Spent for the Financial year (Rs. In Lacs)	Total Amount transferred to Unspent CSR Account as per section 135(6) Amount Date of transfer	Amount transferred to any fund specified under Schedule VII as per second proviso to section 135(5) Name of the Fund Amount Date of transfer
106.51	NIL	NIL

8.2 Details of CSR amount spent against ongoing projects for the financial year:

1	2	3	4	5	6	7	8	9	10	11
Sr. No.	Name of the Project	Item list of in	from the activities Schedule VII of the	Local Area (Yes/No)	Location of the Project	Project Duration	Amount allocated for the project (in Rs. Lakhs)	Amount spent in the current financial year	Amount transferred to Unspent CSR Account for the project as per Section 135(6) (in	Mode of implementation Direct (Yes/No)	Mode of Implementation Through Implementing Agency
		Act		State / District				Rs.)		Name / CSR Registration No.
1	Construction of Building for Promoting Healthcare	(i)	Yes	Telangana/ Hyderabad	Year	28.00	28.00	NIL	No	NA
2	Construction of Building for Promoting Healthcare	(i)	No	New Delhi	Year	25.00	25.00	NIL	No	NA
3	Promoting Education Construction of school Building	(ii)	Yes	Telangana/ Hyderabad/ Ranga Reddy	Year	33.31	33.31	NIL	No	NA
4	Promoting Research & Development in Premier Educational Institutes	(ii)	No	IIT Roorkee	Year	20.20	20.20	NIL	No	NA
TOTAL						106.51	106.51

8.3 Details of CSR amount spent against other than ongoing projects for the financial year:

1	2	3	4	5	6	7	8
S.No.	Name of the Project	Item from the list of activities in Schedule VII to the Act	Local Area (Yes/No)	Location of the Project	Amount spent for the project (in Rs)	Mode of implementation Direct(Yes/No)	Mode of implementation Through implementing Agency
				State/ District			Name/CSR Registration No.
				NIL

27

8.4. Amount spent in Administrative Overheads: NA

8.5. Amount spent on Impact Assessment, if applicable: NA

8.6. Total amount spent for the Financial Year (8b+8c+8d+8e): Rs.106.51 Lakhs

8.7. Excess amount for set off, if any: (In Rs.Lakhs)

S.No.	Particulars	Amount
1	Two Percent of average net profit of the company as per section 135(5)	106.50
2	Total amount spent for the Financial Year	106.51
3	Excess amount spent for the financial year [(ii)-(i)]	0.01
4	Surplus arising out of the CSR projects or programmes or activities of the previous financial year, if any	Nil
5	Amount available for set off in succeeding financial years [(iii)-(iv)]	0.01

9.1 Details of Unspent CSR amount for the preceding three financial years:Nil

9.2 Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):

1	2	3	4	5	6	7	8	9
Sr.No.	Project ID	Name of the Project	Financial Year in which the project was commenced	Project duration	Total amount allocated for them project (in Rs)	Amount spent on the project in the reporting Financial Year (in Rs.)	Cumulative amount spent at the end of reporting Financial Year (in Rs.)	Status of the project-Completed/ Ongoing
NIL

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year (asset-wise details):

• (a) Date of creation or acquisition of the capital asset(s) NA
• (b) Amount of CSR spent for creation or acquisition of capital asset NIL
• (c ) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc. - NA
• (d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset). - NA

11. Specify the reason(s), if the company has failed to spent two per cent of the average net profit as per section 135(5):Not Applicable.

For and on behalf of the Board of Directors

S. Gurunatha Reddy M.V. Reddy Chairman of CSR Committee Member of CSR Committee Place: Hyderabad DIN: 00003828 DIN: 00421401

Date: July 21, 2021

Annexure – 4A TO THE DIRECTORS REPORT Secretarial Audit Report

For the Financial Year Ended 31st March 2021

[Pursuant to Section 204(1) of the Companies Act, 2013 read with Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

To

The Members

M/s. Astra Microwave Products Limited

Address: Astra Towers, Survey No: 12 (Part) Opp. CII Green Building, Hitech City, Kondapur Hyderabad,Telangana.

We have conducted the Secretarial Audit on the compliance of applicable statutory provisions and the adherence to good corporate practices by M/s. Astra Microwave Products Limited (hereinafter called the Company). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit,We hereby report that in our opinion, the Company has, during the audit period from 01.04.2020 to 31.03.2021,complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

• 1. We have examined the books, papers, minute books, forms and returns filed and other records maintained by M/s. Astra Microwave Products Limited ("The Company") for the period from 01.04.2020 to 31.03.2021according to the provisions of:
• i. The Companies Act, 2013 (the Act) and the Rules made thereunder;
• ii. The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the Rules made thereunder;
• iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
• iv. Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder;

• v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ('SEBI Act') :

  • a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
  • b. SEBI (Prohibition of Insider Trading) Regulations, 2015
  • c. The Securities and Exchange Board of India(Issue of capital and Disclosure Requirements) Regulations, 2018 (Not Applicable to the company during audit period)
  • d. The Securities and Exchange Board of India (Share based Employee Benefits) Regulations, 2014 (Not applicable to the Company during the audit period)
  • e. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (Not applicable to the Company during the audit period).
  • f. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client.
  • g. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (Not applicable to the Company during the audit period)
  • h. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018(Not applicable to the Company during the audit period).
  • i. The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

• vi. The Payment of Wages Act, 1936

• vii. The Minimum Wages Act, 1948
• viii. Employees Provident Fund And Misc. Provisions Act, 1952
• ix. Employees State Insurance Act,1948
• x. Payment of Gratuity Act,1972
• xi. Workmen's Compensation Act,1923
• xii. Contract Labour (Regulation & Abolition ) Act, 1970
• xiii. Employment Exchange (Compulsory Notification of Vacancies) Act, 1959
• xiv. Income Tax Act, 1961
• xv. GST Acts and Rules made thereunder
• xvi. The Insurance Act, 1938, as amended
• xvii. The Factories Act, 1948 and Telangana Factories Rules, 1980
• xviii. Water (Prevention & Control of Pollution) Act, 1974 and rules there under
• xix. Air (Prevention & Control of Pollution) Act, 1981 and rules there under
• xx. The Environment (Protection) Act, 1986
• xxi. Hazardous and Other Wastes (Management & Trans boundary Movement) Rules, 2016
• xxii. Customs Act, 1962
• xxiii. Newspaper Publications
• xxiv. The Boilers Act, 1923 and Indian Boilers Regulations, 1950
• xxv. The Petroleum Act, 1934 and Petroleum Rules, 2002
• xxvi. The Payment of Bonus(Amendment) Act, 2015

xxvii. The Apprentices Act, 1961

xxviii. Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

• 1. I have also examined compliance with the applicable clauses of
• i) Secretarial Standards issued by The Institute of Company Secretaries of India.
• ii) The Listing Agreements entered into by the Company with the BSE Limited and National Stock Exchange of India Limited.
• 1. We further report that the Company has, in our opinion, complied with the provisions of the Companies Act, 2013 and the Rules made under that Act as notified by Ministry of Corporate Affairs and the Memorandum and Articles of Association of the Company, with regard to:
• Closure of the Register of Members.
• Forms, returns, documents and resolutions required to be filed with the Registrar of Companies and the Central Government;
• Service of documents by the Company on its Members, Auditors and the Registrar of Companies;
• The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act
• Minutes of proceedings of General Meetings and of the Board and its Committee meetings;
• Approvals of the Members, the Board of Directors, the Committees of Directors and the government authorities, wherever required;
• Constitution of the Board of Directors / Committee(s) of Directors, appointment, retirement and reappointment of Directors including the Managing Director and Whole-time Directors;

• Payment of remuneration to Directors including the Managing Director and Whole-time Directors,

• Appointment and remuneration of Statutory Auditor, Cost Auditor and Secretarial Auditor.

• Borrowings and registration, modification and satisfaction of charges wherever applicable;
• Investment of the Company's funds including investments and loans to others;
• Format of Balance Sheet and statement of profit and loss is as per Schedule III of the Companies Act, 2013 read with Companies Indian Accounting Standards (Ind AS) Rules, 2015;
• Report of the Board of Directors;
• The Directors have complied with the disclosure requirements in respect of their eligibility of appointment, their being independent and compliance with the Code of Business Conduct & Ethics for Directors and Senior Management;
• A separate meeting of Independent Directors was held during the year as per the provisions of Companies Act, 2013;
• Maintenance of various statutory registers and documents and making necessary entries therein has been done as per Companies Act, 2013;
• Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting;
• Declaration and payment of dividends;
• Transfer of certain amounts as required under the Act to the Investor Education and Protection Fund and uploading of details of unpaid and unclaimed dividends on the websites of the Company and the Ministry of Corporate Affairs;
• 1. We further report that there was no prosecution initiated and no fines or penalties were imposed during the period under review under the Companies Act, SEBI Act, SCRA, Depositories Act, Listing Agreement and Rules, Regulations and Guidelines framed thereunder against the Company or its Directors and Officers.
• 1. We Further Report That:
• The Company is paying wages to all employees as per the provisions of Minimum Wages Act, 1948 and The Payment of Wages Act, 1936
• The company is regular in payment of gratuity as per the rules of the Payment of Gratuity Act,1972 and has provided 100% provision in the books of accounts.
• The Company has filed return as per the Factories Act, 1948.
• The Company is regular in publishing Audited and Unaudited Financial Results.
• The Company has renewed the Insurance Policy under Employees State Insurance Act,1948.
• The Company is paying bonus to all employees as per the provisions of the Payment of Bonus (Amendment) Act, 2015.
• The Company is regular in paying all statutory dues like PF, ESI, Goods and Services Tax, Income Tax etc.,
• 1. We further report that based on the information received and records maintained there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
• 1. We further Report that during the audit Period the Company has
• No Public /Right/Preferential Issue of Shares/Debentures/Sweat Equity etc.,
• No Redemption/Buy-back of Securities;

• No major Decision taken by the members in pursuance of Section 180 of the companies Act, 2013;

• No Merger/Amalgamation/Reconstruction, etc.,

• No Foreign Technical Collaborations;

Important Note: Due to Covid-19 pandemic, Secretarial Audit for this Financial Year ended 2021was conducted through exchange of e-mails and using technology on sample basis. Since, visiting of company's Factories was not possible due to the current pandemic situation, I have relied on the Certificate of compliance from the respective plant heads of the company.

For L.D. Reddy & Co., Company Secretaries

L. Dhanamjaya Reddy

(Proprietor) M. No. 13104 Date: 31.05.2021 CP No.3752 Place: Hyderabad UDIN No: A013104C000396454

ANNEXURE

To The Members M/s.Astra Microwave Products Limited Address:Astra Towers, Survey No: 12 (Part) Opp. CII Green Building, Hitech City, Kondapur Hyderabad,Telangana.

Our report of even date is to be read along with this letter.

• 1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records on our audit.
• 1. We have followed the audit practices and processes as appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
• 1. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
• 1. Where ever required, we have obtained the information and relevant documents including representation given by the management about the compliance of laws, rules and regulations and happening of events etc.
• 1. The compliances of the provisions of corporate and other applicable laws. Rules, regulations, standards are the responsibility of management. Our examination was limited to the verification of procedures on test basis.
• 1. The secretarial Audit report is neither an assurance as to the future viability of the company nor of the company efficiency of effectiveness with which the management has conducted the affairs of the company.

33

For L.D.Reddy& Co., Company Secretaries

L. Dhanamjaya Reddy (Proprietor) M. No. 13104 CP No.3752 Date: 31.05.2021 UDIN No: A013104C000396454

Place: Hyderabad

Annexure – 4B TO THE DIRECTORS REPORT

Secretarial Audit Report

For thePeriod from 01.04.2020 to 31.03.2021

[Pursuant to Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements Regulations,

2015 as amended]

To The Board of Directors, M/s. Bhavyabhanu Electronics Private Limited West Block, G.Floor, Plot No.18 to 21, Imarath Kancha, Hardware Park, Raviryala (V), Maheshwaram Mandal, Ranga Reddy- 500005

We have conducted the Secretarial Audit on the compliance of applicable statutory provisions and the adherence to good corporate practices by M/s. Bhavyabhanu Electronics Private Limited(hereinafter called "the Company"). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.

Based on our verification of the books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit,we hereby report that in my opinion, the Company has, during the audit period from 01.04.2020 to 31.03.2021,complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

• 1. We have examined the books, papers, minute books, forms and returns filed and other records maintained by Bhavyabhanu Electronics Private Limited("The Company") for the Period from 01.04.2020 to 31.03.2021according to the provisions of:
• i. The Companies Act, 2013 (the Act) and the Rules made thereunder;
• ii. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
• iii. Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder;
• iv. The Payment of Wages Act, 1936
• v. Minimum Wages Act, 1948
• vi. Employees Provident Fund And Misc. Provisions Act, 1952
• vii. Employees State Insurance Act,1948
• viii. Payment of Gratuity Act,1972
• ix. Employee's Compensation Act,1923
• x. Contract Labor (Regulation & Abolition ) Act, 1970
• xi. The Insurance Act, 1938 as amended.
  • xii. Employment Exchange (Compulsory Notification of Vacancies) Act, 1959
  • xiii. Income Tax Act, 1961
• xiv. GST Acts and Rules made thereunder
  • xv. The Factories Act, 1948 and Andhra Pradesh Factories Rules, 1980
  • xvi. Water (Prevention & Control of Pollution) Act 1974 and rules there under
  • xvii. Air (Prevention & Control of Pollution) Act 1981 and rules there under
  • xviii. The Environment (Protection) Act, 1986
  • xix. Hazardous and Other Wastes (Management & Trans boundary Movement) Rules, 2016
  • xx. Customs Act, 1962
  • xxi. The Boilers Act, 1923 and Indian Boilers Regulations 1950
  • xxii. The Petroleum Act, 1934 and Petroleum Rules, 2002

• xxiii. Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
• xxiv. Since, the Company being Private limited company the following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 ('SEBI Act') shall not apply:
• a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
• b. SEBI (Prohibition of Insider Trading) Regulations, 2015.
• c. The Securities and Exchange Board of India(Issue of capital and Disclosure Requirements) Regulations, 2009;
• d. The Securities and Exchange Board of India (Share based Employee Benefits) Regulations, 2014.
• e. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008.
• f. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client.
• g. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009.
• h. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018.
• i. The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• j. The Listing Agreements entered into by the Company with the BSE Limited and National Stock Exchange of India Limited.
• 1. We further report that the Company has, in my opinion, complied with the provisions of the Companies Act, 2013 and the Rules made under that Act as notified by Ministry of Corporate Affairs and the Memorandum and Articles of Association of the Company, with regard to:
• Forms, returns, documents and resolutions required to be filed with the Registrar of Companies and the Central Government;
• Service of documents by the Company on its Members, Auditors and the Registrar of Companies;
• Constitution of the Board of Directors / Committee(s) of Directors, appointment, retirement and reappointment of Directors including the Managing Director and Whole-time Directors;
• Appointment and remuneration of Statutory Auditor and Secretarial Auditor.
• Borrowings and registration, modification and satisfaction of charges wherever applicable;
• Format of Balance Sheet and statement of profit and loss is as per Schedule III of the Companies Act, 2013.
• Report of the Board of Directors;
• The Directors have complied with the disclosure requirements in respect of their eligibility of appointment;
• 1. We further report that there was no prosecution initiated and no fines or penalties were imposed during the period under review under the Companies Act, Depositories Act, and Rules, Regulations and Guidelines framed there under on the Company or on its Directors and Officers
• 1. We Further Report That:
• The company is regular in payment of gratuity as per the rules of the Payment of Gratuity Act,1972 and has provided 100% provision in the books of accounts.
• The Company has renewed the Insurance Policy under Employees State Insurance Act,1948
• 1. We further report that based on the information received and records maintained there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
• 1. We further Report that during the audit period the Company has:
• No Public /Right/Preferential Issue of Shares/Debentures/Sweat Equity etc.,

• No Redemption/Buy-back of Securities;

• No major Decision taken by the members in pursuance of Section 180 of the companies Act, 2013;

• No Merger/Amalgamation/Reconstruction, etc.,
• No Foreign Technical Collaborations;

Important Note:

Due to Covid-19 pandemic, Secretarial Audit for this Financial Year ended 2021 were conducted through exchange of e-mails, visited Head office Hyderabad and using technology on sample basis. Since, visiting of company's Factories was not possible due to the current pandemic situation I have relied on the Certificate of compliance from the respective plant heads of the company.

For L.D.Reddy& Co., Company Secretaries

L. Dhanamjaya Reddy (Proprietor) M. No. 13104 Date: 31.05.2021 CP No.3752 Place: Hyderabad UDIN No: A013104C000396454

ANNEXURE

To The Board of Directors, M/s. Bhavyabhanu Electronics Private Limited West Block, G.Floor, Plot No.18 to 21, Imarath Kancha, Hardware Park, Raviryala (V), Maheshwaram Mandal, Ranga Reddy- 500005

Our report of even date is to be read along with this letter.

• 1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records on our audit.
• 1. We have followed the audit practices and processes as appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
• 1. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
• 1. Where ever required, we have obtained the information and relevant documents including representation given by the management about the compliance of laws, rules and regulations and happening of events etc.
• 1. The compliances of the provisions of corporate and other applicable laws. Rules, regulations, standards are the responsibility of management. Our examination was limited to the verification of procedures on test basis.
• 1. The secretarial Audit report is neither an assurance as to the future viability of the company nor of the company efficiency of effectiveness with which the management has conducted the affairs of the company.

For L.D.Reddy& Co., Company Secretaries

L. Dhanamjaya Reddy

(Proprietor) M. No. 13104 Date: 31.05.2021 CP No.3752 Place: Hyderabad UDIN No: A013104C000396454

Annexure – 4C TO THE DIRECTORS REPORT

Secretarial compliance report of

M/s. Astra Microwave Products Limited for the year ended 31st March 2021

• I, L. Dhanamjaya Reddy, proprietor of L.D. Reddy & Co., Company Secretaries have examined:
• a. all the documents and records made available to us and explanation provided by M/s. Astra Microwave Products Limited ("the listed entity"),
• b. the filings/ submissions made by the listed entity to the stock exchanges,
• c. website of the listed entity,
• d. other document/filing, as may be relevant, which has been relied upon to make this certification,

for the year ended 31st March 2021 ("Review Period") in respect of compliance with the provisions of :

• a. the Securities and Exchange Board of India Act, 1992 ("SEBI Act") and the Regulations, circulars, guidelines issued thereunder; and
• b. the Securities Contracts (Regulation) Act, 1956 ("SCRA"), rules made thereunder and the Regulations, circulars, guidelines issued thereunder by the Securities and Exchange Board of India ("SEBI");

The specific Regulations, whose provisions and the circulars/guidelines issued thereunder, have been examined, include:-

• a. Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
• b. Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
• c. Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
• d. Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018;
• e. Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014;
• f. Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
• g. Securities and Exchange Board of India (Issue and Listing of Non-Convertible and Redeemable Preference Shares) Regulations,2013;
• h. Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
• i. other regulations as applicable and circulars/ guidelines issued thereunder;
• and based on the above examination, I/We hereby report that, during the Review Period:
• a. The listed entity has complied with the provisions of the above Regulations and circulars/ guidelines issued thereunder, except in respect of matters specified below:-

Sr. No	Compliance Requirement (Regulations/ circulars / guidelines including specific clause)	Deviations	Observations/ Remarks of the Practicing Company Secretary
Nil	Nil	Nil	Nil

• b. The listed entity has maintained proper records under the provisions of the above Regulations and circulars/ guidelines issued there under in so far as it appears from my/our examination of those records.
• c. The following are the details of actions taken against the listed entity/ its promoters/ directors/ material subsidiaries either by SEBI or by Stock Exchanges (including under the Standard Operating Procedures issued by SEBI through various circulars) under the aforesaid Acts/ Regulations and circulars/ guidelines issued there under:

Sr. No	Action taken by	Details of violation	Details of action taken E.g. Fines warning letter, debarment, etc.	Observations/ Remarks of the Practicing Company Secretary, if any
Nil	Nil	Nil	Nil	Nil

d. The listed entity has taken the following actions to comply with the observations made in previous reports:

Sr. No	Observations of the	Observations made	Actions	Comments of the Practicing
	Practicing Company	in the secretarial	taken by the	Company Secretary on the
	Secretary in the previous	compliance report	listed entity,	actions taken by
	reports	for the year ended	if any	the listed entity
Nil	Nil	Nil	Nil	Nil

For L.D.Reddy & Co

Company Secretaries

L. Dhanamjaya Reddy

(Proprietor) CP. No.: 3752 M. No.:13104 Place: Hyderabad UDIN: A013104C000148624

Date: 21.04.2021

Annexure – 5 (i) TO THE DIRECTORS' REPORT Statement of particulars as per Rule 5 of Companies

(Appointment and Remuneration of Managerial Personnel) Rules, 2014

(i) The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year:

S. No.	Name of the Director	Ratio of the remuneration to the median remuneration of the employees
1	Dr. Avinash Chander (Chairman & Independent Director)	1.77:1
2	Mr. S.Gurunatha Reddy (Managing Director)	24.05:1
3	Mr. M.V. Reddy (Joint Managing Director)	24.84:1
4	Mr.V.Venkata Rama Sastry (Independent Director) 1	1.72:1
5	Mr.B.Lakshmi Narayana Raju (Independent Director) 2	1.72:1
6	Mr. Sunil Kumar Sharma (Independent Director)	1.77:1
7	Ms. Kiran Dhingra (Independent Director)	1.77:1
8	Mr. Atim Kabra (Non-Executive Director)	1.77:1

(ii) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager in the financial year

S. No.	Name of the Director	Percentage Increase in Remuneration
1	Dr. Avinash Chander (Chairman & Independent Director)	-20.72
2	Mr. S.Gurunatha Reddy (Managing Director)	-27.85
3	Mr. M.V. Reddy (Joint Managing Director)	-22.78
4	Mr.V.Venkata Rama Sastry (Independent Director) 1	-26.48
5	Mr.B.Lakshmi Narayana Raju (Independent Director) 2	-23.05
6	Mr. Sunil Kumar Sharma (Independent Director)	-24.25
7	Ms. Kiran Dhingra (Independent Director)	-16.84
8	Mr. Atim Kabra (Non-Executive Director)	-14.76
9	Mr. T. Anjaneyulu (Company Secretary)	6.70
10	Mr. B.V.S. Narasinga Rao (Chief Financial Officer)	3.54

Notes:

• 1. Mr.V.Venkata Rama Sastry ceased as Director of the Company w.e.f. January 28, 2021 due to retirement.
• 1. Mr.B.Lakshmi Narayana Raju ceased as Director of the Company w.e.f. January 28, 2021 due to retirement.
• (iii) The percentage increase in the median remuneration of employees in the financial year.8%

(iv) The number of permanent employees on the rolls of Company.

There are 980 permanent employees on the rolls of the Company.

(v) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration.

There are two Whole Time Directors in the company. There was a decrease in Remuneration paid to the Whole Time Directors during the Financial Year ended 31st March, 2021.

(vi) The Remuneration paid to Key Managerial Personnel is as per the Remuneration policy of the Company.

For and on behalf of the Board of Directors

DIN: 00003828 DIN: 00421401 Place: Hyderabad Date: July 21, 2021

S. Gurunatha Reddy M.V. Reddy

Managing Director Joint Managing Director

ANNEXURE - 5 (ii) TO THE DIRECTORS REPORT

Statement of particulars of Employees pursuant of provisions of Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

manager of the relative of any Whether is a director or company
within the meaning equity shares held The percentage of by the employee in the company of clause (iii) of sub-rule (2) of Rule 5
Particulars of last employment
Age
Commencement in employment Date of
experience of the Qualification and employee	NIL
Employment Nature of
Remuneration Received (Rs.)
Name & Designation
S. No.

Note: There are no employees who draw remuneration in excess of the limits prescribed in Rule 5(2) (i), (ii) & (iii) of the Companies (Appointment and Remuneration) Rules, 2014.

For and on behalf of the Board of Directors

Place: Hyderabad Date: July 21, 2021

S. Gurunatha Reddy M.V. Reddy Managing Director Joint Managing Director DIN: 00003828 DIN: 00421401

Annexure – 5 (iii) TO THE DIRECTORS' REPORT

STATEMENT OF PARTICULARS OF EMPLOYEES PURSUANT TO SECTION 197 OF THE COMPANIES ACT, 2013 READ WITH RULE 5(2) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014

mployees for the financial year ended March 31, 2021
List of Top 10 salaried e

No. S.	Name & Designation	the period from received during April 1, 2020to March 31, 2021 Remuneration	Employment Nature of	of the employee And experience Qualifications	ment ment mence mploy Date of m of e co	Age	employment held before joining the Company The last	Whether is director or a relative Company manager (A of any of the	mount in Rupees) Company within of equity shares employee in the The percentage the meaning of clause (iii) of held by the sub-rule (2) of Rule 5
1	Mr. S. Gurunatha Reddy Managing Director	88,26,053	Regular	BSc., F.C.A	25-04-1993	62	ERA-ACS Group mpanies Co	No	NA
2	Joint Managing Director Mr. M.V.Reddy	91,28,503	Regular	(Electronics), B.E MBA	23-02-1998	54	mited Arm Li	No	NA
3	Vice President – Technical M.Prakasam L.G.	47,53,471	Regular	M.Tech, MBA	18-09-2020	60	LRDE	No	NA
4	war Rao Vice President C. Nagesh	40,58,018	Regular	M.E	12-09-2012	69	BEL	No	NA
5	Sr. General Manager G. R. Shinde	39,21,616	Regular	B.E	01-12-2007	57	AvantelSoftech Ltd.	No	NA
6	Sr. General Manager Mandrupkar Pravin	36,95,720	Regular	B.E	04-08-2001	49	Akon Electronics India (P) Ltd.	No	NA
7	General Manager P. Srinivasulu	36,70,470	Regular	Ph.D	07-12-2015	54	NARL	No	NA
8	Sr. General Manager V.Sudhakar	34,56,687	Regular	M.Tech	05-10-2015	57	HAL	No	NA
9	Sr. General Manager M.Chandrakanth B.	32,01,311	Regular	B.E, MDBA	11-05-2020	47	L&T	No	NA
10	General Manager mhan R.Narasi	30,17,119	Regular	MBA AMIE &	17-06-2008	53	ment Pvt max Test Equip Ltd Q	No	NA

S. Gurunatha Reddy M.V. Reddy Managing Director Joint Managing Director DIN: 00003828 DIN: 00421401

For and on behalf of the Board of Directors

Place: Hyderabad Date: July 21, 2021

Annexure – 6 TO THE DIRECTORS REPORT

The conservation of energy, technology absorption, foreign exchange earnings and outgo pursuant to the provisions of section 134(3)(m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014:

1. Details of Conservation of Energy

The operation of the company is not energy intensive. However, adequate measures have been taken to conserve and reduce the energy consumption.

2. Research & Development (R&D)

The Company's Research and Development center is recognized by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India in the year 1994.

During the year, the R&D wing of the Company has developed innovative designs useful for manufacture of cost effective products. The research and development activities of the Company are customer need based and hence it is a continuous process. Because of its in-house R&D efforts, the Company was able to deliver the solutions to the customers in cost effective manner.

The Company has spent the following amounts for R&D during the year.

		(Amount in Rupees)
	As of March 31
Particulars	2021	2020
A. Capital	0	0
B. Recurring	22,49,68,756	22,24,59,655
Total	22,49,68,756	22,24,59,655
Total R&D expenditure as percentage of total turnover	3.68%	4.76%

3. Technology Absorption, Adoption and Innovation

The Company works on in-house technology.

4. Particulars of foreign exchange earnings and outgo:

Foreign Exchange outgo and earnings (Amount in Rupees)

Particulars	2020-21	2019-20
Foreign Exchange outgo	263,71,80,570	194,49,32,487
Foreign Exchange Earnings	358,69,68,022	201,21,51,397

For and on behalf of the Board of Directors

S. Gurunatha Reddy M.V. Reddy Date: July 21, 2021 DIN: 00003828 DIN: 00421401

Place: Hyderabad Managing Director Joint Managing Director

ANNEXURE - 7 TO THE DIRECTORS REPORT

BUSINESS RESPONSIBILITY REPORT

For the Financial Year 2020-21

[See Regulation 34(2)(f)]

SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

1	Corporate Identity Number (CIN) of the Company	L29309TG1991PLC013203
2	Name of the Company	Astra Microwave Products Limited
3	Registered address	Astra Towers, Survey No:12 (Part), Opp. CII Green Building, Hitech City, Kondapur, Hyderabad, Telangana-500 084, India.
4	Website	www.astramwp.com
5	E-mail id	info@astramwp.com
6	Financial Year reported	2020 -21
7	Sector(s) that the Company is engaged in (industrial activity code-wise)	NIC Code Description 3652 RF and Microwave
8	List three key products/services that the Company manufactures/provides (as in balance sheet):	1) Radar, Sub-systems and Systems 2) Space On-board and ground Sub-systems 3) Missile Electronics and Sub-systems

9. Total number of locations where business activity is undertaken by the Company

• (a) Number of International Locations: Nil
• (b) Number of National Locations: Eight Locations:

Unit 1 :

Plot No 12, ANRICH Industrial Estate, Bollaram, Medak District, Telangana – 502325

Unit 2 :

Plot No 56A, 56B, 57A, ANRICH Industrial Estate, Bollaram, Medak District, Telangana – 502325

Unit 3 :

Survey No.1\1, Imarath Kancha, Raviryala Village, Hardware Technology Park, Maheshwaram Mandal, Ranga Reddy, Telangana- 500 005.

Unit 4 :

Plot No.18,19,20, 21 Part, Hardware Technology Park, Imarath Kancha, Raviryala Village, Maheshwaram Mandal, Ranga Reddy, Telangana- 500 005.

EOU:

Plot Nos. 18,19,20, 21 Part, Hardware Technology Park, Survey No.1\1, Imarath Kancha, Raviryala Village, Maheshwaram Mandal, Ranga Reddy, Telangana- 500 005.

Ecity:

S.Y. No. 114 /1 Plot No. S-2/9 and 10, E-City, Raviryala, Srinagar V, Maheshwaram M, Ranga Reddy, Telangana, 501359.

43

Bengaluru Office:

Plot No. 51 P, Bengaluru Aerospace Park Industrial Area, Survey Nos. Parts of 36 to 40, JalaHobli, Yelahanka Taluk, Bengaluru North, Bengaluru Urban – 562 149, Karnataka.

Ahmedabad Office:

A102, Elanza Crest, Beside Sigma House, Sindhubhavan Road, Bodakdev, Ahmedabad- 380054, Gujarat. Regional/Marketing Offices at: Hyderabad.

10. Markets served by the Company –Local/ State/ National/ International:

Local State National International --------------------------------------------------------------------------- ----------------------------------------------------------------------------

SECTION B: FINANCIAL DETAILS OF THE COMPANY

• 1. Paid up Capital(Rs. INR) : 1732.23 lacs
• 1. Total Turnover(Rs. INR) : 60081.57 lacs
• 1. Total profit after taxes(Rs. INR) : 2393.19 lacs
• 1. Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax(%): 2% of the average net profit of the company made during the three immediately preceding Financial Years. The Company's total spending on CSR for the year ended March 31, 2021 was Rs.106.51Lakhs which is 2% of the PAT.

5. List of activities in which expenditure in 4 above has been incurred:-

Providing health care including preventive health care, Construction of school building and education to poor & orphan children and promoting Research & Development in Premier Educational Institutes.

SECTION C: OTHER DETAILS

• 1. Does the Company have any Subsidiary Company/ Companies? Yes, Astra has 3 Subsidiary Companies.
• 1. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the number of such subsidiary company(s) The parent company undertakes majority of the BR initiatives.
• 1. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than60%] No.

SECTION D: BR INFORMATION

• 1. Details of Director/Directors responsible for BR
• (a) Details of the Director / Director responsible for implementation of the BR policy/policies
• 1. DIN Number : 00003828
• 1. Name : S. Gurunatha Reddy
• 1. Designation : Managing Director
• 1. Tel. No. : 040-46618000
• 1. Email Id : secretarial@astramwp.com
• (b) Details of the B Rhead : same as above

S. No	Particulars	Details
1	DIN Number (if applicable)	00003828
2	Name	S. Gurunatha Reddy
3	Designation	Managing Director
4	Telephone number	040-46618000
5	e-mail id	secretarial@astramwp.com

2.Principle-wise (as per NVGs) BRPolicy/ policies

S. No.	Questions	Ethics P1	Product Life Cycle Sustainability P2	mployee well being E P3	ment Engage Stakeholders P4	man Rights Hu P5	ment Environ P6	Policy Advocacy P7	ment (CSR) munity Develop m Co P8	mer Relations Custo P9
1	Do you have a policy/ policies for					Yes
2	Has the policy being formulated in consultation with the relevant stakeholders?					Yes
3	Does the policy conform to any national / international standards? If yes, specify? (50 words)				Company Policies are in line with the best practices.
4	Has the policy being approved by the Board? Is yes, has it been signed by MD/ owner/ CEO/ appropriate Board Director?	Yes, the policies are approved by the Board and signed by the Managing Director.
5	Does the company have a specified committee of the Board/ Director/ Official to oversee the implementation of the policy?					Yes
6	Indicate the link for the policy to be viewed online?				Policies can be viewed on http:/www.astramwp.com
7	Has the policy been formally communicated to all relevant internal and external stakeholders?					Yes
8	Does the company have in-house structure to implement the policy/ policies.					Yes
9	Does the Company have a grievance redressal mechanism related to the policy/ policies to address stakeholders' grievances related to the policy/ policies?		all kinds of grievances		Yes, the company provides the redressal mechanism for
10	Has the company carried out independent audit/ evaluation of the working of this policy by an internal or external agency?	internally.			Maximum policies are evaluation by the internal audit team and some of the policies are assessment is done

(a) Details of compliance (Reply inY/ N)

(b) If answer to the question at serial number 1 against any principle, is 'No', please explain why: (Tick up to options)

S. No.	Questions	Ethics P1	Product Life Cycle Sustainability P2	mployee well being E P3	ment Engage Stakeholders P4	man Rights Hu P5	ment Environ P6	Policy Advocacy P7	ment (CSR) munity Develop m Co P8	mer Relations Custo P9
1	The company has not understood the	---	---	---	---	---	---	---	---	---
	Principles
2	The company is not at a stage where it finds itself in a position to formulate and implement the policies on specified principles	---	---	---	---	---	---	---	---	---
3	The company does not have financial or manpower resources available for the task	---	---	---	---	---	---	---	---	---
4	It is planned to be done within next 6 Months	---	---	---	---	---	---	---	---	---
5	It is planned to be done within the next 1 year	---	---	---	---	---	---	---	---	---
6	Any other reason (please specify)	---	---	---	---	---	---	---	---	---
3.	Governance related to BR (a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year Annually (b) Does the Company publish a BR or a Sustainability Report? What is the hyper link for viewing this report? How frequently it is published? Business Responsibility Report forms as part of the Company's Annual Report and can be viewed on the website of the Company, https://www.astramwp.com. SECTION E: PRINCIPLE-WISE PERFORMANCE
	Principle 1 - Ethics
1.	Does the policy relating to ethics, bribery and corruption cover only the company? Yes/ No. Does it extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs/Others?
	The Company is committed to build a strong ethical organization. As a result, the Company has adopted a Code of Conduct policy which is applicable to all designated employees of the Company including the board members. The policy lays emphasis on the honesty, integrity and ethical conduct of the employees and has been communicated to the employees, across all the locations.
2.	How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so.
	We did not receive any significant stakeholder complaints during the financial year

3. Governance related to BR

• (a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year Annually
• (b) Does the Company publish a BR or a Sustainability Report? What is the hyper link for viewing this report? How frequently it is published?

SECTION E: PRINCIPLE-WISE PERFORMANCE

Principle 1 - Ethics

Principle 2 - Product Life Cycle Sustainability

1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.

Not applicable

• 1. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product(optional):
• (a) Reduction during sourcing/production/ distribution achieved since the previous year throughout the value chain?

Not applicable

(b) Reduction during usage by consumers (energy, water) has been achieved since the previous year?

Not applicable

• 1. Does the company have procedures in place for sustainable sourcing (including transportation)?
• (a) If yes, what percentage of your inputs was sourced sustainably ? Also, provide details thereof, in about 50 words or so.

Not applicable

• 1. Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work?
• (a) If yes, what steps have been taken to improve their capacity and capability of local and small vendors? Yes, where ever possible.
• 1. Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.

The Company does not recycle its products as most of the products are used in strategic/national security applications. Products are not returned to the company once it is handed over to the customers.

Principle 3 - Employee well being

1. Please indicate the Total number of employees:

The company has 1141 employees as on 31.03.2021

1. Please indicate the Total number of employees hired on temporary/contractual/casual basis:

The company has 95 contractual employees as on 31.03.2021

1. Please indicate the Number of permanent women employees:

The company has 122 women employees as on 31.03.2021.

• 1. Please indicate the Number of permanent employees with disabilities: Nil
• 1. Do you have an employee association that is recognized by management: No
• 1. What percentage of your permanent employees is members of this recognized employee association: Nil
• 1. Please indicate the Number of complaints relating to child labor, forced labor, involuntary labor, sexual harassment in the last financial year and pending, as on the end of the financial year.

S. No	Category	No of complaints filed during the financial year	No of complaints pending as on end of the financial year
1	Child labour/forced labour/ involuntary labour	Nil	Nil
2	Sexual harassment	Nil	Nil
3	Discriminatory employment	Nil	Nil

1. What percentage of your under mentioned employees were given safety & skill up- gradation training in the last year?

S. No	Category	% Of persons trained on Safety Aspects	% Of persons trained on Skill up gradation
1	Permanent Employees	100%	100%
2	Permanent Women Employees	100%	100%
3	Casual/Temporary/Contractual Employees	100%	100%
4	Employees with Disabilities	Nil	Nil

Principle 4 - Stakeholders Engagement

• 1. Has the company mapped its internal and external stakeholders? No
• 1. Out of the above,has the company identified the disadvantaged, vulnerable & marginalized stakeholders? Not applicable
• 1. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders? If so, provide details thereof, in about 50 words or so. Not applicable

Principle 5 - Human Rights

1. Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?

All aspects of human rights are inbuilt and covered under the Company's Code of Business Conduct as well in various human resource practices/ policies.

1. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the management?

No Complaints with respect to human rights was reported during the financial year ended March 31, 2021

Principle 6 - Environment

1. Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/ Suppliers/Contractors/NGOs /others.

The company is committed to operate all its plants in an environmentally friendly manner while protecting health and safety of its employees.

• 1. Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc? Y/N. If yes, please give hyper link for web page etc. Nil
• 1. Does the company identify and assess potential environmental risks? Yes
• 1. Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if Yes, whether any environmental compliance report is filed? At present the company does not have any project related to clean development mechanism.
• 1. Has the company undertaken any other initiatives on clean technology, energy efficiency, renewable energy, etc.Y/N. If yes, please give hyper link for web page etc.- No
• 1. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/ SPCB for the financial year being reported?

The emissions/waste generated by the Company are within the permissible limits specified by Central or State Pollution Control Board (CPCB/ SPCB) for the financial year being reported.

1. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. noter solved to satisfaction)as on end of Financial Year.

There are no show cause/legal notices from CPCB/ SPCB which are pending as at the end of the financial year.

Principle 7 - Policy Advocacy

Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with: Yes. The Company is a member of:

• 1) Electronics and Computer Software Export Promotion Council
• 2) Andhra Chamber of Commerce
• 3) Confederation of Indian Industry
• 4) Electronics Industries Association of India
• 1. Have you advocated/ lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes specify the broad areas ( drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy security, Water, Food Security, Sustainable Business Principles,Others-No

Principle 8 - Community Development (CSR)

1. Does the company have specified programmes / initiatives/projects in pursuit of the policy related to Principle 8? If yes details thereof.

The Company has adopted CSR Policy, the key areas of focus of CSR Policy are:

Providing health care, setting up of homes for orphans and contributions to Technology incubators.

1. Are the programmes / projects undertaken through in-house team/own foundation/external NGO/ government structures/any other organization?

The above mentioned initiatives are implemented through implementing agency.

1. Have you done any impact assessment of your initiative? No

What is your company's direct contribution to community development projects- Amount in INR and the details of the projects undertaken? The Company has spent an amount of Rs.106.51 Lakhs on its CSR activities during financial year ended March 31, 2021.

Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain in 50 words, or so.

Please refer to Annual Report on CSR Activities.

Principle 9 - Customer Relations

1. What percentage of customer complaints/consumer cases are pending as on the end of financial year.

Nil

2. Does the company display product information on the product label, over and above what is mandated as per local laws? Yes/No/N.A. /Remarks(additional information)

The Company displays product information on the product label as per the requirement of law.

3. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as on end of financial year. If so, provide details thereof, in about 50 words or so.

No.

4. Did your company carry out any consumer survey/ consumer satisfaction trends?

The Company has not carried out any formal consumer survey/consumer satisfaction trends. However, the Company keeps track of responses/comments from various stakeholders.

For and on behalf of the Board of Directors

S. Gurunatha Reddy M.V. Reddy Managing Director Joint Managing Director Place: Hyderabad DIN: 00003828 DIN: 00421401

Date: July 21, 2021

REPORT ON CORPORATE GOVERNANCE

Report Pursuant to Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, compliance with the requirements of Corporate Governance is set out below:

1. Company's Philosophy on Code of Governance:

Your company believes in providing highest transparency and ethical value in Corporate Governance. Your company also believes in taking into confidence all the stakeholders viz., Shareholders, Employees, Creditors, Customers etc. Your company is committed to take the torch of Corporate Governance forward, so that every stakeholder of the company synchronizes and synergies their efforts in their growth a long with the growth of their company.

The Company is in compliance with the Corporate Governance requirements as enshrined in the Companies Act, 2013 read with the Rules made thereunder, Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") and other applicable laws.

2. Board of Directors:

The Board of Directors along with its Committees provides leadership and guidance to the Company's management and supervises the Company's performance. Presently the Board of Directors comprises six directors, of which three are Independent Directors and one Non-Executive Director.

The composition of the company's Board, their category, designation, other Directorships and memberships of Committees held by each of them is as follows:

S.No	Name of the Director	Category	Designation
1	Dr. Avinash Chander	Independent Director	Chairman
2	Mr. S.Gurunatha Reddy	Executive Director	Managing Director
3	Mr. M.V. Reddy	Executive Director	Joint Managing Director
4	Mr.V.Venkata Rama Sastry#	Independent Director	Director
5	Mr.B.Lakshmi Narayana Raju\$	Independent Director	Director
6	Mr. Sunil Kumar Sharma	Independent Director	Director
7	Ms. Kiran Dhingra, (Retd. IAS)	Independent Director	Director
8	Mr. Atim Kabra	Non-Executive Director	Director

a) The composition and category of the Board of Directors is as follows:

Notes:

• . Mr.V.Venkata Rama Sastry ceased as Director of the Company w.e.f. January 28, 2021 due to retirement.

• \$. Mr.B.Lakshmi Narayana Raju ceased as Director of the Company w.e.f. January 28, 2021due to retirement.
• b) Attendance of Directors at the meetings:

The details of the attendance of the Directors at the Board meetings held during the year ended March 31, 2021 and at the last Annual General Meeting (AGM) are given below:

S.No	Name of the Director	Number of Board Meetings		Attendance at AGM Held
		Held	Attended	on September 9 , 2020
1	Dr. Avinash Chander	5	5	Yes
2	Mr. S.Gurunatha Reddy	5	5	Yes
3	Mr. M.V. Reddy	5	5	Yes
4	Mr.V.Venkata Rama Sastry#	4	4	Yes
5	Mr.B.Lakshmi Narayana Raju\$	4	4	Yes
6	Mr. Sunil Kumar Sharma	5	5	Yes
7	Ms. Kiran Dhingra, (Retd. IAS)	5	5	Yes
8	Mr. Atim Kabra	5	5	Yes

c) Other Directorships:

The number of directorships and memberships in the Committees of Other Companies held by the Directors as on March 31, 2021 are as under:

Name of the Director	No. of Other	In Other Companies**
	Directorships*	Membership	Chairmanship
Dr. Avinash Chander	1	-	-
Mr. S.Gurunatha Reddy	1	-	-
Mr. M.V. Reddy	2	-	-
Mr.V.Venkata Rama Sastry#	2	2	-
Mr.B.Lakshmi Narayana Raju \$	-	-	-
Mr. Sunil Kumar Sharma	5	2	-
Ms. Kiran Dhingra, (Retd. IAS)	4	3	-
Mr. Atim Kabra	1	-	-

*Includes directorships in the Companies incorporated under the Companies Act, 1956/2013.

**Includes only Audit Committee, Stakeholders Relationship Committee. None of the Directors hold Directorships in more than 10 Companies.

S. No	Name of the Director	No. of Directorships in other Listed Companies	Name of the other Listed Companies in which Directors of the Company are Directors
1	Dr. Avinash Chander	Nil	NA
2	Mr. S.Gurunatha Reddy	Nil	NA
3	Mr. M.V. Reddy	Nil	NA
4	Mr.V.Venkata Rama Sastry#	Nil	NA
5	Mr.B.Lakshmi Narayana Raju\$	Nil	NA
6	Mr. Sunil Kumar Sharma	1	Power Grid Corporation of India Limited
7	Ms. Kiran Dhingra, (Retd. IAS)	2	1. Goa Carbon Limited 2. Stovec Industries Limited
8	Mr. Atim Kabra	Nil	NA

d) Number of Board Meetings:

During the year ended March 31, 2021, Five Board Meetings were held as against the minimum requirement of four meetings. The maximum time gap between any of two consecutive meetings did not exceed One Hundred and Twenty days.

During the year,five board meetings were held respectively on June 24, 2020, July 22, 2020, September 14, 2020, November11, 2020 and February10,2021.

e) Disclosure of relationship between directors inter-se:

None of the Directors are related to any other Director.

f) Shares held by Non-Executive Directors:

The number of equity shares of the Company held by Non-Executive Directors, as on March 31, 2021 are as follows:

Name of the Director	No. of Equity Shares (face value Rs. 2each) held in the Company
Dr. Avinash Chander	Nil
Mr. V. Venkata Rama Sastry#	Nil
Mr. B. Lakshmi Narayana Raju \$	Nil
Mr. S.K. Sharma	Nil
Ms. Kiran Dhingra, (Retd. IAS)	Nil
Mr. Atim Kabra	33,56,074

g) The details of familiarization programmes imparted to independent directors is given below:

Senior management personnel of the Company make presentations to the Board Members on a periodical basis, briefing them on the operations of the Company, plans, strategy, risks involved, new initiatives, etc., and seek their opinions and suggestions on the same. Also, the Directors are briefed on their specific responsibilities and duties that may a rise from time to time. Any new Director who joins the Board is presented with a brief background of the Company, its operations and is informed of the important policies of the Company including the Code of Conduct for Board of Directors and Senior Management Personnel and the Code of Conduct for Prevention of Insider Trading, Policy on Related Party Transactions, Policy on terms and conditions of appointment of Independent Directors, Policy on Remuneration,Policy on material events, Policy on Preservation of documents and archival of documents, Policy on material subsidiaries, Whistle blower policy, Policy on Board Diversity, Code of practices and procedures for fair disclosure of unpublished price sensitive information, Policy for dealing with leak or suspected leak of Unpublished price sensitive information, Succession policy, and Corporate Social Responsibility policy.

The Statutory Auditors, Internal Auditors and Senior Management of the Company make presentations to the Board of Directors with regard to regulatory changes from time to time while approving the financial results.

The details of familiarization programme is available on the website: www.astramwp.com.

h). Given below is the chart setting out the skills/ expertise/ competence of the Board of Directors:

S.No	Name of the Director	Category	Specialization
1	Dr. Avinash Chander	Independent Director	He is the retired Secretary, Defence R&D and Director General, DRDO.
2	Mr. S.Gurunatha Reddy	Managing Director (Executive Director)	He has more than 33 years of experience in accounting, finance, taxation and secretarial etc.,
3	Mr. M.V.Reddy	Joint Managing Director (Executive Director)	He has more than 29 years of experience in handling Marketing and Business operations in the do main of defence, space and telecom segment in India and overseas market.
4	Mr. Sunil Kumar Sharma	Independent Director	He is a retried Chairman and Managing Director,Bharat Electronics Ltd(BEL).
5	Ms. Kiran Dhingra, (Retd. IAS)	Independent Director	She has more than 38 years of experience in governance and has held senior positions in decision making capacities in practically all sectors the developmental, agricultural, social, industrial, infrastructural, transportation, corporate, economic and regulatory.
6	Mr. Atim Kabra	Non-Executive Director	He has over 26 years of well rounded "equities exposure" including Portfolio Management, Equity Sales and Equity Research with global institutions like ABN AMRO Bank, ANZ Grindlays Bank.

i) Confirmation from the Board

The Board of Directors be and here by confirm that in the opinion of the Board,the Independent Directors fulfill the conditions specified by SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and they are independent of the management.

(j) No Independent Director has resigned from the Directorship of the Company before the expiry of their term of appointment during the financial year.

3. Audit Committee

a. Brief description of terms of reference:

The powers,role and terms of reference of the audit committee covers the areas as contemplated under Regulation 18 of the Listing Regulations and Section 177 of the Companies Act,2013.

The committee mandatory reviews information such as internal audit reports related to internal control weakness, management discussion and analysis of financial condition and result of operations, statement of significant related party transactions and such other matters as prescribed.

b. Composition, name of members and chairperson:

Audit Committee:

The Audit Committee consists of three Independent Directors and one Executive Director. The committee is headed by Mr. S.K.Sharma, an Independent Director. All the members of the Audit committee are financially literate.

Composition of the Committee is given below:

Name of the Director	Category
Mr. V.V.R. Sastry#	Chairman
Mr. B.L.N.Raju\$	Member
Dr. Avinash Chander	Member
Mr. S.K. Sharma *	Chairman
Mr. S. Gurunatha Reddy	Member

Mr.V.V.R.Sastry ceased as Director of the Company w.e.f. January 28, 2021 due to retirement. Accordingly, he also ceased as Chairman of the Audit Committee with effect from the said date.

\$ Mr.B.L.N.Raju ceased as Director of the Company w.e.f. January 28, 2021 due to retirement. Accordingly, he also ceased as a member of the Audit Committee with effect from the said date.

*Appointed as Chairman of Audit committee w.e.f. February 10, 2021.

Attendees:

The Audit Committee invites such of the executives, as it considers appropriate to be present at its meetings. The Company Secretary acts as the Secretary of the Committee.

c. Meetings and attendance during the year:

The Audit Committee met five times during the year under review on June 24, 2020, July 22, 2020, September14, 2020, November 11, 2020 and February 10, 2021.

Attendance at the Audit Committee Meetings:

Name of the Director	Category	Number of Meetings
		Held	Attended
Mr. V.V.R. Sastry#	Chairman	4	4
Mr. B.L.N.Raju\$	Member	4	4
Dr. Avinash Chander	Member	5	5
Mr. S.K. Sharma *	Chairman	5	5
Mr. S. Gurunatha Reddy	Member	5	5

4. Nomination and Remuneration Committee:

a. Brief description of terms of reference:

• Formulation of the criteria for determining qualifications, positive attributes and independence of a director and recommend to the Board a policy relating to, the remuneration of the directors, key managerial personnel and other employees;
• Formulation of criteria for evaluation of performance of Independent Directors and the Board.
• Devising a policy on Board diversity.
• Identifying persons who are qualified to become Directors and who may be appointed in senior management in accordance with the criteria laid down and recommend to the Board their appointment and removal.

• Under taking other matters as the Board may refer from time to time.

b. Composition, name of members and chairperson:

The Nomination and Remuneration Committee was constituted by the Board with two Independent Directors and One Non-Executive Director. The committee is headed by Ms. Kiran Dhingra, IAS (Retd.), an Independent Director.

The Company Secretary acts as the Secretary of the Committee.

The minutes of the meetings of the Nomination and Remuneration Committee are circulated to all the members of the Board.

Composition of the Nomination and Remuneration Committee:

Name of the Director	Category
Mr. B.L.N.Raju\$	Chairman
Mr. V.V.R. Sastry#	Member
Dr. Avinash Chander	Member
Mr. S.K. Sharma *	Member
Ms. Kiran Dhingra, IAS (Retd.) %	Chairperson
Mr. Atim Kabra@	Member

\$ Mr.B.L.N.Raju ceased as Director of the Company w.e.f. January 28, 2021 due to retirement. Accordingly, he also ceased as Chairman of the Nomination and Remuneration Committee with effect from the said date.

Mr.V.V.R.Sastry ceased as Director of the Company w.e.f. January 28, 2021 due to retirement. Accordingly, he also ceased as a member of the Nomination and Remuneration Committee with effect from the said date.

* Mr.S.K.Sharma resigned as member of the Nomination and Remuneration Committee with effect from February 10, 2021.

%Appointed as Chairperson of Nomination and Remuneration Committee with effect from February 10, 2021.

* Appointed as Member of Nomination and Remuneration Committee with effect from February 10, 2021.

c. Nomination and Remuneration Committee meetings and attendance during the year:

One Nomination and Remuneration Committee meeting was held during the year.

Attendance at the Nomination and Remuneration Committee Meetings:

Name of the Director	Position held	Number of Meetings
		Held	Attended
Mr. B.L.N.Raju\$	Chairman	0	0
Mr. V.V.R. Sastry#	Member	0	0
Dr. Avinash Chander	Member	1	1
Mr. S.K. Sharma *	Member	0	0
Ms. Kiran Dhingra, IAS (Retd.) %	Chairperson	1	1
Mr. Atim Kabra @	Member	1	1

d. Nomination and Remuneration policy:

The compensation of the executive directors comprises of fixed component and performance bonus.The compensation is determined based on the remuneration prevailing in the industry and the performance of the Company. The remuneration package of the Executive Directors is periodically reviewed and suitable revision is recommended to the Board by the Committee.

The Non-executive directors are paid Commission & sitting fees for attending meetings of Board/ Committee.

e. Terms of Appointment of Independent Director:

As per Regulation 46 of SEBI Listing Regulations and Section 149 read with Schedule IV of the Companies Act, 2013, the terms and conditions of appointment / re-appointment of independent Directors are available on the Company's website www.astramwp.com

f. Performance evaluation of Directors:

The criteria for performance evaluation cover the areas relevant to the functioning as Independent Directors such as preparation, participation,conduct and effectiveness. The performance evaluation of Independent Directors was done by the entire Board of Directors and in the evaluation the Directors who are subject to evaluation had not participated.

g. Meeting of Independent Directors:

A separate meeting of the Independent Directors was held on October 3, 2020 inter-alia, to discuss evaluation of the performance of Non-Independent Directors, the Board as a whole, evaluation of the performance of the Chairman, taking into account the views of the Executive and Non-Executive Directors and the evaluation of the quality, content and time lines of flow of information between the management and the Board that is necessary for the Board to effectively and reasonably perform its duties.

The Independent Directors expressed satisfaction with the overall performance of the Directors and the Board as a whole.

5. Succession planning

The Nomination and Remuneration Committee works with the Board on succession plan to ensure orderly succession in appointment to the Board and in the senior management. The Company strives to maintain an appropriate balance of skills and experience within the Board of Directors.

6. Remuneration of Directors:

• a. There were no pecuniary transactions with any non-executive director of the Company.
• b. Non-Executive Directors are paid Sitting Fees for attending the Board and Committee Meetings and paid commission.

Following are the details of Commission & sitting fees paid to the Directors for attending Board and Committee Meetings for the year ended March 31,2021:

Name of the Non-Executive Director	Sitting Fees Amount (Rs.)	Commission Amount (Rs.)	Total Amount (Rs.)
Dr. Avinash Chander	1,00,000	5,80,009	6,80,009
Mr.V.Venkata Rama Sastry #	80,000	5,80,009	6,60,009
Mr.B.Lakshmi Narayana Raju \$	80,000	5,80,009	6,60,009
Mr. Sunil Kumar Sharma	1,00,000	5,80,009	6,80,009
Ms. Kiran Dhingra	1,00,000	5,80,009	6,80,009
Mr. Atim Kabra	1,00,000	5,80,009	6,80,009

. Mr.V. Venkata Rama Sastry ceased as Director of the Company w.e.f. January 28, 2021 due to retirement.

\$. Mr.B. Lakshmi Narayana Raju ceased as Director of the Company w.e.f. January 28, 2021 due to retirement.

The Remuneration paid to the Whole-time Directors during the year is as follows:

Name of the Director and Designation	Salary (Rs.)	Commission/ Performance Bonus (Rs.)	Benefits (PFCompany contribution)	Pension	Service contracts	Notice period	Total (Rs.)
Mr. S. Gurunatha Reddy (Managing Director)	53,46,000	34,80,053	3,88,800		Appointed for a period of 5 years	As per the Rules of the Company	92,14,853
Mr.M. Venkateshwar Reddy (Joint Managing Director)	56,48,450	34,80,053	3,88,800		--Do--	--Do--	95,17,303

There were no severance fees or stock option plan for the Executive/ Non Executive Directors. The appointment of Whole Time Directors is made for a period of five years on the terms and conditions contained in the respective resolutions passed by the Members in the General Meetings.

7. Stakeholders Relationship Committee:

a. Composition

The Committee consists of the following Directors:

Name of the Director	Designation(s)
Dr. Avinash Chander	Chairman
Mr. S. Gurunatha Reddy	Member
Mr. M. V. Reddy	Member

b. Name and Designation of Compliance Officer:

Mr. T. Anjaneyulu, Dy.General Manager - Company Secretary

c. Number of Shareholders Complaints received sofar:

During the year ended March 31, 2021, the Company has not received any complaints.

d. Number of complaints not resolved to the satisfaction of shareholders is N.A

e. There were no pending complaints as at the year end.

Terms of Reference

The Stakeholders Relationship Committee oversees and reviews all matters connected with the securities transfer and also looks into redressing of shareholders complaints like transfer/transmission of shares, non-receipt of annual reports / dividends etc.,

As per section 178(7) of the Act and the Secretarial Standards, the Chairman of the committee or, in his absence, any other Member of the Committee authorized by him in this behalf shall attend the General Meetings of the Company. The Chairman of the committee, Dr. Avinash Chander was present at the 29th AGM of the Company held on 9thSeptember, 2020.

Email-id for Investor Grievances: secretarial@astramwp.com.

8. General Body Meetings:

a. The details of date, location and time of the last three Annual General Meetings held are as under:

For the year	Venue	Day & Date	Time
2018	Swagath-De-Royal Hotel, Kondapur, Hyderabad	July 30, 2018	12.30 P.M
2019	Swagath-De-Royal Hotel, Kondapur, Hyderabad	August 14, 2019	12.30 P.M
2020	Through electronic mode (Video conference) "VC"	September 9, 2020	3.00 P.M

b. Special Resolutions passed during the previous three Annual General Meetings:

29thAnnual General Meeting – September 9, 2020

No Special resolutions were passed.

28thAnnual General Meeting – August 14, 2019

Promotion and re-designation of Mr. S. Gurunatha Reddy, (DIN: 00003828) as the Managing Director of the company.

27thAnnual General Meeting – July 30, 2018

No Special resolutions were passed.

c. whether any special resolution passed last year through postal ballot–details of voting pattern; There were no resolutions required to be passed through postal ballot.

d. person who conducted the postal ballot exercise:

Not Applicable

e. whether any special resolution is proposed to be conducted through postal ballot: No

f. procedure for postal ballot:

Not Applicable

9. Means of Communication:

a. Quarterly results:

The quarterly financial results of the company are published in accordance with the requirements of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015.

b. Newspapers wherein results normally published:

The results of the Company are published in widely circulated newspapers namely Nava Telangana (Telugu daily, Hyderabad edition) and Business Standard (English daily, all editions).

c. Any website, where displayed:

The results of the Company are displayed on the Company's website: www.astramwp.com

d. Whether it also displays official news releases:

Official news releases along with quarterly results are displayed on the Company's website: www.astramwp.com

e. Presentations made to institutional investors or to the analysts:

The presentations made to the investors/ analysts are placed on the Company's website: www.astramwp.com.

10. General Shareholder Information:

a. Annual general meeting - date, time and venue:

Day, Date and time	Thursday 26th August, 2021 at 3.00 P.M. through Video Conferencing (VC)

b. Financial Year

April 1, 2021 to March 31, 2022. Indicative calendar of events for the year 2021-22 (financial year) excluding Extra Ordinary General Meeting(s), if any, is as under

30thAnnual General Meeting	August 26th, 2021
First Quarter financial results	July/August, 2021
Second Quarter financial results	October/November, 2021
Third Quarter financial results	January/February, 2022
Fourth Quarter & Annual results of financial year 2021-22	April/May, 2022

Book Closure

The Company's Register of Members and Share Transfer books	August 20th, 2021 to August 26th,
will remain closed for the purpose of payment of dividend.	(Both days inclusive) 2021

57

c. Dividend Payment Date:

Will be paid to shareholders on and from 6th September, 2021.

d. Listing on StockExchanges:

Company's equity shares are listed at:

Name and Address of the Stock Exchange	Scrip Code
The National Stock Exchange of India "Exchange Plaza", Bandra-Kurla Complex, Bandra (E), Mumbai-400 051.	ASTRAMICRO
The Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.	532493
Listing Fee The Company has paid till date listing fee of all the above Exchanges.

e. Market price data- high, low during each month in last financial year:

Monthly high and low quotations and volume of shares traded on The Bombay Stock Exchange Limited.

Month	BSE
	High (Rs.)	Low(Rs.)	No. of Shares Traded
April, 2020	74.70	52.00	5,49,074
May, 2020	70.25	57.60	2,65,631
June, 2020	108.45	66.55	24,89,201
July, 2020	127.90	103.45	31,07,172
August, 2020	134.90	105.25	20,90,535
September, 2020	127.90	101.95	8,86,945
October, 2020	119.40	105.05	3,35,935
November, 2020	113.90	103.40	3,28,226
December, 2020	134.90	112.20	10,71,854
January, 2021	131.90	113.70	6,59,148
February, 2021	123.45	108.00	8,70,138
March, 2021	158.00	113.00	26,04,873

f. Performance in comparison to broad-based indices of BSE Sensex:

Month	ASTRA Closing Price (Rs.)	BSE Sensex (Closing)
April, 2020	64.75	33,717.62
May, 2020	65.65	32,424.10
June, 2020	105.65	34,915.80
July, 2020	106.45	37,606.89
August, 2020	125.00	38,628.29
September, 2020	116.75	38,067.93
October, 2020	107.25	39,614.07
November, 2020	112.15	44,149.72
December, 2020	124.50	47,751.33
January, 2021	116.50	46,285.77
February, 2021	110.00	49,099.99
March, 2021	129.60	49,509.15

g. There was no suspension of trading in Securities of the Company during the year under review.

h. Registrar to an issue & Share Transfer Agents: (for Shares held in both Physical and Demat mode) M/s. Purva Sharegistry (India) Pvt. Ltd., Shiv Shakti Industrial Estate, Unit No.9, Ground Floor, 7 B J R Boricha Marg, Lower Parel, Mumbai - 400 011 Tele:91-022 23016761, 2301 8261 and 2301 0771. Email: support@purvashare.com

i. Share Transfer System

Share transfers are processed and share certificates duly endorsed are delivered with in a period of fifteen days from the date of receipt, subject to the documents being valid and complete in all respects. The Company obtains from a Company Secretary in Practice half- yearly certificate of compliance with the share transfer formalities as required under Regulation 40(9) of the SEBI (Listing Obligations and Disclosure Requirements)Regulations,2015,and files a copy of the said certificate with Stock Exchanges.

j. Distribution of shareholding:

Shareholding pattern as on 31.03.2021

Distribution of shareholding

No. of shares held	No. of shareholders
Upto - 5,000	35529
5,001 - 10,000	821
10,001 - 20,000	392
20,001 - 30,000	122
30,001 - 40,000	61
40,001 - 50,000	42
50,001 - 1,00,000	99
1,00,001 and above	160
TOTAL	37226

Shareholding pattern

Category	No. of shares	% shareholding
Promoters & Promoter Relatives	7779731	8.98
Resident Individuals	30926705	35.71
Financial Institutions	100	0.00
IEPF	639471	0.74
LLP	1794417	2.07
Bodies Corporate	26588083	30.70
Clearing Members	4023721	4.65
Indian Mutual Funds	3962163	4.57
Foreign Portfolio Investor	900862	1.04
Alternate Investment Fund	321544	0.37
N.R.I. (Repat & Non-Repat)	5691859	6.57
Foreign Corporate Bodies	1672097	1.93
Trust	904	0.00
Hindu Undivided Family	2310018	2.67
Total	86611675	100.00

k. Dematerialization of shares and liquidity:

Trading of the Company's shares is compulsorily in dematerialized form for all investors. As of March 31, 2021 equity shares representing 99.43% have been dematerialized with the following depositories:

Description	ISIN	Depositories
Equity shares	INE386C01029	NSDL & CDSL

l. Outstanding GDRs/ADRs/Warrants or any Convertible Instruments, conversion date and likely impact onequity.

The Company has not issued any GDRs/ADRs. There were no outstanding convertible warrants as on March 31, 2021.

m. Commodity Price Risk or Commodity hedging activities:

The Company has not carried on any Commodity Business and has also not carried any commodity hedging activities, hence same are not applicable to the Company.

n. Plant Locations.

Registered Office:

Astra Towers, 3rd Floor, Survey No. 12(P), Opp. CII Green Building,Kothaguda Post, Kondapur, Hitech City, Hyderabad, Telangana-500 084.

Unit 1 :

Plot No 12, ANRICH Industrial Estate, Bollaram, Medak District, Telangana – 502325

Unit 2 :

Plot No 56A, 56B, 57A, ANRICH Industrial Estate, Bollaram, Medak District, Telangana – 502325

Unit 3 :

Survey No.1\1, Imarath Kancha, Raviryala Village, Hardware Technology Park, MaheshwaramMandal, Ranga Reddy, Telangana- 500 005.

Unit 4 :

Plot No.18,19,20, 21 Part, Hardware Technology Park, Imarath Kancha, Raviryala Village, Maheshwaram Mandal, Ranga Reddy, Telangana- 500 005.

EOU:

Plot Nos. 18,19,20, 21 Part, Hardware Technology Park, Survey No.1\1, Imarath Kancha, Raviryala Village, Maheshwaram Mandal, Ranga Reddy, Telangana- 500 005.

Ecity:

S.Y. No. 114 /1 Plot No. S-2/9 and 10, E-City, Raviryala, Srinagar V, Maheshwaram M, Ranga Reddy, Telangana, 501359.

Bengaluru Office:

Plot No. 51 P, Bengaluru Aerospace Park Industrial Area,

Survey Nos. Parts of 36 to 40, JalaHobli,

YelahankaTaluk, Bengaluru North, Bengaluru Urban – 562 149, Karnataka.

Ahmedabad Office:

A102, Elanza Crest, Beside Sigma House,

Sindhubhavan Road, Bodakdev, Ahmedabad- 380054, Gujarat.

o. Address for correspondence:

Company Secretary

Astra Microwave Products Limited 'Astra Towers', Survey No:12 (Part), Opp. CII Green Building, Hitech City, Kondapur, Hyderabad, Telangana, India – 500038 Tele: 040-46618000/8001 Fax: 040-46618048 CIN:L29309TG1991PLC013203 E-mail: secretarial@astramwp.com. Website: www.astramwp.com

p. Credit Rating

Given below are the ratings given to the Company by CRISIL during the financial year ended March31,2021. Long Term: CRISIL A/Stable(Reaffirmed)

Short Term: CRISIL A1 (Reaffirmed)

11. Other Disclosures

a. Related party transactions

Transactions with related parties are disclosed in the Notes to Accounts in the Annual Report. All the transactions with related parties are at arms' length and in compliance with transfer pricing regulations and consideration is paid/received through cheque /online payment.

All Related Party Transactions are entered in to by the Company only after obtaining the prior approval of the Audit Committee and the Board of Directors and are entered into on arm's length basis. During

The Company has not entered into any transaction with any person or entity belonging to the Promoter / Promoter Group which holds 10% or more shareholding in the Company.

In terms of the Companies Act, 2013 and the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has adopted a policy to determine Related Party Transactions.

The policy is placed on the Company's website at: www.astramwp.com.

b. Details of non-compliance etc.,

There have not been any Non-Compliance by the Company in general and no penalties or strictures imposed on the Company by Stock Exchanges, SEBI or any statutory authority, on any matter related to capital markets, during the last three years.

c. Details of establishment of Vigil Mechanism (Whistle Blower policy)

The Board of Directors of the Company had adopted the Whistle Blower policy and appointed a designated person. Employees can report to the Management concerned unethical behavior, act or suspected fraud or violation of the Company's Code of Conduct policy.

The Audit Committee reviews periodically the functioning of Whistle Blower mechanism.

No employee has been denied access to the Audit committee. A copy of the Whistle Blower policy is also hosted on the website of the Company: www.astramwp.com.

The designated person had not received any complaint during the financial year ended 31stMarch, 2021.

Email-id for designated person: whistleblower@astramwp.com.

d. Policy on Material Subsidiaries

The policy for determining 'material' subsidiaries is available on the website of the company www. astramwp.com.

e. Policy on Related Party Transactions

The policy on dealing with related party transactions is available on the website of the company www. astramwp.com.

• f. The company has not raised any funds through preferential allotment or qualified institutions placement during the financial year ended March 31,2021.
• g. A certificate from a Company Secretary in Practice stating that none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as Directors of Company by SEBI or Ministry of Corporate Affairs or any such statutory authority is enclosed to this report.
• h. Auditor's certificate on Corporate Governance

As required by Schedule V of Listing Regulations, a certificate from the Practicing Company Secretary is enclosed as Annexure to the Board's report.

• i. There has been no such incidence where the Board has not accepted the recommendation of the Committees of the Company during the year under review.
• j. Given below are the details of fees paid to Price Waterhouse Chartered Accountants LLP, Chartered Accountant, Statutory Auditors of the Company on a Consolidated basis during the financial year ended March 31,2021:

S.No.	Payments to the Statutory Auditors (excluding taxes)	Fees paid in Lakhs
1.	Statutory Audit fees paid for Audit of the Company including Limited Review ofthe Company	20,00,000
2.	Fees paid for other services	8,00,000
	Total	28,00,000

k. Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,2013:

S.No.	Particulars	No.
1.	Number of complaints on Sexual harassment received during the year	Nil
2.	Number of Complaints disposed off during the year	Not Applicable
3.	Number of cases pending as on end of the financial year	Not Applicable

• 12. The Company has complied with the requirements of the Schedule V Corporate Governance report sub-para(2) to (10) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• 13. Details of compliance with mandatory requirements and adoption of the non-mandatory requirements of this clause:

The Company has complied with all the mandatory requirements of the Schedule V Corporate Governance report of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Separate persons to the post of Chairman and Managing Director has been adopted from discretionary requirements.

14. The Disclosures of the compliance with Corporate Governance requirements specified in regulation 17 to 27 and clauses (b) to (i) of sub-regulation (2) of regulation 46 are as follows:

Regulation Particulars of Regulations		Compliance status (Yes/No/NA)
17	Board of Directors	Yes
17A	Maximum number of Directors	Yes
18	Audit Committee	Yes
19	Nomination and Remuneration Committee	Yes
20	Stakeholders Relationship Committee	Yes
21	Risk Management Committee	Yes
22	Vigil Mechanism	Yes
23	Related Party Transactions	Yes
24	Corporate Governance requirements with respect to subsidiary of listed entity	Yes
24A	Secretarial compliance & Audit Report	Yes
25	Obligations with respect to Independent Directors	Yes
26	Obligation with respect to Directors and senior management	Yes
27	Other Corporate Governance requirements	Yes
46(2)(b) to(i)	Website	Yes

15. Subsidiary Companies

Regulation 16 of the Listing Regulations defines a "material subsidiary" to mean a subsidiary, whose income or net worth exceeds ten percent of the consolidated income or net worth respectively, of the listed entity and its subsidiaries in the immediately preceding accounting year.

Under this definition, Bhavyabhanu Electronics Private Limited (BEPL) is a material subsidiary of the Company.

The subsidiaries of the Company function independently, with an adequately empowered Board of Directors and adequate resources. For more effective governance, the minutes of Board meetings of material subsidiary of the Company is placed before the Board of Directors of the Company for their review at every quarterly meeting.

In addition to the above, Regulation 24 of the Listing Regulations requires that at least one independent director on the Board of Directors of the listed entity shall be a director on the board of directors of an unlisted material subsidiary, whether incorporated in India or not. For the purpose of this provision, material subsidiary means a subsidiary, whose income or net worth exceeds twenty percent of the consolidated income or net

worth respectively, of the listed entity and its subsidiaries in the immediately preceding accounting year. An Independent Director of the Company is also Director on the Board of the material subsidiary.

The other requirements of Regulation 24 of the Listing Regulations with regard to Corporate governance requirements for Subsidiary Companies have been complied with.

16. Risk Management

The Company has constituted a Risk Management Committee and adopted Risk Management Policy. The details of risks identified and mitigation measures undertaken are presented to the Board of Directors and the Audit committee. The Board and the Audit committee provide oversight and review the risk management policy periodically.

A detailed note on the risks is included in the Management Discussion and Analysis annexed to the Board's Report.

17. Code of Conduct

The Board has laid down a Code of Conduct covering the ethical requirements to be complied with covering all the Board members and Senior Management Personnel of the Company. An affirmation of compliance with the code is received from them on an annual basis.

18. CEO and CFO certification

The Managing Director and the CFO have given a Certificate to the Board as contemplated in Schedule – V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and is separately annexed.

19. Transfer of Shares to Investor Education and Protection Fund

As per the provisions of section 124 of the Companies Act, 2013, shares of the Shareholders, who has not claimed dividends for a continuous period of 7 years, shall be transferred to Investor Education and Protection Fund Authority account.

Accordingly,the Company has transferred 11,009 equity shares to Investor Education and Protection Fund during the financial year ended March 31,2021.

20. Proceeds from public issues, rights issues, preferential issues etc.

During the year ended March 31, 2021,there were no proceeds from public issues, rights issues, preferential issues,etc.

21. Management Discussion and Analysis.

The report on Management Discussion and Analysis (MDA) is annexed to the Directors' Report and forms part of this Annual Report.

22. Disclosure of Accounting Treatments.

The Company has followed the Indian Accounting Standards and accounting principles generally accepted in India in preparation of its Financial Statements.

• 23. The Company has adopted the policy on dissemination of information on the material events to stock exchanges in accordance with the Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The said policy is available on the website of the Company www.astramwp.com.
• 24. The Company has adopted the policy on preservation of documents in accordance with the Regulation 9 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations, 2015.The Documents Preservation Policy is available on the website of the Company www.astramwp.com.
• 25. The Company has adopted policy on Dividend Distribution. Policy on Dividend Distribution which is available on the website of the Company www.astramwp.com.

For and on behalf of the Board of Directors

S.Gurunatha Reddy M.V. Reddy DIN:00003828 DIN:00421401

63

Managing Director Joint Managing Director

DECLARATION

As provided under Schedule-V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations, 2015, the Board of Directors and the Senior Management Personnel have confirmed compliance with the Code of Conduct and Ethics for the financial year ended March 31,2021.

For Astra Microwave Products Limited

Place:Hyderabad S.Gurunatha Reddy Date: July 21,2021 Managing Director DIN: 00003828

CEO AND CFO CERTIFICATE

We hereby certify that:

• a) We have reviewed audited financial statements for the Financial Year ended March 31, 2021 and that to the best of our knowledge and belief:
• i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
• ii) these statements together present a true and fair view of the Company's affairs and are in compliance with existing accounting standards, applicable laws and regulations.
• b) There are, to the best of our knowledge and belief no transactions entered into by the Company during the year which are fraudulent, illegal or violative of the Company's code of conduct.
• c) We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and we have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have take nor propose to take to rectify these deficiencies.
• d) We have indicated to the Auditors and the Audit Committee that there are no:
• i) significant changes in internal control over financial reporting during the year;
• ii) significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statements and
• iii) instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the company's internal control system over financial reporting.

For Astra Microwave Products Limited

S. Gurunatha Reddy B.V.S Narasinga Rao Managing Director CFO DIN: 00003828

To The Members,

Astra Microwave Products Limited, Hyderabad.

SUB: CERTIFICATE UNDER SCHEDULE V(C)(10)(I) OF SEBI (LISTING OBLIGATIONS AND DISCLOSURE) REGULATIONS, 2015

We, L.D.Reddy & Co., Practicing Company Secretaries, have examined the Company and Registrar of Companies records, books and papers of ASTRA MICROWAVE PRODUCTS LIMITED (CIN: L29309TG1991PLC013203) having its Registered Office at 'ASTRA TOWERS', Survey No:12 (Part), Opp. CII Green Building, Hitech City, Kondapur, Hyderabad, Telangana, India – 500038, (the Company) as required to be maintained under the Companies Act, 2013, SEBI Regulations, other applicable rules and regulations made there under for the financial year ended on March 31,2021.

In our opinion and to the best of our information and according to the examinations carried out by us and explanations and representation furnished to us by the Company, its officers and agents, we certify that none of the following Directors of the Company have been debarred or disqualified from being appointed or continuing as Directors of Companies by the SEBI /Ministry of Corporate Affairs or any such statutory authority as on March 31, 2021:

Sr. No.	Name of the Director	DIN No.	Date of Appointment in Company
1.	Dr. Avinash Chander	05288690	29-01-2018
2.	Mr.S.Gurunatha Reddy	00003828	29-04-2013
3.	Mr.M.V.Reddy	00421401	29-04-2013
4.	Mr. Sunil Kumar Sharma	03614952	22-03-2019
5.	Ms. Kiran Dhingra	00425602	24-06-2019
6.	Mr. Atim Kabra	00003366	24-06-2019

65

FOR L. D. REDDY & CO., Company Secretary

L. DHANAMJAY REDDY

(Proprietor) M. No. 13104 CP No. 3752 UDIN: A013104C000564556

Place: Hyderabad Date: 01.07.2021

CERTIFICATE ON CORPORATE GOVERNANCE

To

The Members of

Astra Microwave Products Limited

• 1. This certificate is issued in accordance with the terms of our engagement letter
• 1. This are port contains details of compliance of conditions of Corporate Governance by Astra Microwave Products Limited ('the Company') for the year ended 31 March 2021, as stipulated in Regulations 17-27, clauses(b)to
• (i) of Regulation 46(2) and paragraphs C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements Regulations,2015('SEBI Listing Regulations'), pursuant to the Listing Agreement of the Company with Stock exchanges.

Management's Responsibility for compliance with the conditions of SEBI Listing Regulations.

1. The compliance with the conditions of Corporate Governance is the responsibility of the management of the Company, including the preparation and maintenance of all relevant supporting records and documents. This responsibility includes the design, implementation and maintenance of internal control and procedures.

Auditor's Responsibility

• 1. Our examination was limited to procedures and implementation there of,adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
• 1. Pursuant to the requirements of the SEBI Listing Regulations, it is our responsibility to provide a reasonable assurance whether the Company has complied with the conditions of Corporate Governance as stipulated in SEBI Listing Regulations for the year ended 31 March,2021.
• 1. We conducted our examination in accordance with the, Guidance Note on Corporate Governance Certificate, issued by the Institute of Company Secretaries of India ('ICSI'), in so far as applicable for the purpose of this certificate.The Guidance Note on Reports or Certificates for Special Purposes requires that we comply with the ethical requirements of the Code of Ethics issued by the ICSI.

Opinion

• 1. In our opinion, and to the best of our information and according to explanations given to us and the representation provided by the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above-mentioned SEBI Listing Regulations.
• 1. We state that such compliance is neither an assurance as to the future viability of the Company.

Restriction on use

1. The certificate is addressed and provided to the members of the Company solely for the purpose to enable the Company to comply with the requirement of the SEBI Listing Regulations, and it should not be used by any other person or for any other purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this certificate is how nor in to whose hand sit may come without our prior consent in writing.

FOR L. D. REDDY & CO., Company Secretaries

Place: Hyderabad L. DHANAMJAY REDDY Date: 01.07.2021 (Proprietor) M. No. 13104 CP No. 3752 UDIN: A013104C000564501

Management's Discussion and Analysis of Results of Operations and Financial Condition

Overview:

Astra is engaged in designing and manufacturing of high value added RF and microwave super components and sub-systems finding applications in Defense, Space, Telecom, Meteorology and Civil communication systems.

A. Financial Analysis:

The financial statements have been prepared in accordance with the guideline as laid out in the Companies Act, 2013 and Indian Accounting Standard-(Ind-AS) in India. The management of Astra accepts responsibility for the integrity and objectivity of these financial statements. The financial statements reflect in a true and fair manner, the form and substance of transactions and reasonably present the company's state of affairs and profits for the year.

a) Operational Performance:

The Company could achieve around 40% top line growth for the year despite COVID-19 challenges. There is no bottom line growth corresponding to growth in top line as the mix of sales skewed to exports which carries low gross margin. We are confident to improve profit margins in the coming years.

b) Order Book:

At the end of the year the order book position is healthy with a good mix of domestic and export business. Most of these orders are executable in the next 12 to 24 months period subject customer actual delivery needs.

Sector	Rs. In Lacs
Defence/Public Sector Products	54,278
Space	22,325
Meteorological & Other Products	7,189
Exports	72,325
Total	1,56,117

c) Sales performance:

Sector wise sales are as follows

Business Sector	FY 2020-21		FY 2019-20
	Rs. Lacs	%	Rs. Lacs	%
Defense	17,798	30	7,215	15
Space	2,302	4	17,406	38
Metrology/Civil Telecom	2,773	5	1,136	2
Exports	28,487	48	15,629	34
Deemed Exports & SEZ	7,345	12	4,493	10
Other Operating Revenue	210	1	279	1
Total	58,915	100	46,158	100

d) Expansion Plans:

The company will continue to look at organic and inorganic options to stabilize top line performance as present sub-systems business is project driven and hence lumpy in nature.

To augment present activities we have budgeted to spend Captial Expenditure of about Rs.30 cr which will be funded through internal accruals and term loans.

e) Risks & Concerns:

The Company's main source of revenues lies in Defence market. Most of these projects are initiated, designed and developed by DRDO labs and driven by Govt., policies and priorities. Though technically we can project and complete the product development on the time lines indicated, conversion of that to a recognizable quantum of orders lies mainly on the Government decisions. This results in an uneven and skewed pattern of sales for the Company, which is beyond the control of the Company.

Defence export business is driven by offset provisions of Govt., of India which is project based and hence generally lumpy in nature and is controlled by export regulations where time delays could happen in granting necessary permissions. This export business is also high precision and skilled job involving specialized inputs from across the globe which has a bearing on timely execution and uniform billing.

B. Financial Condition:

1. Share Capital

At present, the company has only one class of shares-equity shares of Rs.2 each, par value. The paid up capital as on 31.03.2021 is Rs.17.32 cr.

2. Reserves and Surplus

The change in reserves and surplus represents the profits made during the year after making provisions for taxation.

3. Loan Funds

The company has not taken long terms loans during the year and implemented its capital expenditure commitments through internal accruals. Following are the details of secured loans maintenance during the year.

Particulars	As of March 31
	2021	2020
Working capital loans:
Open cash credit including WCDL
Sanctioned amount	175,00,00,000	95,00,00,000
Outstanding amount	100,12,57,386	47,35,67,546
Long Term Loans:
Outstanding at the beginning of the year	4,75,43,990	14,26,10,290
Additions during year	-	-
Repaid during the year	4,75,43,990	9,50,66,300
Amount outstanding at the end of the year	-	4,75,43,990

4. Deferred tax

The deferred tax liability pertains to difference in the depreciation claimed in the books and tax purposes. 5. Fixed Assets

Particulars As of March 31 (Amount Rs.) 2021 2020 Original cost Land 20,45,97,005 20,45,97,005 Buildings 76,62,27,279 68,05,40,431 Plant & machinery 131,19,99,515 126,86,45,603 Electrical installation 4,11,13,314 3,68,77,579 Air conditioners 4,66,86,813 4,37,68,508 Office equipment 3,50,23,420 3,20,82,160 Furniture and fixtures 4,38,44,697 3,86,70,833 Computers 12,32,99,564 11,67,83,723 Vehicles 1,06,86,904 1,10,13,462 Solar Power Generating System 6,69,18,781 6,69,18,781 Wind Electric Generating System 12,45,47,464 12,45,47,464 Less: Accumulated depreciation 126,92,58,778 103,95,49,070 Net block 150,56,85,977 158,48,96,479 Net fixed assets 150,56,85,977 158,48,96,479 Depreciation as % of total revenue 3.84 5.35 Accumulated depreciation as a % of gross block 45.74 39.61

During the year the company added assets (net) worth Rs. 15.18 crores to the gross block. Most of the plant and machinery additions pertain to cost of Test equipment's and new facility at E-City Hyderabad. Addition of these equipment and facilities has improved the productivity of the Company directly and indirectly.

6. Investments

Investments represents amount invested in equity share capital of wholly owned subsidiary companies and Joint Venture Companies.

Particulars	As At
	31.03.2021	31.03.2020
	Rs.	Rs.
i) Equity instruments of Subsidiaries(unquoted):
1. 1,75,998 Equity Shares of Rs.10/- each fully paid up
In M/s. Bhavyabhanu Electronics Private Limited (Wholly owned subsidiary engaged in Automatic Assembly)	6,89,87,980	2,09,87,980
Deemed investment in Bhavyabhanu Electronics
Private Limited on account of corporate guarantee	1,05,35,000	-
2. 1,11,700 Equity shares of S\$ 10 each fully paid up in M/s. Aelius
Semiconductors Pte. Ltd, Singapore
(Wholly owned subsidiary engaged in Development and sale of
MMICs and based in Singapore) 3. 9,990 Equity Shares of Rs.10/- each fully paid up in Astra	5,52,41,674	5,52,41,674
Foundation	99,900	99,900
ii)Equity Instruments of Joint Ventures(unquoted):
1. 1,62,50,000(Previous Year 1,000 Equity Shares of
Rs.10/- each fully paid up in Astra Rafael Comsys
Private Limited (Floated for Joint Venture Operations with M/s. Rafael,Israel)	20,00,00,000	16,25,00,000
iii)Equity Instruments of Associate(unquoted):
Janyu Technologies Private Limited
1(2020: Nil) equity share of Rs. 10 each fully paid up	188	-
Janyu Technologies Private Limited
1,06,436(2020: Nil) Series E Compulsorily convertible preference
shares of Rs. 10 each fully paid up Janyu Technologies Private Limited	2,00,00,000	-
30,00,000(2020: Nil) Investor Series 1 Share warrants	5,000	-
Janyu Technologies Private Limited
20,00,000(2020: Nil) Investor Series 2 Share warrants	5,000
Total	35,48,74,742	23,88,29,554

7. Sundry Debtors.

Sundry debtors amount to Rs.254 cr at the end of the year as compared to Rs. 247cr for the previous year. They are at 43% of revenue for the year as compared to 54% for the previous year representing an outstanding of 157 days and 195 days of revenues for the respective years. However the outstanding days are to be read with skewed pattern of sales with majority of billing happening in the last quarter.

The company reviews health of receivables on monthly basis and has policy of writing off debts as bad after the review and recommendation by the management review committee. Through Estimated Credit loss mechanism the Company is providing provision for long outstanding dues though such debts may not be categorized as bad.

8. Cash and cash equivalents

The company is operating with multiple banks and the surplus funds if any are parked with them or with their associates. For meeting certain statutory requirements the company is maintaining current accounts with couple of other nationalized banks. The company's cash and cash equivalents is as follows.

Particulars	2021	2020
Cash and cash equivalents as a % of total assets	1.56	0.86
Cash and cash equivalents as a % of revenues	2.42	1.59

9. Loans and Advances

The advances paid for supplies, services and expenses represent the amount paid to both domestic and foreign vendors for supply of materials and services. The advances also include un-availed GST both on capital goods and raw materials.

The amount of income-tax paid represents the advance tax and TDS deducted less provision for tax.

10. Current liabilities

Sundry creditors for capital works, supplies represents the amount due at the end of the year for the capital goods and raw material supplied. Sundry creditors for services and expenses represent the amount due and payable for various expenses including the accrued salaries and other benefits of the employees.

Advances from customers represent the amount received as per the terms of purchase orders from the Defence and Space establishments and on export orders.

11. Provisions

Provisions represents provisions made for taxation, gratuity,leave encasement etc., Taxation provisions are shown net of advance tax for the years for which the assessments are pending.

The provision for gratuity and leave encasement is provided on the basis of actuarial valuation at the end of the financial year.

C. Others

Human Resources

We treat human resource as the most valuable asset. Employee satisfaction is essential to us. We commit to improve the quality of work life and employee satisfaction, while aligning the individual aspirations with the company objectives. Towards creating a vibrant and performance-oriented culture in the organization,several interventions are initiated. Online HR portal facilities employee interactions with HR department for all their requirements. Company has introduced on line leave approvals, annual appraisals, training programs etc., through the online portal. Overall employee relations are cordial and productive.

Internal Control Systems & Adequacy

The Company is committed to maintaining an effective system of internal control. The Company is conducting all its operations on ERP-SAP system. Successful usage of ERP-SAP system has facilitated management's objective of establishment of accurate, reliable and speedy compilation of financial information, safeguarding the assets and interest of the Company and ensuring compliance with laws and regulations.

The Company functions with well-defined budgets and has an effective management information system to enable the management to regularly review actual performance. The Company has also put in place a well-defined organization structure, clear authority levels and internal guidelines for conduction of business transactions.

M/s. Kirtane & Pandit LLP – Chartered Accountants, conducts Company's internal audit program which supplements the Company's internal control systems. To achieve full effectiveness, the scope of the internal audit function has an unrestricted range of coverage of the organizations operations and the internal auditor was given sufficient authority to access such records, assets and personnel as are necessary for proper fulfillment of his responsibilities. The Audit committee of the Board of Directors reviews the Internal Audit Reports at regular intervals and suggests implementation of best practices based on observations therein.

For and on behalf of the Board of Directors

S. Gurunatha Reddy M.V. Reddy DIN: 00003828 DIN: 00421401

Managing Director Joint Managing Director

Particulars Amount in Rs.lacs (except otherwise stated) 2016-17 2017-18 2018-19 2019-20 2020-21 Gross sales 45,213 43,877 33,261 46,713 60,928 Net Sales 42,508 36,054 28,616 46,158 58,915 Expenditure 32,564 25,100 25,638 37,780 52,496 Depreciation 2,407 2,703 2,857 2,532 2,307 Operating Profit (EBIT) 7,537 8,251 121 5,846 4,112 Interest 1,050 1,192 896 789 2,143 Other income 374 835 2,449 1,209 1,166 Profit before tax(PBT) 6,861 7,894 1,675 6,265 3,136 Tax including Deferred Tax 1,201 1,825 421 1,532 743 Profit after Tax(PAT) 5,656 6,069 1,254 4,734 2,393 Equity share Capital 1,732 1,732 1,732 1,732 1,732 No.of shares (Rs.2/- each) 8,66,11,675 8,66,11,675 8,66,11,675 8,66,11,675 8,66,11,675 Gross Fixed Assets 32,168 24,317 25,533 26,244 27,749 Net Fixed Assets 14,773 19,279 17,644 15,849 15,057 Raw material consumed 18,744 14,837 15,929 26,691 41,845 Man power cost 5,671 6,589 6,149 6,617 6,415 Sundry debtors 22,743 18,773 18,965 24,745 25,383 Networth 45,416 50,168 50,295 54,683 56,052 Capital Employed 49,128 49,749 47,197 49,522 51,316 EBDIT to Sales(%) 17.73 22.89 0.42 12.66 6.98 PBT to Sales(%) 16.14 21.89 5.85 13.57 5.32 PAT to Sales(%) 13.31 16.83 4.38 10.26 4.06 Sales to Net fixed Assets 2.88 1.87 1.62 2.91 3.91 Raw materials to Sales(%) 44.10 41.15 55.66 57.83 71.03 Man power cost to Sales(%) 13.34 18.28 21.49 14.34 10.89 Sundry debtors to Sales(%) 50.30 42.78 57.02 52.97 41.66 Return on Networth(%) 12.45 12.10 2.49 8.66 4.27 Return on Capital Employed(%) 11.51 12.20 2.66 9.56 4.66 Cash Earnings per share(CEPS)(Rs.) 9.31 10.13 4.75 8.39 5.43 Earnings per share(EPS)(Rs.) 6.53 7.01 1.45 5.47 2.76 Book value of the share(Rs.) 52.44 57.92 58.07 63.14 64.72

SELECT FINANCIAL DATA

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF ASTRA MICROWAVE PRODUCTS LIMITED

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Opinion

• 1. We have audited the accompanying standalone financial statements of Astra Microwave Products Limited ("the Company"), which comprise the balance sheet as at March 31, 2021, and the statement of Profit and Loss (including Other Comprehensive Income), statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
• 1. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, and total comprehensive income (comprising of net profit and other comprehensive income), changes in equity and its cash flows for the year then ended.

Basis for opinion

1. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

1. We draw your attention to Note 42 to the financial statements, which describes the management's assessment of the impact of the outbreak of Coronavirus (Covid-19) on the business operations of the Company. The management believes that no adjustments are required in the financial statements, however, in view of various preventive measures taken (such as complete lock-down restrictions by the Government of India, travel restrictions etc.) and highly uncertain economic environment, a definitive assessment of the impact on the subsequent periods is highly dependent upon circumstances as they evolve. Our opinion is not modified in respect of this matter.

Key audit matters

1. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter	How our audit addressed the key audit matter
Appropriateness of the Expected credit loss ("ECL") provision in respect of trade	Our procedures, in relation to testing of ECL provision recognized, included the following:
receivables carried at amortized cost. (Refer Note 8 and Note 38 to the standalone financial statements)	• Understanding and evaluating the design and testing the operating effectiveness of controls in respect of ECL provision for trade receivables carried at amortized cost.
The Company has trade receivables gross aggregating to Rs.26,232.76 lakhs as at March 31, 2021, in respect of which the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, and recognises expected lifetime losses	• Reading of the underlying contracts and invoices, as applicable to understand the nature of trade receivables, and the dates on which the payments fall due.

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

from initial recognition of the receivables. The provision for ECL as at March 31,	•	Assessing the appropriateness of the credit loss provisioning methodology used by the management, which
2021 is Rs.849.93 lakhs.		involves the use of historical trends such as cash collection,
This is determined as a key audit matter as determination of the ECL provision		performance of the current year against historical trends and the level of credit loss over time.
involved application of judgement by Management in respect of matters such as maximum contractual period of credit risk and probability of credit loss given the large number of aged receivables from government customers.		Based on the above procedures performed, we did not find any significant exceptions to the ECL provision recognised in respect of trade receivables carried at amortized cost.

Other Information

1. The Company's Board of Directors is responsible for the other information. The other information comprises the information included in the Director's report, but does not include the financial statements and our auditor's report thereon. The Director's report is expected to be made available to us after the date of this auditor's report. Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the Director's report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate action as applicable under the relevant laws and regulations.

Responsibilities of management and those charged with governance for the financial statements

• 1. The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
• 1. In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Company's financial reporting process.
• 1. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
• 1. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• 1. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
• 1. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
• 1. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on other legal and regulatory requirements

• 1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
• 1. As required by Section 143(3) of the Act, we report that:
• (a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
• (b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
• (c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and Cash Flow Statement dealt with by this Report are in agreement with the books of account.
• (d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
• (e) On the basis of the written representations received from the directors as on March 31, 2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164 (2) of the Act.

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

• (f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A".
• (g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
• i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements – Refer Note 33 to the financial statements;
• ii. The Company has long-term contracts as at March 31, 2021 for which there were no material foreseeable losses. There are no long-term derivative contracts as at March 31, 2021.
• iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
• iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2021.
• 1. The Company has provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

For Price Waterhouse Chartered Accountants LLP

Firm Registration Number: 012754N/N500016 Chartered Accountants

Sunit Kumar Basu

Partner Membership Number: 55000 UDIN: 21055000AAAAEO9693

Place: Hyderabad Date: May 26, 2021

Annexure A to Independent Auditors' Report

Referred to in paragraph 15(f)of the Independent Auditors' Report of even date to the members of Astra Microwave Products Limited on the standalone financial statements for the year ended March 31, 2021

Report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-section 3 of Section 143 of the Act

1. We have audited the internal financial controls with reference to financial statements of Astra Microwave Products Limited ("the Company") as of March 31, 2021 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

1. The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors' Responsibility

• 1. Our responsibility is to express an opinion on the Company's internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.
• 1. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
• 1. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system with reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

1. A company's internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial controls with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financial statements

1. Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial control controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

1. In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2021, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. Also refer paragraph 4 of our main audit report

For Price Waterhouse Chartered Accountants LLP

Firm Registration Number: 012754N/N500016 Chartered Accountants

Sunit Kumar Basu

Partner Membership Number: 55000 UDIN: 21055000AAAAEO9693

Place: Hyderabad Date: May 26, 2021

Annexure B to Independent Auditors' Report

Referred to in paragraph 14 of the Independent Auditors' Report of even date to the members of Astra Microwave Products Limited on the standalone financial statements as of and for the year ended March 31, 2021

• i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
• (b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of 3 years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.
• (c) The title deeds of immovable properties, as disclosed in Note 2 on fixed assets to the financial statements, are held in the name of the Company.
• ii. The physical verification of inventory have been conducted at reasonable intervals by the Management during the year.
• iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) and (iii)(c) of the said Order are not applicable to the Company.
• iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186 of the Companies Act, 2013 in respect of the loans and investments made, and guarantees and security provided by it.
• v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
• vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products.

We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, employees' state insurance, income tax, duty of customs, cess, goods and service tax and other material statutory dues, as applicable, with the appropriate authorities.

Further, for the period April 2020, the company has paid Goods and Service Tax and filed GSTR 3B (after the due date but) within the time lines allowed by Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs under the Notification No. 32/2020 – Central Tax dated April 3, 2020 on fulfillment of conditions specified therein.

(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of duty of excise as at March 31, 2021 which have not been deposited on account of a dispute, is as follows:

Name of the statute	Nature of dues	Amount (Rs.)	Period to which the amount relates	Forum where the dispute is pending
Central Board of Excise and Customs	Excise Duty	248.19 lakhs	2014-15	High Court, Telangana and Andhra Pradesh

viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government or dues to debenture holders as at the balance sheet date.

• ix. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.
• x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.
• xi. The Company has provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act. Also refer paragraph 16 of our main audit report.
• xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.
• xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act.
• xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
• xv. The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.
• xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.

For Price Waterhouse Chartered Accountants LLP

Firm Registration Number: 012754N/N500016 Chartered Accountants

Sunit Kumar Basu

Partner Membership Number: 55000 UDIN: 21055000AAAAEO9693

Place: Hyderabad Date: May 26, 2021

Balance Sheet as at March 31, 2021

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Particulars	Notes	As at March 31, 2021	As at March 31, 2020
ASSETS
Non-current assets
Property, plant and equipment	2	15,056.86	15,848.96
Capital work-in-progress	2	-	1,205.65
Investment in Subsidiaries	3 (a)	1,348.65	763.30
Investment in Joint Venture	3 (a)	2,000.00	1,625.00
Investment in Associate	3 (a)	200.10	-
Financial assets
i. Other financial assets	4(a)	1,032.66	1,123.23
Deferred tax assets	5	237.99	24.59
Non current tax assets	10(a)	-	535.30
Other non-current assets	6(a)	281.06	209.02
Total non-current assets		20,157.32	21,335.05
Current assets
Inventories	7	29,089.98	22,563.17
Financial assets
i. Investments	3 (b)	1,409.60	1,304.69
ii. Trade receivables	8	25,382.83	24,744.95
iii. Cash and cash equivalents	9A	1,426.73	735.92
iv. Other bank balances v. Other financial assets	9B 4(b)	2,400.47 1,271.91	4,320.11 35.15
Current tax assets (net)	10(b)	112.37	-
Other current assets	6(b)	10,296.46	10,698.44
Total current assets		71,390.35	64,402.43
Total assets		91,547.67	85,737.48
EQUITY AND LIABILITIES
Equity
Equity share capital	11	1,732.23	1,732.23
Other equity	12	54,319.28	52,951.26
Total equity		56,051.51	54,683.49
LIABILITIES
Non-current liabilities
Provisions	13	364.52	324.20
Total non-current liabilities Current liabilities		364.52	324.20
Financial liabilities
i. Borrowings	14	10,012.58	4,735.68
ii. Trade payables
(a) total outstanding dues of micro and small enterprises	15(a)	319.44	81.37
(b) total outstanding dues other than micro and small enterprises	15(b)	3,183.88	3,712.74
iii. Other financial liabilities	16	1,096.71	1,585.11
Provisions	13	191.62	174.36
Current tax liabilities (net)	17	92.60	249.75
Other current liabilities	18	163.39	129.75
Contract liabilities	19	20,071.42	20,061.03
Total current liabilities Total liabilities		35,131.64 35,496.16	30,729.79 31,053.99
Total equity and liabilities		91,547.67	85,737.48
Summary of Significant Accounting Policies	1

The above balance sheet should be read in conjunction with the accompanying notes This is the balance sheet referred to in our report of even date.

For Price Waterhouse Chartered Accountants LLP

For and on behalf of the Board of Directors

Firm Registration Number: 012754N/ N500016 Sunit Kumar Basu Partner Membership Number: 55000

Place : Hyderabad Date : May 26, 2021 AVINASH CHANDER Chairman DIN :- 05288690

M.V REDDY Joint Managing Director DIN : - 00421401

S. GURUNATHA REDDY Managing Director DIN : - 00003828

B V S NARASINGA RAO Chief Financial Officer

Statement of Profit and Loss for the year ended March 31, 2021

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Particulars	Notes	Year ended	Year ended
Income :		March 31, 2021	March 31, 2020
Revenue from Operations	20	58,915.36	46,158.10
Other Income	21	1,166.21	1,208.92
Total Income		60,081.57	47,367.02
Expenses:
Cost of materials consumed	22	45,619.43	32,484.82
Changes in inventories of finished goods and work-in-progress	23	(3,774.41)	(5,793.71)
Employees benefits expense	24	6,414.86	6,617.46
Finance costs	28	2,142.79	789.35
Depreciation	25	2,307.01	2,532.18
Other Expenses	26	4,236.10	4,471.35
Total Expenses		56,945.78	41,101.45
Profit/(Loss )before tax		3,135.79	6,265.57
Income tax expense	27(c)
- Current tax - Tax of earlier years		992.93 (32.16)	1,999.51 -
- Deferred tax		(218.17)	(467.89)
Net profit/(loss) for the year		2,393.19	4,733.95
Other comprehensive income :
Items that will not be reclassified to profit or loss
a) Remeasurements of post-employment benefit obligations		18.94	(112.92)
b) Income tax relating to items recognised in other comprehensive income		(4.77)	28.42
Total other comprehensive income/(loss) for the year, net of tax		14.17	(84.50)
Total comprehensive income/(loss) for the year		2,407.36	4,649.45
Earnings per equity share
Basic earnings per share	29	2.76	5.47
Diluted earnings per share		2.76	5.47
Summary of Significant Accounting Policies	1

The above statement of profit and loss should be read in conjunction with the accompanying notes

This is the statement of profit and loss referred to in our report of even date.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/ N500016 For and on behalf of the Board of Directors Sunit Kumar Basu Partner Membership Number: 55000 AVINASH CHANDER Chairman DIN :- 05288690 Place : Hyderabad Date : May 26, 2021 M.V REDDY

Joint Managing Director DIN : - 00421401

81

S. GURUNATHA REDDY Managing Director DIN : - 00003828

B V S NARASINGA RAO Chief Financial Officer

Statement of changes in equity for the year ended March 31, 2021

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

A. Equity Share Capital

Particulars	Notes	Amount
As at April 1, 2019		1,732.23
Changes in equity share capital during the year	11	-
As at March 31, 2020		1,732.23
Changes in equity share capital during the year	11	-
As at March 31, 2021		1,732.23

B. Other Equity

			Reserves and Surplus
Particulars	Notes	Securities	General	Retained	Total
		Premium	Reserve	Earnings
		Reserve
Balance as at April 01, 2019		6,856.20	7,482.80	34,223.85	48,562.85
Profit/(loss) for the year	12	-	-	4,733.95	4,733.95
Remeasurements of defined benefit plans		-	-	(84.50)	(84.50)
(net of tax)
Dividend paid		-	-	(216.53)	(216.53)
Dividend distribution tax paid		-	-	(44.51)	(44.51)
Balance as at April 01, 2020		6,856.20	7,482.80	38,612.26	52,951.26
Profit/(loss) for the year	12	-	-	2,393.19	2,393.19
Remeasurements of defined benefit plans
(net of tax)		-	-	14.17	14.17
Dividend paid		-	-	(1,039.34)	(1,039.34)
Tax on dividend paid		-	-	-	-
Balance as at March 31, 2021		6,856.20	7,482.80	39,980.28	54,319.28

The above Statement of changes in equity should be read in conjunction with the accompanying notes This is the Statement of changes in equity referred to in our report of even date.

For Price Waterhouse Chartered

Accountants LLP Firm Registration Number: 012754N/ N500016

Sunit Kumar Basu Partner

Membership Number: 55000

Place : Hyderabad Date : May 26, 2021

For and on behalf of the Board of Directors

AVINASH CHANDER

Chairman DIN :- 05288690 S. GURUNATHA REDDY Managing Director DIN : - 00003828

M.V REDDY Joint Managing Director DIN : - 00421401

B V S NARASINGA RAO Chief Financial Officer

Astra Microwave Products Limited

Cash Flow statement for the year ended March 31, 2021

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Cash flow from Operating Activities
Profit before tax	3,135.79	6,265.57
Adjustments for:
Depreciation expense	2,307.01	2,532.18
Finance cost	2,142.79	789.35
Interest income	(228.16)	(321.27)
Commission on Corporate guarantee	(105.35)	-
(Gain)/loss on sale of investments(net)	-	(250.33)
(Gain)/loss on fair valuation of financial assets	(104.90)	(82.04)
(Gain)/loss on disposal of property, plant and equipment	2.18	(4.87)
Unrealised exchange (gain)/loss	(93.34)	(387.65)
Changes in expected credit loss	(116.27)	378.45
Operating Profit Before Working Capital Changes	6,939.75	8,919.39
Changes in assets and liabilities:
(Increase) / Decrease in inventories	(6,526.82)	(9,519.34)
(Increase) / Decrease in trade receivables	(388.51)	(5,688.85)
(Increase) / Decrease in other financial assets	0.80	(32.91)
(Increase) / Decrease in other non-current assets	(90.97)	5.50
(Increase) / Decrease in other current assets	401.97	(8,115.77)
Increase/(Decrease) in trade payable	(296.52)	1,436.48
Increase/(Decrease) in provisions	76.52	63.70
Increase/(Decrease) in other financial liabilities	33.18	104.12
Increase/(Decrease) in Contract liabilities	(674.21)	14,429.88
Increase/(Decrease) in other current liabilities	33.63	(321.67)
Cash generated from/(used in) operating activities	(491.18)	1,280.53
Income tax paid	(715.97)	(1,760.40)
Net cash generated from/(used in) operating activities	(1,207.15)	(479.87)
Cash flow from Investing Activities
Payments for property, plant and equipment	(335.46)	(1,841.17)
Proceeds from sale of property, plant and equipment	1.25	138.12
Purchase of current investments	-	(21,500.00)
Proceeds from sale of current investments	-	22,551.14
proceeds from maturity of/(Investment in) margin money deposits against bank gurantees	606.05	(2,219.33)
Interest received on margin money deposits	353.65	147.62
Investment in Equity Shares of Subsidiaries	(480.00)	-
Investment in Equity Shares of Joint ventures	(375.00)	-
Investment in Equity Shares of Associate	(200.10)	-

Cash Flow statement for the year ended March 31, 2021

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Net cash flow/(used in) Investing Activities	(429.61)	(2,723.62)
Cash flow from Financing Activities
Repayment of long term borrowings	(475.44)	(961.11)
Proceeds from short term borrowings	74,487.81	81,424.66
Repayment of short term borrowings	(69,210.91)	(76,694.29)
Interest paid	(1,434.55)	(276.34)
Dividend paid	(1,039.34)	(216.53)
Dividend tax paid	-	(44.51)
Net cash from /(used in) Financing Activities	2,327.57	3,231.88
Net Increase/(Decrease) in Cash & Cash equivalents	690.81	28.39
Cash & Cash Equivalents at the Beginning	735.92	707.53
Cash & Cash equivalents at the End	1,426.73	735.92
Non cash investing activity
- Commission on corporate guarantee provided to Bhavyabhanu Electronics Private Limited	105.35	-

Reconciliation of cash and cash equivalents as per the Statement of cashflows

Particulars	As at March 31, 2021	As at March 31, 2020
Cash and Cash Equivalents (Note 9A)
In current accounts	423.52	731.91
in deposit accounts	1,000.00
Cash on hand	3.21	4.01

This is the Cashflow statement referred to in our report of even date.

For Price Waterhouse Chartered Accountants LLP

Firm Registration Number: 012754N/ N500016

Sunit Kumar Basu Partner

Membership Number: 55000

Place : Hyderabad Date : May 26, 2021

For and on behalf of the Board of Directors

AVINASH CHANDER Chairman DIN :- 05288690

Joint Managing Director DIN : - 00421401

M.V REDDY

S. GURUNATHA REDDY Managing Director DIN : - 00003828

B V S NARASINGA RAO Chief Financial Officer

T. ANJANEYULU

Company Secretary FCS :- 5352

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Background

Astra Microwave Products Limited was incorporated in 1991 and it got listed under NSE and BSE in the year 1994. The company is engaged in the business of design, development and manufacture of sub-systems for Radio Frequency and microwave systems used in defense, space, meteorology and telecommunication.

Note 1: Significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.

Note 1.1 Basis of preparation of financials statements

(i) Compliance with Ind AS :

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (the 'Act') and other relevant provisions of the Act.

(ii) Historical cost convention

The financial statements have been prepared on the historical cost basis except for the following :

• Certain financial assets and liabilities that is measured at fair value;
• Defined benefit plans plan assets measured at fair value;"

(iii) New and amended standards adopted by the company

The company has applied the following standards amendments to INDAS for the first time for their annual reporting period commencing 1 April 2020:

• Definition of Material amendments to Ind AS 1 and Ind AS 8
• Definition of a Business amendments to Ind AS 103
• COVID-19 related concessions amendments to Ind AS 116
• Interest Rate Benchmark Reform amendments to Ind AS 109 and Ind AS 107

The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

(iv) Recent Pronouncements

On March 24, 2021, the Ministry of Corporate Affairs ("MCA") through a notification, amended Schedule III of the Companies Act, 2013. The amendments revise Division I, II and III of Schedule III and are applicable from April 1, 2021. Key amendments relating to Division II which relate to companies whose financial statements are required to comply with Companies (Indian Accounting Standards) Rules 2015 are:

Balance Sheet:

• * Lease liabilities should be separately disclosed under the head 'financial liabilities', duly distinguished as current or non-current.
• * Certain additional disclosures in the statement of changes in equity such as changes in equity share capital due to prior period errors and restated balances at the beginning of the current reporting period.
• * Specified format for disclosure of shareholding of promoters.
• * Specified format for ageing schedule of trade receivables, trade payables, capital work-in-progress and intangible asset under development.
• * If a company has not used funds for the specific purpose for which it was borrowed from banks and financial institutions, then disclosure of details of where it has been used.
• * Specific disclosure under 'additional regulatory requirement' such as compliance with approved schemes of arrangements, compliance with number of layers of companies, title deeds of immovable property not held in name of company, loans and advances to promoters, directors, key managerial personnel (KMP) and related parties, details of benami property held etc.

Statement of Profit and Loss

* Additional disclosures relating to Corporate Social Responsibility (CSR), undisclosed income and crypto or virtual currency specified under the head 'additional information' in the notes forming part of the standalone financial statements.

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

The amendments are extensive and the Company will evaluate the same to give effect to them as required by law.

Note 1.2 : Use of estimates

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates, judgements and assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported amounts of the assets and liabilities, the disclosure of the contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the management becomes aware of these changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

Note 1.3 : Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of each of the company are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The financial statements are presented in Indian rupee (INR), which is Company functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

Note 1.4 : Revenue recognition

(i) Sale of products:

Revenue from sale of products is recognised when the control of the products has transferred, being when the products are delivered to the customer. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.

Revenue from sales is based on the price specified in the sales contracts, net of volume discounts and returns if any at the time of sale. Accumulated experience will be used to estimate and provide for the discounts, using the expected value method, and revenue is recognised only to the extent that it is highly probable that the significant reversal will not occur. A refund liability (included in other current liabilities) is recognised for expected volume discounts payable to customers in relation to sales made until the end of the reporting period. The contract price is adjusted for the finance component where the period between the advance received from the customer and transfer of the promised goods to the customer exceeds one year.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before payment is due.

The Company provides maintenance services to customers under fixed price contracts. Revenue from sale of services is recognised in the accounting period in which the services are rendered

(iii) Financing component:

The Company recognises significant financing component in the revenue contract where the period between the advance received from the customer and transfer of the promised goods to the customer exceeds one year. The finance component is adjusted to the contract price to arrive at the transaction price to be considered for revenue recognition.

Note 1.5 : Government grants

"Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the company will comply with all attached conditions.

Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.

Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

assets and presented within other income."

Note 1.6 : Income tax

The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The company measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

Note 1.7 : Leases

Effective from April 1, 2019:

As a lessee:

From 1 April 2019, leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the company. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date
• amounts expected to be payable by the company under residual value guarantees
• the exercise price of a purchase option if the company is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reflects the company exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the company, the lessee's incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which has a similar payment profile to the lease, then the company use that rate as a starting point to determine the incremental borrowing rate

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. Payments associated with short-term leases and all leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

term of 12 months or less.

As a lessor:

Lease income from operating leases where the company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature. The company did not need to make any adjustments to the accounting for assets held as lessor as a result of adopting the new leasing standard. "

Note 1.8 : Impairment of assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

Note 1.9 : Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

Note 1.10 : Trade receivables

Trade receivables are the amount due from the customers for the sale of goods and services rendered in the ordinary course of business. Trade receivables are initially recognised at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at the fair value. The company holds trade receivables for the receipt of contractual cash flows and therefore measures them subsequently at the amortised cost using effective interest rate method.

Note 1.11 : Inventories

Raw materials and stores, work in progress and finished goods are stated at the lower of cost and net realisable value. Cost of raw materials comprises cost of purchases. Cost of work-in-progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Costs are assigned to individual items of inventory on weighted average basis. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Note 1.12 : Investments and other financial assets

i) Classification

The company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
• those measured at amortised cost.

The classification depends on the entity's business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. The company reclassifies debt investments when and only when its business model for managing those assets changes.

ii) Recognition

Regular way purchase and sales of financial assets are recognised on trade-date, the date on which the

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

company commits to purchase or sale the financial assets.

iii) Measurement

At initial recognition, the company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Debt instruments

Subsequent measurement of debt instruments depends on the company's business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the company classifies its debt instruments:

Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss within other gains/(losses) in the period in which it arises. Interest income from these financial assets is included in other income.

Equity instruments

The company subsequently measures all equity investments at fair value. Where the company's management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends from such investments are recognised in profit or loss as other income when the company's right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognised in other gain/ (losses) in the statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value."

iii) Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 38 details how the company determines whether there has been a significant increase in credit risk.

For trade receivables only, the company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

iv) Derecognition of financial assets

A financial asset is derecognized only when

• The company has transferred the rights to receive cash flow from the financial asset or
• retains the contractual rights to receive the cash flows of the financial assets, but assumes a contractual obligation to pay cash flows to one or more recipients

Where the entity has transferred an asset, the company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset is

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

not derecognized.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the company has not retained control of the financial asset. Where the company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

v) Income recognition

Interest income

Interest income from the debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses.

Dividends

Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the company, and the amount of the dividend can be measured reliably.

Note 1.13 : Derivatives

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. These derivative contracts are not designated as hedges and are accounted for at fair value through profit or loss and are included in other income.

Note 1.14 : Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty.

Note 1.15 : Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Depreciation/ amoritisation methods, estimated useful lives and residual value

Depreciation is provided on written down value method considering the useful lives of the assets that have been determined based on technical evaluation done by the management which are inline with the useful lives prescribed under Schedule II of the Companies Act, 2013. In respect of solar power generating plant the management has estimated the useful life as 25 years. The residual values are not more than 5% of the original cost of the asset.

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in statement profit and loss under other income."

Note 1.16 : Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within credit period after recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method.

Note 1.17 : Borrowings

Borrowings are initially recognized at fair value, net of transaction cost incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in statement of profit and loss under other income.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of financial statements for issue, not to demand payment as consequence of the breach.

Note 1.18 : Borrowings costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing cost eligible for capitalization.

Other borrowings costs are expensed in the period in which they are incurred.

Note 1.19 : Provisions, Contingent Assets and Contingent Liabilities

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

The Company does not recognize a contingent liability but discloses its existence in the financial statements.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

The Company does not recognize a contingent asset but discloses its existence in the financial statements if the inflow of economic benefits is probable.

Note 1.20 : Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefit are discounted using the government bond yield rates at the end of the reporting period that have terms approximating to the terms of the related obligations. Remeasurements as a result of the experience adjustments and changes in actuarial assumptions are recognized in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

(iii) Post-employment obligations

The company operates the following post-employment schemes:

• (a) Defined benefit plans gratuity; and
• (b) Defined contribution plans provident fund.

a. Defined benefit plans - gratuity

The liability or assets recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. The benefits which are denominated in currency other than INR, the cash flows are discounted using market yields determined by reference to high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and change in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.

Asset ceiling will be recognised the present value of any economic benefits available in the form of refunds from the plan or reduces in future contributions in accordance with the terms and conditions of the plan and accordingly recognise the defined benefit assets.

b. Defined contribution plans - provident fund

The company pays provident fund contributions to publicly administered funds as per local regulations. The company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.

Bonus plans:

Company recognises a liability and an expense for bonuses. The company recognises a provision where contractually obliged or where contractually obliged or where there is a past practice that has created a constructive obligation.

Note 1.21 : Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Note 1.22 : Dividends

Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

period.

Note 1.23 : Earnings per share

(i) 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, adjusted for bonus elements in equity shares issued during the year.

(ii) 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."

Note 1.24 : Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Company has identified Managing Director and Joint Managing Director as chief operating decision makers.

Note 1.25 : Research and Development expenditure:

Research expenditure and development expenditure that do not meet the below criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as asset in a subsequent period.

• i) It is technically feasible to complete the project so that it will be available for use
• ii) Management intends to complete the project and use or sell it
• iii) There is an ability to use or sell the project
• iv) It can be demonstrated how the project will generate probable future economic benefits
• v) Adequate technical, financial and other resources to complete the development and to use or sell the project are available and
• vi) The expenditure attributable to the project during its development can be reliably measured.

Note 1.26 : Investment in Subsidiaries/Joint ventures/Associates

Investments in subsidiaries and Joint ventures are recognized at cost less Impairment if any.

Investments is Associate are recognized at fair value through profit and loss.

Note 1.27 : Critical estimates and judgements:

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company's accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The area involving critical estimates or judgements is:

• 1. Estimation of defined benefit obligation (Refer Note 31)
• 1. Significant financing component (Refer Note 20)
• 1. Provision for expected credit loss (Refer Note 38)

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

Note 2 : Property, Plant and Equipment (All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Particulars			Gross carrying value			Accumulated depreciation			Net carrying amount
	1 April 2020 As at	Additions	Deletions / transfers	31 Mar 2021 As at	1 April 2020 As at	For the Year	disposals On	31 Mar 2021 As at	31 Mar 2021 As at
Other than Assets given on lease
Land	2,045.97	-	-	2,045.97	-	-	-	-	2,045.97
Buildings	6,716.88	856.87	-	7,573.75	1,786.75	541.03	-	2,327.78	5,245.97
Plant & Machinery	12,239.39	443.53	9.98	12,672.94	5,613.23	1,257.98	7.03	6,864.18	5,808.76
Electrical Installations	366.10	42.45	0.09	408.46	192.79	52.08	-	244.87	163.59
Solar Power Plant	669.19	-	-	669.19	253.23	46.90	-	300.13	369.06
Air Conditioners	437.46	29.18	-	466.64	259.06	46.60	-	305.66	160.98
Office Equipment	320.67	29.41	-	350.08	236.66	43.61	-	280.27	69.81
Furniture & Fixtures	381.50	51.74	-	433.24	224.57	46.76	-	271.33	161.91
Computers	1,167.56	65.16	-	1,232.72	983.21	116.96	-	1,100.17	132.55
Vehicles	110.13	-	3.27	106.86	47.82	18.86	2.88	63.80	43.06
Wind Electric Generator	1,245.47	-	-	1,245.47	523.45	91.93	-	615.38	630.09
Assets given on lease:
Buildings	88.52	-	-	88.52	28.98	5.66	-	34.64	53.88
Plant & Machinery	447.08	-	-	447.08	239.66	38.03	-	277.69	169.39
Electrical Installations	2.66	-	-	2.66	1.96	0.20	-	2.16	0.50
Air Conditioners	0.24	-	-	0.24	0.19	0.02	-	0.21	0.03
Office Equipment*	0.15	-	-	0.15	0.10	-	-	0.10	0.05
Computers*	0.30	-	-	0.30	0.09	-	-	0.09	0.21
Furniture & Fixtures	5.19	-	-	5.19	3.75	0.39	-	4.14	1.05
Total	26,244.46	1,518.34	13.34	27,749.46	10,395.50	2,307.01	9.91	12,692.60	15,056.86
Capital work-in-progress	1,205.65		1,205.65	-	-	-	-	-	-

Refer note no. 33 for Capital commitments of the company Refer note no. 35 for the Assets pledged as security

* The amount of depreciation for the year for office equipment and Computers are below the rounding off norm adopted by the company

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 2 : Property, Plant and Equipment

			Gross carrying value			Accumulated depreciation			Net carrying amount
Particulars	1 April 2019 As at	Additions	Deletions / transfers	31 March 2020 As at	1 April 2019 As at	For the Year	disposals On	31 March 2020 As at	31 March 2020 As at
Other than Assets given on
Land	2,045.97	-	-	2,045.97	-	-	-	-	2,045.97
Buildings	6,715.60	1.28	-	6,716.88	1,273.29	513.46	-	1,786.75	4,930.13
Plant & Machinery	11,696.15	666.42	123.18	12,239.39	4,192.92	1,421.86	1.55	5,613.23	6,626.16
Electrical Installations	340.09	26.01	-	366.10	139.47	53.32	-	192.79	173.31
Solar Power Plant	669.19	-	-	669.19	200.21	53.02	-	253.23	415.96
Air Conditioners	433.07	4.39	-	437.46	201.31	57.75	-	259.06	178.40
Office Equipment	304.24	16.43	-	320.67	178.72	57.94	-	236.66	84.01
Furniture & Fixtures	353.83	27.67	-	381.50	178.85	45.72	-	224.57	156.93
Computers	1,064.01	128.58	25.03	1,167.56	857.60	140.39	14.78	983.21	184.35
Vehicles	120.91	-	10.78	110.13	28.07	29.15	9.40	47.82	62.31
Wind Electric Generator	1,245.47	-	-	1,245.47	417.78	105.67	-	523.45	722.02
Assets given on lease:
Buildings	88.52	-	-	88.52	22.73	6.25	-	28.98	59.54
Plant & Machinery	447.08	-	-	447.08	192.87	46.79	-	239.66	207.42
Electrical Installations	2.66	-	-	2.66	1.68	0.28	-	1.96	0.70
Air Conditioners	0.24	-	-	0.24	0.16	0.03	-	0.19	0.05
Office Equipment*	0.15	-	-	0.15	0.10	-	-	0.10	0.05
Computers	0.30	-	-	0.30	0.09	-	-	0.09	0.21
Furniture & Fixtures	5.19	-	-	5.19	3.20	0.55	-	3.75	1.44
Total	25,532.67	870.78	158.99	26,244.46	7,889.05	2,532.18	25.73	10,395.50	15,848.96
Capital work-in-progress	243.39	962.26	-	1,205.65	-	-	-	-	1,205.65
mount of depreciation for the year for office equip * The a			ment	and Co	mputers are below the rounding off norm adopted by the co			mpany

Refer note no. 33 for Capital commitments of the company Refer note no. 35 for the Assets pledged as security

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 3 (a): Investments

	As at	As at
Particulars	March 31, 2021	March 31, 2020
A. Non-current investments (Refer Note a below)
Investments carried at cost
(i) Equity instruments of Subsidiaries (unquoted)	1,348.65	763.30
(ii) Equity instruments of Joint venture (unquoted)	2,000.00	1,625.00
Investment carried at FVTPL
(i) Equity instruments in Associate (unquoted)*	-	-
(ii) Preference shares of Associate (unquoted)	200.00	-
(iii) Investment in share warrants of Associate (unquoted)	0.10	-
Total	3,548.75	2,388.30

* Amount is below the rounding off norm adopted by Company.

Note 3(b): Investments

	As at	As at
Particulars	March 31, 2021	March 31, 2020
B. Current investments (Refer Note b below)
Investments carried at fair value through profit and loss
Investments in Mutual Funds (quoted)	1,409.60	1,304.69
Total	1,409.60	1,304.69
	As at	As at
Particulars	March 31, 2021	March 31, 2020
Investments carried at cost
(i) Equity instruments of Subsidiaries (unquoted)
Bhavyabhanu Electronics Private Limited	689.88	209.88
4,975,998 (2020 : 175,998 ) equity shares of Rs. 10/- each fully paid up
Deemed investment in Bhavyabhanu Electronics Private Limited on account of corporate guarantee	105.35	-
AELIUS Semiconductors Pte. Ltd. Singapore	552.42	552.42
111,700 (2020 : 111,700 ) equity shares of SGD 10 each fully paid up
Astra Foundation	1.00	1.00
9,990 (2020 : 9,990 ) equity shares of Rs. 10/- each fully paid up
(ii) Equity instruments of Joint venture (unquoted)
Astra Rafael Comsys Private Limited (Joint Venture w.e.f June 18, 2019)	2,000.00	1,625 .00
20,000,000 (2020 : 16,250,000 ) equity shares of Rs. 10/- each fully paid up
Investment carried at FVTPL
(i) Equity instruments of Associate (unquoted)
Janyu Technologies Private Limited*	-	-
1 (2020: Nil) equity share of Rs. 10/- each fully paid up
(ii) Preference shares of Associate (unquoted)	200 .00	-
Janyu Technologies Private Limited

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

106,436 (2020: Nil ) Series E Compulsorily convertible preference shares of Rs. 10/- each fully paid up
(iii) Investment in share warrants of Associate (unquoted)
Janyu Technologies Private Limited	0.05	-
3,000,000 (2020: Nil) Investor Series 1 Share warrants
Janyu Technologies Private Limited	0.05	-
2,000,000 (2020: Nil) Investor Series 2 Share warrants
Total	3,548.75	2,388.30
Aggregate book value of unquoted investments	3,548.75	2,388.30

* Investment amount is below the rounding off norm adopted by the company

Note b: Details of current investments

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Investments in Mutual Funds (quoted)
a) 3,739,927.244 (2020 : 3,739,927.244) Units of SBI Credit Risk Fund - Regular growth	1,281.04	1,185.76
b) 234,894.521 (2020 - 234,894.521) Units of SBI Magnum Income Fund - Regular Plan - Growth	128.56	118.93
Total current investment	1,409.60	1,304.69
Aggregate of quoted current investments and market value thereof	1409.60	1304.69
Aggregate book value of unquoted investments -Non-current	3,548.75	2,388.30
Aggregate book value and market value of quoted investments - Current	1,409.60	1,304.69
Impairment of Investments recognised	Nil	Nil

Note 4 : Other Financial Assets

	As at	As at
Particulars	March 31, 2021	March 31, 2020
a) Non-current, carried at amortised cost
Unsecured, considered good
Security deposits	79.68	80.48
Deposits with banks against bank guarantees
- remaining maturity period of more than 12 months	945.38	1,042.75
Interest Accrued	7.60	-
Total Non-current other financial assets	1032.66	1,123.23
b) Current	7.6	0
Interest Accrued	109.03	-
Deposits with banks against bank guarantees
- remaining maturity period of less than 12 months	1,161.75	-
Derivatives carried at fair value through profit or loss
- Foreign-exchange forward contract	1.13	35.15
Total current other financial assets	1,271.91	35.15

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 5 : Deferred tax liabilities/ (Assets) (net)

				As at	As at
Particulars				March 31, 2021	March 31, 2020
Deferred tax Liabilities				735.55	864.21
Deferred tax Assets				(973.54)	(888.80)
Deferred tax liabilities/ (Assets) (net)				(237.99)	(24.59)
2020-2021	Opening Balance	Recognised in profit or loss		Recognised in Other comprehensive income	Closing balance
Deferred tax liabilities/(assets) in relation to
Depreciation	811.82	(180.97)		-	630.85
On Fair value gain of Mutual funds	51.51		26.40	-	77.91
Forward Contracts	0.88		(0.60)	-	0.28
Deemed investment on account of corporate guarantee	-		26.51	-	26.51
Deferred tax liabilties	864.21	(128.66)		-	735.55
Provision for gratuity	(31.49)		(16.41)	4.77	(43.13)
Provision for Leave Encashment	(93.99)		(2.84)	-	(96.83)
Deferred revenue	(156.78)		(54.34)	-	(211.12)
Provision for Expected credit loss	(243.18)		29.26	-	(213.92)
Indexation benefit on land	(363.36)		(45.18)	-	(408.54)
Deferred tax assets	(888.80)		(89.51)	4.77	(973.54)
Net Deferred tax liabilities/(assets)	(24.59)	(218.17)		4.77	(237.99)

2019-2020	Opening Balance	Recognised in profit or loss	Recognised in Other comprehensive income	Closing balance
Deferred tax liabilities/(assets) in relation to
Depreciation	1,450.66	(638.84)	-	811.82
On Fair value gain of Mutual funds	43.14	8.37	-	51.51
Forward Contracts	-	0.88	-	0.88
Deferred tax liabilties	1,493.80	(629.59)	-	864.21
Provision for gratuity	-	(3.07)	(28.42)	(31.49)
Provision for Leave Encashment	(106.14)	12.15	-	(93.99)
Deferred revenue	(154.63)	(2.15)	-	(156.78)
Provision for Expected credit loss	(217.15)	(26.02)	-	(243.18)
Indexation benefit on land	(330.68)	(32.68)	-	(363.36)
MAT Credit entitlement	(213.47)	213.47	-	-
Deferred tax assets	(1,022.07)	161.70	(28.42)	(888.80)
Net Deferred tax liabilities	471.73	(467.89)	(28.42)	(24.59)

Note:

During the previous year a new tax rate has been enacted, wherein the company had an option to choose a lower tax rate (i.e. 22%) if they choose to fore go certain benefits (like the MAT credit available with the company). Accordingly, the company has

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

chosen to adopt the lower tax rate. Due to this there was a significant reversal of Deferred tax liability recognised in the earlier years and there was a net Deferred tax asset recognised in the previous year.

• MAT credit foregone - Rs. Nil (2020: Rs. 213.47 lakhs)

• impact on other items due to change in rate - Rs. Nil (2020: Rs. 284.21 lakhs)

Note 6 : Other Asstes

	As at	As at
Particulars	March 31, 2021	March 31, 2020
a) Non-current
Unsecured, considered good
Capital advances	2.22	21.15
Deposits with government departments	84.64	81.93
Prepaid expenses	194.20	105.94
Total non-current assets	281.06	209.02
b) Current:
Unsecured, considered good
Current:
Prepaid expenses	391.38	459.70
Balance with government authorities	2,465.31	1,521.87
Contract Assets	10.85	-
Export incentives receivable	393.92	-
Advance for expenses
- to related parties	1,510.60	5,420.79
- to others	5,524.40	3,296.08
Total current assets	10,296.46	10,698.44

Note 7 : Inventories

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Raw materials	12,555.67	9,775.10
Packing material	22.19	50.36
Work-in-progress	16,238.57	12,737.71
Finished goods	273.55	-
Total	29,089.98	22,563.17

Raw materials include good-in-transit of Rs. 124.73 lakhs (2020: Rs. 383.12 lakhs)

Write-downs of inventories to net realisable value amounted to Rs. 30.99 lakhs (2020: Rs. 10.85 lakhs). These were recognised as an expense during the year and included in 'Changes in inventories of finished goods and work-in-progress' in statement of profit and loss.

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 8: Trade receivables

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Trade receivables
Unsecured, considered good
- Related parties	188.58	118.11
- Others	25,194.25	24,626.84
Unsecured, considered doubtful	849.93	966.20
Less: Expected Credit losses	(849.93)	(966.20)
Total	25,382.83	24,744.95

Note 9: Cash and Bank Balances 9A. Cash and Cash Equivalents

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Balances with Banks
- in current accounts	423.52	731.91
- in deposit accounts	1,000.00	-
Cash on hand	3.21	4.01
Total	1,426.73	735.92

There are no repatriation restrictions with regard to cash and cash equivalents as at the end of the reporting period and prior periods

9B. Other Bank balances

Particulars	As at March 31, 2021	As at March 31, 2020
Deposits with banks against bank guarantees Earmarked balances with banks :	2,325.42	4,237.97
Unpaid dividend account	75.05	82.14
Total	2,400.47	4,320.11

Deposits with banks above includes Fixed Deposits under lien amounting to Rs. 368.23 lakhs (2020: Rs. 352.51 lakhs)

10. Tax assets (net)

	As at	As at
Particulars	March 31, 2021	March 31, 2020
a. Non-current
Advance income tax (net of provision for income tax of Rs. Nil (2020: Rs.	-	535.30
434.04 lakhs)
Total Non-current asset	-	535.30
b. Current
Income Tax Refund Receivabale	112.37	-
Total	112.37	-

Note 11: Equity share capital

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Authorised share capital:
150,000,000 (2020 : 150,000,000) equity shares of Rs. 2/- each	3,000.00	3,000.00
Total	3,000.00	3,000.00
Issued and subscribed capital:
86,611,675 (2020 : 86,611,675) equity shares of Rs. 2/- each fully paid	1,732.23	1,732.23
Total	1,732.23	1,732.23

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

a) Details of shares held by each shareholder holding more than 5% shares in the company

		As at March 31, 2021 As at March 31, 2020
Particulars	Number of shares	% holding of equity shares	Number of shares	% holding of equity shares
Ratnabali Investment Pvt.Ltd.,	46,34,272	5.35%	46,34,272	5.35%
Sundaram Mutual Fund	30,38,837	3.51%	47,17,671	5.45%

b) Movement in equity share capital

	As at March 31, 2021		As at March 31, 2020
Particulars	Number of shares	Amount	Number of shares	Amount
At the beginning of the year	8,66,11,675	1,732.23	8,66,11,675	1,732.23
Add: Number of shares issued and subscribed during the year	-	-	-	-
At the end of the year	8,66,11,675	1,732.23	8,66,11,675	1,732.23

c) Terms and rights attached to equity shares:

The company has one class of equity shares having a par value of Rs. 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

The Company has not issued any share as fully paid up without payment being received in cash or as bonus shares nor any share has been bought back by the Company since its incorporation.

Note 12: Other equity

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Reserves and surplus:
General reserve	7,482.80	7,482.80
Securities premium reserve	6,856.20	6,856.20
Retained earnings	39,980.28	38,612.26
Total	54,319.28	52,951.26
	As at	As at
General Reserve	March 31, 2021	March 31, 2020
Opening balance	7,482.80	7,482.80
Add: Movement during the year	-	-
Closing balance	7,482.80	7,482.80
	As at	As at
Securities premium reserve	March 31, 2021	March 31, 2020
Opening balance	6,856.20	6,856.20
Add: Movement during the year	-	-
Closing balance	6,856.20	6,856.20

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

	As at	As at
Retained earnings	March 31, 2021	March 31, 2020
Opening balance	38,612.26	34,223.85
Add: Net profit for the year	2,393.19	4,733.95
Add: Remeasurements of defined benefit plans (net of tax)	14.17	(84.50)
Dividend paid	(1,039.34)	(216.53)
Dividend Tax paid	-	(44.51)
Closing balance	39,980.28	38,612.26

Nature and Purpose of reserves.

Securities premium reserves:

Securities premium reserves is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Act.

General reserve:

General reserve is used for strengthening the financial position and meeting future contingencies and losses.

Note 13 : Provisions*

	As at	As at
Particulars	March 31, 2021	March 31, 2020
a) Non-current
Provision for compensated absences	297.56	291.80
Provision for gratuity	66.96	32.40
Total non-current provisions	364.52	324.20
b) Current
Provision for compensated absences	87.17	81.63
Provision for gratuity	104.45	92.73
Total current provisions	191.62	174.36

*Refer note 31

Note 14 : Current Borrowings

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Secured
From banks
Working Capital loans
HDFC Bank	6,000.00	-
Axis bank	3,000.00	-
Cash Credit facility
HDFC Bank	-	2,806.73
Canara Bank	987.43	981.61
Axis Bank	25.15	947.34
Total	10,012.58	4,735.68

Refer Note No. 35 for the assets pledged as security

Nature of security:

Prime Security:

Pari Passu first charge on stocks and receivables and other chargeable current assets of the Company.

Collateral Security:

Pari Passu first charge on entire unencumbered Fixed Assets of the company.

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Pari Passu second charge on the fixed assets of the company funded by other term lenders.

Personal Guarantee:

Personal Guarantee of the former Managing Director and former Chief Operating officer who are also founders of the Company. Terms of repayment:

• i) Working capital Loans taken from Banks are repayable within a period of 90 days to 180 days from the date of taking the loan.
• ii) Cash credits from banks are repayable on demand
• iii) Interest rates are normally reset on an yearly basis. Present rate of interest ranges between 7.95% to 9.55%.

Note 15 (a): Trade Payables : Dues to Micro and Small enterprises

	As at
Particulars	March 31, 2021	March 31, 2020
Dues to micro enterprises and small enterprises (Refer note 15(c))	319.44	81.37
Total	319.44	81.37

Note 15(b): Trade Payables : Dues to Other than Micro and Small enterprises

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Trade Payables: Others	3,183.88	3,712.74
Total	3,183.88	3,712.74

Note 15(c): The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED Act'). The disclosures pursuant to the said MSMED Act are as follows:

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Principal amount due to suppliers registered under the MSMED Act and remaining unpaid as at year end	319.44	81.37
Interest due to suppliers registered under the MSMED Act and remaining unpaid as at year end	-	-
Principal amounts paid to suppliers registered under the MSMED Act, beyond the appointed day during the year	-	-
Interest paid, other than under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year	-	-
Interest paid, under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year	-	-
Interest due and payable towards suppliers registered under MSMED Act, for payments already made	-	-
Further interest remaining due and payable for earlier years.	-	-

Note 16: Other financial liabilities

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Current maturities of long term debt	-	475.44
(Refer note below)
Unpaid Dividend	75.05	82.14
Interest accrued but not due	16.40	13.73

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Capital creditors	30.25	71.97
Employee benefits payable	866.63	907.90
Dues to directors	45.28	16.50
Liability for expenses	52.88	-
Retention monies	10.22	17.43
Total	1,096.71	1,585.11

Nature of security:

a. Term loan from HDFC Bank is secured by First exclusive charge on the Fixed Assets funded by this term loan. Second pari passu charge on entire unencumbered fixed assets of the company along with term lenders. Pari Passu second charge on all chargeable current assets of the company along with other term lenders and personal guarantee of the former Managing Director and former Chief Operating Officer who are also founders of the Company.

b. Aggregate amount of loans Guaranteed by former Managing Director and former Chief Operating Officer who are also founders of the Company is Rs. Nil (2020: Rs. 475.44 lakhs).

Terms of repayment:

i) Term loan from HDFC bank is repayable in 12 quarterly instalments starting after one year from the date of first disbursement (date of first draw down was June 5, 2017) along with an interest as mutually agreed with the bank payable on a monthly basis. Interest rates are normally reset on an yearly basis.

Note 17: Current tax liabilities (net)

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Provision for income tax (net of advance tax and Tax deducted at source Rs. 903.02 lakhs (2020: Rs. 1,751.77 lakhs))	92.60	249.75
Total	92.60	249.75

Note 18: Other current liabilities

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Statutory dues payable	163.39	129.75
Total	163.39	129.75

Note 19: Contract liabilities

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Current
Advance from customers	19,232.59	19,438.11
Deferred revenue	838.83	622.92
Total	20,071.42	20,061.03

Movement of Advance from customers

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Opening balance	19,438.11	4,688.48
Received during the year	11,299.08	21,280.46
Advances offset on account of sales	(11,504.60)	(6,530.83)
Closing balance	19,232.59	19,438.11

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Movement of Deferred Revenue

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Opening balance	622.92	442.18
Interest Accrued	684.60	500.50
Released to Revenue during the year	(468.69)	(319.76)
Closing balance	838.83	622.92

Revenue recognised in relation to contract liabilities

The following table shows how much of the revenue recognised in the current reporting period relates to carried forward contract liabilities

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Deferred Revenue	468.69	319.76
Total	468.69	319.76

Note 20: Revenue from Operations

Particulars	Year ended	Year ended
	March 31, 2021	March 31, 2020
Revenue from contracts with customers
-Sale of Products	57,191.80	43,461.29
-Sale of Services	1,513.96	2,418.08
	58,705.76	45,879.37
Other Operating Revenue
-Wind Electrical Power	166.39	217.10
-Operating Lease Rent	43.21	61.63
	209.60	278.73
Total	58,915.36	46,158.10

The following table show unsatisfied performance obligations resulting from fixed price long term Sale of Products.

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Aggregate amount of the transaction price allocated to long term Sale of Products	1,56,117.09	1,38,275.36

The aggregate amount of transaction price allocated to unsatisfied performance obligations represents the open orders which are not yet delivered and the entity will recognise this revenue as the goods are delivered or services are rendered, which is expected to occur over the next 36 months.

Reconciliation of revenue recognised with contract price:

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Contract price	58,237.08	45,559.61
Adjustment for:
Financing component	468.68	319.76
Revenue from contract with customers	58,705.76	45,879.37

Critical Judgements in recognising revenue

The Company has considered that the advance received from the customers more the one year before the transfer of control of the goods has the significant financing component. As a consequence, the company adjusted the transaction price to reflect the finance component from such customer advances.

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 21: Other Income

Particulars	As at March 31, 2021	As at March 31, 2020
Interest income*	268.31	321.27
Export incentives	543.92	28.56
Net gain on disposal of property, plant and equipment	-	4.87
Net gain on financial assets mandatorily measured at fair value through profit or loss(Mutual Funds)	104.90	82.04
Net gain on sale of current investments(Mutual Funds)	-	250.33
Foreign exchange fluctuations	-	507.21
Commission on Corporate Guarantee	105.35	-
Miscellaneous Receipts	27.46	14.64
Changes in expected credit loss in receivables	116.27	-
Total	1,166.21	1,208.92

Interest income includes interest on income tax refund of Rs. 40.15 lakhs (2020: Nil)

Note 22: Cost of materials consumed

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Raw materials and Packing materials at the beginning of the year	9,825.46	6,099.83
Add: Purchases	48,371.83	36,210.45
Less: Raw materials and Packing materials at the end of the year	(12,577.86)	(9,825.46)
Total	45,619.43	32,484.82

Note 23: Changes in inventories of finished goods and work-in-progress

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Opening Balance:
Finished goods		94.46
Work-in-progress	12,737.71	6,849.54
Total(A)	12,737.71	6,944.00
Closing Balance:
Finished goods	273.55	-
Work-in-progress	16,238.57	12,737.71
Total(B)	16,512.12	12,737.71
Changes in inventories of finished goods and work-in-progress (A)-(B)	(3,774.41)	(5,793.71)

Note 24: Employee benefit expenses

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Salaries, wages and bonus	5,533.21	5,596.92
Contribution to Provident Fund	290.32	295.42
Contribution to Employee State Insurance	18.22	20.71
Gratuity	95.22	77.36

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Leave encashment	130.03	182.78
Directors' remuneration	178.90	246.56
Staff welfare expenses	168.96	197.71
Total	6,414.86	6,617.46

Note 25: Depreciation expense

Particulars	As at	As at
	March 31, 2021	March 31, 2020
Depreciation of property, plant and equipment	2,307.01	2,532.18
Total	2,307.01	2,532.18

Note 26: Other expenses

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Consumption of Stores and spares	57.03	-
Power and fuel	315.33	325.83
Repairs and maintenance
Plant and machinery	441.34	492.55
Buildings	42.13	24.91
Computers	310.61	214.87
Others	397.01	300.27
Operating lease rent	63.45	48.47
Rates and taxes	73.98	116.29
Insurance	145.11	70.13
Legal and professional fees	283.35	460.94
Travelling and conveyance	560.01	673.79
Printing and stationery	40.28	53.57
Telephone and communication charges	58.12	64.13
Auditors Remuneration (Refer note 27 (a))	29.20	28.00
Business promotion expenses	38.63	102.69
Donations*	0.50	0.25
Corporate social responsibility expenditure (refer note 27(b))	106.51	110.60
Security charges	168.59	152.89
Payments to non-executive directors	40.40	51.26
Bank charges and commission	213.84	610.18
Selling and distribution expenses	78.25	60.93
Changes in expected credit loss in receivables	-	378.45
Foreign exchange fluctuations	600.13	-
Net loss on disposal of property, plant and equipment	2.18	-
Miscellaneous expenses	170.12	130.35
Total	4,236.10	4,471.35

Donations above include Rs. 0.50 lakhs (2020 - Rs. 0.25 lakhs) paid to the Communist Party of India (Marxist).

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

27(a). Auditors Remuneration

Particulars	As at	As at
	March 31, 2021	March 31, 2020
(a) To statutory auditors
Statutory Audit fee (including fees for quarterly reviews)	28.00	28.00
Certification fees	1.20	-
Total	29.20	28.00

27(b). Corporate Social Responsibility expenditure

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Amount required to be spent as per Section 135 of the Act	105.15	109.92
Amount spent during the year on :
1. Construction/ acquisition of any assets
2. On Purposes other than (1) above	106.51	110.59

Includes 2021: Rs. Nil (2020 - Rs. 20.82 lakhs) contributed to Astra Foundation. Refer note 30

Note 27(c) : Tax Expense

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Current Tax
Current tax on profits for the year	992.93	1,999.51
Adjustments for current tax of prior periods	(32.16)	-
Total current tax expense	960.77	1,999.51
Deferred Tax
Decrease (increase) in deferred tax assets	(89.51)	161.70
(Decrease) increase in deferred tax liabilities	(128.66)	(629.59)
Total deferred tax expense/(benefit)	(218.17)	(467.89)
Income Tax Expense	742.60	1,531.62

Note 27(d) : Reconciliation of tax expenses and accounting profit multiplied by tax rate:

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Profit before income tax expense	3,135.79	6,265.57
Income tax rate	25.17%	25.17%
Income tax expense	789.22	1,576.92
Tax effect on amounts which are not taxable in calculating taxable
income:
i) Effect of tax on disallowed expenses	19.91	(53.82)
ii) Tax of Earlier years	(32.16)	-
iii) Indexation on Land	(45.18)	-
iv) Others	10.81	8.52
Income tax recognised in statement of profit and loss	742.60	1,531.62

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 28. Finance cost

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Interest expense
On term loans	12.28	94.03
On working capital loans	746.98	192.81
On others	21.95	2.01
On advances received from customers	684.60	500.50
Other finance charges	676.98	-
Total	2,142.79	789.35

Net Debt Reconciliation

	As at	As at
Particulars	March 31, 2021	March 31, 2020
Cash and cash equivalents	1,426.73	735.92
Liquid investments	1,409.60	1,304.69
Current borrowings	(10,012.58)	(4,735.68)
Current maturities of long term debt	-	(475.44)
Interest accrued	(16.40)	(13.73)
Net Debt	(7,192.65)	(3,184.24)

	Assets		Liabilities from financing activities
Particulars	Cash and Cash equivalents	Liquid Investments	Current borrowings	Non-current borrowings including Current maturities	Interest Accrued	Total
Net Debt as on 01 April 2019	707.53	2,023.46	(5.31)	(1,436.55)	(11.67)	1,277.46
Cash flows	28.39	(800.81)	(4,730.37)	961.11	-	(4,541.68)
Interest Expense	-	-	-	-	(286.84)	(286.84)
Interest paid	-	-	-	-	284.78	284.78
Fair value adjustments	-	82.04	-	-	-	82.04
Net Debt as on 31 March 2020	735.92	1,304.69	(4,735.68)	(475.44)	(13.73)	(3,184.24)
Cash flows	690.81	-	(5,276.90)	475.44	-	(4,110.65)
Interest Expense	-	-	-	-	(759.26)	(759.26)
Interest paid	-	-	-	-	756.59	756.59
Fair value adjustments	-	104.91	-	-	-	104.91
Net Debt as on 31 March 2021	1,426.73	1,409.60	(10,012.58)	-	(16.40)	(7,192.65)

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 29. Earnings per share

	Year ended	Year ended
Particulars	March 31, 2021	March 31, 2020
Profit after tax	2,393.19	4,733.95
Basic:
Weighted average number of equity shares	8,66,11,675	8,66,11,675
Earnings per share (Rs.)	2.76	5.47
Diluted:
Earnings per share (Rs.)	2.76	5.47

Note 30. Related party disclosures

A. List of Related Parties:
Name of the Related Party	Nature of Relationship
Bhavyabhanu Electronics Private Limited	Subsidiary
Aelius Semiconductors Pte. Ltd., Singapore	Subsidiary
Astra Foundation (Section 8 Company)	Subsidiary
Astra Rafael Comsys Private Limited	Joint Venture Company
Janyu Technologies Private Limited	Associate
Mr. S. Krishna Reddy	Relative of a director
Key Managerial Persons (KMP):
Mr. S. Gurunatha Reddy,	Managing Director w.e.f. April 01, 2019
Mr. M. Venkateshwar Reddy,	Joint Managing Director .w.e.f. April 01, 2019
Mr. T. Anjaneyulu	Company Secretary
Mr. BVS Narasingaa Rao	Chief Financial Officer w.e.f June 24, 2019

B. Details of outstanding balances as at the year end receivable/(payable):

Name of the related parties	Nature of transactions	As at March 31, 2021	As at March 31, 2020
	Investment in equity shares	689.88	209.88
Bhavyabhanu Electronics Private	Advance to subsidiary company for supply of materials	1,489.60	5,420.58
Limited	Amount receivable from subsidiary company against sales of goods	-	0.21
	Value of Corporate guarantee given for borrowings	4,300.00	2,800.00
Aelius Semiconductors Pte. Ltd.,	Investment in equity shares	552.42	552.42
Singapore	Amount receivable from subsidiary company against sales of goods	25.81	27.87
Astra Foundation	Investment in Shares	1.00	1.00
	Investment in equity shares*	-	-
	Investment in CCPS	200.00	-
Janyu Technologies Private Limited	Investment in Share Warrants	0.10	-
	Advance given	21.00	-
	Amount receivable against sales of goods	162.77	90.24
	Value of Corporate guarantee	400.00	-
Astra Rafael Comsys Private Limited	Advance received	1,499.98	1,658.84
	Investment in Shares	2,000.00	1,625.00

* Amount is below the rounding off norm adopted by the company.

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

C. Details of transactions during the year:

Name of the related parties	Nature of balance	Year ended March 31,2021	Year ended March 31,2020
	Purchase of Raw materials / Job Work Charges	16,436.50	13,247.44
	Investment in equity shares	480.00	-
	Advance given	15,110.00	18,790.00
Bhavyabhanu Electronics Private	Advance adjusted	19,040.98	14,150.68
Limited	Sale of goods	-	0.18
	Corporate guarantee given	1,500.00	-
	Reimbursement of expenses paid by the Company on behalf of the subsidiary	32.85	36.19
	Rent Received	43.21	57.43
Aelius Semiconductors Pte. Ltd., Singapore
	Sales of goods	16.81	20.83
	Royalty received	14.05	12.07
Astra Foundation	Amount paid to Astra Foundation towards CSR Expenditure	-	20.82
Astra Rafael Comsys Pvt.Ltd	Investment in Shares*	375.00	-
	Sales of goods	106.69	225.29
	Rent Received	-	4.20
	Investment in equity shares*	-	-
Janyu Technologies Private Limited	Investment in CCPS	200.00	-
	Investment in Share Warrants Advance given	0.10 21.00	- -
Mr. S. Gurunatha Reddy	Director's remuneration	89.45	127.71
Mr. M. Venkateshwar Reddy	Director's remuneration	89.45	123.24
Mr. S. Krishna Reddy	Remuneration to relative of a director	20.13	19.00
Mr. T. Anjaneyulu	Company secretary's remuneration	16.76	15.71
Mr. BVS Narasingaa Rao	CFO's remuneration	19.33	18.67

* Amount is below the rounding off norm adopted by the company.

Note 31 Employee benefit Obligations

a) Leave obligations

The leave obligation covers the Company's liability for sick and earned leave. Refer Note-13 for details of provision made in this regard and Note-24 for details of expense during the year.

b) Defined Contribution Plan

The Company has defined contribution plan namely Provident fund. Contributions are made to provident fund at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined such plan for the financial year 2020-21 is Rs. 290.32 lakhs and for the financial year 2019-20 is Rs. 295.42 lakhs.

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

C) Defined Benefit Plans:

Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company makes annual contribution to the company gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

Defined benefit plans – as per actuarial valuation on March 31, 2021

i. Expense recognised in the Statement of Profit and Loss for the year ended March 31, :

	Funded Plan
Particulars	Gratuity
	2021	2020
1. Current service cost	87.72	82.38
2. Interest cost (net)	7.50	(5.02)
Total expense/(gain) recognised in P&L	95.22	77.36

ii. Included in other Comprehensive Income

Particulars	2021	2020
1. Actuarial (Gain)/Loss on account of :
- Financial Assumptions	(7.44)	50.90
- Experience Adjustments	(11.50)	62.02
Total expense/(gain) recognised in OCI	(18.94)	112.92

iii. Net Liability/(Asset) recognised in the Balance Sheet as at 31st March

Particulars	2021	2020
1. Present value of defined benefit obligation as at 31st March	908.14	813.66
2. Fair value of plan assets as at 31st March	736.73	688.53
3. (Surplus)/Deficit	171.41	125.13
4. Current portion of the above	104.45	92.73
5. Non current portion of the above	66.96	32.40

iv. Changes in Obligation and fair value of plan assets during the year

Particulars	2021	2020
A. Change in the obligation during the year ended 31st March
1. Present value of defined benefit obligation at the beginning of the year	813.66	675.81
2. Expenses Recognised in Profit and Loss Account
- Current Service Cost	87.72	82.38
- Past Service Cost
- Interest Expense (Income)	53.87	47.45
3. Recognised in Other Comprehensive Income
- Actuarial Gain (Loss) arising from:
i. Demographic Assumptions	-	-
ii. Financial Assumptions	(7.44)	50.90
iii. Experience Adjustments	5.65	60.14
4. Benefit payments	(45.32)	(103.02)
5. Present value of defined benefit obligation at the end of the year	908.14	813.66

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

B. Change in fair value of assets during the year ended 31st March
1. Fair value of plan assets at the beginning of the year	688.53	740.72
2. Expected return on plan assets
- Interest Income	46.37	52.47
3. Recognised in Other Comprehensive Income - Experience adjustments
- Actual Return on plan assets in excess of the expected return	17.15	(1.88)
4. Contributions by employer (including benefit payments recoverable)	30.00	0.24
5. Benefit payments	(45.32)	(103.02)
6. Fair value of plan assets at the end of the year	736.73	688.53

The key assumptions used in accounting for gratuity are as below

V. Actuarial assumptions	March 31, 2021	March 31, 2020
1. Interest rate/Discount rate	6.91%	6.81%
2. Rate of increase in compensation	6.00%	6.00%
3. Attrition rate	6.70%	6.70%

The expected rate of return on plan assets is based on the average long term rate of return expected on investments of the fund during the estimated term of obligation.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

vi. Sensitivity analysis

Resonably possible changes at the reporting date to one of the relevant acturial assumptions would have affected the defined benefit obligation to the amounts shown below:

Particulars	For the year ended March 31, 2021	For the year ended March 31, 2020
Discount rate (If changed by 1%)
Increase	839.39	750.19
Decrease	987.76	887.42
Salary escalation rate (If changed by 1%)
Increase	991.82	890.93
Decrease	834.62	746.10

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Expected cash flow and duration of the plan

	Gratuity plan
Particulars	As at March 31, 2021	As at March 31, 2020
Weighted average duration of DBO	13.11	13.48
1. Expected employer contributions in the next year	171.41	-
2. Expected benefit payments
Year 1	104.45	92.73
Year 2 - 5	297.55	267.62
Beyond 5 years	386.95	318.05

VII. Weighted Average Asset Allocations at end of current period

Particulars	As at March 31, 2021	As at March 31, 2020
Fund held with Life Insurance Corporation of India	100%	100%
Total	100%	100%

viii. Risk exposure

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

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

Note 32

Segment information

The company operates in a single product segment. Additional disclosures required as per Ind AS 108, "Operating Segments" are included below:

a. Geographical Segment revenue by location of customers

The following is an analysis of the Group's revenue and results from continuing operations by

		Segment Revenue
	Year ended March 31, 2021	Year ended March 31, 2020
In India	30,428.75	30,529.11
Outside India*	28,486.61	15,628.99
Total	58,915.36	46,158.10

*Segment revenue from outside India does not include deemed exports to Export Oriented Units

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

b. Geographical Segment assets

	As at March 31, 2021	As at March 31, 2020
Segment assets
India
- Financial Instruments	4,028.99	2,959.11
- Others	15,337.92	17,798.93
Outside India
- Financial Instruments	552.42	552.42
- Others	-	-
Consolidated total assets	19,919.33	21,310.46

Major Customers contributing more than 10 percent of revenue

	As at	As at
	March 31, 2021	March 31, 2020
Elta Systems Limited	28,196.68	11,050.56
Gallium Arsenide Enabling TechCe(GA	-	10,974.20
Space Applications Centre	-	5,142.60
DCX Cable Assemblies Pvt., Ltd.,	6,203.12	-

Note 33: Commitments and contingent liabilities

	As at March 31, 2021	As at March 31, 2020
A. Contingent Liabilities in respect of:
a) Corporate guarantee on behalf of Bhavyabhanu Electronics Private Limited, Subsidiary Company	4,300.00	2,800.00
b) Corporate guarantee on behalf of Astra Rafael Comsys Pvt. Ltd, Joint Venture company	400.00	400.00
c) Disputed excise duty matters *	248.19	248.19
Total Contingent liabilities	4,948.19	3,448.19
B. Estimated amount of capital contracts remaining to be executed and not provided for	27.41	121.61
Total Capital commitments	27.41	121.61

*The company has received a favorable order against demand raised by Commissioner of Customs, Central Excise and Service Tax. However, the same has been disclosed as contingent liability as the department has preferred an appeal before Hon'ble High Court, Telangana and Andhra Pradesh.

Note 34: Events Occurring after the reporting period :

Refer to Note 40 for the final dividend recommended by the directors which is subject to approvals of shareholders in the ensuing annual general meeting.

Note 35 : Assets pledged as security (All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

The carrying amount of assets pledged as security for current and non-current borrowings are:

Particulars	As at March 31, 2021	As at March 31, 2020
Current
Financial assets
Trade receivables	25,382.83	24,744.95
Other Bank balances	2,325.42	4,237.97
Other financial assets	1,271.91	35.15
Non-financial assets
Inventories	29,089.98	22,563.17
Total current assets pledged as security (A)	58,070.14	51,581.24
Non-current
Property, plant and equipment	15,056.86	15,848.96
Capital work-in-progress	-	1,205.65
Other financial assets	952.98	1,042.75
Total non-current assets pledged as security (B)	16,009.84	18,097.36
Total assets pledged as security ((A) + (B))	74,079.98	69,678.60

Note 36: Research and development

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Expenditure at Department of Scientific and Industrial Research (DSIR) approved R&D centres
Revenue expenditure	2,249.69	2,224.60
	2,249.69	2,224.60

37. Financial Instruments

Fair value

The management assessed that trade receivables, cash and cash equivalents, other bank balances, other financial assets, short term borrowings, trade payables and other financial liabilities approximate their carrying amounts largely due to the short-term maturities or interest bearing nature 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 Company has determined fair value of Non current financial assets and liabilities using discounted cash flow of future projected cash flow.

Set out below, is a comparison by class of the carrying amounts and fair value of the Company's financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Financial instruments by category

The carrying value and fair value of financial instruments by categories as of March 31, 2021 were as follows:

			Financial assets/liabilities at fair value through profit or loss
Particulars	Fair value	Amortised			Total carrying	Total fair
	hierarchy	cost	Designated upon initial recognition	Mandatory	value	value
Assets:
Non-current
(a) Other financial assets	3	1,032.66	-	-	1,032.66	1,032.66
Current
(a) Trade receivables	3	25,382.83	-	-	25,382.83	25,382.83
(b) Cash and cash equivalents	3	1,426.73	-	-	1,426.73	1,426.73
(c) Other Bank Balances	3	2,400.47	-	-	2,400.47	2,400.47
(d) Investments	1	-	-	1,409.60	1,409.60	1,409.60
(e) Derivative asset	2	-	-	1.13	1.13	1.13
(f) Other Financial Assets	3	1,270.78	-	-	1,270.78	1,270.78
(g) Investment in Associate	3		-	200.10	200.10	200.10
Total		31,513.47	-	1,610.83	33,124.30	33,124.30
Liabilities:
Current
Financial liabilities
(a) Borrowings	3	10,012.58	-	-	10,012.58	10,012.58
(b) Trade payables	3	3,503.32	-	-	3,503.32	3,503.32
(c) Other financial liabilities	3	1,096.71	-	-	1,096.71	1,096.71
Total		14,612.61	-	-	14,612.61	14,612.61

The carrying value and fair value of financial instruments by categories as of March 31, 2020 were as follows:

	Financial assets/liabilities at fair value through profit or loss Fair value Amortised			Total carrying	Total fair
Particulars	hierarchy	cost	Designated upon initial Mandatory recognition		value	value
Assets:
Non-current
(a) Other financial assets	3	1,123.23	-	-	1,123.23	1,123.23
Current
(a) Trade receivables	3	24,744.95	-	-	24,744.95	24,744.95
(b) Cash and cash equivalents	3	735.92	-	-	735.92	735.92
(c) Other Bank balances	3	4,320.11	-	-	4,320.11	4,320.11
(d) Investments	1	-	-	1,304.69	1,304.69	1,304.69
(e) Other Financial Assets	2	-	-	35.15	35.15	35.15
Total		30,924.21	-	1,339.84	32,264.05	32,264.05

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Liabilities:
Current
Financial liabilities
(a) Borrowings	3	4,735.68	-	-	4,735.68	4,735.68
(b) Trade payables	3	3,794.11	-	-	3,794.11	3,794.11
(c) Other financial liabilities	3	1,585.11	-	-	1,585.11	1,585.11
Total		10,114.90	-	-	10,114.90	10,114.90

Fair value hierarchy

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 (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

38. Financial risk management

Risk management framework

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's management risk policy is set by the Board. The Company's activities expose it to a variety of financial risks : credit risk, liquidity risk and market risk relating to foreign currency exchange rate, Price and Interest rates. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. A summary of the risks have been given below.

Credit risk

Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to maturity financial assets.

The Company primarily deals with Public Sector Enterprises and Government undertakings. Regarding credit exposure from customers, the Company has a procedure in place aiming to minimize collection losses.

The carrying amount of trade receivables, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents company's maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate.

An impairment analysis is performed at each reporting date on an individual basis for major receivables. In addition, a large number of minor receivables are grouped into homogeno us groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds deposits as security from certain customers to mitigate credit risk."

a. Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate and are derived from revenue earned from customers primarily located in India. Company has a process in place to monitor outstanding receivables on a monthly basis.

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

The Company's exposure to credit risk for trade and other receivables where simplified approach of recognising expected credit loss is recognised

	Carrying amount
Particulars	As at March 31, 2021	As at March 31, 2020
Trade receivables (Gross)	26,232.76	25,711.15
Less: Expected credit loss	(849.93)	(966.20)
Trade receivables as per the financial statements	25,382.83	24,744.95

The Company's exposure to credit risk for financial assets other than trade receivables, where 12 month expected credit loss is recognised

	Carrying amount
Particulars	As at March 31, 2021	As at March 31, 2020
Cash and cash equivalents	1,426.73	735.92
Other bank balances	2,400.47	4,320.11
Investment in associate	200.10	-
Investment in Mutual funds	1,409.60	1,304.69
Other financial assets	2,304.57	1,158.38
Less: Expected credit loss	-	-
Trade receivables as per the financial statements	7,741.47	7,519.10

Movement in Expected Credit loss

Particulars	As at March 31, 2021	As at March 31, 2020
Opening balance	966.20	587.75
Movement in Expected Credit loss	(116.27)	378.45
Net re-measurement of ECL	849.93	966.20

Significant estimates and judgements

Provision for expected credit loss on Trade receivables

The allowance for doubtful debts are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the provision for expected credit loss calculation, based on the Company's past history, existing market conditions as well as forward looking estimtes at the end of each reporti ng period. The company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables. Following are the financial assets carried at amortised cost at the reporting date.

Particulars	As at March 31, 2021	As at March 31, 2020
Trade receivables	25,382.83	24,744.95
Cash and cash equivalents	1,426.73	735.92
Other bank balances	2,400.47	4,320.11
Other financial assets	2,303.44	1,123.23
	31,513.47	30,924.21

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, that it will always have sufficient liquidity to meet its liabilities when due. The Company's Management is responsible for liquidity, funding as well as settlement management.

The Company monitors the level of expected cash inflows on financial assets together with expected cash outflows on trade payables and other financial liabilities. As at March 31, 2021, the expected cash flows from financial assets excluding restricted balances is Rs. 26,793.56 lakhs (As at March 31, 2020: Rs. 26,084.79 lakhs).

Following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.

(i) Financing arrangements

The company has access to the following undrawn borrowing facilities at the end of the reporting period:

Particulars	As at March 31, 2021	As at March 31, 2020
Expiring within one year (bank overdraft and other facilities)	6,487.43	4,740.79

(ii) Maturities of financial liabilities

As at March 31, 2021

Particulars	within 12 months	1-5 Years	More than five years	Total carrying amount
Borrowings	10,012.58	-	-	10,012.58
Trade payables	3,503.32	-	-	3,503.32
Other financial liabilities (excluding trade payables)	1,096.71	-	-	1,096.71
	14,612.61	-	-	14,612.61

As at March 31, 2020

Particulars	within 12 months	1-5 Years	More than five years	Total carrying amount
Borrowings	4,735.68	-	-	4,735.68
Trade payables	3,794.11	-	-	3,794.11
Other financial liabilities (excluding trade payables)	1,585.11	-	-	1,585.11
	10,114.90	-	-	10,114.90

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Financial instruments affected by market risk include loans and borrowings and trade receivables. The sensitivity analyses in the following sections relate to the position as at March 31, 2021 and March 31, 2020.

The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other post- retirement obligations; provisions; and the non-financial assets and liabilities.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2021 and 31 March 2020."

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the trade/ other payables and trade/other receivables. The risks primarily relate to fluctuations in US Dollar and EURO against the functional currency of the Company. The Company's exposure to foreign currency changes for all other currencies is not material. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.

The Company's foreign currency payables and receivables are as follows

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Exposure to currency risk

The summary quantitative data about the Company's gross exposure to currency risk is as follows:

Particulars	As at		Currency	As at
		March 31, 2021		March 31, 2020
			Amount Amount		Amount in
		in foreign	in functional	Amount in foreign	functional
		currency	currency	currency	currency
Amounts Receivable	USD	100.78	7,368.16	104.22	7,885.71
	EURO	0.31	26.93	-	-
Amounts Payable	USD	21.93	1,603.10	26.66	2,017.29
	EURO	1.69	144.60	1.29	106.77

Sensitivity analysis:

A reasonably possible strengthening (weakening) of the USD or EURO, against INR would have affected the measurement of financial instruments denominated in foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecasts sales and purchases.

Particulars	Profit and loss		Equity, net of tax
31-Mar-2021 (5% change)	Strengthening of foreign currency	Weakening of foreign currency	Strengthening of foreign currency	Weakening of foreign currency
USD	448.56	(448.56)	335.67	(335.67)
EURO	8.58	(8.58)	6.42	(6.42)
31-Mar-2020 (5% change)
USD	495.15	(495.15)	370.53	(370.53)
EURO	5.34	(5.34)	3.99	(3.99)

Price Risk

The Company invests its surplus funds primarily for short tenor in debt mutual funds measured at fair value through profit or loss. The following table demonstrate the sensitivity to a reasonably possible change in the price of the investments before tax:

Particulars	Increase/(decrease) in profit before tax
	31 March 2021	31 March 2020
increase by 1%	14.10	13.05
decrease by 1%	(14.10)	(13.05)

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. As the Company has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the company's profit before tax is affected through the impact on floating rate borrowings, as follows:

Particulars	31 March 2021	31 March 2020
Change in interest rate
-increase by 50 basis points	3.80	1.43
-decrease by 50 basis points	(3.80)	(1.43)

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

39. Capital Management

The Company's objectives when managing capital are to

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders and
• Maintain an optimal capital structure to reduce the cost of capital.

As at March 31, 2021, the Company has only one class of equity shares. Consequent to the above capital structure there are no externally imposed capital requirements.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is debt divided by total capital. The Company includes within debt, interest bearing loans and borrowings.

Capital gearing ratio

Particulars	As at March 31, 2021	As at March 31, 2020
Borrowings
Current - Short term borrowings	10,012.58	4,735.68
Current maturities of long term borrowings	-	475.44
Debt	10,012.58	5,211.12
Equity
Equity share capital	1,732.23	1,732.23
Other equity	54,319.28	52,951.26
Total capital	56,051.51	54,683.49
Net debt to equity ratio	18%	10%

40. Dividends

Particulars	Amount
a) Proposed dividend Rs. 1.20/- per fully paid-up share subject to the approval of shareholders in ensuing annual general meeting.	1,039.34
b) Final dividend declared for the year ended March 31, 2020 and paid during the year ended March 31, 2021 - Re. 1.20/- per fully paid-up share	1,039.34
c) Final dividend declared for the year ended March 31, 2019 and paid during the year ended March 31, 2020 - Re. 0.25/- per fully paid-up share	216.53

41. Short term Lease

a) Nature of lease

The company is entered into one lease agreement as lessee for its office premises

b) Short term lease exemption

The lease is cancel label at option of both the parties by giving 3 months notice in advance. Accordingly, the company has identified the lease as a short term lease and opted the short term lease exemption.

c) Rent expense on account of short term leases

The rent expense on account of short term leases is Rs. 63.45 lakhs. (refer note no. 26)

d) Cash out flow

The lease rent paid is Rs. 63.45 lakhs

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

42. Impact of Covid-19 pandemic on the business:

The spread of COVID-19 has severely impacted businesses around the globe. In many countries, including India, there has been severe disruption to regular business operations due to lock-downs, disruptions in transportation, supply chain, travel bans, quarantines, social distancing and other emergency measures. The Company is engaged in the business of design, development and management of sub-systems for Radio frequency and microwave systems used in defence, space, meteorology and telecommunication.

Except for the delay due to the lockdown announced by the government, the Company has managed uninterrupted services to its Customers till date and will continue the same for the next 3 to 6 weeks based on Raw Material stocks available at the plant. The Company is able to continue their operations following all precautions and compliance to COVID19 instructions.

Further, the company has carried out an assessment of the following based on certain assumptions, cumulative knowledge and understanding of the business, current indicators of future economic conditions:

• a) Going concern based on the available cash flows and approved annual operating plan;
• b) The recoverability of receivables considering past experience and communication with the customers;
• c) Investments in Subsidiaries and Joint venture, associate, inventories and carrying value of property, plant and equipment - expects to recover the carrying amount of these assets as at the balance sheet date.

Based on the assessment management has concluded that there are no material adjustments required in the financial statements.

Management believes that it has taken into account all the possible impact of known events arising from COVID 19 pandemic in the preparation of the financial statements. However, the impact assessment of COVID 19 is a continuing process given the uncertainties associated with its nature and duration. The company will continue to monitor any material changes to future economic conditions.

43. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosures.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/ N500016

Sunit Kumar Basu Partner Membership Number: 55000

Place : Hyderabad Date : May 26, 2021 For and on behalf of the Board of Directors

AVINASH CHANDER Chairman DIN :- 05288690

M.V REDDY Joint Managing Director DIN : - 00421401

S. GURUNATHA REDDY Managing Director DIN : - 00003828

B V S NARASINGA RAO Chief Financial Officer

INDEPENDENT AUDITOR'S REPORT

To the Members of Astra Microwave Products Limited Report on the Audit of the Consolidated Financial Statements

Opinion

• 1. We have audited the accompanying consolidated financial statements of Astra Microwave Products Limited (hereinafter referred to as the 'Holding Company") and its subsidiaries (Holding Company and its subsidiaries together referred to as "the Group"), its associate and joint venture (refer Note 44 to the attached consolidated financial statements), which comprise the consolidated Balance Sheet as at March 31, 2021, and the consolidated Statement of Profit and Loss (including Other Comprehensive Income) , the consolidated statement of changes in equity and the consolidated cash flows Statement for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and other explanatory information prepared based on the relevant records. (here in after referred to as "the consolidated financial statements").
• 1. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group, its associate and joint venture as at March 31, 2021, of consolidated total comprehensive income (comprising of net profit and other comprehensive income), consolidated changes in equity and its consolidated cash flows for the year then ended.

Basis for Opinion

1. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group, its associate and joint venture in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in India in terms of the Code of Ethics issued by ICAI and the relevant provisions of the Act, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in sub-paragraph 15 and 16 of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter:

1. We draw your attention to Note 42 to the financial statements, which describes the management's assessment of the impact of the outbreak of Coronavirus (Covid-19) on the business operations of the Company. The management believes that no adjustments are required in the financial statements, however, in view of various preventive measures taken (such as complete lock-down restrictions by the Government of India, travel restrictions etc.) and highly uncertain economic environment, a definitive assessment of the impact on the subsequent periods is highly dependent upon circumstances as they evolve. Our opinion is not modified in respect of this matter.

Key Audit Matters

1. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter	How our audit addressed the key audit matter
Appropriateness of the Expected credit loss ("ECL") provision in respect of trade receivables	Our procedures, in relation to testing of ECL provision recognized, included the following:
carried at amortized cost.	• Understanding and evaluating the design
(Refer Note 7 and Note 38 to the Consolidated financial statements)	and testing the operating effectiveness of controls in respect of ECL provision for trade receivables carried at amortized cost.
The Group has trade receivables gross aggregating to Rs. 27,531.79 lakhs as at March 31, 2021, in respect of which the Company applies the simplified approach permitted by Ind	• Reading of the underlying contracts and invoices, as applicable to understand the nature of trade receivables, and the dates on which the payments fall due.
AS 109 Financial Instruments, and recognises expected lifetime losses from initial recognition of the receivables. The provision for ECL as at March 31, 2021 is Rs. 850 lakhs.	• Assessing the appropriateness of the credit loss provisioning methodology used by the management, which involves the use of historical trends such as cash collection,
This is determined as a key audit matter as determination of the ECL provision involved application of judgement by Management in	performance of the current year against historical trends and the level of credit loss over time.
respect of matters such as maximum contractual period of credit risk and probability of credit loss given the large number of aged receivables from government customers.	Based on the above procedures performed, we did not find any significant exceptions to the ECL provision recognised in respect of trade receivables carried at amortized cost.

Other Information

1. The Holding Company's Board of Directors is responsible for the other information. The other information comprises the information included in the Director's report, but does not include the consolidated financial statements and our and other auditor's report thereon. The Director's report is expected to be made available to us after the date of this auditor's report.

Our opinion on the consolidated financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the Director's report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate action as applicable under the relevant laws and regulations.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

1. The Holding Company's Board of Directors is responsible for the preparation and presentation of these consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows, and changes in equity of the Group including its Associate and joint venture in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act. The respective Board of Directors of the companies included in the Group and of its associate and joint venture are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Directors of the Holding Company, as aforesaid.

• 1. In preparing the consolidated financial statements, the respective Board of Directors of the companies included in the Group and of its associate and joint venture are responsible for assessing the ability of the Group and of its associate and joint venture to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
• 1. The respective Board of Directors of the companies included in the Group and of its associate and joint venture are responsible for overseeing the financial reporting process of the Group and of its associate and joint venture.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

• 1. Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
• 1. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• · Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• · Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Holding company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
• · Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• · Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its associate and joint venture to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and its associate and joint venture to cease to continue as a going concern.
• · Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• · Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group and its associate and joint venture to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

• 1. We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
• 1. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
• 1. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

• 1. We did not audit the financial statements of 1 subsidiary, whose financial statements reflect total assets of Rs. 2.26 lakhs and net assets of Rs. 2.16 lakhs as at March 31, 2021, total revenue of Rs. Nil, total comprehensive income (comprising of loss and other comprehensive income) of Rs. 0.63 lakhs and net cash outflow amounting to Rs. 0.73 lakhs for the year ended on that date, as considered in the consolidated financial statements. The consolidated financial statements also include the Group's share of loss of Rs. 284.16 lakhs for the year ended March 31, 2021 as considered in the consolidated financial statements, in respect of 1 joint venture, whose financial statements have not been audited by us. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management, and our opinion on the consolidated financial statements insofar as it relates to the amounts and disclosures included in respect of the subsidiary and joint venture and our report in terms of sub-section (3) of Section 143 of the Act including report on Other Information in so far as it relates to the aforesaid subsidiary and joint venture, is based solely on the reports of the other auditors.
• 1. The financial statements of 1 subsidiary located outside India, included in the consolidated financial statements, which constitute total assets of Rs. 495.09 lakhs and net assets of Rs. 334.59 lakhs as at March 31, 2021, total revenue of Rs. 437.25 lakhs, total comprehensive income (comprising of profit/ loss and other comprehensive income) of Rs. 50.86 lakhs and net cash flows amounting to Rs. 169.84 lakhs for the year then ended; and have been prepared in accordance with accounting principles generally accepted in their respective countries and have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Company's management has converted the financial statements of such subsidiary located outside India from the accounting principles generally accepted in their respective countries to the accounting principles generally accepted in India. We have audited these conversion adjustments made by the Company's management. Our opinion in so far as it relates to the balances and affairs of such subsidiary located outside India, including other information, is based on the report of other auditors and the conversion adjustments prepared by the management of the Company and audited by us.
• 1. The consolidated financial statements also include the Group's share of net profit after tax of Rs. 0.36 lakhs and total comprehensive income of Rs. 0.36 lakhs for the year ended March 31, 2021, as considered in the consolidated financial statements, in respect of 1 associate, whose financial information have not been audited by us. This financial information is unaudited and have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of this associate and our report in terms of sub-section (3) of Section 143 of the Act including report on Other Information in so far as it relates to the aforesaid associate, is based solely on such unaudited financial information. In our opinion and according to the information and explanations given to us by the Management, these financial information are not material to the Group.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial statements certified by the Management.

Report on Other Legal and Regulatory Requirements

• 1. As required by Section 143(3) of the Act, we report, to the extent applicable, that:
• (a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
• (b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors.
• (c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including other comprehensive income), Consolidated Statement of Changes in Equity and the Consolidated Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account and records maintained for the purpose of preparation of the consolidated financial statements.
• (d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified under Section 133 of the Act.
• (e) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2021 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of its subsidiary companies, associate company and joint venture incorporated in India, none of the directors of the Group companies, its associate company and joint venture incorporated in India is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164(2) of the Act.
• (f) With respect to the adequacy of internal financial controls with reference to financial statements of the Group and the operating effectiveness of such controls, refer to our separate report in Annexure A.
• (g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditor's) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
• i. The consolidated financial statements disclose the impact, if any, of pending litigations on the consolidated financial position of the Group, its associate and joint venture – Refer Note 33 to the consolidated financial statements.
• ii. The Group, its associate and joint venture had long-term contracts as at March 31, 2021 for which there were no material foreseeable losses. However they did not have any long-term derivative contracts as at March 31, 2021.
• iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Holding Company and its subsidiary companies, associate companies and joint venture incorporated in India.
• iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Group for the year ended March 31, 2021.
• 1. The Group, its associate and joint venture has provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

For Price Waterhouse Chartered Accountants LLP

Firm Registration Number: 012754N/N500016 Chartered Accountants

Sunit Kumar Basu Partner Membership Number: 55000 UDIN: 21055000AAAAEN6186

Place: Hyderabad Date: May 26, 2021

Annexure A to Independent Auditors' Report

Referred to in paragraph 18 (f) of the Independent Auditors' Report of even date to the members of Astra Microwave Products Limited on the consolidated financial statements for the year ended March 31, 2021

Report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-section 3 of Section 143 of the Act

1. In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March 31, 2021, we have audited the internal financial controls with reference to financial statements of Astra Microwave Products Limited (hereinafter referred to as "the Holding Company") and its subsidiary company which are companies incorporated in India, as of that date. Reporting under clause (i) of sub section 3 of Section 143 of the Act in respect of the adequacy of the internal financial controls with reference to financial statements is not applicable to 1 associate and 1 joint venture incorporated in India namely Janyu Technologies Private Limited and Astra Rafael Comsys Private Limited, pursuant to MCA notification GSR 583(E) dated 13 June 2017.

Management's Responsibility for Internal Financial Controls

1. The respective Board of Directors of the Holding company, its subsidiary companies, to whom reporting under clause (i) of sub section 3 of Section 143 of the Act in respect of the adequacy of the internal financial controls with reference to financial statements is applicable, which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditor's Responsibility

• 1. Our responsibility is to express an opinion on the Company's internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the ICAI and the Standards on Auditing deemed to be prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.
• 1. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
• 1. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system with reference to financial statements.

Meaning of Internal Financial Controls with reference to financial statements

1. A company's internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to financial statements

1. Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

1. In our opinion, the Holding Company, its subsidiary companies, its associate and joint venture, which are companies incorporated in India, have, in all material respects, an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2021, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. Also refer paragraph 4 of our main audit report.

Other Matters

1. Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with reference to financial statements insofar as it relates to 1 subsidiary company, which are company incorporated in India, is based on the corresponding reports of the auditors of such companies incorporated in India. Our opinion is not qualified in respect of this matter.

131

For Price Waterhouse Chartered Accountants LLP

Firm Registration Number: 012754N/N500016 Chartered Accountants

Sunit Kumar Basu Partner Membership Number: 55000 UDIN: 21055000AAAAEN6186

Place: Hyderabad Date: May 26, 2021

Consolidated Balance Sheet as at March 31, 2021

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Particulars	Notes	As at	As at
		March 31, 2021	March 31, 2020
ASSETS
Non-current assets
Property, plant and equipment	2	15,271.91	16,071.44
Capital work-in-progress	2	-	1,205.65
Investment in Joint Ventures	3 (a)	1,409.44	1,318.60
Investment in Associate	3 (a)	200.46	-
Financial assets
i. Other financial assets	4(a)	1,135.39	1,140.28
Deferred tax assets	14	278.05	133.96
Non-current tax assets	9(a)	-	577.43
Other non-current assets	5(a)	287.43	231.46
Total non-current assets		18,582.68	20,678.82
Current assets
Inventories	6	32,961.07	28,354.81
Financial assets
i. Investments	3 (b)	1,409.60	1,304.70
ii. Trade receivables	7	26,681.79	24,935.84
iii. Cash and cash equivalents iv. Other bank balances	8A 8B	1,751.63 2,500.98	908.38 4,414.86
v. Other financials assets	4(b)	1,287.53	45.66
Current tax assets (net)	9(b)	112.37	-
Other current assets	5(b)	9,242.00	8,894.03
Total current assets		75,946.97	68,858.28
Total assets		94,529.65	89,537.10
EQUITY AND LIABILITIES
Equity
Equity share capital	10	1,732.23	1,732.23
Other equity	11	54,138.27	52,282.85
Equity Attributable to owners of the Company		55,870.50	54,015.08
Non Controlling Interest	12	0.16	0.16
Total equity		55,870.66	54,015.24
LIABILITIES
Non-current liabilities
Provisions Total non-current liabilities	13(a)	398.41 398.41	351.33 351.33
Current liabilities
Financial liabilities
i. Borrowings	15	12,155.45	5,486.23
ii. Trade payables
(a) total outstanding dues of micro and small enterprises	16(a)	321.21	82.13
(b) total outstanding dues other than micro and small enterprises	16(b)	3,451.38	6,030.83
iii. Other financial liabilities	17	1,204.22	1,645.48
Provisions	13(b)	200.72	181.80
Current tax liabilities (net)	18	155.28	249.75
Other current liabilities	19	482.44	529.67
Contract liabilities	20	20,289.88	20,964.64
Total current liabilities		38,260.58	35,170.53
Total liabilities		38,658.99	35,521.86
Total equity and liabilities		94,529.65	89,537.10
Summary of Significant Accounting Policies	1

The above balance sheet should be read in conjunction with the accompanying notes

This is the balance sheet referred to in our report of even date.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/ N-500016

Sunit Kumar Basu Partner Membership Number: 55000

Place : Hyderabad Date : May 26, 2021

For and on behalf of the Board of Directors

AVINASH CHANDER Chairman DIN :- 05288690

M.V REDDY Joint Managing Director DIN : - 00421401

S. GURUNATHA REDDY Managing Director DIN : - 00003828

B V S NARASINGA RAO Chief Financial Officer

T. ANJANEYULU

Company Secretary FCS :- 5352

Consolidated Statement of Profit and Loss for the year ended March 31, 2021

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Particulars	Notes	As at	As at
		March 31, 2021	March 31, 2020
Income :
Revenue from Operations	21	64,091.22	46,722.43
Other Income	22	1,086.14	1,215.84
Total Income		65,177.36	47,938.27
Expenses :
Cost of materials consumed	23	48,621.47	33,354.04
Changes in inventories of finished goods and work-in-progress	24	(4,034.05)	(6,826.71)
Employees benefits expenses	25	7,137.60	7,149.88
Finance costs	28	2,312.40	846.20
Depreciation	26	2,354.11	2,575.91
Other expenses	27	4,647.40	4,796.15
Total Expenses		61,038.93	41,895.47
Profit/(Loss )before tax and Share of profit from Joint Venture(JV) & Associate		4,138.43	6,042.80
Share of Profit/(loss) from JV		(284.16)	(128.89)
Share of Profit/(loss) from Associate		0.36	-
Profit/(Loss) before tax		3,854.63	5,913.91
Income tax expense	27 (c)
- Current tax		1,150.94	1,999.52
- Tax of earlier years		(32.16)	-
- Deferred tax		(149.32)	(489.76)
Net profit/(loss) for the year		2,885.17	4,404.15
Other comprehensive income :
Items that will not be reclassified to profit or loss
a) Remeasurements of post-employment benefit obligations		20.78	(114.06)
b) Income tax relating to remeasurements of post employment benefit obligations		(5.23)	28.82
Items that will be reclassified to profit or loss
a) Exchange differences on translation of foreign operations		(5.96)	13.27
Total other comprehensive income/(loss) for the year, net of tax		9.59	(71.97)
Other comprehensive income/(loss) attributable to owners of the
company		9.59	(71.97)
Other comprehensive income/(loss) attributable to Non-Controlling Interest		-	-
Total Comprehensive Income/(loss) of the year		2894.76	4332.18
Net profit/(loss) attributible to
- Owners of the company		2,885.17	4,404.15
- Non Controlling Interests* Total Comprehensive Income/(loss) attributible to		-	-
- Owners of the company		2,894.76	4,332.18
- Non Controlling Interests*		-	-
Earnings per equity share
Basic earnings per share ( in Rs)	29	3.33	5.08
Diluted earnings per share (in Rs)		3.33	5.08
Summary of Significant Accounting Policies	1

*Amounts are below the rounding off norm adopted by the company

The above statement of profit and loss should be read in conjunction with the accompanying notes

This is the statement of profit and loss referred to in our report of even date.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/ N-500016

Sunit Kumar Basu Partner

Membership Number: 55000

Place : Hyderabad Date : May 26, 2021 AVINASH CHANDER Chairman DIN :- 05288690

M.V REDDY Joint Managing Director DIN : - 00421401

S. GURUNATHA REDDY Managing Director DIN : - 00003828

B V S NARASINGA RAO Chief Financial Officer

T. ANJANEYULU Company Secretary FCS :- 5352

133

For and on behalf of the Board of Directors

Consolidated statement of changes in equity for the year ended March 31, 2021

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

A. Equity Share Capital

Particulars	Amount
As at April 1, 2019	1,732.23
Changes in equity share capital during the year	-
As at March 31, 2020	1,732.23
Changes in equity share capital during the year	-
As at March 31, 2021	1,732.23

B. Other Equity

			Attributable to owners of the equity			Non Controlling
Particulars	Securities Premium Reserve	General Reserve	Retained Earnings	Foreign currency translation reserve	Total Other equity	Interests	Total
Balance as at April 01, 2019	6,856.20	7,482.80	33,885.56	(0.46)	48,224.10	0.16	48,224.26
Profit for the year	-	-	4,404.15	-	4,404.15	-	4,404.15
Remeasurements of post employment benefits (net of tax)	-	-	(85.24)	-	(85.24)	-	(85.24)
Transfer to Foreign currency translation reserve	-	-	-	13.27	13.27	-	13.27
Adjustment due to change in functional currency of Aelius	-	-	(12.39)	-	(12.39)		(12.39)
Dividend paid	-	-	(216.53)	-	(216.53)	-	(216.53)
Dividend distribution tax paid	-	-	(44.51)	-	(44.51)	-	(44.51)
Balance as at March 31, 2020	6,856.20	7,482.80	37,931.04	12.81	52,282.85	0.16	52,283.01
Profit for the year	-	-	2,885.17	-	2,885.17	-	2,885.17
Remeasurements of post employment benefits (net of tax)	-	-	15.55	-	15.55	-	15.55
Transfer to Foreign currency translation reserve	-	-	-	(5.96)	(5.96)	-	(5.96)
Dividend paid	-	-	(1,039.34)	-	(1,039.34)	-	(1,039.34)
Balance as at March 31, 2021	6,856.20	7,482.80	39,792.42	6.85	54,138.27	0.16	54,138.43

The above Statement of changes in equity should be read in conjunction with the accompanying notes This is the Statement of changes in equity referred to in our report of even date.

For Price Waterhouse Chartered Accountants LLP	Firm Registration Number: 012754N/ N-500016

Sunit Kumar Basu

Partner Membership Number: 55000

Place : Hyderabad Date : May 26, 2021

For and on behalf of the Board of Directors

AVINASH CHANDER Chairman DIN :- 05288690

S. GURUNATHA REDDY Managing Director DIN : - 00003828

M.V REDDY Joint Managing Director DIN : - 00421401

B V S NARASINGA RAO Chief Financial Officer

T. ANJANEYULU Company Secretary

FCS :- 5352

Consolidated Cash Flow statement for the year ended March 31, 2021

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Cash flow from Operating Activities
Profit before tax	3,854.63	5,913.91
Adjustments for:
Depreciation expense	2,354.11	2,575.91
Finance cost	2,312.40	846.20
Interest income	(241.32)	(327.30)
Share or profit/(loss) from Joint venture and associate	283.80	128.89
(Gain)/loss on sale of investments(net)	-	(250.33)
(Gain)/loss on fair valuation of financial assets	(104.90)	(82.04)
(Gain)/loss on disposal of property, plant and equipment	2.18	(4.87)
Unrealised exchange (gain)/loss	(89.12)	(312.93)
Changes in expected credit loss	(116.54)	377.55
Operating Profit Before Working Capital Changes	8,255.24	8,864.99
Changes in assets and liabilities:
(Increase) / Decrease in inventories	(4,606.27)	(14,377.74)
(Increase) / Decrease in trade receivables	(1,496.30)	(5,630.02)
(Increase) / Decrease in other financial assets	0.80	(32.91)
(Increase) / Decrease in other non-current assets	(81.32)	(10.01)
(Increase) / Decrease in other current assets	(347.97)	(6,836.67)
Increase/(Decrease) in trade payable	(2,346.11)	3,544.02
Increase/(Decrease) in provisions	86.79	71.05
Increase/(Decrease) in other financial liabilities	80.32	115.63
Increase/(Decrease) in Contract liabilities	(1,359.35)	15,278.91
Increase/(Decrease) in other current liabilities	(47.21)	73.55
Cash generated from/(used in) operating activities	(1,861.38)	1,060.80
Income tax paid	(776.79)	(1,789.01)
Net cash generated from/(used in) operating activities	(2,638.17)	(728.21)
Cash flow from Investing Activities
Payments for property, plant and equipment	(368.80)	(1,942.27)
Proceeds from sale of property, plant and equipment	1.25	138.12
Purchase of current investments	-	(21,500.00)
Proceeds from sale of current investments	-	22,551.14
proceeds from maturity of/(Investment in) margin money deposits against bank gurantees	509.52	(2,422.36)
Interest received on deposits with banks against bank guarantees	356.64	153.64
Investment in Equity Shares of Joint ventures	(375.00)	-
Investment in Equity Shares of Associates	(200.10)	-
Net cash flow/(used in) Investing Activities	(76.49)	(3,021.73)

Cash Flow statement for the year ended March 31, 2021

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Cash flow from Financing Activities
Repayment of long term borrowings	(475.44)	(961.11)
Proceeds from short term borrowings	98,871.58	1,02,409.54
Repayment of short term borrowings	(92,202.37)	(97,177.07)
Interest paid	(1,596.52)	(333.19)
Dividend paid	(1,039.34)	(216.53)
Dividend tax paid	-	(44.51)
Net cash from /(used in) Financing Activities	3,557.91	3,677.13
Net Increase/(decrease) in Cash & Cash Equivalents	843.25	(72.81)
Cash & Cash Equivalents at the Beginning	908.38	981.19
Cash & Cash Equivalents at the End	1,751.63	908.38

Reconciliation of cash and cash equivalents as per the Statement of cashflows

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Cash and Cash Equivalents (Note 8A)
In current accounts	748.16	903.86
in deposit accounts	1,000.00	-
Cash on hand	3.47	4.52

This is the Cashflow statement referred to in our report of even date.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/ N-500016

For and on behalf of the Board of Directors

Membership Number: 55000

Place : Hyderabad Date : May 26, 2021

Sunit Kumar Basu

Partner

AVINASH CHANDER Chairman DIN :- 05288690

DIN : - 00421401

M.V REDDY Joint Managing Director S. GURUNATHA REDDY Managing Director DIN : - 00003828

B V S NARASINGA RAO Chief Financial Officer T. ANJANEYULU Company Secretary FCS :- 5352

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2021

Background

Astra Microwave Products Limited was incorporated in 1991 and it got listed under NSE and BSE in the year 1994. The Group is engaged in the business of design, development and manufacture of sub-systems for Radio Frequency and microwave systems used in defense, space, meteorology and telecommunication.

Manufacture, supply, installations and service of electronic machinery, components, spares and other electronic parts, design communication and spare electronic warfare, designing, manufacturing & dealing in space craft, launching vehicles, robots for the sector & aviation and aerospace, deep space, define and internal security.

Note 1: Significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.

The financial Statement are for the group consisting of Astra Microwave Products Limited ('The Company") and its subsidiaries Joint venture (the group).

Note 1.1 Basis of preparation of financial statements

(i) Compliance with Ind AS :

The financial statements of the Group have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (the 'Act') and other relevant provisions of the Act.

(ii) Historical cost convention

The financial statements have been prepared on the historical cost basis except for the following :

• Certain financial assets and liabilities that is measured at fair value;
• Defined benefit plans plan assets measured at fair value

(iii) New and amended standards adopted by the group

The Group has applied the following amendments to Ind AS for the first time for their annual reporting period commencing 1 April 2020:

• Definition of Material amendments to Ind AS 1 and Ind AS 8
• Definition of a Business amendments to Ind AS 103
• COVID-19 related concessions amendments to Ind AS 116

• Interest Rate Benchmark Reform – amendments to Ind AS 109 and Ind AS 107

(iv) Recent Pronouncements

On March 24, 2021, the Ministry of Corporate Affairs ("MCA") through a notification, amended Schedule III of the Companies Act, 2013. The amendments revise Division I, II and III of Schedule III and are applicable from April 1, 2021. Key amendments relating to Division II which relate to companies whose financial statements are required to comply with Companies (Indian Accounting Standards) Rules 2015 are:

Balance Sheet:

• Lease liabilities should be separately disclosed under the head 'financial liabilities', duly distinguished as current or non-current.
• Certain additional disclosures in the statement of changes in equity such as changes in equity share capital due to prior period errors and restated balances at the beginning of the current reporting period.
• Specified format for disclosure of shareholding of promoters.
• Specified format for ageing schedule of trade receivables, trade payables, capital work-in-progress and intangible asset under development.
• If a company has not used funds for the specific purpose for which it was borrowed from banks and financial institutions, then disclosure of details of where it has been used.

• Specific disclosure under 'additional regulatory requirement' such as compliance with approved schemes of arrangements, compliance with number of layers of companies, title deeds of immovable property not held in name of company, loans and advances to promoters, directors, key managerial personnel (KMP) and related parties, details of benami property held etc.

Statement of Profit and Loss

• Additional disclosures relating to Corporate Social Responsibility (CSR), undisclosed income and crypto or virtual currency specified under the head 'additional information' in the notes forming part of the standalone financial statements.

The amendments are extensive and the Group will evaluate the same to give effect to them as required by law.

Principal of consolidation and equity accounting.

i) Subsidiary:

Subsidiaries are all entities over which the group has control. The group controls as entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date the control ceases.

The group combines the financial statements of the parent and its subsidiaries line by line adding together like items of assets, liabilities, equity, income and expenses. Inter company transactions, balances and unrealised losses are also eliminated unless the transaction provides evidence of an impairment of transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group."

ii) Associates

Associates are all entities over which the group has significant influence but not control or joint control. Investments in associates are recognised and carred at far value through Profit and Loss

iii) Joint Venture

Interests in joint ventures are accounted for using the equity method (see (iv) below), after initially being recognised at cost in the consolidated balance sheet."

iv) Equity method

Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the group's share of the post-acquisition profits or losses of the investee in profit and loss, and the group's share of other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates are recognised as a reduction in the carrying amount of the investment.

When the group's share of losses in an equity accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.

Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group's interest in these entities.

Unrealised losses are also eliminated unless transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the group.

The carrying amount of equity accounted investments are tested for impairment in accordance with the policy described in note 1.8 below."

v) Changes in ownership interests

The group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests reflect their relative interests in the subsidiary. Any difference between the amount of adjustment to non-controlling interests and any consideration paid or received is recognized within equity.

When the group ceases to consolidate or equity account an investment because of a loss of control, joint control or significant interest, any retained interest in the equity is remeasured to its fair value with change

in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purpose of subsequently accounting for the retained interest as an associate or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

If the ownership interest in an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate."

Note 1.2 : Use of estimates

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates, judgements and assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported amounts of the assets and liabilities, the disclosure of the contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the management becomes aware of these changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

Note 1.3 : Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of each of the Group are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The financial statements are presented in Indian rupee (INR), which is Company functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

(iii) Group Companies

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• a. assets and liabilities are translated at the closing rate at the date of that balance sheet
• b. income and expenses are translated at average exchange rates, and
• c. All resulting exchange differences are recognised in other comprehensive income.

When a foreign operation is sold, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale.

Note 1.4 : Revenue recognition

(i) Sale of products:

Revenue from sale of products is recognised when the control of the products has transferred, being when the products are delivered to the customer. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

Revenue from sales is based on the price specified in the sales contracts, net of volume discounts and returns if any at the time of sale. Accumulated experience will be used to estimate and provide for the discounts, using the expected value method, and revenue is recognised only to the extent that it is highly probable that the significant reversal will not occur. A refund liability (included in other current liabilities) is recognised for expected volume discounts payable to customers in relation to sales made until the end of the reporting period. The contract price is adjusted for the finance component where the period between the

advance received from the customer and transfer of the promised goods to the customer exceeds one year.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before payment is due.

(II) Revenue From sale of Services

The Group provides maintenance services to customers under fixed price contracts. Revenue from sale of services is recognised in the accounting period in which the services are rendered

(iii) Financing component:

The Group recognises significant financing component in the revenue contract where the period between the advance received from the customer and transfer of the promised goods to the customer exceeds one year. The finance component is adjusted to the contract price to arrive at the transaction price to be considered for revenue recognition.

Note 1.5 : Government grants

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions.

Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.

Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets and presented within other income.

Note 1.6 : Income tax

The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. "

"Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively."

Note 1.7 : Leases

Effective from April 1, 2019:

As a lessee:

From 1 April 2019, leases are recognised as a right-of-use asset and a corresponding liability at the date at

which the leased asset is available for use by the company. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date
• amounts expected to be payable by the company under residual value guarantees
• the exercise price of a purchase option if the company is reasonably certain to exercise that option, and
• payments of penalties for terminating the lease, if the lease term reflects the company exercising that option.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the company, the lessee's incremental borrouing rate is used, being the rate that the individual lessee would have to pay to borrow the necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which has a similar payment profile to the lease, then the Group entites use that rate as a starting point to determine the incremental borrowing rate.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. Payments associated with short-term leases and all leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.

As a lessor:

Lease income from operating leases where the company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature. The company did not need to make any adjustments to the accounting for assets held as lessor as a result of adopting the new leasing standard.

Note 1.8 : Impairment of assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

Note 1.9 : Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

Note 1.10 : Trade receivables

Trade receivables are the amount due from the customers for the sale of goods and services rendered in the ordinary course of business. Trade receivables are initially recognised at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at the fair value. The Group holds trade receivables for the receipt of contractual cash flows and therefore measures them subsequently

at the amortised cost using effective interest rate method.

Note 1.11 : Inventories

Raw materials and stores, work in progress and finished goods are stated at the lower of cost and net realisable value. Cost of raw materials comprises cost of purchases. Cost of work-in-progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Costs are assigned to individual items of inventory on weighted average basis. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Note 1.12 : Investments and other financial assets

i) Classification

The Group classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
• those measured at amortised cost.

The classification depends on the entity's business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. The Group reclassifies debt investments when and only when its business model for managing those assets changes.

ii) Recognition

Regular way purchase and sales of financial assets are recognised on trade-date, the date on which the Group commits to purchase or sale the financial assets.

iii) Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Debt instruments

Subsequent measurement of debt instruments depends on the Group's business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments:

Amortised cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss within other gains/(losses) in the period in which it arises. Interest income from these financial assets is included in other income.

Equity instruments

The Group subsequently measures all equity investments at fair value. Where the company's management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends from such investments are recognised in profit or loss as other income when the Group's right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognised in other gain/ (losses) in the statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value.

iii) Impairment of financial assets

The Group assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 38 details how the Group determines whether there has been a significant increase in credit risk.

For trade receivables only, the company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

iv) Derecognition of financial assets

A financial asset is derecognized only when

• The Group has transferred the rights to receive cash flow from the financial asset or
• retains the contractual rights to receive the cash flows of the financial assets, but assumes a contractual obligation to pay cash flows to one or more recipients

Where the entity has transferred an asset, the Group evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset is not derecognized.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Group has not retained control of the financial asset. Where the Group retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

v) Income recognition

Interest income

Interest income from the debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Group estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses.

Dividends

Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Group, and the amount of the dividend can be measured reliably.

Note 1.13 : Derivatives

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. These derivative contracts are not designated as hedges and are accounted for at fair value through profit or loss and are included in other income.

Note 1.14 : Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.

Note 1.15 : Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Depreciation/amoritisation methods, estimated useful lives and residual value

Depreciation is provided on written down value method considering the useful lives of the assets that have been determined based on technical evaluation done by the management which are in line with the useful lives prescribed under Schedule II of the Companies Act, 2013. In respect of solar power generating plant the management has estimated the useful life as 25 years. The residual values are not more than 5% of the original cost of the asset.

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in statement profit and loss under other income.

Note 1.16 : Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within credit period after recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method.

Note 1.17 : Borrowings

Borrowings are initially recognized at fair value, net of transaction cost incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in statement of profit and loss under other income.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of financial statements for issue, not to demand payment as consequence of the breach.

Note 1.18 : Borrowings costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing cost eligible for capitalization.

Other borrowings costs are expensed in the period in which they are incurred.

Note 1.19 : Provisions, Contingent Assets and Contingent Liabilities

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses. When the Group expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

The Group does not recognize a contingent liability but discloses its existence in the financial statements.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

The Group does not recognize a contingent asset but discloses its existence in the financial statements if the inflow of economic benefits is probable.

Note 1.20 : Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefit are discounted using the government bond yield rates at the end of the reporting period that have terms approximating to the terms of the related obligations. Remeasurements as a result of the experience adjustments and changes in actuarial assumptions are recognized in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

(iii) Post-employment obligations

The Group operates the following post-employment schemes:

• (a) Defined benefit plans gratuity; and
• (b) Defined contribution plans provident fund.
• a. Defined benefit plans gratuity

The liability or assets recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. The benefits which are denominated in currency other than INR, the cash flows are discounted using market yields determined by reference to high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and change in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.

Asset ceiling will be recognised the present value of any economic benefits available in the form of refunds from the plan or reduces in future contributions in accordance with the terms and conditions of the plan and accordingly recognise the defined benefit assets. "

b. Defined contribution plans - provident fund

The Group pays provident fund contributions to publicly administered funds as per local regulations. The Group has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.

Bonus plans:

The Group recognises a liability and an expense for bonuses. The Group recognises a provision where contractually obliged or where contractually obliged or where there is a past practice that has created a constructive obligation.

Note 1.21 : Contributed equity

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Note 1.22 : Dividends

Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

Note 1.23 : Earnings per share

(i) 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, adjusted for bonus elements in equity shares issued during the year.

(ii) 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.

Note 1.24 : Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The group has identified Managing Director and Joint Managing Director of the Company as chief operating decision makers.

Note 1.25 : Research and Development expenditure:

Research expenditure and development expenditure that do not meet the below criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as asset in a subsequent period.

• i) It is technically feasible to complete the project so that it will be available for use
• ii) Management intends to complete the project and use or sell it
• iii) There is an ability to use or sell the project
• iv) It can be demonstrated how the project will generate probable future economic benefits
• v) Adequate technical, financial and other resources to complete the development and to use or sell the project are available and
• vi) The expenditure attributable to the project during its development can be reliably measured.

Note 1.26 : Critical estimates and judgements:

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the group's accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The area involving critical estimates or judgements is:

• 1. Estimation of defined benefit obligation (Refer note 31)
• 1. Significant financing component (Refer note 21)
• 1. Provision for expected credit loss (Refer note 38)

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the group and that are believed to be reasonable under the circumstances.

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Particulars Gross carrying value Accumulated depreciation Net carrying amount As at 1 April 2020 Additions Deletions / transfers Adjustments As at 31 Mar 2021 As at 1 April 2020 For the Year On disposals Adjustments As at 31 Mar 2021 As at 31 Mar 2021 Own assets Land 2,045.97 - - - 2,045.97 - - - - - 2,045.97 Buildings 6,805.40 856.87 - - 7,662.27 1,815.72 546.69 - - 2,362.41 5,299.86 Plant & Machinery 13,021.76 477.68 9.98 - 13,489.46 5,989.43 1,335.26 7.03 - 7,317.66 6,171.80 Electrical Installations 368.78 42.45 0.09 - 411.14 194.74 52.28 - - 247.02 164.12 Solar Power Plant 669.19 - - - 669.19 253.23 46.90 - - 300.13 369.06 Air Conditioners 439.38 29.19 - - 468.57 259.85 46.90 - - 306.75 161.82 Office Equipment 322.29 29.56 - - 351.85 237.45 43.96 - - 281.41 70.44 Computers 471.48 65.46 - - 536.94 318.37 118.79 - - 437.16 99.78 Furniture & Fixtures 1,124.39 56.82 - (0.03) 1,181.18 912.74 52.54 - (0.02) 965.26 215.92 Vehicles 110.13 - 3.27 - 106.86 47.84 18.86 2.88 - 63.82 43.04 Wind Electric Generator 1,245.47 - - - 1,245.47 523.44 91.93 - - 615.37 630.10 Total 26,624.26 1,558.03 13.34 (0.03) 28,168.90 10,552.82 2,354.11 9.91 (0.02) 12,896.99 15,271.91

Note 2 : Property, Plant and Equipment

Refer Note. 33 for capital commitments of the Group. Refer Note. 35 for the Assets Pledged as Security.

Capital work-in-progress 1,205.65 - 1,205.65 - - - - - - -

Notes to consolidated financial statements for the year ended March 31, 2021 (All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 2 : Property, Plant and Equipment.

			Gross carrying value					Accumulated depreciation			Net carrying amount
Particulars	1 April 2019 As at	Additions	Deletions / transfers	Adjustments	31 March 2020 As at	1 April 2019 As at	For the Year	disposals On	Adjustments	31 March 2020 As at	31 March 2020 As at
Own assets
Land	2,045.97	-	-	-	2,045.97	-	-	-	-	-	2,045.97
Buildings	6,804.12	1.28	-	-	6,805.40	1,296.02	519.71	-	-	1,815.72	4,989.68
Plant & Machinery	12,403.18	741.76	123.18	-	13,021.76	4,487.28	1,503.70	1.55	-	5,989.43	7,032.33
Electrical Installations	342.76	26.01	0.00	-	368.78	141.13	53.60	-	-	194.74	174.04
Solar Power Plant	669.19	(0.00)	-	-	669.19	200.21	53.02	-	-	253.23	415.96
Air Conditioners	434.35	5.04	-	-	439.38	201.73	58.12	-	-	259.85	179.53
Office Equipment	305.01	17.28	-	-	322.29	179.30	58.15	-	-	237.45	84.84
Computers	365.31	131.20	25.03	-	471.48	190.30	142.85	14.79	-	318.37	153.12
Furniture & Fixtures	1,083.77	40.58	-	0.04	1,124.39	860.78	51.94	-	0.01	912.74	211.66
Vehicles	120.92	-	10.78	-	110.13	28.09	29.15	9.40	-	47.84	62.29
Wind Electric Generator	1,245.47	-	-	-	1,245.47	417.78	105.67	-	-	523.44	722.03
Total	25,820.05	963.16	158.99	0.04	26,624.26	8,002.63	2,575.91	25.74	0.01	10,552.82	16,071.44
Capital work-in-progress	243.39	962.27	-	-	1,205.65	-	-	-	-	-	1,205.65

Refer note no. 33 for Capital commitments of the group

Refer note no. 35 for the Assets pledged as security

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 3 (a): Investments

Particulars	As at
	March 31, 2021	March 31, 2020
A. Non-current investments (Refer Note a below)
Investment Accounted using the equity method
Equity instruments of Joint venture (unquoted)	1,409.44	1,318.60
Investment Carried at FVTPL
Equity instruments in Associate (unquoted)*	-	-
Preference shares of Associate (unquoted)	200.36	-
Investment in share warrants of Associate (unquoted)	0.10	-
Total	1,609.90	1,318.60

*Amount is below the rounding off norm adopted by the group

Note 3(b): Investments

Particulars	As at
	March 31, 2021	March 31, 2020
B. Current investments (Refer Note b below)
Investment carried at fair value through profit and loss
Investments in Mutual Funds (quoted)	1.409.60	1.304.70
Total	1.409.60	1.304.70

Note a: Details of non-current investments

Particulars		As at
	March 31, 2021	March 31, 2020
Investments accounted for using the equity method
(i) Equity instruments of Joint ventures (unquoted)
Astra Rafael Comsys Private Limited	1,409.44	1,318.60
20,000,000 (2020 : 16,250,000 ) equity shares of Rs. 10/- each fully
paid up
Investment Carried at FVTPL
(ii) Equity instruments of Associate (unquoted)
Janyu Technologies Private Limited*	-	-
1 (2020: Nil) equity share of Rs. 10 each fully paid up
(iii) Preference shares of Associate (unquoted)
Janyu Technologies Private Limited	200.36	-
106,436 (2020: Nil ) Series E Compulsorily convertible preference
shares of Rs. 10 each fully paid up
(iv) Investment in share warrants of Associate (unquoted)
Janyu Technologies Private Limited	0.05	-
3,000,000 (2020: Nil) Investor Series 1 Share warrants
Janyu Technologies Private Limited	0.05	-
2,000,000 (2020: Nil) Investor Series 2 Share warrants
Total	1,609.90	1,318.60
Aggregate book value of unquoted investments	1,609.90	1,318.60

*Amount is below the rounding off norm adopted by the Group

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note b: Details of current investments

Particulars	As at
	March 31, 2021	March 31, 2020
Investments in Mutual Funds (quoted)
a) 3,739,927.244 (2020 : 3,739,927.244) Units of SBI Credit Risk Fund - Regular growth	1,281.04	1,185.77
b) 234,894.521 (2020 : 234,894.521) Units of SBI Magnum Income Fund - Regular Plan - Growth	128.56	118.93
Total current investment	1,409.60	1,304.70
Aggregate of quoted current investments and market value thereof	1,409.60	1,304.70
Aggregate book value of unquoted investments -Non-current	1,609.90	1,318.60
Aggregate book value and market value of quoted investments - Current	1,409.60	1,304.70

Note 4 : Other financial asset

Particulars		As at
	March 31, 2021	March 31, 2020
a) Non-current, carried at amortised cost
Unsecured, considered good
Security deposits	79.68	80.48
Deposits with banks against bank guarantees
- remaining maturity period of more than 12 months	1,048.11	1,059.80
Interest Accrued	7.60	-
Total Non Current Other Financial Assets	1,135.39	1,140.28
b) Current
Interest accrued	124.30	-
Deposits with banks against bank guarantees
- remaining maturity period of less than 12 months	1,161.75	-
Derivatives carried at fair value through profit or loss
- Foreign-exchange forward contract	1.48	45.66
Total current other financial assets	1,287.53	45.66

Note 5 : Other assets

Particulars		As at
	March 31, 2021	March 31, 2020
a) Non-current
Unsecured, considered good
Capital advances	2.48	27.83
Deposits with government departments	85.14	82.17
Prepaid expenses	199.81	121.46
Total non-current assets	287.43	231.46
b) Current:
Unsecured, considered good
Prepaid expenses	407.79	478.63

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Balance with government authorities Contract asset Export incentives receivable	2,476.14 10.85 393.92	2,973.47 - -
Advances to suppliers
- to related parties	21.00	-
- to others	5,932.30	5,441.93
Total current assets	9,242.00	8,894.03

Note 6 : Inventories

Particulars		As at
	March 31, 2021	March 31, 2020
Raw materials	14,802.54	14,202.16
Packing material	22.18	50.35
Work-in-progress	17,795.30	13,990.85
Finished goods	341.05	111.45
Total	32,961.07	28,354.81

Raw materials include good-in-transit Rs. 171.99 lakhs (2020 : Rs. 2,423.55 lakhs)

Write downs of inventories to net realisable value amounted to Rs. 51.04 lakhs (2020: Rs. 13.33 lakhs). These were recognised as an expense during the year and included in 'changes in value of inventories of finished goods and work-in-progress ' in statement of profit and loss.

Note 7 : Trade receivables

Particulars	As at
	March 31, 2021	March 31, 2020
Trade receivables
Unsecured, considered good
- Related parties	162.77	90.24
- Others	26,519.02	24,845.60
Unsecured, considered doubtful	850.00	966.55
Less: Expected Credit losses	(850.00)	(966.55)
Total	26,681.79	24,935.84

Note 8 : Cash and Bank Balances Note 8A: Cash and Cash Equivalents

Particulars		As at
	March 31, 2021	March 31, 2020
Balances with Banks
- in current accounts	748.16	903.86
- in deposit accounts	1,000.00	-
Cash on hand	3.47	4.52
Total	1,751.63	908.38

There are no repatriation restrictions with regard to cash and cash equivalents as at the end of the reporting period and prior periods

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

NOTE 8B: Other Bank balances

March 31, 2021	March 31, 2020
2,425.93	4,332.72
-	-
75.05	82.14
2,500.98	4,414.86
	As at

Margin money deposit above includes Fixed Deposits under lien amounting to INR 368.23 Lakhs (2020: INR 352.51 Lakhs)

Note 9: Tax assets (net)

Particulars		As at
	March 31, 2021	March 31, 2020
a. Non-current tax assets/ (liabilities)
Advance income tax (net of provision for income tax of Rs. Nil (2020: Rs. 434.04 Lakhs))	-	577.43
Total	-	577.43
b. Current
Income tax refund receivable	112.37	-
	112.37	-

Note 10: Equity share capital

Particulars	As at
	March 31, 2021	March 31, 2020
Authorised share capital:
150,000,000 (2020 : 150,000,000 ) equity shares of Rs. 2/- each	3,000.00	3,000.00
Total	3,000.00	3,000.00
Issued and subscribed capital: 86,611,675 (2020 : 86,611,675) equity shares of Rs. 2/- each fully paid	1,732.23	1,732.23
Total	1,732.23	1,732.23

(a) Details of shares held by each shareholder holding more than 5% shares in the company

	As at March 31, 2021		As at March 31, 2020
Particulars	Number of shares	% holding of equity shares	Number of shares held	% holding of equity shares
Ratnabali Investment Pvt.Ltd.,	46,34,272	5.35%	46,34,272	5.35%
Sundaram Mutual Fund	30,38,837	3.51%	47,17,671	5.45%

(b) Movement in equity share capital

	As at March 31, 2021		As at March 31, 2020
Particulars	Number of shares	Amount	Number of shares	Amount
At the beginning of the year	8,66,11,675	1,732.23	8,66,11,675	1,732.23
Add: Number of shares issued and subscribed during the year	-	-	-	-
At the end of the year	8,66,11,675	1,732.23	8,66,11,675	1,732.23

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

(c)Terms and rights attached to equity shares:

The company has one class of equity shares having a par value of Rs. 2 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

The Company has not issued any share as fully paid up without payment being received in cash or as bonus shares nor any share has been bought back by the Company since its incorporation.

			Note 11: Other equity
--	--	--	-----------------------

Particulars	As at
	March 31, 2021	March 31, 2020
Reserves and surplus:
General reserve	7,482.80	7,482.80
Securities premium reserve	6,856.20	6,856.20
Foreign currency translation Reserve	6.85	12.81
Retained earnings	39,792.42	37,931.04
Total	54,138.27	52,282.85
		As at
General Reserve	March 31, 2021	March 31, 2020
Opening balance	7,482.80	7,482.80
Movement during the year	-	-
Closing balance	7,482.80	7,482.80
	As at
Securities premium reserve	March 31, 2021	March 31, 2020
Opening balance	6,856.20	6,856.20
Add: Movement during the year	-	-
Closing balance	6,856.20	6,856.20
Retained earnings		As at
	March 31, 2021	March 31, 2020
Opening balance	37,931.04	33,885.56
Add: Net profit for the year	2,885.17	4,404.15
Add: Remeasurement of Defined benefit obligations (net off tax)	15.55	(85.24)
Adjustment due to change in functional currency of Aelius	-	(12.39)
Dividend paid	(1,039.34)	(216.53)
Dividend Tax paid	-	(44.51) 37,931.04
Closing balance	39,792.42
Foreign Currency Translation Reserve	As at
	March 31, 2021	March 31, 2020
Opening balance	12.81	(0.46)
Movement during the year	(5.96)	13.27
Closing Balance	6.85	12.81

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 12 : Non-Controling Intrests

	As at
Particulars	March 31, 2021	March 31, 2020
Opening balance	0.16	0.16
Additions during the year	-	-
Closing Balance	0.16	0.16

Nature and purpose of reserves

Securities premium reserves:

Securities premium reserves is used to record the premium on issue of shares. The reserve is utilised in accordance with the provision of the Act.

Debenture redemption reserve:

The company is required to create a debenture redemption reserve out of the profits which is available for payment of dividend for the purpose of redemption of debentures.

General reserve:

General reserve is used for strengthening the financial position and meeting future contingencies and losses.

Note 13 : Provisions*

As at
March 31, 2021	March 31, 2020
312.28	303.68
86.13	47.65
398.41	351.33
93.14	86.42
107.58	95.38
200.72	181.80

*Refer note 31

Note 14 : Deferred tax liabilities (Assets)

	As at
Particulars	March 31, 2021	March 31, 2020
Deferred tax Liabilities	706.35	864.41
Deferred tax Assets	(984.40)	(998.37)
Deferred tax liabilities/(assets) (net)	(278.05)	(133.96)

Reconciliation of Deferred tax balance

2020-21	Opening Balance	Recognised in profit or loss	Recognised in Other comprehensive income	Recognised in equity	Closing balance
A. Deferred tax liabilities (net)
Depreciation	812.01	(183.86)	-	-	628.15
On Fair value gain of Mutual funds	51.51	26.40	-	-	77.91
Forward Contracts	0.89	(0.60)	-	-	0.29
Deferred tax liabilties	864.41	(158.06)	-	-	706.35
Provision for gratuity	(36.02)	(17.98)	5.23	-	(48.77)
Provision for Leave Encashment	(98.18)	(3.86)	-	-	(102.04)

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Unabsorbed losses	(100.77)	100.77			-
Deferred revenue	(156.78)	(54.34)	-	-	(211.12)
Provision for expected credit loss	(243.25)	29.33	-	-	(213.92)
Indexation benefit on land	(363.37)	(45.18)	-	-	(408.55)
Deferred tax assets	(998.37)	8.74	5.23	-	(984.40)
Deferred tax assets (net)	(133.96)	(149.32)	5.23	-	(278.05)

The group had not created deferred tax asset on the unused tax losses of foreign subsidiary AELIUS Semiconductors Pte. Ltd amounting to Rs. 30.93 lakhs (2020: Rs. 49.83 lakhs). The unused tax losses can be carried forward indefinitely.

2019-20	Opening Balance	Recognised in profit or loss	Recognised in Other comprehensive income	Recognised in equity	Closing balance
Depreciation	1,453.47	(641.46)	-	-	812.01
On Fair value gain of Mutual funds	43.14	8.37	-	-	51.51
Forward Contracts	-	0.89	-	-	0.89
Deferred tax liabilties	1,496.61	(632.20)	-	-	864.41
Provision for gratuity	(4.25)	(2.95)	(28.82)	-	(36.02)
Provision for Leave Encashment	(110.03)	11.85	-	-	(98.18)
Unabsorbed losses	(66.57)	(34.20)			(100.77)
Deferred revenue	(154.63)	(2.15)	-	-	(156.78)
Provision for expected credit loss	(217.54)	(25.71)	-	-	(243.25)
Indexation benefit on land	(330.69)	(32.68)	-	-	(363.37)
MAT Credit entitlement	(228.28)	228.28	-	-	-
Deferred tax assets	(1,111.99)	142.44	(28.82)	-	(998.37)
Deferred tax liabilities (net)	384.62	(489.76)	(28.82)	-	(133.96)

Note 15: Current Borrowings

	As at
Particulars	March 31, 2021	March 31, 2020
Secured
From banks
Working Capital Loans
HDFC Bank	6,000.00	-
Axis bank	3,000.00	-
Cash Credit Facility
Canara Bank	987.43	981.60
HDFC Bank	2,142.87	3,557.29
Axis bank	25.15	947.34
Total	12,155.45	5,486.23

Refer note no. 35 for the assets pledged as security

Nature of security:

(a) Astra Microwave Products Limited Prime Security:

Pari Passu first charge on stocks, receivables and other chargeable current assets of the company.

Collateral Security:

Pari Passu first charge on entire unencumbered Fixed Assets of the company (other than those financed by term lenders) and Pari Passu second charge on the fixed assets of the group funded by other term lenders.

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Personal Guarantee:

Personal Guarantee of the former Managing Director and former Chief Operating officer who are also founders of the Company.

(b) Bhavyabhanu Electronics Private Limited

i) Working capital loan from HDFC Bank is secured by charge on Book debts, movable fixed assets, plant and machinery and fixed deposits of the company.

(ii) Corporate Guarantee of Astra Microwave Products Limited.

Terms of repayment:

i) Working capital Loans taken from Banks are repayable within a period of 90 days to 180 days from the date of taking the loan.

ii) Cash Credit facilities are repayable on demand.

iii) Interest rates are normally reset on an yearly basis. Present rate of interest ranges between 7.95% to 9.55%.

Note 16(a): Trade Payables : Dues to Micro and Small enterprises

	As at
Particulars	March 31, 2021	March 31, 2020
Dues to micro enterprises and small enterprises (Refer note 16(c) below)	321.21	82.13
Total	321.21	82.13

Note 16(b): Trade Payables : Dues to Other than Micro and Small enterprises

	As at
Particulars	March 31, 2021	March 31, 2020
Trade Payables : Others	3,451.38	6,030.83
Total	3,451.38	6,030.83

Note 16 (c): The group has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED Act'). The disclosures pursuant to the said MSMED Act are as follows:

		As at
Particulars	March 31, 2021	March 31, 2020
Principal amount due to suppliers registered under the MSMED Act and remaining unpaid as at year end	321.20	82.13
Interest due to suppliers registered under the MSMED Act and remaining unpaid as at year end	-	-
Principal amounts paid to suppliers registered under the MSMED Act, beyond the appointed day during the year	-	-
Interest paid, other than under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year	-	-
Interest paid, under Section 16 of MSMED Act, to suppliers registered under the MSMED Act, beyond the appointed day during the year	-	-
Interest due and payable towards suppliers registered under MSMED Act, for payments already made	-	-
Further interest remaining due and payable for earlier years	-	-

Note 17: Other financial liabilities

	As at
Particulars	March 31, 2021	March 31, 2020
Current maturities of long term debt	-	475.44
Unpaid Dividend	75.05	82.14
Interest accrued	16.40	13.73
Capital creditors	30.57	72.29
Employee benefits payable	962.79	967.42
Dues to directors	45.28	16.50
Liability for Expenses	52.98	-

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Retention monies	10.22	17.43
Others	10.93	0.53
Total	1,204.22	1,645.48

Refer note no. 35 for the assets pledged as security Nature of security:

Term Loans

• a. Term loan from HDFC Bank is secured by First exclusive charge on the Fixed Assets funded by this term loan. Second pari passu charge on entire unencumbered fixed assets of the company along with term lenders. Pari Passu second charge on all chargeable current assets of the company along with other term lenders and personal guarantee of the former Managing Director and former Chief Operating Officer who are also founders of the Company
• b. Aggregate amount of loans Guaranteed by former Managing Director and former Chief Operating Officer who are also founders of the Company is Rs. Nil (2020 : Rs. 475.44 lakhs).

Terms of repayment:

i) Term loan from HDFC bank is repayable in 12 quarterly instalments starting after one year from the date of first disbursement (date of first draw down was June 5, 2017) along with an interest as mutually agreed with the bank payable on a monthly basis. Interest rates are normally reset on an yearly basis.

Note 18: Current tax liabilities (net)

	As at
Particulars	March 31, 2021	March 31, 2020
Provision for income tax (net of advance tax and tax deducted at source of Rs. 1,005.98 Lakhs (2020: Rs. 1,751.77 lakhs)	155.28	249.75
Total	155.28	249.75

Note 19: Other current liabilities

	As at
Particulars	March 31, 2021	March 31, 2020
Statutory dues payable	482.44	529.47
Audit fee	-	0.11
Secreterial Fee	-	0.09
Total	482.44	529.67

Note 20: Contract liabilities

	As at
Particulars	March 31, 2021	March 31, 2020
Current
Advance from customers	19,451.05	20,341.72
Deferred revenue	838.83	622.92
Total	20,289.88	20,964.64

Movement of Advance from customers

Particulars	As at March 31,2021	As at March 31,2020
Opening balance	20,341.72	4,743.05
Received during the year	11,423.05	37,654.11
Advances offset on account of sales	(12,313.72)	(22,055.44)
Closing balance	19,451.05	20,341.72

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Movement of deferred revenue

Particulars	As at March 31,2021	As at March 31,2020
Opening balance	622.92	442.18
Interest accrued	684.60	500.50
Released to revenue during the year	(468.69)	(319.76)
Closing balance	838.83	622.92

Revenue recognised in relation to contract liabilities

The following table shows how much of the revenue recognised in the current reporting period relates to carried forward contract liabilities

Particulars	As at March 31,2021	As at March 31,2021
Deferred Revenue	468.69	319.76
Total	468.69	319.76

Note 21: Revenue from Operations

		Year ended
Particulars	March 31,2021	March 31,2021
Revenue from contracts with customers
-Sale of Products	62,278.42	43,993.46
-Sale of Services	1,646.41	2,507.65
	63,924.83	46,501.11
Other Operating Revenue
-Wind Electrical Power	166.39	217.12
-Operating Lease Rent	-	4.20
	166.39	221.32
Total	64,091.22	46,722.43

Unsatisfied long-term consulting contracts:

The following table show unsatisfied performance obligations resulting from fixed price long term Sale of Products.

Particulars	Year ended March 31,2021h 0	Year ended March 31,2020
Aggregate amount of the transaction price allocated to long term Sale of Products	2,15,241.26	1,38,275.37

The aggregate amount of transaction price allocated to unsatisfied performance obligations represents the open orders which are not yet delivered and the entity will recognise this revenue as the goods are delivered or services are rendered, which is expected to occur over the next 36 months.

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Reconciliation of revenue recognised with contract rice:

Particulars	Year ended March 31, 2021	Year ended March 31, 2020
Contract price	63,456.15	46,181.35
Adjustment for:
Financing component	468.68	319.76
Revenue from Oprations	63,924.83	46,501.11

Critical Judgements in recognising revenue

The group has considered that the advances received from the customers more than one year before the transfer of control of the goods has the significant financing component. As a consequence, the group adjusted the transaction price to reflect the finance component from such customer advances.

Note 22: Other Income

		Year ended
Particulars	March 31, 2021	March 31, 2020
Interest income*	281.47	327.30
Export incentives	543.92	28.56
Net gain/(loss) on disposal of property, plant and equipment	-	4.87
Net gain on financial assets mandatorily measured at fair value	104.90	82.04
through profit or loss(Mutual Funds)
Net gain/(loss) on sale of current investments(Mutual Funds)	-	250.33
Foreign exchange fluctuations	-	507.21
Miscellaneous Receipts	39.31	14.63
Changes in expected credit loss in receivables	116.54	0.90
Total	1,086.14	1,215.84

*Interest income includes interest on income tax refund of Rs. 40.15 lakhs (2020: Nil)

Note 23: Cost of materials consumed

	Year ended
Particulars	March 31, 2021	March 31, 2020
Raw materials and packing materials at the beginning of the year	14,252.51	6,701.47
Add: Purchases	49,193.68	40,905.08
Less: Raw materials packing materials at the end of the year	(14,824.72)	(14,252.51)
Total	48,621.47	33,354.04

Note 24: Changes in inventories of finished goods and work-in-progress

		Year ended
Particulars	March 31, 2021	March 31, 2020
Opening Balance:
Finished goods	111.45	229.34
Work-in-progress	13,990.85	7,046.25
Total(A)	14,102.30	7,275.59
Closing Balance:
Finished goods	341.05	111.45
Work-in-progress	17,795.30	13,990.85
Total(B)	18,136.35	14,102.30
Changes in inventories of finished goods and work-in-progress (A)-(B)	(4,034.05)	(6,826.71)

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 25: Employee benefit expenses

	Year ended
Particulars	March 31, 2021	March 31, 2020
Salaries, wages and bonus	6,191.16	6,073.18
Contribution to Provident Fund	328.03	327.54
Contribution to Employee State Insurance	22.13	24.00
Gratuity	101.98	82.80
Leave encashment	141.83	194.15
Directors remuneration	178.90	246.56
Staff welfare expenses	173.57	201.65
Total	7,137.60	7,149.88

Note 26: Depreciation expense

	Year ended
Particulars	March 31, 2021	March 31, 2020
Depreciation of property, plant and equipment	2,354.11	2,575.91
Total	2,354.11	2,575.91

Note 27: Other expenses

	Year ended
Particulars	March 31, 2021	March 31, 2020
Consumption of Stores and spares	63.69	-
Power and fuel	348.18	362.02
Repairs and maintenance
Plant and machinery	503.08	576.13
Buildings	42.13	24.91
Computers	310.72	215.09
Others	435.07	317.41
Operating lease rent	82.72	67.89
Rates and taxes	79.89	119.54
Insurance	156.83	73.97
Legal and professional fees	297.89	473.73
Travelling and conveyance	586.53	702.56
Printing and stationery	46.76	65.11
Telephone and communication charges	58.21	64.20
Auditors Remuneration (Refer note (a) below)	35.20	34.00
Business promotion expenses	44.97	105.27
Donations*	0.50	0.25
Royalty expense	0.35	(0.15)
Corporate social responsibility expenditure (refer note (b) below)	106.51	89.78
Security charges	174.19	158.49
Payments to non-executive directors	40.40	51.27
Bank charges and commission	253.46	630.24
Selling and distribution expenses	81.87	63.55

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Changes in expected credit loss in receivables	-	378.45
Foreign exchange fluctuations	711.43	74.59
Net loss on disposal of property, plant and equipment	2.18	-
Miscellaneous expenses	184.64	147.85
Total	4,647.40	4,796.15

* Donations above include Rs. 0.50 lakhs (2020 - Rs. 0.25 lakh) paid to the Communist Party of India (Marxist).

(a) Auditors Remuneration

	Year ended
Particulars	March 31, 2021	March 31, 2020
Statutory Audit fee (including fees for quarterly reviews)	34.00	34.00
Fees for other services	1.20	-
Total	35.20	34.00

(b) Corporate Social Responsibility expenditure

	Year ended
Particulars	March 31, 2021	March 31, 2020
Amount required to be spent as per Section 135 of the Act	105.15	109.93
Amount spent during the year on :
1. Construction/ acquisition of any assets	-	-
1. On Purposes other than Construction/ acquisition of any assets	106.51	110.60

* Net of amount paid to Astra foundation 2021: Rs. Nil (2020 - Rs. 20.82 lakhs).

Note 27 (c) : Tax Expense

	Year ended
Particulars	March 31, 2021	March 31, 2020
	Amount	Amount
Current Tax
Current tax on profits for the year	1,150.94	1,999.52
Adjustments for current tax of prior periods	(32.16)	-
Total current tax expense	1,118.78	1,999.52
Deferred Tax
Decrease (increase) in deferred tax assets	8.74	142.44
(Decrease) increase in deferred tax liabilities	(158.06)	(632.20)
Total Deferred tax expenses/(benifits)	(149.32)	(489.76)
Income Tax Expense	969.46	1,509.76

Note 27(d): Reconciliation of tax expenses and accounting profit multiplied by tax rate:

		Year ended
Particulars	March 31, 2021	March 31, 2020
Profit before income tax expense	3,854.63	5,913.91
Income tax rate	25.17%	25.17%
Income tax expense	970.13	1,488.41
Tax effect on amounts which are not taxable in calculating taxable income:
i) Effect of tax on disallowed expenses	21.83	(15.16)
ii) Tax of Earlier years	(32.16)	-

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

iii) Effect of share of loss from Joint venture on which no deferred tax asset is created	71.43	32.44
iv) Indexation on Land	(45.18)	-
v) Effect of Deferred tax asset not created on set off or carried forward losses from Subsidiaries	(9.50)	2.75
vi) Effect of different rate of tax at subsidiaries	(4.64)	1.32
vii) Others	(2.45)	-
Income tax recognised in statement of profit and loss	969.46	1,509.76

Note 28: Finance cost

	Year ended
Particulars	March 31, 2021	March 31, 2020
Interest expense
On term loans	12.28	94.03
On working capital loans	888.38	249.66
Interest on others	29.58	2.01
Interest on advances received from customers	684.60	500.50
Other Finance Charges	697.56	-
Total	2,312.40	846.20

Net Debt Reconciliation

		Year ended
Particulars	March 31, 2021	March 31, 2020
	Amount	Amount
Cash and cash equivalents	1,751.63	908.38
Liquid investments	1,409.60	1,304.70
Current borrowings	(12,155.45)	(5,486.23)
Current maturities of long term debt	-	(475.44)
Interest accrued	(16.40)	(13.73)
Net Debt	(9,010.62)	(3,762.32)

		Assets Liabilities from financing activities
Particulars	Cash and Cash equivalents	Liquid Investments	Current borrowings	Non-current borrowings including Current maturities	Interest Accrued	Total
Net Debt as on 01 April 2019	981.19	2,023.46	(253.76)	(1436.55)	(11.67)	1,302.67
Cash flows	(72.81)	(800.80)	(5232.47)	961.11	-	(5,144.97)
Interest Expense on borrowings	-	-	-	-	(343.69)	(343.69)
Interest paid on borrowings	-	-	-	-	341.63	341.63
Fair value adjustments	-	82.04	-	-	-	82.04
Net Debt as on 31 March 2020	908.38	1,304.70	(5486.23)	(475.44)	(13.73)	(3,762.32)
Cash flows	843.25	-	(6669.22)	475.44	-	(5,350.53)

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Interest Expense on borrowings	-	-	-	-	(900.66)	(900.66)
Interest paid on borrowings	-	-	-	-	897.99	897.99
Fair value adjustments	-	104.90	-	-	-	104.90
Net Debt as on 31 March 2021	1,751.63	1,409.60	(12,155.45)	-	(16.40)	(9,010.62)

Note 29. Earnings per share

	Year ended
Particulars	March 31, 2021	March 31, 2020
Profit after tax attributable to owners of the Company	2,885.17	4,404.17
Basic:
Weighted average number of equity shares	8,66,11,675	8,66,11,675
Earnings per share (Rs.)	3.33	5.08
Diluted:
Earnings per share (Rs.)	3.33	5.08

Note: EPS is calculated based on profits excluding the other comprehensive income

Note 30: Related party disclosures

A. List of Related Parties:

Name of the Related Party	Nature of Relationship
Astra Rafael Comsys Private Limited	Joint Venture Company
Mr. S. Krishna Reddy	Relative of a KMP
Janyu Technologies Private Limited	Associate
Key managerial persons (KMP):
Mr. S. Gurunatha Reddy,	Managing Director w.e.f. April 01, 2019
Mr. M. Venkateshwar Reddy,	Joint Managing Director w.e.f. April 01, 2019
Mr. T. Anjaneyulu	Company Secretary
Mr. BVS Narasingaa Rao	Chief Financial Officer w.e.f June 24, 2019

B. Details of outstanding balances as at the year end receivable/(payable):

Name of the related parties	Nature of transactions	As at March 31, 2021	As at March 31, 2020
	Investment in equity shares*	-	-
	Investment in CCPS	200.00	-
Janyu Technologies Private Limited	Investment in Share Warrants	0.10	-
	Advance paid	21.00	-
	Amount receivable against sales of goods	162.77	90.24
Astra Rafael Comsys Private Limited	Value of Corporate guarantee	400.00	400.00
	Advance received	1,499.98	1,658.84
	Investment in shares	2,000.00	1,625.00

* Below the rounding off norm adopted by the company

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

			Year ended
Name of the related parties	Nature of balance	March 31, 2021	March 31, 2020
	Investment in Shares	375.00	-
Astra Rafael Comsys Private Limited	Sales	106.69	225.29
	Rent Received	-	4.20
	Investment in equity shares*	-	-
Janyu Technologies Private Limited	Investment in CCPS	200.00	-
	Advance Paid	21.00	-
	Investment in Share Warrants	0.10	-
Mr. S. Gurunatha Reddy	Director's remuneration	89.45	127.71
Mr. M. Venkateshwar Reddy	Director's remuneration	89.45	123.24
Mr. S. Krishna Reddy	Remuneration to relative of a director	20.13	19.00
Mr. T. Anjaneyulu	Company secretary's remuneration	16.76	15.71
Mr. BVS Narasingaa Rao	CFO's remuneration	19.33	18.67

C. Details of transactions during the year:

* Below the rounding off norm adopted by the company

Note 31: Employee benefit Obligations

a) Leave obligations

The leave obligation covers the group's liability for sick and earned leave. Refer Note-13, for details of provision made in this regard and Note 25 for details of expense during the year.

b) Defined Contribution Plan

The group has defined contribution plan namely Provident fund. Contributions are made to provident fund at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the group is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined such plan for the financial year 2020-21 is Rs. 328.03 lakhs and for the financial year 2019-20 is Rs. 327.54 lakhs.

c) Defined Benefit Plans:

Gratuity

The group operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act, 1972 or the group scheme applicable to the employee. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The group makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund.

Defined benefit plans – as per actuarial valuation on March 31, 2021

i. Expense recognised in the Statement of Profit and Loss for the year ended March 31, :

	Gratuity
Particulars	March 31, 2021	March 31, 2020
1. Current service cost	93.28	86.88
2. Interest cost (net)	8.69	(4.08)
Total expense/(gain) recognised in P&L	101.97	82.80

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

ii. Included in other Comprehensive Income

Particulars	March 31, 2021	March 31, 2020
1. Actuarial (Gain)/Loss on account of :
- Financial Assumptions	(7.57)	51.60
- Experience Adjustments	(13.20)	62.45
Total expense/(gain) recognised in OCI	(20.77)	114.05

iii. Net Liability/(Asset) recognised in the Balance Sheet as at 31st March

Particulars	March 31, 2021	March 31, 2020
1. Present value of defined benefit obligation as at 31st March	930.43	831.56
2. Fair value of plan assets as at 31st March	736.72	688.53
3. (Surplus)/Deficit	193.71	143.03
4. Current portion of the above included in provisions	107.58	95.38
5. Non current portion of the above included in provisions	86.13	47.65

iv. Changes in Obligation and fair value of plan assets during the year

Particulars	March 31, 2021	March 31, 2020
A. Change in the obligation during the year ended 31st March
1. Present value of defined benefit obligation at the beginning of the year	831.56	689.44
2. Expenses Recognised in Profit and Loss Account
- Current Service Cost	93.28	86.88
- Past Service Cost	-	-
- Interest Expense (Income)	55.06	48.39
3. Recognised in Other Comprehensive Income
- Actuarial Gain (Loss) arising from:	-	-
i. Demographic Assumptions	-	-
ii. Financial Assumptions	(7.57)	51.60
iii. Experience Adjustments	3.94	60.57
4. Benefit payments	(45.84)	(105.32)
5. Present value of defined benefit obligation at the end of the year	930.43	831.56
B.Change in Fairvalue of Assts during the year ended 31st March
1. Fair value of plan assets at the beginning of the year	688.53	740.72
- Interest Income	46.37	52.47
2. Recognised in Other Comprehensive Income - Experience adjustments
- Actual Return on plan assets in excess of the expected return	17.14	(1.88)
3. Contributions by employer (including benefit payments recoverable)	30.51	2.55
4. Employer direct benefit payments	(0.51)	(2.31)
5. Benefit payments	(45.32)	(103.02)
6. Fair value of plan assets at the end of the year	736.72	688.53

The key assumptions used in accounting for gratuity are as below (All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

v. Actuarial assumptions	March 31, 2021	March 31, 2020
1. Interest rate/Discount rate	6.91%	6.81%
2. Rate of increase in compensation	6.00%	6.00%
3. Attrition rate	6.70%	6.70%

The expected rate of return on plan assets is based on the average long term rate of return expected on investments of the fund during the estimated term of obligation.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Vi. Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions would have affected the defined benefit obligation to the amounts shown below:

Particulars	For the year ended March 31, 2021	For the year ended March 31, 2020
Discount rate (If changed by 1%)
Increase	860.65	767.26
Decrease	1,011.20	906.24
Salary escalation rate (If changed by 1%)
Increase	1,015.39	909.84
Decrease	855.76	763.07

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

Expected cashflow and duration of the plan

Particulars	Gratuity plan As at
	March 31, 2021	March 31, 2020
Weighted average duration of DBO	13.11	13.48
1. Expected employer contributions in the next year	171.41	-
2. Expected benefit payments
Year 1	107.58	95.38
Year 2 - 5	309.91	277.46
Beyond 5 years	396.55	325.58

Vii. Weighted Average Asset Allocations at end of current period

Particulars	As at
	March 31, 2021	March 31, 2020
Fund held with Life Insurance Corporation of India	100%	100%
Total	100%	100%

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Viii. Risk exposure

Through its defined benefit plans, the group is exposed to a number of risks, the most significant of which are detailed below:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

Note 32:

Segment information

The Group operates in a single product segment. Additional disclosures required as per Ind AS 108, Operating Segments" are included below:

a. Geographical Segment revenue by location of customers

The following is an analysis of the Group's revenue and results from continuing operations by

	Segment Revenue
Particulars	Year ended March 31, 2021	Year ended March 31, 2020
In India	35,167.36	30,853.05
Outside India	28,923.86	15,869.38
Total	64,091.22	46,722.43

b. Geographical Segment assets

	As at
Particulars	March 31, 2021	March 31, 2020
Segment assets
India
- Financial instruments	2,745.29	2,458.88
- Others	15,559.23	18,085.74
Outside India
- Financial instruments	-	-
- Others	0.11	0.24
Consolidated total assets	18,304.63	20,544.86

Major Customers contributing more than 10 percent of revenue

		As at
Particulars	March 31, 2021	March 31, 2020
Elta Systems Limited	28,196.68	11,050.56
Gallium Arsenide Enabling TechCe	-	10,974.20
Space Applications Centre	-	5,142.60
DCX Cable Assemblies Pvt., Ltd.,	6,203.12	-

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 33: Commitments and contingent liabilities

	As at
Particulars	March 31, 2021	March 31, 2020
A. Contingent Liabilities in respect of:
a. Corporate guarantee on behalf of Astra Rafael Comsys Pvt. Ltd,	400.00	400.00
Joint Venture company
b. Disputed excise duty matters *	248.19	248.19
Total Contingent liabilities	648.19	648.19
B. Estimated amount of capital contracts remaining to be executed and not provided for	27.41	121.61
Total Capital commitments	27.41	121.61

* The group has received a favorable order against demand raised by Commissioner of Customs, Central Excise and Service Tax. However, the same has been disclosed as contingent liability as the department has preferred an appeal before Hon'ble High Court, Telangana and Andhra Pradesh.

Note 34: Events Occurring after the reporting period :

Refer to Note 40 for the final dividend recommended by the directors which is subject to approvals of shareholders in the ensuing annual general meeting.

Note 35: Assets pledged as security

The carrying amount of assets pledged as security for current and non-current borrowings are:

	As at
Particulars	March 31, 2020	March 31, 2019
Current
Financial assets
Trade receivables	26,604.71	24,907.15
Other bank balances	2,425.93	4,332.72
Other financial assets	1,287.54	45.66
Non-financial assets
Inventories	32,893.81	28,243.60
Total current assets pledged as security (A)	63,211.99	57,529.13
Non-current
Property, plant and equipment	15,271.79	11,592.99
Capital work-in-progress	-	1,205.65
Other financial assets	1,055.71	1,059.80
Total non-current assets pledged as security (B)	16,327.50	13,858.44
Total assets pledged as security ( (A + (B) )	79,539.49	71,387.57

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Note 36: Research and development

	As at
Particulars	March 31, 2021	March 31, 2020
Expenditure at Department of Scientific and Industrial Research (DSIR) approved R&D centres
Revenue expenditure	2,249.69	2,224.60
	2,249.69	2,224.60

Note 37: Financial Instruments

Fair value

The management assessed that trade receivables, cash and cash equivalents, other bank balances, other financial assets, short term borrowings, trade payables and other financial liabilities approximate their carrying amounts largely due to the short-term maturities or interest bearing nature 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 group has determined fair value of Non current financial assets and liabilities using discounted cash flow of future projected of cash flow.

Set out below, is a comparison by class of the carrying amounts and fair value of the group's financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

Financial instruments by category

The carrying value and fair value of financial instruments by categories as of March 31, 2021 were as follows:

	Fair value	Amortised		Financial assets/liabilities at	Total carrying	Total fair
	hierarchy	cost	fair value through profit or loss		value	value
Particulars			Designated	Mandatory
			upon initial
Assets:			recognition
Non-current
(a) Other financial assets	3	1,135.39	-	-	1,135.39	1,135.39
Current
(a) Trade receivables	3	26,681.79	-	-	26,681.79	26,681.79
(b) Cash and cash equivalents	3	1,751.63	-	-	1,751.63	1,751.63
(c) Bank balances other than (b) above	3	2,500.98	-	-	2,500.98	2,500.98
(d) Investments	1	-	-	1,409.60	1,409.60	1,409.60
(e) Other Financial Assets Derivative asset	2	-	-	1.48	1.48	1.48
Other	3	1,286.05	-	-	1,286.05	1,286.05
Total		33,355.84	-	1,411.08	34,766.92	34,766.92
Liabilities:
Current
Financial liabilities
(a) Borrowings	3	12,155.45	-	-	12,155.45	12,155.45
(b) Trade payables	3	3,772.59	-	-	3,772.59	3,772.59
(c) Other financial liabilities	3	1,204.22	-	-	1,204.22	1,204.22
Total		17,132.26	-	-	17,132.26	17,132.26

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

The carrying value and fair value of financial instruments by categories as of March 31, 2020 were as follows:

			Financial assets/liabilities at fair value through profit or loss
Particulars	Fair value hierarchy	Amortised cost	Designated upon initial recognition	Mandatory	Total carrying value	Total fair value
Assets:
Non-Current
(a) Other financial assets	3	1,140.28	-	-	1,140.28	1,140.28
Current
(a) Trade receivables	3	24,935.84	-	-	24,935.84	24,935.84
(b) Cash and cash equivalents	3	908.38	-	-	908.38	908.38
(c) Bank balances other than (b) above	3	4,414.86	-	-	4,414.86	4,414.86
(d) Investments in Mutual Funds	1	-	-	1,304.70	1,304.70	1,304.70
(e) Other financial assets	2	-	-	45.66	45.66	45.66
(f) Investment in Associate	3	-	-	200.46	200.46	200.46
Total		31,399.36	-	1,550.82	32,950.18	32,950.18
Liabilities:
Current
(a) Borrowings	3	5,486.23	-	-	5,486.23	5,486.23
(b) Trade payables	3	6,112.96	-	-	6,112.96	6,112.96
(c) Other financial liabilities	3	1,645.48	-	-	1,645.48	1,645.48
Total		13,244.67	-	-	13,244.67	13,244.67

Fair value hierarchy

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 (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Note 38: Financial risk management

Risk management framework

The Group's financial risk management is an integral part of how to plan and execute its business strategies. The group's management risk policy is set by the Board of Directors of the Company. The group's activities expose it to a variety of financial risks : credit risk, liquidity risk and market risk relating to foreign currency exchange rate, price and interest rate. The group's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. A summary of the risks have been given below.

Credit risk

"Credit risk is the risk arising from credit exposure to customers, cash and cash equivalents held with banks and current and non-current held-to maturity financial assets.

The group primarily deals with Public Sector Enterprises and Government undertakings. Regarding credit exposure from customers, the group has a procedure in place aiming to minimise collection losses.

The carrying amount of trade receivables, deposits, cash and bank balances, bank deposits and interest receivable on deposits represents group's maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Bank deposits and cash balances are placed with reputable banks and deposits are with reputable government, public bodies and others.

The credit quality of financial assets is satisfactory, taking into account the allowance for credit losses.

The group's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers operate.

An impairment analysis is performed at each reporting date on an individual basis for major receivables. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The group also holds deposits as security from certain customers to mitigate credit risk.

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

a. Trade and other receivables

The group's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate and are derived from revenue earned from customers primarily located in India. The group has a process in place to monitor outstanding receivables on a monthly basis.

The group's exposure to credit risk for trade and other receivables where simplified approach of recognising expected credit loss is recognised

	Carrying amount As at
Particulars	March 31, 2021	March 31, 2020
Trade receivables (Gross)	27,531.79	25,902.39
Less: Expected credit loss	(850.00)	(966.55)
Trade receivables as per the financial statements	26,681.79	24,935.84

The group's exposure to credit risk for financial assets other than trade receivables, where 12 month expected credit loss is recognised

	Carrying amount
Particulars	As at
	March 31, 2020	March 31, 2019
Cash and cash equivalents	1,751.63	908.38
Other bank balances	2,500.98	4,414.86
Investment in Associate	200.46	-
Investment in Mutual funds	1,409.60	1,304.70
Other financial assets	2,422.92	1,185.94
Less: Expected credit loss	-	-
Trade receivables as per the financial statements	8,285.59	7,813.88

Movement in Expected Credit loss

	As at
Particulars	March 31, 2021	March 31, 2020
Opening balance	966.55	589.00
Movement in Expected Credit loss	(116.55)	377.55
Net re-measurement of ECL	850.00	966.55

Significant estimates and judgements

Provision for expected credit loss on Trade receivables

The allowance for doubtful debts are based on assumptions about risk of default and expected loss rates. The group uses judgement in making these assumptions and selecting the inputs to the provision for expected credit loss calculation, based on the group's past history, existing market conditions as well as forward looking estimates at the end of each reprting period. The group applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Following are the financial assets carried at amortised cost at the reporting date.

	As at
Particulars	March 31, 2021	March 31, 2020
Trade receivables	26,681.79	24,935.84
Cash and cash equivalents	1,751.63	908.38
Other bank balances	2,500.98	4,414.86
Other financial assets	2,421.44	1,140.28
	33,355.84	31,399.36

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Liquidity risk

Liquidity risk is the risk that the group will not be able to meet its financial obligations as they become due. The group manages its liquidity risk by ensuring, that it will always have sufficient liquidity to meet its liabilities when due. The group's Management is responsible for liquidity, funding as well as settlement management.

The group monitors the level of expected cash inflows on fianancial assets together with expected cash outflows on trade payables and other financial liabilities. As at 31 March 2021, the expected cash flows from financial assets excluding restricted balances is Rs. 28,092.87 lakhs (As at March 31, 2020 - Rs. 26,286.20 lakhs).

Following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.

(i) Financing arrangements

The group has access to the following undrawn borrowing facilities at the end of the reporting period:

	As at
Particulars	March 31, 2021	March 31, 2020
Expiring within one year (bank overdraft and other facilities)	6,644.56	4,790.24

(ii) Maturities of financial liabilities

As at March 31, 2021

Particulars	within 12 months	1-5 Years	More than five years	Total carrying amount
Borrowings	12,155.45	-	-	12,155.44
Trade payables	3,772.59	-	-	3,772.58
Other financial liabilities (excluding trade payables)	1,204.22	-	-	1,204.22
	17,132.26	-	-	17,132.24

As at March 31, 2020

Particulars	within 12 months	1-5 Years	More than five years	Total carrying amount
Borrowings	5,486.23	-	-	5,486.23
Trade payables	6,112.96	-	-	6,112.96
Other financial liabilities (excluding trade payables)	1,645.48	-	-	1,645.48
	13,244.67	-	-	13,244.67

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Financial instruments affected by market risk include loans and borrowings and trade receivables. The sensitivity analyses in the following sections relate to the position as at March 31, 2021 and March 31, 2020.

The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other postretirement obligations; provisions; and the non-financial assets and liabilities.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2021 and 31 March 2020.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The group's exposure to the risk of changes in foreign exchange rates relates primarily to the trade/ other payables and trade/other receivables. The risks primarily relate to fluctuations in US Dollar and EURO against the functional currency of the group. The group's exposure to foreign currency changes for all other currencies is not material. The group evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. The group has not entered into derivative instruments during the year.

173

The Group foreign currency payables and receivables are as follows:

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Exposure to currency risk

The summary quantitative data about the group's gross exposure to currency risk is as follows:

		As at March 31, 2021		As at March 31, 2020
Particulars	Currency	Amount in foreign currency	Amount in functional currency	Amount in foreign currency	Amount in functional currency
Amounts Receivable	USD	100.42	7,341.71	104.22	7,885.67
	EURO	0.31	26.58	-	-
Amounts Payable	USD	23.31	1,703.99	28.70	2,171.81
	EURO	1.71	146.57	1.32	109.15

Sensitivity analysis:

A reasonably possible strengthening (weakening) of the USD, and EURO against INR would have affected the measurement of financial instruments denominated in foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecasts sales and purchases.

	Profit and loss		Equity, net of tax
Particulars	Strengthening of foreign currency	Weakening of foreign currency	Strengthening of foreign currency	Weakening of foreign currency
31-03-2021 (5% change)
USD	452.28	(452.28)	336.42	(336.42)
EURO	8.66	(8.66)	6.44	(6.44)
31-03-2020 (5% change)
USD	502.87	(502.87)	376.31	(376.31)
EURO	5.46	(5.46)	4.08	(4.08)

Price Risk

The group invests its surplus funds primarily for short tenor in debt mutual funds measured at fair value through profit or loss. The following table demonstrate the sensitivity to a reasonably possible change in the price of the investments before tax:

Particulars	Increase/(decrease) in profit before tax
	31 March 2021	31 March 2020
Increase by 1%	14.10	13.05
Decrease by 1%	(14.10)	(13.05)

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. As the group has certain debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are dependent of changes in market interest rates. Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the group's profit before tax is affected through the impact on floating rate borrowings, as follows:

Particulars	31 March 2021	31 March 2020
Change in interest rate
-increase by 50 basis points	4.50	1.72

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

-decrease by 50 basis points (4.50) (1.72)

Note 39: Capital Management

The group's objectives when managing capital are to

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders and
• Maintain an optimal capital structure to reduce the cost of capital.

As at March 31, 2021, the group has only one class of equity shares. Consequent to the above capital structure there are no externally imposed capital requirements.

The group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The group monitors capital using a gearing ratio, which is debt divided by total capital. The group includes within debt, interest bearing loans and borrowings. Capital gearing ratio

	As at
Particulars	March 31, 2021	March 31, 2020
Borrowings
Current - Short term borrowings	12,155.45	5,486.23
Current maturities of long term borrowings	-	475.44
Debt	12,155.45	5,961.67
Equity
Equity share capital	1,732.23	1,732.23
Other equity	54,138.27	52,282.85
Total capital	55,870.50	54,015.08
Net debt to equity ratio	22%	11%

Note 40: Dividends

Particulars	Amount
a) Proposed dividend Rs. 1.20/- per fully paid-up share subject to the approval of shareholders in ensuing annual general meeting.	1,039.34
b) Final dividend declared for the year ended March 31, 2020 and paid during the year ended March 31, 2021 - Rs. 1.20/- per fully paid-up share	1,039.34
c) Final dividend declared for the year ended March 31, 2019 and paid during the year ended March 31, 2020 - Re. 0.25/- per fully paid-up share	216.53

41. Short term Lease

a) Nature of lease	The group has entered into a lease as lessee for its office premises
b) Short term lease exemption	The lease is cancellable at option of both the parties by giving 3 months notice in advance. Accordingly, the group has identified the lease as a short term lease and opted the short term lease exemption.
c) Short term lease expense	Expenses recognised on account of short term leases is Rs. 82.72 lakhs (refer note 27)
d) Cash ouflow	The lease rent paid is Rs. 82.72 lakhs

42. Impact of Covid-19 pandemic on the business:

The spread of COVID-19 has severely impacted businesses around the globe. In many countries, including India, there has been severe disruption to regular business operations due to lock-downs, disruptions in transportation, supply chain, travel bans, quarantines, social distancing and other emergency measures. The group is engaged in the business of design, development and management of sub-systems for Radio frequency and microwave systems used in defence, space, meteorology and telecommunication; manufacture, supply, installations and

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

service of electronic machinery, components, spares and other electronic parts; defence communication and specific Electronic Warfare; designing, developing, manufacturing and dealing in space crafts, launching vehicles, robots for the sectors of aviation and aerospace, deep space, defence and internal security.

Except for the delay due to the lockdown announced by the government, the Company has managed uninterrupted services to its Customers till date and will continue the same for the next 3 to 6 weeks based on Raw Material stocks available at the plant. The Company is able to continue their operations following all precautions and compliance to COVID19 instructions.

Further, the company has carried out an assessment of the following based on certain assumptions, cumulative knowledge and understanding of the business, current indicators of future economic conditions:

• a) Going concern based on the available cash flows and approved annual operating plan;
• b) the recoverability of receivables considering past experience and communication with the customers;
• c) investments in Joint venture, inventories and carrying value of property, plant and equipment expects to recover the carrying amount of these assets as at the balance sheet date.

Based on the assessment management has concluded that there are no material adjustments required in the financial statements.

Management believes that it has taken into account all the possible impact of known events arising from COVID 19 pandemic in the preparation of the financial statements. However, the impact assessment of COVID 19 is a continuing process given the uncertainties associated with its nature and duration. The group will continue to monitor any material changes to future economic conditions.

Note 43: Additional Information required by Schedule III

		Net Assets		Share in Profit/Loss		Share in other comprehensive income		Share in total comprehensive income
Name of the entity in the Group	As % of consolidated net assets	Amount	As a % of consolidated Profit/Loss	Amount	As a % of consolidated other comprehensive income	Amount	As a % of total comprehensive income	Amount
Parent Astra Microwave Products Limited
Balance as at March 31, 2021	93.97%	52,502.78	82.95%	2,393.20	147.81%	14.17	83.16%	2,407.37
Balance as at March 31, 2020	96.82%	52,295.15	110.87%	4,883.03	117.42%	(84.50)	110.76%	4,798.53
Subsidiaries incorporated in India Bhavyabhanu Electronics Private Limited
Balance as at March 31, 2021	2.50%	1,394.72	24.02%	693.03	14.37%	1.38	23.99%	694.41
Balance as at March 31, 2020	0.21%	114.97	-4.73%	(208.21)	1.03%	(0.73)	-4.82%	(208.94)
Astra foundation Balance as at March 31, 2021 Balance as at March 31, 2020 Subsidiaries incorporated outside India AELIUS semi-conducted Pte. ltd. Singapore	0.00% 0.01%	2.16 2.79	-0.02% 0.02%	(0.60) 1.09	0.00% 0.00%	- -	-0.02% 0.03%	(0.60) 1.09
Balance as at March 31, 2021	0.60%	334.59	1.97%	56.82	-62.18%	(5.96)	1.76%	50.86

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Balance as at March 31, 2020 Investment as per equity method Joint venture incorporated in India Astra Rafael Comsys Private Limited	0.53%	283.73	-0.37%	(16.16)	-18.45%	13.27	-0.07%	(2.89)
Balance as at March 31, 2021	2.52%	1,409.44	-9.85%	(284.16)	0.00%	-	-9.82%	(284.16)
Balance as at March 31, 2020	2.44%	1,318.60	-2.93%	(128.89)	0.00%	-	-2.98%	(128.89)
Investment Carried at FVTPL: Associate incorporated in India Janyu Technologies Private Limited
Balance as at March 31, 2021	0.36%	200.46	0.01%	0.36	0.00%	-	0.01%	0.36
Balance as at March 31, 2020	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Non Controlling Interests in all subsidiaries
Balance as at March 31, 2021	0.00%	(0.16)	0.00%	-	0.00%	-	0.00%	-
Balance as at March 31, 2020	0.00%	(0.16)	0.00%	-	0.00%	-	0.00%	-
Consolidation Adjustments
Balance as at March 31, 2021	0.05%	26.51	0.92%	26.51	0.00%	-	0.92%	26.51
Balance as at March 31, 2020 Total	0.00%	-	0.00%	-	0.00%	-	0.00%	-
Balance as at March 31, 2021		55,870.50		2,885.17		9.59		2,894.76
Balance as at March 31, 2020		54,015.08		4,404.17		(71.97)		4,332.20

Note 44: Interest in other entities

The consolidated financial statements of the Group includes subsidiaries, joint venture and associate listed in the table below with the nature of Interest and country of incorporation of the entity

Name	Nature of interest	Country of incorporation	by group	% effective equity interest	% effective equity interest by NCI
			31 March 2021	31 March 2020	31 March 2021	31 March 2020
Bhavyabhanu Electronics Private Limited*	Subsidiary	India	100.00%	100.00%	0.00%	0.00%
AELIUS Semiconductors Pte. Ltd. Singapore	Subsidiary	Singapore	100%	100%	-	-
Astra foundation	Subsidiary	India	99.90%	99.90%	0.10%	0.10%
Astra Rafael Comsys Private Limited	Joint venture	India	50%	50%	NA	NA
Janyu Technologies Private Limited	Associate	India	9.09%	0%	NA	NA

*Non controlling interest is below the rounding off norm adopted by the company

Interest in Joint venture

The Company has invested 50 % in Astra Rafael Comfys Private Limited (Astra Rafael), a Joint venture with Rafael to focus on defence communication and specific Electronic Warfare segment and a business plan in terms

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

of potential business opportunities. The Group's interest in Astra Rafael is accounted for using the equity method in the consolidated financial statements. Summarised financial information of the joint venture, based on its Ind AS financial statements, and reconciliation with the carrying amount of the investment in consolidated financial statements are set out below:

Commitments and contingent liabilities in respect of Joint Ventures

Particulars	As at
	31 March 2021	31 March 2020
Estimated amount of capital contracts remaining to be executed and not	-	593.34
provided for

Summarised financial information of Astra Rafael Comsys Private Limited (Joint venture)

Particulars	As at
	31 March 2021	31 March 2020
Current assets
Inventories	5,107.26	1,631.75
Financial assets
i. Investments	250.55	209.32
ii. Cash and cash equivalents	340.72	156.20
iii. Other bank balances	590.87	562.20
iv. Trade Receivables	64.20
Current tax assets (net)	6.31	3.97
Other current assets	2,264.77	1,921.99
Total Current Assets	8,624.68	4,485.43
Non-current assets
Property, plant and equipment	1,649.18	1,847.88
Capital Work-in-progress	268.92	268.92
Intangible assets	16.97	41.35
Financial assets
i. Other financial assets	4.84	6.35
Deferred tax assets (Net)	332.79	344.38
Total Non Current Assets	2,272.70	2,508.88
Current liabilities
Financial liabilities
i. Trade payables
a) Total outstanding dues of Micro Enterprises
and Small Enterprises b) Total outstanding dues of creditors other than	103.63	113.97
Micro Enterprises and Small Enterprises	793.42	387.58
ii. Other financial liabilities	43.55	335.10
Other current liabilities	6,844.87	3,227.44
Total current liabilities	7,785.47	4,064.09

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

Non Current Liabilities		- -
Total Non current liabilities		- -
Net Assets	3,111.91	2,930.22
Reconciliation of group's share of Net assets in Joint venture with the carrying value
Particulars		As at
	31 March 2021	31 March 2020
Group's Share of Net assets in the Joint venture in Rs.	1,555.95	1,465.11
Less: Unrealised gain on sale of Property, plant and equipment	(146.51)	(146.51)
Total	1,409.44	1,318.60
Carrying value of investment under equity method	1,409.44	1,318.60
Summarised statement of Profit and Loss of Astra Rafael Comsys Private Limited
	Year ended	Year ended
Particulars	31 March 2021	31 March 2020
Revenue
Revenue from operations	335.74	215.24
Other income	58.23	78.82
Total Revenue	393.97	294.06
Expense
Employees benefits expense	534.11	480.63
Depreciation and amortisation expenses	256.55	170.56
Other expenses	160.04	217.50
Tax expense
- Current tax	-	-
- Deferred tax	11.59	(316.65)
Total Expense	962.29	552.04
Loss from continuing operations	(568.32)	(257.98)
Profit from discountinued operations	-	-
Loss for the year	(568.32)	(257.98)
Other compehensive income	-	-
Total comprehensive income	(568.32)	(257.98)

Interest in Associate

The company has invested 9.09% during the year in Janyu Technologies Private limited, a company domiciled in India engaged in the business of designing, developing, manufacturing and dealing in space crafts, launching vehicles, robots for the sectors of aviation and aerospace, deep space, defence and internal security etc. Summarised financial information of the associate is set out below.

Summarised financial information of Janyu Technologies Private Limited (Unaudited)

Particulars		As at
	31 March 2021	31 March 2020
	Amount	Amount
Current assets
Inventories	161.37	55.66
Financial assets
i. Trade receivable	206.13	192.17

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

ii. Cash and Bank Balances	0.47	0.98
iii. Other bank balances	176.00	-
Other current assets	93.79	8.02
Total Current Assets	637.76	256.83
Non-current assets
Property, plant and equipment	213.70	180.12
Financial assets
i. Loans and advances	11.45	5.45
Deferred tax assets (Net)	-	1.04
Total Non Current Assets	225.15	186.61
Current liabilities
Financial liabilities
i. Current borrowings	310.24	94.06
ii. Trade payables
a) Total outstanding dues of Micro Enterprises
and Small Enterprises	-	-
b) Total outstanding dues of creditors other than
Micro Enterprises and Small Enterprises	152.05	151.53
Provisions	0.60	0.60
Other current liabilities	78.73	76.60
Total current liabilities	541.62	322.79
Non Current Liabilities
Financial liabilities
i. Non current borrowings	10.10	13.43
Other Non current liabilities	7.50	7.50
Total liabilities	17.60	20.93
Net Assets	303.69	99.72

Reconciliation of group's share of Net assets in Associate with the carrying value

Particulars	Amount	Amount
	31 March 2021	31 March 2020
Group's Share of Net assets in the associate in Rs.	27.61	-
Add: Consideration paid in excess of book value of net assets	172.85	-
Total	200.46	-
Carrying value of investment under equity method	-	-

Summarized statement of Profit and Loss of Janyu Technologies Private Limited [unaudited]

Particulars	Year ended	Year ended
	31 March 2021	31 March 2020
Revenue
Revenue from operations	430.37	273.10
Other income	4.64	-
Total Revenue	435.01	273.10
Expense
Cost of materials consumed	190.53	110.14
Employees benefits expense	92.13	84.73
Depreciation and amortisation expenses	24.96	24.96
Other expenses	123.41	50.14
Tax expense

(All amounts are in Indian rupees lakhs, except share data and where otherwise stated)

- Current tax	-	-
- Deferred tax	-	(1.78)
Total Expense	431.03	268.19
Profit for the year	3.98	4.91
Other comprehensive income	-	-
Total comprehensive income	3.98	4.91

45. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosures.

For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/ N-500016

For and on behalf of the Board of Directors

Sunit Kumar Basu Partner Membership Number: 55000

Place : Hyderabad Date : May 26, 2021 AVINASH CHANDER Chairman DIN :- 05288690

M.V REDDY Joint Managing Director DIN : - 00421401

S. GURUNATHA REDDY Managing Director DIN : - 00003828

B V S NARASINGA RAO Chief Financial Officer

T. ANJANEYULU

Company Secretary FCS :- 5352

NOTES

NOTES

Astra Microwave Products Limited

www.astramwp.com