xiv. Provisions, contingent liablity and contingent Assets

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 embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation. 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.

If the effect of the 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 recognised as a finance cost.

Contingent liability arises when the Company has:

a) a possible obligation 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; or

b) a present obligation that arises from past events but is not recognised because:

(i) it is not probable that an outflow of resources embodying economic benefits will be required to
settle the obligation; or

(ii) the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are not recorded in the financial statement but, rather, are disclosed in the note to the
financial statements.

Contingent assets are disclosed when an inflow of economic benefits is probable.

xv. Earning per share

The basic earnings per share is computed by dividing the net profit attributable to equity shareholders for
the period by the weighted average number of equity shares outstanding during the period. The number of
shares used in computing diluted earnings per share comprises the weighted average shares considered for
deriving basic earnings per share, and also the weighted average number of equity shares which could be
issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed
converted as of the beginning of the period, unless they have been issued at a later date. In computing
dilutive earnings per share, only potential equity shares that are dilutive and that would, if issued, either
reduce future earnings per share or increase loss per share, are included.

4. Key accounting estimates

i. Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value are measured using valuation techniques.
The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect
the reported fair value of financial instruments.

ii. Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less
costs of disposal calculation is based on available data from binding sales transactions, conducted at arm's
length, for similar assets or observable market prices less incremental costs for disposing of the asset. The
value in use calculation is based on a discounted cashflow (DCF) model. The cash flows are derived from
the budget and do not include restructuring activities that the Company is not yet committed to or significant
future investments that will enhance the asset's performance of the CGU being tested. The recoverable
amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows
and the growth rate used for extrapolation purposes.

iii. Taxes

Deferred tax assets are recognised for unused tax credits to the extent that it is probable that taxable profit
will be available against which the losses can be utilised. Significant management judgement is required to
determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the
level of future taxable profits together with future tax planning strategies.

iv. Property, Plant and Equipment

Useful life of Property, Plant and Equipment is taken as stated in Schedule II of Companies Act, 2013. The
carrying values of Property, plant and equipment have been disclosed in Note 6.

v. Intangible assets

Useful life of Intangible assets is taken as stated in Schedule II of Companies Act, 2013. The carrying values
of Intangible assets have been disclosed in Note 6.

vi. Allowance for doubtful trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate
allowances for estimated irrecoverable amounts.

Estimated irrecoverable amountsarederivedbasedonaprovision matrix which takes into account various
factors such as customer specific risks, geographical region, product type, currency fluctuation risk, repatriation
policy of the country, country specific economic risks, customer rating, and type of customer, etc. The
allowances for doubtful trade receivables were NIL as at March 31, 2024 (as at March 31, 2023 : Rs. NIL).

Individual trade receivables are written off when the management deems them not to be collectable.

NOTE - 29 - EARNINGS PER SHARE (EPS):

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity shareholders of the Company
by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted
average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that
would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

MAAK & Associates For and on Behalf of the Board of Directors of

Chartered Accountants Bobshell Electrodes Limited

FRN: 135024W

Shailesh M Joshi Mudraben Pathak

CA Marmik G Shah Managing Director Director

Partner DIN: 01453505 DIN : 06688937

Membership No. 133926

UDIN: 24133926BKCJPC4277 Jenish Joshi Parakh S Patel

Chief Financial Officer CS

Date: 29/05/2024 PAN: ABTPJ5628D DIN: BGGPP0763A

Place: Ahmedabad