Notes to the Ind-AS financial statements for the year ended March 31, 2025, forming an integral part thereof, forming an integral part thereof.

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

05.01. Denomination

All the figures are rounded off to nearest Lakh (Indian Rupees), with two decimals.

05.02. Re-Grouping of Amounts

Previous year's figures have been regrouped, wherever necessary, to confirm to current year classification/ grouping.

05.03. Contingent Liabilities & Commitments

05.03.01. Claims against the company not acknowledged as debt (Amount in Rs. 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 the aforesaid case shall be in favour of the company. Based on the above, the management 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

05.08.01. 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" (Amount in Rs. Lakh)

The Company is engaged in the business of Manufacturing of Auto Ancillary parts (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.

05.11.02. 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.

(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."

(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.

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 maximise shareholders value. The Company manages its capital and makes adjustment to it in light of the changes in economic and market conditions. The Company does so by adjusting dividend paid to shareholders. The total capital as on March 31, 2025 is ? 2477.75 Lakh (Previous Year: ? 2247.97 Lakh)

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. The gearing at the end of the reporting period was as follows: (Amount Rs. In lakhs)

05.12. 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.

Notes to the Ind-AS financial statements for the year ended March 31,2025, forming an integral part thereof, forming an integral part thereof.

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

05.13. Extraordinary item

During the financial year 2023/2024 the Company had written back an amount of Rs. 7056.02 Lakhs (Rupees Seven Thousand Fifty Six point Zero Two Lakh only ) towards the advance received against the slump sales of Appur unit .This was based on the legal opinion obtained by the Company.

While taking the aforesaid action, the Board has noted that the matter might be subject to the adjudication of any legal claims in future by the Buyer. In that eventuality, the Company may make a counter claim or a fresh negotiation.

The statutory auditor had relied upon the legal opinion, in this regard in respect of the above said financial year.

05.14. Deferral tax

The company has huge carried forward business loss or unabsorbed depreciation. Considering the profit level of the current year, only deferred tax asset has been arrived at. Pursuant to the principle of prudence (Fundamental accounting Principles),the Company has decided not to recognise the Deferred Tax Asset .Hence the Company has not considered the same in the Statement of Proft and Loss and Balance Sheet.

05.15. Corporate Social Responsibility

Since the business income for the financial year 2024-25 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 2024-25.

05.16. Non-Disclosure of the details under Employees Benefits, Ind AS-19

(01) The Company has opened a Gratuity Scheme with Life Insurance Corporation of India (LIC), for settling any amount due on account of Gratuity. Under the aforesaid Scheme, the company has to contribute annual premium, based on the amount arrived by LIC. The Company has made the payment of all the outstanding (as at March 31, 2025) Gratuity Premium to Life Insurance Corporation of India (LIC), during the current year.

(02) Due to aforesaid fact, the estimated return from the fund or scheme may not be ascertained or determined in respect of the previous year. Accordingly, no disclosure has been made, in terms of Ind AS-19. The Company is taking sincere steps of adopting Ind AS-19, any implications arising there from including the valuation of future liability on actual basis and determination of plan assets will be done during the next year.

05.17. Code on Social Security, 2020

The Code on Social Security, 2020 relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact of the Code and the associated rules when it comes into effect and will record any related impact in the period the Code becomes effective.

05.18. Security offered

05.18.01. 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.

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

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

05.19.01. 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 an other 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, 2025 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 05.19.02. Additional regulatory information, relating to Statement of Profit and Loss (Not Applicable items, only)

(01) Transaction 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.

05.19.03. Explanation to Accounting Ratios (01) Numerator and Denominator

Whenever two numbers are to be divided and the dividing symbol (ÝQ 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

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

(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

(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

05.19.04. Accounting Ratios

Accounting Ratios are given in the separate Note Number 06, enclosed herewith.