Provisions are recognized 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. Provisions are measured at the best estimate of the expenditure
required to settle the present obligation at the Balance Sheet date.
If the effect of the time value of money is material, provisions are discounted to reflect its
present value using a current pre-tax rate that reflects the current market assessments of the
time value of money and the risks specific to the obligation. When discounting is used, the
increase in the provision due to the passage of time is recognized as a finance cost.
Contingent liabilities are disclosed when there is a possible obligation arising from past events,
the existence of which will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company or a present
obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount cannot
be made.
1.13) Segment Reporting (Ind AS 108):
The accounting policies adopted for the segment reporting are in line with the accounting
polices stipulated. The Company primarily operates in single business segment which is Steel
Tubes (Black,GI Pipes & Stainless-Steel Pipes), and accordingly there is no primary segments to be
reported as per Indian Accounting Standard 108 “Segment Reporting”.
1.14) Leases (Ind AS 116):
Leases in which a substantial portion of the risks and rewards of ownership are retained by
the lessor are classified as operating leases. Payments and receipts under such leases are
recognized to the Statement of Profit and Loss on a straight-line basis over the term of the
lease unless the lease payments to the lessor are structured to increase in line with expected
general inflation to compensate for the lessor’s expected inflationary cost increases, in which
case the same are recognized as an expense in line with the contractual term.
1.15) Non-Current assets held for Sale (Ind AS 105):
Non-current assets or disposal groups comprising of assets and liabilities are classified as
‘held for sale’ when all of the following criteria’s are met:
i. Decision has been made to sell.
ii. The assets are available for immediate sale in its present condition.
iii. The assets are being actively marketed and
iv. Sale has been agreed or is expected to be conducted within 12 months of
the Balance Sheet date.
Subsequently, such non-current assets and disposal groups classified as held for sale are
measured at the lower of its carrying value and fair value less costs to sell. Non-current
assets held for sale are not depreciated or amortized.
Financial Assets:
Financial assets are recognized when the Company becomes a party to the contractual
provisions of the instrument.
On initial recognition, a financial asset is recognized at fair value, in case of financial assets
which are recognized at fair value through profit and loss(FVTPL), their transaction costs are
recognized in the statement of profit and loss. In other cases, the transaction costs are
attributed to the acquisition value of the financial asset.
Financial assets are subsequently classified as measured at
• Amortized cost
• Fair value through profit and loss(FVTPL)
• Fair value through other comprehensive income (FVOCI).
Financial assets are not reclassified subsequent to their recognition, except if and in the period
the Company changes its business model for managing financial assets.
Trade Receivables and Loans:
Trade receivables are initially recognized at fair value. Subsequently, these assets are held a t
amortized cost, using the effective interest rate (EIR) method net of any expected credit
losses.The EIR is the rate that discounts estimated future cash income through the expected life
of financial instrument.
Equity Instruments:
All investments in equity instruments classified under financial assets are initially measured at fair
value; the Company may, on initial recognition, irrevocably elect to measure the same either at
FVOCI or FVTPL. The Company makes such election on an instrument-by-instrument basis. A fair
value change on an equity instrument is recognised as other income in the Statement of Profit
and Loss unless the Company has elected to measure such instrument at FVOCI. Fair value
changes excluding dividends, on an equity instrument measured at FVOCI are recognized in OCI.
Amounts recognised in OCI are not subsequently reclassified to the Statement of Profit and Loss.
Dividend income on the investments in equity instruments are recognised as ‘other income’ in
the Statement of Profit and Loss. The Company does not have any investments in equity
instruments as on balance sheet date.
Derecognition:
The Company derecognizes a financial asset when the contractual rights to the cash flows from
the financial asset expire, or it transfers the contractual rights to receive the cash flows from the
asset.
Impairment of Financial Asset:
Expected credit losses are recognized for all financial assets subsequent to initial recognition other
than financials assets in FVTPL category. For financial assets other than trade receivables, as per Ind
AS 109, the Company recognizes 12 month expected credit losses for all originated or acquired
financial assets if at the reporting date the credit risk of the financial asset has not increased
significantly since its initial recognition. The expected credit losses are measured as lifetime
expected credit losses if the credit risk on financial asset increases significantly since its initial
recognition.The Company’s trade receivables do not contain significant financing component
and loss allowance on trade receivables is measured at an amount equal to lifetime expected
losses i.e. expected cash shortfall. The impairment losses and reversals are recognised in
Statement of Profit and Loss.
Financial Liabilities:
Initial recognition and measurement
Financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the instrument. Financial liabilities are initially measured at the amortised cost.
Unless at initial recognition, they are classified as fair value through profit and loss. In case of trade
payables, they are initially recognised at fair value and subsequently, these liabilities are held
at amortised cost, using the effective interest method.
Subsequent measurement
Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial
liabilities carried at fair value through profit or loss is measured at fair value with all changes in fair
value recognized in the Statement of Profit and Loss.
Derecognition
A financial liability is derecognized when the obligation specified in the contract is discharged,
cancelled or expires.
Note: 8 Earnings Per Share and Diluted Earnings Per Share: (Ind AS 33)
The basic earning per equality share is computed by dividing the net profit or loss for the period
attributable to the equity shareholders by the weighted average number of equity shares
outstanding during the reported period. The number of shares used in computed diluted
earnings per share and also the weighted average number of shares considered for deriving basic
earnings per share which may be issued on the conversion of all dilutive potential shares, unless
the results would be anti-dilutive.
Note 10: Disclosures required by the Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006 are as under*
(a) The principal amount remaining unpaid at the end of the year-Nil
(b) The delayed payments of principal amount paid beyond the appointed -Nil
(c) Interest actually paid under Section 16 of MSMED Act-Nil
(d) Normal Interest due and payable during the year, for all the delayed payments, as
per the agreed terms-Nil
(e) Total interest accrued during the year and remaining unpaid-Nil
*This information has been determined to the extent such parties have been identified on the
basis of information available with the Company.
Note 11:
In compliance with Notification issued by Government of India (MCA) on amended format of
Schedule III vide its order dated 24th March 2021, the figures appearing in financial statements
have been rounded off to nearest lakhs (for both current and previous reporting period).
Note 12:
Previous year’s figures have been re-classified/re-grouped as found whereever necessary.
For & on Behalf of the Board
For DPV & Associates
Chartered Accountant Bivashwa Das N. Sudharshan
FRN: 011688S Managing Director Director
DIN:07352655 DIN: 08562284
CA Vaira Mutthu K
Partner K. Suresh H Vinodh Kumar
M No: 218791 Company Secretary Chief Financial Officer
Chennai.,30th May 2024
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