05.03. Contingent Liabilities & Commitments

05.03.01. Details are furnished below (Amount in Indian Rupees in Lakhs,unless stated otherwise Lakh)

05.03.02. The Company makes the assessment of likely outcome, based on the views of internal legal counsel and in consultation with external legal counsel representing the Company. The management is of the view that the outcome of the aforesaid cases shall be in favour of the company. The aforesaid amounts exclude Interest and Penalty if any,which cannot be quantified presently. Based on the above, the management is of the view that no provision is required in the books of accounts, at this stage.

05.04. Realization of the amount due to the Company

In the opinion of the management the current assets and Loans and Advances will be recovered in full, in the normal course of business.

05.05. Disclosure of amount due to MSME

05.05.01. Our company has no dealings with MSME organizations (as per Micro, Small and Medium Enterprises Development Act, 2006); and hence we have not filed MSME returns with MCA.

05.05.02. As a matter of caution, we have written to all suppliers to confirm if they would come under the classification of MSME. None of them have confirmed the same and hence we can conclude that the trade payable is not to MSME’s.

05.05.03. Accordingly, disclosure of details of amount due to in respect of Micro, Small and Medium Enterprises, vide Notification dated 11th October, 2018, issued by Ministry of Corporate Affairs, are not applicable to the Company for the year under report.

05.06. Group Gratuity Fund

The Retirement Benefit Funds towards gratuity are administered by LIC under Group Gratuity Scheme.

05.08. Investor Education & Protection Fund

Whenever the company declares dividend [or acceptance, including renewal, of Public Deposits or other nature covered thereof), it transfers the amount equivalent to an earmarked account, meant for the same, by opening an account with a bank. An unpaid amount, if any, lying in the aforesaid amount shall be transferred to Investor Education & Protection Fund, by taking Demand Draft, from the Bank.

05.09. Segment Reporting

The Company has two business segment (1) Manufacture and sale of steel forgings; (2) Land and Development described as "Other Operating Income" The Company is engaged in the business of manufacturing of Auto Ancillary part (Manufacture and sale of steel forgings). It is one of the reportable segments, as per IND AS 108, Operating Segments. As the exports are mainly to Developed Countries, geographical risk is not different from domestic market and hence no separate secondary segment disclosure is required, in respect of the aforesaid reportable segments. (please refer Note No.02.12.08, which shall be read in conjunction with this note)

05.11. Financial instruments

The following notes shall be read with notes 2.12.08 and these notes form an integral part thereof; and also refer Note No.04.18 to Financial Statements, relating to Investments.

05.11.01. Financial risk management

The Company has exposure to the following risks from its use of financial instruments, namely Credit risk and Market risk

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company’s activities. The Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the risk management framework. The Audit Committee is assisted the Finance Department Finance Department undertakes reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

05.11.02. Item wise Financial Risk

The Company has exposure to the following risks from its use of financial instruments, namely Credit risk and Market risk

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company’s activities. The Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the risk management framework. The Audit Committee is assisted the Finance Department Finance Department undertakes reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

(01) Credit risk:

(a) Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s trade receivables, treasury operations and other activities that are in the nature of leases."

(b) Exposure to credit risk

The gross carrying amount of financial assets, net of any impairment losses recognized represents the maximum credit exposure.

(02) Market risk:

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is exposed to market risk primarily related to foreign exchange rate risk (currency risk), interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

(03) Currency risk:

The Company’s has a limited risk in exposure to foreign currency.

(04) Interest rate risk:

Interest rate risk is the risk that an upward movement in interest rates would adversely affect the borrowing costs of the Company.

05.11.03. Capital management

The Company's capital comprises equity share capital, share premium, retained earnings and other equity attributable to equity holders. The primary objective of Company's capital management is to maximize shareholders value. The Company manages its capital and makes adjustment to it in light of the changes in economic and market conditions.

The Company monitors capital using gearing ratio, which is net debt divided by total capital plus net debt. Net debt comprises of long term and short-term borrowings less cash and bank balances. Equity includes equity share capital and reserves that are managed as capital.

No changes were made in the objectives, policies or processes for managing capital of the Company during the current and previous year.

05.12. Deferral tax

The company has no need to pay any tax under normal provision or under MAT (minimum Alternate Tax), since the company has opted for new regime

05.13. Corporate Social Responsibility

Since the business income for the financial year 2025-26 has been less than Rs. 500.00 Lakhs, the company is of the view that Corporate Social Responsibility is not applicable, in respect of the profit for the year 2025-26.

05.14. Contribution towards Corporate Social Responsibility

Our company does not fall under the criteria laid for Corporate Social Responsibility under section 135 of the Companies Act, 2013 and hence the section is not applicable to the Company for the year under audit report.

05.15. Code on Social Security, 2020

On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations.

The Company has assessed and disclosed the incremental impact of these changes on the basis of information available, consistent with the guidance provided by the Institute of Chartered Accountants of India.

The impact consisting of gratuity of and long-term compensated absences primarily arises due to change in wage definition has been considered under Employee Benefit Expenses in the Statement of Profit & Loss account for the quarter and period ended 31.03.2026. The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.

05.16. Security offered

05.16.01. The secured Loan, shown as liability in the Notes on Financial Statement under the grouping “Other Long-Term Liabilities”, amounting to Rs.468.98 Lakh (previous year Rs. 468.98 Lakh), is secured by first charges on Plant and Machineries of the Company.

05.16.02. The company has created charges against the assets and filed the relevant forms with MCA/ ROC

05.17. Additional Regulatory information/ details, as per the Companies Act 2013

05.17.01. Following Additional Regulatory Information, relating to disclosure in the Balance sheet

(01) Title deeds of Immovable Property not held in name of the Company The Title Deed of the company is held in the name of the Company.

(02) Revaluation of the Property

During the Financial Year under report, the Company has not revalued its Property, Plant and Equipment. Disclosure relating to “whether the revaluation is based on the valuation by a registered valuer as defined under Rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017” is not applicable.

(03) Loans or Advances to Promoters

During the year, the company has not made (or granted) any Loans or Advances in the nature of loans to promoters, Directors, Key Managerial Personnel (KMP) and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person. Accordingly, no disclosure has been made.

(04) Intangible assets under development: Nil (Disclosure not applicable)

(05) Benami Property

The Company, for the current year as well as previous year, does not have any Benami property and no proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made there under. Accordingly, the company has not made any disclosure in the above regard.

(06) Willful defaulter

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

(07) Relationship with Struck off Companies

The Company has not made, or entered into, any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956. No disclosure is required under this paragraph.

(08) Registration of charges or satisfaction with Registrar of Companies (ROC) : Not Applicable

(09) Compliance with number of layers of companies

The Company has made investments (very nominal amount) in a company or body corporate. The company has complied 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 for the financial years ended March 31, 2026 and March 31,2024.

(10) Compliance with approved Scheme(s) of Arrangements

During the financial year, neither the Company nor its Board of Directors has entered into any Arrangement or Agreement either to amalgamate or acquire any company. Accordingly, compliance with approved Scheme(s) of Arrangements does not applicable to the Company for the year under report

(11) Utilization of Borrowed funds and share premium

(a) The Company, for the current year as well as previous year, has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(b) The Company, for the current year as well as previous year, has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(12) Borrowings from banks against Current Assets of the company

No disclosure required under this item is applicable to company, since no borrowings have been availed based on security of current assets of the Company.

(13) Borrowings against Current Assets of same group companies/ entities

No disclosure required under this item is applicable to company, since no borrowings have been availed based on security of current assets of other entities (The Company does not have any company as a group company) within the same Group

05.17.02. Additional regulatory information, relating to Statement of Profit and Loss (Not Applicable items, only)

(01) T ransaction not recorded in the books:

The Company has not 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), relating to any transaction not recorded in the books of accounts. Accordingly, no disclosure is required to be given by the Company, in the above regard.

(02) Corporate Social Responsibility (CSR)

During the financial year the Company has not covered under section 135 of the Companies Act, 2013. Accordingly, no disclosure is required to be given by the Company, in the above regard.

(03) Investment Crypto Currency

The Company, for the current year as well as previous year, has not traded or invested in Crypto currency or Virtual Currency. Accordingly, no disclosure is required to be given by the Company, in the above regard.

05.17.03. Accounting Ratios and Explanation to Accounting Ratios

Accounting Ratios are given in the separate Note Number 02.13.10 and forms integral part of this note.

(01) Numerator and Denominator

Whenever two numbers are to be divided and the dividing symbol (-Q is used; the numerical value left hand side of the symbol is numerator and the numerical value right hand side of the symbol is denominator; if slash (/) is used the numerical value left hand side of the symbol is numerator and the numerical value right hand side of the symbol is denominator; or if horizontal line (—) is used the numerical value above the line is numerator and the numerical value below the line is the denominator.

(02) Quotient

A quotient is the result obtained, while dividing divide one number (i.e., numerator) by another number (Denominator).

(03) Percentage (or Per Cent)

The word per cent means per 100. It is represented by the symbol “%”; percentage is obtained by multiplying the quotient by 100 (One Hundred)

(04) Change in Ratio in % (Based CY as basis)

The above implies difference is arrived taking CY figure (Quotient or percentage) reducing the FY Figure; aforesaid difference is divided by CY figure and multiplied by 100, to arrive the percentage

(05) All the above is relevant, wherever Ratio and its formula are referred;

(06) Earning for available for debt service is the sum of the followings

(a) Net Profit after taxes

(b) Non-cash operating expenses like depreciation and other amortizations

(c) Interest

(d) Other adjustments like loss on sale of Fixed assets etc.

(07) Debt service = Interest & Lease Payments Principal Repayments

(08) Average inventory = (Opening inventory balance Closing inventory balance) / 2

(09) Net credit sales = Net credit sales consist of gross credit sales minus sales return

(10) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance) / 2

(11) Net credit purchases = Net credit purchases consist of gross credit purchases minus purchase return

(12) Average trade payables = (Opening trade payables balance Closing trade payables balance) / 2

(13) Working capital = Current assets - Current liabilities.

(14) Earnings before interest and taxes = Profit before exceptional items and tax Finance costs - Other Income

(15) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

Notes to the Ind-AS financial statements for the year ended March 31, 2026 forming an integral part thereof.

Notes No. 5.00, relating to other information, forming an integral part thereof

(16) Return on Investment: various contains of the formula are as follows:

(i) T1 = End of time period

(ii) T0 = Beginning of time period

(iii) t = Specific date falling between T1 and T0

(iv) MV(T1) = Market Value at T1

(v) MV(T0) = Market Value at T0

(vi) C(t) = Cash inflow, cash outflow on specific date

(vii) W(t) = Weight of the net cash flow (i.e. either net inflow or net outflow) on day ‘t’, calculated as [T1 - t] / T1