14. Provisions, contingent liabilities, and contingent assets (AS - 29)

a. Provisions are made for present obligations arising as a result of past events and it is
probable that an outflow of resources will be required to settle the obligation.

b. Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

c. Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts.

15. Leases (AS-19)

The company has non- cancellable operating leases for plant and machinery. The Company
recognises the lease payments as an operating expense on a straight-line basis over the lease
term.

16. Research & Development Expenses

a. Development and improvement of product is an in-built on-going activity within the existing
manufacturing facilities.

b. Expenditure on Research & development is not separately allocated and identified.

NOTE 31: CONTINGENT liabilities and events occuring after balance sheet date

a) The Haryana Government levied a Local Area Development Tax (the LADT Act) w.e.f.
05.05.2000 on the manufacturing units in the state of Haryana on the entry of goods for use
and consumption. Some units have challenged the Act in the Hon’ble Punjab and Haryana
High Court. The matter is currently sub-judice. The Hon’ble Punjab and Haryana High Court
disallowed the petition in December, 2001 and the units, had by a Special Leave Petition,
and challenged the order of High Court in the Hon’ble Supreme Court. The Hon’ble
Supreme Court referred the matter to a ‘five judges’ Constitutional Bench, which laid certain
parameters to examine the Act on those lines. On the basis of these parameters the Hon’ble
High Court declared the Act to be ultra-virus on 14^th March, 2007. Since, this issue was
being canvassed by various High Courts, the Hon’ble Supreme Court gave an Interim Order
that those states where the High Courts have given judgment in favor of the petitioner, and
no tax would be collected. In the meantime, the Haryana Government has repealed the
LADT Act and introduced another Act by the name of ‘Entry Tax’ on the same lines. That
Act was also been held ultra-virus by the High Court.

In the meantime, in October 2009 the Hon’ble Supreme Court vide order dated 30-10-2009,
directing the Company to file the Returns of LADT with the Assessing Officer with a direction
to the A.O. to vet the returns and they passed the Assessment Order according with law, but
stayed. The entry tax matters of the states have been referred to larger ‘Nine Judges’
Constitutional Bench of the Supreme Court on 16-04-2010. Nine Judge bench was
constituted in July 2016 and answered the question related to constitutional matters and
direct to further proceeding to three Judge bench of Hon’ble Supreme Court and now
Hon’ble Supreme Court has passed the order on 21st March, 2017 referring the matter to
Hon’ble High Court of Punjab & Haryana at Chandigarh, Punjab.

Accordingly, there is total liability up to Mar, 2025 amounting to Rs 1,949.76 Lakhs (without
interest), which is considered as contingent liability.

b) The company, in compliance to U.P sales tax department directions vide order dated 05^th
May,2018, has deposited Rs. 435.43 Lakhs (including interest), (Previous Year Rs 435.43
Lakhs) whole disputed demand under protest. Now, company has filed Writ petition in
Supreme court on 30^th March, 2019 and supreme court passed the order on 3rd May, 2019
referring the matter to Hon’ble Allahabad High Court. Hence in opinion of the company it is a
contingent liability on account of Entry tax and final liability will be accounted for on final
decision of Hon’ble Allahabad High Court.

c) Further company has also deposited Rs 32.48 Lakhs with Sales Tax authorities against
detention of goods vehicles in earlier years.

Note 32: Opertaing Leases

The Company has taken Plant and Machineries on Non- Cancellable lease from “Siemens Factoring
Private Limited” during the previous Financial Year 2022-23 for a tenor of 36 months, the terms of
which states that on end of lease, the Lessee (Swastik Pipe Limited) has an option to purchase the
leased assets. However, management is of the opinion that the lease period does not cover the
maximum useful life of leased assets, and the said lease agreements should be classified as operating
Lease.

Note 33: micro and small medium enterprises

There are some identified Micro and Small Enterprises, to whom the Company owes dues, which are
outstanding as on 31^st March, 2025 and identified MSME creditors to whom payment delayed beyond
45 days. This information is disclosed as required under the Micro, Small and Medium Enterprises
Development Act, 2006

The Company has initiated the process of obtaining the confirmation from suppliers who have
registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006
(MSMED Act, 2006) but has not received the same in totality. The above information is compiled based
in the extent of responses received by the company from its suppliers.

Note 34: Letter of credit for supply of raw material opened on behalf of company amounting to Rs
6,195.85 Lakhs as on 31.03.2025 has been included in Trade payable as secured creditors for Bills
discounted under letter of credit.

NOTE 35: In the opinion of the company, the value on realization of Current assets, Loans and
Advances in the ordinary course of the business shall not be less than the amount at which they are
stated, except the provision made by the company only for disputed receivables and other current
assets in the Balance Sheet which are subject to confirmation/reconciliation.

Amount of Rs 31.77 Lakhs (Previous year Rs 36.09 Lakhs) towards contribution to provident fund and
pension fund is recognised as an expense and included in Employee Benefit Expenses in Notes to
Accounts forming part of Financial Statements.

NOTE 37: SEGMENT REPORTING

Based on guiding principle given in Accounting Standard 17 Segment reporting, Issued by the Institute of
Chartered Accountants of India:

a) Primary Segment (Business Segment):

The Company is engaged in the business of Manufacturing of ERW Black Pipe, Galvanized Steel
Tubes, Cold Rolled Strips, S.T. Poles, Solar Mounting Structures and similar nature goods. The entire
operations are governed by the same set of risk and returns. Hence, the same has been considered
as representing a single Business Segment.

b) Secondary Segment (Geographical Segments)

During the both reporting periods, Current and previous year, the Company's major sale is located
only in India. Hence, the same has been considered as representing a single Geographical Segment.

NOTE 38: CORPORATE SOCIAL RESPONSIBILITY

The provisions of section 135 of the Companies Act, 2013 are applicable on the company for the F.Y. 2024-25.
The Board of Directors of the Company have contributed Rs 16.74 Lakhs (Previous Year Rs 13.62 Lakhs) in the
current financial year towards promoting Education, Health Care, etc. covered under the CSR Activity as defined
in the Companies Act ,2013.

NOTE 41: Balances under some of the Trade Receivables, Trade Payable, Loans and Advances Payable or
Receivable and other current assets including balance with revenue authorities are subject to confirmation and
their classification are subject to reconciliation.

NOTE 42: Borrowings from banks and financial institutions were applied for the specific purpose for which the
borrowings were obtained at the balance sheet date.

NOTE 43: Title deeds of Immovable Property are held in name of the Company.

NOTE 44: During the year, the Company has not revalued its Property, Plant and Equipment.

NOTE 45: LOANS & ADVANCE TO RELATED PARTIES

There are no Loans or Advances in the nature of loans that are granted to promoters, Directors, KMPs and the
related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

The Company does not have any capital-work-in progress, whose completion is overdue or has exceeded its cost
compared to its original plan. Further, Company does not have Intangible assets under development.

NOTE 47: During the year no proceedings have been initiated or are pending against the Company as at
31.03.2025 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and rules made thereunder.

NOTE 48: Quarterly returns or statements of current assets filed by the Company with banks or financial
institutions are materially in agreement with the books of accounts

NOTE 49: During the year, the company has not been declared willful defaulter by any bank or financial institution
or other lender.

NOTE 50: RELATIONSHIP WITH STRUCK OFF COMPANIES

The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

NOTE 51: REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

There are no charges or satisfaction of Charges which are yet to be registered with Registrar of Companies
beyond the statutory period. However, in the following case the company has not been able to file e-form CHG-4
for satisfaction of charge with Registrar of companies due to non-availability of NOC for below mentioned loans:

Note 54: Compliance With Approved Scheme(S) Of Arrangements

The company does not have any Scheme of Arrangements approved by the Competent Authority in
terms of sections 230 to 237 of the Companies Act, 2013.

Note 55: Utilization Of Borrowed funds And Share premium:

a) The Company has not advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) to in any other person(s) or entity(ies), including
foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise,

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 on behalf of the Ultimate Beneficiaries;

b) The Company has not received the funds from any person(s) or entity (ies), including foreign entities
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the company shall,

(i) Whether 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.

NOTE 56: UNDISCLOSED INCOME

There were no transactions which were not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

NOTE 57: DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

During the year, the company had not traded or invested in Crypto Currency or Virtual Currency, hence this note
is not applicable.

NOTE 58: The company has sold goods under Jal Shakti Mission to Public Health & Engineering departments of
the State of Jammu, Kashmir and Shimla (Himachal Pradesh). Due to delay in payments from these departments,
the Company has suffered huge financial burden of Interest on the borrowed funds, apart from loss of business
opportunities. Accordingly, in terms of clause 1 of the Invoice, the company is entitled to charge & recover interest
on delayed payments from these departments. As such, the Company has raised debit notes amounting to Rs.
3280.49 lacs for the interest on delayed payments of these departments and have also deposited GST on the
same, as per law. The total amount of Rs. 3492.14 Lacs as stated in Note 21 includes the amount of the Debit
Notes for interest on delayed payments. The Company has already submitted its claim to the respective
departments and as per the precedence, there is every possibility that the Company will be successful in
recovering the same from the respective state governments. The income from these debit notes is disclosed
under “Other Operating Revenues” under the head "Revenue from Operations".

NOTE 59: The figures of the previous year have been regrouped / recast, wherever necessary, to conform to the
current year figures including those on account of adoption of Schedule-III of the Companies Act, 2013.

For O. AGGARWAL & CO. FOR SWASTIK PIPE LIMITED

CHARTERED ACCOUNTANTS
FRN: 005755N

CA SHUBHAM GUPTA SANDEEP BANSAL SANDEEP KHUDA

PARTNER (MANAGING DIRECTOR) (DIRECTOR)

M. No.: 539733 DIN: 00165391 DIN: 10216339

UDIN-25539733BMJBC42953

PLACE: NEW DELHI SUNIL GAUTAM TARUN

DATED: 28-05-2025 (CFO) (CS)