Notes to Accounts of Balu Forge Industries Ltd.

Mar 31, 2025

5.11.Provisions and contingencies

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result
of a past event, it is probable that the Company 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
consideration required to settle the present obligation at
the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. When

a provision is measured using the cash flows estimated
to settle the present obligation, its carrying amount is the
present value of those cash flows (when the effect of the
time value of money is material).

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 or a reliable estimate of the amount cannot be
made. Information on contingent liability is disclosed in
the Notes to the Financial Statements.

Contingent assets are not recognised but disclosed when
the inflow of economic benefits is probable. However,
when the realization of income is virtually certain, then
the related asset is no longer a contingent asset, but it is
recognised as an asset.

5.12.Employee benefits

5.12.1. Defined Contribution Plans:

Payments to defined contribution retirement
benefit scheme for eligible employees in the form
of superannuation fund and provident fund are
recognised as expense when employees have
rendered services entitling them to the contributions.
The Company has no further payment obligation once
the contributions have been paid. The contributions
are accounted for as defined contribution plans
and the contributions are recognised as employee
benefit expenses when they are incurred.

5.12.2. Defined Benefits Plans:

For defined benefit retirement schemes, the cost of
providing benefits is determined using the Projected
Unit Credit Method, with actuarial valuation being
carried out at each year-end balance sheet date. Re¬
measurement gains and losses of the net defined
benefit liability/(asset) are recognised immediately
in other comprehensive income. The service cost and
net interest on the net defined benefit liability/(asset)
are recognised as an expense within employee costs.

Past service cost is recognised as an expense when
the plan amendment or curtailment occurs or when
any related restructuring costs or termination
benefits are recognised, whichever is earlier.

The retirement benefit obligations recognised in the
balance sheet represents the present value of the
defined benefit obligations as reduced by the fair
value of plan assets.

5.12.3. Compensated absences

Liabilities recognised in respect of other long-term
employee benefits such as annual leave and sick

leave are measured at the present value of the
estimated future cash outflows expected to be made
by the Company in respect of services provided
by employees up to the reporting date using the
projected unit credit method with actuarial valuation
being carried out at each yearend balance sheet date.
Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions
are charged or credited to the statement of profit and
loss in the period in which they arise.

Compensated absences which are not expected
to occur within twelve months after the end of the
period in which the employee renders the related
service are recognised based on actuarial valuation.

5.13.Financial instruments

Financial assets and financial liabilities are recognized
when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and
liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities (other
than financial assets and financial liabilities at fair value
through profit and loss) are added to or deducted from
the fair value measured on initial recognition of financial
asset or financial liability. The transaction costs directly
attributable to the acquisition of financial assets and
financial liabilities at fair value through profit and loss
are immediately recognised in the statement of profit and
loss. Trade receivables that do not contain a significant
financing component are measured at transaction price.

i. Financial Assets

Cash and bank balances

Cash and bank balances consist of:

(i) Cash and cash equivalents - which includes
cash in hand, deposits held at call with banks
and other short-term deposits which are
readily convertible into known amounts of cash,
are subject to an insignificant risk of change in
value and have original maturities of less than
three months. These balances with banks are
unrestricted for withdrawal and usage.

(ii) Other balances with banks - which also include
balances and deposits with banks that are
restricted for withdrawal and usage.

Financial assets at amortised cost

Financial assets are subsequently measured at
amortised cost when they are held within a business
model whose objective is to collect contractual cash
flows, and the contractual terms give rise on specified
dates to cash flows that are solely payments of principal
and interest on the outstanding principal amount.

Financial Assets Measured at Fair Value

Financial assets are classified as measured at fair
value through other comprehensive income (FVOCI)
when they are held within a business model whose
objective is both to collect contractual cash flows
and to sell the assets, and where contractual cash
flows represent solely payments of principal and
interest. The Company has made an irrevocable
election for certain equity investments (excluding
investments in associates and joint ventures) not
held for trading to present subsequent fair value
changes in other comprehensive income. This
election is made on an instrument-by-instrument
basis at initial recognition. These investments are
held for medium to long-term strategic purposes.
Management believes that presenting these changes
in OCI better reflects the nature of such investments
than recognizing fair value changes directly in the
Statement of Profit and Loss.

Financial assets that do not meet the criteria for
amortised cost or FVOCI measurement are carried at
fair value through profit or loss (FVTPL).

Interest Income

Interest income is recognized on an accrual basis
using the effective interest rate method, calculated
by applying the effective interest rate to the principal
outstanding, and is recorded in the Statement of
Profit and Loss.

Dividend Income

Dividend income from investments is recognised in
the Statement of Profit and Loss when the Company''s
right to receive payment is established.

Impairment of Financial Assets

The Company applies the expected credit loss (ECL)
model for impairment of financial assets measured
at amortised cost and FVOCI. Lifetime expected
credit losses are recognized for all trade receivables
that do not have a financing component. For financial
assets other than these trade receivables, the loss
allowance is measured as 12-month expected credit
losses where the credit risk has not significantly
increased since initial recognition; however, if the
credit risk has increased significantly, lifetime
expected credit losses are recognized.

Derecognition of Financial Assets

The Company derecognizes a financial asset
only when the contractual rights to cash flows
expire or when the asset is transferred along with
substantially all the risks and rewards of ownership
to another party. If the Company neither transfers
nor retains substantially all risks and rewards but
retains control, it continues to recognize the asset

with an associated liability for amounts that may
be payable. If the Company retains substantially
all risks and rewards, the asset continues to be
recognized, together with a borrowing representing
the proceeds received.

Financial Liabilities and Equity Instruments
Classification as Debt or Equity

Financial liabilities and equity instruments issued by
the Company are classified based on the substance
of the contractual arrangements and the definitions
of financial liabilities and equity instruments.

Equity Instruments

An equity instrument is any contract that evidences
a residual interest in the assets of the Company after
deducting all liabilities. Equity instruments are recorded
at the proceeds received, net of direct issuance costs.

Financial Liabilities

Trade payables and other short-term liabilities are
initially measured at fair value minus transaction costs
and subsequently measured at amortised cost using
the effective interest rate method where the time value
of money is significant. Interest-bearing bank loans,
overdrafts, and issued debts are initially recognized at
fair value and subsequently measured at amortised
cost using the effective interest rate method. Any
difference between proceeds (net of transaction costs)
and the redemption amount is recognized over the
term in the Statement of Profit and Loss.

Derecognition of Financial Liabilities

Financial liabilities are derecognized when the
Company''s obligations are discharged, cancelled,
or have expired.

5.14.Segments reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker.

The Board of directors of the Company has been identified
as the Chief Operating Decision Maker which reviews

and assesses the financial performance and makes the
strategic decisions.

5.15.Earnings per share Basic earnings per share

Basic earnings per share is computed by dividing the net
profit after tax by weighted average number of equity
shares outstanding during the year. The weighted average
number of equity shares outstanding during the year is
adjusted for treasury shares, bonus issue, bonus element
in a rights issue to existing shareholders, share split and
reverse share split (consolidation of shares).

Diluted earnings per share

Diluted earnings per share is computed by dividing the
profit after tax as adjusted for dividend, interest and other
charges to expense or income (net of attributable taxes)
associated with dilutive potential equity shares by the
weighted average number of equity shares considered
for deriving basic earnings per share and also the
weighted average number of equity shares that could
have been issued upon conversion of all dilutive potential
equity shares including the treasury shares held by the
Company to satisfy the exercise of the share options
by the employees.

5.16.Share Issue Expenses

The transaction costs of an equity transaction are
accounted for as a deduction from equity to the extent
they are incremental costs directly attributable to the
equity transaction.

5.17. Rounding off amounts

All amounts disclosed in the standalone financial
statements and notes have been rounded off to the
nearest crore as per the requirement of Schedule III,
unless otherwise stated.

5.18. Exceptional items

Exceptional Items include income/expenses that are
considered to be part of ordinary activities, however of
such significance and nature that separate disclosure
enables the users of standalone financial statements
to understand the impact in more meaningful manner.
Exceptional Items are identified by virtue of their size,
nature and incidence.

Note :

During the FY 2024-25, the Company has issued and allotted:

i. 36,75,000 Equity Shares having face value of H10/- each at an issue price of Rs. 183.60/- fully paid up upon exercising the option
available with the Share Warrant Holder (person belonging to the Promoter group) to convert 36,75,000 Convertible Warrants

ii. 45,00,000 Equity Shares to the Non-Promoters (Public Category) on preferential basis of H10/- each for cash at premium of Rs.
350/- aggregating to Rs. 1,62,00,00,000/-.

iii. 93,00,000 Convertible Warrants to persons forming part of promoter group on preferential basis of H10/- each for cash at premium
of Rs. 350/- aggregating to H3,34,80,00,000/-, with an option to convert the same into equal number of equity shares of H10/-
(Rupees Ten) each at an issue price of Rs. 360/- per share within a period of 18 months from the date of allotment of warrants.

During the periods mentioned above, there have been no transfers amongst the levels of hierarchy.

The carrying amounts of current trade receivables, current financial assets, cash and bank balances, loans, trade
payables, current borrowings, current financial liabilities and current lease liabilities are considered to be approximately
equal to their fair value.

The fair value of non current borrowings is considered to be equal to the carrying amount as the same is at variable
rate of interest

b) Financial risk management

Market risk is the potential loss of earnings, fair values, or cash flows due to changes in interest rates, foreign exchange rates,
equity prices, or other market variables affecting financial instruments. The Company''s principal financial liabilities comprise
borrowings, lease obligations, and trade payables, while its financial assets mainly include receivables, cash, and deposits.
Key risks arising from these instruments are foreign currency risk, interest rate risk, credit risk, and liquidity risk. The Board
of Directors reviews and approves policies for managing these risks. The Corporate Treasury function facilitates access to
financial markets and oversees risk management in line with approved policies. The Company does not enter into derivatives
for speculative purposes.

1) Market risk

The Company is primarily exposed to risks arising from fluctuations in foreign currency exchange rates, interest rates,
and commodity prices. These risks are managed through prudent financial management, operational efficiencies, and
continuous monitoring rather than through the use of derivative or forward contracts

To address such exposures, the Company has established Risk Management Policies approved by the Board of Directors,
providing a structured framework for identifying, assessing, and mitigating risks. The Treasury Department tracks
foreign exchange exposures and commodity price movements, prepares periodic reports, and submits them to the

Risk Management Committee. These reports are subsequently placed before the Audit Committee to ensure oversight,
compliance, and effective implementation of the approved framework.

The Company does not trade in financial instruments for speculative purposes.

a) Foreign currency risk management

The Company''s functional currency is Indian Rupees (H). The Company undertakes transactions denominated in
foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in exchange rates affects
the Company''s revenue from export markets. The Company is exposed to exchange rate risk under its trade portfolio.

Adverse movements in the exchange rate between the Rupee and any relevant foreign currency result''s in decrease
in the Company''s overall receivables in Rupee terms and favourable movements in the exchange rates will
conversely result in increase in the Company''s receivables in Rupee terms.

Going by the past trends and future prospects in respect of movement in exchange rate between the Rupee and any
relevant foreign currency, the Board expects that there will be favourable movements in the exchange rate and accordingly
the management has decided not to hedge the foreign currency through any forward exchange contract. Therefore,
receivables aggregating to H 25902.43 lakhs outstanding As at 31 March 2025 represents as unhedged position.

Note: The Company does not have any financial liabilities denominated in foreign currency as at 31 March 2024.

*unhedged currency position

The following table details the Company''s sensitivity to a 1% increase and decrease in the H against the relevant
foreign currencies. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management
personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates.
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts
their translation at the year-end for a 1% change in foreign currency rates, with all other variables held constant.
A positive number below indicates an increase in profit or equity where H strengthens 1% against the relevant
currency. For a 1% weakening of H against the relevant currency, there would be a comparable impact on profit or
equity, and the balances below would be negative.

The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate
liabilities, assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.

If interest rates had been 100 basis points higher / lower and all other variables were held constant, the Company''s
profit for the year ended 31 March 2025 would decrease / increase by H 21.74 Lakhs (for the year ended 31 March
2024: decrease / increase by H 28.43 Lakhs). This is mainly attributable to the Company''s exposure to interest rates
on its variable rate borrowings

c) Commodity Price Risk

The Company is primarily exposed to fluctuations in the prices of steel and alloy steels, which are the key raw
materials for manufacturing crankshafts. Most contracts with Indian customers are based on mutually agreed price
mechanisms, which partially offset the impact of raw material price volatility. However, in the case of firm price
orders, any sharp movement in commodity prices may impact profitability.

The Company manages this risk through long-term supplier relationships, bulk procurement strategies, and
continuous monitoring of price trends. Risk management policies approved by the Board of Directors provide a
structured framework for addressing commodity price exposures. The Company does not enter into commodity
derivative contracts and relies on operational measures to mitigate such risks.

2) Credit risk management:

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well
as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining
sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

Company''s credit risk arises principally from the trade receivables, loans, cash & cash equivalents.

Trade receivables

Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control
relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating
scorecard and individual credit limits defined in accordance with the assessment.

Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with
no significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate
action is taken for collection of overdue receivables.

Cash and cash equivalents

Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy.
The Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high
credit- ratings assigned by credit-rating agencies.

In addition, the Company is not exposed to credit risk in relation to financial guarantees given to banks and other
counterparties.

3. Liquidity risk management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds
in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for
short term operational needs as well as for long term capital expenditure growth projects. The Company generates sufficient
cash flow for operations, which together with the available cash and cash equivalents and short term investments provide
liquidity in the short-term and long- term. The Company has established an appropriate liquidity risk 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 by matching the maturity profiles of financial assets and liabilities.

The following tables detail the Company''s remaining contractual maturity for its non- derivative financial liabilities
with agreed repayment periods and its non-derivative financial assets. 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.

To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at
the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be
required to pay.

Collateral

The Company has pledged part of its trade receivables, short term investments and cash and cash equivalents in order
to fulfil certain collateral requirements for the banking facilities extended to the Company. There is obligation to return
the securities to the Company once these banking facilities are surrendered (Refer note 23 and 25).

4) Capital Risk management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating, healthy capital ratios
and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity.

The Company''s capital requirement is mainly to fund its capacity expansion and repayment of principal and interest on its
borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated
from its operations supplemented by funding from bank borrowings and the equity capital by way of preferential
allotment. The Company is not subject to any externally imposed capital requirements.

The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest
cost and elongate the maturity of its debt portfolio, and closely monitors its judicious allocation amongst competing
capital expansion projects, to capture market opportunities at minimum risk.

The Company monitors its capital using gearing ratio, which is net debt, divided to total equity. Net debt includes, interest
bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents and
current investments.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in
the financial covenants of any interest-bearing loans and borrowing in the current period.

45. EMPLOYEE BENEFIT OBLIGATIONS

a. Defined contribution plan

The Company operates defined contribution retirement benefit plans for all qualifying employees. Under these plans, the
Company is required to contribute a specified percentage of payroll costs.

Company''s contribution to provident fund recognised in statement of profit and loss of H22.61 Lakhs (31 March 2024:H21.80)
(included in note 33).

b. Defined benefit plans

The level of benefits provided depends on the member''s length of service and salary at retirement age.

The gratuity plan is covered by The Payment of Gratuity Act, 1972. Under the gratuity plan, all employees are entitled to Gratuity
Benefits on exit from service due to retirement, resignation or death at the rate of 15 days'' salary for each year of service with
payment ceiling of H20 lakhs. The vesting period for gratuity as payable under The Payment of Gratuity Act, 1972 is 5 years.

No other post-retirement benefits are provided to these employees.

The most recent actuarial valuation of the present value of the defined benefit obligation were carried out at 31 March 2025
by Independent, Qualified Actuary. The present value of the defined benefit obligation, and the related current service cost and
past service cost, were measured using the projected unit credit method.

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.

The sensitivity analysis presented above may not be representative of the actual change in the projected 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.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been
calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied
in calculating the projected benefit obligation as recognised in the balance sheet.

48. ADDITIONAL REGULATORY INFORMATION

Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as given in Part
I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given
elsewhere in any other notes to the Financial Statements.

a) The title in respect of self-constructed buildings and title deeds of all other immovable properties (other than properties where
the Company is the lessee and the lease agreements are duly executed in favour of the lessee), disclosed in the standalone
financial statements included under Property, Plant and Equipment are held in the name of the Company as at the balance
sheet date except for the following:

b) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.

c) The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which
such loans were taken.

d) The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a willful

defaulter at any time during the financial year or after the end of reporting period but before the date when the standalone
financial statements are approved.

e) The Company does not have any transactions with struck-off companies.

f) The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC)

beyond the statutory period except in case of one lender where outstanding balance as on 31.st March 2025 is H29.08 lakhs,

charge is pending on account of certain procedural formalities..

g) The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013
read with Companies (Restrictions on number of Layers) Rules, 2017.

h) The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign
entities(intermediaries), with the understanding 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 to or on behalf of the Ultimate Beneficiaries.

i) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall;

i. 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 to or on behalf of the Ultimate Beneficiaries.

49. Previous period figures have been regrouped / recasted / reclassified wherever necessary.

50. The Company has approved its standalone financial statements in its board meeting dated May 14, 2025.

The accompanying notes form an integral part of the Standalone financial statements.

As per our report of even date

For M. B. Agrawal & Co.

Chartered Accountants
Firm''s Reg. No.: 100137W

Sd/- Sd/- Sd/- Sd/-

Leena Agrawal Jaspalsingh Chandock Trimaan Chandock Jaikaran Chandock

Partner Chairman & Managing Director Director Director

Membership No.: 061362 (DIN 00813218) (DIN 02853445) (DIN 06965738)

Sd/- Sd/-

Amit Todkari Tabassum Begum

Mumbai, 14 May 2025 Chief Financial Officer Company Secretary

& Compliance Officer

---

Mar 31, 2024

j. Provisions and contingencies

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company 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 consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a

third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received

and the amount of the receivable can be measured reliably.

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 or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements.

Contingent assets are not recognised but disclosed when the inflow of economic benefits is probable. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.

k. Employee benefits

Employee benefits include salaries, wages, contribution to provident fund, gratuity, leave encashment towards un- availed leave, compensated absences, postretirement medical benefits and other terminal benefits.

Post-employment benefits Defined contribution plan

Employee Benefit under defined contribution plans comprises of Contributory provident fund, Post Retirement benefit scheme, Employee pension scheme, composite social security scheme etc. is recognized based on the undiscounted amount of obligations of the Company to contribute to the plan.

Defined benefit plan

Defined benefit plans comprising of gratuity, postretirement medical benefits and other terminal benefits, are recognized based on the present value of defined benefit obligations which are computed using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets as permitted.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in

retained earnings in the statement of changes in equity and in the balance sheet and will not be re-classified to Statement of profit and loss.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Short-term and other long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the year the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

l. Financial instruments - initial recognition, subsequent measurement and impairment

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual

provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the

acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit and loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability. The transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit and loss are immediately recognised in the statement of profit and loss. Trade Receivables that do not contain a significant financing component are measured at transaction price.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly

discounts future cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period.

i. Financial Assets

Financial assets include cash and cash equivalent, trade and other receivables, investments in securities and other eligible current and noncurrent assets.

i. Cash and cash equivalents - which includes cash on hand, deposits held at call with banks and other short-term deposits which are readily convertible into known amounts of cash, are subject to an insignificant risk of change in value and have original maturities of less than three months. These balances with banks are unrestricted for withdrawal and usage.

ii. Other bank balances - which includes balances and deposits with banks that are restricted for withdrawal and usage.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business model whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets measured at fair value

Financial assets are measured at fair value through other comprehensive income if such financial assets are held within a business model whose objective is to hold these assets in order to collect contractual cash flows and to sell such financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The Company in respect of certain equity investments (other than in subsidiaries, associates and joint ventures) which are not held for trading has made an irrevocable election to present in other comprehensive income subsequent changes in the fair value of such equity instruments. Such an election is made by the Company on an instrument by instrument basis at the time of initial recognition of such equity investments. These investments are held for medium or longterm strategic purpose. The Company has chosen to designate these investments in equity instruments as fair value through other comprehensive income as the management believes this provides a more meaningful presentation for medium or long-term

strategic investments, than reflecting changes in fair value immediately in the statement of profit and loss.

Financial assets not measured at amortised cost or at fair value through other comprehensive income are carried at fair value through profit and loss.

Interest income

Interest income is accrued on a time proportion basis, by reference to the principal outstanding and effective interest rate applicable.

Dividend income

Dividend income from investments is recognized when the right to receive payment has been established.

Impairment of financial assets

The Company recognizes loss allowances on a forward looking basis using the expected credit loss (ECL) model for all the financial assets except for trade receivables. Loss allowance for all financial assets is measured at an amount equal to lifetime ECL. The Company recognises impairment loss on trade receivables using expected credit loss model which involves use of a provision matrix constructed on the basis of historical credit loss experience and adjusted for forward-looking information as permitted under Ind AS 109.

The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date is recognized as an impairment gain or loss in the Statement of Profit and Loss.

De-recognition of financial assets

The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to another entity.

If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained interest in the assets and an associated liability for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a borrowing for the proceeds received.

Investment in Subsidiaries & Joint Venture

Investments in subsidiaries and Joint Venture are carried at cost. The cost comprises price paid to acquire investment and directly attributable cost.

The company assesses impairment based on expected credit loss (ECL) model to all its financial assets measured at amortised cost.

ii. Financial liabilities and equity instruments

Classification as debt or equity

Debt and equity instruments issued by a company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Company''s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in Statement of Profit and Loss on the purchase, sale, issue or cancellation of the Company''s own equity instruments.

Financial liabilities

Financial liabilities include long term and shortterm loan and borrowings, trade and other payables and other eligible current and noncurrent liabilities.

All financial liabilities recognized initially at fair value and, in the case of loans and borrowing and other payable, net of directly attributable transaction costs. After initial recognition, financial liabilities are classified under one of the following two categories.

1. Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading. The Company has not designated any financial liabilities upon initial measurement recognition at fair value through profit or loss. Financial liabilities at fair value through profit or loss are at each reporting date at fair value with all the changes recognized in the Statement of Profit and Loss.

2. Financial liabilities measured at amortised cost

After initial recognition, such financial liabilities are subsequently measured at amortized cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of financial liability. The EIR amortization is included in finance expense in the profit and loss.

De-recognition of financial liability

A fina ncial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

iii. Offsetting financial instrument

Financial assets and liabilities are offset, and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle financial asset and liability on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

m. Cash and cash equivalents

Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short- term deposits with an original maturity of three months or less, which are subject to insignificant risk of changes in value.

For the purpose of the Statement of cash flows, cash and cash equivalent consists of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

n. Segments reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The Board of directors of the Company has been identified as the Chief Operating Decision Maker which reviews and assesses the financial performance and makes the strategic decisions.

o. Cash flow statement

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is

reported using indirect method, adjusting the net profit /(Loss) for the effects of:

i. Changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;

ii. Non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses and

iii. AH other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as on the date of Balance Sheet.

p. Earnings per share Basic earnings per share

Basic earnings per share is computed by dividing the net profit after tax by weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for treasury shares, bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

Diluted earnings per share

Diluted earnings per share is computed by dividing the profit after tax as adjusted for dividend, interest and other charges to expense or income (net of attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares including the treasury shares held by the Company to satisfy the exercise of the share options by the employees.

q. Exceptional items

Exceptional Items include income/expenses that are considered to be part of ordinary activities, however of such significance and nature that separate disclosure enables the users of financial statements to understand the impact in more meaningful manner. Exceptional Items are identified by virtue of their size, nature and incidence.

r. Key sources of estimation uncertainty and critical accounting judgements

In the course of applying the policies outlined in all notes above, the Company is required to make judgements, estimates and assumptions about the carrying amount

of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future year, if the revision affects current and future year.

Key sources of estimation uncertainty

a. Useful lives of property, plant and equipment

Management reviews the useful lives of property, plant and equipment at least once a year. Such lives are dependent upon an assessment of both the technical lives of the assets and also their likely economic lives based on various internal and external factors including relative efficiency and operating costs. This reassessment may result in change in depreciation and amortisation expected in future periods.

b. Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystalising or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognised. The cases which have been determined as remote by the Company are not disclosed. Contingent assets are neither recognised nor disclosed in the financial statements unless when an inflow of economic benefits is probable.

c. Fair value measurements

When the fair values of financial assets or financial liabilities recorded or disclosed in the financial statements cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgements include consideration of inputs such as liquidity risk, credit risk and volatility.

d. Impairment of trade receivables

The impairment provisions for trade receivables are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s past history, credit risk, existing market conditions as well as forward looking estimates at the end of each reporting period.

43. FINANCIAL INSTRUMENTS

1.1 Categories and hierarchy of financial instruments

The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between the willing parties, other than in a forced or liquidation sale. The following methods and assumptions have been used to estimate the fair values:

Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to the shortterm maturities of these instruments

Financial Instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rate and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

1.2 Financial risk management objectives and policies:

Market risk is the risk of toss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

The Company''s principal financial liabilities comprise of loan from banks and financial institutions, finance lease obligations and trade payables. The main purpose of these financial liabilities is to raise finance for the Company''s operations. The Company has various financial assets such as trade receivables, cash and short term deposits, which arise directly from its operations.

The main risks arising from Company''s financial instruments are foreign currency risk, interest rate risk, credit risk and liquidity risk. The Board of Directors review and agree policies for managing each of these risks.

a) Financial risk management

The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management systems are reviewed regularly to reflect changes in the market conditions and the Company''s activities to provide reliable information to the Management and the Board to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

The risk management policies aims to mitigate the following risks arising from the financial instruments:

- Market risk

- Credit risk; and

- Liquidity risk

b) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates and interest rates.

The Company seeks to minimize the effects of these risks by using derivative and non derivative financial instruments. The use of derivatives and non derivative financial instruments is governed by the Company''s policies approved by the Board of Directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the Management and the internal auditors on a continuous basis. The Company does not enter into or trade financial instruments, including derivatives for speculative purposes.

c) Foreign currency risk management

The Company''s functional currency is Indian Rupees (INR). The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in exchange rates affects the Company''s revenue from export markets. The Company is exposed to exchange rate risk under its trade portfolio.

Adverse movements in the exchange rate between the Rupee and any relevant foreign currency result''s in decrease in the Company''s overall receivables in Rupee terms and favourable movements in the exchange rates will conversely result in increase in the Company''s receivables in Rupee terms.

Going by the past trends and future prospects in respect of movement in exchange rate between the Rupee and any relevant foreign currency, the Board expects that there will be favourable movements in the exchange rate and accordingly the management has decided not to hedge the foreign currency through any forward exchange contract. Therefore, receivables aggregating to ''16,232.98 lakhs outstanding As at 31 March 2024 represents as unhedged position.

The carrying amounts of the Company''s monetary assets and monetary liabilities at the end of the reporting year are as follows:

d) 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. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in rupees with a mix of fixed and floating rates of interest. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

The sensitivity analyses below have been determined based on the exposure to interest rates for floating rate liabilities, assuming the amount of the liability outstanding at the year-end was outstanding for the whole year.

If interest rates had been 100 basis points higher / lower and all other variables were held constant, the Company''s profit for the year ended 31 March 2024 would decrease / increase by ''28.43 Lakhs (for the year ended 31 March 2023: decrease / increase by ''31.17 Lakhs). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings

e) Credit risk management:

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

Company''s credit risk arises principally from the trade receivables, loans, cash & cash equivalents.

Trade receivables

Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits defined in accordance with the assessment.

Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

Cash and cash equivalents

Credit risks from balances with banks and financial institutions are managed in accordance with the Company policy. The Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions having high credit-ratings assigned by credit-rating agencies.

In addition, the Company is not exposed to credit risk in relation to financial guarantees given to banks and other counterparties.

Liquidity risk management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short term operational needs as well as for long term capital expenditure growth projects. The Company generates sufficient cash flow for operations, which together with the available cash and cash equivalents and short term

investments provide liquidity in the short-term and long- term. The Company has established an appropriate liquidity risk 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 by matching the maturity profiles of financial assets and liabilities.

The following tables detail the Company''s remaining contractual maturity for its non- derivative financial liabilities with agreed repayment periods and its non-derivative financial assets. 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.

To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on which the Company may be required to pay.

Collateral

The Company has pledged part of its trade receivables, short term investments and cash and cash equivalents in order to fulfil certain collateral requirements for the banking facilities extended to the Company. There is obligation to return the securities to the Company once these banking facilities are surrendered (Refer note 23 and 25).

f) Capital Risk management

The Company being in a capital intensive industry, its objective is to maintain a strong credit rating, healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity.

The Company''s capital requirement is mainly to fund its capacity expansion and repayment of principal and interest on its borrowings. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations supplemented by funding from bank borrowings and the equity capital by way of preferential allotment. The Company is not subject to any externally imposed capital requirements.

The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and elongate the maturity of its debt portfolio, and closely monitors its judicious allocation amongst competing capital expansion projects, to capture market opportunities at minimum risk.

The Company monitors its capital using gearing ratio, which is net debt, divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents and current investments.

i. Equity includes all capital and reserves of the Company that are managed as capital.

ii. Debt is defined as long and short term borrowings, as described in notes 23 and 25.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

44. EMPLOYEE BENEFIT OBLIGATIONS

a. Defined contribution plan

The Company operates defined contribution retirement benefit plans for all qualifying employees. Under these plans, the Company is required to contribute a specified percentage of payroll costs.

Company''s contribution to provident fund recognised in statement of profit and loss of ''21.80 Lakhs (31 March 2023:''19.99) (included in note 33).

b. Defined benefit plans

The level of benefits provided depends on the member''s length of service and salary at retirement age.

The gratuity plan is covered by The Payment of Gratuity Act, 1972. Under the gratuity plan, all employees are entitled to Gratuity Benefits on exit from service due to retirement, resignation or death at the rate of 15 days'' salary for each year of

47. Previous period figures have been regrouped / recasted / reclassified wherever necessary.

48. The Company has approved its financial statements in its board meeting dated May 14, 2024.

Signatures to Notes 1 to 48 which form an integral part of financial statements.

The above Balance Sheet should be read in conjunction with the accompanying notes.

As per our report of even date

For M. B. Agrawal & Co. For and on behalf of the Board of Directors

Chartered Accountants Firm''s Reg. No.: 100137W

Sd/- Sd/- Sd/- Sd/-

Leena Agrawal Jaspalsingh Chandock Trimaan Chandock Jaikaran Chandock

Partner Chairman & Managing Director Director Director

Membership No.: 061362 (DIN 00813218) (DIN 02853445) (DIN 06965738)

Sd/- Sd/-

Amit Todkari Tabassum Begum

Mumbai, 14 May 2024 Chief Financial Office Company Secretary

---

Mar 31, 2023

Provisions and contingencies

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of a
past event, it is probable that the Company 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
consideration required to settle the present obligation at
the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. When
a provision is measured using the cash flows estimated
to settle the present obligation, its carrying amount is the
present value of those cash flows (when the effect of the
time value of money is material).

When some or all of the economic benefits required to
settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is
virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably.

k. Employee benefitsRetirement benefit costs and termination benefits

Payments to defined contribution retirement benefit plans
are recognised as an expense when employees have
rendered service entitling them to the contributions.

For d efi n ed ben efi t reti rement ben efi t pla ns, th e cost of
providing benefits is determined using the projected
unit credit method, with actuarial valuations being
carried out at the end of each annual reporting year. Re¬
measurement, comprising actuarial gains and losses, the
effect of the changes to the asset ceiling (if applicable) and
the return on plan assets (excluding interest), is reflected
immediately in the Balance sheet with a charge or credit
recognised in other comprehensive income in the year in
which they occur. Re-measurement recognised in other
comprehensive income is reflected immediately in retained
earnings and will not be reclassified to Statement of profit
and loss. Past service cost is recognised in Statement of
profit and loss in the year of a plan amendment or when
the company recognises corresponding restructuring cost
whichever is earlier. Net interest is calculated by applying
the discount rate to the net defined benefit liability or
asset. Defined benefit costs are categorized as follows:

The Company presents the first two components of
defined benefit costs in Statement of profit and loss in the
line item ‘Employee benefits expenses''. Curtailment gains
and losses are accounted for as past service costs.

The retirement benefit obligation recognised in the
Balance sheet represents the actual deficit or surplus in
the Company''s defined benefit plans. Any surplus resulting
from this calculation is limited to the present value of any
economic benefits available in the form of refunds from
the plans or reductions in future contributions to the plans.

A liability for a termination benefit is recognised at the
earlier of when the entity can no longer withdraw the offer
of the termination benefit and when the entity recognises
any related restructuring costs.

Short-term and other long-term employee
benefits

A liability is recognised for benefits accruing to employees
in respect of wages and salaries in the year the related
service is rendered at the undiscounted amount of the
benefits expected to be paid in exchange for that service.

Liabilities recognised in respect of short-term employee
benefits are measured at the undiscounted amount of
the benefits expected to be paid in exchange for the
related service.

Li abili ti es recog ni sed i n respect of oth er long -term
employee benefits are measured at the present value

of the estimated future cash outflows expected to be
made by the Company in respect of services provided by
employees up to the reporting date.

l. Financial instrumentsinitial recognition, subsequent measurement and
impairment

Financial assets and financial liabilities are recognized
when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and
liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities (other
than financial assets and financial liabilities at fair value
through profit and loss) are added to or deducted from
the fair value measured on initial recognition of financial
asset or financial liability. The transaction costs directly
attributable to the acquisition of financial assets and
financial liabilities at fair value through profit and loss
are immediately recognised in the statement of profit and
loss. Trade Receivables that do not contain a significant
financing component are measured at transaction price.

Effective interest method

The effective interest method is a method of calculating the
amortised cost of a financial instrument and of allocating
interest income or expense over the relevant period. The
effective interest rate is the rate that exactly discounts
future cash receipts or payments through the expected
life of the financial instrument, or where appropriate, a
shorter period.

Financial assets

Cash and bank balances

Cash and bank balances consist of:

i. Cash and cash equivalents - which includes cash
on hand, deposits held at call with banks and other
short-term deposits which are readily convertible into
known amounts of cash, are subject to an insignificant
risk of change in value and have original maturities of
less than three months. These balances with banks
are unrestricted for withdrawal and usage.

ii. Other bank balances - which includes balances and
deposits with banks that are restricted for withdrawal
and usage.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised
cost if these financial assets are held within a business
model whose objective is to hold these assets in order to
collect contractual cash flows and the contractual terms
of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on
the principal amount outstanding.

Financial assets measured at fair value

Financial assets are measured at fair value through other
comprehensive income if such financial assets are held
within a business model whose objective is to hold these
assets in order to collect contractual cash flows and to
sell such financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the
principal amount outstanding.

The Company in respect of certain equity investments
(other than in subsidiaries, associates and joint ventures)
which are not held for trading has made an irrevocable
election to present in other comprehensive income
subsequent changes in the fair value of such equity
i nstrumen ts. Such an electi on i s ma d e by th e Company
on an instrument by instrument basis at the time of
initial recognition of such equity investments. These
investments are held for medium or long-term strategic
purpose. The Company has chosen to designate these
investments in equity instruments as fair value through
other comprehensive income as the management believes
this provides a more meaningful presentation for medium
or long-term strategic investments, than reflecting
changes in fair value immediately in the statement of profit
and loss.

Financial assets not measured at amortised cost or at fair
value through other comprehensive income are carried at
fair value through profit and loss.

Interest income

I nterest income is accrued on a time proportion basis,
by reference to the principal outstanding and effective
interest rate applicable.

Dividend income

Dividend income from investments is recognized when the
right to receive payment has been established.

Impairment of financial assets

The Company recognizes loss allowances on a forward
looking basis using the expected credit loss (ECL) model
for all the financial assets except for trade receivables.
Loss allowance for all financial assets is measured at an
amount equal to lifetime ECL. The Company recognises
impairment loss on trade receivables using expected
credit loss model which involves use of a provision
matrix constructed on the basis of historical credit loss
experience and adjusted for forward-looking information
as permitted under Ind AS 109.

The amount of expected credit losses (or reversal) that
is required to adjust the loss allowance at the reporting
date is recognized as an impairment gain or loss in the
Statement of Profit and Loss.

De-recognition of financial assets

The Company de-recognises a financial asset only when
the contractual rights to the cash flows from the asset
expire, or it transfers the financial asset and substantially
all risks and rewards of ownership of the asset to
another entity.

If the Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues to
control the transferred asset, the Company recognises its
retained interest in the assets and an associated liability
for amounts it may have to pay.

If the Company retains substantially all the risks and
rewards of ownership of a transferred financial asset, the
Company continues to recognise the financial asset and
also recognises a borrowing for the proceeds received.

Financial liabilities and equity instruments
Classification as debt or equity

Financial liabilities and equity instruments issued by the
Company are classified according to the substance of the
contractual arrangements entered into and the definitions
of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences
a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments are
recorded at the proceeds received, net of direct issue costs.

Financial liabilities

Trade and other payables are initially measured at fair
value, net of transaction costs, and are subsequently
measured at amortised cost, using the effective interest
rate method where the time value of money is significant.

I nterest bearing bank loans, overdrafts and issued debt
are initially measured at fair value and are subsequently
measured at amortised cost using the effective interest
rate method. Any difference between the proceeds (net
of transaction costs) and the settlement or redemption of
borrowings is recognised over the term of the borrowings
in the statement of profit and loss.

De-recognition of financial liabilities

The Company de-recognises financial liabilities when,
and only when, the Company''s obligations are discharged,
cancelled or they expire.

Offsetting financial instrument

Financial assets and liabilities are offset, and the net
amount is reported in the balance sheet where there
is a legally enforceable right to offset the recognised
amounts and there is an intention to settle financial asset

and liability on a net basis or realise the asset and settle
the liability simultaneously. The legally enforceable right
must not be contingent on future events and must be
enforceable in the normal course of business and in the
event of default, insolvency or bankruptcy of the Company
or the counterparty.

m. Cash and cash equivalents

Cash and cash equivalent in the Balance Sheet comprise
cash at banks and on hand and short- term deposits with
an original maturity of three months or less, which are
subject to insignificant risk of changes in value.

For the purpose of the Statement of cash flows, cash and
cash equivalent consists of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts as
they are considered an integral part of the Company''s
cash management.

n. Segments reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker.

The Board of directors of the Company has been identified
as the Chief Operating Decision Maker which reviews
and assesses the financial performance and makes the
strategic decisions.

o. Cash flow statement

Statement of Cash Flows is prepared segregating the cash
flows into operating, investing and financing activities.
Cash flow from operating activities is reported using
indirect method, adjusting the net profit /(Loss) for the
effects of:

i. Changes during the period in inventories and
operating receivables and payables transactions of a
non-cash nature;

ii. Non-cash items such as depreciation, provisions,
deferred taxes, unrealised foreign currency gains
and losses and

iii. All other items for which the cash effects are
investing or financing cash flows.

Cash and cash equivalents (including bank balances)
shown in the Statement of Cash Flows exclude items
which are not available for general use as on the date of
Balance Sheet.

p. Earnings per share
Basic earnings per share

Basic earnings per share is computed by dividing the net
profit after tax by weighted average number of equity
shares outstanding during the year. The weighted average
number of equity shares outstanding during the year is
adjusted for treasury shares, bonus issue, bonus element
in a rights issue to existing shareholders, share split and
reverse share split (consolidation of shares).

Diluted earnings per share

Diluted earnings per share is computed by dividing the
profit after tax as adjusted for dividend, interest and other
charges to expense or income (net of attributable taxes)
associated with dilutive potential equity shares by the
weighted average number of equity shares considered
for deriving basic earnings per share and also the
weighted average number of equity shares that could
have been issued upon conversion of all dilutive potential
equity shares including the treasury shares held by the
Company to satisfy the exercise of the share options by
the employees.

q. Key sources of estimation uncertainty and critical
accounting judgements

In the course of applying the policies outlined in all notes
above, the Company is required to make judgements,
estimates and assumptions about the carrying amount
of assets and liabilities that are not readily apparent from
other sources. The estimates and associated assumptions
are based on historical experience and other factors that
are considered to be relevant. Actual results may differ
from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the year in
which the estimate is revised if the revision affects only
that year, or in the year of the revision and future year, if
the revision affects current and future year.

Key sources of estimation uncertaintya. Useful lives of property, plant and equipment

Management reviews the useful lives of property,
plant and equipment at least once a year. Such
lives are dependent upon an assessment of both
the technical lives of the assets and also their
likely economic lives based on various internal and
external factors including relative efficiency and
operating costs. This reassessment may result in
change in depreciation and amortisation expected in
future periods.

b. Impairment of investments in subsidiaries

Determining whether the investments in subsidiaries
are impaired requires an estimate in the value in
use of investments. In considering the value in use,
the Directors have anticipated the future commodity
prices, capacity utilisation, operating margins,
discount rates and other factors of the underlying
businesses / operations of the investee companies.
Any subsequent changes to the cash flows due to
changes in the above mentioned factors could impact
the carrying value of investments.

c. Contingencies

In the normal course of business, contingent liabilities
may arise from litigation and other claims against
the Company. Potential liabilities that are possible
but not probable of crystalising or are very difficult to
quantify reliably are treated as contingent liabilities.
Such liabilities are disclosed in the notes but are not
recognised. The cases which have been determined
as remote by the Company are not disclosed.

Contingent assets are neither recognised nor
disclosed in the financial statements unless when an
inflow of economic benefits is probable.

d. Fair value measurements

When the fair values of financial assets or financial
liabilities recorded or disclosed in the financial
statements cannot be measured based on quoted
prices in active markets, their fair value is measured
using valuation techniques including the DCF
model. The inputs to these models are taken from
observable markets where possible, but where this
is not feasible, a degree of judgment is required
i n establi sh i ng fai r values. Jud g emen ts i n clu d e
consideration of inputs such as liquidity risk, credit
risk and volatility.

e. Impairment of trade receivables

The impairment provisions for trade receivables
are based on assumptions about risk of default and
expected loss rates. The Company uses judgement in
making these assumptions and selecting the inputs
to the impairment calculation, based on Company''s
past history, credit risk, existing market conditions as
well as forward looking estimates at the end of each
reporting period.

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Mar 31, 2014

Not Available.

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Mar 31, 2012

1. Under the Micro Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The company is in the process of compiling relevant information from its suppliers about their coverage under the Act. Since the relevant information is not presently available, no disclosures have been made in the Accounts

2. The company has suspended manufacturing activities during the financial year 2003-04 and there are no intentions to resume the manufacturing activities. In spite of these facts the accounts have been prepared on the basis of going concern.

3. Corresponding Figures of the previous year have been regrouped or rearranged to make it comparable with this year's figure, wherever necessary.

4. In view of the fact that the company has suspended manufacturing operations, particulars required to be furnished as per part -III of Schedule-6 of the Companies Act, 1956 has not been furnished.

5. The company is having net deferred tax assets. Deferred tax assets, which have arisen mainly on account of unabsorbed depreciation and carried forward losses, have not been considered for recognition, as there is no virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Therefore, net deferred tax asset has not been recognized in the accounts of the company.

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Mar 31, 2011

1. The figures for the previous year were regrouped and reclassified wherever necessary.

2. Other particulars as per clause 4 (c) and (d) of Part II of Schedule VI not applicable.

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Mar 31, 2010

1. Current year and previous year figures are regrouped wherever necessary

2. K.S.F.C. Loan has cleared by one time settlement vide their letter No. 00305 Dt. 17.04.2005. w.e.f. 31-03-2005.

3. Information pursuant to provision of paragraph 3. AC and 40 of Part II of Schedule VI of Companies Act 1956.

4. The Sundry Debtors and Creditors balance are Subject to Confirmations.