Notes to Accounts of Aditya Ultra Steel Ltd

Mar 31, 2025

r Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow
of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding
retirement benefits and compensated absences) are not discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent asset is
neither recognised no r disclosed in the financial statements.

As per our report of even date

For S. N. SHAH & ASSOCIATES For and on behalf of the Board of

Chartered Accountants Aditya Ultra Steel Limited

Firm''s Registration No. 109782W

Priyam Shah Sunny Singhi Varun Jain Amitkumar Sarena

Partner Managing Director Non-Executive Director Chief Financial Officer

Membership No. 144892 07210706 03502561

UDIN: 25144892BMHWNG2098

Place: Ahmedabad Vikas Babusingh Panwar

Date: 27 May 2025 Company Secretary

Primary Security:

Hypothecation of all Plant & Machinery for Term Loan and Vehicles for vehicle loan.

Collateral Security for Term Loan from HDFC Bank:

Secured by Equitable Mortgage of Land & Building situated at R/S No 48 Paiki 1,2,3,4,5, NH 8A, Bhalgam, Ta: Wankaner, Rajkot Owned by
Aditya Ultrasteel Limited.

Guarantees for Term Loan:

From Directors and Others

GECL from HDFC Bank to be repaid in 36 monthly EMI.

Car loan to be repaid in 60 monthly instalments of ''. 2,81,488/- each.

Oxyzo Financial Services Private Limited loan to be repaid in 24 instalments of ''. 16,66,667/- each

General Description of the Plan

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for
payment to vested employees at retirement, death while in employment or on termination of employment in accordance with the scheme
of the company. Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits payable
in the future based on an actuarial valuation.

Reasons for Variances

For Current Ratio - Increase in current ratio compared to previous year indicates the improvement in entity''s short term liquidity.

For Debt Equity Ratio - Equity of the company has increased during the year due to which the ratio has improved as compared to the
previous year.

For Return On Equity Ratio - Average Equity of shareholder has increased during the year benefit of which is yet to be realised by the
company leading to reduction in ROE ratio.

For Trade Payable Turnover Ratio - It indicates that the company is getting higher credit from its suppliers during the year.

For Net Capital turnover ratio- Turnover of the company has not increased in the same proportion as increase in average working capital
available with the company. This has led to reduction in Net Capital turnover ratio as at 31.03.2025.

For Return on capital Employed - The company has raised capital by the way of Initial Public offer for setting a new solar plant which is under
development, due to this the capital employed is increased which has resulted in reduction in the ratio.

Nature of CSR activities

Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and
the differently abled and livelihood enhancement projects.

36 OTHER STATUTORY DISCLOSURES AS PER THE COMPANIES ACT, 2013

(A) Details for Benami Property :-

According to the information and explanation given to us, no proceedings have been initiated or are pending against the company
for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder
during the year. There is not any Benami property held by the Company.

(B) Relation with Struck off Companies :-

The entity has not entered into any transactions or maintained any relationships with companies that have been struck off from
the register.

(C) Compliance with the number of layers of the company :-

The Company has no subsidiaries with one layer prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.

(D) Compliance with approved schemes of Arrangement :-

The company has not undertaken any scheme of arrangement under Sections 230 to 232 of the Companies Act, 2013 during the
reporting period. Accordingly, there are no compliance requirements arising from any approved scheme of arrangement.

(E) Utilisation Of Borrowed Funds And Share Premium:

(a) During the year, 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 persons or entities, 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, any security or the like on behalf of the Ultimate Benificiaries.

(b) During the year, no funds have been received by the Company from any persons or entities, including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, any security or the like on behalf of the Ultimate
Benificiaries.

(F) MSME Disclosure:

(a) The company has communicated suppliers to provide confirmations as to their status as Micro, Small or Medium Enterprise
registered under the applicable category as per the provisions of the Micro, Small and Medium Enterprises (Development)
Act, 2006 (MSMED Act, 2006). The company has classified suppliers into Micro, Small and Medium Enterprises as per the
confirmations received by the company upto the date of the financial statements.

(b) Based on the classification of MSME suppliers and communication from them, there was no interest claim from any MSME
supplier in respect of which the company was liable to provide for any interest on delayed payment beyond the agreed
period of payment to respective supplier. The company was not liable to provide for any interest liability in respect of delayed
payment.

(G) Undisclosed Income:

(a) Transaction not recorded in the books of accounts that have been surrendered or disclosed as income in tax assessments
under Income Tax Act, 1961 - NIL (Previous year - NIL)

(b) Previously unrecorded income and related assets which have been properly recorded in the books of accounts during the
year - NIL (Previous year - NIL)

(H) The Company have not traded or invested in Crypto currency during the period under review.

(I) The Company is not declared as willful defaulter by any bank or financial institution or other lender.

(J) The Company have no immovable property whose title deeds are not held in the name of the company.

37 REALIZATION AND CONFIRMATION

In the opinion of the Board of Directors, Current Assets & Loans and Advances have a value on realisation in the ordinary course of
business equal to the amount at which they are stated in the balance sheet. In the opinion of the Board of Directors, claims receivable
against property/goods are realizable as per the terms of the agreement and/or other applicable relevant factors and have been stated
in the financial statements at the value which is most probably expected to be realized.

The company has obtained balance confirmation from some of the parties for Unsecured Loans, Sundry Creditors, Sundry Debtors and
parties to whom loans/advance have been granted. All other balances of debtors and creditors, loans and advances and unsecured
loans are subject to confirmation and subsequent reconciliation, if any.

38 REGROUPING

The previous year''s figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with
those of the current period.

39 PAISE ARE ROUNDED UP TO THE NEAREST OF RUPEE. THE NEGATIVE FIGURES HAVE BEEN SHOWN IN BRACKETS.

As per our report of even date

For S. N. SHAH & ASSOCIATES For and on behalf of the Board of

Chartered Accountants Aditya Ultra Steel Limited

Firm''s Registration No. 109782W

Priyam Shah Sunny Singhi Varun Jain Amitkumar Sarena

Partner Managing Director Non-Executive Director Chief Financial Officer

Membership No. 144892 07210706 03502561

UDIN: 25144892BMHWNG2098

Place: Ahmedabad Vikas Babusingh Panwar

Date: 27 May 2025 Company Secretary

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Mar 31, 2024

(A) :Continqent liabilities & committements:
Particulars	Period ended	Year ended
	March 31,2024	March 31,2023
a) Contingent Liabilities 1) Bank guarantees given to PGVCL from HDFC Bank	137.68	137.68
2) Corporate guarantee given on behalf of VMS TMT Private Limited - HDFC Bank		1801.98
- SVC Bank	4167.56	3628.43
- ICICI Bank	2793.20	-
TOTAL Rs. >>>	7098.45	5568.10

(A)(1) :Contingent Liabilities not provided:

The Company has not recognized anc acknowledged the GST demand as liability in its books of accounts aggregating to Rs. 261.93 lacs in respect of earlier years since the company has disputed the demand and has filed reply before appropriate authorities. The same are pending for final adjudication.

The Company has not recognized and acknowledged the Income Tax demand as liability in its books of accounts aggregating to Rs. 322.11 lacs in respect of earlier years since the company has disputed the demand and has filed reply before appropriate authorities. The same are pending for final adjudication.

(D) : Utilisation Of Borrowed Funds And Share Premium:

(a) During the year, no funds have been advanced or caned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any persons or entities, including foreign entities (’’Intermediaries"), with the understanding, whether recorded in writing cr otherwise, that the Intermediary shall, whether, directly or indirectly lend or Invest In other persons or entitles identified n any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries”) or provide any guarantee, any security or the like on behalf of the Ultimate Bemficiaries.

(b) During the year, no funds have beer received by the Company from any persons or entitles, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, any security or the like on behalf of the Ultimate Benificiaries.

(E) : Taxes on Income:

Taxes on income comprises of current tax and deterred tax. Taxes on income have been determined based on the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income taxes are determined for future consequences attributable to timing differences between financial determination of income and income chargeable to tax as per the provisions cf Income Tax Act, 1961. Deferred tax liability has been worked out using the tax rate and tax laws that were in force as on the date of balance sheet and has not been discounted to its present value.

(F) :Provisions, Contingent Liabilities and Contingent Assets:

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of the Company''s resources embodying economic benefits and a reliable estimate can be made of the amount of the obligation. A disclosure of contingent liabilities Is made when there is a possible obligation that may, but probably will not, require an outflow of resources. As a measure of prudence, the contingent assets are not recognised.

(G) :Prior Period Items:

Prior period expenses have been adjusted to the carrying amount of surplus of Statement of Profit & Loss.

(H)

In the opinion of the Board of Directors, Current Assets & Loans and Advances have a value on realisation in the ordinary course of business equal to the amount at which they are stated in the balance sheet. In the opinion of the Board of Directors, claims receivable against property/goods are realizable as per the terms of the agreement and/or other applicable relevant factors and have been stated in the financial statements at the value which Is most probably expected to be realized.

(I)

The company has obtained balance confirmation from some of the parties for Unsecured Loans, Sundry Creditors, Sundr/ Debtors and parties to whom loans/advance have been granted. All other balances of debtors and creditors, loans and advances and unsecured loans are subject to confirmation and subsequent reconciliation, if any.

(J)

The previous year''s figures have been reworked, regrouped and reclassified wherever necessary so as to make them comparable with those of the current period.

(K)

Palse are rounded up tc the nearest of rupee. The negative figures have been shown in brackets.____

Note 29 (A)

(b) Defined benefit plans:

The Company has following post employment benefits which are in the nature of defined benefit plans:

(a) Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for payment to vested employees at retirement, death while In employment or on termination of employment In accordance with the scheme of the company. Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation.

Notes

3 The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

b The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation as It is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

c Furthermore, In presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is t.ne same method as applied in calculating the Defined Benefit Obligation as recognised In the balance sheet