(q) Provision. Contingent Liabilities and Contingent Assets:

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and reliable estimate can be made. If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. These estimates reviewed at each reporting date and adjusted to reflect the current best estimate.

A disclosure for a contingent liability is made when there is a possible obligation or a present k obligation that may, but probably will not, require an outflow of resources. When the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognised in the financial statements.

(r) Events after Reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

2.3 Application of new and revised Indian Accounting Standard (Ind AS):

All the Ind AS issued and notified by the Ministry of Corporate Affairs (‘MCA’) under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements have been considered in preparing these financial statements.

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Standards issued but not effective

The Ministry of Corporate Affairs ("MCA") vide its notification dated March 31, 2023 has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 to further amend the Companies (Indian Accounting Standards) Rules, 2015. Amendments have been made to the following standards:

Amendment to Ind AS 12 and Ind AS 101

Now the Initial Recognition Exemption (IRE) does not apply to transactions that give rise to equal and offsetting temporary differences. Narrowed the scope of IRE (with regard to leases and decommissioning obligations). Accordingly, companies will need to recognise a deferred tax asset and a deferred tax liability for temporary differences arising on transactions such as initial recognition of a lease and a decommissioning provision. The amendments apply to transactions that occur on or after the beginning of the earliest comparative period presented

The application of this amendment is not expected to have a material impact on the Company’s financial statements

Amendment to Ind AS 1 and Ind AS 34 and Ind AS 107

Companies should now disclose material accounting policies rather than their significant accounting policies.

The application of this amendment is not expected to have a material impact on the Company’s financial statements.

Amendment to Ind AS 8

Definition of ‘change in account estimate’ has been replaced by revised definition of ‘accounting estimate’. As per revised definition, accounting estimates are monetary amounts in the financial statements that are subject to measurement uncertainty.

The amendments listed above will be effective on or after April 1, 2023 and are not expected to significantly affect the current or future periods.

Machineries Term Loan from IOB Bank

Existing & Fresh Term Loan is secured against hypothecation of Plant & Machineries purchased & to be purchased from the said

(a) Term Loan. It is also secured by equitable mortgage of Land and Building situated at Hadamtala Industrial Zone, District Rajkot of the company and personal guarantee of directors.

(b) Interest rate of term loan is linked to RLLR plus 0.40% i.e. 9.75% p.a. as per last Sanction Letter.

Existing Term Loan of? 343 Lakhs is repayable in 75 monthly instalment commencing from January, 2019 and ending on ^C September, 2026. i.e 74 monthly installment of Rs. 4,57,330/- and last installment of Rs. 4,57,580/-.

Fresh Term Loan of ? 280 Lakhs is repayable in 60 monthly instalment commencing from November, 2023 and ending on November,

(d) 2028. i.e 59 monthly installment of Rs. 4,66,667/- and last installment of Rs. 4,66,647/-.

Fresh term loan disbursed of? 235.36 lakhs out of sanctioned amount of? 280 lakhs is utilised for the purpose for which it is

(e) obtained i.e. purchase of plant & machineries.

Term Loan from ICICI Bank for Staff bus

(a) Term loan is secured against Staff bus.

(b) Interest rate of loan is 9.00%.

(c) Term Loan is repayable in 63 monthly instalment of Rs. 29,065/- commencing from May, 2017 and ending on October, 2023.

Term Loans from ICICI Bank for Motor Cars

(a) Term loan is secured against three vehicles.

(b) Interest rate of three vehicles loan are 7.65%, 8.20% & 9.10% respectively.

1st Vehicle Term Loan is repayable in 36 equated monthly instalment of Rs. 80,361/- commencing from August, 2021 and ending on July, 2024. 2nd Vehicle term loan is repayable in 36 equated monthly installment of Rs. 81,410/- commentcing from September, 2022 and ending on August, 2025. 3rd Vehicle term loan is repayable in 60 equated monthly installment of Rs. 60,146/-

(c) commentcing from March, 2023 and ending on February, 2028.

Working Captial Term Loan from IOB Bank under ECLGS 1.0 extension Scheme

WCTL under ECLGS 1.0 is rank pari passu with all the existing facilities in terms of security. It is also collaterally secured by equitable mortgage of Industrial Land and Building situated at Hadamtala Industrial Zone, District Rajkot.

(b) Interest rate of term loan is Repo rate plus markup plus 1.00% i.e. 9.25% p.a.

Term Loan is repayable in 21 monthly instalment commencing after moratorium period of 24 months from the date of Erst installments i.e. January 2024 i.e. 20 installment of Rs. 3,33,888/- and 21st installment of Rs. 2,42,240/-

Vehicle Term Loan from HDFC Bank

(a) Term loan is secured by exclusive Erst charge on the Mahindra Jayo financed by the banks.

(b) Interest rate of loan is 8.34%.

Term Loan is repayable in 36 monthly instalment of Rs. 31,240/- and Rs. 3,810/- commencing from March, 2021 and ending on ^ February, 2024.

Cash Credit

Loan is secured against hypothecation of stock and book debts up to 90 days and with exclusive first charge on entire current assets

(a) of the present and future. It is also secured by equitable mortgage of Industrial Land and Building situated at Hadamtala Industrial Zone, District Rajkot and personal guarantee of directors.

(b) Interest rate of term loan is linked to RLLR plus 0.40% i.e. 9.75% p.a. as per last Sanction Letter.

Preshippment Packing Credit

(a) The loan is secured against hypothecation of inventories and trade receivables.

(b) Interest rate is as per circular of the bank.

(c) It is repayable on demand.

Working capital facilities and statements filed with bank

The Company has availed working capital facilities from banks in form of packing credit and cash credit. The Company have filed the quarterly statements with banks with regard to the securities provided against such working capital facilities on periodic basis. The

(a) statements filed are in agreement with the books of accounts of the Company.

The Company has been sanctioned a fund based limit of? 690 Lakhs (PY ? 690 Lakhs) and non-fund based limit of? 100 Lakhs (PY ? 100 Lakhs) in respect of working capital facilities by its bankers as at March 31, 2024.

(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

Bill Discounting with banks (Unsecured!

(a) The company has availed working capital facilites from bank under bill discounting arrangements for its customer. It is unsecured.

(b) There is no cost to the company for the facility except bank charges of South Indian Bank Ltd.

(c) It is repayable on demand.

34 LEASE

(a) Company as lessee

The company has entered into lease agreement for land for the period of 20 years from Hiteshbhai G. Thummar, Chariman and Managing Director of the Company, used in its operations. The transaction was approved by Board of Director as well as by members of the Company. The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets. Company has not entered into agreement for new land taken on lease from Bhargaviben Thummar, Promoter Group used in its operation from 01st January, 2024 and has paid rent for three months and company applies the 'short-term lease' recognition exemptions for this lease.

The company has also entered into ten finance lease arrangements with Siemens Financial Services Private Limited for more than one machineries to used in its operations for period upto 3 years till 31st March, 2024. The transaction was approved by Board of Director as well as by members of the Company. The Company’s obligations under its leases are secured by the lessor’s title to the leased assets.

The Company also has certain lease agreements related to other assets with lease terms of 12 months or less. The Company applies the ‘short-term lease’ recognition exemptions for these leases.

Below are the carrying amounts of right-of-use assets recognised and the movements during the period:

b Financial Risk Management Objectives and Policies

The Company’s principal financial liabilities comprises borrowings, trade and other payables and other financial liabilities. The main purpose of these financial liabilities is to finance and support the operations of the Company. The Company’s principal financial assets include trade and other receivables, loans and cash and cash equivalents that derive directly from its operations.

The Company’s business activities are exposed to a variety of risks including liquidity risk, credit risk and market risk. The Company seeks to minimize potential adverse effects of these risks on its financial performance and capital. Financial risk activities are identified, measured and managed in accordance with the Company's policies and risk objectives which are summarized below and are reviewed by the senior management.

Credit Risk

Credit risk refers to risk of financial loss to the Company if customers or counterparties fail to meet their contractual obligations. The Company is exposed to credit risk from its operating activities (mainly trade Credit Risk Management

(a) Trade Receivables

Customer credit risk is managed by the respective departments subject to the company's established policies, procedures and controls relating to customer credit risk management. Customer credit risk is managed by the Company through its established policies and procedures which involve setting up credit limits based on credit profiling of individual customers, credit approvals for enhancement of limits and regular monitoring of important developments viz. payment history, change in credit rating, regulatory changes, industry outlook etc. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in refer note 6. Outstanding receivables are regularly monitored and an impairment analysis is performed at each reporting date on an individual basis for each major customer. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or reversal thereof.

Expected credit losses of financial assets receivable in the next 12 months are estimated on the basis of historical data, provided the Company has reasonable and supportable data. On such an assessment the expected losses are nil or negligible, as evidenced in the table below, and hence no further provision than that

(b) Deposits and financial assets (Other than trade receivables):

Credit risk from balances with banks and fixed deposits are managed by the Company’s treasury department in accordance with the Company’s policy. Company provides for expected credit losses on loans and advances other than trade receivables by assessing individual financial instruments for expectation of any credit losses.

Liquid Risk

Liquidity risk implies that the Company may not be able to meet its obligations associated with its financial liabilities. The Company manages its liquidity risk on the basis of the business plan that ensures that the funds required for financing the business operations and meeting financial liabilities are available in a timely manner and in the currency required at optimal costs. The Management regularly monitors rolling forecasts of the Company’s liquidity position to ensure it has sufficient cash on an ongoing basis to meet operational fund

Additionally, the Company has committed fund and non-fund based credit lines from banks which may be drawn anytime based on Company’s fund requirements. The Company endeavours to maintain a cautious liquidity strategy with positive cash balance and undrawn bank lines throughout the year._

Market Risk

Market risk is the risk that the fair value of future cash flow of financial instruments may fluctuate because of changes in market conditions. Market risk broadly comprises three types of risks namely foreign currency risk, interest rate risk and price risk (for commodities). The above risks may affect the Company’s income and expense and profit. The Company’s exposure to and management of these risks are explained below. fa} Foreign currencu risk

The Company operates in international markets and therefore is exposed to foreign currency risk arising from foreign currency transactions. The exposure relates primarily to the Company’s operating activities (when the revenue or expense is denominated in foreign currency). Majority of the Company’s foreign currency transactions are in USD while the rest are in EURO. The major imports are only in respect of capital goods. The risk is measured through forecast of highly probable foreign currency cash flows.

Oven Exposure

The Company’s exposure to foreign currency risk at the end of the reporting period is as follows

fb) Commoditu Price Risk

Commodity price risk results from changes in market prices for raw materials, mainly steel in the form of rounds and billets which forms the largest portion of Company’s cost of sale.

The principal raw materials for the Company products are alloy and carbon steel which are purchased by the Company from the approved list of suppliers. Input materials are procured from domestic vendors. Raw material procurement is subject to price negotiation. Further, a significant portion of the Company's volume is sold based on price adjustment mechanism which allows for recovery of the changed raw material cost from its customers.

39 CAPITAL MANAGEMENT

For the purposes of the Company’s capital management, capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure and maximise shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements.

The Company monitors capital using net debt to equity ratio, which is net debt (as reduced by cash and cash equivalent) divided by total equity.

40 OTHER MISCELLANEOUS NOTES

Previous year figures are regrouped/ rearranged wherever necessary. The impact of such reclassification/regrouping is not material to the financial statements, b There have been no events after the reporting date that require disclosure in these financial statements.

The Company does not have any Benami property, where any proceeding has been initiated or pending against

0

the Company for holding any Benami property.

d The Company has not traded or invested in crypto currency or virtual currency during the financial year.

The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and e

the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person. No funds have been advanced or loaned or invested either from borrowed funds or share premium or any other sources or kind of funds by the Company to or in any other person or entity, including foreign entities (‘Intermediaries’), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

No funds have been received by the Company from any person or entity, including foreign entities (‘Funding Parties’), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, g 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

h The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the The Company has performed the assessment to identify transactions with struck off companies as at 31 March 2024&31 March 2023 and identified no company with any transactions.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant . transactions recorded in the software except in respect of other softwares from which inputs has been taken into ^ accounting software, audit trail feature is not enabled at database level to log aby direct changes to data when using certain access rights. Further, audit trail feature has not been tampered with in respect of accounting software.

The Company does not have any transaction which is not recorded in the books of accounts that has been k 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).