Notes to Accounts of Ashoka Metcast Ltd.

Mar 31, 2025

21. Notes on Accounts
Contingent Liabilities

There is no contingent liability as informed by management.

Capital Expenditure Commitments: Nil
Related Party Transactions:-

As per Indian Accounting Standard (Ind AS-24) issued by the Institute of Chartered Accountants of India, the disclosures of
transactions with the related parties are given below:

List of related parties where control exists and related parties with whom transactions have taken place and relationships:

Ashoka Metcast Limited has given corporate guarantee on behalf of Rhetan TMT. Ltd. (subsidiary) to Punjab National
Bank.

• Previous year figures have been regrouped and rearranged as and when required to bring uniformity in comparison with
current year figures.

• In opinion of the management of the company, all loans, advances, and deposits are recoverable in cash or kind for value
to be received for which no provision is required.

• Confirmations of the concerned parties for the amount due to them and/or due from them as per accounts of the
company are not received. Necessary adjustments, if any, will be made when accounts are reconciled or settled. Balance
of sundry debtors and creditors, loans and advances accepted and given in the balance sheet are subject to
confirmation.

Earnings per Share

The earning considered in ascertaining the company''s EPS comprises the profit available for shareholders i.e. profit after
tax and statutory/regulatory appropriations. The number of shares used in computing Basic EPS is the weighted average
number of shares outstanding during the year as per the guidelines of Ind AS-33.

♦ Capital Management

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while
maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of
the Company consists of net debt (borrowings offset by cash and bank balances) and total equity of the Company.

• Fair value hierarchy

The following section explains the judgments and estimates made in determining the fair values of the financial
instruments that are recognized and measured at fair value through profit or loss. To provide an indication about the
reliability of the inputs used in determining fair value, the Company has classified its financial investments into the three
levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Notes:

Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active market for identical
assets that the entity can access at the measurement date. This represents mutual funds that have price quoted by
the respective mutual fund houses and are valued using the closing Net asset value (NAV).

Level 2 hierarchy includes the fair value of financial instruments measured using quoted prices for identical or similar assets
in markets that are not active.

Level 3 if one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted compound instruments.

There are no transfers between any of these levels during the year. The Company''s policy is to recognize transfers into and
transfers out of fair value hierarchy levels as at the end of the reporting period.

C. Fair value of financial assets and liabilities measured at amortized cost

The Management has assessed that fair value of loans, trade receivables, cash and cash equivalents, other
bank balances, other financial assets and trade payables approximate their carrying amounts largely due to
their short term nature. Difference between carrying amount of Bank deposits, other financial assets,
borrowings and other financial liabilities subsequently measured at amortized cost is not significant in each of
the years presented.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair
values.

Financial risk management

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk
management framework. The board has established the Audit Committee, which is responsible for developing and
monitoring the Company''s risk management policies. The Committee holds regular meetings and report to board on
its activities. The Company''s risk management policies are established to identify and analyses the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The
Company, through its training and management standards and procedures, aims to maintain a disciplined and
constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company''s risk management policies
and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the
Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular
and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit
committee.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

(a) Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations. The company is exposed to the credit risk from its trade receivables, unbilled revenue,
investments, cash and cash equivalents, bank deposits and other financial assets. The maximum exposure to credit risk is
equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses
in financial assets.

Trade Receivables

Trade receivables comprise a widespread customer base. Management evaluates credit risk relating to customers on an
on-going basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent
rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience
and other factors

(b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing
liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due,
under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Company''s reputation.

Liquidity Table

The Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment
periods is given below. The tables have been drawn up based on the undiscounted cash flows of financial liabilities
based on the earliest date on which the Company can be required to pay. The tables include both interest and principal
cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

(c) Market Risk

Market risk is the risk arising from changes in market prices - such as foreign exchange rates and interest rates - will
affect the Company''s income or the value of its holdings of financial instruments. The Company is exposed to market
risk primarily related to interest rate risk and the market value of the investments. Thus, the exposure to market risk is a
function of investing and borrowing activities

- Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates.

Company''s borrowings are Interest free, So there has been no exposure arise regarding Interest Rate Risk.

(d) Price Risk Exposure

The Company''s exposure to securities price risk arises from investments held in mutual funds and classified in the
balance sheet at fair value through profit or loss. To manage its price risk arising from such investments, the Company
diversifies its portfolio. Further these are all debt base securities for which the exposure is primarily on account of
interest rate risk. Quotes (NAV) of these investments are available from the mutual fund houses. Profit for the year
would increase/decrease as a result of gains/losses on these securities classified as at fair value through profit or loss.

For, Ashoka Metcast Limited For, G M C A & CO.

(Chartered Accountants)
F.R.N. : 109850W

Shalin A. Shah Ashok C. Shah Riddhi Shah Harshil Vyas

Director Managing Director Company Secretary CFO

DIN : 00297447 DIN : 02467830 CA Amin G. Shaikh

Partner

Place : Ahmedabad M.No. : 108894

Date : 28.05.2025 UDIN: 25108894BMKOTO9145

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Mar 31, 2024

• Provisions and Contingent liabilities:

Provisions are recognized when the present obligation of the past event gives rise to a probable outflow embodying economic benefits on settlement, and the amount of obligation can be reliably estimated.

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved.

Provisions and contingent liability are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

• Provision for Current and Deferred Tax:

Taxes on income are computed using Tax Deferral Assets or Liability method where taxes accrue in the same period, the respective revenue and expenses arises. The differences that result between the profit offered for income tax and the profit as per standalone financial statements are identified and Deferred Tax Liability is recognized for timing difference, that originate in one accounting period and reverse in another based on the tax effect of the prevailing enacted regulation in force.

Deferred Tax Assets are recognized subject to prudence, only, if there is reasonable certainty that they will be realized and are subject to appropriate reviews at each balance sheet date for the purpose of measurement of Deferred Tax Liability or Assets, the applicable tax rates and enacted regulations expected to apply in the year in which the temporary differences are expected to be recovered or settled are applied.

Minimum Alternative Tax Credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay Taxes on Taxable Income furnishing the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the profit and loss statement and shown as MAT Credit entitlement.

For current year, the Company has elected to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment)Ordinance, 2019. Accordingly, the Company has recognized provision for taxation and re-measured its deferred tax liabilities basis the rate prescribed in the said Section. The impact of such change has been recognized over the year ended March 31, 2023 since the Company has used effective tax rate for full financial year.

• Borrowing Cost:

Borrowing cost directly attributable and/or funds borrowed generally and used for the purpose of acquisition/construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized, at its capitalization rate to expenditure on that assets, for the period, until all activities necessary to prepare qualifying assets for its intended use are complete. All other borrowing costs are recognized as an expense in the year in which they are incurred.

• Retirement Benefits:

Company does not have any defined benefit plan. The company does not permit accumulating of unused leaves. The company does not provide any long-term employee benefits.

• Sundry Debtors:

No provision has been made for the bad and doubtful debts. The bad debts are charged to revenue in the year of, as and when they arise.

• Earnings Per Share:

Basic Earnings Per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculation of Diluted Earnings per share, the net 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 shares.

• Cash & Cash Equivalents:

Cash and cash equivalents for the propose of cash flow statement comprise of cash in hand, cash at bank, fixed deposit, margin money deposit and short-term deposit in bank with original maturity of 12 months or less.

• Segment Reporting

(a) Primary Segment Reporting (Business Segment):

During the year company is in 2 business segments that is trading of goods and trading of steel, hence the reporting on the primary business segment in pursuance to Accounting Standard No.17 issued by ICAI has been disclosed in "Disclosure to the Standalone Financial Statement".

(b) Secondary Reporting (Geographical Segment) :

Geographical environment in which company operates does not materially differ considering the political and economic environment, the type of customers, assets employed and the risk associated in respect of each of the geographical area. Hence the reporting on the secondary business segment in pursuance to accounting Standard No. 17 issued by ICAl is not applicable.

DISCLOSURE TO THE STANDALONE FINANCIAL STATEMENT FOR THE YEAR ENDED ON 31^st MARCH, 2024 :

• Accounting for Taxes on Income:

(a) Deferred tax assets/liabilities Charges/credit during the year has been given in Note to financial statements.

(b) The provision of current taxes has been made in the accounts as the taxable income computed as per Income Tax Act,1961.

• Foreign currency transactions

a) Functional and presentation currency

The financial statements are presented in Indian rupee (INR), which is Company''s functional and presentation currency.

b) Transactions and balances

During the year, company has not entered into foreign currency transaction.

• Segmentation Reporting :

(a) Primary Segment Reporting (Business Segment) :

The reporting on the primary business segment in pursuance to Accounting Standard No.17 issued by ICAI has been made as under :

• Ashoka Metcast has given corporate guarantee on behalf of Rhetan TMT. Ltd. (subsidiary) to Punjab National Bank.

• Previous year figures have been regrouped and rearranged as and when required to bring uniformity in comparison with current year figures.

• In opinion of the management of the company, all loans, advances, and deposits are recoverable in cash or kind for value to be received for which no provision is required.

Confirmations of the concerned parties for the amount due to them and/or due from them as per accounts of the company are not received. Necessary adjustments, if any, will be made when accounts are reconciled or settled. Balance of sundry debtors and creditors, loans and advances accepted and given in the balance sheet are subject to confirmation.

For, Ashoka Metcast Limited For, G M C A & CO.

(Chartered Accountants)

Shalin A. Shah Ashok C. Shah Aanchal N. Bansal Dipak Pandit Nikam ^F.^R.^N. ^{: 109850W}

Director Managing Director Company Secretary CFO

DIN : 00297447 DIN : 02467830 ^{(CA Mitt S}- ^Patel)

Partner

Place : Ahmedabad M.No. : 163940

Date : 28.05.2024 UDIN: 24163940BKADZA6564