l) Provisions:
Provisions are recognized 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
embodying economic benefits will be
required to settle the obligation and a
reliable estimate can be made of the
amount of the obligation.
If the effect of the time value of money is
material, provisions are determined by
discounting the expected future cash flows
at a pre-tax rate that reflects current
market assessments of the time value of
money and the risks specific to the liability.
Where discounting is used, the increase in
the provision due to the passage of time is
recognized as a finance cost.
The amount recognized as a provision is
the best estimate of the consideration
required to settle the present obligation at
reporting date, taking into account the
risks and uncertainties surrounding the
obligation. When some or all of the
economic benefits required to settle a
provision are expected to be recovered
from a third party, the receivable is
recognized as an asset if it is virtually
certain that reimbursement will be
received and the amount of the receivable
can be measured reliably.
m) Contingent Liabilities
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.
Provisions, contingent liabilities, contingent
assets and commitments are reviewed at
each balance sheet date.
n) Earnings per share:
Basic earnings per share is computed
using the weighted average number of
equity shares outstanding during the
period. Diluted earnings per share is
computed using the weighted-average
number of equity and dilutive equivalent
shares outstanding during the period
except where the results would be
anti-dilutive.
o) Leases
The Company evaluates each contract or
arrangement, whether it qualifies as lease
as defined under Ind AS 116.
The Company as a lessee
The Company enters into an arrangement
for lease of land. Such arrangements are
generally for a fixed period but may have
extension or termination options. The
Company assesses, whether the contract
is, or contains, a lease, at its inception. A
contract is, or contains, a lease if the
contract conveys the right to -
a) control the use of an identified asset,
b) obtain substantially all the economic
benefits from use of the identified asset,
and
c) direct the use of the identified asset
The Company determines the lease term
as the non-cancellable period of a lease,
together with periods covered by an
option to extend the lease, where the
Company is reasonably certain to exercise
that option.
The Company at the commencement of
the lease contract recognizes a
Right-of-Use (RoU) asset at cost and
corresponding lease liability, except for
leases with term of less than twelve
months (short term leases) and low-value
assets. For these short term and low value
leases, the Company recognizes the lease
payments as an operating expense on a
straight-line basis over the lease term.
The cost of the right-of-use asset
comprises the amount of the initial
measurement of the lease liability, any
lease payments made at or before the
inception date of the lease, plus any initial
direct costs, less any lease incentives
received, plus estimated cost of
dismantling of assets. Subsequently, the
right-of- use assets are measured at cost
less any accumulated depreciation and
accumulated impairment losses, if any.
The right-of-use assets are depreciated
using the straight-line method from the
commencement date over the shorter of
lease term or useful life of right-of-use
asset. The estimated useful life of
right-of-use assets are determined on the
same basis as those of property, plant and
equipment.
The Company applies Ind AS 36 to
determine whether an RoU asset is
impaired and accounts for any identified
impairment loss as described in the
impairment of non-financial assets below.
For lease liabilities at the commencement
of the lease, the Company measures the
lease liability at the present value of the
lease payments that are not paid at that
date. The lease payments are discounted
using the interest rate implicit in the lease,
if that rate can be readily determined, if
that rate is not readily determined, the
lease payments are discounted using the
incremental borrowing rate that the
Company would have to pay to borrow
funds, including the consideration of
factors such as the nature of the asset and
location, collateral, market terms and
conditions, as applicable in a similar
economic environment.
After the commencement date, the
amount of lease liabilities is increased to
reflect the accretion of interest and
reduced for the lease payments made.
The Company recognizes the amount of
the re-measurement of lease liability as
an adjustment to the right-of-use assets.
Where the carrying amount of the
right-of-use asset is reduced to zero and
there is a further reduction in the
measurement of the lease liability, the
Company recognizes any remaining
amount of the re-measurement in
statement of profit and loss.
Lease liability payments are classified as
cash used in financing activities in the
statement of cash flows.
The Company as a lessor
Leases under which the Company is a
lessor are classified as finance or
operating leases. Lease contracts where
all the risks and rewards are substantially
transferred to the lessee, the lease
contracts are classified as finance leases.
All other leases are classified as operating
leases.
p) Cash flow statement:
Cash flows are reported using the indirect
method, whereby profit for the period is
adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals
of past or future operating cash receipts or
payments and item of income or expenses
associated with investing or financing
cash flows. The cash from operating,
investing and financing activities of the
Company are segregated.
q) Exceptional items:
Exceptional items refer to items of income
or expense, including tax items, within the
statement of profit and loss from ordinary
activities which are non-recurring and are
of such size, nature or incidence that their
separate disclosure is considered
necessary to explain the performance of
the Company.
r) Recent pronouncements
Ministry of Corporate Affairs ("MCA")
notifies new standards or amendments to
the existing standards under Companies
(Indian Accounting Standards) Rules from
time to time.
For the year ended March 31, 2025, MCA
has notified Ind AS-117 Insurance Contracts
and amendments to existing Ind AS 116-
Leases, relating to sale and leaseback
transactions, w.e.f. April 1, 2024
The Company has determined, based on
its evaluation, that it does not have any
significant impact in its financial
statements.
Pursuant to the IPO, the equity shares of the Company were listed on the National Stock Exchange ("NSE") and Bombay Stock
Exchange ("BSE") on June 04, 2025. Post listing shareholding of Promoter and Promoter Group has been diluted to 66.43% from
90.04%. Refer Note 51.
E. During the 5 years immediately preceeding March 31, 2025, there are no shares allotted as fully paid up pursuant to contract(s)
without payment being received in cash except for preferential allotments made to certain promoters on November 01, 2021 and
November 27, 2021 wherein unsecured loans to such promoters are converted into fully paid up shares . Also the company on
July 23, 2024 has allotted its shareholders 30 fully paid up Bonus Equity shares for 1 fully paid up Equity Share held. For this purpose,
the company has decided to utilise ^ 385.11 Millions out of its free reserves available as on the bonus issue record date i-e, on
June 28, 2024.
34. Disclosures As Required By Ind AS 19 Employee Benefits
The Company has classified the various benefits provided to employees as under:-
(a) Defined contribution plans
Provident fund
The Company has recognized the following amounts in the statement of profit and loss:
Employers' contribution to provident fund :- FY 2024-25 ? 0.79 millions ( FY 2023-24: ? 0.70 Millons)
(b) Defined benefit plans
Gratuity
In accordance with Indian Accounting Standard 19, actuarial valuation have been carried out in respect of the
aforesaid defined benefit plans based on the following assumptions-
Economic Assumptions
The discount rate and salary increases assumed are the key financial assumptions and should be considered
together; it is the difference or 'gap' between these rates which is more important than the individual rates in
isolation.
Discount Rate
The discounting rate is based on the gross redemption yield on medium to long term risk free investments. The
estimated term of the benefits/obligations works out to zero years. For thecurrent valuation a discount rate of
6.75% p.a. (Previous Year 7.10% p.a.) compound has been used for gratuity obligation.
Salary Escalation Rate
The salary escalation rate usually consists of at least three components, viz. regular increments, price inflation
and promotional increases. In addition to this any commitments by themanagement regarding future salary
increases and the Company's philosophy towards employee remuneration are also to be taken into account.
Again a long-term view as to trend insalary increase rates has to be taken rather than be guided by the
escalation rates experienced in the immediate past, if they have been influenced by unusual factors.
The assumptions used are summarized in the following table:
36. Segment Reporting
(a) Primary Segment
Operating segments have been identified on the basis of nature of products, risk and returns associated therewith and other
quantitative criteria specified in Ind AS 108 "Operating Segments". The chief operational decision maker monitors the
operating results of its business segment separately for the purpose of making decision about resource allocation and
performance assessment. Accordingly, below operating segments have been identified and reported.
The company is primarily dealing in manufacturing of stainless steel (SS) pipes and tubes only. Hence, primary segment
reporting as per Ind AS 108 is not applicable.
The company relies on revenues from transactions with a single customer and receives more than 10% of its revenues from
transactions with such customers. The amount of revenue from such customers is t 1,297.99 Millions ( FY 2023-24 : t 650.10
Millions).
Note:
(i) The above related party transactions have been reviewed periodically by the Audit Committee/Board of Directors of the
Company vis-a-vis the applicable provisions of the Companies Act, 2013, and justification of the rates being charged/ terms
thereof and approved the same.
(ii) Promoters of the company have given irrevocable and unconditional Personal Guarantee of in bank finance.
(iii) The details of guarantees and collaterals extended by the related parties in respect of borrowings of the Company
have been given at the respective notes.
38. Leases
The Company as a lessee
As a lessee, the Company leases Land. The Company previously classified leases as operating or finance leases based on its
assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the
underlying asset to the Company. Under Ind AS 116, the Company recognizes right-of-use assets and lease liabilities for this
lease.
The Company has tested its right-of-use assets for impairment on the date of transition and has concluded that there is no
indication that the right-of-use assets are impaired.
The Company used a number of practical expedients when applying Ind AS 116 to leases previously classified as operating
leases under Ind AS 17. In particular, the Company:
• Applied a single discount rate to a portfolio of leases with reasonably similar characteristics.
• Relied on previous assessments on whether leases are onerous as an alternative to performing an impairment review -
there were no onerous contracts as at 1 April 2021
• Did not recognize right-of-use assets and liabilities for leases for which the lease term ends within 12 months of the date of
initial application;
• Excluded initial direct costs from the measurement of the right-of-use asset at the date of initial application;
The Company as a lessee
The Company is not required to make any adjustments on transition to Ind AS 116 for leases in which it acts as a lessor. The
Company accounted for its leases in accordance with Ind AS 116.
39. Financial Instruments - Accounting Classifications and Fair Value Measurements
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current
liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to
short-term maturities of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as
interest rates and individual credit worthiness of the counter party. Based on the evaluation, allowances are taken to
account for the expected losses of these receivables.
Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 : Other techniques for which all inputs which have a significant effects on the recorded fair value are observable,
either directly or indirectly.
Level 3 : Techniques which use inputs that have a significant effects on the recorded fair value that are not based on
observable market data.
40. Financial Risk Management Objectives And Policies
The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings, lease liabilities, trade and
other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's
principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from
its operations. The Company also holds quoted and unquoted investments.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the
management of these risks. The Company's senior management ensures that the Company's financial risk activities are
governed by appropriate policies and procedures and that financial risks are identified, measured and managed in
accordance with the Company's policies and risk objectives.
A. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises two types of risk: currency risk and other price risk, such as equity price risk and
commodity risk. Financial instruments affected by market risk include deposits, investments, derivative financial instruments
and borrowings.
B. Interest rate risk
The Company is exposed to changes in interest rates due to its financing, investing and cash management activities. The
risks arising from interest rate movements arise from borrowings with variable interest rates. The Group manages its interest
rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.
For Company's floating rate borrowings, the analysis is prepared assuming that the amount of the liability outstanding at the
end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used, which
represents management's assessment of the reasonably possible change in interest rate.
C. Foreign currency risk
Refer Note 35 for foreign currency exposure as at March 31, 2025 and March 31, 2024 respectively.
The Company operates locally, however, the nature of its operations requires it to transact in in several currencies and
consequently the Company is exposed to foreign exchange risk in various foreign currencies.
The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows
established risk management policies.
I. Foreign Currency Exposure
Refer Note 35 for foreign currency exposure as at March 31, 2025 and March 31,2024 respectively.
II. Foreign Currency Sensitivity
1% increase or decrease in foreign exchange rates will have the following impact on the profit before tax
D. Credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this,
the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current
economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set
accordingly.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant
increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is significant increase
in credit risk the company compares the risk of a default occurring at the reporting date with the risk of default as the date of
initial recognition. It considers reasonable and supportive forwarding-looking information such as:
(i) Actual or expected significant adverse changes in business,
(ii) Actual or expected significant changes in the operating result of the counterparty's business,
(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to
mere its obligation,
(iv) Significant increase in credit risk on other financial instruments of the same counterparty.
(v) Significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees
or credit enhancements.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a
repayment plan with the Company. The Company categorises a loan or receivable for write off when a debtor fails to make
contractual payments greater than 2 years past due. Where loans or receivables have been written off, the Company
continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are
recognised in profit or loss.
E. Liquidity Risk
Liquidity Risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable
price. The company's treasury department is responsible for liquidity, funding as well as settlement management. In addition,
processes and policies related to such risks are overseen by senior management. Management monitors the company's net
liquidity position through rolling forecast on the basis of expected cash flows.
41. Utilisation of Borrowed Funds and Share Premium
(i) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s), entity(ies) including foreign entities (intermediaries) with the understanding
that the intermediary shall directly or indirectly lend or invest in other person or entities identified in any manner whatsoever
by or on behalf of the Company (ultimate beneficies) or provide any guarantee, security of the like to or on behalf of the
ultimate beneficiary.
(ii) The Company has not received any from any person(s), entity(ies) including foreign entities (funding party with the
understanding that the Company shall directly or indirectly lend or invest in other person or entities identified in any manner
whatsoever by or on behalf of the Funding party (ultimate beneficies) or provide any guarantee, security of the like to or on
behalf of the ultimate beneficiary.
42. Relationship and Transactions with struckoff companies
The company has not entered into any transactions with struck off companies.
43. Compliance with number of layers of companies
The Company has complies with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013
read with Companies (Restriction on number of Layers) Rules, 2017.
47. Undisclosed Income
The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 ( Such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).
48. Details of Benami Property, if any, held and proceedings thereon
There are no benami properties held by the company and therefore no proceeding has been initiated or pending against the
company under Benami Transactions (Prohibition) Act, 1988 as on reporting date.
49. Audit Trail
As per the requirements of Rule 3(1) of the Companies (Accounts) Rules 2014, the Company uses an accounting software for
maintaining its books of account that have a feature of, recording audit trail of each and every transaction, creating an edit
log of each change made in the books of account along with the date when such changes were made and who made those
changes within such accounting software. This feature of recording audit trail has operated throughout the year and was not
tampered with during the year.
In respect of aforesaid accounting software, after thorough testing and validation, it was noted that audit trail was not
available for changes made in master data. In respect of master data changes, the Company has established and
maintained an adequate internal control framework and based on its assessment, believes that this was effective for the
year ended March 31, 2025.
The audit trail has been preserved by the company as per statutory requirements for record retention.
50. Pre IPO Placement made during the year
The company has made Pre-IPO placement (Private Placement) of its Equity Shares on October 21, 2024 amounting to t 550
million at an issue price of t 125 per Equity Share (including premium of t 115) to Malabar India Fund Limited and Carnelian
Bharat Amritkaal Fund. The said Pre-IPO placement was approved by the company's shareholders vide resolution dated
October 17, 2024. The Pre-IPO proceeds so raised were utilised for the purposes for which they were raised. Pending utilization
of the funds, the company temporaily invests unspent proceeds with bank deposits.
51. Events occuring after reporting date
Subsequent to the year ended March 31, 2025, the Company has completed Initial Public Offer ("IPO") of 15,714,200 equity
shares of face value of t 10 each at an issue price of t 140 per Equity share (including premium of t 130), comprising of fresh
issue of 15,714,200 shares, out of which 15,714,200 equity shares were issued at an offer price of t 140 per Equity share to all the
allottees aggregating to t 2,200 million. Pursuant to the IPO, the equity shares of the Company were listed on the National
Stock Exchange ("NSE") and Bombay Stock Exchange ("BSE") on June 04, 2025.
52. Previous year figures have been regrouped and recasted wherever necessary to confirm
current year's classification.
As per our report of even date attached For and on behalf of the Board of Directors
For, Dhirubhai Shah & Co LLP Samarth Patel Jagrut Patel
Chartered Accountants Chairman and Whole-time Managing Director
Firm Registration Number: 102511W/W100298 Director DIN: 06785595
DIN: 08036100
Parth S. Dadawala
Partner Ravi Patel Nishita Sanghvi
Membership number: 134475 Chief Financial Officer Company Secretary
Date: June 24, 2025 Date: June 24, 2025
Place: Rajpur, Mehsana Place: Rajpur, Mehsana
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