1.12 Provisions, Contingent Liabilities and Capital

Commitments

1.12.1 Provisions are recognized when there is 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.

1.12.2 The expenses relating to a provision is presented
in the Statement of Profit and Loss net of
reimbursements, if any.

1.12.3 Contingent liabilities are possible obligations
whose existence will only be confirmed by future
events not wholly within the control of the
Company, or present obligations where it is not
probable that an outflow of resources will be
required or the amount of the obligation cannot be
measured with sufficient reliability.

1.12.4 Contingent liabilities are not recognized in the
financial statements but are disclosed unless the
possibility of an outflow of economic resources is
considered remote.

1.13 Fair Value measurement

1.13.1 The Company measures certain financial
instruments at fair value at each reporting date.

1.13.2 Certain accounting policies and disclosures
require the measurement of fair values, for both
financial and non- financial assets and liabilities.

1.13.3 Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date in the principal or, in its
absence, the most advantageous market to which
the Company has access at that date. The fair
value of a liability also reflects its non-performance
risk.

1.13.4 The best estimate of the fair value of a financial
instrument on initial recognition is normally the
transaction price - i.e. the fair value of the
consideration given or received. If the Company
determines that the fair value on initial recognition
differs from the transaction price and the fair value
is evidenced neither by a quoted price in an active
market for an identical asset or liability nor based
on a valuation technique that uses only data
from observable markets, then the financial
instrument is initially measured at fair value,
adjusted to defer the difference between the fair
value on initial recognition and the transaction
price. Subsequently that difference is recognised
in Statement of Profit and Loss on an appropriate
basis over the life of the instrument but no later
than when the valuation is wholly supported by
observable market data or the transaction is closed
out.

1.14 Financial Assets

1.14.1 Initial recognition and measurement

Trade Receivables and debt securities issued are
initially recognised when they are originated. All
other financial assets are initially recognised when
the Company becomes a party to the contractual
provisions of the instrument. All financial assets
other than those measured subsequently at fair
value through profit and loss, are recognised
initially at fair value plus transaction costs that are
attributable to the acquisition of the financial asset.

1.14.2 Subsequent measurement

Subsequent measurement is determined with
reference to the classification of the respective
financial assets. Based on the business model
for managing the financial assets and the
contractual cash flow characteristics of the

financial asset, the Company classifies financial
assets as subsequently measured at amortised
cost, fair value through other comprehensive
income or fair value through profit and loss.

1.14.3 Impairment of financial assets

In accordance with Ind AS 109, the Company
applies Expected Credit Loss (“ECL”) model for
measurement and recognition of impairment loss
on the financial assets measured at amortised cost
and debt instruments measured at FVOCI.

Loss allowances on trade receivables are mea¬
sured following the ‘simplified approach’ at an
amount equal to the lifetime ECL at each reporting
date. The application of simplified approach does
not require the Company to track changes in credit
risk. Based on the past history and track records
the company has assessed the risk of default by
the customer and expects the credit loss to be
insignificant. In respect of other financial assets
such as debt securities and bank balances, the
loss allowance is measured at 12 month ECL only if
there is no significant deterioration in the credit risk
since initial recognition of the asset or asset is
determined to have a low credit risk at the reporting
date.

1.15 Offsetting of financial instruments

Financial assets and financial liabilities are offset and the
net amount is reported in the Balance Sheet, if there is a
currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis,
or to realise the assets and settle the liabilities
simultaneously.

1.16 Taxes on Income

1.16.1 Current Tax

Income-tax Assets and liabilities are measured at
the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that
are enacted or substantively enacted, by the end of
reporting period.

Current Tax items are recognised in correlation to
the underlying transaction either in the Statement
of Profit and Loss, other comprehensive income or
directly in equity.

1.16.2 Deferred tax

Deferred tax is provided using the Balance Sheet
method on temporary differences between the tax
bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the
reporting date.

Deferred tax liabilities are recognised for all taxable
temporary differences.

Deferred tax assets are recognised for all
deductible temporary differences, the carry
forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognised to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences, and the carry forward of unused tax
credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that
it has become probable that future taxable profits
will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at
the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled,
based on tax rates and tax laws that have been
enacted or substantively enacted at the reporting
date.

Deferred Tax items are recognised in correlation to
the underlying transaction either in the Statement
of Profit and Loss, other comprehensive income or
directly in equity.

Deferred tax assets and deferred tax liabilities are
offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and
the deferred taxes relate to the same taxable entity
and the same taxation authority.

1.17 Earnings per share

Basic earnings per share are calculated by dividing the
profit or loss for the period attributable to equity
shareholders (after deducting preference dividends, if
any, and attributable taxes) by the weighted average
number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share,
the profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effect of
all dilutive potential equity shares.

1.18 Classification of Assets and Liabilities as Current and
Non-Current:

All assets and liabilities are classified as current or non¬
current as per the Company's normal operating cycle
(determined at 12 months) and other criteria set out in
Schedule III of the Act.

1.19 Cash and Cash equivalents

- Cash and cash equivalents in the Balance Sheet include
cash at bank, cash, cheque, draft on hand and demand
deposits with an original maturity of less than three
months, which are subject to an insignificant risk of
changes in value.

For the purpose of Statement of Cash Flows, Cash and
cash equivalents include cash at bank, cash, cheque and
draft on hand. The Company considers all highly liquid
investments with a remaining maturity at the date of
purchase of three months or less and that are readily
convertible to known amounts of cash to be cash
equivalents.

1.20 Cash Flows

Cash flows are reported using the indirect method, where
by net profit before tax 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 flows from
operating, investing and financing activities are
segregated.

37. Financial Risk Management
Risk management framework

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's business
activities are exposed to a variety of financial risks, namely liquidity risk, market risk, commodity risk and credit risk. The Company's senior
management has the overall responsibility for establishing and governing the Company's risk management framework. The Company's risk
management policies are established to identity and analyse the risk faced by the Company, to set and monitor appropriate risk limits and
controls periodically review the changes in market conditions and reflect the changes in the policy accothingly. The key risk and mitigating
actions are also placed before the Audit Committee of the Company.

The Company has exposure to the following risk arising from financial instruments.

A) Credit risk

B) Liquidity risk

C) Market risk and

D) Commodity risk
A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party fails to meet its financial obligations.

Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The maximum exposure
to the credit risk at the reporting date is primarily from trade receivables amounting to Rs.1,653.52 Lakhs and Rs. 2,899.23 Lakhs as at
March 31,2025 and March 31,2024 respectively.

The demographic of the customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk
is managed through credit approvals, establishing credit limit and continuously monitoring the creditworthiness of customers to which
the Company grants credit in the normal course of business.

Cash and Cash Equivalents

The Company held cash and cash equivalents of Rs.175.28 Lakhs as at 31st March, 2025 (31st March, 2024 Rs.140.02 Lakhs).

B) 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 time.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity management
framework for the management of the Company's short, medium and long term funding and liquidity management requirements. The
Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously
monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

Exposure to liquidity risk

The following table shows the maturity analysis of the Company's financial liabilities based on contractually agreed undiscounted cash flow
as at the Balance sheet date.

C) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates. The objective of market risk management is to
manage and control market risk exposures within parameters, while optimizing the return.

C-1 Foreign currency risk

The Company's business is transacted in several currencies. Consequently, the Company is exposed to foreign exchange risk through its
sales in overseas and purchases from overseas suppliers in various foreign currencies. Exports of the Company are significantly lower in
comparison to its imports.

The Company takes derivate financial instruments such as foreign exchange forward contract to mitigate the risk of changes in exchange
rates on foreign currency exposure. The exchange rate between rupee and foreign currency has changed substantially in recent years and
may fluctuate substantially in future. Consequently, the results of the Company's operation are adversely affected as the rupee appreciates/

depreciates against these currencies. There are no carrying amounts of the Company's foreign currency dominated monetary assets and
monetary liabilities at the end of the reporting period.

C-2 Interest risk

There is interest risk relating to the Company's borrowing on which interest is payable.

D) Commodity risk

Principal Raw Material for Company's products is variety of Stainless Steel. Company sources its raw material requirement from
indigenous and international sources. Local market prices are also generally remains in sync with international market price scenario.
Volatility in nickel prices, currency fluctuation of Rupee vis-a-vis other prominent currencies coupled with demand-supply scenario in the
world market affect the effective price and availability of stainless steel for the Company. Company effectively manages with availability of
material as well as price volatility through.

1. Widening its sourcing base

2. Appropriate contracts and commitments

3. Well planned procurement & inventory strategy

AS PER OUR REPORT OF EVEN DATE

FOR SUNDARLAL, DESAI AND KANODIA, FOR AND ON BEHALF OF BOARD OF DIRECTORS

CHARTERED ACCOUNTANTS

FRN-110560W

Sd/- Sd/-

^Sd/- (VISHWAMBHAR C.SARAF ) (RISHABH R. SARAF)

(MlIKLII.^B. ^DESAI) CHAIRMAN MANAGING DIRECTOR

^PARTNER DIN: 00161381 DIN: 00161435

Membership No.33978

Sd/- Sd/-

^{PLACE : MUMBAI} (VINOD C. JALAN) (HETAL H. JOSHI)

^DATED : ^{12th May}, ²⁰²⁵ CHIEF FINANCIAL OFFICER COMPANY SECRETARY